Washington and Wall Street were caught off guard by the financial meltdown
Bear Stearns was the first financial institution to collapse during the crisis
Regulators were criticized for not recognizing the risks in the financial system
The government bailed out Bear Stearns to prevent a larger crisis
Barack Obama emerged as a key figure in addressing the crisis
What caused the financial meltdown?
—The financial meltdown was caused by shaky home mortgages and fears of a global liquidity crisis.
Why did Bear Stearns collapse?
—Bear Stearns collapsed due to its exposure to toxic assets, specifically subprime mortgages.
Who was responsible for overseeing the financial system?
—Regulators at the Federal Reserve and the SEC were responsible for overseeing the financial system.
Why was Bear Stearns deemed 'too big to fail'?
—Bear Stearns was deemed 'too big to fail' because its collapse could have caused a domino effect and brought down other major Wall Street firms.
What role did Barack Obama play in addressing the crisis?
—Barack Obama emerged as a key figure in addressing the crisis and turning the economy around.
00:06Episode two of 'Money, Power, and Wall Street' investigates the financial meltdown.
01:15The fear of a financial meltdown becomes a reality in March 2008.
02:59Bear Stearns becomes the first financial institution to collapse during the crisis.
06:22Regulators are criticized for not recognizing the risks in the financial system.
09:49The government bails out Bear Stearns to prevent a larger crisis.
15:44Barack Obama emerges as a key figure in addressing the crisis and turning the economy around.
