WASHINGTON (MarketWatch) -- A razor-thin procedural vote in the Senate advancing a sweeping health-care bill was a "big victory" for Americans, President Barack Obama said Monday, as senators were on track to pass the White House-backed overhaul later this week.

Senators voted 60-40 at 1:16 a.m. Eastern to move on the bill, the first of three procedural votes before a final vote that could come on Christmas Eve.

The 60 votes were the minimum needed for passage. Not a single Republican voted for the bill. More procedural votes are scheduled for early Tuesday morning.

"The United States Senate knocked down a filibuster aimed at blocking a final vote on health-care reform, and scored a big victory for the American people," Obama said Monday morning. "The Senate has moved us closer to reform that makes a tremendous difference for families, for seniors, for businesses, and for the country as a whole," he added.

Shares of health insurers rallied on Monday following the early-morning vote. Read story about health-insurance stocks.

The Senate's bill is the most sweeping piece of health-care legislation in a generation and would extend insurance coverage to about 30 million Americans. It would raise taxes on medical-device makers and cut payments to providers of Medicare.

Senate Majority Leader Harry Reid, D-Nev., said Democrats aren't over the finish line but "never have we been so close" to overhauling the U.S. health-care system.

Senate passes health bill

The health bill narrowly passed the Senate last night, setting up a Christmas Eve signing by the White House. The News Hub panel discusses what this means for consumers.

Republicans, who had called for the bill to be read on the floor in its entirety, maintain that the legislation will jack up premiums and health-care costs. Read more MarketWatch health-care reform coverage.

"A top-down bureaucratic government-run health-care system that will cost nearly a trillion dollars is not what the American people want," said Republican National Committee Chairman Michael Steele in a statement at about 1:30 a.m.

"If the liberals in Congress don't understand this by now, they will when the voters give them a pink slip in 2010," he added.

The legislation will cost $871 billion over 10 years, according to an estimate issued by the Congressional Budget Office instant personal loans guaranteed. Read CBO analysis of health bill.

It creates insurance exchanges, or marketplaces, where the uninsured and small businesses will be able to shop for coverage. The bill also requires most Americans to buy health insurance or pay a fine, and forces employers with more than 50 workers to offer health insurance or pay a fine. For the first time, insurers would be barred from denying coverage to sick people. Read text of bill and summaries.

Doctors applauded the Senate bill but health insurers gave it a mixed review.

"All Americans deserve affordable, high-quality health coverage so they can get the medical care they need -- and this bill advances many of our priority issues for achieving the vision of a health system that works for patients and physicians," said Cecil Wilson, the president-elect of the American Medical Association.

Wilson said the doctors' group was pleased the bill increases payments to primary care doctors and general surgeons in underserved areas but doesn't cut payments to other physicians.

"While the bill makes important improvements in access and takes steps towards cost-containment, it lacks accountability to ensure that costs are brought under control," said Karen Ignagni, president and CEO of America's Health Insurance Plans, on Saturday.

If the Senate bill passes, it will need to be reconciled with the House's version, a more-liberal measure that contains a strong government-run health insurance option. That health plan, though, will almost certainly be left out of the final bill that makes it to Obama's desk for signature.

The Senate bill passed only after the government-run option was substituted with a plan for private insurance plans to be overseen by the government's Office of Personnel Management.

The bill is paid for with taxes on high-value insurance plans, Medicare and industries including medical-device manufacturers. It would also cut $480 billion from Medicare over 10 years, though Democrats say basic benefits won't be touched.

Health-care vote 'big victory,' Obama says

CHANGSHA, Dec. 17 (Xinhua) -- Chinese Vice Premier Wang Qishan said China would deepen the reform of its rural credit cooperatives in order to better serve the farmers and rural economic growth.

He made the remarks during his inspection tour in central China's Hunan Province from Wednesday to Thursday

Wang said the reform and development of the rural credit cooperatives was of major importance to the financial systems in the country's rural areas and concerning the general well-being of farmers bad credit auto loans.

In China, Rural Credit Cooperatives are regional rural cooperative financial institutions formed by share-holding partners, different from the large banks whose customers are mainly in cities. They are major sources of agricultural loans.

China to deepen reform of rural credit cooperatives: vice premier

Hot News: RIM profit, outlook top forecasts, shares surge

NEW YORK (Reuters) – Stocks finished flat to slightly higher on Wednesday after the Federal Reserve reiterated its intention to keep interest rates low for the foreseeable future to ensure a sustainable economic recovery.

Wall Street trimmed gains after the Fed voted unanimously to keep benchmark borrowing costs in a range of zero to 0.25 percent, which represents historic lows.

The central bank&&9;s policy-making committee also reminded markets it will let most of the special liquidity facilities, which have helped bolster the U.S. banking system after last year&&9;s credit crisis, expire by early next year.

"The liquidity pullback, people are looking at it and saying we&&9;re not going to get that free run that we&&9;ve had in the stock market, we&&9;re not going to have all that free capital that we had previously," said Dan Cook, senior market analyst at IG Markets in Chicago.

"That will have people concerned, heading into the new year."

Financial stocks, which had initially climbed after sources said global banking regulators will give institutions a grace period before enforcing more stringent capital rules, also slipped after the Fed&&9;s statement.

The S&P Financial Index (.GSPF) rose 0.7 percent, retreating from earlier gains of more than 1 percent. JP Morgan Chase & Co (JPM.N), a Dow component and the second-largest U.S. bank, added 1.2 percent to &&6;41.36.

The Dow Jones industrial average (.DJI) slipped 10.88 points, or 0.10 percent, to end at 10,441.12. But the Standard & Poor&&9;s 500 Index (.SPX) gained 1.25 points, or 0.11 percent, to 1,109.18. The Nasdaq Composite Index (.IXIC) added 5.86 points, or 0.27 percent, to 2,206.91.

After the closing bell, Citigroup Inc (C.N) shares slid 3.5 percent to &&6;3.33 after CNBC reported the bank&&9;s equity offering had been priced at &&6;3.15 per share.

MILD CPI, HEALTHIER HOUSING DATA

Earlier in the session, data from the Labor Department showed the overall U.S. Consumer Price Index rose 0.4 percent in November, in line with expectations, which eased inflation worries and lifted stocks.

Home builders&&9; stocks climbed after Commerce Department data showed new U pay day advance.S. housing starts increased 8.9 percent in November, the largest monthly percentage gain since May, indicating the housing sector remains on a steady recovery path.

The Dow Jones U.S. Home Construction index (.DJUSHB) jumped 4.4 percent, led by KB Home (KBH.N), up 6 percent at &&6;13.59 on the New York Stock Exchange.

But after the closing bell, shares of Hovnanian Enterprises Inc (HOV.N) tumbled 13.2 percent to &&6;3.67 in extended trade after the No. 5 U.S. home builder posted a quarterly loss that was much bigger than Wall Street&&9;s expectations.

During the regular session, chipmaker Intel (INTC.O) slid 2.1 percent to &&6;19.38 on Nasdaq after the U.S. government accused the chipmaker of illegally using its market dominance to stifle competition.

Honeywell International Inc (HON.N), the largest maker of cockpit electronics, dropped 2.1 percent to &&6;40.37 after it forecast a drop of 13 percent to 21 percent in net profit next year. It was the biggest drag on the S&P Industrial index (.GSPI), which slipped 0.3 percent.

Investors, particularly those with significant holdings in banking stocks, also noted the news from Washington that two bills were introduced on Wednesday to reinstate the 1930s-era Glass-Steagall Act to split commercial and investment banking. The proposed legislation is part of an effort in Congress to curb Wall Street&&9;s excesses after last year&&9;s financial crisis and the meltdown in the stock market.

Volume was light on the New York Stock Exchange, with 1.16 billion shares changing hands, below last year&&9;s estimated daily average of 1.49 billion, while on the Nasdaq, about 2.11 billion shares traded, below last year&&9;s daily average of 2.28 billion.

Advancing stocks outnumbered declining ones on the NYSE by a ratio of about 2 to 1, while on the Nasdaq, about 15 stocks rose for every 11 that fell.

(Reporting by Chuck Mikolajczak; Additional reporting by Leah Schnurr; Editing by Jan Paschal)

Wall St ends flat to up a bit after Fed's statement

NEW YORK – The Nasdaq Stock Market on Monday said it will delist the stocks of three small companies: Teton Energy Corp., Altus Pharmaceuticals Inc., and UCBH Holdings Inc.

Nasdaq will file the necessary paperwork with the Securities and Exchange Commission to complete the delistings, which will become effective 10 days later. In all three cases, however, the stocks have already stopped trading on the Nasdaq.

Trading in Teton Energy, a Denver-based oil and gas exploration and production company, was suspended on Nov. 18.

The same day, trading was suspended for UCBH. The company's main subsidiary, United Commercial Bank, based in San Francisco, was closed by California regulators on Nov saving account payday loan. 6 and placed under receivership of the Federal Deposit Insurance Corporation. The deposits were assumed by East West Bank of Pasadena, Calif.

The stock of Altus Pharmaceuticals was suspended on Nov. 23. Altus is a Cambridge Mass.-based biotechnology company founded in 1993. The company is developing treatments for patients with chronic gastrointestinal and metabolic diseases.

Nasdaq to remove 3 companies from exchange

LONDON (Reuters) – Kraft Foods (KFT.N) said it would maintain a disciplined approach in its pursuit of British chocolatier Cadbury (CBRY.L) and believes the combination would provide meaningful revenue synergies and cost savings.

In a statement on Tuesday responding to Cadbury&&9;s defense document, Kraft said a combination with its British rival would "represent a uniquely complementary fit."

"We have heard nothing from Cadbury that surprises us," said Kraft Foods Chairman and CEO Irene Rosenfeld.

"Cadbury&&9;s defense document only reinforces our belief that there is a compelling strategic and financial rationale to combining these two companies and that doing so would be in the best interest of both companies&&9; shareholders," he added cash advance payday loans.

On Monday, Cadbury teased shareholders with the prospect of rival bids and promised bigger dividends and stronger growth as it again knocked back Kraft&&9;s hostile 10 billion pound (&&6;16.3 billion) offer.

Shares in Cadbury closed up 0.57 percent at 793 pence, compared to Kraft&&9;s hostile bid worth 729 pence. Many analysts believe Kraft will need to pay 820-850 pence to win Cadbury.

(Reporting by Matt Scuffham; Editing by Victoria Bryan)

(&&6;1=.6140 Pound)

Kraft pledges discipline in Cadbury pursuit

NEW YORK (Reuters) – Morgan Stanley (MS.N) said on Sunday it hired former Merrill Lynch President and Chief Operating Officer Gregory Fleming to run its investment management group.

Fleming -- one of the architects of Merrill Lynch & Co Inc&&9;s sale to Bank of America Corp (BAC.N) -- will be president of Morgan Stanley Investment Management, which includes the firm&&9;s merchant banking business. He will also be responsible for Morgan Stanley&&9;s global research and will report to incoming Chief Executive James Gorman, the firm said.

Fleming left Bank of America after the deal closed in January and has been working as a senior research scholar at Yale University. He has been portrayed as a key proponent of the sale of Merrill Lynch at the height of last year&&9;s financial crisis despite initial reluctance from then-Merrill CEO John Thain.

In Andrew Ross Sorkin&&9;s book on the financial crisis, "Too Big to Fail," Fleming was also credited with getting Bank of America to agree to pay Merrill bankers 2008 bonuses up to the same level as in 2007. He also got the bank to agree to an airtight "material adverse change" agreement, meaning that even if Merrill&&9;s businesses continued to deteriorate Bank of America couldn&&9;t easily back out of the deal low fee payday loans.

Both elements of the deal proved to be very controversial as public outrage was sparked by news about the bonuses and as figures in subsequent months showed that Merrill&&9;s businesses were in worse shape than had been publicly acknowledged and Bank of America CEO Kenneth Lewis threatened to back out of the deal.

Fleming joined Merrill Lynch in 1992 and from 2003 to 2007 co-headed Merrill Lynch&&9;s markets and banking group. Fleming, a noted rainmaker who focused on financial companies, oversaw Merrill&&9;s investment banking.

He will be joining Morgan Stanley in February. Fleming&&9;s hiring follows a shuffle of executives announced earlier this week when Gorman pegged Morgan Stanley&&9;s chief financial officer and head of investment banking to run its crucial institutional securities unit.

(Reporting by Michael Erman, additional reporting by Martin Howell, editing by Martin Golan)

Morgan Stanley hires ex-Merrill COO Fleming

WASHINGTON (Reuters) &<51; Sales at United States retailers rose more than expected in November as consumers spent more on gasoline and a wide range of other goods, data showed on Friday, raising hopes of a self-sustaining economic recovery.

The Commerce Department said total retail sales increased 1.3 percent last month, the largest advance since August, after rising by a downwardly revised 1.1 percent in October. It was the second straight monthly gain. Sales in October were previously reported to have increased 1.4 percent.

Analysts polled by Reuters had forecast retail sales gaining 0.7 percent last month. Overall sales in November were helped by strong receipts from gasoline stations and increased purchases of motor vehicles and parts, building materials and electronic goods, among others. Gasoline sales surged 6 percent, the largest increase since June.

Compared with November last year, sales were up 1.9 percent, the first year-on-year gain since August 2008, a Commerce Department official said.

The data should help to ease concerns that the economy&S217;s recovery could falter because of lackluster consumer spending. The economy resumed growing in the third quarter, mostly because of government spending.

With the labor market starting to stabilize and household wealth rising, there is growing optimism that consumer spending will soon pick up.

Excluding motor vehicles and parts, retail sales increased 1 free credit report online.2 percent in November, the largest increase since January, after being flat in October. Economists had expected a 0.4 percent increase.

Core retail sales excluding autos, gasoline and building materials rose 0.6 percent, advancing for a fifth straight month.

Sales of building materials climbed 1.5 percent last month, the biggest gain since April 2008, after falling 1.8 percent in October. Purchases of electronics and appliances jumped 2.8 percent, the largest increase since January. The strong report on retail sales came as the Labor Department reported a rise of 1.7 percent in import prices in November, their largest gain since June, driven higher by fuel costs.

Analysts polled by Reuters had expected a slimmer rise of 1 percent. October&S217;s gain was also revised up to 0.8 percent from the 0.7 percent previously reported.

Import prices have been steadily rising over the last year and have increased during eight of the last nine months, the Labor Department said. They also rose 3.7 percent from November 2008 in the first annual gain since the October 2007-2008 period.

Excluding petroleum, import prices were up a much slimmer 0.7 percent in November.

U.S. Retail Sales Exceed Forecasts

BRUSSELS (Reuters) &<51; European Union regulators accepted on Wednesday a pledge by the chip maker Rambus to cut royalties worldwide on computer memory chip patents for five years to settle antitrust charges and avoid a possible fine.

Under the settlement, the chipmaker will not be found liable for any wrongdoing, the European Commission said in a statement.

The commission, following complaints from Infineon Technologies of Germany and Hynix Semiconductor of South Korea, had charged the company in 2007 with abusing its dominant position by claiming unreasonable royalties.

Rambus, based in Los Altos, Calif., made its offer to settle in June and this was market-tested by the commission, the executive body of the 27-country European Union.

&S220;The commitments in their final form, as modified by Rambus, are adequate to meet the competition concerns expressed in the statement of objections,&S221; or charge sheet, the statement said.

As part of the settlement, Rambus will cap royalties at 1.5 percent for the later generations of JEDEC DRAM (dynamic random-access memory) standards for five years bad credit pay day loans.

JEDEC is a standard-setting organization for the chip-making industry. JEDEC-compliant DRAMs represent around 95 percent of the market and are used in virtually all personal computers.

&S220;An effective standard-setting process should take place in a non-discriminatory, open and transparent way to ensure competition on the merits and to allow consumers to benefit from technical development and innovation,&S221; the competition commissioner, Neelie Kroes, said. &S220;Abusive practices in standard-setting can harm innovation and lead to higher prices for companies and consumers. For its part, the commission will vigorously enforce the competition rules in this area,&S221; she added in the statement.

The commission said the five-year pledge would ensure the decision covered any claims of Rambus based on patents, and patent applications, dating back to when it was a JEDEC member.

Europe Accepts Settlement Offer From Rambus

(Reuters) – Federal prosecutors investigated Galleon Group hedge fund founder Raj Rajaratnam on suspicions of insider trading more than a decade before he was charged with securities fraud, the Wall Street Journal reported, citing legal filings.

However, the prosecutors were unable to prove their suspicions, the paper said.

The investigation stemmed from suspicions that arose in the 1990s within chip maker Intel Corp (INTC.O) that Rajaratnam was receiving tips from an Intel insider.

Intel could not immediately be reached for comment by Reuters outside regular U low fee payday advance.S. business hours.

The Sri Lankan-born billionaire was arrested on October 16 and accused by prosecutors of generating millions of dollars of illegal profits in the largest U.S. hedge fund insider trading case on record.

Rajaratnam has denied the charges.

(Reporting by Santosh Nadgir in Bangalore; Editing by Muralikumar Anantharaman)

Prosecutors investigated Rajaratnam a decade ago: report

NEW YORK (MarketWatch) -- Benchmark stock indexes in Mexico and Brazil closed higher Wednesday, adding to the prior session's rally, after J.P. Morgan upgraded Mexico and industrial production in Brazil improved for a 10th month.

Mexico's IPC index rallied 1.1% to 32,112 and Brazil's Bovespa gained 0.3% to 68,615.

The swing in Mexico's economic growth in 2010 is predicted to be 0.5% from this year, one of the largest turnarounds in emerging markets, J.P. Morgan analysts wrote in a research note. Still, the nation's stocks are under-owned, and growth in the U.S. will be a big boost for one of its largest trading partners, Adrian Mowat and Ben Laidler said.

Among the shares J.P. Morgan now rates at overweight, Ternium's U.S. shares gained 2.5% and brewer Femsa's shares rose 1.4%.

DOW INDUSTRIALS (DJIA)

• Market Snapshot: U.S. stocks in focus • Market Topics: Dubai • Technology stocks | Energy stocks • Metals stocks | Retail stocks • Financials | Airline stocks | Pharma and Biotech • Bond Report | Oil News | EarningsWatch • Currencies | Market Data | Economic Calendar

Separately, bank concern Banorte jumped 3.5% in local trading.

Among some of the most actively-traded Mexican companies, U.S. shares of fixed-line telecommunications firm Telmex advanced 2 fast cash.6%.

Retailing giant Wal-Mart de Mexico gained 3.9% on U.S. exchanges.

U.S. shares of wireless giant American Movil declined 1.7% while cement maker Cemex slid 0.5%.

In ETF action, the iShares MSCI Mexico Investable index rose 1.4%

Meanwhile, iShares MSCI Brazil Index gained 1.1%.

Is It Too Late To Buy Stocks?

WSJ's personal finance reporter Shefali Anand talks to India Bureau Chief Paul Beckett about whether individual investors can still buy stocks in light of massive gains in 2009.

Industrial production in Brazil rose 2.2% in October compared to the previous month, the national statistics agency said.

Utility companies led the advance, with local shares of Centrais Eletricas Brasileiras up 8.5% and Eletrobras shares gaining 6.6%.

Petrochemicals company Braskem's U.S. shares rose 4.2%.

Steel firms were among the gainers, with U.S. shares of Gerdau up 2.5% and CSN advancing 2.4%.

Oil giant Petrobras declined 0.1%.

Elsewhere in South America, Argentina's Merval index advanced 0.5% to 2,221. In Chile, the IPSA index gained 0.6% to 3,344.

Latin American Markets: Latin America stock rise; analyst upgrades Mexico

The insurance giant American International Group said on Tuesday that it had closed two debt-for-equity transactions that reduce its debt with the Federal Reserve Bank of New York by $25 billion.

A.I.G. said that under the agreement the New York Fed would receive preferred shares with a liquidation preference worth $16 billion in American Life Insurance Company and $9 billion in American International Assurance Company Ltd., which would be placed in special purpose vehicles .

The insurer said that the special purpose vehicles would prepare the two subsidiaries for initial public offerings or third-party sales, and in a separate statement said it was moving forward with the separation of American Life Insurance.

The liquidation preference is an undisclosed percentage of the estimated fair market value of the two A.I.G. units. A.I.G. retains the common interests in American Life and American International Assurance, and thus would benefit should the market valuation of the two units be in excess of $25 billion low fee payday loans.

A.I.G. said that as of Tuesday, its outstanding principal balance under the New York Fed credit facility was about $17 billion and the total amount available under the facility had been reduced to $35 billion from $60 billion.

&S220;We continue to focus on stabilizing and strengthening our businesses, but expect continued volatility in reported results in the coming quarters, due in part to charges related to ongoing restructuring activities,&S221; the A.I.G. chief executive, Bob Benmosche, said in a statement.

A.I.G. in Debt-for-Equity Swap With New York Fed

WASHINGTON (MarketWatch) -- Senators return to Washington on Monday and resume debate on a health-care overhaul, with Democrats aiming to pass a bill by Christmas but facing tough fights on issues ranging from abortion to the strength of a government-run health plan.

Senate Majority Leader Harry Reid needs 60 votes to pass his bill, which seeks to extend insurance coverage to 94% of Americans and set up a public health insurance option. But Republicans and Democrats alike are expected to offer a slew of amendments on the 10-year bill, slowing its passage through the chamber.

The Senate reconvenes at 2 p.m. Eastern.

News Hub: Afghanistan Tops Obama's Policy Agenda

Iran plans to create 10 more uranium facilities and health-care debate moves to the Senate floor, but President Barack Obama's biggest challenge this week will be delivering his Afghanistan strategy speech Tuesday.

Sen. Bernard Sanders, a Vermont independent who votes with the Democrats, said Sunday he's got about 10 amendments and that he wants a strong "public option" in the bill. As currently written, the bill would allow states to opt out of the government-run health plan. Sen. John Rockefeller, D-W.Va., also says he will probably offer an amendment strengthening the plan.

Abortion is another issue that could hold the bill's passage up. Sen. Orrin Hatch, R-Utah, is expected to offer an amendment that would put tough restrictions on abortion in the bill. The House's health-care overhaul bill passed on Nov auto loans. 7 only after anti-abortion lawmakers won passage of an amendment that would bar abortion coverage in the public plan. Read more MarketWatch health-care reform coverage.

Reid must also assuage concerns about the bill's cost. On Sunday, Sen. Evan Bayh, D-Ind., said he'd like to see an enforcement mechanism included in the bill to make sure it won't increase the federal deficit. The Congressional Budget Office says that the $848 billion bill will cut the deficit by $130 billion over 10 years.

"I think we need to have an enforcement mechanism in there, as best we can, to ensure that future Congresses will have the backbone to put some of these efficiencies into place," Bayh said on "Fox News Sunday." See earlier story about health-care.

Senators voted 60-39 on Nov. 21 to allow debate on the bill, a close vote that underscored Democrats' need for as much support as possible. To pass the bill, Reid will need the support of all the Senate's 58 Democrats and its two independents. Congressional Republicans have been nearly unanimous in opposition to the bill, saying it amounts to a government take-over of health care.

"There's no way to fix this bill," said Sen. Jon Kyl, R-Ariz., on Sunday. He said Republicans would like to "start over" on the measure.

Senators return to debate health-care overhaul

NANJING, China (Reuters) – The euro zone does not risk the sort of debt problems plaguing Dubai, senior European Union officials said on Sunday.

Dubai was forced to seek a debt standstill last week, rocking global markets and reviving concerns about the fiscal health of some euro zone members, notably Greece.

Luxembourg Prime Minister Jean-Claude Juncker, who chairs the Eurogroup of euro zone finance ministers, said he saw no risk of such a default in the euro area.

European Central Bank Governor Jean-Claude Trichet "entirely" confirmed what Juncker said guaranteed online payday loans.

The two were speaking at a news conference after a day of talks with Premier Wen Jiabao and other senior Chinese officials.

(Reporting by Simon Rabinovitch and Chris Buckley; Writing by Alan Wheatley; Editing by Mike Nesbit)

Euro zone sees no default spillover from Dubai woes

Hot News: China to keep macroeconomic policy stance in 2010 with flexibility

WASHINGTON (Reuters) – Federal Reserve Chairman Ben Bernanke said on Friday congressional proposals to audit the Fed and strip it of regulatory powers as part of post-crisis reforms could damage prospects for economic and financial health in the future.

"These measures are very much out of step with the global consensus on the appropriate role of central banks, and they would seriously impair the prospects for economic and financial stability in the United States," Bernanke wrote in a column posted on the Washington Post&&9;s website.

The rare newspaper column by a Fed chairman comes shortly before Bernanke testifies before a Senate panel on his renomination to serve a second four-year term at the helm of the central bank and answers a series of steps on Capitol Hill that could diminish the central bank&&9;s role.

Lawmakers are angry with the Fed over its emergency bailouts of major financial firms and its failure to prevent the contagion of mortgage delinquencies that crashed the financial system. A proposal to audit the Fed&&9;s monetary policy deliberations won a committee vote recently over the objections of House Financial Services Committee Chairman Barney Frank.

Frank&&9;s Senate counterpart, Banking Committee Chairman Christopher Dodd, is himself the author of a proposal to consign the Fed solely to making decisions about setting benchmark interest rates.

Bernanke, in his column, conceded the Fed had missed some of the riskiest behavior in the lead up to the crisis. But he said the Fed had helped avoid an even more damaging economic meltdown and has stepped up its policing of the financial system.

"The Fed played a major part in arresting the crisis, and we should be seeking to preserve, not degrade, the institution&&9;s ability to foster financial stability and to promote economic recovery without inflation," he said no fax pay day loans.

Bernanke acknowledged that lawmakers are responding to public anger over the government&&9;s response to the turmoil.

"The Federal Reserve, like other regulators around the world, did not do all that it could have to constrain excessive risk-taking in the financial sector in the period leading up to the crisis," he said.

However, the central bank has moved "aggressively" to fix the problems, Bernanke said. The Fed&&9;s knowledge of complex financial institutions is invaluable in supervising them, he said.

The Fed&&9;s ability to slash interest rates to combat a recession without fueling inflation depends on its political independence he said. Allowing audits of its monetary policy -- as proposed legislation would do -- would increase the perceived influence of Congress on interest rate decisions, he said.

That, in turn "would undermine the confidence the public and the markets have in the Fed to act in the long-term economic interest of the nation," Bernanke wrote.

Frank has said the audit provision is likely to be revisited as legislation winds through both houses of Congress.

Dodd has said his proposal is a starting point for debate.

(Reporting by Mark Felsenthal; Editing Bernard Orr)

Audit would hurt economic prospects: Bernanke

Porsche&S217;s $17.2 billion of debt will be mostly eliminated after the sports-car maker completes its merger with Volkswagen, Martin Winterkorn, chief executive of both companies, said Friday.

&S220;By the time the merger is done, the level of more or less zero will certainly be reached,&S221; Mr. Winterkorn said.

Volkswagen and Porsche agreed in August to merge, ending a four-year feud for control. The accord was reached when debt at Porsche tripled to more than 10 billion euros in six months after the company&S217;s failed takeover of VW fast cash loans.

Deliveries by VW this year will &S220;slightly exceed&S221; the record level of 6.23 million vehicles for 2008, Mr. Winterkorn said in Stuttgart, Germany. Porsche will sell more than 76,000 cars in the current fiscal year, he said.

VW Merger Will Cut Porsche Debt