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Around on the -- real estate slash banking story right we know that despite the failures this year -- ninety plus banks the majority of American banks do.
Remain strong however.
We also know that Washington would like to regulate greater some of the banks in the United States.
Your next guest now says -- the banking industry has some problems but more regulation is simply not the answer joining us from Tallahassee Florida.
Florida bankers association president Alex Sanchez Alex thank you very much -- being on Fox Business again we appreciate it.
Listen no problem -- which you Brian good morning to you thank you what you've you've you've probably heard at the door previous guest talking about some of the problems in the housing market.
Course Florida was housing boom and in some cases -- Central how is the state of Florida banking right now.
Well -- you know -- -- again I think we're looking into the crystal ball for the future.
I see optimism in our state and you know there's there's -- saying we haven't -- -- using the last one man in the first one out.
Of any recession in our country.
I think things are looking -- real estate boom real estate sales are booming here.
In our state obviously we've had a price correction -- from the past two years but real estate.
Even our Condo sales are way up.
And and so we're we're very fortunate that in Florida.
We have a lot of people intrusive in our state both domestically and internationally that's what makes -- an exciting place.
To be because we have people from all over the world and of course our country's moving here.
International buyers maybe not being backed by the FHA but let's get to wire here ha -- editorial board to New York Times recently coming out of an op Ed saying we need more bank regulation in the sense of summarized it.
You actually wrote back to them.
And said you know what we don't in the traditional banking sense.
It was beat this so called shadow banking system.
That really was the bigger cause of this explain what you mean by that and why the more sort of traditional you know your your corner bank in your neighborhood.
Do not need more interference.
Brian you know I think I've been -- in the last two weeks and I -- shift beginning to to occur it was still a long way off from.
From any major changes but I'm -- like political dot com ran a story yesterday that.
Moderate to conservative house Democrats are getting concern on the creation of another federal bureaucracy Bryant.
-- who's gonna pay for this.
And and and and you know and it's not really doesn't have the -- to regulate.
The shadow banking industry and look there are some good points in the bill let's create a systemic risk regulator.
Let's create a system to on -- these gigantic humongous.
Systemically risky enterprises save if we have to I think that's a good thing -- the government needs to do but you know.
But you know the traditional FDIC banks who who have been sticking to their knitting Brian.
They did not cause this problem and and and the president himself in his white paper came out on this consumer protection agency.
When he -- -- about a month ago he said that 94% of the toxic high cost mortgages.
Came from the non FDIC bank so.
So let let's get the shadow banking industry more regulated does anyone know how the trip how the rating agencies -- Our investment paper that we as Americans relied on that triple -- rating.
Not one headed role did at the SEC because of Madoff can I ask when is that gonna happen.
So you know these are the questions that congress and the president should -- first before targeting the the well regulated.
And and you know strong.
FDIC traditional management system on member.
There are banks are the primary lenders to small businesses yeah.
America and why am -- -- your point is well taken out it is not the Bailey building and loans right ability of the world's.
That we're making you know you know no money down you know negative option hybridization amortization arms whenever.
He was more of the -- -- the bigger companies of the mortgage brokers who were then just transferring selling the risk but we still have more than sprained -- banks on the FDIC's failed bank list.
You know and while that's not a big number based on the former S and L crisis -- -- -- ago it's still a number that causes concern.
How many Florida if you think are in trouble right now.
Well what -- first one you're on your good point did you just made but it just shows you how well we're regulated we are that we've had -- failures and and those banks have been close and I can tell you.
Those CEOs of those ninety or so failed banks will -- excel from my industry forever and ever.
And know what their financial services industry can you say that -- is no one else has a regulation we have.
You know I think that that shows that the system does work.
The FDIC the Fed the OCC the OTS and the state banking regulators are doing their jobs now as far as -- concern.
-- I you know we've had six -- in Florida this year we get 21 in 1990 and 23 in 1991.
Obviously you know in any recession you will have bank failures so up to now as of today.
We're very you know satisfied.
That we've had the number's been this -- But but you know obviously we're we've got issues were working through but I think our banks are I've reserved tens of millions of dollars here in Florida.
As -- rainy day fund I guess you could say.
Again it's for the losses so I think things are looking up and hopefully between now be between now the end of the year.
Will have we won't have too many.
-- floor and I hope.
You're right out because your previous question he's gonna it's either going to be you and me and our staff here it's gonna pay -- it's going to be our kids or grandkids someone's gotta pay the price.
Well I know I -- I don't ride but you know but again our industry's well regulated and member of the bankers pay into the FDIC fund.
So banks have to pay that assessment that goes to fund the FDIC vs general revenue dolls of the federal government.
As long as it nets out people were in good shape Alex Sanchez president of the Florida bankers association thank you very much.
About your Hokies Brian it was a big win by the Hokies out thanks for remember we got a tough game against Miami coming up this weekend.
Are you got to -- good you're going to be -- Brian don't say it nicely after a Sports Illustrated affect next thing you know put us on a couple of Alex thank you very much.
Thank you Brian.
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