Bair Backs Higher Capital Requirements

Sheila Bair, the chairman of the Federal Deposit Insurance Corp., has called for even higher capital requirements on large financial firms until they can present “a resolution plan [that is] credible,” reports Reuters.

Sheila Bair, the chairman of the Federal Deposit Insurance Corp., has called for even higher capital requirements on large financial firms until they can present “a resolution plan [that is] credible.” In prepared testimony presented to the Senate Banking Committee, Bair, who is stepping down in July, also said regulators should request detailed information from firms that potentially could be labeled systemically important, even if in the end they are not designated as such.

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