Charles Dallara Quotes

If I finance a bank and I know if the bank will get in trouble, I will be hit and I will lose money, I will put a price on that.

Market discipline can only limit moral hazard to the extent that debt and equity holders believe that, in the event of distress, they will bear costs.

A financial institution has the task of taking risks, and if it's a well run institution - say, Goldman Sachs - it tries to cover the potential losses to itself, but only to itself.

It is very difficult to predict when a bond crisis could happen.

For years, critics of Fannie Mae have warned that it does not give them enough information to judge its risks.

Fannie Mae has never publicly disclosed how much money it could lose if interest rates rose 1.5 percentage points in a very short period of time.

Everyone is exposed to economic risks of some kind.

I've learned that all investments have risk.

When you lose control of risk at a financial institution, you do a variety of unfortunate credit extensions or purchases - and all of a sudden, you've blown up your business.

The single greatest line I ever wrote as an analyst was after Lomas said they were hedged: 'The Lomas Financial Corporation is a perfectly hedged financial institution: it loses money in every conceivable interest rate environment.' I enjoyed writing that sentence more than any sentence I ever wrote.

When you're levered 9 to 1, it'd be unreal for a bank to go down.

It would be one of the most irritating experiences in the world to do a lot of work to uncover a fraud and then at have it go from X to 3X and at h the crooks happily partying with your money while you're meeting margin calls. Why would you want to go within hailing distance of that?

My basic advise is don't lose money

The liabilities are always 100 percent good. It's the assets you have to worry about.

The government-sponsored institution Fannie Mae, when I look at its risks, seems to be sitting on a barrel of dynamite, vulnerable to the slightest hiccup. But not to worry: their large staff of scientists deemed these events "unlikely."

The business side of real estate investing is fraught with risk. Unlike purchasing mutual funds or savings bonds, with real estate, you can lose money; this is one of the reasons that seasoned real estate investors caution neophytes never to get too emotional about a property and always be willing to walk away.

Loving something doesn't make it a good investment.

I lost my computer business when I was 29 because I gave credit to firms I didn't investigate. I lost my house and had to move back in with my parents and then I lived in an office for six months.

A club like ours loses £8-10m every year to be competitive, and nobody wants to keep a business that is losing money every year.

Never lend people money you can't afford to give them as a gift.

In a world without an Ex-Im Bank, which finances just 2 percent of U.S. exports, private firms would provide the insurance and credit these companies need, but at market rates that reflect risk of default.

Money comes and goes. I may make a million dollars, then get a divorce and damn near lose all of it.

The cost of money rises dramatically if you can't afford to keep it in a bank.

If you play professionally, you can expect to go broke at some point.

Uncertainty is bad for business.