Geithner on the Need of Reform
The treasury secretary misdiagnoses the financial crisis and offers the wrong solutions.
Federal Reserve
Consumer Protection With Fed “Bad Joke”
Congressman Barney Frank of Massachusetts, chairman of the House Financial Services Committee, is “very disappointed” with the suggestion that a new consumer protection agency might be placed under supervision of the Federal Reserve. The Senate Banking Committee has been working on a financial regulatory reform bill for several months now. A new agency is to […]
Bernanke Favors Stronger Fed
Appearing before the Senate Banking Committee on Thursday, Ben Bernanke, Chairman of the Federal Reserve, offered an aggressive defense of the central bank’s role in the future supervision of the financial sector. “Stripping the Federal Reserve of supervisory authorities in the light of the recent crisis would be a grave mistake,” he said. The Fed […]
No Bank “Too Big To Fail”
Kevin Warsh of the Federal Reserve warns that by bailing out banks, government has only strengthened moral hazard in the financial sector.
Volcker Wants Smaller Banks
Paul Volcker, former head of the Federal Reserve (1979-1987), currently serves as chairman of the Obama Administration’s newly formed Economic Recovery Advisory Board. Volcker is widely credited with ending the stagflation crisis of the 1970s through aggressive government action and was allegedly fired by President Ronald Reagan when he refused to go along further with […]
Bailing Out Bernanke
In the coming days, the United States Senate will vote on whether or not Ben Bernanke will go on to serve as Chairman of the Federal Reserve for another term. Some legislators are skeptical. Senator Jim Bunning of Kentucky said Tuesday on CNBC that Bernanke’s own staff recommended against bailing out insurer AIG in September […]
Deregulate the Banks!
Regulatory failure instead of a lax monetary policy bears the responsibility for the American housing bubble that produced the financial crisis of 2008, said Federal Reserve chairman Ben Bernanke this Sunday. Bernanke rejected accusations that the Fed contributed to the fostering of the recession and argued that the interest rates set by the bank between […]