Fed Working on Regulatory Failures, Says Chairman
Chairman Ben Bernanke says that the Federal Reserve is working to address the regulatory failures that were exposed by the 2008 financial crisis. But he cautions that as the financial system evolves, new risks will emerge.
Bernanke says that the Fed has overhauled its regulatory effort to focus much more on the stability of the entire financial system.
It seeks to avoid mistakes of the past crisis, such as big non-bank institutions escaping the supervision.
But the Fed chief cautions that it is not enough for regulators to just address problems exposed by the crisis. He said that the financial system is constantly evolving and unanticipated future risks to stability will develop over time.
Bernanke’s comments were prepared for delivery at a conference late Monday in Georgia on financial regulation.
(Copyright 2012 by The Associated Press. All Rights Reserved.)