The Federal Reserve Chairman Ben Bernanke defended his post and taken steps under his leadership from the central bank in the U.S. to fight economic and financial crisis. Bernanke made the statement before the Senate, which must consider his candidacy for a second four-year term until the end of December. Under his leadership, the Federal Reserve cut the key rate in the United States to levels close to zero and set aside 3 trillion. dollars to strengthen the financial system. Bernanke warned that lower interest rates can not be changed prior to the careful analysis and assessment of the economic situation. He added that the Federal Reserve will implement the strategy of tightening monetary policy in such a way as to encourage job creation and to maintain price stability in the country. Some of the MPs in the Senate believe that the reelection of Bernanke will become the right message to the financial markets. Others, however, vehemently criticized the measures taken by the Federal Reserve steps forward BBC. Ben Bernanke’s mandate expires at the end of January. U.S. President Barack Obama nominated him for another term as chairman of the Central Bank of the United States in August, but his reappointment must be confirmed by the Senate.
Read the full story

Most large U.S. banks will soon have to take public offerings if the Treasury require repayment of funds lent to them by the program to buy troubled assets (TARP), Reuters said banking analyst Richard Bouv. Earlier this month asked the Federal Reserve Banks, subject to “stress test” to come forward with plans to repay the amounts allocated in exchange for the issued preference shares in them. “In fact, all banks can easily redeem these securities of its cash balances, but only 3 of the top 30 banks would be left with adequate Tier if they do,” explains Bouv. It is believed that the Treasury aims ratio Tier assets to 12 percent, which means that banks will be forced to raise capital without government assistance before they are allowed to repay the funds under the program continues Bouv. “It stirs the thought that some banks would rather have public offerings, although their profits are in doubt.” Rochdale Securities analyst said that the swell of the U.S. budget deficit, which is expected to reach 9.5 percent of GDP in this fiscal year and the drop-down dollar, forcing the government to obtain funds where possible. Collection of funds awarded through the TARP program is one of the possible sources, according Bouv. Many banks want to return the funds received under the program, which was worth 700 billion dollars as participation in it is associated with restrictions on expenditure on salaries, dividends and redemptions.
Read the full story