May 6th, 2010
11:40 AM ET
5 years ago

Bernanke: Fed's not waiting for Congress on reform

Federal Reserve Chairman Ben Bernanke said Thursday the central bank is working to increase oversight of financial institutions.
Federal Reserve Chairman Ben Bernanke said Thursday the central bank is working to increase oversight of financial institutions.

New York (CNNMoney.com) - Federal Reserve Chairman Ben Bernanke said Thursday the central bank is working to increase oversight of financial institutions, even as Congress debates a package of Wall Street reforms.

In a speech at the Federal Reserve Bank of Chicago, Bernanke said he "supports" ongoing efforts in Congress to reform financial regulation. But he added that the Fed is already taking steps to tighten up oversight of the banking system.

"While these legislative steps are necessary, we are not waiting to implement improvements that can be accomplished within our existing authority," he said.

"Now we are working with banks to ensure they improve their risk-measurement and risk management as well as strengthen their liquidity and capital levels while also providing the credit that households and businesses need," the Fed chairman added.

Bernanke said any reform package should give regulators the power to break up financial institutions that could threaten the economy if they fail.

Full story on CNNMoney.com


Filed under: Ben Bernanke • Federal Reserve • Financial Reform • Wall Street
soundoff (13 Responses)
  1. Dave

    THEN ALLOW THE FEDERAL RESERVE TO BE AUDITED, SIR!!!!!
    It is not federal nor a reserve. It is a privately held company that is a golden goose for the shareholders. Exactly why they don't want to be audited. Also because Americans would be outraged if they knew what they were doing, especially with the money from TARP sent overseas.

    May 6, 2010 11:50 am at 11:50 am |
  2. LIP

    Had they ignored congress back in 2001 when Bush asked congress to do something then, we wouldn't be in this mess now. Encourage the feds to ignore the little game the dems are playing with Wall Street and make all those democrats that received financial help from Wall Street during the last few elections, give it all back.

    May 6, 2010 11:53 am at 11:53 am |
  3. Fair is Fair

    Hey Chrome Dome,

    Here's a newsflash. The Federal Reserve is not a part of the federal government. You have no right to what you intend. In fact, you are the cause of ALL of the financial problems this country has had since your illegal inception in 1913.

    Can you say "fractional reserve"? Look it up.

    May 6, 2010 12:01 pm at 12:01 pm |
  4. Claudia, Houston, Tx

    The only thing Bush asked Congress for was for more money for his war and he got it. It was Bush that ignored the financial market failure and kept it hidden under his war lies until he left office. Americans aren't stupid and we will never forget.

    May 6, 2010 12:15 pm at 12:15 pm |
  5. Larry

    What happened to checks and balances in this country?

    Who is going to audit the Fed?

    May 6, 2010 12:15 pm at 12:15 pm |
  6. Randolph Carter, I'm no expert but...

    Dave May 6th, 2010 11:50 am ET
    "THEN ALLOW THE FEDERAL RESERVE TO BE AUDITED, SIR!!!!!
    It is not federal nor a reserve. It is a privately held company that is a golden goose for the shareholders. Exactly why they don't want to be audited. Also because Americans would be outraged if they knew what they were doing, especially with the money from TARP sent overseas."

    Are you sure you want to go there? Do you really want to find out that our entire capitalist system is essentially built on imaginary wealth? Sorry, Sparky but if the illusion were to be laid bare, the consequences to the world economy would be catastrophic to say the least. Have a nice day!

    May 6, 2010 12:17 pm at 12:17 pm |
  7. Victim of GOP Taliban

    Nothing will be "fixed" unless the corrupt real estate lending business is cleaned-up. Real estate and real estate lending is a big scam – run by crooks and frauds.

    May 6, 2010 12:21 pm at 12:21 pm |
  8. El Gordo

    According to the board of governors of the Federal Reserve, "It is not 'owned' by anyone and is 'not a private, profit-making institution'. Instead, it is an independent entity within the government, having both public purposes and private aspects."[15] In particular, the US Government does not own shares in the Federal Reserve System nor its component banks, but does take all of its profits after salaries are paid to employees, a dividend is paid to member banks that is 6% of their capital investment, and surplus is put in a capital account. The government also exercises some control by appointing its highest-level employees and setting their salaries. The Federal Reserve made a record profit of 45 billion in 2009, nearly all of which was transferred to the US Treasury.[16]

    May 6, 2010 12:27 pm at 12:27 pm |
  9. Randolph Carter, I'm no expert but...

    Victim of GOP Taliban May 6th, 2010 12:21 pm ET
    "Nothing will be "fixed" unless the corrupt real estate lending business is cleaned-up. Real estate and real estate lending is a big scam – run by crooks and frauds."

    Actually, nothing will get fixed until we get;
    Publicly funded elections
    Term limits on all elected officials
    A permanent ban on all and I mean ALL lobbying.

    Have a nice day!

    May 6, 2010 12:28 pm at 12:28 pm |
  10. Larry

    @Randolph Carter:

    This financial crisis still isn't over. Look what's happening in Greece, and the investigation by the SEC into Goldman Sachs has been turned over to the Justice Department for criminal investigation.

    We're going to find out that our financial system has been run by crooks and thieves, but it has to come out sooner or later.

    May 6, 2010 12:32 pm at 12:32 pm |
  11. FRANK - LAS VEGAS

    Maybe the Fed should be allowed to by-pass the GOP game playing, that way we'll get something done.

    Vote NO in NOvemeber to the party of NO!

    May 6, 2010 12:32 pm at 12:32 pm |
  12. Chessnutz of Liverpool NY

    Pass the Audit the Fed Bill!

    May 6, 2010 01:11 pm at 1:11 pm |
  13. Anonymous

    Audit the FED

    May 6, 2010 01:12 pm at 1:12 pm |