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 PaulsonIt is the policy of the federal government to use all resources at its disposal to make our financial system stronger.
Henry PaulsonOur overriding goal in restructuring our financial architecture should be that taxpayers never again have to save a failing financial institution.
Henry PaulsonA 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