Sheila C. Bair
Encyclopedia
Sheila Colleen Bair was the 19th Chairperson of the U.S. Federal Deposit Insurance Corporation
(FDIC). She was appointed to the post for a five-year term on June 26, 2006 by George W. Bush
. Bair served as a member of the FDIC Board of Directors through July 8, 2011.
, Kansas
. Her father, Albert, was a surgeon
. Her mother, Clara, was a nurse and housewife. She received her bachelor's degree in philosophy from the University of Kansas
, and worked as a bank teller for a brief period, before receiving a J.D.
from the University of Kansas School of Law
in 1978. In 1981, she was recruited by Senator Bob Dole
, a Republican from her state, to serve as counsel on his staff in Washington.
at the University of Massachusetts Amherst
, a post she had held since 2002. She also served as Assistant Secretary for Financial Institutions
at the U.S. Department of the Treasury
(2001 to 2002), Senior Vice President for Government Relations of the New York Stock Exchange
(1995 to 2000), a Commissioner and Acting Chair of the Commodity Futures Trading Commission
(1991 to 1995), and Research Director, Deputy Counsel and Counsel to Kansas Republican Senate Majority Leader Robert Dole (1981 to 1988). While an academic, Bair also served on the FDIC's Advisory Committee on Banking Policy. Bair also pursued a seat in the U.S. Congress
(she lost the 1990 Republican
nomination in the 5th Kansas district
by 760 votes to Dick Nichols
). Bair began her career in the General Counsel's office of the former US Department of Health, Education and Welfare. Ms. Bair left the FDIC on July 8, 2011, when her five year term expired.
Bair has published two books for children: Rock, Brock and the Savings Shock (2006) and Isabel's Car Wash (2008). Both titles show children good examples of money management.
Bair is married to Scott P. Cooper and has two children, Preston and Colleen.
During the congressional effort to reform the financial regulatory system, Bair successfully pushed to establish tools to end the doctrine of “too big to fail” by extending the FDIC’s resolution process to large, systemically-important financial institutions. The FDIC was also given joint authority to order the restructuring of an entity that cannot demonstrate, though a continually-monitored “living will,” that it can be unwound.
Bair is active on the international front, and pressed the Basel Committee on Bank Supervision to adopt strong capital and leverage standards, as Bloomberg BusinessWeek reported.
In a fictional TV movie about the crises, Patricia Randell played Bair in the 2011 HBO movie Too Big to Fail
, which was based on the popular book of the same name by New York Times journalist Andrew Ross Sorkin
.
ranked
her as the second most powerful woman in the world behind German chancellor Angela Merkel
. Forbes described her FDIC office as "the last stop for capital-starved banks (and their insured customers) before going under."
twice seeking information regarding the FDIC decision jointly with the Federal Reserve and Treasury Department to “bailout” Citi. The litigants say the FDIC was refusing to provide any information on the reasons for its support of the bailouts of certain banks stemming from the Financial Crisis of 2008, and continues to do so. Judge Emmett G. Sullivan of the US District Court (DC) said the case was not moot because the litigants continued to contest whether the FDIC reasonably interpreted the scope of his request. The FDIC says the court specifically gave the FDIC the option to submit additional evidence demonstrating that its original search was complete. The FDIC says it has done so, and the issue of the scope of the search is now before the Court.
In addition to the legal proceedings, Bair has made the following remark, which spoke to the FDIC’s lack of statutory authority pre Dodd-Frank. In a response to the Inspector General for the TARP program, Bair remarked, "We were told by the New York Fed that problems would occur in the global markets if Citi were to fail. We didn't have our own information to verify this statement, so I didn't want to dispute that with them." In 2008, the FDIC did not have the legal authority to put large holding companies into its bank receivership process and little authority to access information outside of the insured institutions. Since these were holding companies, and not banks, the FDIC had to rely on information from other regulators. That is no longer the case. In 2010, the Dodd-Frank Act was enacted, expressly prohibiting bank bailouts by extending the FDIC’s resolution authority to close the largest financial firms and make their shareholders and creditors bear the losses without creating a systemic disruption. Dodd-Frank also gave the FDIC new authority to directly access information from large bank holding companies which are not in sound condition.
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Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
(FDIC). She was appointed to the post for a five-year term on June 26, 2006 by George W. Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
. Bair served as a member of the FDIC Board of Directors through July 8, 2011.
Early life
Bair is a native of IndependenceIndependence, Kansas
Independence is a city in and the county seat of Montgomery County, Kansas, United States. As of the 2010 census, the city population was 9,483.-Geography:...
, Kansas
Kansas
Kansas is a US state located in the Midwestern United States. It is named after the Kansas River which flows through it, which in turn was named after the Kansa Native American tribe, which inhabited the area. The tribe's name is often said to mean "people of the wind" or "people of the south...
. Her father, Albert, was a surgeon
Surgeon
In medicine, a surgeon is a specialist in surgery. Surgery is a broad category of invasive medical treatment that involves the cutting of a body, whether human or animal, for a specific reason such as the removal of diseased tissue or to repair a tear or breakage...
. Her mother, Clara, was a nurse and housewife. She received her bachelor's degree in philosophy from the University of Kansas
University of Kansas
The University of Kansas is a public research university and the largest university in the state of Kansas. KU campuses are located in Lawrence, Wichita, Overland Park, and Kansas City, Kansas with the main campus being located in Lawrence on Mount Oread, the highest point in Lawrence. The...
, and worked as a bank teller for a brief period, before receiving a J.D.
Juris Doctor
Juris Doctor is a professional doctorate and first professional graduate degree in law.The degree was first awarded by Harvard University in the United States in the late 19th century and was created as a modern version of the old European doctor of law degree Juris Doctor (see etymology and...
from the University of Kansas School of Law
University of Kansas School of Law
The University of Kansas School of Law is a public law school located on the main campus of the University of Kansas in Lawrence, Kansas. The University of Kansas Law School was founded in 1893, replacing the earlier Department of Law, which had existed since 1878. The school has more than 50...
in 1978. In 1981, she was recruited by Senator Bob Dole
Bob Dole
Robert Joseph "Bob" Dole is an American attorney and politician. Dole represented Kansas in the United States Senate from 1969 to 1996, was Gerald Ford's Vice Presidential running mate in the 1976 presidential election, and was Senate Majority Leader from 1985 to 1987 and in 1995 and 1996...
, a Republican from her state, to serve as counsel on his staff in Washington.
Career
Prior to her appointment at the FDIC, Bair was the Dean's Professor of Financial Regulatory Policy for the Isenberg School of ManagementIsenberg School of Management
The Isenberg School of Management is the business school at the University of Massachusetts Amherst. Founded in 1947 as the School of Business Administration, Isenberg assumed its present name in 1997 in honor of alumnus and benefactor Eugene M. Isenberg...
at the University of Massachusetts Amherst
University of Massachusetts Amherst
The University of Massachusetts Amherst is a public research and land-grant university in Amherst, Massachusetts, United States and the flagship of the University of Massachusetts system...
, a post she had held since 2002. She also served as Assistant Secretary for Financial Institutions
Assistant Secretary of the Treasury for Financial Institutions
The Assistant Secretary of the Treasury for Financial Institutions is an official in the United States Department of the Treasury who is the head of the Office of Financial Institutions. The office has been vacant since January 2010 when Michael Barr left office.According to U.S...
at the U.S. Department of the Treasury
United States Department of the Treasury
The Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue...
(2001 to 2002), Senior Vice President for Government Relations of the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
(1995 to 2000), a Commissioner and Acting Chair of the Commodity Futures Trading Commission
Commodity Futures Trading Commission
The U.S. Commodity Futures Trading Commission is an independent agency of the United States government that regulates futures and option markets....
(1991 to 1995), and Research Director, Deputy Counsel and Counsel to Kansas Republican Senate Majority Leader Robert Dole (1981 to 1988). While an academic, Bair also served on the FDIC's Advisory Committee on Banking Policy. Bair also pursued a seat in the U.S. Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
(she lost the 1990 Republican
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
nomination in the 5th Kansas district
Kansas's 5th congressional district
Kansas's 5th congressional district is an obsolete district for representation in the United States House of Representatives.It existed from 1885 to 1993.-List of representatives:-References:*...
by 760 votes to Dick Nichols
Dick Nichols
Richard Nichols was a one-term U.S. Representative from Kansas.Born in Fort Scott, Kansas, Nichols attended public schools.He earned his B.S...
). Bair began her career in the General Counsel's office of the former US Department of Health, Education and Welfare. Ms. Bair left the FDIC on July 8, 2011, when her five year term expired.
Bair has published two books for children: Rock, Brock and the Savings Shock (2006) and Isabel's Car Wash (2008). Both titles show children good examples of money management.
Bair is married to Scott P. Cooper and has two children, Preston and Colleen.
2008 financial crisis
Bair assumed a prominent role in the government’s response to the crisis, including bolstering public confidence and system stability that resulted in no runs on bank deposits. The FDIC did not turn to taxpayer borrowing to manage its losses and liquidity needs, instead funding them through its traditional means of assessing banks for the cost of insuring their deposits. The FDIC’s resolution practice of selling failing banks to healthier institutions, while providing credit support of future losses from failed banks’ troubled loans, saved the FDIC’s Deposit Insurance Fund $40 billion over losses it would have incurred if the FDIC had liquidated those banks.During the congressional effort to reform the financial regulatory system, Bair successfully pushed to establish tools to end the doctrine of “too big to fail” by extending the FDIC’s resolution process to large, systemically-important financial institutions. The FDIC was also given joint authority to order the restructuring of an entity that cannot demonstrate, though a continually-monitored “living will,” that it can be unwound.
Bair is active on the international front, and pressed the Basel Committee on Bank Supervision to adopt strong capital and leverage standards, as Bloomberg BusinessWeek reported.
In a fictional TV movie about the crises, Patricia Randell played Bair in the 2011 HBO movie Too Big to Fail
Too Big to Fail
Too Big to Fail is a television drama film in the United States broadcast on HBO on May 23, 2011. It is based on the non-fiction book Too Big to Fail by Andrew Ross Sorkin. The TV film was directed by Curtis Hanson...
, which was based on the popular book of the same name by New York Times journalist Andrew Ross Sorkin
Andrew Ross Sorkin
Andrew Ross Sorkin is a Gerald Loeb Award-winning American journalist, author and television personality. He is a financial columnist for The New York Times and a co-anchor of CNBC's Squawk Box. He is also the founder and editor of DealBook, a financial news service published by The New York Times...
.
Opinion
In 2009, Bair was named one of Time magazine’s “Time 100” most influential people. In 2008, Bair topped The Wall Street Journal’s annual 50 “Women to Watch List.” In 2008 and 2009, ForbesForbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
ranked
Forbes Magazine's List of The World's 100 Most Powerful Women
Starting in 2004, Forbes magazine has made a list of the 100 most powerful women in the world. It is edited by editor Mary Ellen Egan, and based on visibility and economic impact...
her as the second most powerful woman in the world behind German chancellor Angela Merkel
Angela Merkel
Angela Dorothea Merkel is the current Chancellor of Germany . Merkel, elected to the Bundestag from Mecklenburg-Vorpommern, has been the chairwoman of the Christian Democratic Union since 2000, and chairwoman of the CDU-CSU parliamentary coalition from 2002 to 2005.From 2005 to 2009 she led a...
. Forbes described her FDIC office as "the last stop for capital-starved banks (and their insured customers) before going under."
Criticism
Bair has received criticism for her outspoken style and what some saw as her single-minded defense of the FDIC’s deposit insurance fund in the heat of the response to the financial meltdown in 2008. The FDIC was sued by Judicial WatchJudicial Watch
Judicial Watch is an organization that describes itself as "a conservative, non-partisan American educational foundation that promotes transparency, accountability and integrity in government, politics and the law." According to its mission statement, Judicial Watch "advocates high standards of...
twice seeking information regarding the FDIC decision jointly with the Federal Reserve and Treasury Department to “bailout” Citi. The litigants say the FDIC was refusing to provide any information on the reasons for its support of the bailouts of certain banks stemming from the Financial Crisis of 2008, and continues to do so. Judge Emmett G. Sullivan of the US District Court (DC) said the case was not moot because the litigants continued to contest whether the FDIC reasonably interpreted the scope of his request. The FDIC says the court specifically gave the FDIC the option to submit additional evidence demonstrating that its original search was complete. The FDIC says it has done so, and the issue of the scope of the search is now before the Court.
In addition to the legal proceedings, Bair has made the following remark, which spoke to the FDIC’s lack of statutory authority pre Dodd-Frank. In a response to the Inspector General for the TARP program, Bair remarked, "We were told by the New York Fed that problems would occur in the global markets if Citi were to fail. We didn't have our own information to verify this statement, so I didn't want to dispute that with them." In 2008, the FDIC did not have the legal authority to put large holding companies into its bank receivership process and little authority to access information outside of the insured institutions. Since these were holding companies, and not banks, the FDIC had to rely on information from other regulators. That is no longer the case. In 2010, the Dodd-Frank Act was enacted, expressly prohibiting bank bailouts by extending the FDIC’s resolution authority to close the largest financial firms and make their shareholders and creditors bear the losses without creating a systemic disruption. Dodd-Frank also gave the FDIC new authority to directly access information from large bank holding companies which are not in sound condition.
Awards
Bair has received many awards, including the John F. Kennedy Profile in Courage Award and Hubert H. Humphrey Civil Rights Award.External links
- Federal Deposit Insurance Corporation website
- FDIC Biography of Bair
- New Yorker profile
- Sheila Bair "exit interview" by Joe Nocera, NY Times, July 9, 2011.
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