and so, fannie mae was everywhere. it was really ingenious, just a brilliant, strategic plan to really dominate the industry, to co-opt congress and to protect that very lucrative subsidy that i was talking about earlier. c-span: since this crisis of fannie mae, we had tried by calling fannie mae and look in record books to find the presidential appointed board members. as you know, since they became a gac, government service enterprise, they got five out of 18. you can find a list. fannie mae says write us a letter and there's all kinds of excuses given. you cannot find them. there were some of the people at that presidential appointment to that board and also to the leadership. >> guest: i have to rack my brain, but i remember certain members of the board, jamie gorelick was on the board with a vice chairman. she did very high level, rob emanuel. c-span: freddie mac. >> guest: freddie mac board. we talk about high-level people in washington and the elite power circle. both sides of the aisle, absolutely both sides of

it tells you fannie mae believes there are roughly 2.25 more foreclosures coming. we think fannie and freddie and the banks have other avenues. all the programs you talked about for reform and helping these homeowners. most of those programs are not eligible to be used in this sector. the p.l.s. homeowner has very few options. our thesis is allowing these homeowners to write down the mortgages, you re-reduce the am of foreclosures and allow them to stay in their home. that's our objective. how do you do that? how do you write down the principal? they are owned by trusts. it would be great if we could go to the trustee or servicer who owns the trust and say you know, you're going to have 50% of your people defaulting and lose 2/3 of your money and by the way, your bonds already trade reflecting that. you have taken that loss already. why don't we allow the homeowner to stay in the house and simply write down their mortgage? the trustee and servicer cannot write those down. cannot sell them. there is a whole bunch of things they can't do. they are stuffed in that trus

in the late 2000s, fannie mae took a hit -- a large hit for an ordinary company, not large for fannie mae because it was such a big company -- on manufactured housing loans. and in 2003 the chief credit officer at fannie mae wrote an after-action report saying one of the lessons is you can't trust the aaa rating because these, we bought aaa pieces on these mobile home loans, and they cratered on us. [laughter] again, if somebody starts to ask questions and say why aren't you doing due diligence on what you're buying regardless of whether it has a rating, and, remember, underneath that rating in terms of content are also concentration issues. you know, a aaa of one kind may be really different if it has -- >> we're going to leave this booktv program now. you can find it online at booktv.org. take you live to the floor of the senate, gaveling in. and with an update on the so-called fiscal cliff legislation currently making its

roughly seven billion in loans it will buy back to is going to pay three point six billion to fannie mae it's going to buy back about six point seven billion in loans that it and its countrywide bank units sold to fannie mae. now in addition to that settlement today ten major u.s. banks and mortgage companies also came to an agreement today after months of back and forth haggling with federal regulators over improper actions related to foreclosures across this country we're talking about banks bought like j.p. morgan chase also bank of america wells fargo citi group and p. and c. financial services the big banks agreed to pay eight point five billion dollars to make up for widespread abuse that led to thousands of americans being forced out of their home the breakdown. in loan modifications allen says now despite settlements like this one today another one couple years ago the foreclosure crisis is far from over and in some cases it is actually getting worse earlier today i was joined by debbie goldberg special project director with the national fair housing alliance i asked her for her

roughly seven billion in loans it will buy back to is going to pay three point six billion to fannie mae it's going to buy back about six point seven billion in loans that it and its countrywide bank units sold to fannie mae now in addition to this settlement ten major u.s. banks and mortgage companies came to another agreement today after months of back and forth haggling with federal regulators over improper actions related to foreclosures across this country we're talking about banks like j.p. morgan chase also bank of america wells fargo citi group p. and c. financial services. now the big banks agreed to pay eight point five billion dollars to make up for widespread abuse that led to thousands of americans being forced out of their homes when they in fact should have been allowed to keep those homes now here's a little bit of a breakdown for you three point three billion will go directly to eligible homeowners who were foreclosed upon in two thousand and nine in two thousand and ten and five point two billion will be used as assistance and loan modifications and reductions of princi

and that's for fannie mae to rectify the losses that fannie mae took on toxic loans that they were sold by bank of america. so it has turned out to be a very costly day for bank of america with both this fannie mae settlement and the one that you talked about previously which settles some of the foredlfor foreclosure issues. we're looking for earnings out of alcoa. that's the first of the dow companies that will give us a sense of what this fourth quarter earnings season will look like. the market looking for the best numbers in three years from this business. hopefully they'll look a lot better than we saw from yumm brands which owns kfc and operates in china. they said they seen same store sales down 6%. apparently general cho trumps colonel sanders when it comes to the chicken wars. >> thanks, yum down is a very short headline. that fits anywhere. geoff cutmore, thank you. >>> a bit of sad news. richard ben cramer died of complications from lung cancer. he is best known as the author of "what it takes," his account of the 1988 presidential campaign. it's considered by many people to

bank of america will pay $3.5 billion directly to fannie mae. and buy back almost $7 billion worth of bad mortgages that countrywide sold to fannie mae before the housing bust. bank of america will also sell servicing rights on two million mortgages, bringing the total value of the settlement to over $11 billion. the deals get most of countrywide's liability off the corporate balance sheet, a big step in moving bank of america past the housing crisis. >> i do think it's another quarter in which their shareholders aren't taking home any money, so it's painful, its costly, but it does get you closer to putting the whole thing behind you and not going to compromise the capital position of the bank in any way. >> reporter: also today, ten major banks, including bank of america settled claims they abused the foreclosure system, seizing defaulted homes without proper paperwork. >> the banks agreed to fix those abuses two years ago, with a case-by-case review of foreclosure practices. but that just wasn't moving fast enough, and proved too costly. brin

sell the toxic loans to fannie mae and freddie mac. while bank of america reaped a windfall, fannie and freddie were stuck with huge losses and foreclosed properties. in another major settlement, bank of america and nine other major lenders have agreed to pay $8.5 billion to settle claims of wrongfully foreclosing on millions of american homeowners. the settlement covers a number of foreclosure abuses including flawed paperwork, robosigning, and wrongly modified loans. the settlement will end in and in a review of all foreclosures, meaning the banks could be avoiding billions of dollars in further penalties. diane thompson, a lawyer with the national consumer law center, criticized the deal, telling the associated press -- opposition activists in bahrain are vowing to continue protests despite the court's decision to uphold the prison terms of 13

and we were trying to do something about freddie mac and fannie mae. we were running the numbers and was mathematically certain that they were going to run. everybody in this business i would argue 15-year-old what say we met with congress and with wonderful people like chris dodd and barney frank. yet he wouldn't look at the facts. why did he obey? because he had a religious belief and affordable housing, and freddie and fannie were huge political contributors. there were contributors to the republican party and the biggest contributor to the democratic party. some of congress he dated and freddie and fannie sucked the housing market's down the tubes to give lots of bells and whistles but fundamentally we had a massiveness investment because the federal reserve printed too much money and it ended up in the housing market in freddie mac and fannie mae. there are lots of other things like the negative amortization mortgages and the issue of the derivatives market, which i really do cover in my book and would be glad to talk about in the q&a but i wanted

any deal where fannie mae comes outlooking good has got to be bad. i'm neil cavuto, when does fannie gets it fannie kicked? when is fannie going to cult a check -- cut a check to tax pace ipayers in the usa. why can't we garnish fannie for not paying us? that is the story folks that people are missing today. not that a major bank is paying 10 billion smackers to settle some loans with fannie, don't you find it odd that fannie is taking -- when taxpayers continue to get the shaft, a most gang lender -- mortgage lender whose little bi politicas date back to the clinton days? and the beneficiaries of bailout who collective are second to none, that does not make sense. it does not represent so much as a drop in the bucket. government watch dog, said that is the problem with bailouts, taxpayers keep losing out. tconsideratioty young is here t. the markets were sanguine on this, saying no surprise, blah, blah, blah, but i think it is offensive. >> of course, it is offensive, when bank of america took over countrywide loans under tarp the federal government

so what it tells you is fannie mae believes this earthly two-minute order a million more foreclosures coming just in the pla sector. so are we focused on these mortgages? by the way, we think fannie and freddie have other avenues. all the programs you talk about for reform and homeowners, most of those programs are not eligible to be used in this sector. pls homeowner has very few options. our thesis is by allowing these homeowners to write down the principal reduction, which are medically reduce the number of foreclosures and allow the homeowner to stay in their homes. the objective program is allowing homeowners to stay in their home. so how do you do that? heavyweight of the principal? would be great is the service or device to try some you know, you're going to have 50% of your people defaulting annual boost to thursday money and your bonds already treat reflect not. if taken on so witty. why don't we stay in the house and simply write down their mortgage? for structural reasons that time is better than me, they can't write this down. there's a whole bunch of things they can't do.

with fannie mae. what this means pour for the foonl giant and investors now. you will hear the president speaking live and it is the next big fight in washington. the president is set to pick chuck hagel as his next press secretary and it is proving to be a controversial choice. well carry it live and look at what it means for the defense stocks. meantime, my partner ty is down at nyse today, hi, ty. >> hi, sue. you mentioned some of the reasons why. investors seem to be selling off in the wake of last week's major rise for the markets. though it got choppy on thursday and friday. rg3's knee explains why. worries over that, certainly coloring investors at this hour. nasdaq off a third of a percent at 3,090. s&p 500, 1457.98. down a little bit. oil off rather substantially today. and the dollar a little bit weaker against a couple of currencies. bob pisani is here. what's up, bob? >> our lows of the day. i was talking all last week of how much of the big move up was due to the fiscal cliff and how much

bank of america, details coming up next. >> big news with bank of america, they have agreed to pay fannie maeion and buy back 6.8 billion in mortgages. that is to settle claims from fannie fe because of countrywide. as we take a look here i'm trying to figure out what that is. wells fargo will be reporting earnings after the closing bell tomorrow. more on that and other markets coming up throughout the morning. >> maybe they're associated with some ski company? here's a look in your weather with erica. >> we are expect have temperatun the close but side with some people waking up with temperatures of mid 30's. into the afternoon wore conditions and into tomorrow temperatures are a little warmer than average. great returns are forecast in the middle of the week. right now, visibility is limited in that boat to 7 mi. an concord, three tenths of a mile and livermore. foggy conditions and not lucky to fog tracker for coming up in my next report. >> december is undethe dumbarton mateo bridge are under a fog advisory. the good commute sag shows there is still heavy traffic to contend with this morn

the bank of america sold to fannie mae. country wide financial granted many loans.ought countrywide in twaet. many praised bank of america for taking over a troubled lender. the purchase led to a seriest lawsuits, fines and losses for bank of america. >> net flix announce aid deal with warner brothers television to carry shows from previous seasons. the company is looking to bolster its streaming content by striking deals with hollywood studios. the deal means subscribers can watch rev nugs, political animals and long myer. >> there is a rare street protest over sensorship. people laifd flowers at thens trance to the office of the newspaper southern weekly calling for freedom of the press. the paper forced to change a editorial calling for political reforms. a tribute praising the ruling part yes. issues have grown into a political challenge for new leadership. >> update for you now on a man helping children dmirn south africa. he's partnering with mike's bikes to bring bicycles to kids so they can raise money to hold camp this year. a dad is hoping experiences can

fannie mae and freddie mac went into conservative ship. not much has happened since 2008.ngress to look at this, this is the year we have the historic moons lineup. gerri: obama in his second term. you say politically it is a great time. what do you believe should happen? should we get fannie mae and freddie mac out of the business of supporting the housing market? >> this is a multi-trillion dollars market. to say to get them out of the business is an extreme concept. gerri: why? >> we have to change the way they operate. the public companies with government support is not a good idea. taxpayers have too much at risk. but you can wind down the portfolio and keep them in a utility kind of role, providing a guarantee this week or last week, the consumer financial protection board put out rules. gerri: we reported on that extensively. i wanted to ask you about something you just said. he said he can take out fannie mae or freddie mac but it seems to me if you don't, you run the same risk you had back in 2008 that alternately the government will be supporting mortgages that m

it will buy back $10 billion in loans from fannie mae.let's get the actual lowdown here from kayla. she's more on the overall settlement itself and the numbers. >> several positive headlines for bank of america this morning. no doubt that fannie mae settlement is the biggest for investors who feared the price tag could be much bigger. as it stands, $10.3 billion is what bank of america owes fannie mae. the $3.6 billion cash payment basically reimburses fannie mae for losses it already suffered. b of a was among some 14 banks that were part of a $10 billion settlement with the occ for wrongful foreclosures. a good portion of that settlement is roughly $1 billion. bank of america is getting rid of $300 billion in mortgage servicing rates, continuing to chip away at that portfolio of delinquent and, therefore, expensive loans. the big question is what, if any, these impacts will have on the bank's ability to return capital. investors want to bump on the 1 cents dividend, but the question is whether they'll get that. i'm hearing there will pr

bank of america, well, they're paying 3.6 billion dollars cash to fannie mae as part of a settlementage loans, nicole, that's a lot of money, the bank of america shares. >> that's a lot of money, but it takes out the guesswork, and so we actually saw the stock hit ago new 52-week high and right now seems unchanged at the moment and as we know, paying 3.6 billion over to fannie mae and this is just all the claims for residential mortgage and they'll repurchase 6.75 billion dollars worth of residential mortgage loans that were sold to fannie mae. so, they'll be doing that as well. and right now, the stock at 12.08. back to you. charles: thanks, now i have seven early movers for you, let's start with harmon, an upgrade this morning at robert baird to outperform. the target 63, previous target 53. i love this stock. amazon rated in overweight at morgan stanley even though earnings estimates have gone down by the street. wall street definitely warming up to this stock. and walgreen's got an upgrade this morning also by robert baird to outperform rating, that stock up a little built this m

the again said he may is acting as the fannie mae of can say old coots just a few years ago and basically creating the quiddity with liquidity doesn't belong and that's was booking a bubble this is worse because not only do you have. trouble dead but you also have the fact that there is no real. recoverable i mean real backing diplomacy diplomacy some of diplomacy if you look at it from a real perspective. the cash flow return on investment perspective literally as in mathematically on worth the paper they're written on all right so to make the comparison of bad back to housing in the subprime market in the case of housing you've got a house which is working as collateral to some degree in the financial system and that collateral is being really hypothecated in re loan and securitizing are created this massive bubble that blew up in the case of sallie mae student loans collateral and is the education that's being produced to create a person who can make money in the economy and generate growth and taxable income but i gather from your work that that's not working either the education syst

this is one -- one page in fannie mae's third quarter 10q. the united states government's view of the pls sector. this is with respect to that portion of the bonds they own. the discussion of why fannie mae owns these bond at all, but they do and under the disclosure rules they now tell us what they think about the underlying mortgages, and these are the numbers you want to look at. fannie mae says there's $28 billion on their balance exposure to mortgages in this sector. they expect a 50% default rate. this is going forward under existing conditions. and when it defaults and goes to foreclosure, they expect 66% loss under that mortgage. half the mortgages, two-thirds of the principle written down. so it tells you fannie mae believes there are roughly two and a quarter million more foreclosures coming in just in the pls sector. so in the frame, are we focused on these mortgages? by the way you think that fannie and freddie and the banks have other avenues? all the programs you talked about for reform and for helping home owners, most of those

under the deal, b of a will back nearly $7 billion in mortgage loans made to fannie mae that went bad. >>> asian markets are profit taking ahead of the european central bank's policy meeting this week. tokyo's nikkei dropped nearly 1%. hong kong's hang seng also lost 1%. >>> earnings season begins in earnest on wall street. investors will keep a close eye on the outlook from aluminum maker alcoa which releases earnings after the closing bell. stocks did start the week on a down note. the dow lost 50 points while the nasdaq was down two. >>> spending on health care in the u.s. stayed mostly flat for three years in a row. according to the department of health and human services, americans spent $2.7 trillion on health care in 2011. that's an increase of just under 4% from 2010 which means that cost grew in line with inflation. a health care bill that rose in line with inflation is considered affordable. however, the average tab for every man, woman, and child in the u.s. came out to more than $8,600. that's more than any other economically advanced country spends. >>> you might spot som

it tells you fannie mae believes there are roughly 2.25 more forclosures coming. we think fanny and freddy and the sbranks other avenues. all the programs you talked about for reform and helping these home owners. most of those programs are not eligible to be used in this sector. the p.l.s. homeowner has very few options. our thesis is allowing these home owners to write down the mortgages, you re-reduce the am of foreclosures and allow them to stay in their home. that's our objective. how do you do that? how do you write down the principal? they are owned by trusts. it would be great if we could go to the trustee or servicer who owns the trust and say you know, you're going to have 50% of your people defaulting and lose 2/3 of your money and by the way, your bonds already trade reflecting that. you have taken that loss already. why don't we allow the home owner to stay in the house and simply write down their mortgage? the trustee and servicer cannot write those down. cannot sell them. there is a whole bunch of things they can't do. they are stuffed in that trust.

banking unit sold to fannie mae over an eight year period.s include, by the way, chris, about 30,000 loans. we're talking about quite a lot of loans here. >> to put you on the spot, do you ever think about retiring? i know it's 40 years away. retiring somewhere other than the u.s.? maybe going back to your native country? >> yes. >> you do? >> i think about going back to australia all the time. don't get me wrong. i love america. i've chosen to live here. it's a great place. but i do think about retiring to australia all the time, chris. >> but it didn't make the list. i want to show you my list today for people who are thinking about retiring abroad, mandy. internationalliving.com looked at factors from the cost of living to friendliness. here are the top five countries for retiring in 2013. costa rica is number five. mexico, number four. the number three slot, malaysia. >> malaysia? >> yeah. number two, panama. you want to guess the number one? i never in a million years would have guessed this. ecuador. >> wow. i guess, you know, it's sunn

most of the money will go towards buying back mortgage that's b of a sold to fannie mae.bought countrywide in 2008. the purchase led to a series of lawsuits, fines and losses for bank of america. >> the ever-expanding universe of the next best thing is on display this week at international consumer electronics show. huge crowds on the scene in las vegas before the show opens tomorrow. in this video we can see gadgets including this think pad that awill yous four users at the same time oo. and auto makers are expected to display prototypes of driverless cars this, is preview video showing a lexus on a test track with nobody behind the wheel. audi expected to unveil driverless navigation at the show its scary enough when real people are behind the wheel. >> yes. >> and never mind, driverless cars. at and t is joining a list of streaming video provider autos emily chang is back with us with the after the bell report. welcome back, emmilly. good to see you. >> thanks carolyn and larry g to see you guys, too. at and t unveil aid new video streaming service. the service is call

the bad loans lead to massive losses for fannie mae, a government takeover.16 billion dollar bailout to keep it afloat. >> coming up, sports with gary radnich.. [ female announcer ] safeway presents real big deals of the week. or how to get great prices on things you need. if your resolution is saving money, safeway gives you real big club card deals each week. now's a good time to pack your lunches. lean cuisine is just $1.99. yoplait yogurt is just 50 cents. resolutions, kept. and charmin is $13.99 for 30 double rolls. real big deals this week and every week. only at safeway. ingredients for life. (male announcer): now, here's stanley roberts who found people behaving badly. fathead >> this man is fighting a ticket that he got on purpose. he wanted to get this. >> this is just weird. to talk about fictional entities. >> he was driving in marin county. >> viewer and the carpooling 25 times? >> he was not alone he said that he had an invisible person. that was the form of corporation for the nonprofit organization. i am not making this up. the officer wrote t

. >> shepard: fannie mae is another matter and bank of america agreed to a settlement with fannie mae. >> that's correct. bank of america paying out $11.6 billion. all about country wide financial accused of the same kind of dealings you described. this ends ten years worth of bickering, yelling, filing of lawsuits, it as big move for bank of america. >> shepard: from reading around the fox business website today it sounds like for them it is a good deal. >> i'm sure they are eager to get out of it. they were forced to buy countrywide financial and found out just how bad the mortgages were. exactly. >> shepard: thank you, happy new year. the u.s. supreme court set to hear a pair of cases that could change the fate of same-sex marriage laws in the united states. the high court scheduled arguments for late in the month of march. first over the california disputed constitutional ban on gay marriage called proposition 8 and the second case the challenge of the so called defense of marriage act a federal law that defines marriage between a man and a woman only. this could be a major test o

fannie mae believes there's ruchely two and a quarter million more foreclosures coming just in the plssector. in the frame, focus on these mortgages, and, by the way, we think that fannie and freddie and the banks have other avenues, programs in hamp, all the programs you talked about for reform and for helping these homeowners, most of those programs are not eligible to be used in this sector. the homeowner has few options. our thesis is by allowing these homeowners to write down the mortgages, the principle reduction, reduce the amount of foreclosures and allow the homeowner to stay in their home objective is to allow homeowners to stay in their homes. how do you do that? how do you write down the principle because they are owned by trusts? we looked around and said, okay. it would be great if we could go to the trustees or the servicer who runs the trust and say, you know, you're going to have 50% of your people defaulting, and you're going to lose two-thirds your money, and, oh, by the way, your bonds already trade reflecting that. you've taken that loss already. why don't we allow

this announcement came on the heels of a separate $11.6 billion settlement between fannie mae and bankamerica. bank of america buying back loans for $6.75 million. we have a lot more details of this on cnbc.com. please check it out. brian? >> we will. thank you very much. >>> that's not the only big theme on big banks today. too big to fail banks gamble with bernanke bucks. banks took billions in buyouts but isn't lending it out and it using it for profits. steve liesman is with us and he disagrees with some of what bill found. why do you think then that money that gave the banks, taxpayers, we, being used to gamble. >> moral hazard problem that makes fannie mae look small. we have ben bernanke pushing on the rope, pushing on the bank balance sheets. we've got banks that don't want to lend that money out in interest rate because the small business owners who are supposed to be recipient of that money according to the federal reserve are too risky to take loans at that rate. so it is high pojcated and used to gamble in derivatives market. all of this is happening opaquely, off balance s

the next case is bank of america paying $10.4 to fannie mae. there's a report published monday that says the obama administration spent nearly $18 billion on immigration enforcement last year, more than the spending on all the other major federal law enforcement agencies combined. that is 15 times greater than immigration spending in 1986. the nonpart son migration policy institute says immigration has become the government's highest law enforcement priority. among those likely to be unhappy with this report, critics who say the administration has been soft on immigration violators. >>> president obama meets with his defense secretary today but it's not his new choice for that job, former nebraska senator chuck hagel that has republicans reeling. nbc's tracie potts is live in washington this morning with more on how his pentagon and cia nominations could prompt the next big fight on capitol hill. good morning to you. >> reporter: good morning, everyone. we're already seeing democrats and republicans here with concerns about hagel. john brennan,

. >> fannie mae and freddie mac are always a ltle controversial witcongress. quasi-private, quasi-public. let's go on to the largegest privately owned companies in the washington region. number one, landing the sweet ot, a candcompany bad in mcleanan $3030 billion in revenue only 340 in thmetro area. >> one of those notorious company'around here, because you read a lot about them -- >> private. very private family. >> they are out there a dealing with chocolate and food an everything else but you don't hear a lotot about them.m. irfax is doing preretty well. >> fairfax is doing fine e with that tax b base. montgomery county, clark enterprises. it has real estatate construction lots s of different ars wherere they make money basedn beththesda. no. 3 on t list, a lot o of people know w its dine corp. internationall bid --- dyncorp international. they are based in falls church. >> what is ieresting about public companies that the brand we buy on the shelves -- there are a lot of tentacles to a lot of these companies did what makes them large i is not always what

f" on that particularly because they haven't even tried to put forward a plan that would reform fannie maemelissa: like sheer exhaustion. >> by the way, fannie and freddie have been huge money losers for the government. melissa: talk to me about the debt ceiling debate. i feel like he haven't even really a part of that. >> he get as d there and i'll tell you why. the treasury's responsibility really is to have a contingency plan. this is a guy who steered the economy through all of these financial crisis. you know, you ought to have some kind of plan in place for dealing with the moment when we might hit the debt crisis. an inspector general looked at this last year and discovered that the treasury never put in place a contingency plan for, you know, what would happen if congress never got around to raising the debt ceiling. melissa: yeah. >> for lack of planning, they get a low-grade on that one. melissa: you give them a d. >> yeah. melissa: what do you think he will do next? if it were me after six-month vacation in the bahamas then i would start thinking what i want to do. >> i think he

the settlement from fannie mae and other parts of the u.s. government. citigroup reports q4 had numbers at 8:00 a.m. eastern. analysts expect earnings of 96 cents a share on revenues of 19 billion. shares today, we can check on an early frankfurt trade up in bofa's case by 1.25%. citigroup is down by .6%. stewart richardson joins us on the program this morning. how important is what these banks say to you? do you like citi versus bofa or do you like them both relative to the investment banks? what are you thinking here? >> in terms of the banks, operating results seem to be in its weak spots. standing results when you strip out some of the exceptional items. we're looking at it from a broad sector point of view. the key for sus they've been in a long repair process which should continue. i think relative to markets, bank overall, big money for the banks will be okay going forward. >> that is wunl of the concerns is that the easy money may well have been made. in terms of price of the value, clearly more expensive than they were a year or so ago. so, yeah

fannie mae forking over $6.5 billion and selling back mortgages to fannie.em gets put to bed. no more spending huge sums on legal bills, at least of the major ones i believe. no risks that make investors terrified to go to bed with this stock in their portfolio. and bank of america sold $200 billion in troublesome, i think, mortgage service rights to nationstar mortgage. the rights are confusing. suffice to say it was good for everybody. they sold these assets, and it's good for nsm and for bank of america. sure, all of the big banks and especially bank of america have run a lot lately. these stocks are still well off their all-time highs, and actually well off the highs of a couple of years ago. and i think as things get better in 2013, as people realize that so many of the worries that have held the banks down for so long are now in the past, these stocks will continue to climb higher. the sector isn't the only reason i prefer bank of america to home depot. even though people are used to thinking of bank of america as a dog, there's a lot going for it. fir

in another settlement stemming from the housing crisis, bank of america today agreed to pay fannie mae $11 billion. for more, i am joined by two people who track the housing industry closely from different lenses. guy cecala is publisher of "inside mortgage finance," a housing industry research publication. and diane thompson of the national consumer law center. welcome to you both. diane thompson, beginning with you, remind us first of the sorts of abuses that gave rise to this settlement. >> fundamentally what we're talking about are wrongful foreclosures, foreclosures of homes that should never have been foreclosed on. people lost their homes because of the banks' misdeeds, because the banks of violating the law. the banking agencies found that there were repeated and pervasive violations of the law. everything from putting people into default who had not been to wrongfully foreclosing upon people in the military to failing to process people for loan modification correctly and in time. the result was that homeowners were out on the street. >> warner: guy cecala, when this settlement

bank of america on its own is paying $11.6 million to fannie mae to settle other claims. >>> and the huge insurance company bailed out by the government may now sue the government. "the new york times" reports american international group is thinking about joining a lawsuit that says the bailout deal cheated shareholders out of tens of billions of dollars. aig's board will decide tomorrow. >>> the new boeing dreamliner may be turning into something of a nightmare. an empty japan airlines 787 caught fire shortly after landing in boston yesterday. it is just the latest electrical system problem for the dreamliner. and government agencies are looking, now, into its safety. united is the only u.s. airline flying the 787 so far. >>> apple, though, they're flying high. its app store has just hit 40 billion downloads. almost half of them were in the past year. and a record 2 billion just last month. those numbers do not include updates or redownloads. apple said it's paid $7 million to app developers. wow. >>> and chicken is taking flight at mcdonald's. the fast food company is expanding it

they will pay $3.6 billion over to fannie mae. part of that is that bank of america will actually do some repurchasing. $6.7 billion that were spilled over to fannie mae. it is a done deal. we did see them hit a 52 week high. back to you. connell: the difficulties lawmakers face in tackling the nation's biggest problem, a new crop of u.s. lawmakers joined a new face in the house and senate. let's get a fresh perspective from the freshman congressman markwayne mullin. a republican from north carolina. thank you for joining us this morning. what is your first impression we met it was like walking into disneyland. a lot of things are not -- the way they get treated is almost funny. we need to come home or so we get a reality of what things are like. melissa: when you first said disneyland, i thought you were going to say great. >> have you been to disneyland? [ laughter ] we are still elected officials. we are there to represent the people. when you get there, people start treating you like you are somebody. all of a sudden, you are

in a seprate settlement, bank of america agreed to pay more than $10 billion to fannie mae for selling problem mortgages that turned toxic in the housing crisis - most of the loans made though b of a's countrywide financial unit. "they're compensating fannie for the trashy mortgages countrywide sold them. the question is, 'what settlement will others demand.?'" a third banking issue came from global regulators known as the basel committee on banking supervision. it eased liquidity requirments that enable banks to weather a financial crisis. "i hope this will help give some banks the breathing space they need, but we have to be sure that the banking system and economies don't collapse." some analysts say restrictions were relaxed more than expected, and in so doing, may boost bank profits. shares of barclays, hsbc, deutsche bank, and others rallied on the news. spending worldwide on gadgets is projected to hit $1.1 trillion this year, and tech companies from around the global are giving us a glimpse of what we will be buying at this year's consumer electronics show, which opens today an

we've got an unknown future state for freddie mac and fannie mae.l needs to be resolved because of their capital reserve problems. we have excessive uncertainty in the housing finance system, and qm just settles one small portion of this. i think the cfpb did a pretty good job on this rule, but we have a lot, many more shoes to drop here before we get the markets settled and really understand what credit is going to look like. >> diana, i mean, i think maria hits the nail on the head, right? it's a question about whether you get to the point of what's restrictive for the banks. banks are already not lending to the level that some people would like them to do. you just rattled off or we just heard rattled off an entire list of the headwinds that the banks are facing. >> yes. >> and yet here's another one. >> but they are already doing a lot of this, and that's the point. what the problem has been is that there's been so much uncertainty in the mortgage market because of regulation that's been coming, and we've been talking to a lot of investors over

s earnings came from a settlement with fannie mae to end a dispute over bad home loans. the bank earned 3 cents a share in the period, a big drop from the 15 cents earned in the same period last year. c.e.o. brian moynihan tried to put a positive spin on today's results. >> our strategies continue to work, were seeing growth across all the core businesses. were seeing that momentum continue to accelerate. >> reporter: but for today, at least investors weren't convinced. erika miller, "n.b.r.," new york. >> susie: our next guest says citi and bank of america investors have to be prepared for a few more bumpy quarters. nancy bush is banking analyst at s.n.l. financial. so nancy when are all of these mortgage problem goesing to go away. here we are in 2013 and we're still hearing from these banks will problems with mortgages and settlements and chargeoffs. you know, how many more year does we have to go through this or how many more quarters? >> well, i think that it is, indeed, a very frustrating issue for bank investors and bank analysts alike. i think if we are to judge

s earnings came from a settlement with fannie mae to end a dispute over bad home loans. the bank earned 3 cents a share in the period, a big drop from the 15 cents earned in the same period last year. c.e.o. brian moynihan tried to put a positive spin on today's results. >> our strategies continue to work, were seeing growth across all the core businesses. were seeing that momentum continue to accelerate. >> reporter: but for today, at least investors weren't convinced. erika miller, "n.b.r.," new york. >> susie: our next guest says citi and bank of america investors have to be prepared for a few more bumpy quarters. nancy bush is banking analyst at s.n.l. financial. so nancy when are all of these mortgage problem goesing to go away. here we are in 2013 and we're still hearing from these banks will problems with mortgages and settlements and chargeoffs. you know, how many more year does we have to go through this or how many more quarters? >> well, i think that it is, indeed a very frustrating issue for bank investors and bank analysts alike. i think if we are to judge b