But what did he really say?

Pressed by the Senate committee to justify the latest in an expanding series of bailouts for American International Group, Bernanke said there was no alternative, even though the company had been irresponsible.

“We know that failure of major financial firms in a financial crisis can be disastrous for the economy. We really had no choice,” he told the panel.

The U.S. government threw a fresh $30 billion lifeline to AIG on Monday, as part of a restructured bailout that had earlier swelled to about $150 billion.

Bernanke said AIG’s extensive relationships with banks around the globe presented the risk of “contagion” should the company fail, and said authorities were working hard to try to neutralize dangerous positions.

“We have been doing what we can to break the company up, to get it into a saleable position and to try to defang it,” he said. “If there’s a single episode in this entire 18 months that has made me more angry, I can’t think of one (other than) AIG,” Bernanke added, equating the company’s financial services division with an unregulated hedge fund.

“If there is a single episode in this entire 18 months that has made me more angry, I can’t think of one other than AIG,” Bernanke told lawmakers today. “AIG exploited a huge gap in the regulatory system, there was no oversight of the financial- products division, this was a hedge fund basically that was attached to a large and stable insurance company.”