you get something from the fdic. you sit up and take notice. our joce sterman is looking over the stricks of the trained and she puts you on high alert for a scam. >>> plus, towson held its first ever military appreciation day by saluting soldiers. >>> it's been a wild 24 hours. 50 at bwi. yesterday's rain well over a inch. our winner is ver ron cra from columbine high school. congrats. you get an abc2 storm umbrella and the question, how much longer will you need. this we answer it on the flip side of this break at 6:00. ♪ [ male announcer ] for our families... our neighbors... and our communities... america's beverage companies have created a wide range of new choices. developing smaller portion sizes and more low- & no-calorie beverages... adding clear calorie labels so you know exactly what you're choosing... and in schools, replacing full-calorie soft drinks with lower-calorie options. with mo calories, america's beverage companies are delivering. >>> scam alert monday. the thought have losing money would get your attention but that's what

if you get an email, the fdic doesn't do business with individual customers. if there is really a problem with your account, you will hear from your bank. joce sterman, abc2 news. >> if you get a fake email. ccc says contact your bank independently to make sure there aren't problems and send an email to fdic fraud department. >>> find more on this story and other scam alerts at our website, abc2news.com. click on the money tab at the top of our home page. >>> new study finds women's life spans improving at a slower pace than men. the data gathered from 1989 to 2009. researchers at university of washington found life expectancy improved for men 4.6 years. 2.7 years for women. >>> it started early because of our unusually warm winter. we are hitting the peak of allergy season. means sniffling and seasoning. what can you do to find relief? there are over the counter antihistamines that are affective. turn on your ac. that's right. air-conditioning. >> the the air-conditioning can be affective with the air- conditioning, you cut down on the pollen count by 90% or

overall, the fdic performed very well. we closed about a banks. 60 minutes did a piece on a bank failure. that was a high risk decision i made. you let the crew in you never know what's going to happen. i had faith in our resolutions people and our process. we let them accompany our resolution team on a bank failure and it went just as smooth as silk. they all did after indy mac. it was wonderful. a gentleman and his wife came in with his suitcase with his wife he was going to pull all of his cash out. we had greeters at the door talking with him. and after they talked with him more, he decided okay, i'm going to leave my money in here and "60 minutes" filmed the whole thing, when he was leaving he was saying how wonderful the fdic is. it was a very big confidence instilling process and worth a lot more than all the paid advertising and public service messages that we had done. it was really -- it was -- it turned out to be a very good thing to do. >> what's your sense -- i don't know if your friend peter schefft is still

tool and the federal reserve is working close to the fdic there. the idea is to apply the same kind of bank resolution tools that the fdic has used many years on domestic banks to large complex financial firms. obviously the complexity makes that a much more challenges task, but i think we're making progress there. we have put out rules about so-called living wills, which would require large financial firms to, who essentially plan out how they would be disassembled, and we've continued to talk with international colleagues about how we would cooperate if a multi-national firm had to be put into receivership. and indeed, part of the reason that there's been some down grade or potential downgrade for some u.s. financial citizeinstis is the judging of the ratings agencies that these institutions has is less than in the past. and so i think ultimately what we'll need to have is a situation where large firms are both making judgments about their size and complexity based only on the economic benefits and costs and not on too big to fail considerations,

. >> former fdic chairman sheilah bear now discusses regulations to protect investors. she says there's a difference between free markets and free for all markets. she spoke at the atlantic magazine's economic summit. this is about a half-hour. >> i couldn't help but think when we were listening to larry lindsey and he kept referring to the sympathetic media and whether or not i was a part of that mess. i'm going to try to be very hard hitting. sheilah, good to see you. we've had fantastic conversations today. there have been a lot of digs. people have been taking decision at the other side ideal lodgely. i've seechb things all over the place. people are ingesting information about the bank stress tests. because you were here today we decided to move up the results of the stress tests from yesterday. now they're out. when you and i talked about this on tuesday morning you suggested that not everybody was going to pass with flying colors. giving your evaluation first of all of your stress tests. >> the stress tests was to determine what the bank's tangible risk based ass

tool and the federal reserve is working closely with the fdic there. the idea is to apply the same kind of bank resolution tools that the fdic's used for many years on domestic banks to large complex financial firms. obviously the complexity and international aspects of these firms makes it a much more challenging task. but i think we're making progress there. we have put out rules about so-called living wills, which will require large financial firms to essentially plan out how they would be disassembled. and we've continued to talk with international colleagues about how we would cooperate if a multinational firm had to be put into receivership. and indeed part of the reason that there's been some downgrade or potential downgrade for some u.s. financial institutions is the judgment of the ratings agencies that the so-called impolice it government support that these institutions have is less than in the past. i think ultimately what we'll need to have is a situation where large firms are both making judgments about their size and complexity based only

the fdic is working on a database that gives each phone an identification number. >>> the car maker is now recalling about 140,000 cars. the passenger side windshield wiper motor may be missing. ford says water may accumulate in that connector causing the wiper motor not to work at all. ford would notify owners around may 21st. >>> and if you're buying a new car it could be proving to be not very economical. on average buyers pay nearly $2,000 more last month for new cars than they did in march of 2011. overall auto maker incentives are down compared to a yore ago and dealerships are being tougher when it comes to negotiating prices. >>> a new program is going to be beginning to help d.c. families struggling to make ends meet. >>> how it will give families the opportunity to find a job with their own wheels. >> news for you and a special session that's in the works. >>> and the winner has come forward to claim their part of the maryland mega millions jackpot. more on the news conference lottery officials have planned in about an hour. >>> and dry and windy conditions making for a red f

it basically created the role for the fdic to intervene. i don't really see the fdic being able to do that with these large firms so it will probably be a lot again if they get into trouble. that of course is unfair because they get the x'ers banishes of relying on the fact that government will come in and rescue them. in the meantime there's an enormous number of regulations coming out of the dodd-frank bill. they are affecting the smaller institutions and they don't have the ability to fight them off as much. i would think -- think one inc. improvement and i have argued for this, we have the reform of our bankruptcy code so it would be possible for large financial institutions to go through bankruptcy process without figures of chaotic effect on the markets. we have done a lot of work on that and that was discussed in some detail in the book. there is a lot of interest in moving in that direction now so that we don't have to do the bailouts. so there are lots of examples where the markets are not providing the constraints, the incentives

it basically created the rule for the fdic to going to intervene. i don't really see the fdic able to do that with large firms will probably look a lot again if they get into trouble. and that of course unfair because they get the extra advantages of relying on the fact the government will come and rescue them and in the meantime, the enormous number of regulations coming out of the dodd-frank bill arafat and the smaller institutions and they don't have the ability to fight them off as much. i think one huge improvement here and i've argued for this is that we have a reform of our bankruptcy code so it would be possible for even large financial institutions to go through bankruptcy process without the fear of chaotic effect, markets were showing a lot of work. that is actually discussed in some detail in the book and its live in that direction now so we don't have to do to bail out is lot of examples where the markets are not pervading the incentives they could put all of them are due to things the government is doing to interfere with the market op

the fdic says 30 million or more than a quarter of all households fall into the category overline onash. studies show that many of those were under banked do have access to the huge debt, wal-mart is tapping into that. >>stanley: they were not beating drive the but i wish i did say the same for this driver. sweetheart. we need to talk. i've seen your stunts online. i can explain... jumping a ramp in a shopping cart. so 2005. wait, what? and only 3 likes? honey, it's embarrassing. carol's son got over 12 million views on that dancing squirrel video. don't you want that? i...i suppose. now go make your dad and me proud. try something funny. [ male announcer ] now everyone's up to speed. get high speed internet for $14.95 a month for 12 months. at&t. >> i did not get caught beating badly. at the the fit. >>stanley: bleeding if it might work in court but it is a moot point when you had this to say. >> i got caught, was guilty. >>stanley: >> your decision is expired, your in the carpool lane and he did not have proof of insurance and, you have a commercial license. you have to take care o

now have resolution procedures that banks when they get sick in theory, the fed, the treasury, the fdic can put them down in a more orderly manner. no one has ever shut down a major bank trading operation cleanly. some point you have to stop the music, if you're going to resolve it. shut down the trading positions and value them. and no one wants to be exposed to that. if you're a big hedge fund or big trader you don't want to have your positions frozen. so the notion that you can have a bank that's people think is in trouble and say we're going to have dodd frank resolution, we won't have these run, it's -- it's -- i'm very concerned that we're not there. >> so the short answer is no. >> is no. but this is the frustration. >> i wasn't being facetious at all. you have a book coming out which, if i quickly advertise it the destruction of shared prosperity and the road of economics and 20% off as well. that might -- do you agree that the hero is ben bernanke? >> that's two questions. question one. dodd frank would have had some effect. and i'm reading dodd frank in the broad sense of toug

starting in the next five years, usa fdic and agencies within usda need to focus on technical assistance. what i've been saying to this point independents case that regulatory agencies need to increase and get infrastructure, some training, but there needs to be the laboratory facilities and the trained people somewhere actually assessing whether this is happening. and we think it's crucial that this happen in the countries of origin or closer to the places of production, rather than after the finished product is starting to work its way into the u.s. so a supply chain can get defined, we need to look at how that can be handled. domestic action. i talked about enterprise risk management, and what this really comes to is -- is the agency has very specific mandates, and it has to follow very specific approaches for approving drugs, for testing food safety, but what needs to be happening is, where are the problems? there needs to be resources allocated to fda, but there needs to be an ability within fda to determine where those resources best need to be put. we've talked about a lot of aspe

the fdic has reorganized their own staff to separate consumer protection staff from other staff so that they can make sure they have a more direct focus on the same issues. >> remember, the " is a separate organization. that is your point? >> yes. the two issues go hand in hand. i do not think even have a safe and sound financial institution that is not treating its customers in a sustainable basis for long-term. if they are eating their customer base by exploiting them in the long run, the kinds of things that have consumer protection concerns, they will not be a safe and sound institution in the long run. there is much more harmony in this concept and people recognize. i would agree with you, collaborating closely with fellow regulators to make sure that we are not inadvertently -- we certainly do not in it -- do not intend to inadvertently undermine anything about a safe and sound financial system, which would disturb consumers. >> however, since we lost the argument for inclusion in one organization, or in one entity for these functions, as the chief pointed out, you could share the

strongly advocated by the bush administration in the sense that they were right sheila baer, head of the fdicben ber benake. they had two choices. they could pay all of the debts or pay none of the debts and let them collapse. so the lehman brothers collapsed and it froze up the economy everywhere. ben bernanke said this is crazy. if a large financial constitution today can't pay its debts and we do a lot to try to keep that from happening, but if it can't pay their debts they go out of the institution. if a large institution can't pay its debted it's abolished. the shareholders are wiped out. the officers are fired. the board of directors are fired. secondly we give discretion to the administration, you know what, if none of these debts were pay, that would mean that other people could not pay etc., etc. we will only pay as much of the debt that we need to prevent there from being a collapse. but third and most important anything we pay out would be recovered from large financial institutions. so it will not cost the taxpayers. we abolished the provision that the feds use to lend $80 billion

the federal deposit insurance corporation or fdic is said to be trying to recover the money from thead loans that the bank handed out. the lawsuit accuses the defendants, including jim mcmahon of super bowl shuffle fame approving the loans despite warnings that they were risky. >> newt gingrich says he has no regrets about running for president, even if he does not win the g.o.p. nomination. he admits it's looking like mitt romney will be the nominee and newt gingrich says he will support the nominee. analysts say this sounds like the beginning of the end of the gingrich campaign. here listen. eej glad i did. this for me it was good for a citizen to bring new ideas and approaches. it turned out to be much harder than i thought it would be. it was the right thing for me to do at that point and where i thought the country was. >> shepard: newt gingrich says is he staying in the race, partly to push for a conservative g.o.p. platform. campaign carl cammeron is live in washington. how long must he he stay in the campaign to achieve that goal, carl? can we tell when this might end? >> wel

the bill says it prohibits the federal reserve or the fdic from bailing out a failing bank. >> says it fairly clearly, doesn't it? >> says it rather directly and it says the stockholders will not benefit, the management won't benefit, creditors will be put at risk. in effect it says you've got a failing financial -- a big financial institution that people worry about the effects of the whole system, they get in trouble, the government can take it over. and at the end of the day that institution will be liquidated. and the government will get any money back that it put into it, because it will be the most protected lender. so that is a system which i think is a fair system. whether it works or not has never been tested. >> but why is so much attention focused on the volcker rule? >> well, i think it's coming now to the point where it begins to take effect as a legal matter. >> in july, right? >> in july, so i think that has kind of focused attention. and there are a group of big banks that are actively involved in this. and they're afraid that it will curtail more ordinary trading activ

shelia bair is the former head of the fdic, the federal deposit insurance corporation.hen our country was in the thick of the financial crisis, she was tasked with shoring up our banks, a job she did very well. now, she wrote in "fortune" this week that if the fed does not raise rates soon, america could be heading for another bubble. fed chairman ben bernanke was asked about this in congress, and he responded. >> i think that keeping interest rates low is still appropriate for our economy. as for the bond bubble, interest rates are low for a lot of reasons. they include monetary policy, of course, but they also include a weak economy, low inflation expectations, and safe haven demands for u.s. treasuries. so, of course, interest rates will arise at some point. we hope that they do, because that would be an indication that the economy is recovering and strengthening. >> if interest rates rise, it's an indication that things are recovering and strengthening. shelia bair joins me again. always a pleasure to see you. >> thank you, ali. >> when we talk about gdp, it's the b

i mean, they were -- i think sheila bair, now coming to know, the chairman of the fdic, running the fdic, she was one of the early people to go to -- in sight to go to greenspan that the fed and say look, this is looking rather dangerous. there is another now that mr. mr. gramlich, who was governor of the fed, he was raising concerns by 2004. but people from wall street who started to bet against subprimal loans in 2005, but you could say unfortunately no one really raised the alarm when i might have made a difference. c-span: in this next clip mark pittman, and i know that he's died since then and i will ask you about that in a moment, and also david is it attasani, a mortgage broker. but before we show this, where did you find a mortgage broker? >> guest: david attasani was not a mortgage broker to be he worked on wall street for a number of firms and he asked us in fact not to mention the various firms where he worked, but they all would be extremely familiar to you come and, you know, as he describes in the film, some of them no longer existed by the time we went to see him. >> guest

host: the former head of the fdic is part of this debate. here's a piece that she contributed to cnn money with the headline -- we're talking with you about your personal view of the fed's low interest rate and how it's affected or family income. do you think it's helping or hurting? lakewood, washington, halle, a republican. caller: thanks for taking my call. i was going to question whether or not the low interest rates have hurt my family, because it is just me. now that i look back at the past few years since the crash in 2008 if i go back to that date and look at how much stuff has been stolen from me, i would be taken to court by people i would grant from and i complained they were not fixing things when i was paying exuberant rent and they would not fix the windows or the doors and then they would sue me when i don't pay them. when i have a problem or gets sick or something because they're not fixing it. that seems to stem from what is happening to families like mine. single people who have not yet bought their first home and are havin

we enacted three great reforms, fdic, and glass-steigel. they gave us 50 years of prosperity.tarted reregulating, we got in trouble. they were pushing to move off the exchange the energy derivatives which were the most powerful derivatives and she and others came to me, this is horrible, do something about it. i put in a bill that says you don't that. you keep the derivatives on the kparj at which greenspan says you don't need it. take it off. snowe, the f all come in and say, this is bad policy, don't do it. and, of course, it went to a vote and i couldn't even get the democrats to vote with me. so when they have this run toward deregulation, it's a huge chachlkt and one of the most important reforms of dog frank is glass-steigel modernized which is to say don't trade for your own account. so you're not competing with your commerce and your customers are your top commerce. don't clean up. don't be stalking customers that they don't want. it's because of this. >> are the forces that are working against progress, are they not resistible? is there a change possible in terms of l

. >> i don't think the fdic will ensure $200 million in that safe deposit box, but, anyway -- >> thatt, though. i thought that was really smart. >> i'd be very nervous. $6 i'll never get back. that's for sure. hope you are having a good start to your day. a little rainfall across parts of the northeast. not as much as we were hoping. we could certainly use the rain. first i'll start with any dime you see a brown or some red back through here, that is drought. and we could use some rain across parts of the east coast for sure. a little bit last night. now it's heading offshore. delmarva seeing a little bit of light rainfall. rain across georgia. especially along the coastline. hilton head to charleston. seeing some leftover showers this morning. a threat for seeing severe weather across parts of the midwest. these aren't severe yet but you can see a quick downpour. later on today, the threat for severe weather exists right across the plains in tornado alley. the setup not quite great for tornadoes. more likely seeing some large hail. possibly some damaging winds, especially in the afte

like ferc, the sec, fdic and authorize the collection of user fees to offset the cost of their operations. in order to decrease prices immediately i and several of my colleagues have asked the president to release some oil from the strategic petroleum reserve. right now the petroleum reserve holds 696 million barrels and it is filled to more than 95% of its capacity. and as president on both sides of the aisle who can attest even releasing a small amount of oil from the reserve could have a huge impact on the price of gas and help to discourage speculation. today, i hope we can discuss the best ways to continue moving forward against excessive speculation. last month president obama reconstituted the oil and gas price working group to investigate manipulation in the oil and gas markets. what should this working group be doing to make a difference and do the current market conditions warrant the use of the cftc's emergency authority to set margins and position limits? the cftc has had this authority from the beginning of its existence but has refrained from getting involved since 1980. tho

but he offered different problems mostly to give people a feeling of security, social security,ccc, fdicthings like that. i did not fully realize his impact until i got older and now that i am quite old but especially the ccc. we should probably have something like that today. there is a small group of ccc but i think it should be expanded. i really like president -- he was dealt a terrible and and i think he is playing it as best he can. host: thanks for the call. here is president obama who is wrapping up his weekend visit in columbia. he is back in washington late tonight and spending much of the week in our nation's capital this week. from our twitter page -- another photograph from a 1981 reunion of former presidents as they headed to egypt for the funeral ceremonies for on a more said that. on board was not officially air force one. that was a conversation with former presidents ford and a smiling richard nixon and former president jimmy carter. in 1981. arizona, good morning to you -- caller: i would have to say i like andrew jackson because he is the only president that has ever

respect, one of the rules we have gotten from dodd/frank, does the federal reserve is working with the fdico apply the bank resolution tools on domestic banks to complex firms. the international aspect made much more challenging. i think we're making progress there. we have put out rules that would require large financial firms to point out how they would be disassembled. we have continued to talk with colleagues about how we would cooperate if it had to be put into receivership. part of the reason there has been some downgrade for some u.s. financial institutions is the judgment of the ratings agencies that they support. it is less than the past. what we will need to have is a situation where large firms are both making judgments about their size on the economic if there is thet b year it can be done without highly adverse consequences. that is our objective. that is the way to end. >> you have them working hard to improve this. what is your assessment? >> i think that is part of the courage to say. i think we're making progress. it think it was an important step to make clear what our obj

respect, one of the rules we have gotten from dodd/frank, does the federal reserve is working with the fdico apply the bank resolution tools on domestic banks to complex firms. the international aspect made much more challenging. i think we're making progress there. we have put out rules that would require large financial firms to point out how they would be disassembled. we have continued to talk with colleagues about how we would cooperate if it had to be put into receivership. part of the reason there has been some downgrade for some u.s. financial institutions is the judgment of the ratings agencies that they support. it is less than the past. what we will need to have is a situation where large firms are both making judgments about their size on the economic benefits and if there is the year it can be done without highly adverse consequences. that is our objective. that is the way to end. >> you have them working hard to improve this. what is your assessment? >> i think that is part of the courage to say. i think we're making progress. it think it was an important step to make clear wh

the fcc, the sec, the fdic. and it would authorize the collection of user fees to offset the costs of operations. in order to decrease prices immediately, i and several of my colleagues asked the president to release some oil from the strategic petroleum reserve. right now the petroleum reserve holds 696 million barrels and is filled to more than 95% of its capacity. even releasing a small amount of oil from the reserve can have a huge impact on the price of gas and discourage speculation. today i hope we can discuss the best ways to continue moving forward on excessive speculation. last year president obama reconstituted the oil and gas price working group to investigate manipulation in the market. what should this working group be doing to make a difference? to the current market conditions warrant the use of the cftc emergency authority to set margins and position limits? the cftc has had its authority from the beginning of its existence but has refrained from getting involved since 1980. those questions and

. >> well, i hadn't heard that quote before, and i found it curious because the fdic, in fact, has reorganized their own staff to separate consumer protection staff from other staff so that they can make sure they have a more direct focus on these same issues. so they've kind of mirrored dodd-frank. >> but remember, the quote here is a separate organization. >> yes. >> and that's her point. >> yes. i actually think that the two issues go hand in hand. i don't think that you can have a safe and sound financial institution that is not treating its customers in a sustainable basis for the long term. if they're eating their customer base by exploiting them in the short run which is the kind of things that raise consumer protection concerns, they will not be a safe and sound institution in the long run. so i think there's much more harmony between these concepts than people have recognized. i also think, though -- and i would agree with you that it we hooves us to collaborate closely with our fellow regulators to make sure that we aren't inadvertently, we certainly don't intend, undermining anythin

the fcc, the sec, the fdic.would authorize the collection of user fees to offset the costs of operations. in order to decrease prices immediately, i and several of my colleagues asked the president to release some oil from the strategic petroleum reserve. right now the petroleum reserve holds 696 million barrels and is filled to more than 95% of its capacity. even releasing a small amount of oil from the reserve can have a huge impact on the price of gas and discourage speculation. today i hope we can discuss the best ways to continue moving forward on excessive speculation. last year president obama reconstituted the oil and gas price working group to investigate manipulation in the market. what should this working group be doing to make a difference? to the current market conditions warrant the use of the cftc emergency authority to set margins and position limits? the cftc has had its authority from the beginning of its existence but has refrained from getting involved since 1980. those questions and others -

sheila bair head of the fdic also part of the debate. she contributed to cnn money. watch out is the fed pushing us into another bubble. sheer here is a little bit what she said. the fed should declare victory and not intervene if the markets want to push rates up a little bit. this will help savers and small businesses to get loans. we're talking to you your personal view of the fed's low interest rates and how it affected family income. do you think this is helping or hurting. lakewood, washington. next up to holly, a republican there. >> caller: thank you for taking my call this morning. i honestly i was going to question whether or not the low interest rates have hurt my family because it is just me but, now that i look back at the past and, of the past few years, just from the crash of 2008, if i just go back to that date and look how much stuff has been stolen from me and i mean, honestly, i would be taken to court by people who, like i would rent from and i complained they weren't fixing anything when i'm paying these exorbitant rents. they won't fix windows o