now fannie mae and freddie mac. were taken into conservatorship and two thousand and eight when they received over one hundred seventeen billion dollars in taxpayer bailouts now there's been a lot of headlines about fannie and freddie record profits last quarter further the mortgage giants will pay the u.s. treasury fifty nine billion dollars in dividends which will put off the debt ceiling debate in congress now some have reported that fannie and freddie's profits were driven by a recovering housing market but according to fact fannie ten q her net income was primarily driven by record re crediting tax deferred assets to further discuss this i have with me john pryor of politico thanks for having me thanks for joining so let's talk about this fifty nine billion dollars that fannie and freddie are going to pay to the treasury fifty billion of that is accountable due to deferred tax assets what does this mean what are they and how do they generate so much money right so back in two thousand and eight when these two c

freddie carter and mike. where is freddie? freddie, come up here. please, a big hand for freddie. [ applause ] >> every time i would stop by early in the morning, 6:30 sometimes in the evening, 8:00 freddie was in that office making sure the work would get done. he held hands to many of the workers from our community and made this project possible. it is a very good example that people like freddie, when they go the extra mile teach our own residents and people who live here how to do things. we can do it. [ applause ] we can do it. and i hope this sets the pace for future projects in san francisco. all the neighborhoods from the various residents we can go and we can build more libraries, more stations, more fire houses, more community facilities. thank you very much. >> now we also wanted an ficien green living roof and also have solar panels and i think all due to the partnership we've had with the department environment of san francisco. this is actually going to be the highest rated lead which stands for leadership and energy environmental desi

as director of the federal housing finance agency this is the agency that oversees fannie mae and freddie mac. now his nomination garnered both bipartisan support and criticism tennessee senator bob corker it said in a statement i cannot be more disappointed in this nomination this gives new meaning to the adage that the foxes guarding the hen house on the other hand white house support from several republicans including senator richard burr and representative spencer baucus this is the second time obama has announced a nominee from north carolina to head the f.h. f.a. and she thousand and ten the president nominated joseph smith the north carolina commissioner of banks for the position but his confirmation failed that the republicans questions miss independence from the white house since the agency's creation in two thousand and eight and has yet to have a senate confirmed director and the post was nomination and contacts and confirmed he will take the helm from edward demarco the interim director since two thousand and nine. thousand courage to many groups to demand his removal because

david: shareholders have they been misled, fannie and freddie shareholders?deral government bailed out citigroup and aig but preserved shareholders although they had shrunk in value eminterest doesly they had a chance to recover and they're recovering. david: right. >> now in essential comparison is they bailed out freddie and fannie and they took almost an 80% control, the government, and they left the rest of it in the hands of the common shareholders because if they didn't, they would have to assume for uncle sam all the liabilities of freddie and fannie and make the deficit even more. so, in other words, they're using and now they're abusing these common shareholders because, in 2000, almost lockstep, chairman bernanke, treasury secretary paulson, regulator lockhart, told in the summer of 2008 that the fannie and freddie were adequately capitalized. david: right. >> all these shareholders thought it was second safest investment in america beyond treasurys were surprised just a few weeks later, everything collapsed. david: surprise, surprise. they were say

regulates fannie mae and freddie mac. we will also take your call, e-mails and tweets. ♪ host: congress returns after a week-long recess to take up in number of issues. the senate foreign relations committee will hear testimony from debra jones, president obama's choice to replace chris stevens, the u.s. ambassador killed in benghazi. look for coverage on c-span.org. also in the senate, the homeland security panel will focus on the border security provision in the gang of eight's and immigration proposal. we want to get your take on usa today's front-page story from monday -- and \ / \ send us a tweet, post your comments on facebook.com, or e- mail us. here is "usa today" -- here is a quote from mark zandi -- we want to know what impact this economic growth has had on your paycheck. start dialing in now. good social media, code twitter, go to facebook. facebook. few of from we want to hear about your wages during this economic recovery, during the recession, what has happened. a little bit more from "usa today," this was

cash which is not being lent from two thousand and seven to two thousand and eight the fannie and freddie titan loan standards and eventually stop purchasing subprime loans altogether we all know what happened next well it's like they're getting choosy again a new rule by the federal housing finance agency which oversees the housing giants would take effect next january and it would again thailand's lending standards no word yet from the what obama's new nominee to head the agency but we'll get to him later. now the dow hit fifteen thousand this week it is up substantially again today but have we seen the ultimate contrarian indicator the new york fed no less released a study that concludes stocks are about as cheap as they've ever been as well when irving fischer said in one nine hundred twenty nine that stocks had reached a permanently high plateau stay tuned as we discuss this the same ability of current markets and here's what's in your prime interest. how would you like to get paid for being a facebook user well i found i found someone who thinks you should earlier i spoke with jaron

that become a sink for wealth not a creation of wealth and in the derivative area with fannie and freddie with a moral hazard of basel and so forth we created an unstable system that would be stabilizing capitalism but you don't blame capitalism for the fact that we've destroyed the center structures that with effectively socialize the risk that's not got something going to grab and socialize with george wallace on. none of this is that although this is called comfort if you're unemployed isn't it well that's absolutely right and i'm also a little. strange when people talk about this idea that there's some pure capitalism because really capitalism from its inception had always been very much a state run business i mean it's basically from you know you starting from going back to the american history. of the state has always been very much involved in helping out capitalism and even before the recent bailout i mean the great. american industrial success of the computer industry wouldn't exist that had it not been for government it was a government investment in the mainframe computers that

that become a sink for wealth not a creation of wealth and in the derivatives area with fannie and freddie with the moral hazard of dalzell and so forth we created an unstable system that only stabilizing capitalism but you don't blame capitalism for the fact that we've destroyed the incentive structures that with effectively socialize the risk that's not got the will to grab and socialize with georgia so none of this is. this is called comfort if you're unemployed isn't it well that's absolutely right and i was a little. strange when people talk about this idea that there's some pure capitalism because really capitalism from its inception had always been very much a state run business i mean it's basically from you know you starting from going back to the american history. of the state has always been very much involved in helping of capitalism and even before the recent bailout i mean the great. american industrial success of the computer industry would have existed had it not been for government it was a government investment in the mainframe computers that gave us the computer industry

fannie has written up its deferred -- freddie mac has not yet. of the equation, they will pay the government back this 188 billion most likely by the end of this year. the government, remember, is sweeping the profits now. no longer taking a 10% dividend. in this environment where you have huge deficits, the question is, all right, next year we can sweep 30 billion into government coffers. it's not the right thing to do potentially in a private enterprise system. and that's what mr. berkowitz is banking on. event weiually he believes this the right thing to do. >> moving the story forward as you usually do, thanks. >>> coming up next on "the half," we are ek comichecking t charts to look for weakness in the bull rally. but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's o

those struggling with their mogages, and he is resistant to this notion of overhauling fannie and freddie. he will get a lot of republican opposition and will raise a lot of questions about a week part of president obama's administration, which is housing policy and how to deal with the affordability crisis. and there error still significant for closure issues. >> we have a former banker on the panel. pressure againt to lend. if you ignore the basic requirement of lending -- people have to have the capacity to pay it back. that gets lost in the shuffle when you start to push it out like that. thing, wees the same will be back where we were before. >> i think mel watt is one of the most people members of the house, well respected, and the fact that he took this job and left speaks to what it is like to be in the minority in the house. the minority has one big responsibility in the house, which is to make a quorum. a commentd say it is that perhaps he did not see the democrats winning in 2014. >> in the larger sense i am really interested by the fact that there is nobody there in most of th

. >> freddie mac paying back what it goes. >> $7 billion from freddie mac. >> i read "the wall street journal" too. >> sometimes you surprise me, like three times a show. cheer up to the republicans? it is the democrats who said that a sequester would mean the end of the world. unemployment, we would reduce gdp. it andnt ahead and did it is working. i am very cheery. else can you do on this panel but laugh? the president can take credit for some of the improvement because the economy is improving. the answer is growth. this is how you get rid of the deficit, through grow. >> not through government handouts, in other words. >> we do not need to go there. sequestration is hurting some parts of the country. ourselves, on the vulnerable are the ones that are feeling the effect. they cannot pull together a lobby -- >> the answer is growth. the economy is improving, the economy is growing. people get jobs and there is more money in the treasury that will help. >> it is about consumer confidence, too. consumers want to feel good. the president is going out and getting on top of that. republi

i am not suggesting we should not make one on fannie and freddie. i'm simply asking as you will forward to take a look within your own shop now to make sure that we allow fannie and freddie to be credited as they pay back for that payment. if that happens, it's the right thing to do. no. two, it is reality. reality is they pay back almost $130 billion of the money or about to do it. almost $130 billion of the money we have loaned them. they should get credit for at least some of that. it's my understanding that could be done internally at treasury. i would like you to get back to us. if you can, please do it. tell us what action we need to take. similar to the fha, the fha right now is probably about to have to take a draw on treasury. even though they have $30 billion sitting in the banks and no thoughtful person thinks there will have to access taxpayer money, the law requires them to do it because it's below certain percentage of the outstanding members. that's ridiculous. the fha should be allowed to draw when they need the money but should not

there's no question, for example that wall street helped create the financial crisis along with freddie and freddie mac and i've been public with you among others, maria, when boards should be held accountable, but in this case, everybody agrees that our tax code is uncompetitive in its rate, it's counterproductive in its complexity and there's bipartisan agreement on that and yet no one in washington is working on reforming the tack code. instead they're engaging in political theater. they're berating a ceo of one of the world's most important and most valuable companies who has been doing what with a ceo is supposed to do which is take his business to countries where people are taking the strategic choice to lower their tax rate which we should be doing to attract their business. >> when you were ceo of hp you also built up in ireland as well as other countries to take advantage of various incentives. do you see an ethics issue here to balance with the competitive landscape. >> i don't see an ethics issue. i see a pragmatic issue. apple just recently announced as well that they're bui

how would you in a fannie and freddie and what do you think should happen to those two?they should now be abolished. >> some of us did try to stop the sub prime lending. people forget that. the bill with another democrat to start sub prime lending and it was stopped by tom delay who said it was a violation of free market principle. when i first became the chairman, i worked with hank paulson and we put the rules into effect that stopped the bad thing, gave them the power to put it in conservatorship. i think that's pretty good. what i think should happen now is they should be abolished. >> almost everybody who is in the housing market. >> and the way that people are moving, i believe, some republicans and administration is to have available a guarantee that can be purchased by lenders who want to have a 30 year fixed rate mortgage priced to pay for itself. and i think that's the likeliness. they will be replaced by a mechanism. that will guard them against the interest rates. >> before we let you go, a quick question on main street versus wall street. we see the dow jone

liz: freddie and fannie require less, right, frank?e so much less people are wondering if they're reinplating the housings bubble and if that becomes worrisome? >> exactly. what you have got going forward is potential of things just getting worse. if we can keep them, if we keep washington from sticking the stick in the spokes on the bicycle, seems to be running so well right now. all the numbers, everything is dplor russ, right? look at any report. anything is great. record profits. even zillow is making record profits. if we keep the stick out of the spokes with the qualified mortgage they start to listen to all the associations in an uproar, about giving them clear direction on it and, potentially pulling back on some things. you have the national association of federal credit unions, saying goodness if qm goes the way it is right now, 40% of our members will do qm safe harbor loans. that will reduce lending quite a bit. liz: you take half the buyers out of the market we'll run into a problem. when you consider the fact that you hav

let's go to freddie in new york.aller: hi, jim, a beautiful spring day boo-yah to you. >> done your way. water up? >> caller: okay. i want to see if i'm diversified enough and in the right sectors. my ownings are offed for, cms energy. >> oh. >> caller: adobe, united health group, uhc and lockheed martin. >> wow that is a good portfolio. that is marilyn from lockheed martin. come on the show. i know you are having a great job. okay, so lougheed martin, the defense company, united health not as good as humana. fofrd, the stocks can go to 15. and i think gm, by the way, can break off. cmf energies is my absolute facilities. adobe is a defense company and automotive company and that, freddie, has got gainf. i like get let's go to john in california, please. john. >> caller: hey, jim, boo-yah, from the sacramento valley. >> sacramento valley, i parked my car and lived. 10th and p. is it still a nice neighborhood? >> caller: okay. how about cbs, isis pharmaceutical, qualcomm and nike. >> wow, these are some of the more cr

one is the insurance premiums that fannie and freddie charge need to continue going up.gress needs to lower their loan limits. right now, they can ensure loans in certain areas that are over $600,000. the average house in the united states sells for about $180,000. and finally, they should be restricted to making very, very high quality loans, which by and large they're doing today. but the push will be coming in the next few years, i would expect, for them to start loosening their underwriting standards. there are calls today for that to happen. and if those three things were to take place in the private sector, bringing in private capital, would be able to push that 85% to 90% government involvement down further to, perhaps, 60%, 50%, eventually bring it down to where it needs to be, which is 25% to 30%. >> edward, good to speak to you this morning. thanks very much indeed for joining us. >> thank you. >>> still to come, some companies made in the usa isn't just a marketing tag line. it's also good business sense. we look at which american base res generating more reve

freddie in new york? hi, freddie. >> caller: jim, a beautiful spring boo-yah to you. >> what's up? to see if i'm diversified enough and in the right sectors. my holdings are ford, cms energy, cms. adobe, adbe. and united health group, uhc. and lockheed martin, lnt. >> wow. that is a really good portfolio. [ buzzer ] lockheed martin, come on the show, you know i'm begging you. you're doing a great job. not as good as humana, but still pretty good. ford is a breakout. i think the stock can go to 15%. i think gm can break up to the upside. cms energy is my favorite utility. adobe an okay company. tech, health care, automotive company, that, freddie, has got game. i like that. let's go to john in california, please. john in. >> caller: hey, jim, boo-yah from sacramento valley. >> sacramento, tenth and "p" where i parked my car and lived. >> it was a nice neighborhood. still okay? >> caller: how about isis pharmaceutical, qualcomm, allison transmission, and nike? >> wow, man, these are some of the more creative portfolios out there. nike, the stock is breaking out and absolutely has a t

start where there was law on the books for twenty years that so the taxpayer did not stand behind freddie and fannie that didn't quite work out that way either so let's start with two issues one is this sort of dance around taxpayer money or not and so yes title two sets a path where the rest of the industry can bail out institutions creditors now yes that's slightly better than having the taxpayer but i'm fundamentally offended by thinking that prudently run institutions should have to pay for the mistakes of imprudent institutions and of course if you look at the marketplace again we have there's no ironclad way to say fail is there or not but if you look at the funding cost it's pretty clear to me that the largest institutions have some level funding advantage over other institutions which is how you would really determine to be fields that are not i do want to mention something as well that if you look at funding cost create two thousand and eight those institutions did not have that advantage too big to fail came out of the bailouts and i think the problem with lehman was not that we

know i don't think it'll be ever used because we had an orderly liquidation system for fannie and freddie we didn't use it i spent tens of hours working on writing on capitol hill congressman frank worked with us on it we had a system in place in the summer of two thousand and eight that would have resolved without a dime of loss of the taxpayer did we choose to use it no you're not think. we'll hear more from mark and mark or i say mark to mark on the better bill after the break also coming up next to our bob and i will get to the daily bill will explore the fine line between bank areas. stay with us. wealthy british scientists. tirelessly. market. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune into cars a report. we speak your language or not a day of. music programs and documentaries and spanish more. breaking news a little tonnage of angles stories. spanish . visit i. download the official publication here choose your language stream quality and enjoy your favorite. if you're away from your te

know i don't think it'll be ever used because we had an orderly liquidation system for fannie and freddie we didn't use it i spent tens of hours working on writing on capitol hill congressman frank worked with us on it we had a system in place in the summer of two thousand and eight that would have resolved about a dime of loss of the taxpayer did we choose to use it no you're not to think. we'll hear more from mark and mark or i say mark mark on the better bill after the break also coming up next the arts. and i will get to the daily bill will explore the fine line between banker is. stay with us. they all see themselves dying swans in their dreams. but only one in the cells and will ever make it to the top. they're ready to give their lives for the chance to die on stage if only once. not even broken wings can deter them. for generations at the madrid ski theatre ballet sweat and tears on a. i am from. the lord that i. and every day she says mother body in the body in a syria or saudia in arabic. and brought him into the war beginning far from the skill of. the syrian woman is. trying.

you know i don't get to be ever used because we had an orderly liquidation system for fannie and freddie we didn't use it i spent tens of hours working on writing on capitol hill congressman frank worked with us on it we had a system in place in the summer of two thousand and eight that would have resolved about a dime of loss of the taxpayer did we choose to use it no you're not. we'll hear more from mark and mark or i say mark mark on the bill after the break also coming up next the arts. and i will get to the daily bill will explore the fine line between bank areas. stay with us. wealthy british style. market. has come to. find out what's really happening to the global economy with mike's concert for a no holds barred look at the global financial headlines kaiser report. to me speak your language. programs in documentaries in arabic in school here on. reporting from the we'll talk sports fifty yard p. interviews intriguing stories for you to. see in troy. visit. download the official location to your cell phone language stream quality and enjoy your favorites. if you're away from your

do i don't think it will be ever used because we had an orderly liquidation system for fannie and freddie we didn't use it i spent tens of hours working on writing on capitol hill congressman frank worked with us on it we had a system in place in the summer of two thousand and eight that would have resolved about a dime of loss of the taxpayer did we choose to use it no you're not. we'll hear more from mark and mark are marked on the bill after the break also coming up next to our guests bob and i will get to the daily bill will explore the fine line between bank areas. stay with us. well see british science. is no time to write for. market why not. find out what's really happening to the global economy with mike stronger the no holds barred look at the global financial headlines tune into a report on. senator sherrod brown and david vitter recently introduced a bill that would impose higher capital acquirement on the largest of bangs i asked mark levine if he believes this bill would mitigate systemic risk. absolutely absolutely frankly this is what doug frank attempted to do it was goin

but i spoke to her brother freddy and he says she is still in the hospital.tails of that conversation a little bit later. but there's another investigation that's happening right now. the 911 dispatcher who spoke with amanda berry is under review. there was a lot of criticism about how that call was handled. what can you tell us about that? >> right, there has been. the moment i got up here in cleveland, one of the first things people said, can you believe that 911 operator? now there is an official investigation that is under way. the city has made that known. we can show you, actually, the statement that was put out. there are a number of things that the city is reviewing and saying that there could be concerns about how that particular call was handled. most especially, one of the real concerns, the city points out, is that they -- the way it ended, you know, it should not have ended as abruptly as it did. the operator shouldn't have let the person off the line. take a listen to that call. >> okay, talk to police when they get there. >> okay. hello? >> yea

on how the thirty year fixed rate mortgage seems to be the standard because that's what fannie and freddie require. by is that even realistic because people don't only hold on to write it and it is so rare that you will see anybody hold on to a thirty year note to it matures that's really what banks don't want to take an interest rate risk by holding a thirty year note on their books so the vehicle that's available is a sell that off to fannie mae or freddie mac. thus they inherit all the risk banks are more more apt to look at something lesser amortization under fifteen years to hold as a portfolio loan it's much more you'll see those more for folks who have more. to put down as a down payment someone's come to the table with forty percent of what they can put down. and are looking to buy a jumbo boarded something over that six fifty seven hundred thousand dollars more than a bank will look at that it was normally done with a lot less risk deals with banks working so you know for for the average homeowner go look for something that's going to impact their cash flow each month you know the

thirty year note on their books so the vehicle that's available is a sell that off to fannie mae or freddie mac. thus they inherit all the risk banks are more more apt to look at something of a lesser amortization under fifteen years to hold as a portfolio loan it's much more you'll see those more for folks who have more to put down as a down payment so let's come to the table with forty percent that they can put down . and are looking to buy a jumbo boarded something over that six fifty seven hundred thousand dollars more than a bank will look at that and those are normally done with. lesser risk deals that banks will look at so you know for for the average homeowner they look for something that's going to impact their cash flow each month you know they're looking at ok how much house can we afford and not really afford ability and not take up all of our available cash so a thirty year note given that opportunity right so we're saying a lot of new friends here are now saying thanks so much for talking to us about this this is mike richards and i can tell you all that's happened. jamie now