Posted 7 years ago on March 23, 2013, 12:13 p.m. EST by BradB
from Washington, DC
This content is user submitted and not an official statement
Lest there was any doubt, Federal Reserve Chairman Ben Bernanke made it loud and clear on Wednesday: The problem of too-big-to-fail banks is still a major threat to the economy.
"Too Big To Fail is not solved and gone," he said during a press conference. "It’s still here."
Bernanke's declaration, made during a press conference on Wednesday, followed what seemed to be a disagreement last month between him and Sen. Elizabeth Warren (D-Mass.) about whether policy makers had solved the problem of U.S. banks being so big that their failure would threaten the economy.
During that conversation, Bernanke seemed to imply that the problem had been solved, suggesting that the Dodd-Frank financial-reform act had given policy makers the tools to wind down a giant bank without hurting the economy -- although his conviction faded as the argument went on. On Wednesday, he wanted it to be known that fully sided with Warren.
"I agree with Elizabeth Warren 100 percent that it’s a real problem," he said.
He also sided with Warren against those banks and others who suggest that having gigantic banks is not really a problem at all.