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.

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.

There is no way to stabilize the markets other than through government intervention.

In just about every area of society, there's nothing more important than ethics.

The worst is likely to be behind us.

I don't think a bankruptcy is a good thing.

Our overriding goal in restructuring our financial architecture should be that taxpayers never again have to save a failing financial institution.