Washington -- U.S. Federal Reserve Chairman Ben Bernanke stressed regulatory improvements in comments before a House finance committee Thursday.
Speaking before the House Committee on Financial Services, Bernanke said the Fed and the Securities and Exchange Commission are working together to provide oversight to primary dealers, incorporated into the system after the "near collapse" of investment bank Bear Stearns in March.
The Fed and SEC are working "within the existing statutory framework with the objective of addressing the near-term situation," Bernanke said. But, for long-term oversight, "legislation may be needed to provide a more robust framework for prudential supervision of investment banks and other large securities dealers," he said.
Bernanke also said the U.S. Treasury Department should take "a leading role" in exploring "new tools … for ensuring orderly liquidation of a systemically important securities firm that is on the verge of bankruptcy."
Copyright 2008 by United Press International.
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