Lehman fall ‘did not’ cause crisis

CENTRAL Bank Governor Patrick Honohan’s report says the collapse of Lehman Brothers did not cause the Irish banking crisis.

It would be a significant mistake to suppose that the steep economic downturn is wholly due to underlying domestic imbalances, the report states.

“After all, there has been a severe worldwide recession, the causes of which involve the correction of imbalances in the US, UK and elsewhere – excesses which have their own complexities not shared in the Irish case.”