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Philly Fed's Plosser likes FDIC seizures, not AIG bailouts
Philadelphia Federal Reserve Bank president Charles Plosser says the government should seize and sell failed financial institutions, like the FDIC does, not bail out their creditors, as the government did for AIG
In a speech at the University of Chicago (he's often away from his district), conservative Federal Reserve Bank of Philadelphia president Charles I. Plosser praised the Federal Deposit Insurance Corp.'s method of stopping, seizing, selling, and exiting failed banks. And he implicitly criticized the way the Fed and the Bush and Obama administrations bailed out American International Group (and thus Goldman Sachs and other AIG creditors). Speech here. Excerpts: