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."

Full story

soundoff (102 Responses)
  1. Susan

    The bailout will not solve our economic problems. Spending more on bailouts will just make the problem worse. The government should stop playing God and let the economy reach equilibrium using supply and demand.

    We really do need to rethink what it means to be 'successful'. It doesn't always mean this year's profits are 10% greater than last year's profits.

    January 13, 2009 01:24 pm at 1:24 pm |
  2. Anonymous

    not to be a back seat driver with handing out bailouts but at what point should we begin to worry about this little economic term called moral hazard. yeah, you know the term that was preached to us all in econ. 101.

    January 13, 2009 01:26 pm at 1:26 pm |
  3. THE OLD TIMER

    give me 2 million and then I won,t care who gets what.

    January 13, 2009 01:26 pm at 1:26 pm |
  4. ashlee

    This guy has got to be kidding!

    He can't account for the money he already gave away.

    Heck with the banks, give it to the taxpayers, WE will stimulate the

    economy!

    January 13, 2009 01:27 pm at 1:27 pm |
  5. WELCOME TO THE OBAMA SHOW!!!!!!!!!!!!

    CAN YOU SAY DEPRESSION!!!!!!!!!!!

    THE AMOUNT OF MONEY TO SAVE THIS COUNTRY WOULD BE IN THE MULTI-TRILLIONS BASED ON THE POPULATION!!!!!!!!

    UNLESS THIS COUNTRY IS READY TO SPEND THAT KIND OF MONEY IT REALLY DOESN'T MATTER!!!!!!!!!!

    January 13, 2009 01:28 pm at 1:28 pm |
  6. S Callahan

    No, no, no !

    The banks should have NEVER been bailed out to begin with.....you are just trying to prevent in inevitable....let the beast fail and the ones who stand will go forward......

    January 13, 2009 01:28 pm at 1:28 pm |
  7. DaveG

    And why wouldnt we give them (the banks) more money? They did so well with the first $350 Billion. Are there any smaller banks left for them to buy up with taxpayer money?

    January 13, 2009 01:30 pm at 1:30 pm |
  8. Franky

    I don't know but for some reason, I feel like I'm smarter than this guy ...anybody with me?? No? Yes? Just saying...

    Let me give you some advice. Next time, when you do something that you don't even know what you did, my next best solution is to make sure money is put where it can thrive our system not jetlag it for a couple months. Money creates opportunity, alright Ben?? It creates business, understand Ben?? More lending to Banks?? First of all, giving more money to a bank is like feeding a fat kid more food when he doesn't need it...hey, and I love food, LOL!!

    If there is somebody who needs that money is California. That state may need it more to revive itself than to stand up. And you know it sucks when you have to re-evaluate everything.

    You know, for starters Ben, maybe, just maybe, small business may need it. Just to give you an example Ben...

    January 13, 2009 01:32 pm at 1:32 pm |
  9. Neiki

    I say, "Don't give the banks another penny! After all they can't even account for the nearly 4 billion they've already spent. Tax payers still can't get a loan, or a reduction on their mortgage payments/interest. Businesses still are closing left & right because they can't get loans to make payroll or invest in their own product or manufacturing. Give the money directly to the tax payer so he/she can pay their mortgage arrears to save their home. Give the money directly to the businesses so they can pay their employees, invest in their product. Then employees can buy, pay more taxes & the economic wheel continues to turn. Everyone is successful. Imagine that!!!!!" ACCOUNTABILITY!!!

    January 13, 2009 01:33 pm at 1:33 pm |
  10. Oh My!!!!

    Where is Paulson ???

    January 13, 2009 01:37 pm at 1:37 pm |
  11. Snake eyes

    I DONT THINK SO.

    January 13, 2009 01:39 pm at 1:39 pm |
  12. believe

    everyone needs a bailout.

    January 13, 2009 01:39 pm at 1:39 pm |
  13. Jo Aelfwine

    Why more bank bailouts? It's just another form of trickle-down economics and it still hasn't done anything to help the economy. Why not divide the rest of the money and give equal amounts to every tax-paying citizen and let us save ourselves from the economic failures foisted on us by the banks and Wall Street. Why not let US decide which businesses should be bailed out? Don't they trust us? Or are they just worried that we won't re-invest in their golden parachutes?

    January 13, 2009 01:44 pm at 1:44 pm |
  14. John in Ohio

    Bail out the people who need help so they don't lose their homes, before bailing out the monolothic corporate behemoths.

    January 13, 2009 01:44 pm at 1:44 pm |
  15. FreeNLovIt

    Throw the banks outside in the cold. The government should just take over and lend people money. It's the government's money anyway that the banks are lending to the consumers.

    January 13, 2009 01:44 pm at 1:44 pm |
  16. cat

    Please don't give that man another penny to bail out the global financial system. I hope congress will be smart and realize that bail out is going towards the rich who have invested heavily and are losing their shirts. Hey we the little people have been losing our shirts for years now and no one is bailing us out. (Pull yourselves up by your boot strings) Welcome to our world.

    January 13, 2009 01:50 pm at 1:50 pm |
  17. Ron Ft. Myers

    Bernanke needs to go! While he's leaving ,he can take Barney "Rubble" Frank with him. If these clowns are watching over the disbursement of the bailout funds, we really are in deep trouble.

    January 13, 2009 01:50 pm at 1:50 pm |
  18. frodo

    Well, sure, you all did such a good job of vaporizing $350B, we should give you more. And our inept congress was so stoooopid as to not put any oversight in place about how it was to be spent.

    The Democrats and Republicans have consistently shown their ineptitude at anything related to the economy. The Bush-Obama-McCain Bailout (BOMB) was the worst thing for the economy. It took our tax money and gave it to the same people who messed up and then had no accountability. Now Obama wants MORE?

    This is ridiculous. Stop wasting our tax money!!!

    January 13, 2009 01:51 pm at 1:51 pm |
  19. Meh

    No way. NO. Enough! We don't even know what they did with the LAST money we gave them! Now he wants to give them more?

    January 13, 2009 01:53 pm at 1:53 pm |
  20. Ken

    Let them fail. No more bank bailouts. Bernanke is in the business of protecting the people that created this mess in the first place. It is outragious that these businesses top people continue to get their undeserved high pay and rewards. Where is the OVERSIGHT. NO WHERE !!! The Congress allowed this to happen. It is time to end the uncontrolled greed. It is time to let all these businesses fail. It is called Karma, cause and effect. Amen.

    January 13, 2009 01:57 pm at 1:57 pm |
  21. Gobama

    He's referring to Citi Group in a nutshell. That humpty dumpty has fallen and no amount money can save it.

    I SAY LET THE IVORY TOWERS FALL!!!!!!!!!!!!!!!!!!

    January 13, 2009 02:00 pm at 2:00 pm |
  22. Jackie in Dallas

    EXCUSE ME? You mean the megabanks who took the initial bailout money and used it to buy other banks and to give their officers raises? I think NOT!

    Give it to the homeowners faced with losing their homes to find a way to refinance their mortgages, or to get out of them gracefully, and you'll stimulate the economy a LOT more!

    January 13, 2009 02:02 pm at 2:02 pm |
  23. Adrian

    Crooks.

    I feel like I am having money stolen from me right beneath my eyes and I am not capable of doing a thing.

    I don't want to see another dollar

    January 13, 2009 02:04 pm at 2:04 pm |
  24. Allen

    Bailing out financial institutions is one thing, but handling the situation the way this administration has done is another.
    Promising one thing and doing another, keeping their actions secret, answering to no one, and manipulating the banking environment to the benefit of friends of Paulson was not the intent of the bail-out.

    January 13, 2009 02:07 pm at 2:07 pm |
  25. Dan

    One question.

    WHO IS PAYING FOR THIS?!?

    Some of these companies just got to go. They can't all be saved from their own greed and incompetence. Enough already. Let the chips fall where they may!

    January 13, 2009 02:09 pm at 2:09 pm |
1 2 3 4 5