Bernanke: Shut down banks if they threaten system - KAIT Jonesboro, AR - Region 8 News, weather, sports

Bernanke: Shut down banks if they threaten system

WASHINGTON (AP) - Federal Reserve Chairman Ben Bernanke is telling a panel investigating the financial crisis that regulators must be ready to shut down the largest institutions if they
threaten to bring down the financial system.

Bernanke says in testimony for a hearing Thursday: "If the crisis has a single lesson, it is that the too-big-to-fail problem must be solved."

He says bailing out these institutions is not a viable solution.

Bernanke tells the Financial Crisis Inquiry Commission that great improvement will come from the new financial overhaul law. It empowers regulators to shut down firms whose collapse pose a
broader threat, and international talks on new capital rules for banks.
      
      (Copyright 2010 by The Associated Press.  All Rights Reserved.)

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