Renewing her call to expand regulation of investment banks after the collapse of Bear Stearns, FDIC Chairman Sheila Bair said a receivership and resolution plan should be created to maintain order in the markets and minimize losses for all parties involved.

"The government cannot be put in the position of having to simply write a blank check when these institutions get into trouble," Bair said in prepared remarks to be delivered before a group of financial professionals.

Bair was referring to the move taken earlier this year by the U.S. Federal Reserve to provide discount window liquidity and a credit guarantee of $29 billion to Bear Stearns, which is being acquired by JPMorgan Chase (NYSE:JPM - News).

Bair said the Fed was forced to intervene without having a "playbook" to deal with an investment bank failure. "The Fed had to invent one on the fly," she said.

Although the FDIC does not regulate investment banks, Bair's views could help shape the debate in Congress on how to regulate investment banks in the future. Chairman of the U.S. House Financial Committee Barney Frank plans to hold hearings to explore restructuring the regulation of financial institutions, including investment banks.

Bair urged Congress to consider the future role of a prudential regulator for investment banks, the process to orderly close down an investment bank and any potential bridge bank structures. "Housing all receivership and resolution responsibility in a single federal regulator may make sense," she said.

Meanwhile, the FDIC board will soon consider proposals on how to treat a bank's derivatives and other financial contracts in case it fails, Bair said. The proposals would likely require banks to maintain specific information on so-called qualified financial contracts, she said.

"We must decide whether to accept or repudiate all positions held with an individual counterparty," Bair said.

(Reporting by John Poirier, editing by Mark Porter and Leslie Gevirtz)