(Bloomberg) -- Large global financial institutions need to be better prepared to tell the public how they’ll handle a crisis so that creditors, investors, customers and counterparties will be less likely to flee if one actually occurs, according to the top US securities regulator.
“All of these communities will be focused on a set of questions that can be boiled down to: Should they stick with the financial institution or cut their risks?” Gary Gensler, chair of the US Securities and Exchange Commission, said Tuesday in prepared remarks. Gensler was speaking at an event in Washington sponsored by the Peterson Institute for International Economics.
Crises and potential restructuring deals often brew over a weekend, and Gensler said the lawyers, accountants, and management of the world’s biggest financial firms should be planning how they would set up for the disclosures that the capital markets would demand in time for Monday’s open in Asia markets.
“The time to best prepare for that disclosure is when there isn’t a tornado,” Gensler said.
©2024 Bloomberg L.P.
