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Monday, April 07, 2008

FDIC Chairwoman Urges Activism, Expresses Concern

by Calculated Risk on 4/07/2008 10:41:00 PM

The WSJ has some excerpts from FDIC Chairwoman Sheila Bair's speech tonight: FDIC Chairwoman Calls for Activism.

“We’ve got a real problem. And I do think we need to have more activist approaches. And I think it will be something we need to be honest with the American public about. We do need more intervention. It probably will cost some money.”
On CRE and bank failures:
Regulators are “increasingly concerned” about the risks posed by high concentrations of commercial real estate loans at banks, especially at financial institutions with between $1 billion and $10 billion in assets.
And on lending standards:
“These internet originators have been a problem too…it’s unbelievable to me they are back already. When I go on my AOL account over the weekend I’m seeing no-doc, low-doc, ‘bankruptcy okay,’ a $200,000 loan for $800 a month. They are back. It is just amazing to me.”
A transcript isn't available yet.