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. James in Nebraska

    Sure, why not? I'm more than happy to give my tax dollars to CEO bonuses and vacations. They deserve it more than my neighbor who lost there job and could go into forecloser because of it. They did a good job with the first half, did they not?

    /sarcasm

    January 13, 2009 02:54 pm at 2:54 pm |
  2. UNEDUCATED AMERICA

    he was supposed to be in a hearing in DC-

    END THE FED

    January 13, 2009 03:06 pm at 3:06 pm |
  3. Joe

    Just more corporate welfare... The former Federal Reserve Chairman got us into this mess by lowering interest rates, essentially subsidizing our economy; why shouldn't Bernake continue the subsidies by bailing out more banks? Here's a fresh idea – why don't we let them fail! Capitalism is based on survival in a tough world!!! If the banks fail, who cares?!?! Some of the banks will survive. All Bernake is doing is spending tax dollars and putting off the inevitable.

    January 13, 2009 03:06 pm at 3:06 pm |
  4. Larry in Houston TX

    I gree with you, Adrian.... They should never have gotten a Bailout, in the first place.....let the chips fall where they may.....The people that have their farms / houses / homes / cars / & everything else Paid For, would be the ones that will come thru.....

    January 13, 2009 03:07 pm at 3:07 pm |
  5. D.Bolden

    Ben Bernanke needs to be put under a jail for his deceit. All that money's gone to the banks, billions that are being hoarded and what has been spent can't be tracked. How in the "H" do you release billions of dollars and have no way to track it or hold anyone accountable. But yet for the main street peons, we'd have to submit a small life biography and financial history to borrow $20,000 for a car.

    January 13, 2009 03:11 pm at 3:11 pm |
  6. Debby, NJ

    Just stop, ENOUGH already with the bailouts...let them go bankrupt. time to start helping the WORKING people.

    January 13, 2009 03:12 pm at 3:12 pm |
  7. kgeukes

    If he gets his way we'll all lose our homes...he needs to shut the h- up and back away from the money!!!!!

    January 13, 2009 03:19 pm at 3:19 pm |
  8. jrzshor

    how do i incorporate as a bank?

    January 13, 2009 03:21 pm at 3:21 pm |
  9. 7 more days!

    Not a dime to banks until they give a transparent, detailed accounting of what they did with the bailout money they have been given and a detailed plan of what they will do with any future money. There should also be an investigation of their books and what they are paying their employees just as the auto companies and workers had to do!

    This should include what they are going to do to prevent the same thing from happening all over again.

    January 13, 2009 03:24 pm at 3:24 pm |
  10. aware

    Roll on 2012! We are in for an unbelievabley bad four years. 😦

    It will take an authentic reformer to bring America back to health!

    January 13, 2009 03:32 pm at 3:32 pm |
  11. David

    You're right Adrian. These are crooks that are taking our money and future. The Fed is illegal and not part of the government (they are privately owned). It is illegal for them to dictate our fiscal policy but most Americans don't know this.

    January 13, 2009 03:42 pm at 3:42 pm |
  12. Marey

    Okay, so where is MY bailout? My husband & I work everyday. We make enough to get by with a little left over. But we are neck deep in the college loans we needed for our 3 kids and prices on everything are going up & up. God help us if either of us lose a job. But no let's give more money to the Bankers who take home a million or so already. After all these poor folks may have to give up their million dollar bonuses.

    January 13, 2009 03:44 pm at 3:44 pm |
  13. Brad - California

    Giving the financial system more money may produce short-term stabilization, but it will never provide strength. The key is with people, and if the heads of the banking and financial firms receiving the funding represent the "brightest of the bright," then our system will be in trouble for decades to come.

    Years from now, when the US is fully a Third World Nation, we will look back on the recklessness, stupidity and lack of oversight during the Clinton and Bush administrations, and at people such as Bush, Bernanke, Paulson and the entire United States Congress and wonder what happened.

    The Bush legacy. Yeah, right.

    January 13, 2009 03:57 pm at 3:57 pm |
  14. REG in AZ

    Care has to be taken as more of the same can't help. If there is real concern for turning things around then there is one thing that has to be done first, one thing that when not done has proven to make everything else meaningless. That one thing is the development of a sincere and honest concern for getting it right to benefit the majority of Americans, to drop the preoccupation with justifying and rationalizing the self-indulgence and the focus on benefiting Special Interests and a select few, who return benefit. Over the last eight years in particular we have clearly seen and been subjected to the free wheeling and arrogant subterfuge constantly offered to cover over just those actions and we now are living with the total devastation that brings. If the politicians continue to focus on themselves, if the issue is whether Republican or Democrat, or conservative or liberal, if their efforts are really just more disguised manipulation appealing to people’s biases to justify benefit for limited interests, then we will just continue to pay the penalty. The only way they can effectively make the right decisions on how much money to give who, on what qualifications and controls must be put in place, on what regulations and regulatory enforcements have to be enacted, on what comes first and so on, is when they are truly and honestly concerned for more than just what advances their personal interests. Whenever we have seen them expending great energy and rhetoric to block or advance a cause, it has always been for a partisan self-interest, no matter how rationalized. Turning that around should be the real goal; good luck!

    January 13, 2009 03:57 pm at 3:57 pm |
  15. Sherrol in Canada

    OOps!! I meant, please release my comment at 1:20 pm...thank you

    January 13, 2009 03:58 pm at 3:58 pm |
  16. Jackie in Dallas

    Your comment is awaiting moderation.
    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 03:59 pm at 3:59 pm |
  17. Lu

    Are they kidding? No way in hell should they receive another penny.....

    January 13, 2009 04:00 pm at 4:00 pm |
  18. Chuck

    First order of business for Obama, fire the nit-wit Federal Reserve Chairman Ben Bernanke and change the rules back that Bush altered which allowed rich businessmen to loot the U.S. Treasury. Stop borrowing and giving taxpayer money to schiesters! Let them go belly-up - that's part of capitalism. Whatever is left of value will be bought by other businesses that won't be as crooked because they have to operate under fair rules.

    January 13, 2009 04:06 pm at 4:06 pm |
  19. Agnes Fleming

    No more bank bailouts are needed. Let them fall. How very interesting the banks can charge the consumer up to 30% and high in interest rates and charge all kinds of other fees like the loan sharks that were sent to prison in olden days and then turn around and get bailed out by the taxpayer for their screw ups in the mortgage bundling debacles. Let them fall like skittles and then they might get more reasonable with the consumer before the taxpayer gets tougher with them.

    January 13, 2009 04:12 pm at 4:12 pm |
  20. Karl Rove

    Bernanke is on the take, just like Paulson. Where are all the Wall Streeters crying "Socialism".

    January 13, 2009 04:53 pm at 4:53 pm |
  21. sandee in Portland

    Adrian, I second that. Let these banks fail. After all, they haven't loosened up any credit for the consumers. All they've done with the money is to either buy up other companies to make themselves even larger or given out bonuses with the money. The only financial institutions having problems are the ones that made high risk loans because they were greedy. The smaller ones that made sure they only approved loans to qualified people aren't having any trouble, at least not in our area.

    January 13, 2009 04:58 pm at 4:58 pm |
  22. works for a living

    Gotta save all those money people after all ; isn't money Americas god?

    January 13, 2009 05:02 pm at 5:02 pm |
  23. Down with Bernake... bring back the previous one

    I can't remember his name just now, but Bernake's predecessor, let him take a stab at this mess, he was at least entertaining with his descriptions of the economic problems

    January 13, 2009 05:03 pm at 5:03 pm |
  24. 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 05:24 pm at 5:24 pm |
  25. Steve

    It seems no one can account for the first lump sum!

    January 13, 2009 05:28 pm at 5:28 pm |
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