Obama gets assurances senate will back Bernanke

President Barack Obama received assurances from Senate leaders that Ben S Bernanke will be confirmed for a second term as Federal Reserve chairman, an administration official said.

Support for Bernanke came from Richard Durbin, the second-ranking Senate Democrat who earlier was undecided. Christopher Dodd, a Democrat who chairs the banking committee, and Judd Gregg, the top Republican on the budget committee, said they are confident that Bernanke will be confirmed, even after some members of both parties announce their opposition.

Stocks fell November 22 in part on concern that support for the Fed chairman was eroding. Obama called some senators yesterday, including those in the leadership, to ensure Bernanke’s confirmation won’t be derailed, said the administration official, who spoke on condition of anonymity.

“I saw Ben Bernanke under fire, facing our nation’s most serious economic crisis since the Great Depression,” Durbin of Illinois said in a statement. “We need his steady hand as we build our economy and create new jobs across America.”

Of senators who released statements or were contacted by Bloomberg News over the past two days, 30 said they would vote for Bernanke or were leaning in his favour, while 16 were opposed or leaning against him and 31 were undecided.

Bernanke’s critics, including some who support him for a second term, said the Fed failed to regulate banks before the credit crisis and questioned its involvement in the $182 billion bailout of New York-based insurer American International Group Inc. The Democratic Party’s loss of a Senate seat in Massachusetts last week has added to pressure on those senators facing re-election at a time of rising voter anger over the economy.

Durbin said he would continue to demand that the Fed make a commitment to transparency and accountability. Senator John Kerry, a Massachusetts Democrat, also endorsed Bernanke yesterday while saying in a statement that “It’s understandable why there is debate, questioning, and even anger about the renomination.”

Gregg, from New Hampshire, said Bernanke will get support from a “good” number of Republican senators because he’s the “best person” for the job.

“We’ll have a good vote amongst Republicans,” Gregg said in an interview. “I’ve talked to a number of people.”

“Why would Republicans who are not up for re-election and who are not trying to make a political point vote against the guy when he’s done a good job and is probably better than what the alternative would be?” he said.

Gregg and Dodd said in a statement: “Based on our discussions with our colleagues, we are very confident that Chairman Bernanke will win confirmation.”