Federal Deposit Insurance Corp. Chairman Sheila Bair said in an interview with PBS on Friday the government’s decision to buy capital in banks during the financial crisis was — in retrospect — not a good idea, because of all the problems that have ensued. Bair “I just see all the problems it’s created now,” she said in an interview with PBS economics correspondent Paul Solman. “The horrible public... [more]
Federal Deposit Insurance Corp. Chairman Sheila Bair said in an interview with PBS on Friday the government’s decision to buy capital in banks during the financial crisis was — in retrospect — not a good idea, because of all the problems that have ensued.
Bair
“I just see all the problems it’s created now,” she said in an interview with PBS economics correspondent Paul Solman. “The horrible public outcry — it’s had a terrible, terrible impact on public attitudes towards the financial systems, towards the regulatory community. It’s created all sorts of issues about government ownership of these institutions. What happens if they get in trouble again? Do we contain the bonuses and the compensation because they are partially taxpayer owned, which might make things worse because they can’t bring in new and better management, which in some cases might be necessary.”
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Response by Riversider
about 16 years ago
Posts: 13572
Member since: Apr 2009
“If any individual institution gets into trouble again and a conventional bankruptcy process would pose collateral damage to us, the rest of us, it should be put into a special resolution process just as we do with banks now,” Bair said. “It should be broken up and sold off.”
“If any individual institution gets into trouble again and a conventional bankruptcy process would pose collateral damage to us, the rest of us, it should be put into a special resolution process just as we do with banks now,” Bair said. “It should be broken up and sold off.”