Hopes worst of crisis over fuel market rally: bank body

0 Comments | AFP, June, 2009

GENEVA (AFP) — Hopes that the worst of the financial crisis is over sparked a rally in the markets in the second quarter of this year, the world's top central bank body Bank for International Settlements said Sunday.

However, the rebound failed to reach levels posted before the bankruptcy of US investment bank Lehman Brothers in September and concern is growing about governments' abilities to pay back debt, BIS said in its quarterly review.

The dramatic collapse of Lehman Brothers led to a freezing up of bank lending as well as sharp falls in stock markets worldwide.

To unblock choked lending, central banks pumped liquidity into the markets. Meanwhile, governments also unveiled massive stimulus packages in a bid to lift the global economy out of a...