Transcripts show how Fed took time to understand scale of crisis

|By:, SA News Editor

Transcripts of FOMC meetings during the financial crisis in 2008 provide an insider's view into how the Fed dealt with the ever-growing disaster, including the rescue of Bear Stearns, Lehman Brothers' bankruptcy filing and the bailout of AIG.

"My initial that they paint a disturbing picture of a central bank that was in the dark about each looming disaster throughout 2008," writes Gretchen Morgenson in the NYT, "That meant that the nation's top bank regulators were unprepared to deal with the consequences of each new event."

In March 2008, for example, then NY Fed chief Timothy Geithner thought banks were adequately capitalized.

The NYT also profiles Janet Yellen's role, saying she "often became the most outspoken defender of the (Fed's activist) policies, and a reference point for others."

For an edited version of the transcripts, click here.