My repy from Sherrod Brown concerning Bernanke confirmation - Friday, December 18, 2009

I recently wrote Sherrod Brown and George Voinovich about confirming Ben Bernanke to another term as Chairman of the Federal Reserve Board. I was nice, but told them, if in fact they voted for him, they lose my vote. I did get a reply from Mr. Brown, nothing from Mr. Voinovich as of yet. In the past when I wrote Mr. Voinavich, I never recieved a reply, so I don't really expect one. I do thank Mr. Brown for at least replying. Below is his reply. Dear Mr. XXXXXXXXX: Thank you for sharing your thoughts about the nomination of Ben Bernanke to serve a second term as chairman of the Federal Reserve. I agree with you that a lack of oversight contributed to the financial and economic problems that have confronted the nation, and I have addressed those concerns to Chairman Bernanke in public and private. Regulators, including the Federal Reserve, did not do enough to promote the strong supervision of financial firms and protect the public from economic turmoil. As a member of the Senate Banking Committee, I am working to ensure that sufficient safeguards are in place to ensure that our financial system remains stable over time. I have emphasized to Chairman Bernanke that a culture change at the Federal Reserve, as well as an independent risk regulator and tough accountability measures, are necessary to prevent another economic crisis from gripping our country. You can be sure I will continue to work with the committee and with Chairman Bernanke to press for these changes. That being said, I believe the bold steps that Chairman Bernanke and Treasury Secretary Paulson took to prevent economic meltdown in the fall of 2008 forestalled an even worse financial crisis. He has demonstrated a willingness to put pragmatism before ideology and act decisively to protect the interests of the United States, and I recently voted in the Senate Banking Committee to approve the Chairman’s nomination to serve a second term. Please be assured that I will keep your thoughts in mind as Chairman Bernanke’s nomination moves to the full Senate for consideration. Thank you again for getting in touch with me. Sincerely, Sherrod Brown United States Senator ***** All I have to say Mr. Brown is quite simple. You have lost my vote, and Ben Bernanke is a damn liar, which he has proven on multiple occasions, so why should I believe him now. Did he have a come to Jesus moment? I think not, unless of course, Jesus is a Wall Street banker. Simple enough?

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.

SEC charges BofA over false statements in Merrill buy - 1:00 PM

UPDATE - 1:52 - More from MarketWatch BofA pays $33 million SEC penalty for Merrill deal's bonuses The charges are in relation to the institution's controversial acquisition of Merrill WASHINGTON (MarketWatch) -- Bank of America Corp. agreed to a $33 million settlement with the Securities and Exchange Commission, which said the mega-bank made "materially false and misleading statements" to shareholders about billions in bonuses paid to Merrill Lynch executives before completing its controversial acquisition of the brokerage firm. "The SEC alleges that in proxy materials soliciting the votes of shareholders on the proposed acquisition of Merrill, Bank of America stated that Merrill had agreed that it would not pay year-end performance bonuses or other discretionary compensation to its executives prior to the closing of the merger without Bank of America's consent," the SEC wrote. "In fact, Bank of America had already contractually authorized Merrill to pay up to $5.8 billion in discretionary bonuses to Merrill executives for 2008." According to the SEC's complaint, Bank of America /quotes/comstock/13*!bac/quotes/nls/bac (BAC 15.31, +0.52, +3.52%) said in a November, 2008, joint proxy statement for the acquisition that Merrill said it would not pay year-end bonuses to top executives before closing without Bank of America's consent. "The disclosures in the proxy statement were rendered materially false and misleading by the existence of the prior undisclosed agreement allowing Merrill to pay billions of dollars in bonuses for 2008," the SEC said. The SEC charges come after Federal Reserve Chairman Ben Bernanke, Bank of America Chief Executive Ken Lewis and former Treasury Secretary Henry Paulson have received a barrage of criticism from lawmakers over the past couple months. Paulson and Bernanke have recently responded to a wide-variety of concerns expressed by lawmakers, ranging from criticism that they ordered Bank of America Chief Executive Ken Lewis to go through with the Merrill Lynch acquisition against his will, to questions why they didn't oust the bank's management and board upon providing government assistance.

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SEC charges BofA over false statements in Merrill buy - Reuters (Reuters) - Bank of America Corp was charged by the SEC on Monday with making "materially false and misleading statements" in the Merrill Lynch acquisition, court documents said. * SEC says Bank of America said Merrill "had agreed not to pay year-end performance bonuses" before the closing of the merger but that no such agreement had been reached- court documents * SEC says Bank of America had agreed to pay up to $5.8 billion in Merrill bonuses, contrary to statements in merger agreement- court documents * SEC says bank of America falsely claimed that Merrill had agreed not to pay performance bonuses before closing of merger- court documents * SEC seeks injunction barring Bank of America executives from breaking securities laws and seeks fine

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What about Bernanke and Paulson?