It is almost exactly a year since the European Central Bank was forced to inject €95bn into the eurozone banking system, bringing home what many had suspected – that the fallout from the US subprime mortgage crisis in the US was causing serious pain to global financial markets.
The fallout has been dramatic. Across the world, banks have been forced to raise fresh capital to repair ravaged balance sheets. Several have gone bust or have had to be bailed out, and thousands of jobs have been cut.
The fallout from the crisis has not been confined to the financial sector. The effect on the wider economy, against a backdrop of collapsing house prices, slowing growth and rising inflation, has been profound.
In a series of stories throughout this week, the FT looks at how the world has changed in the past 12 months and the long-term impact on the global financial system and the world economy