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Sheila Bair

All articles tagged with #sheila bair

finance1 year ago•6 min saved

"2023 Banking Concerns and the Potential for Another Regional Crisis"

Former FDIC Chair Sheila Bair discusses New York Community Bancorp's (NYCB) recent troubles, highlighting concerns about the banking sector's vulnerability to commercial real estate issues and the potential for more bank failures. Bair emphasizes the need for the Biden administration to reinstate the FDIC's authority to provide temporary emergency expanded deposit guarantees to address the risk of uninsured deposit runs, and suggests that consolidation among regional banks could be a solution to potential turbulence in the sector.

via Yahoo Finance|

#banking-sector #biden-administration #commercial-real-estate

finance2 years ago•1 min saved

Former FDIC Chair Sheila Bair warns of irrational market optimism sparked by potential rate cuts by the Fed

Former FDIC Chair Sheila Bair warns that market optimism over potential interest rate cuts next year is dangerously overdone, suggesting that Federal Reserve Chair Jerome Powell's dovish stance at last week's policy meeting has created "irrational exuberance" among investors. Bair believes the focus should still be on inflation and worries that the Fed is pivoting towards recession concerns prematurely. Despite the Fed's expectation for at least three rate cuts next year, the market's bullish reaction is seen as temporary, and Bair cautions against significant rate reductions in 2024. She highlights sticky spots in prices for services and rental housing, as well as concerns about deficit spending, trade restrictions, and an aging population contributing to inflation pressures.

via CNBC|

#federal-reserve #finance #inflation

finance2 years ago•2 min saved

Insights from Former FDIC Chair on Regional and Global Banking Systems

Former FDIC chief Sheila Bair warns that the focus on regional banks as the only source of worry for potential fallout from the Federal Reserve's rapid pace of interest-rate hikes in the past year is "counter productive". She argues that all banks, regardless of size, need to be mindful of interest-rate risk and how it is being managed. The recent collapse of Silicon Valley Bank and Signature Bank highlights the risk confronting all banks. Bair has been calling for a pause on Fed rate hikes since December, warning that a financial crisis could have catastrophic consequences.

via MarketWatch|

#bank-failures #federal-reserve #finance