{"id":405069,"date":"2010-03-08T10:57:37","date_gmt":"2010-03-08T15:57:37","guid":{"rendered":"http:\/\/blogs.wsj.com\/economics\/2010\/03\/08\/fdics-bair-outlines-priorities-for-financial-overhaul\/"},"modified":"2010-03-08T10:57:37","modified_gmt":"2010-03-08T15:57:37","slug":"fdic%e2%80%99s-bair-outlines-priorities-for-financial-overhaul","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/405069","title":{"rendered":"FDIC\u2019s Bair Outlines Priorities For Financial Overhaul"},"content":{"rendered":"

Federal Deposit Insurance Corp.<\/strong> Chairman Sheila Bair<\/strong> outlined on Monday three points she said must be part of any financial regulatory overhaul, but said market incentives must also be realigned to make credit markets function properly over the long term.<\/p>\n

\u0093Fixing regulation can only accomplish so much,\u0094 she said in a speech to the National Association for Business Economics<\/strong>. \u0093Rules and regulations can help constrain our \u0091animal spirits,\u0092 but unless economic incentives are also appropriately aligned, regulation alone will fail.\u0094<\/p>\n

Ms. Bair\u0092s three key items for legislation:<\/p>\n

1) Ending \u0093too big to fail\u0094<\/strong> — Should include a pre-funded resolution mechanism and a \u0093clear mandate\u0094 to close large troubled firms that could threaten the broader economy. Shareholders and creditors would bear losses, not the public. \u0093The lack of a resolution mechanism for these companies is not some minor loophole that needs to be closed. On the contrary, it was a fundamental cause of the financial crisis and the enormous economic costs resulting from it.\u0094<\/p>\n

2) Plugging gaps in regulation<\/strong> — Create a systemic risk council to share data and knowledge about financial markets.<\/p>\n

3) New consumer protections <\/strong>– Create uniform regulatory standards for banks and nonbanks and ensure customers are well-informed<\/p>\n

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Federal Deposit Insurance Corp. Chairman Sheila Bair outlined on Monday three points she said must be part of any financial regulatory overhaul, but said market incentives must also be realigned to make credit markets function properly over the long term. \u0093Fixing regulation can only accomplish so much,\u0094 she said in a speech to the National […]<\/p>\n","protected":false},"author":850,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-405069","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/405069","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/850"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=405069"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/405069\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=405069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=405069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=405069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}