FDIC's Bair condemns too big to fail

The idea of banks being too big to fail should be consigned to history, Sheila Bair, the head of the Federal Deposit Insurance Corporation (FDIC), the American regulator, has said.

"What's needed is a new way to unwind these big institutions. We need an effective resolution mechanism, not a get-out-of-jail-free card," Bair said in New York on Monday. "Taxpayers should not be called on to foot the bill to support non-viable institutions because there is no orderly process for resolving them."