Former Fed chairman blasts Bernanke, Bear Stearns deal

04/9/2008 | NYTimes.com

Former Federal Reserve Chairman Paul A. Volcker said Tuesday that current Chairman Ben S. Bernanke had pushed the central bank to "the very edge" of its legal authority when he orchestrated a bailout for Bear Stearns. "Out of perceived necessity, sweeping powers have been exercised in a manner that is neither natural nor comfortable for a central bank," Volcker said in a speech to members of the Economic Club of New York. The comments came on the same day that another former chairman, Alan Greenspan, dismissed claims that his policies stoked an untenable housing bubble.

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