Thinking it’s no panacea, the chairman of the Federal Deposit Insurance Corp or FDIC Sheila Bair expressed her disagreement with the plan to merge regulators to create a national banking regulator. In a testimony prepared for a Senate Banking hearing today, she writes:
“Proposals to create a unified supervisor would undercut the benefits of diversity that are derived from the dual banking system. Political capital could be better spent on more important and fundamental issues which brought about the current crisis.”
She also said the merger of agencies might lead the needs of community banks relying on state supervision to be missed.
More on this Bloomberg report HERE.