What happened in inside the meltdown?
Inside the Meltdown investigates the causes of the worst economic crisis in 70 years and how the government responded. The film chronicles the inside stories of the Bear Stearns deal, Lehman Brothers’ collapse, the propping up of insurance giant AIG and the $700 billion bailout.
Who is the director of Inside the meltdown?
Michael Kirk
Frontline: Inside the Meltdown/Directors
What was the date of the stock market crash inside the meltdown?
On Thursday, Sept. 18, 2008, the astonished leadership of the U.S. Congress was told in a private session by the chairman of the Federal Reserve that the American economy was in grave danger of a complete meltdown within a matter of days.
What is the name of the Federal Reserve System Fed governor inside the meltdown?
Ben Bernanke is a former Federal Reserve chair, serving from 2006-2014. As Fed chair, Bernanke oversaw the central bank’s response to the 2008 financial crisis and Great Recession that followed. Bernanke succeeded Alan Greenspan and was replaced by Janet Yellen.
What happened to make the Bear Stearns go out of business?
The company ran out of funds and, in March 2008, went to the Federal Reserve for a credit guarantee through the Term Securities Lending Facility. Another downgrade hit the firm and a bank run started. By March 13, Bear Stearns was broke. Its stock plummeted.
What was Tim Geithner most afraid of with the collapse of Bear Stearns?
What was on Bear Stearns’ books that was scaring [Tim] Geithner and Bernanke? Well, I would say that unfortunately none of it scared them until the market seized up with lack of liquidity. The market, the investors were scared, pulling their money out. Therefore there was a liquidity problem.
How many days did the 2008 crash last?
The US bear market of 2007–2009 was a 17-month bear market that lasted from October 9, 2007 to March 9, 2009, during the financial crisis of 2007–2009.
What happened to make the firm Bear Stearns collapse?
What happened to make the firm Bear Stearns go out of business? They had a lot of high-risk mortgages (toxic assets). Their cash reserves declined and confidence in the company was lost. Investors wanted to sell their stock to prevent losing more money causing the value of the stock to drop.
What was Bernanke’s darkest fear?
NARRATOR: On this night, one of the Depression expert’s darkest fears was being realized. GRETCHEN MORGENSON: Ben Bernanke felt that the risk to the system, the financial system as a whole, would be too great if Bear Stearns were allowed to go bankrupt.
Why was Lehman Brothers not bailed out?
This greatly reduced the risk of runs in the repo market. In “The Fed and Lehman Brothers”, Prof. He said that the decision of not rescuing Lehman was based on the judgment of the sustainability of Lehman. At that time, they decided Lehman didn’t have a viable business going forward.
Did Bear Stearns investors lose money?
The collapse and takeover of Bear Stearns wiped out billions of dollars in shareholder value in a matter of days. The investment bank’s employees were some of the biggest losers. But NPR’s Scott Horsley reports that a number of large mutual funds also saw the value of their Bear Stearns holdings plummet.
Why Lehman Brothers was not bailed out?
In the years since the collapse, the key regulators have claimed they could not have rescued Lehman because Lehman did not have adequate collateral to support a loan under the Fed’s emergency lending power.