Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., said the agency should be responsible for winding down nonbank financial firms but suggested that it be done through a separate resolution authority. Bankers had raised concerns that giving the FDIC the additional authority would threaten its reputation as a protector of bank deposits. "We certainly don't want to do anything to dilute our brand," Bair said. "It can be addressed through the way the authority is structured, perhaps through a separate entity that would be under the FDIC board, but legally separate and separately branded."
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