We've moved beyond the liquidity crisis of last year. Most major institutions managed to turn a profit in the first quarter. And one of the few that didn't was hurt by an improvement in its credit spreads, which damaged its balance sheet by increasing the theoretical cost of repurchasing its own debt. As I see it, we are now in the clean up phase. We need to get in, do the repair work, and get out. And we also must look to how to improve our system for the future.
Remarks by FDIC Chairman Sheila Bair to The Economic Club of New York