Former FDIC Chair Sheila Bair said Thursday she believed Europe was heading into a recession, but she sounded confident about U.S. banks.
Sheila Bair, Pew Charitable Trusts and former FDIC chairman, discusses Europe's debt problems and says she doesn't see any sudden shocks out of Europe but the banks should have mandated higher capital. Also, the Fast Money traders weigh in on U.S. banks and whether the recent rally indicates banks are stable.
In the panicky days of September 2008, a kind of conventional wisdom grew up in the minds of almost all of the Serious People. The failure to "rescue" Lehman Brothers, according to the Con Wiz, was an especially bad mistake on the part of regulators. The government should have arranged a distressed sale by back-stopping Lehman's assets against losses.
A controversial new rule that will require banks to retain risk on the mortgages they securitize will help bring back investor confidence in the market, FDIC chair Sheila Bair told CNBC Monday.
Credit quality and earnings are strengthening, meaning the banking sector is on the upswing, FDIC Chairman Sheila Bair said Tuesday.