The next financial crisis
Business Daily
BBC
4.4 • 816 Ratings
🗓️ 13 June 2019
⏱️ 19 minutes
🧾️ Download transcript
Summary
It's more than a decade since the global financial crisis. Central banks have pumped trillions of dollars into the financial system to support markets and the broader economy. But there are warning signs that major risks may be re-emerging in the financial markets.
This month, fund manager Neil Woodford suspended trading in his largest fund after rising numbers of investors asked for their money back. Could this highlight a vulnerability in the financial system that runs right through the investment management business?
The BBC's Manuela Saragosa and Laurence Knight speak to two veterans of the investment community: Mohamed El-Erian, chief economic adviser at Allianz and former head of Pimco in California; and Lord Paul Myners, the former head of Gartmore in the UK. Both worry that investors are unaware of the risk they are running that they won't be able to access their money when they most need it, and warn that regulators could be blindsided by the next big crisis.
Producer: Laurence Knight
(Picture: A trading screen flashes red; Credit: Getty Images)
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Hello, I'm Manuela Saragossa. Welcome to Business Daily from the BBC. Coming up, a warning from one of Britain's |
| 0:08.6 | most experienced investment managers. I think the next financial crisis will be in the fund management |
| 0:14.3 | sector. And I'm saying to the regulators, are you alert to this? In this edition, we're shining a light on the fault lines in financial markets. |
| 0:24.3 | Right now, we're in a world in which most valuations are well above what would be justified by |
| 0:31.3 | economic and corporate fundamentals. |
| 0:33.8 | It's a tough environment for investment managers right now. |
| 0:37.2 | Could there be trouble ahead? That's coming up here in Business Daily. It's a tough environment for investment managers right now. |
| 0:39.0 | Could there be trouble ahead? |
| 0:41.3 | That's coming up here in Business Daily. |
| 0:48.8 | Imagine you've invested your life savings with a fund manager. |
| 0:52.0 | You trust him or her to safeguard your wealth. |
| 0:55.4 | More than that, you perhaps even trust him to increase it. |
| 0:58.6 | And then out of the blue, he tells you this. |
| 1:01.8 | As difficult a decision as this is, |
| 1:04.6 | and clearly frustrating for you, our investors, |
| 1:09.1 | we felt that this was necessary to protect your interests. |
| 1:12.9 | That's Neil Woodford, a fund manager with a bit of a rock star reputation here in the UK. And he told his clients earlier this month, clients who'd placed money |
| 1:18.8 | with him, that he was blocking them from withdrawing their funds. It's a story that sent shockways |
| 1:24.7 | through the UK's investment industry, but it's also raised |
| 1:28.2 | questions about the whole sector, not just here in the UK, but around the whole world. |
| 1:33.5 | Our producer Lawrence Knight is himself a former investment banker and he's been following |
| 1:38.0 | this story. And Lawrence, you could tell us what happened here and why it matters. |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from BBC, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of BBC and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2026.