--- title: "Meaning & Key Takeaway of: You shouldn't be trying to create a…" description: "\"You shouldn't be trying to create a system where no bank fails, but you should be creating one that catches a bank and allows it to fail without impact..." image: "https://sms4smile.com/quotes/i/5a9/bob-diamond-37438_bank_you-shouldn-t-be-trying-to-create-a-syst_884017.jpg" --- # You shouldn't be trying to create a system where no bank… ![“You shouldn't be trying to create a system where no bank fails, but you should be creating one that catches a bank and allows it to fail without impacting the financial markets.” quote by Bob Diamond](https://sms4smile.com/quotes/i/5a9/bob-diamond-37438_bank_you-shouldn-t-be-trying-to-create-a-syst_884017.jpg) [Download](https://sms4smile.com/quotes/i/5a9/bob-diamond-37438_bank_you-shouldn-t-be-trying-to-create-a-syst_884017.jpg) [Open image](https://sms4smile.com/quotes/i/5a9/bob-diamond-37438_bank_you-shouldn-t-be-trying-to-create-a-syst_884017.jpg) > “You shouldn't be trying to create a system where no bank fails, but you should be creating one that catches a bank and allows it to fail without impacting the financial markets.” [Bob Diamond](https://sms4smile.com/quotes/author/bob-diamond/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. A resilient system should allow individual failures without systemic collapse. **In simple terms:** Let banks fail safely. Key Takeaway Design safety nets that isolate failures. Themes finance risk management regulation Mood analytical cautious Type economic policy When to use this quote - banking crises - financial regulation - market stability - policy design Key Concepts systemic risk moral hazard Questions to Reflect On - How to balance safety and confidence? - What safeguards are needed? A Different Perspective Implementing isolation can be complex and may reduce confidence. ★ ★ ★ ★ ★ No ratings yet [Bank](https://sms4smile.com/quotes/about/bank/) [Bank Allows](https://sms4smile.com/quotes/about/bank-allows-1081596/) [Bank Fails](https://sms4smile.com/quotes/about/bank-fails-888819/) [Catches Bank](https://sms4smile.com/quotes/about/catches-bank-1081594/) [Create](https://sms4smile.com/quotes/about/create/) [Create Bank](https://sms4smile.com/quotes/about/create-bank-1081595/) [Creating](https://sms4smile.com/quotes/about/creating/) [Customer](https://sms4smile.com/quotes/about/customer/) [Fail](https://sms4smile.com/quotes/about/fail/) [Fails](https://sms4smile.com/quotes/about/fails/) [Financial](https://sms4smile.com/quotes/about/financial/) [Financial Market](https://sms4smile.com/quotes/about/financial-market/) [Financial markets](https://sms4smile.com/quotes/about/financial-markets/) [Markets](https://sms4smile.com/quotes/about/markets/) [Should](https://sms4smile.com/quotes/about/should/) [System](https://sms4smile.com/quotes/about/system/) [Trying](https://sms4smile.com/quotes/about/trying/) [Where](https://sms4smile.com/quotes/about/where/) [Without](https://sms4smile.com/quotes/about/without/) [You](https://sms4smile.com/quotes/about/you/) ## Related quotes > [Bailing out every bank that fails makes the system riskier, not safer.](https://sms4smile.com/quotes/nassim-nicholas-taleb/bailing-out-every-bank-that-fails-makes-the-system-riskier-not-safer/) [Nassim Nicholas Taleb](https://sms4smile.com/quotes/author/nassim-nicholas-taleb/) > [It is an axiom nowadays that no bank fails for lack of capital; unprofitable lending is always the underlying cause.](https://sms4smile.com/quotes/james-grant/it-is-an-axiom-nowadays-that-no-bank-fails-for-lack-of-capital/) [James Grant](https://sms4smile.com/quotes/author/james-grant/) > [If a bank fails in China, they behead the men at the top of it that was responsible... If we beheaded all of ours…](https://sms4smile.com/quotes/will-rogers/if-a-bank-fails-in-china-they-behead-the-men-at-the-top-of-it-that/) [Will Rogers](https://sms4smile.com/quotes/author/will-rogers/) > [“The U.S. financial markets had always been either corrupt or about to be corrupted.”](https://sms4smile.com/quotes/michael-lewis/the-u-s-financial-markets-had-always-been-either-corrupt-or-about-to/) [Michael Lewis](https://sms4smile.com/quotes/author/michael-lewis/) > [An open, competitive, and liberalized financial market can effectively allocate scarce resources in a manner that promotes stability and prosperity far better than governmental…](https://sms4smile.com/quotes/henry-paulson/an-open-competitive-and-liberalized-financial-market-can-effectively/) [Henry Paulson](https://sms4smile.com/quotes/author/henry-paulson/) > [There are no free financial markets in America or, for that matter, anywhere in the Western word, and few, if any, free markets of…](https://sms4smile.com/quotes/paul-craig-roberts/there-are-no-free-financial-markets-in-america-or-for-that-matter/) [Paul Craig Roberts](https://sms4smile.com/quotes/author/paul-craig-roberts/) > [Although we work through financial markets, our goal is to help Main Street, not Wall Street.](https://sms4smile.com/quotes/janet-yellen/although-we-work-through-financial-markets-our-goal-is-to-help-main/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [One could imagine such technology outsmarting financial markets, out-inventing human researchers, out-manipulating human leaders, and developing weapons we cannot even understand.](https://sms4smile.com/quotes/stephen-hawking/one-could-imagine-such-technology-outsmarting-financial-markets-out/) [Stephen Hawking](https://sms4smile.com/quotes/author/stephen-hawking/) > [ I've said to \[Donald Trump\], and I think others have said to him that the day that he is the President of the United… ](https://sms4smile.com/quotes/barack-obama/i-ve-said-to-donald-trump-and-i-think-others-have-said-to-him-that/) [Barack Obama](https://sms4smile.com/quotes/author/barack-obama/) > [What we have seen in financial markets should bring home to us all that the central organising principle of this 21st century is interdependence.…](https://sms4smile.com/quotes/kevin-rudd/what-we-have-seen-in-financial-markets-should-bring-home-to-us-all/) [Kevin Rudd](https://sms4smile.com/quotes/author/kevin-rudd/) > [It's very difficult for any particular segment of the stock market to sustain superior performance. The watch word for our financial markets is, "reversion…](https://sms4smile.com/quotes/john-c-bogle/it-s-very-difficult-for-any-particular-segment-of-the-stock-market-to/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [There are still deep-seated structural problems that threaten the economic balance in the world: Between the United States and China, for example, but also…](https://sms4smile.com/quotes/peer-steinbruck/there-are-still-deep-seated-structural-problems-that-threaten-the/) [Peer Steinbruck](https://sms4smile.com/quotes/author/peer-steinbruck/) > [The insurance companies do not refer to the key policy rate when they send their statements. We can only control that rate. Long-term interest…](https://sms4smile.com/quotes/mario-draghi/the-insurance-companies-do-not-refer-to-the-key-policy-rate-when-they/) [Mario Draghi](https://sms4smile.com/quotes/author/mario-draghi/) > [Taming the financial markets and winning back democratic control over them is the central condition for creating a new social balance in Germany and…](https://sms4smile.com/quotes/sigmar-gabriel/taming-the-financial-markets-and-winning-back-democratic-control-over/) [Sigmar Gabriel](https://sms4smile.com/quotes/author/sigmar-gabriel/) > [Well, as you know, we're working through a difficult period in our financial markets right now as we work off some of the past…](https://sms4smile.com/quotes/henry-paulson/well-as-you-know-we-re-working-through-a-difficult-period-in-our/) [Henry Paulson](https://sms4smile.com/quotes/author/henry-paulson/) ## More by Bob Diamond > [I never set money as a goal. It was a result.](https://sms4smile.com/quotes/bob-diamond/i-never-set-money-as-a-goal-it-was-a-result/) [Bob Diamond](https://sms4smile.com/quotes/author/bob-diamond/) > [In our equities business, 49 of the 50 most important Lehman clients are back doing business with us. The flows are 75 to 80…](https://sms4smile.com/quotes/bob-diamond/in-our-equities-business-49-of-the-50-most-important-lehman-clients/) [Bob Diamond](https://sms4smile.com/quotes/author/bob-diamond/) > [Soon after the financial crisis of 2008, I was at a meeting in Washington with a group of U.S. senators. They had invited me…](https://sms4smile.com/quotes/bob-diamond/soon-after-the-financial-crisis-of-2008-i-was-at-a-meeting-in/) [Bob Diamond](https://sms4smile.com/quotes/author/bob-diamond/) > [When the U.K. or U.S. government issues bonds to fund a deficit, the buyers are not solely in the U.K. or the U.S. -…](https://sms4smile.com/quotes/bob-diamond/when-the-u-k-or-u-s-government-issues-bonds-to-fund-a-deficit-the/) [Bob Diamond](https://sms4smile.com/quotes/author/bob-diamond/) > [Is it okay for a U.S. bank to pay a U.S. banker but not a U.K. bank to pay a U.S. banker?](https://sms4smile.com/quotes/bob-diamond/is-it-okay-for-a-u-s-bank-to-pay-a-u-s-banker-but-not-a-u-k-bank-to/) [Bob Diamond](https://sms4smile.com/quotes/author/bob-diamond/) > [If someone can't behave with their colleagues and can't be part of the culture, it doesn't matter how good they are at what they…](https://sms4smile.com/quotes/bob-diamond/if-someone-can-t-behave-with-their-colleagues-and-can-t-be-part-of/) [Bob Diamond](https://sms4smile.com/quotes/author/bob-diamond/) > [I recall my dad saying about me once that the only time he'd ever heard me say 'never' was when I was asked if…](https://sms4smile.com/quotes/bob-diamond/i-recall-my-dad-saying-about-me-once-that-the-only-time-he-d-ever/) [Bob Diamond](https://sms4smile.com/quotes/author/bob-diamond/) > [The ultimate arbiters of the models of banking and the management of banking are the investors. It's the shareholders.](https://sms4smile.com/quotes/bob-diamond/the-ultimate-arbiters-of-the-models-of-banking-and-the-management-of/) [Bob Diamond](https://sms4smile.com/quotes/author/bob-diamond/) > [Banks hold deposits and savings entrusted to them by individuals, by businesses, by governments and by central banks. They put that money to work,…](https://sms4smile.com/quotes/bob-diamond/banks-hold-deposits-and-savings-entrusted-to-them-by-individuals-by/) [Bob Diamond](https://sms4smile.com/quotes/author/bob-diamond/) > [Finding the balance between making financial institutions safe and secure and also fostering economic growth and job creation is what we need. We need…](https://sms4smile.com/quotes/bob-diamond/finding-the-balance-between-making-financial-institutions-safe-and/) [Bob Diamond](https://sms4smile.com/quotes/author/bob-diamond/) > [My obligation is to the owners of Barclays, my shareholders. They hired me. People who criticise compensation for individuals in isolation at, say, BarCap,…](https://sms4smile.com/quotes/bob-diamond/my-obligation-is-to-the-owners-of-barclays-my-shareholders-they-hired/) [Bob Diamond](https://sms4smile.com/quotes/author/bob-diamond/) [Explore all 12 Bob Diamond quotes ](https://sms4smile.com/quotes/author/bob-diamond/) ## More Bank quotes > [It isn't what a man's got in the bank, but what he's got in his head, that makes him a great merchant.](https://sms4smile.com/quotes/george-horace-lorimer/it-isn-t-what-a-man-s-got-in-the-bank-but-what-he-s-got-in-his-head/) [George Horace Lorimer](https://sms4smile.com/quotes/author/george-horace-lorimer/) > [My aim was to make money for the bank. You lose track of the amounts involved when you are engaged in this kind of…](https://sms4smile.com/quotes/jerome-kerviel/my-aim-was-to-make-money-for-the-bank-you-lose-track-of-the-amounts/) [Jerome Kerviel](https://sms4smile.com/quotes/author/jerome-kerviel/) > [I earnestly feel terrible for any mistakes at the bank.](https://sms4smile.com/quotes/steve-mnuchin/i-earnestly-feel-terrible-for-any-mistakes-at-the-bank/) [Steve Mnuchin](https://sms4smile.com/quotes/author/steve-mnuchin/) > [You can look at the West Bank. Cities are like prisons. They can be closed quickly by the Israeli forces, and everything stops in…](https://sms4smile.com/quotes/hassan-nasrallah/you-can-look-at-the-west-bank-cities-are-like-prisons-they-can-be/) [Hassan Nasrallah](https://sms4smile.com/quotes/author/hassan-nasrallah/) > [What we prefer to do is operate our investment bank in a way that is like what investment banks used to be, which is…](https://sms4smile.com/quotes/warren-stephens/what-we-prefer-to-do-is-operate-our-investment-bank-in-a-way-that-is/) [Warren Stephens](https://sms4smile.com/quotes/author/warren-stephens/) > [The situation in the West Bank and Gaza involves a military occupation amid urban guerrilla warfare, analogous to the British security measures in Northern…](https://sms4smile.com/quotes/jack-schwartz/the-situation-in-the-west-bank-and-gaza-involves-a-military/) [Jack Schwartz](https://sms4smile.com/quotes/author/jack-schwartz/) > [Remember, your bank will never call and ask you to hand over account numbers or say you must swap money from one account to…](https://sms4smile.com/quotes/angela-rippon/remember-your-bank-will-never-call-and-ask-you-to-hand-over-account/) [Angela Rippon](https://sms4smile.com/quotes/author/angela-rippon/) > [I couldn't be working in a bank and launch a clothing line. It's only because cinema gave me a lot of access that I…](https://sms4smile.com/quotes/vijay-deverakonda/i-couldn-t-be-working-in-a-bank-and-launch-a-clothing-line-it-s-only/) [Vijay Deverakonda](https://sms4smile.com/quotes/author/vijay-deverakonda/) > [If there is a risk in a bank, our first question should be 'Okay, what are you in the bank going to do about…](https://sms4smile.com/quotes/jeroen-dijsselbloem/if-there-is-a-risk-in-a-bank-our-first-question-should-be-okay-what/) [Jeroen Dijsselbloem](https://sms4smile.com/quotes/author/jeroen-dijsselbloem/) > [With post offices and postal workers already on the ground, USPS could partner with banks to make a critical difference for millions of Americans…](https://sms4smile.com/quotes/elizabeth-warren/with-post-offices-and-postal-workers-already-on-the-ground-usps-could/) [Elizabeth Warren](https://sms4smile.com/quotes/author/elizabeth-warren/) > [True wealth is not measured by how much money you've got in the bank or how many toys you've got. Some of the happiest…](https://sms4smile.com/quotes/rashad-evans/true-wealth-is-not-measured-by-how-much-money-you-ve-got-in-the-bank/) [Rashad Evans](https://sms4smile.com/quotes/author/rashad-evans/) > [I might have added zeros to my bank balance and followers to my Instagram account, but apart from that, I still lead a middle-class…](https://sms4smile.com/quotes/vikrant-massey/i-might-have-added-zeros-to-my-bank-balance-and-followers-to-my/) [Vikrant Massey](https://sms4smile.com/quotes/author/vikrant-massey/) > [Monetary policy transmission encompasses the whole continuum of interest rates; of course, the central bank only determines the overnight policy rate.](https://sms4smile.com/quotes/urjit-patel/monetary-policy-transmission-encompasses-the-whole-continuum-of/) [Urjit Patel](https://sms4smile.com/quotes/author/urjit-patel/) > [I actually love Twitter and Instagram. 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Immediately,…](https://sms4smile.com/quotes/noam-chomsky/the-oslo-accords-in-1993-determined-that-the-gaza-strip-and-the-west/) [Noam Chomsky](https://sms4smile.com/quotes/author/noam-chomsky/) [Browse all 916 Bank quotes ](https://sms4smile.com/quotes/about/bank/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "You shouldn't be trying to create a system where no bank fails, but you should be creating one that catches a bank and allows it to fail without impacting the financial markets.", "creator": { "@type": "Person", "name": "Bob Diamond" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/bob-diamond/you-shouldn-t-be-trying-to-create-a-system-where-no-bank-fails-but/", "about": { "@type": "Thing", "name": "Bank" }, "@id": "https://sms4smile.com/quotes/bob-diamond/you-shouldn-t-be-trying-to-create-a-system-where-no-bank-fails-but/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/5a9/bob-diamond-37438_bank_you-shouldn-t-be-trying-to-create-a-syst_884017.jpg", "contentUrl": "https://sms4smile.com/quotes/i/5a9/bob-diamond-37438_bank_you-shouldn-t-be-trying-to-create-a-syst_884017.jpg", "url": "https://sms4smile.com/quotes/i/5a9/bob-diamond-37438_bank_you-shouldn-t-be-trying-to-create-a-syst_884017.jpg", "width": 1080, "height": 1080, "caption": "“You shouldn't be trying to create a system where no bank fails, but you should be creating one that catches…” — Bob Diamond", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Bob Diamond", "item": "https://sms4smile.com/quotes/author/bob-diamond/" }, { "@type": "ListItem", "position": 4, "name": "You shouldn't be trying to create...", "item": "https://sms4smile.com/quotes/bob-diamond/you-shouldn-t-be-trying-to-create-a-system-where-no-bank-fails-but/" } ], "@id": "https://sms4smile.com/quotes/bob-diamond/you-shouldn-t-be-trying-to-create-a-system-where-no-bank-fails-but/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```