Federal Reserve Chief Ben Bernanke Pushes Congress For New Regulation

I assume Ben Bernanke particularly wants more regulatory power in the hands of the Federal Reserve. Regulators love their power!

Ben Bernanke has told Congress it needs to bring new regulation to prevent another credit meltdown.

Bernanke by ideology is committed to the free-market.

He's received widespread praise for his handling of this credit meltdown.

I have a liberal friend who likes Bernanke's ideological flexibility. He praises him for having "a superior mind. He's not an ideologue."

This same friend had a great question for me once — would I like to have George Bush as my doctor?

No, I would not like to have George Bush as my doctor. I'd want someone smarter.

The Washington Post reports:

WASHINGTON — Federal Reserve Chairman Ben Bernanke prodded Congress Friday to enact legislation overhauling the nation's financial regulatory system to prevent a repeat of the banking and credit debacles that had thrust the country into crisis.

"With the financial turmoil abating, now is the time for policymakers to take action to reduce the probability and severity of any future crises," Bernanke said in remarks to a Fed conference in Chatham, Mass.

For its part, the Fed has been taking steps to strengthen oversight of banks, sharpen consumer protections and on Thursday unveiled a sweeping proposal to police banks' pay policies to make sure they don't encourage top executives and other employees to take reckless gambles.