fannie and freddie were a partner in that, and as much as fannie and freddie were at odds in many ways with the investment banks in the private market, they also had a partnership with them. and so what you saw was fannie and freddie by 2000 was innovating low down payment programs, was innovating the move from traditional underwriting where you would walk into a bank in your community, you'd look that banker in the face, he would look at your credit history, he would look at your employment hu ri, he would -- history, he would look and think about the regional economics in the community in which you were borrowing and where your loan was, and he would make a loan decision. we could move to automated underwriting. we could move to automated appraisal processes. we could really change the structure and the dynamics of the housing and mortgage finance system. and they did. and we're here. and so even now as we're watching the discussion about, under dodd-frank there's a rule on risk retention where any securitizations the issuer and/or the originator are supposed to hold proportionally 5

before jim johnson came to fannie mae, it was sort of a sleepy utility.was a company that was designed, as you know, back in 1938 to provide liquidity, by the government. to provide mortgage financing disease a buyer. it was difficult to get a loan, then phan and freddie mac would be there. that changed dramatically in 1991 when mr. johnson came to fannie mae, because he understood at that moment in time. we had just been through the within the fannie mae and fred 23re7979 that the taxpayers would have to shoulder. so they decided to go act having this legislation to -- set up to protect those ewho with suffered from those losses. what was -- it was crucial to its success and crucial to its profitability. he wanted to protect that. at all costs. and so it became a political animal. it had been a utility. it became a political animal. that meant he had to make donations to congress and set up offices around the country where he could set up things like ribbon-cutting ceremonies. had the foundation promote this by paying for advertisements for homeownership

they were visited by fannie mae executives. juno neal, who was ahead of cbo at the time said she felt like they're being visited by the mafia. she was pressured to try to water it down, not to produce this report is very explicit but how much the guarantee was worth to the company and how it all cause they have to protect it. so we have cbo people who were standing up against the pressure from fannie mae. other people saw what was coming. people in the georgia area, who were first to wave the flag and call a rating agencies for inserting themselves in a process, where georgia had the most -- toughest predatory lending law in the country, but the ratings agencies want in and said we will not rate any securities that contain georgia loans. and so, all of that predatory lending had to be guided because the ratings agency said they would not rate those funds. we are people on the way jumping up and down in morning. so there are some heroes in the book. i'm glad you said that. >> you make a very strong case for the central role of h

it meant more money for fannie mae. and what he understood what he had to protect that at all costs. and so it became this ry politically driven machi that was all about protecting the subsidy. protecting the government backing. and then became such a drive that it was no longer really about homeownership. it was about ballooning the balance sheet, expanding into other businesses. gring the earnings so that, in part, he and his executives could take even more money out of the company than they had been previously. under jim johnson, the amount of money that went into the executive coffers rose dramatically. so it's a man who understand that he had a golden goose that was laying golden eggs and he uld wrap it in the flag of homeownership, allow the thing to grow. he was adept-- very adept-- at manipulating congress, making sure that he had friends in congress to protect the government subsidies, to protect the government relationship. also extremely good... >> rose: but everyone does that. >> everyone does thatow, charli

host: us talk about housing policy and fannie and freddie policy and fannie and freddie for you have a proposal to eliminate them, but put in place something very similar. guest: it is not very similar. there are many significant differences. this is a housing finance reform bill that has been introduced of bipartisan bill myself and jerry peters, a democrat from michigan. we're proposing to eliminate fannie and freddie, the two thatsedly so-called gse's are making 95% of all loans. if that system failed, the government to come over in late 2008, they are now a wholly- owned subsidiary of the government. we're proposing is a completely different system. it is system whereby there will be a government guarantee, because without some form of a government guarantee, you will not have a 30-year fixed rate mortgage. an america that our housing is built on 30-year fixed rate mortgages. that is how the vast majority of americans have bought their homes. we are unique in the world having that system. having that system. in most countries, they have five-year loans or 15-year loans. which mea

but the debate right now unfortunately is to have fannie and freddie as fannie and freddie or to have the mortgage banks as the next fannie and freddie? and so, i think really the question is should either of those groups be the mechanism for social policy deliver osha there will be nothing more than mortgage market structure, financial market in the years. and the likelihood is that fannie and freddie at this point are going to come out the other side it seems, not with the same names, not with the same structure, but i think that some of the franchise i would be retained. it's still unclear as to what manner. >> thank you. >> thank you very much, gretchen and josh. [applause] >> is there a nonfiction author or book you would like to see featured on booktv? send us an e-mail at booktv@c-span.org or tweet us at twitter.com/booktv. >> talk about the experience of two americans in china during the mid-20th century. lynn jorde is the author of "honorable survivor: mao's china, mccarthy's america and the persecution of john s. service," and lawrence kaplan is the author of "homer lea: ame

fannie and freddie might be profitable at the end of 2012 may be in 2013. there's a dividend they might in the treasury. the pressure to bring them out of conservatorship. they have patented the mortgage business over 40 patents now and continuing to get patents so they've patented the mortgage, everything from the mortgage application process all the way to the securitization. in a lot of technology and information on every single homeowner in the country. i guess i'm asking what this be put in the public domain along with the information technology and are we going back to business as usual? >> well, so there is a great divide right now in washington between those who are afraid if we wait too long to address it and wait until after the presidential election there's going to be a push because they are profitable just let's put them back out there, let's bring them back into the public market brough everything's okay for the regulation around the edge, and then you've got those saying let's get rid of them. i actually am agnostic. there is value to the fra

however, when the program was announced two years ago, fannie and freddie said they expected to help between three and four million homeowners. >> tom: here's what we're watching for tomorrow: federal reserve chairman ben bernanke will be in atlanta talking about the u.s. economic outlook. and the fed reports on consumer confidence for april. also tomorrow, our "word on the street" is "backbone." we'll look at three storage and web traffic companies that power social media giants like linkedin and groupon. another guilty plea in the bernie madoff ponzi scheme. former madoff payroll manager eric lipkin pleaded guilty today to several charges, including conspiracy, bank fraud and falsifying bank records. investigators say lipkin pocketed about $9 million through phony stock trades. he's the third person in the case, other than madoff, to admit guilt. lipkin faces up to 70 years in prison. in another new york city courtroom, former international monetary fund chief dominque strauss-kahn pleaded not guilty. strauss-kahn is charged with the attempted rape of a maid at a manhattan hotel. h

fannie mae was a wonderful lobbying organization. they did a wonderful snow job on the congress of the united states. there's a book, "all the devils were there." basically, they do wonderful lobbying. they talk of congress into a lot of things. the cost of the united states government over $100 billion. one of the most expensive transactions in american history. mr. mudd has now come to san francisco and he is going to bless us some more. my advice to you is -- let the buyer beware. you were going to get stuck. you are not going to like the results. in vancouver, they did not like the results of fortress. they lost river tonight in new york. you are going to get hurt. i'm sorry to say that. what's happening at parkmerced -- they've gotten rid of garbage collection at the doors now. it's bad management. it's the worst we've ever had. we've had bad management in the past. the current management at parkmerced is the absolute worst. they do not collect garbage of the doors anymore. supervisor mar: thank you. i'm going to call the last r

and i think fannie and freddie are critical. remember fanni and freddie have originated about 90% of new mortgages over the past year. and they've been qui reluctant to do any prcipal write-downs so i actually think, and you don't necessarily need legislation for this. you need some regulator nudging. and i think putting some pressure on fannie and freddie to get into the principal write down business like many of the others are saying would really help a lot. >> rose: go ahead. >> we ouldn't let this conversation in without talk being monetary policy. >> rose: that is where i was going. you readmy mind. >> that is the last thing, ong other things. the fed has more freedom of action than-- it's hard. >> rose: so we need a q3. >> q e3 for sure and i would like to see the inflation target raised. not permanently but a five year inflation target that is 4 instead of 2 and a de facto target seems to be 2 or less which is not what we want. >> iean it may not be the target but-- what is happening with-- not wages. >> this is going to

loans are owned or secured by fannie and freddie. and some smaller banks are refinancing homeowners with good credit and stable jobs as a way to boost future business. diane eastabrook, "nightly business report," chicago. well, we're off to eye good start for the week, right, tom? i mean a lot more positive attitude in the markets. and there were more stocks in the green than in the red. >> tom: and certainly after seven down weeks in a row, maybe some relief ahead of the july 4th holiday coming up a week today here, susie. let's take a look at the monday markets with tonight's market focus. it was a strong day of stock buying led by financial and technology stocks. let's start with a big jump in microsoft. shares rallied 3.7%. big rally for a big stock. volume was heavier than usual. nice rally here. tomorrow, the software giant has scheduled an event to make an announcement regarding cloud computing. that's the practice of using internet-based applications, software and services. microsoft is expected to introduce a cloud-based ver

none of these represent the scandal of freddie mac and fannie mac. they came out and touched in the so-called finance reform bill. no one knows even exactly what the law is or what those regulations will require. the impairment of protection agency is regulating carbon emissions, a policy rejected by the congress but puts millions of jobs at risk. the country doesn't support it, the congress doesn't support it, get the epa continues to try to advance that agenda. if these policies sound as though they were written by people who spend no time outside of government, that is about right. president obama political appointees have been notorious for their lack of private-sector experience. it is immoral to force working americans to hold down two or three real jobs just to afford the whims of the so-called experts who have never really had one. we don't need obama care to create a one-size-fits-all program. we need washington to allow allow a personalized market to flourish and meet the needs of individuals, patience, and their families. we don't need dod

the program announced today a joint program between the administration and fannie mae, designed to movento new mortgages. >> we are seeing the last of the may showers you will be in june showers. >> partly to mostly sunny skies, if you can believe that. we have a light breeze blowing in some cases from 10-15 miles per hour. a few scattered showers over areas in point reyes. temperature is very similar to yesterday. 58 degrees in san francisco. we have a few scattered showers east of livermore right about 55-57 in concorde. more on the way for your wednesday. northern california continue reading with light scattered showers and for the sierra, a winter weather advisory. what it will do is bring us to thunderstorms because this is where we see the most unstable and coldest air out of the storm could we have a few scattered showers possible and we began to dry out tomorrow. by the afternoon we will begin to see this move off to the east. we will be in and out with a few scattered showers. in any case we will have back against the rain will continue to follow at times. the wind will be betw

will they get rid of fannie and freddie? will it be totally different entities? will there be only one of them? right now, they're about 30% of the mortgage market and they need to shrink back to something like 10% so the administration has said that the goal is to shrink the role of these entities. and so the uncertainty that it's creating is really the problem right now. host: as far as reactions are concerned, what has been the reaction for those who represent consumers, those who are trying to buy? those who are looking to buy homes and might come under these restrictions? . . host: we're looking at issues in the housing industry. if you want to ask our guest questions, here's how you can do so. for republicans, it's 202-624-1115. for democrats, it's 202-624-1111. and for independents, 202-624-0760. email is journal@c-span.org. you can also send us a tweet, if you want @c-span scpanwj. our next caller is louis. caller: i think they really do need to tighten up on all this homeownership, especially people who don't have jobs and don't have good credit to start

we need to privatize fannie and freddie and remove the threat so their political slush funds can never again shrink our economy. we do not need elected officials at the epa to do what officials in congress have predicted. we need less epa monitoring of the economy and more of the epa's effects on our freedom and job growth in this country. i will require sun setting of all federal regulations unless specifically sustained by a vote of congress. under my administration, it will come up for a vote every three to five years. under my administration, national labor relations board's will never again tell an american company where it can and cannot do business. just as the federal government must break down barriers with our domestic markets, we must break down barriers with our international markets. congress should ratify the free trade agreements with south korea and colombia in complete the agreement with panama. we should start new bilateral talks with our trading partners and promote aggressively our exports all over the world. president obama set a goal of doubling exports, yet his p

with your brass neck cannot blame democrats. >> republicans were screaming from the rooftops about fannie mae. >> there was a republican president. why didn't he do something about it? >> he tried. >> for eight years? >> he did. but the point was it was democrats and barney frank and chris dodd. i haven't finished explaining. >> how can you blame the democrats for an eight-year regime which does nothing about it? >> push this politically or rather financially suicidal loans on the banks, literally allowing unemployment benefits to be used as collateral. those mortgages then get bundled into mortgage-backed securities by the big banks. they're spread throughout the economy. when the housing market tanks, that collapses, the entire economy. it is a fact -- >> why didn't your team do something about it? >> they did. greg man cue, the white house economic adviser, there is a long record, this is a boring subject. >> no, i like it. >> their eyes glaze over when you talk about mortgages. but i'll tell you, the republicans were screaming from the rooftop and i -- >> it is not a boring subject. i

bank of america, wells and chase to do a principal reduction but you can't do that if it is owned by fannie mae or freddie mac. >> why. >> you will have to ask the president. they are the most difficult to deal with. >> she was one of the first homeowners to walk away with, a 2.5 interest rate for the next five years. >> a absolutely to a problem i have been agonizing over for the last 5 years so that is a really big plus. >> this event is going on every day through wednesday. bring paperwork with you. for a link to the website, the organization hosting this, you can go to our website, ktvu.com. >>> live in san jose, allie rasmus, ktvu channel 2 news. >> arson investigators are asking for the public's help today to track down whoever is behind a string of fires in an antioch park. the park is located between palomar and yorkshire drive. fire investigators told us today they believe kids may be responsible for the fires and it could be connected to a rash of recent graffiti and vandalism, residents say they are concerned and just want the fires to stop. >> they are out fast. they are aware o

but the group can't help if the mortgage comes through fanny mae or freddie mac. those two are the hardest to work with. >>> unmany employment in the bay area fell in the counties shown here in yellow with rates ranging from 11.3% to 7.4%. unemployment fell 1.7% in monterey and .9% in napa county. santa cruz county lost ground with unmany employment soaring by 1.3%. >>> stocks closed mixed today on word that the greek debt crisis appeared to be stabilizing, only to be followed by the word that italy's bond rating could be downgraded. the dow closed up, the nasdaq fell. >>> a rare and thrilling sighting in monterey. a pod of killer whales swims into the harbor. >>> and code pink attack a republican candidate. the weapon, glitter. this time, it's in san francisco. >>> and you know that means cooler daytime highs rolling in tomorrow. i'll tell you how much cooler. [ chanting ] >> dozens of protesters marched and san francisco streets calling for an end to the nation's war on drugs. organizers chose today because it was on this day 40 years ago that president nixon ca

mark rilance won the tony twice that guy can do it all, his followup with fannie brice.orbert butz swept the floor, more awards than war horse. get a car for the horse and in the final analysis what survived tonight. theatre, because it's what we live, we are changing -- lives tonight. and theatre thrives because we live to give it, so to speak this ain't reality tv this is 8 shows a week. every chorus member that you saw tonight, had to make miracles happen ♪ for the chance to see you clappin' ♪ and applauding in the audience ♪ what's next, who knows? "anything goes." ♪ now go and see some broadway shows ♪ thank you good night. ♪ ( cheers and applause ) captioning made possible by cadillac, proud sponsor of the 65th annual tony awards captioned by media access group at wgbh access.wgbh.org ,,,,,,,, and among his people -- to ste . >>> new pictures and new troubles for anthony weiner the growing calls in his party and among his people to step down >>> a peaceful march in protest of messerly's release. >> and michelle le's family holding onto hope >>> new photographs, new

she will be really appealing, but that one could buy her in the -- bite her in the fanny. >> we are going to raise the debt limit, the spending cuts should exceed the increase in the debt limit. otherwise, it will serve to cost us jobs in our country. >> we are gwine to talk about that in a minute. house speaker john boehner after meeting in the white house with the president moody's warns that it could downgrade the rating of the nice if they don't increase the debt limit. what could happen, colby? >> we will face a serious problem in this country. there is only so much tim geithner 10 due to get us through this thing -- can do to get us through this thing. we could even see the stock market and bond market's collapse ultimately if we don't do this. this debt limit is -- only reflect obligations we have already incurred. up to $14.20 trillion of obligations. this is money that we owe. we have to pay on this. somebody said, a colleague of ours, it trivialized this by saying you can just pay the interest and move it around, move it around. in fact, there was a point beyond which geithner c

i worked for fannie, i know, i was there i thought it was the right party at the right time. i was wrong. republicans were right on house policy. all right. richard, let's talking about obama, okay, because now, you know, mark has a fascinating theory about how all those tax cuts somehow weren't at fault the last ten years, here's what we know. for example, we lost 1.1 million jobs in that last ten years, 1.1 million jobs. how could president obama be having this conversation? i mean, shouldn't he say, look, i'm not interested in your wacky theories about how we should do more tax cuts for corporation, which you know the president is having a discussion over. i'm not interesteded in your wacky theories about spending cuts in the middle of a terrible economic situation. why is he enter taping those thoughts? >> well, for a start, the federal deficit is unsustainable. so someone's got to deal with this at some point and i've got start a conversation now, but you're right in the short term, the idea of massive spending cuts suspect going to help job he creation, in fact it is go

. >> they look awful and they're the new fanny packs, in my opinion, right?like, "but they look weird!" >> jimmy: they're awful looking. you look like you like have gorilla feet. >> yeah. and so, this guy would not shut up about these. 'cause he's like, "oh yeah," you know, "you can wear them camping. i can wear them for a wedding." and -- [ laughter ] and so, he leaves the room and jimmy and i are like, "what a jar of freak sauce that guy was!" [ light laughter ] like, "what a douchebag!" >> jimmy: if he would wear -- if that dude shows up at my wedding, wearing those crazy things -- >> well, what's he gonna give them, bananas? it is so ridiculous. >> jimmy: take your eyes off the bride because crazy shoe guy just came in. >> "wearing my gorilla feet." >> jimmy: "oh, i've lost five pounds." yeah. >> picking up the cake with my feet. [ laughter ] >> jimmy: so anyways -- so we're talking about this guy -- >> yeah. >> jimmy: and then, chris looks at me and i look at him and we're both wearing microphones. [ audience ohs ] >> and he's the audio guy! [ laughter ]

this picture shows what's he look like me at the even today i guess nervous when i come here was fanny and i see those events in my mind's eye as if they were yesterday. today children play war in the old case meet but in the first days of the real war the unit under the command of luggage. was holding out in one of them within two days the defenders had exhausted their ammunition she loves his daughter saw the germans trying to capture her father. of the sudden it was a noisy scene that phonogram he had jumped on to the railings and plunged into the river the chairman's began firing to ask him as a death in captivity he shouted those were the last words he attracts to his family . in accordance with their plan to attack the soviet union the germans had amassed three armies close to the border among these armed groups or was the most powerful its mission was to encircle and destroy soviet troops and belorussia and move on to moscow via as money. the german strategy relied on surprise attack to demoralize the adversary from the opening seconds. the sound of the explosions was deafening.

the guy would dance in flip- flops and a fanny pack, you had to see it to believe it. and anybody that knows tony knows that he was a world traveler. he was absolutely fearless and would go any where. he's been to india, japan, all of europe most of central america and he's made friends in every one of those countries. he crashed in the couches of numerous families he came across everywhere he made. i don't think he ever made hotel reservations before going to any of these destinations. he would just go and figure out things when he got there. they always worked out great. i will end with, tony my dear friend. my family and i say thank you for your friendship, the love, the great times and the laughter over the last three decades. it is with profound sadness that we say goodbye. we love you, and though our lives will never be quite as fun, you will live forever in all of our hearts. you are the most unique, the kindest, and most caring person we have ever had the privilege of knowing. thank you for being such an influential part of our family. we will miss you. you lef

he and a fellow library intern fanny lau put in the time when they weren't in class. >> after she gavee this two weeks of training, oh, maybe running a library? how did she do all this stuff? >> reporter: social studies teacher judy mahnke says what happened next is unprecedented. >> logan made the proposition to the new principal, you know, can we run the library? and she was like, can't have kids running the library. it takes a master's degree. then she met logan. he did the presentation and she said, okay. >> reporter: then logan developed a survey to decide what books to buy with $6,000 in proposition h library money. another librarian was impressed. >> she couldn't believe kids had done that because those are like -- it was like exactly what she would have done. >> reporter: logan's service extends far beyond the library. here at wallenberg, each senior is required to do 100 hours of community service but logan says he has done so much, he lost count. when the school budget didn't have enough money for a yearbook staff last year, logan involved -- volunteered to do most of it hims