January 13th, 2009
12:45 PM ET
11 years ago

Bernanke: More bank bailouts needed

Bernanke says more bailouts are needed.

Bernanke says more bailouts are needed.

NEW YORK (CNNMoney.com) - Federal Reserve Chairman Ben Bernanke said Tuesday that President-elect Barack Obama's proposed fiscal stimulus package could help the economy, but he added that additional bailouts of financial institutions may also be needed to bring about a sustained economic recovery.

Bernanke, speaking in London, said in his prepared remarks that the nearly $800 billion plan being discussed by the incoming Obama administration and the newly elected Congress "could provide a significant boost to economic activity." He did not comment on or endorse any specifics of the nearly $800 billion.

But Bernanke cautioned that the plan is "unlikely to promote a lasting recovery unless they are accompanied by strong measures to further stabilize and strengthen the financial system."

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soundoff (102 Responses)
  1. HSNP


    January 13, 2009 12:54 pm at 12:54 pm |
  2. Baze

    bail out!

    January 13, 2009 12:55 pm at 12:55 pm |
  3. Shawn - Ga

    I am sorry, but no. We need to let the market correct itself. Throwing bad money at good will only make things worse.

    January 13, 2009 12:57 pm at 12:57 pm |
  4. Shawn - Ga

    er, reverse that.... either way bad idea.

    January 13, 2009 12:58 pm at 12:58 pm |
  5. Matt

    Someone slap this man. Please.

    January 13, 2009 01:00 pm at 1:00 pm |
  6. Sherrol in Canada

    Tell the American people what happened to the $350b of the TARP and then maybe they'll believe you when you open your mouth.

    This guy is unbelievable!!!

    January 13, 2009 01:02 pm at 1:02 pm |
  7. Betsy

    Why don't they create a program that will allow the individual homeowner to prove the financial hard ship and apply for the funds to pay for the home, then pay the US government back with a very low interest loan. This would get the money to the financial institutions and help the honeowner.
    I'm struggling to keep my home and they have spent $350 billion to bail out AIG and all of these financial institutions, but I'm not seeing any benefit from my tax dollars. Why don't they help the little guy help themselves, then that would help the big guy as well.

    January 13, 2009 01:07 pm at 1:07 pm |
  8. Bushwhacked in Eugene, OR

    More bailouts while they waste what they've already received? Not on my tax dollar, thank you.

    January 13, 2009 01:08 pm at 1:08 pm |
  9. Fed Up


    People need to go to jail over this.

    January 13, 2009 01:10 pm at 1:10 pm |
  10. Sick Of These People

    Put this man in jail and shut him up. If the banks want more money, send them to China. Let them work for it.

    January 13, 2009 01:12 pm at 1:12 pm |
  11. Bored, anonymous, and pathetic

    What's the difference between "Bored, anonymous, pathetic bloggers" and Ann Coulter and Michelle Malkin? Anonymity is all.

    January 13, 2009 01:14 pm at 1:14 pm |
  12. pat C.

    this is a disgrace and the american people should not stand for it. obama can not let this happen. the banks have stolen the first billions in my opinion to help themdelves with bonus and high salaries to the very ones that destroyed the company. i say NO MORE EVER!!

    January 13, 2009 01:15 pm at 1:15 pm |
  13. DOC

    How about we first find out what happened to the money given to the banks in the last bailout before we go throwing more money at this problem? What's the point if there is no accountability?

    Debt truly has replaced the ball and chain...

    January 13, 2009 01:15 pm at 1:15 pm |
  14. sick n tired

    Yeah! Thats right I need more money for all my wealthy friends on Wall Street before Bush is gone! Because on Jan 20th the money train will be promptly leaving the station and basically all bets are off as far as you're free ride on the taxpayers dime goes! So get it while you can boys! The party is almost over!

    January 13, 2009 01:16 pm at 1:16 pm |
  15. MikeH

    Yeah Bennie-boy, give more money to banking executives to boost their personal bonuses, more to board of directors so they can vote themselves increases of their salaries.

    This country's been looted by Ben's friends. What Benny-boy says now is self-serving garbage.

    Where was Ben when the sub-prime mortgage fraud was in progress? Many economists pointed out in 2006 and 2007 that this crash would happen, but Ben said everything was fine.

    Ben is a Bush suck-up.

    January 13, 2009 01:16 pm at 1:16 pm |
  16. Creative Woody

    More bailouts please! Some CEOs of failed banks didn't get their millions from the taxpayers yet!

    January 13, 2009 01:18 pm at 1:18 pm |
  17. dennis

    No..............not another dime to banks. Financial system, Ben???
    The American People are the "financial system" – not the scum bankers who won't account for the FIRST 350 billion !

    Let the weak institutions go under and the stronger banks take their spot.

    Ah......what the heck.....Barney Frank will give them whatever they want – same as the first time. Yea Barn.........sure.....Bush messed it up – not you....

    January 13, 2009 01:19 pm at 1:19 pm |
  18. bsmith171

    resign immediately – go on drooling tour with andrea mitchell's husband.

    January 13, 2009 01:20 pm at 1:20 pm |
  19. Susan

    I watched part of the IOUSA show Sunday night and one of the commentators made a comment that made perfect sense. You can't call it a tax cut if it causes the national deficit to go up and defers the tax burden to future generations.

    As individuals and as a Nation, we need to bite the bullet now and get our spending under control. We need a more balanced budget and we can't lay most of the burden for paying for things on the 5% of the households who make more than $200,000 per year.

    We need to rethink the definition of what it means to be successful.

    January 13, 2009 01:20 pm at 1:20 pm |
  20. disgusted

    Let them go, or save themselves.

    They refuse to extend credit to businesses who have to then let go of employees or shut down. Those banks that have credit cards are raising fees and lowering credit lines on people who have paid these cards on time for years adversely affecting their credit for no reason. The taxpayers bail them out, and they continue to squeeze us for more money while refusing to tell us what happened to the money they already received.

    I am sick of being beat about the head and face by those that have while being told that it is my fault I may lose everything I have worked for the last 35 years because I am stupid and lazy. Surely I am not the only one who feels this way.

    January 13, 2009 01:21 pm at 1:21 pm |
  21. Virginia

    Uh, I don't think so Ben!

    January 13, 2009 01:21 pm at 1:21 pm |
  22. Lala-Waxhaw NC

    Are you for real ? Iam a small business in small town in NC and can't get a single loan to keep the business afloat.. more bailouts...no more for the bank until they guantee that they will lend to the small people like us.. youhave got to be kidding me !!!!!

    January 13, 2009 01:21 pm at 1:21 pm |
  23. Heres the Bagman?

    This guy is the biggest crook on Earth.He and Paulson have already stolen at least 2 trillion dollars from the American people so they can feed their pet tapeworm.

    January 13, 2009 01:21 pm at 1:21 pm |
  24. Heres the Bagman

    Heres the biggest crook around,along with his pal Paulson.

    January 13, 2009 01:23 pm at 1:23 pm |
  25. montag

    Absolutely no more bailouts! What did they do with the $300 billion they already stole? No more looting of the Treasury! These people all belong behind bars.

    January 13, 2009 01:24 pm at 1:24 pm |
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