Larry Kudlow Reports On His Interview with FDIC's Sheila Bair

Kudlow writes:

One interesting highlight was her comment that commercial real estate loans remain a "looming problem" on banks' balance sheets. She expects this area to be a driver for bank failures through the remainder of this year and into 2010. And she remains firmly opposed to the idea of a single super regulator. Incidentally, I still think she's absolutely right about needing competition among the regulators, with various checks and balances. The Fed has not earned its uber-regulator status.

Bair sees the inside numbers, so she probably knows how weak things actually are in the commercial sector. She is likely not making predictions on where commercial real estate prices are headed, but what she actually sees.---Not a good sign for commercial real estate.

As for regulation, the less regulation the better, and an uber-regulator is simply madness.