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| Version 0 | Version 1 |
|---|---|
| Bernanke calls for new regulation | Bernanke calls for new regulation |
| (20 minutes later) | |
| The heads of the Federal Reserve and the US Treasury have called for new regulatory powers to shield the economy should a Wall Street firm collapse. | The heads of the Federal Reserve and the US Treasury have called for new regulatory powers to shield the economy should a Wall Street firm collapse. |
| Ben Bernanke and Henry Paulson told congress it needed to modernise the regulatory system so it could deal with modern crises. | Ben Bernanke and Henry Paulson told congress it needed to modernise the regulatory system so it could deal with modern crises. |
| Bear Stearns was the most high profile victim of the credit crunch - facing near collapse before it was bought out. | Bear Stearns was the most high profile victim of the credit crunch - facing near collapse before it was bought out. |
| The calls came during a hearing of the House Financial Services Committee. | The calls came during a hearing of the House Financial Services Committee. |
| Mr Bernanke said that while current efforts were being concentrated on steadying the state of the US economy, it was not too early to consider measures to ensure the "orderly" liquidation of finance firms on the verge of bankruptcy in the future. | |
| Recommendations | |
| The Federal Reserve chairman also suggested a more formal process should be established to determine when to use any new powers. | |
| He said the Treasury should take a leading role in such a process given the financial implications of a Wall Street firm failing. | |
| The Treasury should consult with the company's regulator and other authorities, he added. |