Mar. 17, 2010 (United Press International) -- U.S. Federal Reserve Chairman Ben Bernanke told House Financial Services Committee members the financial system requires "consolidated supervision."
With the Senate banking committee poised to debate a 1,336-page regulatory reform bill, Bernanke said the recent recession "made it clear that all financial institutions that are so large and interconnected that their failure could threaten the stability of the financial system … must be subject to strong, consolidated supervision."
The Fed, Bernanke quickly added, was just the agency for the job having "developed such expertise in its long experience supervising banks of all sizes, including community banks and regional banks."
Bernanke said supervision of banks and addressing monetary policy are interconnected. "Participation in the oversight of banks … significantly improves its ability to carry out its central banking functions," Bernanke said.
In pitching for the central bank, Bernanke did not mince words. "No other agency can, or is likely to be able to, replicate the breadth and depth of relevant expertise that the Federal Reserve brings to the supervision of large, complex banking organizations," he said.
