Bernanke: All But One Major Firm Was At Risk In 2008

WASHINGTON (By Dave Clarke and Kevin Drawbaugh) – Twelve of the 13 most important U.S. financial firms were at the brink of failure at the height of the credit crisis in 2008, according to previously undisclosed remarks made by Federal Rese…

WASHINGTON (By Dave Clarke and Kevin Drawbaugh) – Twelve of the 13 most important U.S. financial firms were at the brink of failure at the height of the credit crisis in 2008, according to previously undisclosed remarks made by Federal Reserve Chairman Ben Bernanke in November 2009 to an investigative panel.

The deeply divided Financial Crisis Inquiry Commission released the notes from its private interview with Bernanke and others on Thursday as part of a final report on the origins of the 2007-2009 crisis.

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.

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