the american bankers association's john chessen says today's move is a wash on bank balance sheets. >> it's going to have less impact on the banks and less impact on their communities. >> reporter: and banking consultant bert ely says the prepayments should make it easier for banks to raise capital. >> it takes a lot of uncertainty out of what bank earnings are going to be going forward with regard to deposit insurance assessments. >> reporter: but there is a lot of uncertainty in the industry-- more than 400 banks are now on the fdic's troubled list, and the agency expects to spend $100 billion on bank failures in the next few years. analyst andy laperriere thinks that's a lowball number. >> i think the fdic is going to increase their estimated losses, and this short-term measure of having the banks pay their fees up front probably is not going to hold us over through this cycle of bank failures. and i think, ultimately, the fdic is going to have to go to treasury and ask for a loan. >> reporter: while the agency does have a half trillion dollar line of credit at the treasury, bair s

. >> but the american bankers association is quick to down play saying so-called affinity cards are aimed at alumni and 5% of company co-eds got their cards from displays or events around schools. but more students are carrying plastic and spending big. a sally may study found half of all college kids have four or more cards and students are graduating with an average of $4,100 in debt. >> it's not worth it. not at all. if i could take it back i would have because i didn't know what i was doin'. >> but the consumerrers union wants to make sure students like tiara and their parents know what it takes to ace credit card 101. that's why they are pushing awareness saying you need to skip the freebies and shop around. read contracts to find the lowest fees and the low fixed raid. rate. they also advice telling your kids not to could sign for their friends and above all else tell them to skip that free pizza. years later tiara wishes they did. >> don't do it. >> josie sturman, abc 2 news. >> bank of america is the largest provider of student cards and ed says cards given to students have differ

this is according to the american bankers association. you can see some of the chart there.ernet banking is pretty big. see there's a section that says unknown. what is that? is that called my husband? yeah. whatever. wherever the money goes. >> it's not a majority yet. >> you must be sleeping in this morning or you don't care if he talks about you? >> i don't mean my husband. >> i thought you meant my husband. >> i'm ferocious about on-line banking. somebody else might be like, let somebody else deal with it. >> i let my husband deal with it. >>> an arizona couple is suing walmart and the state over photos they tried to develop. they were accused of sexual abuse over the photos of their kids taking a bath. their lawsuit says that walmart turned the pictures over to police. the kids were taken away last fall and the couple didn't regain custody for more than a month. >> here where were forced to sit and watch helplessly as they ripped our crying, screaming, terrified children away from us. >> we now realize how much control the state has and that they can pull any one of you

. >>> the american bankers association out with the selection of the 25 most powerful women in banking >>> meantime, we have that bond option coming up. it is terrific we have tom joining us, morningstar's reigning six-income manager of the year. he's with first pacific advisors, the co-managers of the spa new income fund, it's never posted a negative return in any calendar year since 1984. great to have you back with us, tom. auctions have been coming hot and heavy. the end the next year is the end of the '09 fiscal year and the government will have tried auction off off some i think it is $7 trillion worth of debt. you confident they're going to be able to continue to do that given this environment? >> it's not that they won't be able to continue to do it, it is just what's the price they'll have to pay to do it. you sort of look forward. whether you look at omb, which is from the white house or congressional budget office, they're expecting deficits the next five years of somewhere between $4 trillion and $5 trillion, which is additional borrowing that has to go on. >> do you think

the american bankers association actually did a survey recently in which they found that a large percentagestomers actually said they liked having the service and they wanted to have the payment coverage. host: nancy trejos, who covers personal finance and banking industry for "the washington post." you can read her online. nanci from sarasota, florida. caller: i actually have two comments. the first is relative to the banks making these fees and how they need this money. i am of the opinion that they are already being subsidized by interest rates being terribly low and the money they are able to loan very carefully, they are able to get a much higher return on. but that is the point. i was listening offline and i thought of that. the main point i called about is that my daughter who is in college bought a starbucks coffee for maybe $3 and incurred one of these $35 charges on her debit card. we were able to just stop that on the one line by just making the request at the bank. i would just urge people to do +ghçthat, especially with the students because they do not often know what is in the

americans are unemployed on their watch, but this legislation has real consequences for the economy, specifically in regard to job losses. based on an employment survey of private lending loan participants conducted jointly by the consumer bankers association, the education finance council and the national council education loan programs this program may eliminate up to 30,000 private sector jobs. nearly every state could expect to see job losses when the democrats, quote, invest in education, unquote. and remember this is in the midst of the worst economic downturn in generations. the question has got to be asked, is there any sector of the economy for which democrats aren't planning to have the government control and dominate, taking over the entire student lending system is the latest example after health care, financial institutions and auto bailouts. you could go on and on and on. the other side is clearly more committed to creating more bureaucracy than preserving jobs and more bureaucracy exactly is exactly what happens when you have a public option in this or any other arena. and the finances as my friend from wisconsin talked about would be laughable. converts the perkins loan program to a mandatory program, creates a new college

americans are unemployed on their watch, but this legislation has real consequences for the economy, specifically in regard to job losses. based on an employment survey of private lending loan participants conducted jointly by the consumer bankers association, the education finance council and the national council education loan programs this program may eliminate up to 30,000 private sector jobs. nearly every state could expect to see job losses when the democrats, quote, invest in education, unquote. and remember this is in the midst of the worst economic downturn in generations. the question has got to be asked, is there any sector of the economy for which democrats aren't planning to have the government control and dominate, taking over the entire student lending system is the latest example after health care, financial institutions and auto bailouts. you could go on and on and on. the other side is clearly more committed to creating more bureaucracy than preserving jobs and more bureaucracy exactly is exactly what happens when you have a public option in this or any other arena. and the finances as my friend from wisconsin talked about would be laughable. converts the perkins loan program to a mandatory program, creates a new college