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What would happen if your local bank failed? Scott Pelley and "60 Minutes" were given extraordinary access, as the Federal Deposit Insurance Corporation moves in to take over a failed bank in Chicago.
Video runs 13 minutes and was broadcast Sunday March 8th.
A thought on Sheila Bair. I appreciate that she has been an aggressive banking regulator since early last year. I appreciate that she tells the truth and doesn't mince words. I don't appreciate that she did little to stop the housing bubble along the way. She didn't open her mouth until 2006. She should have been screaming from the rooftops starting in 2003.
Banks should have been told by the FDIC to stop writing mortgages on any home that had more than doubled in value in the previous 5 years. If a house sold for $200k in 1998 then why the hell is some bank writing a $500k mortgage on the same property in 2003 and an $800k note on it in 2006.
Banking suicide by proxy. And Sheila watched it all happen, quietly in the corner, saying nothing.
For those who can't watch the video, I have the entire transcript inside.
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