Financial Times FT.com

On Wall Street: Companies will pay for their binge on easy money

By Michael Mackenzie in New York

Published: October 10 2008 17:29 | Last updated: October 10 2008 17:29

While bankers rightly take the heat, the worst financial crisis since the 1930s also implies a long period of pain for many companies. That in turn could well delay a meaningful recovery in equities once the dust from this week’s market crash settles.

Indeed, for all the obloquy hurled at banks for taking excessive risks with high levels of borrowed money, known as leverage, numerous companies have indulged in just that behaviour.

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