Under a bill sponsored by Senate Banking Committee Chairman Chris Dodd, the Fed would oversee only companies with $50 billion or more of assets - a population of only 55 companies - while losing overight of some 5,000 other institutions.
Bernanke told lawmakers Wednesday that the Fed's oversight of smaller firms was vital, not just for monetary policy but for the stability of the system itself. He was backed by former Fed Chairman Paul Volcker, now the chairman of the Economic Recovery Advisory Board.
"Just reading the article, and found it interesting," Tony Feraro, chief executive of $148 million-asset Concord Bank in St. Louis, said in feedback submitted via American Banker's Website. "Let me see if I understand; Wall Street and the banks too big to fail are the major cause of the collapse, and Bernanke believes smaller banks need further oversight? Do I have that right?"
