http://finance.yahoo.com/news/Senate-to-remove-backdoor-rb-337663675.html?x=0&sec=topStories&pos=3&asset=&ccode=
The U.S. Senate Banking Committee will remove a provision from the financial reform bill that bank regulator Sheila Bair said could allow for "backdoor bailouts," a panel spokeswoman said on Friday.
Sheila Bair, chairman of the Federal Deposit Insurance Corp, told a conference of community bankers earlier on Friday that the agency had "serious concerns" about a provision in the bill that seems to allow the Federal Reserve to rescue Wall Street firms if their functions were critical to the markets.
That provision will be removed in an amendment as the Senate Banking Committee debates the draft bill, committee spokeswoman Kirstin Brost told Reuters.
"If the Congress accomplishes anything this year, it should be to clearly and completely end 'too big to fail,'" Bair said at a conference of the Independent Community Bankers of America.
Bair said small banks deserve an even playing field and that larger institutions are still enjoying benefits from an implicit government guarantee.
