so the fdic sees them. so how come along when you folks who knew that the fed was that really -- that the data could help you distinguish what was real honest cash flow versus state earnings, that later analysts were scrutinizing the data that was going to be collected for consolidated enterprise and the nonbank subsidiaries. >> well, a couple things. i think you are right about the analysts. we should be engaged more. we created a complex financial restitution when i was at the fdic and we have a monitoring unit that we find more private analyst reports. there is more ongoing exchange of information with private analyst. so i think that is number one. i think the information is still complying primarily to insured banks. at least the stuff coming my way was going to insured banks. that is not to say that we couldn't her authority services including financial statements, perhaps could've done a better job of looking at that and we didn't. but as deposit insurer, perhaps our systems are geared toward support

so the fdic sees them. so how come along when you folks who knew that the fed was that really -- that the data could help you distinguish what was real honest cash flow versus state earnings, that later analysts were scrutinizing the data that was going to be collected for consolidated enterprise and the nonbank subsidiaries. >> well, a couple things. i think you are right about the analysts. we should be engaged more. we created a complex financial restitution when i was at the fdic and we have a monitoring unit that we find more private analyst reports. there is more ongoing exchange of information with private analyst. so i think that is number one. i think the information is still complying primarily to insured banks. at least the stuff coming my way was going to insured banks. that is not to say that we couldn't her authority services including financial statements, perhaps could've done a better job of looking at that and we didn't. but as deposit insurer, perhaps our systems are geared toward support

so the fdic sees them.so how come along when you folks who knew that the fed was that really -- that the data could help you distinguish what was real honest cash flow versus state earnings, that later analysts were scrutinizing the data that was going to be collected for consolidated enterprise and the nonbank subsidiaries. >> well, a couple things. i think you are right about the analysts. we should be engaged more. we created a complex financial restitution when i was at the fdic and we have a monitoring unit that we find more private analyst reports. there is more ongoing exchange of information with private analyst. so i think that is number one. i think the information is still complying primarily to insured banks. at least the stuff coming my way was going to insured banks. that is not to say that we couldn't her authority services including financial statements, perhaps could've done a better job of looking at that and we didn't. but as deposit insurer, perhaps our systems are geared toward supporti

first, the statement, the fdic guaranteeing the money and the banks.y went from 100,000 to 200,000. why has no one ever been told how long it would take the government to pay in case there was a failure? that was a statement. with the banks being consolidated, what happens when the last bank is standing? thank you. guest: i am not sure i understand the last part of the question. banks dsometimes get broken up. when they fail, there are multiple ways of resolving them. with the biggest banks, breaking them up into pieces and selling the pieces is probably how it would be resolved typically, and that is what happened with lehman brothers. ithe units were sold off bankruptcy. the u.s. division, some of the u.s. divisions for brought by barclays european division. asset management was spun off in a different way. it is not necessarily to is concentrating. there are thousands of banks in the united states and thousands around the world. they failed, they get dismantled and sold off. but there are always other banks, and you were banks, healthier banks that

along with this information came the revelation that the fdic insured unit was already stuffed with $53 trillion worth of these potentially toxic obligations, making a total of $75 trillion. i remember the shock when the federal deficit hit 1 trillion dollars and is now over 14 trillion. derivatives are highly bought tile incident -- instruments are mostly used for speculation. they're based of the value of stocks, bonds, commodities, and the volatility of financial indexes and even the weather changes. many big banks, including bank of america issued derivatives because if they are not triggered, they are highly profitable to the issuer and result in big bonus payments to the executives to administer them. if they are triggered, the obligations fall on the corporate entity, not the executives involved. ultimately, by allowing existing gambling bets to remain in insured banks -- the obligation falls upon the u.s. taxpayers in dollar-denominated savers. [applause] >> good afternoon. i'm a counselor with just cause and i along with other community organizations see every day the ways in w

they had to go work for the fdic. none of them ever got fired. the savings- and-loan industry encouraged to hedge their home mortgage portfolio. here is the dilemma. you cannot have lunch a home mortgage. when interest rates started to fall, they prepaid their mortgage. the regulators decided that you could not make money in home mortgages. they forced the savings and loans to get into the commercial real-estate lending business. shopping centers, office buildings, commercial property. they helped create a commercial real-estate bubble that burst in the early 1990's. only a handful made it through that cycle into that vacuum is where fannie mae and freddie mac took over the business in the u.s.. bb&t, we could head are risks because we were making loans to businesses. we could not compete with the federal government. they are leveraged 1000 to one, they have lowest -- the government guarantees your debts and you have an advantage. right? they did not do subprime mortgages. they drove all of the private participants out of the marketplace. by the

banks have been longtime supporters of the fdic.'s a great partnership we can work with their stuff and they can work with us to a less mature they stay on the program and a big way. lastly i just want to make sure you understand by raising taxes on a carried interest for small fund managers like mechem buhle the impact will be that i will have less capital to put into small businesses. the management fee that we heard pays for the overhead of the business, and we only make money on a carried interest if our companies prosper and grow, so think you. >> mr. chairman it's my pleasure to introduce to the committee the president and ceo of the credit union located in corning new york. he's testifying on behalf of the national association of the credit unions a leading advocate of america's credit unions and all of their members to respect and good morning, tramp, ranking member velÁzquez and members of the committee. my name is gary grinnell and i'm testifying we appreciate the opportunity to participate in this discussion regarding fin

the fdic has to go along with it. people who are close with six of the said pressed for it. we are increasing the taxpayer subsidy, helping it get bigger? pushing us more towards the kind of point we get to make the decision that we protect the credit or not and if you don't protect the credit of goldman sachs, goldman sachs or anybody else hypothetically in trouble now, what happens? with the scale of complexity and openness we have to steadily. it's a time bomb. we must defused the bomb and to get smaller. everything that we have done, with all due respect to people who have worked hard on dodd-frank and people did, i know. but honestly, the net effect of the bailout what has happened subsequently, despite the legislation, despite in some points it is worse, the situation is worse than it was before to those and seven. the figures are distorted. if given the to to address as the cycle changes gets bigger. they absolutely do not have enough capital to withstand the shock. if the had enough capital, the bank -- of bank of america, if merrill lynch had enough capital to withs

the failure cost the fdic $2.2 billion. >>> today jurors in the trial of michael jackson's former physician conrad murray heard from a medical examiner who repeat that had jackson caused his own death. doctor christopher rogers testified jackson could not have given himself the lethal dose on propofol. reporter claudia has the latest from los angeles. >> reporter: dr. conrad murray listening to himself talking to police two days after his only client, michael jackson died. jurors hearing the remaining tapes of the interview he gave to the lapd. murray describing how he consoled mother kathryn jackson after she was told he was rushed to the hospital and died. >> he's not dead, is he? the doctor said yes. and she broke down. >> reporter: kathryn jackson breaking down again in court as the tapes continued to recall that day. murray recounting how he broke the news to michael's children. >> they were really weeping. i stayed there and hugged them all and give comfort. >> reporter: the tapes allowing murray to give his version of the events that day without exposing himself to cross examination.

. >> reporter: she can also complain to the fdic which would pay her out if they find the bank at fault. each state has an unclaimed property program where money is supposed to go if you don't claim it. and the state of utah told her they don't have her money. >>> thank you. >>> life-saving drugs are in dangerously short supply. and they are being sold at huge markups. a cbs news investigation finds out whose profiting at the expense of helpless patients. that story tonight on the cbs evening news. ,, ,,,,,,,,,,,,,,,,,, a one o >>> i'm dana king. here's something we're working on for eyewitness news at 6:00. a one-time only offer. how to get 50% off your parking tickets. and inside the occupation. the elaborate support network bay area protestors have created from the library to the health clinic. so we'll have that and much more at 6:00. >> thank you. >>> and thanks for watching. the cbs evening news with scott pelley is next. the latest news and weather is always on cbssf.com. >> good night, everybody. >> caption colorado, llc comments@captioncolorado.com

supervisor avalos: with the fdic around when they got started? >> i do not know if it was. that may have been part of the reason for it as well. what advocates of the bank of north dakota and public banking have pointed out is that the state of north dakota has a low unemployment rate, 3.2%, and they achieved budget surpluses during the last couple of years. the recession starting 2008. and then have been able to extend credits after 2008 when we saw the credit freeze on the part of private banks, affecting public agencies and many small businesses and other enterprises. finally, and last point, related initiatives. this gets to be rfp question. there was some discussion about it, including a requirement in the rfp being prepared by the treasurer and tax collector's office for banking services and whether or not the city could make a requirement or provide extra points in scoring bidders if they're providing a higher level of investment for the local community. and there is some concern, and the city attorney has expressed an opinion on that it may not be allowed under stat

the fdic which insures banks is expected to sue other failed local banks are spending practices. >>and oak lawn coppel has purchased the iowa farm where the 1989 classic " field of dreams " was filmed. bob jordan is live in the loop with reaction from the couple >>that was a great movie a baseball classic called field of dreams ... now a chicago couple said they want to go to iowa to buy the area around those legendary corn fields said that kids can go there to play baseball they believe in the same mantra of that movie if you build it they will come ... >>we believe the impossible the incredible comes true >>the incredible will come true for denise and mike spillman when they close on that farm and i a one known as the field of dreams ... those rows of corn will be a beautiful new facility with 12 major league quality baseball feels we are very proud a partner of the chicago white sox will partner with us to help develop the project >>there watch the bradley classicclassic movie together while coeds at bradley university and now the couple hopes to develop the property said that

the fdic said today that there's a big number shelled out to prevent another banking failure crisis >rlines is the latest to announce deeper cuts to seats grounding 11 planes next year to deal with high jet fuel costs and a weak economy >>experts say that ticket prices could stay the same. >>it's the kickoff of earnings season with alco of reporting results after the closing bell today. >>looking at where the markets are trading it's a mixed bag with a slow day ... this earnings season is crucial for traders with stocks trading just above their market territory >> still ahead find out what is growing faster than the u.s. population but first it is often the first stop for mexican immigrants in chicago next the church and the priests who are a part of the foundation of the city's pilsen neighborhood an accident doesn't have to slow you down. with better car replacement, available only from liberty mutual insurance if your car is totaled we give you the money to buy a car that's one model year newer, with 15,000 fewer miles on it. there's no other auto insurance product like it. and if

bank failure will drain losses from the fdic. it's happy hour somewhere.k about happy hour. more restaurants are offering happy hour to draw budget conscious consumers. restaurants are offering drink and food special to boost sales during the down time between lunch and dinner. applebee's at a late-night happy hour last year and now accounts for big stock of its total sales. that is business news. live at bloomberg headquarters in new york, linda bell reporting for abc 7 news. back to you. >> thank you. >>> so that is what everyone is up to. >> we don't know anything about that. >>> 62 degrees. >> we will be right back. ugh, time to color. woohoo! whoa. haircolor is a chore no more! you gotta come see what's new. c'mon! tadaaa! welcome to haircolor heaven. aa-ah-ahhh! courtesy of new nice 'n easy colorblend foam. permanent, dimensional color now in a delightful foam! just three shakes, foam it, love it! simply saturate hair root to tip, front to back. with tones and highlights. it's foamtastic! home haircolor make room for foam haircolor! new nice 'n easy

. -- $2.5 billion to fdic. they're the first senior bank officials to be indicted for defrauding the tarp fund. their bank taken over by east west bank of pasadena. >> police say a man faund found dead in the bay view was not shot and was discovered around 4:00 this afternoon in the parking lot of a public housing development. investigators are still trying to figure out how he died but say they've determined he was not shot and it's possible he could have died from natural causes. if the east bay, police arrested the man seen here on the ground. officers say the suspect is a parole. the chase started at contra costa county. the suspect got off at powell street. police stopped him near marketplace shopping center. >> talk to any cop, they'll tell you the gang problem is bad and getting worse. a lot worse. gang investigators converged today to share information on how best to fight this growing problem. and there is no easy answer. >> no easy answers but hard working cops at this conference trying to make a diff

. >> you should make sure the online bank is fdic ensured. >> some of the online banks allow you to takeicture of your check and deposit it that way but there are things you need to figure out. what do you need from your financial snution >> if you're uncomfortable with strictly digital banging, think about other options -- >> credit unions which offer free checking and lower fees. >> that was linda ba kara reporting. the downturn in the economy is hurting babies and with the release of the iphone, it spells out more black bare bad news. research in motion is reported in our bloomberg business report. tgif. >> research in motion, the company behind the blackberry has had some week. after restoring service to users, compensation claims from u.s. users and next damage control as its reputation as a maker of secure and reliable email devices has been tarnished and the apple iphone 4 s comes out and google and sam sung revealing its latest destroyed phone. google is trying to ink deals with record companies to start its own music store to go head-to-head with apple's itunes. >> and the compa

. >> and the primary supervisor is -- >> the federal reserve or the fdic. they provide an assessment of the application to a committee of supervisors. we wanted to have checks and balances so that they were being too tough or too soft that there would be a second glance. about allow for a pretty careful -- that allowed for a pretty careful review. were they had confirmation from their banks and they were able to reflect that in their process. i do not know where we could have appealed to someone besides me a judgment by the supervisor. i do not think he would want to be in a position where you would have to do with the judgment of an individual supervisor but a committee of their peers to make sure that they were not being too tough or too soft in evaluating the merits of an application. i agree with and share your frustration and if they apply to only one-third of the money and it took us this long to put these safeguards in, but once we started to get assessments, we moved very quickly. >> is there any opportunity 4 cents dollars billion was allocated to

>> because they have maintained their portfolio at a certain level or they get shut down by the fdic. banks shut down in the last year, beat the number that was shut down the year before. why? because of fdic rules, some of them are so scared that they're going to step outside of a rule and be shut down that they just don't get as creative as they could get. >> reporter: could you consider being someone's vice president? >> i'm in it to win it. becoming president of the united states of america. >> reporter: somewhere down the line, if mitt romney came to you and said, i think we'd be a great team -- >> it would depend upon who it is, and would depend upon the understanding that we could reach about how they saw my role. i'm not saying no, but it'snot an automatic yes. >> thank you so much. i so appreciate it. thank you. >> a pleasure. thank you so much. >>i think, ali and christine, that was herman cain's seventh interview of the night besides the debate. he's getting himself in front of a camera as much as he can. perhaps -- i know he said he was really -- you know, beat up during t

fdic insurance and s.e.c. regulations so you can invest on wall street and they can't cheat you too directly. for 50 years we have no bank failures, no major crises. it works. gets to be the early 1980s. we go with this idea of let's get rid of reguregulation. what happens? late 1980s savings and loan crisis. should have been a warning. late 1990s. should have been a warning. early 2000s. enron should have been a warning. we let it go. where do we end up? in the biggest crisis since the great depression. >> we're here to inspire a nationwide movement. >> we're here to inspire a nationwide movement. >> joining me now, adam green, whose organization the progressive change campaign committee was at the protests today in new york. also former louisiana governor and current republican presidential candidate buddy roemer who met with the protesters today in new york. thank you both for joining me tonight. buddy, this is your second night in a row on the show. can i call you buddy? >> i'm going to make a conservative

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posted leaders in government and politics such as the former mayor and california house speaker and fdic chairwoman she liber -- shiela bair. she has the distinction of being both a k.u. graduate and being recognized as one of the most powerful women in the world. we have had commentators like bob woodward and david broder. one of his last appearances was at the dole institute. we give students the opportunity to learn first hand from leaders in the field. those events are bipartisan and have included people like dennis moore and the press secretary to senator dole. i would challenge you to compare the programming at the dole institute to harvard and i know you will be impressed with the dole institute. all events are open to the public and conform to the institute's mission of expanding the dialogue. on behalf of the university and on behalf of the dole institute, i want to thank you for your generous support. it is also possible because of the generous personal contributions of the doles themselves. of all the events i have been too, one of the most inspiring is the annual swearing in

he said this came out in 1929-1930 after we created the fdic which performed i think so brilliantly in helping us to confront this financial crisis, so i would like to see what the fsoc report says about what americans can hope for and plan for, for a more stable future financially, and thank you for your service. >> i don't think i can improve on how you said it. what the financial reform law does is establish the basic protections we did not have to prevent americans from being victimized from not just fraud and abuse from per dation, but from the type of risk taking we saw that almost brought down the american financial system i am very confident with these reforms we little l build something that's going to benefit more than the average working person but businesses to raise capital and we've all seen what happens when you get that basic balance wrong. it hurts everybody, not just the impruden't but the innocent victims in this sense. what i would say generally is you should be demanding better results from washington in things that can help the economy now, because even with the s

. >> are you many could go out against the fdic?g an fdic -- >> i wouldn't have created. wurns they have the taxpayer money, it gives the liberals the excuse to try to regulate. i wouldn't put a tax on it. i would try to build down the bailouts that still exist. >> what we are going to do in the the bailouts. >> thank you. >> end the bailouts, and the reason the ratings of some of our top banks fell is because we finally convinced the rating agencies that we're not going to bail them out again, and i've got -- >> let's not talk about the rating agencies. uh-oh. >> if you're going to cite the ratings agencies, they consider bailouts very likely. give dodd-frank credit. now -- >> it is exactly these reforms the republican leadership are blocking, not implementing, and not letting the reforms goethe forth. in addition, why don't they have a hearing on the president's jobs bill and their proposal? let's have an american debate instead of just saying no to moving. i think it's incumbent upon all of us in america to listen to what the pro

but remember, you also want to stay within the fdic rules so we don't look to you have more than $250,000e bank like you, mr. big shot. >> oh, yeah. right. [ laughter ] >> you have not seen my bank balance. i'm a poor tv guy. come on. >> jill, a lot of people really are worried about the fees and they want to know how they can avoid them. can you give us some tips? >> reporter: absolutely. when you are tempted to swipe your debit card, user rewards credit card instead. this may seem counter en toive, but banks profit more on credit cards so where debit card rewards are evaporating, credit card rewards are actually alive and well. of course, you have to make sure to pay the full balance every month. >> hello ?! >> reporter: just like you did with your debit card. >> hello ?! >> reporter: i know. you should also shop around. if you are willing to shift your accounts from one of the big banks to an online bank, you can still get debt rewards and remember, mistakes can be very costly in an environment where banks are actively looking for new ways to boost fee revenue so read the fine print on

back the 2 98 million dollar tarp loan officials estimatelesss of 2 and a half billion dollars to the fdicgovernment insurance program for bank deposit is, the men are the first senior bank officials in the nation to be indicted for defrauding the tarp fund. the bank was taken over in 2009 by east/west bank of pasadena. >>> for second day and night protestors are taking part in the up oakland demonstration. so far oakland police are not citing people for camping out like this. tent city sprung you up in the plaza outside city hall yesterday. at one point hundreds of people were calling for economic change. protestors say this gathering is just one way to send a message to wall street. >> many things we can do. we control the market. our money. every time we make a deposit. every time we pay a bill. we are making that corp are the giant stronger f.we would invest that in our community we would be just as strong. promise you that. >> tomorrow afternoon another group of protestors plan to launch up wall walnut creek at mountain diablo boulevard and locust street. >>> in new york up wall stree

with regard to the fdic deposit insurance gives help the a great visa have i the large banks. but let's talk about these regulations that are so demonized in general. are we regulating stocks and driven tis? they want to see when the loan officers can ride rough shot over the regulators. yes, we do say that people who are advising people on investments should have a fiduciary responsibility. chairman comes from a community that's had a serious problem because they were advised to get into a financial investment that was a disaster. and we put into the legislation a new regulation. the new legislation is people in the future who are advising a deficit county would have a fiduciary responsibility to that entity. i'm very proud of that. i think that's a good thing. so i would like for on? tell me what is it in particular that they are objecting to? the regulators are there to serve the banks. that's not exactly what he meant but we did have a situation where the bank regulators were the arbitrators of issues and we said no longer will that be the case. by the way there were not n

it is exactly analogous and parallel to the fdic.it accounts are insured up to the same $250,000 with the same full faith and credit. host: democrat from rochester. good morning. caller: i just wanted to touch base on his last comments. there were billions lost on derivatives by those credit unions. the credit unions themselves have to bail out these wholesale credit unions. it is placing them in peril with financial stability. can you comment? guest: i agree with everything you said about it -- except about placing them in peril. the have $90 billion in capital, the ability to absorb losses. the losses that will come out of these wholesale credit unions, the remaining amount is somewhere between $4-$6 billion. the total loss initially was around $13 billion. the worst case is that we will take $13 billion out of the $90 billion and they will still have $80 billion to managed the losses. it is a huge expense that the unions have to pay, but because it is taking less than $15 billion out of a pull over $90 billion, it is not putting a

he went on and on and said that this came out in 1929, 1930, after creating the fdic, which have performedo brilliantly. i would like to hear what the report says about what americans can hope for and plan for in terms of a more stable future financially. thank you for your service. >> what the financial reform what does this established the basic protections we did not have to prevent americans from being victimized by fraud, abuse, but to limit station, and everything that brought down the american financial system. it will be to the benefit of not just the average working family, but the kids in college that need to buy a house. we have all seen what happens when you get that basic challenge wrong. you should be demanding better results from washington to help the economy now. even with strength and reforms in the financial system, we have an economy that is not growing fast enough. we have got to ask to protect ourselves from those things and do things to make the economy better. i think that this argument you have heard about what is hurting the economy now being in excess of regulati

financial institutions federally backed by the ncua national credit union administration, like the fdic banks they do loans, i've got my mortgage at a credit union, banking regular accounts checking and savings the difference in terms of how much money you are going to spend and where the profits go to. >>> what is the difference between a bank and credit union. >> good question a few things one, let's point it out credit unions didn't take tarp money they didn't have to here is why credit unions are not-for- profit organizations a bank is for profit they pay their board of directors really the decisions the board of directors make are really based on how much money can we make. go to a credit union we are talking about a not-for-profit organization with a board of directors all volunteer based. money that comes in profits that come in, go right back out, to members in the form of lower fees, higher dividends, better interest rates, or in terms of just enhancing service credit union provides. >>> who is join? that might be a big stumbling block people might not know who can join a credi

dodd-frank, all these to protect the consumer, to make sure if you're going to be a bank backed by the fdic you're not going to be putting taxpayer money at risk and that's fine and good, but the fear is that's going to eat into the revenues even more of the banks and at the end of the day, they are profit house, that's why they are stocks that are traded every day, martha. there's a lot of questions right now. martha: crerl, thank you very much -- thank you very much for answering some of them for us this morning. bill: opening bell in moment, meanwhile, there is breaking news on a wild police chase for dozens of exotic, mature and aggressive animalling -- animal, talking about tiger, bear, wolves, giraffes? the sheriff of that town joins us with brand new osmtion on the hunt this morning. there are four school districts closed as a result. martha: plus there's a man who says last night's republican presidential debate was a, quote, game show in his opinion. he says wanted no part of it. candidate jon huntsman on why he skipped vegas and if he still thinks this morning that that was the ri

i know that they ahead of the fdic have been looking at a series of guidance standards to temper that risk of excess caution. but i suspect there is more to do. in the aftermath of the big credit boom, standard too loose and then they overcorrected. the market can never correct sometimes and supervisors can reinforce that. that is why we need capital programs. if banks have capital, then the banks are more comfortable taking the risks that they can take. >> the other issue -- this is a little off topic -- i think it is important to the underlying concern that we all have, which is how to get the economy moving again. we still have the housing market that is not functioning. the number one constituent concern that i had since i was elected has been hearing from people in new hampshire that are facing foreclosure and the difficulty, not with our community back, but with the big banks that are still not willing in any real way to engage with homeowners on modifications and looking at how we can keep people in their homes. some people are unable to do that for a variety of reasons. but th

my name is roger davis, cofounder and managing partner of north creek, a $70 million fdic fund locatedin cincinnati. to put that in perspective that puts us at the small end of the range for sbic funds and fred we think that is a good thing. we can focus on smaller companies. my partner and i are lifelong bankers to small businesses and when prominent was sold in 2004 we set out to create a fund dedicated to lending and investing in small businesses, really continued what we love to do at the bank. the credit crunch in '08 and '09 really serve as a catalyst for the creation of our fund. our research quickly listed as bic program for several reasons. we were comfortable with the regulatory oversight, licensing process, the program is targeted exclusively toward small business where we felt there was the greatest need. a good answer let our private capital through the use of low-cost leverage from sba to venture program. to me that sbic pro can is the perfect example of a public-private partnership that works. so in the spring of 2010 would open our doors for business. the biggest surpri

have new rules to maintain that cushion and some banks will tell you that the regulators, like the fdicey complain, but the regulators do not want them to make mortgage loans because they are too risky right now. they are urging them to get these mortgages off their books. the loan modification programs, that is paid at the end of the day. once you have succeeded in keeping up your payments over a certain amount of time, the bank will get a small check, maybe $1,500, $3,000. i do not think of the bank profits. it is meant to cover basically their paperwork. host: there was more of a profit margin for the banks, you think that would be an incentive for them to work with people to get more money out into the housing markets? guest: yes. the problem is there is still a complete lack of confidence in the housing market. there are some people getting into the business called high- touch servicers. you're starting to see an increase in that type of service. they believe there is profit to be made in that business. in addition, the banks have come up with their own programs in addition to hamp

other big banks are passing along part of the cost of the fdic to the customers.n some community banks are pushing back against the regular cash accounts. >> here is this don strum, owner of american national bank and premier bank in colorado and he says we just don't need it anymore. >> right. >> if you had more money than you knew what to do with would you want more? i mean, this is more evidence of cash sitting on the sidelines, more evidence of why this economy is in so much trouble. mike, isn't that fascinating? >> what's fascinating is that they clearly have all this cash on hand and yet the requirements for lending have been ratcheted up so high in the wake of the 2008 collapse, they don't lend to enough people. >> but also the people that have the $2 trillion on the sidelines aren't going to invest. >> because they're afraid that they'll just lose their money. >> not only that but in addition to the quote that you just read from the story how about this one? in august bank of new york mellon warned it would impose a 0.13 percentage point fee in the deposit

what the fdic does with small banks and then they take a good, honest look at theirs books. with gm and then they restore it to health under new ownership. that was a big fight in '09. secretary geithner of the vw you don't want to do that, might be bad for market confidence. better to throw money at them, better to prop them up. if obama gets a do-over and faces this again with, let's say, bank of america, and i should say i'm speaking hypothetically. i don't want to cause a run on the bank, this time use it's new authority under the dodd frank act and do something like they did with gm, which actually worked. >> you know, i can't envision another bailout because of all the protests going on on wall street. the tea party, a political force, and the tea party didn't so much love the idea of a bailout. i just can't see how that would happen again. >> no. and what i'm saying is, i'm distinguishing between a bailout where you throw money at these banks that got us into trouble and don't require them to change their business model. none of the bankers that caused the crisis lose