Fight Over Fed's Power Kicking Into High Gear

The fight to keep the Federal Reserve Board's role in banking supervision has finally been joined. Late this past week Fed chairman Ben Bernanke made his strongest public pitch to date to keep the central bank's powers intact, while industry lobbyists privately told Treasury secretary Timothy Geithner that they will work with the administration to press Congress on the issue. Although there remains strong support in the Senate to strip the central bank of much of its power, the issue is key as the final reform bill takes shape. "The ICBA will fight tooth and nail to preserve the Fed's role in bank regulation," said Camden Fine, president of the Independent Community Bankers of America, who along with other trade group representatives met with Mr. Geithner on Wednesday. "In our view, it is absurd to blind the Federal Reserve to 8,000 community banks on Main Street America. That's very poor public policy." All eight of the industry groups attending the meeting, including the American Bankers Association and the Financial Services Roundtable told Geithner much the same thing.