Comments on: Your Bank Has Failed: What Happens Next?

60 Minutes Gets A Rare Look At How The FDIC Takes Over Banks And Reassures Depositors

[JuneMG]

Where's the meat? The 60 minute story about the FDIC takeover of US Banks is about as relevant to what really happens in the bank failures as a piece on the terrorist's flight menu before they hit the twin towers. Please! It's an insult to the 10,000 robbed depositors at Indymac and other Americans that had their books 'cooked' and lost over 240 million when the FDIC was in collusion with banks like Indymac. Depositors were lied to when the banks set up their accounts, signature cards were lost and then they got a letter from the FDIC that their money was gone. It was a true hit and run story. Unlike your fluff piece the gut of the story is how this group of ordinary people (widows, mothers, teachers and grandparents) led by several depositors like Lisa Marshall and Cheryl Hodgson, have set up their own website, do their own investigating and report the real story including an interview on Good Morning America and articles in the the LATimes. I suggest you check out their work on indymacdepositors.com and learn something. 60 minutes needs to stop cheerleading the bad guys, pick up the ball and get back into the game. You're suppose to take on the tough stories and expose the truth. You're 60 minutes for G-d's sake!

[wamucoupDotCom]

Just really surprises me that the Washington Mutual debacle was completely left out of this story. If Scott Pelly is a real journalist then he wouldn't just accept the 'party line' hook line and sinker. Sheila Bair made big mistakes at almost every juncture but he didn't give her any of the tough questions. He didn't expose the 'cozy' little circle of 'old boys' (and girls) and how they hide the truth and do each other favors to cover up each others incompetent actions and/or theft. Who pays? You and I, the american people. Bair saved us taxpayers money? What an explicative joke. Her actions and the FDIC, and it's little 'lap dog', the OTS, were the the "straw that broke the (stock market) camels back" and cost us ALL dearly. Just look at the evidence -

http://wamustory.com

- Did Scott even investigate this story really? Its a fine reflection on American society when the only place you can get a real story is from Comedy Central and where the supposedly 'real' journalist miss the BIG STORY time and time again in favor of explicative propaganda. Perhaps JP Morgan has more influence than just their advertising dollars.

PS: for all those that read this and want to engage me in the simplistic propaganda retorts... don't bother ... I've looked at them all and they are just that. Go do your research... then maybe we can argue.

[ken8609]

According to Blair the FDIC is funded by insurance premiums paid by banks and is backed by the US Government. However, in yesterdays Boston Globe it states that the FDIC is looking for $500 Billion to cover failed banks. From 1996-2006 Congress did not collect insurance from the banks. Now in struggling times the FDIC doesn't have the money to cover their costs thanks to Congress not demanding that the banks pay their premiums. President Bush raised the FDIC cap from $100,000 to $250,000 (temporary until 12/31/2009) per individual. Now where did he think the money would come from when the banks failed and the FDIC doesn't have the money to fund it? Taxpayers once again have to shell out more money for our government's oversight.

[booker12]

I saw your program on the FDIC takeover of Heritage bank. There was information that was misleading (from the FDIC). This particular takeover may of gone the way they described it, however, you should look into the January 2009 FDIC takeover of The Bank Of Clark County in Vancouver Washington. This takeover did not go as they described on your program. Companies with financing through The Bank Of Clark County lost all financing, the loans did not go with the bank that purchased The Bank Of Clark County and were not insured by the FDIC (as they stated on your program) for 80% so the purchasing bank could only lose 20% on failed loans. The loans were bundled up and sold to the highest bidder and then the FDIC contacted the companies whos loans were sold and told them they better get new financing or their companies would be liquidated to repay the loans. I know this because my brother's company (that I work for) was one that was given just over 2 months to come up with new financing or lose everything after 33 years of business. This effected about 1,000 businesses in the area. I wish you would look into this and make people (companies) aware, they may not be safe if they have financing through a bank that is being taken over by the FDIC.

Sincerely,

Tod A. Braunwart

[pwb09]

After seeing House of Cards recently I think it is obvious that it was Moody's and S&P that caused the current mess by giving Junk Bonds Triple A ratings. If they had been given appropriate ratings few people or governments would have bought them and there would have been no pressure to create so many worthless mortgages. Whether it was stupidity. lunacy, collusion, pressure from the government or what, there has to be a thorough investigation and the perpetrators of this "world wide fraud" should be exposed. With all of the misery that they have created I can't think of a punishment severe enough.
Yet, no one ever mentions the rating agencies or drags them before congress to answer for their malfeasance. And, they are the ones that need more regulations and oversight.

[ffejognor]

I enjoyed the information on Heritage bank and the FDIC position however, I do wish you would have touched on the GSA'S, Freddiemac and Fanniemae involvement in bank foreclosures with there lending habits which was just as bad as the banking industries. In the same Chicago area the National Bank of Commerce was closed by the FDIC not because of bad loans but because of investing in the GSA's which was encouraged by the goverment to keep housing lending funds going. The Bush administration indicatated there was a problem as far back as 2001 however, Dem. Barney Frank kept defending the GSA's even after book keeping irregularilites were found with these institutions. Like Clinton & Frank say loosen loan requirements so everybody can own a home even if they don't have a job. Both should be ass-hamed and Frank should step down now!

[TN1961]

Scott Pelley missed or just chose to fail to mention the AFP article just published Thursday, March 5, 2009. The same Sheila Blair, head of the FDIC, who in her 2008 interview told Mr. Pelley the FDIC will not go broke, is now warning that due to the mounting bank failures, that the FDIC could "become insolvent" this year.

The FDIC's insurance fund seriouly depleted from the 3rd quarter to the 4th quarter 2008, dropping from 34.6 billion to 19 billion. If in one quarter alone, the FDIC lost over half of its insurance fund, how could Ms. Blair with a straight face and in any good moral conscience, state to Mr. Pelley the FDIC will not go broke?

In an effort to hopefully keep the insurance fund from going broke, the FDIC is increasing bank fees. This of course, will be passed on to and paid by bank customers.

I realize this interview was shot in 2008. However, it is irresponsible and negligent journalism, on the part of Scott Pelley and of 60 Minutes to not have followed up the aired interview with this just published article and reversal of statement made by the FDIC's Sheila Blair.

[bige166]

I have been watching these stories with great interest, and am very uncomfortable about my money in my 401k, which I carefully built up for my retirement,(i'm retired) and have watched it shrink (20k so far) and no one in this government is worried about me and my life-time savings. they are concerned about the LOOSE-LENDING instittutions, who were allowed (government regulations) to loan money for morgages to un credit worthy borrowers, and now they want me and you to FUND their loses. let them fail and let's move on, I do noit sympathize with any of them, I spent 50 years to get here, and the gov't now wants me to finance their inefficiecy. we need to rebel, BOSTON TEA PARTY STYLE.

[banker666]

TexasEd/ what world do you live in. idiotville/ or Texas? Both places are a joke just like your comment. He is trying to correct this mess that the Bushes made. Wake up

[belderdonaldr]

This was a 60 minutes investigation / news story? It was in fact the biggest propaganda episode ever produced by the US government. We are to believe this was a secret until 60 Minutes found out. All positive comes from bank take overs Americans, you have nothing to worry about. Has the US Government taken over your show now too. Let's get real!!!!!

Don Raleigh, NC