and for fannie mae and freddie mac, i have a brief anecdote. back in the '70s when i was at hud, i was supposed to be the prudential regulator, but, of course, that was only supposed to be 1% of my time. it was like with one eye shut. they really weren't going to be serious with prudential regulation. they had a lot of people involved with making fannie and freddie mac getting housing goals. it amounted to me making one call a year to david. david, how are you doing today? it's great over here. it's fantastic. as i look at your books, you're $10 billion under water. yeah, who cares. we can have as much debt. our debt hasn't risen. what different does it make? how many financial analysts do you have in that shop? he says i think there's one guy down there writing newsletters. i said how about legislative affairs and people, you know, in charge of the care and feeding of hud? he said there must be 50, 75, they're growing like crazy. that tells you what you really needed to know about these entities. they didn't face a bankruptcy constraint. so wh

how could they achieve comparable leverage to fannie mae and freddie mac to compete when we know that was set by the government? why didn't the smart at-risk investors stop buying the securities? if the smart guy stopped, then the market would be shut down. how could everybody for eight years make up front book and cash profits in a money-losing operation? before it closes down. and why didn't the speculators stop them? if you can answer those five questions you will know why the pls was allowed to go on for so long. and the short answers are it had nothing to do with market discipline and market failure because there was no market discipline. markets had been replaced by regulation across the board. you have one or the other. and we had bad regulation in each case. the affordable housing goals trumped prudential regulation. and the regulators didn't stop them from making bad loans. and then i'll show why and how the s.e.c. and bank regulation arbitrage provided similar leverage to these private label securitizers as fannie and freddie mac were able to achieve. the smart money was rep

so the real problem was, fannie mae was going to be allowed to go for broke. and savings and loans were told to go for broke, too. work your way out of this problem, and we won't tell anybody the capital is fake. but the savings and loans were told to go for broke in real estate. i did it in junk bonds and was successful. the ones who did it in real estate and real estate development got wiped out. only partially successful, a big markdown in the bonds. so i don't know. what was the -- what would we do differently? i mean, there was never a good time. when the reagan administration came in, i contacted the council of economic advisers, and i said, you know, now is the time to do something when the fannie mae problem before it explodes. and, of course, the housing, you know, market was depressed when interest rates went up, oh, this isn't a good time. it's never a good time. >>. [ inaudible ] >> could he have kept the ball flying? why did he -- put them into conservatorship? >> oh, i didn't read his book. you would have to ask him. i think the chinese said, we

fannie mae's stock price quadrupled from 1990 to the year 2000. by the year 2000 we had already been in a housing boom for about three years and the pool of potential borrowers was a lot weaker. i want to point out two elements of the characteristics. one, the down payment requirements had basically been replaced because these purchase money second mortgages could be -- could bypass the private mortgage insurers and they could be funded in the capital markets or fannie mae was buying purchase money seconds. we no longer had the borrower with any stake in the game. the second thing is a lot of these loans had teaser rates which means they didn't even have to pay the full monthly payment and they didn't have to have enough income to qualify and they could refinance after the teaser rate was supposed to go to the fully indexed rate. so the borrowers worked only so long as house prices continued to rise. and they didn't care what they paid for the house price because they were putting no equity into it. so what that essentially leads to is a go for br

at sum just weeks before the collapse of fannie mae and freddie mac lehman and a.i.g. the department of justice also rejected calls devate to task force regulation. using these complex cases, under staffs and poorly past, only much later did the justice department why had there been so few prosecutions out of this mess? some of the prosecutors that i've spoken to in my reporting argue that the types of fraud perptrate during the s and l crisis were easier to litigate. those cases were characterized by embezzlement, stealing and other bad beepbare that was more easily identified and exposed. while we do know that wall street likes to create complexity and there's no doubt that the securities involved in this were far more convolume luted and impen trabble for investigators to farm. i think a more interesting reason for the failure to prosecute lies with an answer i've been given by some prosecutors. it brings us right back to the collosal regulatory sale here that fueled crisis. we all know regulators declined to rein in dubious practices in the boom years. but the fail

. >> in the cases of aig, gm, fannie mae, freddie mac. and could we have order among some of the staff? thank you. this is how the system is supposed to work. those who take the risk are the ones who suffer the loss or realize the gain. it stands in sharp contrast to the regime of funded bail outs. we've experienced in the cases of aig, gm, fannie mae, freddie mac and slin dra. because the bank has more than sufficient capital, the overall system is protected by being brought down from the mistakes of an institution that is deemed too big to fail. the most important lesson to be learned has nothing to do with any of the 400-plus rules found in the 2300-page dodd frank act, the most important lesson is how safe the capital is to our overall financial system and there is no capital or liquidity problem at jpmorgan and i think that is say primary concern that regulators, you're to be complimented that you've ensured that there is sufficient capital at that institution. a bank with sufficient capital is able to absorb losses, whether they're

that summer, just weeks before the collapse of fannie mae and freddie mac, lehman and aig, department of justice also rejected calls to create a task force devoted to mortgage related investigations. meeting these complex cases understaffed and poorly funded. only much later did the justice department establish a more general financial crime task force. why had there been so few prosecutions that succeeded out of this mess? some of the prosecutors that i have spoken to in my reporting argue that the types of fraud perpetrated during the s&l crisis were easier to litigate. those cases were characterized by embezzlement, self dealing, and other bad behavior that was more easily identified and exposed. what we do know, wall street likes to create complexity, and there is no doubt that the securities involved in this debacle were far more convoluted and impenetrable for investigators. but i think a more interesting reason for the failure to prosecute lies with -- lies in an answer i have been given by some prosecutors. it brings us right back to the colossal regulatory failure that fuel t

aside from fha and va the principal source was fannie mae and freddie mac. aranteed to securitized and rap loans in the presidential mortgage. when they came under tremendous pressure and i mean tremendous pressure in the sub prime crisis freddie and fannie went under a lot of dress and became a wounded brand and are now in a conservatorship. they marco --demarco is doing a good job but they're not where they should be. there has to be something to replace fannie and freddie. everyone says get rid of them. if you do that you have nothing to back them up. people forget when the depression hit banks got out of the business of making loans. we passed laws to encourage savings and loans and gave them a preference against banks so they could accumulate capital and make loans. after the 1986 tax act savings and loans went under. we had the rtc. would replace them? freddie mac and fannie mae. if they leave there is nothing left. i want to tell you what my recommendation is because it brings liquidity to the mortgage market that will bring about jobs and improve home

when you deliver it through these third party enterprises, fannie mae and freddie mac, that's not a very good way of subsidizing homeownership. >> more on sunday at 8:00. >>> yesterday the defense department hostinged it's first pride month event since the repeal of don't ask, don't tell. we'll hear a discussion on the value of diversity in the mi military as well as remarks from leon panetta. this is an hour. >> good afternoon. welcome to the department of defense lesbian, gay and transgender national event. please stand and remain standing for the national anthem. ♪ ♪ >> please be seated. please direct your attention to the center screen for the president's lgbt pride month video message followed by secretary panetta's pride month message. >> i've often said that the true genius of america is that america can change. we can pass laws to write wrongs. we can soften hardened attitudes. our union can be made more perfect. change never happens on its own. change happens before ordinary people, countless unsung heroes of our american story stand up and demand it. the story of lesbian, gay,

i wrote, we had a conversation with barney frank will work as a team of his undying support for fannie mae. he was particularly difficult with the regulator that was put in place in the 1990's to try to beef up regulation on fannie. he was tough in congressional hearings. he would rail. he made life difficult for this regulator. we asked him, what was the idea? he said he felt there trying to be too adversarial. i said, moon. adversarial sounds like a good thing for a regular to be. it is almost like a journalist. people who ride a beverage not like what i write, the adversarial. i'm not part of their corporate spin. a regulator should not the end member of the institution they're regulating. how he is seen by members of congress. that was kind of an eye opener for me. i would argue for a more adversarial relationship than less. >> one more question. >> this person has been very patient. there you go. >> i do not see any hope for actual things happening. what you think is the ultimate answer? >> the ultimate answer for getting us out of the boom? i think we have to see a few cases. it woul

. >>> got-backed mortgage giant fannie mae appointed the top lawyer to replace the outgoing ceo. >>> in washington senate republicans blocked a democratic bill calling for equal pay in the work place saying the protection for women already exists, and that the bill would only create more paperwork for the government. >>> finally on the more pro-active side, italy is try to revamp the face of board rooms with pink quota, requiring public companies insure one third of their board members are women by 2015. >>> coming up, a yankee goes yard, the dodgers rally and the nats walk off in extras. celtics disspell any lingering notion they are too old or too tired. sports headlines are straight ahead. >>> for those of us who had a break from summertime temperatures, it's coming back. the forecast coming up you're watching "early today." >>> good morning if you're just waking up this is "early today." >>> in sports last night in the nba's eastern finals, the celtics had an answer to every miami move. taking them one win away from the finals. here's fred roggin with an early look at all sports

. >>> government backed mortgage giant fannie mae appointed the top lawyer to replace the outkboeg ceo. >>> in washington senate republicans blocked a democratic calling for equal pay in the work place saying the protection for women already exists, and that the bill would create more paperwork for the government. >>> finally on the more pro-active side, italy is trying to revamp the face of board rooms. with new so-called pink quotas, requiring public companies insure one third of their board members are women, by 2015. >>> coming up, a yankee goes yard, the dodgers rally and the nats walk off in extras. >>> the celtics disspell any lingering notions they are too old or too tired. the early morning sports headlines are straight ahead. >>> for those of us that had a break from the summertime temperatures, that is coming to an end. the photograph is coming up, you're watching "early today." r" ahead. >>> for those of us who had a break from summertime temperatures, it's coming back. the forecast coming up you're watching "early today." everyone's hair breaks. ♪ oh oh oh oh you see it in

if freddie mac and fannie mae leave, there sat the left. quickly and succinctly tell you my recommendation because it brings liquidity that will bring about jobs, improve home sales, help access and affordability notches to veterans, but all americans. yes, freddie and fannie securitize the guaranteed subprime loans, but basso is a mistake for us by congress. congress told them to own up to 13% of paper and affordable housing, which the markets and wall street determined to be subprime loan borrowers. soupy comics c&d started getting lost and started assaulting when the economy went down and they guarantee scott called against freddie and fannie and freddie and fannie lost 171 alien dollars. that is a problem will never correct and resurrect, but he probably will solve up a new propose, the mortgage finance agency, whose goal is to guarantee comes securitize residential mortgages, the phase themselves out over a ten-year period of time. if we put freddie and fannie from conservatorship to receivership with a structured bankruptcy and wind d

what they would do is they would nationalize fannie mae and freddie mac and refinance mortgage. but the only people writing home mortgages in america is the u.s. government. what a disaster. we've got to get the private sector back into this business. the business of the united states of america has to be business. we have to get banks to lend. we've got to stop talking about what the government's going to do for us and start talking about how we're going to fix the housing market. how are we going to get the economy going again? we know it. 10-year u.s. treasury interest rates at 1.5, but a guy with a bakery wants to go and open another one. he can't borrow at 1%, 2%, 5%. he can't borrow at 10%. and that's why we're not growing. that's why we've got serious problems. >> risk first lenders. mr. lutnick, i want to change gears a little bit. you run an investment company, a brokerage company among other things. i want to get your reaction to what went wrong as you sat and watched and maybe even participated in the facebook ipo a couple of weeks ago? and do you think that nasdaq ha

. >>> fannie mae taps a successor to michael j. williams.annie mae's general counsel and chief administrative officer. >>> kevin costner and stephen baldwin battle it out in court. baldwin is suing costner, claiming he was forced out of a $52 million deal involving clean technology used by bp for the 2010 gulf of mexico oil spill. >>> nasa receives a very generous gift from a government secret military intelligence space program. that's right. we have details. >> reporter: well, nasa had so many questions today, they had to schedule a second press call for reporters about this. they got two spy satellites from the national reconnaissance office, they said they were going to use one of those spy satellites to search the universe for so-called dark energy. i asked the nasa executives how they felt about receiving hand-me-downs from the national reconnaissance office and they told me that the agency doesn't have feelings. >> have a good night. thank you very much. when larry comes back, is president bill clinton's exclusive interview another ja

it has to be conventional or fannie mae or freddie mac type of product for it to work. >> why, for anybodyst versus refinance. >> a lot of people can't refinance. either they have credit issues that won't allow them to qualify for the loan or some people unemployed and done what's called a stated income loan and they don't verify all their income and are self-employed and don't commedocument it. you may want to look at that alternative. >> it is free in some part. >> there are small fees, 100 or $150. every bank does not do the recasting feature. checkicity with your bank and find out do they allow you to recast your loan. >> let's take an example. what will it save me. somebody has a mortgage loan for $225,000, how much will they save? >> $225,000, 7% interest rate, say, i'm interested what i can do to save money. you want to have a lump sum of money, maybe inheritance or windfall and say $20,000 they want to put down on a 30 year fixed loan, how looking at a month payment of $1496 before recasting. once you put that $20,000 down, it will go down to $1300 or so. you're saving about $150 a

government-backed mortgage giant, fannie mae has appointed its top lawyer to rae place its outgoing ceo in washington, senate republicans blocked a democratic bill calling for equal pay in the workplace, saying the protection for woman already exists. and that the bill would only create more paperwork for the government. >>> and finally on a more proactive side, italy is trying to revamp the face of its boardrooms with so-called pink quotas, requiring companies insure one-third of their board members are women by 2015. >>> the gop blocking equal pay bill. last night on "politics nation" gillibrand said she thought the proposal addressed fairness and the economy. >> this is about opportunity for women to get equal pay for equal work that men do. it's about nearly every american family. most of our american families are two-income families. when one wage earner is not earning her fair share it's going to hurt the family and it's going to hurt the children. this is about fairness and about making sure that we really untap the economic potential of women. if they're only earning 78 cents on

but when you deliver it through these third-party enterprises, fannie mae and fed freddie mac, when you deliver the subz day through a public company with private shareholders and executives who can extract a lot of that subsidy for themselves, that's not a very good way of subsidizing homeownership. the that movie in 2008. >> more with gretchen morganson sunday at 8:00 on c-span's "q&a." >>> earlier today, there was a hearing held and we heard testimony on whether or not such benefits discourage work and hire earnings. this is two hours. >> good morning, everybody. welcome to today's joint review of how welfare and tax benefits can discourage work. before we begin with our regular session today, with opening statements, i would like to recognize a very special guest who is in washington, d.c. ian duncan smith, secretary of state for work and pensions for the united kingdom. we're appreciative he's joined tus d. the united kingdom is undertaking significant reforms to its tax benefit programs and reduce marginal tax rates. this is an issue that i've cared about for many years. we've bee

but when you deliver it through these third-party enterprises, fannie mae and freddie mac, when you deliver the subsidy through a public company with private shareholders and executives who can extract a lot of that subsidy for themselves that's not a very good way ever subsidizing home ownership. we've seen that at the end of that movie in 2008. >> more with gretchen morganson sunday at 8:00. >>> next weekend head to the state capital named in honor of thomas jefferson with book tv and american history tv in jefferson city, missouri. saturday at noon eastern, literary life with book tv on c-span 2, former senator and missouri first lady on family life inside the governor's mansion from her book "if walls could talk." also a butcher's bill, a provisions list from an shent mesopta mimpb a. and sunday at 5:00 p.m. eastern -- >> at one time in 1967 this was called the bloodiest 47 acres in america. >> a warden takes you through the missouri state penitentiary. and walk through history through the governor's mansion. once a month c-span's local content vehicles explore life in cities across ame

everybody aware of how much it's costing, but when you deliver it through the third-party enterprises, fannie mae and freddie mac, when you deliver the subsidy through a public company with private shareholders and executives who can extract a lot of that subsidy for themselves, that is not a very good way of subsidizing homeownership. i think we've seen that, the end of that movie, in 2008. >> more with gretchen morgenson sunday at 8:00 on c-span even "q&a." >>> earlier this week, new hampshire senator kelly ayotte talked about automatic defense budget cuts set to go in effect next january. those cuts are the results of congress unable to agree on deficit reduction measures. held at the brookings institute, this is half an hour. >> we're really thrilled to see the two panels that are following me on this because it's a great array of national security experts, department of defense officials and members of our defense industrial base that i'm sure will give you even greater insight than i'll provide today, but what i'd like to do is provide the context of where we are with respect to this issue

this was the same problem that arose with fannie mae and freddie mac and ultimately has led to about a $200 billion taxpayer bailout and more to come. i would like to hear from the treasury and the federal reserve board as to how the designation process will eliminate rather than create too big to fail companies. we will also hear from the director of the bureau of consumer financial protection, the bureau's regulation and supervision will impact the safety and soundness of our banking system i believe. unlike other bank regulators the bureau is not required to consider safety and soundness when it writes rules or takes actions against banks. i think this is becoming apparent as the bureaus proposed rule will impose huge costs on banks and create serious confusion about what banks need to do to comply with consumer protection laws. for example, the director of the bureau has unilateral authority to declare products to be abusive. however, the bureau has said that it will not write a regulation to clarify what the term "abusive" means. think about it. the refusal to write a rule stand

but when you deliver it through these third-party enterprises, fannie mae and freddie mac, when you deliver the subsidy through a public company with private shareholders and executives who can extract a lot of that subsidy for themselves, that is not a very good way of subsidizing homeownership. i think we've seen that -- the end of that movie in 2008. >> more with gretchen morganson sunday on cspan's q and a. >>> earlier this week the middle east institute in washington hosted its third annual conference on turkey. that day-long event focused on the domestic and regional challenges of that country, syria, post-arab spring and turkish relationships with the u.n. and the u.s. there was an incident of syria shooting down a turkish jet. senator john mccain, the current turkish ambassador to the u.s. and chief advisor to the turkish prime minister. they also heard from academic scholars, journalists, and former u.s. ambassadors. this took place at the u.s. national press club here in washington. >>> good morning. if we could all please take our seats. well, thank you very much. very good morni

that's what they saw with fannie mae and solyndra. are you telling us on that $400 million in equity there's no return on that equity until the debt has been repaid? >> i'm saying in the water fall of payments, the debt service happens before there's any return to equity. i don't know the month on month, year on year but debt has a high priority than equity. >> you say the debt service is above the equity on the water fall. what about the repayment of the principal of the loan? >> that service is interest plus principal. >> okay. y'all collect fees and management consulting fees? >> operating fees. operating fees are pretty small because there's no moving parts. operating fees for any project go above debt service. you have to keep the projebt operating. >> i have no difficulty with that. is there any debt? have the owner of the company extended any debt to this cvrs program? >> no. >> it's just equity? >> we don't put debt in any type of project. we're not debt providers. >> what are the repayment terms? how long will it take to repa

dimon's whose bank lost $2 billion in its own money, it has never heard from executives of fannie mae and freddie mac who have lost nearly two hundred billion dollars of taxpayer dollars. perhaps the committee could turn its attention to the gse compel massive public losses when it completes the review of the private losses thus far of jpmorgan chase. thank you, mr. tippett >> thank you. mr. richard shelby. >> one opening statement will be permitted to the ranking member. i will note that senator warner is absent to attend his daughter's graduation but he will be submitting a statement and questions for the record. i want to remind my colleagues that the record will be open for the next seven days for opening statements and any other materials you would like to submit. now, i will introduce a our witness. mr. jamie dimon is the chairman of the board, president and chief executive officer at jpmorgan chase and co. mr. dimon, your full written statement will be included in the record. please begin your testimony. >> chairman johnson, ranking member shelby, and members of the committee,

the principal source of mortgage money in our country was frannie and freddie mac and fannie mae. when they came under tremendous pressure, and i mean tremendous pressure, in the subprime crisis, freddie and fannie went under a lot of dress. they became a wounded brand. they are now in a conservatorship. they are not the agency they really need to be. they are not because of politics, but there has got to be something to replace freddie and fannie. everybody says get rid of them. if you get rid of them and do not have anything to back them up, people forget that after the depression banks cut out of the business of making loans. we pass laws and given a preference against banks so that they can accumulate capital to make loans. after the 1986 tax act, savings and loans went under. r thetc -- that rtc came in and freddie mac and fannie near placed them. if they go down, there is nothing left. i want to tell you my plant. it will bring back jobs and help affordability, not just to veterans, but to all of americans. freddie and fannie mae a bad mistake with securitized in subprime lo

but when you deliver it through these third party enterprises, fannie mae and freddie mac and private shareholders and executives who can extract a lot of that subsidy for themselves, that is not a very good way of subsidizing home ownership. i think we have seen that the end of that movie in 2008. >> more with gretchen sunday at 8:00 on c-span's "q&a." >>> holding a hearing on the deceptive targeting practice of schools against veterans. in april, president obama signed an executive order aimed at protecting veterans of such practices. the hearing examined who would be affected by the president's order. multiple veterans organizations testified. this is just under two and a half hours. >>> good afternoon, everyone. please take your seats. we'll get started. we are going to have votes probably within the next hour or so so i think we'll go ahead and start the committee hearing. went to welcome everybody to the subcommittee on economic opportunity. to our oversight hearing and we'll be examining the executive order 13607 and the impact on schools and veterans. as you all likely know, t

but the banks and fannie mae and freddie mac have been dragging their feet about implementing this program. i think it deserves more. more host: does the survey say anything about areas of the country that might have been affected more or less when it comes to how families do as a whole, economically? guest: if you come from ford or one of the states hardest hit by the housing crash, then you are more affected. the stock market affects everyone roughly equally. -- if you come from florida or one of the states hardest hit. florida and nevada. host: this is from atlanta -- and hartford -- guest: i have long argued that there should have been more action, more stimulus, because what we know now is the stimulus -- stimulus was split over many years and basically offset all the cutting that was going on at the state level. so there was almost no stability. we really needed stimulus. the federal reserve, which was aggressive, could have done more. the recovery has been weaker than anyone in the administration or the fed expected. we are learning more about. i think it has to do with the fact tha

when you deliver it through these third party enterprises, fannie mae and freddie mac and when you deliver it through a public company with private shareholders and executives who can extract a lot of that subsidy for themselves, that is not a very good way of subsidizing homeownership. i think we have seen that at the end of that movie in 2008. >> more with gretchen morgan son sunday at 8 on c-span's q&a. >> each week american history tv's american artifacts visits historic places. during the civil car jefferson davis and his family lived in this mansion many richmond, virginia, now referred to as the white house of the con get raes. it was saved from demolition in 1896 and since 1916 restored to wartime appearance. american tv visited the house to learn about the war veteran and leader. >>> this house was built in 1818, the private residence for john brokenbrough, a doctor and the president of the bank of virginia. he lived here with his family until 1844. the house passed through several more private owners after that. in 1857, it was purchased by lewis crenshaw, a wealthy flour mill ow

morgan in the others are the new fannie mae and freddie mac. the republican party has often criticized fannie and freddie of i've often criticized them as well so this is a potential area of agreement under conservative policies under libertarian policies we should not be subsidizing institutions like this but we are massively doing so and pretty much economists across the board think that's incredibly risky and likely to cause the next crisis so is that the type of thing we could get agreement on i have to wrap it up in force exactly how to break the gentlemen thank you for joining us tonight well am i i don't know that seconds in traffic at a stop on the side of the road so thanks for making it work thanks guys. hard just to have a show the senate doesn't want consumers of making informed decisions so find out which industry they're doing the dirty work for in our tool time aboard. news today violence is once again flared up. these are the images the world has been.

the same people who said fannie mae and freddie mac were just fine, so the downgrade doesn't actually get me terribly excited. the optimist in me thinks that this might prove to be, however the election turns out that that first run of the debt ceiling which ended pessimistically and is a bit of a train wreck t might be the fiscal equivalent in the fullness of time of the raykubic arms control which ended in fear and gloom when the moment people came back and said we have to see our way through this. it's possible. we may have to go a couple more rounds on this and we can display out lots of games about a lame duck election and election results and other matters but i'll stop there. >> norm, isn't this just a modern version of the gameful chicken and the republicans are playing it better than the democrats? >> i will say i was appalled by what happened with the debt limit and we've written about this. you don't play chicken with the full faith and credit of the united states, and you know, it's true. the debt limit, which is a stupid thing to do first of all, we're one of only two cou

approaches for conducting appraisals unlimited, we found sales comparison approach is required by fannie mae, freddie mac and fha and is used in nearly all appraisals. we also found the cost approach in which an estimated value uses data on land value and that it would cost to be placed to reproduce is often used in conjunction with the sales comparison approach. second, conflict of interest policies have changed the processes and the appraisal industry more broadly or specifically, the budget increases of the companies. in july 20 then reportedly concluded by setting minimum standards that address key functions, on behalf of the appraisal purposes and provides greater assurance of credibility and quality of the appraisal provided by amc. therefore we recommend that these regulators consider addressing several key areas for selecting appraisers and joint rulemaking to set minimum standards and to apply and register and seeds. now i'll briefly discuss their evaluation of the appraisal subcommittee. it's been performing under title 11. we found several weaknesses, which are generally associate

but when you deliberately, through these third party enterprises, fannie mae and freddie mac, when you deliver the subsidies from a public company with private shareholders and executives who can extract a lot of that subsidy for themselves, that is not a very good way of subsidizing homeownership. i think we have seen the end of that movie in 2003 more with gretchen morgenson sunday at 8:00. july 7 and eighth, book tv and american history to be explores the heritage and literate culture of missouri's state capital, jefferson city, with the global content binnacle and book tv of the campus. >> this is what we like to show to visitors one day come into the archives year at the library. this is a book about harriet tubman, called "the moses of her people." this book was written in 1866. the seventh thing about this book is harriet tubman made her mark in there, and that is really the most favorite photograph, if you want to call it that. obviously, she could not read or write, so she left her mark, the sign of the cross. >> watch for book tv and american history tv from jefferson city, m

india america which remodeling through its kind of savings companies fannie mae and freddie macas the biggest financial disasters of all time remodeling mortgage insurance companies all of that happened and there's nothing to do with classical. i mean of course neglects to mention the firms that were saved by bailouts but that aside is he of course going to protect his too big to fail status and monopoly because that's what allows and enables a firm like his to be a rent seeker well that's pure nonsense from chairman don i actually don't know how he gets away with that but just kind of take what he said for a moment you know there was a lot of stress and fannie and freddie and indy macin all that but why was that because the housing market was collapsing why was the housing market collapsing because of unsafe lending by banks and other originators and why was all that lending going on because wall street could package to the securities and sell to german banks who had no idea what they were buying so if you didn't have that wall street securitization machine and that wall street deriv

but when you deliver it through these third party enterprises, fannie mae and freddie mac', whn you give it to a company with private shareholders, you can extract a lot of subsidies for themselves, that is not a very good way of subsidizing home ownership. i think we saw the end of the movie in 2008. >> war with gretchen morgan's announcement -- more with gretchen morganson on q&a. >> next, reaction to thursday's supreme court ruling on the affordable care act. then matt kibbe on the court decision and would

freddie mac fannie mae leave there is nothing left. so i went to bring my recommendation to improve home sales and access affordability to all americans. yes they made a bad mistake that was forced by congress. they said get about 13% of its paper but wall street decided to the subprime borrowers and then they started to default and the guarantees were called. they lost $171 billion. may can never correct but the mortgage finance agency based themselves out over a tenure period of time. put fannie and freddie into receivership open the mortgage finance agency of qualified residential mortgage. the recession that began was not of over lending but under underwriting. people were not prepared. then we had a crescendo of difficulties. you must have of 5% down payment and supplemental insurance between 50 and 70% so half of the obligation is insured when you make the loan. the bar were harassed to have the income. and a credit report and the appraisal comment title insurance to search the title, going back to the old fashioned days of putti

plus fannie mae unveiling the latest economic and housing outlook. first only on "sidewaquawk box."e, it's really about building this extraordinary community. american express is passionate about the same thing. they're one of those partners that i would really rely on whether it's finding new customers, or, a new location for my next restaurant. when we all come together, my restaurants, my partners, and the community amazing things happen. to me, that's the membership effect. [ male announcer ] aggressive styling. a more fuel-efficient turbocharged engine. and a completely redesigned interior. ♪ the 2012 c-class with over 2,000 refinements. it's amazing...inside and out. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. . >>> in other news we've been following walgreens buying a 45% stake in alliance boots for $6.7 billion. also an option to acquire the rest over the next three years. walgreens ceo greg wasson joining us last hour said this. take a listen. >> we're bringing together two iconic brands of similar heritage and c

he is also the guy working with jim johnson, corrupting fannie mae., he is national security advisor and he is known in washington as the leaker in chief. >> sean: caddell's allegation is critical to the investigation, because tom donalon leads the briefing every day inside the oval office. that suggests as the investigation continues we may ultimately find out that the president himself, was the one who, in fact, authorized the release of this highly classified information. here on more of the scandal author of the number one best sell lor "demonic" ann coulter and the fox news contributor pat caddell. you a democrat and you are saying you definitively know. >> i didn't say i definitively know. i said i definitively know who it was. there is a difference. dianne feinstein. this is a he said putting american policy and american lives in "jeopardy." the "new york times" review of mr. sanger's book by thomas ricks, one of the putzer prize winning "wall street journal," "washington post" defense expert. in his interview, in his review in the "new york ti

a lot of washington insiders are fingering tom donalon who is an old political campaign guy and fannie mae lobbyist that he is doing can the leaking. can a couple of u.s. attorneys actually get into the white house to investigate at that ultra senior level. or do we, in fact, need an indppt prosecutor with some real weight. >> well, if you want the fox guarding the hen house, then these two can be the foxes. but what we want is an independent investigation. we've had special councils in the past. this is not a humongous deal. but again, democrats and republicans are appalled at the leaks and we need a thorough investigation, and it should be done independently. when you're dealing with a chief prosecutorial arm of the united states government. so a couple of investigators, i don't care about their credentials, we need a special council, independent and find out how this intelligence got leaked. >> i myself am not accusing this tom donalan. there may be many other leakers, i have no idea. don't we need a really special independent council who has the clout and weight to go into the white ho

there were silent on fannie mae and freddie mac. second, they did nothing about to big to fail. frank -- dodd and frank will sit they put together the resolution authority. a lawless 8 -- allow an unwind or -- we will unwind this through the resolution authority. it requires the committee to boat to in fact to resolve and unwind the institution. i think that is a step that many people would not choose to take. it would be -- it is easier to bail it out. it is easier to make the taxpayer pay and deal with it later. that is to make the hard decisions to let a firm get on wound. -- unwound. these are firms that have friends in washington. i am dubious the resolution authority will work as well as dog and frank -- dodd and frank think. there were some failures and some good things about dodd- frank. 200 pages of whatever, i do not think that has put us that much closer to a period where the taxpayers can sleep at night without having to worry out -- to worry about bailing out to corporations in the future. >> president wilson famously argued the economy becomes so complicated that w

fannie mae is also something he invested in.e made money in the thing that were part of undermining our economy. people are not dumb about these things. you can call it a blind trust. you can release the financials but at the end of the day, we understand it is this sort of maneuvering that is responsible for the challenge that our economy faces right now. >> when you think for a moment, bill about, the way romney deals with his money, there is a difference between the way he approaches economic policy as compared to someone like fdr. mitt romney sets aside $100 million in trust for his kids. he joins himself to the ryan budget which will eviscerate everything from meal on wheel to transportation for disabled people. here's a guy who is very, very wealthy independently. what is his view? that everyone else should do the same as him? >> i think he is of the view that lower taxes, unbalanced budgets and somehow not solving our fiscal problems is going to trickle down to the rest of us just like it must have done for him in the rea