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FDIC . . . For Doing It Correctly

Posted by Larry Doyle on March 19, 2009 2:41 PM |

Sense on Cents is very judicious in selecting our Economic All-Stars (highlighted in the left sidebar). These individuals continually display a level of professionalism, maturity, consistency, and integrity which are not commonly found in our financial or political spectrum. I deeply appreciate their insights and perspectives and enjoy sharing them with our audience at Sense on Cents and No Quarter USA.

I thank Susan and Andy for tipping me off to remarks made earlier today in which Sheila Bair Says “Too Big to Fail” Strategy for Financial Institutions Must End. The administration and other political pundits  are trying to make the case that the Federal Reserve should serve as the systemic risk regulator. In my opinion, Sheila Bair should occupy that role. There is a major political battle developing over this turf.  Make no mistake that how this battle plays out will have deep and longstanding implications for our financial system as a whole and for individual consumers.

My vote goes to Ms. Bair and the FDIC, “for doing it correctly” to this point. The U.S. Systemic Risk Watchdog Not Panacea highlights the developing battle between the FDIC and the Fed. Both of these entities have a lot on their plate already, but I believe the FDIC is better positioned to handle this role. Bair and team are laser focused on banking institutions, while the Fed is more broadly focused on the economy, money supply, and the markets.

In recent discussions with a number of colleagues, the topic of the dramatically changing landscape in the world of banking keeps coming up. For many individuals, banks and banking operations can generate a fair amount of anxiety. In the process of praising Ms. Bair, I would like to use that as an opportunity to personalize the world of banking highlighted at the FDIC website.    

This site addresses Deposit Insurance, Consumer Protection, Industry Analysis, Asset Sales, Regulations and Examinations, and News and Events. The world of banking does not need to be overwhelming. The opportunities to properly manage your finances, find solid investment opportunities, and navigate the economic landscape are a mere point and click away. Anything you do not understand, bring it right back to Sense on Cents!! 


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