Extend Fed's regulatory power: Volcker

The Federal Reserve's role as a financial regulator must be expanded given its recent assistance to Bear Stearns and other investment banks, Paul Volcker, a former chairman of the Fed, said.

Volcker told the US Congress's Joint Economic Committee on Tuesday that the "natural corollary" of the Fed's bailout of Bear Stearns and the extension of eligibility for discount-window lending to investment banks was to make the central bank responsible for supervising such institutions.

"It seems inevit