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THURSDAY, NOVEMBER 26, 2009
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Homeowners Need Bailout, Too: FDIC Chief

Regulator clashes with Paulson, Bernanke over relief for lenders

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(Newser) – The FDIC chief is blasting the White House and Congress for focusing the $700 billion bailout on financial institutions and not giving homeowners facing foreclosure more help, reports the Wall Street Journal. Sheila Bair, a Bush appointee, says the government’s insistence that homeowners not profit from its help—while appearing unconcerned about institutional profiteering—has been “a frustration.”

A White House spokesman said the legislation "does a lot for homeowners," but the increasingly powerful regulator has been sounding the alarm over foreclosures for months. "Why there's been such a political focus on making sure we're not unduly helping borrowers but then we're providing all this massive assistance at the institutional level, I don't understand it," Bair said.

FDIC chair Sheila Bair testifies on Capitol Hill in Washington, Thursday, Jan. 31, 2008.
FDIC chair Sheila Bair testifies on Capitol Hill in Washington, Thursday, Jan. 31, 2008.   (AP Photos/Susan Walsh)
Federal Deposit Insurance Corp Chairwoman Sheila Bair
Federal Deposit Insurance Corp Chairwoman Sheila Bair   (AP Photo/Haraz N. Ghanbari)
Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke listen as FDIC Chairman Sheila Bair speaks during a press conference at the Treasury Department, Tuesday, Oct. 14, 2008.
Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke listen as FDIC Chairman Sheila Bair speaks during a press conference at the Treasury Department, Tuesday, Oct. 14, 2008.   (AP Photo/Gerald Herbert)
Federal Reserve Chairman Ben Bernanke, and Treasury Secretary Henry Paulson arrive for a press conference at the Treasury Department in Washington, Tuesday, Oct. 14, 2008.
Federal Reserve Chairman Ben Bernanke, and Treasury Secretary Henry Paulson arrive for a press conference at the Treasury Department in Washington, Tuesday, Oct. 14, 2008.   (AP Photo/Gerald Herbert)
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Why there's been such a political focus on making sure we're not unduly helping borrowers but then we're providing all this massive assistance at the institutional level, I don't understand it."
- FDIC Chief Sheila Bair

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FDIC chief calls for "smarter regulation"
Wall Street Journal Subscription

Text of Tuesday's statement by Bair, Paulson, Bernanke
MarketWatch

Bernanke pushes for FDIC to play beefed-up role
Bloomberg


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Ben Bernanke • Henry Paulson • FDIC • housing crisis • subprime crisis • bailout • financial crisis • Wall Street bailout • Sheila Bair

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