Wednesday, March 04, 2009

Bernanke Expresses Frustration Over AIG Abuse of System

Bernanke said no episode in the current financial crisis has angered him more than the need to rescue AIG. He stated without equivocation:

"AIG exploited a huge gap in the regulatory system. There was no oversight of the financial-products division. This was a hedge fund, basically, that was attached to a large and stable insurance company, made huge numbers of irresponsible bets, took huge losses. There was no regulatory oversight because there was a gap in the system." The Wall Street Journal

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