Fed Bailout of Bear Stearns First of its Kind Since Great Depression
Fed Bailout of Bear Stearns First of its Kind Since Great Depression
(English,
16 minutes,
created 290 days ago by
kuros,
broadcast date:2008-03-20)
The nation’s fifth largest investment bank Bear Stearns nearly collapsed last week. It was saved only after the Federal Reserve took extraordinary measures to help JPMorgan purchase the eighty-five-year-old firm. The Fed has become the lender of last resort for other investment banks in a move that marks one of the broadest expansions of the Fed’s lending authority since the 1930s. DemocracyNow! speaks with Nomi Prins, an author and former investment banker at Bear Stearns, and Max Fraad Wolff, an economist and writer.