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. Nick

    We are headed for a full time DEPRESSION america...get ready. All this nonsence bailout won't work.

    January 13, 2009 02:13 pm at 2:13 pm |
  2. Sharon from Dumfries Virginia

    Please no more bank bailouts. They are killing the American people.

    January 13, 2009 02:13 pm at 2:13 pm |
  3. Jen

    Yeah I bet he wants more bank bailouts... where did he put the other $350Billion?? What did he get out of that??

    I hope they put so many restrictions on these companies!

    January 13, 2009 02:14 pm at 2:14 pm |
  4. Get over it

    STOP spending OUR money!!!!!!!!!!!!!!!!!!!!!!

    January 13, 2009 02:15 pm at 2:15 pm |
  5. Hate sells tickets

    Wow,the carpet bagger is back for more.I guess he figured he better come get this bag instead of sending poor old Henry over.

    January 13, 2009 02:18 pm at 2:18 pm |
  6. bill, alabama

    Bernanke makes Alan Greenspan look like a noble prize winning economist when neither of them know any more about handling money than the average "Joe on the street" does.

    At least, we "Joe's on the street" can balance our checkbooks and keep from deficit spending.

    These two people cannot find their way out of a paper bag.

    January 13, 2009 02:24 pm at 2:24 pm |
  7. Gary Chavis

    I can not beleive our government is giving the the banks another dime of our money. They spent the last $350 billion with out accounting for one red cent. I suspect it went to there saleries and Christmas bonuse's it sure wasn't given out in loans, to stimulate the economy. I know the politicans are owned by the lobbies like Christ Dodd. Thats why the banks get away with charging us 30% on credit cards.Do any of our elected officals paid by us the tax payer represent us the tax payers. Didn't they see the polls we were against the last TARP bail out, why don't they vote our opions and feeling on matters they claim to represent us. Tlks cheap, I guess we will have to keep voting them out until we get one's that represent the people of this country and not special interest. These Banks Bank rupted themselfs and this country with the crooked politicans are helping ruine my children and grand childrens futures. I fought in two wars but now realize who the real enemy is selling our country to the commenist is. Our politicans. These banks would not qualify for a loan why don't we treat them the same way there treat us. Let AIG and the banks reap what they sowed and and us not throw good money after bad they have provent the money managment skills. Some lower level solvent banks will buy them up. Let the free market takes it course. They ought to fire the top 25 % of there staff for a start. Bush, Chenney and Dodd and there bought off political croney's have ruined our country one I fought for and it may not ever recover. I know who the enemy is now. The Communist have won.

    January 13, 2009 02:24 pm at 2:24 pm |
  8. gina

    Are you kidding me? This is one of the biggest frauds ever pulled on this country.

    January 13, 2009 02:26 pm at 2:26 pm |
  9. Stephy

    Bernanke: More bank bailouts needed

    Let Bernanke bail them out on his own.
    The tax payers are sick and tired of this comedy. How about a bail out for them, you know, the average struggling Americans...?

    January 13, 2009 02:26 pm at 2:26 pm |
  10. Melissa

    The answer? No. Let them claim bankruptcy like everyone else.

    January 13, 2009 02:27 pm at 2:27 pm |
  11. 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 02:31 pm at 2:31 pm |
  12. vet

    Why are any of these guys still dealing with Federal dollars? They should be removed immediately.

    January 13, 2009 02:31 pm at 2:31 pm |
  13. Darko

    Amazing how they can keep saying that the banks need more money.

    1 – The can't say for sure where the firstt 350B went.
    2 – They say the plan is working without showing any meaningful proof
    3 – Think another 350B is going to solve the problem.

    I have yet to hear of an employer cutting back on jobs because of lack of loans from banks.

    If the money isn't being spent on ways to increast MEANINGFUL jobs and business, then it should taken out of the budget.

    January 13, 2009 02:38 pm at 2:38 pm |
  14. Idealist

    Why do they keep throwing money to the financial institutions??? No transparency, no real oversight, no criminal prosecution (at least not that we're seeing & certainly not ENOUGH!).....

    Why isn't the idea of distributing a large ($100,000+) amount of cash to each citizen being seriously considered??? I believe that that would do more for the economy and more for the morale of the American people than anything else – and would certainly provide more "bang for the buck".

    January 13, 2009 02:38 pm at 2:38 pm |
  15. Media Bias

    "Federal Reserve Chairman Ben Bernanke said Tuesday that President-elect Barack Obama's proposed fiscal stimulus package could help the economy..."

    It also could NOT help the economy, CNN. Tell both sides. Journalism 101.

    January 13, 2009 02:39 pm at 2:39 pm |
  16. Chris in MI

    Let them fail!! Or re-structure, whatever other companies have to do when they get into trouble. But we should not be giving another dollar to bailing out a failed bank!! The banks that we have bailed out are hoarding all the the money anyway. This is discusting. It's bad enough these jerks got the money without any oversight. I hope Obama replaces that useless Bernanke!

    January 13, 2009 02:40 pm at 2:40 pm |
  17. Terry

    We can wait until the new Administration comes in before throwing more money at the banks. We have not seen any improvement in credit availability after throwing $350 billion at America's very disappointing CEOs and we have no idea where the money went.

    Bernanke is not the man to manage this issue. He is either disingenuous or panicky. He stampeded Congress into acting without thinking (that's how we got into Iraq). We need a firmer hand at the helm.

    January 13, 2009 02:40 pm at 2:40 pm |
  18. Greed is not good

    Is he joking? they can not even account for the $ already spent...

    yeah they need to start repaying the $ back on the bogus executive bonues and golden parachutes....but of con-artists trying to hussle the taxpayers yet again

    January 13, 2009 02:41 pm at 2:41 pm |
  19. Louis

    The insanity never ends–we expect solutions from the very leaders who caused our country's horrendous problems.

    January 13, 2009 02:47 pm at 2:47 pm |
  20. gl, Pittsburgh

    YOU ARE RIGHT – CROOKS!

    January 13, 2009 02:48 pm at 2:48 pm |
  21. WOW

    I would rather give the money to the porn industry.

    January 13, 2009 02:48 pm at 2:48 pm |
  22. NEL E BELL

    NO MORE BAIL OUTS FOR THE WEALTHY THE LOST THE MONEY LET THEM LOSE THEIR JOBS. FRANKLY THEY STINK AT THEIR JOBS IF ONE HASN'T NOTICED.!!!!!!

    January 13, 2009 02:50 pm at 2:50 pm |
  23. Concerned Texan

    Has this stupid man, Bernanke, lost his mind or is he subtly lobbying for a job at CITI once he gets booted as Federal Reserve Chairman. Use the money to create jobs so that families can have money to put in the banks. He wants to make sure all of his friends get those last few $20 million bonuses before the 20th.

    January 13, 2009 02:51 pm at 2:51 pm |
  24. Moe, NY

    Bernanke, just let Obama handle this situation, I have more faith in him than I do you. You have not exactly handled the economic situation well to-date. More bailouts for financial institutions? The banks that have been helped so far refuse to be held accountable or disclose where the bailout money is being spent...enough already! Obama will bring accountability, you on the other hand will just add to the chaos. With that said, please stand back and let Obama handle the crisis.

    January 13, 2009 02:52 pm at 2:52 pm |
  25. Bernie

    Stolen for the second or third time in some cases. They handed out these NINJA loans, packaged them up and sold them to investors. For the most part they didn't loose a dime on them, the investors did and now they are being paid by our government to loan money and aren't doing it. Instead they're buying each other up with the handouts, creating more and more institutions that are to big to fail. They should be busted up into small division that are allowed to sink or swim on their own, not consolidated into mega banks that can do as they please, with little or no government oversight. They're doing the same thing with credit cards raising the rates, because they've sold the debt to an investor at a fixed interest rate and they don't care if you ever pay it or not. A better use of our tax payers money would be for the government to start buying mortgages and burning them. It would have a more positive effect on the economy.

    January 13, 2009 02:53 pm at 2:53 pm |
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