Bair vs. Bernanke
I have complained in this blog about a lot of the decisions made by Sheila Bair, but I have to give here a hand for this one. She apparently told Bernanke that she didn't like the Merril deal. Of course, it didn't matter, but as we find out more and more about the kind of backroom lies and manipulation that went on during that affair, it's good to know that at least Bair had taxpayers and depositors' backs.
The memo today also showed that Federal Deposit Insurance Corp. Chairman Sheila Bair opposed the agency’s role in backstopping the $118 billion agreement.
“Dear Ben, Strong discomfort with this deal at the FDIC, for all the reasons you and I have discussed,” Bair said in a Jan. 14 e-mail, according to the memo. “My board does not want to do this and I don’t think I can convince them to take losses beyond the proportion of assets coming out of the depository institutions.”