Federal Deposit Insurance Corp. Chairman Sheila Bair on Friday said the financial regulatory reform measure in the Senate will bring an end to "too big to fail," and she defended the measure's $50 billion resolution fund, which would be paid for by large banks themselves.

"This a process the FDIC has long used for banks. It is a process smaller financial institutions have to deal with," she said on CNBC. "We think larger institutions should have to deal with the same kind of robust process that imposes the losses on their shareholders."

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