Hey, who knew?
At the House Financial Services Committee hearing minutes ago, Rep. Joe Baca (D-CA-43) asked the following question:
How do you feel about the bailout? Do you feel that the bailout was necessary?
I thought that was just about the biggest softball I'd ever heard. Imagine my surprise!
Lloyd Blankfein, CEO, Goldman Sachs:
I don't necessarily think it was necessary at the time, but -- and this was said at the time -- they were looking ahead at an emerging recession that was going to get worse, and for prudential reasons, it was necessary for the systemic safety and soundness. And as subsequent events have borne out, I think it has provided safety and soundness, and taken some of the risk away from the system.
Ken Lewis, CEO, Bank of America:
I actually agree. I know at the time we did not feel like we needed the 15 billion. But I think in light of the severity of the recession, and in light of the speed at which the economy deteriorated, I think we have lent more money because we had the TARP funds and that level of capital.
Do any of you remember the bailout being sold as not particularly necessary, but nonetheless probably kinda-sorta prudent?
I didn't think so.