Dambisa Moyo on why we can’t let financial institutions fail.
Question: Is Tim Geithner going too easy on banks and hedge funds?
Moyo: I don’t think you can say, we can say that because it’s important to understand the global linkages and perhaps allowing Lehmann Brothers to fail as an example of why you cannot make these decisions very quickly nor you can make them very light…in a very light manner. Not only do others such close linkages and significant linkages in terms of size that could really dramatically affect or cause a collapse of the whole banking system which would not be a good thing where they to be a decision to allow some hedge funds to fail, for example or some investor to fail. So, I actually don’t think so. I think it’s a much more…it is a much more considered approach. I know people are very anxious and very keen to see decisions be made quickly, but I think it’s really important to understand that we know also know that what can happen to its system if a bank is allowed to fail or a big financial institutions is allowed to fail from the experience of seeing Lehmann Brothers fail. So, I actually think that, you know, we would like to see more regulation. We would like to see some changes to the system from where it was in the past, but I don’t think that we should get too hung up on allowing us specific hedge fund or hedge funds to fail.