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)