July 25, 2012

Sheila Bair On Bankers

Sheila Bair on bankers at Forbes.
That is the way Bair prefers it, arguing that regulators and authorities should go after the individuals responsible, including management. “Leaving these folks penniless or in jail would be more of a deterrent” than settlements that tap company coffers but do little to the employees at fault, she argues. 
Given the current complexity, the too big to fail set is difficult to manage from the top down, a flaw most recently exposed by the JPMorgan trading loss, Bair says. It can also camouflage unprofitable businesses, and stops shareholders from fully understanding how firms are structured. 
 More transparency on all fronts would go a long way, she adds, letting the market “do what it does best” by punishing firms that cannot be effectively supervised.

Tags: sheila bair on bankers, sheila bair forbes, sheila bair fdic