Bernanke: 12 of 13 largest US banks could have failed in 2008

Bernanke wasn’t very successful with seeing the crisis or understanding the crisis so even claiming one out of thirteen banks sounds generous. There was widespread panic and logic was removed from the market.

The 10-member panel’s final report was endorsed only by its six Democratic members. It criticized the culture of deregulation championed by former Federal Reserve Chairman Alan Greenspan and said the government had ample power to avert the crisis but chose not to use it.

The report did not identify which of the 13 firms was not considered by Bernanke to be in danger of failure, but it did say that Goldman Sachs was among those Bernanke feared could be taken down amid a huge funding crisis in late 2008.

“If you look at the firms that came under pressure in that period … only one … was not at serious risk of failure,” Bernanke told the commission. “Even Goldman Sachs, we thought there was a real chance that they would go under.”

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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