Thursday, September 16, 2010

Crisis panel to hear from Bernanke, Lehman's Fuld

This Wednesday and Thursday The Financial Crisis Inquiry Commission heard testimonies from high figure individuals close to the financial crisis that occurred. The specific topic they were hoping to get a better grasp on is that of "Too big to fail" or the idea that some companies are so big that they have an implicit government backstop. They hoped to determine: 1) if this is an actual phenomena and 2) if this is a good practice for the economy.

I'd really love to see the follow up article now that the meeting has actually occurred since one of the persons giving a testimony was Dick Fuld. This is significant because Fuld was one of the executives of Lehman Brothers which was one of the only huge corporations for which the government didn't provide bailout funds when the final crisis took it's toll.

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