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This is an open letter dated March 5 to Sheila C. Bair, chairman of the Federal Deposit Insurance Corp.
THE COORDINATION OF THE federal government s efforts to assist our economy in a prompt restart continues to stretch the imagination. The Federal Reserve and the U.S. Treasury are working overtime to come up with ways and means to increase liquidity and earnings for the U.S. commercial banking industry in order to aid recovery and increase commercial bank lending. These include a steep yield curve to improve earnings, helping the industry work through troubled loans and, finally, strengthening capital through the TARP's Preferred Stock Program. Given these massive efforts, it seems completely counterintuitive and counterproductive for the...
