{"page":"\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/resources-c03aa079.css\" /\u003e\n\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/lp_boclips_stylesheets-517835be.css\" media=\"all\" /\u003e\n\u003cdiv data-title='Greenspan, Snow hearing on financial crisis' data-url='/boclips/videos/5c54bf95d8eafeecae144464' data-video-url='/boclips/videos/5c54bf95d8eafeecae144464' id='bo_player_modal'\u003e\n\u003cdiv class='boclips-resource-page modal-dialog panel-container'\u003e\n\u003cdiv class='react-notifications-root'\u003e\u003c/div\u003e\n\u003cdiv class='rp-header'\u003e\n\u003cdiv class='rp-type'\u003e\n\u003ci aria-hidden='true' class='fai fa-regular fa-circle-play'\u003e\u003c/i\u003e\nVideo\n\u003c/div\u003e\n\u003ch1 class='rp-title' id='video-title'\u003e\nGreenspan, Snow hearing on financial crisis\n\u003c/h1\u003e\n\u003cdiv class='rp-actions'\u003e\n\u003cdiv class='mr-1'\u003e\n\u003ca class=\"btn btn-success\" data-posthog-event=\"Signup: LP Signup Activity\" data-posthog-location=\"body_link_boclips\" data-remote=\"true\" href=\"/subscription/new\"\u003e\u003cspan\u003e\u003cspan\u003eGet Free Access\u003c/span\u003e\u003cspan class=\"\"\u003e for 10 Days\u003c/span\u003e\u003cspan\u003e!\u003c/span\u003e\u003c/span\u003e\u003c/a\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-body'\u003e\n\u003cdiv class='rp-info'\u003e\n\u003cdiv aria-label='Hide resource details' class='rp-hide-info' role='button' tabindex='0'\u003e\u0026times;\u003c/div\u003e\n\u003ci aria-label='Expand resource details' class='rp-expand-info fai fa-solid fa-up-right-and-down-left-from-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003ci aria-label='Compress resource details' class='rp-compress-info fai fa-solid fa-down-left-and-up-right-to-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003cdiv class='rp-rating'\u003e\n\u003cspan class='resource-pool'\u003e\n\u003cspan class='pool-label'\u003ePublisher:\u003c/span\u003e\n\u003cspan class='pool-name'\u003e\n\u003cspan class='text'\u003e\u003ca data-publisher-id=\"30356011\" href=\"/search?publisher_ids%5B%5D=30356011\"\u003eCurated Video\u003c/a\u003e\u003c/span\u003e\n\u003c/span\u003e\n\u003c/span\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-description'\u003e\n\u003cspan class='short-description'\u003e1. Wide of Former Federal Reserve Chairman Alan Greenspan, Securities and Exchange Commission Chairman Chris Cox and Former Treasury Secretary John Snow testifying at the House Oversight and Government Reform Committee 2. SOUNDBITE:...\u003c/span\u003e\n\u003cspan class='full-description hide'\u003e1. Wide of Former Federal Reserve Chairman Alan Greenspan, Securities and Exchange Commission Chairman Chris Cox and Former Treasury Secretary John Snow testifying at the House Oversight and Government Reform Committee \u003cbr/\u003e2. SOUNDBITE: (English) Alan Greenspan, Former Federal Reserve Chairman: \u003cbr/\u003e\"We are in the midst of a once-in-a-century credit tsunami.  Central Banks and governments are being required to take unprecedented measures. Given the financial damage to date, I cannot see how we can avoid a significant rise in layoffs and unemployment.\"\u003cbr/\u003e3. Cutaway of Greenspan, Cox and Snow\u003cbr/\u003e4. SOUNDBITE: (English) Alan Greenspan, Former Federal Reserve Chairman:\u003cbr/\u003e\"To avoid severe retrenchment banks and other financial intermediaries will need the support that only the substitution of sovereign credit for private credit can bestow. The 700 (b) billion troubled assets relief programme is adequate to serve that need.\"\u003cbr/\u003e5. Wide of hearing \u003cbr/\u003e6. SOUNDBITE: (English) Henry Waxman, Committee Chairman, Democrat California:\u003cbr/\u003e\"Over and over again ideology trumped governance. Our regulars became enablers rather than enforcers. Their trust in the wisdom of the markets was infinite. The mantra became government regulation is wrong, the market is infallible.\"\u003cbr/\u003e7. Cutaway of hearing\u003cbr/\u003e8. SOUNDBITE: (English) Alan Greenspan, Former Federal Reserve Chairman:\u003cbr/\u003e\"Those of us who have looked at the self-interest of lending institutions to protect shareholders' equity, myself especially, are in a state of shocked disbelief. Such counter-party surveillance is a central pillar of our financial market state of balance, if it fails as had occurred this year, market stability is undermined.\"\u003cbr/\u003e9. UPSOUND: (English) Exchange between Henry Waxman, Committee Chairman, Democrat California and Alan Greenspan, Former Federal Reserve Chairman:\u003cbr/\u003e(HW)\"You found a flaw in...the reality...\"\u003cbr/\u003e(AG) \"A flaw in the model that I perceived is the critical functioning structure that defines how the world works, so to speak.\"\u003cbr/\u003e(HW) \"In other words, you found that your view of the world, your ideology was not right, it was not working.\"\u003cbr/\u003e(AG) \"Precisely, that is precisely the reason I was shocked because I was going for 40 years or more with very considerable evidence that it was working exceptionally well.\"\u003cbr/\u003e10. Cutaway of hearing\u003cbr/\u003e 11. UPSOUND: (English) Exchange between Henry Waxman, Committee Chairman, Democrat California and Alan Greenspan, Former Federal Reserve Chairman:\u003cbr/\u003e(HW) \"Where do you think you made a mistake?\"\u003cbr/\u003e(AG) \"I made a mistake in presuming that the self-interest of organisations, specifically banks and others were such as that they were best capable of protecting their own shareholders and their equity in their firms.\"\u003cbr/\u003e12. Wide of Sheila Bair, Chairman of the Federal Deposit Insurance Corporation and Neel Kashkari, Interim Assistant Secretary for the US Treasury testifying at Senate Banking committee hearing\u003cbr/\u003e13. Mid of Bair and Kashkari\u003cbr/\u003e14. SOUNDBITE: (English) Sheila Bair, Chairman of the Federal Deposit Insurance Corporation ++INCLUDES CUTAWAY++:\u003cbr/\u003e\"The FDIC is working closely and creatively with Treasury on ways to use the recent financial rescue law to create a clear framework and economic incentives to systematically modifying loans.  The aim is for loan servicers to offer homeowners more affordable and sustainable mortgages.\"\u003cbr/\u003e15. Cutaway of hearing\u003cbr/\u003e16. SOUNDBITE:(English), Neel Kashkari, Interim Assistant Secretary for the US Treasury \u003cbr/\u003e\"Since the announcement of our capital purchase programme we have seen numerous signs of improvements in our markets and in the confidence of our financial institutions. While there have been recent positive developments our markets remain fragile.\"\u003cbr/\u003e17. UPSOUND: (English) Exchange between Chris Dodd, Chairman of Committee, Democrat Connecticut and Neel Kashkari, Interim Assistant Secretary for the US Treasury++INCLUDES CUTAWAYS++:\u003cbr/\u003e(CD) \"Were getting 10,000 foreclosures a day. So, every day we wait another 10,000 families end up in tough shape. So, I appreciate wanting to do it carefully. But there is a sense of urgency that I think needs to be demonstrated here to really get this moving. So,I am not asking you not to be lacking prudence at all, but I hope that there is a deep appreciation of what's happening, far removed from this city alone, across this country and we need to get moving on this to get to the heart of this.\"\u003cbr/\u003e(NK) \"Absolutely chairman we share your sense of urgency.\"\u003cbr/\u003e18. Cutaway of hearing\u003cbr/\u003eFederal regulators told Congress on Thursday that they're working on a plan that could help many distressed homeowners escape foreclosure in a global financial crisis that Federal Reserve Chairman Alan Greenspan warned would get worse before it gets better.\u003cbr/\u003eGreenspan called the banking and housing chaos a \"once-in-a-century credit tsunami\" that led to a breakdown in how the free market system functions.\u003cbr/\u003eAccused of contributing to the meltdown, but denying that it was his fault, Greenspan told a House panel the crisis left him an unabashed free-market advocate in a \"state of shocked disbelief.\"\u003cbr/\u003eCommittee Chairman Henry Waxman, Democrat California, suggested that Greenspan contributed to \"irresponsible lending practices\" by rejecting appeals that the Federal Reserve intervene to regulate a surging subprime mortgage industry.\u003cbr/\u003eThe longtime Federal Reserve chief acknowledged under questioning that he had made a \"mistake\" in believing that banks in operating in their self-interest would be sufficient to protect their shareholders and the equity in their institutions. Greenspan called it \"a flaw in the model that I perceived is the critical functioning structure that defines how the world works.\"\u003cbr/\u003eGreenspan, who stepped down in February 2006 after serving as Federal Reserve chairman for 18 and a half years, was asked to explain his role in the crisis.\u003cbr/\u003eSome critics have blamed him for contributing to the problem by leaving interest rates too low for too long and for failing to regulate risky banking practices.\u003cbr/\u003eHis much-anticipated appearance came as committees in both the House and the Senate held competing hearings on the financial crisis. At one such forum, a senior Treasury official said the Bush administration intends to get a programme to help struggling homeowners revise mortgages up and running soon.\u003cbr/\u003eNeel Kashkari, who is overseeing the government's 700 (b) billion dollar financial rescue effort, told the Senate Banking Committee that the new plan could include setting standards for changing mortgages to make them more affordable and giving loan guarantees to banks that meet them.\u003cbr/\u003eKashkari said some progress was made thanks to the rescue package but the markets were still \"fragile.\"\u003cbr/\u003eSheila Bair, chairman of the Federal Deposit Insurance Corporation, told the same Senate panel that the government needs to do more to help tens of thousands of home borrowers avoid foreclosure, including setting standards for modifying mortgages into more affordable loans and providing loan guarantees to banks and other mortgage services that meet them.\u003cbr/\u003eThe FDIC is working 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