RECOMMENDS FORMER FEDERAL RESERVE CHAIRMAN PAUL VOLKER

Washington, Jan 25, 2010 - “More of the same is not the solution to the economic downturn and the crisis in the financial markets,” said Rep. Cliff Stearns (R-Sixth),” and I urge the Senate to oppose confirming Ben Bernanke for a second term as the Chairman of the Federal Reserve. Not only did the Federal Reserve fail to prevent the worst financial crisis since the Great Depression, it was a significant factor in creating the disaster. We need a complete departure from the failed policies of the past.”

Bernanke served on the Board of Governors of the Federal Reserve from 2002 to 2005, and was appointed Chairman by President Bush and approved by the Senate in 2006. Stated Stearns, “Bernanke was no novice and there were countless distress calls. Ignoring these warnings, he steered the financial system onto the rocks -- should we put him at the helm again?”

Financial experts throughout the nation pointed out in 2006 that the “housing bubble’ was collapsing, and current and former officials in the Securities Exchange Commission called for action, yet nothing was done until it was too late. Another major factor in the financial meltdown last year were questionable financial transactions by the holding companies of the largest Wall Street firms, which are regulated by the Federal Reserve. Testifying before the Senate Banking Committee last month, Bernanke admitted, “we should have done more.” 

Added Stearns, “Instead, I recommend that the President nominate, and the Senate approve, former Federal Reserve Chairman Paul Volker, who has a proven record of success in reinvigorating the economy and making the tough decisions such as increasing interest rates that brought soaring inflation under control.”