Federal Reserve Board chairman Ben Bernanke said he is dismayed by the persistence of high foreclosure rates, declining home values, and the futility of government efforts to engineer a recovery in the housing market.

The Fed chief told the Senate Banking Committee that the Treasury Department has been very innovative in devising loan modification and other programs to address foreclosures. "There have been sincere government efforts to address the problem but they run into lots of bureaucratic and other difficulties," Bernanke testified Friday morning.

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