IndyMac Meltdown; Treasury & Fed Bolster Freddie Mac & Fannie Mae; California's Next Governor; The Future Of Paid Sick Leave; Why Moderates Make The Best Presidents
IndyMac Meltdown
Pasadena-based IndyMac bank was shut down Friday by federal regulators during a run on deposits. The bank was already suffering from credit problems due to the high level of subprime mortgages it had with people with bad or no credit history. IndyMac has re-opened today with a new CEO put in place by the Federal Deposit Insurance Corporation, or FDIC. Customers lined up this morning outside IndyMac to withdraw their money. The FDIC insures individual accounts with up to $100,000, joint accounts up to $200,000, and individual retirement accounts up to $250,000. Those with more money in Indymac will be insured for half of that amount. IndyMac is the second largest bank ever to be taken over by the FDIC behind the 1984 takeover of Continental Illinois Bank. Larry talks with Kathy Kristof, business reporter, Los Angeles Times, and Chris Thornberg, economist and principal at Beacon Economics, about the health of the U.S. banking industry and if we can expect more bank failures.
Treasury & Fed Bolster Freddie Mac & Fannie Mae
The Federal Reserve and the Treasury Department announced steps to brace slumping mortgage giants Fannie Mae and Freddie Mac. The unprecedented plan, unveiled yesterday, is intended to let investors know the government will take all necessary steps to prevent the credit market troubles that erupted last year with losses from the subprime mortgage debacle. Treasury Secretary Henry Paulson is seeking expedited authority from Congress to expand its current line of credit to the Freddie and Fannie and, if needed, to buy shares of the two companies. Larry discusses the plan with Neil Irwin, National Economy reporter, Washington Post and economist Chris Thornberg.
California's Next Governor
California's first open-seat governor's race in 12 years is expected to draw a crowded field of prospective candidates. San Francisco Mayor, Gavin Newsom, was the first to open a gubernatorial campaign committee, allowing him to start banking contributions for a highly competitive contest that some say could cost as much as $30 million. Tom Campbell, former San Jose Representative, is the first Republican to officially become involved in the race. Other names being bandied around include, Brown, Poizner, Garamendi, Westly, Villaraigosa, Lockyer, O'Connell, and Whitman. Larry talks with political analysts Sherry Bebitch Jeffe and Raphael Sonenshine about the potential candidates and their chances.
The Future Of Paid Sick Leave
United States is unique among industrialized countries in that it doesn't mandate a minimal number of paid sick days for workers. The California assembly and the U.S Congress are considering bills that would provide for paid sick time. According to data from the federal government, 43% of American workers in private industry don't have paid sick days and many companies that offer this benefit are cutting back on sick leave or combining it with vacation time. Larry talks with Fiona Ma, California State Assemblywoman, 12th District, about a California bill that would give paid sick leave to nearly all workers in the state; and with John Kabateck, Executive Director of the National Federation of Independent Businesses and Kim Stattner, an expert on absence management for Hewitt Associates, about the future of this once venerated-benefit in the American work place.
Why Moderates Make The Best Presidents
Larry Mantle talks with author and historian Gil Troy about his new book, "Leading from the Center," which presents evidence why the best American Presidents were able to avoid partisan extremes and work to lead from a more centrist point of view.