the chairman and ceo of hudson city bancorp with more than $50 billion in deposits.on, great to have you on the program. >> thank you, maria. >> thank you for spending time with us. institutional investor named you best mid-cap bank ceo, what does bank hudson city as the best-managed bank two years in a row. the 200 profits were actually up 60%. what are you doing the other banks aren't. >> it's the same thing we've been doing for all 140 years, maria, which is we carefully underwrite every loan that we do and, you know, one of our investors onced to me, well the difference is you underwrite to own and everyone underwrites to sell and that's a big difference. when you expect to have that contractual relationship with someone for the life of the loan as far as you're concerned you want to know more about them and you delve deeper than most folks have done when they want to sell loans to gse. >> i want to ask you about the types of loans that you specialize in, but let me get your sense on where we are in this cycle right now. how does the environment feel to you? >> w

and the second one the trio that you brought along hudson city bancorp washington federal first financialrthwest these are all relatively small cap companies in the banking industry was says these three part? i would tell you all of them had a construction and development portfolio but the portfolio was either a small portion of their benxi where you have seen most of the bad portions of those portfolios come to light and has increases they increase to of the construction and development portfolio get to 40 percent of the portfolio being bad and the last two quarters really haven't seen in increase which means they found problems. the other big difference i would say is in hudson city case hudson city had a construction and the ball and it porfolio but it was less than 1% of the institution. even though 44 percent of their portfolio is nonperforming it is pretty much and consequential to the whole thing. in the ownership positions in either of those trio? no i do not. michael along with us and opinion banking consultant with mti investments. online items while students prepare to head off

bancorp, ken lewis when they sad merrill lynch geiner and paulson ne essentially put ken lewis in theyve a lot and ordered him to bail out merrill lynch. if you put people in headlocks you could put the seal of u.s. bancorp and said phe reason that is important you can have 700 billion worth of commercial residential real-estate oil, ld, stocks andonds they had a lot of assets when you have a company that goes into bankruptcy come you have a reorganize the -- a reorganize there come in and they are just interted in selling assets and unwinding their risk and this was the most horrifying of unwind in theistory of all bankruptcy is. no preparation. of the documents, the initial document was only5ages long this is almost a 700 billion-dollar bankruptcy and the initial document that they've presented to the judge's only 15 pages long. this document should ha been pre-hundred pages to articulate how they would unwind theirisk per after it failed to have this and why did that was so nasty that is where when you're sittingt home and you remember how the stock marketent down every day that is

bancorp endlessly on any dip over and over again. that's why i bought them for my charitable trust. i knew they had to come in. they could take all they wanted and they're doing. it oil and natural gas down last week. what i chance to get in. even though the earnings were widely lambasted. you see, they had no choice. the big-shot money managers simply cannot catch a double-digit move from the sidelines. they can no longer hope that the market will come down because it's up too darn much. and most of them don't have the luxury of being up so much that they can leave the table. they're being forced back to the table where they have to place bets whenever any discount whatsoever occurs. and they know where they won't move the stocks with their aggressive buying. think back to bank of america, think wells fargo. oh, that's selling? they've got to hone every share they have. they can't afford to sell anything, they'll lose their exposure. they have too much buying to do here's the bottom line -- we are in self-fulfilling mode now. that's why i keep saying you you've got to show respect

decidioe i sigh zions bancorp up almost 20%. les moonves, the ceo of cnbc went out of his way to say the worst was behind them, some advertisers returning, and he anticipates a significantly stronger second half of the year for the company. once you start allaying the fears that credit quality is deteriorating larry, you get a nice move up in the financials. there's your leadership. >> let's talk more about the jobs report and the effect it will have on the economy. is the recovery coming onstream? the white house saying the recession is not yet over. are they down playing the economic recovery story? joining us to talk about this, former labor secretary and cnbc contributor robert rice. he's the author of "supercapitalism." and tom higgins, chief economist. and undisclosed location in maine, we have mr. steve liesman. mr. secretary, i want to begin with you. a lot of good news in the numbers relative to what we've seen. is the recession over, bob, in your judgment? >> no, it's not, larry. we are approaching the bottom, it looks

a lot of people now are bancorp and you are losing homes and pensions and all kinds of things because of health care, the number one reason for bankruptcy, and those people protest thing so violently, they obviously either they are set and they really don't care about anybody else or they are just ignorant. that is just my opinion. but it will be nice to be bipartisan beard but we elected barack obama on the plat form of health care reform bill and i encourage him to put forward and every one else to support him and be more vocal and to step out and not be so quiet. host: victor, silver spring, maryland. the line for republicans. caller: i cannot believe the last two callers. obama is extremely dangerous. he is a marxist and the people around him want to bring the country to the east germany of 1957. and i'm going to speak out. it is my freedom to speak out. and i am sick and tired of these liberals who get on their and don't want anybody else to talk. someone brought up the fact there may be a race war. fine, bring it on. host: new york city, a drink, on the line for democrats, you a

cullen frost, bank of hawaii, west america bancorp. look at cullen, they have 1.5s.ly 50 basis points of charge-offs. they are adequately reserved in my opinion. there are other banks that will have lower than peer loss rates through the cycle. if you want to position yourself, i could live with that. >> reporter: what about commercial real estate, we didn't talk about that. how bad of a hit is that to the banking system? >> it's going to be interesting. half of that asset class is owned by investors so we won't see the restructurings. >> reporter: inside the bank. >> right. i think commercial will be pretty grim. we work in that sector. we is a joint venture partner out in california that does disposal. i think it will be tough. loss rates on commercial will be much higher. >> reporter: you said blood bath in the fourth quarter. after the backstops from the government, are we in a shape to take this blood bath and not have a panic the way we did a year ago, or is it a potential we could get to the abyss again? >> well, i think we're not dealing with the level of unc

today or i got across today the point that reflects the characteristic of our culture for khallad bancorpis to perform and support the warfighter and do with the right way. that there isn't a separation between performance incompliant. it is one integrated thought. that is our job come to perform and satisfy the warfighter and to have the right way and i just want to thank the commission for your time today. thank you very much. >> thank you. i reiterate many of the same feelings. .. decades. we do take it seriously. we to strive to work hard, and we will continue to strive to try to get the recommendations of the d.c. a so that we can get this yellow and red box to a green. add to appreciate your time, and i look forward to our future meetings to discuss the other items that came out of this. >> thank you all for your closing comments. and with that we will adjourn. thank you, commissioners. [inaudible conversations] >>> topics at today's state department briefing include relations with egypt. the president of the country mubarak meets with president obama tuesday. we will also hear abou