Sheila Bair attacks banks 'aiming to escape reform'

4 November 2009

Sheila Bair, the head of the Federal Deposit Insurance Corporation (FDIC), has attacked those in the financial sector she believes are fighting against reform.

In a lecture at Kansas State University, Ms Bair said that she supported the formation of new agency that would oversee consumer financial protection issues.

She struck out against critics of the scheme who have said that such a move would hinder innovation, reports AP.

"Some want us to keep the status quo and by extension they want to keep the taxpayer on the hook," she said.

"That makes me angry."

In her role as FDIC chairman Ms Bair has overseen the closure of more than 100 banks this year and she stated that she believes the closures will not peak until after 2010.

Last week, she said that financial institutions on Wall Street should only be known as banks if they actually take customer deposits and offer guarantees.

By Tony Aynsley

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