U.S. News: Senate Democrats Are Backing Yellen
WASHINGTON -- Senate Democrats are circulating a letter urging President Barack Obama to appoint Janet Yellen, the Federal Reserve Board of Governors vice chairman, to succeed Ben Bernanke as chairman of the central bank.</br></br>The letter has been signed by roughly a third of the 54 Democratic and allied senators, Senate aides said. While the full list of signatories couldn't be learned, it appeared largely to represent the liberal wing of the Democratic caucus.</br></br>The letter supports Ms. Yellen, said people who have seen it, and doesn't mention Lawrence Summers, a former Treasury secretary who is considered the other leading candidate for the Fed post. Some Democrats said they signed because of concerns about Mr. Summers's views on financial regulation, rather than on monetary policy.</br></br>"There's a lot of concern among a lot of Democrats about an appointment of Larry Summers to that long-term position as Fed chairman," said Sen. Tom Harkin (D., Iowa), who signed the letter. "He was one of the architects of getting rid of Glass-Steagall, of getting rid of other regulations."</br></br>Glass-Steagall was the Depression-era law that required the separation of commercial and investment banks. It was repealed in 1999, when Mr. Summers was serving as President Bill Clinton's Treasury secretary, sparking significant consolidation in the banking industry. Some observers cite Glass-Steagall's repeal as a factor behind the financial crisis.