5. Government intervention during banking failures

Which of the following occurred during the credit crisis? Check all that apply.

The Supreme Court ruled that the Federal Reserve had exceeded its authority by assisting Bear Stearns because the financial institution was a securities firm and not a commercial bank.

The Federal Reserve and Treasury had a laissez faire approach to the credit crisis.

The Federal Reserve rescued Lehman Brothers, a securities firm.

The Federal Reserve encouraged financial institutions to acquire Lehman Brothers but was unsuccessful because the financial institutions were skeptical of Lehman Brothers financial standing.