Ten years on: The impact of the global financial crisis on European real estate
A decade ago, as many relaxed on their summer holidays over August, a financial crisis began to unfold that resonates loudly to this day. It ushered in an era of low global economic growth and, arguably, has been a contributing factor to the deepening of the economic divide in society and the rising nationalism and disillusionment that has so far resulted in Brexit and the election of Donald Trump.
Early that month 10 years ago, investors in two Bear Stearns subprime hedge funds took legal action against the company, alleging that it had misled investors about its exposure to the funds. Co-president Warren Spector was asked to resign and on 21 September The New York Times noted a 61 percent drop in net profits at Bear Stearns caused by hedge fund losses. With the news in November that Bear Stearns was writing down a further $1.2 billion (€1.0 billion) in mortgage-related securities and would face its first loss in 83 years, Standard & Poor’s downgraded the co