WATCH: Judge Napolitano Praises Sen. Elizabeth Warren for Taking on Ben Bernanke Over 'Too Big to Fail' Banks
Federal Reserve Chairman Ben Bernanke testified before the Senate yesterday, running into some pushback from Sen. Elizabeth Warren (D-Mass.) on the size of the nation's biggest banks. Warren said the banks are still too big to fail, and they know that the government would bail them out again in a crisis.
pointed to the $83 billion that the biggest banks save on borrowing costs due to the market's belief that the government will not allow them to fail.
Bernanke said he wants to see the system change to move away from too big to fail, to which Warren, asked “Any idea about when we’re gonna arrive in the right direction?”
Stuart Varney discussed the issue with Judge Andrew Napolitano this morning on Fox Business Network. Admitting he's been critical of Warren in the past and is usually not on the side of Senate Democrats, the judge praised Warren for putting pressure on Bernanke.
"She's an intelligent woman, she asked great questions yesterday and I thought he didn't want to answer those questions. He gave her a very a rude and snark answer. (He said) how do you know about the 83 billion? That 83 billion has been well established! In fact that's probably on the low end of the estimates," said Napolitano.
Varney went on to point out that through the Dodd-Frank legislation, the banks are more regulated, and getting bigger and bigger, with the taxpayers remaining on the hook.