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Bernanke: U.S. regulators fell short before financial crisis

bernankecrisis.jpg

Federal Reserve Board Chairman Ben Bernanke greets Phil Angelides, Chairman of the Financial Crisis Inquiry Commission.

(Photo Credit: Reuters)

By Ariana Eunjung Cha

U.S. regulators fell short in using their powers "forcefully or effectively" to stop risky practices by banks and were slow to identify and address abuses in subprime mortgage lending before the financial crisis, Federal Reserve Chairman Ben S. Bernanke told a panel investigating the financial crisis on Thursday.

In testimony before the Congressionally appointed committee, Bernanke said that statutory gaps were an important contributor to the buildup of risk in the system but that even when regulators had the tools they needed to stem those risks, they did not use them well.

"Once a crisis occurs, timely and effective action by the government is critical to containing the severity of financial disruptions and their economic effects...However, the crisis revealed large gaps in the government's ability to respond quickly, effectively, and with minimum cost to taxpayers and the economy," Bernanke said.

In a lengthy analysis of the financial crisis, Bernanke said the government did not do enough to protect consumers in the marketplace and to force large financial institutions to strengthen their internal risk-management systems or to curtail risky practices.

"Regulators had recognized these problems in some cases but did not press firms vigorously enough to fix them," he said.

Much of Bernanke's testimony focused on the immediate triggers of the crisis, as well as longer-term structural weaknesses in the financial system. He blamed "shadow banks" (financial entities that are not regulated depositories that help channel savings into investment); poor risk management by insurers and investors; and the permissive standards of lenders that allowed many households, businesses and financial firms to take on more debt than they could handle, among other factors.

Bernanke's remarks were delivered on the second day of hearings by the Financial Crisis Inquiry Commission, which is charged with writing the official account of the causes financial crisis and the subsequent response by U.S. regulators. The government, invoking emergency powers, issued more than $2 trillion in loans since 2008 to help keep key companies alive.

Thursday's event on Capitol Hill is the final public hearing before the commission issues its report in December.

On Wednesday, former Lehman Brothers CEO Richard Fuld said that U.S. regulators
had acted on "flawed information" in making their decision to deny Lehman Brothers aid and forcing it into bankruptcy.

In questioning following Bernanke's remarks, members of the commission repeatedly pressed him on why Lehman did not receive bailout help.

Philip Angelides, chairman of the commission and a former California state treasurer, asked Bernanke to explain the Federal Reserve's decision-making regarding whether Lehman should be considered too big to fail.

Bernanke said he recognized that if Lehman failed the consequences would be catastrophic but that the Fed could not extend a lifeline without a reasonable expectation that it could get repaid.

Commission vice chairman Bill Thomas, a former chairman of the Ways and Means Committee who is now a visiting fellow at the American Enterprise Institute, continued to probe on Lehman. He asked the Fed chief to explain the difference between Lehman and insurer AIG, which ended up receiving a $182 billion taxpayer rescue.

Bernanke said there was a "very big difference" in whether the government was reasonably likely to be paid back." While Lehman's entire value was in financial instruments, he explained, AIG was "the largest insurance company in America, and the
financial products division was just one outpost of this very large and very valuable insurance company."

After 2 1/2 hours of answering questions, Bernanke made a frank admission: Even as the Fed scrambled to save Lehman the weekend before it declared bankruptcy the Fed had already concluded the bank would fail because customers had already declared it dead.

The hearing's second witness, Sheila Bair, chairman of the Federal Deposit Insurance Corp. and among the most vocal critics of the "too-big-to-fail" bailouts, focused on the collapse of two large banks -- Washington Mutual and Wachovia. She said the two cases illustrate that under the rules in place in 2008 there could be "disparate treatment for investors and counterparties in different institutions" but that the sweeping financial regulation bill passed by Congress should make the process more equitable.

By Ariana Eunjung Cha  |  September 2, 2010; 12:44 PM ET
Categories:  Federal Reserve , Financial Crisis Inquiry Commission  
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Next: Highlights from Bernanke's testimony to financial crisis panel

Comments

I trust that Bernanke will include in his criticism his ex-Boss Greenspan who consistently discouraged any effective supervision and regulation of the reckless lending because of his ideological belief that free markets solve everything.

Posted by: Anonymous | September 2, 2010 9:52 AM | Report abuse

Slow they were not. They were complicit. And so was Mr. Greenspan, the SEC, and lest we forget, our Congress. It's called Crony Capitalism.

Posted by: jkarlinsky | September 2, 2010 10:17 AM | Report abuse

"U.S. regulators fell short in using their powers "forcefully or effectively" to stop risky practices by banks and were "slow to identify and address abuses" in subprime mortgage lending before the
financial crisis, Federal Reserve Chairman Ben S. Bernanke said in prepared remarks."

Uhhh, no s**t Ben, ya think?
In other breaking news: Water - its wet!

Posted by: overed | September 2, 2010 10:20 AM | Report abuse

I saw people doing very stupid things in 2003 (home equity loans for more than 100% value for one). That is when I got out of the stock market, reassigning my 401K. I didn't loose anything in the collapse. This was 100% foreseeable, if I saw it coming one would think people TRAINED in business should have seen the same signs.

Posted by: jimjohnd | September 2, 2010 10:20 AM | Report abuse

Once again, Bernanke side steps the Fed's role in a failed monetary policy stance with low interest rates. How can this allegedly renown economist not know that mortgages and bonds are priced off of equivalent term treasury obligations?

ARM rates are based on very short maturities, corporate revolvers are likewise.

The Fed Funds rate is the key rate and when the fed lowers rates to ridiculous levels, not only are bad investment decisions made, the stage is set for money supply expansion and ensuing inflation.

To think also that he is ignorant of the effects on oil prices from the relative value of the $$ versus other currencies resulting from interest rate differentials is even more unbelievable. If the $$ is perceived to buy less, oil prices go up. This is not rocket science, Ben

He, like his predecessor, always fall back on the common excuse, --my equations don't tell me that---

We have been led to the slaughter by economists like Greenspan and Bernanke, and yet we still seem to think they know what they are doing.

Another convenient omission is the cost to depositors from low interest rates of about $440 billion per year is not even counted in the cost of Ben's recovery. To say that the Fed will be repaid by AIG, so what? How about returning the interest income from dead beats like AIG, Banks, Wall Street, debtors, and the Fed government that has been stolen by the Fed?

Good Luck.

Posted by: wesatch | September 2, 2010 10:23 AM | Report abuse

Bernanke is now trying to tell us something that we have been knowing for years now.

This is not news and we don't need the head of the Federal Reserves to tell us what we already know.

He's several years late and trillions of dollars short.

Posted by: lcarter0311 | September 2, 2010 10:24 AM | Report abuse

If regulators were 'slow' to recognize the dangers to financial markets,it is because their political masters (both parties) in Congress and the White House wanted it that way. The political elites (including Rahm Emanuel) benefited handsomely from regulatory neglect to the point of massive crime. But the campaign funding, back room swindles that enriched the politicians and politically connected along with boondoggle trips for the elected kept coming.

You can blame bankers and other financial actors in this, they were also guilty. But, when the elected are bought and paid for, citizens and taxpayers don't stand a chance.

Robert Fuller
Hopewell, NJ

Posted by: fuller1 | September 2, 2010 10:29 AM | Report abuse

Are you listening, Barney Frank and Chris Dodd?

Posted by: bethg1841 | September 2, 2010 10:33 AM | Report abuse

BRILLIANT!

Posted by: Send_in_the_clowns | September 2, 2010 10:44 AM | Report abuse

no, it was a political decision to tank the economy with the belief that they could control it to get obama elected...
well...
they got obama elected and could care about the rest...
as far as they are concerned...
we should be gratefull because we got obama...
well...
I would rather have herpes...

Posted by: DwightCollins | September 2, 2010 10:46 AM | Report abuse

the dem federal goverment gave back more than 3 times the amount of money at stake...
there are a lot of rich dems out there...
and they are not sharing...
thats why many will lose their homes...

Posted by: DwightCollins | September 2, 2010 10:48 AM | Report abuse

NYTIMES article 9/30/99 "Fannie Mae eases credit to aid mortgage lending" PREDICTS the entire financial meltdown as a result of Clinton legislation passed at that time. The whole financial structure was undermined by making mortgage loans to people that could not repay. Consequently, there was a whole lot of worthless paper floating around.

Posted by: Anonymous | September 2, 2010 10:52 AM | Report abuse

Bernanke is also complicit as well, he knew there were problem but chose to ignore it until the last minute.

The problem encountered were a result of reliance on company's risk management rather than their own and acting to prevent it. Several employees in the agencies were pushed to the side when they complained of problems that was brewing simply on the account of the elected leaders in Congress who wanted to be kept that way.

Posted by: beeker25 | September 2, 2010 11:02 AM | Report abuse

I call bullcrap, Ben. There isn't one person with the least bit of understanding of the mortgage market that didn't see this coming. The bankers extracted every last dime out of the market they could with the full cooperation of our legislators. The Fed cooperated and everyone involved got rich. You're a shill for the Fed/Goldman Sachs just as Geitner is. If you ever had credibility, every time you open your mouth it erodes and the mask of your duplicity gleams brighter. Pathetic.

Posted by: Anonymous | September 2, 2010 11:05 AM | Report abuse

"Make Millions in Real Estate with NO MONEY DOWN!!!" It was an industry, at one time, remember? Books, seminars, web-sites, TV advertising...

But, no... the real cause of the mortgage crisis was minority lending, rammed down the throat of banks and brokers by Congress.

"It is pretty to think so".

Posted by: OldUncleTom | September 2, 2010 11:11 AM | Report abuse

the dem federal goverment gave back more than 3 times the amount of money at stake...
there are a lot of rich dems out there...
and they are not sharing...
thats why many will lose their homes...

Posted by: DwightCollins
---------
You ignored several legislations that the Republican majorities pushed at the behest of the financial sectors:
Commodities Future Modernizations Act 2000, G-L-B Act 1999, Alternative Mortgage Transaction Parity Act of 1982
and any attempt to protect consumers at the Federal and State level in the 1990 and 2000 periods were not brought to vote on the account of the Republican leaderships' opposition.

All plus deregulation contributed to the housing bubble and Financial Crisis.

Goes to show you that you are myopic in your view of the blame : blame one side while ignoring the other. It is equivalent of a police officer blaming the victim for the crime while ignoring the perpetrator who is standing next to you.

Posted by: beeker25 | September 2, 2010 11:13 AM | Report abuse

"Make Millions in Real Estate with NO MONEY DOWN!!!" It was an industry, at one time, remember? Books, seminars, web-sites, TV advertising...

But, no... the real cause of the mortgage crisis was minority lending, rammed down the throat of banks and brokers by Congress.

"It is pretty to think so".

Posted by: OldUncleTom
------
You also ignore the fact the industry spend pretty big bucks to get what they wanted for many years (1990s-2000s)until it blew up in their face. It is equivalent of putting a something in a cigarette that will ultimately blow up in the face.

Posted by: beeker25 | September 2, 2010 11:19 AM | Report abuse


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Posted by: Anonymous | September 2, 2010 11:20 AM | Report abuse

They do not ignore it. They just do not know. What to expect from people who cannot even see the facts for what they are? They are just pure fanatics.

Posted by: Anonymous | September 2, 2010 11:22 AM | Report abuse

You look silly in that George Washington costume. Take it off a go take an Econ 1a class.


Stagnant private spending, businesses buying back stock instead of investing, deflationary fears, these all add up to a need for further goverment spending.

A big government stimulus is needed.
Spent money to have:
Feds bail out states
Employ people with investment in green econmic shift


If we don't come up with a way for the economy to grow in earnest, falling tax revenues and deflation will make the national debt grow in real terms without additional governemnt spending. If the debt is going to grow either way we may as well control the outcome. Better to invest in infrascruture, give states a chance to restructure, create jobs and head off deflationary pressure.

The economy is in a place for a fiscal solution, not a monetary one.


Oh we could wait for the economy to clear...just like Japan did.... or just like Herbert Hoover did.

Posted by: Anonymous | September 2, 2010 11:25 AM | Report abuse

Hindsight...a wonderful view....Congressional members knew that the subprime mortgage was "risky", but still went ahead with lending to people who could not afford it...These congressioal members have still not resigned and continue to make decisions on legislation....Throw the bums out....TERM LIMITS for ALL congress!!!!

Posted by: SeniorVet | September 2, 2010 11:43 AM | Report abuse

Maybe the Federal regulators were busy watching porn on their computers to worry about a finanical disaster that was created by a rule change in 1997 in the Rubin Treasury under the Clinton Administration...............but why worry about how we got here.............right?

Posted by: allenridge | September 2, 2010 11:47 AM | Report abuse

@beeker25 wrote: "You also ignore the fact the industry spend pretty big bucks to get what they wanted for many years (1990s-2000s)until it blew up in their face. It is equivalent of putting a something in a cigarette that will ultimately blow up in the face."
--------------------
The Banksters had been spending money as far back as the eye can see. The Mortgage Bankers Association of America was instrumental in the passage of the Federal Reserve Act of 1980. That act alone was responsible for the S&L scandal of the 80s. It was the precursor to every piece of financial deregulation that passed thereafter.

Nothing passes legislation that isn't bought and paid for by Wall Street and most specifically legislation that benefits Wall Street first. For anyone to think that deregulation was enacted to benefit the poor for affordable housing or mortgage assistance is asinine. It was always about the money.

Think I'm wrong? Ask yourself who now owns all the land/houses and has all the money that was lent out these past 15 years of feasting? Who paid for it all? In short, where did all of the money that secured it come from? It was always about the money and all you need do is follow the trail to Switzerland and the Caymans.

Posted by: JenAZ | September 2, 2010 11:47 AM | Report abuse

The damage has already been done to the 53% of Americans who actually pay federal income taxes. After spending hundreds of billions of taxpayer dollars to rescue irresponsible financial institutions, now Bernanke is changing his tune.

Meanwhile, responsible Americans who do not live beyond their means have to 'Pay the Piper' with zero effective returns for their savings accounts. It amounts to a major transfer from the responsible to the irresponsible. If this is the New American Way, we no longer live in a country in which to be proud.

Posted by: lydasue | September 2, 2010 11:51 AM | Report abuse

Gee, I didn't see any mention, by Bernanke, of the the criminal behavior by corrupt democrats like bendover Barney Frank, the congressional black causus, countrywide Dodd, and the ones who looted and bankrupted Fannie and Freddie.
More coverup for the corrupt?

Posted by: LarryG62 | September 2, 2010 11:52 AM | Report abuse

jkarlinsky wrote "Slow they were not. They were complicit. And so was Mr. Greenspan, the SEC, and lest we forget, our Congress. It's called Crony Capitalism."

You are absolutely correct. That's why mainstream America is so angry today. Now we need to find a way to effectively use that anger to close these loopholes and elect new officials. The greed escalated on Bush's watch. All of Congress also held their greedy little hands out for the cut. Time to wipe the slate clean and put a whole new group into office and that includes the current worthless POTUS.

Posted by: Desertdiva1 | September 2, 2010 11:53 AM | Report abuse

They're still talking about this????

Posted by: TooManyPeople | September 2, 2010 11:55 AM | Report abuse

oh come on everybody knows the government is the problem

let the Randians have their way so the USA goes down quicker :)

Posted by: Anonymous | September 2, 2010 12:02 PM | Report abuse

Bernanke you dolt. Congress set up the rules for subprime lending you idiot! Lenders operated under the feds. grand design.

Posted by: Anonymous | September 2, 2010 12:07 PM | Report abuse

DwightCollins wrote: no, it was a political decision to tank the economy with the belief that they could control it to get obama elected...
well...
they got obama elected and could care about the rest...
as far as they are concerned...
we should be gratefull because we got obama...
well...
I would rather have herpes...
*******************
I'm sure you would Dwight because the syphilis has apparently wasted your brain.
|

Posted by: overed | September 2, 2010 12:11 PM | Report abuse

Bernanke is a FED man. The FED is a criminal organization. The FED has been controlling the "regulators" for some years now. Here is the scam of the FED and how it works.

The FED is a privately owned corporation consisting of about a dozen member Family Banks. Half of them are European, so our monetary policy is NOT controlled in America. The FED charges us fantastic sums to create, print and distribute absolutely worthless paper money called, "Federal Reserve Notes."

The Banks who own the Federal Reserve, create and print up 98% of all the money distributed, the Treasury, 2% only

For the results of a House Investigation into Banking in America and the FED, see : [ http://www.save-a-patriot.org/files/view/whofed.html ] This investigation named a number of those Banking Families Here are their names, and others from other sources.

Rothschild Bank of London; Warburg Bank of Hamburg; Rothschild Bank of Berlin; Lehman Brothers of New York; Lazard Brothers of Paris; Kuhn Loeb Bank of New York; Israel Moses Seif Banks of Italy; Goldman, Sachs of New York; Warburg Bank of Amsterdam; Chase Manhattan Bank of New York (Rockefellers)

Federal Reserve Note dollars are created using a criminal moneylenders trick, at least 400 years old, called Fractional Reserve Lending. (see "Money As Debt" at : [ http://www.youtube.com/watch?v=vVkFb26u9g8 ] or read a short explanation at : [ http://www.themoneymasters.com/faqs/ ]

An example of Fractional Reserve Lending : The FED Family Banks "purchase" electronically 1 million dollars in Bonds from the Treasury. They are then allowed to print up 9 million more dollars of valueless money, and loan this out for REAL interest. OR buy other Banks with it. OR buy General Electric and General Motors with it, which they have actually done. Through proxies and "investment funds", they now own the majority of the biggest corporations in America. And they got them for FREE, buying them with valueless money, they printed up themselves, for the price of the paper.

Under the FED charter, no audit can ever be made. The names of the member family banks can never be revealed. The profit of the corporation, the interest on the (entirely fictional) national debt can never be taxed. It amounted to 172 Billion Dollars in 2007. With the Stimulus and Bailout it may reach 5 times that amount in 2010.

Please note that the Stimulus and the Bailout funds were both paid to the Banks who own the FED and printed up, out of thin air, by them. WE have been charged , for that fictional money, with real DEBT.

It is time to close the FED and place men like Bernanke in prison for the rest of their lives, and to leave their families NOTHING by confiscating every house and penny that they own.

Returning money creation to the Treasury will be sufficient to bring the USA back into surplus within five years, as occurred when Lincoln "printed up our own money" during the Civil War.

Posted by: Anonymous | September 2, 2010 12:12 PM | Report abuse

bernanke's either a liar or utterly clueless. perhaps he (and the christopher cox) should have read the newspapers five+ years ago when the fbi reported on the increasing fraud they were tracking in the housing market.

Posted by: mycomment | September 2, 2010 12:28 PM | Report abuse

And all the low-life government employees still have jobs and a guaranteed retirement while the working men and women try to pick up the pieces.

Posted by: gunnysgt77 | September 2, 2010 12:29 PM | Report abuse

It's the perfect cover for the big banksters. They have Congress, (which they own) pass regulation to make it look like they were "forced" to make the loans. When the bubble explodes they blame that very Congress (which they own) instead of themselves. And their reward? A few trillion dollars ON TOP of the trillions they already made from the bubble. Nice work if you can get it.

Posted by: Anonymous | September 2, 2010 12:34 PM | Report abuse

Bernanke and others fail always to consider all the regulators are human. They have doubts, fears, families, security, careers... a system that does not recognize that the distance between a tolerated regulator and a $$#)! whistle blower is very very small.
Here's how you find out: go in and announce that the party is over, everyone has to go out and you put a ticket on their car. Hey, it just got out of hand.
Don't wait for all the thanks. Consider chaning jobs, moving, putting disguises on your kids.
Notice, for instance, how cautious is Bernanke: not only did he do nothing in a timely fashion, he says "oh, they fell short"...
"they" fell "short", said the goalie, explaining that his team was slow to react to the onslaught of the other team and yeah, there were 10 goals.

Posted by: gberke | September 2, 2010 12:35 PM | Report abuse

Do any of you really think that no one in government knew these things were going on? There should be some folks like Bernanke, Bush, Obama, and Greenspan charged with conspiracy and let the courts and a jury decide who was guilty of what and who was paying them. Too long we have allowed the scum at the top of government to monitor themselves. Charge a few rats and the rest of them will trip over their 'pals' to escape paying for their own crimes. But....as long as we leave the crooked to monitor the crooked this will continue to happen.

Posted by: gunnysgt77 | September 2, 2010 12:41 PM | Report abuse

"Slow they were not. They were complicit. And so was Mr. Greenspan, the SEC, and lest we forget, our Congress. It's called Crony Capitalism.

Posted by: jkarlinsky"

Excellent analysis. Both parties are criminally corrupt and both parties are neo-cons. There was no regulatory activity because this was the guiding ideology.

Posted by: garrafa10 | September 2, 2010 12:47 PM | Report abuse

"the dem federal goverment gave back more than 3 times the amount of money at stake...
there are a lot of rich dems out there...
and they are not sharing...
thats why many will lose their homes...

Posted by: DwightCollins"

Only a carnival mark sees any difference between these two parties.

Posted by: garrafa10 | September 2, 2010 12:56 PM | Report abuse

Lehman was systemic globally.

I don't think it was any coincidence Lehman was left to fail.

Lehman was the #1 processor on Wall Street of other governments bonds - if you want to send shock waves throughout the world ? If WW III were fought on financial grounds ? Lehman would be a financial weapon of mass destruction.

Posted by: Anonymous | September 2, 2010 12:56 PM | Report abuse

A laissez-faire disciple of the proven-wrong Greenspan, Bernanke was asleep at the switch while banks ran amok with unregulated rebundling and speculation on an unsound housing market. Then asleep at switch when the panic hit in 2007 and 08.

After that, he staved off financial collapse with a few trillion dollars borrowed from future generations of working Americans - whom now are doomed to pay for the criminal excess of his era and his ilk.

Take a hike, Ben.

- Balkingpoints / www

Posted by: RField7 | September 2, 2010 1:00 PM | Report abuse

Just happened to see this quote on an article this AM.... "Democrats may be competing hard with Republicans to be the standard bearer for big business, but the truth is, big business doesn't care who's in charge, because it has successfully co-opted both parties,".... Devin Numes, CA Congressman

Posted by: gunnysgt77 | September 2, 2010 1:04 PM | Report abuse

But, Why is The Anti-Christ Obama Destroying America. If you truly want to know what is going on; Then you will have to accept these things as the TRUTH. Once you understand the following things; All things will be understood. So I tell you Obama is Satan on Earth, Lawless One, or what ever else you want to call this Demonic Figure. His words describe him, He is a False Hope, If you listen to him you will love him. He carries a Bow without an Arrow. He will conquer all through his speech, his false hoods will capture all who sit and listen to him.
2 Thessalonians 2:11-12
11And for this reason God will send them strong delusion, that they should believe the lie, 12 that they all may be condemned who did not believe the truth but had pleasure in unrighteousness.

Posted by: Anonymous | September 2, 2010 1:04 PM | Report abuse

The Federal Reserve fell short in using their powers "forcefully or effectively" to stop risky practices by U.S. regulators who were slow to identify and address abuses of the Members of the Board who fell short in using their powers "forcefully or effectively" to stop risky proctices by U.S. Banks who were slow to identify and address abuses of the Lenders who fell short in using their powers "forcefully or effectively" to stop ... which is a problem that I think that we all seem to share. So instead, in response to this vicious cycle, I ask simply this: where did this all begin ? For here, I suspect the potential for this continuous spin was all set up, early on, in order to support the illusion of effective policies put forth by the Bush Administration. Maybe as a way to become History Worthy. Or maybe as a way to compensate for his Dad's attempt to manage the same confounding challenge. Of course, I use as my guide to human behavior the rumoured motivations of how the Watergate debacle was actually set up, as a guide of what could be a motivation to create what we have here. So as a result of growing up in this type of environment, I consider just about anything possible, given Washington as my guide.

Posted by: Anonymous | September 2, 2010 1:08 PM | Report abuse

"That's why mainstream America is so angry today. Now we need to find a way to effectively use that anger to close these loopholes and elect new officials. The greed escalated on Bush's watch. All of Congress also held their greedy little hands out for the cut. Time to wipe the slate clean and put a whole new group into office and that includes the current worthless POTUS.

Posted by: Desertdiva1"

Does mainstream America deserve any sympathy? For the last thirty years they have consistently voted against their interests for politicians of both parties who explicitly stated they would destroy the New Deal. Does anyone remember "voodoo economics"? For a few shiny beads and mirrors and the carnival illusion they were wealthy by consuming cheap products from China, they sold themselves, their children, and this country to the highest bidder. The American people deserve precious little sympathy, and this is merely the beginning.

Posted by: garrafa10 | September 2, 2010 1:10 PM | Report abuse

So bernanke said two things today:

1. big govt failed to do its regulatory job... mostly due to laziness and corruption.

2. we should let failing banks fail.

Sounds like big govt is responsible for both poor decisions.

Posted by: docwhocuts | September 2, 2010 1:14 PM | Report abuse

HA!- For decades CONGRESS after CONGRESS has fallen short,- Deathly short America!! - CONGRESS continues to support, work-for, & $BAIL these Criminal Globalist $BANKsters!! - This is Apalling! - The so-called "FED" is a privately owned globalist central bank,- whose biggest Stockholders live in Europe! -- Enough of this Rip-Off CRAP America! -- END the Criminal Un-Constitutional 'Fractional Reserve Banking Practices" by these PONZI 'FUNNY-MONEY' $THUGS!! -- Repeal the Federal Reserve Act NOW AMERICA!! -- If CONGRESS continues this TRAITOR CRAP- then WE know that CONGRESS is in $BED with these Globalist $BANKster Cartel CONs!!! - The 'FED' has created Trillions in USURY INTEREST DEBT!!- And Have STOLEN BILLIONS YEAR AFTER YEAR from the U.S. CITIZENRY!! -- America- take Our' Republic back -- and send these Criminal $BANKsters back to Europe where they came from in 1911-1913!!! -- If the U.S. Congress does Not listen to WE-the-Peole then WE know that they are Traitors,- and working under-the-table for the Globalist BANKster THUGS!!!

Posted by: jward52 | September 2, 2010 1:15 PM | Report abuse

More finger pointing from Bernanke?

Trillions of dollars of equity lost, millions of jobs lost, millions of homes lost, trillions added to the debt. Trillions given away to criminal bankers. ZERO investigations, ZERO prosecutions, ZERO responsibility. Thats the FED!
Bernanke hired a former Enron lobbyist to grease the wheels in Congress so that Americans can continue to be screwed by an unbeholden, unaccountable, unelected central bank
www.auditthefed.com

Posted by: Hank reardon | September 2, 2010 1:19 PM | Report abuse

This pathetic mea culpa does nothing -- the middle class is still being destroyed and he knew that would happen, that the bank bailout would only benefit the criminal bankers.

Obama's biggest campaign contributors got their money, that's all that matters. So, in reality, Bernanke succeeded perfectly.

Besides, has Bernanke *ever* been right???

Posted by: Anonymous | September 2, 2010 1:39 PM | Report abuse

U.S. regulators fell short before financial crisis
_____________
More reasons NOT to trust Government with their powers...it's long time to limit Government power and influence into our lives...

Posted by: WildBill1 | September 2, 2010 2:04 PM | Report abuse


Here is comes.
Name blame game is underway.
Now without actually saying Alan Greenspan and others the talk is third party and left for us to name them.

One can not imagine that such individuals have (had) been given the keys to the vault. They are not equipped and do not know but pretend to know it all. Case in point is Alan Greenspan.
Can you imagine he is now engaged in the speaking circuit going around talking about monetary policy and so on collecting $50k for each event?

Posted by: swavde | September 2, 2010 2:24 PM | Report abuse


I thought Conservatives did NOT like Regulations.


Why are you guys mad at Bernanke?


I mean come on, let's be realistic now.

Posted by: lcarter0311 | September 2, 2010 3:47 PM | Report abuse

The crisis was caused by high-pressure selling of borrowers on predatory mortgages that fed the Wall Street gambling casino and provided big bonuses. When states and localities tried to block the mortgage predation, the Federal regulators blocked them. After all, markets can do no wrong.

Hopefully, the new financial regulatory law will fix the worst of the problem, especially if borrowers can have Elizabeth Warren on their side making the lawyers who write the mortgage papers do it right.

Opponents claimed the new law will stifle financial innovation. Good!!! We don't need financial innovation focused on how to stick it to borrowers. Let's cut out financial innovation and get back to doing manufacturing innovation. That creates new or improved products and new jobs. We need to bring back our manufacturing base from offshore. Stop rewarding companies for sending away jobs. And put finance back in the role it had years ago.

Posted by: Anonymous | September 2, 2010 5:00 PM | Report abuse

And who were these "regulators" during the last four administrations?

Remember, Newter and his lynch mob did a number on Clinton's administration back in the 90s with his Contract On America before he was run out of office by his fellow GOPers for being corrupt. The GOPers have more or less been running things since 1981.

Funny thing about that. Who are the people ranting loudest that nothing works anymore? Teabaggers, who are the most radical of all the right-wing delusionals.

Posted by: Anonymous | September 2, 2010 8:19 PM | Report abuse

Regulators failed, General Council for the financial sector also failed.

Posted by: Anonymous | September 2, 2010 10:50 PM | Report abuse

Ryan, That is costly, yeah most of us can save huge on our car insurance by making few simple changes find how much you can save http://bit.ly/bUb5Ms

Posted by: aidenjose01 | September 3, 2010 2:37 AM | Report abuse

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