"The FDIC is up to the task"

The title is quoting FDIC chair Sheila Bair in her comments today about shutting down banks and disassembling large banks. A starting point here is that she would be so ignorant of markets as to make such a comment during market hours when nothing can be deciphered immediately. More money for the traders, of course, but that's the blind eye of this recovery effort so far.

The FDIC is not up to the task of taking apart a global banking institution even though it has, apparently, a solid clerical bureaucracy. If one has the view that the value of AIG's many powerful attributes have already been impaired in a significant way by the government, then let the FDIC take apart Citicorp to see what a day in the park AIG has been.