Fed nominee Ben Bernanke has told a Senate panel that he supports the process in place to test and implement the Basel II capital standard, but he was not asked for his views on the government-sponsored enterprises -- Fannie Mae and Freddie Mac.Testifying before the Senate Banking Committee, the president's nominee to succeed Federal Reserve Board Chairman Alan Greenspan said the regulators are "proceeding in a very cautious and very slow way" to implement the Basel II risk-based capital standard to ensure capital adequacy and the safety and soundness of the banking system. Mr. Bernanke served as a Federal Reserve governor for three years before he was confirmed by the Senate to chair the president's Council of Economic Advisers earlier this year. During his confirmation hearing in June, the former Princeton University economics professor testified that he shares Chairman Greenspan's concerns about the GSEs and the risk they pose to the financial system because of their huge mortgage portfolios. Mr. Greenspan has called for a substantial reduction in the GSEs' portfolios. After the hearing, committee Chairman Richard Shelby, R-Ala., said he did not ask Mr. Bernanke about the GSEs because of his testimony in June. Sen. Shelby wants to pass a bill that would force the two GSEs to reduce their portfolios. "I think the Fed is on board on that," he told reporters. The Senate Banking Committee has approved the nomination of Mr. Bernanke and recommended his confirmation by the full Senate.

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