An Explanation for Sheila Bair's Erratic Behaviour

It was obvious from the start that FDIC head, Sheila Bair, was pushing for Citigroup to acquire Wachovia at a sweetheart price, then Wells Fargo stepped in to bid on Wachovia and screw up Bair's early Christmas gift to Citi.

It is now clear that Citi is a financial wreck and Bair was most likely attempting a stealth bailout of Citi via gifting it Wachovia. Oh my, what regulators can do.

John Hempton of Bronte Capital had some early speculation on what was going on n this blow-by-blow analysis