Bernanke Nom Builds Steam

The 16-7 vote reveals unease about Fed chairman

(NEWSER) - The Senate banking panel endorsed Ben Bernanke’s nomination for a second term atop the Fed, but it was hardly a slam dunk for Time’s new person of the year. The 16-7 vote was a far cry from his original, near-unanimous appointment, with only four of the committee’s 10 Republicans voting for him. Jim Bunning spent 20 minutes berating him, noting that past Time honorees have included Richard Nixon, Joseph Stalin, and Adolf Hitler. More»

For first time in nine tries, amendment goes to House floor

(NEWSER) - For Ron Paul, it's got to be sweet. The financial regulatory reform bill that opened for debate in the House today contains Paul's amendment to subject the Fed to congressional audit—his ninth try in 11 years in office to get a Fed-curbing proposal into play. Until now, none of them has even been brought up for committee debate; this one's gone to the floor with the support of more than 300 of the lower chamber’s 435 members More»

Senators full of criticisms for the Fed

(NEWSER) - Ben Bernanke was forced to play defense in his confirmation hearing today, as the Senate Banking Committee rained down criticism on the Fed and its chairman. Some, like Chris Dodd, signaled approval of Bernanke’s leadership but not of the Fed’s bid for increased regulatory control. “Why should I give an institution that failed that type of exclusive authority?” demanded Dodd. Republicans like Richard Shelby were even less kind, attacking Bernanke’s actions directly. More»

Geithner, Bernanke, others missed signs of the pending collapse

(NEWSER) - The Fed released transcripts from meetings in 2006 today that reveal just how badly its top officials blew it on the looming housing crisis, the New York Times reports. The industry was showing signs of distress, but the Fed's attitude boiled down to, eh, no big deal. The officials clearly did not grasp how "deeply intertwined the housing sector and financial markets had become," writes Binyamin Appelbaum. They would get the picture soon enough. Some highlights:

• Timothy Geithner (then with the New York Fed): “We think the fundamentals of the expansion going forward still look good," he said in December 2006. A few months earlier: “We just don’t see troubling signs yet of collateral damage, and we are not expecting much."

But Treasury Secretary isn't worried about reconfirmation

(NEWSER) - Timothy Geithner is behind Ben Bernanke, and thinks the markets are, too. When Politico asked how the markets would react if the Senate didn’t confirm the Fed chairman for a second term, Geithner replied, “I think the markets would view that as a very troubling thing to the economy,” before adding, “but I think they should be confident, because we are very confident he will be reconfirmed.” More»