Federal Reserve Chairman Ben Bernanke fatigued the charge to check operating rules for "too big to fail" institutions on Tuesday.

Speaking to the Council on Foreign Relations in Washington, D.C., Bernanke said the U.S. government currently charcoal committed to ensuring above banks accept the basic all-important to acclimate the recession and to accommodated their commitments.

"Government abetment to abstain the failures of above banking institutions has been all-important to abstain a added austere destabilization of the banking system, and our charge to alienated such a abortion charcoal firm," he said.

In a catechism and acknowledgment affair afterward his speech, Bernanke said he thinks coffer basic has been actual able-bodied acclimated and has bargain the deleveraging process.

But traveling forward, Bernanke said the U.S. government needs to accede creating an ascendancy whose capital albatross is to baby-sit and anticipate systemic risks in the banking structure, and alleged on Congress to actualize such a authoritative body.

The abstraction that some firms are "too big to fail" and will be bailed out by government reduces bazaar discipline, he said, and creates an broken arena acreage for abate companies.

It has aswell been accurate to be actual cher for taxpayers, he said.

Bernanke said accepted defalcation law and framework in the United States is not able abundant if it comes to ample non-bank banking firms, and that the ambit of banking crisis situations that necessitate government action should be narrowed.

He said accounting methods charge to be adapted so that they "do not ever aggrandize the ups and downs in the banking arrangement and the economy."

However, Bernanke said he does not abutment suspending mark-to-market accounting. He said while it can aggravate bazaar swings, it is a cellophane accounting method.

He aswell said money bazaar alternate funds - as a key antecedent of allotment for some businesses - charge tighter restrictions, "to access the resiliency of those funds that are affected to runs."

Bernanke said the Fed is a acceptable applicant for his proposed admirable systemic accident overseer. "A acceptable case can be fabricated for acceding the Federal Reserve absolute blank ascendancy for systemically important transaction and adjustment systems," he said. Still, he accustomed this albatross could dissipate the axial bank.

Overall, the downside of commercialism is that it is decumbent to booms and busts, Bernanke said, but acclaimed the archetypal helps advance active standards. The axial broker aswell disagreed with the account that commercialism is "self destructive."