Its disgusting that some people think Wall Street profits and compensation will reflect in the Main street economy. I had a quick discussion with someone on Twitter today who was saying exactly this. Bernie Madoff fake 'profits' were in fact no reflection of actual good business. When will we understand (even the economic illiterate) that we have been building a fake 'recovery' off of a fraudulent environment….
A key note to take from her remarks > Bair implied that the Federal Reserve and the SEC were blind to the need to prepare in advance for systemic issues. Had they made adequate preparations, we could have dealt with Lehman or bear Stearns and other weak institutions via bankruptcy, asset seizure and re-privatization/liquidation. This is a primary reason – in conjunction with their failure to regulate – that they should not receive more regulatory responsibilities. The Federal Reserve should focus on monetary policy and be stripped of regulatory duties.