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Bernanke defends Fed response to financial crisis
Bernanke defended the central bank's actions to support insurance giant American International Group and help with the sale of investment bank Bear Stearns, during a speech to a New York conference examining the crisis.
While there were risks associated with that support, Bernanke said that the billions of dollars in loans the Fed provided were backed by adequate collateral and taxpayers did not lose money. And he noted that the Fed and other U.S. regulators are better positioned to deal with a crisis because Congress passed an overhaul of financial regulations in 2010.
Was the collateral adequate?
Was the collateral bad loans?
If the collateral was so good, why couldn't the banks carry it as "mark to market?"
Who owns those bad loans now? Hint, you!
Who buys those loans when China doesn't?