Timeline of Key Moments During Bernanke's Tenure

Federal Reserve Chairman Ben Bernanke has been praised for averting another Great Depression and accused of acting too late to prevent the financial crisis. But most agree that many of his bold actions helped stabilize financial markets and prevent the crisis from deepening.

Bernanke initially was a supporter of his predecessor, Alan Greenspan, who believed in the ability of markets to right themselves, and pledged to continue his policies. Yet as the crisis erupted, Bernanke was forced to reconsider this view. Facing the prospect of financial collapse, he crafted radical government interventions in the private markets to prop up a global financial system.

A look at some key points in Bernanke's first term as Fed chairman:

—Oct. 24, 2005: President George W. Bush nominates Bernanke to lead the Fed. The nomination is widely praised, though some economists fear he lacks hands-on business, banking or policy-making experience. Observers recognize that bloated budget and trade deficits and an unsustainable housing surge will challenge the next Fed chairman.

—Feb. 1, 2006: Bernanke is sworn in as 14th Fed chairman after a speedy Senate confirmation.

—March 6, 2007: As delinquencies in the subprime mortgage sector rise, Bernanke defends high-risk lending by Fannie Mae and Freddie Mac. "The credit risks associated with an affordable-housing portfolio need not be any greater than mortgage portfolios generally," he says.

—May 17, 2007: After the April bankruptcy of New Century Financial Corp. sparks fears about a wave of subprime mortgage defaults, Bernanke again offers a reassuring appraisal. "We believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system," he says.

—Aug. 31, 2007: As mortgage companies fail, credit markets freeze up and the stock market lurches, Bernanke acknowledges the subprime crisis has "potential consequences for the performance of the overall economy." The Fed already has pumped $100 billion into the financial system, but Bernanke says it won't bail out banks affected by the crisis. It's not the Fed's responsibility "to protect lenders and investors from the consequences of their decisions," he says. In the ensuing days, Sen. Barack Obama, D-Ill., calls for more aggressive action to stabilize the housing sector.