payment. well on going to washington d.c. and here's what's coming up tonight on the big picture big brother is not going anywhere anytime soon i'll explain why congress plans they have all eyes on you and me for a long time and the days of the middle class being screwed by wall street are over of elizabeth warren has a thing to do with democrats are pushing for her nomination as chairwoman of the consumer financial protection bureau which is one big hurdle of leap republicans and the h.b.o. film too big to fail premiered last night so the movie captured the essence of the

financial mess that the banks created in america. you know this congress is back in session this week in the first agenda item for lawmakers is reading the u.s. constitution. overwhelmingly with support from both sides of the aisle voted to pass a four year extension of the patriot act a surveillance monster created by george w. bush after the nine eleven crime and his four more years of phony wiretapping laws and snooping our library records and other added surveillance of the details of everything you do on the web without even the need for any suspicion proof of a crime or a war here's a thought republican rand paul on the floor of the sun it about the patriot act. we do have a right to privacy you have

a right not to have the government reading your piece of bill every month we do have rights and we should protect these but we shouldn't be so fearful that we say well i'm a good person i don't care just look at my records if you do you're setting yourself up for a day. a when there will be a tyranny when there will be a desperate and comes into power in the united states and uses those rules that you said although i don't having to hide what even rand paul and i see i occasionally paul was one of only eight senators who voted no including four democrats three republicans and the independent senator bernie sanders the house is expected to pass their version of the bill this week elmina patriot act will be put into law through twenty fifteen fifteen years of big brother counter-terrorism in response to nine eleven fifteen years so as our nation just throw in the towel when it comes to defending civil liberties in this age of terrorism here to talk about the issue is ryan riley order of talking points memo and welcome i think you have me what's so bad first of all about the patriot act which is the stablish the the basis here

but i think there are certain provisions certainly the most extreme provisions that were discussed to one under the amendment that leahy senator leahy and as well as senator paul proposed to eliminate some of the most controversial proposals where the out of the lone wolf or oppose it which would allow the government to surveil non citizens without any sort of secret surveillance essentially it would also there is also provisions how they have to exist and business records with a court order and. an additional provisions that are controversial. what is congress doing this week and what parts of the patriot act or the extent of the extending the whole thing or just pee scherzo but it's the first three that if three parts that are set to expire this week and it's interesting because it's something that you wouldn't normally see you rand paul dining out he cited someone like senator leahy. bernie sanders an agreement on something so it's brought

together sort of a libertarian strain as well as sort of more of the liberal strain of on the democratic side especially in the tea party caucus i think in the house there's been a lot of debate over this in fact they when they tried. expedite the process and back in february it was sort of an embarrassment for house republicans right because they thought they had the votes in order to service this process up but they were came off some short are they going to do it again or they can slow it up again i think it is specially with the looming deadline of and with obama being overseas they really need to pass this quickly just just tonight they close the ability to add amendments to this so the center. is so there's not an ability to add any more of them and so it's going to be expedited because they have to once the bill is signed get it overseas because since obama is overseas right now so if if the tea party caucus in the house or for that matter the progressive caucus has no ability to amend this bill and they have any objections to it they think of

they're just going to go along and vote for it it seems like the leadership of both parties wants this to happen it's the outliers it's the progresses of the of the tea partiers as you point out who are saying wait a minute wait a minute yeah well i think one of the interesting things right now is that because the law is sort of step down because we're coming up on an election year there's this mentality that if anything were ever to happen it's immediately going to be if the patriot act were to say be reformed or parts and provisions were to expire that anything that happened would immediately blamed on not having sort of acts of terrorism two weeks later it would in congress and surely and so they'll run their commercials against them and they came across exactly so there's a lot of where do you think about batting had to be you know i thought it was particularly interesting pat leahy the senator from vermont who used to be chairman of the judiciary committee and is now the ranking member of the circuit you know or no he still isn't sure yeah yeah i keep forgetting to repeat the democrats still control the sun. that pat leahy was the guy that the original patriot act had to go

through and then it had to go to tom daschle on who was the majority leader of the floor of the senate in order to be brought up for a vote and those two guys were the two obstacles to the original patriot act what it was this giant piece of legislation was trotted out just days after. still people scratching their heads going to where the hell did that come from but in any case they both expressed reservations at the time they both said you know we may not do this and they were the only two members of congress that got anthrax in the mail and a week later at the patriot act. do you find it interesting that in the in the wake of the anthrax pat leahy was ok ok ok let's do this and now he's taking a more deliberative approach no no no he says he's expressed some reservations about it only you know like he said now in support of an amendment but i think the i mean these were originally provisions that we're talking about were originally status on sunset a while back but they were extended on a temporary basis for like fifteen months right and even this new proposal that paul and and make he came up with would still have been active for

a long time before they would eventually sunset so this i mean this is i guess it's you know it's one of those temporary government programs that you know never seem to seem to seem to end well it's like you know the pentagon by recording a constitution every two years it has to be renewed basically it's you know the existence of the whole military and they've been doing that pretty well for a long time. has only four democrats voted against a hot how did this go from. well actually when it was the patriot act ever a partisan issue or was it always everybody wanted to say you know we're for national security we're going whoa you know almost like with the cold war. has it always been well i don't know about that i mean it's certainly right after any big name alone the patriot act it was sort of like it would have been tough to justify going to because it is. but in subsequent years you know the inspector general's office that the justice department has revealed

a number of abuses and it's only thanks to that oversight that there have been some of the reports that come out and you know some of those problems have been taken care of and you know but this is something again that has the backing of the f.b.i. director of the of the attorney general so it's very tough for. and to go up against is the intelligent have as the oversight provisions been expanded or are strengthened at all since that's one of the it was out there trying to do at the end but there is only right and i think that there have been some changes that it gets better oversight of the justice department of those provisions but i think bill a human it would have strengthened them and that's something that was coming up remarkable ryan thanks so much for being with us thanks for having me i appreciate your reporting thank you considering that osama bin laden's main goal was to force america to fundamentally change who we are and sacrifice our ideals with another extension of the patriot act it looks to me like congress is heading for excuse me handing him a posthumous victory in a ben franklin said those who is sacrifice their liberty for

a little temporary some first security deserve neither of the variations they quote some of the insert the word temporary that's frankly we're going right now we have frightened politicians who have basically told the corners of the constitution they've taken pieces out of it. with the patriot act and other pieces of legislation over the years and now they're talking about actually ripping the thing up or at least pieces of certainly the fourth amendment which is actually not part of the original document in which you get the point so. the problem here as ryan pointed out but i think it's really worth emphasizing you know when we when we look at you know how did we end up with with fifteen thousand nuclear missiles enough to destroy the earth four times over during the cold war it wasn't because we needed them it was because everybody in congress was afraid to vote in a way that could be used against them in the next election as oh well he didn't vote for national security or she didn't vote to you know keep up with the soviets

or whatever and so it just became this self-perpetuating machine. and you know much like the cold war and the and the general insanity of it we're seeing the same thing with this giant national security state and the security theater arranging right down to you know the church corner the scanners in the airports and the and the t.s.a. gropings i mean it's just which are not done in europe and it's it's just frankly i think should concern all americans as as at as an essential sort against our liberties. crazy alert out of the woods yet a lot of us will like p.r. brows after may twenty first came and went without a rapture it's like here at camp scenes doomsday prophecy was wrong after all

surprise surprise that is unless something did happen and we just didn't know about it as being told the b.b.c. take a look. since it is still the same judgment call it your world it's no longer judgement were it was not made for anyone else i think he's grasping for straws at this point i don't know about you but camping is a lost a lot of his credibility if there is only someone new who could step up and carry the apocalypse mantle to warn us all about the gates of hell open on planet earth. it will take profound courage to stand in israel because i believe the very gates of hell had just been opened against them but the very gates of heaven are about to open up the other way. it looks like we found camping two point zero zero welcoming the well done how do we prepare for the gates of hell and heaven in opening up

things first of all who controls this is something that my staff has let family members their backpacks you open up the backpacks and inside the backpacks is every things you need in case the world goes to heck in a handbasket do the easy stuff. because when the four horsemen of the apocalypse ride roughshod over the world i'll be safe with your little red backpack of canned food anybody else filled out the back is going to become a televangelist when he leaves fox. coming up with the story of how wall street screwed the people main street. i'll break down too big to fail the h.b.o. film based on sorkin's best selling novel. for.

you know sometimes you see the story and the scene so. you think you understand it and then you glimpse something else you hear see some other part of it and realized everything you thought you knew you don't i'm sorry this is the. one name that's been tossed around a lot i'm capitol hill this week is elizabeth warren the former harvard law professor a lifelong advocate for protecting the middle class as

a lot of supporters on the hill who want to see her appointed to be the first chairwoman of the consumer financial protection bureau a panel created in the wall street reform bill to make sure customers aren't getting screwed by their banks again or only currently sir warren currently serves as special advisor to the bureau while full time chairperson assaut democratic lawmakers and several consumer advocacy groups want to see warren filled with top post and are calling on president obama to make it happen however there is one giant hurdle in the way of war nomination the republican party they just don't dislike war and they hate the idea of a consumer financial protection bureau or any real regulation of banks theirs and have vowed not to approve any nominee for the job forty four republican senators enough to hold a filibuster have vowed to oppose any nominee for the new consumer financial protection bureau but president obama can get around this right wing opposition by

appointing warren during a congressional recess a move that even the oklahoma bankers association a one time flow of warrants is pushing the president to do they wrote a letter to president obama saying in light of the actions taken by the forty four senators who stated they will oppose any nominee to serve as director of the new bureau unless certain changes are made the bureau's structure and. urge you to wait no longer and give alyssa both a recess appointment before the twenty first july july twenty first transfer date so will the president listen to the voices of both the left and the right approach appoint a true advocate for working families to head up the agency in charge of looking out for working families here to offer their takes on this issue richard asco former wall street executive and a contributor to the huffington post alter net and the campaign for america's future and bart naylor financial policy analyst and expert explicitly expert and analyst for public citizen welcome gentlemen to you both. great to see. you are

richard i gardened you are part of i'm sorry thank you thank you very much for. first of all how much how much powers this agency have with the agency does enjoy the potential for arresting the kind of problems that got us into the inflation of the housing bubble but whose rupture caused the crash and the thrashing of the global economy that we're still recovering from and as we speak so and richard to what extent do you believe that battle that it will actually work that you know is the mechanism there and and i've heard talk that there are republicans in congress are talking about defunding is that a possibility well you know you could hear republicans talk this is the most powerful super agency ever created actually it was watered down quite a bit last year in the bank reform negotiations and it's a bureau instead of an agency i think i agree with bart it will have a very positive effect mostly the sentinel of fact and then the regulations and

puts into effect but it already has to do are polar sorts of hurdles to enact regulations and so on so they're making it out to be this monstrously powerful organization and it's simply a commonsense group that's been created to make sure that people don't get ripped off and so we're finding out is that ripping people off is part of the business model and has to be protected that's all. people part routine people off as part of the business model real story it's quite chilling that the charge of the b. is true and unfair deceptive and if you say abusive practices that it appears that apparently it's probably franken brad miller would say congressmen who are on the house banking committee but these are central to the value proposition of the banking industry and that's they can't be upset the course publicly but they've marshaled every lobbyist they can find to emasculate the consumer product consumer financial product agency and they are. very worried that this soccer mom from oklahoma who happens to go to harvard law professor will actually do her job as

opposed to the other regulators who apparently have been captured by the banking industry tragically. first of all to what extent could the obama administration prevent that from happening right now well they could some of us believe that the regulators had the power. all along to arrest the kind of practice is that led to the financial catastrophe we're learning from the financial crisis inquiry commission for example who's the luminance report was released in january that there was actual financial literacy by some of the leaders of our of our financial regulatory agencies yet they paid let the banks go from twelve times leverage to thirty five times leverage they didn't allow ever been done since they started thirty five pages here let us they they were celebrating this they were they were part and parcel of the problem and that's a tragedy that will take a long time to recover from it's incredible you had lehman i believe eighteen billion dollars they were borrowing every single night on the overnight richard

congressman mchenry today cues to elizabeth elizabeth warren of why what's going on windows. well you know it's the kind of thuggery we've come to expect and you know he he accused her of lying in two ways one they created the usual phony conservative scandal that doesn't exist by claiming that she lied and didn't tell people she was advise ing of the treasury secretary about consumer financial issues or the attorneys general you know advising the president and the cabinet is or anyone they asked her to advise her job and she never lied about that he also even got so petty as to say that she lied about the scheduling of her testimony which if you read there were reports he couldn't possibly know what conversations she had with his staff about the testimony so he's kind of showed himself to be both you know a bank attack dog and not

a very pleasant human being and in return to you know there is they'll tell this big lie that she's running with some sort of you know super agency and you know it's an ugly little display today so the president has had a year and a half to put somebody in this position has he not done so because the republicans have just said don't even bother with this case the the agency the bureau doesn't stand up until about twenty seconds so he has time he that he is on time to stand this up and he has been very wise to point ms warren as a special adviser to help with the standing up of this bureau there was there was something in the news today in fact it was at the top of dealey coast most a half about half of the morning of a grassroots movement in massachusetts that is kind of spreading across the country to encourage elizabeth warren to run against scott brown for ted kennedy's old son of seat when it comes up next year i think it's actually demonstrates the political tone deafness of chairman patrick mchenry of this committee somehow he's decided

that it's politically expedient to look politically attractive to side with the bankers even though they poll less popularly than a member of congress whereas in fact. as the popular drafting of elizabeth warren to be a united states senator i think he needs to and if you think about it tom it's also kind of a brilliant head fake because basically somebody saying to the republicans ok if you don't give her the job she should have we're going to use her to take out one of your senators right oh i'd be interesting to see how they respond to that and i in fact frankly i think i think she's one of the few people who could actually take out one of her senators a very interesting bar richard thank you both very much for being with there are she back showing those with one is clearly a great candidate for the job but there's a bigger picture here last night h.b.o. aired their new movie too big to fail about the two thousand and eight financial crisis take a look at the trailer. if you want to be one of the take we can do that right now the one thing we don't have is time. we took an immediate

leave to push the team to see just. what works its way used to its treasury people it's into this cold war and the risk managers must control we've got one shot this kind of stuff the c.e.o.'s of every major thing coming your way you directing us to put lead means into bankruptcy but. if you will still cause the next depression he's not going to be he's not threatening the republican presidential nominee is he treats running around with its ear on the storm. people are freaking i think speaks to keep their money. why would you bail out people still. might leave the senate bill so we're going to see. you want to sixty seven dollars and trust us you'll. soon disappear if.

you feel it's going to cost different. he's just scary. this is you know welcome to the brave new world of banking it's really quite extraordinary the two big lessons that i took away from watching too big to fail last night were number one the paulson geithner and bernanke he would not consider the ronald reagan solution to the s. and also s. now banks you know in the us know when reagan deregulated the s n l's and a couple years later they crashed after a whole bunch of people like neil bush made a pile of money. basically. took them over i put a guy named william seaven in charge of the resolution trust corporation that took over basically nationalize the s n l's and over about a twenty year period actually made

a profit selling them back into the private business and the second one is that the banks just took our money and they will not relent at that paid themselves one hundred thirty five billion dollars which is about what we loaned them and you get that at the end of the h.b.o. special is really quite shocking we have seen this movie before william siegmund who died just last year easy he was a one of those good republicans i mean this this guy was a white eisenhower republican ronald reagan brought in to run the s n l's and run the resolution trust corporation that was created to resolve the crisis he was one of the heroes in the story he saw at the great depression because he just died in his eighty's and he saw it in two thousand and eight and he had better the vehicle during the time that he was working in the reagan administration that led to the crash of two thousand and eight as he points out right here. mark it. is almost impossible to believe there were almost

two million sub prime mortgages written in a year and. that means somebody had a probably am. a couple million homes all. of subprime mortgages. so. why did anybody put their money why would anybody knowing that these sub prime means that they are not prime. well that that goes back to something called securitization and something called traunch credit rated securitization. that was invented by. people who. were operating in the dark easy and namely it was invented by many in our group.

so you can start with saying to confuse you call it was used to market the sub prime mortgages was this kind of securitization. and it was invented by bill c. but he knew how to prevent it from going crazy like the banks are stuck in serious . one the credit rating agencies. and i guess you can blame me or blame those of us who did the r.t.c. there was a vital difference we retained the devil asked peace. so we had an interest in seeing the shore work because after all we were the last one on the ladder. see they the government held on to a piece of each tribe and so they didn't go nuts and they didn't let the banks go nuts and you think you know the republicans that the bush administration would look

at what reagan did and said hey you know this might work but it was too close to what sweden did ninety eight when their banks failed and they successfully took them over or what when did with northern rock in and took it over so you know the r.t.c. the resolution trust corporation the seed been invented and ran showed a profit because they did what bush and paulson and geithner and bernanke he would not consider here's we'll see going on this. i think the lesson of that would be very clear. if that industry needs regulating show regulation. does not work. then we have tremendous losses in our shorts but not all of which. because you've invested in a business which is the globe who are part of the name was turned purple so what's happened here is right wing ideology i almost

a libertarian ideology that government should play no role at all in banking allowed the banks toure's in this really started in after two thousand and two thousand and four really up on pick up steam in fact it was in two thousand and four william c. that talks about the same clip were used giving that speech it in grand rapids michigan about how in two thousand and four they went to their regulators in the bush administration and said you know historically we've only been able to land against twelve times one of the caches knows every dollar they have and deposits they could lend out twelve but they said why don't you just let us learn whatever we want. and the bush regulator said for i'm going to do it so they went to eighteen percent and they went to twenty five percent then they went to thirty percent and they finally ended up at thirty five and thirty seven percent thirty seven dollars and they were running for every dollar they had and when those dollars they had vanished they couldn't hold back the loans which is what throws the whole thing up crashed it and then bush and paulson and geithner and bernanke

frankly made it worse because they wouldn't consider what had worked for roosevelt and what had worked for reagan and what did work for so many other countries which is basically just taking over the banks and breaking up i think we need to do that now. it's time for our daily poll your chance to tell us what you think here is that is question is the time for president obama to do a recess appointment of elizabeth warren for consumer protection your choices are yes can't think of any reason not to or no let the republican war on bank customers continue so far one devoted yes you can log on to tom harkin dot com and let us know what you think the poll be open until. after the break our guest will explore why police are so often the bad boys in blue creating a sense of fear and distrust.