Tags: Bair | Courageous | Regulators | Heroes

Sheila Bair: Courageous Regulators Can Still Be Heroes

By    |   Sunday, 15 Sep 2013 12:23 PM

The hardships of Americans most hurt by the financial crisis are being forgotten, says Sheila Bair, former chair of the Federal Deposit Insurance Corp. But regulators still have time to become heroes, she writes in a Fortune article.

Research has kept Bair “uncomfortably reminded” of the struggles so many families endured, and especially how the crisis has affected their kids.

The crisis brought high levels of stress for families, sleepless nights for parents and kids, deteriorating grades at school, lost hope as savings were depleted, and finally the loss of a home.

Editor’s Note: 5 Reasons Stocks Will Collapse . . .

Bair concedes that some people are partially responsible for their troubles since refinancing amid rising home prices led to unmanageable debt loads. But contrary to the image painted by Wall Street sympathizers, the cash was not always used for frivolous purchases. And some families had traditional 30-year, fixed-rate mortgages but still couldn't pay them because they lost their jobs or suffered pay cuts.

Families are clawing their way back, but “their kids have grown to accept getting by with less,” says Bair. Young people, who should be filled with hope and optimism, are confronted with limited job opportunities, reduced standards of living, and mountains of student debt.

Five years after the crisis, the nation appears to be recovering, but aftershocks of the historic upheaval are still being felt in nearly every corner of the economy, says USA Today.

There's the “listless” 2% annual economic growth rate and an abundance of jobs offering low wages and part-time work. Many homeowners have been forced to rent, and potential first-time homebuyers are having difficulty.

Some argue that the current economic conditions are appropriate given the scale of the crisis.

“It took us a lot longer to get into the financial crisis than anybody understands. It's going to take a long time to completely right the ship,” Wells Fargo economist Mark Vitner told USA Today.

But Bair says Americans' devastating hardships have been “largely forgotten in the power politics that have overcome financial reform.”

Protecting the public from another recession should be a priority, but in Washington it seems more like “it's all about winners and losers, with regulators and reform advocates pitted against a powerful industry lobbying machine, oiled by political money and the grease of revolving door jobs” she said.

People sometimes consider those who participated in the bailouts to be “heroes” because they “saved the system.” But it didn't take heroism to throw trillions of government cash at big financial institutions, said Bair.

Heroes are regulators who show the courage to tame the system against the fierce lobbying of the institutions that benefited from the government's largesse, Bair said.

“With the Dodd-Frank financial reform law barely one-third implemented, regulators still have the opportunity to make the post-Lehman era their finest hour.”

Editor’s Note: 5 Reasons Stocks Will Collapse . . .

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
The hardships of Americans most hurt by the financial crisis are being forgotten, says Sheila Bair, former chair of the Federal Deposit Insurance Corp. But regulators still have time to become heroes, she writes in a Fortune article. Research has kept Bair "uncomfortably...
Bair,Courageous,Regulators,Heroes
482
2013-23-15
Sunday, 15 Sep 2013 12:23 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved