Ex-FDIC chair calls for stricter rules

US banks should have the amount they can borrow against their equity halved, according to Sheila Bair, the former chairman of the Federal Deposit Insurance Corporation (FDIC). Bair’s memoir of the financial crisis, “Bulls by the Horns”, said banks should have a borrowing ratio of eight per cent, rather than the current four per cent, a move she claims would cut risk in the financial system. Bair, a Republican, served as FDIC chief from 2006 through 2011, and is widely credited with seeing the mortgage crisis before it happened.