Also in this playlist...
This transcript is automatically generated
-- -- be joined again with Robert -- -- say.
The men who -- one of the biggest beneficiaries of those financial rescues -- -- was at the country at the Thomas stress he -- -- -- -- -- But what do you think that at that that there was a distinction the -- rescues at that time Bob -- well worth it.
-- about it overall auto as well as financial.
The financial market financial market that's where Romney -- the dishonest and and there's a distinction the fact is if you go back to what happened.
The financial system stopped.
Nobody was trusting anybody we -- know who was -- financial institution that would be left standing at the end of the day.
And and we have an integrated financial system around the world -- -- they've integrated regulation.
Or integrated supervision but we -- integrated financial system.
If we did not get it going again.
We would be sitting here today in the worst depression.
In the last several hundred years how can you know that.
Because what happens is is it's like anything else if you put all of the money around.
And no credits available no source of funds -- was that there was credit freezers as locking up that subject locked up and -- stopped.
Nobody would know so -- walk into it you know the best way to understand what what can happen.
Isn't that wonderful movie which is my inspiration every year we have a movie theater and -- new York and we play it's a wonderful life.
The town fills up the theater we have a thousand seats can't get in because they see that -- -- of that movie talks about what happens when the public packs.
What happens when the run on the bank.
And when you when you go to that bank -- -- -- your money is sitting in your neighbor's house we'd like -- that we don't have that -- When you get a run on the world financial system which started happen.
There's just not a way to handle it there's just too much.
Demand for cash to put on your mattress that work.
Here's where I feared.
It -- and had passed it that it was a slippery slope.
-- -- led city ought to be on -- -- to about those of the list but did that.
Now we have this policy apparently would no longer too big to sell I I can't imagine that a BankAmerica Citigroup who were in trouble we wouldn't do it all over again -- you thought.
I don't think we would but but but the issue becomes we -- rescue them if they -- in trouble no we wouldn't because they think the financial system today.
And the way it's regulated.
Is sounder than ever before.
I think we've -- politics is one -- -- We just on its summer what you see people were not prepared with the amount of capital.
They they didn't think through the leverage ratios did not think through the housing market and what was going on nobody was who don't understand that but I -- remembered the stocks careening.
And that produce the panic.
That produce I -- that's what happened but what you think is the cause the cause of stock screening was affect the financial system stopped.
You see that market -- get ahead of the reality.
That market -- they -- the reality we had another freefall on financial stocks now we wouldn't see that same thing I think of the bank were to fail.
First of all the large bank in terms what is there's a lot more cushion of capital than before.
Their ability to leverage themselves.
Is is is less than before the fact of the Volcker Rule I understand -- lot of controversy about but basically says if you're an institution the system residences.
That takes federally -- Federal deposits don't go crazy but you you won't go crazy with -- you could not you can't you won't and so therefore you wanna have federally insured deposits you can't do everything you want so I think that's a -- system.
Better regulated than before if a bank were to fail now I believe that the regulators.
Would be able to come out and -- the financial system were better should keep in mind -- -- investment banks.
Yet AIG should involved in a lot of activities that actually -- word that the the financial system the banks and that financial system would depend on the.
But you'll whereas in Dublin I know is it can't happen again -- does -- But when I hear even institutions like -- I don't know to what degree that are kind of backed prime mortgage bonds -- investors that sort of a and others -- -- -- Goldman was an involved who's to say that we can't repeat the same sense.
Because -- let me give -- an example for AIG.
Here in the United States I was retired I was watching what's happening around the world.
In the United States you had regulators on television arguing about who's -- do what with a capital and the cash.
Who's gonna support AIG get a controversy here in New York between insurance regulator in the governor.
Covers is a wanna help AIG the insurance regulators has not how I don't -- AIG I'm concerned about the policy -- When you go to Thailand if you go to Singapore you go to Hong Kong go to Taiwan.
Those regulators want television saying we regulate the -- of AIG in our country.
And you Begin be confident.
That your money is safe and for those you are rushing to take your money out we can only tell you that we're confident.
You're okay and you know what happened the -- to Singapore reappeared to the money back into their accounts so and so we need a regulator that can come on and say look.
I am absolutely confident.
In the soundness of our system are.
Filter by section