* WASHINGTON (4/10/08)--Federal Deposit Insurance Corp. (FDIC) Chairman Sheila Bair supports some parts of the Treasury Department’s blueprint to revise the U.S. financial system (American Banker
April 9). Bair said that the almost-collapse of Bear Stearns Co. brings oversight problems to light. She noted that investment firms need prompt corrective action. The blueprint does not account for prompt corrective action, but a measure is included in the Federal Reserve Board’s new powers--allowing it to place corrective action on institutions when the market is unstable. Though Bair said she supported competition, she also noted that it’s “problematic” to have uneven regulation ... * WASHINGTON (4/10/08)--The Federal Reserve Board Tuesday met with representatives from the credit card industry to define unfair and deceptive practices. The Fed did not identify the companies that participated (American Banker
April 9). Fed Gov. Randall Kroszner cited the gathering as a discussion of current issues that will help the Fed improve disclosures and protect cardholders ... * WASHINGTON (4/10/08)--The new Term Securities Lending Facility may not be enough to help the troubled market, Federal Reserve Board fficials said at a March 11 meeting. According to minutes released by the bank
, “during the discussion, participants expressed concerns that establishment of the facility could be viewed as setting a precedent and thus raise expectations of other actions in the future, and they also noted some uncertainty about how effective the facility would be in practice.” ...