Bernanke passes Committee 16-7

From MarketWatch Dec. 17, 2009, 11:50 a.m. EST Senate panel approves Bernanke on 16-7 vote Size of opposition signals rough waters ahead By Greg Robb, MarketWatch WASHINGTON (MarketWatch) -- The Senate Banking Committee on Thursday approved the nomination of Federal Reserve Board chairman Ben Bernanke to a second four-year term by an unusually close margin of 16-7. The debate prior to the vote was contentious. Several senators complained that the Fed had not provided information they requested prior to the vote. Many questioned Bernanke's actions prior to the financial crisis and during the tense days in the fall of 2008 when U.S. investment banking sector essentially disappeared overnight. On the Economy, Stability or Growth a Tough Choice Europe has long advocated for a stable economy; the U.S. has preferred a dynamic one. WSJ's David Wessel says those mindsets are clashing once again during the current crisis. Analysts expect a close vote on the Senate floor after the holiday recess. Bernanke failed to woo the support of Sen. Richard Shelby, R-Ala. and the ranking minority member of the Banking Committee. "I strongly disapprove of some of the past deeds of the Federal Reserve while Ben Bernanke was a member and a chairman, and I lack confidence in what little plans for the future he has articulated," Shelby said in a lengthy statement. Shelby's opposition means the Fed won't be able to count on Republican support to fend off sweeping changes to the Fed's regulatory powers put forward by Sen. Christopher Dodd, D.-Conn., and the chairman of the panel. Dodd has said that the Fed's oversight of the biggest banks prior to the financial crisis was an "abysmal failure." Dodd has proposed stripping the oversight power from the Fed and giving it to a new single banking regulator to oversee the financial sector. Supporters of Bernanke said that opponents were just engaging in typical Monday-morning-quarterbacking after a crisis abates. "He's the guy I would hire" to get the U.S. out of trouble, said Sen. Judd Gregg, R.-N.H.