Exact(3)
Entering the "too big to fail" debate, Geoghegan said the financial system needed banks such as HSBC that were "big enough to cope".
As the authors remark, this looks like a repeat of the Triffin paradox of the 1960s in which the world financial system needed dollars to function but when more dollars were supplied, investors became less convinced of their value.
One minute it was 85-year-old Bear Stearns that collapsed, the next it was 158-year-old Lehman Brothers, and then the whole financial system needed bailing out as confidence in free-market capitalism itself all but evaporated.
Similar(56)
"The financial system needs a global sheriff," he said.
"That confidence in the financial system needs to increase".
The financial system needs regulating and supervising in different ways.
Just as our financial system needs an overhaul, so too does our political system.
This crisis built up over years, and the financial system needs more time to adjust.
Still, accounting experts say the shadow financial system needs some sunlight.
But regulators — and the financial system — need a more objective way to assess risk.
What the financial system needs just now is the rarest of political virtues: self-restraint.
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