Bernanke presses Congress for reforms

CHATHAM, Mass., Oct. 23 (UPI) -- U.S. Federal Reserve Chairman Ben Bernanke again called for regulatory reform, specifically prodding Congress to back up regulators with stricter banking laws.

"Regulators and supervisors can do a great deal, but comprehensive financial reform requires action by the Congress," Bernanke said in Chatham, Mass., in remarks prepared for the Federal Reserve Bank of Boston's 54th Economic Conference.

Bernanke steered away from remarks on current bank policy, despite investor interest in moves the Open Market Committee might make while the economy pulls itself out of a deep trough.

"Congress should ensure that all systemically important financial institutions are subject to a robust regime or consolidated prudential supervision," but advocated for "creation of a systemic oversight council," that would combine the efforts of principle regulators to ferret out system-wide risk, he said.

In addition, "Congress should create a new set of authorities to facilitate the orderly resolution of failing, systemically important financial firms," he said.

As the bankruptcy code does not "protect the public's strong interest in avoiding the disorderly collapse" of companies too-big-to-fail, "it is clear that we need an option other than bankruptcy or bailout for such firms," he said.