Saturday, 19 January 2013

US Federal Reserve 'underestimated financial crisis'

The US Federal Reserve may have underestimated the looming 2007 global financial crisis, released transcripts from its meetings that year have shown.

The documents suggested Fed Governor Ben Bernanke wanted to hold off from addressing rising panic in the markets.

He said in December of that year that he did not "expect insolvency or near insolvency among major financial institutions".

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