you the taxpayer have spent $150 billion to bail out fannie mae and freddie mac and just last week, that$50 million to fannie and freddie executives. they have been investigated for cooking the books and unusual twist you have to pay their lawyers whether they scammed you. how can they be asking for more of your money? what if the taxpayers don't give them the money they want? >> that is not possible. because there a law on the books that these two have an unlimited pipeline into the u.s. treasury. so they can basically come with a tin cup to the regulators and say they need more money and get it. >> greta: is there any sort of incentive for them to be efficient or competent or have any great vision or conservative in how they spend the money? >> i don't see that at all. i've been through fannie mae and freddie mac's filings and cost to bail them out is going to $190 billion. this is biggest that goes up with aig. so essentially what you are seeing, fannie mae and freddie mac are both in protective custody of the u.s. federal government. what is dangerous for taxpayers you are being used

fannie mae and freddie mac. on april 2, the national archives will make record from 1940 available to the public. thomas mesenbourg and connie potter will talk about the release. >> good morning. it is friday, march 30, to tell of 12. you are watching c-span's -- 2012. you are watching c-span's "washington journal." we are going to review the week and look at some of the top headlines. we will open up our phone line for you to comment on the stories that you are most watching. we'll start the week in review -- this is how you join in. the democrats are 202-737-0002, republicans 202-737-0001, our independent line is 202-628- 0205. a good friday morning to you. for a quick review of some of the big stories coming out of this town, here are some of the headlines we have been watching here at c-span. for to vall, three days of oral arguments on the health care challenge. on capitol hill, the house gop passed its 2013 budget along party lines. also, a standstill over the transportation bill with the 90- day extension

so let's go back to july 14th, 2008 when congressman barney frank oversight authority on fannie mae and freddie mac said this. >> i think this is a case where fannie and freddie are fundamentally sound. if they are not in danger of going under, they are not the best investments these days from the long-term standpoint going back. i think they are in good shape going forward. they are in the housing market. i do think their prospects going forward are very solid. in fact we are going to do some things that are going to improve them. >> bill: shoe you are, barney, sure you are. obviously frank was wrong then he lied about it on this program and i scolded him. we don't need to replay that again i'm sure you remember what happened. combine freddie fan and freddie mac received $150 billion from the treasury department. again, it's not enough. fanny wants more. then there is another looming green disaster. you already know about solyndra which cost the american taxpayer $500 million. but you have heard about abound solar based in colorado? nearly two years ago president obama said this. >> to

and freddie mac obligations andeld fannie mae and freddie mac mortgage backed security the company itself was now sort of in a partial bankruptcy but the u.s. government now guaranteed. so that protected those investors. that had to be done or else there would have been an enormous intensification of the crisis because investors all over the world held literally hundreds of billions of those securities. famously in the mid. september, lehman brothers a broker dealer, and i'll talk more about this, i have a case study on this coming up. had severe losses. came under great pressure. couldn't find either anybody to buy it or provide capital for it. so on september 15th it filed for bankruptcy. on the same day merrill lynch was acquired by bank of america. again, basically saving the firm from potential collapse. on september 16th the next day aig, the largest multidimensional insurance company in the world had, if you remember, had been selling the credit insurance, came under enormous attack from the people demanding cash either through margin requirements or short term funding. the

going on here is barney frank and two other democrats sent a letter to the federal overseer of fannie maesuring the overseer to get fannie and freddie to do more to rescue housing. this is the congressman who famously said let's roll the dice with fannie and freddie prior to the housing crack-up, he said that in 2003. let's take a look at what the letter says. it says: it is of great concern about fannie mae's and freddie mac's unwillingness to increase the availability of all modification programs. and the letter writers go on to say that the refusal of an important government agency under your direction to join in the effort to alleviate the great distress caused by the current mortgage situation in america is so troubling. now, barney frank is set to retire. the fight here, jenna, is about whether or not to have fannie mae accept more principal write-downs ofa ed dimarco who is the government overseer has said no to that. he's saying, essentially, do more -- lengthen the terms of these loans and keep interest rates low. in fact, fannie mae and freddie mac did not take on the more exoti

fannie mae and freddie mac are back in the spotlight. the inspector is opening an investigation into trouble spending at the government and companies last year. lawmakers complained they spent over $600,000 to send workers to a conference last october. half the money was of questionable value. fannie and freddie have drawn $190 billion in taxpayer aid so far. starbucks has a new way to perky up. it has nothing to do a copy. i have more coming up in the next hour. >> 436 is the time. 59 degrees. >> we're getting a look at a key piece of evidence in this week's attack of a teenage girl in fairfax. what police have a homeowners to thank. >> in new controversy in mitt romney's campaign. what it has to do with it at a sketch -- etch a sketch. >> it is thursday morning. we're here in the weather center with a very foggy start to our day. just like the past couple of mornings we have the dense fog and advisory. it is in effect for the majority of the region, especially the east of the blue ridge. it goes through the morning until 10:00 a.m. the

space prevent him from being able to govern a nation and incidents of daily take freddie macin fannie mae are supposed to help american all owners so why are they leaving millions of us in the dust. in the rest of the rest of the news what does the restaurant chain waffle house have to do with the war on unions the answer can be found down in georgia by republicans in states farther up north like wisconsin ohio and indiana are trying to break unions by getting rid of collective bargaining republicans in georgia are trying to silence unions by outlawing one of the most basic forms of union protest picketing and let's just say one of the lead advocates of the legislation as a certain affinity for waffles joining me now to tell his story is that giuliani communication and outreach coordinator with united republic and writer for republic report zed welcome back to the program and thanks for having to have you here with us first things first of what what is this anti picketing law proposed in georgia shares so it's actually no it's a really radical law what it does basically is it outlaws any

the first people are more familiar with the failure of fannie mae and freddie mac, the government mandate that banks make bad loans for houses and how that led to the and it's a crisis. and then the question of how the obama administration, the latter part of the bush administration reacted to that with bailouts and the stimulus funding. difference stimulus packages, not just the big one we generally think of. why that actually made the recession worse and the recovery weaker and creating a fewer jobs, increasing gdp less than other countries which did not do stimulus spending and that our recovery is weaker than previous recoveries because -- you can compare what we are going through now with the reagan recovery, the for recovery, recoveries back to the great depression, or you can compare it with other countries that are going through what we have been going through the last several years. in both cases the obama recovery is weaker, less strong, and in some cases bizarrely weaker than what has happened in the past. why? well, unlike reagan who got a deeper recession in terms of destruct

>> i think support of the bank bailout receiving money from fannie mae and freddie mac really precludesng him. tea party was started because republicans voted for this bank bailout of wall street. for him to actually get paid to support is non-starter for most tea party folks. >> look, i know ron paul. i served with ron paul. i think ron paul is a friend of but every time i have been in the congress with ron paul he has consistently voted no on everything. wait a second. wait a minute. every congress needs one ron paul, you can't have more of them. there is a difference between being a member of congress where you are in the permanent minority always voting no and being a president of the united states just as newt gingrich went beyond the position of the loyal opposition to leading the loyal opposition to being the majority and forcing bill clinton to accepted balance budgets. forcing bill clinton to have welfare reform. you have to lead this country. you have to have ideas and be able to accomplish something. >> what do you want to make up your minds? what do you want in the next few

probably like why it's going to take ten years out of the fannie mae. insuring-- >> 70% of the mortgages. >> and to walk away from it slowly. >> matt, the final word on this. i think what should happen. they should have realized this and told us the truth. it would cost a couple hundred billion dollars to fix the issue and cut the cord right then. julian is right. you can't cut the cord now and we're stuck. the government is stuck and it's going to hit probably 3, 400 billion ten years from now and coming out of our pockets. >> thanks, guys. and thank you, julian from joining us. >> thanks for having me. >> the volt, now coming to halt, at least temporarily. and bad news for gm, but it might juice up one company's profits. the  >> predictions? and matt is on the hot seat. >> well, the nasdaq hit the big 13,000 number the first time since 2000, since the tech darling, intel. and i think a 3% dividend. >> brenda: jonas bull or bear. >> 5,000 to de30%, that's not going to happen. >> brenda: gary b, your prediction? >> brenda, at&t came out and says we're

>> i think support of the bank bailout receiving money from fannie mae and freddie mac really precludesdering him. tea party was started because republicans voted for this bank bailout of wall street. for him to actually get paid to support is non-starter for most tea party folks. >> look, i know ron paul. i served with ron paul. i think ron paul is a friend of but every time i have been in the congress with ron paul he has consistently voted no on everything. wait a second. wait a minute. every congress needs one ron paul, you can't have more of them. there is a difference between being a member of congress where you are in the permanent minority always voting no and being a president of the united states just as newt gingrich went beyond the position of the loyal opposition to leading the loyal opposition to being the majority and forcing bill clinton to accepted balance budgets. forcing bill clinton to have welfare reform. you have to lead this country. you have to have ideas and be able to accomplish something. >> what do you want to make up your minds? what do you want in the next

get ready to fork over more of your taxpayer cash, because fannie mae it in the hole for $4.5 billionage giant is going back to the u.s. government for yet another bailout. this is the largest bailout in the history of this financial debacle and eric bolling is the perfect person to bring in to ask about this, fox business network and of course from "the five". eric, when i heard this, they're going back to the till for $4.6 million, we already gave them $150 billion, including very nice pay packages for the executives who ran this thing into the ground, they left unscathed and with no investigation into what they did, and now, they're saying it could go to $259 billion. think about $800 million, in the billion dollars stimulus package and what kind of chunk 259 is of that. >> part of the problem is, can you get this white board, 2009, obviously, this is fannie mae, $32 billion, things looked better, $7 billion, and oh, maybe things are turning around? look at 2011, $16.4 billion. if you add the two of, so far fannie and freddie have taken $150 billion. together you've got the number

her recent book with joshua rosner on crony capitalism at fannie mae is called "reckless endangerment: how outsized ambition, greed and corruption led to economic armageddon." welcome. >> thanks, bill. >> you just heard david stockman say it could happen again. do you think it could happen again? >> it will happen again and the unfortunate fact is we did not fix the problem. the dodd-frank legislation which was supposed to be the fix-it for the enormous crisis that erupted in 2008 failed in so many ways to really address the major issues, the most important being too-big-to-fail, did virtually nothing to cut these big and impossible to manage banks down to size. but there are other elements to the dodd-frank law that i think are also problematic. now we have hundreds of rules being written by the regulators and although it might make sense that they know what they're doing a little bit more than maybe your, you know, average lawmaker, what it did was it gave the financial services industry two bites at the apple. they can lobby their lawmaker when dodd-frank is being written and now t

we've got fannie mae and freddie mac losing $6 billion a quarter of your money.nd what do they want to do? they want to expand another government bank. so get this right. the fannie mae and freddie mac that are government banks are losing $6 billion a quarter. just recently they wanted to give them multimillion dollar bonuses. they said, well, you've got to pay people if you want to keep good talent. you know, my question is, is how much talent does it take to lose $6 billion a quarter? i think there are people here today watching the senate that would take $19 million a year to run one of these government banks to have your only record be that you lose $6 billion a quarter. that's outrageous. and they're wanting to expand a new government bank and give money to very wealthy corporations that are making a profit. it makes no sense whatsoever. >> senator rand paul made his comments on the senate floor earlier in the day. meanwhile, the senate democratic leader harry reid attacked the house republican leader eric cantor on this issue for his demand -- this is from

because they make more money on those than they do on loans that are written today if you look at fannie mae for example the bonds that they're selling to investors today are three s. three percent coupon more or less the old paper is five and a half and six percent coupons so the big banks failing may freddie mac. don't want those consumers to prepay and refinance this is a problem because housing is the major conduit for the feds monetary policy if you can't really liquefy these households and help them get a little bit of breathing room in terms of disposable income then we're not going to have a recovery meanwhile but you know by keeping interest rates low the fed is taking a hundred billion dollars a quarter out of the hands of savers you know think about old people who did the right thing they say on monday and we're taken their income away so there's no recovery the latest radar is heavily but it's not as i believe me we know we talk about that answer a question of savers all the time but to your point about the impact of people not having more money and but it happened in the case wh

that's becauss most are not bank that issued their either to fannie mae or freddie mac or to investors held by thh banks &pann some of their investors will be modified. the rest of the borrowers will bb left out in the cold.for busiiess p-----nd-----cnn.sc overseas didn't keep him away. away.how this soldier was there... for hissbaby's birth. birth.city workers caught drinking and gambling on the &j investigators on exactll what on.

bill of rights, also supporting the call for the suspension of foreclosures of loans controlled by fannie mae and freddie mac and to provide for a principal reduction to keep families in their homes. a resolution also urges all city and county officials and departments to work proactively to insure that san francisco residents do not fall victim to unlawful foreclosure practices and most importantly, is calling on banks, especially wells fargo, to suspend foreclosure activities until such time the state and federal measures are in place to protect homeowners from unfair and unlawful practices. i come to this -- work on this legislation with many community groups from across san francisco. there is the california air with reinvestment coalition, residents from our different districts, and we are facing a crisis even here in san francisco. it has now -- not always been recognized we have a foreclosure crisis. often in california we talk about the central valley as having a crisis in foreclosures but there aretwo but -- there are to be together district and neighborhoods that have a high level o

, hitting their lowest point the housing market's current turmoil, a survey released tuesday by fannie maeme ownership is still a goal for most americans.two-thirdss of renters surveyed saa they intend to buy a home sooeday. ameeicaas confidence held fairly steady this month. butt thee onference board said consumers are a bit more wwrried about inflation, prices.. and "harryypotter" aas can inally follow the adventures of the world's most famous boy wizard on their e- potter" series is now available t pottermore... that's author j-k rowling's webbste for all things potter. the digital books are pompatible with all leading e- readers, tablets, personal computers and smartphones. the price of tte e-books range prom seven to 10 dollars.for business brief, i'm helby linn -----end-----cnn.script----- millions... find out hhw much now.police shoot and kill a baltimore man after repoots that heewas going to stab his ownnmooter.find out whh she's now claiming the officer was trigger happy.

jenna: well, growing outrage over executive pay at fannie mae and freddie mac, and now we're seeing someess network's rich edson is live in the washington with more on this. rich? >> reporter: good afternoon, jenna. fannie mae and freddie mac combined are still losing money, and taxpayers are still keeping them in business, so far for a total of $180 billion. meanwhile, last year their chief executives combined earned just shy of $10 million. those executives are on their way out, they're leaving fannie and freddie once the government-supported companies find replacements. and now fannie and freddie's government regulators say officials have set limits for whoever takes over, a target of $500,000 a year in pay. the chairman of the house financial services committee says it's about time. in a statement he writes: the lavish compensation packages, million dollar bonuses that have been given to top executives in these two failed companies are an outrage to those taxpayers whose assistance is the only thing keeping fannie mae and freddie mac afloat. though one analyst and former federal hous

>>neil: but fannie mae and freddie mac were kept out of that.uest: they agreed to the standards but they agreed because everyone had something to gain from doing it and when is the last time you saw 49 state attorneys general, republican and democrat agree on anything. >>neil: but here is what confused me about that deal. for those who are robo signed out of their homes, for example, i think they get $1,500 or $2,000 check for what they went through but it applies to everyone forced out. how do you distinguish? people hearing this are saying, wait, that is not right. >>guest: i am glad you asked because there is confusion. we did a lot of investigations here and most of what we found was that someone had their paperwork lost and they had to pay an extra month, maybe some fees were charged, and most of the damage was not people lost their homes because they should not have but it was something that could have cost them $1,500 or $2,000, it was lick a -- a class action. >>neil: you did not see a difference, right? did everyone, or will get somethi

right now, 75% of mortgages are guaranteed by either fannie mae, freddie mac, or the federal housinga moratorium on foreclosures based on the emergency provisions that he is empowered to enact. i believe the state governor should do the same and the city of san francisco should do the same. i was out -- at a demonstration at the bayview on friday. it was very impressive. 100 people came out in the rain. a longshoreman, his home was being fraudulently taken from him. i believe i have seen the study in which 90% of the foreclosures being done in the u.s., there is one irregularity or fraudulent part of it. thank you. president chiu: thank you. next speaker. >> hi, i am morning star, a resident and voter. i have lived in my apartment since 1985 during the aids epidemic. i lost all my neighbors through aids and i am the only one alive who is still there. a year ago i came to you because i needed help. i have not been slipping for a long time -- sleeping for a long time because it is too noisy. there are 22 restaurants, that is too many. there because of public health because -- they're n

ginnie mae fannie back freddie mac. fannie mae they're all besley bundled together in this huge ponzi scheme where the end all i doubt that is houses that house prices continue go down and if economy continues to strike and as tax revenues to to collapse because everyone is continuing to pick up part time jobs at least a full time jobs then the bailouts continue but of bailouts are based on more part money which means that the whole system becomes more unstable but hey the top one percent it gets richer in providing the arson that is the economy now you are the victim of a slap suit as a p.p. as a result of your reporting on a case of mortgage lending fraught related f.h.a. loans tell us about you know this was related to one of the most egregious scams as i mentioned there are people who had various ways are frauds only getting these mortgages underwritten by f.h.a. and backed by the government and one of the most egregious scams was what is called seller funded down payment assistance and these operations are more tha

>> i think his support from the bank bailout receiving money from fannie mae and fred tdie m stops mesupporting. for him to get supported is a nonstarter for most. >>> look, i know ron paul. i served with ron paul. he's a friend of mine. but every time i have been in the congress with ron paul he has consistently voted no on everything. wait a second. every congress needs one ron paul you just can't have more of them. there's a difference between congress with a minority and being president of the united states just as newt gingrich went beyond the position of the loyal opposition to leading the loyal opposition to being the majority and forcing bill clinton to accept balance budget, forcing bill clinton to have welfare reform. you have to lead this country. you have to have ideas. you also have to be able to accomplish something. >> what do you want to make up your minds, what do you want in the next few weeks? what are you looking for? have they told you it in>> i am looking for someone who believes in america. and has principals. principals and ideas. >> have they told you what you

this time freddie mac has requested 146 last supported cousin fannie mae asked for $146 million.have borrowed it hundreds of billions, shep. >> shepard: all right, rich. how much were these executives making and why the cuts? >> well, officials say over the past two years the ceos of fannie and freddie made a combined $17 million. they're leaving and the government says those replacing them will earn a target of a half million dollars each. their regulator is imposing the caps. he says they can't go much lower because a sudden and sharp change in pay from these levels would certainly risk a substantial exodus of talent. costly operational failures, would in my opinion, be highly likely. they are managing trillions of dollars worth of mortgages here though others in washington have argued the president, treasury secretary and fed chairman have demanding and complicated jobs as well. and those positions pay six figures not seven. shep? >> shepard: rich edson live in washington. rich, thank you. some help is on the way for u.s. homeowners now. bank of america is promising mortgage r

we should have gotten control of fannie mae and freddie mac, and for the person who proposed this bill, to say that we have underfunded the cfpb and the sec flies squarely in the face of the facts. hilo hugo party heard the facts. mandatory spending on the cfpb is going to be $5.5 billion. the sec funding has gone up as you heard i 77% and got unelected bureaucrats that made close to $200,000 a year, four times the average american salary. this is not the solution. the solution is to repeal dodd-frank and put in regulations to make fannie mae and freddie mac be accountable and with that i yield back. >> the gentlelady is recognized for one minute to close. >> thank you mr. jan thank you colleagues. i do want to say that i agree with my colleague on the other side of the aisle who said it's important to return to the rule of law and that is exactly withism and does. is critical that we support this important amendment to the sec in the cfpb. as transactions have become more and more complex is important for consumers to be able to understand them and the cfpb is doing important work of