Dan Forte

" Welcome back Todd generating here and my cohost is Steve sigh he is the business columnist for the Boston Globe that we really thought today we were gonna be doing AM. Outpost. Vote analysis on a successful bailout pill in Washington and then Steve siren was from a guest later that's right. The rest of the world me included worse done to by yesterday's developments Donald Washington. Politics become policy -- would shed any longer at least for the next segment because we have DN forty on. He is the -- Column the president of the mass bankers association and -- know what titles to give a column there called -- here grid prove he's the grand toolbar of the mass bankers association. And he has a sense as to what the heck is going on not just here in Massachusetts the local land of a local perspective but also what what is afoot. Donald Washington DC so we're delighted to welcome -- forty demonic the end."

" this stake here as desired it to be here."

" There thanks for joining us senate in forty DN. News all over the place almost don't even know where to begin we had state Treasurer Tim Cahill right at the top of the show and he's saying it's never seen anything like this from Massachusetts. Being able to go to the lending window. Our quick first question for you. You -- members -- Massachusetts. Based members. They still active about the width three got two credit for -- loans home improvement loans mortgages in the light wind up with a mile listeners go who still say hey I'm not going into a panic I'm -- steady on forward."

" Yeah I mean I think that the and these that then disconnect really between. -- this legislative. Process that was building. You know doing liquidity and capital confidence. On Wall Street. The mainstream you know saying. -- done very well. And in anyway. You know flight to quality. -- make that you know flowing in. It from the import all business all in residential well I think it. It's important to make it to -- obviously we're not in use of bombs and oh economy. But overall indices -- being very say Aires. In these we we've actually. Because of the uncertain because of many of these the mortgage brokers that were in the local -- and not in the also a product. I think it helped Foster. -- minute flight to quality I think is the war. Consumers in this shop around. What were you know or. Residential lending market now -- Timing is everything I think. Was right and lose they that was but it's certainly better bargain. Bargain today than they were. You you month and a few months ago gambling what is you know local -- that money available."

" What is the experience on the other side on the deposit side clearly does people are concerned about their money and -- and what to do with it and you don't see we see if you go to the paper you'll see a number of banks. Offering fairly aggressive. Deposit rates -- it for a banking perspective this must seem like an opportunity to gather a lot of money potentially. And do what is the actual experience we try to go -- measure this -- a real time basis it's not that easy for outsiders to do."

" Right any and he added that. -- that it says nothing's sacred and money in the bank really you know really holds true even today and it's notably. You know you know post post in act we have. -- samples. You know -- state monies and monies and -- for about a stock market going to act. Back into local. And and I think that you know me well the but the depositors you know with the local bank of you know large ones small island. And I think you know of the Massachusetts market. Has been different I I think. When when you look at some of the numbers. You know we've some places that it it is. Although growth economies both population that we haven't over the ballot. -- states that the you know the western states this decency as -- population boom in in the -- strong well."

" But it could it aren't I don't right. -- are those banks also better off with the fact that. We blew up twenty years ago isn't and lots of banks here failed in two. You know that's part of the story as well that perhaps. We we we haven't been burned that long ago we can remember written their frankly fewer banks around today."

" Well -- if he is I think any of this goes commanders. That are running banks running commercial lending it also is my day went through the late eighties and early nineties and combined that would are. Our basic unit he interpreted here I mean we if we were in the sub prime business we we did have some of these not a mortgage product. And yet you look at some of the surveys. Our members and -- experience you know four closures. You know what even even built by this downturn in there are some people. It's very young voters but 60% of our bank has no foreclosures whatsoever last year about 1990. At less than five though it hasn't trickled down. It is the -- Local thing. They know that built Ford is adding that apple apple market. A role playing but I think are important. So far."

" In forty it's I -- he is the executive director grand toolbar is about a title -- toolbar the mass bankers association of Steve Sarin. And -- Tom Finneran we -- in the RKO studio. Did -- and you had mentioned a minute where it will definitely take some calls within 6172666868. Did you mentioned a moment ago that there's been a flight to quality as people become unsettled. Based upon what they see and they experience. That you stunning to see some movement of deposits and -- but I'm curious when you talk about a flight to quality how does the ordinary guy or gal out the MIA listener. Measure the quality if you will the safety and soundness if you will of of other Massachusetts bank with does that guy or gal goes so that. You know they do have debt that sense of confidence that we all need."

" I think it even goes back to the late eighties early nineties. Where. -- the regulations that they -- yet yet the improvement act were very strict. To provide read you know Rick -- played -- monitoring. You know vote me in both state and national bank I mean there -- various. I mean at national state regulators looking at the bank. You can look capital -- obviously there in the and rating services. And in some of those but frankly."

" It is you argue with the times and somebody else they you'd think that -- you'll ballpark figure things doing but I I think local saying it you know the people are. -- and -- and -- yeah -- insurance and I think is -- re education process. The the insurance. How that work. Clearly. Most people don't even have a 100000 dollars in the bank but what most people don't realize and it should check out yet yet the web site the in structure and short in the on the -- and a record at Hewitt 50000 dollars it needs to count eight. The very fact of the I'd be single now suing -- rustic. Are also sort two. Like frankly Italy or with various combinations. Actually dropped two and one point five million dollars in the -- So from that perspective. People -- you know illnesses you know -- facing credit. Natalie the yet the in the bank which it. But the government --"

" Well you know agenda beat you mentioned this in that. Deposit insurance certainly but in terms of that the health and safety and soundness of the of the individual banks I think part of the thing that -- People is that it in this particular cycle banks that seemed. Relatively. Okay maybe not in an ideal health but okay. Almost in the blink of an hire are suddenly you know going downhill and being salt and I think Wachovia -- a good case in point just this week on that. And you know the FDIC which is responsible for ensuring these deposits and therefore looks very closely at banks across the country. There watched with some problem banks across the country is over a hundred at this point so it's. You know we we think we hope that we we're seeing you know the the biggest hits right now but there in fact a lot of banks across the country that are -- some stage of trouble right now."

" Well let's let's go back in 1990 what you want respect there were fifteen and being. On the watch it in 1999991. The -- I -- not at aero but economic cycle that there aren't. That regulated why. But I think what kept using it yet not only -- in the is when here's these devastating. Years there and -- Ai. Is not saying -- and ethnic. I'm all. -- in nap on the block well. These are banks that have only one in were very heavily involved in this city area. Up by. And -- they're going to act or conservative. That. I'm landing in all of -- Have not been prevalent here."

" The avoid arcades have voided so that -- is what it's on -- is Danny the avoidance and that is what gives you. The sense of confidence that seems to be seems to be lacking with many others."

" Maybe or a little boring here -- they. You know but it works voted no more tradition."

" Well won't be -- along we're going to take some calls at 6172666868. DM forty from mass bankers association is I -- and Steve sire of course is Michael host Larry -- from -- Larry up next on parents for a may have 680 WRKO."

" Decline break traffic on the concerns me is the change of you know the local banks everything over time to think that happened want a lot government disappeared and been absorbed by bigger corporation bank. And then all of a connection between banks and Wall Street that there wasn't in the old days -- seems separate. TD rate -- you know when things will -- I think he felt -- above the local bank even now you'd take a mortgage out and suddenly that -- sold to somebody else and so. You know open media and the current -- change in the the perception of the local bank and has become a stay."

" Go ahead DM forty that's and you nobody got in your wheel house."

" But I mean clearly in the transition going on all of this. Today in you know consolidation trying to get a bigger what -- some of the -- is ground well. I think -- try to differentiate themselves. And the number aways I think from the standpoint. They need to gain customers. They needed physical relationship business. Not only from alongside the odd side insurance. -- can put some of their own portfolio. -- urban thing. And and they have the funniest. City in the long that whether or not. See in a -- whereas some of these some of the brokers. That involvement. Island thing. They just need to get the heels. In in the game and they have alone not apply. I think that's the thing is that they think messages today. We still have over 85% of our member banks we represent all the things. It around your billion dollars side which is still small. Healing inside. If you let alone he has really shop program in the -- there --"

" Our guest is the imported from mass bankers association Steve serie a meet Tom Finneran will handle and -- calls at 617. 2666868. Let's go right to rob column from New Hampshire good body rob."

" Good morning. Once they don't want to mention is that he again as mentioned. It is when the FDI is these steps and on a bank in trouble. All of the bonds sold on the bank wiped out the bondholders but holding nothing. And very few people realize that."

" And I suppose that's because depositors are going to get just given by law -- by regulation a priority but the end idea forty what's your experience with that if any."

" I think that's the that's the that's the trade that there I think it's some trade -- we're seeing it and national. Oh weird beard is trying to protect the taxpayer sources that. -- investor line. On. Would not need -- people or in you know in some of these some honest thoughtful. You know as you know the average person known if tensions on. Alternate. -- we went efforts. There when things. This -- over as opposed the."

" I mean I think the thing all of us have to worry about Steve sides in forty. Would be you know the appearance. The development of a run on the bank anywhere in in given the 247. Instantaneous nature of -- news today a run on the bank in California would who could very very road work very well trigger panic. Somewhere here in Massachusetts even though you know we have we have full insurance with a lot of -- because I mean I haven't seen anything like -- like I had a yeah there vanguard certainly -- runs on on stocks of public banks at this point the -- And as is the pass caller just pointed out that investors are whole. Different category and depositors -- The insurance is doing its job I will -- I will say it -- he is for the depositors who gets screwed us as post the investors who come up all the garbage truck."

" It plays an important role to that it needs to be certain. Editor of old. Caution or -- oriented -- line. -- Papers when he saw that repetitive. Reporting in that situation in California. Partly because of the report that. Most. Although -- depositors that where. In lines actually were -- testimony that says in this warning in. I frankly it was the first majors and major you know -- floating in the -- yet the -- if they -- again with a with a that it."

" looked and the managers of denial didn't seem to have the depositors in mind when they are writing crap for all those years. I they can't circle all of the sudden turn around and blame when the president gotten it yet -- yet just the messenger about what we continue to take calls wrought a scholar Roger -- Deanna -- from mass banker Steve -- meet Tom -- welcome."

" Yeah sound what one thing to get up. Under this speaker does about -- policy doesn't she look like Steven Tyler."

" Pop pop pop up. --"

" I'm not in a position to comment on anyone's appearances I'm not going to be -- that GQ. Heredity shortly but I think she I think she blundered badly rod what -- yelling yesterday's vote that was terrible."

" I looked out the Democrats are going to sweep it away in the first thing they need to do is get rid of are now and then the other thing to hear back from there. One term no interest loans I'd like to hear his comments that you."

" No interest loans stand forty tell us about no interest loans of water is always been looking for wanted to tell us socialized backing up."

" That they yet haven't -- similar question. On these like these very actually we you know we don't. Our archer traditional bank. But what the yet at eight. You know I -- network adapter. Coming in. It is you'll -- Ward there sure short period time. And what it is you know -- it in one. Here is age you know it is very small -- but it the problem. And brokers mortgage company. Offering these the average person on history that you know what hopefully you know didn't have the we're what -- with. Nation's war. I think it really really the real problem in the regulators. War -- and now even more its -- regulations. Very very -- restrictions."

" We'll -- were coming up on a break at the bottom of the -- you've been great we get time a lot of -- the eight and a lot of reassurance to -- is that you know while all hell hasn't broken lose here in the commonwealth thank god for that good old fashioned Yankee. Caution. -- IDF what he's been I guess."