Bernanke Wants Answers From Goldman Sachs & Wall Street
by Hiland Doolittle
In his second day of appearances, Fed Chairman Bernanke maintained the central bank’s position that interest rates will remain low. This news was received with enthusiasm as the markets roared back from early day triple digit losses to settle down 73 points.
Bernanke formally announced that both the SEC and the Federal Reserve were launching investigations into the role of Goldman Sachs and other Wall Street financial institutions in introducing the government of Greece into the risky derivatives activity that is now plaguing the nation.
Bernanke comments underscored the probability that Greece’s sovereign debt was to be downgraded by ratings agencies. Recent revelations that the country’s deficit was three times the originally estimated amount has left the country on the brink of bankruptcy.
The European Union has offered support but no direct aid to the ailing economy. The Greek government is scheduled to meet with German leaders next week with hands held out. The effect on the euro has unsettled international markets for more than a week.
The SEC released the following statement; “As an agency, we have been examining potential abuses and destabilizing effects related to the use of credit default swaps and other opaque financial products and practices.”
Bernanke did not declare that whether the Fed thought there were fraud and disclosure violations or whether the Fed’s interest was to prevent recurrences with reform measure. he Goldman Sachs derivatives used by Greece in 2001, reduced the nation’s debt to a level that enabled the country to join the European Union. By doing so, the country does not have the ability to initiate quantitative easing, which might help counter the nation’s greatest recession in 50 years.
Tags: bob bernanke, goldman sachs, greece, wall street
About the Author - Hiland Doolittle
Hiland is a professional writer with extensive entrepreneurial experience. He is a graduate of St. George’s School Newport, RI and the State University of New York at Albany where he majored in history. He has been active in the real estate business for 30 years and has founded and sold several businesses.
Hiland currently writes for several financial sites and is a published author of the novel The Last Parade. He has recently completed a manuscript for a children’s book entitled Sami and The Minnow Man.
