Stress Test - an Education in Crisis

"There's no way to solve a financial crisis without creating some moral hazard, without protecting investors and institutions from some of the consequences of excessive risk taking. They were, in Ted Truman's phrase, collateral beneficiaries of an effective emergency program. It was impossible to design an effective rescue for the intended beneficiaries -- the people who lived and worked in those countries -- without some collateral beneficiaries" [p. 67]

Extract from Stress Test: Reflections on Financial Crises by Timothy F. Geithner, Crown/Random House, 2014.