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Bernanke: Tough Rules, Enforcement Needed to Prevent New Financial Crisis

The head of the U.S. central bank says the bank will strictly enforce new rules to prevent another financial crisis like the one that has disrupted the global economy for the past two years.

Federal Reserve Chairman Ben Bernanke spoke to the Financial Crisis Inquiry Commission in Washington on Thursday.

He said the most important lesson of the financial crisis is the need for an orderly way to shut down failing firms that are so big that they could damage the overall financial system if they collapse.

Bernanke also said there is too little evidence to blame low interest rates for the inflated housing prices that played a major role in the crisis.

The commission is nearing the end of a year-long investigation into what caused the financial crisis, and how to prevent a future one.

Some information for this report was provided by AFP, AP and Reuters.