Fed responsibility is safety of banking system, not investors

Bernanke says Fed responsibility is safety of banking system, not investors

WASHINGTON (Thomson Financial) - Federal Reserve Board Chairman Ben Bernanke told members of Congress today that the Fed's policy actions over the last few months have not been aimed at bailing out individual investors, but rather at ensuring a sound US banking system.

'We're not bailing out anyone,' Bernanke told the House-Senate Joint Economic Committee today.

'It's not our practice in the broad financial world to protect investors -- particularly sophisticated investors who should be able to make their own evaluations -- from buying individual instruments,' Bernanke said. 'What our responsibility is, is to make sure that the banks are safe and sound, and that they are appropriately valuing their balance sheets,' and that their exposure to sub-prime instruments are appropriately measured, he added.