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.

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About Henry Paulson

Henry Paulson was a contemporary American investment banker and financier. Henry Merritt "Hank" Paulson Jr. is an American investment banker and financier who served as the 74th United States secretary of the treasury from 2006 to 2009. Read more on Wikipedia →

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