Bernanke support grows; key senator sees approval

WASHINGTON (Reuters) - The U.S. Senate looked likely to grudgingly approve Ben Bernanke to a second term as Federal Reserve chairman this week after the White House stepped in to defend his crisis-fighting record and rally votes.

A Reuters poll showed 36 senators were either committed to approving the nomination or leaning that way, while 17 were outright opposed or inclined that way. Senate leaders need to secure a super-majority of 60 votes in the 100-member chamber to overcome efforts by some senators to block the nomination.

Senator Richard Durbin, the assistant Democratic leader, said he thought that with some Republican support, there would be enough votes to consider and approve Bernanke''s nomination.

"He is battle-tested and I think that we need his steady hand and his good mind to bring us forward out of this recession to a growing economy," Durbin said after meeting with Bernanke on Monday.

What had looked like a sure thing was thrown into doubt last week when it became clear a growing number of senators would not support Bernanke, citing his handling of Wall Street bailouts.

While a number of senators said on Monday they would back the nomination, Durbin said votes were still being counted and some well-respected lawmakers, including Republican Senator John McCain, said they would stand in opposition.

Bernanke "must be held accountable for many of the decisions that contributed to our financial meltdown," said McCain, the Republican party''s presidential candidate in 2008.

Bernanke''s first four-year term as chairman expires on Sunday. If he is not confirmed, the Fed''s Vice Chairman Donald Kohn is poised to take over on an acting basis.

BAILOUT ANGER

The Fed has become a prime target of public outrage as the U.S. unemployment rate has hit 10 percent while Wall Street profits -- and bonuses -- soared. Many voters saw that as evidence of an economic policy that favored Wall Street over Main Street.

That anger was on full display last week when voters handed Democrats an embarrassing defeat in a special Senate election in Massachusetts, which had been a Democratic stronghold for decades. That left Democrats one vote short of the 60 needed to clear Republican legislative roadblocks.

It also prompted some senators, mindful of their own November elections, to think twice about backing Bernanke.