Title: Barry Armstrong on bank failures in US

" on Monday Monday segment the bank failures in the US have now topped 100 this year. Is that money is still safe in New England Gary Armstrong host of money matters on WPIX and financial advisor for securities America joins us now running very good morning. Before we start at about bank failure to want to show you something positive and this is the headline in today's. Money section of USA today outlook for Johnson turns positive it's based on a new survey that's as a but employers planning to hire in the next six months your thoughts."

" I think it's great news again I think what you're gonna see this week there's a number of corporations and -- be reporting earnings and if those -- earnings reports are as. Bullish as the ones that we've received in the last couple weeks that could bode very well for the employment outlook meaning that. Companies will finally have enough confidence to broaden -- hire new workers at the top at 10% market of unemployment or it may be before we see that we'll actually see some more jobs -- I think I'm the only person in the country who doesn't think that we're -- over 10% I think -- hit an eight -- 98 is where we are now. I'm hoping that we don't exceed 99. And and I think we'll start to see decline next year I think you'll see the unemployment rate dipped below eight for so let's hope so all right now let's talk about those bank failures we've got more bank failures on the horizon. We do you know we've had a 106 bank failures in the first ten months of 2000 and nine. What we should anticipate is probably 150 to 250 more bank failures or over the next eighteen months I think you're gonna see just a rash of bank failures. The difficulty is they just don't have enough examiners to go running around and closing these banks and there's not enough buyers to take them over 100 in the near future to fifty in the long -- that's staggering so. -- first -- any New England. You know there haven't been any in New England thus far in this is very interesting to see how solid our New England banks have been not one New England bank thus far. If you're. Concerned about your bank you can do some research we've talked in the past about Bankrate dot com and that website where you can go. And research the financial stability of your banks but New England banks I think. Have been relatively unscathed because we have a very conservative Federal Reserve. And we think we maybe you've learned a lesson from the previous crisis which occurred in the late eighties so none has closed at this point -- in jeopardy I think so I think it when you look in particularly if you look at the state of Rhode Island. And in Massachusetts. If you look at Bankrate dot com they'll indicate that there are number of banks. In those two states that are rated one star and read it to star with Bankrate dot com. Those are very unhealthy ratings as a matter of fact if you look at the 106 banks that have failed across the country so far they were all rated one star."

" All right for those folks there again wanted to grab -- bank rate dot com one or Bankrate dot com. Okay I'll also -- it last week rep did they show it seems a bit of huge news and the financial front and that work. That was the executive pay cuts your thoughts on -- and how that affect the overall economy. I think all of -- applauded that."

" Initially when they came out and say -- Bank of America Citigroup we loaned you billions of dollars to get your house in order and then -- excessively compensating your executives. I do worry a little bit about unintended consequences of that type of action. In other words you go when you slash the pay of the top 25 executives in each of those banks. Do -- bank executives and leave. Another competitor and make that bet that the bank even weaker unless of course what the companies are themselves saying what. Overseas right -- there -- so -- it they. You know there a lot of places for these -- to go in these -- ago so -- you worried about really the unintended consequences all right there are -- thanks again for sharing your insight always a pleasure thank you."