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The Return Of Bank Runs | Sheila Bair, Former FDIC Chair

Forward Guidance

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How to Make the Decision to Close a Bank

You don't want to prematurely close a bank because if it's not going to fail, you're going to probably wipe out the shareholders and a good chunk of the debt holders. On the other end, if you wait too long, that your costs are going to go up significantly. So I think the bias is typically to delay or the pressure is to delay - which the FDIC needs to resist. And so it takes an act of courage.

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