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

12/14/2011 03:59 pm ET

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)

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