Who Kept Your Money Safe?

2 years back, when the Lehmann Brothers collapse quesitoned the very fundamentals of the free market economy, and sent the American and European economies into a tailspin, many predicted doom for India too. Yet, the Indian juggernaut came out of the crisis pretty much unscathed.

The Indian Express Sunday magazine yesterday carried a pretty interesting account of the critical one month after the news of the Lehmann collapse, from the near-death experience ICICI had at the hands of the rumour mongers and how the crisis was defused by Kamath, who had recently taken over the head honcho role, the role of the RBI - initially lukewarm until prodded into serious action by the government, the urgency of action shown by the SEBI, and above all, the amazing leadership displayed by the PM Manmohan Singh, the FM Chidambaram, Planning Commission Chairman Montek Singh Ahluwalia, and the three top babus, all of whom had been appointed barely days before the crisis ignited - Union Finance Secretary Arun Ramanathan, Union Economic Affairs Secretary Ashok Chawla, and the new central bank governor Subbarao.

Never before had government decision-making been so unorthodox, there was no time for files and bureacratic rules. and while bankers, regulators and businessmen were crucial, it was the political appointees in the government who were ultimately responsible, and get the credit, for keeping your money safe.