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Let’s Listen to Sheila Bair

By Larry Doyle on March 10, 2009 at 5:15 PM in American Consumers, Banking Institutions, Barack Obama, Economy, FDIC, Home Loan, Housing & Housing Crisis, Mortgages, Real Estate, Sense on Cents (Larry Doyle blog), Wall Street

Editor’s Note: Stay tuned for a new story on Sheila Bair tomorrow morning.

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I thoroughly respect Sheila Bair. Our Head of the FDIC has been an honest broker each and every time I have heard her speak. I looked forward to her interview with Paul Gigot of The Wall Street Journal.

Ms. Bair addresses the finer points of the Obama Foreclosure Mitigation Plan which is targeted at helping 9 million homeowners stay in their homes. Specifically she touches on:

1. how this program will not reward bad behavior;
2. how it can be viewed as helping people who have managed their finances appropriately;
3. expectations of redefaults given her experience with the failed institution Indymac.

As I initially mentioned, I believe Sheila Bair is an honest broker in an impossible position. Her seeming lack of enthusiasm does not strike me as not believing in the benefits of this program, but rather a subtle acceptance that this program can only go so far. Additionally, this type of program will have plenty of unintended consequences. Will people who are currently paying their mortgages on schedule start to become delinquent on their mortgages in order to gain the benefits of this program?

I think Ms. Bair will make the best of a bad situation. That said, no program will be totally effective. I am fully supportive of programs that will assist Americans, but don’t be fooled to think that we will get 100% return on all dollars spent.

Let’s go to the video . . .

  • Ani

    Damn — I love listening to this lady. So I’ll ask again — why isn’t Sheila Bair our Treasury Secretary?

    Thanks, LD.

  • http://deleted Aaron

    These programs are nothing more than a feeble attempt to keep people in their homes so that they continue to pay the real estate taxes associated with the property. The government is not “helping” people but making them slaves to debt as the new modified mortgages are recourse loans.

  • http://noquarter foxyladi14

    she would be better then the one we got now..course almost anyone would be…

  • Tuppence411

    I know. I was po’d that Shelia Bair was only given lip service as a potential Teasury Secretary while Larry “girls can’t do math” was a serious front runner. But then again I expected no less from Barky.

    But honestly, right now I am glad she stayed put at the FDIC. Considering the failing banks, more and bigger failures to come, and the financial strain on the FDIC, we couldn’t have a better, smarter, harder worker at the helm there. I think she is in the best place to do us the most good. Providence smiled down on us, despite Barky’s machinations.

    • Ani

      Yes — you’re right, much as I would prefer her as Treasury Secy, we do need an honest, sane, brilliant mind at the helm with FDIC.

  • lizzy

    I hadn’t heard much about Sheila Bair but she sounds very competant in this clip. One of the comments in your site, Sense on Cents also had some good links to her views. Thanks for the post.

  • NoWay

    “As I initially mentioned, I believe Sheila Bair is an honest broker in an impossible position.”

    Well then, apparently you have not done your DD. She is a conniving witch, with delusions of grandeur.

    Hope she is FIRED.