Bernanke Will Tell Congress That The US Financial System Remains Vulnerable To European Contagion

ben bernanke testifies joint economic committee

UPDATE
The Federal Reserve has now made Bernanke’s testimony available on its website.

ORIGINAL
Fox Business News’ Peter Barnes has reportedly obtained a copy of the testimony Ben Bernanke plans to give to¬† the House Oversight and Government Reform Committee tomorrow.

According to Barnes, Bernanke will warn Congress that contagion from Europe’s financial crisis remains a concern for U.S. financial institutions.

“The risks of contagion remain a concern for both these institutions and their supervisors and regulators,” says Bernanke.

In particular, Bernanke writes that U.S. money market funds “remain structurally vulnerable.”

However, it’s not all gloom.

Bernanke will also say describe how well U.S. firms have prepared for any exposure from European financial stress.

“U.S. financial firms and money market funds have had time to adjust their exposures and hedge their risks to some degree as the European situation has evolved.”

Read Barnes’ whole story at FoxBusiness.com.

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