Speaking in an interview with Bloomberg TV, former Federal Reserve Chairman Alan Greenspan said the current problems of Lehman Brothers can be solved without having to resort to a bailout by the Fed.

Greenspan cautioned that the Federal Reserve should not become the "overseer of financial stability."

Greenspan added that the Fannie and Freddie bailout could become "very costly."

By Steve Stecyk and edited by Sarah Sussman
©CEP News Ltd. 2008