Entries in Sheila Bair (3)


FDIC Chairman Bair to Step Down July 8

FDIC(WASHINGTON, D.C.) -- The Federal Deposit Insurance Corporation announced Monday that Charmain Sheila Bair will step down from her post on July 8.

Bair's term officially ends on June 30, but she will stay on an extra week to vote on "living wills" in a board meeting. Living wills would require financial firms with upwards of $50 billion to report their debts, cash flows, and funding.

President Obama will need to appoint a new chairman of the FDIC, along with a new head of the Consumer Financial Protection Bureau. Bair has said that she plans to pen a book and make up for lost time with her family.

Copyright 2011 ABC News Radio


FDIC: 'Problem List' on the Rise to 884 Institutions

Photo Courtesy - ABC News(WASHINGTON) -- At a press conference Wednesday, the FDIC released its fourth quarter and year-end 2010 earnings report for FDIC-insured institutions. 

The FDIC reported 157 insured commercial banks and savings institutions failed in 2010, marking the largest annual number of bank failures since 1992 when the FDIC saw 182 failed institutions.  In the fourth quarter of 2010, the FDIC added 24 institutions to the “Problem List,” raising the number of institutions on the list to 884.

Despite this increase in troubled financial institutions, FDIC Chairman Sheila Bair called 2010 a “turnaround year” for the industry after it experienced four straight quarters of positive earnings. The full-year net income for banks tallied at $87.5 billion, the highest full-year earnings since 2007. 

“While earnings in 2010 remain well below pre-crisis levels, the past year marked a significant milestone on the road to recovery,” Bair said. 

The FDIC reported banks earned $21.7 billion in the fourth quarter of 2010, compared to a $1.8 billion net loss in the fourth quarter of 2009.

Revenue growth was consistent compared to previous years but remained sluggish due to a lack of “upward momentum.”  Net operating revenue in 2010 was $163.5 billion, only $2.8 billion higher than the previous year.

“A key reason why revenues haven’t grown faster is that loans have not been growing,” Bair said.

Bank lending decreased for the ninth time in 10 quarters.  Total loan and lease balances fell $13.6 billion in the final quarter of 2010 with lending in real estate construction and development, non-credit card consumer loans, and home equity lines of credit shrinking.  Banks cut loan-loss provisions by $31.6 billion in the fourth quarter.

Copyright 2011 ABC News Radio


Bernanke: Expect Three- to Four-Percent Growth in U.S. Economy in 2011

Photo Courtesy - Alex Wong/Getty Images(WASHINGTON) -- Fed Chairman Ben Bernanke said the economy will see a three- to four-percent growth in 2011, but it will not hasten the reduction in unemployment.

“We see the economy strengthening. It’s looked better in the past few months,” Bernanke said.  “We think a three- to four-percent growth number for 2011 seems reasonable.”

“That’s not going to reduce unemployment at the pace that we’d like it to, but certainly, it’d be good to see the economy growing and that means more sales, more business.”

Bernanke’s comments came at a small business forum where he discussed topics ranging from the availability of credit to small businesses to the need for prudent banking.

“We got in trouble in the first place by making too many bad loans, right. So you’ve got to make good loans.  We’ve got to have credit worthy borrowers.”

In regards to the housing market, Bernanke said it would be a slow and steady process to restore stability to the residential mortgage market.

“It’s not going to happen overnight.  The economy’s got to come back.  Confidence has to come back, but we can do that by putting in the effort.”

Bernanke was joined at the small business forum by Chairman of the FDIC Sheila Bair, Sen. Mark Warner and Tom Bell, chairman of the board of directors at the U.S. Chamber of Commerce.

Warner argued that deficit reduction is on the forefront of legislators’ minds this session and touted the plan he and Sen. Saxby Chambliss are organizing, which would incorporate recommendations from the president’s deficit commission.

“I think we also have to longer term put in place a meaningful deficit reduction plan,” Warner said.  “It’s put up or shut up time, and I think we will have a broad base of senators, Democrats and Republicans alike, who say the single largest threat, long term threat to our national economy, is not simply the short term challenges we face right now, or the financial crisis, but getting our nation’s balance sheet in order.”

Copyright 2011 ABC News Radio

ABC News Radio