EPS Trustee Sheila Blair on regional bank rescues and the FDIC in the Financial Times

Sheila Blair shares her opinion that the FDIC should have more flexibility rather than being compelled to chose the ‘least cost’ option. Blair is a former chair of the US Federal Deposit Insurance Corporation and a senior adviser to the Systemic Risk Council

We frequently shop at local stores because we recognise the social costs of letting the big chains take over, even if they offer cheaper prices. There are also social costs when the Federal Deposit Insurance Corporation is forced, by law, to sell failed banks to multi-trillion-dollar mega banks who can offer a better price than smaller bidders. These banks are already too dominant in our banking system. We should try to avoid making them bigger. 

Read the full piece on the Financial Times website: https://www.ft.com/content/e1ce2ba6-89e3-4132-8061-02120cf8165d?segmentId=b385c2ad-87ed-d8ff-aaec-0f8435cd42d9