Summary
THE US Federal Reserve warned the Bear Stearns crisis could have ignited a 'chaotic' series of chain reactions within the banking system, ultimately triggering a financial and economic implosion.
In its starkest-ever warning about the fractured state of the markets, chairman Ben Bernanke told Congress that the potential damage from last month's default could have been 'severe and extremely difficult to contain'.See the full content of this document
Extract
Bernanke Warns of Bear Stearns Fallout
His colleague Tim Geithner, president of the New York Fed, said the [pounds]15bn Bear...
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