There is a time for weighing evidence and a time for acting. And if there's one thing I've learned throughout my work in finance, government, and conservation, it is to act before problems become too big to manage.
Henry PaulsonRead
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.
Interpretation
What this quote means
A central regulatory agency can better manage systemic risks in financial markets.
This quote by Henry Paulson emphasizes the importance of having a single regulatory body that is accountable for monitoring systemic risks in the financial system, particularly in the aftermath of the 2008 financial crisis. With comprehensive access to crucial information, this agency would be better equipped to detect potential market bubbles and take necessary actions to mitigate their impacts, ultimately promoting greater financial stability.
Themes
RegulationSystemic RiskFinancial StabilityMarket MonitoringCrisis Prevention
In practice
Example use cases
During a financial conference discussing the importance of regulation, this quote highlights the need for accountability.
More from Henry Paulson
All quotes →In all my life, I've been trained that when there's a big problem, you run toward it.
Henry PaulsonRead
Complexity and interconnectedness matter as much as size in assessing risk in banking.
Henry PaulsonRead
Every global concern - economic, environmental or security-related - can be addressed more effectively when the U.S. and China work together.
Henry PaulsonRead
I think history shows that countries have to have some kind of a threshold level of economic success before they begin to have the means and the will to focus on the environment.
Henry PaulsonRead
I've always said to everyone that ever worked for me, if you get too dug in on a position, the facts change, and you don't change to adapt to the facts, you will never be successful.
Henry PaulsonRead
Similar quotes
The only thing useful banks have invented in 20 years is the ATM.
Paul VolckerRead
Credit worthiness is like virginity, it can be preserved but not restored very easily, so it is crazy to play around with it.
Warren BuffettRead
But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?
Alan GreenspanRead
We make too much out of past performance, and it's very misleading to investors. It causes them to move money around. They buy a fund that's hot and then it turns cold as all hot funds eventually do. And then they get out. Well, buying at the high and selling at the low isn't going to leave you a satisfied shareholder, right?
John C. BogleRead
This message (that attempting to beat the market is futile) can never be sold on Wall Street because it is in effect telling stock analysts to drop dead.
Paul SamuelsonRead
I'm not emotional about investments. Investing is something where you have to be purely rational and not let emotion affect your decision making - just the facts.
Bill AckmanRead