The Federal Reserve should retain its supervisory role over large, complex financial institutions because it has an expertise that gives it an edge, Federal Reserve Board chairman Ben S. Bernanke told Congress yesterday.

“Even as the Federal Reserve’s central banking functions enhance its supervisory expertise, its involvement in supervising banks of all sizes across the country significantly improves the Federal Reserve’s ability to effectively carry out its central-bank responsibilities,” he told the House Committee on Financial Services, according to prepared testimony released by the Fed.

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