Former FDIC chair warns of next financial crisis

By Staff | September 27, 2016 | Last updated on September 27, 2016
2 min read

Sheila Bair, former chair of the Federal Deposit Insurance Corp., went up against bankers and lobbyists who resisted tougher regulation many times during her five-year tenure (which ran from June 2006 to July 2011), reports Bloomberg.

Near the end of her run, in March 2011, she then stressed in a speech that banks had put consumers at risk and that they were facing a crucial choice, adds Bloomberg. She said banks could either be viewed “as a group that supported the restoration of free enterprise and public responsibility in the American economy, or as a group that mainly looked out for its own short-term interests and resisted reforms that could have restored a sense of confidence” following the crisis.

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Despite her wisdom, notes Bloomberg, Bair faced criticism and doubt.

Still, Bair is speaking up once again and using her position as the 28th president of Washington College to her advantage.

Bloomberg reports, “Just as in 2006 at the FDIC when she foresaw the coming mortgage crisis, Bair sees a potential financial catastrophe looming in her new industry—a generation of overly indebted Americans who will be too weighed down by debt to contribute to the economy, tanking it once again.”

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So what is she doing about it? Click here to find out more about how she’s cutting student debt and making higher education more affordable.


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