SPECIAL EDITION: CORONAVIRUS: Commissioner Sharon Bowen on Getting Past the Financial Crisis

share tips, resources and some much needed inspiration. Today I'm joined by Commissioner Sharon Bowen. Our current situation is not only a health crisis, but a financial crisis, and Sharon knows the implications of this well. She serves on the board of the New York Stock ex Change and sat on two major US government financial commissions dedicating to protecting consumers and investors in the aftermath of two thousand eight as well as in the aftermath of nine eleven, including

serving as a Commissioner of the CFTC. Sharon, thanks for talking with us today. Thanks so much for having me. Kim. So you've been through nine eleven in New York City, UH, and the Great Recession of two thousand eight, What did we learn through those difficult events and can you give us a perspective on what's happening to the markets right now. Yes, each of those spirits presented an extraordinary period of uncertainty in our country and that's definitely the case today as well,

but the causes of really different. The second thing I would say that they have in common is that we needed practice uh government intervention. We needed action by both the public and private sectors to respond to solutions. And the third thing I would say, in terms of what they will have in common, is said that the future will look really different, will be stronger in many areas, but at the same time it will highlight many weaknesses.

So the two thousand eight financial prices, you know, we had okay markets where we didn't know where many of the risks were. Um, so we had great intervention of our government with the enactment of dog Frank Um And as you know that, as a Commissioner of the cftc UM, I had the privilege of implementing many of those rules and because of that, our financial markets are much more resilient. None eleven Again with an outside threat that was not

a financial market crisis. UM. But likewise, we had government intervention with travel restrictions UM, and we had the involvement with the individual communities. Number of my need of the you know, the slogan if you see something, say something, which was a really great way to empower individuals to help us address UM those threats and as you mentioned at the very beginning, COVID nineteen project really invisible threat

for us. It's a public health crisis, but it's definitely going to have a significant effect on our economy, which is why you're seeing the volatility in the market at right now. I think our federal government, particularly with respect to monitor policy, it's doing a really great job of pumping liquidity in the market, and I really applied UM

those you know, those actions. UM. Likewise, I do a p the state government, who are really stepping up to the plate and for market pictures for cheaping our markets open and transparent, because it's really important for every investor to have access to fund So have we settled that. I think what we've learned from this is that we need a partnership with the public sector, with government in our local community. At the same time, I think that's

what's gonna help us UM overcome this kne challenge. Now, in your role as the first African American Commissioner of the CFTC and also in your role at spec UH, you had had an important role to play in making sure some of the most vulnerable UH we're being UM thought about in this recovery period and also some of the regulations that you implemented UM in this moment, we know that women are particularly vulnerable. How are women going

to be affected by this downturn? The chemis you know, women make up thirty nine percent of the twenty eight million small businesses in the US and contribute about one point six twillion dollars in national revenue and employed nearly nine million people. So women are will drivers of our economy. We also, as women control over help help half of the wealth in the US, and we're projected control two thirds of it by twenty twins. So women clearly need to be involved and have a seat at the table.

I'm mindful of the fact that the high unemployment. Yeah, it's going to be reflected in some of the jobs what waitresses, UM, educators, hotel workers, UM service providers who are women and who are already under employed and paid less than months of the dollar. So I think it's even more urgent that small businesses UM, and particularly women owned businesses have access to capital as quickly as possible so we can continue to be drivers of our economy.

I mean a lot of government actions are being taken right now. UM, for example, the FED pledging to buy an unlimited amount of bonds. How do these actions help individuals? I mean, it's going to help to move out some of the short term pain, but I think we're going to need a longer term solution. UM. I mean, I think some of the actions taken, for example, you can't be foreclosed, your mortgages landwards can't affect you. UM. Those are nice money days fixes, but we have to figure

out a way to get income in the hands of individuals. UM. We do reach the projected unemployment UH prediction, that's going to have really dark consequences for our economy. UM. So I think we're gonna need to to think longer term and terms in terms of how we can get our economy back in order. But as you know, the uncertainty right now also it's driven by the fact that this is a health crisis, and so the sooner we can give some predictability and certainty and leadership in terms of

what tomorrow will look like. I think then we can have a path to the new next normal. We'll be back after this break. It's very clear that there is a lot of um and and well founded stress and anxiety and fear UM in terms of individual's health, individuals, families health. And there's also a lot of fear about the financial markets, about job security. I mean, given all your experience and everything you've seen, what is the best attitude, UM that an individual can take and and sort of

what what techniques do you recommend? Well, I would say don't panic um the that you were going to see increase volatility UM. But there are financial markets are doing what they are really you know, set up to do. And frankly, with technology that we have today, we're able to have our markets function electronically. That's something we didn't really have back in two thousand eight. Um. We also know that we have the ability for people who work from home well, which really I think it's going to

reshape our economy going forward. And obviously with that we we have a much smaller carbon footprint and and a solution to our global pollutions UM issue. But I would just encourage people to continue to support each other, to follow the directions and instructions from our doctors and from our world leaders and from our local government officials. UM. The market will take care of itself, but it's most important that we first and foremost take care of ourselves

for our local business. I've heard great stories, for example, of people ordering pizza take out to be delivered for people who need the food. That keeps that pizza places in business, and it solves the problem of feeding people who otherwise don't have the access to get two food.

That's the kind of you know, resiliency that communities UM show in times of stress, and so I just encouraged people to continue to do that, to continue to stake connected with your friends, your families, your neighbors and communities, and that's how we can really continue to have trust and faith in our system and to grow our economy in the future. So obviously, UM, this is a very dark time for many and it's a very difficult period

for really all of us. What makes you optimistic in this moment, what makes the really optimistic, Kim, is the things I see now in terms of people making the sacrifices UM, which are really important that we continue to do so UM by volunteering to stay home and not spread as far as that is not in it, but so sort of giving. So I'm just very impressed with bad and I hope people will will still continue to

do so. The other wayson I'm really optimistic is that we found some solutions to some of the cracks that we that we saw kids now have to learn by computer, and we discovered that many of our kids and public schools didn't have computers, and so the private sector reached out and donated computers to these kids who didn't have it. You know, likewise food UM was not available to kids when when schools closed, so people came up the solution of having you know, pilate places wh kids can come

and grab and go with their mills. So it's highlighted the needs cracts in our system. But it also gives me a positive optimism that you know, we've come up with solutions when we need to. Well, it's I'm wonderful to talk to you about this, and I think we'll be checking back in with you. UM. We will all try to maintain the good and sort of calming attitude that you have about staying calm and not panicking. And it's good to hear that you think that we as

a society and then our financial markets are resilient. So thanks so much Aaron for joining us. Now, thanks thank you for having me chim and and also yes, thank you to the healthcare providers and those are out there in the front lines supporting us every day. Yes, we really have to be grateful for these health care providers. What they're doing is just so incredible. Thanks so much,

Aaron for joining us. Bye bye. You're listening to Seneca Women Conversations on Power and per This brought to you by the Seneca Women podcast Network and I Heart Radio with support from founding partner p And Listen to Seneca Women Conversations on Power and Purpose on the I Heart Radio app, Apple Podcasts, or wherever you get your podcasts, and please support this podcast by telling your friends, subscribing

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