The
financial crisis of 2007–2008, also known as the global
financial crisis and the 2008
financial crisis, is considered by many economists to have been the worst
financial crisis since the Great Depression of the 1930s. It began in 2007 with a
crisis in the subprime mortgage market in the United States, and developed into a full-blown international banking
crisis with the collapse of the investment bank Lehman Brothers on September 15, 2008. In 2010, the Dodd–Frank Wall Street Reform and Consumer Protection Act was enacted in the US following the
crisis to promote the
financial stability of the United States. The Basel III capital and liquidity standards were adopted by countries around the world. The European sovereign debt
crisis started in 2008 with the collapse of Iceland's banking system and spread primarily to Portugal, Italy, Ireland, Greece and Spain in 2009. The debt
crisis has led to a loss of confidence in European businesses and economies.
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Earnings Management and Audit in Private Firms: The Effect of Financial Recuperation