Quote

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

Change background

T
T
T

Change font

TAGS & TOPICS

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

More quotes by Henry Paulson

Image
An open, competitive, and liberalized financial market can effectively allocate scarce resources in a manner that promotes stability and prosperity far better than governmental intervention.
Henry Paulson
Image
As the Indian government has embraced greater economic openness, the creativity and expertise of the Indian workforce has been unleashed onto the world economic stage.
Henry Paulson
Image
I've always said, 'I don't want to be irrelevant.'
Henry Paulson
Image
China saves too much, produces too much, sells too much to Americans and consumes too little.
Henry Paulson
Image
I believe that the root cause of every financial crisis, the root cause, is flawed government policies
Henry Paulson
Image
The U.S. didn't save enough we borrowed a lot. There were structural imbalances in Asia with exporters, with oil exporters for a whole variety of things.
Henry Paulson
Image
There's always light at the end of the tunnel, right? It just depends on how long the tunnel is.
Henry Paulson
Image
One of the most constant aspects of American life is change - and nowhere is it more evident than in our financial markets.
Henry Paulson
Image
I'm a straightforward person. I like to be direct with people.
Henry Paulson
Image
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.
Henry Paulson
Image
Anticompetitive practices hurt Chinese private firms nearly as much as foreign ones.
Henry Paulson
Image
What I've said repeatedly is, 'I think the auto industry is a very important industry.'
Henry Paulson
Image
A single agency responsible for systemic risk would be accountable in a way that no regulator was in the run-up to the 2008 crisis. With access to all necessary information to monitor the markets, this regulator would have a better chance of identifying and limiting the impact of future speculative bubbles.
Henry Paulson
Image
I think all governments engage in intelligence gathering vis-a-vis other governments.
Henry Paulson
Image
The first priority is to make sure we have capital to continue to have capital available to put into the financial system. That's the first priority.
Henry Paulson
Image
Even if you don't have the authorities - and frankly I didn't have the authorities for anything - if you take charge, people will follow.
Henry Paulson
Image
A Fed loan to Lehman Brothers would not have prevented a bankruptcy.
Henry Paulson
Image
There is no way to stabilize the markets other than through government intervention.
Henry Paulson
Image
My preference is for the Federal Reserve to be the systemic risk regulator, because the responsibility for identifying and limiting potential problems is a natural complement to its role in monetary policy.
Henry Paulson
Image
China needs a currency that reflects underlying economic fundamentals.
Henry Paulson