Sheila Bair, former chairman of the Federal Deposit Insurance Corp., shares her thoughts about on what went wrong in the banking industry and how to prevent financial collapse in the future.
In this video she talks about how bankruptcy is now the strategy to deal with future banking failures, why over borrowing was a critical cause of the financial failures, and why the financial industry failed to exercise the same type of common sense financial management that regular families engage in on a regular basis.
It is enlightening that the new way to deal with financial problems is through bankruptcy to clean things up and move forward, yet consumers continue to see bankruptcy as an option that should be avoided.
Ms. Bair talks about how she wishes the banking industry would take control, develop solid rules, and clean up their own industry bad actors through leadership and chastisement of institutions that don’t play by the rules.
I found this to be a very informative and interesting video from the folks at USA Today.