By Gina Gomez
Orlando, Florida, Mar 21, (THAINDIAN NEWS) Federal Reserve Chairman Ben Bernanke furnished his arguments against a bid by Senate which would take away the powers of the Fed to keep a close watch on state chartered banks and other financial institutions holding firms with resources less than $50 billion. The Federal Reserve chairman emphasized that the Fed should maintain its power of oversight of the small banks.

Ben Bernanke ventilated his views at the a conference at the Independent Community Bankers of America on Saturday in which he also emphasized that close associations with the community banks plays a pivotal role in enabling Fed to have a comprehensive understanding of the financial debacle that the nation faces which also takes into account commercial real estate issues as well as lending in small business. The Fed chief also highlighted that the Federal Reserve needs to look into banks of all sizes so that the possible debacles that the financial system might face can be detected.

At the same time, Ben Bernanke also stressed that one of the ‘most insidious’ hurdles to competition in the financial scenario is the existence of companies which are considered to be ‘too big to fail’. Moreover, the Federal Bureau chief also implied that the reform schemes which are instrumental in hindering the scope as well as the diverse activities of the financial firms should be taken into consideration.

At the same time, the conference also witnessed Ben Bernanke emphasizing that lawmakers should establish a path to recuperate deteriorating financial services companies that are estimated to be risky.