Ben Bernanke: Fed Doesn't Have 'Authority' To Bail Out Europe

WASHINGTON - Federal Reserve Chairman Ben Bernanke told Republican senators on Wednesday the Fed can't and won't provide bailout funds to support European banks or nations, lawmakers said.

"We're all concerned, is the American taxpayer going to be bailing out European nations and banks," Senator Lindsey Graham told reporters after a meeting with the Fed chairman.

"He said, no, he doesn't have the intention or authority to do that," Graham said.

(Reporting By Mark Felsenthal and Pedro Nicolaci da Costa; Editing by Chizu Nomiyama)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[niccola111]

05:00 PM on 12/16/2011

Stop the lies, Bernanke.

[american-dolt]

01:28 PM on 12/16/2011

"The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International bankers." -- Congressman Louis T. McFadden (Rep. Pa)

[vietveter]

12:36 PM on 12/16/2011

Gee . . . . thans for saying so, Ben

Speaking as a citizen, being raped with

your corporate socialism once was

enough for me to last a lifetime.

YOU HACK

[gavrielle]

11:56 AM on 12/16/2011

Europe can afford to bail itself out of its euro mess. It just doesn't want to.

[Larry Braxton]

11:51 AM on 12/16/2011

The FED does a lot that it probably doesn't have the authority to do. They just don't let anyone know about it until 5 years later.

[Ppossom]

11:49 AM on 12/16/2011

I wonder what "bail out" means to Senator Graham or to Ben Bernanke? Bernanke has already loaned trillions to international banks, and, as I recall, the federal reserve provided "dollar liquidity" swap assistance to Euro markets on November 30th.

[vietveter]

12:40 PM on 12/16/2011

''Move along people, there is nothing to

see happening behind the curtain.''

YOU LIAR!

[fortressfountain]

11:32 AM on 12/16/2011

The federal reserve was created in 1913-to counteract extreme swings in interest rates,provide some inflation, create full employment.

[SisterAnn]

11:09 AM on 12/16/2011

We have got to get rid of the republican leaders and people like Ben Bernanke.

We are running out of time and we need to do it soon. Is Obama any better or do we need to vote third party?

[HmblDog]

09:05 AM on 12/16/2011

the fed only needs to prop up banks in europe until our big banks can profitably unwind their positions.

[dcb64]

08:17 AM on 12/16/2011

this guy is such a liar and a sociopath. What he says may be correct, but when it cam to the financial crisis the fed took collateral in droves that it was prohibited from taking because it was of such poor credit quality. They may not have the authority, but rules don't apply to this man when it comes to bailing out banking cronies.

[realorpretend]

01:42 AM on 12/16/2011

I almost think the fed should "bail out" the EU because then whenever some smug European (I have plenty of cousins over there and I love them all of course) decides to be condescending toward the US in any way I can gladly look them in the eyes and say, "it hurts being financially owed by us, doesn't it?"

[gavrielle]

11:58 AM on 12/16/2011

Don't bother. Just tell them they can afford to bail themselves out of the mess they created - they're just too weak willed and selfish to do it.

[skialethia]

07:29 PM on 12/15/2011

Congress just approved an amendment to sanction foreign banks that make large transactions with Iran's Central Bank. Italy, Spain and Greece, whose economies are fragile and attempting recovery purchase oil from Iran; Greece getting a favorable price which it desperately needs. This move will further destabilize the Eurozone. But then, the goal of U.S. Banks and Congress all along has been to sink the Euro to artificially pump up the dollar. So why would the Fed bail out Europe? This article is a decoy and a total red herring.

Meanwhile the truth is 146 million Americans living in poverty and a 15 TRILLION DOLLAR U.S. debt. But the U.S. will do ANYTHING to hide its sinking Titanic, even sink the Euro, if that means the Dollar can be kept afloat at the expense of others!

[realorpretend]

01:44 AM on 12/16/2011

You wouldn't want to pump up the American dollar, it's ALWAYS best to have a cheap currency if of course the goal is to increase exports.

[Andrea Allan]

01:32 PM on 12/15/2011

Would somebody get that in writing and have Bernanke personally sign whatever loans from here on end.

[hellothereandhere]

01:45 PM on 12/15/2011

there are plenty of loopholes.

[halfpricefaustian]

11:17 AM on 12/15/2011

But he'll continue to bail out American banks when they take a hit from European bank losses.

[simian sez]

10:27 AM on 12/15/2011

The Fed can't bail out Europe?
Thank god!
The Fed couldn't bail out the banks either. That's why the Ameican taxpayer got the bill.
There's gonna be great Grandchildren paying off that mistake.

[sonofsamphm1c]

11:37 AM on 12/15/2011

I didn't get mine - the bill? What does your bill say? How much do you owe the Federal Reserve?

I did see the Federal Reserve gave away 79 billion dollars to the US taxpayer in one year.

[simian sez]

01:32 PM on 12/15/2011

The Fed "gave" us nothing. You are harboring a gross misunderstanding.
The $79 billion either comes from taxes collected or, in lieu of having those funds, the Fed prints more currency for the US at the current interest rate. Just like any bank.
The debt will be paid by the taxpayer even unto generations from now and there's not a fraction of pain for the Fed.
They are not a part of our government and they don't work for us. Like any international banking conglomerate they give nothing away for free.
Call it a down payment on the last or the next multibillion dollar banking bail out...which they too will make interest on from the American taxpayer.

[xilduq]

02:28 PM on 12/15/2011

bought any food lately or anything else which has a commodity (cotton, food, energy, metals, ...) in its production chain?

if so, your money was extracted for the benefit of the banks

thanks, heli-ben!!