Bernanke: the stability essential for recovery
Thursday, Mar 05,2009, 5:41:38 PM Click:
Copyright 2009 Gannett Company, Inc.All Rights Reserved USA TODAY
4 March 2009 Wednesday FIRST EDITION
SECTION: MONEY; Pg 6A
LENGTH: 390 words
TITLE: Bernanke: the stability needed for recovery; Fed chief said additional aid is needed to AIG
Signature: Sue Kirchhoff
WASHINGTON - Federal Reserve Chairman Ben Bernanke warned Congress Tuesday that the economy could stagnate for years unless the financial system is stable, as lawmakers criticized the government's decision to provide insurance giant American International Group with another 30 billion dollars in aid.
Bernanke said the Fed and the Treasury had no choice but to provide capital to AIG and the problem banks deemed too big to not like the U.S. and global economies weaken. The government has provided trillions of dollars of funding since the credit crisis erupted in 2007. Bernanke said May be necessary.
"If there's one episode in the entire 18 months that has made me more angry, I can not think of a (greater) than AIG," Bernanke told the Senate Budget Committee. He said that the firm of insurance regulatory gaps exploited the operation of a hedge fund that is not marked as "irresponsible" and betting is taking huge losses that threaten others.
Treasury Secretary Timothy Geithner said at a hearing, the House that there was "no adult supervision" to AIG.
AIG said Monday the loss of a staggering $ 61.7 billion in the fourth quarter of 2008. The Treasury and the Fed is 30 billion dollars in aid. The funds, to help the company restructure, were at the top of nearly $ 150 billion in assistance earlier.
Bernanke said that without action, the country could face a prolonged episode of economic stagnation. " At one point, he said bluntly that without a stable financial system, "we have no hope of getting the economy to a normal state."
The legislators warned the Fed not to underestimate the depth of frustration about the bailout. Senator Ron Wyden, D-Ore., Said the central bank needed to disclose the names and addresses of banks Fed loans.
admin
"The American people are in the dark on this issue," said Wyden.
Others may fear the proposal for regulation of banks should be closed. "The audience was almost," said Senator Lindsey Graham, RS.C.
Bernanke said that government is trying to gain direct business and consumers. The Fed and the Treasury launched a program Tuesday to $ 200 billion to stimulate $ 1 billion in education loans and auto loans, credit cards and other consumer products. The first loans will be released March 25. Bernanke said that the program will cover commercial real estate, which is facing a "crisis."
LOAD-DATE: 4 March 2009
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc.. All rights reserved
Terms and Conditions Privacy Policy
4 March 2009 Wednesday FIRST EDITION
SECTION: MONEY; Pg 6A
LENGTH: 390 words
TITLE: Bernanke: the stability needed for recovery; Fed chief said additional aid is needed to AIG
Signature: Sue Kirchhoff
WASHINGTON - Federal Reserve Chairman Ben Bernanke warned Congress Tuesday that the economy could stagnate for years unless the financial system is stable, as lawmakers criticized the government's decision to provide insurance giant American International Group with another 30 billion dollars in aid.
Bernanke said the Fed and the Treasury had no choice but to provide capital to AIG and the problem banks deemed too big to not like the U.S. and global economies weaken. The government has provided trillions of dollars of funding since the credit crisis erupted in 2007. Bernanke said May be necessary.
"If there's one episode in the entire 18 months that has made me more angry, I can not think of a (greater) than AIG," Bernanke told the Senate Budget Committee. He said that the firm of insurance regulatory gaps exploited the operation of a hedge fund that is not marked as "irresponsible" and betting is taking huge losses that threaten others.
Treasury Secretary Timothy Geithner said at a hearing, the House that there was "no adult supervision" to AIG.
AIG said Monday the loss of a staggering $ 61.7 billion in the fourth quarter of 2008. The Treasury and the Fed is 30 billion dollars in aid. The funds, to help the company restructure, were at the top of nearly $ 150 billion in assistance earlier.
Bernanke said that without action, the country could face a prolonged episode of economic stagnation. " At one point, he said bluntly that without a stable financial system, "we have no hope of getting the economy to a normal state."
The legislators warned the Fed not to underestimate the depth of frustration about the bailout. Senator Ron Wyden, D-Ore., Said the central bank needed to disclose the names and addresses of banks Fed loans.
admin
"The American people are in the dark on this issue," said Wyden.
Others may fear the proposal for regulation of banks should be closed. "The audience was almost," said Senator Lindsey Graham, RS.C.
Bernanke said that government is trying to gain direct business and consumers. The Fed and the Treasury launched a program Tuesday to $ 200 billion to stimulate $ 1 billion in education loans and auto loans, credit cards and other consumer products. The first loans will be released March 25. Bernanke said that the program will cover commercial real estate, which is facing a "crisis."
LOAD-DATE: 4 March 2009
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc.. All rights reserved
Terms and Conditions Privacy Policy
You may also be interested in:
Featured
What workers can do before Cuts Are Made
Copyright 2009 Gannett Company, Inc.All Rights Reserved USA TODAY April 7, 2009
Southern Bank, Springfield, Missouri, Assumes All of
Great Southern Bank, Springfield, Missouri, Assumes All of the Deposits of
Avalon Healthcare signs agreement with Manatee
TAMPA, Florida - (BUSINESS WIRE) - Avalon Healthcare, Florida, the state
AIG Posts First Profit Since 2007
American International Group, Inc. (AIG) reported its first quarterly profit
Court OKs Florida's decision on State Farm rates
TALLAHASSEE, Fla._An appeals court has backed a decision by state regulators
United States and the lives Industry''s Market Cap
Copyright: h Best Company, Inc. Source: BestWire Wordcount: 737 Credit related
Latin America, North America and the Caribbean -
Copyright: M2 COMMUNICATIONS LTD Source: M2 Presswire Wordcount: Dublin -
MOST POPULAR
- Most Read
- Most Discussed
- Most Emailed
- Class-action Suit Filed Against Nationwide Insurance
- Fiesta Insurance Plans 18 New Stores after Sales Growth
- Hartford Lawsuit Accuses Arch of Poaching Employees, Business
- Couple Charged With $38 Million Workers' Compensation Insura
- Florida Regulators Cite Liberty National Life Insurance In B
- BestWeek: Combined Ratio for P/C Writers Tips 100 Mark in Fi
- Allstate Asks N.J. for 15.4% Average Auto Rate Increase
- ‘Cash for Clunkers’ Requires Year of Continuous Auto Insurance Coverage on Trade-In
- Towers Perrin, Watson Wyatt Merger Could Shake Up Employee Benefits Industry
- Judge Upholds $13.1 Million Verdict in Lincoln Annuity Patent Case
-
Other lawmakers possible successors for Eliot Shapleigh's state Senate seat -
Geithner seeks new powers over financial corporations -
Obama: the wrath of AIG is not the administrative policy -
Full-Year 2008 Results Show P / C Industry Well Capitalized -
AIG Chief of Staff Get Death Threats Amid Anger Bonus -
Launch of new joint venture company: Hardy Arig Insurance Management (W.L.L) -
Update: Hartford to Return Nearly $50 Million to Florida Businesses -
Lack of available financing frustrates sector's efforts at economic growth
Discuss this news
Click Here to see all comments