Diane Casey-Landry, Chief Operating Officer and Senior Executive Vice President of the American Bankers Association expressed her frustration that banking regulation and the bailout of American International Group (AIG) or the failure of Lehman Brothers are mentioned in the same breath.

Speaking at the Federal Reserve Bank of Chicago's 45th annual Conference on Bank Structure and Competition in Chicago, Casey-Landry stressed the separation between the banking industry and financial institutions and insurance companies. Yet, members of Congress often fail to make that distinction, causing confusion.

We have a congress that wants to reform the banking structure - then they turn around and talk about AIG, she said.

Of the 8400 banks and thrifts in the United States, the vast majority of banks are well capitalized, they are healthy, they are lending, Casey-Landry noted.

Yes we have some institutions that have had some challenges, she noted. It's been a very difficult time for the banking industry.

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