it was a foundation that had $350 million worth of fannie mae stock deposited into it, to make these s of contributions. >> there's been a cast of characterize at the beginning of the book which includes fannie may and its friends. we mentioned the executive vice president of fannie mae from 1993-1997. top doubter about the white house. we will talk to another doubter, subprime enablers. the former chief executive of countrywide. and then at any final list is sectless regulators. you 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 b

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

we have a wonderful vignette where they came up against fannie mae when they were in 1995 part of the congressional, part of the congress act in '92 which was the safety and soundness act that created a new regulator of fannie and freddie, asked for studies from treasury, gao, hud and cbo. cbo did a masterful job of analyzing how rich the subsidy was from the government that fannie mae received. they were visited by fannie mae executives, june o'neill who was the head of cbo at the time said she felt like they were being visited by the mafia. [laughter] they were, she was pressured to try to water it down, not to produce this report that was very explicit about how much the government guarantee was worth to the company and how at all costs they had to protect it. so we have cbo people who were, you know, standing up against the pressure from fannie mae. there are other people who saw what was coming, people in the, in the georgia area who were first to wave the flag and call out the rating agencies for inserting themselves in a process where georgia had the most toughest predator lend

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

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

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

you had the democrats through fannie mae and freddie mac pushing politically or rather financially suicidal loans on the banks. you have to give mortgages to poor people. >> when you have an eight-year republican administration, even you -- >> oh, no, no. >> 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

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 of th

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

fannie mae and freddie mac's efforts to prevent foreclosures slowed dramatically during the first quarter. the federal housing agency says its twin mortgage giants it oversees launched almost 64,000 trial home loan modifications during the quarter. that was down sharply from the fourth quarter, but permanent modifications rose to 320,000. 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 t

fannie mae and freddie mac both have programs that help consumers refinance as long as their current 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. mic

. >> we have the top major lenders and the investors as well here on site, which is fannie mae and freddie mac. they own over 50% of the loans. >> reporter: the spokesperson says the event gets more than 50% of its attendees lower mortgage payments often on the same day. but it can take up to 60 days. to qualify, homeowners need to show proof of income, a mortgage statement, a property tax bill, and homeowner's insurance. while gathering the paperwork may not be much fun, mike and vidette know it's better than the alternative. >> move on. good rent i guess. >> i'm hoping i'll be driving back to stockton with a big smile on my face knowing that i get to keep my house. >> reporter: in san jose, nbc bay area news. >> certainly hope so. the save the dream tour runs through wednesday -- >>> the sue? state budget and paychecks are in limbo. voters passed prop 25 in november. it says lawmakers forfeit their paychecks every day that the state budget is late. well, lawmakers approved the budget in time, and they say they should get paid. but the governor then vetoed that plan, and an anti-tax group

they've proven themselves not to be, as chris was pointing out, the housing market, look what fannie mae and freddie mac did in terms of the contribution there. get out of the way, let the private sector create these jobs and that will, of course, in the end, as in bill's case, create more in the public sector. there's a great line from mowby dick, the great american novel the universal thump gets passed around. it's getting passed around now and no part of american society is insulated from it. what we've got to do is do the right things and not overspend once you get a recovery. don't go in and overextend those public sector jobs because then they're going to have to shrink again when things get worse. plan a little better. look at california. will they ever recover is the question. >> all right. another fascinating saturday discussion. we have to leave it there. bill bennett and chris haney, thanks to all of you. have a wonderful weekend. >>> after the show i'm heading north to new hampshire. i'll be hosting "american morning" on monday as we get set for the first big republican presi

it's a disaster, and, in fact, we department cover fannie mae. dodd said we didn't have time. what on earth was this man thinking? >> richard, we have few minutes left for more questions -- >> george. >> perhaps you can hold off and somebody else can ask -- [laughter] >> this question for mr. soros mostly. since you and professor epstein came to an agreement it's a good thing to start with a presumption not to regulate, what do you think of your fellow democrat, your democrat never figures you out. i'm a libertarian democrat myself, there's six of us. maybe you're one too i hope. what do you think of the spigot of regulation passed by your democrats in health care reform jammed through -- >> is it possible to confine our questions to hayek which is actually the topic of discussion -- >> well, they referred the remarks of agreeing on the subject with regulation. do you mind quickly answering, mr. soros? >> health care? >> yeah, was that a good regulation? >> really, that's extremely complex question and answer. >> i'll give a one sentence answer. >> we know your answer, richard

government probably doesn't need to be doing it the post office the government printing office amtrak fannie mae freddie mac. all built in a time in our country and the private sector did not adequately provide those products as no longer the case well other things you can find on google private security military contractors private education construction work health care for seniors food safety kids' retirement plans so does that mean the government shouldn't be providing any of that stuff either i mean yes second part is simple and he's better deal is to require students to pledge allegiance to the flag of google every morning in their google provided schools and that's very very. close to you probably remember the classic t.v. show kids say the darndest things is hosted back in the day by our link. linkletter and later reprised by bill cosby but it was mostly a comedy show was often highlighted by poignant responses from kids who view the world to refresh in lee candid and truthful way in fact before every show art linkletter said this about why he interviewed kids and why the show works take

for 200 new rules by more than 10 federal agencies, none resolving the catastrophic scandal of fannie mae and freddie mac. they came out and touched in the so-called financial reform bill. months after the law went on the books, no one knows yet exactly what the law is or what those regulations are going to require. the environmental protection agency is now regulating carbon emissions, a policy rejected by congress that puts millions of jobs at risk. the country does not support it. yet the epa continues to try to advance that agenda against the wishes of elected officials in congress and the people across the country. if these policies sound as though they were written by people who spend more time outside of government, that is about right. president obama appointees have been notorious for their lack of private-sector experience. this is unacceptable. it is fundamentally immoral to force working americans to hold down two or three real jobs to afford the winds of so-called experts who have never had one. we do not need one size fits all government-run health care. we need washington t

they talk about the role of fannie mae and freddie mac and the 2008 financial collapse. afterwards, henry kissinger on whether it is possible to form a true economic partnership with china. he is interviewed by monica crawly. also, paul allen talks about his memoir "ideal man." sign up for book tv alert. >> on this nomination, the nomination is confirmed. to go on monday the senate urilly to donald for reall succeed elena kagan. he is one of the millions of people you can search free anytime on line. it is washington your way. >> "washington journal" continues. host: joining us is the chief operating officer for the center of american progress here to talk about the health-care law. we want to start with the 11th circuit argument that happened yesterday. here is one of the argument yesterday in "the usa today." what was your take away from the argument yesterday? guest: actually i thought there were a lot of questions about it the individual mandate was struck down, then you ought to strike down the whole wall. actually the panel, which is made up of to clinton-appointed

two years in a row so we start to figure that out put in place is something practical like ending fannie mae and freddie mac. in exchange for raising the debt ceiling just of the september and then we can have the two thousand and twelve budget discussion which we need to be having now we're wasting time we can have that discussion and that's going to put in place ten years spending in terms of projections and we can figure out the debt ceiling as part of that i am thinking that all sounds are really nice but i feel like you have been taking a look around in washington lately of the of the notion of a practical a logical discussion or debate here is just mind boggling with specially with the fact that we have another presidential election coming up i don't think it's going to go anywhere but you know it's interesting because we've seen some polls that show that a lot of americans actually wouldn't mind that the u.s. defaulting on its debt and i feel like that's because no one's being honest with them that this could indeed catastrophe thanks so much for joining us. and still to come tonight

the post office, fannie mae, freddie mac and others were all billed for a different time in our country. they revolutionized the private sector and this should be given to every corner of the federal bureaucracy. it is no longer enough for the government to go on a diet. they need to hit the gym and hit hard. using performance based practices to streamline programs that the cia and pentagon and military more broadly. as i can attest, we used this in minnesota. if we apply this approach throughout all federal agency, we can save up to 20% in federal agencies. their real slog of the next administration will be an unrelenting battle against overregulation by our federal government. this is suffocating our spirit. conservatives have made the federal bureaucracy the butt of jokes. considering what they're actually in charge of our doing like the strength of our toilet heads, the glow of our reading lamp, it is hard not to laugh or cry about such things. federal regulations will cost our economy nearly two trillion dollars this year alone. this is that had been -- this is a hidden tax. make n

fannie mae and freddie mac will be buried by me personally.cheering and applause] to the embarrassment of clinton, bush, obama, and most congressmen in between. with the appointment of a handful of dedicated americans, we would turn around this bankrupt institutional government, downsizing and managing it to health. that is what i would do. we would consolidate i.t., standardized software cannot -- standardize software, we will replace half of all of the federal workers who will retire in the next 10 years. that is 42%, by the way. and replace them with technology, providing better service, lower payroll costs, and is sustainable budget. -- and a sustainable budget. i was shocked when i read the budget. it is been 20 years. 20 years, in the real world building jobs. i read it. do you know that we have 18 different food assistance programs? 20 different homelessness programs. 80 different programs in usda, dot, education, the interior, hhs, hud, department of labor, and va to transport disadvantaged citizens to needed services. management, mana

postal service, fannie mae, freddie mac, as well as the government printing office. >> be sure to joinay night, 8:00 p.m., live from new hampshire only on cnn. we will start bright and early monday morning with announcements and a lead-up to that. >>> you will be surprised how many college kids are not prepared for the real world. we are going to talk about problems and solutions with steven perry in perry's principles coming up. 36 minutes past the hour. we could've gone a more traditional route... ... but it wouldn't have been nearly as memorable. ♪ somewhere in america, a city comes to life. it moves effortlessly, breathes easily. it flows with clean water. it makes its skyline greener and its population healthier. all to become the kind of city people want to live and work in. somewhere in america, we've already answered some of the nation's toughest questions. and the over sixty thousand people of siemens are ready to do it again. siemens. answers. took some wild risks when i was young. but i was still taking a risk with my cholesterol. anyone with high cholesterol may be at incre

bank of america, wells and chase to do a principal reduction but you can't do that if it's owned by fanny mae or fledy mac. >> why? >> you have to ask president obama that because you would think that the ones that are owned by the american taxpayers would be the most flexible, the most reasonable to deal with. they are the most difficult. >> theresa alameda was one of the first homeowners to walk away no morning she now has a 2 1/2% fixed interest rate for the next two and a half years. >> that's a solution i've been agonizing over for the last five years. i think that's a really big plus. >> before you show up, you have to bring some paper works with you, mortgage receipts, pay stubs. this event goes through thursday and for a link to the organization's website, you can go to our website, ktvu.com. in san jose, ali rasmus, ktvu channel 2 news >>> one of the most powerful nations powerful nation's organizations for senior citizens says it has now changed its stance. they have long opposed reducing payment by social security. but now, they say it will be willing to accept a small reduction. >

inaudible conversations] >> this weekend on booktv on c-span2, gretchen morganson talks about a role of fannie mae and freddie mac in the 2008 financial collapse. afterward, henry kissinger on whether it is possible to form a true economic partnership with china. he is interviewed by monica crowley. paul allen talks about his memoir. look for the complete booktv schedule at booktv.org and get our schedules in your in box. sign up for booktv alert. >> on this nomination the odds are 72. the nomination is confirmed. >> the senate confirmed deputy counsel doddered rallied to succeed elena kagan as you and solicitor general. listen to him argue before the supreme court from 2008 the state would -- discussing the rehnquist court. he is one of 100,000 people you can search and watch for free online at our c-span video library. it is washington your way. >> next highlights from the most recent session of the australian parliament. this 35 minute program comes courtesy of the australian public affairs channel. >> i am david speers. we are going to show you some highlights from the latest sitting of the au

here in this country we have fannie mae, freddie mac.t's such an unamerican thing, if you look at it from the outside. the banks in china has gone bust more than once, the so there's this excitement now largely because many people believe that markets were complete failure and they forget that markets operated in an environment where there's regulation, there are laws, there are rules. and one could argue in pretty powerful fashion is that markets are far from perfect a lot of markets that were behind these markets were pretty bad as well. i see now the pendulum swinging, let's call it to the left. and sure -- >> charlie: too much regulation you think? >> not too much but perhaps the wrong kind. many of the problems not being addressed. i'm not a believer in the minimalist state or any of at myself. >> charlie: so you believe in regulation. if it's the wrong kind of regulation, what is right and what is wrong? >> well if you have a system such that losers don't say that's a bad thing not just for economic reasons. i surely can argue that

fannie mae reports 27% of homeowners would consider this. that's up from 15% last year.ot to be honest. i can't even believe this is seen as a legitimate option for people who are not in dire financial straits. i get it if you simply can't afford to pay for your house. to walk away just because you want to is reprehensible. you made a decision to buy a home at a certain price. you can't just walk away from that obligation. we often buy things that decrease in value, a tv or car. making a commitment to pay is the bedrock of our capitalist society and, yes, i know that you've seen businesses walk away from their spornlt responsibilities, but that doesn't make it right either. and if you don't want to hear the moral or legal argument. let me give you a financial one. walking away can have disastrous consequences for your pocketbook. first your credit score will take a huge hit. we're talking about more than 200 points in some cases. second, you won't be able to get a mortgage again for years. if you're thinking, that's okay, i'll just rent, don't you think your landlord is

we have the top major lenders and the investors as well here on site which is fannie mae and freddie mac. so that's what gets us our 50% success rate same day solutions. after that it comes up to 80%, 45 to 60 days. >> so somebody who is home now and are struggling, this will get your home payment lowered by hundreds a month perhaps? >> yes. our program is built for people with unaffordable mortgages, whatever that may be due to hardship, whether you have gone through a divorce, loss of income, this is a program for you. and all of our services are free. >> rick, thank you very much for your time. i imagine this line is going to continue to grow. the event starts at 8:00, runs through next wednesday, the next six days, 8:00 a.m. to 8:00 p.m. laura, we're going to stay here and we'll see this line grow. >> couple of clarifications there. so you do have to have some kind of hardship to claim there. and also clarify your location so people know if they want to come out. >> reporter: okay. we are at 435 south market street, downtown san jose. it's just right around the corner from the sa

this particular home is owned by the real estate agent and, you know, after that, it was part of a fannie mae deal. so it's very difficult to find out who exactly the owner is but as part of san jose's code enforcement, they can go after who has control of the property and in that case, it is the real estate agent. >> well, the squeaky wheel getting some attention now in san jose. all right, len, thanks. >> reporter: just one of many homes here in san jose. >> thank you. >>> well, the verdict is in. a jury has convicted yusef bey iv and antoine mackey for the murder of oakland journalist chauncey bailey. now, both men now face life behind bars. joe vazquez is outside the courtroom where it got very emotional this evening. joe. >> reporter: it did. yusef bey the bakery leader who was convicted for three murders, his co-defendant antoine mackey convicted of two murders. and when that verdict was read this afternoon, family members of journalist chauncey bailey openly wept. >> i was very tearful and glad it's over. now chauncey can rest. >>> reporter: nearly four years after oakland journalist c

fannie mae. when they do that, it makes it worse. >> what do you do? >> that's exactly it. the government is giving you conflicting signals. keep people in their homes even if they have difficulty paying and as the unemployment continues to rise, it gets more difficult. >> right. the question is, the banks say how can we do both? 2009, two years ago the government came out with the home affordable modification program. it's been widely criticized by democrats and republicans. it didn't work. president obama said 4 million mortgages will be modified. 700,000 have been. we've got a long way to go to get to that number. what is interesting and the treasury came out last week and basically slapped three of the biggest lenders on the wrist. bank of manager, chase and wells fargo and said until do you better at modifying these mortgages, we won't pay you this incentive payment we've been giving to you say please modify these in a way people can afford them and stay in their home so you don't have to dump them off the balance sheet. the banks came back and fought back. and we will