14 Sep 2018
Lessons Learned 10 Years After the Financial CrisisTopics:
Hank Paulson (MBA 1970)
(Yahoo Finance Video)
Former Treasury Secretary Hank Paulson (MBA 1970) sat down recently with former Federal Reserve Chairman Ben Bernanke and fellow Treasury Secretary Tim Geithner to discuss the global financial crisis in an event hosted by the Yale School of Management and the Brookings Institute and in an extended interview with public radio's Marketplace.
The event, Brookings notes, was “part of an initiative, led by the three former officials, to document how and why the U.S. government’s responses to the financial crisis of 2007-2009 were designed the way they were.” In the video from the event, when asked for the worst personal moment, Paulson recounts the weekend that it became clear that Lehman Brothers was going to fail. “I was overcome with a sense of fear,” Paulson says, noting that he eventually found solace after a call with his wife. The events of the period were so chaotic, he notes, that he didn’t even check in with his brother—“my best friend”—who was a senior vice president at Lehman Brothers until several days later.
In an OpEd in the New York Times, the same trio outlines “What We Need to Fight the Next Financial Crisis,” noting that to contain the damage of any future crises, “the Treasury and financial regulators need adequate firefighting tools.” They warn, too, of complacency, saying that, “We must also resist calls to eliminate safeguards as the memory of the crisis fades. For those working to keep our financial system resilient, the enemy is forgetting.”
View video at Yahoo Finance
Listen on Marketplace
Read more at the New York Times