The chairman of the Federal Deposit Insurance Corporation took aim at systematically important banks today—one day after the Financial Stability Oversight Council proposed to designate which financial market utilities (like clearing houses) should be considered systemically important and therefore subject to whole new set of risk management standards under Dodd-Frank.
Congress must do away with “too big to fail” this year and “get serious about establishing a credible, pre-funded resolution authority for giant banks and non-bank financial institutions,” Sheila Bair, chairman of the FDIC, told the Independent Community Bankers of America today at its annual conference.
