freddie mac and fannie mae are allowed to hold $3 billion of capital apiece.agrees if they run into problems like 2008, that would be totally inadequate, wiped out almost immediately. are taking the steps of letting them retain quarterly earnings until anddie gets to $20 billion fannie mae gets to $25 billion. based on the current earnings profile, it will take the companies may be a little more than a year. then we will see what happens. still not enough capital for them to be private companies, so you are looking at something like an ipo, maybe some other form of raising money to boost capital buffers. but this is going to be a long and winding road. kevin: a month ago there was chatter in the wall street world about whether there would be a slowdown or recession. headwindsk at those about the future, next 15 months, what impact does that have on the trump administration from moving forward on fannie mae and freddie mac? jesse: the problem with fannie and freddie is that no one really quite knows what the impact would be on mortgage rates. shery: [laughter]

housing market fannie mae and freddie mac. . sure let's start out by explaining who they are they're both government sponsored entities which means that they're somewhat private operating under the auspices of the federal housing finance agency and what they do simply is fannie mae buys mortgages from commercial banks pretty mad buys mortgages from thrifts they securitize them into mortgage backed securities and they sell them to the market and that's a wonderful thing it's quite profitable and the government has done quite well since 2008 with this model the situation is that if you privatized certain mortgages that would be available concerns to consumers may not be there and they may shift the landscape of the mortgage backed securities market but it may also do and this is what regulators and consumer advocates are very very concerned about we may revert back to a situation of 2008 where if there is a less government intervention and oversight we may have a situation where subprime were non-conforming loans are sold as part

steven mnuchin unveiling a plan that would re-privatize fannie mae and freddie mac. it was back during the bush administration that the republican part of that $190 billion bailout from taxpayers issued a conservatorship for fannie mae and freddie mac. as of now, they make up about half of the mortgages in the $11 trillion mortgage market. it is a long shot to get them privatized. even behind the scenes, talking to sources this morning, republican saying something they would like to see happen, but with the divided government and heading into an election year, the plausibility of this getting over the finish line remains a challenge to say the least. also presentrdles some opportunities for hedge funds. that would mean they would be able to invest in this type of market. the administration says they want to see more competition in the mortgage market as well. it is a benchmark, it is a long way to go, but a long-awaited unveiling from the treasury department. david: it is a process. you have to start somewhere. many thanks to kevin cirilli. let's go to detroit. i was

the federal housing finance agency who serves as the regulator and conservator of fannie mae and freddie mac. i want to thank each of you for coming to the committee this morning. last friday marked 11 since the government bailed out and put fannie mae and freddie mac into conservatorship, where they remain today. prior to 2008, the government-sponsored enterprises held a 45 cents in capital for every $100 in mortgages they guaranteed. now just 19 cents after a historic 200 billion-dollar bailout from taxpayers. 11 years later they continue to be too big to fail and are even more leverage than they were before the financial crisis and taxpayers inevitably remain on the hook to developing for administrative and legislative reform of the federal housing finance system many of the legislative recommendations in the plans that were released on thursday or consistent with my off-line in the system including attracting private capital back into the market as well as preserving certain incremental reforms that have already taken place during the conservatorship including a robust transfer of credit

guest: fannie mae and freddie mac are the biggest financial institutions there are. n j.p.bigger morgan and freddie is bigger than citibank. factors.the dominant one think the administration is doing is trying to figure out freddieet fannie and with her $5 trillion of risk better capitalized and in a more competitive state. host: for those of us who don't really follow this, when you say fannie and freddie have no capital but they have $5 trillion, what do you mean by this? guest: fannie and freddie guarantee mortgages. they are the biggest concentration of mortgage credit risk in the world. t dollarsn with a they are on the hook for. failed in 2008 and disastrously from guaranteeing and making bad loans they were taken over by the government. since then they have run 100% backed by the taxpayers. between the $5 trillion in risk and the taxpayers there is no cushion of capital. a fundamental financial principle is you want private capital between whatever risk the taxpayers are up against in a crisis. these are huge companies with huge risks. host: most people interac

soon to be privatized mortgage giants fannie mae shares are down 8.75% and sibling freddie mac down 9% as investors start to realize the treasury department's plan may be more of a bleak house than a dream home scenario. nicely written. >> who wrote that? liz: charlie gasparino. >> you know, you're right. they are both penny stocks. the even bigger story here is not so much the common shares, which you know, common shares are just so you know, the lowest level of the capital structure. if you restructure a company, common shares almost always get wiped out. those are penny stock levels. it's the preferred shares, if you look at the preferred shares, they are down as well today, as well today, so it's kind of a scary scenario for shareholders. listen, this plan was supposed to bail out the shareholders. they are a very active group of shareholders. by the way, they call themselves fannie-gate. they believe the government was essentially screwing them over, stealing all of fannie mae's profits, that fannie mae and freddie mac didn't have to go into receivership. i think bill ackman owns

we'll talk about fannie mae and freddie mac.ounder of papa john's pizza speaking out this morning exclusively to me in his first interview since being pushed out of the company that he founded. john bar a aso is here talking about peace talks with afghanistan, niles gardner is here talking brexit and senior judicial analyst judge andrew napolitano on big tech's anti-trust suit and doug collins on the upcoming inspector general report as well as the new move out of the judiciary to try to define impeachment. all that coming up this morning right here. markets of course pointing to a gain at the start of trading. futures up 63 points on the dow, s&p is up 8 and nasdaq's up 21. we had new data about the chinese economy showing signs of weakness. august exports to the united states took a hit, down 16% to $44.4 billion. this is a clear sign that trade tensions with the united states are having an impact. yesterday, i spoke to peter navarro on sunday morning futures about upcoming negotiations with beijing. what can we expect from th

finance agency who serves as the regulator conservator of freddie mae and fanny-- fannie mae and freddie mac. it marks 11 years since the government bailed out and put those where they remain today. prior to 2008 the government- sponsored enterprises held $.45 in capital for every 100 in capital for every $100 in mortgages guaranteed. now they hold just $.19 after a $200 bailout from taxpayers. 11 years later these systemically important companies continue to be too big to fail and are more leverage than they were before the financial crisis. taxpayers inevitably remain on the hook for the next market downturn. in march pres. trump signed a memorandum directing the department of treasury and urban development to develop a plan for administrative and legislative perform of the housing finance system. many of the recommendations and the plans released on thursday are consistent with my outline to fix the finance housing system including attracting private-- protecting taxpayers against future bailout and promoting competition as well as preserving certain incremental reforms that have already

last friday marked 11 years since the government bailed out and put fannie mae and freddie mac in the conservatorship, where they remain today. prior to 2008, the two government-sponsored enterprises helped 45 cents in capital for every $100 in mortgages they guaranteed. now, they hold just 19 cents. after a historic 200 billion-dollar bailout from the taxpayers. 11 years later, the systemically important companies continue to be too big to fail and are even more leverage than they were before the financial crisis, and taxpayers inevitably remain on the hook in the event of a mixed market downturn. in march, president trump signed a presidential memorandum directing department of treasury and housing and urban development to develop a plan for administrative and legislative reform of the federal housing finance system. many of the legislative recommendations in the plans that were released on thursday are consistent with my outline to fix our housing finance system including attracted attracting capital, protecting against future bailouts and promoting competition. as well as preservi

settle claims that conspired to break the prices of bonds issued by mortgage lenders fannie mae and freddie mac. is the 1st of 16 financial institutions to reach a settlement in the u.s. which has known me to be wrong doing. and here is just weeks away from a presidential election and protesters are demanding the government declare a food emergency spiking inflation is leaving the nation's poorest struggling to feed themselves use a 100 holes a bosio reports. 60 year old housewife. lives in a hut without running water in the city of science pena in the northern argentinean province of choco she has 11 children to live with her and there's also her 4 year old grandson benjamin he is recovering from severe malnutrition. and he said often it is very difficult to buy the things you need. she needs between 4 and 5 euros for their daily food needs she says the money comes from her children's allowance her daughter's disability pension and the wages her son earns whenever he can pick up work but there is often not enough money. and yes my son does odd jobs and gets paid in the afternoon sometimes we h

the trump administration unveiling its plan to privatize fannie mae and freddie mac.he two companies were bailed out by taxpayers after they nearly collapsed in the financial crisis. lauren: hillary vaughn is at the white house with the details. good morning, hillary. >> reporter: good morning, lauren and ashley. the treasury department along with the department of housing and urban development is recommending that the government release control of fannie mae and freddie mac after they turned into government sponsored enterprises following the housing crisis. right now, fannie and fed dry fe giving the government billions in revenue after the bailout. now the government has a plan to restrict future bailouts. there is no timetable for them to exit conservatorship. this official saying it could be through a public or private placement. treasury officials also say changes could be made to fannie and freddy's net worth sweep. right now, all their profits go to the federal government but that could change. however, there are no details yet on how much. treasury is submitt

the brief today, from capitol hill, kevin cirilli on treasury secretary mnuchin fannie mae and freddie mac testimony. emma chandra from london on the next brexit move, and michael mckee on new inflation data out of china and what it tells us about the state of the chinese economy let's start with kevin on capitol hill. let's first talk about this tweet that just came out from president trump. apparently john bolton is no longer there. kevin: president trump just tweeting "i informed john bolton last night that his services are no longer needed at the white house. i disagreed strongly with many of his suggestions, as did others in the administration. he goes on to tweet that i asked john for his resignation, which was given to me this morning. i thank you john very much for his service. i will be naming a new national security advisor next week." it comes following the developments over the weekend with the planned meeting president trump canceled with taliban leaders at camp david and comes at a crucial time with regards to the president's middle eastern policies. remember, jason greenblat

vonnie: fares a of fannie mae and freddie mac up. is -- freddie joining us is mark calabria. expecting nextbe month from an fha and a treasury agreement? mark: we are working on a letter agreement. at 3 billion.ps wewill still be limited, but are looking for a number that will get us through the next year and a half or two years. after that, we will reach an agreement to the underlying share agreement. is not when you said it calendar driven, do you anticipate within a year that fannie and freddie will be out of government control? vonnie: it depends on how quickly they raise capital -- mark: it remains -- it depends on how quickly they raise capital. they will be responsible for building capital and hitting goal posts. what we will be doing to the share agreement amendments is setting up mile marker's for fannie and freddie to hit. that will be the ones that drive down that road. vonnie: how much capital will this letter agreement authorized to retain? mark: probably enough that we'll get them through a year and a half or two years.

. >>> according to freddie mac, the average rate of a 30-year fixed mortgage increased from 3.5% a week 3.7%. a year ago the rate was 4.6%. the average on the 15-year fixed home loan climbed about .1% from last week to 3.2%. >>> now about 1,600 amazon employees plan to walk off the job later today over what they say is the company's inaction on climate change. they say a pledge fromceo jeff bezos to make the company carbon neutral by 2040 and to use more electric delivery vans does not go far enough. the walkout comes as a global strike begins today. it calls on people to walk out of school or work to raise awareness. this comes ahead of a climate change meeting next week. >>> you could get deliveries from walgreens to your door by drone. there's a partnering to test drone home delivery service. starting next month, snacks like goldfish crackers or gummy bears as well as asprin for a sick child will be delivered by a ten-pound drone that flies up to 70 miles per hour. other cities will follow. >>> and one company's making the impossible possible. impossible burger makes its grocery stor

nators said, you know wh these giant mortgage underwriters, fannie mae and freddie mac, arc severely unitalized. they're underwriting or guaranteeingrillions of dollars in mortgages with nowhere near the amount of money they'd need inase there was an increase in defaults. thateveraging is the key to what happened ten years ago and the entire world economy almost went under. and we had the great recession. and so what you hope is that a year from now we're not going to be looking at this undercovered hearing i saw an article on only in political magazine about this, and say, "ge why didn't we pay more attention to the fact that we seem to be running the same kind of risk that got us in such horrible trouble a decade ago?" i'm hoping that doesn't happen to be the case, but i got some concerns here. >> sreenivasan: jeff greenfield joining us from santa barbara. thanks so much. >> you bet. >> sreenivasan: the term "quantum mechanics" describes the strange doings of the tiniest particles in the universe. wher for example, two object can occupy the exact same space at the same time. li aff

fannie mae and freddy back. -- freddie mac. they will be allowed to boost their capital. ey will be allowed to retain their earnings until the capital buffer hits $25 billion for fannie. for freddy, it will be allowed to hold $20 billion. under the current bailout arrangements from the financial crisis, both are restricted from holding more than $3 billion in capital, which meant they cannot survive without government control. if they can get to $25 billion, if they can get to $20 billion, maybe they can survive without the government. it will take them a while to get there. there are still significant challenges to recapitalization, and one of them will be to the outcome of the 2020 elections depending on how long this takes. it does go stocks i am watching. that wraps it up for me. coming up on "the open," strategic head of fixed income research as we wrap up the last day of the third quarter. this is bloomberg. ♪ y95óóo jonathan: from new york city for our audience worldwide. i'm jonathan ferro. "the countdown to the open" starts right now. ♪ jonathan: coming up, wrappi

the treasury department would release fannie mae and freddie mac from government control. this week they were put into government conservatorship when the housing market unraveled. this company has decided to go microphone free with its new feature despite looming competition from apple and amazon. this is bloomberg. ♪ caroline: sonar unveiled three sonar unveiled three new products, including one that is microphone-free. this after google, apple, and amazon have come under fire for recordings.er >> today marks a new era for sonos. today, sonos goes beyond the home. we have been known as the leading home audio solution, and today we take everything great about sonos and take that to the backyard and the beach with our new product, move. we are excited to usher in this era. an outdoor speaker is the first out of the home product? >> it was a request from our customers. the two things customers have been asking for is an outdoor speaker and a portable speaker. movies the solution to what customers have been looking for. it builds on our expertise around the home but allows u

system by the trump administration, including an overhaul of mortgage finance giants fannie mae and freddie macthen a surgeon talks about his we pay:, "the price what broke american health care and how to fix it." watch c-span's washington journal saturday morning and join the discussion. >> jill biden, wife of former vice president joe biden will be in dover, new hampshire this weekend to help open a field office for the 2025 presidential campaign. watch the event and her remarks saturday on c-span. >> campaign 2020. watch our live coverage of the candidates on the can pain -- on the campaign trail and make up your own mind. viewn 2020, an unfiltered of politics. >> at a recent forum hosted by !america, dr. niche sharpless talked about his needy's mission and the for research and approval of clinical trials. this is 20 minutes. dr. sharpless: thank you governor castle. it's great to be here. i want to thank research!america for convening this important forum to highlight key issues we face in medical science today, but also for its longstanding leadership in recognizing the need for quality re

the brief today, from capitol hill, kevin cirilli on treasury secretary mnuchin fannie mae and freddie mac chandra from london on the next brexit move, and michael mckee on new inflation data out of china and what it tells us about the state of the chinese economy let's start with kevin on capitol hill. let's first talk about this tweet that just came out from president trump. apparently john bolton is no longer there. kevin: president trump just tweeting "i informed john bolton last night that his services are no longer needed at the white house. i disagreed strongly with many of his suggestions, as did others in the administration. he goes on to tweet that i asked john for his resignation, which was given to me this morning. i thank you john very much for his service. i will be

latest step in the trump administration's push to ree freddy mac and fannie mae from government controliants will be boosting their capital by billions of dollars. they send their profits over to government. that is your business update. joe. up, hong kong protests intensifying ahead of china's celebrations to mark the 70th anniversary of communist rule. we'll take a look at the city next. this is bloomberg. ♪ caroline: this weekend saw one of the most violent protests in four months, this before china 70th anniversary of communist rule. chief correspondent stephen engle has more. teven: this is the epicenter of some of the most violent protests in the 17 consecutive eekends of unrest in central hong kong. police firing tear gas. blueused water cannon with dye to identify some of the more hard core protesters. they filed pro vehicle times, rubber bullets and boon bags against the advancing protesters who tried to storm the legislative council building and behind me.offices they will throwing molotov vehicle and any pro times they could find including bricks. they set up several barricad

kevin cirilli from the white house on the trump administration plans for fairly may and freddie mac,he, david welch antitrust investigation of automakers. let's start with you, michael. we were together when you announce the numbers. it is a mixed report at best. michael: the headline numbers not so good. 130,000 jobs created. if you look at private sector jobs, only 96,000, which is 50,000 lower than the consensus forecast. as you can see, the yellow line is wages. they have been rising. up .4 during the month and that left the year-over-year gain of 3.2%. economists had forecast a decline. that is good news and keeps hope

the trump administration unveiled the plan to privatize fannie mae and freddie mac.ooking for more details on this plan from a hearing today. cheryl: the ceo of saudi aramco says a domestic ipo would be the primary listing, meaning it would be there and it would happen, quote, very soon, but he declined to say how much of the company would be listed on that exchange there. the chief said the company is ready for an international offering. saudi's crown prince first announced plans for the ipo in 2016. exchanges around the world clamoring to get this ipo. lauren: north korea continues to test weapons. the country fired two projectiles, the eighth round of launches since late july. hours earlier they announced they're willing to resume nuclear talks with the u.s. later this month but the north said wash washington must comee negotiating table with acceptable proposals. cheryl: benjamin netanyahu is claiming his country found a new nuclear site in iran. >> in this site, iran conducted experiments to develop nuclear weapons. this is the sit site. when iran realized we un

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. >>> the trump administration calling to privatize fannie mae and freddie mac, when we return, we'll wndo with the former head what does that mean for the housing market more power lunch after this. at fidelity, we believe your money should always be working harder. that's why, your cash automatically goes into a money market fund when you open a new account. just another reminder of the value you'll find at fidelity. open an account today. under way. major players went in front of a banking committee this week. di nachlt a olick has the next steps. diana? >> reporter: that's right. negotiations are now under way between fannie and freddie's to allow the two to retain earnings and release them from conservatorsh conservatorship. secretary mnuchin said to do that will require some kind of payment from fannie and freddie. it takes all but $3 billion from each's profit. >> i think they need a lot of capital. let me just say. you know, we're looking at $3 billion and each is irresponsible in the terms of capital and there's no way that they could operate if they couldn't draw on the trea

we are looking at fannie mae and freddie mac, each rally more than 27% after a court victory and encouragingments from treasury secretary steven mnuchin. kailey leinz is here with more. after 10 long years, they will finally get out from under? kailey: last thursday was when all of this was started when the treasury gave a proposal for an overhaul finally releasing these two from government control. since then, all of the company's profits have gone to the treasury, even $100 billion in dividends they paid to the treasurer beyond their actual bailout. that is something called the net worth sweep. that is what is at stake in the court case. the ruling came on friday. a victory for some of these investors. --supported the idea shareholders have been long been arguing that is illegal. than 200%s up more for both of these on a year-to-date basis because investors have long been betting that change is finally going to,. that court ruling inspired and upgraded at compass point that may inspire the administration, and we had an administration official speaking on foxbusiness, steven mnuchin, saying

fhsareasury and the jointly announced this morning that fannie mae and freddie mac will be able to boostespectively to protect against potential losses. this is a key step in the trump administration's push to free the mortgage giants from u.s. control. how much of a sigh of relief will hedge funds be breathing today, jesse, and what is the? path forward jesse -- what is the path forward? step: it is an important because they were never going to get their hands on the money oft was the massive billions dollars in profits that fannie and freddie were making. that has all been required to go to the treasury. every quarterly profit that company makes since 2012, they've been required to send that to the treasury. these companies need more capital. in their current state, they are in no position to be able to endure losses. but the hedge funds would like some of the company's profits, their argument the and that we are big shareholders in these companies. we should be getting the u.s. government. guy: we are almost a year away from the election. how much of the change in these businesses wil

charles: i'm running way behind, i have to ask you, fannie mae and freddie mac coming out of conservatorshipey paid back 300 billion, borrowed 191 billion, is it okay for them to go out on their own? >> no, it's not. first of all, they have to recapitalize and you have to make sure these firms are not subject like the last time around. charles: we will keep it there, i can talk to you all show but we have other guests. >> why? charles: talk to the producers. have a great weekend, last week market exhibited improbable results, all week long and to me hinting that smart buying was buying -- and what does the trend suggest and how powell's speech factor into the market, chief investment strategist rob. rob, we drifted, hit the red for a little bit but buyers keep emerging on and now a couple of percentage points from the all-time high. >> amazing, charles, tall pessimism, doom and globe, recession talk, like you mentioned we are just 2% off the all-time high, if you look at the number that came out today, charles, goldilocks situation, i think it's going to be 25, i think you and i both know i

this is to and government control of fannie mae and freddie mac.een under government control for the last 11 years can basically since before the financial crisis and the billion dollar bailout. the treasure secondary in the second day of housing and develop it will both testify. basically saying that the companies have become profitable again, rather than the profits going to the treasury, they will instead go into an account for those companies to create a cushion in the event, perhaps, of future issues. >>> a woman is recovering in the north bay after getting hit by a car in a santa rosa neighborhood. it happened last night at west eighth streets and north dutton avenue. the woman was crossing the street when a driver may have been distracted by a phone hit her. the driver stopped and cooperated with investigators. the woman who was hit is in stable condition. >> a new lawsuit against san francisco. the national rifle association is accusing the city of violating its freedom of speech. the suit comes less than one week after the board of supervi

hearing with treasury secretary mnuchin, he was short on details about the reform of fannie mae and freddie mact he did make it clear that fannie and freddie need a government backstop paid for by private capital and they also need to be recapitalized. currently, they each retain $3 billion in capital, but secretary mnuchin said they would need a lot more. >> if i were to give you a range of a number of, it's more like $100 billion than it is $6 billion. >> and the treasury secretary also reacted to the court ruling friday saying the treasury sweep of all fannie and freddie profits was illegal. he said, they may appeal that to the supreme court. back to you guys >> all right thank you very much, diana olick. and thank you for watching "power lunch." >> a busy hour it has been thank you very much. and "closing bell" starts right now. >>> welcome to the "closing bell"! i'm here at the jpmorgan post. that stock up 0.8% today, over 3% in two trading sessions we've got the constructive comments from chairman and ceo jamie dimon coming up. broader markets, though, lower, down 0.4% on the s&p 59 minut

the trump administration said thursday it supports the privatization of fannie mae and freddie mac pair of massive , a government-supported companies that back about half of all mortgages in the u.s. the federal government assumed control of fannie and freddie in 2008 at the height of the global financial crisis, which was triggered by the collapse of the subprime mortgage market. trump's plan drew immediate fire from democratic leaders. ohio senator sherrod brown, the ranking democrat on the senate banking committee, tweeted -- "president trump's housing plan will make mortgages more expensive and harder to get. i'm urging the president: make it easier for working people to buy or rent their homes, not harder." the trump administration's former top official overseeing oil and gas drilling on federal lands is joining an oil company that's seeking to expand its operations in remote parts of northern alaska near the arctic national wildlife refuge. joe balash stepped down as the interior department's assistant secretary for land and minerals management last friday. and this week, he confi

. >> fannie mae and freddie mac, allowed banks to make 30 year mortgages to individuals, they have been in government control since the 2008 financial crisis. today the treasury department put out a report basically calling for that government control to end. now, devil in the details here. you need to read this over to figure out exactly what they want. but the treasury is saying this we want fannie and freddie to no longer be in conservatorship, meaning wards of the government, we want them to set them on a path where they are once again totally private companies or private companies with at least some back up by the federal government, so they can continue doing what they do, which is essentially buying mortgages from banks, and when they buy those mortgages from banks, guess what, they put them into mortgage backed securities, they sell them but that allows the banks to make more mortgages in the 30 year variety. there's a public policy by this government and many and predecessors that 30 year mortgages are a good thing. so they want a plan where it's no longer the taxpayers are tot

including an overhaul of mortgage finance giants, fannie mae and freddie mac. insurgent, marty mcgarry talks about his new book, the price we pay and what broke american healthcare and how to fix it. lessee spans washington journal. live it 77 saturday morning. during the discussion. >> this experience is really valuable to me. really helped us grow. her past winners of cspan2 student documentary beautician. the experience sparked her interest. >> fun part about des moines iowa as i get to be right in the middle of the caucus season. so many different candidates and because of cspan2 i've had the experience in the equipment and knowledge to be able to actually film some of them. >> were asking this year middle school and high school students to create a short video documentary. answer the question what issue do you want the presidential campaigns to include. reflect differing points of view. for awarding $100,000 in total cash basis. including a $5000 grand prize. syriac action about what you are discussing to express tribune about how large or small you think

it has released its plan to release fannie mae and freddie mac from government control to create newpetitors. that is your bloomberg business flash. david: thanks so much. still with us is constance hunter of kpmg. we remember in 2008 when the government took over fannie and freddy. it's now been 10 years, and they are still basically run by the u.s. government. constance: i think my reading of the interpretation of this plan -- i haven't read the actual --n david:david: i'm sure there's much of a plan, frankly. alix: it is taking us back to the precrisis situation with explicit guarantee by the government. an economist at fhla, i would hope he has his hands in whatever action gets taken. it is not clear from this reporting how much he's been involved. david: the child lunges how you make mortgages easier to get -- the challenge is how you make mortgages easier to get and not have a government backup for it. thatance: and i think there certainly are a number of people who will admit there are many other countries that have a perfectly functioning mortgage market without a government

the housing finance system by the trump administration including an overhaul of fannie mae and freddie mac. then dr. marty mcgarry talks about his new book, the price we pay. watch "washington journal." join the discussion. saturday at 11:00 p.m. neilrn, neil gorgeous -- >> those are just promises. he did not think we needed a bill of rights if we got the constitution and separation of powers right. he knew that men are not angels and the key is keeping power separated. book, then, in his latest how labsoff reports on in china manufacture the drug. he is interviewed by the new hampshire congresswoman. if you are a scientist at a university and you publish your paper and it went into some university library, in the internet age, all of these -- papers are published online. >> and publicly available. >> these rogue chemists began looking for these files specifically for these papers to go through them and appropriate the chemical formulas to learn how to make these new drugs. jeff merkley provides his first-hand account of conditions for u.s. families at the southern border. hundredstes said

tom: i want to ask about your acclaim in real estate, we have the fannie mae, freddie mac restructuring everybody has an opinion on that. what i would like to ask you is, there were shadows in shadow banking, 14, 13 years ago. where are the shadows now? steve: the shadows are smaller. where is the risk, i think it is in business development corporations, which have done lending that the banks won't do. and probably in private equity if there is a downturn. tom: steve eisman, thank you so much. we have much more coming up. right now, though, a conversation with todd from guggenheim partners. erik schatzker. let's listen. >> we believe that investment grade corporate bonds are an asset class that provides more risk than returns. used to be you have cash in the bank, get a 6% rate of return on it, and the cash would be sitting there, doing nothing for the economy. we think as competition has increased at the rate of return on cash is going down, and we don't think that is going to change anytime soon. we don't have to go back and look at a double-digit 10-year when we think about the chall

. >> little things like everybody talks about fannie mae and freddie mac, reform billing something to get them out of government control. something to recapitalize them. they need congressional buy-in on that. guess what? that ain't even happening. david: we haven't talked about a guest shutdown. >> i was prepared to talk about today, obviously market forces -- david: crackdown on big tech. >> i'm telling you, that the trump administration is devoting more resources to that than a lot of stuff. two departments, two units of doj are looking cracking down on big tech. the focus is on google. they have the ftc on it. they have a civil division looking at privacy issues. doj antitrust looking at probable criminal violations. this is big time stuff. david: that is one thing the democrats and republicans agree on the breakup -- >> those stocks are throughout the indexes. david: charlie a lot of breaking news. thank you very much for covering it. >>> bernie sanders wants to get rid of billionaires. he wants them to be illegal. can he do that? he released an aggressive plan too. that is comin

according to freddie mac the fixed-rate for a 30 year down to 3.49%. that is the lowest level in almost three years. what this is telling us, refinancing activity that we've seen will probably continue and low mortgage rates like this should stimulate the housing markets. take a look at the top three dow component today. intel, caterpillar, 3m, showing some significant strength there. so it's a broad-based rally but you have got technology and industrials leading the way. tomorrow of course, we've got non-farm payrolls. we'll look for a boost of 158,000 jobs there. maybe the adp report indicates we'll see a number higher than expectations. neil. neil: you never know, jackie, you never know. thank you very, very much. we know the u.s. and china agreed to restart the trade talks apparently came after a good phone call. that is all we know now. there are number of writings in and around the chinese press, english versions i get, kind of revealing in anticipation of a possible breakthrough. edward lawrence remind me never get ahead of ourselves on this iss

appraisers so as to bring them in line with the rules we already have for fannie may and freddie mac who are the largely federally controlled entities in guaranteeing or financing homes and will deal with certified appraisers that we are experiencing in parts of the country. this bill deals only with single-family homes. you could make the argument that you should have a certified appraiser in dealing with complex commercial, industrial and multifamily properties. this bill focuses on single-family homes. the bill has the broad support of both consumer advocacy organizations and industry stakeholders. to name the few, home buyers assistance act is supported by the center for responsible lending, the appraisal institute, the national association of realtors, the credit union association and the community independent bankers of america. this bill will make it easier for home buyers to buy a home with f.h.a., federal housing administration mortgages by expanding the number of appraisers who are allowed to do the appraiseals of those homes. i'm pleased to say that in the other body, sena

the economy and rates to housing finance, lot to talk about with the plans over fannie mae and freddie macn mnuchin my special guest on monday. meanwhile, hurricane dorian is churning up the east coast, leaving thousands without power. jeff flock has the very latest from south carolina. >> reporter: i'm just north of charleston. yesterday, flooding all the way through the marshes here and look at this. it's even lower than when we started. that's characteristic after a hurricane. if we look at the maps, dorian is up along the outer banks, lashing the outer banks in a similar fashion that they lashed here. the weather wonks among us wondering will we get a landfall. at this point we don't know. the national hurricane center calls that. that's when the center of circulation, the dead center comes over land. hasn't done that yet. may not do that. big flooding here along the south carolina coast yesterday, some pictures perhaps that show just how bad it was in charleston, south carolina. also, tornadoes spawned. up in north carolina now, when you get that interaction with the eye wall and the

could accelerate the administration's attempts to privatize the mortgage giants fannie mae and freddie macwhich continue continue to play a role in the housing market. they backstop a little less than half of the nation's $11 .rillion mortgage market who are corporations responsible to? beenr: i have actually saving up my 30 day call for profound andor and this happens to be a subject very close to my heart. my first job out of college was working for wall street firms. this started in the 1970's and 1980's and i watched this change happen. back then, when it was still sort of gentlemanly before cetera, eteovers, et cetera, corporations worked to be good citizens and make sure their employees got a fair share and that they took care of the community. that changed. if you want to use a historical timeline, i kind of remember some things in the 1970's. milton freeman was the one that put forward the theory that shareholder value was uppermost and had to be uppermost for corporations. for quite a few years, they fought against that saying they .ant to take care of everybody to me, i will get

let me comment, what we would be doing is allowing fannie mae and freddie mac to increase capital.t we are negotiating is making sure the taxpayers receive proper compensation for that delay but let me just also comment, we are very focused on housing reform we appreciated the opportunity to testify before the senate i was very pleased there was a lot of bipartisan support for many of the issues issues like affordable housing, which is very important in this country, making sure we have more affordable housing. so this is going to be a big priority of ours we want to make sure that fannie and freddie don't stay for another 11 years in conservatorship and go through another period where they put the taxpayers at risk. >> i can't believe it, mr. secretary. i thought we were done with the dollar discussion, and then the president just tweeted -- and i have to read it to you anyway, european central bank acting quickly, cut rate ten basis points they're trying and succeeding in depreciating the euro against the very capital -- all four letters are capitalized there, strong dollar hurti

ashley: freddie mac. stuart: no. some kind of headline, algorithm s said buy. we're volatile now.ike-u i guess on some kind of a headline. now we settled back down to a gain of 80 points. this market, i tell you, you have to follow it second to second. ashley: if you blink. stuart: that is theourt has admo force the ban on most central american migrants from seeking asylum in the united states at our border. we'll ask judge napolitano about that. >>> beto o'rourke says living close to your job is a right and not just a luxury for the rich. where did he get that from? ashley: what? stuart: what will napolitano say about that one. he is next by the way. ashley: a lot. stuart: the feds are set to ban e flavored cigarettes. there is outbreak of vaping related illnesses. six people dies. tobacco kills hundreds of thousands every year. should we try to ban or restrict a product that could help people kick the cigarette smoking habit? more "varney" after this. i get it all the time. "have you lost weight?" of course i have- ever since i started renting from national. because national let