FDIC's Bair: 'too big to fail' strategy must end

[TacticalPeek]

Source: AP

FDIC's Bair: 'too big to fail' strategy must end

20 minutes ago

WASHINGTON (AP) — The head of the Federal Deposit Insurance Corp. says the government's strategy in the financial crisis of bailing out huge institutions deemed "too big to fail" must be replaced by a new model.

In testimony prepared for a Senate hearing, FDIC Chairman Sheila Bair says a new system of supervision that prevents institutions from taking on excessive risk and becoming so large their failure would threaten the financial system is needed. She says a mechanism is needed to resolve troubled financial institutions similar to what the FDIC does with federally insured banks and thrifts.

Read more: http://www.google.com/hostednews/ap/article/ALeqM5h-aE6m0UN15vha82O8oB1EGUD2PwD9715MVG0

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Sheila Bair for Treasury Secretary!

[Eric J in MN]

1. Hell yes. Too big to fail = too big to exist.

Keep corporations small enough that few would argue that any of them are too big to fail.

And ban "credit default swaps."

[dkf]

2. How is she going to dismantle the banks?

Is she going to require them to sell branches?

Or is she going to recommend reinstating Glass Steagall?

Its ironic she was the one who wanted Citi to buy Wachovia. That was a disaster in the making. Crazy.

[acmavm]

3. Well there goes their convenient excuse for handing the crooks

and criminals the last of our money.

What will theyd do now? I'm sure it'll be as inventive as the 'too big to fail' whopper.

[bemildred]

4. This is why we have anti-trust laws.

Soembody needs to explore why those laws are no longer enforced.