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

fannie mae and freddie mac mac got off. first thing we got under being chairman was to put fannie mae and freddie mac out of business and put them into receivership. we shut down the problem and stopped the bleeding. what you do going forward is still there. you are too pessimistic about fannie mae and freddie mac. once we stopped it, there is the value of the housing inventory. -- i didhat will not not think it would cost as much as you predicted in 2003. >> putting him out of business was a good idea. >> it now will be a breakeven. >> so far. >> it looks that way. had we done it we would have been better off. in the that we did financial reform bill whether you approve of it or not was punishing them for fannie mae and freddie mac. someone would have to tell me specifically what we did. we made it illegal to give bad mortgages. that's the only prohibition in the bill. there were other things that we said to increase your margins and capital. i think it was market oriented. >> you also saw wasn't institutions but the leade

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

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

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

. >> the other thing that has not happened is any reform of fannie mae and freddie mac, the big mortgage giants that combined private profit with public risk. those things were put into conservatorship and they're still in existence and now they're able to make money again, which gives congress the ability to spend that money and less impetus to reform. own process that those will be changed? >> no, this gets to the risk james was talking about having labelled all of these banks as systemically having to back them so that they cannot fail. fannie and freddie were at the heart of this crisis. they were political creatures and part of the reason we have this is because government exerted pressure on them to make loans to people who are not qualified to pay them back. when the crisis hit, it was an excellent opportunity to put them into receivership. instead, we put them into conservative where they are coming back to haunt the market. while the white house said they want to wind these energies down, even floefls they have, they've replaced them with other goeventties that would be involved

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

>> fannie mae and freddie mac web back into conservatorship in 2008 was 1/3 this serious delinquencyas been a ticking time bomb but they put reverse mortgages on the government insurance goal. i testified at that hearing douglas it will blow up in here we are with $5 billion for reverse mortgage losses. gerri: one of the confounding things as the government cannot even predict how much money they have to backstop the fha. >> right. they're very reticent about producing books for the fha so it was like a trade secret. we do know they have staggering delinquency rates right there with seven the shallow end with the low down payment borrowers so there has to be a high credit risk. >> why is the main or freddie mac not as bad? >> fha is a sub provender. ones that went away it shows up as fha. >> so naturally it is in the worst position. don't blame senior citizens. >> it is the factory try to bail everybody out but also the commissioner said this is just the accounting glitch we really didn't want that they make us take it. as of august there are 47 billion net capital position. they are

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

had to start over, we got a call from the mortgage company saying that there was a fannie mae or freddie mac clone available. and we could take this long and get caught up on a payment and then from there added on to a low for a house. we thought about it. reese said, this is wrong. this is part of the bailout from 2008 which we have been opposed to and decided we could not take that. and so just a few weeks later there was a rant on cnbc talk about the stimulus that was going through congress in 2009 and how long it was. our founding fathers would be turning over in their graves. and what he said this book to me so much of the people standing behind him, who here was to pay for your neighbor's home that has more bathrooms en un they cannot themselves afforded? and is struck me because my husband and i did not want our neighbors to pay for our home. we turned down that government money and start over our own. religiously kinnear neighbors bathrooms and a set of them painful hours. and so we got involved. we started at the party. got on a conference call. a week later we were one of 48 to par

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

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

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

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

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

on its way out, but he's essentially been overseeing now government entities that fannie mae and freddie mac. they were bailed out to the town of trillions of dollars. they are now government entities that guarantee more than 80% of mortgages that issued. yet even though they are owned by the government, they have been the most aggressive opponent of principal reduction, of any foreclosure prevention program and particularly this policy being proposed in richmond california. today, it is unsurprising that banks would oppose this because it was certainly be taken into their paychecks. what is particularly disappointing to me is the federal government has once again taken the side of the banks and once again using his legal power and its pulling power of the federal government to effectively say they will boycott a red line for sue and a local government that is trying to take care of his own ends. once again when they talk about control from faraway versus localized control, collective control, community control, you can see that there is a tension in right at the mayor of richmond and other

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

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

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

according to freddie mac, they're almost the highest. they average 14.4%. >>> a disappointing back-to-school season for retailers. the international council of shopping centers reports that sales rose only 3.7% last month. that's a slight increase from july but well below last august's gain of 6%. >>> and google is asking a federal judge to dismiss a class action lawsuit. in a california court thursday, lawyers said googles practice of scanning the content of people's g-mail account is legal but the plaintiffs say it violates california's privacy laws and federal wiretapping statutes. g-mail says it scans e-mails in orders to sell ads. >> if you want access, you have to give up a little bit of privacy lately. >>> coming up on the "morning news," the use of electronic cigarettes soars among teenagers. >>> and an online confession. an ohio manner stars in a powerful video that will almost certainly put him in jail in a drunk driving case. this is the "cbs morning news." except when it's too cold. like the last three weekends. asthma doesn'

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

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

. >> fannie mae and freddie mac like to get out of the business of providing loans to the government. when the financial collapse hit it hit hard. the loan market will change to all three mortgages last quarter work done by freddie mac and fretting make it if you want a long i will get it today. standards are about to change too. still, i would consider a long sooner not later. should >> reporter: hello kitty the year? peter beer? >> hello kitty is used for eight year-old seoul to promote a in hello kitty be here? hello kitty beer? this would neer fly in us! never. >> jacqueline: tonight the fog will be returning. it will be a little bit more for our inland valleys in into the eighties away from the coastline for your friday morning even more with less falk expected and by saturday temperatures will remain about the same. cooler weather as we head into sunday with storms approaching the coast line with sea breeze winds and more clout coverage and cooler temperatures as a result of the next few days warmer weather but not too hot. >> pam: endurance swimmer diana nyad -- now treading in

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

according to freddie mac. coming up at 5:00 p.m.tile countries. we'll talk to fat burger ceo who is local partner in kenya who was on his way to the mall the day of the shooting. they were considering the mall as a new location. what do you need to know about doing business in dangerous places? that is latest from the fox business network, giving you the power to prosper. ashley: many emerging markets have taken a beating as fed tapering speculation has boosted u.s. treasury yields and sparked an exodus of investors looking for higher returns. so how can they get their economic mojo back? our next guest has some ideas. joining us now, former world bank president bob zoellick, now at the petersen institute. bob, thanks so much for joining us. there was a time when we couldn't literally go through a business newscast without talking about the "bric" countries, brazil, russia, india, china. did that hype lead to a little bit of overconfidence do you think? >> well i think it did. i think, you know, you really have to differentiate amon

freddie mac says the average 30 year fixed rate mortgage is now 4.57%. a year ago, it was only 3.55%. that means if you buy a $200,000 home now, your monthly payment is $94 higher than if you had bought a year ago. the ten year yield hitting 3%, the highest level in two years, also impacts stock portfolios in significant ways, because that higher interest rate provides competition to other kinds of investments that pay dividends or interest. among all the controversy about how much the u.s. borrows, the u.s. government's debt is concerned one of the safetiest in the world. in other words, you're extremely likely to be paid back and because the u.s. government is paying a higher, more competitive interest rate, many stocks that pay dividends have fallen or not advanced as much because what they pay isn't as competitive. also, corporate debt that pays a high interest rate, what's known as high yield or junk bonds, those have fallen in value as well because they're seen as less competitive. the good news about the ten year yield hitting 3% is that many beli