Steve Syre

" Work with our modified terms sub prime won't -- and four point -- yeah. I'm all right we have begun the essential work of keeping the American dream alive in our time we need something more than -- beautiful and parts go to. We need -- old you know old bathroom."

" Like Stewart could be over. We according to the blade everything else and I cannot -- now."

" Following the very term bonds this nation has proudly bought itself -- ethnic melting pot. And things racial we have always been and we idly continue to be. In too many ways essentially the nation. How they're a moron stardom for Federer and small room."

" If veteran -- if it were reasonable said that sound good to the American people really go to column for him to five murdered. People that it. -- The F -- indeed TF how you do and the square one."

" Yeah I always the F -- have been a couple of steps behind but I I don't mind the a couple of seconds off of Woodstock kind of stuff I think. -- Vista you know the -- sexual revolution and I don't feel I've missed out on much well. If you're running -- decades behind and you should be joining -- right now and it went shoulder length hair is cut the federal that's right and the bell bottom jeans. Yeah -- was -- that way I was repeated theft that's made bail the simple pleasures IE beer and joined the that's how hot XE that's enough of that hasty -- every morning at this time about 75 or thereabouts we go to let talked of the bus and -- Steve's site about what the heck is going on in our world business finance stock market and -- And I don't know if you're there's two -- having problems you have banks -- and even Citizens Bank is one news flash Yasser what you take you arrived here you globe colleague roster about has a very interesting front page story Steve."

" Yes it -- citizens is one of those banks that. It's very much a retail bank the second largest bank in Massachusetts here and really dominant bank the throughout New England it's one of those places that. You know they -- Carlo and make home equity loans say they do sort of bread and butter I think it's not. One of these banks like Citigroup been in some others that you know we're involved in all kinds of exotic things. And you know we thought they were in do it pretty well overall and it turns out they've been put up their numbers. Our birthday became available yesterday for 2008 and they lost a lot of doll and besides that this sort of the trend lines where. We're really kind of remarkably negative and it's sort of -- a picture of of the economy more than anything else and I gotta say I was pretty surprised when I saw them in what we've talked on the radio before. But it we've said that we've sort of or I have anyway have. Thought of citizens as being something that's. They're pretty much okay and kind of treading water in getting by and it's it's not as good as that."

" Steve -- shared with us over the last several weeks that we continue to revisit this issue of instability in the financial marketplace concentrations of foreclosures Florida California Arizona Nevada and -- The citizens stuff up here in Massachusetts you know what I mean we've had a jump but foreclosures but it's not disasters what's really the story behind the story he had in these really staggering losses on loans that are -- that are responsible bank what's the what's the problem."

" Well I think the problem is that the economy it is sort of coming down across the board right on time you write that -- There these hot spots where there's gigantic real estate meltdown where banks are big big trouble and and although we certainly have. Our share of problems were not on that scale at all but that's what I think really remarkable here is that a bank it's sort of broadly engaged in the overall economy in a region and our region. Has seen everything from. Their credit card business their car loan business there home equity line business the mortgage business or commercial lending business. All these things are are coming down they're creating more problems and it doesn't the end of the world means citizens is an -- that the verge of something terrible but it's not it. -- it's a reflection of how things really kind of -- Across the board doing poorly and as -- like I said earlier that we thought citizens was doing much better and it's it's. It compared to other US banks it's harder to see into citizens numbered is that numbers that they aren't nearly as transparent because. They're owned by the Royal Bank of Scotland which is Europe's version of Citibank and complete meltdown that's actually. Majority owned by the Bank of England at this point talk about national."

" It added that if they're talking about having to write off a couple billion dollars in bad loans this year that means they made some stupid loans there was a story on the news this morning about Fargo, North Dakota. How the area is burgeoning there's -- charging quit your job this morning have another job this afternoon the banks are doing fine they were talking about how the banks are doing fine because. It's a place with conservative values and went all the sexy stupid stuff was available they did not partake."

" I don't think just because people are having problems your loans are having problems is that that that that translates into instantly stupid decisions. I just don't think of the black and."

" Alexi -- what's the other alternative is one I'm asking how idea have a two billion dollar hole as Citizens Bank if you weren't. Engaged in -- bad -- making."

" I think that there is if you just look at that -- if the economy goes down. Said that you know 234%. That there's a number of home. Regular mortgages home equity lines. Credit cards car loans that this is a normal affected the recession but it's I would say. The more accelerated than I thought if it's -- an economy goes into recession a a bank is going to suffer that is just no two ways about that it doesn't matter whether they were making smart -- stupid loans. Any there's no such thing as a bank that does great. Through that a recession and you can. Perhaps ticket if you want to go out to where there was a North Dakota South Dakota."

" Cargo does this afternoon in front what part of your."

" Little pinpoints on the map that you confided that a debt are doing well economically and therefore banks there will do well economically but. I I would say overall not just in that disaster response we talked about a few minutes ago but broadly across the United States that. The declining economy is being felt much more significantly right now and I would say that this is. You know. The fact its citizens is such a kind of bread and butter bank is a reflection of of our economy going down faster that's --"

" It's Steve to touch point on -- into your response to thank you actually but he hit this day the same spot. Just coming out of from different sides I read Ross curve a story that. This speculation. Among analysts is that a lot of the setback is because of about. A really troubled mid western banking operation that they're proud of Trotter one."

" Good -- that yeah but that's several years ago that was. It in retrospect. Bad decision and some of the numbers in terms of losses in the -- about it 929. Million dollar loss for the year is. It is a little bit deceiving in that. They wrote down of the value of something on their books and everybody thinks it's distance try to one. Franchise since stepped out an actual cash lots that's looking at something that you got -- piece of paper saying it's not worth. What we said it was worth before so that we're gonna we're going to create a new number and it's not affect our earnings and that's not the same thing -- losing real."

" to be very thoughtful conservative prudent business. Approach to the challenge that they have coming out of Michigan Ohio Pennsylvania those places that are really in much more of a meltdown and we."

" Right right -- you know I I wouldn't look at that. Too closely at the probable loss number and this write down issue -- I would look more broadly. How the citizens reporters saying that all these different lines of businesses are not doing as well that they have to contribute. More money to banks keep these questions. Loan loss reserves they're called. And all the time trying to anticipate what's going to happen. With their loans in the future so that things go bad is this. Foreign that they can they aren't going to take a 50%. Product in this thing and get rid of that we're going to take the money the fund to to take care that that they're piling lots and lots more money. Into these funds right now."

" Well Steve it's an interesting story and of course Royal Bank of Scotland in all sorts of trouble although overseas. Will stay at top of its citizens so such well known -- outside of it went well that hey you know what -- like their color the green is nice what went to -- No citizens. But elect pressure around the cut services and -- and no it's not similar Steve's site by the way before we let you go hit 700 -- I was I was really impressed by it and then you know. Furious about that must be something -- every so that it could have been sounds like it and Citibank apparently in mortgages that they originated and held. 2% default 2% default rate which is pretty darned good. In mortgages that originated by some of the -- call the countrywide the affiliations. That they had and stuff that they bought up you know try to play around in north."

" What has an investment that somebody else wrote."

" exactly north of theory. Percent in default. -- One what Adobe businesses decision that was to hang around with our country like."

" Price you know it -- in normal times I would say it would banks when their writing loans in their own area it took 2% would be considered. Hi. As a as a default numbered but not so bad the recession but added that does the distinction between that and and the investment jumped. That was being created by places like countrywide is he is just staggering."

" Yeah all right thank desire -- I have."