stage one, you have to close down fannie mae and freddie mac. >> when you do that, how do you create available home lending? >> so the stage two is you -- you've got to become to wean mortgage finance off the housing market, so you can't do that overnight because of the current situation. it will take about a decade so slowly and surely. >> where is the money going to come from? >> a partnership between the government. >> over a decade. >> and you're left with this mortgage system. >> with capital requirements. >> with capital requirements. >> and a public swaps market. >> needs to be well regulated. >> just needs capital requirements. i just need one regulation. >> and most important because you've taken away the subsidies from the housing sector, you're going to get capital allocated to more productive uses in the economy and we're going to have higher growth if you do that. >> in order to get to the professor's destination, which makes sense to me, agree with that, very achievable, we have to resolve the current debt load created as a result of the easy money that was created abou

capital thanks for being here andrew so three years after the federal government took over fannie mae and freddie mac. the mortgage giants as part of its bailouts what is this done for the u.s. economy exactly. president anything for the u.s. economy and certainly saved save the holders of fannie mae and freddie mac. bonds what it saved i mean basically you had fannie and freddie being completely bankrupt after having made ridiculously foolish loans into the mortgage market now i don't think there's anything criminal about offering. foolish loans or even buying shares in a company that's making foolish loans that is stupid it's not so certain this is solely criminal but as a result of the bailouts these companies that should have gone down the mortgage market should completely disappeared i mean the essential u.s. housing market should have been returned to a cash business which will which it was not but didn't happen but instead all of the losses that should have been borne by fannie and freddie shareholders and bondholders and the banks that bought and sold fannie mae braun's and fannie mae loans t

one of the more destructive products that was outside of bernie madoff and -- any day and freddie mac. -- fannie maend freddie mac. each month you owed more on your house. it was bad because you could qualify at $500 so you could buy a much bigger house. these products work very popular in places like california, nevada, southern florida. house prices had been rising very rapidly. the theory was go by a big house and refinance in five years. they were not subprime targets. they were targeting mostly young people in the expectations that their income would go up. it turned out to be a very destructive product. people had massive losses in their mortgages. guess to the big players were. washington mutual, countrywide, all large financial institutions that financed those loan portfolios with fdic insurance. they could not have raised the capital and the private marketplace. in addition, they got into a vicious cycle with higher rates that they paid on specific deposits. it became a vicious cycle using fdic insurance. bb&t chose not to offer a bad product. we chose not to offer it over ethics, not econo

one of the more destructive products that was outside of bernie madoff and -- any day and freddie mac. -- fannie mae and freddie mac. each month you owed more on your house. it was bad because you could qualify at $500 so you could buy a much bigger house. these products work very popular in places like california, nevada, southern florida. house prices had been rising very rapidly. the theory was go by a big house and refinance in five years. they were not subprime targets. they were targeting mostly young people in the expectations that their income would go up. it turned out to be a very destructive product. people had massive losses in their mortgages. guess to the big players were. washington mutual, countrywide, all large financial institutions that financed those loan portfolios with fdic insurance. they could not have raised the capital and the private marketplace. in addition, they got into a vicious cycle with higher rates that they paid on specific deposits. it became a vicious cycle using fdic insurance. bb&t chose not to offer a bad product. we chose not to offer it over ethics, not eco

predictable result of expansionary monetary policy of that sort and then interventionism through fannie mae freddie mac. the basil accords poisoned the world financial systems so what we've seen is a real failure of interventionism and cronyism not free market capitalism we have a real case of mistaken identity here as to what is responsible for the crisis people such as the room who say it's an increase in greed look greed is a pretty constant thing in human society and there's no metric that showed it increased we do have very good metrics of fed policy and government policy to create an asset bubble that then burst and now we're living with the consequences we have seen and this is in the really beers repeating is a huge increase in per capita incomes around the world because of free market capitalism india and china and china after nine hundred seventy eight india after one thousand nine hundred one literally hundreds of millions of people lifted from terrible poverty caused by socialism and lifted into middle class prosperity this is the largest poverty reduction experience in all of human history

i know you are drunk at home, fannie mae and freddy mac, not free. >> i met fan knee at a mortgage orgy. i met a lot of fanny. >> my job plan just -- i notice you are not checking the internet all day, but it is sweeping the nation right now and i have many, many other parts of the plan, but my one small three-part plan is to eliminate the unemployment insurance and stop immigration legal or illegal bi-lo cage employees. we need the technological employees. you can't have a nuclearen engineer if you can't have a power plant. >> extending the employment insurance is one of the worst uses. as a society you want a safety net to keep you from descending. >> that's why we have the low wage employees. >> there is research to show that the longer you have unemployment insurance the longer people remain unemployed. that's the only thing i know. >> and the higher your raise, the more people will be out of work. >> there is also research that shows if you get rifted unemployment -- if you get rid of the unemployment, you will lose the election. >> doesn't the white house come off looking like pet

fannie and freddie. and definitely the mandate from congress was that fannie mae and freddie mac was encouraged in differents for as many people to own homes as possible. they would incentivize fannie and freddie to provide loans to low-income people, to minorities, and to others. the subprime mortgages were allowed to go out. i would not say that it is the fault of the administration or congress, but there are a lot of actors here. it is a complicated situation where you have a lot of different forces encouraging fannie and freddie to boost home ownership and linda people who could not get mortgages in the past. host: from our twitter page. guest: the mortgages did turn out to be bad, in that sense. but when you get to the heart of the question, or the banks -- were the banks putting to get their mortgages that they knew were not conforming to the standards that they should have? did people have enough income, did they have enough assets, or they owning their homes? basically the fhfa on behalf of fannie and freddie are saying that the banks knew or should have known that these mortgages were not what they

it is also the three-year anniversary of the federal takeover of fannie mae and freddie mac.july the federal housing finance agency filed the suit against securities firm ubs, for at least $900 million, for misrepresenting the quality of mortgages it backed. financial service industry executives argued the losses on the mortgage backed securities were caused by a wider downturn in the economy, and, the housing market, not by how the mortgages were originated for bundled into securities. now, they say investors like fannie mae and freddie mac were seasoned enough to know the securities were not without risk and bank officials warn legal attacks on them will delay the recovery of the housing market if banks are heavily penalized, and cause further losses across the financial services industry. bill: we'll see if they have a case in the end, lauraing in gal -- laura ingle in new york city. martha: muammar qaddafi is on the run and releasing a defiant message from his hiding place, urging his supporters as he has all along to fight on in the face of rebel calls for them to surren

it was three years ago today that fannie mae and freddie mac. were bailed out by the government now we all remember what happened from there on lehman brothers collapse about a week later everything crashed the government had to bail out. tarp came along but not until another huge crash after that didn't pass it first and from there now obviously was much more complicated that out but it was the financial melt out three years later we're still in the great recession unemployment is still hanging on around nine percent the housing market continues to be in a depressed state and now there's a european debt crisis that looks like it's about to crack course let's not leave out the not a single person from wall street isn't prosecuted added fact their profits in bonuses have shot through the roof so all in all say it's a pretty bad state of affairs but could it get even worse let me explain here last friday as we told you on the show the federal housing finance agency filed lawsuits against seventeen big u.s. and european banks for their role in the

economy it certainly saved it saved the holders of fannie mae and freddie mac. bonds what it saved i mean basically you had fannie and freddie being completely bankrupt after having made ridiculously foolish loans into the mortgage market now i don't think there's anything criminal about offering. foolish loans or even buying shares in a company that's making foolish loans that is stupid it's not necessarily necessarily criminal but as a result of the bailouts these companies should have gone down the mortgage market a completely disappeared i mean the essential u.s. housing market should have been returned to a cash business which was which was not what didn't happen but instead all of the losses that should have been borne by fannie and freddie shareholders and bondholders and the banks that bought and sold fannie mae braun's and any loans those people should have borne the losses i mean i think the banking system would have survived in a much more truncated form in a much more much smaller more manageable form instead of all those losses get socialized absorbe

like most republicans willard mitt romney is okay to bash freddie mac and fannie mae. e and slammed the company's behavior. >> the failures of fannie mae, freddie mac and barney frank and chris dodd are so prevalent we need to see how we're going to support a growing housing industry. >> apparently what he thinks is a failure for america is great for his own personal bank account. the "boston globe" reports romney has up to $500,000 in mutual funds that invest in fannie and freddie. last year alone romney made up to $50,000 in interest from that investment and romney seems to be fully aware of this investment. the "globe" says, quote, unlike most of romney's financial holdings which are held in a blind trust this, particular investment was among those he would have been knowing -- known to him. did romney think we wouldn't notice that he'll publicly attack agency but privately profit from them? nice try, willard, but we got you. [ venus ] what are they doing to stufy? they're making him triple double. why? this! new triple double oreo. ♪ yo stufy, come here! [ shoes squ

acusa de vender activos respaldados por hipotecas fraudulentas a los gigantes hipotecarios "fannie mae" y "freddie macionar perdidas millonarias durante la crisis financiera que estall en 2008. cu --a pocos dias de el certamen miss universo, mariana rodriguez nos ha preparado un reportaje especial sobre la historia y curiosidades del certamen. take pkg miss universo comenzo en el año 1952, en long beach california como una competencia creada por la compañia de trajes de baño catalina para promocionar sus bañadores. los paises latinos que estuvieron en la primera edicion fueron chile, cuba mexico, panama, peru, puerto rico, uruguay y venezuela. en el año 1960 el certamen se mudo a miami beach, florida donde comenzo la tradicion de televisar miss universo y las reinas ya no fueron coronadas en traje de baño, alli se celebraron los concursos anualmente hasta el 1972, en ese entonces gracias a la señal por satellite la competencia comenzo a efectuarse en diferentes paises del mundo. la primera miss universo en no completar su reinado fue tambien la primera miss universo de la historia...amy kuusela de fin

fannie mae and freddie mac bought them up for $500 million. what a bargain.y, the federal housing agency are keeping quiet and details of this one. but what we do know is bank of america gave a handful of other banks to bid on the mortgages and no one wants to touch them. that is story. here to discuss freedom fighters my friend sondra smith. lynn and charles, the radio talk show host and dollar meltdown. okay, what is this, the government buying these bad mortgages from the bank? >> i think it's important to realize, it's the servicing. in any case its sweetheart deal. it's not fair for the taxpayers to be bailing out private banks like bank of measuring. its strong argument for financial reform. >> why are the taxpayers, charles, out bidding private enterprise for these horrible under performing mortgages and sits the decision of the taxpayers which really means some fannie mae, an economic decision or political decision? >> how long is it going on. all these losses are transferred to the people whether on the balance sheet of fed so it's profits for the ba

remember mortgage buyers fanny mae, freddie mac? your tax dollars helped bail them out, and now the government agency overseeing them going on the attack. who plans to sue to try to recoup billions of dollars. you're not going to believe it. gregg: a fox news alert, former major league pitcher, cy young award winner roger clemens in court right now. this is new video into fox news, clemens is hoping that a judge will dismiss charges that he lied about his use of performance-enhancing trucks. prosecutors are pushing for a new trial after they presented inadmissible evidence to jurors triggering a mistrial the first time around. so what can we expect from today's hearing? doug burns, former federal prosecutor. good to see you, doug. defense is yelling double jeopardy, fifth amendment, no person can be tried twice for the same crime. >> yeah, yeah. gregg: but generally speaking, that applies to somebody who has been acquitted and can't be retried on the same charges. >> yeah. i mean, you go through three steps. one, you can't be tried

fanny mac and freddie mac. >> which is what the republicans push a lot of. >> it wasn't deregulation at all. it was fannie mae and freddie mac holding assets that they shouldn't have been holding. i was one of the people who signed a letter back in 2005 and 2006 and said we better reform these two institutions or we'll have a meltdown and that's what happened. part of it was government regulation and government markets that caused the bubble and the loose lending practices that led to the problem. >> lean forward with "the ed show" weeknights at 10:00 eastern on msnbc, the place for pol politics. >>> well, from investors to job-seekers to small business owners, it is easy to see how the troubled economy is impacting all different kinds of americans. what about our nation's students? as part of nbc's week-long education nation coverage, msnbc contributor and correspondent jeff johnson talked to some florida students about how their dreams are holding up. >> reporter: as unemployment hovers at the highest levels in decades and the economy makes a college education harder to reach, students at one florida high s

they sold to fannie mae and freddy mac. both mortgage giants lost billions.hey defaulted on their mortgages and they were picked up by taxpayers. still he says he believes b of a will find a way to weather this storm the way it has dealt with other lawsuits and concerns in the past year. >> b of a is not going to go away. it is not going to get taken over by somebody else. >> that was lyndsay sheldon reporting from charlotte. just last month billionaire warren buffet single handedly bailed out bank of america taking out a $5 billion stake in that company. >>> a new twist in the saga of the lost iphone 5 prototype. they first reported that the phone went missing at this mission district bar. a source says the phone's signal was traced to a san francisco home. after initially denying the officers were involved, the sfpd says four plain clothed officers did accompany apple security to a home on anderson street. according to police, two apple security officers went inside the house, and did not find the phone. apple would not comment on all of this. >>> feel free

negligent and misrepresented the risky mortgages that they bundled together and sold to fannie mae and freddie mac. fannie and freddie ended up losing about $170 billion and taxpayers footed the bill. in all, 17 financial institutions are being sued, including bank of america, citigroup, goldman sachs, g.e., morgan stanley and j.p. morgan chase. you might recognize that a lot of those names got a taxpayer bailout under tarp. so we, the taxpayers, are now going after banks that we bailed out. the lawsuit claims these banks failed to identify or looked the other way when borrowers' incomes were inflated or even falsified. >> pelley: sharyl, what may come of all of this? >> we talked to experts today and they're predicting the lawsuit will be settled for something less than the $41 billion claim but cost the banks dearly at a bad time in the economy. >> pelley: sharyl, thank you very much. on the gulf coast this evening, it is no hurricane but tropical storm lee may bring dangerous flooding. lee is a slow-moving storm. the weather service tells us it may hold ten to 15 inches of rain. warnings are up

and "the new york times" reports the agency overseeing fannie mae and freddie mac will sue more than a dozen banks for billions over mortgage securities sold at the height of the housing bubble. "the times" jamesed bank of america, jpmorgan chase and deutsche bank. august auto sales rose 7.5%, way better than expected. august same-store retail sales were slightly below expectations, but macy's and costco both rose on strong sales. communications equipment maker sienna skyrocketed 20% posting its first profit in three years. after the bell netflix tumbled after starz entertainment said it would stop streaming its content on the service. and, finally, chalk up another casualty to the digital age. the blue corner mailbox. due to steeply declining use, the postal service has removed more than 60% of the familiar neighborhood mail drops. >>> well, coming up, the yankee/red sox rubber game. last year's heisman trophy winner throws a touchdown. and milwaukee's brewers show their major league sense of humor. >>> plus, time flies in the opening game of the college football season. your early

america, gold man sachs and others misrepresented the quality of mortgage packages sent to fanny mae and freddie mac. the lawsuit could be filed within days >>> the u.s. state department issued a worldwide travel alert following september 11th. it does not cite any threats but says that u.s. citizens living or traveling abroad should take precautions because al-qaeda and other terrorist groups could strike anywhere. terrorist groups often hit on significant dates to gain maximum attention. the state department encourages americans to register on its website when out of the country. >>> a crash between two big rigs in oakland this morning has left parts of a freeway connector on ramp shut down. the accident happened about two hours ago in the ramp from northbound i-880 to westbound i- 80. one driver was hurt and one of the trucks leaked oil or gasoline on the roadway. as you can see, crews are busy cleaning up the leak right now but the highway patrol told us just a few myths ago that both the lanes of the ramp -- a few minutes ago that both the lanes of the ramp should remain closed. they will reope

loans they lend that the banks and lost money in the cell of homes the overseas users of fannie mae and freddie macke up this lawsuit >> all the negative this morning bank of america down 1/2% golden stacks of 4% after that investigation announcement and the bad news was the jobs report it is off 225 points right now . >> we have of really nice weekend i had warming up today as we head through out the day-to-day common lot of sunshine at the. oakland is gonna be 76 degrees and sunny this is a map with that of the difference in temperatures compared to yesterday everybody is going to fill the warmups we are in the '50s and '60s by the 9:00 hour we will have m-60 of '60s and '70s this is a look of temperatures are around the bay area for later on this afternoon along the coast we will stay in the '60s and perhaps '70s in some areas 97 for fairfield as we work our way through the labor day weekend sunday will cool down all little where. time rigt now is 6:49 a.m. >> no problems spill hot spots and very little traffic this morning traffic lighter than usual this is the bay bridge toll plaza as we appro

housing finance agency is suing 17 financial institutions over massive mortgage losses at fannie mae and freddie macs from washington. >> 17 banks are being sued by the government for $200 billion. the federal housing finance agency filed suit friday in new york and connecticut trying to recoup some of the money they lost because they say that these financial institutions knew their mortgage-based securities were rotten, but they sold them to fannie mae and freddie mac anyway. the u.s. government wants the banks to pay for their alleged misdeeds, but some analysts say the timing here is troubling and that it could tank the economy even further if the banks end up losing in court and have to pay uncle sam money they could be spending elsewhere. >> while it might not be directly attribute to do a further drop in employment and consumer spending, what we do know is it's dollars spent that could have been invested and those investments, of course, could be used in some way, shape or form to drive or at least stem the decline in housing prices to create more jobs, to create continent. >> how is it that t

themselves and the government can't sue themselves but if you think about it, the moment fannie mae and freddie macot a aaa rating and the way it work, fannie mae couldn't pay for it. the government and the full faith and credit of the u.s. government would come in and back those mortgages. so, the moment that happened, what really took place was now you had aaa rated mortgages and it was because fannie mae basically said i'm blessing these and when that happened they could loan those mortgages out and pools out and they could be loaned and borrowed against and i don't know how much cup ability lies with them, and people say the bad banks... i don't think it is quite that simple. >> jamie: sounds like tax dollars at work and the question is speaking of dollars, people want to borrow money and we hope to banks will put it out there and stimulate the economy. are they tightening the strings. >> i'm sure there will be some and another part that doesn't make sense, the one partner, the most important partner the government needs are the banks to loan money. and, here they are, just smacking them in the

the federal housing finance agency, which oversees mortgage buyers fannie mae and freddie mac sued 17 banks this afternoon, including bank of america, citigroup, j.p. morgan chase and goldman sachs. and joining us now our washington bureau chief darren gersh. darren, what is the central allegation here that the federal agency is making against these big banks? >> you know, tom, it's very interesting. basically, the federal regulators are suing these banks as an investor, and they're saying that the banks when they put together these complicated mortgage-backed securities, basically didn't follow underwriting procedures, and essentially lied to investors about the ability of these borrowers to repay their alones. very interesting detail in here is some of these suits allege that the banks hired due diligence firms to make sure these loans were okay and then ignored their advice. if that's true, that's very damaging. >> tom: very damaging. it's not the first time the banks have been alleged to have behaved improperly when this came to hand, out these mortgages. i want to ask first about

the agency oversees mortgage giants fannie mae and freddie mac, which invested in those securities. has overruled the environmental protection agency and dropped a plan for stricter curbs on industrial smog. a white house announcement today cited the need to ease regulatory burdens on business. republicans and business leaders insisted the smog proposal was too costly. environmental groups said the president's decision comes at the expense of public health. the gulf coast braced today for tropical storm lee and a labor day weekend deluge. the storm formed this afternoon with winds of 40 miles an hour. it was moving toward a possible landfall along the louisiana coast with up to 20 inches of rain. louisiana governor bobby jindal declared a state of emergency, and he urged the public to keep a watchful eye. >> this is a holiday weekend. i know there are football games. i know people will be paying attention to at love different things over this weekend it is very important for folks to pay attention to the weather in their area. to pay attention to flash flood warnings from local offi

speaking of housing, expect higher lending fees from mortgage buyers fannie mae and freddie mac. their regulator said today the government-controlled firms are expected to gradually raise the amount they charge lenders in the next year. that would reduce the companies' long-term exposure to risk. fannie and freddie do not make loans, but they buy them from lenders and package them into securities that are sold to investors. they charge a guarantee fee when they buy mortgages. tonight's commentator says that when it comes to economic policy, our nation is at a fork in the road. here's bill rodgers, professor at rutgers university. >> today's debate about how to reignite u.s. economic growth is basically about whether we want a 1980s or 1990s economic expansion. during the 1980s, national income grew, while during the 1990s, national income not only grew, but the growth was broadly shared. policy played a key role in generating these two paths. during the 1980s, policy placed less emphasis on growing the middle class and protecting america's most vulnerable citizens. policy also be

worth of fraudulent mortgages to fannie mae and freddie mac. which were the federal government as guaranteed basically the bank of america citi bank j.p. morgan banks you should think of these as gangs that made their money off find it financial fraud and by financial fraud i mean the mortgages that they gave just like an england when they looked at the property the property is only worth twenty two cents on the dollar in other words there was massive fraud no documentation loans fraudulent appraisals it is what my colleague professor bill black at kansas city calls a criminal genic environment with control for audit and finally the financial sector in america the investors realize we can't let crooks write handle our money because the crooks are stealing our money the money of the rich for themselves and the idea is that the american banking you have a situation today when the american banks are not opening credit lines to europe or to other banks the banks in america believe that other banks are just as crooked as they are and if that's the c

. >>> the government agency that regulates mortgage giants fannie mae and freddie mac is suing 17 of the world's largest banks including bank of america, jpmorganchase, citigroup and goldman-sachs. the suit is aimed at recovering some of the money fannie and freddie lost when the mortgage bonds the bank sold them went bad. the lawsuits claim the banks made false and misleading statements when they sold those mortgage bonds making them seem much safer than they actually were. >>> word that those lawsuits were coming and today's grim jobs report sent wall street numbers tumbling. the dow down 2 53 points, that's more than 2%. the nasdaq and the s&p 500 both were down more than 2.5% as well. >>> police and federal agents in tampa, florida have broken up what they say is a massive fraud scheme to get money from the federal government. the target, the irs, and you will be stunned at how easy it was for the crooks to get their loot. nbc news justice correspondent pete williams has the report. >> reporter: police in tampa, florida are accustomed to seeing drug dealers with fancy cars but the