Global Financial Crisis - Lots of Action But No Leadership ?

At CPA Australia's Victorian Congress, last week I had the opportunity to listen to William Isaac, the former head of the USA Government's Federal Deposit Insurance Corporation (FDIC), speak about the lessons learnt about the Global Financial Crisis.

Isaac was very clear in his intentions, there was a lot of action, a lot of things put in place to stop the slide especially around Wall Street, but not a lot of clear leadership was given. Leaders in the US and around the world created a senseless panic. The GFC was no worse than the downturns in the mid 1970's and early and late 1980's it was just made to seem to be. US Government leaders failed to create a sense of calm, co-ordination and a sense that there was positive leadership in place. One clear example was that Bear Sterns was bailed out and eventually sold to J P Morgan Chase yet Lehman Brothers was not and the situation was made even worse by the negative and fearful comments created by US Government leaders.

In times of trouble, clam, consistent and visible leadership is what is required !

For more information please see William Isaac's book "Senseless Panic : How Washington Failed America"