President Bush Backs Fed’s Decision on AIG
President George W. Bush in a statement today defended recent U.S. government's decisions in helping financial markets cope with the "serious challenges" stemming from the long-running credit crisis.
"The American people can be sure we will continue to act to strengthen and stabilize our financial markets and improve investor confidence," Mr. Bush said in brief remarks on the economy.
President Bush used his comments to repeat his concern for the economy and back the government's recent takeover of Fannie Mae and Freddie Mac and its $85 billion lifeline to American International Group Inc. (AIG).
"These actions are necessary and they're important, and the markets are adjusting to them," Mr. Bush said, including overnight moves by the Securities and Exchange Commission and Federal Reserve. "Our financial markets continue to deal with serious challenges. As our recent actions demonstrate, my administration is focused on meeting these challenges."
Mr. Bush, defending the AIG bailout, said a failure of the firm "could have caused a severe disruption in our financial market and threaten other sectors of the economy."
The president's remarks, which lasted two minutes, were his first on the economy since Monday, when he said the government was working to minimize the damage inflicted by the financial crisis.
"The American people are concerned about the situation in our financial markets and our economy and I share their concerns," Mr. Bush said.
The president had canceled an out-of-town trip to monitor the financial situation.
Published on September 18, 2008
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