Ben Bernanke saw US economy through turbulent times

Jan 30 2014, 12:08 IST
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Ben Bernanke departs the US central bank after eight largely turbulent years in which he guided the economy through the most virulent financial crisis. Reuters Ben Bernanke departs the US central bank after eight largely turbulent years in which he guided the economy through the most virulent financial crisis. Reuters
SummaryFederal Reserve Chairman Ben Bernanke departs the US central bank after eight largely turbulent years.

Federal Reserve Chairman Ben Bernanke departs the US central bank on Friday after eight largely turbulent years in which he guided the economy through the most virulent financial crisis and recession since the Great Depression.

Following is a look at Bernanke's two four-year terms in office:

Oct. 24, 2005 - President George W. Bush nominates Bernanke to be Fed chairman. Bernanke is confirmed by the Senate on Jan. 31, 2006, and sworn in the following day.

Aug. 17, 2007 - Fed cuts discount rate it charges banks for emergency loans to ease growing strains in financial markets.

Nov. 14, 2007 - Fed announces it will increase frequency of its economic forecasts in an effort to improve transparency.

December 2007 - U.S. economy slips into recession.

Dec. 12, 2007 - Fed launches Term Auction Facility to encourage borrowing by banks hesitant to borrow at its discount window. It was the first of several crisis-era programs the Fed would launch to keep money flowing through the economy.

March 11, 2008 - Fed invokes emergency powers to launch $200 billion facility to loan Treasury securities to bond dealers against a broad range of collateral, including home mortgages. The Fed would invoke emergency powers multiple times during the crisis to launch new lending facilities.

March 14, 2008 - Fed provides emergency financing to Bear Stearns through JPMorgan, the first bailout of a broker since the Great Depression.

March 16, 2008 - Bear Stearns collapses and JPMorgan agrees to buy it with $30 billion in backing from the New York Federal Reserve Bank. Fed launches Primary Dealer Credit Facility for investment banks.

Sept. 7, 2008 - U.S. government takes over mortgage finance firms Fannie Mae and Freddie Mac.

Sept. 14, 2008 - Bank of America buys Merrill Lynch for about $50 billion.

Sept. 15, 2008 - Lehman Brothers becomes the largest firm in U.S. history to declare Chapter 11 bankruptcy after the Fed and Treasury decide not to bail it out.

Sept. 16, 2008 - Fed lends $85 billion to insurer American International Group to prevent its bankruptcy.

Sept. 19, 2008 - Fed begins Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility to foster liquidity in the ABCP market and money markets in general.

Sept. 21, 2008 - Morgan Stanley and Goldman Sachs become bank holding companies, gaining access to Fed's discount window.

Sept. 23, 2008 - Bernanke and Treasury Secretary Henry Paulson urge Congress to approve $700 billion financial bailout fund.

Sept. 29, 2008 - Dow Jones industrial average drops

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