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Description:  Reflecting on the 2008 financial crisis, former FDIC chairperson Sheila Bair discusses her regrets over the bailout of the big banks.

Source: CNNMoney.com – video report

Date: Sep 27, 2012

Link: http://money.cnn.com/video/news/2012/09/27/n-sheila-bair-citi-bailout.fortune/

Questions for Discussions:

  • Summarize the regrets expressed in hindsight by Sheila Blair.
  • Why do you suppose Citi bondholders were “protected” by the Fed?
  • What might have happened if the losses in bad debts had been spread to those bond holders?
  • What have we learned about the way in which the Fed managed the risk assumed by Citi and other banks during this fiasco?

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