Government intervention from "summary" of Too Big to Fail by Andrew Ross Sorkin
Government intervention was a critical component in the response to the financial crisis of 2008. As the crisis unfolded, government officials were faced with the daunting task of preventing a total collapse of the financial system. The intervention took various forms, including the bailout of major financial institutions, the implementation of stimulus packages, and the enactment of regulatory reforms. The decision to intervene was driven by the belief that the failure of these institutions would have catastrophic consequences for the broader economy. The collapse of Lehman Brothers in September 2008 served as a wake-up call for policymakers, highlighting the interconnected nature of the financial system and the need for coordinated action. The bailout of institutions such as AIG, Citigroup, and Bank of America was met with controversy, w...
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