Greenspan “shocked” to learn of the breakdown in lending standards and risk management; Says “found a flaw” in his ideology in testimony on the “once-in-a century credit tsunami”
Oct 23rd, 2008 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
Former Federal Reserve Chairman Alan Greenspan said today that he “made a mistake” in believing banks and others would protect their shareholders and own firms’ equity. He was “shocked” to learn of the breakdown in lending standards and risk management at the firms that lead to the current credit crunch. Greenspan admitted that he “found a flaw” in his ideology and “that’s precisely the reason I was shocked.”