Federal Reserve chairman Ben Bernanke said Tuesday that economic recovery hinges on stabilizing the financial system, and proposed new policies aimed at absorbing financial shocks in the future."Until we stabilize the financial system, a sustainable economic recovery will remain out of reach," Bernanke said in prepared remarks.
Bernanke said governments around the world must work together to address problems associated with large, interconnected financial institutions that are deemed too big to fail.
He said regulators should strengthen the nation's "financial infrastructure" and come up with contingency plans for institutions that fail.
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