Sheila Bair, chairman of the Federal Deposit Insurance Corp., told a congressional panel that the federal debt ceiling must be increased to prevent the government from defaulting. Bair said the federal debt is certainly a concern. "But as strongly as I feel about this issue, I feel just as strongly that a technical default on U.S. government obligations would prove to be calamitous," she said. Bair also defended the new resolution system for major financial institutions.
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