The MacNeil/Lehrer NewsHour

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fb for error good being in the headlines tonight president reagan said the prospects weren't good for a summit meeting with the new soviet leadership seventeen lacks died in a clash between demonstrators and police in south africa and london on twenty three persons including two tv news crew men were killed in an israeli army raid and new figures show surprisingly sluggish growth in the us economy robin on the newshour tonight we follow the news summary

with an extended focus section on confidence village martin chairman of new york's municipal assistance corporation much of today's fighting those estimates of merrill lynch vice chairman john hyman and congressman charles schumer discussed confidence in the us banking system after ohio served crisis and on the three profile a musician race the macneil lehrer newshour is funded by at and t the corporation for public broadcasting and the station and other public television stations chances are good for selling meeting between president reagan and mikhail gorbachev the new leader of the soviet union mr reagan said in a televised news conference tonight he did not believe he had been rebuffed thus far in his somewhat awkward well i don't really consider being read by helen because the man has only been in office for a few

days and i have some idea of what is confronting and now that i've had and i felt the same way about each of the three previous leaders there and the thing that made it impossible but there are a number of things bilateral situations between our two countries and other things to talk about that we are negotiating or talking to each other on a ministerial level and that some of those could probably be further advanced if we'd met at a summit and so i was met by an agenda planned meeting not just wanted to get acquitted here's one in which just as one legal living in canada we haven't announced things that we want to talk about and they have an agenda of things i want to talk about mutual problems that confront us under i think it's high time that we get this right i think they were they should be good

i think in some of people oh we've got about an hour to have conversation vice presidents secretary speaking with them when they were there and so i think it's a i think there's a good chance of that the reason the idea should the invitation was because under the protocol that existed look back over the history of such meetings why it's our turn to be the host so that's why i proposed that if if he would be invitations extended for whenever he the president opened his news conference with words of thanks to the center for approving the amex muscle years the house do the same next week roubini has claimed arms control talks in geneva depend on problem south african police fired on a column of what protest marchers today killing seventeen of them and wounding twenty two it was the twentieth anniversary of the sharpeville massacre in which nearly seventy blacks were killed at a demonstration against apartheid in nineteen sixty

today the blacks were shot in a marginal port elizabeth they said they were going to a memorial service and that the police fired without provocation the police said they opened fire only after the blacks began throwing stones and stares at them at his news conference today president reagan made this comment the pressure that we're putting on them and i know the gains that we've made that we noticed a long way to go but i and to put that way that they were simply killed in the violence was coming or totally from the long order cider ignores the fact was riding going on the help of others there and it is tragic and again we hope that this can be corrected but i think also it is significant that in the officers suddenly with the police side which over whether they would literally say that there were police it is significant that some of those

enforcing the law and using the guns were also black black policemen weeks at security situation that the black vote the fact that whites have a gun on the black and so i say that there has been increasing violence and there is an element in south africa who didn't want a peaceful settlement this one a violent settlement want trouble in the streets and and this is what's going on i don't hold with what has happened and as i say i think all of us find the system that republicans were going to keep on trying to contribute to a peaceful solution if we can't there was also doesn't balance in lebanon today israeli army troops armed shiite muslim villages in southern lebanon looking for gorillas the israeli government sentiment and girls were killed and large quantities of murder of grenades and other arms were seized two lebanese newsman employed by the cbs television network also died in the action a cbs car was badly damaged another journalist president said an israeli

tank fire to shows at a distance of five hundred yards ms rosenberg thank you who had taken firing positions several television news crews and other reporters were also in southern mother not uncover the israeli search for gorillas there is a report from keith graves of the bbc israeli armored columns sixty tanks personnel carriers and trucks carrying paratroopers crossed israel's front line up of the tiny river at dawn and swept north and then west in an arc the broughton quickly to within four miles of the port city of saigon router tree that abandoned just a month ago there is no escape they seal the villages off and carry out system and exemptions killing anyone who offers resistance taking with them when they retreat the village's news and men for that's what happened at an email caught up a small shiite muslim

community for several hours the israelis went through the village building by building most civilians and fled but shiite rocket propelled grenades and some resistance is back and that ended the israeli set fire to some buildings others a van across the valley where militiamen were gathering they opened up on and who plays rey a story repeated in a chain of other villages in a major escalation of israel's iron fist policy the government issued figures today to indicate that the us economy is slowing down and inflation is speeding up the commerce department said its advance estimate shows rows of only two point one percent and the gross national product for the first quarter in nineteen eighty five many economists had predicted the rate is three to four percent as they report indicated that in the first quarter prices were rising at an annual rate of five point four percent the highest rate since the spring of nineteen eighty

two in ohio the doors were open again today at five of the savings and loan associations that closed last friday because around the depositors asking for their money is a report on one in columbus by george zimmerman of ohio public television century savings open for red shoes scattered across the state this morning centuries columbus' voyage was busy but there was no sense of panic among customers countries always been strong and i did look at their finances before because my money originally concerned all of them and romany customers made deposits of the new accounts unlike some did come to withdraw their money and close their accounts the ruling of those prisoners withdrawing and that you've chosen to enter us all edna said she was moving her money to a bank doesn't get in this project that i have although century savings officials said they had experienced about what a half million dollars in withdrawals

by early afternoon they indicated few customers we're closing their accounts and on any sect members that very very small percentage who have a large customer base here whenever i had very few percentages that squares outside ohio officials want more of the closed cities of loans will reopen tomorrow as they meet the requirements for federal deposit insurance later in the program we'll focus on the problems of the economy in general and financial institutions in particular another government talking about today proposes a slowdown in selling leases to drill for oil and gas offshore for the first time in twenty seven years with his would be offered in waters off the pacific northwest the first draft of the interior department's five year plan calls for one sale every three years instead of one every two years in areas outside the gulf of mexico where they would still being held every year plan would take effect in june nineteen eighty seven and was you know we focus first and

foremost a night on the new troubles of the economy and the real and the imagined the latest of the real main today's report of a surprisingly sluggish growth in the economy yesterday was the news us consumer confidence in the economy as lauren allen it's been in thirty years and all we could spend the crisis of the savings and loans in ohio which triggered dollar prices down gold prices up and fears about the health of the entire us financial system banks as well as savings and loans we get first an overview of what's going on from a man who reviews the us in the world economy for a living is felix rohatyn a partner in a prominent new york investment furman chairman of the municipal assistance corporation for the city of new york a month among other thai restaurant and first how do you look what you see in these cell growth figures for that when i mean you well for so i think you have to be always a little bit careful with any set of numbers because so many of them get adjusted afterwards and so many of them have turned out to be not exactly on the mark on the

other hand it seems to me that it's perfectly logical when we had an economy that has functioned so heavily with foreign imports coming in that at some point things were going to slow down or whether this is the beginning of the slowdown or whether it will happen a little later nobody can tell what seems to me to be the the overriding question in all this is the fact that we really can't afford to go into a recession in this country with a level of deficits as it stands today in a p are the high economic activity and the way the united states being as dependent on foreign money financing our deficits is we are today because the whole system is no are interlocked on the basis of confidence in the american economy well we've been able to the most out there the reason the confidence is important is that was called in the foreign investment in the first place right absolutely yeah people have heard of finance our deficit if you will people have brought them

huge amounts of of foreign currency and have more dollars in order to buy american securities and treasury bonds for now they say what happens now they say this two point one and a growth rate what is that was against it well what they think what they could think is that our economy could be going into a recession but it could be less strong than it has been that if we go into recession going in the door with a two hundred billion dollar deficit all of a sudden we could be looking at a two hundred and fifty or three hundred billion dollars deficit that as a result of the recession we would try to inflate our way out of it and that therefore their investment in this country would be less secure they will have a tendency to begin to pull their money out of here the result of that could be higher interest rates at a time of slowing economic activity which would probably an extremely bad scenario to be looking at and if that were to happen you have to remember that this country was the locomotive that for the whole rest of the world out of

recession over the last three or four years and that countries which are huge for and others like brazil argentina mexico et cetera have been able to survive mostly by exporting to the united states and if we slow down and at the same time our demand for credit keeps on going up that the whole financial system would become very very fragile and i think those are the things that are in the minds of people whenever the world as a look at our economy our economy has been absolutely the only locomotive that his camp the financial world from getting into real trouble with revenue that scared me to death that's a terrible scenario used outline are there any signs of all the air out of that happening today well i'm not saying that that is happening today i'm saying that i think that's what people are afraid of i think it is a scenario that is it's not out of the question is a scenario that could happen it's is an

hour that can't be allowed to happen however if we go into recession at a time when the congress and the administration still haven't gotten together on any kind of a deficit reduction program are and if if at the same time the rest of the world gets nervous about the financial system as a result of things that on the face of them should be irrelevant amendment the fact that aig small institution in or high in miami goes bankrupt and that a few savings banks in ohio clothes should not make the whole world knows about a day's do they don't because of all of these other problems which are much greater problems of the third world that the problems of the overvalued dollar the problem of too much debt being created all over the system and the system being not totally dependent on the continued american growth and on the continued unwillingness of foreign capital to finance its growth i was

told yesterday that the health problems of the savings and loans and ohio were played as bigger news and great breton than they were in the united states and some inspectors on that i was the man to the average layperson well you must remember that when you go to europe or when you go overseas it'll people see the word bank they see the word ohio in effect what they're there translating in their mind is if you have american banks in difficulty and four a couple of years now we've been living with the illusion that the third world debt problems of them resolve that because a lot of these big debts will reschedule but the banking system was totally safe people had never quite however gotten these these problems out of their minds and the fact is that they're still there and every time something like this happens that awakens the result of the underlying concern for the system and the concern is justified that doesn't mean that we're going to have a disaster that means that we have a very very highly levered structure and the first thing it no

credit is a word that comes from the latin to believe it's not a science credit is not a science anymore than balance sheets are a totally totally sure thing because they balance and the moment his belief is put in question the whole system becomes yankee is that correct reading also of yesterday's figures on consumer confidence even here in the united states the lowest its been in thirty years i think so i think people instinctively know that you just cannot go on borrowing yourself into oblivion on in the name of prosperity we tried that in new york city which almost went bankrupt in nineteen seventy five and we found that there is no magic to those you just cannot borrow for other there has to be a reckoning of you have to do something to correct the situation and the immediate turn would you expect for us as the price of the dollar to start going down and began to see that dramatically in the next few days you know that great yards all over the world are

festooned with tombstones of people who tried to predict stock markets or securities markets and i'll try not to add my tombstone to vote i think the logic would dictate the dove that the dollar should come down over a period of time the real question is is the dollar going to come down abruptly to a hard landing or is it going to come down over a period of time and find its own level gently i think that is the question that nobody can predict it will depend on world confidence it will depend heavily on whether we become realistic with respect to our budget and our deficit it has gotten paid for a warden and down this road and go away thank you robert still to come on the newshour questions of confidence in america's banking system felix rohatyn returns for a discussion with congressman charles schumer and merrill lynch vice chairman john heim also a profile of a musician who specializes in the music of johann sebastian bach's three hundred years old today harry's because this is pledge week on pbs were taking a short break while local stations after your support

your pledges help keep programs like this on the air would eventually to discuss confidence and the banks the station's not taking a pledge right now on the newshour continues with a look at an extraordinary exhibit at the detroit institute of art their masks and sculptures by tribesmen and napster what's bipartisan true masters like picasso imitates the show opened last year a new york producer darryl reports the exhibition called primitive isn't modern art takes us back to the turn of the century in paris impressionism hippie and a young artist was searching for something new and they found it in tribe allied from africa oceana and north american public because there was this for starters jimmy reed and it

happened when he saw the finance quite accidentally in a paris museum in nineteen oh seven when ruben who curated this exhibit says when picasso saudis announced he was shocked he knew nothing about drug law didn't even know existed and he wandered into the a lot of sex and was overcome by these objects less why the aesthetic character of the arctic that went on that became very important to him about the sense that these objects have a kind of magical power they were used by the people who made them and the people who use them in connection with fundamental human activities birth rites of passage fertilization of the field and so forth and that the artist were not concerned with indicating major but somehow changing nature and it was working just about out of that is more than anything else that the role or should not do to reflect nature what that meant for example

that a painting of a face didn't have to look like a face it could represent a face and the face could have the magical power within two weeks of the museum visit the casa was re making faces in this painting called lee families of doubting you now regarded as a giant step in twentieth century art he made the changes you see on the right side of the picture where instead of a simple scheme applies to see in the middle you get something which is infinitely more or distorted more powerful and most help from the powerful illusion of the sculpture of the three dimensional in these mask like faces is intended two african masks and fiscal and according to ruben paso was experiencing deep emotional problems at that time he felt that by indian faces with magical power he could liberate himself he spoke about this bitterly as his first

excellence is a picture that somehow things that had been brought on things that work i'll work for him he had gotten that out through this picture and somehow resolve he also said if we can put a face on these figures if we can find an image for a few years we can compete the tussle began collecting african and oceanic art and continued throughout his life these objects had a kind of talisman of meaning for him and provided him with images and ideas for example when he made this sculpture of a guitar in nineteen twelve he conceived of the idea dia for the preacher leading sample from the eyes on this agreeable mask which hung in his studio in the late nineteen twenties because oprah just this african the sculpture and placed at the entrance to his home the name it was a goddess of fertility during the next few years because i made these busts of his girlfriend laurie to rest raben points out that the customer labor and shapes

remember that even tried for some of its actual power this is not a case because of copying anything but there's a kind of large category of possibly without his even the caucus of the song of the qualities of this uptick found their way into his new sculpture other artists because this generation is deeply is because the ritual meaning of traveling at many powerful inspiration from its aesthetic beauty and rubin says his influence continues today in this exhibition contains a lesson in humility it's not simply that people lived in a technological sounds a lot more primitive than we could produce works of greatness he quote erroneous not legal in certain respects but that somehow this material technological difference in civilization's councils are a little on the spiritual level of art if anything this is a wonderful

example of how the third world peoples have contributed to our western plot we move our economic focus now to this specific concern over the financial system the banks which several of which have been and remain in large trouble and the savings and loan said many of which were shut down in ohio last week and a crisis that remains mostly on was all there are those who believe the major cause of it all is deregulation of the nation's financial institutions how it has affected the conservative world of banking is the subject of this report from california by spencer michael public station kqed san francisco nineteen thirty three thousands of banks fail during the depression amidst the chaos of bank runs fdr signed the banking act in nineteen thirty

three law creates the federal deposit insurance corporation the fdic to protect depositors it also imposes heavy regulations on the way were banking industry the new rules say interest and loan rates and provide a modest yet guaranteed prof along with that profit comes stability really deserving of the public trust regulations were the industry enjoys forty years of peace and prosperity it's not all at the legendary seventh money market accounts are permitted in nineteen seventy one was the vote will run on banks in two hundred billion dollars out of banks and into the high interest money unable to relieve banks clamored for relaxation of spring general forty years before by the eighties the industry have begun a process of the regulations would allow it to go toe to toe with the money markets and each other offering competitive interest rates and a variety

of consumer service the era of federal and state the regulations also spawned and types of financial institutions that are not banks that offer many banking served for this intense competition for deposit or dollars and shaken me in this seventy nine federally insured banks failed in nineteen eighty four ten percent of all federal savings and loans said to be in serious trouble that mean serious problems for the us you know we have been described as speculators we had been described as a little old ladies in middleclass executives who should've known better with just people bill sullivan is one of the twelve hundred depositors of the western community money so not technically a bank for the low male closed by the state of california in april of nineteen eighty four forty thousand of the one hundred million dollars in assets seized by the state

along to him as ten months of changed his life sullivan has become the point man for a group of depositors fighting to get their money back thank you very much tom reshape the other eighty four corners going to talk about the west virginia money sent what irritates him most is the notion that somehow he used to blame for the loss of this month or at the sink about what was the ritz only accounts were insured thousand dollars closely regulated as new information for him by the state of california only didn't win over fifty thousand dollars with no risk and begun war next a percentage point this was a bank when as though the bank the huge oh not a bank money center headquartered in the affluent suburbs east of san francisco functioned like a law offering checking accounts and other services in a variety of locations around the bear with interest rates of eight percent on checking accounts

money central bank depositors to quit they want to become the largest financial institution in california they just didn't they were more concerned were taking and senate were putting among quality low in april after a full year investigation by the california department of corporations which regulates thrifts and loans the center was co finance its insolvent assets see the eye syria's warring for another show their money was insured by the state regulated for guaranty corporation they expected what we name according to the rules assets had to be liquidated before depositors get their money back recently told it would take one month soon learned it might take five years infused with outrage and others accused the state of readiness he'll ride public demonstration to push their point retired couple

dominated the picket lines of holes like abba and john taylor we are sky landscape but terry's had on her friends advised deposited john terry's one hundred thousand dollar retirement fund in the money so i talked to a man for corporations so i'm the fight on recent well it's the largest could consider was someone you mean he was over there they had to realize there must've been a difference between the money center and other financial institutions because it was paying higher rates than anyone else in the area the timetable for repayment the state says it's set by statute so their hands are tied there is pending legislation in the state capital in sacramento may provide emergency loans but for those waiting for their money

the experience has been a nightmare and we are being put through the equivalent of franz kafka novel i'm a nonmember in college i had to read one of those books i couldn't believe that i said this would never happen in america well it is happening in america and it's happening right here in california the california legislature will soon vote on the plan to guarantee a sixty six million dollar loan to pay off depositors of the money center while supporters are optimistic that the plan will pass most agree that it would be at least a full year from the original closing day before anyone receives his money in full we go now to a member of congress who shares consumers concerns about the solace of the banking system and the safety of their deposits here's democrat charles schumer in iraq a member of the house banking committee congressman we've seen in ohio people are worried this week presumably thousands and california are worried is the banking system of this country in trouble well it's in trouble in the long run if things don't change is there a problem for

people across america who have their money in banks and thrifts in other institutions immediately now but the basic problem is that the banking system which for fifty years was the most stable system in the world we created a miracle since franklin d roosevelt's time and his confidence in the banking system that was broad and deep that confidence is being you wrote it in the last five years were and the reason why is basically that the banking world has changed and deregulation has hit that world banks have to pay much more for money it's an advantage to consumers to be able to get when you put your money in a bank no longer zero percent or five and a quarter percent but the gator nine percent but that puts a burden on bags they have to find investments that will pay them ten or eleven percent so they can make money on your deposits and so what happens is they start placing their money less carefully than they used to and higher yielding investments with higher yielding investment she'll board because there are risks and sometimes those risks

create real problems that's what happened in ohio that's what happened when banks were too much of their money in oil and gas loans that's what happens is out there in california when banks take risks more banks get in trouble and the greatest worry i have is not the individual individual banks that go on the role i feel very deeply for the depositors and think that they should be reimbursed in full but rather that the confidence you wrote the banking system without confidence is like a human being without any ability to survive is greater risk taking by banks making loans and buy a people making deposits in their more aggressive banks is that an inevitable price of deregulation well partially yes mean certainly a bank can no longer issue mortgages six percent was paying a present to depositors who are putting their money here but it can be regulated it can be modified the fact that a

bank in ohio the home state savings whose collapse led to this whole crisis was allowed to have one third at minimum probably more than one half of its deposits in one place should never never happen again the state read the regulators in your group shouldn't have permitted to do that that they shouldn't have and in fact there was a federal bank under the new rules that have been promulgated by the ssl i see it couldn't tax what do you think needs to be done several things need to be done to restore confidence the first thing that should be done is gradually the non federal insurance system should be taken over by the federal government the federal system is much deeper and wider one the collapse of the largest bank or snl in the in the federal system could not bring the whole insurance system there second thing that has to happen is that the monitors have to start doing their job better was much easier on a bank twenty years ago because the routine number of investments you didn't

put money in all these new go go things that bankers are involved in these days and so orders can't do what they did twenty years ago it has to be tougher it has to be more regular and in fact there should be more disclosure to the public and to the authorities about where a bank has money and where it moves it's money third the red the very regulators who should be on having a few of them not all of them but a few of them are pushing banks into new fields that are very risky bank should not be allowed to own real estate that's a risky feel and should not be doing things that are by nature very very risky and that form of deregulation or to start to come back in a different perspective now from jon hyman vice chairman of merrill lynch capital markets in new york city is a former us comptroller of the currency and chairman of the federal deposit insurance corporation has drama first do you agree that confidence in our financial system is eroding no i don't we've gone through a

period of time in which we've had extraordinary happenings in the banking system the ohio situation recently of a financial corporation of america in california about three four five months ago continental illinois this summer yet the basic stability of the system continues and the public has not run the banking system because they are convinced and i think rightly so of the validity in the protection protection of the deposit insurance activities of both the federal savings along corporation as well as the federal deposit insurance corporation the system isn't no trouble no danger at all the system in the banking sector if you mean by danger is it in danger of collapsing or failing or creating chaos i do not think that that seemed vaguely reality at the present time it's true however that certain institutions banks will not be well run in this new age the one that congressman schumer was talking about the regulation competition again the feds in these failures that we've been discussing

have been up and ford's of interest rate not force of monetary policy but the fault of poor management on the part of individual institutions for one reason or another i did not act couldn't leave in the management of about what about the congressman's point that there should be some re regulation to prevent banks from taking huge risks too many risks well i think we have played a regulation that a bank shouldn't take risks it's it's again it's a forward leaning by risks justices were on i have a routine money on that example i don't think that should be in the real estate business but but the failures of the bank's up until now have come from investments in commercial and industrial properties and ag farm loans and in government securities such really how you manage your risk that's the critical factor in terms of banking not would you invest in that's all part of the management agrees what about his

second point that in europe former bank regulator that the other bank regulators are not doing their job properly politically the author's walking what the world will know i don't i don't again i don't really agree with that i think that the bank regulators considering the resources at their disposal do a pretty good job they can run banks they're not supposed to tell managers what to do their function really is a supervisory function much like a traffic cop and in our system which is so big and there's so many people in the banks not all of whom were brilliant manager is that some make mistakes and of course one of the great problems that we have we still have people in the system who embezzle which is the cause of many of the problems that we we have a major position that for the average person watching this program tonight you might have some money and an urn an average bank or a savings and longer any other planets the constitution has nothing to worry about that is my position and it's proven to be basically crept up until now with the possible

exception of ohio which was a state insurance system and i agree with the congressman i believe that what happened in ohio as the death knell for state insurance system that there will be federally insured in the years to come you're charging them when you enter this or where you come down as between these two on the degree of trouble lithium back and systems and as result of deregulation well i would agree with john that the average depositor and a bank doesn't in one of the us large banks doesn't have to worry about his money now i don't think that means that the banking system is a riskless kind of a proposition the average deposited doesn't have to worry because when the continental illinois started going under the federal government not only guaranteed the depositors of the continental but said it would guarantee all the depositors of all twelve largest banks in this country which is erica like is a commitment of about a trillion dollars now i don't think that commitment is going to have to be called upon on the other hand if you look at

the assets on the liabilities of the banking system you find an enormous credits made two structures that are not necessarily credit worthy structures called nigeria or mexico or brazil or argentina and announced that total all over the world now a trillion dollars for the world's banking system of the world's banking system probably has capital of the world two hundred and fifty three hundred billion dollars so we have we have trillion dollars is a thousand billion dollar billion dollars a great deal of money and we are on this kind of treadmill where we have to keep lending more and more money talese countries or two of these borrowers in order to maintain a b facts are mainly of solvency in order to maintain that the capital of those that huge world over you in a moment of his life on a practical business of confidence in american banks state insurance systems were done away with as mr hyman suggest is going to happen and everybody

is going to be insured federal it would not take care of the problem but it would not in months but for my point is you i agree with the asteroid and i agree with mr hyman that a bank that that ate the positive today does not have to worry i'm worried that five years from now they may have to whether they're in the federal system where the state's us and i'm worried because of the things that does the road and pointed out the huge amounts of assets in foreign countries also worried because the banking system has undergone such a dramatic change that in many ways it was not prepared for bankers never used to have to be involved in this world of global banking of taking higher risks of moving their money in and out so quickly banking was basically a business where the money came in at a certain percentage and it won out in a traditional way hire present and the banker made the spread these days that's not the case and one of the problems we have is that as you make the transition from the old world to the new world banks go under

that when banks go under that's not that's not the end of the world and less people think it is if you're going to deregulate and you're going to introduce a real competition just like among airlines with the possibility that some are going to go under if they know that isn't the reason that the air quality regulations reasonable on the end and that means someone's taking risks that we have to look at this is a river of change going from a protected financial system to one that's changing to serve the consumers what they want in this country competitive rates of interest products and services in that process not all the managers know how to manage the bat and so that will be lost as of institutions is how we manage those institutions which have also its consumer everywhere in other words the us to look more closely now at the banks for the institutions were in prince's money and eight is going to take more responsibility on himself as the ohio bank one when the ohio banks went under i've

seen some of the depositors and they said that said ensured on the door i thought my money was ensured the gentleman on the tape and california said the same thing consumers should be more careful than they were in the past they should look more carefully and furthermore there should be a warning to them if a bank is coming in and saying if you put your money here you're going to get two or three percent more interest then most of the other banks they'll scratch their heads now why is that maybe that bank is putting its money in a playstation three you said no no re regulation need to understand it correctly do you think there are some real regulation is needed some tightening up some partial withdrawn or something is needed what is needed is very difficult to say i think technology has created a reality where we've gotten from the financial calorie to financial star wars in ten years fifteen years because of the computer because of inner because of satellites because of the ability to push a button in hong kong and transferred ten billion dollars in thirty

seconds because everybody's creating new financial instruments which enable people over the world to speculate with each other and to speculate things huge amounts were very very little down payment notices a worldwide this is a worldwide diseases isn't just an american disease now i think we have to take the lead in whatever happens but whatever happens has to happen both domestically and international you heard is true robinson ire earlier of what could happen the very gloomy <unk> know what might be in the minds of some people reacting in a jittery way to lebanon ohio see another ohio or another continental like failure in the banking system in the next year or so and how likely do that in turn is that internet at a real jitters in the flood from the dollar do you think every time you have a new failure jitters increased the people who withdrew their money from the bank in ohio had heard of continental illinois in their confidence soon the system was a

little bit shaken even before ohio happen it is my worry that there will be future failures like the one in ohio like continental illinois in this brave new world of deregulation and unlike in the airline industry or the trucking industry where deregulation occurs we cannot afford those kind of jitters to occur in the banking system because it's the lifeblood of our economy how prolific and other barriers adding to the jitters on a possible flood flying think that there will be continued disappearance of banks and i think the judges will diminish as the public begins to understand that they are protected by deposit insurance goes i think judaism and less and less each time rather than more and more gentle gentle their life that for those of us who know him home

the music of johann sebastian bach today is a big day is the three hundredth anniversary of his work he is now considered one of the greatest composers of all time the back in the seventeen hundred he was known in his hometown of leipzig germany as a church organist are a lot of religious music on the side it was only one hundred years later nearly eighteen hundreds the saint matthew passion the brandenburg concertos and the rest of his music became recognized for its greatness and its durability we mark this anniversary with a profile of one of bach's best known interpreters christopher hogwood a british conductor who's one of the best selling classical recording artists in the us easier for about rose that over fourteen city tour and we met him in the middle of last week we spent some time with the british who had traveled through the midwest performing at the age of forty three hundred is one of britain's most active in popular conductors aside from cancer causing around the world he has released more

than fifty records as both conducted and top secret so there's four of these albums are among the best selling classical records in american public is one of a growing group of musicians the criminal can discern sounds better buttons in movement and i find that if you are al

those drastic thing that i think is more often than not to invalidate what he was saying and inflate a position of the interpreter and to undermine the british created which i think is the substance of that position to encourage the youth orchestra playing music requires the use of instruments in the composition evidence it's called progress and that

was in his mind while writing his instructions were demonstrating their differences between an eighteenth century and the modern one during a live from lincoln center broadcast as you can see from the two incidents if example the eighteenth century flint is a very simplified of that ms wood it has long he only and it plays when it plays indie made it in this they're not in the moments to tweet many many more he's made of metal trays in the same time out to sounding so obviously they can exist side by side and he thinks i'm learning to find a tape recording of bell playing his own music was just what you don't want is because the new twentieth century

enthusiastic historical performance would ever dare to pop one iota from that date in frozen performance that's exactly what that means it was not created for kids to be different every time just played our time nice note from twenty years is a social activity in the interpretation to come up with a set of very much a composite of your own views and opinions that that includes your own interpretation history class the commitment in the blues in the style of the pleasure working with and music to develop then you and i think any any live interpreters performances will move very thing and that's the joy of about so many areas the left to a certain degree of free enterprise on the night he's beaming

tonight the academy of ancient music plays in pasadena california and ends store in saturday in san antonio tonight the concert they recorded in st paul will be aired on more than a hundred public radio stations across the country again the major stories of this day president reagan said in a televised news conference tonight at the prospects looked good for a summit meeting between heldman soviet leader mikhail gorbachev seventeen wife were killed in another twenty two wounded by police in south africa the clash came during a demonstration of some three thousand blocks police climate were defending themselves from rocks the demonstrators say the shootings were unprovoked secretary of state shows among others condemn the firing on the demonstrators in southern lebanon israeli army troops killed twenty one shiite muslim rulers and two members of a cbs news camera

crew and in this country a new flash estimate on the gross national product shows the economy growing at a surprisingly sluggish two point one percent right we'll see tomorrow night and jim were it opened up our newshour is funded by at and t reaching out in new directions the corporation for public broadcasting and the station and other public television stations