FDIC Chairman: Agency Should Have Expanded Powers
FDIC Chairwoman Sheila Bair said today that her agency should have the power to close bank holding companies, insurers and other large financial institutions -- not just commercial banks.
The comments came during a speech she gave today before the Economic Club of New York. According to Bloomberg, this is the first time she's said that she wants that authority, which some argue should rest with the Federal Reserve.
Bair said that the lack of an orderly process for unraveling some of the country's massive financial firms has created a misperception that some companies are "too big to fail" -- an idea that she said should be "tossed into the dustbin." She said taxpayers are now left footing the bill.
You can read her full speech on the FDIC Web site.
-- Ylan Q. Mui
April 27, 2009; 4:37 PM ET
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