There’s no way to avert the next financial crisis, warn former regulators from 2008 meltdown

Reforms have strengthened the financial system. Banks have bolstered their balance sheets. Regulators now examine financial institutions once a year to make sure they can weather a downturn.

Yet a decade after the financial crisis, there’s no telling when the next calamity will strike, according to three regulators who helped steer the country through the meltdown.

“It’s a forever war,” Timothy Geithner, the former New York Fed chairman and Obama administration Treasury secretary, said during a panel discussion on the financial crisis at the Brookings Institution on Wednesday.

“There’s no way to anticipate the full range of things that can cause a system to break down. It’s good to worry about all the potential sources of shock but you must be humble and skeptical about the ability of people to identify, and therefore, preemptively diffuse those things,” he said.

 

Source: CNN Money

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