06/15/2010 05:12 am ET Updated May 25, 2011

Sheila Bair, FDIC Chief: Reform Bill Will Make Bailouts 'Impossible'

Would this bill perpetuate bailouts?
SHEILA BAIR: The status quo is bailouts. That's what we have now. If you don't do anything, you are going to keep having bailouts. Bankruptcy doesn't work -- we saw that with Lehman Brothers.

But does this bill stop them from happening?
BAIR: It makes them impossible and it should. We worked really hard to squeeze bailout language out of this bill. The construct is you can't bail out an individual institution -- you just can't do it.

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