Federal Reserve Chairman Ben Bernanke was pleased with the progress Congress made in drawing up the financial-regulatory overhaul legislation.
The U.S. House and Senate came close to an agreement on the proposal to supervise the big financial firms at the Squam Lake financial conference.
Senate lawmakers moved close to accepting the House proposal to eliminate the role of bankers in choosing presidents at the 12 regional Fed banks.
In his closing remarks, Bernanke explained that approval of the legislation appears to be in the near future.
“The Congress has made significant progress in each of the substantive areas I have discussed today as well as many others. Indeed, it appears that final legislation that addresses in some way the great majority of the recommendations in the Squam Lake Report could be enacted in the next few weeks,” he said.
The Squam Lake Report offered a list of recommendations to reshape and strengthen the regulatory and supervisory activities of financial institutions.
Bernanke explained the recommendations the Federal Reserve had supported. Among these recommendations, a systematic approach to supervision, enhanced liquidity regulation for financial firms and the development of a resolution regime were suggested.