Article taken from: finance.yahoo.com
Bloomberg Opinion) — Like the rest of us, the world’s finance industry is still wrestling with the huge uncertainty of a pandemic that doesn’t yet have an end. In one of many cases around the world, the U.K.’s financial market regulator is taking on the insurance industry in a High Court battle that could affect as many as 370,000 customers — predominantly small companies — and cost the sector billions of dollars in payouts. […] They found that epidemics and earthquakes tend to lower people’s regard for finance, while droughts and floods typically improved views toward the industry. […] The academics acknowledged that it’s impossible to calculate the exact impact on GDP of diminished trust in the finance industry, but Asaf Manela, one of the authors, told me individuals’ respect for insurers and other financiers in a crisis is clearly a factor for the economy. […] While banks have been granting payment holidays and handing out billion of loans to small companies, this has been driven largely by government (that is, taxpayer) guarantees.
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