“The chairwoman of the Federal Deposit Insurance Corporation, Sheila C. Bair, said in a speech on Monday that her agency should have broader powers to take over and close a variety of financial institutions to prevent taxpayers from shouldering the losses on firms deemed too big to fail. Instead of just seizing commercial banks, Ms. Bair said the F.D.I.C. should be able to take over troubled insurers, bank holding companies and other insolvent financial institutions and force stockholders and bondholders to bear the cost.” (New York Times, Tuesday)
Beware expansion of power in the name of protecting taxpayers.
FEE Timely Classic
“The Awesome Powers of Government” by Murray Weidenbaum