Ben Bernanke

  • 1996-2002 - Princeton - Professor / Chair 
  • 2002-2005 - Member - Board of Governors of the Federal Reserve System 
  • 2006-2014 - Chair - Federal Reserve (14th) 
  • (p19) - Ben BERNANKE. I think if there is a single episode in this entire 18 months that has made me more angry, I cannot think of one than AIG.   AIG exploited a huge gap in the regulatory system.
    • There was no oversight of the Financial Products Division.
    • This was a hedge fund, basically, that was attached a large and stable insurance company, made huge numbers of irresponsible debts, took huge losses.

2009 0303 - GOV (Senate) - Economic and Budget Challenges for the Short and Long Term, Ron Wyden (D-OR) - [PDF-54p, VIDEO-Senate Page]

  • (p13) - Ben Bernanke: Conceivably, its failure could have resulted in a 1930’s-style global financial and economic meltdown, with catastrophic implications for production, income, and jobs.

2009 0324 - GOV (House-CFS) - Oversight of the Federal Government's Intervention at American International Group - [PDF-91p,  VIDEO-CSPAN]

  • Chairman Bernanke on Financial Regulatory Overhaul - [VIDEO-CSPAN]
    • The recent financial crisis clearly demonstrated that risks to the financial system can arise not only from banks, but also from other financial firms -- such as investment banks or insurance companies -- that traditionally have not been subject to the type of regulation and consolidated supervision applied to bank holding companies.
  • “A.I.G. exploited a huge gap in the regulatory system,” Mr. Bernanke said.
    • “There was no oversight of the financial products division.
    • This was a hedge fund, basically, that was attached to a large and stable insurance company.”
  • And this quasi-hedge fund, Mr. Bernanke went on, to nobody’s surprise, made irresponsible bets and took huge losses.

2009 0303 - NYT - Fed Chief Says Insurance Giant Acted Irresponsibly - [link]

2009 0303 - GOV (Senate) - Economic and Budget Challenges for the Short and Long Term, Ron Wyden (D-OR) - [PDF-54p, VIDEO-Senate Page]

  • (p4-5) - 1Regulatory Restructuring: Hearing Before the H. Comm. on Financial Services, 111th Cong. (2009) (statement of Ben Bernanke, Chairman, Board of Governors, Federal Reserve)
    • (“The current financial crisis has clearly demonstrated that risks to the financial system can arise not only in the banking sector, but also from the activities of other financial firms—such as investment banks or insurance organizations—that traditionally have not been subject, either by law or in practice, to the type of regulation and consolidated supervision applicable to bank holding companies. While effective consolidated supervision of potentially systemic firms is not, by itself, sufficient to foster financial stability, it certainly is a necessary condition.”), 

MetLife v. FSOC – Document 22 – Notice of Filing – 15-cv-45 – Filed 05/11/15 – 75p

  • 2015 - Book - The Courage to Act: A Memoir of a Crisis and Its Aftermath, by Ben S. Bernanke
    • — Recounting the frenzied deliberations as the Fed grappled with the collapse of giant insurer American International Group, Bernanke says, "I kept my emotions in check and tried to view the situation analytically, as a problem to be solved.
      • But once I fully understood how irresponsible (or clueless) AIG's executives had been, I seethed."
      • AIG eventually received nearly $185 billion in federal aid.

cbsnews.com/texas/news/bernanke-recalls-lehmans-surreal-failure/

  • 1991 - AP - The Gold Standard, Deflation, and Financial Crisis in the Great Depression, by Ben Bemanke - 37p
  • 1995 - AP - Inside the Black Box: The Credit Channel of Monetary Policy Transmission, by Ben Bemanke - 102p
  • 2015 - Book - The Courage to Act: A Memoir of a Crisis and Its Aftermath, by Ben S. Bernanke
    • Brookings - frequently used sources for The Courage to Act, with links; see also A Note on Sources and Selected Bibliography in the printed book - 56p
  • Chairman Bernanke's College Lecture Series: The Federal Reserve and the Financial Crisis
  • 2008 0227 - GOV (House) - Monetary Policy and the State of the Economy, Part II,  (CSPAN) US Economic Outlook
  • 2008 0402 - GOV (JEC) - U.S. Economic Outlook
    • Ben Bernanke
    • 1:44:00 - Kennedy - Toys and Drugs, Financial Product Regulation
    • [PDF-69p, VIDEO-CSPAN] - <mp3, mp4>
    • JEC - Joint Economic Committee
  • 2008 0710 - GOV (House) - Systemic Risk and the Financial Markets, CSPAN - Transformation of Financial Markets
    • [PDF-86p, VIDEO-CSPAN] - <mp3, mp4>
    • Paulson, Bernanke
    • 1:17:30 - Paulson - need resolutions authority like FDIC
  • 2009 0224 - GOV (Senate) - Federal Reserve's First Monetary Policy Report for 2009
    • Senate - Banking, Housing, and Urban Affairs: Oversight on the Monetary Policy Report to Congress Pursuant to the Full Employment and Balanced Growth Act of 1978
    • (p78) - Q.4. In a statement Monday, AIG said it is continuing to work with the government to evaluate potential new alternatives for addressing AIG's financial challenges. AIG's rescue package has already been increased twice since September, from $85 billion to nearly $123 billion in October and then to $150 billion in November. According to today's WSJ, AIG is seeking an overhaul of its $150 billion government bailout package that would substantially reduce the insurer's financial burden, while further exposing U.S. taxpayers to its fortunes. Are you and Treasury considering changing our approach to AIG from that of a creditor to one of a potential owner?
    • (p78) - Response to Written Questions of Senator Bennett from Ben S. Bernanke
      • (p85) - A.4. As explained in the reports submitted to Congress under section 129 of the Emergency Economic Stabilization Act of 2008, the Federal Reserve, in conjunction with the Treasury Department, has taken a series of steps since September 2008, to address the liquidity and capital needs of the American International Group, Inc. (AIG) and thereby to help stabilize the company, prevent a disorderly failure, and protect financial stability, which is a prerequisite to resumption of economic activity. In particular, in September and November 2008, the Federal Reserve established several credit facilities, including a Revolving Credit Facility, to further these objectives. As part of the November restructuring, the Treasury purchased $40 billion in AIG preferred stock. In light of the significant challenges faced by AIG in the last months of 2008 and the continued risk it poses to the financial system, on March 2, 2009, the Federal Reserve and the Treasury announced a restructuring of the government's assistance to the company. The March actions announced by the Federal Reserve include partial repayment of the Revolving Credit Facility with preferred stock interests in two of AIG's life insurance subsidiaries and with the proceeds of new loans that would be secured by net cash flows from designated blocks of existing life insurance policies held by other life insurance subsidiaries of AIG. These actions were undertaken in the context of the Federal Reserve's role as a creditor of AIG. As part of the March restructuring, the Treasury established a capital facility that allows AIG to draw down up to approximately $30 billion as needed over time in exchange for additional preferred stock. For more detail, please see Federal Reserve System Monthly Report on Credit and Liquidity Programs and The Balance Sheet (June 2009) at 13-16, http://www.federalreserve.gov/monetarypolicy/files I monthlyclbsreport200906.pdf
  • 2009 0303 - GOV (Senate) - Economic and Budget Challenges for the Short and Long Term, Ron Wyden (D-OR) - [PDF-54p, VIDEO-Senate Page]
  • 2009 0324 - GOV (House) - Oversight of the Federal Government's Intervention at American International Group
    • [PDF-91p,  VIDEO-CSPAN] - <mp3, mp4>
    • Geithner (DOTT), Bernanke (FRB), William Dudley (FRB-NY) 
    • (p13) - Bernanke - Conceivably, its failure could have resulted in a 1930’s-style global financial and economic meltdown, with catastrophic implications for production, income, and jobs.
    • House - Committee on Financial Services