the problem unfortunately is in 2006, the federal deposit insurance corp. essentially speaking for all the regulators, the federal reserve, the fdic and others, said that more than 99% of american banks were highly capitalized in the highest of standards. it would have been very difficult to make any form of legislation that would have raised the capital requirements. and so the problem basically is if you are sitting there as a central banker knowing that you have just been through, from 1983 to 2005, 2006, eight period of extraordinary stability and the euphoria is starting to build, because it's not altogether crazy to believe that this long period of stability, that the next six months are going to be stable. it's not craziness. the problem unfortunately is what happens is the system will break down. it will not only break down but an unnecessary condition for when it breaks down is that nobody expects it to happen. there aren't awful lot of people who are out there saying you know we forecast -- with a forecast is what everybody forecast. we were in a b

headline interview between ron brownstein and sheila bair the former chairman of the federal federal deposit insurance corp.. ms. sheila bair surf from june 2006 through june 20111 f. we would agree the most tumultuous periods in the history of the nation's banking system. she was working to bolster public confidence in the financial system and bring more stability to it. prior to joining the fdic to us at dean's professor of financial rate it a policy for the isenberg school of management at the university of massachusetts amherst and she has received numerous awards including the john f. kennedy profiles in courage award. she has twice been named as the second most powerful woman in the world why "forbes" magazine and she was named by harvard university and "washington post" magazine as one of seven america's top leader so we will hear from sheila bair and she will be interviewed by my colleague ron brownstein. ron has had two stints with "national journal" and atlantic media. in between he was the national affairs columnist and political correspondent for "the los angeles times" and while there was twic