authorities accused bankamerica of committing fraud in 2008. worth about $850 million when it was issued in 2008, the security collapsed later that year and led to investor losses of about $100 million. bankamerica said its investors understood the risks involved. >> these were prime mortgages with sophisticated investors ready essential access to the underlying data. we are not responsible for the housing collapse that caused mortgage rates to default at surprising rates. obamais the administration's latest attempt to crack down on errant business practices. and companies like fannie mae and freddie mac, liz lending policies are viewed as instrumental to the -- whose lending policies are viewed as instrumental to the collapse of the housing market. >> for too long they were allowed to give loans knowing that if things went bad, the taxpayers would be left holding the bag. >> goldman sachs and others were found bible -- a libeled in a similar scheme that cost investors $1 million. >> and american escape artist, you can see there, was changed an

. >> >> it will be dramatic and bankamerica ben more litigation, and more litigation bankamerica shareholdersm the amount of litigation spirit >> jacqueline: >> jacqueline: 72 and concord with '60s and '70s and the north bay. in santa rosa was 77 and napa some unexpected warning 67 and 69 in oakland. woodturner piano that the clouds are very slow to clear out tomorrow. for thursday and friday a little warmer as we head into the weekend. wall- to-wall it will be similar to to that when most of our clearing between 12 and 1:00. temperature was thursday afternoon 74 for san jose. no '80s out there again tomorrow. 64 east bay shores and 50¢ '60s for coastline. 70's for north bay. widespread low cloud coverage of what to cooler temperatures. that will mean less clout coverage and warmer temperatures. and you can watch the >> pam: coming up to new tonight at six. the trial temporarily halted for the army doctor accused in a mass shooting at ford hood. why the lawyers assigned to help him -- are now withdrawing from the case. upward run >> pam: there was some speculation that he could be headed to c

but what is a bond, derivatives, but the increased failure and we called around this is happening bankamerica the basket case but the stock is up double from last year but talk about assets this is a problem so you can say maybe it is just faint of america but we hear it is goldman sacks they're all complaining the quality of the recruits is getting thin. this is bad if we talk to you dick bovet he thinks 30 percent is bad. liz: last week we had the dean of the top five business school's m.b.a. programs columbia in berkeley and their graduates are getting the biggest number of jobs in record number. exactly. if you were going into financial services. >> there is some logic not that people are getting dumber in general but they go to the jobs that pay well with dodd/frank and other stuff they have other compensation so this is a snapshot. we generalize statistics it is not the holy grail but i think something is going on. they said wall street is a dirty word right now and natalie that you don't get paid enough if you put that together consulting, a hedge fund, go to google. >> the stanford an

the sec in department of justice are suing bankamerica claiming that the bank had risk of mortgage investmentsyork mullin faces lawsuits over foreign exchange rates. gerri: some of these cases are old. why is this stuff happening now? >> it depends on the jurors addiction, the specific investigation, but some statutes of limitation of looking at about five years since the mortgage product was sold. all five -- five years ago was the run-up to the financial crisis. investigators are trying to get this stuff out and get it under investigation before the statute runs out and they cannot prosecute any more. gerri: thank you for that report. thank you so much. gerri: on to new products. is it worth it. the points you are an lp pay down your debt on everything and student loan and so on. let's bring in the president of consumer education at smart credit. great to see you. always good to have you on this show. our consumer debt credit cards? explain to us what these are. >> this is essentially every word's card. and most rewards cards earn points are cash back or some sort of airline miles. with this

with the big loser this is the worst talk in the s&p 500 down 6.6% bankamerica and merrill lynch cututral also the price dogged -- started down a $5. is big right now but what happens movie into fall it will start to come down a little better. so tyson is the biggest loser -- loser. back to you. lori: the yield on the 10 year treasurys hitting a 3% for the end of the year right now, great to see you guy. with the yields back at where it started today? >> pretty close. despite the volatility last week we seem to have come of the full circle. we did modeling over the last couple weeks and with our expectations copy with the 10 year yield is about the 280 range so a little bit above that level by no to what what about the federal reserve tapering? >> we think it is. the markets are acting as if they would take into account short-term interest rates and inflation expectations but not priced for a change of the federal reserve or any support from the fed. they're not pricing data and so the tapering is already built in. ashley: for september? the economy is not as in good of a shape. will

serial attacks against bankamerica wells fargo, jpmorgan chase, the list goes on. i talked to one secured officer who said on a normal weekday you and i hit the website about 15,000 times a minute to cash a check or move our money. they are getting 3 million hits a minute at the height of the iranian attacks. so a lot more disruption, and they're stealing your stuff, and then finally using this domain up here to create a facts not confined to my thumb, but creating effects down here. and the most dramatic example of that, of course, is stuxnet, which destroyed about 1000 centrifuges at the top. now, stuxnet almost certain i conducted by a nationstate, because it's to compensate to be done in your garage or in your basement, all right? given my background, former director of cia and nsa, i think it's -- i would describe i just described to you and just slightly different words. someone almost certainly a nationstate during a time of peace just use a cyber weapon to destroy another nation's critical infrastructure. ouch. that's a big deal. you may or may not see me m