City 1st Mortgage

Ben Bernanke has been giving testimony before Barney Frank and the rest of the House Financial Services Committee. The hearing is currently at recess. From my Reuters news feed, here are some important comments...

BERNANKE SAYS:

• DOESN'T WANT TO SECOND-GUESS FDIC'S DECISION TO HAVE BANKS PRE-PAY INDUSTY ASSESSMENTS. BANKS ESSENTIALLY MAKING A LOAN TO FDIC
• THERE ARE SOME CIRCUMSTANCES WHERE FINANCIAL PRODUCTS ARE TOO COMPLEX, OUTWEIGH BENEFITS TO CONSUMERS
• FED VIEWS EXECUTIVE COMPENSATION AS A SAFETY AND SOUNDNESS ISSUE; PAY SHOULD NOT GIVE INCENTIVES FOR SHORT-TERM RISK-TAKING
• SHOULD BE APPROPRIATE LINKS BETWEEN PERFORMANCE AND PAY IN EXECUTIVE COMPENSATION
• FED IS LOOKING TO INTERNATIONAL STANDARDS SET BY FSB IN SETTING ITS GUIDELINES FOR EXECUTIVE PAY
• NO IMMEDIATE RISK TO DOLLAR LOSING ITS STATUS AS GLOBAL RESERVE CURRENCY
• U.S MUST GET ITS FISCAL HOUSE IN ORDER; OTHERWISE IT COULD POSE RISK TO DOLLAR
• FRANK SAYS MAKES SENSE TO BAN FINANCIAL PRODUCTS THAT COULD POSE RISK TO LARGER FINANCIAL SYSTEM
• WOULD WEAKEN DOLLAR IF WORLD WENT TO INTERNATIONAL RESERVE CURRENCY, DOESN'T SEE THIS AS NEAR TERM RISK
• FED CONFIDENT IT CAN SUPPORT ECONOMY WITHOUT INDUCING INFLATION
• FED HAS TOOLS AND POLITICAL WILL TO ACHIEVE PRICE STABILITY
• THIS YEAR AND NEXT YEAR, BUDGET BALANCE NOT AT ALL FEASIBLE, IMPORTANT TO HAVE CREDIBLE PLAN TO REDUCE DEFICIT
• IF RESOLUTION AUTHORITY ENACTED, FED MIGHT NOT NEED EMERGENCY POWERS TO RESCUE FAILING FIRMS
• COULD CREATE STRONGER CONSUMER ADVISORY COUNCIL TO ADVISE FED ON CONSUMER PROTECTION
• FED WILLING TO STRENGTH INSTITUTIONAL FACTORS TO PROVIDE STRONGER CONSUMER PROTECTION

Most of what Ben has said didnt move money, however at 1053AM Bernanke made a comments regarding RISKS TO DO THE DOLLAR (see above).