A Quote by Ben Bernanke

I would argue that no financial instrument counted as regulatory capital should be allowed to receive any protection from losses. — © Ben Bernanke
I would argue that no financial instrument counted as regulatory capital should be allowed to receive any protection from losses.
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 think one could argue that there's more political input into the regulatory side, and on the regulatory side there seem to be fewer people with financial and banking experience - there are more lawyers, academics, economists, maybe politicians now.
The Official Secrets Act 1989 may need reforming for the digital era, but I would argue that at its heart there should be protection for whistleblowers.
The Constitution should contain a provision that every officer of the Government who should neglect or refuse to extend the protection guaranteed in the Constitution should be subject to capital punishment; and then the president of the United States would not say, "Your cause is just, but I can do nothing for you."
In the future, financial firms of any type whose failure would pose a systemic risk must accept especially close regulatory scrutiny of their risk-taking.
The financial doctrines so zealously followed by American companies might help optimize capital when it is scarce. But capital is abundant. If we are to see our economy really grow, we need to encourage migratory capital to become productive capital - capital invested for the long-term in empowering innovations.
A smart policy should be one that tends to receive the capitals, pays the price for that capital - which is the interest - returns the capital and in the end the factories, the industries, are left to remain in the country.
Capital requires protection, as do the institutions through which it operates. As capital expands its operations, the state that is associated with its protection must develop its capacity for autocratic control. Thus, the "Free World" increasingly resembles a dreary string of heartless police states.
The economic costs, the financial costs, the job losses, the income losses, the fiscal costs of bailing out financial system are becoming larger and larger.
I always forbade everyone to clean my studios, dust them, not only for fear they would disturb my things, but especially because I always counted on the protection of dust. It's my ally. I always let it settle where it likes. It's like a layer of protection.
There are many activities that human beings have been doing "forever." We might argue from that perspective that eating meat should be allowed to continue. Men have been raping women for thousands of years; does that mean that it is normal and should be allowed to continue?
One of the special characteristics of New York is that it is different from a London or a Paris because it's the financial capital, and the cultural capital, but not the political capital.
The financial capital is being concentrated by corporations, institutional investors, and even our pension funds, and being reinvested in companies that repeat this process because it provides the highest return on that financial capital.
Going back to the discussion we were having about immigration reform, some of the most challenging discussions I've had are with activists who essentially would argue that any immigrant from Central America, let's say, who gets here to this country should be allowed to stay because their country is dangerous, their country is poor, and the opportunities for that mom and that kid are much greater here, and why would you send them back?
I have yet to take capital losses on any company. Then again, it's still early.
When our financial system - essentially our money managers, marketers of investment products and stockbrokers - put up zero percent of the capital and assume zero percent of the risk yet receive fully 80% of the return, something has gone terribly wrong in our financial system.
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