The Fed Chair called for:
• Coordinated action between Congress, Treasury and the Federal Reserve
• Undertaking additional steps to rescue “Financial firms whose failure would pose a systemic risk”
• Supported “close regulatory scrutiny” of firms that engage in “risk-taking”
•Creating a “regulatory procedure for resolving a large, failing nonbank institution”
•Continued bolstering of credit for both consumers and businesses.
Hard to find much to argue with in that list. The bigger issue is whats missing (see this morning’s commentary for a complete discussion):
Sources: The Crisis and the Policy Response Chairman Ben S. Bernanke Stamp Lecture, London School of Economics, January 13, 2009 http://www.federalreserve.gov/newsevents/speech/bernanke20090113a.htm
Bernanke: More bank bailouts needed Fed chairman endorses economic stimulus, but also says more help for banks is needed to fix the economy Chris Isidore CNNMoney.com, January 13, 2009: 10:52 AM ET http://money.cnn.com/2009/01/13/news/economy/bernanke_speech/?postversion=2009011310
Bernanke Urges ‘Strong Measures’ to Stabilize Banks Craig Torres Bloomberg, Jan. 13 2009 http://www.bloomberg.com/apps/news?pid=20601087&sid=at6cYfv8wFJw&
Bernanke Says Stimulus Should Be Paired With Other Measures MAYA JACKSON RANDALL WSJ, JANUARY 13, 2009, 10:07 A.M. ET http://online.wsj.com/article/SB123185225001377063.html
Originally published at The Big Picture blog and reproduced here with the author’s permission.