Fed says re-regulate banks

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The FT has reported that:

Ben Bernanke on Thursday called on Congress to consider sweeping changes to financial regulation, including much tighter supervision of investment banks.

The Federal Reserve chairman, who was ¬?testifying before the House financial services committee alongside Hank Paulson, Treasury ¬?secretary, said ¬?legislators should look at "consolidated supervision" for investment banks, allowing regulators to set capital, liquidity and risk management standards.

He should have added that this regulation should extend to their tax haven activities.