bank of america has said in this portfolio there's at least three. percent of it is going to become delinquent so at least thirty percent of it is bad at least one organization that i've talked to that looked at this was given the opportunity to bid but actually wasn't given the opportunity to bid so it actually might be twenty five percent is the delinquency rate in this portfolio which means that there could be really heavy losses so bank of america doesn't want this on its balance sheet so if they are generous take it now and this is where the conspiracy store thing comes in the united states government has a lot riding on bank of america surviving and they're doing anything they possibly could to short of ensure that bank of america doesn't go under bank of america's got a lot of problems right now this could just be a small part of sort of a broader treasury plan now to try to keep it around to sort of people put now again we don't know at a very simple way of sort of answering these questions is just some disclosure from well that's exactly we'r

now here's a story that you haven't heard anywhere else fannie mae they have bailed out bank of america to the tune of almost half a billion dollars this month and we say rain because the details of a recent deal that was made are pretty scarce but a little suspicious here's the breakdown in early august fannie mae greeted by the mortgage servicing rights of a portfolio four hundred thousand loans but then on paper is the balance of seventy three million dollars in bank of america now in exchange for the right to collect the payments from homeowners bank of america reportedly received five hundred million dollars the real price i'll ever isn't known and neither are the contents of this going to perform portfolio now this should make you the taxpayer a little curious since fannie mae that's been bailed out more than once is essentially now government own so your money into this deal and if the white house's plan national refinance program goes through that means that you may have just gotten a really bad deal but enough of my very cryptic explanation here let's get to our guest to tell u

suzanne, bank of america confirmed today it's planning a massive cost-cutting effort, including big layoffs. >> susie: tom, b. of a. c.e.o. brian moynihan said today that he's trying to reshape the nation's largest bank after a series of missteps. the restructuring plan is called "project new b.a.c." it will slash 30,000 jobs from its consumer banking businesses. the goal is save $5 billion a year by the end of 2013. >> tom: is this the right medicine for ailing b. of a.? and what will it mean for the bank's competitors? erika miller reports >> reporter: whether it's the number of kids in a classroom or the amount of calories in a meal, bigger is not always better. bank of america believes the same rule applies to banking. the firm plans to trim operations in order to become more focused and more efficient. it's a smart strategy, says analyst moshe orenbuch, whose firm does business with bank of america. >> absolutely! it is! what they are trying to do is get out of things that aren't integral to what they are about. this is not about, you know, cutting a third of their branches. it's about

her husband belongs to bank of america. >> he is probably going to want to switch. >> a spokesperson said the economics of offering a debit card had changed with recent regulations. that refers to the billions of dollars the banking industry expects to lose annually because starting saturday banks cannot charge retailers as much as they used to for swiping debit card. u.s. senator dick durbin said bank of america is trying to find new ways to pad their profits. >> it is annoying and not necessary. >> there is not much we can do about it. when does it stop? maybe another bank will do it. >> we should point at the other financial institutions including wells fargo are testing out similar monthly debit card fees. bank of america debit card monthly fees will not apply if the customer is using their dead card to pull money out of an atm. >>> new at 11:00 drivers can expect a big change in tyson's corner. they will permanently shut down the west exit. that left exit is going to go away for good because of work on the lane in the area. instead, drivers will be required to use the right exit

that's what bank of america is asking customers to do. other banks could soon follow. bank of america customers did not welcome the news. >> i think it's crazy, at the end of the day they charge us other fees, this is ridiculous. >> reporter: bank of america joins sun trust in initiating fees for using a debit card. bank fees continue to climb to record levels. fees are now a report 2:40 2.40 for using an atm. >> i would say the day of the bank has gone out like the dinosaur. >> reporter: this weekend another regular takes effect that limits the amount a bank can charge merchants for debit card purchases. >> they've reduced that to 23- cents a transaction. >> reporter: the bank says the economics of offering a debit card have changed with the new regulation. bank of america also has to offset the cost of billions of the dollars of bad mortgage loans. >>> new problems uncovered by experts on the washington monument. experts pulled off two chunks that were damaged. the monument is closed indefinitely. >>> caught in a flash flood. a woman is saverred by a complete stranger

your husband belongs to bank of america. >> he's probably going to want to change banks. on from the bank says the economics of our for the debit card have changed with recent regulations. that refers to the billions of dollars the banking industry expects to lose annually. starting on saturday and the banks cannot charge retailers as much as they used to for swiping a debit card. u.s. senator dick durbin blasted the company, stating that bank of america is trying to find new ways to pad their pockets by sticking it to its customers. >> is annoying and not necessary. >> there's not much we can do. when does it stop? maybe another bank will do it. >> other financial institutions including wells fargo, chase bank, and some regional banks are testing out similar bank card fees in certain states. bank of america debit card holders should know that if they are simply using their debit card to pull money out of the bank of america atm machine they will not have that monthly fee. >> i think a lot of people will be changing their banking habits. >>> also, and drivers beware. new d

will no longer be the bank of america. it will just be another bank in america. >> tom: but standard & poor's sees the management changes as a positive. financials analyst erik oja repeated a buy rating on bank of america today, with a $10 price target on the stock. >> bank of america is continuing to wrestle with its legacy issues, but we think that underlying it, the operational performance should be strong enough to overcome the legacy issues. >> tom: as for the stock, here's the past 30 sessions. shares spiked in late august as billionaire investor warren buffett bought in on august 25. his $5 billion stake kept the stock over $8 per share until late last week. yesterday's management shuffle helped boost the stock today-- up 7% to $7.48 per share. >> susie: tom for investors keeping score, today is the first update on wall street after four down days, and it's all because of the president's speech that we've been talking about. >> tom: lots of optimism back in the share price that not only the president will deliver but

all bank of america will help free atm use of bank of america atms. they are the biggest bank but they're not the largest ones. suntrust started payincharging . regions = $4. chase, wells fargo = $3. in certain markets but not decided on a long-term policy. this comes ahead of the policy which caps the fee banks can collect from businesses when customers use their debit cards. those fees generated $19 billion for banks and 2009. in the meantime, hundreds of people have taken to the streets in san francisco to protest. large banks are responsible for the financial crisis the country faces. dan kerman is live market street/second street. the and, what are they demanding? >> reporter: these banks take responsibility and pay up. you can see 100 protesters and their continuing in front of this chase bank. this is the third stop. this protest began at 3:00 p.m. 5:55 california the old corporate headquarters of bankamerica. then if. protesters say that nobody has taken responsibility. once they will rarely out here, they're going to go to charles schwab, and

she also repeatedly warned both countrywide and bank of america executives of widespread fraud in subprime lending. the employee has been identified as eileen foster, a former internal investigator at countrywide. bank of america has been ordered to give foster her job back and $930,000 dollars in back pay. >> tom: one in three american adults is obese. being very overweight brings with it significant health risks and significant costs, at a time when 50 million americans have no health insurance. a new study in the medical journal "lancet" finds patients who were told by their doctor to use weight watchers lost twice as much weight as those who just saw their doctor. we spoke with c.e.o. of weight watchers international david kirchhoff about what this study means for the way his company does business. >> weight loss isn't necessarily an easy thing to do and it's not an easy thing to sustain. but when the right behavior elements are in place, you can have success which is therefore the consumer part of our business which is, you know, hoping to inspire people and motivate them and give the

we foreclosed on bank of america. >> reporter: holy (beep). yes, it's incredible. very branch. i wanted to hear every detail. >> i followed the sheriff's department into the bank. they walked immediately over to the manager and handed him the writ of execution. >> reporter: awesome. >> saying we're going to take everything that is not bolted down. >> reporter: just so great. they even had actual repo men. when you first realized you were repo-ing a bank, how quickly did you think, holy (beep), this is awe is many. >> two seconds. >> reporter: what was the bank manager's face like when he realized what you were doing? >>. >> he was visibly shaken. >> reporter: what did you say to him? >> you've been foreclosed. >> reporter: i feel bad for him but (beep). is this the actual bank? >> that's it. >> reporter: wow. that is the single greatest story i've ever heard. >> thank you. >> reporter: no, thank you. it's rare to have such a moment of pure catharsis. ♪ they shut this (beep) bank. i had to tell the world. good news, everyone. gather round. i am hear to tell you a won

the new fee is expected to generate billions in new profits for the bank and bank of america says it as to compensate for a federally mandated cap on processing keys for debit card transactions. many customers say at this point they are frustrated and will look to switch banks. >> i think things are hard enough right now, and banks seem to be not taking very much -- or very good care of the individuals, the little people. >> with the debit card usage, it is something we will see more of in the weeks and months ahead, because banks make less revenue every time the consumer swipes the car. >> sun trust has $5 and wels fargo has $3 in some states. >> you can go to our web site and it is the fifth story down. bank of america now adding debit charges. we have the story filed last night by kristen schaefer and updates by co are rinne and on facebook this morning, go in and let us know what you think about this. we have it down, but we also we reposted the question for you at the very top. saying will this make you change your spending habits? maybe going to more of a cash and carry point of

department of public work says someone is slashing off the top of tree ins front of bank signs and they want bank of americao take responsibility. who did this? and this. and this. the san francisco department of public works is pointing the finger at bank of america. this image from map jack shows what the trees used to look like and here they are now. >> what we are seeing is a pattern of these trees being hacked and pruned just to make room for signs of the bank. >>reporter: the signs won. clement. geary. balboa. terrible and irving street. and neighbors aren't happy about it. >> if this is the type of childish behavior that this corporation is going to be doing i think the way the tree grows, move the bank. >>reporter: for the past year dbw director has been writing strong let investigators bank officials and he fine add corporation for shearing off tree at 2 location but the bank ignored the letters and the fine. >> they aren't listening to the city to follow city ordinance and that has led to us here. >>reporter: cutting off more than a quarter of the branches is called tree topping and it is illegal

but part of the news, sort of bitter sweet, because you look at bank of america. s of default in greece, france, the banks. it is all part of this story that is interwoven and perhaps manifested in some of the numbers. >> oh, sure. and there's worries about the european debt crisis. just because we are ending in green, those worries are not going away. everyone is still worried that quote financial flew will become contagious and cause us to start sneezing. it is is likely that greece cannot pay its bills and will default early in this week. that's why you see the volatility we saw today. we saw most of the day in the red and of course bank of america, bank of america saying that it's going to be, you know, cutting 30,000 jobs over the next several years. bank closures actually are not off the table. the company did not discuss that today, brooke, but it is something we have been hearing about. there is talk it may close 10% of its banks. b of a is restructuring. this will take years. it could wined up closing branchs that time. a lot depends on how the economy doe

for bank of america, it will be a $10 billion in fees. they're instituting that fee to make up for some of that. bank of america in particular is saddled with a lot of potential losts when it comes to mortgages because they bought countrywide mortgage. they're intent on making sure to continue to make as much money as they can. they face lawsuits on that and they may have to write down even more as people continue to have trouble paying their mortgages. for news 4, i'm bertha coombs. >>> trying to buy a car on-line led a family from fairfax county in danger. they were held up when they tried to purchase the cars two. in newington, one in clifton. one case, a gun was pulled out. if you're buying something from craigslist, meet in a public place during the day and bring something with you. >>> it was just over a year ago that natascha pettigrew was killed riding her bike. her mother never gave up the fight to bring that driver to justice and now has helped to change the law all across maryland. darcy has more on that. darcy? >>> we've learne

banks and their role in the housing crisis came to a head in san francisco. hundreds of people demonstrated outside the financial district offices of several banks, including chase, wells fargo and bank of america. the group says that banks should help moment owners rebuild neighborhoods devastated by foreclosures and pay their fair share of taxes. there are no reports of any arrest. >>> today michael jackson -- . >>> he joined the army in 2009. he was akind to the first infantry division based in fort riley, kansas. this was his first deployment to afghanistan >>> a federal appeals court today declined to decide whether the military's don't ask don't tell policy was constitutional. the gay rights group lone cabin republican filed that suit back in 2004. it won a lower court ruling that the ban on gays serving openly was unconstitutional but a panel of the 9th circuit court of appeal in san francisco has now thrown out the lawsuit saying that the case is moot since the policy was lifted last week. the group does say it plans to appeal. >>> tens of thousands of people pour into golden gate park. >>> back here, we have some big changes i've been talking about in your weather forecast. it does inc

department of public work says someone is slashing off the top of tree ins front of bank signs and they want bank of america to take responsibility. who did this? and this. and this. the san francisco department of public works is pointing the finger at bank of america. this image from map jack shows what the trees used to look like and here they are now. >> what we are seeing is a pattern of these trees being hacked and pruned just to make room for signs of the bank. >>reporter: the signs won. clement. geary. balboa. terrible and irving street. and neighbors aren't happy about it. >> if this is the type of childish behavior that this corporation is going to be doing i think the way the tree grows, move the bank. >>reporter: for the past year dbw director has been writing strong let investigators bank officials and he fine add corporation for shearing off tree at 2 location but the bank ignored the letters and the fine. >> they aren't listening to the city to follow city ordinance and that has led to us here. >>reporter: cutting off more than a quarter of the branches is called tree topping and it is illega

what, if anything, can bank of america customers do to fight back? >> they can complain, of course. banks are somewhat sensitive to complaints because city corps tested the waters and said they are not going to institute such a fee based on the fact that according to their consumer banking head that they find this irrigating, the $2,400 million insult that bank of america layed on its customers. >> as we mentioned, bank of america isn't the only bank nickel and diming us. wells fargo is testing similar programs. what, if anything, can we do to beat these banking fees? >> again, in addition to complaining, use the atm machine where you can, you know, get your cash and then go to the particular merchant. >> that's not convenient. >> you can also change, there are 5 or 6,000 banks out there. you do need to declare to banks generally that just because you are number one, bank of america, doesn't mean you're the only bank. if consumers do that, that will go a long way in disciplining the bank of america, that they can't nickel and dime us. >> i posted this on my facebook page and the reac

supposed to answer big to fail didn't as many economists that i've spoken to have set but it doesn't bank of america prove that these kind of requirements are necessary we've seen bank of america eighty five billion dollars from warren in order to calm markets now they just laid off thirty thousand people to save five billion dollars is this kind of the poster child for making the case for the kind of capital requirements in basle or bank america is a disaster because they keep coming out and you keep saying that were adequately capitalized which is a story we hear all the time you heard about person right until they got bought out for two dollars a share you heard with lehman brothers up until the weekend that they had to file for bankruptcy so it's a joke that they're coming out and saying there's no one to take it seriously when you have to you have to do is you have to look at what is bank of america doing as you said they're laying off workers why are they going off so many workers of their article we have allies why are they getting money from warren buffett well they say we just want to prove

once again, we have bank of america, merrill lynch the winning bidder. on the next slide, slides 3, you can see all three sales. some of the bonds were the largest, $603 million. we had several bidders, and bank of america/merrill lynch once again the winning bidder there. to help put this into perspective for bank of america/merrill lynch, they have been one of our largest buyers since 2006, and the enterprise has been selling a great deal of bonds. about $1.60 billion total they have purchased, including what they have just purchased. this bid was to fund our hetch- hetchy facilities as well as our water in the city. citigroup global bought those, and then our bank of america/merrill lynch bought all of the re-fundings. so we premature cheap what was adopted as part of the last budget hearing. in that model, we had an average cost of borrowing. we achieved an average overall of about 4.48%, so we are pretty close. the items that also happens, the bond sale, moody's did downgrade us given our weakness. we had thought that would occur. moody's previously

. >> and ben stein, we're left in this sort of weird world where so many are worried and bank of america getting down grades and saying, well, you know, a unique situation, still has a lot of good things on the books. it's not like 2008. what do you say? >> warren buffet just put 5 billion, of his own money out of his own pocket into bank of america securities. if he thinks it's solvent, if he thinks it's a worthwhile bet i will put my money with. >> neil: you absolutely love warren buffet. >> i love warren buffett. >> if he thought the bank was going to be insolvent or even if there's a remote chance he would not have put his money there. he's a very smart guy and trust him ahead of moody's any day of the week. >> but, ben. >> well capitalized and great shape. >> and the fact they had to give him a deal. and at these levels, why are they doing that? >> they want to be better capitalized. they're well had-capitalized and they want to get more capitalized. >> neil: adam, get into that. >> well, in a way things are far better than 2008 for the american banks in particular and this is key,

. >>> now to bank of america and its plan to start charging customers who use debit cards for purchasese b of a is this country's biggest bank in the u.s. >> reporter: a lot of us are used to banks and their fees. this one is causing quite a stir and it's not hard to understand why. >> for many of us, it's as good as green. >> how often do you use your debit card for purchases? >> maybe three or four times a week. >> three to five times a day. >> regularly, daily. multiple times a day. >> reporter: but for bank of america customers, that convenience will soon cost you cash. starting next year, a $5 fee for using the debit card to make purchases. there won't be any fee for atm transactions as long as you're using their machine. they're trying to recoup losses from the card act which limited their ability to raise interest rates and charge overdraft fees. this week another new regulation takes effect that lowers the amount the bank can charge merchants from 43 to 24 cents. all consumers know it's just another hand in their pocket. >> we have credit cards from bank of america that they gav

reports suggested that moody's ratings would lower the credit ratings of french banks exposed to that debt. we look at bank of america's troubles and the growing tremors over global financial problems with bert ely, an expert on banking and financial services. and simon johnson, a former i.m.f. chief economist, professor at m.i.t. sloan school of management, and fellow at the peterson institute for international economics. thank you both. it's good to have you both back with us. >> good to be here. >> woodruff: so, bank of america, they're eliminating 30,000 jobs over the next few years. they say they're going to cut expenses $5 billion a year. they're talking about cutting off so-called non-core businesses and assets. how much of a downsizing is this for them? >> well, it's a fairly significant downsizing, roughly 10% of their work force. and yet they still have been a little sketchy about many of the details of this downsizing particularly in what we call their non-retail businesses, their capital markets business, investment banking and so forth. while they've announced in broad terms the downsizing could take place

but watch bank of america today. america's largest bank is weathering an uproar of its plans to charge debit card users $5 a month if you use the card to pay for purchases. finally, the ultimate casualty of an unfriendly economy. "the wall street journal" reports friendlies is preparing for possible bankruptcy and a potential sale. >>> well, in health news this morning, cornel researchers who turned to twitter for realtime little filtered behavior and thoughts found a pretty consistent pattern. people who wake up tend to be in a good mood earliest in the morning and happiest on weekends. on average, a positive attitude peaks early in the morning. i guess that's good news for us. then it starts to dip mid-morning. the positive vibes start rising once again in the evening and peak again near midnight. for more nfrgs on this, you can che out the health page on msnbc.com. >>> well, baseball playoffs and the first casualty among managers who didn't get their team there. plus, south florida is cracked in an upset. your firs

countrywide along with merrill lynch acquired by bank of america bank of america once again rumored to be bankrupt needed emergency cash infusion from warren buffett still being talked about in terms of being bankrupt but the seed of all this angelo mozilo poster child for mortgage fraud we're seeing today parent me kicking back with with some fruity drinks on an island somewhere i mean you know he got out with the wrist slap in the civil suit by the shareholders and there was there was nothing criminal essentially. you know this is this is a larger problem x. with with the way the government operates in a way the financial regulatory regime operates is there they're generally happy to go in. for guard lists of how steep the wrongdoing or how clear it is going and settle for a tiny fine which which sadly becomes just the cost of doing business for these companies and doesn't really change the modus operandi so that it certainly applied to. in spades well it was always there and now you know we see that bank of america has inherited that mess something we warned against when it was goin

bank of america has about 57 million customers. and 20,000 atms. the big bank announced it will add the new fee which will cost customers $60 a year. the new fee is expected to generate billions in new process fees for the bank. bank of america says it has to compensate for a federally mandated cap on processing fees for debit card transactions. many customers say at this point they are frustrate and will look to switch banks. >> i think things are hard enough right now, and banks seem to be not taking very much, or very god -- good care of the little people. >> this is debit card usage that we will see more in the weeks and months ahead because banks are making less revenue every time a consumer swipes that card. >> and this fee is not new for most banks. sun trust already has a $5 in place and wells fargo charges $3 a month in some states. >>> police are searching for three men this morning who apparently impersonated cops and what they're doing with that. also we will have that in a second. the hot topic this morning is about bank of america and

it's ridiculous. >> reporter: the bank says the economics of offering a debit card have simply changed with the new regulations. but bank of america also has to offset the cost of billions of dollars in bad mortgage loans. >> pelley: anthony, thank you very much. one thing banks are charging less for is mortgages. a report today says the mortgage rate has fallen to 4.01% for a 30-year fixed rate. it's an all-time low. no surprise, refinancing applications shot up 11.2% from the previous week. the federal reserve is holding down interest rates to help struggling homeowners so we asked cynthia bowers to find out if those homeowners are the ones who are getting the help. >> i love saving money. >> reporter: don chookaszian is a serial refinancer. he's refinanced his mortgage three times in three years and knocked the interest on his 30-year loan down from 5.5% to 3.8%. >> you get a checklist, you give it to them and you're done. you just wait for them call you and say "time to close." >> reporter: mortgage banker amir said says chookaszian is one of the rare breed of loan applicant these days. >> they're the small exclusive group of

bank of america tells us: >> she hopes her story will teach bank of america a lesson. >> get real tiredf all these banks getting away with these things. >> reporter: julie watts, cbs 5. >>> now, after we contacted bank of america, they tell us that they will work to repair any damage to her credit. and remember, if you have a consumer problem, call us right now. our hotline is open. volunteers are standing by. that's 1-888-5-helps-u. and they are amazing group of volunteers that help with all sorts of problems every day. >> i guess the moral of the story is you have to keep an eye on everything, right? >> reporter: absolutely. >> pay your bills and think you're okay and whoops. >> but your heart just goes out to her because she within the flew so much. >> reporter: one thing, for folks who are facing financial issues tonight, call 211 between 4:00 and 8:00. they have a special hotline open that handles problems just like this. of course, you can call our volunteers, but there are a group of people gathered with united way, 211 a great resource. >> thank you. >>> amazon took the wraps of

. >> reporter: she hasn't been late in six-year and suddenly two years ago bank of america rejected here payment. >> there was something that must be some mistake. >> reporter: after calling bank of america for answers, she was certain it was a mistake. >> first person i talked to is customer service. she said it's in foreclosure. >> reporter: she had never missed a payment so she couldn't understand how she could possibly be in foreclosure. and when she asked to speak to a supervisor, she was told, they would look into it but don't bother calling back. in the meantime, she checked her credit score and found it had dropped by 100 point stating her mortgage hadn't been paid in six months. >> that day i had a doctor's check-up and my blood pressure was so high my doctor was surprised that's how upsetting it was. >> reporter: she called the bank and was begin the runaround again so she turned to consumerwatch where our producer confirmed it was ail big mistake. -- it was all a big mistake. bank of america said, the home hasn't been foreclosed. there was a clerical error that is being corre

talk is from bank of america that 30,000 jobs will be cancelled. that shows how the american labor market is under pressure. bank of america cutting costs. $5 billion per year. layoffs about $30,000. the stock so far is holding up well. the heat for the financial industry is still on. >> thank you for that update. let us get a closer look at the numbers. the dax ended down 2.25%. the dow industrials closed 2/3% higher. the euro is trading for $1.3680. a troubled car maker has been unable to pay wages to its workers. saab has been trying unsuccessfully to get new funding. it has been struggling with falling sales and was forced to suspend production in april. workers are still awaiting august salaries. spyker announced that two chinese firms would buy minority stakes in the company, but those deals have not received regulatory approval in sweden or china. >> one person is dead and four injured after an explosion at a nuclear waste treatment plant in southern france. the nuclear safety authority says there was no leak of radioactive material. there is