That legislation intends to address (weaknesses) in the financial system that led to the crisis. It aims to increase consumer (protections) on loans and credit cards, add restrictions to previously unregulated financial products and find ways to dismantle failing firms without resorting to (taxpayer) bailouts. The House has already passed its version of the bill.
Republicans have said the legislation, backed by President Barack Obama, would perpetuate bailouts (rather) than end them.
Bair pointed to the system now in which the FDIC shutters smaller failing banks that are insured by the (federal) government and sells them off. "They take their losses, but taxpayers don't take the exposure," Bair said.