Sheila C. Bair

She will serve on the FDIC board through 2013.

The former aide to Sen. Robert Dole (R-Kan.) and career regulator was the leading proponent among financial regulators for direct consumer-mortgage assistance. In fact, at congressional hearings on the 2008 financial-bailout package, Bair recommended that $24 billion of the $700 billion rescue package should be used to help struggling homeowners. That proposal was praised by Federal Reserve Chairman Ben Bernanke.

"She very likely will be the only agency head to come out of this crisis with an enhanced reputation," said Camden Fine, president and chief executive of the Independent Community Bankers of America. "She may go down in history as one of the top two FDIC chairmen ever."

Under Bair, the FDIC has grown in power as a result of the bailout, and it played a critical role in the financial crisis by insuring banks and shoring up homeowners. It can now borrow as much as it would like from the Treasury Department, which increases its ability to help troubled banks. It also will insure up to $250,000 in consumer bank deposits and all debt issued by companies.

When the FDIC took control of IndyMac Bank after it became one of the largest bank failures in U.S. history, Bair used the opportunity to test her theories on the importance of refinancing consumer mortgages. She also protected consumers by brokering the sale of Washington Mutual, which held $188 billion in deposits, to JPMorgan Chase, without any cost to the FDIC's insurance fund.

"She's been great," said former House Financial Services Committee Chairman Barney Frank (D-Mass). "She's shown you can be concerned about consumers and not skimp on your job as a regulator."

In Her Own Words

"I believe that the Federal government should take a leadership role in encouraging private sector efforts to eliminate abusive lending practices, namely by encouraging the development of a set of industry best practices for subprime lending," Bair said.

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