Key Bear deal players speak out

Regulators and Wall Street executives defend JPMorgan's acquisition of Bear Stearns - tell lawmakers that deal prevented a collapse that could have damaged the economy.

Sen. Christopher Dodd, D-Conn.

"Given ... the highly unusual and unprecedented actions taken by the Federal Reserve Board of Governors, the Federal Reserve Bank of New York and the support from the Department of Treasury, it is appropriate -- indeed, essential -- that the Banking Committee exercise its oversight and investigatory functions to examine the authority, economic justification, and public policy implications of these extraordinary recent actions by our nation's federal financial regulators."

"With $30 billion on the line, the public deserves nothing less."

Sen. Richard Shelby, R-Ala.

"By expanding the federal safety net to an institution not supported by an explicit federal guarantee, the Fed's actions may create expectations that any major financial institution experiencing difficulties might be eligible for a federal bailout."

"I think we must guard against creating a moral hazard that encourages firm's to take excessive risk based on the expectations that they will reap all the profits while the federal government stands ready to cover any losses if they fail."
NEXT: Financial markets must continue to function