the banks did deals in america, too, in places like birmingham, alabama, seat of jefferson county. >>they came down here like sharks to raw meat in the water and... took advantage, full advantage of the opportunity that was here to make a lot of money. >> narrator: jefferson county had a problem. in 1996, it had squandered $2 billion to build a state-of-the- art sewage system. people were left with sewers to nowhere and huge monthly bills. >> if my bill is $30, i now have to pay $90. most of the people in this neighborhood are on fixed income. so even if you're paying $70 a month for water and sewage, and that $700 a year, that's pretty much the sum of their checks for the month. >> narrator: in 2002, the county was looking to refinance their sewer debt by issuing another $3 billion worth of bonds. >> the jefferson county sewer financing in $3 billion worth of borrowing over a two- or three- year period would be a huge financing at that time in the marketplace. it would be a huge financing today in the marketplace. those numbers gets wall street's attention. >> narrator: one banker wh

meantime, creditors of alabama's jefferson county say that county is too slow on a workout plan for ending its historic $4.23 billion bankruptcy. if jefferson county fails to meet a workout plan plan fixed by a federal judge, the u.s. biggest ever chapter 9 municipal bankruptcy could be dismissed. this is happening across the country. >> san bernardino is one of the cities we talked about the other day with rick scott was on -- you know, he turned down the high-speed rail money from the federal government and they didn't. jerry brown is going ahead full force in one of the cities we said, you know, indio near palm springs and san bernardino, there may be a time when someone wants to go between those two cities. what if you go and you don't have high-speed rail to get there. california will take care of that and make sure -- every city should have a monorail. every city. have you seen the simpsons? sam is coming to town from the administrati administration, sam huckster -- >> i would like to take a monorail here every day. >> it's around the city. it's not here. every city needs a monorail.

, he described how jpmorgan bribed city officials in jefferson county, alabama to get exclusive rightsnce its new sewer system. the project was supposed to cost $250 million, but the county ended up owing $5 billion in debt. an interest-rate swap was one of the tools jp morgan used. matt taibbi told juan gonzalez and i how it worked. >> it sounds very complicated. imagine the of a variable rate mortgage so you're paying a mortgage where the payment rises or falls every month along with interest rates. that is risky. so you may want some certainty in your rates. you go to your bank and say, i will agree to pay you a fee if you take over my variable interest payments and give me six payments. basically, you pay the bank a fee to assume your variable rate risk. you are swapping rates. what happened was, jefferson county had variable interest rates on some of the bond deals it had done and wanted fixed rates, so went to jpmorgan and paid them fees to get their fixed rate. >> so how did it blow up then? >> first of all, it costs you something. every time they went and did a swap, it pushed

cutting back on cops on the street and turning off city lights just to pay off the bank's chairs jefferson county eventually filed for bankruptcy one of the first american counties officially looted by wall street other cities of follow but now one city is fighting back. back in one thousand nine hundred eighty goldman sachs gave the city of oakland a deal on its debt saying it would convert the city's hundred eighty seven million dollars in debt to a new fixed rate of five point six percent over the next decade though thanks to the economy tanking interest rates plummet meaning the city of oakland is now paying a much higher interest rate than it would have before goldman sachs stepped in oakland has now paid twenty six million dollars more than it should have and goldman sachs is demanding more than fifteen million dollars more in fees and penalties or other rolling over becoming a miss will slave to wall street oakland is fighting back last week the oakland city council voted unanimously to terminate the bad deal the city had goldman sachs' resolution was simple yet very strongly worded saying

new warnings for washington county, extreme northern jefferson county and a new severe thunderstorm warning frederick county, virginia, and hampshire county, west virginia, as these storms continue to move on down to the south and east. very strong storms here, but we're not going to see widespread damage like we did the other day. we could still see winds upwards of 60 miles an hour, more toward the south. let's zoom in and i'll show you where they are right now, just to the north and west of frederick county right along virginia and west virginia and moving into the panhandle of west virginia towards the haguerstown area. seeing these storms move to the south and east at about 15 to 25 miles an hour. more storms moving in towards faulkier county around warrenon and more back to the west making their way in towards shenandoah valley county, some of you around the luray region. this is a line of storms making its way our way. i do expect these to kind of sizzle or fizzle out as they make their way into our region. hopefully that will be the case here. but we do need to see some rain and a l

this actually stretches all the way in toward jefferson county, west virginia, cross junction, northern frederick county, virginia all moving to the east and a little bit of lightning at 5:22 near the virginia-west virginia border. another stop taking us to huntington county. south of dunkirk, north of prince frederick. even coming out of harrisonburg, culpeper, make fauquier -- maybe fauquier county, orange, you'll see some of that as well. temperatures this morning still warm. they're not in the 80s but the 70s. we'll have highs in the 80s the entire week. right now still wet out there on our michael & son weather camera. 75 at national with a northeast wind at 15. dew point 72. so it is still rather muggy with the rain around. we're seeing a lot of showers and storms stretching from missouri actually to nebraska right through the ohio and ten valleys. -- tennessee valleys. that's the front that came through here and will continue to come through. we'll have the showers and storms with us for a few more hours this morning but looks like the better chance this afternoon will be south o

also some heavy rain in the virginia andwest ining into charlestown jefferson county. light to moderate rain is pushing eastward and along 70. more off to the west as it east and moveush on through our viewing area this morning. think we will see a break in action late this morning and around once town. 76 in washington. muggy to the south. rain will decrease today. expect a few thunderstorms afternoon and this evening washington. atleys will be in the 80's -- 80's.we will be in the >> all traffic is being de toward across the memorial bridge. the crew with the chainsaw has arrived. northbound on the george washington parkway is closed. not a big deal. a pickup truck has spun out. be careful 70 eastbound. traffic is unable to get through. is light in volume ray.plenty of road sp >> you make that sound exciting. theirupport centers have today. crossed >> fingers are crossed for monday. thousands of computers will not to connect to the virus.t because of the wireless carriers are being flooded for information about customers. ..3 million demands last year brave is a new

in 1870 as this election approached, he was living here in jefferson county and orchestrated this deal whereby he delivered 20,000 black votes to the republican party, in exchange for which lincoln institute got its first state appropriation. seven or eight years later it would be taken over by the state. lincoln institute was the only place of higher education that african-americans -- only public institution of higher education that african-americans could attend well into the 20th century. during world war i, many black soldiers fought and died for freedom world war 1. after the war there was an increased clammering for access to the state's public institutions, particularly the university of missouri in columbia. the state of missouri was reluctant to open that institution to african-americans and they offered a counter measure. and that counter measure was in 1921, they transformed lincoln institute from institute to university. they change the name. and said to african-americans, now you have a university. the lincoln university of the 21st century, really in many ways traces ori

jefferson county in alabama. that was probably the next largest that we've seen in history. can happen. especially in this type of economy. so if the city hasn't prepared, haven't done due diligence and things they need like cutting, reducing spending, not necessarily investing in a stadium where it wasn't necessary or they don't have a plan to get the return, you can see it happening. now we're seeing people get the idea that we need to cut big contracts. we need to make sure that we don't have these big health care plans that -- it's going to actually be damaging to a lot of people as far as city workers. people that wanting to to see a city, you know. who want to live in the city where the police department or fire department's being cut? >> right. a big safety concern. a lot of people, no surprise, they're not happy about. this listen to what one guy told the city council. >> we have appointed you and put our faith and trust in you. you have disappointed us and let us down. the world is watching, thank god. they can see that we're victims of a society that's failing us.

sachs bank of america your thoughts yeah i didn't read this article but of course we know about jefferson county and alabama and how they went in there but they didn't know what goldman sachs what it did with greece again it goes back to the same strategy playbook that we discussed earlier which is you go in to a community and in this game is as old as humanity itself as old as civilization or money systems are you go and you load you load your enemy up with that and then you strangle and then you make them do what you want and that war you just buy their assets on the cheap i mean that's that's what's going on and you know i was reading about this few years ago talking about how the u.s. debt is illegitimate right this debt was forced upon us to bail out the banks which caused the crisis in the first place so at some point humanity and whether it's greece or here ireland or whatever needs to step up to the plate and say no i did not voluntary accept the stat we need to write this stuff off period now the popular dissent in the us is burning nonexistent against this type of loan sharking predato

and we do have some showers up around berkeley and jefferson county.our seven-day forecast is coming up in just a minute. >>> the nats must be basking in the glow after the huge win. >> i think they're all feeling good after that all-star vict y victory. >> bryce harper, gio gonzalez and stephen strasburg all made noise last night. harper probably wasn't as sharp as he would have liked, but in the end, it doesn't matter, as the national league just rolled. the nats all-stars getting early love from the crowd. there's harper and stephen strasburg. gio gonzalez tied for the major league in wins. bases loaded. pablo sandoval, he takes justin ver left-hander to deep right. this is a near grand slam after it bounces off the base of the wall. three runs come into score, and 's 4-0 national league. in the third, here comes gio. gets hamilton to ground out into the double play. he allowed one hit and a walk. bottom of five now, the kid bryce harper in left field. mike napoli pops it up. harper says i got it, i got it, where is it? c'mon, harp. that's a clown c

where fort collins is and the two counties jefferson county and arapahoe county. talking to voters there i found what you would think of as the in voters, voters who voted for george w. bush during the 2000 and voted for obama in 2008, some high income voters who didn't like what obama was saying about the $250,000 expending the bush tax cuts. i found voters who are saying i think i might go for mitt romney this year after voting for obama four years ago. the reason i wanted to talk to hispanic voters is because what's interesting and happening in the polls in colorado is as mitt romney is gaining among independentents you see obama widening his lead on latino voters. this is on the votes in black month about limiting deportation for young people. i wanted to go see if that has sort of ignited enthusiasm on hispanic voters and i was surprised to see not at all. i found voters who voted for the first time in 2008, really exspite to be a part of history and has been absolutely deflated and unexcited about what obama has done. when you talk to hispanic voters in colo

around jefferson county, that is denner have. here is jefferson, county southwest of denver.hoe county. president obama cleaned up on all the counties. mitt romney is way out here in grand junction. this is mesa county went two to one for mccain over senator obama four years ago. why is mitt romney out there do you believe? >> that is a good question. this is one of those, people are surmising this is likely to be a base election. so you want to get out your voters and one of the things that we've seen in the "washington post" abc poll and other polls that president obama, retains an enthusiasm advantage over mitt romney. so, perhaps that is explained by the fact that mitt romney is there because he wants to get republicans, get conservatives, who are already self-identified republicans enthusiastic about his bid and showing his face out there does that. bill: drive up the numbers in rural areas. hold onto that theme. steve fenn hayes, thank you from washington today. nice to see you. >> anytime, bill. bill: martha? martha: there is a new survey out of doctors and what a larg

they have swat team members from denver, denver county, adams county, jefferson county, aurora police, and denver police all here on the scene along with fbi, atf agents. they are making sure this apartment was not booby trapped, as i mentioned and did not have more explosive devices in it. apparently the suspect has made assertions that in fact he did have more bomb making materials in his apartment. so they are being very cautious and they are checking very methodically before they send the agents in. they are making sure all the residents are safe. they have evacuated them about the last two hours and two buildings that are just adjacent, though the south of the suspect's residence, they have evacuated those buildings as well. a lot of the people ironically are sitting out in front of their apartments in lawn chairs, watching the activity, like it's a friday morning movie. a tragic movie as it were. >> jon, this is tony, i want to make sure i'm understanding you correctly. sounded like you said, the police have been inside the apartment, and there is no -- is that right? >> reporte

for a larger tactical team and agencies to respond from the denver metropolitan area and the jefferson county sheriff's office. i actually even requested assistance from the colorado national guard. of course, they're an hour and a half away. >> in the meantime, the four to five bulldozer is destroying the town. and there's nothing the sheriff's department can do to stop it. >> hear shots fired. >> our primary purpose at that point was to try and just evacuate the town so that nobody got hurt. because we knew that our armament was very ineffective against it. >> while the residents flee, trainor tries to determine who is unleashing this wave of destruction. >> we were notified that the individual who was driving this bulldozer was most likely marvin heemeyer. >> marvin was a commoner around town. he was well known. people knew him. many people considered him a friend. >> i met marvin heemeyer back in the 1990s. he ran a muffler shop in the gramby. and knew him just as a businessman. >> the motive is becoming clear, heemeyer's been harbored deep-seated grudges against some prominent town membe

did the same from harrisburg, pennsylvania, to jefferson county, alabama.irman white house council adviser, austan goolsbee? was this a storm you saw this coming? >> in a way, everybody saw this coming and in a way it still a bit of a surprise. the states and the cities' finances usually lag the national economy by about a half year or a year. so the fact that the beginning of this year with some of the events internationally, we slowed down some, it's not a surprise that cities would get in trouble. but having so many come up all at once, it is a bit of a surprise. >> the logical next question is, do you anticipate more bankruptcies in the months ahead? >> you know, if the economy doesn't speed up more than its modest pace, yeah, probably so. >> we looked in every single city that's declared bankruptcy in the past two years, did receive stimulus funds. did they just use those funds as a band-aid on their budgets, delaying the inevitable? >> it wasn't necessarily a band-aid but it was a lifeline. it was important. that was the goal of the program, to try to

mammoth lakes and stockton, also in california, before them it was central falls, rhode island, jefferson countyarrisburg, pennsylvania, the list continues. what in the world is going on? companies go bankrupt all the time. but what happens when a city goes under? in reality, the two aren't that different. companies file for what is known as chapter 11, a provision which enables them to renegotiate deals to downsize, to fire people. but filing chapter 11 also gives them the option of liquidating or breaking up. that would be essentially impossible for a city. it also happens to be unconstitutional. cities go for chapter nine. now, naturally we assume all bankruptcies are a bad thing. they're y they're humiliating, they impact business. the situation is far from ideal. it is not without its benefits. take for example san debernardi. its creditors, workers and retirees were unwilling to help out. >> may i have your votes please. >> the best the unions were able to do is offer what they thought was a major concession, allowing newly hired public safety workers to retire with 90% of their salary at

in jefferson county, west virginia, there it is on i-81, berkley springs we're seeing some of the showers come out east here south of more continuesburg north of winchester. we'll head south toward virginia as well. the shenandoah valley coming into the park. there's amissville coming toward warren tun, culpeper all moving toward the east. watch out for some of this moderate to heavy rain. calvert county it's generally in the bay affecting the eastern shore. your temperatures this morning are running in the low to mid- 70s out there. so a lot more comfortable than it has been. looking outside on our on michael & son weather camera, our lens is all wet. 76 degrees with light rain being reported at reagan national. a wind out of the north, northeast at 16. a cool breeze for us relatively speaking. the humidity still way up there at 85%. the big picture, you see how the front is stretched out from east to west. that's why we're seeing the showers and storms. they will be pulling south of us here, even by noon most of it is going to be south of d.c. and less of it as well. so a yellow alert t

. >> areas of rain right now in county, loudoun county, jefferson county and the east.t to approaching the beltway. midst of the's right now. 73 in college park. in the 80's all week long for high temperatures. bit of sunshine this afternoon. more spots south of washington. daily storms today in an unsettled weather pattern. >> thank you and thank you for ♪ [ cheers and applause ] >>> and a whole bunch of people out there in times square to celebrate the start of the week. very excited. glad the heat breaking a little bit. get all the way to the 80s. we've got brand new once out there. a lot of people out there celebrating. we're going kick off a big week here. >> and we're going play the fighter. because jack osbourne is here. look at his baby girl. he is a brand new dad. he was public with his diagnosis of m.s. he's inspired people with his great spirit. he's here to talk about it. he's got exciting project down the road and currently. >>> a loft moms lashing out at miranda kerr. she said she had a natural childbirth because she didn't want her daughter to be born, quote, drugged up.

jefferson. right on the border of fauquier county and culpeper county. in terms of lightning, the storms out in the mountains, they have been with it all day. there are no flood warnings right now. we have more storms out to the south with lightning as well and this is the storm pushing through culpeper headed into fauquier county. there's another storm behind that further south and some storms trying to get into southern maryland, which is good, because you guys need rain in southern maryland as well. we'll come back and track these for you live and tell you if we'll be doing this all over again tomorrow. >> coming our way from soda to breast milk, new york mayor michael bloomberg weighs in the controversy. wants to tell you what to do. but first, the governor weighs in on the chick-fil-a controversy and defends the restaurant against the other politicians that aren't pleased with him. we'll have his comments coming up next. [ male announcer ] where did all the obama stimulus money go? friends, donors, campaign supporters, special interest groups where

squads and the fbi and atf and you have denver, aurora, the sheriff's department from adams and jefferson countiess just an incredible scene here. now they have aerial hoses aimed at the apartment for when they detonate this device. they say that by evacuating the building, they did enough decoration to make sure that no citizens are injured when this device explodes. we are not sure how long before that comes. we will be here reporting from the scene of peoria boulevard and 17th street in aurora, colorado. rick: you mentioned a singular device. are they worried they could have sprinkled -- you know, that he could have sprinkled several devices throughout the apartment >> police chief dan oates said they would not take questions. they will have a briefing sometime after 11:00 o'clock this morning. we are still waiting for that information. what they said was a sophisticated device. that could mean come as you indicated, it could be one or more devices that are set to blow up when the door is open. i think what they were lucky with his vet when they built -- blew out windows, those devices are not

everybody has probably heard of jefferson county, alabama going bankrupt.onder if they know that a j.p. morgan official was convicted of bribery. i wonder if they know that pittsburg and kentucky, for a couple of examples, had big losses on interest rate swaps that were structured so that the risk was all on the municipalities and non on j.p. morgan. guest: i think there are two parts to what you talked about. one is that states or trustees of pension funds in an effort to improve the yield did get talked into, by wall street, to buy some fairly esoteric securities by interest rate swaps. i know new york state lost a lot of money doing that. other states did as well. i don't think there was anything dishonest about it, per se, it was just an important set of decisions to make. second question is -- the creation of these derivatives, these mortgage-backed securities and piling one set of credits on to another, what did that have to do with the financial collapse in 2007? with the states be in the same trouble they were in had been not had those things? proba

northern loudon county and new jefferson county, west virginia, they're getting those and they're headinge immediate metro, just light rain now. later today a smaller chance of an additional shower or some thunder with highs in the upper 80s. a lot of clouds around. and then on tuesday, 50% chance monday morning. it's the 9th day of july, 2012. you know, the folks we're looking at right now picked a really good morning to come to new york city and join in sightseeing because blistering temperatures from last week have gone down. we're at 77 degrees. looks like we're going to get a little bit of a break for the next several days. out on the plaza, i'm matt lauer with savannah guthrie and al roker. coming up, a little boy we've been following for the last several years really. >> following and falling in love with, 7-year-old max page. everyone remembers him as the little darth vader in that super bowl ad from last year. max was born with a congenital heart defect and last month underwent open-heart surgery. how is he feeling right now? he will tell us in a live exclusive interview. there h

thomas jefferson high school for science and technology or t.j. together they filed a complaint against the county school system. the report indicates this year's class has 476 students, 43% are white and 64% are asian. 8% are multi racial. only 2.1% are hispanic and a bleak .6% or just 3 students are black.

county school. the naacp is filing a complaint against the admissions policy at thomas jefferson high school for science technology in alexandria. erika gonzalez has more on the racial divide. >> reporter: martina holmes claims that the fairfax county public school system disnates. >> the poor latino kids are not been identifying. african-american kids are not being identified. >> reporter: and these students are underrepresented at the crown jewel of high schools in the country. thomas jefferson high school for science and technology or t.j. together they filed a complaint against the county school system. the report indicates this year's class has 476 students, 43% are white and 64% are asian. 8% are multi racial. only 2.1% are hispanic and a bleak .6% or just 3 students are black. >> i haven't read it but i think what they bring up is a valid concern. >> reporter: the public school board member agrees with the complaint and says the remedy could be in the pipeline that feeds into the process to get into t.j. >> in addition to focusing on early education we've put more money to summer school and to in

added that the group filed a civil rights complaint against thomas jefferson high school for science and technology in fairfax county. it accuses the school of shutting out a black and latino students as well as students with disabilities. school officials have not commented on this complaint. >> in the aftermath of a series of powerful storms va's governor bob mcdonnell is requesting federal disaster assistance -- virginia's governor bob mcdonnell. the storm is back on june 29 and 30th and july 1 occurred during an extended heat wave contributing to the 15 deaths. more than 1 million customers in virginia suffered power outages. >> 73 degrees. still ahead -- the nats explode and extra innings. >> meet the man planning to jump from the edge of space. >> a public hearing is scheduled for today in new york on mayor michael bloomberg's proposed ban on largest agreed -- sugary drinks. he said the consumption of sugar redresses a key driver of obesity epidemic and 6800 new york kerr's will die this year because they are obese are overweight. about an hour later more than 100 people gathered outside city hall to protest t