Federal Deposit and Insurance Corporation (FDIC) head Sheila Bair said Monday that some U.S. financial institutions may be beyond help from U.S. government agencies, and some banks will close.
In a conference call with reporters, Bair touted the U.S. Treasury's plan introduced this morning to remove toxic assets from banks' balance sheets.
The public/private partnership to buy these assets and resell them to the public won't necessarily be a 50/50 split, she said.
Bair said the highest priority will be given to high-risk real estate loans, because the problems are with these assets.
She said the most difficult part of the program will be to price the assets properly, but that government agencies will find the best possible structure to do so, adding that she expects the program will be profitable.
By Megan Ainscow and edited by Ernest Hoffman
©CEP News Ltd. 2009