Sheila Bair says banking crisis to worsen.

[moneysense]

Sheila Bair knew the mortgage crisis was coming way before it did, but she didnt think it would hit the banking community as bad as it has.

Bair is the chairwoman of the FDIC, said that the ailing bank industry was bad and getting worse. Ms. Bair is trying to ease loan terms for homeowners that are in trouble with their mortgages.

The number of bad bank loans is at its worst in 15 years. And, the FDIC has upped its list of problem lenders in the banking industry to 117.

Ms. Bair is trying to bring back some seasoned examiners that had been through the savings and loan crisis in the 1980s and 90s. Many have retired since then.

Ms. Bairs plan is to modify loans so that people can stay in their homes.

But will this be a little too late?