Today, Wednesday, Bennie Bernanke will be facing some Congress critters that plan to ask him wtf is up with the $30 Billion welfare check to bailout Bear Stearns. From the NYT link:
Taken together, most experts say that what the Fed has done in the last several months is unparalleled in modern times. Indeed, the Bear Stearns deal relied on a provision of the Federal Reserve Act not used since the 1930s. As a result, investment experts, many Americans and most members of Congress are bursting with questions.
Mr. Bernanke has yet to explain, for example, exactly how he negotiated the Bear Stearns deal, how he decided to accept the $30 billion in dubious collateral, who set the share price for Bear Stearns and what role was played by Treasury Secretary Henry M. Paulson Jr., a former Goldman Sachs executive.
On Wednesday the Fed chief begins two days of testimony, his first opportunity to answer some of these questions. They are certain to focus not only on Bear Stearns but also on why the Fed and others let things deteriorate to the point of crisis, and whether their actions should serve as a precedent or guideline for the future of regulation of the financial sector.
Must see TV on Cspan..I will hunt down the internet link if anyone is interested..and you should be you know..
