[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Richard Field [@tyillc](/creator/twitter/tyillc) on x 11K followers Created: 2025-07-22 13:54:03 UTC While this write-up of what happened during the Great Financial Crisis is correct in some key respects (see the focus on preserving existing firms), it misses the elephant in the room. Why was there a risk of contagion across the financial system? Opacity!!!! The opacity of structured finance securities meant nobody knew what the value of these securities was (BNP Paribas said this in August 2007). The opacity of the banks meant nobody knew which banks were solvent given they all had exposure to both the securities AND each other (see unwillingness of any single Wall Street firm or combination of Wall Street firms to "merge" with Lehman). The presence of opacity means investors cannot Trust, but Verify the valuation stories they are told by Wall Street. When these valuation stories are called into question, investors "run" and try to get their money back. This includes institutional investors ... (as for bank capital, even the OECD recognizes bank capital is an easily manipulated accounting construct and the ease of manipulation makes it meaningless ... please see impact of ending mark to market or regulatory forbearance for both ease of manipulation and rendering meaningless) XXX engagements  **Related Topics** [bnp paribas](/topic/bnp-paribas) [finance](/topic/finance) [elephant](/topic/elephant) [happened](/topic/happened) [Post Link](https://x.com/tyillc/status/1947656386982068558)
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Richard Field @tyillc on x 11K followers
Created: 2025-07-22 13:54:03 UTC
While this write-up of what happened during the Great Financial Crisis is correct in some key respects (see the focus on preserving existing firms), it misses the elephant in the room.
Why was there a risk of contagion across the financial system?
Opacity!!!!
The opacity of structured finance securities meant nobody knew what the value of these securities was (BNP Paribas said this in August 2007).
The opacity of the banks meant nobody knew which banks were solvent given they all had exposure to both the securities AND each other (see unwillingness of any single Wall Street firm or combination of Wall Street firms to "merge" with Lehman).
The presence of opacity means investors cannot Trust, but Verify the valuation stories they are told by Wall Street.
When these valuation stories are called into question, investors "run" and try to get their money back. This includes institutional investors ...
(as for bank capital, even the OECD recognizes bank capital is an easily manipulated accounting construct and the ease of manipulation makes it meaningless ... please see impact of ending mark to market or regulatory forbearance for both ease of manipulation and rendering meaningless)
XXX engagements
Related Topics bnp paribas finance elephant happened