Fed’s Bernanke Defends Bear Sterns Rescue, ‘Chaotic Unwinding’ Avoided

Federal Reserve Chairman Ben Bernanke defended the U.S. central bank's action to provide funding to Bear Stearns, saying Bear's failure would have led to "a chaotic unwinding" in financial markets that would have impacted the real economy. Testifying before the Senate Banking Committee, Bernanke said Thursday a default by Bear Stearns ...