New York (CBS) -- SMALL BANK FAILURES REACH GRIM MILESTONE
A year ago, the government stepped in to rescue some the big banks with taxpayer money because it was said they were too big to fail. Now it's some small banks that are falling ... quite a few of them, actually. Approaching a hundred have been forced to bite the dust and merge with other banks. Some things you should know about banks too small to save.
Banking analyst Bert Ely of Alexandria Virginia knows a lot about what's happening now with these small banks. Did you know who pays the money to back deposits?
"All of the FDIC's costs is borne by the banking industry. They're going to be paying on the order of 15 to 20 billion dollars a year to the FDIC for the next few years to pay for the cost of these failed banks."
Can the rest of the banks afford to do that and still stay afloat?
"The small banks do have the capital resources and the market place opportunities to survive if they are managed well in their particular market place ... And frankly don't go off and do crazy things."
Ely thinks a lot more banks will fail and have their activities taken over by healthier ones ...but that's OK ... he says. That's what's supposed to happen.
"Certainly in the coming months and well into next year, we are gonna to see more failures whether it's another hundred banks that fail or two hundred banks that fail."
But, if you were thinking of putting your money under the mattress ... don't he says...
"Under no circumstance should people put money under mattresses. Banks still pay a deposit of interest rate ... And frankly, money is a lot safer in a bank than it is in a mattress or a tin can buried in the back yard."
Kai Eide … the Norwegian diplomat who is the special United Nations representative in Afghanistan…refuses to say who was being corrupt in Afghanistan's election … or how much ... except to say that it was widespread."
AFGHAN ELECTION FRAUD
Kai Eide … the Norwegian diplomat who is the special United Nations representative in Afghanistan…refuses to say who was being corrupt in Afghanistan's election … or how much ... except to say that it was widespread.
"There is no way to know at this stage what the level of fraud is. I do not know, nobody has known. I can only say that there was widespread fraud. Any specific figure at this time would be pure speculation."
To discredit the election in such general terms … isn't that a disservice to all those people who turned out to vote despite all the Taliban threats of violence?
"I do pay tribute to those that did so and who are waiting very patiently under very difficult circumstances for the final outcome for these elections.”
As President Obama decides what course to take in Afghanistan ... the accusations of corruption in the election should be a factor ... says Democratic Congressmen like James McGovern of Massachusetts?
"Our men and women are dying for a government that is making deals with warlords and drug lords that stuff ballot boxes in the last election."
He thinks proves there's no good future for Afghanistan with a corrupt government. And therefore …
"My advice to the President would be that our national security interests and the future of Afghanistan are better served with a smaller US military footprint."
Senator Saxby Chambliss ... Republican of Georgia ... doesn't see the logic of that.
"We've got to quell the violence. We've got to slow down the Taliban. That means prevailing militarily ... And obviously, that's where the additional resources in the form of troops come in."
A COLUMBUS DAY POEM BY CHARLES OSGOOD
In the year 1492, Columbus sailed the ocean blue. This marvelous Italian fella so impressed Queen Isabella … she underwrote the daring trip every crewman, every ship. I think if they had met today … it wouldn't have worked out that way.
If Columbus called on Isabella in our world today
She's be busy on the phone and this is what she's say …
"Have a seat, she's say to Chris ... Be with you when I've finished this.”
Then Google exploration lists to her, and one Columbus, Christopher. “Ah, here it is!”
Christopher explains the queen … we've put your plans through the machine
And through some real time calculations … we've a few perturbations.
First of all can an Italian operate a Spanish galleon?
As to those ships if you get any...three ships would be two too many.
East is east and west is west
To go east sailing east is best.
No expert do I claim to be … but that is what makes sense to me
And I'm sure you understand ... that's how it seems to Ferdinand.
And so to help you with your mission, we've appointed a Commission
To analyze each pro and con
Whether your trip is off or on.
So come back in a year or two
And we'll decide what you should do.
Now if you'll excuse me Chris
I hate to brush you off like this
This day certain plans I've made
I'm going to a big parade.
What's the occasion ...dare you say
Why silly...it's Columbus Day.
THE FUTURE OF GAYS IN THE MILITARY
President Obama … who ran for office promising change … is finding that it’s difficult to change everything as much and as quickly as some would like him to. He was friendly and supportive of the Gay Rights protesters in Washington yesterday … but hasn’t endorsed federal action on gay marriage.
"Obama, Obama, let mama marry mama!"
He did repeat one campaign promise on gays in the military.
"I will end don't ask don't tell. That's my commitment to you."
No time table though … and not good enough for some.
"I'll give him a "C" right now but I’m hopeful something will come about soon."
In general though, there was a good feeling in both directions.
President Obama does have a lot on his plate … as he pointed out … and it’s hard to take action on everything, all at once. But, as many of those demonstrating yesterday kept saying …
"Words don't mean much. He's got to follow them up with action."
One West Point graduate Lt. Dan Choi … an Arab-speaking linguist who served in Iraq and is now facing discharge for revealing his sexuality appreciates the thought. But …
"We love our country, even when our country refuses to acknowledge our love. But we continue to defend it. We continue to protect it because love is worth it. Love is worth it!"
On the talk shows … it came up yesterday.
"This is not a popular discussion within the military, I can assure you."
Pro and con.
"We need to end discrimination everywhere, that includes in our military. The don't ask, don't tell policy I think is ridiculous and should be ended and I support the President in whatever he can do to reverse that."
In Washington now as ever … when all is said and done … more will be said than done.
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