The Care Bair Loves TBTF, Says Don't Break Them Up
Sheila, WTF?! I'm going to have to start capping on your ass now, come on, we were cool up until this point.
A top U.S. bank regulator on Tuesday said lawmakers need to be careful about moving forward with a proposal that could break up the largest financial institutions, while also voicing support for its objective.
Sheila Bair, chairman of the Federal Deposit Insurance Corp, said the proposal from Democratic Representative Paul Kanjorski is "a well-intentioned amendment."
Kanjorski, whose amendment got approved by a House of Representatives committee last week as part of a bigger financial reform bill, has proposed giving the government power to break up financial firms that could threaten financial stability, even if they appear healthy.
"We share the same goal of ending 'too big to fail' and making sure that institutions cannot imperil the broader economy," Bair told reporters during the FDIC's quarterly bank earnings briefing.
But she also cautioned, "We need to be careful. I think there is a safety and soundness issue."
Bair has been a vocal advocate of ending notions that some financial institutions are too big to fail, and that the government will bail them out if they become insolvent.
Her opinions are influential with lawmakers, who have lauded her for issuing early warnings about subprime loans and for pushing aggressively for mortgage modifications.
She stopped short of giving outright support to Kanjorski's amendment. International regulators are looking at similar proposals, and European Union officials have said they will turn the spotlight on 28 European banks bailed out by governments for possible mandated divestitures.
That's because Sheila Bair will never have to separate Citigroup's art collection from its toxic assets. She doesn't give a shit if the Treasury has to cover the next 15 failed banks in Georgia, what can she do? TBTF isn't her problem, she's got to figure out how to make it look like they still have this thing under control. The Big 87654 and Co. will be happy to keep things rolling as long as she can, who cares about Bank of America? Tim Geithner and this administration have shown repeatedly that they aren't afraid to step in and with Zimbabwe Ben as their bailout fluff boy (like he was to crooked pinky Hank Paulson), they're golden.
BTW, speaking of ZB, we have a shared birthday coming up. I'm sending you a card, motherfucker. With love. I did your horoscope before on Seeking Alpha so you know I have your number. I've seen that crooked tie, don't try to play with me.
I'll save you a cupcake just because I'm nice.