Former U.S. Treasury Secretary Hank Paulson describes the moment he knew Lehman Brothers’ fall meant the global financial system was at risk. He also relives his conversations with congress to get emergency powers for TARP and defends the bank bailouts.
Watch the premiere of the CNBC Original “Crisis On Wall Street: The Week That Shook The World” Wednesday, Sept.12 at 10pm ET/PT.
Ten years after the fall of Lehman Brothers, CNBC has produced the definitive televised account of the historic bankruptcy and cascade of events over a September weekend in 2008 that led to the worst financial crisis in generations. In this prime time original documentary, Andrew Ross Sorkin, CNBC anchor and author of the groundbreaking best-seller “Too Big to Fail,” reports on how the nation and the world came as close as ever to a full economic collapse.
The story is told through gripping interviews with those at the highest reaches of the U.S. government as well as the CEOs of the nation’s largest banks who gathered to try to save Lehman Brothers from failure. Wall Street chiefs Jamie Dimon, John Thain, and others describe dramatic, around-the-clock negotiations. Former U.S. Secretary of the Treasury Hank Paulson tells of the desperate moment when he realized that a Lehman bankruptcy could bring down the world’s financial system.
Could a financial crisis of this magnitude happen again? Sorkin puts that question time and again to the people gathered for this CNBC documentary, who shouldered the fate of the world’s finances and who recall the nightmare scenario they faced down ten years ago.
“It would be breadlines across the country for a generation,” former president of the N.Y. Federal Reserve Tim Geithner told Sorkin. “We did feel that we were making choices and faced with outcomes that would be devastating to the lives of hundreds of millions of people.”
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Former Treasury Sec. Paulson On The 2008 Crisis | CNBC…(read more)
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Former Treasury Secretary Paulson reflects on the 2008 financial crisis
Former Treasury Secretary Henry Paulson recently spoke about the 2008 financial crisis, offering insight and perspective on the events that led to one of the most significant economic downturns in modern history. As the man who was at the helm of the Treasury Department during the crisis, Paulson’s reflections provide a valuable and unique perspective on the tumultuous time.
In a recent interview, Paulson discussed the events leading up to the crisis and the decisions made to address it. He highlighted the interconnectedness of the global financial system and the complex web of risk that led to the collapse of major financial institutions, including Lehman Brothers.
Paulson also addressed the controversial decision to bail out certain financial institutions, including insurance giant AIG. He acknowledged that the decision was a difficult one, but ultimately necessary to prevent a complete meltdown of the financial system. It was a move that was met with widespread criticism and public outcry, but Paulson defends the decision as crucial in preventing an even more catastrophic outcome.
In reflecting on the crisis, Paulson emphasized the need for regulators and policymakers to remain vigilant in monitoring the financial system and addressing potential risks before they escalate into a full-blown crisis. He stressed the importance of learning from the mistakes that led to the 2008 crisis and implementing reforms to prevent similar events in the future.
Paulson’s reflections on the 2008 crisis provide valuable insights for policymakers and the public alike. They serve as a reminder of the fragility of the financial system and the need for vigilant oversight and regulation to prevent another crisis of such magnitude.
The 2008 financial crisis had far-reaching effects, impacting millions of people around the world. It led to a severe recession, widespread job losses, and a housing market collapse. The crisis also exposed weaknesses in the global financial system and sparked a wave of regulatory reforms aimed at preventing future crises.
As the person in charge of navigating the crisis at the highest level of government, Paulson’s reflections offer a unique and important perspective on the events of 2008. His insights can help inform future policies and regulations aimed at preventing a similar catastrophe from occurring in the future.
In conclusion, Former Treasury Secretary Henry Paulson’s reflections on the 2008 financial crisis offer valuable insights into the events that led to one of the most significant economic downturns in modern history. His perspective as a key player in addressing the crisis provides unique insight into the decisions made and the lessons learned. Paulson’s reflections should serve as a reminder of the importance of remaining vigilant in monitoring and regulating the financial system to prevent similar crises from occurring in the future.
ושום מילה על האחריות שלו להעדר רגולציה או היחסים הרעועים עם דיק פולד… ועדיין זאת כנראה היתה ההחלטה הנכונה לתת ללימן ליפול
Panu masisira buhay ko may bumba ako tinqnim sa currency treade nayan na pag sabog sa buhay ko na nag tanim akk ng bumba para makulong lang sa buhay ko na masira buhay kk dahil sa currency nayan na pag angat ninyong lahat hinayop ninyo buhay ko anu mali ko sa ginawa ko sa inyo anu ginago ninyk buhay ko sinira buhay ko kayo pag angat ninyo sagad sagad pag sira ninyo sa buhay gqnun lang pinag laruan ninyo buhày
Anu pag sira ninyo sa huhay kodahil sa currency treade naya. Anu ginawa ko salaro nayannag laro lang ako ng sikap parq kumita sinira ninyo buhay ko pag kakitan dahil sa ginawa ko sa laro nayan lahat inalam ninyo lahat ilabas ninyo ang totoo sa tao napahiya nq dahil sinira dahil sa laro nayan anu mali kk napag laruan ninyo buhay ko anu ginago nunyo buhay ko
This man deserves more recognition.
They have an obvious communication problem with the general public… when problems are there. Maybe they don't learn how to deal with problems in the first place, until they have to save the world, their family, their friends, the presidency, the Nation, the fishes in the ocean, the climate… That kind of stupid things.
he was involved from the very beginning, but he took responsibility and faced the tsunami head on.
Give me an unlimited check book and I will solve any financial problem! The every day joe paid the price for the crisis. The problem with America is that we praise the ones who created or reacted to the mess and we ignore the brilliant people who saw this coming. It's the skill-less leading the clueless!
What Hank Paulson suffers from is the delusion that the Treasury or Federal Reserve should step in and save the failing institutions like Fannie and Freddie. They should not simply because they don't save other institutions or individuals but let them comply with bankruptcy laws and sell of their assets for what they get.
Was this question/answer session even real? It seems the bits don't add up. Is boy wonder even talking to Paulson? It feels to me Paulson's dialogue is being hijacked. Is this site even credible?
“I’m all things lead by example not explanation”
UK, MORE NORTHERN ROCKS ?
UK follows the US they have inflation , they been having multiple bank rate hikes so have we
And now their banks are starting to crash ,with the knock on effects of companies sacking workers & or relocating . UK is starting to mirror the US, UK banks having a big drop in their share price ,take a look at the link below.
https://www.youtube.com/watch?v=G1qNAPVx8A4
Silicon Valley Bank just collapsed in the largest U.S. banking failure since the 2008 financial crisis and the second-largest ever.
How clueless and not self aware do you have to be. This old man just admitted to numerous crimes with an arrogance that I find to be absolutely breathtaking.
Hank did nothing but reward failure. This is the moment America died. Empire Collapse . Banksters
Just more Conservunist corporate welfare socialism. The Republican taxpayer bailout of failure.
The excesses in the financial markets that he helped to create as Goldman’s Sachs CEO…
“From the day I began I was worried due to the excesses in the financial industry”
He didn’t care when he was in the financial system lapping his massive bonuses
Or the day I gave 700 billions to my buddies
He and Tim geitner saved us
Rightfully so. The Government must never intervene with the free market. Unless – some smelly crap is going on.
I-I-I looted the American taxpayer to save the stock market and my Wall Street banker pals. You're welcome.
WHILE US ARMY FIGHTING AGAINST ISLAMIC TERRORISTS, BACK HOME US GOVERNMENT ASKED SAUDI ARAB TO BAIL OUT LEHMAN & MERYLL LYNCH… BETRAYAL TO US ARMY WAHAHHAHHAHAAHHAHAHAHHAHAHHAHAHAHHAHHAHAHHAHAHAHHHAHAHAHAHHAHAHAHHAHA THEN HANK PAULSON INSISTED NOT TO BAIL OUT LEHMAN INSTEAD TURNED OUT BIG MISTAKES THEN BEG PELOSI ON HIS KNEES TO USE TAX PAYER MONEY 700 BILL(GATE)LIONS USD WAHAHAHAHHAHAHAHA WHY BALDY PEOPLE ALWAYS MAKE STUPID DECISIONS LIKE MY EX PAP@ IN LAWS & SINGAPOOR BABY SHANMU KENA SLAPPED BY LEE AH LOONG??? WAHAHHAHAHHAA
Gentlemen, would you like to come to my birthday party?
Ben Bernanke, Timothy F. Geithner, Hank Paulson, Robert Rubin, Alan Greenspan..These are my heroes these days preparing for the central bank. Obsessed with central banking, with monetary policy, with interest rates. A few points up in the interest rate and boom the economy changes
Paulson is a gutless weasel
United Way are a bunch honeybees