5 years after the initial wave of the credit crisis broke, the jury is still out on how it will resolve. As former Treasury Secretary Hank Paulson is making the media rounds with his version of why and what happened in the TARP bailout, this segment offers another perspective from someone else that was in the Wall Street inner chambers in the fall of 2008. Kovacevich also expresses his views on why the Fed will announce some tapering of QE this month. My guess continues to be that the Fed has signaled a taper and so they will want to go through with some step in that direction. However, if stock markets weaken significantly in the weeks ahead, I also think it is likely that the Fed will want to roll out some new monetary potion which is likely to have even less benefit and more cost than all of their other interventions over the past 3 years.
Richard Kovacevich, former Chairman & CEO of Wells Fargo, provides his thoughts on how the government handled the financial crisis five years ago, and why he thinks the TARP program actually made the crisis worse. Here is a direct video link.
Hank’s version of events is due to release on Netflix Monday. Here is the trailer.