FDIC head Sheila Bair warns community banks are struggling to compete against their...

|By:, SA News Editor

FDIC head Sheila Bair warns community banks are struggling to compete against their too-big-to-fail rivals. "Too big to fail has become worse," she said, "it's become explicit when it was implicit before." Bair contends government guarantees create competitive disparities between large and small banks, because "everybody knows small institutions can fail," making it more expensive for them to raise capital and secure funding.