SEC Chairman Cox says there would have been additional pressure in real economy

At the Senate Banking, Housing, and Urban Affairs Committee hearing on "Turmoil in U.S. Credit Markets: Examining the Recent Actions of Federal Financial Regulators," SEC Chairman Christopher Cox says the decision to provide funding through JPMorgan was made because of Bear's participation in a range of critical markets meant that a chaotic unwinding of its positions could have created additional pressure throughout the real economy. (:26)
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SEC Chairman Cox says customers of Bear Stearns were not at risk

At the Senate Banking, Housing, and Urban Affairs Committee hearing on "Turmoil in U.S. Credit Markets: Examining the Recent Actions of Federal Financial Regulators," SEC Chairman Christopher Cox says despite the run on the bank to which Bear Stearns was subjected, at no time during the week between March 10-17 were its customers at risk of losing their cash or their securities. (:18)
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Chairman Bernanke says default would not have been confined to financial system

At the Senate Banking, Housing, and Urban Affairs Committee hearing on "Turmoil in U.S. Credit Markets: Examining the Recent Actions of Federal Financial Regulators," Federal Reserve Chairman Ben Bernanke says the damage caused by a default by Bear Stearns could have been severe and extremely difficult to contain and the adverse impact of a default would not have been confined to the financial system. (:23)
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Under Secretary Steel says all Americans bear consequences of a system under stress

At the Senate Banking, Housing, and Urban Affairs Committee hearing on "Turmoil in U.S. Credit Markets: Examining the Recent Actions of Federal Financial Regulators," Under Secretary for Domestic Finance Robert K. Steel (appearing to represent Secretary Paulson and the U.S. Treasury Department) says a strong financial system is vitally important for all Americans. When our markets work, people throuhgout economy benefit, such as Americans seeking to buy a car or home, or borrow on the strength of a good idea. When our financial system is under stress, he says, all Americans bear the consequences. (:29)
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Senator Bunning says stopping the invisible hand of the market is Socialism

At the Senate Banking, Housing, and Urban Affairs Committee hearing on "Turmoil in U.S. Credit Markets: Examining the Recent Actions of Federal Financial Regulators," Senator Jim Bunning (R-KY) says his first question is how big do you have to be to be too big to fail, and he does not like the idea of the Fed getting involved in the bailout of that company [Bear Stearns]. I want to hear from the witnesses, he says, why they thought it was necessary to stop the invisible hand of the market from delivering discipline. That, he says, is Socialism. (:38)
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