Wednesday, April 29, 2009

3 Cheers for Sheila Bair

In a speech on Monday she said, “Taxpayers should not be called on to foot the bill to support non-viable institutions because there is no orderly process for resolving them.” And she was talking about institutions of all sizes, including those that are supposedly too big to fail. She is pushing the "good bank, bad bank" idea and she thinks that the FDIC is equipped to do the job. Why shouldn't it be? It's been doing it since its inception.

If only Geithner were as clear, some of the uncertainty permeating the economy would be lifted.

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