they were getting -- fannie. they were beginning to violence they said they wouldn't buy the they didn't a college that was a change in law. i guess my question is what are you all doing to see that the agency doesn't go around the rules again? they were being pushed not by the white house. i just wanted if you are independent from us. there are members of this congress and this body who are pushing for those relaxing, relaxing of those standards so that people can get loans. and i hear some of the same language today so when we making to do what are we doing to make sure this happened again? >> first of all at that point fannie and freddie were not in conservatorship. and so the regulatory role was a lot looser than the conservatorship role that we are playing now. we are involved in virtually every decision that fannie and freddie makes and we take very seriously our statutory mandate both to do things faithfully and soundly, and to do things in a way that will provide liquidity in the housing finance market. a

is fannie stable? >> we think it is. and we built into the decision to reverse the suspension prudent reasonable safeguards in the event that they go back in the other direction. >> i appreciate that and read that it's not in the statute. what you supposedly put in the letter is not part of the statutory consideration. i hear what you're saying, but it's want statutory. you can't take the position you're following the statute, and then say what we're really considering is profitability, but don't worry, we put something in the letter. you're rewriting the law, aren't you? >> well, i'm following the conservatorship statute there, representative mulvaney. >> some would say number two regarding the undercapitalized, because i think you've taken the position several times that your agreement with the treasury moved this section is that fair? >> yes. >> my understanding, and again, i'm new to this, is that your agreement with treasury is an agreement, right? >> that's correct. >> how does an agreement trump the law? >> well,

is fannie stable? >> we think it is. and we built into the decision to reverse the suspension prudent, reasonable safeguards in the event that they go back in the other direction. >> again, i read that in the letter and says if you have to go back to the treasury, we'll suspend the payments, i get that. not in the statute, is it? the protection you supposedly put in the letter is not part of the statutory consideration. i hear what you're saying, mr. watt, it's not statutory. you can't take the position. you're following the statute. and really what we're considering is profitability. and don't worry because we put something in the letter that says if we have to go back to treasury, we'll stop the suspension. you're re-writing a law, aren't you? >> following the conservatorship statute there, representative. >> come with me to number two regarding the undercapitalized. i think you've taken the position several times that your agreement with the treasury moots this section. is that fair? >> yes. >> my understanding, and a

fannie mae leveraged at 341-1. now, that's a capital ratio of .29%. freddie mac, 153-1. and an equally concerning leverage ratio of .65%. you remember a decade ago, i was arguing about 100-1 leverage ratios. this is excessive of that. and you said earlier in this hearing that the leverage ratio was not something the statute requires you to look at when suspending allocations. i've got a different reading of that statute i'll share with you. what the statute requires is that you shall suspend allocations, not may. the statute reads shall suspend allocations if they would contribute to the financial instability of the enterprise or would cause the enterprise to be classified as under capitalized. so in reality, the statistics cited earlier you know do come into play, so director, how can the enterprises be in this state with these leverage ratios? in one case -- and not be deemed financially and under capitalized? that's my question. >> so first of all, we put in place prudential stops if circumstances go back in the other direction if we ever have a draw on on the treasur

in 2012 found that fannie faha was somewhat responsible because they overlooked the fact that fannie was beginning to relax its underwriting guidelines. they were beginning to buy loans that they said they wouldn't buy. they didn't accomplish that with a change in the law. they accomplished it with variances. i guess my question is, what are you all doing to see that the agency doesn't go around the rules again? they were being pushed not by the white house. as you said before, you're independent from the white house. i wonder if you're independent from us. it's members of this body who are pushing for the relaxing of those standards so that people can get loans. i hear some of the same language today. what are we doing to make sure this doesn't occur again? >> first of all, at that point, fannie and freddie were not in conservatorship, and so the regulatory role was a lot looser than the conservatorship role that we are playing now. we're involved in virtually every decision that fan sandee freddie makes, and we take very seriously our statutory mandate both to do things safely and

this is not about city versus fanny. it is about about the specific institutions they privileges that no one else got. and so interestingly what the professor argues with his work is that you have all of these state-chartered institutions with the legislatures were handing out charters. and what he saw his the really big change in about the 1840s and 50s, the creation of general corporation so that anyone who wanted to start a bank, a corporation did not have to bribe politicians. you just go down and file the paperwork the question to you is how much of this is driven by exclusive special charters and privileges at least in the financial sector. >> certainly the story of fannie and freddie and i think that basically it's enormously valuable. about $10 billion was the value. and then there was a real bombshell that so that said that only two thirds of it returned back to homeowners. the -- >> even less. >> and so this is the problem with charters. widely known. madison and jefferson were infuriated by the behavior of the

he's coming by next with why fannie mae is dropping now.endard bic card absolute has a new favorite. it's not crystal clear vodka. his lock on the brown liquor the millennials are loving now. ♪ liz: charlie gasparino told us why investors were suddenly i'm going to fannie mae and pumping the stock up. it had everything to do something unrelated. hank greenberg's lawsuit against the us government regarding the bailout of i'm goin aig. (?) they're selling off. charlie. but first, do you have some bizarre obsession with vodka. we have the pernod guy, and suddenly it's all you can talk about? >> i tweeted something. twitter is insane. right? >> you're insane. >> i like dipping my chocolate chip cookies in vodka. oscar meyer liked chocolate chip cookies in ketchup. >> that was a television show and fake. >> that's my favorite dessert. anyway, we should point out a greenberg trade. if he wins the trade on aig saying the government took -- that that ruling will set a precedent that the aig shareholders now could basically say, listen, the governme

i don't advocate people buying fannie and freddie.hank's going to win or not, you think it's better than 50/50 -- liz: i've always said 65 clash clash -- 65/35. >> 50/50. liz: only because i'm watching the judge, tom wheeler. >> okay, wrinkle. bill ackman, i think, ferrell inly sued fannie -- the government, joined some lawsuit or sued them, now, i have to to check this, but he initially did it in federal court. i have to go back and check this and if you're trading this, check this out. this is all googleable. he went and changed and basically kind of killed that suit and brought it to the federal claims court; ie, the same federal claims court where hank greenberg has his case. liz: aha. charlie, thank you. >> that doesn't tell you something? liz: follow him and me on twitter because he tweeted these pictures of the successes city lingerie -- sexy lingerie models are last week. >> we not only give you sex, we give you money. liz the two best things. >> in life. and vodka. i love vodka. [laughter] liz: programming note, speaking of v

fannie mae is bigger today than it was three years ago which speaks directly to that mentality receive is talking about. >> is there anything that's going to stop this. >> certainly not in the case of that so-called consumer agency. they just write a blink check on the federal reserve. >> sabrina, what do you think? >> it's funny i agree with john we want to keep the focus on the larger picture what's of what's so frustrating it makes us less free. when businesses decide to not have a big fancy building and let people work remotely it gives working women more choices, it actually decreases congestion on the highways actually allows people to make choices that are more sensible and that's part of what's so upsetting here. the government just spends money blindly without thinking of the unintended consequences. >> the "cashin' in" gang by the way getting ready to roll at the bottom of the hour eric what's on tap? >> with israel's leader when he comes to d.c. in march, but government officials did meet with muslim brotherhood supporters when they were here. what message is that sending? >

in 2008 fannie and freddie were insolvent, they were busted.ent brought them up to zero so they wouldn't affect liar -- their bonds. >> they were created by the government. >> only the congress controls them. all of these investors have hired big lawyers and lobbyists in washington for gazillion dollars and they've all you will lost. >> bill ackman is suing the federal government. and same agos hank greenberg is suing aig. if greenberg can win, that will show shareholders rights and that should transfer over to the fannie mae. >> no, aig is a private company that was bailed out by the government. i think illegally. oh, you think, illegally, too? >> judge lambert, one of the most respected judges in the countries slammed these guys. i know your feelings are hurt, but ultimately you have to go up to capitol hill because in the constitutional role of the federal courts there's nothing i can do for you. that's what he said in his opinion. >> so there are no shareholder rights here. >> under the law passed during the crisis, the regulator for fannie

fannie and freddie don't make loans. we buy loans off of lenders' books -- >> right. >> -- and guarantee them and put them into a secondary market. so there's just not opportunity for me to be engaged in those kinds of discussions with borrowers now. but, i mean, there are thousands of people when i was practicing law i would say you can't afford to make a mortgage payment, you shouldn't be a homeowner, yes. home ownership is not for everybody. >> well, i appreciate you being here. i hope that one day we can get the government out of out of the homeowner business and get it back in the private sector where it belongs. purchase i yield -- mr. chairman, i yield back. >> the time of the gentleman has expired. chair now recognizes the gentleman from maine mr. poliquin. >> thank you mr. chair. thank you very much for being here, director watt. i understand from your background you spent a little bit of time in new england and i want to thank you very much if advance for rooting for the patriots. not that we'll need it, but on

fannie and freddie are both, as you know, penny stocks.arts lately -- look at the charts lately, there's been a pop in the stock. and what i understand the pop in the stock is somewhat attributed to money managers, at least some managers putting on a greenberg trade, as they put it. they're snapping up shares of fannie and freddie, basically predicting a greenberg victory. now, why is this? greenberg is saying the government came in and illegally confiscated shareholder value when it did the bailout of aig, essentially wiping out shareholders, right? including himself. what are the fannie and freddie shareholders right now? and there are cases even in federal claims court. i think bill ackman has a case in federal claims court where the greenberg case being held. what are they saying? fannie and freddie after their bailouts of 2008 repaid the government, and what the government right now is doing is illegally confiscating all the profits. those profits should go back to hair holders. -- shareholders. there's been some federal court cases t

owes them the profits of fannie mae because they bailed out fannie mae and fannie mae paid it back. they're claiming they are victims of government overreach. this is a whole nation now -- >> ben stein, what do you think of that? >> i think that when the student took out the loans they signed a contract. they have to live up to their contract and if people are inciting them to not live up to their contract those people should be sued as well. it is a very serious matter, sign a contract and if you sign it and you get the money you owe the money. it's that simple. >> here is where the kids are saying they're a little different -- graduates -- not graduates. >> they're not kids. >> it defaults it so the school defaults, they can default. >> the government is encouraged people to take out these loans. >> by the way elizabeth warren is backing this. >> that's a surprise into at the encourage them to take out the loans and act like the money is free and easy. >> right. >> and then, oh, and then when they get in trouble then the government is there, oh, we're going to help you have -- >>

a lot of the traders are trading out of fannie mae. liz: they caught the tailwind. >> they listened to fox business while the trolls were out, there picking up unemployment checks and attacking me on twitter. liz: charlie, thank you, charlie gasparino speaking with hank greenberg. >>> the closing bell ringing in 29 minutes. big rally going on. . >>> hollywood's big night, and the man in charge on stage. neil patrick harris. can he bring the oscar ratings that are desperately needed? guess what? it all comes down not to the movies up for awards but for the guy on stage or the woman. we're going to game this, coming up. >>> and a deal we told you about in january has finally come to fruition. howard lutnick, the chairman and ceo of broker dealer bcg with fox business in just minutes. what he started what started a hostile takeover to where the shareholders said welcome howard lutnick, new acquisition and why in is good news for investors? stay tuned. tbut at t. rowe price,et is never clear. we can help guide your retirement savings. our

i'm for getting rid of fannie mae and freddie mac. the trillions, are essentially housing advocates, repay treat the money government took out of fannie mae and freddie mac they want to repatriot. so do hedge fund managers. bill ackman suing in federal claims court, repatriot money. give it back to freddie and fannie. housing advocates want the lend more to keep them in business. interesting alignment lefties sported people like elizabeth war return and bill ackman and all these others -- cheryl: full story at foxbusiness.com, correct. good. >> this is a story that is not going to go away. the stock is acting very interesting. cheryl: before we go to break i do want to bring this up to lighten the mood here a little bit. you all know the barrel scouts. you probably love their cookies -- girl scouts. they may not be getting their supply demand merit badge. there is thin mint shortage, causing orders to be slightly delayed. we found a solution here. for less than $60 you can buy miniature oven and make the cookies yourself. is this a wi

should give all the profits back to fannie may finish.ne week maybe? or a one month? we've been showing the one month because that's where the it's truly pronounced. >> you see where it is now. liz: remember, these companies have nothing to do with each other except they both had government intervention. >> bailouts and the government extracting profits from them in different ways. in hank's case it's diluting the shareholders. in this case literally the government is using the profits -- fannie mae's profitable now, sending it to the treasury. liz: here's where it sold. >> as you know, i'm critical of the obama administration all the time, but think of it this way, this is a gse. it was a company established through an act of congress which is different than aig which is, you know, started the regular, old-fashioned way through an entrepreneur. and, you know, the government bailed it out, and now the government has taken the profits for the treasury. is that bad? liz: no. >> i mean, i'm getting these trolls saying i'm against shareholder

not only is fannie mae involved in this but the fed has been buying fannie mae mortgages, fannie maetgage-backed securities. as a result if interest rates rise those will decline in value too. david: i know the answer to this, but obviously the taxpayer will be put on the hook. >> of course. david: how much do you think this will cost? could this be worse than the last financial crisis? >> last financial crisis had occurred in the private sector. that could occur again if we reduce underwriting standards as we did before. otherwise taxpayers simply take the losses as they did on fannie mae and freddie mac and again on the fed. david: wouldn't snowball into the entire financial system the way the last one did? >> well it depends on how many poor quality mortgages are outstanding at time the break occurs of the last time by 2008, more than majority of mortgages outstanding in the united states were low quality mortgages. david: wow. >> when the bubble began to quote laps, these mortgages began to fail in unprecedented numbers. david: a voice in the wilderness, peter. >> i am, but we co

are the government entity, fannie, freddie, et cetera. >> they're trying to get the mortgage market to move again but reducing underwriting standards. that is exactly what caused the crisis in the first place, dave. so the problem here is that we have to control what the government is doing, rather than trying to control what the private sector is doing. david: but isn't dodd-frank trying to maintain those standards, and strengthen the underwriting standards? i thought that was part of what it does? >> dodd-frank does not do anything about underwriting standards. that is one of the puzzles about all of this. what it does is impose a lost restrictions on private sector, slowing economy. we've had slowest recovery from recession since the mid '60s. it hasn't cured the problem we set out with. government policy reducing underwriting standards causing a lot of people who can't sustain a mortgage, can't pay a mortgage to get homes of the we go into the same cycle again, have more failures and another crisis. david: you used to work for the treasury department. you're familiar with looking a

in the case of banking a lot of people look the other way with fannie and freddie,. neil: they get a pass. >> with respect to regulators if you have no job no assets or income why were you given a mortgage, but the finger-pointing continues. >> >> why not fannie and freddie? if you go after other executives executives. not so fair. >> all of this, has been debated, there have been finding and conclusions there are people on the left, who have insisted corporation that plead guilty but individuals to be fraud walked to the judge this happened years ago there is a statute of limitations when does your life go to normal, and you can build back the pieces build back the,. neil: not as if they have not paid. they paid, billionss in fines 40 billion. where does that end? if you go after the guys not after fannie or freddie and not turn finger back on those in washington who were pushing this this does not seem fair to me. >> not every loan is a criminaly-bad loan, not every action is a criminal act. so if there is knowledge on part of justice department, and statute has no

we need to recapitalize fannie and freddie -- fannie and freddie. either the government tend inject 500 billion dollars on the private sector can do it. if tomorrow the u.s. government turned off this cash flow suite this institution would recapitalize itself. 80% of that capital would eventually be owned by the taxpayer itself. it is a way for the companies to become independent without the taxpayer having to write check to rita -- without the taxpayer having to write a check. our investors will make money if fannie and freddie are restored to low capitalized institutions. the taxpayer owns 79.9% of the country -- some 9.9% of the company. what interesting is the other 90% that we don't own is owned largely by individuals. voters. the number of people that called me, retirees from florida. these are people that call me. i own 30,000 shares of fannie and freddie. the government wiped me out. i said, call your congressman. they are more interested in what you have to say that what i have to say. 80% is already owned by the taxpayer. the other 20%, 10

but remember how badly freddie mac and fannie mae acted in 2008.the mortgages were subprime and owned by fannie and freddie. i don't trust them that they've learned their lesson. secondly, there may be safeguards in place, but there are all kinds of barriers to operate more in the housing market. penalties if people don't pay their mortgages back. lawsuits the government has launched against banks that sold them subprime. there are a lot of reasons why banks are leery about going back in just lowering it to 3% to 5% isn't going to solve the problem if you don't address the underlying problems of dodd-frank and regulatory pressure. gerri: 3%, is it that big of a deal? >> actually i find myself nodding in agreement with john. one of the safeguards in place is that just because fannie and freddie said they'll expect loans with 3% down payment doesn't mean those lenders will write those loans. this is a small fraction of the lending pool for 2015. but i do think it will make it possible for qualified borrowers who have all the other criteria in place e

what this congress wants to do with fannie and freddie.hat is open for a tremendous amount of debate. >>commercial real estate is another active market. commercial real estate is -- we are seeing pretty significant price changes which supports the end of mental -- underlying fundamentals. the average loan is 10 years old. it is 2015. loans are due today. they were originated in 2005. you have a lot of debt that needs to be refinanced in the next three years. people know there is a refinancing law. it creates opportunity. you have employment improving companies creating earnings. it creates a good fundamental environment. >> how do you make 12%? you can't talk about your returns -- >> we can. that's a big number. >> let's take that or 10% or 15%. ms. priced securities -- they cannot be ms.ispriced by that much. it doesn't sound to me like 12% returns. what is the secret? leverage? >> not at all. you would be surprised -- there are large markets. inc. about the u.s. housing market and the u.s. real estate market. we do some stuff in europe.

i'm talking about richmond resident fanny shirley who passed away at 99.5. she almost made it to 100. she was loved by her parents, her sister, evey who is deceased. brother murray who is also deceased. her son richard rothman an advocate from the richmond district. his wife nikki and his daughter and husband marty who also passed away unfortunately and granddaughter emily and brother-in-law and nieces nephews and cousins. she was a proud native of san francisco. fanny, she was born in 1915 and grew up in the fillmore district. and in the russian neighborhood. sandy met her future husband a new york native on muni. they were married on june 1, 941. they lived on webster until richmond in a home built by her father. they lived there happily only half block from golden gate block and a mile from the golden gate bridge for their lives. sandy was part of the community activities and a member of the sister god sisterhood and a member of the san francisco chapter where she served as treasurer. she worked at the memorial blood count bank and she and bob worked at t

fanny, she was born in 1915 and

republicans fighting for all efforts to do that were fought by the democrats unfortunately to fix fannie and freddie, should bush have fought harder for it? absolutely. did the democrats stop it in the senate? yes, they did we need reform. the first thing obama did when he came in was make that spending in iraq and afghanistan in the base line of the budget to make it infinitely into the future. we took that back and stopped that abuse with the budget deal going into 2011, the republicans in the house and senate. we dramatically have different parties, the republican party both willing to reform entitlements and paul ryan we talked about earlier has four times put forward a budget that reforms entitlements and keeps the country from going bankrupt. obama and the government put no reform of entitlements on the table, period and added another unreformed entitlement and falls apart and have to tack it together again, obamacare. it's not fair now and was in past years and not fair now to say the republicans have not put on and voted for a plan to reform entitlements to the country doesn't go

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fannie, freddie originated 98% to 99% of all mortgages. up from 44% in 2006.ks leaving that market. tom: are we the only clowns doing this? >> the u.s. markets are based on capital markets. tom: run by the u.s. government, that is not capital markets. >> it is based on securitization models. home ownership is a social good in the u.s. if you look at the history of banking -- brendan: are we back to where we were in the 1940's and 1950's, we need a greater government intervention? >> right now, yes. the u.s. market market is so used to having the government backstop. tom: olivia is going to be at the -- olivia: i'm going to florida. tom: she's always going someplace. life with olivia -- me, brendan and mike have no life. brendan: you were talking about netflix on the weekend. olivia: "house of cards.; tom: nobody can get a mortgage. >> underwriting standards have gone up. in light of that is dodd-frank compliance. if you are a bank and you get sued, your level of risk aversion has gone up. the pendulum has swung too far in terms of difficulty to get a mortgage.

the government is starting two-step been like freddie mac or fannie mae offering loans. government is trying to do it. but it has been my experience that foreclosure or eviction are caused by the same thing of a financial event and there is a lot of reasons it's called motorship plays out from the macro economic standpoint that rent cannot afford you. tom: that will take a long time to get the same goals and their. preaching race ab is preaching equal pay. >> i don't say can i give you more? that is not what you do when you run a business. what women have to do is walk away. >> those who want better pay should just walk away from their jobs? let us know if you agree or disagree. new york city may not have cut and the democratic convention in 2016 but something tells me it could care less. your daughter has a brilliant idea for her science project. and you could make it happen. right? wrong. because you're not you you're a cancer hospital and your daughter... she's a team of leading researchers... and that brilliant idea is a breakthrough in patient treatment that could s

congress promised to banish fannie mae and freddie mac after the housing crisis.re making a couple of bucks. no one is talking about abolishing -- >> not only that. but ladies and gentlemen, fannie mae and freddie mac just made an announcement a month or two ago and this is one of the biggest outrage i ever heard they will start providing 100% taxpayer guarantees paid by all of us for 3% down payment loans. >> we're starting that again. >> we're right back where we started. the energy department, i'm going to tell you something that sounds pretty radical but the biggest obstacle to economic growth in this country is the radical green movement of america which has become the modern rust. these are people trying destroy our industrial base stopping our energy production and by the way the only reason the economy is growing right now is because of the shale oil and gas revolution. and the biggest scam in the last 100 years is climate change. this is the roger of the left. >> the guy that ran the energy department, very smart guy, professor i think at m.i.t. he wanted

certainly, fannie and freddy all have mortgages where there is physical property. so summarize the state of our financial fiscal union, it is at best shaky. i think our housing markets have been driven by an immense flood of finance liquidity. that has gotten stuck in the banking system and not made it to the greater economy. it has been good for banks but not necessarily the economy. when the fed starts to raise the rates i think housing prices will flatten or decline in the coming years. when i was on the helm and everybody chanting housing prices never go down. and they do decline and when they do nasty things happen. you need to keep that in mind. and those along the coast like san francisco, my end view is that a housing price decline is probably a good thing. incomes there are far short of what one would need to afford a house, but it will be a painful adjustment. and things have be driven by free money from the fed. to the extent this assistance has helped build bank balance sheets, but we'll wait to see. but over the fundament flaws in our financial system,

however, i should note there is some weakness in fannie and freddie.here is a lot of pressure now overall to reform it. >> youtube, something with children is coming out. >> yeah. youtube for kids. it is coming out just for kids. we can watch it too. it is coming out with channels like sesame street mother goose tube the, national geographic television. looks like fun. parents have long asked for something like this that was clean, easy to use, easy enough for kids who can't even read yet to use. just good, clean family fun. it's only available on android, which makes sense because they own youtube. they are keeping it in the family. >> sounds like a win-win. thank you so much, my cole. good to see you >>> good to see you. >>> coping with the cold in ohio ohio. >>> i'll be in los angeles with a preview of the academy awards with a closeup look at best picture. that's tomorrow at noon eastern. the bangladesh economist received the nobel peace prize in 2006. it gave loans to entrepreneurs who were too poor to get a lope especially women. it has made him

. ♪ ♪ >> ♪ type in your fanny p pack you cahelp a l ♪ >> no superstars, no celebrities, no britney sprsa lot of brandiding for a compmpany that is not a big name.. does i it rk? >> a absolutely. they are up against gorilla glue , which has a hugege advertisising budget. thisis is smart, unique, memorable. it will be remembered. >> it is a small l company. you are root for the l little guy. you are e in advertising. would you forget radio adsds all year long to buy one super bowl ad? >> in th case, it is a national brand. you think about the numbers of people they are reaching out on. it is brilliant. it is a brliant agency. on top of ththat, the ad is not that exciting, but it is literalllly 30 seconds. >> there are some companies that come up with great ads, but at the end o of it, you cannot think who the company is. it is shurous, but ere is no branding. iis the most t creative agency in america. >> what woulthey he done that we would have heard of? >> they did cadillac for years. >> eds, herding cats. >> it is the strategy on that. it is not a hail mary. you think of the numbers of

. >> she fell on her fanny. >> she got a good laugh out of it. it's nice to see. >> got a bit of a scuffle here. >> oh! what did he just do? just threw her onhe gund? he this is a security guard at the willow grove mall in pennsylvania. that is a suspected shoplifter that he's after. >> oh! >> the clue to me was he had a walky talky. he's trying to recover some product. he grabs her bag. watch what the security guard shows the person with the camera. you can clearly see the security tags on those clothes. >> and the price tags. >> yeah. >> but she's driving off and he's got her bag. >> you're right. they just take off in the car and off they go. this guy has already been pulled over by australian police and he's a little mad at them because he said you need to follow your own rules. so the officer claims that he intimidated her and he's like the only reason why is because you were on your phone while driving, and that's against the law. what gives you the right to break the law and not me? and he gets angry. >> so what if you caused an accident w

insofar as freddie mack and fannie mae are under conservatorship conservatorship, insofar as you are moving quickly toward a common security zags platform can you identify any compelling public benefit for these two entities, other than it is status quo to be separate as opposed to one? >> well you know, that's a public debate that i think should be had. there's a value to competition because it makes both enterprises better. we have aligned fannie and freddie's practices on a number of issues that were important to the public policy objectives. but i think there's some value to allowing them to compete on things that don't have a public policy imperative to them. so i guess -- but we have aligned them on a number of issues -- >> i would think it that quality of service would be an example of that. >> well if you talk to one of them as opposed to the other they will tell you that their quality of service is higher than the other one, depending on which one you talk to. but we -- it's important for them to continue to compete on the quality of the service that they deliver. that's one

i had a big fanny pack on and i had tripped and skinned up my leg. i came back up here to the store and they helped me out. i got all cleaned up. mandy was supposed to wait for me. >> but mandy may have grown impatient. >> i ran back down. didn't find mandy. mandy always played pranks and so we thought she was hiding in the bushes and going to come out and scare us or something. she never did. >> two hours later, mandy's father called police. within hours, 75 friends and neighbors passed out fliers and searched the heavily wooded area from the ground and from the air. >> i knew that there was something wrong, and that there was no way that she could have gotten lost. >> alaskan state trooper jim mccann drove five hours from fairbanks to join the search. >> i came down here with the opinion that there is more to this than certainly a grizzly attack or a child lost in the woods, just from what i read in the paper and from what i had been told over the telephone. >> the search lasted for days. search dogs were used, but they weren't able to track mandy'

but it is worth mentioning that of the duo, freddie mac, fannie mae reported fourth quarter numbers.hedge on an interest rate hedge that went against them, actually for the year and fourth quarter. that was a derivative loss of 3.4 billion. net interest income of 3.6 billion for the fourth quarter. but they'll deliver another 900 million to the treasury in march, bring in their total cumulative cash dividends paid to treasury at freddie mac to 91.8 billion. well above the 72.3 billion that they got. this goes back to the lawsuit, you may recall the judge tossed out from perry, still trying fight this fight as well about the third amendment that said we'll take all of those -- we'll take all of the profits from gses and sweep into treasury. interesting story from "the times" about the correspondence and e-mails kept private, raising the question did it have anything to do with the budget stand-off and the fact they wanted as much revenue coming in as they possibly could get? i wanted to mention freddie mac. >> guys involved in treasury very savvy about this and do recognize that this

on the the other end, on the high end, you're seeing fannie and freddi offering 3% mortgages with people with better credit scores and things like that to help on the higher end also. >> we'll have to leave it there. joe gallagher, lpl financial. that's it for the news. we're back on tv at 5:00 and 24/7 on our wusa9 app. it's free and it's terrific. have a great day, everybody. enjoy the sunshine. i bring the gift of the name your price tool to help you find a price that fits your budget. uh-oh. the name your price tool. she's not to be trusted. kill her. flo: it will save you money! the name your price tool isn't witchcraft! and i didn't turn your daughter into a rooster. she just looks like that. burn the witch! the name your price tool a dangerously progressive idea. >> sage: hey, you're gonna wear those shoes out before the hearing begins. >> nick: [ chuckles ] yeah, actually was an inch taller when i got here. >> sage: well, reinforcements are here. >> nick: well, believe it or not, i actually look terrible in heels, so... >> sage: [ laughs ] i was offering myself, not my footwear.

>> sometimes in life you receive and ee pif fannie. and the whisper said what if children are learning what you're learning? and the second whisper, how different would my life have been if i received financial education as a child? the answer is totally different because i was the one -- the main driver of expenditures in my parents household. so i thought -- what we needed to do was together with financial presenters who work on wall street, we put together an institute that taught -- teaches children ages 7 to 18 everything they need to know about money from how to think about it, the history of money, the flow of money and how they are worthy of having this conversation. >> you started when you were 12 in the program? >> i did. >> since that time, you're 17 now and you have taken what classes? >> i've taken everything from banking to investment, i learned about fico scores, credit reports, also learned about how to budget but i've just really enjoyed a lot of different classes. one of the best being mandarin chinese and computer pr

i mean basically we're in schizophrenia concerning fannie mae and freddie mac.atistic. they borrowed from the united states government. in return for that they paid back $225 billion in cash. they have issued a series they preferred which is worth $190 billion. and they have warrants which the u.s. government owns which i think are worth $20 billion. so in essence, fannie and freddie are sitting there with somewhere between $425 billion and $450 billion which they've given back to the united states. >> that's a lot of money. >> it's a lot of money, but what's kind of interesting is the united states government wants to eliminate the $190 billion series a preferred and the warrants without giving the taxpayer anything for them. >> dick before you go i've got to get you on one other topic which is jpmorgan. they have their investor day today. there's also an article in "the wall street journal" today saying they'll be telling certain clients you have to pay us to keep your money. effectively they don't want to keep the money. how's that conversation going to go an

> be coz that this would is going on is a pricey the home ownership rate is lower than 1984 after fannie and freddie. we did infrastructure spending they were state sponsored infrastructure spending and it is amazing amazing, ownership rate is lower than of 30 years ago. >> that is scary pretty soon they get beastly but those victoria's secret angels are leaving the runway because they discover they are getting paid more to come down the same runway. they have the right? >> absolutely. if they are paid 100 grand dash candidate ever getting millions and you wonder when richard trumka and will try to unionize the models but they do have to invest a lot of time they just did a dividend by back paid them more. >> i am anti-union but i may join in that union. put my life on hold the intake line number two with the super model is dead now you don't buy that because the girl runs - - the check is down the runway but because it is mentioned on facebook or twitter senate people to go in there just because of the models and the sales are up they should be paid more. neil: james was just picked up

. >>: this is to nullify triggers are >> reporter: but on friday when randall walked into fannie handser with a friend. he said the general manager asked him to leave when he could not provide proof beyond this color is payable was the service animal. >>: he looked at my dock crash and he asked if i had something more to prove that he the service dog then what he was wearing and i told the owner and that i know i didn't and that pretty much that i did send a dog in the collar. >> reporter: the general manager mack recalled pays a very different picture. his concern because of the dogs breed and limited information from his honor. but according to federal law when it's not obvious what serve as an animal provides , staff may only asked to questions. it is is the dock a circus animal and what work on tasks have the dock been trained to perform. rangel called the incident serves as a teaching moment other eateries. as for the manager he had this to say. >>: joe i am so sorry i apologize from bottom of my heart about offending you apparently i did yesterday it certainly was not my intentio