Ex-Fed Chair Bernanke shares Nobel for bank failure research

By DAVID KEYTON, FRANK JORDANS and PAUL WISEMAN
Associated Press

STOCKHOLM (AP) — This year’s Nobel Prize in economic sciences has been awarded to former U.S. Federal Reserve Chair Ben Bernanke and two other U.S.-based economists. Bernanke, Douglas W. Diamond and Philip H. Dybvig were recognized Monday for their research into the fallout from bank failures. The Nobel panel at the Royal Swedish Academy of Sciences in Stockholm said the trio’s research had shown “why avoiding bank collapses is vital.” The panel says that the findings of the three in the early 1980s laid the foundations for regulating financial markets and dealing with financial crises.