coming up tonight on r t morgan stanley is in hot water once again this time being sued by the a.c.l.u. for racial discrimination over packaging some private mortgage workers loans into security confused by all the jargon senior financial writer for the huffington post will join us to help put this lawsuit in layman's terms. we brought you for a woman who has gone from home for thirty four. and that's more than the u.s. government can say it's done it's been over a year since the occupy movement flared up it's changed from a protest against corporate corruption to a nationwide rally and now it's going through another metamorphosis we'll tell you

about the changing face of this occupation. good evening it's wednesday october seventeenth eight pm in washington d.c. i'm christine and you're watching r t we begin this hour with a developing story from 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 in lower manhattan the financial district. twenty one year old quazi mohammad reza on the feast was arrested this morning after the f.b.i. says he attempted to detonate what he thought would be a one thousand pound bomb in front of the bank a joint f.b.i. and y.p. the operation flying 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 a 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 two thousand and twelve for the purpose of conducting a terrorist attack on u.s. soil but we should point out of the f.b.i. provided the van and the bomb used in this so-called terrorist attack in fact they tweeted about the operation a short time ago f.b.i. says f.b.i. controlled entire operation to ensure the safety of the public and new yorkers hash tag terrorism hash tag and y.c. 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 emerge. well if you work in the banking sector there's a good chance these last few months have been pretty good to you one of the major booms for some of america's biggest banks have been the results of an increase in home prices home sales new home construction and of course home loans are to correspondent liz wahl breaks it all down. well 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. yet 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 and packaging risky subprime mortgage loans into securities to break down this for more i was joined earlier by ben holman a senior financial writer for the huffington post and we first talked about the significance of what the a.c.l.u. claims to be the first case of main street holding wall street accountable. if you to significant i mean it was as the a.c.l.u. says this is the first case where private plaintiffs underscores a group. of mostly and we've african-american but it goes into troy have have brought a lawsuit of 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 pressure new century which was one of the biggest some prime mortgage lenders into. into

making loans with really i want to get this no there is a 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. 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 you know that i think your previous chart showed very well exactly what happens during the securitization process and what that that shows is that there's no accountability the institution it makes the loan or your local bank or your mortgage lender. doesn't hold onto a very very long and sells at the last three wall street intakes and packages that

together the whole bunch of other loans and sells it off to investors so in each in each stage those two entities the mortgage loan lender and the wall street bank make a profit 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 go for them and unfortunately i think one of the legacies of the housing crisis is that you know we're seeing that minority communities were targeted specifically that's what this case this lawsuit claims is that's why federal lawsuits against. it were settled don't look at a lawsuit against. wells fargo that was settled that's what they know what it is this was widespread yes certainly that african-americans were disproportionately affected here by the subprime mortgage crisis and of course and 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 that's a great question so i was about oct first homeowners how 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 and i think it's going to drag on. president obama who's who's who's been challenged on his economic stewardship 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 but 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 for voters are down somewhat but make no mistake i mean this is still a serious problem when the really hasn't been addressed yet there has been that is 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 i mean 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 saying saying maybe this is number two by is an opportunity to reach financial houses 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. a woman in arizona recently you twice want to see her home is worth half of what she paid for it. and if you look at the lending patterns if you look at who is getting these new loans it is overwhelmingly people with excellent credit scores banks are scared to win to. borrowers with anything with credit it's 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 them 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 seen purva 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 there are loans that are independent should never then given. in there needed to be a correction it makes perfect sense that in the wake of bad banks would be more stringent. but there's i think the big fear that the pendulum has swung too far in the other direction now that it's it's virtually impossible i mean i've talked to people who have excellent credit have to deal 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 a car 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 that overcompensating people definitely come in saying rather for what

happen. in the past it's hurting people as well just real quick then back to 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 has been already i mean practically doesn't happen at all anymore is the type of private backed. mortgage bonds that really drove the financial crisis and the sometimes bubble. right now as you previously pointed out fannie mae and freddie mac. pretty much control the entire mortgage market they buy or 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 promise to to repay the investor that buys them in their profit up the housing market and 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 they were bailed out banks because 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 one state 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. well last night the second of three presidential debates took place at hofstra

university in long island new york it was the town hall style debate in which audience members were able to ask the candidates the questions was a very different format with the candidate sitting standing at times getting into one another's faces there are some who likened what they saw to a reality show where the more drama and yelling and bickering the better for governor romney it will 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'll 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 mean i wasn't a question i got i got to move you on it in the first question you actually got to actually get the first question so i get the last question governor i got it i got it i mean i have you both have i understand the stakes here i'm going to get both of you i think i was supposed to get that last answer but i want to point out that i don't believe so candy i don't believe i'm sure are at

a time like the present or have mr president if you looked 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 about as big as yours i want to make it so our politics following a popular pass to become a modern day made for t.v. r.t. correspondent honest aasia churkin to take a look. at. 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's 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 event they have to form alliances you can call those parties and then they finally in the grand ma you have to survivors to go ahead and pay and if you're yes the big that's 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 if they have people determine what a guy is going to wear what kind of haircut how much makeup you know there's

a list of too many for a lot of people to get rich from looks to 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 the earth us presidential debate as well as a. million you that makes it the most successful most reality show her while fact checking leaves the building. about x. . you're. spreading a giant welcome mat for trivialize news coverage is romney hurting obama's feelings as 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 and look to tame and remains king and politics not much more than a circus and is this a trip into party. well the occupy wall street movement is still alive but no one can deny it's changed its tactics and style a bit since it first began thirteen months ago today we're going to focus though on the occupy movement in los angeles our team was there on the first day of that occupation and also saw the military style raid which shut down one of the nation's largest encampments while the movement fractured a bit a smaller but loyal group continues to fight big banks and is saying some success

and standing up for troubled homeowners art is wrong glendale has the story i know was. more than a year after it kicked off its movement in los angeles occupy allays alive and well but in much smaller numbers. the tents which once dominated the landscape of downtown gone but it popped up in backyards of struggling homeowners with their keep a woman has done for me is going to keep me in my home for thirty four days he had known this family was swept up in the mortgage crisis and is now facing eviction occupiers have set up barricades around the house now for now and is that going to defend their home while the family battles with bank of america their shoulders the meaning of people power the law enforcement is not on our side as well so if you have if you have people power and you have community support. you should we should

reach out to them we should reach out to them and get a get together from the lawn in front of l.a. city hall to this foreclosed home in the san fernando valley the face of occupy and so then california has greatly transformed in the past year but the spirit of resistance remains strong among those who say they're still fighting for the ninety nine percent this is economic war like that's what drives me to be here is not just about say one house. occupy l.a. started in a bus that matters and was unique in how protesters had a cozy relationship with police. i was ever local politicians grew tired of the demonstration and showed they were willing to use a massive police response to shut down the peaceful movement the military style raid on occupy a lazing drove away protesters but radicalized others who are determined more than never to fight repressive forces when you have that kind of systematic

institutionalized abuse of people expressing their first amendment rights it doesn't shut it down it fuels a sense slovik is an independent journalist who has been documenting occupy l.a. throughout you observed how the movements inclusiveness allowed elements in which cause conflict while occupy l.a. has broken up into several community entities it's still celebrates small victories . impassioned occupiers helped pressure l.a. to pass a responsible banking ordinance occupy the hood and other splinter groups have advocated for the rights of the homeless on skid row. they've also teamed up with progressive groups to help save homeowners from even action this again is the current evolution this is the edge of it this is a foreclosure resistance action and it's. bordered by occupy

a little as the movement evolves you know this family is determined to keep their american dream no way you should and i would to have you come i will show you through. oh no no no no no los angeles. of course one of the things that's come out of the occupy movement is increased attention and information on the use of force by police departments around the country this has been the case as well as for our anarchists targeted more than ever by police and in some cases put into custody for refusing to speak recently three were arrested including catherine k.t.o. olding from olympia washington matthew duran also from a libya and most recently it was leland plant from seattle and we do have a video of her a statement that she made and posted online. f.b.i. agents from around washington oregon and joint terrorism task force agents from

washington busted down the front door of my house with a battering ram handcuffed my housemates in the outcome point and held us hostage in our back yard while they read us a search warrant and ransacked our home they said it was in connection to made a vandalism that occurred in seattle washington earlier this year however we suspected that this was not really about broken windows as if they had taken pointers from orwell's one thousand nine hundred four they took books artwork and other various literature as evidence as well as many other personal belongings even though they seem to know that nobody there was even in seattle on may day so i want to talk about this trend a little more and i was joined earlier by our two web producer injure blake who explained why the three who were arrested back in july have been jailed for refusing to testify before a grand jury. the federal authorities can hold you if you refuse to comply with a grand jury investigation they can leave you locked up until the investigation is over and done with and we heard from leo right there in your video and she says she feels like this wasn't about

a bunch of broken windows and that the authorities seem to even know that she wasn't at the meeting she was sure her house was raided i believe said july twenty fifth when the joint terrorism task force came in the f.b.i. several coordinated raids across the pacific northwest and leah said they came in they looked for an artist literature they look for flags black clothing which would make me an anarchist right now but at the time the search warrant said that they were being investigated in part at least for these i made a may first protest in seattle and you know exactly she said you know we weren't even there and since then she's filed a freedom of information act requests to find out that the grand jury actually first convened months earlier before this made these protests even happened so these people have reason to believe that this isn't more this is more than just an investigation into these acts of violence is actually an investigation to ideology yeah it distorts more and also i think said that it identified anti-government or anarchistic literature. to talk

a little bit about i mean what does this mean it means that if you own a book you can have the cops bust down your door and hold you at gunpoint and take all of your possessions which i thought was actually really funny because i was working on the story last week we first broke it and in addition to worry black it i guess i'm a terrorist i actually had a copy of everything you wanted to know about anarchism on my desk i was for the cameras this is on andrew's desk but let's see what else i don't you have some other things on your desk and i have this over one hundred fifty great pizza joe. here's my complete book of zingers ok so between the three of these i guess i could be an anarchist i'm not but that's really all it takes if the f.b.i. is going to say well we're looking for literature and we're going to look. computers and we're going to look for your black clothing and we're going to look for flag making material yet and this is what they did they came in they filed a search warrants detained everyone waited a few months and the grand jury. began and leo was the third person who said i'm

not going to testify i'm not going to go up there and be quizzed about my own personal beliefs i'm not going to talk about my friend's personal believes and i'm going to remain silent because i think this is a politically motivated witch hunt that's being used to kill self described anarchists you know it's interesting to me i know you're not a legal scholar and you're but but was able is why can't you know the fifth and then protection committees in the case of a grand jury well the whole purpose of a grand jury of course is you know to bring in a larger panel maybe up to twenty six people i believe to come in here federal prosecutor district attorney go ahead and present evidence quiz people and try to get enough information to actually file a federal indictment against someone so in cases like this they really can't go ahead and get the wheels moving to file that indictment if they don't have the evidence so if someone refuses to testify they are actually legally allowed to hold them for in this case it could be up to eighteen months in an attempt to kind of

coax them into coming out and agreeing to testify which they don't have to do and two colleagues can actually remain in prison for the next eighteen months if the state choose to remain silent and it looks like they they all do they're all writing letters from prison they seem relatively content given the circumstances and i was reading that matthew duran i don't know the answer to the knocking around was actually put in solitary for a lot yeah he was put in solitary confinement couldn't find the exact reasoning for that but. so matthew was raided forced to go speak before a federal commission about his personal beliefs and then when he told him he wouldn't they locked him up and put him in a tiny room for days upon days and we should mention that that would happen in the pacific. it is part of sort of a growing trend we show this occupy sort of anniversary story and i remember i interviewed a guy whose house was raided philip neal his house was raided after occupy seattle i just want to play a little bit of what he had to say basically to the sound of the flash thing going

on. as you know just enough time to jump out of little clothing on and put our hands behind our heads and the swat team came in with their automatic guns drawn have been going to our. time over the search the house clearly disconcertingly to wake up in the morning so we've got an hour cast we've got occupy activists being raided. what's you know sort of the takeaway here is that you're not safe in your own beliefs or your own actions or even your own possessions whether it's an anarchist literature or a book of pizza jokes and we saw the same thing last year there was a secret grand jury was convened to investigate leaks and david house a member of the bradley manning support network was testified to go rather subpoenaed to go before them and he did the same thing under two courts did he gave his name he gave his birth date and nothing else in no. case he was asked to

testify twice more times she refused so this is happening across the country for anyone who is exercising or at least being accused of exercising any sort of belief that does not sit well with the federal government it would appear whether an occupier an anarchist or just interested in free information and it's really unfortunate but it's happening and thankfully we can we come on air and talk about smart people here because that has a lot of people just really are not discussing this appreciate your time i know you've been kind of covering this that for months now are to where producer andrew black thanks so much. all right everyone that's going to do it for us for now but for more on the stories we covered we post all our interviews in our stories on our website youtube dot com slash r t america and also our web site r t dot com slash usa now if you're not following me on twitter you should you can find me at christine for example want to thank you so.