TV News LIES

Wednesday, Feb 10th

Last update05:20:13 AM GMT

You are here News Economy Fed missed warning signs in 2007 as crisis gained steam

Fed missed warning signs in 2007 as crisis gained steam

E-mail Print PDF

Fed missed warning signsTop policymakers at the Federal Reserve felt for most of 2007 that problems in housing and banking were isolated and unlikely to tear down the U.S. economy as they ultimately did.

Even as crisis signals started flashing red with the freezing of credit markets during the summer, Fed officials believed the troubles would be moderate and short-lived, according to transcripts of the 2007 meetings released on Friday after the customary five-year lag.

U.S. Treasury Secretary Timothy Geithner, then president of the New York Federal Reserve Bank, said during an emergency telephone call on August 10 of that year that most of Wall Street was still doing fine.

"We have no indication that the major, more diversified institutions are facing any funding pressure," Geithner said according to the transcripts, which total 1,370 pages. "In fact, some of them report what we classically see in a context like this, which is that money is flowing to them."

Similarly, Fed Chairman Ben Bernanke underestimated the risks of a looming financial blow-up.

More...



"I do not expect insolvency or near insolvency among major financial institutions," he said in December 2007.


Most Recent Related Stories...


The World’s Favorite New Tax Haven Is the United States

US tax haven Last September, at a law firm overlooking San Francisco Bay, Andrew Penney, a managing director at...

Tax-dodging by superrich driving global inequality, Oxfam says

Oxfam: Super Rich tax dodging cauing global inequalityTax dodging by the super-rich is one of the main drivers of global income inequality and...

SHELL: We'll cut 10,000 jobs

Shell to cut ten thousand jobsShell will cut 10,000 jobs in its merger with BG Group, and sell $30 billion (£21...

Obama unveils wage insurance plan to spur job seekers

Obama insurance planU.S. President on Saturday laid out a plan to help support the income of workers who...
 
America's # 1 Enemy
Tee Shirt
& Help Support TvNewsLIES.org!
TVNL Tee Shirt
 
TVNL TOTE BAG
Conserve our Planet
& Help Support TvNewsLIES.org!
 
Get your 9/11 & Media
Deception Dollars
& Help Support TvNewsLIES.org!
 
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!