, next 15 months, what impact does that have on the trump administration from moving forward on fannie maeie mac? jesse: the problem with fannie and freddie is that no one really quite knows what the impact would be on mortgage rates. shery: [laughter] -- kevin: [laughter] treasury would tell you, even if they are free companies, mortgages would not go up that much. on the flipside, bond investors who buy all their mortgage securities -- a huge market, truly dollar market -- bigger than chile dollar market. if they were to stop by no securities for some reason, maybe they think the risk profile is higher because they are not wards of the state, then mortgages are not as readily available as they are now. if it was me, i wouldn't go for it. but they are private market capitalists. there are a lot of people in the republican party that don't think the government should have such a big role in housing as it does now. shery: if this is kicking the can down the road, how dependent will this be on what happens in the 2020 elections? jesse: hugely dependent, in my opinion. treasury secretary stev

housing market fannie mae and freddie mac. . sure let's start out by explaining who they are they're both government sponsored entities which means that they're somewhat private operating under the auspices of the federal housing finance agency and what they do simply is fannie mae buys mortgages from commercial banks pretty mad buys mortgages from thrifts they securitize them into mortgage backed securities and they sell them to the market and that's a wonderful thing it's quite profitable and the government has done quite well since 2008 with this model the situation is that if you privatized certain mortgages that would be available consumer to consumers may not be there and they may shift the landscape of the mortgage backed securities market but it may also do and this is what regulators and consumer advocates are very very concerned about we may revert back to a situation of 2008 where if there is a less government intervention and oversight we may have a situation where subprime were non-conforming loans are sold as part

going to be a massive recapitalization, that the government was going to forgive every debt of fannie maegoing to leave conservatorship like yesterday and start building up capital, this plan did not say that. we should point out that shares of fannie and freddie are off their lows today, so they are up a little bit today. liz: in the commercial break they were down 9% and change. now 8.5%. >> they were down 12% earlier in the day on the initial news. here's the thing. what i would say is this. it's now the ball's in mark calabria -- treasury laid out a bunch of sort of proposals to get them out of con servservatc. it's up to him to implement the proposals. i will say this. if you are buying the stock at these levels, here's what you should realize. mark calabria generally doesn't like the gses. he doesn't think government should be this much involved in housing policy. that's what they do. they allow -- they are a government agency even though they are private companies -- liz: there's a reason we get a 30-year mortgage. >> a lot of people get them. for average people, because banks are

-- fannie mae and freddie mac. it marks 11 years since the government bailed out and put those where they remain today. prior to 2008 the government- sponsored enterprises held $.45 in capital for every 100 in capital for every $100 in mortgages guaranteed. now they hold just $.19 after a $200 bailout from taxpayers. 11 years later these systemically important companies continue to be too big to fail and are more leverage than they were before the financial crisis. taxpayers inevitably remain on the hook for the next market downturn. in march pres. trump signed a memorandum directing the department of treasury and urban development to develop a plan for administrative and legislative perform of the housing finance system. many of the recommendations and the plans released on thursday are consistent with my outline to fix the finance housing system including attracting private-- protecting taxpayers against future bailout and promoting competition as well as preserving certain incremental reforms that have already t

guest: fannie mae and freddie mac are the biggest financial institutions there are. n j.p.bigger morgan and freddie is bigger than citibank. factors.the dominant one think the administration is doing is trying to figure out freddieet fannie and with her $5 trillion of risk better capitalized and in a more competitive state. host: for those of us who don't really follow this, when you say fannie and freddie have no capital but they have $5 trillion, what do you mean by this? guest: fannie and freddie guarantee mortgages. they are the biggest concentration of mortgage credit risk in the world. t dollarsn with a they are on the hook for. failed in 2008 and disastrously from guaranteeing and making bad loans they were taken over by the government. since then they have run 100% backed by the taxpayers. between the $5 trillion in risk and the taxpayers there is no cushion of capital. a fundamental financial principle is you want private capital between whatever risk the taxpayers are up against in a crisis. these are huge companies with huge risks. host: most people interac

the director of the federal housing finance agency who serves as the regulator and conservator of fannie mae and freddie mac. i want to thank each of you for coming to the committee this morning. last friday marked 11 since the government bailed out and put fannie mae and freddie mac into conservatorship, where they remain today. prior to 2008, the government-sponsored enterprises held a 45 cents in capital for every $100 in mortgages they guaranteed. now just 19 cents after a historic 200 billion-dollar bailout from taxpayers. 11 years later they continue to be too big to fail and are even more leverage than they were before the financial crisis and taxpayers inevitably remain on the hook to developing for administrative and legislative reform of the federal housing finance system many of the legislative recommendations in the plans that were released on thursday or consistent with my off-line in the system including attracting private capital back into the market as well as preserving certain incremental reforms that have already taken place during the conservatorship including a robust tr

last friday marked 11 years since the government bailed out and put fannie mae and freddie mac in the conservatorship, where they remain today. prior to 2008, the two government-sponsored enterprises helped 45 cents in capital for every $100 in mortgages they guaranteed. now, they hold just 19 cents. after a historic 200 billion-dollar bailout from the taxpayers. 11 years later, the systemically important companies continue to be too big to fail and are even more leverage than they were before the financial crisis, and taxpayers inevitably remain on the hook in the event of a mixed market downturn. in march, president trump signed a presidential memorandum directing department of treasury and housing and urban development to develop a plan for administrative and legislative reform of the federal housing finance system. many of the legislative recommendations in the plans that were released on thursday are consistent with my outline to fix our housing finance system including attracted attracting capital, protecting against future bailouts and promoting competition. as well as preservi

steven mnuchin unveiling a plan that would re-privatize fannie mae and freddie mac. it was back during the bush administration that the republican part of that $190 billion bailout from taxpayers issued a conservatorship for fannie mae and freddie mac. as of now, they make up about half of the mortgages in the $11 trillion mortgage market. it is a long shot to get them privatized. even behind the scenes, talking to sources this morning, republican saying something they would like to see happen, but with the divided government and heading into an election year, the plausibility of this getting over the finish line remains a challenge to say the least. also presentrdles some opportunities for hedge funds. that would mean they would be able to invest in this type of market. the administration says they want to see more competition in the mortgage market as well. it is a benchmark, it is a long way to go, but a long-awaited unveiling from the treasury department. david: it is a process. you have to start somewhere. many thanks to kevin cirilli. let's go to detroit. i was

we'll talk about fannie mae and freddie mac.ounder of papa john's pizza speaking out this morning exclusively to me in his first interview since being pushed out of the company that he founded. john bar a aso is here talking about peace talks with afghanistan, niles gardner is here talking brexit and senior judicial analyst judge andrew napolitano on big tech's anti-trust suit and doug collins on the upcoming inspector general report as well as the new move out of the judiciary to try to define impeachment. all that coming up this morning right here. markets of course pointing to a gain at the start of trading. futures up 63 points on the dow, s&p is up 8 and nasdaq's up 21. we had new data about the chinese economy showing signs of weakness. august exports to the united states took a hit, down 16% to $44.4 billion. this is a clear sign that trade tensions with the united states are having an impact. yesterday, i spoke to peter navarro on sunday morning futures about upcoming negotiations with beijing. what can we expect from th

$15000000.00 to settle claims that conspired to break the prices of bonds issued by mortgage lenders fannie mae and freddie mac. is the 1st of 16 financial institutions to reach a settlement in the u.s. which has known me to be wrong doing. and here is just weeks away from a presidential election and protesters are demanding the government declare a food emergency spiking inflation is leaving the nation's poorest struggling to feed themselves use a 100 holes a bosio reports. 60 year old housewife. lives in a hut without running water in the city of science pena in the northern argentinean province of choco she has 11 children to live with her and there's also her 4 year old grandson benjamin he is recovering from severe malnutrition. and he said often it is very difficult to buy the things you need. she needs between 4 and 5 euros for their daily food needs she says the money comes from her children's allowance her daughter's disability pension and the wages her son earns whenever he can pick up work but there is often not enough money. and yes my son does odd jobs and gets paid in the afternoo

this is to and government control of fannie mae and freddie mac.een under government control for the last 11 years can basically since before the financial crisis and the billion dollar bailout. the treasure secondary in the second day of housing and develop it will both testify. basically saying that the companies have become profitable again, rather than the profits going to the treasury, they will instead go into an account for those companies to create a cushion in the event, perhaps, of future issues. >>> a woman is recovering in the north bay after getting hit by a car in a santa rosa neighborhood. it happened last night at west eighth streets and north dutton avenue. the woman was crossing the street when a driver may have been distracted by a phone hit her. the driver stopped and cooperated with investigators. the woman who was hit is in stable condition. >> a new lawsuit against san francisco. the national rifle association is accusing the city of violating its freedom of speech. the suit comes less than one week after the board of supervi

the trump administration unveiling its plan to privatize fannie mae and freddie mac.he two companies were bailed out by taxpayers after they nearly collapsed in the financial crisis. lauren: hillary vaughn is at the white house with the details. good morning, hillary. >> reporter: good morning, lauren and ashley. the treasury department along with the department of housing and urban development is recommending that the government release control of fannie mae and freddie mac after they turned into government sponsored enterprises following the housing crisis. right now, fannie and fed dry fe giving the government billions in revenue after the bailout. now the government has a plan to restrict future bailouts. there is no timetable for them to exit conservatorship. this official saying it could be through a public or private placement. treasury officials also say changes could be made to fannie and freddy's net worth sweep. right now, all their profits go to the federal government but that could change. however, there are no details yet on how much. treasury is submitt

on the brief today, from capitol hill, kevin cirilli on treasury secretary mnuchin fannie mae and freddie mac testimony. emma chandra from london on the next brexit move, and michael mckee on new inflation data out of china and what it tells us about the state of the chinese economy let's start with kevin on capitol hill. let's first talk about this tweet that just came out from president trump. apparently john bolton is no longer there. kevin: president trump just tweeting "i informed john bolton last night that his services are no longer needed at the white house. i disagreed strongly with many of his suggestions, as did others in the administration. he goes on to tweet that i asked john for his resignation, which was given to me this morning. i thank you john very much for his service. i will be naming a new national security advisor next week." it comes following the developments over the weekend with the planned meeting president trump canceled with taliban leaders at camp david and comes at a crucial time with regards to the president's middle eastern policies. remember, jason green

week could the sudden spike help the housing market i'm joined by doug duncan, chief economist at fannie mae. >> low rates and they dropped so quickly over the last six months or so or a year, have helped the finance market but not done a ton for the housing market overall. could this cause people i better jump in now before rates keep climbing. >> you're right to divide it between refinancing and purchasing refinance is an execution of an option on interest rate differentials. you can do that without moving your family. it's a bigger issue to buy a house because then you're going to move your family and your household, so that action tends to be slower if you were at the margin of making that decision, it's a good chance to jump now. so people who were -- who had gone through the process of finding a house, finding a mortgage that they like, a lot of them will have locked in an interest rate and jumped. >> so what do you see happening with the market as we get into the fall, because anecdotally, there's a lot of talk about inventory coming on the market, maybe a little bit of a delay, it wa

running to the feds to stay afloat president bush today defended the decision to bail out citigroup fannie mae and freddie macin asked for a total at green $1000000000.00 more to sail out could get much bigger than billing even in troubles for the u.s. economy. and they're building up the next term. b. each time the taxpayer is called on to bail out of those who created the crisis increasingly the major financial institutions. in a capitalist economy you would do that in a capitalist system that would worry about the investors who made risky investments but the rich and powerful they don't want a capitalist system they want to be able to run to the nanny state as soon as they're in trouble and get billed a taxpayer it's called the too big to fail. i mean there are no bill or it's an economics who significantly disagree with the course that we're following people like just stiglitz paul krugman others none of them were even approached the people picked to fix the crisis were those who created the robert rubin crowd the goldman sachs croak they created the crisis are no more powerful than before

banksend to flippers and fannie mae,ac freddie m pan the fha back a limited number of inveor lone loanshe says big banks ban are t. >> any will are roooo being fog are the two wage earn are or income from a easily sourced job for example. they can verif income. they know you are good for the loan. >> he goesom tonity banks which b can interview him personally and better understand the rwriting on investor lone loans is general is stricter n than it was during the last housing boom. there is no such thi as no dock no down payment loan banks have been burned. >> lenders are clearly aware they want return on the mortgaga lendin well. given the price ireases with less chance of price decline, given the h singshortage, i think it's a little safer environment. but foreche market toe and both lenders and friendshipers apparently with working it out. >> the housing market is stronger today wit with low mortgage rates and rising home prices. if the economy turns weaker and no longer be aafe bet. for 9mmusiness report, diana olick in maryland. >> coming up, the fight for streaming dominance heats

fannie mae and freddiedd mac introducing more competition.th dropped more than8%. >> alibaba isg buy chinese business from t gaming company net ease for about $2 billion. th sell imported products in china including clothing, consumer electronics and luxury goods. they slipped more than 1% to 176.69. >>> symantec has repordly ceived a buyout offer from two private equity firms. quoted inhe "wall street journal", they would take control of the security business while preserving broadcom previously announced acqcqsition of symantec's enterprise security assets. the deal could be valued at about $16 billion. shares rose to 24.52. >>> which brings us to our weekly market monitor with a list of companies she says will nefit from the services sector investment in the cloud and network security. joinin us onc again is nancy pengler chief investment officer of the tangl management group. welcome back. nice to see you as always. >> you too. thanks for having me. hello, bill. >> bill just talked about. broadc it is one of your picks. >> yes. >> why do

comfort zone consumer sentiment in housing did improve in august according to a monthly survey from fannie mae, but mainly because a lot more people think mortgage rates will keep falling. but other components were not the so he rosie. fewer people think now is a good time to buy or sell a home and more are worried about losing their job in the next year that really takes sellers out of the driver's seat. back to you. >> would you say it is a buyer's market or are we in the no man's land >> reporter: if you are in the middle to upper end, it really is a buyer's market because there is a lot of supply it is that entry level part of the market where there is very lean supply that it is probably still a seller's market. >> diana, thank you. >>> ryan is a top selling real east state broker and star of the show million dollar listing new york and also the author of the book called sell it like serhant. ryan, thanks for being here. you were on the front lines of all of this action how would you describe the market right now >> the market is very much a buyer's market and it has been a buyer's market

>> reporter: consu sentiment in housing improved in august, according to a monthly survey from fannie mae, mainly because a lot more people think mortgagl rates weep falling. but other components of the survey or not so rosy. fewer think now is a good time to buy or sell a home and more job in the next year.ing dustin collins and his wife have buthey're not willing to rush into a new house. >> knowing the frenzy is overll and w be able to find -- it's more about finding the right house for us than paying a little too much for us maybe. feel now that houses are sittsg a littllonger, it gives us more of an opportutyd to fe house we want. >> reporter: a house they want with a price that fits well in their comfort zone. i'm dna olick in washington. >>> let turn to skyler olson, seor economist at zillow. welcome back, good to see you again. >> thanks for having me >> the one group that you're most concern about are those first-time buyers. why? what do you think is going on ere? >> yeah. the entry level housing market is where weaw kind of the most abrupt slowdown through this past home shoppi

nators said, you know wh these giant mortgage underwriters, fannie mae and freddie mac, arc severely unitalized. they're underwriting or guaranteeingrillions of dollars in mortgages with nowhere near the amount of money they'd need inase there was an increase in defaults. thateveraging is the key to what happened ten years ago and the entire world economy almost went under. and we had the great recession. and so what you hope is that a year from now we're not going to be looking at this undercovered hearing i saw an article on only in political magazine about this, and say, "ge why didn't we pay more attention to the fact that we seem to be running the same kind of risk that got us in such horrible trouble a decade ago?" i'm hoping that doesn't happen to be the case, but i got some concerns here. >> sreenivasan: jeff greenfield joining us from santa barbara. thanks so much. >> you bet. >> sreenivasan: the term "quantum mechanics" describes the strange doings of the tiniest particles in the universe. wher for example, two object can occupy the exact same space at the same time. li aff

vonnie: fares a of fannie mae and freddie mac up. is -- freddie joining us is mark calabria. expecting nextbe month from an fha and a treasury agreement? mark: we are working on a letter agreement. at 3 billion.ps wewill still be limited, but are looking for a number that will get us through the next year and a half or two years. after that, we will reach an agreement to the underlying share agreement. is not when you said it calendar driven, do you anticipate within a year that fannie and freddie will be out of government control? vonnie: it depends on how quickly they raise capital -- mark: it remains -- it depends on how quickly they raise capital. they will be responsible for building capital and hitting goal posts. what we will be doing to the share agreement amendments is setting up mile marker's for fannie and freddie to hit. that will be the ones that drive down that road. vonnie: how much capital will this letter agreement authorized to retain? mark: probably enough that we'll get them through a year and a half or two years.

the biggest move involving pretty mac and fannie mae. both of those agencies. the administration wants to move away from that to make fannie and freddie separate entities without public funding. liz: you have got a lot of news coming out of d.c. this all happening as we have more trump wing. china losing out big time. chinese imports of technology products from china dropped by $20 billion year to date. imports to the u.s. from other countries rocketed higher. we are talking indonesia, israel, the european union and the pacific rim. david, are we missing something? could trump be right here? how come the media isn't reporting that information? >> i think there is so much uncertainty around how it's going to play out. we know why some of the meade media are reporting it the way they are. there is an agenda and we understand that and anything that could make trump look good they don't want to cover. the president has not been totally clear how he mess acknowledged his after he general today. there were times when he said it's a basic fact that we buy more than we

the treasury department would release fannie mae and freddie mac from government control. this week they were put into government conservatorship when the housing market unraveled. this company has decided to go microphone free with its new feature despite looming competition from apple and amazon. this is bloomberg. ♪ caroline: sonar unveiled three sonar unveiled three new products, including one that is microphone-free. this after google, apple, and amazon have come under fire for recordings.er >> today marks a new era for sonos. today, sonos goes beyond the home. we have been known as the leading home audio solution, and today we take everything great about sonos and take that to the backyard and the beach with our new product, move. we are excited to usher in this era. an outdoor speaker is the first out of the home product? >> it was a request from our customers. the two things customers have been asking for is an outdoor speaker and a portable speaker. movies the solution to what customers have been looking for. it builds on our expertise around the home but allows u

housing finance system by the trump administration, including an overhaul of mortgage finance giants fannie maend freddie mac. then a surgeon talks about his we pay:, "the price what broke american health care and how to fix it." watch c-span's washington journal saturday morning and join the discussion. >> jill biden, wife of former vice president joe biden will be in dover, new hampshire this weekend to help open a field office for the 2025 presidential campaign. watch the event and her remarks saturday on c-span. >> campaign 2020. watch our live coverage of the candidates on the can pain -- on the campaign trail and make up your own mind. viewn 2020, an unfiltered of politics. >> at a recent forum hosted by !america, dr. niche sharpless talked about his needy's mission and the for research and approval of clinical trials. this is 20 minutes. dr. sharpless: thank you governor castle. it's great to be here. i want to thank research!america for convening this important forum to highlight key issues we face in medical science today, but also for its longstanding leadership in recognizing the nee

on the brief today, from capitol hill, kevin cirilli on treasury secretary mnuchin fannie mae and freddieemma chandra from london on the next brexit move, and michael mckee on new inflation data out of china and what it tells us about the state of the chinese economy let's start with kevin on capitol hill. let's first talk about this tweet that just came out from president trump. apparently john bolton is no longer there. kevin: president trump just tweeting "i informed john bolton last night that his services are no longer needed at the white house. i disagreed strongly with many of his suggestions, as did others in the administration. he goes on to tweet that i asked john for his resignation, which was given to me this morning. i thank you john very much for his service. i will be

latest step in the trump administration's push to ree freddy mac and fannie mae from government controliants will be boosting their capital by billions of dollars. they send their profits over to government. that is your business update. joe. up, hong kong protests intensifying ahead of china's celebrations to mark the 70th anniversary of communist rule. we'll take a look at the city next. this is bloomberg. ♪ caroline: this weekend saw one of the most violent protests in four months, this before china 70th anniversary of communist rule. chief correspondent stephen engle has more. teven: this is the epicenter of some of the most violent protests in the 17 consecutive eekends of unrest in central hong kong. police firing tear gas. blueused water cannon with dye to identify some of the more hard core protesters. they filed pro vehicle times, rubber bullets and boon bags against the advancing protesters who tried to storm the legislative council building and behind me.offices they will throwing molotov vehicle and any pro times they could find including bricks. they set up several barricad

committee hearing with treasury secretary mnuchin, he was short on details about the reform of fannie mae freddie mac, but he did make it clear that fannie and freddie need a government backstop paid for by private capital and they also need to be recapitalized. currently, they each retain $3 billion in capital, but secretary mnuchin said they would need a lot more. >> if i were to give you a range of a number of, it's more like $100 billion than it is $6 billion. >> and the treasury secretary also reacted to the court ruling friday saying the treasury sweep of all fannie and freddie profits was illegal. he said, they may appeal that to the supreme court. back to you guys >> all right thank you very much, diana olick. and thank you for watching "power lunch." >> a busy hour it has been thank you very much. and "closing bell" starts right now. >>> welcome to the "closing bell"! i'm here at the jpmorgan post. that stock up 0.8% today, over 3% in two trading sessions we've got the constructive comments from chairman and ceo jamie dimon coming up. broader markets, though, lower, down 0.4% on

the trump administration unveiled the plan to privatize fannie mae and freddie mac.ooking for more details on this plan from a hearing today. cheryl: the ceo of saudi aramco says a domestic ipo would be the primary listing, meaning it would be there and it would happen, quote, very soon, but he declined to say how much of the company would be listed on that exchange there. the chief said the company is ready for an international offering. saudi's crown prince first announced plans for the ipo in 2016. exchanges around the world clamoring to get this ipo. lauren: north korea continues to test weapons. the country fired two projectiles, the eighth round of launches since late july. hours earlier they announced they're willing to resume nuclear talks with the u.s. later this month but the north said wash washington must comee negotiating table with acceptable proposals. cheryl: benjamin netanyahu is claiming his country found a new nuclear site in iran. >> in this site, iran conducted experiments to develop nuclear weapons. this is the sit site. when iran realized we un

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fannie mae, a different story.huge and down today as we get conflicting signals from washington. another high performer down and starbucks down under a review of its accounting and some questions by the fcc. shery: thank you for the latest on the markets. the u.s. bond market september selloff rolls on. treasury yields rose to the highest level in a month. sam dunlap, senior portfolio manager. great to have you with us. we continue to see yields creeping higher with this -- was this inevitable given how extreme positioning has become? sam: we think the positioning was extreme in august, especially as global recession fears pete and trade negotiations seem to be breaking down. now there appears to be trade talks back in october and the data in the u.s. is better than expected, this positioning is coming up extreme levels we saw especially in risk assets in the u.s. shery: we are having corporate to the u.s., having a great time with that they lose of investment -- deluge of investment. what are we seeing in terms of

fhsareasury and the jointly announced this morning that fannie mae and freddie mac will be able to boostespectively to protect against potential losses. this is a key step in the trump administration's push to free the mortgage giants from u.s. control. how much of a sigh of relief will hedge funds be breathing today, jesse, and what is the? path forward jesse -- what is the path forward? step: it is an important because they were never going to get their hands on the money oft was the massive billions dollars in profits that fannie and freddie were making. that has all been required to go to the treasury. every quarterly profit that company makes since 2012, they've been required to send that to the treasury. these companies need more capital. in their current state, they are in no position to be able to endure losses. but the hedge funds would like some of the company's profits, their argument the and that we are big shareholders in these companies. we should be getting the u.s. government. guy: we are almost a year away from the election. how much of the change in these businesses wil

we are looking at fannie mae and freddie mac, each rally more than 27% after a court victory and encouragingments from treasury secretary steven mnuchin. kailey leinz is here with more. after 10 long years, they will finally get out from under? kailey: last thursday was when all of this was started when the treasury gave a proposal for an overhaul finally releasing these two from government control. since then, all of the company's profits have gone to the treasury, even $100 billion in dividends they paid to the treasurer beyond their actual bailout. that is something called the net worth sweep. that is what is at stake in the court case. the ruling came on friday. a victory for some of these investors. --supported the idea shareholders have been long been arguing that is illegal. than 200%s up more for both of these on a year-to-date basis because investors have long been betting that change is finally going to,. that court ruling inspired and upgraded at compass point that may inspire the administration, and we had an administration official speaking on foxbusiness, steven mnuchin, saying

. >>> the trump administration calling to privatize fannie mae and freddie mac, when we return, we'll wndo with the former head what does that mean for the housing market more power lunch after this. at fidelity, we believe your money should always be working harder. that's why, your cash automatically goes into a money market fund when you open a new account. just another reminder of the value you'll find at fidelity. open an account today. under way. major players went in front of a banking committee this week. di nachlt a olick has the next steps. diana? >> reporter: that's right. negotiations are now under way between fannie and freddie's to allow the two to retain earnings and release them from conservatorsh conservatorship. secretary mnuchin said to do that will require some kind of payment from fannie and freddie. it takes all but $3 billion from each's profit. >> i think they need a lot of capital. let me just say. you know, we're looking at $3 billion and each is irresponsible in the terms of capital and there's no way that they could operate if they couldn't draw on the trea

. >>> plus the trump administration is pushing to privatize fannie mae and freddie make and talk to the man federal housing finance agent dry director mark calabria "power lunch" will be right back >>> the future of fan think and freddie getting more clarity steven mnuchin telling "squawk box" the plan to privatize the mortgage giants. >> that's something that the fhfa and we are working on we're actively negotiating an amendment and i think our objective to try to get it done by the end of the month. this is going to be a big priority we want to make sure they don't stay for another 11 years in conservatorship and go through another period where they put the taxpayers at risk. >> fannie and freddie currently guarantee roughly half of the $10 trillion home loan market. how close are we to seeing them recapitalize and relieve some government control let's head to diana olick sitting down with mark calabria. diana. >> thanks, melissa and thank you, director calabria for joining us you are on the other side of that negotiating table from the treasury secretary do you agree with him on the

charles: i'm running way behind, i have to ask you, fannie mae and freddie mac coming out of conservatorshipey paid back 300 billion, borrowed 191 billion, is it okay for them to go out on their own? >> no, it's not. first of all, they have to recapitalize and you have to make sure these firms are not subject like the last time around. charles: we will keep it there, i can talk to you all show but we have other guests. >> why? charles: talk to the producers. have a great weekend, last week market exhibited improbable results, all week long and to me hinting that smart buying was buying -- and what does the trend suggest and how powell's speech factor into the market, chief investment strategist rob. rob, we drifted, hit the red for a little bit but buyers keep emerging on and now a couple of percentage points from the all-time high. >> amazing, charles, tall pessimism, doom and globe, recession talk, like you mentioned we are just 2% off the all-time high, if you look at the number that came out today, charles, goldilocks situation, i think it's going to be 25, i think you and i both know i

the trump administration said thursday it supports the privatization of fannie mae and freddie mac pair of massive , a government-supported companies that back about half of all mortgages in the u.s. the federal government assumed control of fannie and freddie in 2008 at the height of the global financial crisis, which was triggered by the collapse of the subprime mortgage market. trump's plan drew immediate fire from democratic leaders. ohio senator sherrod brown, the ranking democrat on the senate banking committee, tweeted -- "president trump's housing plan will make mortgages more expensive and harder to get. i'm urging the president: make it easier for working people to buy or rent their homes, not harder." the trump administration's former top official overseeing oil and gas drilling on federal lands is joining an oil company that's seeking to expand its operations in remote parts of northern alaska near the arctic national wildlife refuge. joe balash stepped down as the interior department's assistant secretary for land and minerals management last friday. and this week, he confi

we want to talk i little bit more about this now with someone who used to run fannie mae it's great to have you here 37 what's significant about this announcement >> i think that's significant about it is that it's obviously been 11 years in the making but this is a really positive step forward in terms of getting to an ultimate resolution this plan would reserve the 30 year fixed rate mortgage it would put lots of private capital in frnt of taxpay-- fro taxpayer exposure. if executed well, this would avoid a significant disruption of housing markets those would all be good outcomes. >> that said, in fact, some of the reasons you're citing have people, investors in this market saying this plan doesn't change that much. i'll read you some quotes here the scope and intention are ground while details are sketchy. it's not clear this is a real privatization and it would indicate as much intrusion as the previous system and existing ones. >> i would say this really builds on discussions that have been going on now for six, seven, eight years this is not inconsistent with the overall approac

. >> fannie mae and freddie mac, allowed banks to make 30 year mortgages to individuals, they have been in government control since the 2008 financial crisis. today the treasury department put out a report basically calling for that government control to end. now, devil in the details here. you need to read this over to figure out exactly what they want. but the treasury is saying this we want fannie and freddie to no longer be in conservatorship, meaning wards of the government, we want them to set them on a path where they are once again totally private companies or private companies with at least some back up by the federal government, so they can continue doing what they do, which is essentially buying mortgages from banks, and when they buy those mortgages from banks, guess what, they put them into mortgage backed securities, they sell them but that allows the banks to make more mortgages in the 30 year variety. there's a public policy by this government and many and predecessors that 30 year mortgages are a good thing. so they want a plan where it's no longer the taxpayers are tot

. >> the trump administration revealing a plan to revamp the housing market by privatizing fannie maeproposal is the man himself, housing and development secretary, dr. ben carson. good morning, secretary car son. it's great to have you back this sunday morning. you already have some democrats attacking your plan saying this is going to widen the gap between home ownership among whites and blacks in america. what is your case for why this is the right plan right now? >> well, you know, there's an old saying the time to repair a leak in the roof is when the sun is shining. don't wait until there's a storm. and right now economically the sun is shining on us and we recognize that, you know, the gfcs, government entities like fannie mae and freddie mac have been in conservatorship frp the last 11 years playing taxpayers at risk. this is an opportunity to really change that dynamic while at the same time refocusing the mission of fha. >> you're certainly right there was a huge problem for taxpayers with the bubble in the housing crisis. taxpayers were on the hook. can you give us one or t

including an overhaul of mortgage finance giants, fannie mae and freddie mac. insurgent, marty mcgarry talks about his new book, the price we pay and what broke american healthcare and how to fix it. lessee spans washington journal. live it 77 saturday morning. during the discussion. >> this experience is really valuable to me. really helped us grow. her past winners of cspan2 student documentary beautician. the experience sparked her interest. >> fun part about des moines iowa as i get to be right in the middle of the caucus season. so many different candidates and because of cspan2 i've had the experience in the equipment and knowledge to be able to actually film some of them. >> were asking this year middle school and high school students to create a short video documentary. answer the question what issue do you want the presidential campaigns to include. reflect differing points of view. for awarding $100,000 in total cash basis. including a $5000 grand prize. syriac action about what you are discussing to express tribune about how large or small you think

fannie mae and freddy back. -- freddie mac. they will be allowed to boost their capital.hey will be allowed to retain their earnings until the capital buffer hits $25 billion for fannie. for freddy, it will be allowed to hold $20 billion. under the current bailout arrangements from the financial crisis, both are restricted from holding more than $3 billion in capital, which meant they cannot survive without government control. if they can get to $25 billion, if they can get to $20 billion, maybe they can survive without the government. it will take them a while to get there. there are still significant challenges to recapitalization, and one of them will be to the outcome of the 2020 elections depending on how long this takes. it does go stocks i am watching. that wraps it up for me. coming up on "the open," strategic head of fixed income research as we wrap up the last day of the third quarter. this is bloomberg. ♪ y95óóo jonathan: from new york city for our audience worldwide. i'm jonathan ferro. "the countdown to the open" starts right now. ♪ jonathan: coming up, wrapp

it has released its plan to release fannie mae and freddie mac from government control to create newpetitors. that is your bloomberg business flash. david: thanks so much. still with us is constance hunter of kpmg. we remember in 2008 when the government took over fannie and freddy. it's now been 10 years, and they are still basically run by the u.s. government. constance: i think my reading of the interpretation of this plan -- i haven't read the actual --n david:david: i'm sure there's much of a plan, frankly. alix: it is taking us back to the precrisis situation with explicit guarantee by the government. an economist at fhla, i would hope he has his hands in whatever action gets taken. it is not clear from this reporting how much he's been involved. david: the child lunges how you make mortgages easier to get -- the challenge is how you make mortgages easier to get and not have a government backup for it. thatance: and i think there certainly are a number of people who will admit there are many other countries that have a perfectly functioning mortgage market without a government