Since Lehman's demise the investment banking industry has ceased to exist, almost overnight. Commercial banks have been absorbed by their better capitalised peers. Governments have started guaranteeing savings and taking over loan books in several countries where there is no alternative.
These are exceptional times which call for exceptional policy responses.
What is not needed is the sort of party political point-scoring played out by the House of Representatives on Monday in the US.
David Cameron struck the right note at the Conservative conference in Birmingham when he offered bi-partisan co-operation to ensure the legislative framework was in place quickly to help regulators in the UK to take action to restore confidence and protect savers.
We on the Treasury Select Committee have been calling for better depositor protection for some time. This should be introduced as soon as Parliament resumes next week. We also need to introduce a long-term regulatory framework to improve the banking regulatory system established in 1998 by Gordon Brown.
Banking crises occur every decade or so. It is unlikely this will change. What needs to change is the ability of Governments to mitigate the effects.
Banks are vital to the efficient working of the economy. The impact of the present banking crisis is already being felt in the wider economy, with businesses suffering and unemployment rising. But the full effect would be much graver if stability is not restored quickly.
This is why it is so important to take steps immediately to sort out the mess. So Conservatives will act responsibly in the nation's interest to work together with the present administration.
