Government Bailout of Financial Institutions

The recent failure of financial houses and the government’s planned interventions are not new. The government has done this before and will probably have to do it again in the future. For a brief, understandable review of what has happened, along with a table outlining previous governmental rescues, please read this from CRS. Another CRS report looks at the bailout proposal itself, and once again it is in plain language. The full text of the draft legislation for the bailout is here. (Update as of October 3. Read the full version of the Emergency Economic Stabilization Act of 2008). The Brookings Institution weighs in with some of its concerns. For those interested in the previous “S&L crisis” of the 1980s, check out this site from the FDIC, and also this report from Time Magazine.

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