Beverly Hills 1/5/2010 2:11:02 AM
News / Business

Bernanke Says Weak Regulation Caused the Economic Crisis

Finance World News Update by EQUITIES Magazine

In response to accusations the the Fed was to blame for the financial crisis, Ben Bernanke told the American Economic Association that "stronger regulation and supervision aimed at problems with underwriting practices and lenders' risk management would have been a more effective and surgical approach to constraining the housing bubble than a general increase in interest rates."

 

In other words, as he waits for confirmation of his second term as Fed chair, Bernanke is blaming the crisis on weak regulation. Bernanke also pointed out that the Fed’s “extraordinary efforts to stem the crisis” seem to have worked.

 

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