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The Honolulu Advertiser
Posted on: Wednesday, March 17, 2010

Fed's oversight of banks defended


Associated Press

WASHINGTON Federal Reserve Chairman Ben Bernanke plans to wage a fresh battle against Senate efforts to scale back the Fed's role in supervising the nation's banks.

In testimony prepared for a House hearing today obtained by The Associated Press, Bernanke argued that the Fed factors in information it gets from its role as a regulator into its decisions on interest rates.

"The insights provided by our role in supervising a range of banks, including community banks, significantly increases our effectiveness in making monetary policy and fostering financial stability," Bernanke said in his prepared remarks.