In a large saucepan over medium high heat, combine the ground beef, onion and bell peppers. Saute for about 5 minutes, or until beef is browned. Drain excess fat.
Add the chili powder, garlic, bay leaf, cumin, chile peppers, tomatoes, tomato sauce and salt and pepper to taste. Bring to a boil and reduce heat to low. Cover and simmer for 1 1/2 hours, stirring occasionally. Stir in the beans and heat through.