back of the bus says ever yes max you're either a blank stare or you're in on banks or you're an unbanked unemployed is bad enough unbanked can be worse so thirty million americans have no access to the financial system they don't have a bank account and this article is pointing out that five point seven percent of san francisco households lack conventional accounts according to a two thousand and nine survey by the federal deposit insurance corporation very furred too as the unbanked lacking a bank account imposes limitations on a person's financial options says greg cato policy and legislative manager of the office of the treasurer tax collector in san francisco he points out that you know the fees for a check cashing at these alternative methods like the check cashing locations payday lenders they could cost up to a thousand dollars a year and also post four hundred twenty five percent interest rates on loans but this is like segregation this is like colored to the back of the bus unbanked to the back of the bus and back to pay thousands of dollars in fees you pay four hundred twenty p

a two thousand and nine survey by the federal deposit insurance corporation there is two as the unbanked lacking a bank account imposes limitations on a person's financial options says greg cato policy and legislative manager of the office of the treasurer a tax collector in san francisco he points out that you know the fees for a check cashing at these alternative methods like the check cashing locations the payday lenders they could cost of two thousand dollars a year and also post four hundred twenty five percent interest rates on loans right this is like segregation this is like colored to the back of the bus unbanked to the back of the bus and back to pay thousand dollars in fees and you pay four hundred twenty percent on interest on your payday loans and this is segregation this is a financial part time if you're on wall street you actually your funds are negative or negative one percent the fed gives you gift you money and then you park it back at the said you make a one percent spread that's a negative interest rate you know it's just like the indians back in two hundred fifty ye

how are we going to reach out the unbanked? how does it help the unbanked? >> this is something that a mastercard we have been working on a lot, particularly using prepaid products as an access tool to those who don't have formal banking relationships. it starts with providing ways of getting access to funds so they're not left to the tender mercies of the check cashers and payday lenders. if you look at the work we have done with the social security administration for the electronic distribution of funds, and the other way to allow it to reach these consumers. we think the key to using mobile will provide people more visibility into their financial information, into their account status so they can be more informed, they can make savvier decisions and we can reach individuals we haven't been able to reach through bank branches and other areas. >> the fed has been looking into this, and they did a federal reserve report that said that 57% of all americans and consumer surveyed felt that the banks services they had now were adequate. then they looked at peopl

you have gone unbanked in this economy. one-four to one in three . banks are looking at this and said we can't price the riskks. we'll take them out of the system completely and this is what is bad. pay day lenders and debit card and check cashing service where they are getting raped on the fees. >> there are community banks and credit unions as well and banks have to accept the responsibility. if they are so troubled by making money. why in the world would decreased profits you award bonuss and it doesn't make sense. >> that is a separate issue. >> the real issue. >> you have had 1500 branch closings in the past couple of years because they can't make money. you talk about crime and that is a separate issue. >> and guys, hold on. johnathon regulatory issue is one issue. and we knew it was going to happen. going back to the settlement that came down on the banks. they paid and it is over but they still need to be in business and make money. are we unfair to the guys. >> we are unfair. regulation cheryl doesn't punish criminals. it punishes everybody.

of their resources so obviously people of unbanked will be a very very useful buco put this kind of investment i think. is the code of the. brics stock exchange this is an order form it's a new exceeds a new tradition that clearly political leader is believe that a brick could merge the growing up in on a power between the country that with centralized establishment they also believe that it could serve as an alternative to why spirit led by nanteuil institutions like the international monetary fund and the world bank certainly. hopes to be able to or to remove the overall predominance of the institution by the united states and european union countries the brics countries have been busy this year not just in guarding against the impact of europe's financial crisis moving away from the dollar as a reserve currency to a brick striven one is also still firmly on the agenda. moody who the good goods. experience is a good be good. challenge to. you it is just breaking that this summit will be hoping to advance further at the economic interests of the brics group further loosening reliance on weste

tiny's investment in infrastructure and indeed people of their resources so obviously people of unbanked will be a very very useful vehicle for this kind of investment properties and i think. it is the code of. bricks exchange this in order for the you exceed can you introduce any political leader at believe that of brics could merge the growing out on the powers between the country and into a centralized establishment they also believe that it could serve as an alternative to what they're in lead by mantle institutions like the international monetary fund and the world beg. the brics group hopes to be able to or to remove the overall predominance of the institution by the united space and european union countries the brics countries have been busy this year not just in guarding against the impact of europe's financial crisis moving away from the dollar as a reserve currency to a brics driven one is also still firmly on the agenda it would become a goody goody good good experience and a good. push to challenge the. euro it is just breaking up of this summit will be hoping to advance furt

so how about the unbanked are under bank, and move to ms. martindale. what is the bench and how does it work? i think you mentioned in your opening statement because that's an important group of my constituents. >> i think the way you can set it up now so don't even need a bank account to do these type of transactions is you could have a prepaid debit card, right, which is not a bank account, and you could link your mobile payment application to that prepaid card so you are drawing down funds from repeat -- prepaid deposit but this is way that unbank or underbank consumers could. >> so you have to set something of? >> you would have to set something up. again, we have a whole host of other concerns about prepaid cards just and it will because they are as of yet not regulate in the same way that he debit card link to a bank or credit card union account part is. so prepaid card itself doesn't inadequate protections against fraud, so if you're at it and asked a layer of the mobile payment transactions and each of prepaid card, we do have a concern that thi

reports for their major outlet and it gets out right censored or censorship or any dissenting view unbanked terrorism in the biggest economies of the world do you find that in australia as well oh absolutely i think most of these people are dealing in fiction but going back to your point they do it recognize the risk seeking behavior of the financial institutions and they need to address that and nobody but nobody in mainstream media or in politics wants to address that that's what needs to be addressed right duster out of time out to have you back on soon thanks for being on the kaiser report good to be with you max and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert and i want to thank my guest the famous das that's all i need to know just look at das he's written a book extreme money you must read it you can send me an e-mail at kaiser report r t t v are you can follow me on twitter and so next time x. guys are saying.

actually wanted to get into this market for quite a while, because about 20% of walmart customers are unbankednce 2004, walmart has put munsoney centers in their stores, and in the past holiday season they relaunched their lay away program. so they're really trying to make it easier for their customers. >> and i want to talk about these low ratings that could spell trouble for own, oprah winfrey's network. where does all this stand? >> oprah winfrey network own has been struggling and therefore there was a shake-up this week, there was a 20% staff layoff and it's really up to own to turn things around and one of the questions is whether or not they released to a big enoughed a yens to support this channel. >> always good to see you, mandy drury. >>> to talk about what's moving your money, talk about timsanity in new york city. they have the statute of liberty te bowing. and then on the front page of the "new york post," got him. love that. all right, so the jets now have two handsome celebrity quarterbacks, te tebow and mark sanchez. they will have a huge impact on ticket sales and merchandise

there are a lot of people that are unbanked and maybe it's a reflection of it. >> that's a very good very broad reflection of the economy but maybe it doesn't include everybody. >> uh-huh. >> all right. we'll think a little bit more by that. by the way, if you have thoughts pz on that as well. ken will be with us for the next of the morning. >>> the best is yet to come. we leave no stone unturned when it comes to the jobs data. diane swonk, mark zandi, and austan goolsbee, professor of economics at the university of chicago booth school of business when "squawk" continues. ♪ [ female announcer ] each one of us is our own boss. ♪ and no matter where you are in life, ask your financial professional how lincoln financial can help you take charge of your future. ♪ [ male announcer ] this is the network -- a living, breathing intelligence teaching data how to do more for business. [ beeping ] in here, data knows what to do. because the network finds it and tailors it across all the right points, automating all the right actions... [ beeping ] ...to bring all the right results. it's the at