Former FDIC Chair Speaks Out Against SVB ‘Bailout,’ Says Biden Admin Overreacted
Sheila Bair, former chair of the Federal Deposit Insurance Corporation (FDIC), has criticized the Biden administration’s decision to guarantee all deposits at the failed Silicon Valley Bank (SVB), labeling it an “overreaction.”
Bair said during a recent appearance on “The Washington Post Live” series that insuring all deposits at SVB and at the failed Signature Bank was an unnecessary “bailout” that would be paid for by extra fees on all banks, even well-run community and regional banks.
The former FDIC chief also threw cold water on proposals to waive the current $250,000 deposit insurance lid and for the FDIC to provide unlimited guarantees for all deposits across the entire $17.5 trillion U.S. banking sector….