Bernanke admits concern over monolines

The threat of a downgrade to some of the biggest monoline insurers impacting the banking industry is forcing the Federal Reserve to monitor developments closely, a letter from Ben Bernanke, the chairman of the Federal Reserve, reveals.

In a letter to Paul Kanjorski, a United States congressman, released on Thursday night, Bernanke said: "Given the adverse effects that problems of financial guarantors can have on financial markets and the economy, we are closely monitoring developments."

The mo