Without trust, the banks are stuck

The climate of doubt surrounding the banking system means that interest rates are likely to remain low for the foreseeable future

It is becoming clear that the recurring financial turmoil since the collapse of Lehman Brothers almost three years ago is fundamentally caused by a general collapse of trust in the global banking system.

This reality will dominate central bank thinking for the foreseeable future. To understand what keeps Jean-Claude Trichet, Ben Bernanke ...