incentive to take your business and become a lender, a car lender and home lender, was such easy money at gmac why would you bother trying to figure out how to make a car when you can get stinking rich beyond all comp hex he thinks running a lehning business and when you blow up, everybody's like, oh, the cars. no, not the cars. you had a car company that got into a financial scheme based on home lending and cars. speaking of scheme, charlie rangel being punished. the new congressman forced to it is and absorb a tongue lashing, oh goodness, today from the ethics committee. >> for the discredit mr. rangel has brought to this house -- >> his kaukt failed to meet the standards. >> the arrogance of the response cht. >> public office is a public trust. respondent violated that trust. >> chief council recommendingç censure for rangel after he was found guilty of 11 different counts of misconduct. rangel insisting he's not corrupt. >> you could put in that report no matter what you agree the sanction to be that your member was not corrupt and did not seek and did not gain anything personally for the

gm went over the cliff and had become a bank with mortgage financing and gmac. that's what pulled it under. now that it can focus on cars it will do what we need for the economy which is produce jobs for real people. >> absolutely. >> that is a benefit of the bailout. >> one of the things we do in the bail is restrict any new of these industrial banks because you get a boring of the industry. so that's an important part of what was done with general motors. >> congressman frank, thank you very much for the wonderful conversation. >> thank you. >> later in the program should a college student body president be deported for not being a citizen? we'll be right back. stay with us. >> the ford fusion last year was rated higher than the honda accord and the toyota camry. i believe that's true that consumer reports rated it as a better vehicle. it's not impossible for american manufacturers to make great cars. it is a fact, however, that they haven't been making good cars for a long time. patient: and that's why yellow makes me sad. i tnk. sarge: that's interesting. yo

. >> employees, gmac mortgage and other major loan services testified to signing thousands of foreclosure documents even though they had no knowledge of the underlying facts. if these reports reflect a disregard on the part of banks for the legal requirements of a closure, that alone would be unconscionable. >> lehrer: in the worst case scenario the panel says courts could block foreclosures, banks would be left holding bad mortgage loans that would cost them billions of dollars. that in turn would deepen disruption in the housing market. but in the best case, the oversight panel acknowledges concerns about mortgage documents may prove to be overblown. a view embraced by the financial industry. this afternoon executives from two major lenders j.p. morgan chase and bank of america appeared before the senate banking committee. bank of america is an underwriter of the newshour. the committee pressed them on today's report and their plans for managing foreclosures going forward. >> many believe that the robo- signing errors are the tip of a much larger iceberg that they are emblematic of much

gmac so has over $17 billion in taxpayer funds.hat are you doing to make sure that institution supported by taxpayers are not acting improperly in? >> as i know that the panel knows, treasury has an investment in gmac --but immediately upon learning of the alleged robo-setting issues, we continue to be in touch with gmac management. they have reported back that other than the time to correct some of those the documentation problems, they don't see it a major risk in their system, but we are watching that very closely and take it very seriously. >> so they are not sending out anyone to find out who actually holds the mortgage signings? any type of physical follow-up on the fact of their mortgages out there? that they have them and actually have title to the land that they are trying to foreclose on? >> at this time we are supporting all the agencies that are doing investigations of those then are monitoring closely. y is not doing anything independently? you just take the word of the institutions and banks that they do have document

the mortgage business is conducted through gmac mortgage. as you have heard, there were certain unacceptable flaws in our execution and the authorization of certain affidavits in the judicial foreclosure process. the errors we have found should not have happened, and we have undertaken a significant and expansively mediation effort. initially, our real mediation effort focused on those affidavits. we then decided to go further. we have a dedicated team, independent of the foreclosure department, that is taking a second look at each loan to ensure that home ownership preservation options were offered in addition, we have retained national council to oversee the mediation efforts, and to review our policies and procedures related to foreclosure in all 50 states. we also brought in price waterhouse cooper to evaluate those policies and procedures across the board. we have increased staffing, and provided additional training. at this point in our review, we have not discovered a single instance where the foreclosure sale was unjustified. by that

that is especially considering that gmac follows under his jurisdiction. as far as i know, that plant is still open. we talk about saving the industry, but it is not that simple. honda and toyota dealerships around the company -- country are owned by americans as well. one honda dealer was upset about the money the government gave to gm being used to subsidize the purchase of gm cars. he was finding the american government was subsidizing his competitor and harming his own dealership. the uaw wanted them to do it. one thing that is absurd about this is that among the secured creditors who got fleeced in chrysler were the indiana firemen and teachers retirement union. the problem they had is that they were not as politically powerful as the uaw. the uaw got 55 cents on the dollar. the firemen and teachers to 29 cents on the dollar. i wrote an op-ed where i said this is the kind of thing that hugo chavez would do. i got an outraged emailed from a lawyer in new york and said it is an insult to chavez because when he takes their property, he compensates them f

especially considering that gmac falls under his jurisdiction. as far as i know, that manufacturing plant is still open. not to mention the talk about this saving the american auto industry, but it is not quite that simple. honda dealerships, toyota dealerships around the country are owned by americans as well, and one report was that a honda dealer was upset that all the money the government gave to gm was being used to subsidize the purchase of gm cars, and he was finding the american government was subsidizing his competitor and thereby harming his own on the dealership, which of course was his dealership and his employees. why? because the uaw -- it was really because the uaw wanted them to do it. one of the things i think is absurd about this is that among the secured creditors to got fleeced in chrysler, were the bondholders, teachers, and fire workers union. the uaw got 55 cents on the dollar. i were a wall street journal op- ed where i said that this is the kind of thing that hugo chavez would do, and i got an outraged e-mail from a lawye