 |
|
|
CBS 2 NEWS EXTENDED VIDEO
Q. Is there a banking crisis?
A. No and Yes. Let me explain.
The crisis that you have been hearing about through the local and national news programs is not a crisis for community banks like Farmers State Bank. In fact, it is not a crisis for 98% of the 8,500 commercial and community banks in the nation, including the more than 400 banks here in Iowa. Thats because they, like FSB, are extremely well capitalized and are the source of stability and growth.
That said, our country is in the midst of an economic crisis that directly relates to non-bank entities typically referred to as investment banks including Lehman Brothers, Bear Stearns and AIG. These huge investment firms are not governed by the same strict regulations under which state and national banks operate. These Wall Street firms act as advisers and agents for companies that want to raise capital, often by using mortgage-backed securities. Thats why they were allowed to purchase, package and sell high-risk, sub-prime mortgage loans without appropriate oversight and capital reserves, precipitating the economic but not banking crisis.
You may have also heard about mega-banks Wachovia and Washington Mutual who have recently failed or been taken over. Although these nationwide behemoths are banks, and have FDIC-insured deposits, they very aggressively participated in the sub-prime lending debacle that led to their undoing.
By contrast, community banks like FSB take deposits for checking and savings accounts from individuals and businesses. These deposits are insured by the FDIC for up to $100,000 per depositor per insured bank, and up to $250,000 for retirement accounts. We then lend this money to consumers and businesses in our local market for things like homes, autos, business equipment, and so forth. We lend locally, underwrite carefully and dont own high-risk mortgage-backed securities or participate in sub-prime lending.
And, as of October 3rd, the FDIC raised their insured deposits from the traditional $100,000 per depositor to $250,000 per depositor through December 31, 2009.
Q. What role does the FDIC play?
A.FDIC-insured banks are required to employ underwriting practices to avoid losses and promote safe and sound operations. FDIC insurance protects depositors against the loss of their insured deposits if an FDIC-insured bank fails. The chances of that happening are extremely remote, but a failed banks customers would have virtually uninterrupted access to their insured deposits. Most importantly, not one penny of insured savings has ever been lost by a customer of an FDIC-insured bank.
Capital (also referred to as equity) is the difference between assets and liabilities. This is the first line of defense to cover any losses in the event a bank fails. FSBs capital is almost double that amount, which is why the FDIC ranks us in the highest tier of their capital rating structure.
The FDIC requires its insured banks to reserve a significant amount of their earnings to serve as a buffer against any potential losses. As of March, 2008, the banking industrys capital had reached an historic high $1.36 trillion in capital plus almost $121 billion in reserves for a total buffer of $1.48 trillion dollars!
Q. What is the nations banking system doing about the current crisis?
A. They are providing stability. Having a safe and sound banking system to rely on shows the important role banks play in our local communities and in our nations economy. We are the source of stability and of growth.
Q. Who or what are Fannie Mae and Freddie Mac?
A. Fannie Mae and Freddie Mac are the two largest mortgage buyers in the country. These organizations were created by Congress in 1970 to buy mortgages from lending institutions, including banks, and then either hold them in investment portfolios or re-sell them as mortgage-backed securities to major Wall Street investment firms.
Q. Because of this crisis, Ive heard it will now be almost impossible to get a mortgage, credit card or some other type of loan. Is this true?
A. People with a good credit history will continue to have access to mortgage, credit cards and other types of loans.
Because of the critical role Fannie Mae and Freddie Mac play in our nations economy by making home ownership available for millions of Americans, they have been rescued by the Treasury Department and Federal Housing Finance Agency.
The good news is that if you are thinking of buying a home or refinancing your current mortgage, the recent government intervention in Fannie Mae and Freddie Mac will help stabilize rates, making it easier for homebuyers to qualify and for homeowners to refinance higher-priced loans.
Consumers should feel confident that this solution will help speed the recovery of the nations housing market and bolster our economy. In addition, the current economic crisis has already forced much-needed reforms on mortgage brokers and on Wall Street.
Q. Are you optimistic well recover from this economic crisis?
A. Yes! Americas banking system is strong. This crisis will pass, as have many others, and the result will be a stronger financial system with fewer unregulated players and a reminder why liquidity and capital are both important in keeping an organization solvent and successful.
Q. Where is the safest place for my money right now?
A. It will always be true that the safest place for your money is in your local, community bank. Its FDIC-insured, readily accessible and can earn you interest.
Banks play an integral role in local economies across the nation. With $8.4 trillion in deposits, banks have plenty of resources to meet the lending needs in their communities. In fact, banks made $200 billion in new loans in the fourth quarter of 2007 $80 billion of which were loans secured by real estate. This clearly demonstrates that your local bank continues to be the best resource for business and personal loans.
In addition, FDIC-insured coverage has historically allowed up to $100,000 per depositor per insured bank and up to $250,000 for retirement accounts. Effective immediately, and through December 31st of 2009, the FDIC is increasing the traditional $100,000 amount to $250,000 to underscore their confidence in the nations community and commercial banks.
Even without this temporary increase from $100,000 to $250,000 there are ways consumers can qualify to have more than $1.5 million of their deposits insured in a single bank by using different categories of ownership. If you have any questions about your FDIC-insured deposits, your best course of action is to speak directly with a Personal Banker at your local bank.
Friday, October 10 2008, 12:22 PM CDT
A. No and Yes. Let me explain.
The crisis that you have been hearing about through the local and national news programs is not a crisis for community banks like Farmers State Bank. In fact, it is not a crisis for 98% of the 8,500 commercial and community banks in the nation, including the more than 400 banks here in Iowa. Thats because they, like FSB, are extremely well capitalized and are the source of stability and growth.
That said, our country is in the midst of an economic crisis that directly relates to non-bank entities typically referred to as investment banks including Lehman Brothers, Bear Stearns and AIG. These huge investment firms are not governed by the same strict regulations under which state and national banks operate. These Wall Street firms act as advisers and agents for companies that want to raise capital, often by using mortgage-backed securities. Thats why they were allowed to purchase, package and sell high-risk, sub-prime mortgage loans without appropriate oversight and capital reserves, precipitating the economic but not banking crisis.
You may have also heard about mega-banks Wachovia and Washington Mutual who have recently failed or been taken over. Although these nationwide behemoths are banks, and have FDIC-insured deposits, they very aggressively participated in the sub-prime lending debacle that led to their undoing.
By contrast, community banks like FSB take deposits for checking and savings accounts from individuals and businesses. These deposits are insured by the FDIC for up to $100,000 per depositor per insured bank, and up to $250,000 for retirement accounts. We then lend this money to consumers and businesses in our local market for things like homes, autos, business equipment, and so forth. We lend locally, underwrite carefully and dont own high-risk mortgage-backed securities or participate in sub-prime lending.
And, as of October 3rd, the FDIC raised their insured deposits from the traditional $100,000 per depositor to $250,000 per depositor through December 31, 2009.
Q. What role does the FDIC play?
A.FDIC-insured banks are required to employ underwriting practices to avoid losses and promote safe and sound operations. FDIC insurance protects depositors against the loss of their insured deposits if an FDIC-insured bank fails. The chances of that happening are extremely remote, but a failed banks customers would have virtually uninterrupted access to their insured deposits. Most importantly, not one penny of insured savings has ever been lost by a customer of an FDIC-insured bank.
Capital (also referred to as equity) is the difference between assets and liabilities. This is the first line of defense to cover any losses in the event a bank fails. FSBs capital is almost double that amount, which is why the FDIC ranks us in the highest tier of their capital rating structure.
The FDIC requires its insured banks to reserve a significant amount of their earnings to serve as a buffer against any potential losses. As of March, 2008, the banking industrys capital had reached an historic high $1.36 trillion in capital plus almost $121 billion in reserves for a total buffer of $1.48 trillion dollars!
Q. What is the nations banking system doing about the current crisis?
A. They are providing stability. Having a safe and sound banking system to rely on shows the important role banks play in our local communities and in our nations economy. We are the source of stability and of growth.
Q. Who or what are Fannie Mae and Freddie Mac?
A. Fannie Mae and Freddie Mac are the two largest mortgage buyers in the country. These organizations were created by Congress in 1970 to buy mortgages from lending institutions, including banks, and then either hold them in investment portfolios or re-sell them as mortgage-backed securities to major Wall Street investment firms.
Q. Because of this crisis, Ive heard it will now be almost impossible to get a mortgage, credit card or some other type of loan. Is this true?
A. People with a good credit history will continue to have access to mortgage, credit cards and other types of loans.
Because of the critical role Fannie Mae and Freddie Mac play in our nations economy by making home ownership available for millions of Americans, they have been rescued by the Treasury Department and Federal Housing Finance Agency.
The good news is that if you are thinking of buying a home or refinancing your current mortgage, the recent government intervention in Fannie Mae and Freddie Mac will help stabilize rates, making it easier for homebuyers to qualify and for homeowners to refinance higher-priced loans.
Consumers should feel confident that this solution will help speed the recovery of the nations housing market and bolster our economy. In addition, the current economic crisis has already forced much-needed reforms on mortgage brokers and on Wall Street.
Q. Are you optimistic well recover from this economic crisis?
A. Yes! Americas banking system is strong. This crisis will pass, as have many others, and the result will be a stronger financial system with fewer unregulated players and a reminder why liquidity and capital are both important in keeping an organization solvent and successful.
Q. Where is the safest place for my money right now?
A. It will always be true that the safest place for your money is in your local, community bank. Its FDIC-insured, readily accessible and can earn you interest.
Banks play an integral role in local economies across the nation. With $8.4 trillion in deposits, banks have plenty of resources to meet the lending needs in their communities. In fact, banks made $200 billion in new loans in the fourth quarter of 2007 $80 billion of which were loans secured by real estate. This clearly demonstrates that your local bank continues to be the best resource for business and personal loans.
In addition, FDIC-insured coverage has historically allowed up to $100,000 per depositor per insured bank and up to $250,000 for retirement accounts. Effective immediately, and through December 31st of 2009, the FDIC is increasing the traditional $100,000 amount to $250,000 to underscore their confidence in the nations community and commercial banks.
Even without this temporary increase from $100,000 to $250,000 there are ways consumers can qualify to have more than $1.5 million of their deposits insured in a single bank by using different categories of ownership. If you have any questions about your FDIC-insured deposits, your best course of action is to speak directly with a Personal Banker at your local bank.
Friday, October 10 2008, 12:22 PM CDT
CBS 2 LOCAL NEWS
1 dead in plane crash near farm show in Iowa
September 02, 2010 13:03 EDT
BOONE, Iowa (AP) -- The Federal Aviation Administration says one person is dead in the crash of small plane towing a banner near the Farm Progress Show near Boone in central Iowa.
FAA spokeswoman Elizabeth Isham Cory says the Cessna 150 with just the pilot on board crashed about 2 miles north of Boone Thursday morning. She says the plane is registered to Drake Aerial Enterprise in Genoa, Ohio. There is no telephone listing for the compamy.
Air America Aerial Ads, of Genoa, is also listed on the FAA Registry as another owner. A person who answered the phone declined to comment.
Isham Cory says the National Transportation Safety Board will lead the investigation into the crash, which happened about 9:20 a.m.
KCCI-TV says a witness, Bob Johnson, reported the banner got caught in the corn. Johnson says the plane then nose dived into the ground.
Information from: KCCI: www.kcci.com/index.html
Boone News-Republican: http://www.amestrib.com/boone/
VIDEO LIST
 |
|
|
74°
Forecast
Thursday: Showers and storms return, Cloudy & windy. High: 77
Tonight: Showers end late, clouds begin to clear out. Lo: 53
Friday: A mix of sun and clouds, cooler, a few sprinkles north. High: 69
A cold front will move through the state today bringing sho ...
 |
|
|
BUSINESS NEWS
Stocks slightly higher
NEW YORK (AP) -- Stocks have edged higher after reports on housing, manufacturing and jobs indicated the economy continues to grow slowly.
CONSUMER INFO
Rodents, other violations found at 2 egg farms
WASHINGTON (AP) -- Food and Drug Administration investigators have found rodents, seeping manure and even maggots at the Iowa egg farms believed to be responsible for as many as 1,500 cases of salmonella poisoning. ...
SCIENCE/TECH NEWS
IN THE NEWS: APPLE SEEKS TO CONQUER TV -- AGAIN
SAN FRANCISCO (AP) -- It has already changed the way people listen to music and done much to change how people use their mobile phones.
GET THIS
BENTON BEARDS
BENTON, Mo. (AP) -- It will be a close shave -- and the men of Benton, Missouri, can't wait.
LOCAL GUIDES
Iowa
Cedar Rapids
Ames
Ankeny
Bettendorf
Burlington
Cedar Falls
Clinton
Coralville
Council Bluffs
Davenport
Des Moines
Dubuque
Fort Dodge
Indianola
Iowa City
Marion
Marshalltown
Mason City
Muscatine
Oskaloosa
Ottumwa
Sioux City
Urbandale
Waterloo
West Des Moines
IE6 Float Fix
