Sheila Bair, chairman of the Federal Deposit Insurance Corporation, on Monday said that large financial institutions should pay an upfront levy for the costs of their failure, although she signalled willingness to compromise. As regulatory reform talks grind towards a conclusion in the Senate, Bair told the FT that she was still pushing for a pre-funded “resolution authority” to wind down the next Lehman Brothers-style failure, even though the biggest banks faced an additional $90bn tax announced by President Barack Obama.

This entry was posted by Gwen Robinson on Tuesday, March 9th, 2010 at 5:18 and is featured in The 6am Cut London (9 Mar 2010) . Tagged with fdic, Lehman Brothers, levy, Sheila bair. Edit this entry.