US to mull Bernanke nomination on Dec 3
WASHINGTON, USA (AP) – Federal Reserve Chairman Ben Bernanke’s nomination to a second term will be the subject of a Senate Banking Committee hearing next month, the panel’s chairman said Friday.
President Barack Obama nominated Bernanke to another four-year term in August. The nomination requires Senate approval.
Bernanke has drawn both praise and criticism for his creative thinking and unconventional actions to pull the country back from economic ruin last year.
His decision to bail out insurance giant American International Group Inc was especially controversial. Many fear that and other rescues will encourage companies to make reckless gambles because the government will clean up their messes. AIG has received a bailout valued at more than $180 billion, putting taxpayers at risk.
Bernanke’s activist response to the financial crisis has opened the Fed to political fallout. Some lawmakers think the central bank overstepped its bounds – by helping some companies and not others – and by creating some emergency lending programmes for banks to tap.
Christopher Dodd, chairman of the Senate Banking Committee, said Bernanke’s nomination hearing will occur on December 3.
Dodd, who has been critical of the Fed’s failures to spot problems that contributed to the financial crisis, has proposed legislation stripping the central bank of its long-standing authority to regulate banks.
