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For market discipline to constrain risk effectively, financial institutions must be allowed to fail. Under optimal financial regulatory and financial system infrastructures, such a failure would not threaten the overall system.

Henry Paulson

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Henry Paulson
Age: 78
Born: 1946
Born: March 28
Banker
Former United States Secretary Of The Treasury
Investment Banker
Politician
Palm Beach
Florida
Failure
Effectively
Failing
Infrastructure
Risk
Allowed
Infrastructures
System
Fail
Regulatory
Must
Market
Constrain
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Financial
Optimal
Institutions
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Discipline
Overall

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Our overriding goal in restructuring our financial architecture should be that taxpayers never again have to save a failing financial institution.
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I have great, great confidence in our capital markets and in our financial institutions. Our financial institutions, banks and investment banks, are strong. Our capital markets are resilient. They're efficient. They're flexible.
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