Speaking before the House Financial Services Committee yesterday, Federal Reserve Chairman Ben Bernanke said that the Fed was “well suited” to handle oversight of the nation’s financial firms, according to the Washington Post. “Our involvement in supervision is critical for ensuring that we have the necessary expertise, information and authorities to carry out our essential functions as a central bank of promoting financial stability and making effective monetary policy,” said Bernanke. The Fed chief also expressed support for the idea circulating around Washington that a council of regulators be established to continually monitor risk within the financial system—Obama said earlier this year that such risk evaluation would be conducted by the Fed. “We should seek to marshal the collective expertise and information of all financial supervisors to identify and respond to developments that threaten the stability of the system as a whole,” said Bernanke.
Bernanke Attests to Fed’s Capabilities in Congressional Panel
The Fed chairman says that his agency is well prepared to monitor the nation’s financial structure, but that added oversight would be welcome.