Senate Banking Panel To Hold Bernanke Confirmation Hearing Dec 3

WASHINGTON -(Dow Jones)- The Senate Banking Committee is to hold a confirmation hearing to consider Federal Reserve Board Chairman Ben Bernanke's appointment for a second term on Dec. 3, the panel said Friday.

Bernanke was appointed by President Barack Obama to a second four-year term in August. His initial appointment as chairman was by President George W. Bush in 2005.

Leading up to the announcement of his reappointment, there had been considerable speculation that Bernanke would be replaced by an individual selected by Obama. One possible candidate floated was Lawrence Summers, Obama's top economic adviser and a former Treasury Secretary during the Clinton Administration.

There has been considerable unease by lawmakers that the Fed under Bernanke didn't spot the signs of impending crisis before the markets collapsed last year. And he has received credit with his handling of the crisis since it got under way. Through a variety of market interventions and lending facilities, the Fed has been very active in providing liquidity to the markets.

Senate Banking Committee Chairman Christopher Dodd (D., Conn.) said in August that while he has had significant differences with the Fed in recent years, Bernanke's reappointment was "probably the right choice."

The hearing is likely to be a contentious one, with Bernanke on the receiving end of tough questioning from lawamkers.

-By Corey Boles, Dow Jones Newswires; 202-862-6601; corey.boles@dowjones.com

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(END) Dow Jones Newswires

November 20, 2009 15:10 ET (20:10 GMT)

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