That has probably ensured that there is little systemic threat to the financial system of the sort once posed by LTCM.
After the failure of one effort to overhaul a major part of the mutual fund industry, top government officials worked on Thursday to find alternative ways to rein in what they see as a systemic threat to the financial system.
The meetings represented a sharp turn after months of acrimonious debate between the industry and an array of regulators who say that money market funds still pose a systemic threat to the financial system.
They declared that they had found no "systemic" threat to the financial system from the foreclosure problems, spoke of "mistakes" and "errors" rather than pervasive fraud and said the banks and servicers now need to "fix" their "processes".
And that would present a systemic threat to the global financial system that would make Lehmans look like a walk in the park," said Britton.
The Treasury fired back at the accusations of complacency, saying 11 federal regulators were coordinating on this issue and they had not found evidence to date of a systemic threat to the broader financial system.
Dr. Michael Burry, after spotting the systemic threat to the global financial system, also started investing in water post-financial crisis, according to the movie featuring him, "The Big Short". Making the sector more important is the relative safety of boring public utility stocks, the forecast increase in scarcity for the crucial resource and the instances of contaminated public water supplies.
Zakaria noted that while the South Korean situation was indeed a crisis, SK banks at the time did not pose a systemic threat to the global financial system.
"If you ain't cheating," said one of the traders involved in the currency exchange scandal, "you ain't trying". If we're not addressing the financial sector's systemic threat to our economy, or its affronts to our system of justice, then we ain't trying either.
But that does not make them a systemic threat.
"That situation is sufficiently rare that is doesn't present a systemic threat.
