Sheila Bair, who served as chair of the Federal Deposit Insurance Corporation (FDIC) from 2006 to 2011, expressed significant concerns about the current state of financial regulation in the United States during an interview with KCUR. Bair, a Kansas native, is in Kansas City to accept the Truman Medal for Economic Policy from the Truman Library Institute on October 15, 2026.
Read More
In her remarks, Bair highlighted the dangers posed by recent financial deregulations under the Trump administration, specifically noting the rollback of bank capital requirements established after the 2008 financial crisis. She pointed out that the leverage ratio, which had proven to be a key indicator of a bank's financial health during that crisis, has been weakened. "The leverage ratio capital levels are pretty much back to where they were for the big banks around 2009. So we're slipping backwards," Bair said.
Bair also indicated that risky lending practices are resurfacing, particularly through private credit funds associated with banks. Additionally, she mentioned volatility in the treasury market, which increases the risks for banks due to their significant holdings of treasury debt that lose value as interest rates rise.
Overall, Bair noted multiple sources of fragility in the financial system, calling attention to the need for vigilance in regulatory measures.
The Truman Medal for Economic Policy award ceremony will take place at 6:30 p.m. with a reception at 6 p.m. on October 15 at the Truman Forum in the Kansas City Public Library Plaza Branch.