Your regular episode of Marketplace is coming later today, but for now we have something special. It's an interview a decade in the making: Treasury Secretary Hank Paulson, Federal Reserve Chair Ben Bernanke, and President of the New York Fed Tim Geithner, who later served as Treasury Secretary under President Obama. In 2008, they worked together to coordinate an unprecedented response to the financial crisis, often racing to do so against the clock and public opinion.
For the first time they've been together in public since crisis, Bernanke, Paulson and Geithner sat down with us to discuss Bear Stearns, the government takeovers of Fannie Mae and Freddie Mac, Lehman weekend and the fear they felt as they struggled to stop the financial crisis spreading from Wall Street to Main Street. They talked about their biggest regrets and why they wished they'd done a better job explaining their actions to the American people. Then, they looked ahead to talk about our ability to fight the next financial crisis and why a functioning Congress is so important to solve crises before they start.
This interview is part of Marketplace’s coverage of the ten-year anniversary of the financial crisis called Divided Decade, a year-long project exploring what happened, why it matters now and how the aftermath will continue to have an impact on Americans’ economic future.
The new guy on the monetary policy block had his first press conference today. His first rate hike, too. Jay Powell's been in the big chair at the Federal Reserve six or seven weeks by now. Job No. 1 today was to not upset the economic apple cart. He didn't, and the economic news helped. That's where we'll start today. Then: Facebook. First we'll get an update from Marketplace Tech's Molly Wood about the latest turn in the site's data privacy controversy, and then we'll look at what the rest of us can do about it. Delete our accounts? Not so fast. Plus, more of our conversation with the first responders to the economic crisis.
In the first part of our conversation with Ben Bernanke, Hank Paulson and Tim Geithner yesterday, we talked about how Bear Stearns was saved, at first, by the Fed and JPMorgan. That was 10 years ago this month. Today we'll pick up with another bank that wasn't so lucky: Lehman Brothers. We'll also talk about the politics of managing a crisis like the one we faced in 2008 and why, at least according to Geithner, these three men "saved the economy but lost the country." Then: The head of the World Trade Organization said recently that if it weren't for the WTO, a trade war would already have begun. We'll unpack that a bit. Plus, the latest on Facebook's misused data.
That is, former Fed Chair Ben Bernanke, former Treasury Secretary Henry Paulson and Timothy Geithner, former president of the New York Federal Reserve and former Treasury secretary. We sat down with all three of them at Yale University last week to talk about what they saw 10 years ago as the economy collapsed, and what worries them now. We'll bring you bits of that conversation throughout today's show, with even more in the coming days. Then: Facebook shares dropped 6.77 percent on the big news from this weekend that Cambridge Analytica hoovered up data on 50 million Facebook users and used it to aim messages favoring Donald Trump. As lawmakers call for testimony and regulation, we'll look at how this could affect Facebook's business model. Plus: The latest on tariffs.
If the legal machinations of giant corporate mergers are your thing, next week is gonna be a good one for you. The U.S. v. AT&T and Time Warner heads to Federal court Monday. The Justice Department is trying to block the $85 billion deal, and the companies are fighting back. The case has a lot to do with the changing media landscape, of course, but it also says a lot about big mergers in the Trump era. First though, we have to deal with the week that was: Trade, sanctions and toys. Plus, why do we associate mint flavor with cleanliness? You've always wondered.
Your regularly scheduled episode of Marketplace is landing in your feed later today, but for now we have something special. Make Me Smart with Kai and Molly is back with brand-new weekly episodes, wading into the big topics we want to get smart about. This week we're looking at the fall of Wall Street bank Bear Stearns, exactly 10 years ago. Plus, Kai and Molly talk with Ai-jen Poo, an advocate for domestic workers who accompanied Meryl Streep to the Golden Globes this year. She's using her Hollywood moment to make sure #MeToo is working for everyone. Subscribe to Make Me Smart and join the conversation.