Brainstorming for Failure
Published June 20, 2011 11:00 PM
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Updated September 12, 2011 8:33 AM
1 Min Read
Brainstorming for Failure: Simon Johnson
Simon Johnson, Ronald A. Kurtz Professor of Entrepreneurship, Massachusetts Institute of Technology, Sloan School of Management
"Let's say a $2 trillion bank were to fail and one of the strategies available was a merger with another $2 trillion bank — a U.S. bank or a foreign bank, very large foreign bank with a big presence in the United States — is there anyone in the room that thinks that would be a good idea from a systemic risk point of view?"
Brainstorming for Failure: Donald Kohn
Donald Kohn, former Fed Vice Chairman and now senior fellow at the Brookings Institute
"The hope is the resolution authority would have given [former Lehman Brothers CEO] Dick Fuld and his board a different set of incentives in the spring of 2008."
Brainstorming for Failure: H. Rodgin Cohen
H. Rodgin Cohen, partner Sullivan and Cromwell
"The statutory provisions pre-Dodd-Frank that permitted 'Too Big to Fail' to exist ... they're gone. We are left with Congress coming to the rescue of a bank."
Brainstorming for Failure: Paul Volcker
Paul Volcker, former Fed Chairman
"In principle [international regulators] all say [planning a resolution is] a great idea. In substance, they’re not doing a damn thing."
Brainstorming for Failure: Sheila Bair
Sheila Bair, Chairman of FDIC
"You always have some boneheads that are going to fail. ... This will work best when you’re dealing with a one-off bonehead."
