FDIC's Sheila Bair said that an unnamed foreign bank's US operations have a capital deficit. She may have been talking about Deutsche Bank, and she was right to raise the bank in making her case for stronger regulations.

In a letter last month to an industry group called the Institute of International Bankers, Sheila Bair, chairwoman of the Federal Deposit Insurance Corporation, went to considerable lengths to defend a part of the Senate's financial-overhaul bill that aims to strengthen capital regulations.