Summary of Quarterly Economic and Investment Update Conference Call

The recent events in the banking world are more of a panic than a crisis and already markets have started to calm down; this is not a re-run of 2008. There are three fundamental differences: (i) this time the US banking system is not heavily exposed to mortgage lending malpractices and the failed banks have suffered from individual strategic errors or poor treasury operations, (ii) the underlying health of the banking system is much improved compared to 2008, when banks were under-regulated and under-capitalised, and (iii) the regulatory authorities are signalling that they are ready to do whatever is needed to stem any risk of contagion and prevent a broader financial crisis.

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