Bernanke Reconfirmed as Fed Chairman

By Sarah Borchersen-Keto, CCH Washington News Bureau, Contributing Author, the CCH Federal Banking Law Reporter, Jan. 28, 2010.

Federal Reserve Board Chairman Ben Bernanke has been confirmed by the Senate for a second four-year term as head of the central bank. The final vote was 70 to 30.

During debate on the Senate floor prior to the vote, Senate Banking, Housing and Urban Affairs Committee Chairman Chris Dodd, D-Conn., argued that changing leadership of the Fed at this time would be “beyond shameful,” and could result in “great damage to our nation at this critical moment.”

Opponents of Bernanke said re-confirmation would mean a continuation of easy-money policies. “Confirmation of Ben Bernanke is a confirmation of policies that brought our economy down,” said Sen. Jim DeMint, R-S.C.

Ranking member of the Senate Banking Committee Sen. Richard Shelby, R-Ala., said he did not believe Bernanke “has executed sound judgment and oversight over the Fed’s monetary policy, lender of last resort, and regulatory and supervisory functions.” Shelby also accused the Fed of knowing more about problems at American International Group, Inc., (AIG) than it has let on so far. “The full story of AIG has yet to be told,” Shelby warned.