|
 |
 |
|
Bernanke wins Banking Committee approval for second term, 16-7
The Senate Banking Committee voted Thursday to confirm Federal Reserve Chairman Ben Bernanke to a second term despite growing dissatisfaction over his handling of last year’s economic meltdown.
Time magazine’s “Person of the Year” won approval in a 16-7 vote — a striking departure from the unanimous support Bernanke received four years ago.
The panel’s other 12 Democrats voted to confirm Bernanke, as did four Republicans: Sens. Bob Corker (Tenn.), Mike Johanns (Neb.), Judd Gregg (N.H.) and Bob Bennett (Utah).
Bernanke is expected to win confirmation from the full Senate, though members on the left and right have voiced objections to his leadership. His term expires at the end of January, but it is unclear when the Senate will take action.
“This is not just any nomination; this is a major financial event,” Sen. Chris Dodd (D-Conn.), the panel’s chairman, told reporters after his committee’s vote. He said Bernanke must be confirmed before the end of next month.
“This is not like any other regulator. … So my hope is that we’ll be able to move it along,” Dodd added.
At least five senators — Jim Bunning (R-Ky.), Jim DeMint (R-S.C.), David Vitter (R-La.), Jon Kyl (R-Ariz.) and Bernie Sanders (I-Vt.) — have openly declared holds on Bernanke, threatening to block Senate action on his confirmation.
Those who argue Bernanke should not be reconfirmed say he mishandled the financial crisis and criticize the unprecedented interventions the Federal Reserve took over the past year to support the financial system and broader economy. Bernanke, a Republican first appointed by former President George W. Bush, was a key architect of the $700 billion bailout of the financial system.
The bailout has grown increasingly unpopular in the last year as big banks have rebounded from the crisis while small businesses and workers have suffered.
The Fed also has come under fire from Congress while pumping trillions into the economy and offering help to specific financial institutions.
Legislation sponsored by Rep. Ron Paul (R-Texas) to require audits of the Federal Reserve’s monetary policy gained steam this year and drew sponsorship from more than half the House. Paul’s legislation was included in a financial regulatory overhaul bill approved by the House last week.
The Senate is considering legislation that would take away some of the Fed’s authority over banks. While the House bill would make the Fed the “systemic risk regulator” of the financial system, the Senate would give those responsibilities to an inter-agency board.
Dodd, who faces a tough reelection fight next year in part because of the perception that he has been too close to the financial industry, has differed with Bernanke on policy. In a statement on Thursday, Dodd said the Fed had failed in its oversight and consumer-protection responsibilities by allowing companies to engage in dangerous risk-taking, with the damage falling on ordinary Americans.
“However, I believe that Chairman Bernanke must also receive credit for the critical role he played in the events of last fall,” Dodd continued. “And while the judgment of many is still out on that, I happen to believe that had he and others not acted at a time of critical importance to our country, we would be looking at a far more dire situation than is the case.”
Sen. Judd Gregg (R-N.H.) also defended Bernanke’s first term before this morning’s vote.
“The credibility issue is with those who question that we avoided catastrophic economic events as a result in large part of Bernanke’s actions,” said Gregg. “How do people who oppose him explain the fact we would probably be in a depression now if it hadn’t been for him pushing the envelope?”
Most Viewed RSS Feed »
