A week ago, Ben Bernankes confirmation appeared in doubt. But after some strong lobbying from the Obama White House, less than a quarter of the Senate voted against the Federal Reserve chairman in the key procedural vote.
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| Fed Chairman Ben Bernanke (Reuters) |
Among the 23 senators who sought to block a vote on the confirmation were five Democrats and one independent who usually sides with Democrats, and 17 Republicans. That group included a couple of senators facing tough re-election fights this year, such as Sen. Arlen Specter (D., Pa.), as well as outspoken Fed critics Jim Bunning (R., Ky.) and Bernie Sanders (I., Vt.). (See a full tally of how senators voted.)
A vote for Ben Bernanke is a vote for bailouts, Sen. Bunning said on the Senate floor. If you want to put an end to bailouts and send a message to Wall Street, this vote is your chance.
Election-year politics and deeply held antipathy to the Fed werent the only factors driving senators to oppose a second term for Mr. Bernanke, who won confirmation four years ago on a voice vote.
Some no voters cited concerns about the Fed chairmans track record on regulation ahead of the crisis, an area in which even Mr. Bernanke has acknowledged the Feds shortcomings. Others criticized his response to the financial crisis, with some liberals charging he didnt do enough for Main Street and some conservatives saying the Fed is sowing the seeds of the next crisis.
The Fed chairman has to realize the urgency with which the big banks have been saved and bailed out, Sen. Maria Cantwell (D., Wash.) That urgency has to be applied to Main Street.
After the procedural vote, the Senate voted 70-30 to confirm Mr. Bernanke. Some of the seven senators who switched explained they didnt want to stand in the way of President Barack Obamas nominee, but wanted to show disapproval of Mr. Bernankes tenure. Among those were Sen. Barbara Boxer (D., Calif.), who faces a tough re-election race, and Sen. Byron Dorgan (D., N.D.), who is retiring.
Mr. Dorgan said he wanted to highlight what he called a bright line in America between those who are too big to fail and those who are too small to matter.
The biggest financial institutions were engaged in wholesale gambling, Mr. Dorgan said. They run their company and their country into the ground. They are told, Well you know what? Youre so big we cant possibly let you fail, so were going to give you a big bailout.
Senators who arent seeking re-election mainly backed a second term for Mr. Bernanke, including Christopher Bond (R., Mo.), Roland Burris, (D., Ill.), Christopher Dodd (D., Conn.), Judd Gregg, (R., N.H.), and George Voinovich (R., Ohio). But three — Sens. Bunning and Dorgan and Sen. Edward Kaufman (D., Del.) opposed him.
Several senators said they expected Mr. Bernanke to notice the strength of the opposition. After what I can imagine has been a pretty harrowing experience for the Fed chairman, my guess is hes going to redouble his efforts to make sure that the Fed is in a position of strength, said Sen. Bob Corker (R., Tenn.), who supported the nomination. Ive got to believe after all of this, the Fed is going to conduct itself at a better level, at a higher level, than in the past.