On August 18, 2007, on Fox News Channel's "Cavuto on Business", Stein appeared with other financial experts dismissing worries of a coming credit crunch. Thirteen months later, in the Global Financial Crisis of September 2008, global stock markets crashed, Lehman Brothers went bankrupt, Fannie Mae and Freddie Mac were taken over by the US government, AIG was bailed out by the Federal Reserve, Merrill Lynch was sold to Bank of America Corporation, and Morgan Stanley and Goldman Sachs confirmed that they would become traditional bank holding companies.