I loved the sequence. Sheila Bair forces the issue at Washington
Mutual - a bank that she did not need to force the issue at but which
might have been insolvent.
Then she absolutely
forced the issue at Wachovia. She insisted that Wachovia sell to
Citigroup even though Wells Fargo wanted more time and a market
solution was available for Wachovia with no hint of a government
guarantee.
But
now is Sheila Bair's moment. If her past behaviour is anything she
will confiscate Citigroup because it looks sick. She has the ego, she
has the momentum, she has the form.
Sheila can of course run this, sort it out, become
Treasury Secretary and otherwise rule the world.
Sheila Bair - just admit the precedent you set is inappropriate and resign!
