Bank Insolvency, Bailouts, and Blockchain

Published on
April 6th, 2020
39 minutes

Small Business & Venture Capital: The Post-Coronavirus Future

Bank Insolvency, Bailouts, and Blockchain

The Interview ·
Featuring Sheila Bair and Pedro da Costa

Published on: April 6th, 2020 • Duration: 39 minutes

Financial journalist Pedro DaCosta speaks with former FDIC chair Sheila Bair about the ongoing efforts of the U.S. government to contain the economic damage inflicted by the COVID-19 pandemic. She discusses the Small Business Administration's (SBA) efforts to extend credit to endangered businesses and explores whether the Federal Reserve might use blockchain technology in order to deliver emergency cash to U.S. citizens in a more efficient (as well as hygienic) manner. Bair places these topics in context by drawing on her experience as head of the Federal Deposit Insurance, where she led the effort to protect depositors during the Great Financial Crisis.



  • GP
    Graham P.
    7 April 2020 @ 18:53
    Very interesting conversation, but the poor audio quality made it hard to follow.
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:14
  • MX
    Mr X.
    9 April 2020 @ 04:11
    Crap quality
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:14
      Sorry y'all, she lives on a farm.
  • NL
    Nikola L.
    8 April 2020 @ 04:55
    I am missing big chunks of the conversation.. it is very interesting stuff but I struggle to follow due to poor quality..
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:14
      Apologies. Sheila Bair lives on a farm!
  • TM
    Timothy M.
    12 April 2020 @ 09:14
    Had to stop watching due to illegible audio. Interview should have been stopped and recorded by phone. Would rather have no video than no conversation.
  • MK
    Monty K.
    10 April 2020 @ 03:23
    Such shitty quality...what's the point of the interview if it's going to be this bad!
  • JN
    Jack N.
    9 April 2020 @ 14:09
    horrible quality connection with the lady. terrible
  • TZ
    Tibor Z.
    8 April 2020 @ 17:14
    Record it with a camera first than edit and cut it together.
  • MJ
    Marius J.
    8 April 2020 @ 15:29
    When filmed?
  • MR
    Milton R. | Founder
    6 April 2020 @ 18:35
    I know under normal conditions I wouldn't recommend but in this case, the transcript offers very good support for the borderline audio. My team is already looking into getting around those issues in the future.
    • SM
      Shivani M.
      6 April 2020 @ 19:04
      I strongly recommend having guests edit the transcript so that it reflects their intended meaning. It wouldn't take too long. Extemporaneous speech seldom reads well, and they can also fill in all the [indiscernible] words.
    • VV
      Vanessa V.
      6 April 2020 @ 20:57
      Whilst the audio quality isn't the best, I found reading the transcript while listening to the conversation helped. Yes, it takes more effort/time, but it was worth it for me as I like to get a feel for the person being interviewed.
    • PV
      Peter V.
      6 April 2020 @ 22:26
      might have helped if she had not moved about so much and not spoken so fast.
    • MW
      Moritz W.
      7 April 2020 @ 06:20
      Look into squadcast !
    • AM
      Artem M.
      8 April 2020 @ 15:11
      Just have your guests call in with a phone in addition to being on video (mute the computer mic/speakers). Vid conferencing 101.
  • AM
    Artem M.
    8 April 2020 @ 15:08
    Gotta call in with a phone to solve the audio issue, doesn't matter if the video lags if the audio is good.
  • MH
    Martin H.
    7 April 2020 @ 06:44
    Really hard to listen! Drop the video and go with a picture and high quality audio. We really don't have to see people if it sacrifices the audio so much!
    • AH
      Alexander H.
      7 April 2020 @ 13:18
      Pretty sure the problem is Sheila's bandwith. There would be compression issues with audio only, too. would've been smart to ask her to record the audio her end and send it via dropbox or something but it might be a bit of a chore for someone her age
    • ZM
      Zachary M.
      7 April 2020 @ 14:57
      They don't have the luxury of having "high quality audio" without sending a setup to the guest's house.
    • MH
      Martin H.
      8 April 2020 @ 04:35
      Alexander H. Yeah it's bandwidth which is why you drop the video because is WAY more bandwidth hungry than audio. She'd have been clear if they did audio only. Zachary M. rubbish, it's not that hard to improve way out of sight from there. A Whatsapp audio call (any VOIP really) on a decent phone would have knocked that out of the park.
  • DM
    Dominic M.
    8 April 2020 @ 01:36
    CBDCs may be digital, but we already have digital dollars. To call them "blockchain" or to suggest they're similar to actual decentralized crypto projects (e.g. Factom / Pegnet) is misleading. They're centralized—i.e. categorically separate.
  • ar
    andrew r.
    7 April 2020 @ 23:13
    "Just send them cash! … Because consumer demand drives the economy." This is why we're in such a mess. Our system is fragile because of these fallacious ideas.
  • VB
    Vincent B.
    7 April 2020 @ 20:08
    the audio was bearable... she was a strong, level-headed, openminded thinker...yet another good one.... and i leave with the thought.... it's all about the blockchain.... I didn't get bitcoin until very recently.... which is the blockchain... which is an actual revolution against hierarchical centralization, very much in line with ferguson's book, about how networks ( the square) are about to take down hierarchy ( the tower)...
  • DR
    Diana R.
    7 April 2020 @ 15:33
    Can't understand every other word; why post such a poor quality video?
  • DN
    Douglas N.
    7 April 2020 @ 14:04
    "...and it will be lasting change if people realize that taking a walk or whatever is just as fun as flying to Atlantic City and gambling or whatever." I'm not even sure how to comment on this...
  • AH
    Alexander H.
    7 April 2020 @ 13:28
    Bailouts for corporations create incentives for irresponsible and incompetent executives
  • DR
    David R.
    6 April 2020 @ 14:36
    "We're ending up with the distasteful task of bailing out the institutions that have brought us the crisis." Exactly. Should NOT be bailing out stuff to the tune of $6-trillion, especially those terribly run organizations headed by greedy execs who've made off like vault thieves by rewarding themselves 8-9 figures each by engaging in massive financial engineering - stock buybacks financed by cheap debt facilitated by the inept Fed. The CoV flu bug was merely a calalyst to this bigger systemic problem which could have been triggered by any number of other things, like a spark to kindling. The policy response, whilst preventing a bigger short-term meltdown, has nevertheless exacerbated the systemic problem, especially in US. It appears that they've suddenly now checked all the boxes of Dr Lacy Hunt's nightmare scenario; can hardly wait to hear what he says next.
    • AF
      Andre F.
      7 April 2020 @ 04:37
      The Fed are not inept. They [Bernanke,] intended to create inflation in the stock market when they initiated QE back in '08. It led to decade long bull market. They accomplished their aim; that's not ineptitude, that's success. Are you a social commentator or an investor?
  • lm
    luke m.
    7 April 2020 @ 03:20
    No hard questions about FDICs latest video, telling us about how safe the banks are, followed days after with the first bank in America to declare insolvency .... ?
  • JF
    John F.
    6 April 2020 @ 07:52
    Important interview but hard to listen to because of bad connection. . Please redo interview with better sound.
    • MR
      Milton R. | Founder
      6 April 2020 @ 09:09
      I know the sound quality is not ideal but it's intelligible.
    • TR
      Tadej R.
      6 April 2020 @ 11:18
      @Milton and team, have you ever thought about recording audio locally during interview and then sending it to your audio team to merge all of them when preparing the video? Not sure how hard this would be, but this way you would eliminate the impact of bad internet connection during interviews.
    • DR
      David R.
      6 April 2020 @ 14:18
      There's also the excellent transcript provided, which helps the audio. Which for convenience even has the current spot in the text highlighted during playback. Great stuff!
    • MV
      Mathieu V.
      6 April 2020 @ 17:42
      I do agree with Tadej
    • CL
      Charles L.
      7 April 2020 @ 02:14
      You might want to try IPDTL...not expensive and a great way to get good audio. You can sync it to the video in post. Just a thought...
    • CL
      Charles L.
      7 April 2020 @ 02:15
  • sc
    sung c.
    7 April 2020 @ 01:41
    I was never impressed with Bair before and still not impressed now with poor tech of this interview.
  • GT
    Guillaume T.
    7 April 2020 @ 01:12
    For all the audio discussion. Don't forget there is a Transcript document available. Just in case people still read nowadays.
  • CP
    Carl P.
    6 April 2020 @ 23:48
    The dislike was not for the audio, it's for the "I think the fed needs to do this."
  • PB
    Paul B.
    6 April 2020 @ 23:28
    Yeah and look at the SB loans under 350K are 5%....Banks make money again.
  • MT
    Mark T.
    6 April 2020 @ 23:26
    The technical problems really took away from the interview. Hard to follow.
  • JG
    JC G.
    6 April 2020 @ 23:11
    Please try another video solution - could not follow her duscussion at all
  • NG
    Neil G.
    6 April 2020 @ 22:30
    In the description for these videos, can you please add in the date the interview was conducted so we have context on the timing? These lose a lot of value without knowing the interview date in this fast moving environment.
  • LS
    Lemony S.
    6 April 2020 @ 22:18
    I didn't think that the audio was as big of a deal as comments like "Thanks to Andrew Yang for putting this more [UBI] on the national agenda." We are entering waters everyone thought were "conspiratorial" people ... and fast.
  • RR
    Rob R.
    6 April 2020 @ 20:47
    Why no hard questions about digital dollar and its potential Orwellian impact? These were all softball questions that weren't very insightful.
    • LS
      Lemony S.
      6 April 2020 @ 22:15
      I thought the same thing, and if you couldn't tell from Pedro's loaded questions (carbon footprint?) he seemed to be Bill Gates, Jr. in this interview. Now you know why the media is such a problem.
  • MR
    Michal R.
    6 April 2020 @ 21:30
    Painful to watch and poor transcript. Real shame, interesting topic but poor tech execution. I had to stop watching after 6min. :(
  • RM
    Russell M.
    6 April 2020 @ 20:48
    Interesting to hear her perspective vis a vis 2008 but nothing really new here. It was painful to listen to because streaming issues. Had the same sound problem with the China expert.
  • SM
    Stephane M.
    6 April 2020 @ 10:48
    Orwellian interview!! Free crypto money for every one (so we can trace you). I can't believe what I heard. I know you have to give voice to different point of view.... so don't delete my comment this time Milton ;-) Want a reality check??
    • DB
      Douglas B.
      6 April 2020 @ 14:15
      Martin Armstrong. He's about as credible as Alex Jones. Resorts to conspiracy theories whenever "Socrates" fails to predict the future, which is most of the time.
    • SM
      Stephane M.
      6 April 2020 @ 18:48
      To Douglas B.: Armstrong predicted a market TOP on BNN at the end of january. Go listen to it. Socrates predicted the REPO crisis in september. I don't understand your hatred but good luck with what's coming!! Cheers
  • HR
    Humberto R.
    6 April 2020 @ 18:40
    Taking a walk is just as fun as flying to Atlantic City?
  • PG
    P G.
    6 April 2020 @ 13:59
    This interview does not come up on my home page anymore. Is it only me?
    • MR
      Milton R. | Founder
      6 April 2020 @ 18:32
      small bump that we are ironing out right now
  • OK
    Oleksandr K.
    6 April 2020 @ 17:56
    Impossible to listen.
  • JD
    John D.
    6 April 2020 @ 17:29
    Horrible audio quality.
  • JA
    Jose A.
    6 April 2020 @ 15:59
    The sound on this video is so bad, it's near impossible to listen.
  • JS
    Jon S.
    6 April 2020 @ 15:59
    Stop the "stimulus". Let prices be discovered for goodness sake. There is always a buyer. How many times do we have to go through these crises?
  • PT
    Patrick T.
    6 April 2020 @ 14:16
    Sorry Milton, have to agree with the other comments referencing the sound quality.
  • IC
    Ian C.
    6 April 2020 @ 11:29
    I get it we’re in quarantine, but the sound quality made it un-understandable.
    • DK
      David K.
      6 April 2020 @ 13:11
      Would love to hear this interview but the sound quality makes it almost impossible. Such a shame. Hope you all can redo this episode.
  • BM
    Blake M.
    6 April 2020 @ 07:37
    audio quality is too bad
  • DS
    David S.
    6 April 2020 @ 07:03
    Another aside. I am trying to figure out what will happen to gold in the short and medium run coupled with my expectation of a continued bear market. The price of gold can go up or down depending on margin calls and US dollar demand from overseas for a myriad of reason. Outside of FX markets, there are many commodities that are bought and sold daily in many currencies all over the world. With Euros I could buy Bitcoin, gold, or copper. I could then sell the Bitcoins, gold, or copper for USD – maybe in the US. I could then pay the interest and/or principle on my emerging market US dollar loans. This would certainly seem to work on an individual basis. I do not know if it would work on a large scale. In addition, many CBs have gold reserves. CBs or countries could sell gold reserves on the open market -always a risk in recessions/depression - or to the Fed for USD. Venezuela sold a lot of gold to Saudi Arabia. Since I do not deal in international markets, I am probably missing something obvious here. IMO in the long run gold will be worth more. The problem for hyper people like me is the volatility of gold in the short and medium run. I guess I will just have to play around a base position from day to day. Any ideas?? Thanks for listening to me ramble. DLS
  • MH
    Matthew H.
    6 April 2020 @ 06:31
    Unfortunately, Sheila's audio was too hard for me to make out most of the time
  • DS
    David S.
    6 April 2020 @ 06:29
    Banks are not the problems it is the "hedge fund shadow banking system" that was bailed out this time by the Fed. The major banks would be in the same position if they banking laws had not been changed. DLS
  • DS
    David S.
    6 April 2020 @ 06:20
    An aside. Quote from Dr. Roubini ".. privatize the gains and socialize the losses.." pretty much says it all. DLS