>> bank of america customers get the heck out of that bank. >> that is democrat senator dick durbin telling folks to run away from the biggest bank. he is ticked about the five dollar monthly debit fee on cards. when a senator calls on run of a bank fears of financial collapse is running wild. i am dave asman. we'll have steve, and elizabeth and mark and morg an and dennis and kim . so kim, was he calling for a run on the bank? >> he was . washington is not in the business of encouraging run on banks and jamie diamond. chairman of j.p. morgan got it right. if you don't allow for a soda in the restaurant they will charge more with the burger they have

taken out 15 billion of bank revenue. neither one is good for the economy. >> mark, it doesn't take much to cause a run on the bank. back in 2008 when the banks were in trouble we saw runs on indy mac and that bank doesn't exist anymore. >> you are absolutely right. the problem here is simple. earnings here are up in the banks and revenues are down. banks are trying to recapture the revenue and doing it in the wrong way. they are raising fees on consumers who can't afford it. here is a proem that the system is federally insured deposit and banks are encouraged to take rick and pay big bonus, then in trouble, taxpayer and consumer pay for the system is broken. >> but banks are part of the a capitalist system and have to make a problem.

if reckalators force them to do to cost money they will raise it. >> democrats and republicans are bashing the banks. it is the most cynical kind of attack on any business. when the government whalops a line of revenue, you owe it to the shareholders to make up the revenue. if the politicians who did this. this is a bipartisan effort decided to do it without fees being raised elsewhere. they are either fibbing or worst and lame on economic policy that we feared. >> the problem is, the banks took all of the money in the tarp bailout and making trades and buying gold and foreign curiencies . so dick durbin is playing to a sympathetic crowd, no? >> seriously. i mean, these banks can afford the fees.

citibanks 26 billion in revenues. bofa yes, reported a loss in the latest quarter due to costs to the legacy mortgage issues . but core business. 5.6 billion. they can afford a few regulation. they racked in 940 billion dollars since the credit crisis so let's not feel sorry for them. >> on the other hand we have bank of america tock going down to close to 50. if it is below five dollars a share. they are in trouble, no? >> i think government involvement is keeping the sector down and the economy as the whole. i think it is irresponsible to call runos bank especially bank of america. they are forced by regulation to liquitate their assets and laying off tens of thousands of

people and now revenue cuts from another end from the same regulation. it is bad for the business and economy and people who are hurt the worst by this are you and me the consumers. we have checking account that is are costing money and we have given the banks another incentive not to lend to prospective home buyers. and the banks, no one knows it better than you do. they have a lot of lousy assets on the books and the stocks is down in the tank and for the politicians to say get the heck out of the bank. this is like crying fire in a crowded theater. >> it is alarming that dick durbin did this. it is due to swipe card price control fee increases that they passed themselves and banks are reacting to and banks

telegraphed they would hike the fees. i am not saying they are gouging. they are . swiped card fees on credit cards will not stop the financial melt down. that will not stop too big to fail. that was the intend of dodd-frank that no one read. >> surprise. they don't read the bills they pass. >> what do you think needs to be done? banks have a lot of cash on hand and the economy is so shaky and you think that the government should take over and force that money out. >> no, i don't. i think the banks, this has to be tied to ricks. they should pay more in the system and they don't. >> what if they don't have the money? >> i think they do have the money. things are not great but put the fee in perspective. they are less than 10 percent of

total industry revenue here. the big money is loans and trading. >> dennis, go ahead. >> i wanted to clarify. durbin did not call a run on the bank and you will not get your money out. he called for a boycott. tarp, we are so mad about tarp. tarp got paid back by the 20 largest banks. i several owed 250 billion. they will not raise fees. when the government get the banks not to raise fees by jobs welding torches they will control your business next. >> and the press conference on thursday, do you want to dictate the profits and he said no. but that is the sense you get out of washington. >> show and not tell. >> i think i heard what you said, dennis, you can't tell

banks what to do with the money or assess the fees. >> we came close to nationalizing the banks in 2008, when they were in trouble. >> despite the president's rhetoric that's what they will do. they will turn them in a virtual. >> it would be stagnation and no job creation. >> they fired people at bing and bradley in great britain. i am saying break up the banks. they assess any fees they want. >> kim, we are talking about more than the banks breaking up. we are talking about the government directing how to deal with the loans? >> i think the government has a little bit of a say. we bailed it out. >> they paid it back. enough already. >> they owe them. they owe the taxpayers a little

bit right now. >> they don't owe them anything. >> when they were in trouble we came to the rescue. >> if you want an industry. >> if you want a industry to come back to health, you don't rip out 15 billion in regulatory and expect it to be friendly to the economy. >> why do we keep the same failed management in the banks. >> we'll have to leave it at that and an interesting discussion. herman cain shooting to the top of the polls and his 9, 9, 9 economic scheme is gaining steam. cashing in gang is add thag up but first big ben telling dc's big spenders don't stop now . keep spending. but is the fed chief flat out wrong in or creates another laptop bag

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>> there are more than a hundred people under arrest in new york. in what authorities are calling the largest identity theft bust ring in u.s. history. 111 suspects with ties as far away as'verica were indicted for ripping off americans and europeans. they stole credit card number forged credit cars and a key government panel is advising that healthy men should no longer receive the psa blood test that check for blood cancer. some doctors are critizing that proposal and said the panel went too far and puts men at risk. much more at 1:00 eastern. i am jamie colby. back to forbes on fox. have a great day.

>> ben bernanke warning congress this week. don't cut too much spending too fast or you will kill the recovery. explain? >> ben bernanke was right. the soviet union would exist and triple a rated country given all of the spending. job creators have faced a juggernaut of reform in three huge sector. finance, energy and health. i am not saying they shouldn't have been reformed but in a targeted and more limited way and extended way . not in one fell woop that terrified job creators and make them feel like they are stranded with what is coming out of the washington. strong dollar policy and tax cuts and cuts in regulation and nondefense spending and you will see the economy boom. >> bernanke is wrong, dennis.

if we want more jobs we have to cut back and not expand it. >> we are making the mistake of 19thren. back then recovering from the recession well and then suddenly boom. gop falls nine percent. and stock market loses half of the value. why? a study showed that government talked about cuts and deficit worris and need to raise interest rates too early it is not the cuts themselves. it is the debby-downer thing. debby-downer. >> and that is bad. >> steve didn't the double dip have something to do with taxings. >> the government did sutantially raise taxs and put in antibusiness regulations and crippled much of the industry. >> sounds familiar. >> and that is what 19thren was . the thing on government spending, where does the money

come from? through borrowing or taxing or printing money. take resources and put in the government sausage factory and that is stimulus, give me a break. >> that doesn't make sense. ben bernanke is probably wrong according to steve. >> i actually think he's not necessarily that wrong right now. we will look at cuts. start with the justice department, but where jobs are concerned. i think we need to proceed with caution and recent report came out announced firings were up over 200 percent and a big chunk is government jobs with more government jobs expected to be cut in the coming months. jobs are a huge part of us having an economic recovery. whether they are government or not. we need to proceed with caution. >> oh, not. >> i have one word for you concerning government spending. solyndra. that is a perfect example.

>> of course, and david, our nation's debt is at 15 trillion and that is roughly equivalent to all . good and services that our country produces. inflation at a 3.8 percent annual rate and in october, earning estimates for the s&p 500 were cut to the lowest level in april. things are getting worse and not better and washington is the reason why. >> we need to shrink government and not grow it? >> i don't know if that is the attack i would take. but things are better tha they were a couple of years ago. >> in what way? >> well. >> certainly not employment standards. >> there are risks that are raised but look at the auto industry. they are hire producing better cars. >> we took it over and it is our tax money to redo the company. >> this came with government

help. i know you don't think government does anything rightt on the show. but give the government credit. >> steve, steve, first of all chrysler is a foreign car company now. it is fiat that is managing it. unions were given the other 60 percent. fiat got 40 percent. and there's more to the industry than autos. thisthis is the weakest economy. and blow out on spending and that takes resources from the private sectors and gives it to politicians >> morgan. do you think we are better off. >> and it is a debt that came over. >> go ahead. do i think we are better off than a couple years ago? not necessarily. i think we are slogging on the bottom. i think in the private sector we need jobs. >> but wait a minute. >> we are ignoring those.

it is habitually self defeating to think that government spending is the way to cure everything. it is like trying to drink yourself sober. >> the tax cuts will solve everything. >> and name one recovery that came from government spending. >> i won't. >> coming up next. the auto industry is turning around. but new labor deals slam the brakes on the recovery? [ kristy ] my mom is well...weird.

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so american business can get on with business. ♪ >> a warning that the labor contract could drive the industry back off of the cliff . buckle

there is new evidence that automakers are entering expensive labor contracts again. multithousand signing bonu and increased profit share millions for new plants and thousands of new jobs, kim, you are worried that these are the type of labor deals that bankrupted the industry years ago. >> how quickly we forget what led up to the autobail outs and go back to 2007, the big three had a loss of 15 billion dollars. why? massive pensions and ridiculous sal reese. detroit has the highest paid manufacturing workers in the world. they can't stay competitive. >> they are in danger of slipping back of the union contracts. >> i am not as worried as kim.

this is a good deal for shareholders. they are front load we know what they are. ford's autoworkers are productive in sales per employee and 786,000 per sale and highest operating income and twice general motors or toyota. what does bother me, it doesn't dey fine the pension obligation. >> if this hurts at all. blame management and not the unions. uaw is getting as much money as it can. what i want to know is why ford getting cocky. u2 style ad. i wouldn't buy a bail out car and bail out companies are doing it as well. general motors paying $5000 bonus in and how come the protestors in occupied wall street are upset about the banks

and top 20 paid back tarp and profit . not upset about gm paying bonus to workers. >> are you worried about this? >> i am not worried about the signing bonus and i hear what you are saying about the profit sharing. it looks like a good deal for taxpayers because gm is essentially on the government dole. they have no increase in become pays and new hires get half of the pay of veterans . the issue is, that you want to have solid economic policies before you bail out the car maker to get them to grow again. if we go in a double dip car sales will plummet and gm will be back in the government's emergency room. >> steve what do you think? >> for once it is not too bad it is front load a one-time costs. but gm and chrysler have to

remember. cono more autobail outs. house republicans are going to block it. i am sure ford did because they never took the bail in the first place . no more candy from uncle sam. >> our informers have funds that keep you safe. bring your pen and paper. p

>> when the markets look turbulent. safe is good and utilits. >> i like utilits . companies in the area they are to return. - reform. >> morgan, how can someone so boyient recommend that.

the utilities and i like the s&p 500 and rsp. renounce squarity pants. most of the time you buy on the s&p 500 you get the spy. but this rsp did 12 percent. it is cheaper. >> i could beat that. for me is 12.1 four percent with a balance fund. and morgan over a 12 month period. do you like it? >> i do. it is very safe but there are better way to see bigger urns. utilities. >> thanks, gang. >> that's it for foshes on fox. have a wonderful weekend. thank you for watching. the strongest block continues with charil casone