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"Wall Street firms should not be called banks"


Guardian UK - One of America's top financial regulators has suggested that Wall Street institutions should be banned from calling themselves "banks" in an effort to clear a fog of confusion about the word in both political and consumer circles.

Sheila Bair, chair of the Federal Deposit Insurance Corporation (FDIC), suggested that only commercial deposit-taking institutions, where customers' cash is safeguarded by a guarantee, should be permitted to describe themselves as banks.

"Everything gets called a bank these days," Bair told the annual conference of the American Bankers Association. "Wall Street firms, mortgage firms ... Maybe there should be some legal constraints on who should call themselves banks – maybe only FDIC insured institutions should have that label." Read more.

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