In Sheila we trust.
Maybe that should be the new mantra for U.S. taxpayers — especially ones who don’t feel the nation’s bankers have shown sufficient gratitude for being bailed out and saved from their own incompetence and greed.
Last week Tim Geithner dropped multiple F-bombs in a meeting with regulators unenthusiastic about his plan to concentrate oversight of the financial system at the Fed. Sheila Bair was one of his targets, but today she held her ground. In testimony before the Senate Banking Committee this morning, she had this to say about concentrating regulatory power at the Fed:
FDIC Chairwoman Sheila Bair is right now testifying in front of the Senate Banking Committee on "establishing a framework for systemic risk regulation." This is of course hugely important. How do we end "too-big-to-fail?" And how do we resolve failures that are so big they pose a systemic risk?