Veteran of 1980s banks crisis hits out at sale of First Republic to JPMorgan

I spoke with Brooke Masters of Financial Times for her latest article on today’s banking crisis.

From the article:

However, Bill Isaac, who chaired the FDIC during the start of the savings and loan crisis and managed the collapse of what was then the seventh-largest bank in the country, Continental Illinois, said that priority was misguided.

“I don’t think it is right to sell a failed bank to the largest bank in the country just because it paid the highest price,” he said. “You make the largest banks bigger and bigger and you have fewer choices going forward. The FDIC has fewer choices next time and consumers have fewer choices.”

Read the story here.