The crises in the US financial markets is over and they are in the process of cleaning up, according to Sheila Bair, chairman, Federal Deposit Insurance Corporation (FDIC) of the United States.
?We do think the crises is over. After many months of recession and job losses, the US economy is beginning to recover. Though substantial uncertainties remain, we are seeing gradual progress in terms of economic activity. Signs that payrolls are starting to expand and that bank loan performance are beginning to stabilise. But banks continue to set aside large provisions for loan losses, and bank failures continue at an elevated pace,? Bair said. She was delivering a speech on the ?Developments in US Banking System, Financial Inclusion? at the Reserve Bank of India on Tuesday.
?The most important reform will be to create the authority to resolve complex financial institutions that get into trouble, without a taxpayer bailout,? Bair said, adding that this authority is essential to restoring the discipline on excessive risk taking at large banks and non-bank financial companies.