By Sarah Borchersen-Keto, CCH Washington News Bureau, Contributing Author, the CCH Federal Banking Law Reporter, March 3, 2009.
Federal Reserve Board Chairman Ben Bernanke stressed that major U.S. banks are all lending, active and viable, but he acknowledged that the banking system has yet to be stabilized.
At a Senate Budget Committee hearing March 3, Bernanke stated that with respect to banking, “clearly we have not stabilized that situation.” He reiterated that the Fed does not believe nationalization is “either warranted or necessary,” and noted that as the government takes larger stakes in financial institutions there will be very close supervisory oversight to ensure that banks are not taking excessive risk and are taking the necessary steps to restructure themselves.
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