>> i know that they had a subprime package through citibank. i am not really sure what they were doing with it. they said they would use the city backed subprime package and that was back in 2006 around the time they said that they saw the first cracks in the housing bubble and acorn said they wanted to be there when it burst. >> never pass up somebody else's tragedy to your advantage, i guess. i want to close by thanking all of you for the work you're doing as a whistleblower and in your individual states. i want to make sure we make the record complete as much as we can. attorney-general are welcome to work with our committee, all 50 states, anyone doing investigation, as long as there is an ability to protect the sensitive nature of some of the information we have been given that was thrown out in many cases. social security numbers, personal information that should not be shared with the public could lead to identity theft, and so on. we will make those documents available. i want to go on record explaining the tens of thousands of pages th

i think citibank was the one that we're interested in happening next. we've got to figure out what the u.s. government is going to do. >> i would imagine the option activity is not very active. citi is only a $4 stock. >> it's a $4 stock but the markets are only a penny wide, so you've got professionals getting in there, trying to make something happen. but dan talks about the markets rolling over this morning. that's not entirely unexpected. we had seen the s&p example didn't want to be away from $1100. we have seen that before. everyone wants to take their ball and go home for the year. but as far as financials are concerned, bank of america has shown the way out for second-tier names. >> they' shoun shown it. here's what i'm focused on right now, the second-tier names have this road ahead of them. the first tier names, the low-hanging fruit has been picked off the march bottom. those stocks are up 70%, 80%, 90% year to date. so the second-tier names is going to be a hard one. you're going to have to roll up your sleeves and figure out how these guys

>> we don't know if it was citibank but we do know that some large bank was hacked this summer. to stop it is relatively hard because these are very skillful criminals. they've taken weeks if not months to prepare. >> brown: how do they fit into this larger universe of hackers or thieves? i mean is this world expanding or are people getting more sophisticated? is it, in fact, a range of sophistication from amateurs up to real professionals? >> you know, i don't even worry about the amateurs anymore. the top of the league are nation-states. countries that are hostile to the u.s. and engage in cyber espionage. fabulously skillful. lots of money. second tier are the sort of high-end cyber criminals we've seen in these bank incidents very often from the former soviet union. also very skillful. not as good as the big countries but up there at the top of the league. it goes downhill from there all the way down to some kids. but one of the problems we have is that it's getting easier to do this. if you saw the story last week about someone, an insurgent in iraq, who bought some off-the

we share the view and we think our members do as well that citibank does. they'd prefer not to have money out of their accounts and get $20 or $5 for a cup of coffee. and so we have had no complaints. >> you don't have the technology mr. carey talked about that someone is notified that they would be overdrawn but still has the option to be overdrawn and pay the fee in case of emergency? you don't have that technology i assume yet? >> that's correct. and we reject if you do not have available funds. >> do most -- would you know if most credit unions around the country have the policy that you have or do credit -- or other credit unions more likely to mimic pentagon credit union or are they likely to mimic some banks that do this? >> it's probably 50/50. roughly. >> is it the larger credit unions likely to do it? the smaller ones? >> the larger ones are less likely to charge a fee in this -- in the house meeting, the second largest credit union showed up, which is north carolina state employees, they do not charge fees either. so i think the larger credit uni

i mean, what's much more dominant is, you know, chuck prince the former ceo of citibank who famously said, well, when the music stops, i'm paraphrasing now -- he said something like when the music stops it's going to be ugly. there's going to be a reckoning but when the music is still playing you got to get up and dance because the citibank shareholder is going to have a hard time, you know, accepting that you're leaving money on the table that's there for the taking. while, you know, this momentum investing thanks to easy money and believing in these fantasy is going. people made a lot of money in the tech bubble buying stuff they didn't understand but didn't pencil up and went up. >> but there are some people and i'm specifically thinking about, for example, college endowments where there is a security, a safety aspect involved. in fact, there are a few college endowments that did much better than others in the crash because of their philosophy. but what i don't understand is why there weren't any groups even though they plainly had warning of it because they were like schiller was

and he says before long, the past books on the home savings and loan, federal dollar and citibank sold as low as $0.40 on the dollar. prices were quoted every day in the newspapers and the sales were made mostly through regular brokers. many bought real estate at foreclosure and from the banks. pay for it in past books that they had purchased at a large discount but they got 100% credit. and in the book he says that he did not object to being paid legal fees with past books, as long as they were on the bank that held the mortgage on our home. because he would take in at $0.50 on the dollar but when he took it to the bank they would have to give him full credit. july 1932. and as i am reading these little excerpts, compare it to what's happening today. quote, one of the tragedies of this depression is the fact that young college and professional school graduates are unable to find jobs. some have been looking for work for two years. others are driving bakery trucks or working as clerks in stores. also, throughout this entire time, and bear in mind, here is a sole practitioner trying to

citibank, while cobia, not those things did get us into a lot of trouble, but bear stearns, bear stearns, aig, these are outside the banking system. the money market funds. they pose the same threat that conventional banks did. so that's why the president is proposed and most of the people who don't agree with the president on the specifics that you need a broader thing. the financial system has to be regular. we understand why that is. both of us to. and we can't set up a system where people go around and say i'm going to shop for a regular and constantly put the regular against a. suppressant has chosen not to smoosh all this together into one agency unhittable if you try to make it less attractive to banks to shop around. and finally, banks and have more capital than they had coming in. capital is cushioned that the shock of door where you take your losses so you don't have to go by grubbed or on bid me to the government. we have to find a way to make sure the banks have more capital, they have better shock absorbers. >> my question is a little bit broader. in a sense it's more cultur

today fewer than 20% of citibank customers are charged even one overdraft fee a year. those only if you are charged more than once annually. we think the reason for this is because we declined atm and debit transactions when the funds are not available. well we have concerns, we fully support the goal of protecting consumers from unnecessary overdraft fees. we support the additional efforts to improve consumer awareness regarding overdraft protection and alternative payment options. moreover we agree banks should provide more transparent and easy to understand disclosure so that consumers can better manage their own money. we believe in the importance of giving consumers the ability to make choices based on their individual circumstances as they manage their finances from one day to the next. that is why we believe there are opportunities for reform to provide consumers with even greater choice and control related to overdraft fees. of course most consumers do not overdraft and never will. still consumers may not fully understand the effect of opting into four out of o

citibank and any other bank's panama >> i know they had a sub prime package. i am not sure what they did with it, but they said they would use the subprime package, right around the time they started seeing the first cracks in the housing vogel and acorn said they wanted to be there when it occurs. >> never pass of an opportunity. i want to thank you for the work you are doing. i want to make sure we make the record complete as much as we can. attorney general's are welcome to work with us on this as long as we throw out personal information that should not be shared public. we will make those documents available. i want to go on record saying the tens of thousands of pages we took from california we made sure that a complete copy was given to the attorney general's office and that the originals are here in washington and available. anyone who wants to go through them in -- we will make these available as long as we have this flow you can achieve digitally. we want to make sure we lead to a full understanding and an end to this practice in every state. at the

no more will we let consumer protection take a backseat to the bottom line of bank of america or citibank. the age of the bailout is over. last fall americans lost the ability to deal with corporate greed. we cannot let them down. i urge my colleagues to support this bill. i yield back the balance of my time. the speaker pro tempore: the gentleman's time has expired. for what purpose does the gentleman from pennsylvania rise? mr. pitts: to address the house for one minute. the speaker pro tempore: without objection, so ordered. the chair recognizes the gentleman from pennsylvania. mr. pitts: thank you, madam speaker. all too often we come to this floor to talk about problems in the country. today, however, i want to mention some good news about the future of america and the next generation of patriotic men and women. in my district this year applications to the military service acad meese increased by -- academies increased by 30%. today's youth more than ever are looking to serve our country and our academies are among the finest universities in the world. while it may seem counterintuit

front page of "chicago tribune" on gitmo -- also this morning in the money section of usa today -- citibank and wells fargo announced plans to repay the bailout funds. host: that is the headline this morning in many of the papers this morning about president obama's meeting with bank ceo's. also, aig confident of repa ying aid. joining us on the phone right now is the managing editor of cq. we have been getting our viewers' reactions. give us the back story. guest: harry reid, the democratic leader in the senate, has tried to shop proposals to deficit. both said he needs. he tried two plans to incorporate this health bill that they're considering th. he found a note that he did not have the 60 votes for either of these. at a meeting yesterday afternoon, they came to that realization. now they will have to come up with yet another compromise. they're going to the white house to talk to president obama. host: says in the newspapers that senator joe lieberman will be at the white house meeting. guest: he threatened to filibuster any bill that had a public plan. he announced figures opposition

it was with the citibank subsidiary protected over the summer.his may have occurred up to a year earlier. the hackers are connected to a russian cyber gain. citigroup denies the report. president obama said fiber crime is the most serious economic challenge we face as a nation -- or one of the most. he is announcing the appointment of an executive at the fiber security coordinator for the government. that is some of the latest headlines on c-span radio. host: the senate continues to vote on health care legislation this morning. joining us now is a republican of wyoming. put your doctor hat on. what is good in this bill for doctors and what is bad? >> thanks for having me. i wish i could be in the studio with you. we are adding three roll-call votes. they are in the middle of the third. my name is at the top of the alphabet so i voted quickly and ran over here to be with you. i practiced medicine for 25 years, taking care of people in wyoming. the doctors will tell you that there is no dealing with a lawsuit abuse in this bill. the number one plac

the big banks seem to be getting their act together, some more than others but as i say even citibank is raising capital privately and the concern is moved to smaller banks and midsize banks that have loans in commercial real estate which is collapsed and that means they are taking big losses and we've lost 130 banks so far. most of them but not all of them small and we are probably going to lose more but. these are institutions that lend to businesses who don't have a lot of options for getting money. very big companies if the banks won't lend them money they can sell securities on the capitol markets. but small businesses and medium-sized businesses often can't and i think where it is particularly in to visit you've been a longtime customer and a bank goes under or is sold to somebody else even if you are a good credit the new bank cannot understand what you do and may be reluctant to sell money. >> host: and infield bank is on the edge they are pulling back your credit even though you've done nothing wrong. >> guest: that is a problem and you know better than mine because i heard y

some more than others but as i say even citibank is raising capital privately and the concern is moved to smaller banks and midsize banks that have lots of loans and commercial real estate which is collapsed and that means they are taking big losses and we've lost 130 banks so far most of them but not all of them small and we are probably going to lose more but more seriously that these are institutions that lend to businesses who don't have a lot of options for getting money. very big companies of the banks won't lend money they can sell securities on the capitol markets. but small businesses and medium businesses often can't and i think where it is particularly important is if you've been a longtime customer at the bank goes under or is sold to somebody else even if you are a good credit the new bank may not understand what you do it may be reluctant to lend you money. >> host: if it's on the edge it is pulling back your credit even though you have done nothing wrong. >> guest: that is a huge problem and i know that you know better than i because i heard you talk about it, the recess