FDIC chief knocks bailout package
By Andrew Coen
October 16, 2008, 3:24 PM EST
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The $700,000 billion financial services industry bailout plan has a critic in Federal Deposit Insurance Corp. chairwoman Sheila Bair, who said yesterday the initiative does not do enough to prevent Americans from losing their homes, The Wall Street Journal reported today.
“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,” she told the Journal.
“It's been a frustration for me.”
Ms Bair’s comments came amid tensions among economic officials, particularly Treasury Secretary Henry Paulson and Federal Reserve Board Chairman Ben Bernanke, on how best to solve the financial crisis, the story said, citing people familiar with the matter.
Ms. Bair was appointed FDIC chairwoman on June 26, 2006, for a five-year term ending in 2013.
The FDIC press office did not immediately return a call seeking comment.
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