Keynote Speaker

CHAIRMAN POWELL: Thank you, Mike. What a wonderful crowd. Thank you for being here. You honor us with your attendance. I'm delighted to be here.

I first want to acknowledge the hard work of the folks here at the FDIC in creating this forum and getting us here today. I'm often reminded that these things do not happen without the work of many people. I know there were several folks working here last night and again early this morning. Thanks to each of you, for putting forth the effort and enabling us to make sure that this forum is successful.

Today's topic and issues are very important to America. They're important to the banking industry. And they're important to the FDIC.

A few weeks ago, I was in the great state of Texas, driving from Dallas to Houston. Those of you who know Texas know that there are a lot of small communities between Dallas and Houston. I was not dressed like I am today. I was wearing jeans - Levis, boots and shirt. My wife was with me, and we stopped for a break, either in Corsicana or Ennis, to get some gasoline and a soda. As we pulled into town, my wife looked at me and said, "Now you're not going to go to a bank, are you?" She asked this because my habit has always been, when I'm in areas like that, to visit a bank. I enjoy visiting banks. I like to go in the lobby and see how they're set-up, how much business they're doing, and other things. I've been doing this for years. I don't go just because I'm affiliated with the FDIC, though sometimes that's what I tell my wife. To be honest, I like being in a bank and I always learn something about the bank, the people running it, and the community when I go into a bank.

But that day was different because when I went in to pay for my gas at the convenience store, I happened to notice that over to the right was a check cashing facility. We were there about 5:30, maybe 6:00, in the evening. My wife saw me standing back and observing what was happening. There must have been 10 or 11 folks in line that day. She looked at me and said, "You're not going to do it, are you?" I said, "Oh yes, I am."

So I got in line and had an opportunity to visit with the folks in the line. I visited with a few of them. I said to the first gentleman, "You know, there is a bank about a block from here where you can cash your check." I didn't know this, but I was assuming - and going on faith - that the bank would cash his check, if not for free, then less than what this check-cashing facility was charging. He said, "I know that. I know that."

I said to the second fellow, "Sir, do you know what you're paying here today, what your real cost is?" He said, "Yeah, it's six dollars." I said, "Do you know what the annual percentage rate is?" He said, "No, I don't. And I don't care."

I said to the third gentleman, "Why don't you just go down to the bank?" He looked at me and said, "That's the bank that foreclosed on my uncle's automobile. He doesn't have an automobile today." I visited with him about some other issues, and several things he said stayed with me. As I got in the car, I thought about what we're doing at the FDIC as it relates to financial literacy. And I thought about how it's extremely important, critically important, that we educate all Americans and help get them into the financial mainstream.

Having said that, I discovered - at least that day - that the unbanked folks know more than we think they know about what they're being charged. And since it's not a cost issue, it's more what I refer to as "soft issues" that are perhaps keeping the unbanked from the mainstream. What I'm really talking about, is that these folks are not welcome. They're not welcome in the lobby of a lot of our institutions. You can say, "Wait a minute. That's not true." But I don't think those folks in Texas were lying to me. They didn't have any reason to lie to me.

The whole notion of trust is critically important, so bankers must find a way to make sure that all are welcome in the lobbies. And it may be important that banks get out into the community, go to the plant and other facilities. Visit them and offer educational programs like we're attempting to do through our Money Smart program. We're forming partnerships throughout America with all types of entities, all types of organizations. It's critically important that we go out to where these folks are, and make sure that they understand that banking is easy and bankers are real people - people just like them.

I promise you that if I had been wearing a suit and tie, like I am today, those folks waiting in line to cash their check would not have been as candid or forthright with me as they were. First of all, they would probably have clammed up, thinking that I was trying to find something out about them.

Now some folks have different backgrounds than you and I do, and they're attempting to get into the mainstream of society. I say to bankers - and I talk to the bankers a lot about this - that, clearly, bankers in their community are a lighthouse of everything that's good. Banks are about more than making a buck. I'm a former banker, and sure I wanted to make money - we had to make money to survive. But we stood for more in the community. Banks are the lighthouse of the community - and our roles convey responsibility. Making sure that the unbanked get into the mainstream in America is a worthy goal. If we help these folks become average Americans, middle class Americans - let me tell you what middle class Americans do. They pay taxes. They teach Sunday School classes. They attend PTA meetings. They assist the homeless. They make contributions to charity.

All products that bankers offer are not necessarily profitable at the beginning. Serving the unbanked may not be profitable at the very beginning. I assure you that bankers understand there are a lot of ways to make money when you get these folks into the mainstream - being part of America. It's critically important.

So I hope today the panels focus on economic literacy, making sure that all are educated. But I hope that we also focus a lot on what I refer to as the soft issues, because I think they are really what keep a lot of Americans out of the mainstream of America.

I'm delighted to be here today. I'm anxious to hear from our panelists. We have some distinguished panel members. We have some folks who are dear friends of the FDIC. Ellen Seidman, who was the Director of the Office of Thrift Supervision, is a tireless worker on some of these initiatives. I told her just this morning that while I see a lot in the press about what people do, I think the world is quick to recognize a counterfeit, a phony. Ellen is no phony. Once when she and I were meeting about something, she asked me about my weekend and I said, "Well, I watched football and went shopping with my wife." Then I asked Ellen what she had done over the weekend. She said, "I spent Saturday over at the library helping some folks prepare their income tax returns." She didn't know how much she was telling me about herself. Like I said, Ellen is not a phony. Ellen walks the talk.

We're also joined today by two distinguished members of the FDIC Advisory Committee. I saw Sheila Bair. Where are you, Sheila? Sheila was formerly with the government, now she's with academia. Among her many accomplishments, one of the most important things about Sheila is that she's a mom. She's a mom, who happens to be a professor. In addition to these incredibly demanding responsibilities, she also assists the FDIC by serving on our Advisory Committee on Banking Policy. And let me tell you something, she is not timid. I'm glad she's here.

And this afternoon, we're going to be joined by the Reverend Flake -- a distinguished American. I'm so proud that he is serving on the FDIC Advisory Committee, because he has lots of moxie. I love to sit and talk with him. I remember going to New York and just sitting with him and talking about his mission, his vision for what his church is doing in New York City.

And then we're honored to have among the panelists three distinguished Congressmen. One hails from the great state of Texas, Representative Hinojosa comes from the great state of Texas. We're delighted you're here with us today.

And we're also delighted that Chairman Bachus is here today with us. I got to know him a couple of years ago when we were working on deposit insurance reform. I found him to be not only a conscientious representative, but someone who extended the hand of friendship to me as a new person in Washington. He made me feel very comfortable. You know, going into a Congressman's office is sort of like going into a bank lobby. It could be very intimidating for a guy like me, new to Washington. He and his staff were very generous and made me feel extremely welcome. Thank you, Congressman, for being here.

Congressman Scott is also on the panel today, and if you haven't heard his story, if you haven't been able to visit with him about his life, it's a remarkable story. I found him to be a gentle spirit. He has a velvet hand. He's very, very bright and very, very sharp. He hails from Georgia, and he represents the people of Georgia, but he also went to Florida A&M. There you go. I got it in, Florida A&M.

So we're delighted that you three gentlemen could take away from your very busy schedules to be with us today. We look forward to hearing what you have on your minds.

Now, the first panel will be moderated by Judy Kennedy. And we're delighted you're here, Judy. She, too, is a tireless worker. She is President and CEO of the National Association of Affordable Housing Lenders, and undoubtedly has one of the toughest jobs this morning being the moderator of this distinguished panel.

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