Market Insider

Paulson joins chorus of concern about liquidity

Henry Paulson
Kirsten Chang | CNBC

Henry Paulson on Wednesday became the second former Treasury secretary in a week to express concern about the potential for liquidity troubles in financial markets due to changes in the activities of Wall Street firms.

The chorus of concern about the limited liquidity in both corporate bonds and Treasurys gets louder daily, with high-profile figures like JPMorgan CEO Jamie Dimon saying recently that volatility in the bond and currency markets is a "warning shot across the bow."

Former Treasury Secretary Larry Summers last week said regulators should make a priority of addressing bond market liquidity, brought on in part by efforts to make institutions safer after the financial crisis.