Fed boss didn't know Lehman masked its debt

Bernanke claims ignorance regarding the investment firm's accounting tricks


Jeannine Aversa
April 20, 2010 12:17AM (UTC)

Federal Reserve Chairman Ben Bernanke says the Fed wasn't aware that now-defunct Lehman Brothers used an accounting gimmick to mask billions in debt in the run-up to the 2008 financial crisis.

Bernanke, in prepared remarks to a House committee, says even if it did, the information wouldn't have changed the Fed's view that the investment firm was in bad financial shape.

Advertisement:

The remarks were released Monday in advance of Tuesday's hearing.

Although Securities and Exchange Commission was Lehman's chief regulator, the Fed did begin to monitoring the firm as financial stresses heightened.


Jeannine Aversa

MORE FROM Jeannine Aversa

Related Topics ------------------------------------------

Bank Bailouts Ben Bernanke Economics U.s. Economy

BROWSE SALON.COM
COMPLETELY AD FREE,
FOR THE NEXT HOUR

Read Now, Pay Later - no upfront
registration for 1-Hour Access

Click Here
7-Day Access and Monthly
Subscriptions also available
No tracking or personal data collection
beyond name and email address

•••






Fearless journalism
in your inbox every day

Sign up for our free newsletter

• • •