Bernanke: GSE's Had Serious Flaws Pre-Crisis

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

July 17 (Bloomberg) -- Federal Reserve Chairman Ben Bernanke speaks during testimony before the House Financial Services committee.

Do you still stand by that statement?

I stand by the view that the gse's, as constituted before the crisis, had serious flaws, in terms of the employes a guarantee from the government not compensated, a lack of capital, and the fact they were torn between public and private purposes.

I agree there were a significant problem.

[inaudible] gse-type organizations are not successful to mortgage financing.

Many other industrial come -- countries have achieved ownership rates comparable to that of the united states.

One device that has been widely used was covered bonds.

Do you still stand by that statement?

Yes.

As i understand it, you view it as a viable to retain a government backstop in times of great turmoil, as we saw in 2008. is this correct?

The fed has not put forward a plan.

Several economists -- that would be independent research that is not endorsed by the governors.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change