Sheila Bair on the consequences of ZIRP, bank bailouts, and a post-Geithner Treasury!
Welcome to Capital Account. Wall Street banks, including Morgan Stanley and Goldman Sachs, are looking to help their foreign customers skirt new US regulations for over-the-counter derivatives. The banks found ways to route trades through non-US affiliates, exploiting the opaque definition of what constitutes a ‘US person.’ Wall Street’s attempts to circumvent regulations may not come as a surprise, but what is the antidote? We talk to Former FDIC chair Sheila Bair about her experience as a regulator during the financial crisis.