CBS Evening News for Sunday, Apr 17, 1988
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(Studio: Susan Spencer) Forsaking of Wall Street for local banks by small investors seeking to play it safe following last year's stock market crash featured; details given, scenes shown. [Mr. ZAMENT - describes feeling about banks.] Extent of savings and loans deposits since crash outlined on screen. [Shearson Lehman vice president James CAPRA - discusses new attitude toward saving.] Savings and loans television ads. shown. [CAPRA - says United States needs to save more.] Impact on incrd. saving on United States economy reported [Federal Home Loan Bank Bd. spokesperson Eugene SHERMAN - says financial system funnels funds into United States economy] [ZAMENT - wants sense of security] Report introduced.
(Houston, Texas: Bill Whitaker) Issue of soundness of banks featured; scenes shown of bank failing in Houston, Texas. [DEPOSITORS - complain about bank failures.] Texas building spree during oil industry boom detailed; impact of crumbling real estate market on banks noted. [National bank examiner Charlene HAMLETT - says there will be more failures.] FDIC (Federal Deposit Insurance Corporation) insuring of banks deposits noted. Status of FSLIC, whichinsures savings and loans insts., described. [General Accounting Office Frederick WOLF - estimates cost of resolving banking problems.] [Econ. Clifford FRY - say FSLIC didn't have the money to pay off depositors.] Need for Congress to help banking industry noted. [Representative Gerald KLECZKA - says possibility of tax bailout is more and more real.]
(Studio: Susan Spencer) Report introduced.
(Philadelphia, Pennsylvania: David Culhane) Banking tactic of "redlining," where bank refuses loans to entire area because people there are poor, detailed; scenes shown from Philadelphia, Pennsylvania. Squeezing out of low-income people from banks described. [RESIDENTS - say banks bypass neighborhoods.] [Concerned citizen Nira McLINDEN - says there are little people just trying to save; discusses bank fees.] [Community leader Pam RILEY - says people with small incomes are burned by banks' chgs.] Reasons for closing branch banks examined. Program by First Pennsylvania Bank to help situation in poor neighborhoods detailed; scenes shown. [First Pennsylvania Bank spokesperson Leslie BUTLER - explains services.] [McLINDEN - comments on banks.] Alternatives for poor to traditional banking outlined.
(Studio: Susan Spencer) Proposals before Congress to revamp banking system discussed.