um, look at cupwide, look at bank -- countrywide, look at bank of america. it's in trouble now because of its lending practices. >> yeah. i mean, you also have to remember that the mortgage-backed security, well, the residential mortgage was the lowest-risk asset. from a capital perspective. okay? >> and that's a big party of why the banks went head first into this, why they leveraged it, why you took mortgage-backed securities, and then when you didn't have natural buyers for them, you took the tranches and bundled them into collateralized debt obligations and then multiplied that further and further. and if you look back in the e-mail files even of the financial crisis inquiry commission, one of the things that you find is that there were other institutions that would have gone down because they retained risk which is one of my biggest problems with dodd-frank is you've got this risk retention rule which essentially says we should have these institutions retain risk on the notion that, certainly, if they have to drink the poison, they're not going to feed

look at countrywide, look at bank of america. it is in trouble now because of its lending practices. >> you also have to remember that the mortgage bank security, the residential mortgage was the lowest risk asset permit capital% to, okay. that is a big piece of why the banks went headfirst into this, why they leveraged ecmo why you took mortgage-backed securities and when he didn't have natural buyers for them, he took the mess tranches and bundled them into my leveraged instruments, collateral is debt obligations multiply that further and further. and if you look further in the e-mail files, one of the things you find is that there were other institutions that would have gone down because they retained risk, which is one of my biggest problems is you got this risk retention which essentially says we should have institutions retained risk on the notion that certainly if they drink the poison they will be to others. the reality is institutions often didn't realize that they were serving up was poisoned. and so what you saw was in

. >> given the situation in which they found themselves post the acquisition of countrywide, i think this was a good deal to put these risks behind them. >> reporter: bank of mesh will pay just pennies on the dollar to investors who bought the soured mortgage securities. but the bank isn't out of the woods yet. as analyst this analyst explains. >> there are a lot of overhangs, you know, this was the result of about half of their private label putback exposure, everything that was related to countrywide, everything that was related to bank of america is still out there. there are still lawsuits from the bond insurers,. >> reporter: bank of america's settlement is likely to pressure other big banks to resolve similar complaints. here at j. p. morgan, wells farg oh, citigroup and others ralied today. >> bank of america will probably end up spending more than some of the other banks in terms of percentage of past original nation. but it definitely sets a press deb for future settlements with other banks. >> reporter: but that's not the only hurdle banks are facing, they are also negotiat

this all stems from its purchase of countrywide financial back in 2008.beefed up its loan portfolio just before the housing market crashed. it will be a business first test of brian moynihan. bank of america is down 18%, but up in pre-market. >> we will follow that all day. and the minute we have this confirmed, we'll deal with. chris christine, i'll see in you half an hour. >>> geeks rule the world and this is why. now forbes pushed mark zuckerberg ahead of the google guy. according to forbes, zuckerberg now worth $18 billion, with a b, dollars. that after wall street maneuvers. google is now only worth about $17 billion. yeah. just worth $17 billion. and i had take second prize in that contest any day. back to our businessman's special. my space, you can get it for a deal if you want to buy it. it's a former social media giant. according to the "wall street journal," news corporation, which "wall street journal" is owned by news corporation, it's just about ready to sell myspace. the original price was $100 million. according to all things digital, the

remember, bank of america bought countrywide. countrywide itself had issued the mortgages.ty stuff xured. i want to know what countrywide was saying about the quality of the mortgages, whot borrowers were, what fraud was going on when they were selling the mortgages that led bank of america to kind of throw p up and say, we're guilty, we've got to pay the investors who were sold these collateralized debt obligations and all the other high-tech stuff. we sold that to them with misrepresentations about the kbault quality of the debt. i want to see what the misrepresentations were, who knew about it because that should also lead to prosecutions. remember, there have been virtually no prosecutions of people involved in the sale of this stuff. i want to see what documents there are that indicate who knew what, when, and why about how ugly this stuff was and how much fraud was committed. >> what else can we see in "the arena" tonight, 8:00 p.m. eastern? >> an exciting evening, we've got david stockman, president reagan's budget director. incredibly smart. he called the republican

bank of america rose after it made a tentative agreement to settle $8.5 billion in claims against countrywideinancial, the company it took over during the mortgage meltdown. >>> french finance minister christine lagarde has been named the first female head of the international monetary fund. >>> news corp is reportedly looking to unload the struggling social network myspace. meanwhile, google has launched its own social network google plus. so far only a select group of google users have been invited to join. >>> this morning's "wall street journal" reports some surgeons who receive tens of mills of dollars from medtronic failed to report serious complications in their clinical research of the company's bone growth protein infused. medtronic's ceo stands by the research. >>> johnson & johnson is recalling 60,000 bottles of tylenol extra strength caplets for a musty, moldy odor. >>> our sister network cnbc has named virginia america's top state for business. >>> finally, parents flying on malaysia airlines may need a sitter. the carrier has reportedly banned babies from first class cabins. >>>

bank of america denied those claims and bought countrywide after the fact in 2008 for $4 billion.for the settlement to take away any financial instability in the future and uncertainty about whether or not what would happen to the bank. also word that zynga might file for its ipo today could potentially raise as much as $2 billion which would place a value of around $20 billion on the maker of farmville. zynga brought in $850 million in revenue last year. let's see how the markets are reacting to greece. right now the dow is up by 29 points. really it was expected that vote. the dow had back-to-back triple digits gains nasdaq up as well as the s&p 500. >>> thank you, jason brooks with kcbs and cbsmoneywatch.com. >>> he hasn't been on the job for quite a while now and his image is tarnished by scandal but golfer tiger woods has a new endorsement deal. the agreement with a pharmaceutical company in japan where he will appear in ads for adhesive patches for muscle pain. he hasn't been on the tour recently because of injuries and they miss him in a big way. always fun to watch. >>> we

we keep going back to the same argument that we're seeing the exit of post-vietnam hires countrywide. so when we're talking about 580 people that can go into this program, all we're doing is we're kind of trying to keep 200 to 300 people around for awhile. but the hiring of new cops is inevitable. this is something the city will have to deal with, regardless of whether the drop is renewed. supervisor wiener: can i ask the controller to respond? if you want to. >> just a general comment? supervisor wiener: the opposing point of view has been articulated. i am curious to know what the controller thinks. >> we're dealing with a limited sample size, and that point is fair. that is made clear in both our report and cheiron's report. we're fundamentally trying to evaluate a pilot program based upon three years of data and a limited set up participants. the judgment relies on whether you think the program is keeping people launderer or whether it is encouraging people to retire earlier. it is always going to be very complicated to determine when you're looking at what someone's retirement da

. >>> a conference on fighting terrorism is going on this weekend in iran, a countrywidely viewed to be a state sponsor of terror. iran's president met yet in tehran with counterparts from afghanistan and pakistan. in public comments, they talked about cooperation among muslim countries in the middle east. >>> next week, the greek parliament will vote on a $40 billion austerity plan. a yes vote will ensure greece will receive another round of emergency loans to avoid defaulting on its debt. so if those cuts are not passed, economists say a greek default could wreak havoc on europe's banks, sending the euro tumbling against the dollar. that would hurt u.s. exports by making american goods more expensive for europeans. >>> in north dakota, the city of minot is bracing for more rain, as a major river hits its high point this weekend. the souris river has already flooded homes and businesses. more than a quarter of the 40,000 people who live there have already been evacuated. >>> around here, looks like kind of a spring-like weekend, huh? >> more like summer actually. low clouds and fog

was not just the government, it was countrywide and other private players. but we needed to scale them back some. was clear that we have these negotiations about this budget, everything is on the table. noaa to say that mortgage interest deductions for the second home, for the vacation home, you cannot touch that. then the negotiation would not succeed. we also need to think about timing. when the housing market is still struggling, it is not the time to do something that might make sense to do three years down the road. you have to be very careful about tinkering with the market still flat on its back. host: what is your view on fannie and freddie? guest: they should end up being a small sliver of their former selves. a lot of americans like the 30- year fixed mortgage. they want them that are affordable, we're going have some kind of government assistance. the 30-year fixed mortgages not a creature that exists in nature. my belief is that fannie and freddie should be completely revamped into very thin agencies that do targeted missions for very well on rec

though, i have to say countrywide, russia gets the majority of fresh vegetables from countries like china, from countries like turkey as well. it's much more significant, though, in terms of what the european do because some 25% of all the fresh produce exported from the european union goes to the russian markets. so, it's a major economic blow for european farmers who depend very much for at least a quarter of their exports on russia where their fruit and vegetables are now banned. >> matthew chance, thank you, reporting from moscow. >>> you're watching "world one" live from london. >>> coming up, a string of deadly tornadoes strike the u.s. state of massachusetts. we're going to bring you the very latest on the rescue operation. [ male announcer ] the inspiration for its shape was an archer drawing his bow. ♪ could that have also inspired its 556 horsepower supercharged engine? ♪ the all-new cadillac cts-v coupe. we don't just make luxury cars, we make cadillacs. now use the best suncare recommended most by dermatologists. neutrogena®, with technologies like helioplex... it provides the

. >> brown: and the assault by syrian forces on civilians extended countrywide today, as troops fired on demonstrators after friday prayers. there were large protests-- in daraa, where the uprising began; in idlib, in latakia, in homs, and, notably, thousands marching in the capital, damascus. witnesses reported syrian helicopter gunships opened fire on crowds in one town. in washington, state department spokesman mk toner said that kind of brutal response is dooming the assad regime. >> it's really assad who's been shedding his legitimacy through his actions. he has refused to reform, refused to even make any gestures toward reform other than empty rhetoric. he's got to, again, either allow for the transition, help the transition take place, or get out of the way. >> brown: meanwhile, a move to denounce syria at the united nations remained in doubt due to russian objections. >> warner: still to come on the newshour: tough talk about nato; victims of the iranian regime; shields and brooks; and leaking classified information. but first, the other news of the day. here's kwame holman. >

the former chief executive of countrywide. and then at any final list is sectless regulators. list tim geithner who is now the treasury secretary. why do you describe him as a sectless regulator? >> well, don't forget as the head of the federal reserve bank in new york, he was charged with overseeing citi bank and other large institutions in new york. and that was one of the major colossal failures of the regulatory era leading up to the crisis, because citi bank of course took on enormous risks and then had to be assisted by the taxpayer in 2008. so he was just one of the people who really had a kul chir of collegialty, collaboration with the very institutions. this goes back to the list at the beginning which is we're going to enlist our collaborators. so the reserve was a quintessential example of that. mr. geithner, seemed like he was really in the mind's medal of the bankers. it was not a questioning relationship. it was not a typical what you would consider to be policing relationship. so it really is his years at the new york fed that caused him to be on that particular

if we go back, we can look at countrywide, for instance, what happened was they had a lot of money come in from china. they needed to sell these bad loans. they were incentivized to sell these bad loans to people so they could take those loans, bundle them up and sell them in the securities market. now, banks had standards simply so they could protect themselves from risk on their balance sheet. once they're allowed to sell these loans that they were issuing now, countrywide would issue, a bad loan and sell that same loan in the market, now, once they sold that loan, they got it off of their balance sheet, it's no longer a risk, which means that any loan that they issue, they couldn't care less whether the people paid it back, because they were going to sell it to somebody else. >> that's right. that's why these rules are aiming to get industries to have some skin in the game, meaning they have to retain some kind of stake in these loans, and the idea being if they retain a list, they're apt to make sure. you're right. the problem is getting the details right. i think even some of the r

some of these issues were local, city, government, and some of them are countrywide. my priority was the issues which have a bearing on the largest sections of the syrian people. they have precedence over local issues, important as they are. citizens expressed anger mixed with blood and a sense of blame mixed with loyalty. they felt that their state had been -- had distanced themselves from them by adopting certain policies are getting involved in certain practices. i sense that their separate was multifaceted, part of it related to services, and part of relating to undermining citizen dignity come under mining their views, of which they are the object of any substance. i also felt the love of these people or the sincerity, pride, the strength to proceed with political responses, the resistance and noncompliance. as for corruption in, i felt there was a strong desire to eradicate it as a major cause for the lack of justice and equal opportunities and for the feelings of unfairness, and justice, and oppression. in addition to these dangers moral consequences of our soc

countrywide would have been subject to the same as national banks. these are important changes. i appreciate this acknowledgment. both of all things in this bill and as he notes would have lessened the likelihood of those institutions that were major failures and apply some of the restrictions. all the restrictions in the bank system to the regulators. this is where the shadow bank system came in. he also on page 5 talks about what we did in terms of resolution in large institutions which i believe should be called disillusion. the united states -- most countries have no plan to order the resolution. some said their banks should be bailed out should a crisis occur. it is very clear from the context, this is not a case where he is complaining that america is different from the rest of the world, it is a case where he is boasting. page six, he has a heading further insulation for taxpayers. he said aside from increasing the risk, dodd frank -- on taxpayers. so mr. zubrow, i thank you for that. and we have some differences but i think we ought to be clear where they are. it goes on

the second problem was crony capitalism and companies like aig and countrywide. there was an implicit guarantee that if you made a bad bet, the federal government would bail you out. we've doubled down on that with president obama's financial reform bill. the federal government now has this unhealthy relationship with companies like a edgy that should not exist anymore except that the government bailed them out. moneylet's look of the freedomworks has raised over the last couple of years. in 2010, nearly $14 million. where did the money come from? guest: it is probably reflective of the growing power of the internet. we now have over 40,000 donors. almost all of them are individuals. half of them come from our online community. the all share our same values. i think there is an opportunity to really connect like president obama did in the 2008 primary with citizens all over the country that will fund something based on principle. host: what is your assessment of the republican leadership? guest: i think in the house and senate i have seen great movement in the ri

some were countrywide.iority was to issue a clear bearing on the largest sectors of the syrian people. and presidents over local issues. important as they are. this has expressed anger mixed with love in a sense of blame mix with loyalty because they felt that their states had distance itself from them by adopting certain policies are getting involved in certain practices. i sense that they are suffering was multifaceted. part of it was related to services in living standards and some related to undermining citizens dignity. ignoring their views or excluding them from participation in development processes to which they are subject to and substance. but i also felt the love of these people. they have always given me the sincere -- sincerity and steadfastness, steadfastness and the strength to proceed with our political -- and resistance in noncompliance. as for corruption, i felt that there's a strong desire to eradicate it as the major cause for the lack of justice and equal opportunities and for feelings

much of the shadow banking system, countrywide, all of those companies, they disappear off of the facef the earth. as they come back, there will be much more regulated. having not been in the banking industry for a while, one of the things i remember is if we kept complaining st. listen, these other guys are doing stuff we cannot do, making money at it. they are also taking risks that we could not take. what was interesting is that the banks were buying back better risk in its entirety. i think there really is a balance between ben bernanke -- ben bernanke stressed it well, we do not want to over rate -- over-regulate, but not under- regulate. whenever markets and not transparent, that will be a problem. the function of government should be to make markets more efficient, and at times that means regulating. that is one thing people have to get the balance on -- what is the right balance of oversight. you cannot stop fraud, but you would like to minimize the incentives. host: our guest is the chief economist for mesirow financial. but me ask you to respond to another headline -- let me

pakistan is a countrywide with contradictions that simply tries americans to enormous frustration. though we have no choice but to continue on the path we're on, which is to engage with pakistan to try and make the civilian government stronger and the obama administration has doubled down on most of the assistance tripled in one year between the reimbursements in standard deleterious distance running about $2.5 billion a year. in my view, we had no choice but to continue those projects and continue to engage the pakistani leadership. i would take issue with your statement for opposition to military relationship has not went through because i think what pakistan is again a country of immense frustration, they've also been our partner in the counterterrorism more than many unhealthy excesses. i'd like to make one final point about the way forward with pakistan because i think americans underestimate how much influence india has on pakistan and on its relationship with us in on its with afghanistan. it is hard to underestimate the economic cloud and particularly its international pres

the second problem was crony capitalism and companies like aig and countrywide. there was an implicit guarantee that if you made a bad bet, the federal government would bail you out. we've doubled down on that with president obama's financial reform bill. the federal government now has this unhealthy relationship with companies like a edgy that should not exist anymore except that the government bailed them out. moneylet's look of the freedomworks has raised over the last couple of years. in 2010, nearly $14 million. where did the money come from? guest: it is probably reflective of the growing power of the internet. we now have over 40,000 donors. almost all of them are individuals. half of them come from our online community. the all share our same values. i think there is an opportunity to really connect like president obama did in the 2008 primary with citizens all over the country that will fund something based on principle. host: what is your assessment of the republican leadership? guest: i think in the house and senate i have seen great movement in the ri

bank of america's countrywide unit reached an $8.5 billion agreement with investors to settle claims investors sold poor quality mortgage-backed securities that went sour during the housing collapse. the bank says the settlements is still subject to court approval. greece's lawmakers just approved a key austerity bill, paving the way for that country to get its next of vital bailout loans. the unpopular five-year package of spending cuts and tax hikes were backed by a majority of the 300-member parliament. britain that a foreign secretary says libya's cash strapped opposition received donor funds to pay salaries to public-sector workers in rebel-held areas. he told lawmakers that a first payment of $100 million and international aid money has been made to libya's main opposition group. group. secretary of state clinton has begun a four-day trip to europe to support international human- rights and democracy. right now she is on her way to hungary where she will on of grade a human rights center named for a former california representative. he found it converts's human- rights caucus.

pakistan is a countrywide with contradictions that simply tries americans to enormous frustration. though we have no choice but to continue on the path we're on, which is to engage with pakistan to try and make the civilian government stronger and the obama administration has doubled down on most of the assistance tripled in one year between the reimbursements in standard deleterious distance running about $2.5 billion a year. in my view, we had no choice but to continue those projects and continue to engage the pakistani leadership. i would take issue with your statement for opposition to military relationship has not went through because i think what pakistan is again a country of immense frustration, they've also been our partner in the counterterrorism more than many unhealthy excesses. i'd like to make one final point about the way forward with pakistan because i think americans underestimate how much influence india has on pakistan and on its relationship with us in on its with afghanistan. it is hard to underestimate the economic cloud and particularly its international pres

you know that countrywide and others were big part of the issue that led us to the financial crisis. we now have the authority sound to create servicing standards. it will also push the banks in the settlement to help existing homeowners stay in their homes, to accelerate what they're doing around modifications and principal reductions, so that we could really get some teeth into not just helping future folks, but current folks wrong by the practices that we have found. we're very focused on that. i hope that we will have an announcement on that. >> we're going to go over here. >> i'm from salt lake city. thank you for joining us here today and for coming to salt lake city and looking at our work on homelessness and housing, as well as the grant to look toward the future developments in the quality of life in our region the will allow us to take a giant step forward. we thank you for that. our businesses are facing a challenging time. we have seen that reflected in terms of reductions in community development, block grant programs, and other programs that really unable our residents

countrywide and washington mutual would have been subject in the same write standards as national bank and would have been significantly limited in making subprime lopes or required to retain risks of the mortgages, and the charming would have been gathering data. these are important changes. i appreciate the acknowledgement of things in the bill, and as he notes, would have substantially lessened the likelihood of those institutions that were major failures, and he notes apply some of the restrictions, all the restrictions in the bank system to the unregulators where the shadow bank system comes in. he also on page five talks about what we did in terms of resolution of large institutions which i continue to believe should be calls dissolutions, a euphemism too far. what he says in summary of listing these is the united states is ahead of the rest of the world. the fdic's new authorities are already in place. most countries have no plans for orderly resolution and acknowledged their banks should be bailed out at taxpayer expense should a crisis occur. we're doing the hard work of makin

countrywide of course, was not the only lender that appears to have targeted minority borrowers. a recent lawsuit against wells fargo over loans that it made in tennessee shows the foreclosure rates were almost 18% or five times the rate of predominantly white city neighborhoods and five times those of county neighborhoods. according to a statement from of credit officer officer, mario taylor cited in a lawsuit, the prevailing attitude was african-american customers were not savvy enough to know they were getting bad loans we had a better chance to convince them to apply for the high costs loan. of course, high-cost loans make it that much harder to build up equity in your home which has been the biggest source of wealth for many people over the years. and these punishing loans increase the odds of foreclosure and a study by the atlanta constitution found african-american neighborhoods have foreclosure rates higher the majority white neighborhoods. that is because african-american borrowers were more than twice as likely than those of caucasians. it gives a whole new meaning to t