Federal Deposit Insurance Corp. Chair Sheila Bair is criticizing the federal government for giving a much higher priority to bailing out banks than it is to helping average Americans in danger of losing their homes.
"Why there's been such a political focus on making sure we're not unduly helping borrowers, but then we're providing all this massive assistance at the institutional level, I don't understand it," Bair told the Wall Street Journal on Wednesday. "It's been a frustration for me."
Bair also told newspaper editors: "I support all the measures; I've been a part of all the measures that have been taken," Bair added. "But we're attacking it at the institution level as opposed to the borrower level, and it's the borrowers defaulting. That is what's causing the distress at the institution level. So why not tackle the borrower problem?
"Bair’s comments are likely to increase the dissension among architects and critics of the government’s response to the financial crisis.
Source: The Wall Street Journal, Damian Paletta (10/16/2008)
This article is from Realtor Magazine Online Edition Daily Real Estate News for 10/16/08
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