according to the fdic, 61 banks have failed this year. they are tiny, they are blue, and we're not talking about a little box from tiffany's. they are ruling the box office. "the smurfs" beat out the expected winner "cowboys & aliens." it goes to show you that good things come in little packages. i know they don't have to have a white bow but i would prefer that. >> very good. thank you much. let's turn to rob. ian my 10-year-old and i saw captain america. he didn't like it. and you know that it's not a very good movie when a 10-year-old boy is like not so much. >> you lose your target audience, that's tough. i thought that was pretty good. >> all right. he said slow. >> really. i'll see smurfs, maybe not so much. 56 degrees now. we got some low clouds, not at ground level. 2,000 feet this morning. right now northwest wind at 7 miles per hour. and we're seeing 50s and 60s right now and chances are for the coast and san francisco we're going to stay in the 60s. it's a healthy sea breeze reaching all the way to the fairfield. good news for

that is true of the fcc and the fdic. marty got down there. he had only been there for three months and the chairman, don powell was a close friend of president bush's and stepped down as chairman to go to texas on the disaster recovery efforts going on in texas. and marty became the chairman. acting chairman. within four months of getting to the fdic. so i am reading the american banker next morning. i don't do that anymore but when i was -- i read that marty is acting chairman. i said i just read in the paper you have only been down there for four months. you are the acting chairman of the fdic. he gives an embarrassed laugh and says yes. is this a great country or what? but i do want to underscore the remarks by spencer and barney about the staff. they do a terrific job. they are incredibly dedicated people. a lot of the abuse of members take spilled out on the staff regrettably and i just want to thank them as they have already been thanks very much for the contributions they make. i served in the house for three terms and i didn't really

the shoring up of the fdic to undergurd the consumer confidence that bank account up to fdic limits woulde safe, that made it okay. i think the small local banks, community banks, regional banks, local credit unions are comfortable with them. they are uncomfortable with megabanks not because they are afraid of them but the level of customer service they are getting and level of inkpetens and people are worried about that. that's one of the reasons. banking is part of the thing. thing people are losing trust in more than anything else in this compromise in washington and i think the markets have lost trust in that. they don't see that this is really going to be a fix. if we can see there's really a fix, americans will step in and sacrifice together to get the thing fixed but if it's hammering one segment of the economy or another segment of the economy and nobody else is toeing the line, they won't be involved in that. >> is it ostrich time in the sense that when these big things start exploding in this volatile way, is sometimes the best thing to do stick your head straight in the sand ke

if citigroup went under with 800 billion dollars in deposits, we're bailing them out because the fdic funds. >> and this congress is going to bail them out? this congress won't let this president spend money on anything. >> they won't. >> they won't, that's the problem we've got. >> and i think if too big to fail comes back and bites them-- twice in a row the atm machine didn't work and-- >> got to have the money and-- >> and currently the money in and out. >> that's a crucial little jump. and then ben stein, how worried are you about another type meltdown for banks? >> not in the slightest, for u.s. banks, u.s. banks by any measurement that's commonly accepted by account ants are extremely well capitalized and standards are much thicker than in late 2008. we had a very solid banking system now and it doesn't require any kind of congressional action for the banks to be bailed out in the unlikely event they did require a bailout. the federal reserve could bail them out. there's no chance of another big bank failure and our banks are soundly capitalized and by the way, the french banks

as of june 30, the fdic total cast -- cash position was $35 billion. to have sufficient liquidity to meet all of our obligations. in summary, we saw further income growth based on improving trends and asset quality. lending activity shows modest improvement. the number of failures continues to diminish. the lender of problem banks fell for the first time in almost five years. the deposit insurance balance returned to the black. these were all positive developments. we also saw a continuation weakness in revenues. we are remindful that earnings growth cannot be sustained indefinitely by reducing loss provisions. recent events have reminded us that the u.s. economy and u.s. banks still face serious challenges ahead. the fdic will remain alert to these challenges going forward. that concludes my statement. i would be glad to try to respond to your questions. >> what would the revenue picture look like? trading in the accounts for the large part of the revenue that is not accounted for by interest earnings. i do not know if our staff will have a particular

the problems that you had a regulatory market that was splintered so you had the federal reserve, fdic, officer of comptroller, thrift supervision, department of defense, and hud having little spaces in the market, and things fell between the crashings, and also -- cracks, and the missions given to the agencies was typically secondary and subordinate to other missions particularly to bank safety and soundness which is a fancy term for bank profitability. abusive lending practices, the only reason to do them is because they are profitable. if you are the comptroller of the currency and your mission is ensures that banks are profitable, that puts you in a bind where you want to turn a blind eye to abusive practices because they are profit l. that led up to the housing bubble. >> for your assessment, this is something we needed to institute? it was an agency or bureau or a government program where you needed to institute? >> without a doubt. the financial crisis in 2008 came out of consumer financial products, out of mortgage products, that was the root of it. to ensure that doesn't happe

is yr weather >> keep and i rise on wall street we have word coming out that fewer banks are on the fdic watch list we saw the dow shooting of now up 130 and the dow getting closer to the 11,000 mark >> at 79 and a live look outside this is the golden gate bridge a big yankee pop today we will be right back . >> welcome back to the kron 4 morning news. you're looking at the nimitz freeway. the northbound lanes are in front of us just before davis strait. the left lane remains blocked after an overturned as a nuclear from elaine's. there is still a lot of debris. traffic is jammed up. over 30 minute drive * out of san leandro and to oakland. use interstate 580 instead. >> following developing information of libya, rebels are continuing to fight for rebel controlled tripoli. muammar gaddafi compound is under attack. >> we seek to contact of the transition council, we are looking for confirmation to discuss the surrender of the suspect. >> there is still no sign of muammar gaddafi. nato plans are flying over the right now trying to protect civilians. we will be right back. >> we are still t

it is born by holders to the extent it's not shifted to government, fdic, bondholders, or depositors. better distributed begin the high social cost of disruption. research provided considerable support for the views expressed here. even if there were some increases in lending cost as a result of increased equity requirements it's justify set against the benefits. there's very large societal costs for bank failures as said before. they can reduced by higher equity requirements. some have argued even if it makes sense in the long run to increase capital requirements, doing so in the short run can be costly, especially at a time such as this when the economy is fragile and the banking system weak. this is an argument for a pace increase in capital requirements, and one which would not allow diff deppedz or share by backs or extravagant bonus pools until the ratios are reached. one should, at the same time, be aware of the large risk under the current circumstances of delay. it is because the economy is fragile banks with inadequate capital and the aftermath of the crisis is more concentr

garrett to participate in the hearing and also fdic submitted testimony in writing and made part of the record. we have opening statements and the chair gives himself four minutes. today's hearing is about the rating agencies and topics will be fairly broad and covered a lot of ground. it is an important time to have this hearing. if you go back and look at the financial crisis and dodd-frank and all the things that followed some people indicated rating agencies had some culpability in the credit crisis. that ratings did not reflect the risks being taken so subsequent to that we passed dodd-frank and a lot of attention was given to the agencies in dodd-frank and those regulations have come out. some have not. one thing that was part of that was there was too much dependence on the rating agencies and particularly the financial institutions. dodd-frank asked the references to those ratings be really expunged and the regulators come up with new criteria for measuring risk that was not tied to the rating agencies. one thing we want to hear from our regulators is where we are in that proces

we will hear from the acting head of the fdic live at 10:30 eastern. at 11:00 a.m.on c-span 2, a discussion on homeland security challenges 10 years after 9/11. the panel will examine current counter-terrorism tools and talk about a number of terrorist attacks that have been foiled since 9/11. live coverage is from the heritage foundation. >> for politics and public affairs, nonfiction books, and american history, it is the cspan network's all available on television, radio, and online and social media sites. search, watch, and share our programs any time with our video library and we are on the road with their cspan to bu digitals bus showing events from around the country. it is watching your way. he sees the networks, created by cable and provided as a public service. >> "washington journal" business next where we will look at the day's news and take your phone calls. congress is in its august recess. the house will come in this morning for what should be a brief pro forma session at 10:00 eastern here on c-span. coming up this morning, we will get an update on t

regulators and its members include the federal reserve, fdic and s.e.c.president is going to try to win support for his plan to create jobs. >> we have to make sure if you're one of the millions of americans looking for a job, you can get the unemployment insurance that your tax dollars contributed to. we should help companies that want to repair our bridges and roads and airports so thousands of construction workers who have been without a job for the past few years can get a paycheck again. >> the one problem, steve and eric, is that those payroll cuts, that keep our money in our pockets as well as extending unemployment benefits costs the government over $120 billion when they actually did it the last time around. president hasn't said how they would pay for it this time around and when i say that washington wakes up in overdrive, the concern is that instead of driving an f-150, we may be driving a rusted out 1983 cavalier. can you tell what i learned how to drive on? back to you guys. >> i was in a 1963 rambler. thank you very much, adam shapiro repor

you're the acting chairman of the fdic. is that right? he gives an embarrassed laugh and says, yes, it is. i said, marty, is this a great country or what? [laughter] i do want to underscore the remargs that were made both by spencer and barney about the staff. they do a terrific job. they are incredibly dedicated people. a lot of the abuse that the members takes spills off on the staff regrettedbly, and i just want to thank them as they have already been thanked very much for the contributions they make. you know, i served in the house for three terms, and i didn't really run for the senate to get out of the house like some members do. i like the house actually. i really did. i look back on those days with great fondness, and i'm pleased to be back with you this evening, and i'm looking forward to my name sake and his comments here tonight. thank you, all, very much. [applause] >> paul, nawng very -- paul, thank you very much. it's my pleasure to welcome mike oxley as the keynote speaker. he was the first chairman of the financial service

it is born by equity holders of lending institutions to the extent is isn't shifted to government fdic or bondholders and depositors. given the high social cost of financial obstruction. recent empirical research provided considerable support for the views expressed here. even if there were some increases in lending costs as a result of increased equity requirements those costs have to be offset against the benefits. there are very large societal costs for bank failures as i said before and these can be substantially reduced by higher equity requirements. some have argued that even if it makes sense in the long run to increase capital requirements doing so in the short run can be costly especially at a time such as this when the economy is fragile in the banking system already is weak. this is an argument for an paste increasing capital requirements and one which would not let dividends or share buybacks or extravagant bonus pools until the desired capital ratios or reach. at the same time one should beware the larger is especially under the current circumstances of delayed. it is prec

feeling skittish experts say consider keeping your money in fdic accounts. same with car loorngs small business loans. the consensus is be cautious, don't freak out. >> you should put it in the stock market in a broad-based index. in a year, year and a half, this country is going to turn around, after it did after the abysmal decade of the 1970s, turned around in the '80s and '90s. this is the time to get in when everybody else is fleeing. >> you have to use your best judgment, but if you think that washington will come together on a balanced approach to growth on the deficit, then certainly the united states is the place to put your money. >> so who do you blame for the loss of the aa+ credit rating? everybody is pointing fingers at each other. president obama adviser david axelrod calling the s&p action a, quote, tea party downgrade. conservatives say if congressional lead wears have listened to the tea party in the first place the u.s. wouldn't be in this mess. >> the fact of the matter is, that this is essentially a tea party downgrade. the tea party bro

whether this is fdic -- then the government gets to set the rules. okay? to the degree -- >> what if setting the rule, small fantasy government is still bought by the banks? >> this is why you come in -- >> hold on. >> because -- >> one at a time. >> you're saying corruption is the cancer and the cure for this cancer is kill the patient. and that is absolutely fundamentally wrong. >> explain your view. >> the problem is not the fact government is ruptable. of course it is. you must make it harder for government to be corrupted, and government is corrupted by money. and you -- to do that you need to take so much excess capacity, so much extra money and get it out of the hands. power is a hero sum game. diminish government's power someone gets more power and that is going to be the rich who already-doctor. >> go ahead. please, please. >> can i ask a question? how about politicians and people ins they country gone more to the left and more to the right? reagan, for instance -- >> i'll tell you why i think that's the wrong question? >> okay. >> because all of

the point i made before, they continue to be engaged in by fdic ensured -- insured institutions makes no sense. the fact that they -- a large fraction of them continue to be over the counter and nontransparent and increasingly concerned that the exchanges themselves, there were not adequate capital requirements imposed on exchanges so there's a risk -- if it goes down again there's systemic risk. there should have been something done about that so the taxpayers don't have to pick them up. i'll put forward recommendations on those lines. the final point is the anti-competitive practices of the banking sector that controls the means of payments, the credit cards and debit fees are an outrage. our major source of revenue which distorts our economy and hurts ordinary retail merchants throughout our country. small businesses. again. grocery stores that -- there are some cases where 50% of their profits go on the sales of groceries are given to the banks. when they are paid for by credit card. i've seen disproportionate to the services provided. >> i can reduce mine to two themes. many of j

as of june 30, the fdic's cast position -- cash position was $45 billion. we have a clue it -- arising from bank failures. we saw further income growth based on improving trends and asset quality. lending activities should. the number of failures continued to diminish. the number of problem banks fell for the first time in almost five years and the deposit insurance fund balance returned to the black. these were all positive developments. we also saw continued weakness in revenue and we're mindful that earnings growth cannot be sustained indefinitely. only by reducing loss provision. recent events have reminded us that the u.s. economy and u.s. banks still face serious challenges ahead. the fdic will remain alert to these challenges going forward. that concludes my statement. i will be glad to try to respond to your questions. >> you took revenue from trading and security related activity, is -- what would the revenue picture look like? >> what would your assessment of the banking industry's health be with those numbers back down? >> your questions are rela

we will hear from the acting head of the fdic, live on c-span 3. the congressional black caucus met last week in atlanta to discuss jobs in the economy. seth johnson of msnbc is the moderator of this event, which was held at atlanta technical college. >> i want to welcome you to the atlanta technical college. that is something to clap for. [applause] >> it is an exciting day for us and i want to thank you for sharing this with a technical college. i am pleased that they decided to do this in atlanta, particularly the numbers -- after the numbers in unemployment. we had a lot of people who came here to hire people. and we have atlantic technical college, an agent in this growing community. it is my pleasure to introduce the moderator's for this evening, joann read and jeff johnson. evening, joann read and jeff johnson. joanne read is the managing editor and also an msnbc contributor. jeff johnson is an msnbc contributor and chief correspondent for thereall.com. please join me in welcoming them. >> thank you so much and good evening. [applause] one m

good news from the fdic that a number of failing banks shrank for the first time in almost five yearsrkets got a boost from the growing buzz that the federal reserve chief ben bernanke could announce new measures to help the economy later this week. but economists tell cnnmoney.com they think bernanke will not make such an announcement in his speech in wyoming, opting for a holding pattern to ride out the ailing economy. lots of buzz about this address because at the event last year the fed chief hinted at another round of economic stimulus which it imme meanted a few months later. >>> economic goods orders for july comes out in two hours. u.s. stock futures for the big three indicators are trading lower ahead of the opening bell. weighing on investor sentiment moody's cutting japan's credit rating. the reason, wide budget defici s s growing debt problems. after the announcement the japanese government unveiled a $100 million emergency package. >>> after a ton of consumer complaints facebook is switching up its privacy controls. users can choose who sees a photo or status update when

and having a decent amount of money in an fdic account yields a good term. you are close to retirement and worried, talk to a financial adviser before making any huge move. suzanne? >> thank you. good advice as always. >>> a fourth night of violence in britain. that brings us to today's "talk back" question. carol costello has your responses. >> the "talk back" question today, could what is happening in britain happen here? this from ben, what is scary is our access to weapons, which is a major concern. it's how this country was founded. u.s. history 101. politically motivated hull aguns. >>> and if it did, my anger would be towards the opportunists and thieves. this from tony, no, we riot about important things like when our sports teams win championships. sadly that is so true. facebook.com/cnn. you have a sports story. >> how did you know? i know you are a football fan. this is a new england patriots's player. chad ochocinco. he is getting acquainted with his own town. he is planning to stay with the team's fans. it will be a good way to learn his way aro

circumstances, that will i have a problem and it'll go down if the bank fails i have lay of insurance in fdicnd if that's what's important then you're absolutely in the right place and can't eat your heart out about growth if you're a saver. >> dee from st. louis. good morn together yoing to you. caller: i have a comment. throughout this show, there's been talking about citizens - the population increasing spending to increase or to improve the economy. at the same time, we're talking about the fact that the average household is spending anywhere between 138 to 110 percent of sco that's just to geby. when we want to start talking about the amount of salary dicrepe energy sis about what is in the average household. we're living off credit. we're not saving because we're trying to get by on you know, what little is being divided between salaries and companies trying to make their stocks look better and more attractive to investors. so or you know, bonuses for c.e.o's and i just don't think that - i think i appreciate the idea of saving and i agree with it, but when you look at the conflict in t

circumstances, that will i have a problem and it'll go down if the bank fails i have lay of insurance in fdic and if that's what's important then you're absolutely in the right place and can't eat your heart out about growth if you're a saver. >> dee from st. louis. good morn together yoing to you. caller i have a comment. throughout this show, there's been talking about citizens - the population increasing spending to increase or to improve the economy. at the same time, we're talking about the fact that the average household is spending anywhere between 138 to 110 percent of income and would say that's just to get by. when we want to start talking about the amount of salary dicre energy sis about whats in the average household. we're living off credit. we're not saving because we're trying to get by on you know, what littles being divided between saries and companies trying to make their stocks look better and more attractive to investors. so or you know, bonuses for c.e.o's and i just don't think that - i think i appreciate the idea of saving and i agree with it, but when you look at the c

we will hear from the acting head of the fdic. live on c-span 3. with the news that rebels took over the capital city of tripoli, though both said the gadhafi's regime was coming to an end and the situation in the country had reached a tipping point. he spoke from martha's vineyard. 0úoçç#$#$éyéÑéÑéÑñçn+ >> could it afternoon. the situation is still very fluid. there is a degree of uncertainty. there are still elements that pose a threat. this much is clear, but gaddafi regime is coming to an end. the future of libya is in the hands of its people. in six months, the 42-year reign of muammar gaddafi has unraveled. we were inspired by the protests the broke across libya. this longing for human freedom added to the voices we had heard all across the region from tunis to cairo. the fact -- the gaddafi regime responded with a brutal crackdown street civilians were murdered in the streets. a campaign of violence was launched against the people. gaddafi to threaten to hunt them down like rats. there existed the potential for wholesale massacres of innoc