Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., writes that lawmakers and policymakers should jump at the opportunity for a meaningful overhaul of the financial-regulatory system. Bair notes that although a way to wind down major financial firms without posing a risk to the broader market has not been proposed, the FDIC has a resolution process that would work. "Going forward, this model should be available to close large, failing firms. This means banning government assistance to individual companies and forcing them into orderly liquidation," Bair writes.

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