Federal Deposit Insurance Corporation

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FDIC’s Bair Urges US Regulation on Global Issue 

May 06, 2009By

Federal Deposit Insurance Corp. (FDIC) chairwoman Sheila Bair today asked a Senate committee on banking to consider a government regulatory framework to monitor global, systemic financial institutions considered “too big to fail.” Bair argued the implementation of Basel II by financial institutions led to procyclicality (not an uncommon claim) and these firms should be subject to higher capital buffer requirements and stricter prompt corrective action under US law.

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