fannie mae and freddie mac got off. the first thing we got under my being chairman was to put fannie mae and freddie mac out of business and put them into receivership. we shut down the problem and stopped the bleeding. what you do going forward is still there. you are too pessimistic about fannie mae and freddie mac. once we stopped it, there is the value of the housing inventory. i did not think it would cost as much as you predicted in 2003. >> putting him out of business was a good idea. >> it now will be a breakeven. >> so far. >> it looks that way. had we done it we would have been better off. nothing that we did in the financial reform bill whether you approve of it or not was punishing them for fannie mae and freddie mac. someone would have to tell me specifically what we did. we made it illegal to give bad mortgages. that's the only prohibition in the bill. there were other things that we said to increase your margins and capital. i think it was market oriented. >> you also saw wasn't nstitutions but the leader

it seems the government sector propelled the private sector to some of its excesses. >> fannie mae andeddie mac were propelling that. >> let's go another step. the mechanics of that -- one of the great ironies is that weree mae and freddie mac created to securitize so we could get away from the regional mortgage markets that were supposed to be good. the government political process propels the private sector to access as it would not have otherwise gone to, isdodd- frank too tough on the private sector and somewhat unnecessary if we don't have these government policies that propel the private sector to its excesses? >> you don't get to go first because you are biased. respond first. >> the root of all evil is money. bright people get attracted to money. ofl street is a manufacturer a way to make more money. some people resent that. if we come back another five years years for the 10 year reunion and then the 15 or the 20, dodd-frank was not a shot in the dark at a shot in the misty evening. like all the other stuff government does to stop behavior, if it is not on oversight and review

so really that's what is dictating the terms is fannie mae and freddie mac.nd they have loosened up a little bit. appraisals have normalized, a little bit of house appreciation as the markets are improving, but if you look at the raw numbers, home prices are up 10%, yet the number of people who own a home has dropped to 133,000, and that concerns me because we can't have a recovery in the homeowners. >> good to talk to you mark. >>> here is an image that says lot about a story that we have been following that is clearly heating up. jpmorgan jamie diamond showing his diver's license to a security officer. he was there to talk to eric holer about settling various charges that may be filed against the bank. the settlement number appears to be $11 billion. but both sides are reportedly far apart so stay tuned. >>> five days until the initial enrollment process for o&m begins. >> i'm 53 years old, my last time for a full medical checkup was probably five years ago. i was doing pretty good at that time. i don't know what has hand over the last five years. >> that c

that is what keeps fannie mae and freddie mac alive. barbara matthews. i have the honor of this serving the treasury secretary in brussels and before that, i served on the committee. my question is international. what did you learn, and what would you advise american policymakers today about american leadership in the financial institutions globally based on your experience x and he good examples of cooperation >> everyone knows the story about the police officer. there must have been some good and that happened that were not told. what have you learned about american leadership in the process? >> you read my book on the financial crisis to explain what happened, how it happened and when it happened. that story is told. many wayse crisis in brings out the worst in some people, but the best and many people. there was great coordination and cooperation in the way we came together. when you look at the three weeks but trying -- between the time lehman brothers went down, and without the tarp legislation passed. -- this was not just the u.s.. european banks

on september 7, 2008, warning sirens sounded when the government took over fannie mae and freddie mac. one week later september 14th lehman brothers collapsed, triggering a global freeze on credit followed by a government takeover of aig. literally overnight the recession became a global crisis. >> this is what brought us to the brink of collapse. >> all because annie went and got a house she couldn't forward? >> congress had to act, bail out the banks from their risky behavior. but the carefully crafted bills to rescue the system went down in defeat in the house of representatives. investors went into full blown panic. the dow dropped 777. points. $1.2 trillion in market value wiped out in a single day. >> we've got much work to do, and this is much too important to simply let fail. >> congress got the message, and on friday, october 3rd, they finally passed the $700 billion relief program, tarp for short. >> five years later is america better off than it was then? yes, because it was that bad. could it happen again? >> could it happen again? on set with us now oh to give context to

. >> you know, the other thing, kim, that has not happened is any reform of fannie mae and freddie mac, the big mortgage giants that combined private profit with public risk. those things were put into conservatorship and they're still in existence. and now they're beginning to make money again, which gives congress the ability to spend that money and less impetus to reform. any prospects that those will be changed? >> no. and this gets to the risk that james was just talking about, about having labeled all of these banks as systemically too -- having to back them so they cannot fail. fannie and freddie were at the heart of this crisis. they were political creatures. and part of the reasons we had this was because government exerted pressure on them to make loans to people who are not qualified to pay them back. when the crisis hit, it was an excellent opportunity to put them into receivership. instead, we put them into conservatorship, where they're now coming back from the dead to haunt the private markets again. and while the white house has said that they want to wind these entitie

it wasn't until 2007 when i became chairman that we put limits on fannie mae and freddie mac and put-- >> congressman, it's one thing to say it's fine, you know, for rentals, multifamily. it's another thing to say you weren't promoting homeownership. you certainly admit you were promoting homeownership, right? >> no. what is your -- no. i was promoting homeownership -- >> mr. frank, as long as you were quoting from "the wall street journal," we have one here from 2005 during a speech you made on the floor. i'm not here to -- you know, we're pointing fingers backwards. i want to look forward. anyway, since you brought it up. a quote from you as part of a speech you were discussing a homeownership bill and you said in there, those of us on our committee in particular will continue to push for homeownership. you know, that's what we're looking at right now. >> yes, for people -- for people who can afford it. and i was also at the same time strongly pushing for limitations on the kind of abusive mortgage practices we saw so that people weren't getting mortgages that they couldn't get. wh

director of the fhfa, essentially on the way out, but overseeing the now government entities of fannie mae and freddie mack, bailed out to the tune of trillions of dollars, now government entities, guaranteed more than 80% of mortgages now issued, yet even though they are owned by the government, they have been the most aggressive opponent of principle reduction of any foreclosure prevention programs, and particularly, this policy proposed in richmond, california. to me, i think it's unsurprising that the banks would oppose this because it would be digging into their paycheck. what's disappointing to me is that the federal government has again taken the side of the banks, and, again, using its legal power and its bullying power as the federal government to say they will boycott or red line or sue any local government taking care of its own citizens. again, when we talk about, you know, control from far away versus localized control, collective control, community control, you can see there is attention, and right now, other mayors are interested in trying to move forwards a policy to help t

so some are speculating, i think completely unconfirmed, that if we were to draw down fannie mae and freddie mac, it is possible that the 30-year fixed mortgage could be in their attack. we don't know yet. we don't even know if obama really does want to draw down fannie and freddie. we don't know if that is possible at this point where they're so immersed in the housing market, the most aboard part of this debate is that the 30-year fixed mortgage used to be the actual backbone of our housing market. now we have increasingly moved to the sub prime a variable rate ballooning mortgage contract. we saw the results of them when the housing market exploded into does a 7-8. we saw that many people could not pay, that these were, in many places, unpayable debts. and more than anything else, back to that different ways that we have experience throughout the history of the united states housing in the united states committees to be that everyone in america always received a 30- year fixed mortgage. you would have to have ruined, ruined credit to get anything else. in redlined communities, you

one of them fannie mae has had to think about.here is a different between the development of the oil source and the extraction. we get requests for financing to build apartment buildings. how long-lasting will the labor in the development of the fracking process -- would you make a long-term investment in an apartment building, maybe there is only five years of that. extraction may have a different pace of employment. toeither case, this is going add to the employment side of the economy. it is just an little different whether you are talking about development or extraction. that is the first plus. if you think about that expansion, somewhere in the 2020 range, we will be energy independent if things go well. that has a lot of implications. clinicalcal -- two applications, this could have national applications in that way. political implications. this could have national implications. forould lower thae cost households. upts fall, it frees resources for other areas. a reduction in transportation costs in the energy piece offers ad

i have a series of questions here, around the future of gses, future of fannie mae, and the like. i know historically you haven't had a whole lot to say but you know we have legislation that is kind of drafted and the like so i will leave it to you to comment in that area as you see fit. >> okay. i've been drinking a lot of water so i'm relying on natural forces to bring this to an end. [laughing] obviously one of the uncertainties in the marketplace today, is what happens to fannie mae and freddie mac. i can't remember exactly but one time in the past year i was introduced at one event as the extinguished economist from fannie mae. that is not the kind of end he will i'm envisioning. the corker-warner bill is the in our view the first sustained bipartisan attempt to lay out the legislative structure for a change in markets structure that would replace the gse model. that is the first stage. it is bipartisan. it is getting some serious discussion. the things, there are series of questions that any legislation will have to respond to but before it takes final shape. first thing we

the government took over fannie mae and freddie mac, there were big bets on the housing market but they were taken down. one week later lehman brothers collapsed triggering a global freeze on credit followed by a government takeover of aig. literally overnight the recession became a global crisis. >> this is what brought us to the brink of collapse. >> all because annie went and got a house she couldn't afford? >> congress had to act. bail out the very banks who led the economy into the mess with their risky behavior. but on september 29th the carefully crafted bill to rescue the financial system went down in defeat. already spooked investors went into full blown panic. the dow drop 777 points. the biggest one-day drop it ever had. $1.2 trillion in market value dropped in a single day. >> this is much too mourn to simply let fail. >> congress got the message, and they passed the relief abraham. >> the motion is adopted. >> five years later is america better off than it was then? yes, because it was that bad. but could it happen again? >> who knows. it's been five years. australia has a

because we knew we had to start over, we got a call from the mortgage company saying that there was a fannie mae or freddie mac clone available. and we could take this long and get caught up on a payment and then from there added on to a low for a house. we thought about it. reese said, this is wrong. this is part of the bailout from 2008 which we have been opposed to and decided we could not take that. and so just a few weeks later there was a rant on cnbc talk about the stimulus that was going through congress in 2009 and how long it was. our founding fathers would be turning over in their graves. and what he said this book to me so much of the people standing behind him, who here was to pay for your neighbor's home that has more bathrooms en un they cannot themselves afforded? and is struck me because my husband and i did not want our neighbors to pay for our home. we turned down that government money and start over our own. religiously kinnear neighbors bathrooms and a set of them painful hours. and so we got involved. we started at the party. got on a conference call. a week later we were o

we get a call from the mortgage company saying there was a fannie mae or freddie mac sloan available to us and did we want to take this loan and get caught up on our payment and then from there add it on to the loan for the house? we thought about it and we said this is wrong. it's part of the stimulus, the bailout from 2008 which means we've been opposed and we decided we couldn't take that. and so rick just a few weeks later at the ramp on cnbc and talked about the stimulus bill gup was going through congress at that time in 2,009 and how long it was the founding fathers would be turning over in their graves and said this is so long we should have a modern 18 party. what he said spoke to me so much to the people standing behind him who here once to pay for your neighbor's home that has more bathrooms than you when they can't afford it themselves? and it struck me because my husband and i didn't want our neighbors to pay for our home. we turned down by government money and started over on our own and we were literally clinging to a neighbor's back room instead of them paying for hou

on september 7, 2008, warning sirens sounded when the government took over fannie mae and freddie mac. financial titans were macing big bets on the homing prices. one week later lehman brothers collapsed triggering a global freeze on credit followed by a government takeover by aig. overnight the recession became a global crisis. >> this is what brought us to the brink of collapse. >> all because we got a house we couldn't afford? >> congress was forced with one choice, bail out the very banks that led the economy into the mess with their risky behavior. but the carefully crafted bill to ask you the financial system went down in defeat with the house of representatives. >> the motion is not adopted. >> vesteinvestors went into full-blown panic. $1.2 trillion in market fall wiped out in a single day. >> we've got much work to do, and this is much too important to simply let fail. >> congress got the message, and on friday, october 3rd, they passed the troubled asset relief program, tarp for short. >> the motion is adopted. >> five years later is america better off than it was then? yes.

the government wants to limit on loans from fannie mae and freddie mac as a way to back off from the mortgage business... fannie and freddie currently support mortgages with balances up to $712,000. the fhfa says it will be a "gradual" reduction in loan limits.the agency calls it an effective approach to reducing taxpayer's mortage-risk exposure while expanding private capital in mortgage finance. critics fear it will shrink the number of home buyers. labor leaders are in for an uphill battle as they struggle against corporations. that's the word from senator elizabeth warren... in a speech opening the afl cio convention in los angeles. the freshman senator kicked off the conference by voicing her support for the labor movement... which has seen a significant drop in political power over the years... as union membership has declined. labor leaders have supported warren for her tough stance against wall street and trade deals that benefit corporations. luxury retailer neiman marcus is sold in a six billion dollar deal.the buyers are ares management and the canada pension plan. neiman's

fannie mae and freddy mac pushed for a sale, and let lehman brothers collapse. bush administration established tarp. which allowed the u.s. treasury to buy or insure up to $700 million. >> i'm convinced this bold approach will cost american families far less than the alternative. frozen credit markets unable to fund economic expansion. >> cascading out from wall street came a recession that saw millions of home foreclosures, massive job losses and wage stagnation that still remains today. by the end of 2008, the housing market has plunged by 18% compared to the previous year, the waves rippled overseas as well. >> by our determination to act together we cannot only inject the confidence that is necessary in the world economy, but also build anew the ex-momic security. >> back at home another iconic institution was at risk. the dodd-frank wall street reform and consumer protection act was signed in to law by 2010. >> we are the 99%. >> but the economy continued to lag and americans grew angry as none of the approaches were popular. in 2011, the anger found its vo

on september 7th, 2008, warning sirens sounded when the government took over fannie mae and freddie mac. mortgage titans were facing big bets on the housing crisis. one week later september 14th lehman brothers collapsed triggering a global freeze on credit followed by a government takeover of aig. literally overnight the recession became a global crisis. >> this is what brought us to the brink of collapse. wow, all because annie went and got a house she couldn't afford? >> are congress had to act, bail out the banks that led to the collapse with their risky behavior. but on monday, september 29th the carefully crafted bill to rescue the system went down to defeat. >> the motion is not adopted. >> investors been into full blown panic. the dow dropped 777 points, the biggest single day point drop it had ever had. $1.2 trillion in value wiped out in a single day. >> we have much work to do and this is much too important to simply let fail. >> congress got the message and on friday, october 3rd, they finally passed the $700 billion troubled asset relief program or tarp. >> the motion is ad

it wasn't as if fannie mae had this epiphany and said hey, we're going to fix it. >> heather: is fanniectually information that's very easy to find. you can file a complaint with them. i encourage our viewers to do that, to put a complaint in if they had a short sale and it showed as a foreclosure. the other thing is that you can get the letter from the lender that approved your short sale. but if you don't have that letter now, heather, you will never get that letter from the lender, believe me. so if you can't find it, ask your realtor who did the short sale, they'll probably have it as part of their file. >> heather: you'll have to go about collecting a lot of documentation and fight it out. this is obviously a very serious issue because then people couldn't get mortgages for years and years as a result of foreclosure being on their credit report, even though it's erroneous. also can affect someone's ability to get a job, too, because that affects their credit report and all these companies going through background checks. we have to leave it there. >> okay. >> heather: thanks a lot.

federal housing finance agency are looking to lower the maximum housing loans, that were back during fannie mae and freddie mac. the idea is to wean mortgages off government support and let private companies take a bigger role in guaranteeing home loans. >>> meanwhile, wells fargo, the nation's fourth largest bank says it expects to make fewer loans in the next quarter. even though it is the nation's largest longer, they will see a drop in loans due to the rising interest rates. >>> last week, in a story about j.p. morgan chase bpg getting out of the student loans business, we reported that they stopped accepting requests for student loans, but in fact, wells fargo is still in the business with about $11 billion worth of student loans. >>> and from wall street to main street, everybody is watching what apple plans to unveil. the spotlight will be on tim cook, the ceo, shareholders and others would like to see apple, with new products and services. john fort has a preview. >> big day for am ceo tim cook and the iphone with the company's reputation for innovation on the line. for the first time,

a qm loan gives mortgage bankers protection from borrower losses and can be sold to fannie mae and freddie mac. >> we created more rules and regulations to protect the consumer than have been applied in the history of mortgage banking today. are there going to be unforeseen risks? absolutely. >> reporter: that's where critics argue that qm by giving safe harbor to lenders leave borrowers in the lurch again. >> if you get a certain kind of loan that meets certain terms, you have no recourse against the bank. that should never be the case. >> reporter: big lenders like wells fargo do the bulk of lending in the future under stricter new regulations but they can also operate outside them, it is perfectly legal. they just have to hold onto more risk. >> these are important changes for consumers. >> reporter: one of the architects of the new rules left the cfpb to start a firm that will lend to borrowers that don't meet qm standards. the loans will be more pricey. >> nonqms are the only place to make decisions and bear the risk and reward where you can count on being paid for risk. that's where

fannie mae and freddy mac pushed for a sale, and let lehman brothers collapse.nistration established tarp. which allowed the u.s. treasury to buy or insure up to $700 million. >> i'm convinced this bold approach will cost american families far less than the alternative. frozen credit markets unable to fund economic expansion. >> cascading out from wall street came a recession that saw millions of home foreclosures, massive job losses and wage stagnation that still remains today. by the end of 2008, the housing market has plunged by 18% compared to the previous year, well. >> by our determination to act together we cannot only inject the confidence that is necessary in the world economy, but also build anew e

five years ago, the federal government took over fannie mae and freddie mac. a week later, lehman brothers collapsed. and unemployment was sliding downhill six times faster than its been improving and got worse for another year. so how are we doing now? "we had eight million jobs lost and six million have come back in basically four years." the truth, rosemany haefner says, is those two million jobs may never come back as before. it is particularly tough for older workers. "it's very difficult to get back to that income level, no matter who you are." that pessimissm was repeated in a survey sponsored by country financial. "things have improved. i just don't think they've improved quick enough for main street middle america." unemployment, is higher than it was five years ago. but it's improving not getting worse. 44% of companies careerbuilder surveyed are hiring full-time. same as last year. another 31% will hire part-timers..ten percent higher than last year. "i think you're seeing a shift.companies want to see if there's enough business to support this full

the lives of four little girls, denise mcnair, carol robinson, since the deaths it was fun and fannie mae collins. with lisa mcnair, the sister denise mcnair, and diane braddock, the sister of carol robertson. we will also talk with douglas jones, the persecuting attorney of the klansmen responsible for those murders. those conversations coming up right now. >> and by contributions to your pbs station from viewers like you. thank you. tavis: earlier this year, the families of the four little girls that died in the infamous birmingham church bombing were in the white house for the signing -- they were murdered 50 years ago the sunday while preparing for sunday school at the 16th street baptist church in birmingham. joining me now is douglas jones committee prosecuting attorney who more than two decades later led the team that secured convictions for two of the four klansmen responsible for the murders. i am always honored and humbled to be in conversation with you, sir. >> thank you for having us. great to be back with you, tavis. tavis: for those of you who were not aware of what happened

it was on fannie mae and freddie they will be awaited to you cannot be any more here and i'll inquire as to what are you going to remember so much i mean what you have to rivets of trading that blew a trillion dollars and you agree with. the economy these were direct these are great results of conservative economics but i don't think equating conservative economic policies with with people going up better than people is that helpful i'm going to side up i agree with you and. there is that disconnects right between conservative what conservatives believe what they believe and what's happening. here but these guys you have four hundred thirty five people we have two hundred what was the what was the vote to eighty nine to two hundred something republicans in the house of representatives who just took a vote this food stamp vote this defund obamacare food stamp and we just took a vote which is going to throw three million people off food stamps you take one hundred dollars a month out of the budgets of really genuinely poor people eighty five percent of people on food stamps are children

warning sirens sounded when the government took over fannie mae and freddy mac. titans were placed on the housing market but a collapse in home prices started taking they will down. september 14th, lehman brothers collapsed, triggering a global freeze on credit followed by a government takeover of aig. literally, overnight, the recession became a global crisis. >> this is what brought us to the brink. >> all because auntie got a house she couldn't afford? >> congress had to act. they were presented with one choice: bail out the very banks that led the economy into the mess with their risky behavior. on monday, september 29th, the bill to rescue the system went down in defeat in the house of representatives. >> the motion is not stopped. >> spooked investors panicked. the dow dropped 777 points. the biggest one-day point drop it had ever had, $1.2 trillion in market value wiped out in a single day. >> we got much work to do. this is much too important to simply let fail. >> congress got the message. on friday, october 3rd, they finally, passed the $700 billion tro

. >> reporter: because their loans aren't backed by fannie mae or freddie mac, the family isn't eligibleor president obama's refinancing program known as h.a.r.p. and it would require new legislation. >> congress should give every america the chance to refinance at today's low rates. >> reporter: do you think that he'll be able to help you? that washington is the answer here? >> i've never found them to be the answer for anything as a business owner. >> reporter: a business owner with few options. >> you have to live with it. you have to put poen into it, or you have to sell. >> reporter: the girls may be dancing, but mom and dad can't dance around this. >> $50,000 is what they're saying we need to give to them. to be able to lower it. so i don't know if i want to part with $50,000. >> reporter: they've even thought about walking away. would it hurt your reputation as a small business owner? >> definitely. >> oh, yeah. >> there's no doubt about it. i recently sold a business and just opened another business. it's my name. >> reporter: for now, they're staying put and feeling frustrated.

been fine for rigging energy markets they've been involved of course in the london whale sued by fannie mae for fraud under investigation for bribery in china now one point is the penny dropped and somebody says you know what these guys are on a lot of serial lawbreakers and you've got us terry rolled out. in appropriately in the face of quantitative easing in federal reserve policy that is clearly being manipulated for the benefit of a few rogue what i call financial terrorists but guys like warren buffett at the very point that published it to get sean sean upon it now you know we all know that the libel scandal went on for fifteen to twenty years think the regulators must have understood that there was an issue there it was only after the ball injury by all the got made public that any kind of charges got laid and that's the whole point now is to draw attention on the fact that not a. is that evidence in their control not only is the agency has discretionary discretion not to close any investigation because it's not quote unquote law but they do so that the it would be highly embarrassin

i talked to former folks in the congressional budget from fannie mae and freddie mac.hey upon seize mortgages from banks for homes that are under water. and using imminent domain for the social good. we are going to take the mortgages from the banks at a deep discount and then they will immediately profit by reselling the mortgages to mortgage resolution partners. it was their idea in the first place. these are former wall street investors and one is a former executive from bank of america who is the father of the subprime loan that got us in the mess. he is part of the group that is going to profit and get another bite at the apple. they will rework and resale it and then they will profit. the person in the house is better off because their original mortgage was under water and they have a new mortgage. they were paying on that mortgage and targeting the ones under water but still current. and so the loans have a lot of value and they are being sewed from the bank that had them. >> if i am from bank a and gave it to the person to start with and they are struggling and