Fed Chairman Bernanke tries to makes case for Fed to retain role as watchdog of smaller banks

Bernanke: Keep Fed as watchdog of small US banks

WASHINGTON — Federal Reserve Chairman Ben Bernanke is making a fresh pitch for the Fed to retain its oversight of small banks.

Bernanke says that what the Fed learns from overseeing those banks helps it assess the overall health of the entire U.S. financial system.

The Fed chief is weighing in against a Senate proposal that would scale back the Fed’s banking duties.

Bernanke’s remarks came in a speech Saturday at the Independent Community Bankers of America’s meeting in Orlando, Fla.