The Care Bair -- FDIC's Sheila Bair Wants Principal Reductions from Banks With Loss Sharing Agreements

``FDIC CHAIR, Sheila Bair is stepping up her effort to prevent U.S. home foreclosures, using the agency's relationship with lenders to make change. The agency now is considering whether lenders that acquire banks should share a larger portion of the losses on loans whose principal is cut, and whether the FDIC will recover the additional subsidy through reduced foreclosure rates.''