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Sheila Bair's 500 Other Headaches

In another green shoot development, SheBair warned that it's not just CIT that may go down in the not too distant future. According to Senator Jim Bunning, the FDIC Chairwoman calmed nerves at a Senate Banking Committee hearing on the foreclosure crisis by remarking that "unless something dramatic happens, we could lose up to 500 more banks". Given the likely size of these institutions, this provides excellent support for the FDIC's campaign to create smaller, less diverse banks.