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Bernanke Says Fed Has Learned Lessons From The Recession

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http://www.nytimes.com/2011/02/18/business/economy/18regulate.html?_r=1&ref=business

The chairman of the Federal Reserve said Thursday that the financial system is better off than it was two years ago, and that the central bank has learned the lessons of not providing rigorous enough oversight of banks leading up to the 2008 financial crisis.

Ben S. Bernanke, the Fed chairman, told members of the Senate Banking Committee that “it will be some time before we implement all of the rules of Dodd-Frank,” but that regulators have begun to tighten risk standards and “certainly we have all learned lessons from the crisis.”

When Senator Richard C. Shelby of Alabama, the ranking Republican on the committee, asked what those lessons were, Mr. Bernanke replied, “The importance of being aggressive and not willing to allow banks too much leeway, particularly when they are inadequate in areas like risk management.”

Mr. Bernanke’s comments came as he and the other chief rule writers from the major financial regulatory agencies sparred with members of the committee over whether regulations being written to comply with the Dodd-Frank Act will cost businesses and consumers too much and whether they will adequately protect against another financial meltdown.

The chairmen of the Securities and Exchange Commission, the Federal Deposit Insurance Corporation, the Commodity Futures Trading Commission and the acting comptroller of the currency testified on how their respective agencies were working to write and implement the hundreds of new rules and regulations that were required by the Dodd-Frank Act, which was signed into law in July.

Several senators focused on the law’s requirement that banking regulators lower the cost of fees that can be charged for the use of debit cards, a feature known as interchange fees.

The Federal Reserve has proposed rules that would exempt smaller banks from having to lower their fees, but Mr. Bernanke acknowledged that a two-tiered system might not work.

“It’s possible that merchants will reject more expensive cards from smaller institutions,” Mr. Bernanke said, meaning that “there is some risk that the exemption will not be effective.”

I think he means if he can throw enough free money at the banks that have taken big risks they can still remain profitable and in business.

As for this debit card fees comments, clearly the two tier system is there to ensure the small banks get put out of business by the big banks. Why have an account with a tiny bank when the big boys can create an effective monopoly?

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http://www.nytimes.com/2011/02/18/business/economy/18regulate.html?_r=1&ref=business

I think he means if he can throw enough free money at the banks that have taken big risks they can still remain profitable and in business.

As for this debit card fees comments, clearly the two tier system is there to ensure the small banks get put out of business by the big banks. Why have an account with a tiny bank when the big boys can create an effective monopoly?

The little banks got took out the back to the woodshed - regualtory capture, montary capture and banking system capture by the big banks.

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  • 317 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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