Related: FDIC Preparing For Massive Bank Failures
Why else would she be talking like this if we are on the rebound, 'eh?
"FDIC chief seeks to expand reach" by Alison Vekshin, Bloomberg News | April 28, 2009
NEW YORK - Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., is seeking authority to close "systemically important" financial firms, marking her boldest attempt yet to expand the agency's reach.
The FDIC should be able to take over and shut bank holding companies, insurers, and other large institutions instead of just failed commercial banks, Bair said in a speech at the Economic Club of New York.
Related: FDIC Fascism
FDIC, Fed, whoever it is, citizens and taxpayers end up paying for it all.
That would shield taxpayers from absorbing losses when government protects companies that are deemed "too big to fail," a concept that should be "tossed into the dustbin," she said.
Well, the Fed doesn't agree with you. Don't fly in any small planes, Sheila.
And I don't think the FDIC would sheild taxpayers; banks would simply pass along the costs. In fact, they already are.
"The FDIC is up to the task, and whether alone or in conjunction with other agencies, the FDIC is central to the solution," Bair said. "Given our many years of experience resolving banks and closing them, we're well suited to run a new resolution program."
The speech represented the first time Bair has said she wants the new power, countering arguments that the Federal Reserve is best equipped to manage such authority as Congress prepares to address the issue this year....
Yup, this is the year the globalists re making their final putsch, 'er, push.
The absence of appropriate authority "has contributed to unprecedented government intervention into private companies," Bair said. "Taxpayers should not be called on to foot the bill to support non-viable institutions...."
Like GM?
Bair recommended exercising new authority under a "good bank-bad bank" model, in which the government would take over troubled companies and force stockholders and unsecured creditors to pay the costs.
The model scares me: Trillion Dollar Toxin Brings Wall Street to Life
However, I must say I like her ideas better than the Fed
Viable portions of the company would be put into the good bank, while the ailing portions would remain at the bad bank to be sold or closed over time, Bair said.
The costs imposed on the stockholders and unsecured creditors and fees collected from other "systemically risky" firms would pay for the bad bank, Bair said. "This has the benefit of quickly recognizing the losses in the firm and beginning the process of cleaning up the mess," she said.
Bair's request also conflicts with remarks made last week by fellow regulator John Dugan, who heads the Treasury's Office of the Comptroller of the Currency, which supervises national banks. The Federal Reserve "is the logical choice" for the new authority, Dugan said in a speech last week.
I'm liking her more by the second!
The American Bankers Association has also challenged the idea of giving new authority to the FDIC, saying the agency's mission would be jeopardized, while banks may bear unnecessary costs.
--more--"
Well, some will: Small Banks to Bailout Wall Street
By the end of the piece, with all the forces arguing against her, maybe she should be given a chance. Banks and investors should pay for this debacle since they created it! They've looted enough.
