here's the a.g. gaston motel. looks like a thriving business? it's closed. it's closed. i couldn't get over it. so i took a lot of pictures. the whole street basically is desolate. but see, it's all locked up. if you look in the courtyard, if you look in the courtyard, i think the room where martin luther king gathered with his people and where he prayed is in the corner up there on the second floor. sad, isn't it? that's from the back. so this building which is across the street from the motel, not far from the motel, rather, is called the a.g. gaston building. so he really was quite a successful business man in town. these are all over town describing the marches. but here, look at this. the march route, you can walk the same march. you can walk in the footsteps of martin luther king on that day, good friday, in 1963. you are here and you can go to the place where he was arrested. anyone been to the lincoln memorial in the last few years in washington? no one's been there? oh, it's a very cool memorial. but if you go, did you know that the steps that -- the place where

though we don't know all the details yet because the a.g. terms have not been released i understand servicers can satisfy some of the requirements by writing down loans, including investor loan, owned loans, that they service. my question is, will servicers be able to use the write-down of loans held by investors to satisfy the penalties lever i haved by the fed in response to unsafe and unsound practices? that's the first part of my question. >> no. we are part of the overall agreement. and i participating, we helped make it happen. we have released our -- by the way, we just released our engagement letters and action plans for those companies that we oversee. the banks will have to verify that they have produced their own holdings, their own assets by the amount that they are taking credit for in the overall holding. and if they don't meet those full amounts, then they will have to pay the rest in cash. >> on the issue of whether to pursue principle reduction modifications on residential marketers, your report -- your federal reserve white

a.g. of no, i won't repeat the irresponsible wholly manufactured accusation, but to do so without evidence is irresponsible. now there is evidence fast and furious was a fatally flawed operation. we know that, from the evidence, we also know from the evidence that an attorney general knew about flaw, failed gun walking operation. we know that from the documents produced by the justice department. however, that was attorney general mukasey, in president bush's administration. so we have evidence of knowledge at the highest level of the justice department about a bad flawed policy. does the majority call for former attorney general mukasey to testify? does the majority examine the full history of these operations in a fair and responsible manner? does the majority even attempt to avoid the appearance that this is a politically motivated attack? i think from the evidence we know the answers to those questions, and mr. chairman, i will now yield the balance of my time to the ranking member. >>

the a.g.'s testimony that over 60,000 guns, i believe you said, have been traced in mexico that are directly tied to having been gotten there from america. and i must say that one chilling example was an ad that the al qaeda put on their website saying go to america. get guns. it's so easy to do. get your guns for your illegal activities. so i want to congratulate you for your vision and mission of wanting to give law enforcement the tools to get the job done. to have a

us before we get into the end of the book what what got you into the law and into the massachusetts a.g.'s office well it's a long story i'll give you the short version and i was actually out of college a canvas there with greenpeace. and i was going door to door in places rural virginia to suburban washington d.c. and other places like that talking about environmental protection and the balance of people and and corporate power even then that's really what the environmental movement is about how we make it a more just better society for all of us and i went to law school because i saw that's where the battles were taken the we could talk about it but in the meantime the courts and the law were actually creating the results we all lived with and i wanted to have a more tools frankly to be involved in that and that effort and so i i went to law school tried to keep up the fight and when i was practicing law in my first few years i got him scott harshbarger an attorney general of massachusetts at the time was leading this effort to take on the tobacco industry with many other state agenci

he also filed a lawsuit last friday against three of the five banks in the a.g.ettlement over merst, electronic recording system for foreclosures. it was expected if he did decide to sign on, that he would have to drop that suit because it's also over robo-signing. some of the expectations are that the new york state attorney general will come back to the table and may announce he's joining it. if he does, he would likely have to drop the suit against merss. >> diana olick in washington, thank you very much. now let's go back to andy kessler. we led the show with this breakdown or breakout theme. would you buy this market right now? >> you know, i don't like buying entire markets or indexes. i like picking individual names. i like finding companies that have this secular growth story, companies selling components into the wireless space or companies doing neat things in the cloud. valuations are always rich at the early stages of recovery. we have a pretty crappy economy but there are companies beating the numbers out there. >> andy, this is herb. back in 1999, w

he notified the deputy a.g. situation where the initial testimony had to be retracted by letter. i don't understand how it many this come bring kaitd, i worked for the government to be to find out who authorized this and hold people accountable. i have been hesitant to call for the attorney general's resignation. at this point don't get it. i think the longer this goes on, the more delay, the worse it's getting. i think the attorney general has created a pandora's box he can't get out of. megyn: wouldn't it be less on him if he just fired somebody? if you were advising him, wouldn't you say fire someone, anyone connected with this program so it at least looks like you are taking this seriously? >> well, i have not criticized the attorney general, i think he has act appropriately. megyn: you and i talked about whether somebody should be held accountable. >> he removed the head of atf and changed him to another position. the u.s. attorney who authorized this. megyn: he transferred to the office of legal policies s

general who is actually doing the investigation it was referred by the board of election to the state a.g. ken cuccinelli that is underway and i should also add add a caution there you said that one guy. submitted fifteen hundred fraudulent signatures in fact that's what newt gingrich has said we don't know if in fact it was only one guy newt called it oh just a mistake but he has not to my knowledge turned over the name of that one guy that's a whole lot of forgeries for one guy don't you think yeah i mean it could be one guy who runs a company that goes out and get signatures and is paid by the signature and he's got ten guys sitting in a room faking them or something like that and or fifty go or it could be the campaign itself we really don't know because he has not been forthcoming about this now remember newt gingrich has joined with the republicans over the years to decry acorn claiming that what they were doing when they were doing the same thing was voter fraud when in fact acorn wasn't doing it it was a handful of their workers and in all of those cases acorn was the one who chec

fraud they signed a huge hoopla deal with attorneys general at the same time with great fanfare the a.g.'s announced in october two thousand and eight that they had reached an eight point six billion dollars settlement with countrywide and which countrywide would modify four hundred thousand loans what i soon realised was that this would not be a cash payment of eight point six billion instead most of that figure consisted of you guessed it principal write downs and other loan modifications of the credits so what happened is that actually countrywide didn't even own eighty percent of the so called loads it was mostly hedge funds and pension funds owned the bond the mortgage backed securities in that case and they were ones that were forced to write down these loans oh it's regulatory arbitrage global regulatory arbitrage so depending on the territory you cheat the markets based on how you're able to subvert the regulations or lack thereof in any of these territories so the bond market in the europe would require one set of criminal activities of the bond market in the united states requ

a.g. gaston was known -- the biography of him says birmingham's black millionaire. so he's one of the guys. he's one of the guys for whom waves were being made. can you imagine charging market rates to the southern christian leadership conference in 1963? charging market rates to martin luther king when he comes to fight segregation in your town? the guy was skeptical. didn't even give him a discount. so about 20 of them gather, including fred shuttlesworth who is a real fire brand in the town. i mean he's a guy who had been beaten so many times, it's just amazing what he went through long before martin luther king ever got involved in civil rights. so they're in that room and they are arguing it out. if king goes on the march, he knows he'll be arrested. he's the chief fundraiser for the civil rights movement nationwide. he's the only face that's known outside of alabama and the deep south among all the people that are there. he was constantly going to new york and other northern places. if he's in jail, it can't happen. >> that same time, he knew if he did go to j

burke, tragic, i've alerted the a.g., acting dag, lisa, et cetera would it be correct to assume that the way you learned of brian terry's death was mr. mr. wilkinson himself of his statement that he notified you. >> it's entirely possible i knew about it before monte told me. >> you have no reason to dispute that monte told you about it. >> i suppose he did, but i'm saying when it comes to -- when a law enforcement death, especially involving law enforcement that information gets to me very quickly. >> and it should. >> and to follow up on that, in the e-mail exchange, later at 11:15 a.m. that morning, another e-mail to dennis burke, saying please provide additional details as they become available to you, asking the u.s. attorney in arizona, please tell us, mr. attorney, u.s. attorney, we want to know more. later that day, in an e-mail from mr. burke, the u.s. attorney in arizona, to mr. wilkinson, your deputy chief, the guns found in the desert connect back to the investigation, we were going to talk about. they were ak-47s purchased at a phoenix gun store. my question to you, mr.

. >> they're aucalled a.g. a.g. stands for silver.ic table into our tech stuff today. these are a really great idea. >> yeah. >> very brilliant. thanks to abc's andrea smith for these valentine's day gift ideas. doif to take these off? >> maybe. >> for more details on all the stuff she showed us today, all you have to do is visit wnnfans.com. you're watching "world news now." until mom explained with puffs ultra soft & strong, you only need one. two times stronger than the leading value brand, they win this test. puffs ultra soft & strong, they always impress. >> announcer: "world news now" delivers your "morning papers." >>> okay. you heard about the dad who decided to destroy his daughter's laptop because she was complaining on facebook that she wasn't getting paid for her chores. well, the video went viral. i think 21 million views. >> he shot it. he didn't just destroy -- >> he took a gun and went boom. he's a former marine. his name is tommy jordan. now, the police stopped by. and he said that the police said kudos, sir. and chil

global is essentially an example an equivalent example to a.g. in two thousand and eight and virtually unlimited leverage via the shadow banking system and which there are practically no hard assets backing the internet layers of debt created above and which when finally unwound will create a cataclysmic cataclysmic cole lapse of all financial institutions and this is because of this daisy chain a real high population of when that line so my question to you and the global it's horrible the customers lost money it wasn't too big to fail it didn't bring down the system when it went bankrupt. is there another any idea out there and how would you even find it if all of this is off balance sheet and unregulated but probably i mean i think one of the. goals so to speak of the major financial institutions is to make sure that they take so much risk that if they win they're going to win big but if they lose they are going to lose so badly that they have to be bailed out and i mean we've seen this i think it sort of in this country is really in the classi

happened was the attorneys general around the country many of whom want to be governor that's what a.g. stands for by the way aspiring governor. they needed to get a deal done now because through election year schneiderman the california attorney general of delaware attorney general went along with this settlement on foreclosure abuse issues but it didn't give them immunity from more serious prosecution for taxes for securities fraud for other things that they're all facing bank america is facing over one hundred billion dollars in claims for securities fraud contractual issues from investors they're all going to go to trial and i would tell you right now i've been following this stuff pretty closely i think b. is going to lose in court so we there we restructure this company with the help of the bankruptcy court and bring this whole mess to a conclusion or we're going to face years more of headline risk when somebody like m.b.i.a. for example the insurance company wins in court against bank america and ends up with a double digit judgment against them what are we going to do then that

the a.g. is saying i'm going to take you to court on it. what is the standard? does the a.g.ry? eric holder has stats he will use to prove this. >> how can the southern general prove a negative. how is he going to be able to say you don't have a voter fraud problem? >> holder will go back to the department of motor vehicles and say you have got fraud in the department that's suppose to be issuing these identifications. megyn: if the d.o.j. did not address the intent portion of the instrument. if the d.o.j. says this results in discrimination. they need to get into that because south carolina doesn't intend to discriminate. megyn: up next, sunken treasure. and had them read it. no, sorry, i can't help you with that. i'm not authorized to access that transaction. that's not in our policy. i will transfer you now. my supervisor is currently not available. would you like to hold ? that department is currently closed. have i helped you with everything you needed ? if your bank doesn't give you knowledgeable customer service 24/7, you need an ally. ally bank. no nonsense. just peop

we don't know all of the details yet, because the state a.g. been released, i understand that services can satisfy at least some of the requirements of the 26 billion a.g. settlement by writing down loans including investor loan, owned loans that they service. my question, will services be able to use the write-down of loans held by investors to satisfy the penalties levied by the fed in response to the unsafe and unsound practices? that's the first part of my question. >> no, the -- we are part of the overall agreement and i participating we helped make it happen. we have released our -- by the way we just release our engagement letters and action plans for those companies that we oversee. the banks will have to verify that they have reduced their own holdings, their own assets by the amount that they are taking credit for in the overall holding. if they don't meet those full amounts then they will have to pay the rest in cash. >> on the issue of whether to pursue principle reduction on residence mortgages your report, your federal reserve whi

state a.g. isn't talking either. in the newsroom, abc 7 news. >> budget cuts are forcing city of walnut creek to reorganize the police department. that means there will be no more dedicated traffic cops. scaled back school outreach, more officers adesigned downtown. downtown area has seen a lot of rowdiness and arrest in the last year or 2. >>> some renters in contra costa county may get evicted after police say a man used craigslist to defraud several families. there may be more vichlts martinez resident 62-year-old man is facing multiple counts in a rental scheme that were foreclosed homes, homes he didn't own. we have the story. >>reporter: roberto owner a landscaping business. in december he and his family rented a home in brentwood. >> real estate agent comes with two cops. nearly got arrested. and they said you are not supposed to be here. i said yes, i do i have a lease. >>reporter: that lease was made out by this man. 62-year-old salazar. an experienced real estate agent in march tip east. mccormick with the

>> well, it is voluntary but this is, as you know as a former a.g.e the carrot and we have the stick. where there is violation of our basically unfair business law then we can litigate those cases cases. >> so you would follow it through like consumer protection protection. >> representing the people of the state of california and consumers. >> thank you for fighting the good fight. let's talk about some of these social issues. when you and i first met we were both at emerge, which is an great organization that urges women to run for public office. and when you see what is happening, especially with the fight about contraception and the fight in virginia about the transvaginal ultrasound probe. should these battles be waged in the courts? should they be waged in legislature? should people be--i'm not even sure what to say about them because i do think that most of these battles would not even be necessary if there were more women in office. >> well, we definitely need more women in office. i think it's an interesting segue to go from the issue of tec

the three are demanding the suit be dropped as a condition of this state a.g. settlement. massachusetts attorney general, martha coakley filed suits over allegedly fraudulent foreclosures. it could put an end to some state suits but doesn't release the states by other actions from the federal government, private investors or any individual borrowers. sue and tyler? >> thank you very much, diana. let's go back now and try and connect with julia in athens where the audio engineers have gone on strike, clearly. let's check in with julia to find out what the latest is on that debt deal over there. >> reporter: i've got you now. some people are strike, i can assure you. the local media reports here are that the draft agreement has been completed and now with the coalition leaders of the government here in greece, they're set to meet the prime minister in around an hour's time. at the same time around an hour ago, the finance minister and the prime minister met with one of the key representatives of the private creditors here, of the bond swap deals. the pieces do appear to be c