Bernanke Says About 25 Financial Firms Systemically Important
Federal Reserve Chairman Ben S. Bernanke said about 25 financial companies may be deemed too big to fail and subjected to additional oversight by the central bank under the Obama administration’s proposed regulatory plan.
Twenty-five is a “very rough guess,” and “virtually all of those firms” are already subject to umbrella supervision by the central bank, Bernanke said in response to a question from Representative John Campbell, a California Republican, during a House Financial Services Committee hearing today. He didn’t identify any of the companies.
Bernanke separately said the central bank’s emergency lending programs — such as to the commercial-paper market and to American International Group Inc payday loans. — are declining in size.
“We are currently as you know winding down our 13(3) programs, so I don’t anticipate they will be approaching the previous peaks,” the Fed chief said in response to a question. “I can’t anticipate what kinds of situations might arise,” he also said.