Big banks will not be allowed to fail, Bernanke says

Discussion in 'Wall St. News' started by ASusilovic, Mar 10, 2009.

  1. WASHINGTON (MarketWatch) -- Federal Reserve Board Chairman Ben Bernanke stressed Tuesday that major financial institutions would not be allowed to fail given the fragile state of financial markets and the global economy.
    In a speech in Washington, Bernanke repeated that a sustainable economic recovery will "remain out of reach" until the banking sector is stabilized.
    "In particular, the continued viability of systemically important financial institutions is vital to this effort," Bernanke said in a speech to the Council of Foreign Relations.
    "We have reiterated the U.S. government's determination to ensure that systemically important financial institutions continue to be able to meet their commitments," Bernanke said.
    Some senior Republican members of Congress and even one president of a regional Fed bank are calling for the government to pull back from assisting a large financial institution.}&dist=hplatest

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