Sources on the Hill tell Big Government that the nomination of Ben Bernanke to remain Chairman of the Federal Reserve is in deep trouble. A Senior Capitol Hill Staffer said to Big Government, “if [Senate Majority Leader] Reid does not file for cloture tonight, I don’t think they have the votes to confirm him.” The Wall Street Journal thinks the vote will be “tight,” yet the White House is spinning that they have the votes. Hill sources say that this nomination is trending in the wrong direction for the Obama Administration and many on the Hill are stunned by the news that, according to CNBC, Senator Barbara Boxer (D-CA) has announced her opposition to the nomination. There is growing opposition to this nominee remaining in charge of the Federal Reserve for a second term.
Senators have made public statements indicating that there may be non-public information that is hurting this nominee. Senator Jim DeMint (R-SC) said that “the Fed continues to stonewall Congress and the public.” Senator Jim Bunning (R-KY) referenced “ongoing examinations by Congress and the GAO of the Fed’s AIG bailout” and that there are “unpleasant facts for the Fed and Chairman Bernanke” that will come out after “full public disclosure of all information about the AIG bailout” that has only been shared with “select Congressional Committees and the GAO.” Senator David Vitter (R-LA) said, “it is vitally important that Congress has the ability and time to adequately review the Federal Reserve’s bailout of AIG. Although some of our offices have had time to review some of the documents, not all are available at this time and Congress should wait until GAO’s review before proceeding with his nomination vote.”
It appears that there is non-public information about Bernanke’s role in the AIG bailout that is leading Senators to jump ship on his nomination.