. >>> computer giants do battle, aig pays a little back. smelling like texas, your early morning business headlines are straight ahead. >>> plus meet the new miss universe and wait until you hear her prize package. >>> a no-hitter in the ninth, tiger and elin make it official and going, going, gone. you're watching "early today." >>> good morning and welcome back to "early today." i'm veronica de la cruz. among the dead, six members of parliament, a militant group has claimed responsibility for the attack. former president jimmy carter is reportedly heading to north korea to try to gain the freedom of an american imprisoned for illegally entering the communist nation. the associated press reports north korea has agreed to release the boston man who was sentenced to eight years in prison after his january arrest. a u.s. official says carter is not representing the u.s. government. >>> sea world has been fined $75,000 for safety violations after last year's death of an animal trainer attacked by a killer whale. the occupational safety and hea

enron, aig, j.p. morgan, country wide fan and he freddie were no accidents. based on good faith, they were not accountable. it was just a effort prone to fail. board members in 2003 bruce shaller, the now president of the taxi and limo commission in new york city was hired by the taxi commission and recommended a customer survey be done. in 2006 they produced one. in 2007 the taxi commission produced one which was generated by 42 responses. they refused the taxi commission's offer to do another survey. hardly that is what was recommended, a 42-response survey. i know the response rate and margin of error is far better than the barts, but i am sorry i am not a team player. you know, maybe you think you need a college degree to produce a valid survey. but they don't teach taxi driving in college. they don't teach common sense. i have known a few graduates from college that do not seem to have it. it is just like muni. you have a mandate on time. where is it? >> good afternoon directors. i was waiting to speak about the taxi advisory committee. drivers could not

the payment will trend aig is an outstanding balance to about $15 billion. overall n.y.ased aig received a $180 billion federal bailout during the financial crisis in order to avoid collapse. federal prosecutors in mexico have filed murder and carjacking her charges against two escaped convicts from arizona as well as a woman who accompanied them while they were at large. this is video of john mccloskey and kathleen welch in court. this is last week after they were caught in camp ground in arizona they're accused of carjacking and murdering a local home a couple after encountering a couple in a rest area in eastern mexico. authorities say they drove the truck and trailer to a remote area in mexico's guadalupe county where the unhitched burned in the bay into the trailer. investigators looking into the cause of the oil rig explosion in the gulf of mexico when the rain now about whether the people who were in charge knew how to handle an emergency. if this is video of the fiery explosion during questioning today by an investigative panel of the man who oversees bp is marin

win against braga the glasgow's side lost four two one i get but still am ok have had no problems at aig and the ukrainian side claimed a three one victory in the second leg to make it six one on aggregate and sparta prague also secured their playoff spot after beating lech poznan away in the second game one nil. meanwhile in the europa league russian premier league club severe have a great chance to make it into the playoffs as their take on up along the soul so be a coach crew should go a goal crucial a good story is hoping his side can hang on to their one no later than the first leg of the third qualifying round in siberia which is their first ever game in european competition. elsewhere in the quarter preparing for the second leg of their europa league qualifier to hold accountable to no lead going into thursday second leg into macedonia and psychologically meanwhile coach roy hodgson has made sure his star striker often under torres will remain at anfield spain forward been strongly linked to manchester city and chelsea but should fancy stay with liverpool after hodgson fifty sprin

when fannie and freddie went down, aig went down, and then the investment banks that were involved inthis also began to go down, and the reality is that for the banks, g.s.e., fannie and freddie instruments, were considered capital. when it went down, now the banks were undercapitalized. now that argument becomes whether or not you passed legislation to bail out those banks. i was in favor of them going through a process of bankruptcy, expedited bankruptcy, just like railroads go through, airlines. am absolutely. am i am not a fan of the big banks. but the consequence of them not going through that process is that now a new bill comes forward, and i think you and i agree on not voting for this legislation that just went out. with that bill does is it provides permanent bailout of 40 from the federal government for these large institutions, but only these large institutions. you have to be systemically significant. here is the problem. if your small community bank, your cost of capital is now 100 basis points lower. it is four points lower because you cannot borrow because of the presu

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when fannie mae and freddie mac went down, aig went down. the reality is that for the banks, gse were considered capital. now the banks are undercapitalized. the argument becomes one of whether or not to pass legislation to bail out those banks. i was in favor of them going through a process of bankruptcy. expediting bankruptcy just like airlines and railroads go there. i am not a fan of the big banks, all right? the consequence of the not going to the process is that now a new bill comes forward. i think you and i agree and not voting for this legislation that just went out. what that bill does is it provides permanent bailout authority from the federal government for these large institutions. you have to be significant. here is the problem. if you are a small community bank competing with a big one, your cost of capital is now 100 basis points lower. it is a four point lower in interest. you can borrow because the perception that you will be built out upon the -- bailed out. fannie mae and freddie mac of out a staple -- borrowed at a full

aig, general motors and chrysler, in terms of their financial status. we highlighted a number of indicators that we are watching very carefully to help gauge the ability of these entities to repay the federal government. so we will stay with this until this issue is resolved. in addition to our continued work on the troubled asset relief program until all these activities are terminated, we also focused on highlighting for congress areas in the financial regulatory structure that needs addressed, talk about that in the second and with the legislation does there. we've also highlighted and issued reports on options dealing with the ultimate disposition of fannie mae and freddie mac. since these entities are now under federal conservatorship. that's the one area that was not addressed, although there was a requirement include in that legislation for the administration to submit to the congress early next year proposals for resolving the status of fannie mae and freddie mac, which is a very important decision that needs to be made. we will continue to prov

large parallel financial system composed of investment banks, consumer finance companies, firms like aig, to grow up and decide the banking system. firms were allowed to operate with pincushions of capital and reserves and finance their activities with bad practices of finance agreed outside the united states, the rules were even weaker in the united kingdom where in order to attract business, they built that financial system built on the unstable foundation of a strategy they called light touch regulation. it was also true in many other developed countries where the rules allow firms to operate with much slower levels of capital relative to risk. the global framework of capital did not work and we are moving quickly across the world to fix it. i want to describe briefly the key elements of the international agreement we are working to build. first, we will make sure that financial institutions hold more capital than they did before the crisis. we want the new requirements to be set so that we could face a crisis of this severity in the future without having the government have to step i

among today's other big losers, aig, caterpillar and boeing. >>> however, the disney company and macy's are bucking the economic trend. disney reported its second quarter sales increase, 16% from a year ago. thanks to a boost from espn and the success of toy story 3. macy's net income also urge surged in the third quarter as sales rose 17.2%. they focused on exclusive brands and taylor oring brands to market. >> an all star cast was in san francisco today for the groundhe can bring of a new transbay terminal. the $2.7 million project will take six years to complete. it will include the first high- speed rail station in the united states. officials in today's ceremony focused on the economic impact that the project will bring to the bay area. >> this transbay transit center project is quite simply a bullet train for job creation. the first phase $-- 48,000 jobs. >> when completed, the new transbay terminal is expected to provide a hub for 11 different transit systems and 45 million passengers a year. [ music ] >> soon you may see more vehicles in carpool lanes. we will explain. [ music ]

among today's other big losers, aig, caterpillar and boeing. >>> however, the disney company and macy's are bucking the economic trend. disney reported its second quarter sales increase, 16% from a year ago. thanks to a boost from espn and the success of toy story 3. macy's net income also urge surged in the third quarter as sales rose 17.2%. they focused on exclusive brands and taylor oring brands to market. >> an all star cast was in san francisco today for the groundhe can bring of a new transbay terminal. the $2.7 million project will take six years to complete. it will include the first high- speed rail station in the united states. officials in today's ceremony focused on the economic impact that the project will bring to the bay area. >> this transbay transit center project is quite simply a bullet train for job creation. the first phase $-- 48,000 jobs. >> when completed, the new transbay terminal is expected to provide a hub for 11 different transit systems and 45 million passengers a year. [ music ] >> soon you may see more vehicles in carpool lanes. we will explain. [ music ]

aig still needs to pay back $90 billion more before it can regain its independence from the federal government. that's your "moneyscope" report. >> new reports of an online scam involving i-tunes and pay pal. scammers have apparently found a way to buy thousands of dollars on i-tunes and charge it to pay pal accounts. one victim was reportedly charged $4700. apple and paypal have both told users they're working together right now to solve the problem. >> google is testing a new feature to make its searches even faster. check out this video posted by a blogger. as the search is typed in the results appear and update below. techcrunch, the video is authentic and always trying to improve searches. no word when this feature will be released for general use. >> trouble with children these days, no patience anymore. everything's gotta be instant. that's just a big ahha. >> came on with the computer age even before they had the computer. they had no patience. >> oh, but we did. >> infinite patience. (laughter) >> lately just thinking, gosh -- we need a little patience top get through this heat. >> ho

it institutions like aig and merge in the future, we need to make sure that that subject to the same system that the rest of the system operates with. >> the question is about the economy as a whole. in the last crisis, we had difficult monetary policy and a lot of ammunition. now the monetary policy, the interest rates are close to 0%, a balance sheet well over $2 trillion. what other weapons are there that the government has to deal with a crisis? >> the government still has substantial crisis -- capacity to respond to a future crisis. in the economy, it is important note, it is starting to repair. the private sector -- if you look at business investment and what they're spending on now, if you see a gradual strengthening of recovery. it is about year olds, businesses are hiring now, and you see the necessary transitions start to take place as we transition away from the emergency actions to an economy that can be an economy led by private demand. there are important things that the government can do to reinforce that project. they're considering of package of tax incentives to hel

the great example was the aig crisis. aig managed to get itself regulated not as an insurance company but as a savings and loan. there were supposedly regulated by the office of thrift supervision. they only had one insurance expert on their staff. the world's largest insurance company was regulated by an agency italy had one insurance expert. they have plenty of power to step in and prevent algae from doing what they did. they did not do that. throughout the process, there were a lot of people that were hammering home the point that we do not necessarily need new rules and bureaucracies. if we're going to create new rules, we have to make them mandatory changes. we should not just create a new office somewhere or someone looks at a problem. we should spell out what has to happen if certain crimes take place. the brown-kaufman and then it was a great example. they said if a company gets this big, it has to be broken up. they did not want to leave it up to regulator. they wanted to ride in to the law. almost every regulati

but people were starting to go to the presidents of the homes of wall street, aig, are around connecticut and the lower end and that is why something had to be done by the establishment part because -- politicians. both parties are in bed. something had to be done to take the people away from that and now this group, what they want to do, they want to use the tea party. there are really some good people in the tea party but they don't understand what is going. any third party is going to be taken over by the major parties. they will send people in of from either party to go it up. it did not happen with ross perot because it was all his money involved. so, with anyone else trying, it was put up or shut up. but i really think they will use the tea party to try to take social security away. with the media being the fourth branch of government, you've got to ask these questions, why did cia tenent get the medal of freedom, highest award, when he was considered ruining the iraq war with intelligence. the media never pick that up, because it is establishment. host: new tell our viewers what ki

the large investment banks took advantage of it, and so did aig. in 2004 the federal reserve said we face systemic risk. it is because of something congress has done. with the government-sponsored enterprises allowed them to go into arbitraged into leverage after 100-1. then to invest a very risky rates, in a portfolio of mortgage-backed securities. these enterprises were not doing more than securitized in loans. they were involved in arbitrage. the fed asked for the ability to regulate. this was an area in which congress had tied their hands. congress had piled on by overpowering fannie and freddie to do zero-down payment loans. they have also forced them to do a program for affordable housing in which they bought subprime loans. that was 50% of their portfolio. that 50% was directly responsible for 85% of the losses when fannie and freddie collapsed. when you realize what happened next, a.i.g. had insured the mortgage-backed securities and a portfolio. when fannie and freddie, a.i.g. went down, then. some banks also began to go down. the reality

host: aig pays back $4 billion of debt. for worth, texas, on the line for democrats. susan your on. -- pour worfort worth, texas. caller: we have gone from small, independent farmers to agricultural businesses. all of these animals, whether it is the chicken or eggs, pork, cattle, all of this, from being free range and beating them correctly to these huge buildings where they are piled on top of each other and cropping all over each other, is horrible. the republicans -- and no regulations on this. let them do as they please. some idiot this morning said the people need to be more careful. good lord. it is discussing what is being put out there for us to eat. we're supposed to smile and go on and do not regulate any of this stuff for god's sake. host: what kind of farmer you raised on? caller: i was raised on a cattle farm. we had chickens. host: how long ago was this? caller: i am 67 years old, and i left the farm after i got married. host: do you remember any sort of federal investigators or inspectors? caller: no, i did not recall that. host: the responsibility for

the treasury and the chairman of the federal reserve told us that they were going to be taking over aig the next morning, and they told us if they did not, they believed we would face a financial collapse in a matter of days. so this was an extraordinary crisis. we'll just received a report from the economists alan blinder and mark zandi entitled, "how we ended the great recession." they say in part, "we find that its effects on real gdp, jobs, and inflation are huge, and probably averted what could have been called great depression 2. zero. we estimate that without the government response, gdp in 2010 would be about 6.5% lower, payroll employment would be less by some 8.5 million jobs, and the nation would now be experiencing deflation. when all is said and done, the financial and fiscal policies will of cost taxpayers a substantial sum, but not nearly as much as most had feared, and not nearly as much as if policymakers had not acted at all. the comprehensive wrought -- if the comprehensive policy responses saved the economy from another depression, as we estimate, they were well wort

non- financial institutions, wall street investment houses, essentially, big insurance company called aigl needed a bailout because they were connected to everything else. unless they stopped the bleeding in the financial system, a financial problem would have grown worse and worse. i don't have an answer to you as to whether private investors or workers deserved more of a bailout or less of the bailout. but the government's role is essentially to protect the economy and they did that the best they could. there are a number of different cases and the courts addressing these issues and whether or not the ownership or executives of these big companies should pay. on the first matter, in 1994, the federal reserve was given authority by kind as to regulate predatory mortgage loans. -- given authority by congress to regulate predatory mortgage loans. at the peak of the collapse of the financial system, the federal reserve did not take action until 2008. that is why we need a new consumer protection bureau. host: texas, a democrat for ed mierzwinski. caller: i am calling to thank you so much fo

i do not think that aig will be paying back that money.oreclosure problems would have been ended, americans would be driving new cars. start up businesses, this is a big rip-off. corporations and politicians together. guest: not quite sure how they answer, but i will try. the bailout that got us into trouble, we had terrible problems with foreclosures. some of the action was taken but it was not soon enough for effective enough. now further steps have been taken. most of the tarp money has been paid back. we will let history judge as to whether it would have been worse if no steps had been taken. i think that what we need to do now is get after those corporations that made the mistakes. that is why we passed the financial regulation bill. unfortunately, even that became criticized and its struggle in the senate to get republicans to vote to make sure that corporations could not once again take america into a ditch. that is how politicized this is. getting republicans to crack down on abuses by corporations who have used the process. i am g

but people were starting to go to the presidents of the homes of wall street, aig, are around connecticut and the lower end and that is why something had to be done by the establishment part because -- politicians. both parties are in bed. something had to be done to take the people away from that and now this group, what they want to do, they want to use the tea party. there are really some good people in the tea party but they don't understand what is going. any third party is going to be taken over by the major parties. they will send people in of from either party to go it up. it did not happen with ross perot because it was all his money involved. so, with anyone else trying, it was put up or shut up. but i really think they will use the tea party to try t take social security away. th the media being the fourth branch of government, you've got to ask these questions, why did cia tenent get the medal of freedom, highest award, when he was considered ruining the iraq war with intelligence. the media never pick that up, because it is establishment. host: new tell our viewers what kind

when you realize what happened next, if aig had insured the mortgage backed securities in the portfoliowhen fannie mae and freddie mac went down, on a ieaig went down. the reality is that for the banks, gse were considered capital. now the banks are undercapitalized. the argument becomes one of whether or not to pass legislation to bail out those banks. i was in favor of them going through a process of bankruptcy. expediting bankruptcy just like airlines and railroads go there. i am not a fan of the big banks, all right? the consequence of the not going to the process is that now a new bill comes forward. i think you and i agree and not voting for this legislation that just went out. what that bill does is it provides permanent bailout authority from the federal government for these large institutions. you have to be significant. here is the problem. if you are a small community bank competing with a big one, your cost of capital is now 100 basis points lower. it is a four point lower in interest. you can borrow because the perception that you will be built out upon the -- bailed out. f