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Lehman 7/10
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IN BEN BERNANKE’S BOOK, A CANDID LOOK AT LEHMAN BROTHERS’ COLLAPSE
Oct 6, 2015 | The Market Business
By Donald V. Morris
His opinion of Dick Fuld, the head of Lehman Bros., the investment bank whose collapse precipitated the crisis, is withering–though couched in judicious words. He implies that Fuld was obsessed about short sales of Lehman stock, taking every short transaction “like a personal affront.” -
Bernanke: More financial executives should have gone to jail
Oct 6, 2015 | Dispatch Times
...Former Fed Chairman Ben Bernanke told CNBC on Monday the worst moment of his eight-year tenure leading the central bank was the weekend before Lehman Brothers failed... -
BEN BERNANKE: NO HURRY TO HIKE
Oct 7, 2015 | Westchester Daily Telegraph
By Steve Richardson
...Looking back at the financial crisis, he told CNBC there was no way to save Lehman Brothers, despite best efforts to prevent the investment firm’s demise. He said the Lehman weekend and subsequent failure was the worst moment of his tenure as Fed chief....
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Ben Bernanke
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IN BEN BERNANKE’S BOOK, A CANDID LOOK AT LEHMAN BROTHERS’ COLLAPSE
Oct 6, 2015 | The Market Business
By Donald V. Morris
That’s one takeaway from Bernanke’s book. Among the others is his opinion that many of the executives he had to deal with were scoundrels or fools, and his feeling that austerity policies imposed by conservative governments have hampered the worldwide recovery. More on that in a moment.His opinion of Dick Fuld, the head of Lehman Bros., the investment bank whose collapse precipitated the crisis, is withering–though couched in judicious words. He implies that Fuld was obsessed about short sales of Lehman stock, taking every short transaction “like a personal affront.”
But he blames Lehman’s fall on Fuld’s aggressive expansion of the firm’s lending, which “had blown through the company’s established guidelines for controlling risk…. Fuld and his team seemed in denial about how badly their bets had gone wrong.”Eventually, the government officials trying to pressure Fuld into putting Lehman on the block concluded that Fuld “didn’t have a realistic view of what his firm was worth.” The implication is that Fuld’s blindness to reality prevented an orderly sale of Lehman, which might have averted the worst of the crisis.Mr. Bernanke has tried to make a similar argument in interviews before, but never so clearly or emphatically, nor has he acknowledged so directly that he and Mr. Paulson agreed on what to say publicly in the days after Lehman’s collapse.
For full Article: http://www.themarketbusiness.com/2015-10-06-in-ben-bernankes-book-a-candid-look-at-lehman-brothers-collapse
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Bernanke: More financial executives should have gone to jail
Oct 6, 2015 | Dispatch Times
Former Chairman of the Federal Reserve, current fellow at the Brookings Institute and hedge fund adviser Ben Bernanke noted in an interview that there would have been more criminal prosecutions in the aftermath of the 2008-2009 financial crisis if he had been in charge of the Department of Justice. In contrast, the output of the US economy is 8.9% above the earlier peak-an enormous difference in performance.
Europe’s inability to utilize money related and monetary strategy forcefully after the budgetary emergency is a major reason that eurozone yield is today around 0.8% underneath its precrisis top.
Former Fed Chairman Ben Bernanke told CNBC on Monday the worst moment of his eight-year tenure leading the central bank was the weekend before Lehman Brothers failed.
For Full Article: http://www.dispatchtimes.com/bernanke-more-financial-executives-should-have-gone-to-jail/118327/
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BEN BERNANKE: NO HURRY TO HIKE
Oct 7, 2015 | Westchester Daily Telegraph
By Steve Richardson
Bernanke, now a distinguished fellow at the Brookings Institution, left the Fed in January 2014 at the end of his second term, after serving eight years as chairman during the turbulent times before and after the 2008 financial crisis. He’s also a senior advisor to hedge fund Citadel and bond powerhouse Pimco.
He’s on a promotion tour for his new book, “The Courage to Act: A Memoir of a Crisis and Its Aftermath.”
Looking back at the financial crisis, he told CNBC there was no way to save Lehman Brothers, despite best efforts to prevent the investment firm’s demise. He said the Lehman weekend and subsequent failure was the worst moment of his tenure as Fed chief.
Read More Ben Bernanke: Here’s my worst moment as Fed chief
By contrast, he said, “It was a very difficult decision to intervene with AIG. We felt we had to, given Lehman had failed.”
For Full Article: http://www.westchestertelegraph.com/ben-bernanke-no-hurry-to-hike
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Ben Bernanke
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