PARTICIPANTS
Henry Paulson, Wendy Paulson, Liz Kolshak, Bob Thomas, Annelise Anderson, Martin Anderson, Gary Becker, Michael Boskin, John Cogan, Morris Fiorina, Joseph Grundfest, Eric Hanushek, Caroline Hoxby, Charles Jones, Pete Klenow, Stephen Langlois, Ronald McKinnon, John Powers, John Raisian, Condoleezza Rice, John Shoven, George Shultz, Johannes Stroebel, Kimberly Summe, James Van Horne
ISSUES DISCUSSED
Hank Paulson addressed the group on a number of issues, in particular relating to the financial crisis. He also commented on possible policy responses. He began by giving the group an overview of his views on the events of September 2008, stressing the speed at which these events unfolded. He commented on the change of TARP funds from their originally intended use, and analyzed whether buying assets from financial institutions would have been the correct response. He discussed the issue of financial institutions being “too big to fail.” He also remarked on the role of derivatives in resolving financial institutions, as well as the possible role of a derivatives clearing house. He furthermore discussed the need for developing a regulatory framework that could deal with financial markets, however they would develop, and the role of a systemic risk regulator in such a framework.
