Deeds, Not Words

You'll excuse me if I laugh out loud at this proclimation from the FDIC's Sheila Bair.

Ending the idea that large financial institutions are “too big to fail” is a top priority under the Obama administration’s regulatory reform proposal, said Sheila Bair, chairman of the Federal Deposit Insurance Corp.

“Clearly, there has been moral hazard and lack of market discipline fed by the 'too big to fail' doctrine, and this in turn has been fed by the lack of resolution mechanism that really works for very large financial organizations and this has been a central focus of ours,” Bair said in an interview on CNBC.

President Barack Obama's sweeping plan to reform financial regulation, which was unveiled on Wednesday, included a proposal to make the FDIC the resolution authority responsible for unwinding troubled financial firms.

Well then, why the hell are you giving these banks trillions of dollars that they'll never pay back, guys? You do realize the only way to end "too big to fail" is to break up the banks that are too big to fail, yes?

Start swinging that axe then. Otherwise, you have nothing I want to hear, madam.