the federal reserve bank of new york and found it wanting in its oversight of citigroup. you can expect us to be as critical and tough on the federal reserve bank of new york as warranted. we will not play any favorites here. i will tell you that as i look at the evidence, i see lots of yellow and red warning lights. there was a lot along the way that should have warned people like tim geithner, hank paulson, alan greenspan, that troubles on the way. >> you say you don't want politics or political consequences to influence the decisions you and your fellow commissioners make. i wonder if you given any thought to the political ramifications of what might be to assign blame to individuals like tim geithner or ben bernanke? >> we of a job to do. our job is not to get out the news and roll heads. our job is to lay out the facts of what happened and collett as we see it. i just made the observation that when you are talking about institutions, leaders have to take a measure of responsibility. one of the things most disturbing about this crisis is, because the american people w

we unveiled new information about the federal reserve and the information they had, the warnings they had about subprime lending and not withstanding that they didn't act to regulate subprime lending. we've revealed dramatic failures in corporate management in entities like a.i.g. and city group. >> i want to ask two quick followups. first, can you tell us us quickly if you are under some obligation not to disclose what you have or have not referred to law enforcement? and then second, on the matter of the federal reserve, the fed gained significant power in terms of financial stability oversight of the largest companies under the recently passed financial overhaul. given your criticism a moment ago of the fed, do you feel like it's problematic to invest them with additional power now? >> so lets me take the first issue. as i said, we have an obligation to refer where we find there may have been violations. we also have an obligation as a commission to respect the investigative and judicial process. and we're not in the business really of holding press conferences or trying to make ne

in addition, federal reserve staff members and our kearnt parts at other federal agencies are, evaluating potential effects of these problems on the real estate market and financial institutions. any discussion of housing policy in this country must begin with some recognition of the importance that americans attach to homeownership. for many of us, owning a home signaled passage into adulthood coinciding with the start of a career and family. high levels of homeownership have been shown to foster greater involvement in school of civic organizations, higher graduation rates, and greater neighborhood stability. recognizing these benefits our society has taken steps to encourage homeownership. tax incentives, mortgage insurance from the federal housing administration, and other government policies all contributed to a long rise in u.s. homeownership rates from 45% in 1940 to a peak at 69% in 2004. but as recent events have demonstrated, home ownership is only good for families and communities if it can be sustained. home purchases that are very highly leveraged or unaffordable subject the b

the markets were flat on friday. >>> the federal reserve's beige book. i its economic report from different regions of the country shows economic activity continues to rise at a modest pace. lawrence lindsey has a unique perch from which to view america's economy. he served on both the boards of governors of the federal reserve and economic adviser to george w. bush. he is currently ceo and president of the lindsey group. larry, great to see you. thanks for being here. >> my pleasure. thanks, maria. >> what an economic environment we all face right here. we've seen a pretty good stock market over the last several months, but in many ways a soft recovery. mainstream america still feeling the pinch of that economy. why such a disparity between the two, in your view? >> well, i think that we're now running a policy that is oriented toward propping up asset prices. in fact, that's sort of the strategy behind qe2. if the government buys bonds, somebody else has to buy something else, and hopefully that stocks. and i think expectation of qe2 is what has been b

a lot of tea party folks want to question the federal reserve. and look, there are a lot of executives of companies that got a bailout from the government that don't necessarily think that you should stop all bailouts across the board. ask the folks at gm what they think or ask the folks at citigroup what they think about government bailouts. a lot of them tell you it's a necessary evil, but necessary. the tea partiers don't see it that way at all. >> a big debate on that, no doubt about it, eamon. diane, a big week ahead. let's talk about the upcoming catalyst for the markets. we've got the fed meeting, the open market committee convening on election day, set to launch a new round of quantitative easing. the jobs numbers of course released on friday. a big week. what are you expecting? >> it's probably going to be more scary than halloween. but i am expecting that the federal reserve will begin its incremental move in the quantitative mad cow diseasing. it's incremental for several reasons. one is we don't need the shock and awe we did during th

welcome. >> good to be back with you. >> the federal reserve is planning on more quantitative easing, buying treasuries and mortgages to boost the economy. good idea? any downside to this? i think there's a lot of downside. i think most of the good ideas behind us, they signal that they're going to be doing this, rates have come down, boosted the stock market a bit, but i think there are a lot of risks with that kind of what some people think could be another trillion dollars of buying by the fed. >> so should they not do it, then? >> boy, they're going to disappoint the markets if they don't do something. i don't think there's much doubt that they're going to do something, but i don't think they have to go to a number as big as a trillion dollars. i think they should start, do a small amount, and then think twice. >> what does it say about the economy that we need all of this stimulus and the fed constantly say, we will be there if things deteriorate, even further? >> well, the economy's very weak. you look at the last employment numbers, payroll employment down almost 100,000, housi

where is the federal reserve independently makes monetary policy.and fiscal policy, with a very difficult situation because in the short run we have an economy which even know were in the is still far from all employment. until then that sense, there was a lot of desire to provide additional support to the economy. at least not to cut spending or raise taxes would be bad for recovery. we had very long-term budget problems as you know. as you know, our society is aging and if medical costs keep going up, the obligations to pay medicare, medicaid and social security long-term situation. so we're kind of caught in the desired in the short run to be more expansive and in the long run to be more frugal and that's a hard combination. and i think is possible -- i think of biting those two in that way is the right way to go. in other words, whatever we can do to persuade the public that we -- and i say we as a country talking about congress, that we are serious about tackling a longer-term budget issues, work which take the steps necessary to reduce their l

for a former member of the board of governors of the federal reserve bank of america and he went there in what was it two thousand and six or something like that and he told them that their system was great the deregulation of the banking system here was fantastic it was the best in the whole world so this is what happens to people who listen to well people on boards of governors of banks around central banks around the world savers told to stop moaning and start spending this is charlie being who is a senior bank of england official and he was interviewed on channel four and he said quote it may make sense for them to eat into their capital a bit where you can have capital without capitalism of course so he's saying we should destroy capitalism and then you know the challenge for a presenter goes on to show very vividly the cost of these low interest rates for was as a must i paid by twenty six billion pounds because of those interest rate reductions for savers i've lost by twenty billion pounds that's a direct transfer from savors to borrowers yet but these very central bank governor

ready to step in, the chairman of the federal reserve points towards renewed action to boost the fragile.s. economy. hundreds of people who fled hungary's toxic spill disaster are allowed to return home but are told they must wear protective masks. welcome to "bbc news." >> coming up had later, drugs and possession. american troops tell the bbc why the afghan army is still not ready for the hand over of security. and the prisoners who tried to smash his way out of security, and into the arms of the law. >> all but two of the 33 minuters rescued earlier this week in chile have left the hospital after being discharged. reports say most of them slipped out of the hospital by a side entrance to avoid journalists and camera crews. doctors say their physical condition is surprisingly good. but the psychological state of man remains fragile. david reports. >> the first three miners were released from hospital on thursday night. today, 28 others followed in their footsteps. cleared by doctors to go home and to be reunited with their families once again. all of the men were taken to the hospital

for example the federal reserve bank is sitting on so much toxic debt. that it what you're suggesting is that the global investment community and the global bankers around the world but primarily investment community says you know what i'm not going to own i want to get out of my u.s. treasuries out of my u.s. dollars and this of course would be a situation of hyper inflation otherwise known as a currency collapse and as you write in july when you were in chill a you had a similar experience in the early one nine hundred seventy s. right there in that country which you are now drawing a parallel what the u.s. in the late seventy's as well and you know your fair and until the point about the rough with hyperinflation the early seventies which the cost of which were vastly different from from the united states today but it essentially i would argue your analysis is you can look at this problem from various different angles now number one there is no question that there is deflation going on now in the united states and that the federal reserve board is ter

also, should the federal reserve buy trillions of dollars of treasuries?e'll take a look at both sides of the quantitative easing debate with minyanville's kevin depew. federal agents have broken up what they say is a huge, nationwide medicare fraud. dozens of people were arrested today and charged with racketeering. they're accused of stealing more than $100 million by submitting fake bills for medical procedures that were never done. law enforcement officials say the group appears to be an armenian-american organized crime ring. arrests were made in ohio, new york, georgia, and new mexico. >> tom: your gasoline may have more ethanol in it soon. the environmental protection agency today agreed to let the corn-based fuel be up to 15% of mixtures sold at the pump. change applies to newer cars and trucks. the current level is 10%. the news was welcomed by farmers, but it's opposed by other groups, because it makes animal feed more expensive and eventually raises prices at the grocery store. >> suzanne: in the "money file" tonight, thoughts about the estate t

>> susie: add the federal reserve to the list of agencies investigating the foreclosure document mess. >> we are looking intensively at the firms' policies, procedures, and internal controls related to foreclosures and seeking to determine whether systematic weaknesses are leading to improper foreclosures. >> tom: but what happens to housing and how we pay for it, once we get past the current foreclosure crisis? some answers coming up. you're watching "nightly business report" for monday, october 25. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt >> susie: good evening everyone. the foreclosure fiasco is now getting ben bernanke's attention. the federal reserve chief said today the central bank is "looking intensively" at lenders' policies, procedures and internal controls. >> tom: susie, bernanke's comments come less than week after the obama administration's top housing official said there are no sy

. >> susie: those dreary numbers could be the trigger for federal reserve policymakers to pump more money in the financial system, hoping to spur economic activity and hiring. scott gurvey reports. >> reporter: the employment report for september looks a lot like the report for august. more government layoffs than new hires in the private sector. there are also signs cautious employers are making due with part-time and temporary workers, adding to the number of so- called underemployed. and with consumers still cutting spending to pay down debt, economist chris low sees the sluggish pattern continuing. >> the obvious bad news is that we've got an unacceptably high level of unemployment in the u.s. and we will continue to have an unacceptably high level of unemployment. the good news is that at least the economy is growing. >> reporter: growing yes, but job growth remains slow. so slow in fact it is not keeping up with population growth. the president's top economist today admitted his disappointment with the data. >> it's clearly the right trajectory, but it's got to be much higher becaus

wednesday, the federal reserve wraps up a two-day meeting. it's widely expected to announce a new plan to stimulate the economy. and friday, the october employment report is released. monday, as we await the fed's decision, we look at whether this so-called quantitative easing has worked before. >> susie: the lone star state is the lone holdout when it comes to meeting new federal rules on greenhouse gas emissions. texas has yet to comply with new environmental protection agency standards that go into effect in january. every other state has gotten federal approval to begin issuing greenhouse gas permits or said they will allow the e.p.a. to issue permits for them. the new rules call for the nation's largest industries to meet stricter greenhouse gas emission standards. >> tom: a split decision today for former media tycoon conrad black. he lost an attempt to overturn all of his convictions for fraud and obstruction of justice. but, a u.s. appeals court in chicago did reverse two fraud convictions. a recent supreme court ruling gave black gro

no one knows what goes on inside the hallowed halls of the federal reserve.e'd like to think we do. >> speaking of the federal reserve, the author of "the black swan" and a fairly provocative author on our current financial structure predicting recently in an interview the federal reserve will be gone in 25 years. >> oh, i think there's always going to be need for a central bank to engineer and, yes, that's a nasty word these days in terms of the maneuvering interest rates. but to serve as an intermediary between -- between wall street and main street. you know, the days before central banks were not good ones in terms of the tremendous volatility up and down, yields and deflation and inflation. we certainly had a much calmer economy in the last 100 years or so since the federal reserve was created. we're going to have another 100 years as well. >> good to have time with you on my latest and newest program. it's been a while since i've seen you. i'm going to hit you up for the free house. free house is in the cards somewhere, right? bill gross, founder, bill

to the extent that we're going to do anything, it's going to be from the federal reserve. and i've said and as many people have said, the federal reserve is down to pretty weak weapons. now it's not defenseless, but it's down to pretty weak weapons. >> and those weak weapons i guess is quantitative easing, which everyone is talking about. do you expect the fed to be purchasing certain securities and doing that so-called quantitative easing? >> i do. >> obviously they can't take rates any lower. >> they cannot take rate nice lower, with one exception, though there is the interest rate we pay in bank reserves, which i urged the fed to lower. you can even go negative on that one. charge banks to keep the money on deposit at the fed, the idea being to force them out to break the logjam and push this idle money out somewhere, where it might do some good. the fed has not made a lot of noises that it's going to do that. it has made a lot of noises about quantitative easing. and i think at this point it would be surprise if they don't announce more quantitative easing, and probabl

federal reserve white house is talking to china trying to share their experience while the u.s. federal reserve continues to print billions of dollars and pumping them into the economy isn't it isn't it actually a policy of dollar depreciation while they're voting for appreciation i would say that as a new government in the ward and there are first of all would like to solve all problems the problem of all nations as well as china as well as russia as well as british to go with an. of course of course it is a great danger for the united states that the economy ees facing the double deep economic recovery is not stable is not fast and there are great concerns that unemployment is high enough and the economy milf we may phase the second decline in the role and of course federal federal reserve would like to help to boost the economy by cheap money so money for a policy maybe is not the best instrument but is the only one remaining in the hands of the most of those social you think there the u.s. will continue the policy are of cheap credit and the price of the dollar will continue

market capitalist system for forty years not since the us went off the gold standard and the federal reserve the central banks are managing the economy like this massive you know centralized command and control. committee and this is just another example of well the other thing that's so funny about it is it might as well be a group that doesn't exist because it's impossible to say if these currencies these currencies as the next headline would attest to brazil's central bank president said. no country can hold dollar up so this is a brazilian central bank president enrique meireles and i guess he was he's being asked to intervene and lower the value of the brazilian right now which is up thirty four percent in the past year against the dollar and of course there's a lot of pressure from you know special interests within your own country to do something as the race to the bottom of the currency market happens well it's competitive devaluation like we saw in the one nine hundred thirty s. because these countries don't have much of an export market in the u.s. i should say they mean there's no

where is the federal reserve independently makes monetary policy. and fiscal policy, with a very difficult situation because in the short run we have an economy which even know were in the is still far from all employment. until then that sense, there was a lot of desire to provide additional support to the economy. at least not to cut spending or raise taxes would be bad for recove. we had very long-term budget oblems as you know. as you know, our society is aging and if medical costs keep going up, the obligations to pay medicare, medicaid and social security long-term situation. so we're kind of caught in the desired in the short run to be more expansive and in the long run to be more frugal and that's a hard combination. and i think is possible -- i think of biting those two in that way is the right way to go. in other words, whatever we can do to persuade the public that we -- and i say we as a untry talking about congress, that we are serious about tackling a longer-term budget issues, work which take the steps necessary to reduce their long-t

and also, the federal reserve as you said, announced they are toe federal reserve investigating this is the federal government attempting to enforce state laws which it is not the business of the federal government to do. foreclosure law is unique to each state. the problem arises in states where no judges are involved. and the bank can obtain title to the documents merely by serving the homeowner and serving a clerk. if the homeowner remains silent the bank gets the title to the property. that's the law in 23 states. in 27 states this has to be done through a judge who has to physically read the documents and decide whether to transfer property. but as long as the home owners is in default, as long as the home owner stopped paying, as long as the bank is really entitled to the property, it doesn't matter if there are some immaterial mistakes on the documents. that happens in virtually every piece of litigation everywhere in the country. >>shepard: there is another question: if i am foreclosed upon i would want to know what the heck are you doing using burger king kids, nothing wrong

reserves. it is like the checking account that each bank has at the federal research. it's earning a quarter of a percent. the fed could lower that to zero t could even go knowing difficult, that is to start charging banks in order to sort of sandblast that money out of the banks and in, in some sense, to the economy. >> brown: john taylor, what's your answer to this if how prescribed is the fed first and what options do you see? >> well, right now i think there's tremendous uncertainty about policy in general, fiscal and monetary policy. and for monetary policy the fed's responsibility, i think they could do a good job of outlining the strategy for the future. right now this idea is thrown out, alan just mentioned a couple of them that are being discussed but there is no strategy of where things are going. and i think that creates ununcertainty. i think a big stimulus to the economy would be to outline a strategy, ultimately when the economy gets moving, how will the exity take place, in the meantime, a description of what their plans are for the reserves in the banks

by the federal reserve in the banks is this the united states congress or the board of directors of goldman sachs congressman poussin it's his remarks were not widely reported either they were still refusing to make new loans the oversight of paulson's program was criticized because millions could not be accounted for fraud is to seat and the essence of fraud is i create trust in you and then i betray that trust and get you to give me something of value and as a result there is no more effective acid against trust and fraud especially fraud by top elites and that's what we have although all the facts are not even about who got how much and under what terms many in the public see the bailouts as a way to loot taxpayers as fraudulent as the problems they were addressing. yeah broad over the capitol hill but the summer of two thousand and nine the crisis had not abated unemployment continued to climb foreclosures to mount bankruptcies to grow markets to shrink firms to fold and tensions to tear apart families and communities i think you will see a bunch of people get died and get so