Access Quote by Timothy Geithner
“We judged that a sudden, disorderly failure of Bear would have brought with it unpredictable but severe consequences for the functioning of the broader financial system and the broader economy, with lower equity prices, further downward pressure on home values, and less access to credit for companies and households.”
About This Quote
Source Speech: Testimony before the U.S. Senate Banking Committee, 2009
A sudden collapse of a major bank would trigger unpredictable, severe fallout across markets, lowering stocks, home values, and credit availability.
In simple terms: Bank failure spreads risk, hurting economy and credit.
Key Takeaway
Prevent systemic risk through oversight.
Themes
finance
systemic risk
economy
regulation
credit
Mood
cautious
analytical
serious
Type
policy
analytical
When to use this quote
- central bank planning
- regulatory stress testing
- corporate risk management
- government bailout decisions
Key Concepts
macroprudential policy
contagion
financial stability
market confidence
Questions to Reflect On
- How can regulators balance stability with market dynamism?
- What early signs indicate systemic vulnerability?
A Different Perspective
Mitigating risk may limit market freedom and innovation.
