mark: talk to me about fannie mae and freddie mac. there has been talk about returning them to private ownership. how do you achieve that? will he be asked about that but one of his investors was hedge fund billionaire who has major investments in fannie mae and freddie mac. want to stay steven mnuchin in his ethics disclosures said he stakes in his hedge fund that makes fannie mae and freddie mac investments. he will be asked about the privatization but also the way his friends provident from it. -- profit from it. desert glidedided through yesterday so my bet is that they will pick one or two places where they will hit him. we will see if they get to fannie mae and freddie mac but they very well may not. one senator has taken a stand by sending a letter to the fbi director on the idea that relativity media which is a that steveny mnuchin helped run and produced movies, loaned money to one west which used to be indymac and there was some kind of shifting of money and it was not correct. what would the fbi have to do with that? my col

a makeup mnuchin intends to eliminate government control of freddie mac and fannie mae to privatize theargest players in u.s. home mortgage market? >> yes, this is an interesting deal. mnuchin -- one of the first thinings he said as treasury secretary nominee is that he would seek to privatize fannie mae and freddie mac. hedge funds, quitting former partners of mnuchin's in ononest bank like johnhn paulson, purchased fannie mae and freddie mac stock at a very low rate, less than one dollar a share, on the expectation that if those were privatized and returned back and allowed three capitalized themselves, that that stock which you back up. they file lawsuits against the government. they were seeking this repressed it is a of these two very large entities. if the trump administration is able to pull this offffit would be a massive windfall for these hedge funds that happened to make these purchases. the fact that mnuchin and trump, by the way, because he has invested in john paulson's hedge sod, or so involved -- are involved with these actors that would seek to have his financial windfa

if you take aig and citigroup and wachovia and washington mutual and freddie mac and fannie mae, thelders of those companies lost hundreds and hundreds of billions of dollars. citigroup did not go under, but when the stock holders lose 90% of their value, it really does not make much difference if you have $1000 invested and you end up with $100 or not. so there in my view, there has been no moral hazard created for stockholders by the fact that the government came in and rescued those institutions. the moral hazard exists i think with the top executives who walked away with hundreds of millions of dollars and really did not pay the price for their failure. we had bigger and bigger financial institutions that had all kinds of activities where their problems became other people's problems. and then we had improper incentives, we had people running the huge institutions whose upside was lots of money and lots of glory, and the downside was still a lot of money and no glory. thomas: one of the points my teacher makes, when you're in a world that is a flat and technically interconnected,

fannie mae and freddie mac in 2008. your purchase of india mac was in 2008? >> december of 2008 we committed to it. >> beginning of the crisis was in july of 2008 when merrill lynch drove down their portfolio, subprime securities by 71 cents on the dollar. is that not correct? >> i think that's correct. >> started a domino effect around the world that collapsed the mortgage-backed securities and their values. >> that is correct. >> when you purchased indymac it had a number of those loans in its portfolio? >> it had mortgage-backed securities. >> within which were included those loans? >> yes, that's correct. >> wat wall street did is wall street packaged lons and put them into a security based on high yield. is that not correct? >> what happened is they had secure tiesed the loans themselves and they got stuck keeping them. in many cases most of the mortgage-backed securities they didn't buy. most of them were failed sales. >> is it not true that the freddie and fannie guaranteed insured loans pretty much at the direction of the congress of the united states

and loans we service for fannie mae and freddie mac. as a matter of fact, the one person who came to my home and protested at my home, it was a fannie mae loan and i wasn't able to do anything about that. and it was through my multiple calls to fannie mae that i was able to get a loan modification for that person. but many times people thought we owned the loans, and we did not. they were owned by fannie mae and freddie mac and other security holders. >> and the main point i want to make for the sake of this argument and i'm sure a lot of questions you're going to get is, a lot of these loans were originated at the auspices of or encouragement of the united states. and they were called affordable housing loans. a lot of people bought those loans made by somebody else when they bought an institution. so they inherited the problem, they didn't originate the problem. there is a world of difference between originating a loan and buying a loan, is that correct? >> that is correct. the loans we originated on the mortgage side going forward we

he currently have a situation in which fannie mae and freddie mac are in receivership. the federal government is basically running them, and the concern that i believe senator warner was referencing is a administratione -- not because we are afraid of anything, just because we are asking. we are trying to find out. maycommit -- administration believe it is ok to keep them in receivership and run as is, the status quo, or perhaps to simply recapitalize them or put them back out into the market without any housing reforms. i just wanted to ask you if you would -- i realize you can't comment on a specific plan yet, but if you would comment on the fact as to if you think we need reform in our housing finance policies that would go further than simply recapitalizing fannie and freddie were keeping them in the receivership. mr. mnuchin: again, thank you for that. unlike the medicare fund where i a knowledge i am not an expert, on fannie mae and freddie mac, i think i am in next. i have been around these for years, i understand very well. that is why it would be one of my prio

it will sell its servicing rights on sallie mae and freddy mac loans. citisays it will help improve shareholde shareholders concerns, subject to approval. >>> irregular heart rhythms are more common than some may think. in perhaps 6 million americans. in serious cases it can lead to stroke or heart failure. the methods of measuring rid pretty antiquated and small companies are trying to make some big changes. >> gabriel's heart is a mystery. >> kit cause sinkable time. i can't see, i can't hear. the room goes black and i can collapse. >> since 2012, it has caused the lower chamber of his heart to beat too fast. his doctors don't know why. >> i've had a bunch of genetic studies, echo cardiograms, and everything has been negative, which is good and bad. >> sarah is one of millions with cardiac arrhythmia or abnormal heartbeat. he said it is mysterious but well managed. doctors say the way they monitor heart rhythms is changing. >> what i first saw, why dmt i think of this? >> the cardiologist fit in from the small company. >> i was worried the picture we

that is not a fannie mae or freddie mac conversation.ere never can have it allowed these companies to fail. it was implied obligation that they would bail out. that's a problem with the way they would still exist. they can assume because they can't resist bailing them out. how would privatization affect the lending environment? but safe they would privatize. what is your take on it. i think they would be privatizing some concept of a mutual insurance company. there'd be some skin in the game. and ultimately private capital i think anyone would do that any further. you want to ensure the liquidity of the mortgage markets. and ultimately you're looking to subsidize mortgage rates not necessarily for those of us that can afford it but really needed but for the low to moderate income. the government has to stand by in this market even though it functions without a government guarantee. with nonconforming loans. and part of the myth is that the politicians believe that the american dream is owning a home. the benefits a lot of people to rent

host: what's the future of fannie mae and freddie mac? guest: we have to recognize that home ownership rates used to be about o 40%. hen the introduction of fha mortgages. worked very well. after the second world war, many of the veterans affairs mortgages in large allow home buying. as a result american home ownership went from 40% to 60%. we caller is correct that can't have artificially home ownership through easy lending. i wouldn't say today is easy lending and we don't want a repeat. for rates to fall to a 50-low from that is hollowing out the middle class. they made a huge mistake during the bubble. as a result it cost the taxpayers. all the management has been changed. with a new magment going back to the historic role. concentrate on the home owners access to mortgages. as a result, to repay all the bailout money they are still providing additional revenues. so the fannie and freddie provide that government guarantee of low mortgage rates. today are 4.2. without it it may be much higher. the mortgages may not be more readily avai

. >> mortgage rates fell for the first time since the election according to freddie mac the 30 year fixed rate average declined to 4.2%. it's the first time since 2014 mortgage rates opened the year above 4%. >> apartment rents are starting to fall. there's new evidence that the trend may be starting to reverse. diana olick. >> if you're looking to upgrade to a nicer rental apartment now is the time. higher end rents are finally coming down. a new supply gets ready to hit the market this year. rents had been -- high demand out paced supply. there is a limit even on the luxury end. apartment vacancies are still very tight and getting tighter but rents are evening. rent growths at the 2016 was the lowest in seven years and some major metropolitan markets are seeing rent fall. boston, new york city, d.c., austin, seattle and san francisco all saw small rent drops according to a new report from reese, inc. landlords are making bigger concessions now before much more supply hits the market this year and pushes rents even lower. the drops aren't everywhere, though. they're mostly in expensive m

sounded great, but behind that where these pseudo-government private entities like fannie mae, freddie macthat did the economy a disservice. i see that happening all over again. ,ost: our guest is matt schlapp earned his master's at wichita state university, chair of the american conservative union and will be covering cpac in february. peter is up from that which -- college valley, new york on their public in line. good morning. caller: good morning. hi, matt. i watch you and your wife on pots all the time. nice to see one there. one, judge napolitano said that the fbi dropped 200 -- 300 females of hillary clinton a couple of weeks ago, and according to him, there was a smoking gun there because it proved that hillary emailsneled classified to blumenthal, but after was mentioned on the air, it disappeared. i was curious of what was happening with that, and do you believe that the new agee is going to pursue this is president obama does not part in hillary clinton and her people? i do not understand why they are not pushing the narrative from donald trump about that. he was pummeled in the

fired a round of questioning hollywood producer steven mnuchin with the comments on fannie mae and freddie mac many believe are the lifeblood of the housing market. about to restructure my putting putting them into the hands of private investors changing his tune seen that he no longer supports the position of recap and release. i believe these are very important entities to provide the necessary what i have committed to is that i will work with both the democrats and the republicans what i said we need housing reform. we should just leave it as is for the next four or eight years under government control without effects. they are still following nearly 5%. last april 15. let me bring in charlie. before i get your take on that we do have a breaking piece of news here that senator elizabeth warren and ben carton had put out a letter to mister mnuchin it's about anthony scare which he of course they're saying at he has made a mistake by meeting with the ceo of a russian entity who was sanctioned back in 2015 and you're not supposed to do business with the russians. it becomes confirmed as presid

we currently have a situation in which fannie mae and freddie mac are in receivership. the federal government is basically running them and the concern i believe senator warren was referencing was a concern that the administration -- not because we are afraid of anything but because we're asking, trying to find out, that the administration either believe that it's okay to keep them in receivership and continue to one as is with the status quo or perhaps to simply recapitalize them an put them back out into the market without any housing reforms. and i wanted to ask you, i realize you can't comment on a specific plan yet, but if you would comment on the fact as to whether you believe that we need to have reform in our housing finance -- or housing finance policies that would go further than simply recapitalizing fannie mae and the receivership. >> thank you. unlike the medicare where i acknowledge i'm not an expert but with freddie mack and fannie mae i am an expert and it would be one of my priorities to work with you and as what i have said, what i am focused on is we

not only for the loans we owned, but loans we serviced for fannie mae and freddie mac. the one person who came to my home and protested at my home, it was a fannie mae loan and i was not able to do anything about that and it was through my multiple calls to fannie mae that i was able to get a loan modification for that person. many times, people thought we owned the loans and we did not. main -- sen.n: the isakson: the main point i want to make, a lot of these loans were originated at the encouragement of the u.s. government. they were called affordable housing loans. a lot of people bought those loans and inherited the problem. there is a world of difference between originating a loan and buying a loan. steven mnuchin: that is correct. the loans that we originated on the mortgage side were good loans, had nothing to do with those terrible legacy loans. sen. isakson: that is the important point. if you originate something, you own it. if you acquire something that is bad debt, shame on you for buying it, but it's not your problem for creating it. steven mnuchin: thank y

the corporate tax rate, finding a solution he said to removing mortgage backers fannie may and freddie mac from government control and a modern version of the glass siegla act. the one put in that prevented traditional banks from merging within vestment banks. it was repealed in 1999 and some say that led to the mortgage crisis and recession we experienced in 2008 and 2009. at one time he was a partner at goldman sach's and co owned a bank that had failings and problems during that mortgage crisis. also this morning former texas governor rick perry had his hearing as trump's nominee for energy secretary. the energy secretary the's main responsibilities are to oversee the nuclear weapons and research new methods of creating energy. while running for president back in 2011 perry said during a debate that he wanted to eliminate three agencies but could only remember it would have them. the one he forgot was the energy department. here is what he has to say about that now. >> my past statements made over five years ago about getting rid of the department of energy do not reflect my current thi

not only loans we owned but loans we serviced for freddie mac and fannie mae. as a matter of fact, the one person who came to my home and protested at my home, it was fannie mae loan, and i wasn't able to do anything about that and it was through my multiple calls to fannie mae that i was able to get a loan modification for that person. but many times people thought we owned the loans and we did not. they were owned by fannie mae and freddie mac and other security holders. >> the main point i want to make for the sake of this argument, i'm sure at of questions you're going to get, a lot of these loans were originated at as pa significance and encouragement of night government and congress of the united states and they were called affordable housing loans, a lot of people bought the loans made by somebody else when they bought an institution so they inherited problem, they didn't originate the problem. there is world of difference originating a loan and buying a loan, is that not correct? >> that's correct. i can assure you the loans we originated on mortgage si

we currently have a situation in which fannie mae and freddie mac are in receivership. the federal government is basically running them and the

you go back to the 1990s when he was a treasury sitting on any efforts to reform fannie mae and freddie mac. remember, the clinton administration was driving up their affordable housing goals. that meant they started buying a lot of really shotty loans subprime and so, yeah, i don't think he's necessarily the most credible witness on this. and as i look at the trump team, my concern is they're not going to go far enough deregulating the financial sector. you look at who he has picked versus some of the other senior administrative slots, a lot of goldman sachs guys. david: yeah. >> not really known for revolutionary thinking. david: but, jonathan, i want to go back to the hypocrisy. i don't want to go into psychobabble but there's a psychological term projection. you project on others what you have -- isn't that what's going on with larry summers? >> indeed, david. it's bewildering me. in fact, now is the time for republicans to deregulate. to practice what they've been preaching for so long. every time you see markets deregulated, you see them less expensive and more productive. and there's

donald trump's pick for treasury secretary pressing him on too big to fail, debt, mortgage giants freddie mac and fannie mae. we'll go live to the latest. david: the trump transition team is ready to hit the ground running on day one. what they may be looking to tackle first on the first day. >> let me tell you, we are all, we are already to go to work. in fact we can't wait to get to works for the american people to make america great again. your path to retirement may not always be clear. but at t. rowe price, we can help guide your retirement savings. so wherever your retirement journey takes you, we can help you reach your goals. call us or your advisor t. rowe price. invest with confidence. i'm all-business when i, travel... even when i travel... for leisure. so i go national, where i can choose any available upgrade in the aisle - without starting any conversations- -or paying any upcharges. what can i say? control suits me. go national. go like a pro. you may sometimes suffer from a dry mouth. that's why there's biotene. and biotene also comes in a handy spray. so you can moisturize yo

when we could do loan modifications, we did them, but many times the fdic, fannpha fa, freddie mac hadstrict rules in processing these loans. our bank was able to do over 100,000 loan modifications that allowed people to stay in their homes. unfortunately, not all the loans were able to be saved and des spite my best effort, some were lost to foreclosure. so concerned, in 2010 i instructed my lawyers to sue hsbc as trustee of the securitized loans to allow us to do loan modifications on loans and mortgage trusts that they oversaw. we won on summary judgment and were consequently allowed to do more loan modifications and keep more americans in their homes. similarly in 2015 when hud issued mortgagee later 2015-11, i wrote hud and asked them to change the policy so we didn't have to foreclose on senior citizens who owed small amounts of taxes. unfortunately hud did not agree and we were forced to foreclose on senior citizens, even if they only owed $1. not complying with these hud policies would have subjected the bank to penalties and losses from hud. despite our inability to save every

funds, i think i am an expert in fannie mae and freddie mac. it would be one of my priorities to work with you. we need housing reform and a solution. the status quo is not acceptable of just leaving them there. this are two extremes on and it is something i look tting down and talking with you. don't put the taxpayers at risk and two, we don't eliminate capital for the housing market. i'm very concerned that middle income people who need mortgage loans have access to the capital. sen. crapo: i agree with you on both of those objectives. that is exactly what we need to work together to identify. steve mnuchin: i'm optimistic we can work together and hopefully find a bipartisan solution. question,: my second we have seen the unfortunate circumstance in the last few years of the irs actually targeting individuals because of and how theyieve advocate in our society. i would just encourage you to make a high priority that not only the irs but all of the federal functions under your jurisdiction as secretary of are stopped from that of americaneting

but many times the fdic, fannie m mae, freddie mac, and bank trustees imposed strict rules governing the process of these loans. i am proud to be able to say that our bank was able to do over 100,000 loan modifications that allowed people the opportunity to stay in their homes. unfortunately, not all the homes were able to be saved through these programs and despite my best efforts, some were sadly subject to foreclosure. so sincere was my concern over this, that in 2010 i instructed my lawyers to sue hsbc as trustee of the securitized loans to allow us to do loan modifications on loans and mortgage trusts that they oversaw. we won on summary judgment and were consequently allowed to do more loan modifications and keep more americans in their homes. similarly, in 2015, when hud issued a mortgagee letter 2015-2015 2015-11, i wrote hud and asked them to change the policy so we didn't have to foreclosure on senior citizens that were behind small amounts of money on taxes and insurance. i was so troubled by this that i discussed it with our primary regulator, the office of the controller

government-backed mortgage giant freddie mac is girding for broad losses from climate-driven flooding. the economic losses and social disruption may happen gradually, it wrote, in an april, 2016, report, but they are likely to be greater in total than those experienced in the housing crisis and great recession -- end quote. let me say that again. the losses are likely to be greater in total than those experienced in the housing crisis and great recession. some of the effects of climate change, the report says, may not even be insurable, and unlike our 2008 housing crash, owners of homes that are subsumed by rising seas would have little expectation of their home's values ever returning. and therefore, little incentive to continue to make mortgage payments through the crisis, and that in turn adds to steeper losses for lenders and insurers. remember that donald trump signed, along with his children, this full-page ad in "the new york times" in 2009. here's what it said. we -- speaking as americans -- we must embrace the challenge today to ensure that future generations are left with a

but many times the fdic, fannie mae, freddie mac, and bank trustees imposed strict rules governing the process of these loans. i am proud to be able to say our bank was able to do 100,000 loan modifications that allowed people the opportunity to stay in their homes. unfortunately, not all the homes were able to be saved through these programs, and despite my best efforts, some were sadly subject to foreclosure. so sincere was my concern over this that in 2010 i instructed my lawyers to sue hsbc to allow us to do loan modifications on loans and mortgage trusts that they oversaw. we won on summary judgment and were consequently allowed to do more loan modifications and keep more americans in their homes. similarly, in 2015, when hud issued a mortgagee letter 2015-11, i wrote hud and asked them to change the policy so we did not have to foreclose and senior citizens who were behind on small amounts of money on taxes and insurance. i was so troubled by this that i discussed it with our primary regulator, the office of the comptroller of the currency. unfortunately, hud did not agree, and w

we were the largest shareholder of freddie mac when it was seized. one of them is the legal front. what might happen in that case. on the privatization front it's hard to see how fannie mae is wo worth this price. it has no capital. the average big bank has to have 10%, of the big banks. if they have to have 10% new capital coming in there, that would put the stock worth a dollar at the most. >> what. >> i don't think people have thought about the new capital. >> how are you reviewing financials in general? you saw the shift in sentiment toward banks. good stuff priced in? how does it look? >> a lot has been priced in in the past couple months. there are some financials where it hasn't been priced in. one financial omf is priced in. it's a terrific trump stock. the largest sub prime lender. if you want to bring jobs back and get people to work. that's good. it's trading around book value. >> the old primereca. >> remember the old household financial, beneficial finance associates? it's that type of business. >> got you. >> on the other things, the big banks i think will have a very

he wants a bipartisan compromise on fannie mae and freddie mac. >> he wants to see changes made to the consumer financial board. that's consistent with how policy gets conducted. so i think from a policy perspective he's doing excellent today. from a political perspective, as eamon was talking about, the democrats are trying to land blows. what struck me was senator heller from nevada trying to talk about foreclosures in his state. that's a republican up for re-election in 2018. maybe you see a few republicans. it doesn't feel like he's going to get shot down even with the off shore funds, lack of disclosure of $100,000. he's doing well enough on policy that he should be able to make it through. >> dan, the market has been waiting for a lot of these confirmation hearings. of course, the first days of the administration, at this point with a lot of the candidates, without a ton of opposition what does that say to you about what's going to happen in a couple of days? >> kelly, we're less than 24 hours away from donald trump being president of the united states. this is a big change. thin

which has huge financial implications, especially with fannie mae and freddie mac oversight. i anticipate for him to get some questions on that. a lot of people in the business circles in washington will be to seecareful attention if they can glee many answers on where he stands. for the broader market outside of pharma, it is very much what donald trump did not say. the dollar slumping, bonds rallying as the president-elect specifics,rovide sending a wake-up call to markets. the 10 year yield touching its lowest level since november. with us now is bob doll. great to have you with us on the program. socgen in london capturing this story perfectly. the combination of an erratic president-elect in united states and the market which leads to conclusions with manic enthusiasm is a recipe for mayhem. the markets looking to the theident-elect as if he is fed chair with this group did read on economics. bob: we know we elected this guy, things would be interesting. i will not get carried away by yesterday. there is no question that things went differently from where they gone. heal

freddie mac citing weak december jobs report came in 156,000 jobs. stuart: yeah, but down again.ers are way, way down. anything above 4.1%, even though come down a fraction is bad news for homebuilders all of them down big time. however, look at amazon please. i believe the stock is still above $800 a share. is it? 806 now. why? how many jobs are they adding. ashley: this is impressive. they will create more than 100,000 full-time, full benefit jobs over the next 18 months. they're planning to grow that u.s. based workforce from 180,000 this year to 280,000 by mid next year. also, they're pledging to hire and train an additional 25,000 veterans and military spouses over the next five years. stuart: repeat please, full benefits? ashley: full benefits, full-time, full-benefit jobs. stuart: this ain't no part-time hiring? ashley: no, working three part-time jobs. stuart: biggest hiring plan i heard in a long, long time. >>> can cory booker testifying against fellow senator jeff sessions at his hearing to be attorney general. >> if one is to be attorney general they must continue the

in the paulsen treasury as one of the key guys that worked on the institutions, fannie mae and freddie mache's being considered for vice chair of regulation. another guy being thought of is tom honig, the federal reserve president. a lot of other names you might have heard. john taylor for the fed. glen hubbard as well. don't know if greg we look at mike pence there. the new vice president. people are gaining out the trump agenda. i spent a couple days in washington. i think tax reform is a given. even the liberals and the democrats i spoke to think that definitely happens. then perhaps they attack obamacare. the idea is that they separate obamacare from the tax cuts and reform. even though there's a big tax component of obamacare. i think only then do they get to the fed opponents. and listening to steve mnuchin the other day, i didn't hear a lot of appetite for being aggressive on dodd frank reform. i know they want to do it but i don't think it is very high on the list. and i do not know where to put trade on the agenda. is it something they go after right away? do they have the capacit

but many times the fdic, fannie mae, freddie mac and bank trustees imposed strict rules governing thess of these loans. i am proud to be able to say that our bank was able to do over 100,000 loan modifications that allowed people the opportunity to stay in their homes. unfortunately not all the homes were able to be saved through these programs. and despite my best efforts some were sadly subject to foreclosure. so sincere was my concern over this that in 2010 i instructed my lawyers to sue hsbc as trustee of the securetized loans to allow us to do loan modifications on loans and mortgage trusts that they oversaw. we won on summary judgment and were consequently allowed to do more loan modifications and keep more americans in their homes. similarly, in 2015 when hud issued mortgagee letter 2015-11, i wrote hud and asked them to change the policy so we didn't have to foreclose on senior citizens that were behind small amounts of money on taxes and insurance. i was so troubled by this that i discussed it with our primary regulator, the office of the controller of the currency. unfortuna

it takes a federally assisted program like fannie mae or freddie mac to subsidize the public/private partnerships. jonathan: to pick up on automation. if it is the problem, why on the campaign trail was in the not discussed? why was all about immigration? the campaign trail is a campaign trail. the president is the president of all of americans. at that500 participants will help them craft a plan for everyone. it is just a component. jobs are not easy when you have basically a deflating economy. everything is cheaper. everything is easier. there are fewer people are involved. what is the effect of that on everything? the effect on that on the insurance industry? these far-flung issues you have to allow to go forward which are not really campaign issues. americansssues are are suffering. a stitch said we want change. david: one to seeing clear, you mentioned the reproach nation -- and repatriation and connected to investment. the point you can bring money back if you invest in plant and equipment rather than buying backstop? exactly.ck: the logical thing is not to reinvest capital but

liz: out of freddie mac an interesting drop from last week's 4.32.5% 30 year mortgage rate, still hanging in, record lows. stuart: we are down a fraction. liz: tween 9 straight weeks going up. stuart: another indicator looks at the service sector of the economy. ashley: nothing but, but it is the same as november and adding 12 month hig we are not stepping back, but boosting ecomic data has been positive so that is another example. stuart: no effect on the market which is dead flat, no impact from those numbers. one big deal is the retail sector. we talk about the retail ice age. major retailers are struggling. will you look at kohl's for a start? that stock is down 17%, very disappointing holiday sales. how aboutacy's? down 13 percentage point drop, closing 68 stores, cutting 10,000 jobs. amazon on the other hand, the online kings, very strong performance, their stock is up $12 this morning and they report they shipped 1 billion items of the holiday period, and they will open their own brick and mortarkstore coming up in manhattan this spring. they

his own interest but he had invested in some hedge funds that investedvested in fannie mae and freddie maca lot of interest personally on what happens on the two institutions. dagen: when donald trump start working with congress, they have got to get on top of tax reform. one reason -- right out of the gate bogged down with the repeal and replace of obamacare and it was dominating the headlines and headlines matter when it comes to the market and stop talking about the dollar and things like that, don't create uncertainty for the markets and i'm talking about trump. jon: this is the point that we are trying to make earlier. it's very hard to do. even if republicans agree they want to get tax rates down there's trade-offs, if they want to do something in a way that doesn't push deficit much higher -- dagen: special interest pushing back, real estate business, whether it's just the tax preparers in the country, they don't want to tax code to be less complicated. maria: yet, both sides of the i'll agree that tax reform would actually move the needle in economic growth, that we need to see the

to address an unresolved issue from the financial crisis, a proposal to overhaul fannie mae and freddie mactely owned communities. to --oposal is an attempt lawmakers to reform the housing finance system. a competition watchdog may extend their march 13 deadline the takeover of the london stocks by another five to 10 days. the extension gives regulators more time to review clearing operations. takeover is valued at $12 billion and would create everything from indexes to stock markets and clearing. colleges stand to lose as much as $700 million in annual revenue from immigration restrictions if president trump's ban on visitors from iran, iraq, libya, somalia, sudan, syria, and yemen becomes a permanent thing. that is according to estimates by a higher education research website. university presents fear the could jeopardy -- presidents fear the policy could jeopardize for the world's smartest students. back to let's get politics and president trump, who is expected to sign a directive in the next few minutes that will hold the heads of federal agencies responsible for managing cyber securit

regulations, a strong dollar and there is so much to talk to him about not to mention fannie mae and freddie mac capitol hill our reporters.

dagen: this is the man who can turn a segment about fannie mae and freddie mac into the most heated debate in memory. maria: that's what he did last time. >> the bar has been raised out. maria: we've got lots of material. he's going to build the wall. executive order after executive order. we got it. dagen: every major newspaper. how many of these papers the dow 20,000 above the fold? "the wall street journal" and the "financial times" did. that essay. on the front page of "the new york times" "the new york times" to get the tiny little blurb below the fold. two thumbs down. maria: is a big deal. >> at the bethesda valley rally can continue either. if earnings continue to pick up, the rally could pick up steam. maria: first-quarter earnings expected 11% profit. 30 incredible. joining the conversation, counselor to president donald trump kellyanne conway. both the cbo afford motor mark fields is that the solemn eyes. the research analysts to weigh in on the financials and california congressman darrell issa. we take it off right now with an historic day the market yesterday. the dow jones i

that we all foot that we serviced for free if a and freddie laugh elisa recalls to fannie mae and freddie mac i feel alone modifications for of the did not they were owned by them and other security holders. >> but allied studies were originated at the expense of the united states. a lot of people bought those loans soleil inherited the problem and did not originate the problem. >> i can assure you those loans were good it had nothing to do with the terrible legacy lungs. >> but you own that. that is not your problem for creating it? to make that is true to meg shame i knew they did something wrong but that you inherited something. >> i understood that. >> i have been told that the irs for not sending out 524 soph flood negative 522 forms flex would become treasury secretary i hope you pay attention to that because the only way we can keep that intrusion is for people to get the report. if you would work on that i would work with that to appreciate that. >> that sells like an important issue. >> mr. chairman faugh full flow to the hearing for today. sift the beginning of the great recession y

when we could do loan modifications we did @hem but many times the fdic, fannie mae, freddie mac, andank trustees imposed strict rules governing the process of these loans. i am proud to be able to say that our bank was able to do over 100,000 loan modifications that allowed people the opportunity to stay in their homes. unfortunately not all of the homes were able to be saved through these programs and despite my best efforts, some were sadly subject to for closure. so sincere was my concern over this, that in 2010 i instructed my lawyers to sue hsbc as trustee of the securitized loans to allow us to do loan modifications on loans in mortgage trusts that oversaw. which won on summary judgment and were consequently allowed to do more loan modifications and keep more americans in their homes. similarly, in 2015, when hud issued mortgagee letter 2015-11, i wrote hud and asked them to change the policy so we didn't have to foreclose on senior citizens that were behind small amounts of money on taxes and insurance. i was so troubled by this, that i discussed it with our primary regulator,

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. >> not only for the loans we owned but serviced for fannie mae and freddie mac. the one person who came to my home and protested at my home was a fannie mae loan and i wasn't able to do anything about that and it was through the multiple calls to fannie mae, that i was able to get a loan modification for the person but many times, people thought we could but they were owned by fannie mae and freddie mac and other security holders. >> the main point i want to make for the sake of argument, and i'm sure tyou'll get, a lot wer encouraged by the congress of the united states. that's what, and they were called affordable housing loans. a lot of people bought the loans made by somebody else when they bought an institution so inherited the problem and didn't originate the problem. there's a big difference. >> that's correct. i can assure you that the loans we originated on the mortgage side going forward were good loans and nothing to do with the terrible legacy loans, so thank you for pointing that out. >> that's the important point. because if you originate something,