Senators assure Obama Bernanke to win 2nd term

The Associated Press January 23, 2010, 10:43PM ET text
Senators assure Obama Bernanke to win 2nd term

By JEANNINE AVERSA



WASHINGTON

President Barack Obama phoned Senate allies Saturday as two key senators predicted that embattled Federal Reserve Chairman Ben Bernanke will be confirmed for a second term.

Obama made calls from the White House to members of the Senate leadership and others and was assured Bernanke would win confirmation, a senior White House official told The Associated Press. The official spoke on the condition of anonymity to discuss the private phone calls.

If Bernanke's nomination were derailed it would send tremors through Wall Street, which in turn could hobble an already fragile economic recovery and slow any comeback in the ailing jobs market. The mounting opposition to Bernanke was one of the factors worrying investors as the stock market suffered its worst setback in more than 10 months this week, losing 552 points from Wednesday to Friday.

Bernanke is widely credited with helping to prevent the Great Recession from turning into a second Great Depression. But his support of Wall Street bailouts has angered Americans who are struggling with double-digit unemployment and soaring home foreclosures.

Bernanke has become the focus of increased criticism since Republican Scott Brown won a Senate seat in an upset election in Massachusetts this past week.

The Senate is scheduled to vote on the Bernanke confirmation by the end of this coming week, said Jim Manley, spokesman for Senate Majority Leader Harry Reid, D-Nev.

Meanwhile, Senate Banking Committee Chairman Chris Dodd, D-Conn., and former Senate Budget Committee Chairman Judd Gregg, R-N.H., said in a statement Saturday that Bernanke is the right person to help guide the economy back from the worst recession since the 1930s.

Two other Democrats who had remained quiet about their intentions, Sen. John Kerry of Massachusetts, and the No. 2 Senate Democrat, Dick Durbin of Illinois, said Saturday that they will support him. Bernanke should not be the scapegoat for systemic failings, Kerry said.

Bernanke's term expires Jan. 31.

Already four Senate Democrats have said they would vote against the Fed chairman.

Bernanke has become the focus of increased criticism since Republican Scott Brown won a Senate seat in an upset election in Massachusetts this past week.

Dodd and Gregg -- neither seeking re-election in November -- said that "based on our discussions with our colleagues, we are very confident" that Bernanke will win confirmation by the Senate for another term.

"Bernanke has done an excellent job responding to one of the most significant financial crises our country has ever encountered," the two senators said. "We support his nomination because he is the right leader to guide the Federal Reserve in this recovering economy."

The Fed chief's supporters need 60 votes to prevent opponents from blocking confirmation. Sen. Bernie Sanders, an independent liberal from Vermont, and Republican senators Jim Bunning of Kentucky, Jim DeMint of South Carolina and David Vitter of Louisiana are spearheading a campaign to block Bernanke's confirmation.

On Friday, White House chief of staff Rahm Emanuel phoned senators urging support of Bernanke. Treasury Secretary Timothy Geithner also made calls to lawmakers, officials said.

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Associated Press writer Philip Elliott contributed to this report.

The economy sucks no matter what they do.They just need to slop the bleedin for now and let the next president fix it...Thanks Kracker.

* JANUARY 26, 2010

More Senators Declare Support for Bernanke
Liberal Groups Opposing Fed Chief and Business Interests Backing Him Court Undecided Lawmakers


By SUDEEP REDDY And GREG HITT

More senators stepped up Monday to support a second term for Federal Reserve Chairman Ben Bernanke as business interests rallied to his defense and liberal grass-roots activists launched a push for his defeat.

The latest tally by Dow Jones Newswires showed 40 senators supporting confirmation and 17 opposed, with the rest not disclosing their positions. Democratic leaders remained confident they would have the 60 senators needed to move ahead when the vote comes, now expected Thursday or Friday.



The White House and its congressional allies were working Monday to solidify support for Mr. Bernanke. After meeting with Mr. Bernanke for a half an hour Monday, Senate Majority Whip Richard Durbin told reporters he expects Mr. Bernanke's nomination to be approved. But when asked whether it is in trouble, he stressed he was working hard to build support. "We're taking it seriously," he said, noting that many senators on both sides of the aisle are concerned about the economy. "I don't take anything for granted," the Illinois Democrat said.

Mr. Durbin said the central bank chief acknowledged economic policy makers made mistakes ahead of the recession. But "putting this all at his doorstep may be going too far," he said. "This man and his leadership at the Federal Reserve made a difference" in staving off an even steeper decline.

Congressional aides estimated Monday that about 15 Republicans—and perhaps more— were ready to vote in favor of Mr. Bernanke. If so, he would need 45 votes from Democrats. So far, 29 Democrats and independents have voiced their support.

The liberal political-action committee MoveOn.org on Monday asked members to contact senators who were undeclared on the Bernanke nomination and urge a vote against him. The group cited the Fed's shortcomings in mortgage regulation ahead of the financial crisis, among other things, and said Mr. Bernanke "has completely ignored his responsibility to help fight massive unemployment."

The U.S. Chamber of Commerce, meanwhile, wrote to senators in support of Mr. Bernanke. "We will need the Federal Reserve to…gradually re-absorb that liquidity to achieve its dual goals of price stability and economic growth," the business group's lobbyist, Bruce Josten, wrote in the letter. "The Chamber is convinced that as one of the architects of the plan that has brought us to this point, Chairman Bernanke is the right person to head the Federal Reserve System during this vitally important second phase."


Camden Fine, chief executive of the Independent Community Bankers of America, also urged senators to vote for Mr. Bernanke. "It's unfortunate that his nomination has become a political football," he said. "If there's any sign that his confirmation might be in any deeper trouble we would immediately go grass-roots and ask thousands of community bankers to contact their senators," he said.

Senior executives from J.P. Morgan Chase & Co. also got involved. Rainmaker James B. Lee, who serves as a firm vice chairman, and Jes Staley, who runs the investment bank, each placed calls to senators over the weekend urging support for Mr. Bernanke, according to a person familiar with the situation.

Sens. Lindsey Graham (R., S.C.), Dianne Feinstein (D., Calif.) and Max Baucus (D., Mont.), the chairman of the Senate Finance Committee, all said Monday they would vote for Mr. Bernanke. "To blame one man for the financial implosion is simply wrong," Ms. Feinstein said. Mr. Bernanke "has been helpful to the recovery" and should be reconfirmed "for reasons of stability and continuity." California's other senator, Democrat Barbara Boxer, who is up for re-election this year, is opposing confirmation. Sen. Ben Nelson (D., Neb.) said Monday that he would vote for Mr. Bernanke after having spoken to fellow Nebraskan Warren Buffett, who advised him to do so.

Sen. Joseph Lieberman of Connecticut, one of the chamber's two independents, also declared his support for Mr. Bernanke. The other independent, Sen. Bernie Sanders of Vermont, has been leading the charge against the Fed chairman.
Bernanke at the Helm


"No one can deny that Mr. Bernanke, as chairman of the Fed, was asleep at the wheel while Wall Street became the largest gambling casino in the history of the world and hurtled into insolvency—at enormous cost to our country," Mr. Sanders wrote in a letter to Democratic colleagues.

After doubts about the nomination spread on Friday, the Intrade online wagering market put Mr. Bernanke's chance of being confirmed at 80%, down from 95% earlier in the week. By late Monday, though, the likelihood of confirmation was put at 93%.

The Fed's policy committee, the Federal Open Market Committee, begins a two-day meeting Tuesday.