lending this is yallow santos vice president in the research and statistics group at the federal reserve bank of new york their research showed that during the boom. years of securitization corporate loans that banks securitized that loan origination under-perform simular on securitized loans every state by the same banks additionally we report evidence suggesting that the performance gap reflects looser underwriting standards applied by the banks they securitize and what they found that they moved to and originate to distribute model from and originate to hold model and therefore all the standards were not because and then they forgot because they just thought securitization this act of securitization was creating wealth before the nine hundred eighty seven crash there was a man named mike milken who came up with the idea of the original junk you don't need to originated a rated by the way for it to fall into junk just sell junk from the get go this created a ponzi scheme that led to the one nine hundred eighty seven stock market crash of twenty two percent i have to and i was working on wall street at

lending this is yallow santos vice president in the research institute six group at the federal reserve bank of new york their research showed that during the boom. years of securitization corporate loans that banks securitized that loan origination under-perform simular on securitized loans every state by the same banks additionally we report evidence suggesting that the performance gap reflects looser underwriting standards applied by the banks they securitize and what they found that they moved to and originate to distribute model from and originate to hold model and therefore all the standards were not because and then they forgot because they just thought securitization this act of securitization was creating wealth before the nine hundred eighty seven crash there was a man named mike milken who came up with the idea of original junk you don't need to originated a rated by the way for it to fall into junk just sell junk from the get go this created a ponzi scheme that led to the one nine hundred eighty seven stock market crash of twenty two percent i have to and i was working on wall street at the

lending this is yallow santos vice president in the research and statistics group at the federal reserve bank of new york their research showed that during the boom. years of securitization corporate loans that banks securitized that loan origination under-perform simular on securitized loans every state by the same banks additionally we report evidence suggesting that the performance gap reflects looser underwriting standards applied by the banks they securitize and what they found that they moved to and originate to distribute model from and originate to hold model and therefore all the standards were not because and then they forgot because they just thought securitization this act of securitization was creating wealth before the nine hundred eighty seven crash there was a man named mike milken who came up with the idea of the original junk you don't need to originated a rated by the way for it to fall into junk just sell junk from the get go this created a ponzi scheme that led to the one nine hundred eighty seven stock market crash of twenty two percent i have to and i was working on wall street at

lending this is yallow santos vice president in the research and statistics group at the federal reserve bank of new york their research showed that during the boom. years of securitization corporate loans that banks securitized that loan origination under-perform simular and securitized loans every state by the same banks additionally we report evidence suggesting that the performance gap reflects looser underwriting standards applied by the banks they securitize and what they found that they moved to and originate to distribute model from and originate to hold model and therefore all the standards were not because and then they forgot because they just thought securitization this act of securitization was creating wealth before the nine hundred eighty seven crash there was a man named mike milken who came up with the idea of the original junk you don't need to originated a rated bond wait for it to fall into junk just sell junk from the get go this created a ponzi scheme that led to the one nine hundred eighty seven stock market crash of twenty two percent i have to and i was working on wall street at

lending this is yallow santos vice president in the research and statistics group at the federal reserve bank of new york their research showed that during the boom. years of securitization corporate loans that banks securitized that loan origination under-perform simular and securitized loans every state by the same banks additionally we report evidence suggesting that the performance gap reflects looser underwriting standards applied by the banks they securitize and what they found that they moved to and originate to distribute model from and originate to hold model and therefore all the standards were not because and then they forgot because they just thought securitization this act of securitization was creating wealth before the nine hundred eighty seven crash there was a man named mike milken who came up with the idea of the original junk you don't need to originated a rated bond wait for it to fall into junk just sell junk from the get go this created a ponzi scheme that led to the one nine hundred eighty seven stock market crash of twenty two percent i have to and i was working on wall street the

of the so-called sequester. the automatic spending cuts would trigger u.s. credit downgrade but failure to raise the statutory debt limit almost certainly will. a new report from the federal reserve bank of new york show young americans having a tougher time repaving college loans. 35% of people under 30 were 90 days late on their student loan payments at the end of last year. that is up from 26% in 2008. that is the latest from the fox business network giving you the power to prosper. [ male announcer ] you are a business pro. executor of efficiency. you can spot an amateur from a mile away... while going shoeless and metal-free in seconds. and you...rent from national. because only national lets you choo any car in the aisle...and go. you can even take a full-size or above, and still pay the mid-size price. now this...will work. [ ale announcer ] just like you, business pro. just like you. go naonal. like a pro. connell: california bad for business, it is what rick perry, governor of texas said during a recent recruiting trip out there and pointed a finger at the state's high tax burden in doing so. dagen: adam shapiro live in palo alto, california with more of the tax flight out of the state.

of the board. a new report from the federal reserve bank of new york shows that young americans are having a toughoans. 35% of people under the age of 30 were at least 90 days late on student lope payments end of last year. student loan debt jumped 11% even as other types of borrowing has fallen. that's the latest on the fox business network giving you the power to prosper. >> breaking news oil closing down 71 cents at 92.05 a barrel, the lowest price so far this year. for the month, oil closing down 5.6%, its first monthly fall since october. >> huh. we've been talking about california all day. california's sky high tax inspired several states to actually set up recruiting offices in the golden state to lure away businesses. adam is live in palo o -- palo alto with a goff november the state. what's going on? >> i have a governor from arizona, jan brewer, joining us live on fox business because arizona, along with communities in virginia and other states, opened offices here, offices that have been open for quite some time to recruit, not only to relocate to their states, but expand in their state

according to the federal reserve bank of new york more than 31 percent of people with student loans att year or 90 or more days delinquent. the delinquency rate is pretty increasing. less than 25%. at the end of last year the student debt amounted to $966 billion. these end up putting up with families and homeowners which serves the entire economy. bad news for gasol. coming up, all we will perform an autopsy on the city of detroit. next, why one of the most notable female ceos on wall street says it is. this panel will lay in. ♪ ♪ (train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. >> from our fox business studios in new york, here again is gerri willis. gerri: laying down a tough ultimatum for employees working at home. show up to your desks or lose your job. she says of the best decisions and insights come from a hallway and cafeteria discussions. speaking quality is often sacrificed will work from home. this has led a firestorm among self-proclaimed feminist begging the question what role should feminist play end p

financial crisis as well as the tenure as the president of the federal reserve bank of new york mcwherterthat was checked out in 1958 made its way back to the stay up-to-date on authors news and publishing by liking us on facebook or you can follow on plater at book tv putative you can also visit the web site, booktv.org and click on news about books.

financial crisis as well as his tenure as the president of the federal reserve bank of new york. a website for but recommendations and sales has launched this week after a year-and-a-half. three of the largest publishers all fund bookish. the founder says bookish hopes to help the industry by helping readers connect with books and authors they love or will come to love. san antonio is planning to open a public library that offers only electronic books. the library was named giglio tech and is planning to house 10,000 titles and about 150 for the library patrons to check out. a boom will be one of the nation's first and totally digital public libraries. >> they're the most literate cities in the third straight year. the list is based on research done by mr. miller who looked at the number of bookstores and libraries as well as newspaper circulation and the education level of each of the city's population you can see them by going to u.s. a today. >> a library dhaka was checked out in 1958 made its way back to the new york public library on monday. the 55 years overdue book was retu

federal reserve banks and in return they get a dividend. but these are not banks the way we think of commercial banks. the federal reserve bank of new yorknot like citigroup out there trying to earn big profits to return to shareholders. their job is to manage the money supply. it is also to be a lender of last resort in a crisis, which is what the federal reserve did in 2007. when there is a run on a bank, when depositors flee the banking system because they are scared their money will disappear, but the fed is there to do is provide them liquidity so they don't have to sell other assets, the banks don't have to sell all their assets overnight. that was the role they played during the financial crisis. it is also why there were created 100 years ago. there was a panic in the financial system in 1907. j.p. morgan, the individual, ended up bailing out a lot of banks that were seeing a run. what happened after that was lawmakers got together and said we cannot depend on one individual to bail out our financial system. if we have another financial panic, that is. so they created the federal reserve system. host: bob is on the republican lin

he was at the federal reserve bank of new york before he was treasury secretary.raises an important issue because throughout the history of this bailout, there has been a different treatment for the large institutions than there have been for the smaller institutions. that is of critical importance. one example of that is all the energy that went into trying to get the larger institutions out of tarp, while forgetting about the hundreds of smaller banks in tarp and there are still 300 small institutions involved as well as struggling homeowners who still need assistance from tarp - we have been trying to remind people not to give up on the people who still feel the effects of the financial crisis. host: battleground, washington, independent line. caller: i have been following this fairly closely for the last five years and i have noticed brian lamb is had excellent interviews and i have seen sheila bair from the fdic. the biggest point that everyone seems to be missing is it is not whether or not people are receiving bonuses or who has paid back on much of tarp, w

he was at the federal reserve bank of new york before he was treasury secretary. it raises an important issue because throughout the history of this bailout, there has been a different treatment for the large institutions than there have been for the smaller institutions. that is of critical importance. one example of that is all the energy that went into trying to get the larger institutions out of tarp, while forgetting about the hundreds of smaller banks in tarp and there are still 300 small institutions involved as well as struggling homeowners who still need assistance from tarp - we have been trying to remind people not to give up on the people who still feel the effects of the financial crisis. host: battleground, washington, independent line. caller: i have been following this fairly closely for the last five years and i have noticed brian lamb is had excellent interviews and i have seen sheila bair from the fdic. the biggest point that everyone seems to be missing is it is not whether or not people are receiving bonuses or who has paid back on much of tar

bank of the united states has to pain capital in return for the jay david and. but these are not things the way we think of commercial banks. the federal reserve bank of new york is not like citigroup out there trying to earn profits are returned to shareholders. the job is to manage the money supply can be a lender of last resort, which is what the federal reserve did supply can be a lender of last resort, which is what the federal reserve did in 2007. when there's a run on the bank, depositors for the system because they're afraid it will disappear, with the fed is there to do is provide liquidity so they don't have to sell off assets. the banks have to sell off all their assets overnight. and that was the role they played during the financial crisis. it's also why they were created 100 years ago. there was a panic in the financial system in 1907 and jpmorgan, the individual ended up bailing out banks that were seen a run. what happened as lawmakers got together and we can't depend on one individual to bail out our financial system if we have another financial panic that created the federal reserve some system. >> host: republican line. >> caller: good morni

federal reserve banks and in return they get a dividend. but these are not banks the way we think of commercial banks. the federal reserve bank of new york is not like citigroup out there trying to earn big profits to return to shareholders. their job is to manage the money supply. it is also to be a lender of last resort in a crisis, which is what the federal reserve did in 2007. when there is a run on a bank, when depositors flee the banking system because they are scared their money will disappear, but the fed is there to do is provide them liquidity so they don't have to sell other assets, the banks don't have to sell all their assets overnight. that was the role they played during the financial crisis. it is also why there were created 100 years ago. there was a panic in the financial system in 1907. j.p. morgan, the individual, ended up bailing out a lot of banks that were seeing a run. what happened after that was lawmakers got together and said we cannot depend on one individual to bail out our financial system. if we have another financial panic, that is. so they created the federal reserve system. host: bob is on the republican

of u.s. gold on deposit at federal reserve banks in new york and elsewhere the audit done of the of the bank does not include gold has been leased out so it's an incomplete audit they took a photo of some gold and they say the gold is here and it's somehow purer than the then we thought it was however it's not there because they leased it out or they sold it we know this from tracking the flow of gold and silver and precious metals around the world right now that the buyers of gold versus the gold available on the market lead to one inescapable conclusion central banks are selling their gold and so that's a lie so only the new york said puts out that report they're lying shamelessly and of course that's the spawning ground for people like tim geithner and others who have become so endemic to this campaign of global fraud that destroyed the global economy well we're seeing in these currency wars the likes of germany the netherlands. austria looking to have the gold repatriated because they have loaned their gold to america they have it on deposit they are the new york fed but like emma hitchc

if you don't believe me, ask the president of the federal reserve bank of new york bill dudley. he said -- quote -- "we have k-rl ways to go to -- considerable ways to go to finish the job and to reduce to tolerable levels the social cost of a megabank's failures. he said more drastic steps could prove necessary. governor dan tarillo from the federal reserve threw his support behind senator ted kaufman to cap the nondeposit liability of megabanks three years ago in this body. these men are not radicals. they are some of the nation's foremost banking experts. history taught us we'll never see the next threat coming until it's too late and almost upon us. when we passed dodd-frank, it contained tools regulators can use to rein in risk taking. unfortunately, many of these rules stalled. most will not take effect for years. don't think that's not just because not just the economic power of the banks, but the political power in so often having their way in this city and with regulators all over the country. dodd-frank focuses on improving regulators' ability to monitor risk in enhanci

of u.s. gold on deposit at federal reserve banks in new york and elsewhere the audit done at the at the bank does not include gold has been leased out so it's an incomplete audit they took a photo of some gold and they say the gold is here and it's somehow purer than the then we thought it was however it's not there because they leased it out or they sold it we know this from tracking the flow of gold and silver and precious metals around the world right now that the buyers of gold versus the gold available on the market lead to one inescapable conclusion central banks are selling their gold and so that's a lie so only the new york said puts out that report they're lying shamelessly and of course that's the spawning grounds for people like tim geithner and others who have become so endemic to this campaign of global fraud that destroyed the global economy well we're seeing in these currency wars the likes of germany the netherlands. austria looking to have the gold repatriated because they have loaned their gold to america they have it on deposit they are the new york fed but like emma hitchc

of u.s. gold on deposit at federal reserve banks in new york and elsewhere the audit done at the at the bank does not include gold has been leased out so it's an incomplete audit they took a photo of some gold and they say the gold is here and it's somehow purer than the then we thought it was however it's not there because they leased it out or they sold it we know this from tracking the flow of gold and silver and precious metals around the world right now that the buyers of gold versus the gold available on the market lead to one inescapable conclusion central banks are selling their gold and so that's a lie so only the new york said puts out that report they're lying shamelessly and of course that's the spawning grounds for people like tim geithner and others who have become so endemic to this campaign of global fraud that just droid the global economy well we're seeing in these currency wars the likes of germany the netherlands. austria looking to have the gold repatriated because they have loaned their gold to america they have it on deposit they are the new york fed but like emma hitch

of u.s. gold on deposit at federal reserve banks in new york and elsewhere the audit done at the at the bank does not include gold has been leased out so it's an incomplete audit they took a photo of some gold and they say the gold is here and it's somehow purer than the then we thought it was however it's not there because they leased it out or they sold it we know this from tracking the flow of gold and silver and precious metals around the world right now that the buyers of gold versus the gold available on the market lead to one inescapable conclusion central banks are selling their gold and so that's a lie so only the new york said puts out that report they're lying shamelessly and of course that's disappointing ground for people like tim geithner and others who have become so endemic to this campaign of global fraud that's just droid the global economy well we're seeing in these currency wars the likes of germany the netherlands. austria looking to have their gold repatriated because they have loaned their gold to america they have it on deposit they are the new york fed but like emma h

of troops during the libya attack, martin dempsey and the military is looking into building "small, rapidly deployable forces" around the world. a bangladeshi man who tried to block the new york federal reserve bank with a fake bomb as part of an elaborate fbi sting operation has pleaded guilty to terrorism charges. 21-year old quazi nafis faces 30 years to life in prison following his arrest last october. the fbi supplied every component of the attack including the inert explosives, the band used to carry them, the detonator, and even the storage facility where an agent helped quazi nafis assemble the fake bomb. the agent even reportedly planted the idea of using a remote-control device to trigger an explosion after quazi nafis had originally planned a suicide mission but expressed a desire to return to bangladesh first. thursday, quazi nafis renounced violence is that "i deeply and sincerely regret my involvement in this case." an autopsy report has shed new light on the death of a mexican teenager shot by u.s. border patrol last october. authorities neplanned 16-year-od jose elena rodri wezas throwing rocks at agents over the border fence, that medical examiners say he was shot as many as 11 t

coca-cola, apple, facebook, twitter, google, bank of america, burger king, "the new york times," jpmorgan chase, "the wall street journal," and the federal reservel been hacked. most of the recent cyber attacks can be traced back to a chinese military unit in shanghai. in an effort to more aggressi aggressively combat this cyber espionage, president obama signed an executive order last week to reduce risk, but the issue of cyber security also raises a host of questions involving cyber liberties. saying it didn't adequately protect individual privacy. critics argue the vague language would allow the government to obtain information without obtaining a warrant. today, the house introduced that very same bill. howard, as a deputy mayor of new york city, the question of keeping the city safe is something you deal with on a daily basis. this is a really interesting and brave new arena that we have sort of yet to really get our minds and arms around in terms of national security. >> well, all of our essential infrastructure in the city, from water, to street lights, to sewage, to elevators, everything you can think of runs on computers somewhere. some

it seems the bank wants 300 tons of gold that it keeps at the new york federal reserve to be repatriatedbrings me to my question of the week from the gps challenge. how many tons of gold are stored at the new york fed? is it "a" 670. "b" 1,300. "c" 6,700. or "d" 13,000. stay tuned and we'll tell you the correct answer. follow us on twitter and facebook. also, go to itunes.com/fareed. if you ever missed a show or a special, you can buy the video or get the audio for free. >>> this week's book is alan blinders "after the music stopped." the single best and wisest book about the global financial crisis and its aftermath. blinder who is a former vice chairman of the federal reserve challenges many of your assumptions about the process and shows the real causes and consequences and does it all in easy conversational. now for the last look, look at this form 1040. americans know that's the form we all fill out to file our income taxes. but this one looks different. why? well because it's an antique. you see today is the 100th anniversary of the 16th amendment which gave congress the right to l

plea today in a terror plot to blow up the federal reserve bank in new york. 21-year-old kwasi nafise will appear in court. he drove a van with 1,000 pounds of explosives to the door of the bank and tried to set it off using a cell phone. the explosives were fake set up in a sting operation. the man's family says he is incapable of plotting such an attack. >>> in the day ahead, president obama will speak at the national prayer breakfast in northwest washington. the president will meet with religious and community leade across the nation taking part in the 61st annual prayer breakfast. this is video from last year where he says he relies on faith and values to guide him. the national prayer breakfast has been held every year since 1953. >>> after breakfast, the president will head to leesburg, virginia, where house democrats are holding their retreat. the president will proposal his second-term agenda at the lansdowne resort. vice president biden spoke to the group yesterday and said the world has changed since 1994 when congress passed an assault weapons ban. many blame that vote for costing democrats control of the house and senate. that ba

federal reserve bank in new york. quazi nafis was arrested in october after an f.b.i. sting operation. prosecutors said he drove a van to the door of bank and tried to set off what he thought was a bomb. in fact, the van was carrying dummy explosives supplied by an f.b.i. agent. nafis faces 30 years in federal prison. in tunisia, new protests broke out in the capital, demanding the end of the government. it was the second day of unrest sparked by the killing of a leading opposition figure. we have a report narrated by jonathan rugman of "independent television news." >> reporter: in tunis today, crowds converged on the interior ministry on the same spot where the so-called arab spring began two years ago. "the people want the downfall of the regime" the chant once again. but this time the tear gas came from police loyal not to a dictator but to tunisia's democratically elected government, one which now stands accuse of complicity in political assassination. the victim was chokri belaid, shot outside his home yesterday by a gunman on a motorbike. belaid had appeared on television the night before he died. the s.e.c. tar politician t

of the federal reserve and stealing the contact information of more than 4,000 bankers. that breech is raising questions about the security at the central bank. alison kosik is at the new yorkhow did it happen? that's a good question. fed is not giving many details at this point. only to say that yes, they are aware that information was obtained by exploiting a temporary vulnerability in a web site vendor product. the fed says the exposure was fixed shortly after discovery and is no longer an issue, the fed only saying an outside party hacked a federal reserve web site. keep in mind the fed has many web sites, it's not saying which one was hacked. only it didn't affect critical operations. what reuters is saying, this was a database meant for communication that happens between banks, when there is a natural disaster. reuters is reporting that a group affiliated with anonymous, this group took to twitter on sunday saying we did it, we took email addresses, phone numbers, all of this stolen stuff and published this on a web site, where the data can be downloaded. keep in mind this isn't the first time this happened. other sites that anonymous has taken down include recording