Bernanke says Fed doesn't want to be 'too big to fail' regulator

Federal Reserve Chairman Ben S. Bernanke said the central bank shouldn't be relegated to the role of regulating only the largest financial firms, as proposed by a draft bill in the Senate. "We are quite concerned by proposals to make the Fed a regulator only of the biggest banks," Bernanke told the House Financial Services Committee today in response to a question. "It makes us essentially the too-big-to-fail regulator. We don't want that responsibility." Bernanke and regional Fed bank presidents are opposing efforts by Congress to remove much of the central bank's supervisory role, saying such authority complements monetary policy. Bernanke sent senators an 11-page paper in January arguing that the Fed should retain its powers, while Fed presidents have written lawmakers and made their case in speeches.