ben bernanke was president when the banks were bailed out.
who was president when the banks were bailed out?
ben bernanke
the market for cdos collapsed and investment banks were left with hundreds of billions of dollars in loans, cdos, and real estate they could not unload. the great recession began in november 2007, and in march 2008, bear stearns ran out of cash. in september, the federal government took over fannie mae and freddie mac, which had been on the brink of collapse. two days later, lehman brothers collapsed. these entities all had aa or aaa ratings within days of being bailed out. merrill lynch, on the edge of collapse, was acquired by bank of america. henry paulson and timothy geithner decided that lehman must go into bankruptcy, which resulted in a collapse of the commercial paper market. on september 17, the insolvent aig was taken over by the government. the next day, paulson and fed chairman ben bernanke asked congress for $700 billion to bail out the banks. the global financial system became paralyzed. on october 3, 2008, president george w. bush signed the troubled asset relief program, but global stock markets continued to fall. layoffs and foreclosures continued with unemployment rising to 10% in the u.s.a. and the european union. by december 2008, gm and chrysler also faced bankruptcy. foreclosures in the u.s. reached unprecedented levels.
inside job (2010 film)
however, the bail-out of banca delle marche, carichieti, cariferrara and banca etruria by the government (though utilized the mandatory contribution of all italian banks), also bail-in of shareholders and subordinated bond holders, had caused public controversy that many bond holders were actually retail investors, making the bank recovery and resolution directive unpopular as a tool to bail out the bank. a private bail-out fund must be created to solve the problem of the banking system. in early 2016, fitd added a voluntary scheme in its article of associations, which bail out banca tercas by voluntary contribution of the member banks of fitd. (it was followed by cassa di risparmio di cesena, a small bank in mid 2016) even before the introduction of the voluntary scheme, fitd officials had also declared that the fund could not bail out the aforementioned four banks entirely, due to the fund's small size. the resolution fund bailed out the banks by €3.7 billion only were in fact aided by bail-in. a large private equity fund was demanded if large to medium-sized banks of italy were required to be bailed out. atlante was aimed at a size of €4-6 billion with a promise that the investment was profitable in order to attract investors in market condition.
atlante (private equity fund)