coming up this hour on r t morgan stanley in hot water once again this time being sued by the a.c.l.u. for racial discrimination over packaging subprime mortgage loans into its securities confused by all the jargon senior financial writer for the huffington post will join us to help put this lawsuit in layman's terms. for the market for the moment. and while president obama and governor romney prepared for last night's spectacle the green party candidate a woman who's on the ballot in eighty five percent of this country was arrested for trying to join in on the debate so why didn't anyone hear about that story and why

are third party candidates constantly swept to the side i want to point out that i don't believe. i don't believe oh sure are trying to preserve what we're going to try to give birth are all working and there was a little bit of everything in last night's contest laughter name calling and shameless interruption of the two contenders trying to outspend out smart and out talk his opponent ahead we'll ask of the twenty twelve elections is turning into a reality show. it is wednesday october seventeenth five pm in washington d.c. i'm christine for his hour and you're watching our t.v. while we begin this hour with a developing story out of new york the f.b.i. says they've arrested a man on terrorism charges for attempting to blow up the new york federal reserve bank and lower manhattan financial district twenty one year old quazi mohammad.

feast was arrested this morning after the f.b.i. says he attempted to detonate what he believed to be a one thousand pound bomb in front of the bank joint f.b.i. and n.y.p.d. operation flagged the suspect. on the internet three months ago now the defendant faces charges of attempting to use a weapon of mass destruction and attempting to provide material support to al qaeda the criminal complaint filed today in court states the defendant is a bangladeshi national who travel to the united states back in january of this year for the purpose of conducting a terrorist attack on u.s. soil though we should point out that the f.b.i. actually provided the van and the bomb used in this so-called terrorist attack in fact they tweeted about the operation a short time ago it said f.b.i. controlled entire operation to ensure the safety of the public and new yorkers hash tag terrorism hash tag and y.c. hashtag break it so is this a real case of terrorism or yet another case of the f.b.i.

creating a terror suspect we'll keep you updated on this story as more details start to emerge. well if you work in the banking sector there's a good chance these last few months have been pretty good to you even panned it who resigned as the chief as chief executive of citi group is riding high he can rest easy atop a mountain of money wall street journal says he made more than two hundred twenty million dollars over the last five years one of the major booms though is for big banks and it's been a result of what many are calling the new housing boom and desire to correspond to liz wall shows us some of the biggest winners made record profits as a result of this major surge in giving people home loans. oh quarterly earnings from the nation's biggest banks suggest the u.s. housing market is in recovery mode but this latest news isn't resonating with most borrowers take a look at the third quarter profits for the two biggest lenders as you can see wells fargo profited four point nine four billion dollars that's thirty three

percent more than they made in the third quarter of last year j.p. morgan chase made five point seven one billion dollars that is up twenty two percent from last year now with numbers like these you would think that the housing market is back on track right well that is if you're a big bank the obama administration has focused on repairing the housing market as one way to boost the economy the federal reserve for example have purchased much of the remaining mortgage debt on the books the bank books for more than most private investors would pay the banks are profiting from it but they're not passing along the good fortunes of potential borrowers this chart mapped out how this process works so it all begins with the consumer asking for a home loan and if they're improve the lender will issue that mortgage but the mortgage doesn't stay still for law what happens is the bank sells the loans to fannie mae or freddie mac. both government sponsored institutions i buy about ninety percent of home loans in

the u.s. now as you can see these loans get securitized or grouped together and then sold to another bank and often what happens is the original bank will buy back these loans at a much lower interest rate so they end up making a profit but you know who doesn't enjoy a lower interest rate the homeowner which means the big banks cash in while little is done to help the homeowner now interestingly the chart you just saw closely resembles how the banks bought and sold toxic mortgages that led to the financial collapse of two thousand and eight and now these same banks are profiting again at record levels from the economic recovery in washington liz wall our city. so another layer of this financial landscape has to do with mortgage loans and race in america the american civil liberties union says one of the country's biggest investment banks morgan stanley has been violating civil rights laws they've accused morgan stanley of racial discrimination in packaging these risky subprime

mortgage loans into securities and then home is a senior financial writer for the huffington post and joins me now to break this all down hey there bands of the a.c.l.u. claims this is the first case of main street holding wall street accountable but there have been lawsuits from the government and investors is this significant yeah if you do significant i mean it is as the a.c.l.u. says this is the first case where private plaintiffs and this case a group. mostly about african-americans but it goes into troy have have brought a lawsuit a private action against one of the wall street investment banks i mean you know what they're saying that morgan stanley did here is basically pressured new century which was one of the biggest some prime mortgage lenders into. into making loans which really i want to go to reset really bad loans for the borrowers these loans to include a super high interest rates that included. interest rates that were sent to it just

. often these loans were made without any verification of the borrower's income meaning that there was no check to see whether the person could actually repay the loan so this is sort of the predatory aspect of these loans talk about ben i mean the incentives that existed before to make predatory lending a reality i mean i guess i thought a lot of those issues have been cleared up. well you did i mean i think your previous chart showed very well exactly what happens during the securitization process and what that shows is that there's no accountability the institution that makes the loan your local banker your mortgage lender. doesn't hold onto a very very long until the last three wall street then takes it in packages and together the whole bunch of other loans and sell it off to investors and each in each stage those two entities the mortgage lender and the wall street bank make big profits so there's simply wasn't much incentive for them to bother to check to see

who they're making loans to or whether the person could kind of or them and unfortunately i think one of the legacies of the housing crisis is that you know we've seen that minority communities were targeted specifically that's what this case was lost that's why federal lawsuits against bank of america that were settled a lawsuit against. wells fargo that was settled that's what they know what this was widespread yes certainly that african-americans were disproportionately affected here by the subprime mortgage crisis and of course generations of wealth has been lost any idea you know in your research how people start to begin to rebuild this wealth. well i mean it's a great question so i was about october first homeowners help something like six hundred fifty billion dollars in negative equity that means that homeowners six

hundred fifty billion dollars more than their homes are worth. as many as one out of every three loans in the united states is underwater in this way and it's been a it's really been dragged on the economy it's been a drag on the economic recovery it's i think it's going to drag on. president obama who's who's who's been challenged on his economic stewardship and in terms of the very local level in terms of families you know i talk to them all the time i mean they're struggling they don't know whether to spend money on a home repair on a house that they feel like they don't really own. or whether to make that next mortgage payment or maybe somebody walk away. and that the consequences of walking away is bad for everybody hurts that it hurts the neighborhood or it's property values around them. there's i think there's been some really good news lately in the housing market prices are up foreclosures are down somewhat but but make no mistake i mean this is still a serious problem when the really hasn't been addressed yet there has been that

news not just prices are up but new home construction is up and you know what do you think this was seen as very good news i think i read it was up fifteen percent so. shouldn't this be taken as a good nation we start to breathe a sigh of relief here and i think well i mean a qualified. i think after a year or so of people not. being worried whether or not we hit the bottom of folks are seeing saying these is number two by there's an opportunity to respond and so house is an opportunity to to build a new house those are all great things but again there's still a lot of homeowners out there there's communities in florida and nevada in california that are deeply underwater i talked to a woman in arizona recently you twice want to see her home is worth half of what she paid for it. and you know if you look at the lending patterns you can look at who is getting these new loans it is overwhelmingly people with excellent credit

scores banks are scared to when to. borrowers with anything would have creditors anything less than a perk so that means that a lot of the low income people who might be able to make a mortgage payment or don't you know. who would benefit greatly from homeownership you know that avenue is still mostly closed off and i think this is really a comment they've been like by you know all these years of giving loans to people who really across the board couldn't afford them you know these predatory loans that they knew when be able to afford it it really does hurt i think as you say you know the people sort of in the middle here or not they might not have some pervert credit but these are people that you know are moving in the right direction and could make that mortgage payment so it seems to me sort of a trend that really hasn't we haven't come out of that dark hole yet all right let's be clear i mean. people people borrowed money that should never borrowed money and there are loans that were given that should never been given. in there

needed to be a correction it makes perfect sense that in the wake of bad and being should be more stringent. but there's i think there's a big fear that the pendulum has swung too far in the other direction. now that is it's virtually impossible i mean i've talked to people who have excellent company have to be with the best credit imaginable and it's taking them you know ninety days four months to refinance out and are too hard to buy or to get out of a basic simple home loan and i mean this is this again this is while there are some some really positive signs going on right now the housing market i think things probably would be better if lending standards are loosened just a little bit about overcompensating people definitely overcompensating rather for what happened in the past is hurting people as well just real quick then back to this this a.c.l.u. lawsuit a.c.l.u. says it's hope it's hoping that if things go their way that securitization could

end if successful though i mean would ending securitization actually be a good thing for most of main street i think securitization is here to stay what hasn't it already i mean it's practically doesn't have it all anymore is this type of private backed. mortgage bonds that really drove the financial crisis and the subprime bubble. right now as you previously pointed out fannie mae and freddie mac. . pretty much control the entire mortgage market they buyer guarantee nine out of ten home loans made in the united states right now and what they do with those loans securitized them they package them up in mortgage bonds guarantee them they promise to read if there's a fault they promised to to repay the investor that buys them in their profit up the housing market i mean they are pretty much the housing market until somebody comes up with a better idea or a better system i think securitization is here to stay and realistically.

realistically finian for his role in the housing market even though you know they were bailed out banks there's a hundred forty billion dollars i think realistically they're here to stay as well as the government the congress has not shown any real enthusiasm for. figuring out what to do next certainly very interesting what we're seeing happen here just a few years ago once seen as one of the greatest problems in this economic crisis mortgage lending is certainly turning around at least as far as the banks who are giving these loans raking in these big huge profits thanks so much for coming in and breaking it down for us the language sometimes can be a little confusing ben homan senior financial writer for the huffington post thank you. so i had on our team not satisfied with your choices for president or mitt romney and barack obama aren't the only ones running for the position in fact the green party candidate showed up to the debate but she was arrested step we'll speak to her vice presidential nominee about what happened next.

here is mitt romney trying to figure out the name of that thing that we americans call i don't know. i'm sorry i'm just the guy who cares an awful lot about you sorry. you know what that is my terror cells. don't want to say defeat terrorism the only liberal democrats. can really sort of. know the corporate media distracts us from what you and i should care about because they're profit driven industry that sells a sensationalistic garbage he calls it breaking news i'm having martin and we're going to break the set. of.

welcome to the capital account i'm lauren lyster. r t is the state run english speaking russian channel it's kind of like. russia today has an extremely confrontational stance when it comes to us.

well talk now about last night's presidential debate well sort of i have been listening to all the spin you're probably hearing a lot about romney's rage obama's obvious cations and about the latest trends on twitter things like binders full of women but what almost no one is talking about is the fact that a presidential candidate and her vice presidential running mate were actually

arrested outside of that debate jill stein and cheri hunk of the green party spoke about what they see now as a corrupt political system and later were taken into custody for blocking traffic take a look. do you think that democracy starts today pointing out the debates for every single political party in the united states of america to be a part of the banking system got just corporate america sponsored to make blocking traffic united states our personal rights i think you. were not. in the know. what somebody. was told about thank you so much. while one of the two women you just saw there green party vice presidential nominee sherry hunk joined us earlier to tell us more about what happened yesterday and also what picture this could be painting on a larger scale jill and i had decided to go before the c.p.d. we wanted to go in run eighty five percent of the ballots in this country and so we

thought it would should be up to the american people so that they could listen to us and decide who they wanted to have as their president and their vice president that democracy was taken away from us so we wanted to go down and march into the c.p.d. and have our voices be heard tell me a little bit about what happened when you try to do that well we went down there we didn't block traffic we were at a standstill because we were greeted by tons of officers who did not let us go we end the c.p.d. did not let us talk to somebody from the c.b.d. and so we were arrested by the police officers and then we were taken by secret service to a secret location and we were handcuffed to a metal chairs for eight hours both of our aunts in

a very cold warehouse way said you say eight hours and hours you were held in this warehouse what was the reasoning for keeping you in that long. i have no idea i know that jill and i were there with no other prisoners for about seven hours with about thirteen officers and about two or three representatives. because of the secret service. we watched could see to the separate rooms and it just seems like an absolute waste of taxpayers' dollars homeland security is continuing to be used to preempt a civil liberties of people here in this country and we really need to be a part of the debate because we don't have the billions of dollars that both the democrats and republicans have and we've done our homework it's mathematically

possible for dr jill stein and i to win the presidency so we should be allowed to be a part of the debate now let's get to to some of the things you and joe were speaking about before you were arrested about the system in general why is it that you think third party candidates are still kept out of these debates. well first of all the the c.p.b. is sponsored by ten different corporations we were happy because we saw that three sponsors had pulled out they were expecting a fourth to pull out that didn't happen yet however and again both the democrats and republicans actually represents a one percent in this country and they know that the issues that jill and i are speaking to do represent the majority of the american people so they didn't want to sit on the stage the debates here are actually like reality television

so you're saying one of the problems is that they this commission on presidential debates is actually you know the debates themselves are sponsored by major corporations and that in itself is an issue perhaps that speaks to a larger problem i think i heard your question we're having some problems with the sound here as well but jill and i we talk we speak to the ninety nine percent in this country we have a program that's about eliminating student debts it's about taking money out of politics it's about making sure that everybody has access to a job it's about and being climate change and it's about greening america. in terms of what happened yesterday we noticed a very few people have covered your arrests you know a.b.c.

had a blurb on their political blog c.n.n. political ticker had something and then a mention on fox news website but i've seen really nothing on t.v. and really no larger discussions about third party candidates being left out really during this entire campaign season sherry why do you think that is. well again we have a problem with a small number of corporations owning most of our major media outlets here in this country and we really need outside help from different international media outlets tell the real story american people we are fighting for democracy here it doesn't exist we do not have fair elections we need election monitors here and we need help from the international community you know it's so interesting so often i hear people say that when they go to the polls they're going to be voting for the candidate that they dislike the least just last question for

a share i mean what do you think it would mean to have i mean obviously you guys are on the ballot in the majority of places but not really considered a viable candidate what do you think it would mean if the system changed so that it wasn't always down to the same two parties. well not only would dr democracy come to america if the american people were able to hear about jill and i again they're going to have an opportunity to vote for us because we're on eighty percent eighty five percent of the population can vote for us but not only people in the u.s. would benefit but people throughout the entire world because no longer would we have a foreign policy that would be about bombing and killing people in other parts of the world just for of oil and for the one percent so the international community would benefit as well from our foreign policy which would be about other countries need to police their own countries work on their own democracies we need to bring

democracy back here to the united states we need access to the media and we need fair elections and fair debates green party vice presidential nominee cheri thanks so much for talking to us there was of course also that debate last night the second of three presidential debates taking place at hofstra university in long island new york this is a town hall style debate in which audience members were able to ask the candidates the questions it was a very different format but the candidates sitting standing at times almost getting in one another's faces there are some who even like to like and what they saw to a reality show where the more drama and yelling and bickering the better. governor romney they'll be plenty of chances here to go on but i want to that we have all these trying to add detroit answer and the rest of the answer pushing for oil and gas and coal you get your chance in a moment i'm still speaking and the answer is i don't believe people think that's

the case because i'm that wasn't a question i got i got to move you like it in the first question he actually got you actually got the first question so i get the last question atlanta governor i got it i got it i mean i have you both have i understand the stakes here i understand both you and i think i'm supposed to get that last answer but i want to point out that i don't believe it's ok and i don't believe i'm sure are at a time of papers i don't have mr president if you look at your pension have you looked at your pension i've got to say mr president you look at your pension you know i don't look at my pension is not as big as yours let's make it so our politics following a popular path to become modern day made for t.v. our team correspondent honest takes a lot of. the blame game in full swing why didn't you call me when you were working on this thing finger pointing p did make it worse mocking he even called it marvelous which is a word you don't often hear when it comes to describing a budget

a tax this president is a lightweight we've all agreed that families are off limits dogs are apparently fair game what you're seeing is them finally rising up to the level of professional wrestling and i say rising up to it because in pro wrestling in front of the cameras we all hate each other behind the scenes it's a business. and that's the same way it is for them it's a sham a sham largely compared to reality television survivor style started out eliminating contestants on the island and then eventually have to form alliances you call a party and then they finally grant did you have to survivors . and they didn't get that big just the big prize the big prize for years to run the united states of america the contestants are giving it their all to win the

competition the concept of a reality show we all know is supposed to be some kind of reality but but in reality it's just really made for t.v. and the presidential campaigns in the us are completely made for t.v. like in any major production a huge crew and big box run the game and they have people determine what what a guy's going to wear what kind of haircut how much makeup you know is an opportunity for a lot of people to get rich from what comments and statements most of the election campaign is scripted. the mainstream media following the presidential campaigns eats the show right up one example i'm going to stop the subsidy to p.b.s. i'm going to stop other things i like p.b.s. i love big bird the debates they urged us presidents of the day to do well on the million you that makes the most successful most popular reality show all while fact checking leave the building on the. record

about an active. year most of the. i think i'm. spreading a giant welcome mat for trivialized news coverage is romney hurting obama's feelings it's obama hurting his feelings are they being cordial to each other or are they being angry look at the way obama looks up and looks down the show must go on. until the curtains are drawn presidential candidates putting on a performance to be voted into the white house the superficial media paying little attention to the actual words being said and not demanding to hear the words that should matter as the u.s. election enters its closing act a look to team and remains king and politics not much more than a circus and if the hitcher going to party. well that is going to do it for now but for more on the stories we covered go to youtube dot com slash aren't you.