Obama said, "I'm prepared to make a whole range of compromises"

[ProSense]

31. You

"The FDIC is now on the hook for trillions in derivative bets. It does virtually nothing. "

...don't really know what's in the law do you?

In addition to the legal proceedings, Bair has made the following remark, which spoke to the FDIC’s lack of statutory authority pre Dodd-Frank. In a response to the Inspector General for the TARP program, Bair remarked, "We were told by the New York Fed that problems would occur in the global markets if Citi were to fail. We didn't have our own information to verify this statement, so I didn't want to dispute that with them." In 2008, the FDIC did not have the legal authority to put large holding companies into its bank receivership process and little authority to access information outside of the insured institutions. Since these were holding companies, and not banks, the FDIC had to rely on information from other regulators. That is no longer the case. In 2010, the Dodd-Frank Act was enacted, expressly prohibiting bank bailouts by extending the FDIC’s resolution authority to close the largest financial firms and make their shareholders and creditors bear the losses without creating a systemic disruption. Dodd-Frank also gave the FDIC new authority to directly access information from large bank holding companies which are not in sound condition.13] [14]

http://en.wikipedia.org/wiki/Sheila_Bair#Criticism

Ends Too Big to Fail Bailouts: Ends the possibility that taxpayers will be asked to write a check to bail out financial firms that threaten the economy by: creating a safe way to liquidate failed financial firms; imposing tough new capital and leverage requirements that make it undesirable to get too big; updating the Fed’s authority to allow system-wide support but no longer prop up individual firms; and establishing rigorous standards and supervision to protect the economy and American consumers, investors and businesses.

http://banking.senate.gov/public/_files/070110_Dodd_Frank_Wall_Street_Reform_comprehensive_summary_Final.pdf