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U.S. market better able to absorb potential market shock compared with 2008: SEC chair – Metro US

U.S. market better able to absorb potential market shock compared with 2008: SEC chair

U.S. Senate Banking Committee holds hearing to examine the Securities
U.S. Senate Banking Committee holds hearing to examine the Securities and Exchange Commission on Capitol Hill in Washington

WASHINGTON (Reuters) – The U.S. market is in a better position to absorb a potential global shock from a major company default compared with the years prior to the 2007-2009 financial crisis, Securities and Exchange Commission (SEC) chair Gary Gensler said on Tuesday.

Gensler’s remarks follow a jittery trading day for Wall Street on Monday due in part to investor fears of contagion from a potential collapse of Chinese property giant China Evergrande Group.

“I do think we are in a better position in 2021 to absorb some of those shocks than we were prior to the ’08 crisis,” Gensler told the Washington Post during a livestreamed interview, citing reforms adopted following the decade-ago financial crisis to bolster the financial system.

“But it doesn’t mean that we are isolated – our economies are connected around the globe.”

(This story corrects typographical error in headline)

(Reporting by Michelle Price)

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