Sheila Bair, chairman of the Federal Deposit Insurance Corporation (FDIC) appeared on CNBC this morning to discuss TARP, failing banks, toxic assets, and why banks should adhere to the FDIC's request for a three-year prepayment program of agency fees.
Bair stated that banks will likely lag any economic recovery for a few quarters. She also backed both President Obama's proposed consumer protection agency and the creation of a regulatory oversight council. This is in stark contrast to Ben Bernanke's support for maintaining a Super-Fed.
"We think we need a system of risk council made of all the regulators that has rule making authority that can set higher standards to serve as a check on regulatory capture when an individual regulator isn't doing their job. And we also are very strongly supportive of the consumer agency and I think on a broad parameter there is a lot of overlap and agreement between the FDIC, the Fed, and the Treasury," said Bair.