the w and fannie mae behaved and the rest of the industry did.b the c and fannie mae behaved and the e the way freddie ry did. mac and fannie mae behaved and the rest of the industry did.t mac and fannie mae behaved and the rest of the industry did.w mac and fannie mae behaved and the rest of the industry die the mac and fannie mae behaved and the rest of the industry did.e freddie mac and fannie mae behaved and the rest of the industry did.n the way freddie mac and fannie mae behaved and the rest of the industry did. so, i don't believe that the two g.s.e.'s were the cause of the crisis.al i do think they did reduce underwriting standards. i can understand as a c.e.o. why you might have done hat given what the competition was doing. i do think there were some mistakes and problems made that were connected to the g.s.e.'s, and certainly one that i found troubling was sum retailed in a book -- summarized in a book called "reckless endangerment" which is a story of crony capital i capitalism exhibited by the two g.s.e.'s. i view that book almost as a playbook on how businesses can exec

the private sector didn't save bear sterns or fannie mae or freddie mac. the government had to step in . fannie mae and freddie mac were government guaranteed. >> can we focus here? we have to save the american companies to keep them american and now chrysler is owned by fiat. >> the president had his own problem with reality. i am not for balldentities or guarantee. instead of things done for economic purposes they are done for politica purpose. look how tax paters are hose the stock is down and equities in general are up. and there is a myth if gm shut down and never open all of the jobs would have lost. capitol in gm , be reallocate many other jobs would be created in the economy. they weaken automakerings. out of bankruptcy they would be owned by car makers that knew how to make a profit. >> thank you very much. worker burnout part of the economic fall out. sounds right, but it is wrong. silver lining on hard working americans on cash in texas taking on a united nations backed group trying to monitor the elections in the u.s.. somesome calling to cut o

taxpayers more than one billion dollars of losses by selling thousands of toxic mortgage loans to fannie mae and freddie mac. according to a complaint filed in manhattan federal court countrywide in two thousand and seven invented bank of america continued a scheme known as the hustle to speed up processing a residential home loan. to the nine hundred seventy the to do the hustle again that was the name of that movie and john travolta was walking around brooklyn with a can of paint and the beginning of a saturday night fever oh yes and that was all about the hustle wasn't stagflation of the same days it's been. so operating under the motto loans move forward never backward mortgages executives tried to eliminate tollgates designed to ensure that loans were sound and not tainted by fraud the government said so this led to a defect rate that approach forty percent roughly nine times the industry norm max but countrywide concealed this from fannie mae and freddie mac. . and even awarded bonuses to staff to rebut the problems being found so you would think this is a criminal case outright crimin

he saysing, look it, we wanted, you, bank of america, to take back the bad loans you put on to fannie maed freddie mac and caused a billion dollars in losses. 66 billion in total they wanted to put back on banks. 16 billion from countrywide. so one billion is not a lot of money compared to the estimates of 16 billion coming from countrywide to fannie mae and freddie. bank of america hours later said it is false to say it is fighting to get those loans put back and it can't be expected to compensate every entity in the mortgage collapse. but i'll tell you something, here's the statement here, again that it failed to repurchase loans from fannie mae. but here's the deal. manhattan u.s. attorney essentially saying look, even after bank of america bought countrywide it was still operating a fraudulent scheme to defraud the u.s. government via fannie and freddie and essentially had to hustle loan program, basically pay out bonuses on high volume of ad mortgages. liz: bank of america saying it can not be expected to compensate every entity that claims losses caused by the economic downturn. >>

we can do is we can pull back policies both in the treasury department with how they're running fannie mae and freddie mac. as well is the federal reserve's policies which are sort of propping up housing prices so we can actually lower housing prices in this country everybody seems to want housing prices to go up as if somehow that makes them more affordable what makes a product more affordable is if you have lower price and so you're one of the reasons why you have all these vacant homes that aren't even on the market creating this illusion that we have you know a low amounts of vailable housing and we should be building more homes it's because housing prices have been propped up from where they really should be falling too and we're not out of the housing bubble yet i know it's several years since the housing bubble started to collapse but we're still at inflated housing prices so one way to get these homes out of sort of the vacancy status and into the hands of people like you john was talking about people who want to own these homes is to pull back federal policies that are propping up

th it refers to loans sold to fannie mae and sfem ffreddie ma. we're talking about direct losses to taxpayers. accused under a process allegedly called "hssl," high speed swim lane. they never moved backwards reducing loan criteria and cutting out some steps that allowed them to get mortgage loans originated far more quickly. bank of america refute the claim they failed to buy back some bad debts. they say they acted responsibly to address some legacy mortgage issues. yes, we have to point out the fact that it's a possibility that they could ultimately win this lawsuit. perhaps the bigger issue is that we could ultimately see more lawsuits like this because it's hardly likely it will be unique just to bank of america on that back to you. >> federal prosecutors calling it brazen mortgage fraud by countrywide. >>> ahead on "way too early" the san francisco giants stunned justin verlander, the best pitcher in baseball rocked in game one of the world series. thanks to a three-run home run night from that guy, the panda. we'll have those highlights ah

they sold the loans fraudulent or otherwise defective to fannie mae and freddie mac which got stuck inclosures when the loans defaulted. b of a says it has been working with fanny and freddie to buy back the mortgages it is responsible for. bank of america has stepped up and acted responsibly to resolve mortgage matters to claim we have purchased loans from fannie mae is simply false. they scant expect to claim losses that were caused by the economic downturn. we could see this play out in court. jp morgan chase are facing similar accusations. >> diane macedo. thank you. >>> 48 after the hour. not once not twice but a third one is the charm for a robber who couldn't stay away from one particular convenience store. >> you have seen the star studded political ads but does hollywood really sway the voters? let's check in with brian kilmeade and see what's coming up on fox and friends. >> as if you didn't check the rundown already and don't know yourself. thank you for coming along already. the investigation continues to unwind we have more e-mails. they are coming in fast and furious. a r

bought the mortgages, only to see them fail, contributing to the collapse and government rescue of fannie mae and freddie mac in 2008. this is the first federal civil case involving loans sold to the two government mortgage giants. two weeks ago, federal prosecutors sued wells fargo, accusing it of reckless mortgage lending, sticking taxpayers with the bill. today's lawsuit claims bank of america failed to buyback loans from fannie mae false, and late this afternoon, a bank of america spokesman told "n.b.r." that is simply false. the statement continued, at some point, bank of america can't be expected to compensate every entity that claims losses that actually were caused by the economic downturn. >> susie: as we reported, the federal reserve said the housing sector continues to improve, and there were more signs today. sales of newly built single family homes surged to their highest level in more than two years. september sales rose 5.7% to an annual rate of 389,000 units. that was much better than expectations. home prices were up as well, rising for a seventh straight month, and nearly 5%

fannie mae as pushed bank of america to buy back those bad loans.he department of justice seeks that billion dollars to make it happen. a bank spokesman responded saying bank of america has stepped up and acted responsiblably to resolve legacy mortgage matters. the claim that we have failed to repurchase loans from fannie mae is simply false. we're seeing big improvements in the housing market now. the commerce department says sales of new homes went up by 6% last month to the highest level in more than two years. the analysts point out this rate is still too low to suggest a healthy economy. and today the federal reserve made it clear the recovery is still in need of a boost. officials there said they would not change their efforts to stimulate the economy by keeping interest rates near zero. the feds cited weak job growth, not to mention the unemployment rate which dipped below 8% last month for the first time in more than three years. meantime, investors blaming that federal reserve report and those weak corporate earnings we saw over the past co

right now as you previously pointed out fannie mae and freddie mac. . pretty much control the entire mortgage market they buyer guarantee nine out of ten home loans made in the united states right now and what they do with those loans securitized them they package them up in mortgage bonds guarantee them they promise to read if there's a fault they promised to to repay the investor that buys them in their profit up the housing market i mean they are pretty much the housing market until somebody comes up with a better idea or a better system i think securitization is here to stay and realistically. realistically finian for his role in the housing market even though you know they were bailed out banks there's a hundred forty billion dollars i think realistically they're here to stay as well as the government the congress has not shown any real enthusiasm for. figuring out what to do next certainly very interesting what we're seeing happen here just a few years ago once seen as one of the greatest problems in this economic crisis mortgage lending is certai

is they collaborate with wall street and many of the ways that you're complaining about the the fannie mae and freddie mac. programs right now of selling homes to investment banks is that inheritable i neither one of neither one of us supports that idea so evidently we must lived in different countries because my recollection of what happened and i was right in the middle of observing all this as perhaps like you. was that fannie and freddie actually lost tremendous market share to the subprime market which was selling to wall street and they went from being two to two point seven trillion dollars agencies. assets on the management of the securitized portfolio to one point seven they lost a trillion dollars in three years to the private sector market so you're not talking about getting rid of the market are you not talking about holding the market accountable or are they you know you're actually saying i'll bring those guys that can live now by the properties that are that have been devastated by bad . policies look i agree with the oversight of fannie and freddie accountability absolutely

and i never promoted fannie mae. in fact, senator mccain's campaign chairman's firm was a lobbyist on behalf of fannie mae, not me. so -- but look, you're not interested in hearing politicians pointing fingers. what you're interested in is trying to figure out how is this going to impact you? this is not the end of the process. this is the beginning of the process. and that's why it's going to be so important for us to work with homeowners to make sure that they can stay in their homes. the secretary already has the power to do that in the rescue package, but it hasn't been exercised yet. and the next president has to make sure that the next treasury secretary is thinking about how to strengthen you as a home buyer, you as a homeowner, and not simply think about bailing out banks on wall street. >> senator obama, time for a discussion. i'm going to begin with you. are you saying to mr. clark and to the other members of the american television audience that the american economy is going to get much worse before it get

first time the department of justice has brought a suit of this time to recover losses against fannie mae and freddie mac. let's get to the details. here's what the manhattan u.s. attorney's saying about this lawsuit against bank of america having to do with countrywide loans. reckless mortgage practices spectacularly brazen and taxpayers have the bill. the department of justice basically seeking maximum damage and penalties over a loan program run by countrywide. countrywide originated $1.3 trillion of mortgages between 2005-2007 and represented a third of fannie may's book in 2007. the lawsuit imply the essentially that countrywide helped push them into the arms of u.s. taxpayers with their very reckless practices that remove the underwriters and swapped in loan processors who were paid bonuses based on volume, based on challenging quality-control of defective practice. lori: the justice department is point mr. j almost a single finger at countrywide alone for pushing fannie and freddie in to bailout territory? liz: yes. the department of justice has moved -- the sixth time they have mo

because fannie mae and freddie mac are connected to the government.ness with many -- on many mortgage points to fix a lot of problems there. >>> are you feeling a little better when you see the gas station signs? maybe when you're driving this morning you'll take notice. they have been falling, down 14 cents from last week. the national average is $3.60. even in you're not down to that, you're probably seeing gas prices float down a little bit. should be looking a little bit better. natasha you mentioned $10 less to fill up the tank. >> yeah, almost 10. this week was like 40-something, i'm grateful for that. let's get to bob van dillen with an air travel update. messy day travelwise? >> we have a couple of storms we're watching, hurricane sandy with the wind across southern florida and cold front through the midwest. chicago, you could see an hour or more delay. midway and o'hare and half hour delays and low clouds around new york and philadelphia. we have seen delays there this morning. miami, st. louis, minneapolis, rain and storms and minneapolis c

hustle to crank out new mortgages as fast as they could and sell them as fast as they could to fannie mae and freddie mac. bank of america of course took over countrywide in july 2008. the suit says by then b of a knew about operation "hustle," and even to an extent helped keep it going. the suit says the bank would not buy the faud lent mortgages back from fannie mae and freddie mac essentially leaving the taxpayers stuck with them. the suit notes in 201, bank the america's ceo was quoted as saying, at the end of the day, we'll pay for the things countrywide did. now the justice department is demanding b of a do just that, it is a $1 billion civil suit. we have reached out to bank of america for a comment. we're still awaiting to hear back. of course this whole idea of suing a bank over the sins of a former bank has been criticized by house financial services committee ranking member barney frank. barney frank will be on the "closing bell" today at 3:00 eastern time and we'll hear what he has to say. >> he's always colorful. thank you, scott, very much. >>> warren buffett speaking on cnb

fannie mae, freddie mac will not loan on this anymore. >> thank you. >> that leads into, well, i have another question. it is worse situation where the financing has been done and you are legally the owner for ever and ever, my next question is going to be the staff. what difference does it make whether it is legal or not legal? to the city. >> if he had not brought it in, and had financing. he could've done whatever. the building department. i'm talking about additional work. if it looks a little funky, he wants to do improvements, goes to the billing department; the billing department says, oh well, this is supposed to be a two unit building. >> if you came in for a permit and it showed one kitchen, the planning department would say you're supposed to have two, and would make him go through this process. >> the nail on the head. this property would appear to be in violation of planning code today and its application, should be approved would take the project down one path the remedy that violation. there is a problem with the condition of the property vis a vis the planning code. >>

dollars claiming its countrywide financial unit knowingly sold defective mortgage loans to lenders fannie mae and freddie mac which are now owned by the government. >>> former goldman sachs director was sentenced to two years in prison yesterday for insider trading. >>> american airlines says it plans to hire 2500 pilots over the next five years as it ramps up international flights. >>> new census data finds more young adults are leaving the nest and moving out of state. americans between the ages of 25 and 29 showed the most mobility in 13 years as they strike out on their own to test the job market in big cities. >>> all eyes will be on microsoft for its big windows 8 launch in new york this afternoon. >>> and it's a hacker's dream come true. last year's top three most commonly used passwords are still on top this year. incredibly number one is still just the word password. two and three are the numbers 1 through 6 and 1 through 8. a few newcomers. jesus, ninja and mustang. we're giving away bill karins secrets. >>> quick, what do elizabeth taylor, bob marley and peanuts creator bob schultz

this is part of what brought on the economic crisis at the federal level, fannie mae and freddie maciving out home loans to people who couldn't afford to buy and later had their houses foreclosed. we don't know what's going to happen in the housing market for the next 30 years. i think it's foolish to set aside increasing set amounts of money for the next 3 decades when we know right now that there's thousands of people living on the streets. why not just build as many affordable units now as possible and do that by getting government out of the way with all its red tape and regulations and taxes and union work rules that increase the cost of housing. that would be a better way to get affordable housing, not bringing back this redevelopment agency with its legacy of driving african americans out of the fillmore and they had slated more than half the bay area for redevelopment before they were shut down. >> anything you'd like to add, peter? >> there's a number of assertions from my opponent that are based in a misunderstanding how affordable housing works in san francisco in this par

and over exemptions thought that homes couldn't fall and now-- >> didn't have anything to do with fannie mae or freddie mac or the community reinvestment act or ultra low interest rates, doesn't have anything-- >> do you remember thornburg, the first were to go the non-fannie companies failed first and-- >> it was a long series of steps. >> those are the ones looking at ten cents on the dollar and don't tell me it was all fannie stuff. >> brenda: guys, there you go. >> jonas, you're right. >> brenda: gary b, last word. >> i get the last word? hey!. >> brea: yes. (laughter) >> that's all we needed. all right. and thank you very much, steve for joining us. wel one of the 80 ceo's warning about the looming fiscal cliff just announcing something that could make you a 40% bump by the spring. >> predictions? and jim, you're up first. >> sirius xm and global car fleets are selling and we've got an aging u.s. fleet that needs replacing and their margins are expanding and looks really good to me. >> brenda: jonas, do u like sirius, that radio. >> no my cool internet phone is taking the place of it. >

america for $1 billion, claiming countrywide financial unit knowingly sold detective mortgages to fannie mae and freddie mac, which are now owned by the government. >>> former goldman sachs director gupta was sentenced to two years. >>> american airlines will hire 200 pilots. >>> americans between the ages of 25 and 29 showed the most mobility in 13 years as they strike out on their own to test the job market in big cities. >>> all eyes are going to be on microsoft for its big windows 8 launch in new york this afternoon. >>> and it's a hacker's dream come true. last year's top three most commonly used passwords are still on top this year. incredibly, if the password" is still number one. two and three are the numbers one through six and one through eight. a few newcomers, jesus, ninja and mustang. >>> what do bob marley, elizabeth taylor and peanuts creator charles schultz have in common? >>> baseball's best pitcher is shelled by the newest mr. october. sports is straight ahead. you're watching "first look" on msnbc. [ man ] ring ring... progresso this reduced sodium soup says it may help lo

that you should send him a copy of the september 30, 1999, "new york times" piece that said fannie mae eases credit to aid in mortgage lending. >> right. >> why doesn't he prosecute them? >> i think that's big question. >> there we go they are cheering in chicago. i just think we all remember those dark days of '08, rick, and we all remember when jpmorgan chase pushed back about buying bear sterns. >> they didn't want t then the government's smirk about t they pushed bear sterns into their lap and now that they are not going to prosecute mr. paulson for anything because he was smart enough to get intestimonification. maybe jamie dimen should have talked to some of us and got indemnification on that raw deal. >> maybe so love to hear from mr. dimon, certainly welcome his comments. >> never know how rick feels. >>> u.s. attorney general eric shah fired inman earlier on making his kate why woe go after jp morning, or rick would have it fannie mae, or individuals for alleged fraud. kayla tausche with what is ahead for the banks. schneiderman is clear this is not the last. >> he was clear a

alleges that countrywide financial which was later bought by bank of america sold lousy moderns to fannie mae and freddie mac. the top federal prosecutor in manhattan accuses countrywide of knowingly handing out moderns to underqualified borrowers -- mortgages to underqualified borrowers which they later defaulted on. >>> okay, drivers, you contributed to some $85 million collected from d.c. speed cameras. here's a mapof the top moneymakers, a nearly 10-mile stretch bed.c. and maryland accounting for more than 1/4 of the tickets. our bruce johnson spent the day with fed up drivers caught on camera who are fed up with those fines. >> it's a money issue. >> $300. >> i think the fees are outrageous. >> reporter: it's money most people say they could ill afford to lose in these tough economic times. >> 50, 150, and 100 this one's 50. i can't afford to pay them today. >> reporter: this speed camera in the 600 block of missouri avenue northwest issued 31,670 speeding tickets last fiscal year. this is only the seventh most productive camera. if you remember nothing else, you might want to keep in mi

the mortgages were purchased by fannie mae and friday mac and started by mortgage lender countrywide financial. but continued after bank of america acquired countrywide in 2008. bankamerica issued a statement saying at some point, bankamerica cannot be expected to compensate every entity that claims losses that were actually caused by the economic downturn. each year, thousands of people have errors in their credit reports that could prevent them from getting a loan or even a job. now people who can i get the company to change those errors that negatively impact report have an additional place to go for help. >> she is a food service employee at a washington, d.c. high school. she would like to be out here among the ranks of food truck owners. the reason she is not is because she bought a bad -- got a bad credit report and can i get a loan from her business. >> a la the stuff on their -- a lot of the stuff on there were mistakes. >> 79% of all credit reports have some type of error. >> that small error on the report like a new collection that is not my can affect you. >> he is helpin

and over exemptns thought that homes couldn't fall and now-- >> didn't have anything to do with fannie maeeddie mac or the community reinvestment act or ultra low interes rates, doesn't have anything-- >> do you remember thornburg, the first were to go the non-fannie companies failed first and-- >> it was a long sies of steps. >> those are the ones looking at ten cents on the dollar and don't tell me it was all fannie stuff. >> brenda: guys, there you go. >> jonas, you're right. >> brenda: gary b, last word. >> i get the last word? hey!. >> brenda: yes. (laughter) >> that's all we needed. all right. and thank you very much, steve for joining us. well, one of the 80 ceo's warning about the looming fiscal cliff just announcing something that could make you a 40% bump by the spring. [ male announcer ] you are a business pro. monarch of marketing analysis. with the ability to improve roi through seo all by cob. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. i'm going-i

he's a formereniovice prsident for financial innovation at the fannie mae foundation. and mark calabria is director of financial regulation studies at the cato institute. he worked on housing policy as a republican senate staffer and at the department of housing and urban development. welcome to both of you. i want to start with this question of the "why" question, jim carr. why does this get so little attention? >> first of all, jeff, thanks for inviting me and thank you for actually having this conversation which has been missing from the airwaves. i think one of the reans candates han'teen held accountable by the press, by the media. you look at the fact we've had three presidential debates and not a single question on the state of the housing market. i think the second thing is the housing market has so many problems we're trying to fig out the fix is politically challenging and controversial. the banks have their solution. with the has theirs, housing consumer groups have theirs, liberals and conservatives have theirs. it's a sticky political environment to tread