The fate of Ben Bernanke's confirmation is getting a lot of play in the US media today. Momentum for his reappointment has slowed considerably over the past few weeks, and he is losing Democratic votes by the day. The Democratic leadership is reportedly 'scrambling' to shore up Bernanke's support, but it's possible that Ben's candidacy is dead in the water. That is remarkable to me.
President Obama's new banking proposals have opened another front in the Bernanke battle, and many, like Simon Johnson, are appropriately calling on Ben to clarify his position on these reforms. There is a growing lack of confidence in Bernanke's conviction to take the fight to the banks, and without picking up that mantle in a public and convincing manner, Bernanke might be done at the Fed.
Stay tuned, this is snowballing fast.
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I gather that Timothy Geithner had been arguing for a different approach to banking regulation for months. He clearly lost that debate, so what does that mean for him?
not only were he and Summers likely arguing for a more benign approach, but he was also out today parsing the president's words, clearly at odds with Obama's fiery language.
Geithner is in under pressure on a number fronts, including in Congress for his actions at the NY Fed during the height of the crisis (related to alleged instructions to bail-out firms to withhold information from the public). If he loses Obama's ear/trust on big issues like reform, he could be an easy target for resignation under pressure from Congress. Maybe Chris Dodd replaces him? Maybe Volcker? Although Volcker could be a dark-house for the Fed if Bernanke is in fact DOA.
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