Some of his experiments failed or were counterproductive, but his decisions to declare a bank holiday upon taking office in March 1933 and to sever the link between the dollar and gold helped arrest the descent of the U.S. financial system and set off a strong, albeit incomplete, recovery.
If a bank has put all of its assets into long-term illiquid assets, it may show high levels of profitability for a few quarters, but it is unlikely to remain in business for very long. Finally, let me turn to the role of the Boards of Directors and of senior management. The financial crisis involved failures of corporate governance at many different levels.