Congress to Grill Bernanke on Bear Stearns

Collapse would have spread throughout economy, they argue

(NEWSER) - Bear Stearns was just hours from collapse, and letting it go down would have been disastrous, executives and regulators argued on Capital Hill today while defending the controversial bailout, the New York Times reports. Without the takeover, “we would all be facing a far more dire set of challenges,” said JPMorgan CEO James Dimon, citing the possibility of a mass run on other investment banks. More»

Weak credit and labor markets mean recovery will be slow: Fed chair

(NEWSER) - Ben Bernanke painted a stark picture of the economy today, warning that "formidable headwinds" are working against the incipient recovery. Despite an unexpectedly positive jobs report, the pace of expansion is likely to remain "moderate," the Fed chair said. “Despite the general improvement in financial conditions, credit remains tight for many borrowers,” and the job market “remains weak,” Bernanke said in a speech to the Economic Club of Washington. More»

Fed chief warns global imbalances could trigger new meltdown

(NEWSER) - The world economy is headed back down the drain if Asians don't start spending more and Americans don't start saving more, Ben Bernanke said at a conference yesterday. The Fed chief warned that unequal trade patterns were partly to blame for the financial crisis and that they are re-emerging as Asia leads the global recovery, reports the Los Angeles Times. More»

(NEWSER) - Fed chief Ben Bernanke fielded questions from the public in an unprecedented town hall meeting last night, the Kansas City star reports. Sounding every bit like a candidate running for office, Bernanke defended his moves during the recession and financial crisis, saying he had learned from his predecessors' mistakes in the 1930s. "I was not going to be the Federal Reserve chairman who presided over the second Great Depression," Bernanke told the audience. More»

Fed expected to step up purchase of mortgage securities

(NEWSER) - The Federal Reserve is expected to step up its buying of mortgage securities after policymakers meet today and tomorrow, Bloomberg reports. The outlook for the economy and job market has gotten bleaker since the Federal Open Market Committee last met 6 weeks ago and analysts believe Ben Bernanke is likely to announce more aggressive action to tackle deflation and boost the Fed's balance sheet. More»