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Feingold to oppose Bernanke as doubts continue to grow over re-confirmation

By Tony Romm - 01/22/10 11:22 AM ET

Sen. Russ Feingold (D-Wis.) on Friday morning pledged to vote against Ben Bernanke's nomination to head up the Federal Reserve Board for a second term.

Feingold’s announcement comes amid questions about whether Bernanke has the votes to win confirmation in the Senate. He was easily approved in a 16-7 Senate Banking Committee vote in December.

The chairman has come under criticism from lawmakers in both parties on a range of issues, from the Fed’s efforts to save AIG to the transparency of its books.

Bernanke has taken heat as Wall Street’s profits have soared while unemployment has become stuck in double digits, and the wave of economic populism soaring through Washington in the wake of a stunning Democratic loss in the Massachusetts Senate races comes at a bad time for his confirmation.

Bernanke was named Time magazine’s Person of the Year in December for his handling of the financial crisis. He was nominated to a second four-year term by President Barack Obama in August, and his first term ends at the end of January.

Senate Majority Leader Harry Reid (D-Nev.) has not scheduled a confirmation vote on Bernanke’s nomination, and the Senate is running out of legislative days before the end of January. Reid on Thursday asked Bernanke to provide him with more information on what the Fed is doing to increase lending by banks.

If Bernanke is not confirmed by the end of the month, the Fed’s vice chairman would temporarily take over.

Sens. Bernie Sanders (I-Vt.), Jim Bunning (R-Ky.), Jim DeMint (R-S.C.) and David Vitter (R-La.) have holds on Bernanke's nomination. Most analysts predict Bernanke has enough votes for confirmation, but they expect the vote to be one of the most contentious ever for a Fed chairman.

Feingold blames Bernanke and the Fed for ushering in the economic recession.

“Under the watch of Ben Bernanke, the Federal Reserve permitted grossly irresponsible financial activities that led to the worst financial crisis since the Great Depression,” he said in a statement.

He blames Bernanke for the flourishing of predatory mortgage lending and activities by banks that Feingold said put the country’s economy at risk.

He also said the Fed under Bernanke’s leadership has resisted efforts to review how taxpayer money was used to handle the crisis.

“When the full Senate considers his nomination, I will vote against another term for Chairman Bernanke,” Feingold concluded.

This article was first posted at 9:38 a.m. and updated at 10:22 a.m.

Source:
http://thehill.com/blogs/blog-briefing-room/news/77485-feingold-to-oppose-bernanke-for-second-fed-term

Comments (29)

Bernanke has to go. There is nothing federal about the federal reserve.These people are taking America under, Congress and the White House.Power to "We the people…"BY Navy on 01/22/2010 at 10:22
This is the best statement I've heard about the reasons not to reconfirm Chairman Bernanke… Oregon’s Senator Jeff Merkley, a member of the Senate Committee on Banking, Housing and Urban Affairs, issued the following statement on his intention to vote against Ben Bernanke’s nomination to a second term as Chairman of the Board of Governors of the Federal Reserve System:…“Tomorro w, I will vote against confirming Ben Bernanke as Chairman of the Federal Reserve. The reason, in short, is that as Chairman, Dr. Bernanke failed to recognize or remedy the factors that paved the road to this dark and difficult recession. Following our economic collapse, it is also apparent that he has not changed his overall approach to prioritizing Wall Street over American families… My decision is based on my fundamental belief that our economy cannot recover if we do not put Main Street first…“Our nation is just beginning to emerge from the greatest financial crisis since the Great Depression, and there is no guarantee we will continue on the road to recovery over the long or short terms. Unemployment remains far too high, credit is unavailable to too many businesses, and families are plagued by falling home prices and high foreclosure rates. Even as we move forward with our efforts to get our economy back on track, it is critical we carefully examine what led us to this point…“For too many years, federal regulators turned a blind eye to signs of an impending financial crisis. Tricks and traps proliferated in the credit card and consumer lending industries. Predatory mortgage loans exploded, fueling an unsustainable housing bubble. Regulators lifted rules requiring banks to keep adequate capital, and a laissez-faire approach to securitization, derivatives, and proprietary trading encouraged excessive risk-taking on Wall Street. As a member of the Board of Governors, Chair of the Council of Economic Advisers, and then ultimately as Chairman of the Board of Governors, Dr. Bernanke supported each of these decisions, failing to take the necessary precautionary steps that could have averted or mitigated financial collapse. …“These failures are very relevant to the future. We need economic leaders who understand that the ultimate goal of economic policies and the key to meaningful economic recovery should be financially successful families, not oversized Wall Street profits. …“Indeed, it should be recognized that although Wall Street prospered in the short-term from reduced leverage requirements, securitization of faulty mortgages, and the explosion of derivatives, Americans did not. The expansion that occurred from 2002 to 2007 became the first economic expansion in which working families were worse off at the end than at the beginning. This is not a path that we can afford to travel again.”See more about the reconfirmation of Chairman Bernanke at Riski: http://freerisk.org/wiki/index.php/Bernanke_reconfirmationBY Cate Long on 01/22/2010 at 10:49
BHO Kool-Aid Drinkers will never admit they are taking this Country in the Wrong Direction.The "We the People" Juggernaught is going to show the World in the Historic 2010 Mid-Term Elections this is a Center-Right Country!!! "The Boston Tea Party II" has started the Second American Revolution! The past few elections VA/NJ Governorships and now with Senator-Elect Brown were a wake-up calls to All Politicians. Those who Fail to do the Will of the American People better start working on their Resumes! I know they all will become Lobbiest!!!BY vote libsout 2010/12 on 01/22/2010 at 10:54
Ben Bernanke has led the Federal Reserve through the most difficult financial circumstances since World War II. If Congress had instead done what Ron Paul advised, it could have very well ended up with a collapse of the banking system. The fact that large banks are returning to profitability is a testament to the success Bernanke has had as chairman. He is also a brilliant economist, perhaps one of the best our country has produced in recent years.BY Confirm Bernanke on 01/22/2010 at 11:36
Chairman Ben is one of the most intelligent persons in Washington - he has guided the Fed through one of the worst periods since the Great Depression. The markets will react very badly if he is not confirmed - this is no time for politics. We need a strong hand at the Fed, and Ben is it.BY Richard Moriarty on 01/22/2010 at 11:44
Not only is Bernanke a political hack he is as big of a part of the problem as Bawney Fwank and Chris Dodd. If the Fed will not open their books for an audit that means they have something to hide. The Fed is NOT even a part of the government, it is a privately owned organization controlled by the world money players. Just for your information Bernanke is a member of the Bildaberg Group, along with the Rockafellers, Goerge Soros, etc.. All of the people who are poised to take over America by controlling their puppet, the Marxist himself Barack Hussien Obama. Like Obama Bernanke is a part of the problem and NOT the solution!, Wake up folks Goolgle The Bildaberg Group and prepare to cry for you country!BY obamaisamarxist on 01/22/2010 at 11:52
Only the uneducated or anyone with absolutely nothing to lose now or in the future would want Bernanke out of his position right now. He is the smartest guy in that wing of Government, and has a very deep understanding of where we are. You want to see trouble? Let him leave. And when you go from "middle cl[***]" to destitute, don't come crying to those of us that have prospered and given back to the middle cl[***] our whole lives…You just cant see the tree in front of your face.BY Shawn on 01/22/2010 at 12:18
If Bernake and the FED walk on water, why are they so scared of an audit? Could it be the meetings behind closed doors like with Paulson and the Goldman Sachs CEO to bail out AIG the day after they let Lehman Brothers go under? With the AIG unlimited taxpayer funded bail out rewarding all the Wall St. idiots (Goldman Sachs raked in 20 billion at 100% value on toxic waste bets) and overseas banks that destroyed the economy by thinking TBTF meant they could leverage bets 100 to 1. Bernake yammered incessantly that all was well with modern ponzi scheme financing, then when it hit the fan he bowed down to his banking masters and started forking over the taxpayers cash. If the FED was ever audited it would make the Geitner situation with AIG look minor. We need to take back the monetary control of our nation from these corrupt oligarchs and put it back in the Treasury department where it belongs.BY GLL on 01/22/2010 at 12:28
Everything obama supports or people nominated or nominates until he starts listening to the people MUST BE opposed. ACORN doles are not running this capitalist Christian Nation and we don't want the marxist incompendents and LIARS to. It does not matter whether it is man made climate change false data used by gore and obama. obama refusal to deny that he is a habitual LIAR and avoids but demand his childish ways be followed when they are garbage. If he doesn't want to listen them get the L out as you are a LAME DUCK obama with you false propaganda..BY Jake2 on 01/22/2010 at 12:49
These Dems are so phony! My how their tune changes when their political seats are threatened. Never forget!BY RPM on 01/22/2010 at 12:56

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