Saturday, January 23, 2010

Growing opposition puts Bernanke approval in question

January 22, 2010
From Dana Bash, CNN Senior Congressional Correspondent

Washington (CNN) -- A second term for Federal Reserve Chairman Ben Bernanke became more uncertain Friday as two leading liberal senators announced that they will vote no, and many other Senate Democrats said they are undecided.
Sens. Russ Feingold, D-Wisconsin, and Barbara Boxer, D-California, issued statements announcing their opposition to Bernanke.
"Under the watch of Ben Bernanke, the Federal Reserve permitted grossly irresponsible financial activities that led to the worst financial crisis since the Great Depression," Feingold said. "Under Chairman Bernanke's watch, predatory mortgage lending flourished, and 'too big to fail' financial giants were permitted to engage in activities that put our nation's economy at risk."
Boxer said she's voting no because Bernanke "played a lead role in crafting the Bush administration's economic policies, which led to the current economic crisis."
"Our next Federal Reserve chairman must represent a clean break from the failed policies of the past," she said.
Democratic concern about Bernanke boiled over in an all-Democrat private lunch Wednesday, the day after the party lost a Massachusetts Senate seat.
A senior Democratic source familiar with meeting said it got "raucous" as several senators stood and voiced opposition to confirming Bernanke for another term.
The party's Senate vote counter, Dick Durbin of Illinois, said that enough Democrats have stated either outright opposition or deep concern to indicate that heavy reliance on GOP votes will be needed to approve Bernanke again.

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