Our lofty central bankers and regulators have forgotten that finance is a derivative of the real sector. If the real economy is sick, fixing the derivative won't solve the problem. Photo: Bloomberg

Six years on, we still haven't learned the real lessons from Lehman collapse

Andrew Sheng says regulators fail to understand that the world needs equity, not more debt

Topic |   Lehman Brothers

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Our lofty central bankers and regulators have forgotten that finance is a derivative of the real sector. If the real economy is sick, fixing the derivative won't solve the problem. Photo: Bloomberg
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Andrew Sheng

Andrew Sheng

Andrew Sheng is a former central banker and financial regulator, currently distinguished fellow at the Asia Global Institute, University of Hong Kong. He writes widely on Asian perspectives on global issues, with columns in Project Syndicate, Asia News Network and Caijing/Caixin magazines. His latest book is “Shadow Banking in China”, co-authored with Ng Chow Soon, published by Wiley.