>> thank you, guys we'll continue to watch how it 91 years old develops he led a life that most of us probably would have been thank you. that does it for the exchange today impressed to live in 180 years also join tyler and melissa for power lunch which begins now >> put him in the context of other -- he's remembered as a corporate raider put him in the context of that president trump targeting vapping. era, what he meant, where he we'll bring you the latest details, it's been a massive stood and how he was different year for ideas as we face from others of that era. >> you know, i always said the scrutiny just how healthy is the ipo one thing that separates the market amazon, the latest tech target really great in business is the ability -- because there's so many different types of people, we will tell you what that could the ability to take on huge mean for the stocks. risks and sleep at night, and i don't have that. i'm 20 months in debt, i have my eyes open. boone went after companies that >> good after noon, everybody, were four and five times the and welcome to power lunch size of mesa petroleum, his own here, the highs of the recession, you see what's there. company. he had guts for lack of a better

term the dow industrials about a half a% and the nasdaq leading the way in percentage turns up more than he feared nobody, he feared no three quarters of a% courtroom battle >> boeing and apple jumping he was remarkable. nearly 3%. more than that in the case of he could place these big bets. boeing we will have more on those moves this is a story a lot of people later. kelly. >> thank you very much may not know the first bill is the hardest. >> we start with a major announcement from the white a lot of people may not realize, house this afternoon, the fda boone was close to bust over a moving to crack down on e decade ago cigarettes he had lost much money his hedge fund was bleeding cash bad debts, and i can't remember the year, but he went all in on >> the president called reporters into the oval office a natural gas debt for a meeting, in order to lay i think it was the year 2000 or out his administration's plan. 2001 every time he had, which wasn't much at the time, on the table and he turned it with like the president emphasized just $100,000 into a billion in two how quickly this trend has years, because he kept getting arisen and the danger it poses it right for american children. here's what he said. he was almost -- he had the guts >> vapping has become a very big to place that bet. business as i understand it, he was a tighten, in business. like a giant business in a very short period of time he feared nothing, and you know,

we can't have our he led an amazing life, i hate that he passed away, he did so youth be so affected >> the fda says they'll be much in business rolling out the details of this plan, and all the specifics of it was truly remarkable. i'm going to miss him personally, and the american oil its implementation in the and gas industry will also miss future a senior administration official him. >> thank you very much for your tells me that the idea is to remove an fda waiver that was recollections that are both granted back during the obama personal and professional. we appreciate it administration talk to you soon and extended under president >> we're just showing clips of trump initially that allows boone pickens on sidewalk box. we want to go to becky quick who these flavored products on to the market in the first place, now that will be rescinded and joins us your thoughts at this time those flavored cigarettes products are being targeted. >> you all have summed it up the administration fears they're beautifully. the thing about boone, he had so many different careers and so going to be -- the idea you want many different facets of business he's involved in. to remove products, it could be not only that, he was just a especially appealing to children at the same time allowing some huge character somebody who loves what he did of these vapping products on the he was involved in business market for adults who are trying to cut back on their cigarette every day because that's what he lived and breathed

use and using this as a stepping he enjoyed life and had fun with stone in order to cut back on smoking. there is a public health benefit it, what brian said i can echo to some of these products much too, i spent quite a bit of time particularly the tobacco with boone and traffic to china, with he flavored ones. this may be super appealing to and his then wife madeleine children >> this seems like a difficult situation, in that part of this pickens, watching boone in is just the enforcement side of it, in terms of selling the action, he lived and breathed product to children. this stuff everything he did through the course of the day was related to the business but more importantly related to not just marketing products that appeal to children that piece of the puzzle, there a huge desire to learn and know more that's why he had so many needs to be enforcement on that different careers, starting out level. which is out of the per view of in going to corporate raidering, going through oil, going through the fda specifically >> they're going to go after some of that marketing as well wind and natural gas they're going to be monitoring huge evolutions for a man who that, and they're going to be monitoring the sales, they're was well on in the decades when tracking all of the usage data he started going through some of out there. these things a lot of people learned to see where the trend lines are. they say this alarming spike something, and they don't learn they've seen in children having anything new, boone was not one of those people. access to this the idea originally was that you boone was con stan thely curious, constantly easy to would allow some of these on to learn, that's why he worked so the market to help adults wean much, he got to learn so much themselves off of cigarettes all the time with the idea being it wouldn't you may remember brian mentioned

be something the children have access to. his first book, his first unfortunately, that's really not billion was the toughest what's happening, and it all at that point he had peak oil comes from the backdrop of was something that was going to reporting a number of deaths now related to what some medical happen he changed his mind on all of officials believe to be vapping that, when technology changed. he wasn't someone who was afraid related incidents. to change his mind when the >> is it juul that has had its facts changed, and he wasn't wrist slapped for advertising someone who was afraid to admit when he was wrong. claims that the fda sees as he bet big, but he lost big. overly suggesting that their he took all of it with relish. product is safer than consumer tobacco cigarettes and he's a figure in the business community in dallas >> yeah, that's the question too. i've gone to his 80th birthday here you have a number of officials from the trump administration party about 11 years ago, and it was -- everyone who's anyone in who have gone to work for that dallas is out there to celebrate. company. we'll see if that lobbying same thing happened in his 90th muscle or consulting muscle if birthday he's just someone who -- even you will can help this company though he played hard games and hardball with some of these forestahl some of this, or if issues, he was still first and juul is in a better position than some of its competitors foremost a very personable because of that tobacco flavored likeable character exempting they're proposing here, which is that juul would and i think he'll be remembered

for his curiosity, his ability be able to continue to market to change and to admit when he that that may be an area where juul may have a leg up on them. was was wrong. >> i think tyler said it very well, when you said boone lived >> ayman javers, thank you a great american life, not only our next guest could include was he a trailblazer in thd buo a ban on menthol cigarettes as well extremely generous, he's given more than a billion dollars over his lifetime to charitable >> i guess you think it's a slippery slope organizations, oklahoma state >> it's a hard issue, because university, his alma matter. it's super complicated one of the things that some in he was as you know, an avid fan. public health would argue is why would you ban flavors of e if he couldn't go to one, he cigarettes when you leave the would tweet about it, and how one flavor of cigarettes that regretful he was missing it. are allowed menthol flavors in >> that was football let the baseball team, i think golf, all kinds of things, he the internet was a huge booster of the they make it easier to consume, school and that is a public health negative if you're going to open the opportunity to do something on and really embraced it, created flavors, i would think we should types of philanthropy for it all be watching menthol too. cigarettes as well >> any ban of any flavors for

either vapping products or >> kind of pushing new envelopes cigarettes would invite too. >> thank you for calling in and lawsuits >> yeah, and the thing that's wlle ckig aerhoughts today. >>e' bba rhtft this interesting. ayman was talking about the court case, where some of the with pressure rising, and racing. public help has not delayed those flavors for e cigarettes this is also mia's pulse. that her doctor keeps in check, i found that the judge's opinion in that case was super so she can find balance. interesting, because he was passionate about protecting this is mia's pulse, kids the idea that a court would not and now it's more stable than ever. have the politics that are impacting decisions now, this this is what medicare from blue cross blue shield does for mia. sort of protecting kids from tobacco products, from nicotine and with over 80 years of healthcare expertise, products, which is driving imagine what we can do for you. everything that's happening in the regulatory and legislative this is the benefit of blue. bodies, the idea that the court would be some group that wouldn't be thinking about that to me misses the point of what's happening. >> you know, stephanie, we know the uptake of e cigarettes has been quite rapid, what do we really know about the long term safety of these products

vis-a-vis the long term safety of tobacco maybe they're going to be safer than tobacco >> we actually don't really know the real details around, are there a bunch of kids who otherwise would not have touched you should be mad they gave this guy a promotion. cigarette cigarettes many have said e cigarettes without these behavioral issues you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. are less harmful we don't know that, and there's but you're not mad, no good evidence that flavors drive the use of these products. because you have e*trade, who's tech makes life easier by automatically adding and other things about them, such as their cool and design and hype around them technical patterns on chartstt they mean. and really interesting study don't get mad. from 2015 found that the only get e*trade's simplified technical analysis. flavors you said influence their decision to e cigarettes, were liberty mutual customizes your car insurance, hmm. exactly. tobacco flavor which will be on the market still

and single malt scorch, which sounds disgusting. but it's probably kids trying to so you only pay that's your reflection.t againu emulate adults only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪ >> thank you, we appreciate it through the at&t network, edge-to-edge intelligence >> a 35% stake in juul gives you the power to see every corner of your growing business. for more on what this could mean for e stock. from managing inventory... to detecting and preventing threats... great to have you with us. can you think of a time where this has been sort of parallel is this sort of a big moment is to scaling up your production. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. this the warning label for instance on packs of cigarettes? >> i've been covering tobacco space close to 20 years. i remember when i first started covering it, they were creating four times ebitda. and there were lawsuits out there that were multiples of the entire industry. what we've seen and observed is the resiliency of the stocks

every time a litigation came out back then, the stocks would drop, and they would recover, because at the end of the day, the cashflow was there, the welcome back, everyone, i'm dividend was getting paid and sue herera, here's your cnbc the earnings were still growing. news update at this hour when you think about what's going on now, the dividend yield family members and first responders gathered to remember spread to the ten year has never loved ones lost in the september been wider if you really think about that, 11th attack 18 years ago the announcement that they're readers at the ceremony recited having right now, are not going the names of those who died. to have an impact on the differ authorities in tallahassee dends at all florida say a suspect is in when you think about why custody accused of stabbing five investors buy these stocks, it's people in a building supply really for that yield. and that is still going to be very much in tact. company. a lot of the victims are in and i expect them to deliver on critical condition on a lighter note, if you are their earnings guidance the rest hoping to ride the cable cars in of the year. >> we're going to have to leave san francisco this coming weekend, you're out of luck. the iconic symbols of the city it there. will stop running for ten days >> it's a tale of two markets. san francisco's municipal transportation agency says it

peloton picking up speed needs to rehabilitate the is the ad field market hot or gearboxes that power the cable not, we're going to talk about car system and a big upset at the that straight ahead, and also, tech under fire. basketball world cup in china. france defeating the u.s. 89-79 cnbc ramping up its investigation into amazon. in a quarterfinal matchup. the world's largest retailer using its power to squeeze out this means that the americans business have failed to medal at a major international tournament since the first time in 2002 you are up to date back to you. >> i know nothing about sports, but i even gasped when you read that story >> first time since 2002, it's amazing. >> thank you, sue. the dow is on pace for its first six-day win streak the nasdaq is higher by 3/4 of a% take a look at small caps. take a look at the streak. it's up 4.2% so far this week. it's exited correction territory. the oil markets closing for

the day. hey, eric. >> look at that 3% move right there. crude heading for its first day in almost a month. despite all the red behind me, screwed is rallying, due to those geo political tensions in the middle east and what it could mean for supplies. the drop today, it's the only it's unclear whether iran would agree to talk to the white house. back in july the country's oil minister told cnbc they were not ready to ingauge in talks with the u.s. until talks were completely listed. >> reportingly flashing its ipo valuation. peloton is picking up speed as it hits the road is the ipo market hot or not here's bob de sani with a closer look

>> it's doing fine right now, despite some disappointment. it's been a relatively strong year for ipo's 107 so far big winners include 480% zoom video has been good they helped the renaissance capitalize it's a basket of the last 50 or so ipo's gain over 30% this year there have been some disappointments about them slack is trading below its direct listing prices. it dropped on slower growth of people expected at its first earnings report. slower growth, that's a problem whether it's an ipo or not real reel is below its ipo price. the biggest share 28% below its ipo letdown even more. it's a busy week for ipo's peloton announcing more than a half dozen are coming this week.

an oil tycoon for the ages has died it's been confirmed by his website security firm cloud player you do to price thursday. offi office he was 91. cloud player by the way, just >> i don't consider myself a raised their ipo's today the bottom line, it's a good work aholik, i love to work. year for overall returns for >> he was known as t. boone ipo's, it's not a record year. pickens, the corporate raider this is a possibility. from amarillo texas. >> to friends he was just boone, 43 billion rates so far this year to everyone, he was a master of all of the $100 billion was reinvention. born in oklahoma, in 1928, todd raised it doesn't look like it's going to get there, it's still a boone pickens was a businessman pretty strong year overall back to you. from the start >> when i was 12, i got a newspaper job. i always had money after that in my pocket. >> brad mcmillan is cio with and it was a good feeling. commonwealth financial network >> he graduated from oklahoma and kirk is president and cio state university with a degree with wells fargo assets in geology he went to work for phillips management let me start with you, with the petroleum. the corporate life was not for him. exception of those notable items that bob pointed out before long he started his own uber, lyft, slack and a couple company, mesa petroleum with others, the market seems to be

just $2500 healthy. what does that tell you about the economic state in the country or the market state in pickens spent years collecting the country. valuable assets, he took mesa is it as important to tell tale public in 1963, quickly realized as it once was in. >> i think it's important, but i what the power of stock can do turning from geology to don't think it's the bellwether corporate finance. that it used to be pickens became one of the first the private markets, and the so called corporate raiders. early stage investors, i would he unsuccessfully launched argue a lot of the value takeover bids for gulf oil, creation has happened before the phillips, petroleum and unical ipo comes and the ipo is more of a liquidity event. covering a playbook that would the market has been very good this year, especially in the technology and software space be found by others where a lot of these companies pressure to sell itself become very rich in the process are in -- playing in i think it makes sense that the market is doing well, it's important, but not the bellwether it used to be >> it would be foolish to tell >> brad, is there any concern you we lost and oil made $580. that -- the fact that many >> mr. pickens was also an early companies have come to market this year, would suggest that advocate for shareholder rights. make the market is peaking >> now, remember the stockholder >> i think that's getting close to true. you look at it from the sales owns the company standpoint, the company that >> that formed a new generation wants to go public, wants to of shareholder activists

take their stock to market theyen watt to get the highest in 1997, at the age of 68, he price they can they want to sell at the point started bt capital where the market is just hitting one of the first energy focused good conditions as it can get. you see all of these companies hedge funds. coming to that same conclusion, a huge bet on natural gas in the that suggests a lot of people in year 2000 proved precious. the various industries think set off a run to a billion this may be as good as it gets dollar fortune >> why do you think the s&p 500 in july 2008 he selfunded is going to close out above the making america energy independent. >> we haven't turn a thing to lower our dependency on foreign oil. >> the pickens plan never 3500 >> we look at consumer spending. reached the scale he wanted. we still have some room to run he says that instrumental in here creating a line of gas powered we're getting close to the end >> it's a pretty powerful vehicles and a company called rotation, kirk clean energy fuel. at least in the last couple days >> pickens plan, booya at least for the past couple days, we've seen a major pickup >> he donated $500 million to when itp coulds to financials, which is around area you like. his alma matter, the football more than 5% this week, small team plays in boone pickens stadium. his greatest love was the 65,000 caps, which you also like are up 4% this week acre ranch he owned in the texas do you think this is a lasting trend here or is this sort of a panhandle. even bought and moved his

childhood home from oklahoma on debt cap down? >> i think it's a mixture, to the ranch started to drill a new oil well what's going on is a rotation, what's happening is the rotation there in 2018. >> i always say i'll retire in a box. is the way i'll go out, feet of large fang names. i think it's a mixed message first. >> a lasting memorial perhaps to in some ways it's good for the a full life lived. market you wonder because of the large capitalization that they're selling off in the smaller value >> what an american life it was, ones are coming up that was brian sullivan there will that balance it out reporting. so i think we have to see. we're trying to reach out to brian to see if he can join us >> the president resumed his by phone full frontal assault on the fed pickens was a legendary corporate raider, he wrote the today characterizing the board playbook in many ways, he was maybe not the first, he was one of governors of the most aggressive of the a bunch of bone heads for not era of the 1990s lowering rates >> you always wanted to hear even to zero what boone pickens had to say what do you think about that, is that called for? about where oil was going, where the industry was going he called but he also made the point, which i think a lot of people it like he saw it. we're going to miss that agree with, isn't this a good time for the federal government to potentially refinance a fair >> the emphasis on shareholder amount of its get, and maybe toy with the idea of having longer rights, just when we have the term bonds than 30 year bonds business roundtable, renewed the because rates are so favorable

discussion about what should be >> well, it looks like -- if you appropriate for this day and age. look at the fed funds, the how many different eras he december 11th, something like started or signified is extraordinary. >> his backing of clean energy 159 implying to 25 basis points. i think we're going to get some later in his life, natural gas, reduction on the short end some people would criticize that was a self-serving move on his to your point, it's a great time part the truth of the matter was, he to defeat our national debt. i wonder if there are any more was a pioneer in pushing the use fiscal conservatives in of natural gas fueled vehicles washington given all the debt we have out there, i think it behooves us to and had some success there as brian pointed out. maybe not to the scale he immunize the debt. we are in a camp that we should expected he will be sorely missed maybe most particularly at be funding our long term oklahoma state university where deficit. >> brad mcmillan he did as brian said endow kirk hard man, thank you very much >> thank you many -- we have brian? nearly 3,000 people lost we have brian on the line? >> yeah. their lives september 11th >> how are you we share the news which i've hundreds of them worked for cantor fitzgerald on the 18th just received. boone pickens, a gentleman you anniversary of the attack. spent a fair amount of time with kantor raising money to help the has passed away? victim's families and a number >> your thoughts >> yeah, tough day for the pickens family of charities kate rogers is live on the trading floor right now.

>> that's right, cantor suffered a huge loss that day, they remembered the lives lost and do some good. >> i spent a lot of time with fund-raise for their own relief boone, and i've been to his fund as well as 150 other ranch, he's a far better hunter than i am. charities. the cause is very personal he's a guy that i think there's >> we've decided on this day, this most difficult day we would no second act in american lives turn it into something that he's disproved by boone beautiful. all these people behind us, i think he transformed himself they've all agreed to wave their he was talking about shareholder days pay today we've asked all our clients to rights, he transformed himself do as much giz as possible from boeing a corporate raider we don't give away profit. every dollar of revenue, every in the '70s and '80s dollar of business we give it away to a guy that was pushing for >> now, cantor does have help energy independence. and you don't remember he had a from the ambassador. huge window planned. don't forget about boone's wind we saw supermodel cindy crawford mills. he was trying to make texas what he called the saudi arabia of this morning president bill clinton stopped by, tony blair, also made an wind and boone was friends. he treated me like a family appearance since they've been doing this since 2002, more than member and it's a tough day. $150 million have been raised, i saw him actually, i didn't go on air with this, i took the including $12 million last year,

system down, and i went by his and $5 million of that went to office, and i chatted with him hurricane maria relief and he was not doing probably t. back over to you >> kate, how did they do taking those trades >> everyone we saw said, i don't quite know what i'm doing, i'm having a lot of fun, i'm here to do some good, raise some money i love cindy crawford, she said, that was really easy, i don't know what the big deal is, over all the energy has been great, a very positive day. >> thank you so much >> kate rogers up next. amazon under fire, the sec ramping up its antitrust investigations we'll bring you e thlatest details. power lunch after this

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welcome back, we have a news alert out of california. deird deirdre? >> melissa, the so-called gate economy bell has just passed in the california assembly. it's largely a formality

expected it's the last step before it goes to gavin newsom's desk. where he's expected to sign it into law all day we've been tracking the implications for uber and lyft the stocks have been up today. there are plenty of questions as to the implementation of this and whether those two companies can carve out an exemption earlier this morning, gavin newsom was quoted as saying he will continue to work for them this bill, when it goes into effect uber and lyft are included in it it would increase costs 25 to 30%. >> a huge deal thanks very much on to another headache in silicon valley the ftc ramping up its investigation into amazon. reportedly interviewing smaller merchants to sell products on the site about amazon practices.

kevin is co chair of the antitrust group. and a former director of the competition. welcome. >> thank you >> how do you expect this amazon investigation -- where do you expect it to lead, what are they looking for? >> it appears to be all the hallmarks, it's very broad investigation. typically the government gets involved in certain things, because people come in and complain by contrast here, the ftc seems to be proactive, they're reaching out to smaller retailers and asking the kind of questions that you ask when you really intend an investigation to go forward. which is not just about the acts that occurred. because the antitrust law, this area of the law. you first have to show the company has monopoly power or -- >> you think -- this is going after -- to try to prove that they are a monopoly in this space. or they're anti-competitive? or doing both? >> they're starting at the first

building block, which is what you do when you have a major investigation. they seem to be after these smaller retailers. how much of your business has to be on amazon what other choices do you have that's the way it's showing the market of monopoly power >> among the questions there, 100% of revenues you get from amazon there has to be a component of amazon using its power to punish those who don't put the business on amazon. they choose to put it on -- there has to be some sort of -- i don't know, intent >> yeah, misbehavior, right? >> what is the misbehavior that is being investigated. >> it's never been enough to show that somebody big or price gouging is not -- you have to show exclusionary conduct. that can be subtle the question you ask is, is the company engaging in it, because they're trying to improve their own product or are they doing it

to cycle a competitive the example you just gave us, where they're punishing merchants, it's pretty hard to see why that's just viable conduct. that sounds more like they're trying to freak out the other retailers. >> they have access to an incredible amount of data. they know what sells, which companies are selling, and what they are selling and then i gather, amazon can then come in with its own version of a product and feature that on a search result in front of another company's product >> is that one of the things that's being investigated? >> it should be, that does fall in the category of being competitive, you use someone else's project as a come on, you get the consumer to come on to the site you use the data you've gotten, and possibly price that slightly below the other. you put that on the same screen, and in an screextreme case, aman

copies the product to make it a private label product. >> how longer we talking about in terms of the investigation? is this going to take years? >> that's another very good question typically it's wrong, you have to prove all these different things and they're going to have all kinds of arguments the microsoft case took five six years, that was a while ago. that was finding what the trial is, i think there's so much pressure here, and so many different interest groups they're going to have to move this more quickly, and we don't yet know, i don't know of a state investigation into amazon. but when the state attorney general gets involved and some can argue, why are they doing it i tell you one byproduct when they do that, that puts the heat on the feds. they don't want to see this get out in front of them on a national problem >> appreciate it thank you. the trump administration

calling to privatize fannie mae and freddie mac, when we return, we'll sit wndo with the former head what does that mean for the housing market more power lunch after this. at fidelity, we believe your money should always be working harder. that's why, your cash automatically goes into a money market fund when you open a new account.

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under way. major players went in front of a banking committee this week. di nachlt a olick has the next steps. diana? >> reporter: that's right. negotiations are now under way between fannie and freddie's to allow the two to retain earnings and release them from conservatorsh conservatorship. secretary mnuchin said to do that will require some kind of payment from fannie and freddie. it takes all but $3 billion from each's profit. >> i think they need a lot of capital. let me just say. you know, we're looking at $3 billion and each is irresponsible in the terms of capital and there's no way that they could operate if they couldn't draw on the treasury lines which, in effect, is backstop today. >> reporter: giving fannie and

freddie back secretary mnuchin suggested they need $100 billion in reserves. how do you get there that's between secretary mnuchin and fhfa director calabria. >> thank you very much and for more now on what's next for fannie and freddie, current chairman and ceo of eagle rock capital management welcome back. >> thank you. >> talked to you a lot about bonds and distressed debt in puerto rico. now, let's talk housing finance, which you have a long history with how much capital do these two need and could the private market supply it >> the amount of capital they need is the subject of current discussion, as you heard the secretary testify to yesterday he threw out the number hf 100 billion. and that number is the number that generally is thrown around. i've heard larger numbers as

well some people argue for smaller numbers. to some extent, it depends on what their book of business looks like going forward and part of the treasury plan is to open up competition in the private sector for fannie and freddie. $100 billion sounds like a good enough number to play with. >> this would be the kind of thing a company like yours might get involved in, right >> companies like mine and many others, current investors as well as new investors. >> so, fannie and freddie have been a political football for as long as i can remember people who love them, on one side of the aisle. there are people who don't like them, and the government involvement in what is a gnarly area if you look what they proposed last week and testified to yesterday, directionally speaking, taking away the politics of it, is it a good idea to get the government less involved, to end mortgage finance, to end the conservatorship and to have it

more of a public -- i mean, a private, private company public markets >> yeah. i think it is. and i think most of the folks in the markets think this is a good time and i give the trump administration a good bit of credit for stepping forward with this plan at this time this obviously has been the third rail of politics over time democrats and republicans have taken both sides of the issue, depending what's convenient for them it would be unfortunate if this became overly politicized. i think everyone would concede that the conservatorship was supposed to be temporary in nature it wasn't supposed to be permanent. that's what's happened to the existing stakeholders in fannie and freddie is unfair and ought to be remedied and as currently constituted, these things are very large risk to the shareholders and we're in a time right now where private capital is available and ready to jump in, and the government ought to take advantage of that before we run into a recession or have another housing downturn.

>> what does that industry look like if there's competition that's brought in at that point? companies like yours, but, you know, the big financial services companies, do they get in as well >> as tyler mentioned i was chairman and ceo of ambak acres very large guarantor of mortgages and so on. there's a robust world out there of players who are prepared to back these kinds of securities and, you know, ginnie mae is structured in that way and so they want them to look more like ginnie mae and ultimate government backstop for which the government would get paid. >> very quickly, it would be wrong if we didn't mention court ruling that said fhfa and the --

was unconstitutional is this an opportunity to make progress >> i'm glad you mentioned that, tyler. it's a case that brings into play chpa issues where the government and trump administration have certain views about whether or not that's constitutional. government has been on both sides of the issue here and director calabria is very much like the head of the cfpb. initially the government, the trump administration took the position that it wasn't constitutional and then they switched positions on that but the fifth circuit ruled that because calabria is a point of subject for clause removal that it's unconstitutional. they also said that the sweep of all of the net worth of fannie and freddie, which was implemented pursuant to a so-called third amendment is also illegal, not in compliance of a bill called hea and it's

unlawful and needs to be remedied. >> thank you very much appreciate it. >> thank you. coming up, new developments on a major player in the opioid crisis be back after this to managing your fleet... to collaborating remotely with your teams. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. as a principal i can tell you this. when one student gets left behind, we all get left behind.

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liberty mutual customizes your car insurance, hmm. exactly. so you only pay for what you need. nice. but, uh... what's up with that's your reflection.imu only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪ new developments on a major player in the opioid crisis. meg is here. >> purdue has reached a settlement with the thousands of cities and counties that sued

them over the opioid crisis, six weeks ahead of the start of the first trial and there's been a debate over whether there would be an actual settlement reached and states are not necessarily on board with this where some states might be and might share in whatever settlement is reached here, other states are probably going to continue with their own litigation so this doesn't necessarily wrap everything up for purdue or the satler family. it does seem like it's about the same numbers we've already seen reporting about 10 to $12 billion in valuation, $3 billion which would come from the family that's the sticking point, both of those things. the state says it's not worth $10 to $12 billion and they want more than $3 billion guaranteed from the satler family it's interesting to watch this proceed and some kind of settlement might be reached. >> does that mean each get more of that pot? if it goes that way. >> litigation will continue. >> thank you, and thank you for watching power lunch. closing bell starts right

now. the president saying they will ban the sale of flavored e-cigarettes despite that, the stock is still up with 59 minutes left in trade. >> i'm courtney reagan are in today for sara eisen trade optimism tariff sensitive stocks like apple continue to rally. yields bounce as they called the fed, quote, bone heads, saying rates should be taken down to zero or even