Simon Johnson: belief

Transcript context

…Sure, but isn’t that a huge problem? We’re signaling the CoCo bonds don’t make any sense, you ought to just buy the equity. Haven’t we abolished CoCo bonds as an institution moving forward, at least in that context? I think there’s going to be a lot of repricing in that market for that reason. But I think the concern, Tyler, was that the convertibility would not happen, that those bonds would be protected precisely because of the kind of contagion fears that you mentioned a few moments ago. At least the authorities felt confident enough to do that, and that presumably means, hopefully, they know who owned those bonds, and they were not owned by highly leveraged entities that could themselves be in trouble. So far — it’s less than 48 hours after that happened — so far, so good, but let’s see exactly what the linkages are between various financial-sector firms in Europe. What’s the likelihood and time frame for a dollar central bank digitally managed currency? Is it ever going to happen?…

Stored transcript either side of the excerpt. The highlighted words are the published quote; the surrounding text is unedited source, never generated.