gerri: as taxpayers, we bailed out fannie mae and freddie mac. shouldn't we be the first to reap the rewards? >> well, and, same case with aig, bank of america. of course the taxpayer should reap the rewards and taxpayers will make more money from fannie mae and freddie mac than from aig, than from bank of america and from goldman sachs. the taxpayers have been paid back and now they will get a big profit. after that happens, it is time for the shareholders, their chance to recover what's been lost. that's is the way it works in america. gerri: well you know in truth, fannie mae and freddie mac stock is up and up dramatically. if you head the stock anytime at all you're doing pretty well. and what is interesting about the whole story that the government kind of changed the rules last year. originally they required some of the monies to go to the federal government. now it is all profits have to go to the federal government. do you think there's any chance at all, bruce, that at some point in the future public interests, the federal of fannie mae

fannie mae and freddie mac are private companies. they are no different than coca-cola.e talking about the debate around privitize, the last time i looked on the bloomberg screen, i was on the list of shareholders who owned a piece of fannie mae and freddie mac. it does not make sense to me. we own them. i do not see anyone else who owns them. pay back the taxpayers, time to move forward. my note to the directors is to remind them of who they were. >> exactly, this is the issue, the directors of fannie and freddie have a lot of weight on them from washington. what will be the catalyst to get washington to move? >> i look at it as if i was a director. i have a fiduciary responsibility to all shareholders. i do not listen to what someone in washington tells me to do. i listen to the owners of the company that i represent. and >> chris, let me ask you, a federal judge recently gave you the right to discovery in a lawsuit to find out if there were changes made. what do you hope to find? what do you think was hidden that you could not find before? >> the last decision made on

because i think there is lot invested in having fannie mae and freddie mac stay. there are at love critics who say these two entities must go, have to go to have a safe and secure housing market but do you think you can fight back against that? >> yes i think we can. i think the majority of the momentum is against sticking with the current system because as i said, it puts the taxpayer in a first loss position. frankly it stifles private sector capital formation. i think we have a strong bipartisan coalition. i believe there will be very strong support from the private sector and from those who are taxpayer advocates and i believe that we have a good chance of passing this legislation. gerri: senator crapo, thanks for coming on the show tonight. great to see you and i hope you come back as you work on the legislation. >> we'll do it. gerri: thanks so much. >> thank you. gerri: we've got more and to come this hour including why lady gaga's charity is under fire today and how you can avoid donating to the wrong cause. >>> target also feeling the heat. again this tim

last time i looked on the , all 170,000een ohms fannie mae and freddie mac.ke sense to me, that debate. we own them. i do not see anyone else who owns them. time to move forward. note to directors, i am trying to remind them who they were. , theis is the issue directors have a lot of weight on them from washington. what will be the catalyst to get washington to move? >> i look at it as if i were a director. i have been a director on companies. i have a fiduciary responsibility to all shareholders. i do not listen to what someone in washington tells me to do. i listen to the owners of the company who i represent. >> you recently one the federal judge right to discovery to find out changes made in the governance. what do you hope to find? what is hidden that you could not find before? may -- may decision december 2012 when the sun was shining it was obvious the companies would make their a good money. there was a deal between one government agency and another and we do not understand this. it was not necessary and does not make any sense. we are trying to under

first democrat michael capuano who discusses the proposal to eliminate fannie mae and freddie mac. this is just over an hour. as for joining us on the "washington journal" as representative michael capuano democrat from massachusetts and he serves on the financial services committee where he serves as the ranking member of the housing and insurance committee. we will get to those issues in just a minute. congressman i don't know if you heard our first segment this morning on the "washington journal" talking about what eric holder had to say about reducing prison time for drug crimes. do you have any immediate thoughts on that issue? >> guest: i liked like the concept. i've never been a supporter of mandatory minimums. i think we should have guidelines that require clear and unequivocal explanation as to why they would need --

. >> americans making money off the mortgage company of fred -- fannie mae and freddie mac.hey could send the government one hundred 80 million dollars over the next decade. fannie mae and freddie mac received the government bailout during the great recession, you no doubt recall. by the end of march, they will 203 billion paid dollars in dividends to the treasury. rudin is here with us. not a bad day. sun came out, are temperatures went up. >> good. >> that will keep the warming trend for the next two days. and then, oh, a 30-degree drop. we are ready for spring to arrive and stay with us. looking outside at the courthouse in clarendon and the district. the skies are clear. we will see more clouds through the overnight hours. 61 degrees at reagan national airport. winds ticking up out of the south-southwest. the day temperature for now at 61. our average 54. in 2006.d, 78 setback now we are at 57, now 58 degrees. it is live. leesburg at 60. our final stop takes us to silver spring, now at 58 degrees. a cool start this morning, only in the upper 30's. temperatures have warme

my discussion with the board of fannie mae and freddie mac, chatting with me, is about the future.ent had every right to change their relationship. government does not have the right to alter past agreements from the 1970's, 1980's, 1990's and so on. time for the board to represent their own. that is the primary reason to have directors. we have directors capable of doing it and they are paid very well to represent the owners. it is time to separate fact and fiction. >> there are 19 other lawsuits challenging the government bailout of fannie mae and freddie mac. hollywood's biggest night, from celebrity tweets to speeches, we have it covered tonight in oscars. ♪ flex it is 26 minutes after the hour. we are looking at conditions deteriorating throughout the session. unrest ino you have the ukraine, chinese manufacturing dropping to its lowest level in months. retailer shares of the actually recovering after the company said that jcpenney will not report monthly sales anytime soon. the spokesperson said the retailer would try to provide updates throughout the rest of the year. more "

chief economist at trulia. >> thanks, ali. >> i've been asking you, will phasing out fannie mae and freddie macake it harder to get a mortgage? some say yes. and the the vucanater said yes. everyone banks uses fanny and freddie as reference. it's crunch time for obamacare with just weeks to go with the sign up deadline. the obama administration said million americans sign up in february to bring the total the 4.2 million well short of the administration's target of 6 to 7 million. the russia of young americans to sign up right at the deadline at the end of this month. the whole system depends on these last-minute millennials. it's supposed to offset the cost of older and presumably sicker people. the number of older americans signed up outnumber the younger by a couple of thousand and the clock is ticking. >>> when faced with a safety debts. we tell what you the company should have done when they knew about. "real money" continues. keep it here. consider this. the news of the day plus so much more. answers to the questions no one else will ask. >> it seems like they can't agree to anything in w

committee is agreeing on legislation that will wind down the government's roll in fannie mae and freddie mac. freddie and fannie own or back 60% of all u.s. home loans.the government spent $187 billion dollars bailing out the agencies during the housing crisis.the senate committee has a bi-partisan bill that calls for private investors to take the first 10% of any mortage loses before the government steps in with emergency money. shares of fannie mae and freddie mac. each fell more than 25% on the news... as many corporate executives watch pay skyrocket, one ceo is taking a hit. ebay executive john donahoe's pay for 20-13 fell 53% to 13 million dollars. in a statement, ebay says the company's financial performance "did not fully meet expectations." ebay's stock rose 8% in 20-13. the e-tailer is currently the target of activist investor carl icahn, who wants to split ebay and paypal into two companies. the terms of a new lawsuit brought against carnival cruise lines are becoming clearer. a group of passengers on board the ill-fated triumph ship that was stranded for 5 days in the gulf of mexi

what they're talking about replacing fannie mae and freddie mac which are now the credit gurantors, thecurities with, drum roll, a new gainer tore with new -- gurantor with new issuer. to get government out of housing they want to create three new entities a, a regulator, issuer, gurantor, you name it. and instead of it being implicit guaranty we have explicit guaranty. so on the surface doesn't look like we've done anything but get deep near housing. david: let's not get into all of the weeds because there are some weeds here but the new rules would do one thing that sound pretty good to me. private insurers would take losses, if there was another downturn in the market and a lot of these mortgages went sour. three out of five of new mortgages by the way are guaranteed by the taxpayer through fannie and freddie. private insurancers would have to take losses before another taxpayer bailout kicked in. that sounds good to me. >> it makes tons much sense, dave, but you're totally spot on but doesn't need whole new legislation. you don't need to hand grenade the housing finance system and j

fannie mae fell 32% to $3.95 and freddie mac was down about 27% to $4.04. and shares of plug power tumbling after sit ron research says the stock is worth about 50 cents a share. the author of the note analyst andrew luck says there are no profits, no unique technologies and the end of government subsidies looms for the fut cell producer. that sent fuel cell energy, ballard power systems and uqm technologies way down on the trading session. plug power fell to $6.03. >>> a popular yogurtmaker is looking for investors. privately owned greek style yogurt maker chobani is exploring options to raise capital seeking $5 billion. dow dow reports that an initial public of offering is not imminent but the company is considering selling a stake to a private investor or entering into a strategy partnership. >>> grocery items are expected to see sizeable price hikes that year that may change what americans are buying and eating. sarah eisen has the story. >> reporter: food inflation is coming. a new report from the united nations showing food prices jumped last month by

adam: we still got charlie gas here with shares of freddie mac and fan fay.ould be a bipartisan agreement to lead to shutdown of two mortgage giants. and as promised charlie has dick bove. >> one great thing about the cnbc story herbalife five minutes early and mainly a stock you like, still like, two stocks, fannie mae and freddie mac, the former gses. are they still gses, these things? >> yeah, they absolutely are and they're still functioning exactly as they functioned in the 1980s and 1990s. the first thing should be understood who owns them. the taxpayer owns these two companies. the taxpayer has invested, i will put the two numbers together, taxpayers invested $190 billion into preferred shares in those companies and those preferred shares should be paying $19 billion a year in dividend to the taxpayer. and this bill would wipe out that investment. number two, the taxpayer has through warrants, 8.2 billion shares of stock in these two companies. i estimate that the value of that stock is 155 billion. what mr. johnson and senator johnson and senator crap

and use fannie mae and freddie mac to do it. to me this is where the money has been made already. the opportunity there was. the hedge fund community recognized it. they took advantage of it. this is a name where you ring the register not yahoo!. >> they think there's a heck of a lot more money to be made if congress would only listen. >> what are the odds of congress kowtowing to the demands of hedge funds in the climate we're in right now politically? how does anyone think that's possible? >> i actually agree with you on something. >> smoke them if you got them. one bank thinks so. goldman sachs upgrading a buy. our trader thinks the stock will go up in flames. lus one of these guys are leading the compete ocean for trading of the year and another trader is bailing on a popular social media stock. we'll get the x's and o's when half time comes back. with all the opinions about stocks out there how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate

s biggest employers fannie mae and freddie mac are in doubt. shares of both companies lost a third of their valley yesterday. they guarantee about 60% of existing mortgages. in 2008, the company got a $187 billion taxpayer bailout when they neared bankruptcy. together they employ about 9,000 people around the washington area. >>> a special ceremony this month recognizes americans who have served with honor in their own community. we'll have more on that coming up. >> plus, here's how the early morning drive looked in chicago. and while we won't be getting their snow, thank goodness for that, the weather system is roaring towards us and it won't be pretty. howard this. >> andrea, that's right. that system is going to bring us a threat for damaging wind gusts later today and tonight. maybe we'll clear up some of the air. the allergy index has come in for this wednesday. if you're starting to sniffle, the throat's itchy, could be the tree pollen. that is in the high category. mold spores are low. back with doppler 151 years ago this month. retired

say goodbye to fannie mae and freddie mac. maybe. the works. >> the two of you were doing such a terrific sales job. charles: imagine that. holding back a tyrant. creating jobs. >> the more we trade with them, the more they will see that the western system is superior to theirs. charles: we have a bill that is supported by both sides of the aisle. let me just walk you through what is going on here. fannie mae, freddie mac, they went bankrupt. the united states bailed them out. fannie mae is about $120 billion. in the last eight quarters, they have paid that money back. a gigantic moneymaking machine. now, the government may shaft individual shareholders. >> congress could probably get away with whatever it wants. the constitutional and moral and free-market angle is just a monster with another name. fannie and freddie will cease to exist and some other government sponsored enterprise will come into existence. it does not lend money. it buys mortgages. usually lousy ones and packages them and sells them to investors. the federal gover

back of america, meanwhile, is going to pay $9.3 the billion to fannie mae .freddie mac to settle claimsld them bad mortgage bonds during the housing bubble. this is the tenth settlement the agency has reached since filing 18 lawsuits against financial firms in 2011. bank of america says the settlement will reduce first quarter incomes by $2.7 billion. bank of america's kevin liewis has reached a settlement over the merrill lynch deal in 2008. the settlement with the new york attorney general's office prevents lewis from serving as director or officer of a public company for three years. lewis was initially seen as a white knight for merrill, but by the end of the deal, bank of america needed government help to keep frit failing. now, lululemon is set to release its first results under the new law. before the u.s. opening bell. he took over the helms from christine day after she set down just three months after the see-through yoga wear debacle. the retailer is expected to report earnings online with its announcement that it released in january for the fourth quarter. joining us with her

. >> bank of america has agreed to pay fanny may and freddy mac for selling them faulty mortgages, many including risky subprime loans, defaulting. leading regulators to seize control of them during the crisis. >> female military veterans are you're in "the stream." narendra modi, is poised to become india's news prime minister. what would this mean to the world's largest democracy ? lisa fletcher is way on

all those hedge fund managers who bought shares of fannie mae and freddie mac look like geniuses. doubled in 2.5 months. they are not so genius anymore. two key senators unveiled their plan to kill fannie and freddie, a proposal that appears to have the backing of the white house. they envision private capital stepping in to fill the gap with the government only on the hook for catastrophic losses. their plan would charge fees in exchange for that from a guarantee, which would be used for affordable housing programs. most borrowers would be required to make down payment of at least five main percent -- 5%. >> if it becomes law, it wipeout the equity holders, which includes a bill ackman's purging rshing -- pe square. i want to talk to the senior analyst of bloomberg government. neela, what is bill ackman thinking today? what could all of this mean? >> i don't know if i did say that on television, stephanie. the reality is, what he and other investors must think is that congress is not going to do anything substantive on gse reform this year or next year or for a long time. the issu

been paid or whether the taxpayer that has filled out fannie mae and freddie mac to the tune of 180the issue will be issued in court. charles: we are running out of time here. 3.5% down. it make it more complicated than it is now. you answered some great questions. we know your busy. thank you. twitter getting ready to roll out a new process this week. we had an ipo to talk to you about. up big time. up 16%. pretty nice debut. the question in the irs scandal today remains. why is it taking so long for the irs to hand them over. take a listen to this. >> i ordered all my e-mails to be put on a thumb drive a couple days ago. it took less than an hour. when the commissioner is talking about it taking years, he is talking about the difference between one hour of an it worker's time and the time it takes for them to redact away what they are uncomfortable giving to us. charles: how long would it take to hand over these e-mails? why are they protecting her? >> it would take hours, not years. what is she hiding and to issue protecting? there is something that we are not supposed to know. i

that were warning about what might happen if the government sponsored enterprises, fannie mae and freddie mac, ever got in a situation where they didn't have enough capital and they really needed to come to the federal government for a bailout. they're positioned throughout this entire time is that will never happen. and part of what happened with the financial crisis in 2008 and beyond, the federal government actually had to take over fannie mae and freddie mac at the cost of two or $300 billion to the federal budget. this was clearly a case where i think cbo had it right, not that this would inevitably happen, but that the particular things that the congress should do in legislation in order to protect the federal government against the potential of something like this would happen. >> philip joyce, the last couple of years the federal budget process was broken down in congress. we have and pass the appropriations which is required by law. a lot of continuing resolutions. what is cbo's role, if any, and that'll process? >> i think their role is just to support the process. one thing that i

that's why i'm saying that the losses sustained in tesla, fannie mae, freddie mac, ballard power, fuel cell energy, and club power, while terrible for those who own them, and i feel for you, might be the best news this market could possibly get right now. when fever behavior goes away and we return to making money the slow, methodical way, the market is a safer, more rational place. that's what's needed to go higher, ultimately, which is why, despite the downdraft in the averages and the crushing of the speculators, the bottom line is the market is a healthier place after today, even as almost everyone who owns stock lost money by the end of the session. can i go to roland in massachusetts, please? roland? >> caller: hey, jim. boo-yah from boston. >> good to have you on the show, there, sir. what's up? >> caller: trq. i was looking for a spec stock, obviously, and i was wondering what you thought about that. and if you don't like it, something else. >> well, all right. i got to just own this, i do not know trq. i just do not know turquoise hill. i've got to do more work on it. i'm not

shares of fannie mae and freddie mac continued a dramatic slide lower yesterday as the senate banking committee discusses dividing the two names from the mortgage market altogether. the proposal -- out this week -- still requires approval, but it's looking more likely the nation's mortgage system, is shifting to at least partial private control. the government bailed out fannie and freddie during the housing crisis. despite controversy--.two firms are taking a shot at creating high-frequency trading for bitcoins. the wall street journal reports perseus telecom and atlas ats launched the bitcoin exchange wednesday. the digital currency platform is available in new york, hong kong and singapore.mt gox - the world's largest bitcoin exchange based in tokyo received bankruptcy protection this week after it suddenly collapsed. a craving for tech ipos is fueling high hopes for the upcoming candy crush ipo. dublin based "king" , the maker of the candy crush saga... says the ipo could be worth as much as 7.6 billion dollars.it expects to sell 22 million shares priced between 21 and 24 dollars.

>>the returns are pretty similar to fannie mae or freddie mac agency bonds so they're not bad. they have generally been a little bit better than treasury bonds. >>are the bonds growing in popularity? are they going mainstream? >>yeah, they definitely are growing. as you talked about in 2008that's kind of when the market started. 2009 was a decent year and really 2013 was quite a year of growth also. we started to have green corporate bondsthat was bank of america. more recently, we've started to have some asset backed security green bonds also. >>what do you think the future holds? >>we're very hopeful that the market will continue to grow and there will be more corporate green bonds. it will be exciting to have some of the things that have a little bit more yield to them. so hopefully the asset backed market can continue to grow also. >>is there any downside other than it's a slow growth? >>we don't think that there's a lot of downside. at this point there hasn't been a lot of risky things in the green bond market. most of the things have been relatively safe. >>thanks for com

freddie mac andf fannie mae, lawmakers say a draft of legislation is coming soon. [ buzzer [. >> thanks for spending your saturday smart with "your money." have a great weekend, everyone. "cnn newm"

. >> senate lawmakers released their draft for fannie mae and dre freddie mac. they would be replaced by the federal mortgage insurance corporation. it would provide homeowners assistance only after private creditors take the first 10% loss. this new added entity would be financed with fees on lenders who want the government backstop. >>> and finally, the official start of spring is this thursday, but winter is not done yet. a storm blanketed the mid atlantic region today, dumping several inches of snow in the washington dc area forcing federal offices to close while ski resorts have benefitted from the long, hash winter, the opposite is true for many golf courses. dominic chu is looking how the golf industry is taking a swing at spring. >> reporter: the harsh winter has taken a toll on the game of golf. according to the national golf foundation, golf courses across the country lose an estimated $50 million for each day that they remain closed for things like weather. that's a real impact on a lot of local economies, the golfing industries is looking to fight ba

senate is opposing to wind down freddie mae and fannie mac -- freddie mac and fannie mae. futures jumped to an all-time high today as surging dairy exports exceed desire for u.s. consumers. 3000ouncil almost 106 to tons of milk powder cheese and butter fat were shipped in january. those are the top headlines. >> thank you very much. ent a gent is a service with a sixpack. it allows you to select agent demand i can meet your particular needs. how does it work? cristinawe have alesci. he tried it last weekend. you join me now. into fivede that men different categories like teachers, entertainers. what a good-looking guy to teach you karate or a handyman to put together your yoga furniture or what about a date for a wedding? for me it was the threat of not having my act together for a friday night dinner party after a very hectic week here at i logged into rent a gent for help. i've found a few dozen guys of a bright get help. there was the wolf of wall street who can bartend a party. there was a robber covet the teacher. then there's eric of the actor who write poetry. they

bank of america will pay $9.3 billion dollar to settlement with fannie mae and freddie mac over mortgage losses and stock tumble on worries about russia as well as an options short play predicting a large down move in the s&p by mid may. stocks sold off along with gold as oil rose above $100. let's say good morning to todd horwitz of average joe options, hello! >>what's up angie. >> so tell me what happened to king digital and candy crush getting crushed in the market yesterday? >>we see these ipo's and you look at the whole marketthey get so excited because everybody's trying to chase a place to make a quick buck. candy crush is already crushed because it was overpriced to begin with. unless they can come out with another game to back it right up, the stock is probably going to head a lot lower.i don't hold any hope for king digital. >>what do you think about gdp numbers coming out today? >>i think when you look at the numbers, they're so artificially inflated and driven right now that whatever number they come out with it will really depend on what street expects. but based on the tape

freddie mac andf fannie mae, lawmakers say a draft of legislation is coming soon. [ buzzer [. >> thanks for spending your saturday smart with "your money." have a great weekend, everyone. "cnn newsroom" starts right now. "cnn newsroom" starts right now. snooze -- captions by vitac -- www.vitac.com >>> hello, everyone. i'm fredricka whitfield. wack to the cnn are in maria. brand new information about the events leading up to the disappearance of flight 370. here's what we know right now. malaysia's prime minister says the cockpit's signoff to ground control which was "all right. good night." was said after the plane's communication system was disabled. more on what all that could mean straight ahead, and malaysia's prime minister also says the evidence points to the likelihood that someone inside the plane deliberately took the plane off course, and the investigation will now focus on the crew and passengers. this is video of police leaving the home of the plane's copilot. the pilot's home was also searched. u.s. authorities say they continue to review the backgrounds of the crew and the

also today, freddie mac reporting that mortgage rates ticked a little bit higher last week, with 30-year fixed rate loans now going for 4.40%. >>> ty, some good news about economic growth and a fresh read on gross domestic product in the final quarter of last year. shows the economy grew at a pace of 2.6%. .2% better than a reading from just one month ago. and some positive news out of the labor market as well. the number of americans filing new claims for unemployment benefits fell last week to a near four-month low. >>> there could be more trouble ahead for general motors. a federal judge in texas will hear arguments next week on an emergency motion that would force the automaker to tell owners of more than 1 million cars with those faulty ignition switches not to drive the vehicles until the recalled cars are towed away and repaired. gm intends to provide evidence, it says, that the cars are safe to drive. >>> another tough day for citigroup one day after the federal reserve rejected citi's plans to return money to shareholders, via stock buy backs and increased dividend, shares tumbl

i want to find out about fannie mae and freddie mac. about nothing ever said cinematic -- about fannie mae. our of america just sold .ortgage to some odd company they refused to take my son's -- buying this home. it was set up to be taken out of the bank every month. he is a disabled veteran and is tax exempt. he has a fixed interest rate of 7%. even putting taxes on it, i do not know how because he is tax exempt. i have to mail the payments in now. they have to -- you're bank of america mortgage is now owned by a company called penny mac? let's see what congressman capuano has to say. guest: difficult to answer that with limited information. i suggest you contact your member of congress, they can walk you through individual items. especially if your son is 100% disabled, there are special programs depending on how they got disabled and if they are officially 100% disabled. i suggest you contact your member of congress and walk through that with them. host: are homeowners or mortgage holders, are their rights protected? guest: some, not

-- discusses a plan to eliminate fannie mae and freddie mac. and then we talk about the investigation and the irs targeting of political groups and alternatives to the administration's budget. everygton journal is live morning at seven eastern on c-span. you can join the conversation on facebook and twitter. house swore in its new its newest member to represent florida's congressional district. he takes over the seat of billion, who passed away in october. after the swearing-in, the representative spoke briefly on the house floor. >> mr. speaker, i ask unanimous consent that the gentleman from florida be permitted to take the oath of office today. his certificate of election has not arrived, but there is no contest, and no question has been raised with regard to is election. >> objection. representative jolly and the entire floor face me. support and defend the constitution of the united states against all enemies, foreign and domestic, that you please raise your hand. do you solemnly swear you take this without purpose of evasion and that you

litigation with the comp federal regulator over mortgage securities that were sold to fannie mae and freddie mac between 2005 and 2007. but the settlements don't end there. ken lewis, the one-time chief executive at bank of america, will pay $10 million to settle claims by new york state's attorney general that he misled shareholders and the government in order to complete his bank's acquisition of struggling investment firm per imerrill li inform 2009. >>> as we reported yesterday, facebook announced its first ever acquisition of a hardware company, paying $2 billion for the privately held oculus vr, which makes virtual reality goggles. the trouble is, oculus has no real revenue just yet and its technology is largely untested. and it comes a month after facebook paid an astonishing $19 billion for the mobile messaging app whats app. investors will ask questions later. today they sent shares of facebook tumbling 7%. that's their worst day in four months. josh lipton has more on facebook's takeover of oculus and the company's plans to move a virtual world. >> reporter: the social networks are goi

bank had been accused of selling faulty mortgage bonds to fannie mae and freddie mac. bank of america is only 1 of 18 financial institutions involved. >>> and a $12 hamburger at mcdonald's. that is the price of the prime, a new sandwich in switzerland. >> ooh, it's a 6.3-ounce patty with what's called rustic mountain cheese, whatever that is, coleslaw, bacon, arugula and a special sauce, of course. the prime was developed with the help of local cooking show hosts. >> sorry, there are no plans to bring it here. isn't like everything in switzerland cost a fortune? i wonder if it's the same price. >> you bring it here and it's only like $1.50. >> the special sauce puts it over the top and special mountain cheese. >> the mountain cheese. >> i want one anyway. brir it on. >> it does look good. >>> when we come back, call of the gladiators, why a main actor in the show -- abc show "scandal" is under arrest now. >>> plus, on the edge, incredible pictures from the grand canyon where it's just another day at the office. before using her new bank of america credit card, which re

mortgage buyer freddie mac says the average rate for a 30-year fixed loan increased nearly a tenth of a point to 4.37% last week. the average for a 15-year fixed mortgage rose to 3.38%. >>> and yesterday's marijuana job fair in denver drew a big crowd. some applicants arrived five hours early and lines stretched for two blocks. more than a dozen colorado marijuana-related companies attended. marijuana is legal for recreational use in that state. >>> that's your moneywatch report. for the latest business news, go to cbsmoneywatch.com. in new york, i'm jericka duncan. >>> time now is 4:50. no more walking from gate to gate to make connecting flights at sfo. the new door-to-door service for passengers who want to travel in style. >> and when it comes to buying that plane ticket, timing is everything. we are going to tell you about the best time to save money on flights when we come back. >>> a few more clouds around the bay area this morning, temperatures are going to cool off a few degrees, although by the afternoon it should become mostly sunny still about 72 in redwood city. 72 in mou

a senate proposal calls for shutting down fannie mae and freddie mac.o put private lenders on the hook for the first 10% of mortgage losses. for theries have joined search for the missing malaysian plane. tough onorce that plays a track that's going well up course. four days ago. earlier this morning, francine lacqua had a chance to sit down with george soros. he weighed in on everything from politics to the business environment. one market he is watching closely as china. in a television exclusive, he told us why the world passes largest country is causing tremors around the world. >> china has been the mortar of years.for the last ten not as big as the american consumer, which eventually ran out of resources. now, it is also runnin gout. the growth model needs to be changed. it cannot continue like this. andorities are aware dealing with it. the market correction is occuring right now. was maintained by smoke and mirrors. they have corrected it suddenly, exports.a big drop in >> francine, he said china is going into a correction. emerging markets? >>

they will of the day, make money off of fannie mae and freddie mac, their investment.treated? >> the answer will come in court rather than in congress. they have filed suit right now in order to challenge the way the current conservatorship is managed. going tot necessarily dictate the outcome of that. that will be a decision made in the courts. >> what is your sense of the legal case? did the federal government go too far? >> there's a strong argument to rely on aat if they private sector system, should be able to count on that. theresponse to that is, system was clearly moving into conservatorship and the taxpayers did put $180 million into this. i honestly don't know how the court will rule on this, but i do think the answer we get from the court will then guide congress to how we move forward. >> what about common shareholders? they have to be the back of the line. >> yes. right now there is the question of the taxpayers who had come in for $180 billion as this whole issue moved into conservatorship. >> is it going to be tough politics if we see hedge funds making

this is the form of any may and -- fannie mae and freddie mac. e idea is to better protect taxpayers. there was a $190 million -- $190 billion bailout of fannie and freddie. to better protect taxpayers and at the same time provide the roles of the game so private funds and again flow and be the cash behind mortgages. i still think we can do both as taxpayers and provide better access to mortgages, including those who now are shut out, who cannot get a mortgage now because they perhaps had a being or to on the credit report -- ding or two on the credit report. host: we have 15 minutes left to talk about a hamp program. a few tweets, a common, and then a question. karen's comment. what about personal responsibility? buyers must sign under penalty of perjury that they understand the month it a question from joy availablehamp program to non-us citizens? guest: the second one is a really good question. i don't know. if someone is a legal resident -- that is a good question. i don't know. it is a great question. of course, that has been a big issue with

shares of fannie mae and freddie mac both plunging after leaders of the senate banking committee announcedtisan plans to dismantle the companies. the measure would replace them with government bond insurers. the safety net would kick in once primal capital lost at least 10%. the senator said they would introduce the bill in the coming days. againl be on the markets in 30 minutes. ♪ >> this is "lunch money." i'm adam johnson. ,oday's moving pictures now video is the story. two people were killed in explosion in east harlem. a building collapsed and a far of a lime fires ready to an adjoining building. more than 150 firefighters worked to contain the blaze. violence erupted in turkey after a teenage boy was injured by police last year. he died yesterday. the 15-year-old was hit in the head by tear gas cans last summer when police crackdown on a street protest. it triggered protests in cities across turkey. in alaska, after eight days on the trail and more than 1000 crossed thed, they finish line to win the iditarod. a snowstorm with high winds slowed the lead much or. these dogs ran a bliste

mae and freddie mac.aximizing return on the taxpayer bailout of the two companies, according to the draft. assets will be sold and replaced with government bond insurance under this measure. .witter's ceo visit china -- visit china. visiting china's tech sector and will be meeting with officials from the shanghai government. twitter is currently banned in china and the company said it has no plans to change its service to enter the chinese market. malaysiastery over airlines flight 370 is still with us. the press conference and the last hour. some headlines is the pilot did not request to be on the beijing flight. this is important after a lot of speculation over the pilot's potential involvement. former faa deputy director of flight standards and aerospace consultant joins us on the phone. john, it seems like each day we get more answers and absolutely -- or rather more questions and absolutely no answers. this latest statement mean, that the pilot didn't even want to be on this late in the first place?