from certain lawsuits and making it easier to raise money from investors, allowing companies like jp morgan chase and bank of america, goldman sachs to keep benefits normally reserved for the healthiest companies. republican senator charles grassley told the times it's hard to see why the sec isn't using all of its winters' property. by waving, no wonder recidivism is such a problem. >> the purpose of taking away it not to punish a company not seeing times that waivers aren't being granted because the companies don't ask when they know the answer will be no. meanwhile timothy geithner is defending the financial reforms. he noted tighter regulations are already making the financial system stronger and safer although there is still more to be done. >> much of the excess risk taking and careless and damaging financial practices that caused so much damage to the american economy have been forced out of the financial system. these gains, though, will erode over time if we are not able to put these full reforms into place. >> apparently the system isn't strong enough for new york's attorney gener

here, you have this guy gantic companies like jp morgan chase, they are cereally caught and they are allowed to continue engaging in the same kind of business activities and they give them special waivers to go out and raise money? it's unbelievable we do not show the same kind of consideration to other kinds of citizens. >> the sec, therefore, is not using its powers deliberately doesn't that blow a hole in president obama's argument that the sec should have more power? >> again, i completely agree with senator grassley. the sec and generally speaking, the financial regulate ors have enormaus power. we don't need action up and downed power. they just haven't done the job. we need new people to come in there who are actually going to do the job of prosecuting and enforcing these rules. >> one of the people trying to prosecutor, new york's attorney general knight snyderman. >> this for the mers violations is so long over new. it's the electronic mortgage registry, a gigantic scheme to evade taxes and commit perjury and fraud by, you know, failing to properly register mortgages. you ha

2008 y diciembre del los bancos involucrados son: ally financial inc., bank of america, citigroup, jp morganrdos, quienes esten al dia en sus pagos hipotecarios en los ultimos 12 meses, tambien se beneficiaran.... manuel ochoa/ ledc "la clase media muchos de ellos que han quizas lidiado directamente con el banco o que personas que no han podido aplicar al plan de obama se van a poder beneficiar con este programa..." pero quienes critican la medida dicen que solo aplicara a una fraccion pequena de la poblacion ya que solo involucra a prestamos hipotecarios privados... claudia uceda/univision washington "y la implementacio los estudiantes de la region estan entre los mejores del pais.. detalles mas adelante... maÑana viernes se incrementa la nubosidad y existe probabilidad de aguanieve en horas de la noche... quedese en sintonia para informarle el pronostico completo... hay buenas noticias sobre el rendimiento academico de estudiantes de secundaria de nuestra region... maria rosa lucchini nos dice de que se trata.. veronica quiere la mejor educacion para su hija... "para uno de madre al menos

irresponsablemente y tendrÁn que corregir sus errores, luego de 18 meses de negociaciÓn, bank of america, jp morganros acordaron fa gar la cifra de 25 mil millones de dÓlares luego que se descubrio que utilizaron fraude para ejecutar los embargos. >>> 10 mil bmillones de dÓlares para ayudar un millÓn de modifi prÉstamos 7 prÉstam prÉstamos 705 mil personas recibirÍan un pago hasta 2000 dÓlares algunos lo consideran un insul insulto. >>> el valor promedio de una casa es 180 mil dÓlares y recibir mil 500 a 2000 dÓlares luego que te embargaron injus injustamente es un insulto. >>> california y la florida, recibirÍan la mayor cantidad de dinero, los prÉstamos garantizados no estÁn incluidos el plan establece nuevas reglas para proteger a las familias que actualmente estÁn en peligro de perder sus casas. >>> antes de seguir con el embargo el banco tiene que tratar de trabajar con la familia para ver si hay otra soluciÓn. >>> chl el acuerdo negociado por el departamento de justicia y fiscales estatales aÚn tiene que ser aprobado por un juez federal, pero estipula que bancos tienen 3 aÑos para cumplir con

if approved, wells fargo, bank of america ally and jp morgan chase would reduce the loans to a million borrowers. >>> and in a central valley plane crash, it happened on sunday and the 52-year-old pilot died on impact. now the pilot stole the plane from concord's airport. the owner is actually a walnut creek insurance agent. he said his plane was missing on saturday but he didn't know what happened until the faa called him on sunday following the crash. a man suspected of killing a santa rosa woman after he killed somebody in stockton. he is the man suspected of killing marie brooks in her home saturday morning. it happened on interstate 5 and pulled him over. she got out of the car and told officers to shoot him. ellis ran into traffic and police have not identified the victim. >>> and 30-year-old brandon mcdaniel was a wrapper who performed under the name sutter boy. he was shot to death on saturday on 105th avenue near 9th street in east oakland. no arrests have been made. >>> a warping and they are telling their students to be on high alert. the three things students are being urge

2008 y diciembre del los bancos involucrados son: ally financial inc., bank of america, citigroup, jp morgan y wells fargo. a diferencia de otros acuerdos, quienes esten al dia en sus pagos hipotecarios en los ultimos 12 meses, tambien se beneficiaran.... "la clase media muchos de ellos que han quizas lidiado directamente con el banco o que personas que no han podido aplicar al plan de obama se van a poder beneficiar con este programa..." pero quienes critican la medida dicen que solo aplicara a una fraccion la implementacion de este programa podria demorar, se estima que para que los bancos notifiquen a los prestamistas si estan calificados para esta ayuda podria demorar varios meses. hay buenas noticias sobre el rendimiento academico de estudiantes de secundaria de nuestra region... maria rosa lucchini nos dice de que se trata.. maria rosa... cuentenos..!! asi es norma, veronica quiere la mejor educacion para su hija... "para uno de madre al menos que ellos hagan lo que uno no hizo, pues salir adelante" dice sentirse satisfecha ya que la pequeÑa briana asiste a una escuela en maryland... y

households facing the threat of foreclosure, including five biggest banks, bank of america, wells fargo, jp morgan and allied financial. the money available could run as high as $25 billion, if all 50 states approve the deal. several states including california, new york, florida and del aware remain undecided. >>> verizon teaming up are red blocks. they are creating a video streaming service, launched in the second half of the coming year. those close to the project say the service will offer subscription services and more and available on smart phones, tablets and it's old school now , the tv. the service will be available to everyone, not just to verizon customers. here is a figure for you, what recession? americans are expected to shell out $17.6 billion for valentines day. survey predicts the average person will spend 126 bucks, up 9% from 2011, jewelry purchases expected to already rake in around $4 billion. >>> checking on stories around the nation this morning, a pennsylvania college is taking heat for what they are offering in campus vending machines. the vending machines offer the emerge

bank of america, wells fargo, jp morgan chase and citi group are on board but california, new york and several states say it let's banks off the hook for criminal behaviors. >> i'll never live long enough to see any equity. i'll end up having to short sale the house. >> the attorney general says negotiation wtz while the white house are closer than they've been but would not elaborate if a deal is within reach. >> and while we're talking about homeowner ship michael fin gee looking at mortgages. >> and there is a case of a family that got an impossible loob loan. >> and interest is owe often a deal to be had. in the real estate market it's easy to find great geels. and. >> we need to find a lender and not charge an arm and a leg for it. >> this broker says the rules are loose yeng up. have you to owe know where to look. >> i didn't know. >> this team is a good exammel. and she's wrapping one up. >> i zront a regular paycheck is what mortgage lenders love. my mother is retired and living on fixed assets. >> these are not the people banks are lining up to lend to but with this guidance,

. >> reporter: the deal involves bank of america, wells fargo, jp morgan chase, citigroup and allied financial. while the deal brings relief to some millions of others are still at risk. >> the banks have three years to fulfill the terms of the deal. 49 states have joined the settlement, including maryland. officials say the state will receive $960 million as part. deal. >> how did yardly love die? that is the focus today. wjz and adam may are live outside the courthouse. good afternoon. >> reporter: good afternoon, don. very detailed information here about the condition of yardly love's body, exactly where it was in her apartment and what kind of injuries she had. also lots of information today about first responders efforts to tray and save her life and meanwhile, the defense attorneys, they are picking apart all of these details trying to lay the ground work for their own theory. >>> former lacrosse player george hugley seen here walking out of court does not deny he was involved in an altercation with his ex-girlfriend in may of 2010 but his defense attorneys argue her death insi

it would involve wells fargo, bank of america, citi and jp morgan chase. some of it would go to foreclosure prevention measures. other provisions could lower interest rates for home owners. some may get payouts of up to $2,000. pierre thomas, abc news, washington. >>> and details are being worked out right now. it could push the announcement back to tomorrow. the deal would be the biggest involving a singl industry since the 1998 tobacco deal. >>> welcome news for air travele travelers. going through the security process will soon take a lot less time. it will only affect certain passengers. >> for years, travelers have faced airport security lines. >> i hate taking off my shoes, my belt. pretty soon i'll be stripped naked. >> reporter: the tsa has unveiled a new program. >> this is our risk-based approach to security. programs that not only help us make sure the aviation environment remains safe but also makes travel more pleasant. >> reporter: from boston and new york, miami and atlanta, chicago and denver, seattle, san francisco, in most major airports

there are five banks involved, bank of america, jp morgan, chase, wells fargo, citigroup and allied financial. as part of the deal they would reduce loans for about 1 million households and hundreds of thousands of people who lost their homes to foreclosure would now get checks for about $1,000. >>> lincoln park in falls church is closed for a major remodeling project. crews are preparing to install a rain garden. the first phase includes removing five white pine trees. and once installed, the rain gardens will absorb storm water and that should ease flooding problems and improve water quality. >> a lot of rain gardens going up across the region. good stuff. >> very good thing. >> very good thing. it's so nice outside. >> it really is. >> sat out on the weather terrace and enjoyed it. bright sunshine and low wind temps in the 50s. i'll tell you now, a little bit of wintery weather headed this way as we head into tomorrow, especially in the afternoon and evening. so the day planner for you this tuesday afternoon, lots of sunshine, temperatures going into the mid-50s. you know, some of the car

we had a large investment recently by jp morgan chase into our loan fund. we are looking for businesses that are looking to put in more energy-efficient equipment or retrofit or remove toxins from processed here we have been lending to drive cleaners that are giving you more environmentally friendly products, truck drivers putting in new exhaust systems. finally, just to give you kind of a scale of what we do, mark mentioned the sba right guaranteed 275 loans in a year. we expected to 50 or 60 in san francisco this year, and more like 250 or 300 throughout the bay area. if you are hearing something interesting and you want to talk, the dominant in the purple suit has been handing me question cards out. >> i am the ne community federal community union. we are like a bank except we are nonprofit. we are 501 c 14. we are insured up to 250,000. we build credit. what we do a lot is one-on-one counseling. we are also a part of the bank of san francisco, so we do pay their lending -- payday lending. we help people build up their credit before helping them to get a

jp morgan got into the green, bank of america and morgan stanley have gotten into the green. we pulled back a little bit. considering how big of a run these financials have had already, we talk about the leadership role they've been, it's amazing that we are just pausing. why aren't we selling off more? >> grasso, what's do you see from your perch on the floor today? >> the day after the super bowl, i'm sure guys are spending a lot of productivity time discussing the game. i wouldn't read too much into today's actions. it's still in the bullish camp here. 1370, we go back to the may highs from 2011. after that it's off to the races. every sell-off, can't gain any steam whatsoever. >> josh brown, what are you buying today if anything? >> the thing to keep in mind here, we're buying the usual favorites, conoco phillips, berkshire hathaway. the thing to keep in mind, we're looking at a monday after a huge jobs report and a huge accompanying rally. if you go back and look at the history of post-nfp mondays, they're typically subdued. i wouldn't say this is a pop, i would say the

bank of america, jp morgan chase, citigroup inc., wells fargo and allied financial.ce tag is expected to be about $23 well. >>> a teenager is brutally attacked. in south africa. >> it's called a hate crime and why it took five years for a punishment to be carried out. >> what caused a train derailment in chile that left the driver nursing wounds? you're watching "good morning maryland" as we head to break, a live picture of the inner harbor. denny's new sizzlin' skillets are here for a limited time. so strike while the iron's hot. starting at $4.99. only at denny's. america's diner is always open. hands that feel soft and silky smooth! ooh...she's got the look. what's her secret? the gloves? dawn? i don't believe it. [ male announcer ] it's a dishwashing sensation... dawn hand renewal with olay beauty. it contains revitalizing proteins to help smooth skin on hands -- improving their look and feel in just five uses. [ sponge ] soft, smooth... fabulous! you're quite the trendsetter. [ male announcer ] dawn does more... [ sponge ] so it's not a chore. >>> a hate crime r

the cohead of north american mergers & acquisitions at jp morgan joins us.ible january for m & a compared to last year which was good in the first half. >> very good. >> are you seeing more activity? is this year going to be better at least for the first month? >> we're seeing a lot more activity. january is a reflection of october. if you don't start a deal in october you don't print it in january. so we hit an air pocket that was substantial with the european crisis and folks didn't start deals and so we're not printing deals in january. that will change. as we proceed through 2012. because the fundamentals are off the charts, david. >> what do you mean by that? >> what i mean is there is $2 trillion worth of buying power in the s&p 500. if you back out the nonfinancial firms they've got a market cap of $10 trillion. they have the ability of buying power including all the excess cash and access to debt and very cheap debt of $2 trillion. >> so 20%. >> 20% which is just by historical norms gigantic. the other thing that i would say is that when you look at

bank of america, jp morgan chase, wells fargo and citibank and allied financial have agreed to the settlement. it would help refinancing and reserve account and checks to homeowners. the settlement grants immunity from civil lawsuits broughts by state's attorneys general. >>> you know about checked bags on planes but you're paying 50 cents for every bag a d.c. cabbie puts in his trunk. you will keep paying that fee in addition to paying higher per molerats. the plan eliminates almost all extra surcharges but raises rates from $1.50 per mile to $2.16. that fare increase also comes with a bag fee and a fee for extra passengers if the cab is a van. the plan will become law in 30 days unless the commission alters it again. very expensive to take a cab. >> sounds like the shell gate. you're not paying -- game. you're not paying it here but you will pay it here instead. >> thanks jess. there's always a way. >>> thank you for joining us this morning, caffeine is part of the morning ritual and i drink enough for you if you don't drink it. there's a new way to get a caffeine boost simply by just takin

today the federal government announced a $25 billion settlement with banc of america wells fargo, jp morgan chase, citigroup, and allied financial. the settlement allows homeowners who far more than their homes are worth to refinance at lower rates or reduce their debt. about $1.5 billion will go to 750,000 borrowers who lost their homes through foreclosure between september 2008 and the end of last year. >> this isn't just good for these families . it's good for their neighborhoods. it's good for their communities and it's good for our economy. >> the settlement only applies to loans the banks hold themselves, not to loans held by fannie mae and freddie mac that has allotted them. the state of oklahoma is the only one to opt out of the deal and will not receive any money. so let's take a look at how this money breaks down locally. the district is eligible for up to $40 million. virginia attorney general says commonwealth residents who experience foreclosure abuse will get about $479 million and another 409 million will go toward modifying the terms of existing loans and virginia will get a

do you know about the meeting with the sec, jp morgan, goldman sachs and others? >> no, sir, i wasn't involved with those meetings if i understand which ones they were. >> do you know about the meeting? >> i was aware but not involved with those meetings. >> do you know the names of those who were there? >> i do not. >> how did you find out about the meeting? >> if it's the sec meetings that you -- that you are referring to, some of this was in the public and as a general matter, you know -- >> rumor mill? >> i couldn't -- i don't recall exactly where. do you know the names of anyone that was there under oath? >> under oath, to the best of my knowledge, let me make sure i'm sure of the meetings you were referring, to i was not at the meetings. >> clearly, the october 31st meeting which you mentioned was with the sec. do you know the names of anyone that was at that meeting? rumored? firsthand? second hand? fifth hand? i want to know if you know about anyone at that meeting. >> i do not. >> did you find out after that meeting what transactions were made by mf globa

banks including bank of america, citigroup and jp morgan chase are signing off a $26 billion settlement to help struggling homeowners. let's take an early look at the markets as we get all up in your business this morning. cnbc's steve sedgwick is live in london. how big a deal is this? >> yeah, willie, this would be really big actually. talking about the numbers being thrown around, it could actually translate to benefits for homeowner, equivalent to the sum of $40 billion. basically goes back to a case rumbling over a year which surrounds practices regarding 44 closures and misservicing of certain contracts in the servicing of those mortgages. now the numbers in terms could be huge. banks will provide $17 billion in loan modifications. this could mean benefits for home enover 32 billion dollars. actually current on their mortgage payments. a huge bonus to the mortgage industry and, indeed, to homeowners who have been struggling. >> big relief, had hoping to get the housing market on its feet. >> still ahead on "way too early," an incredible finish in great college basketball rivalry.

we had a large investment recently by jp morgan chase into our loan fund. we are looking for businesses that are looking to put in more energy-efficient equipment or retrofit or remove toxins from processed here we have been lending to drive cleaners that are giving you more environmentally friendly products, truck drivers putting in new exhaust systems. finally, just to give you kind of a scale of what we do, mark mentioned the sba right guaranteed 275 loans in a year. we expected to 50 or 60 in san francisco this year, and more like 250 or

the phone number is on the screen for gm arkgmac, bank of america, citibank, and wells fargo and jp morgan. these are the banks that participated in this $27 billion deal. a tweet, won't this settlement make bank rates increase overall? what about those of us who kept up with our mortgages? >> that's part of the reason why there is a monitor, why we're going to watch this. that question comes from i guess what is a really cynical population, and rightfully so, about the banks passing on fees and losses. we see that all the time in consumer protection. we see that, obje -- obviously, of america understanding they might find another place to pass a fee on with a debit card, decided they weren't going to do that. i think this is not just about this settlement and about what we say as attorneys general, i think this is a really important consumer moment for people like that caller to say, you know, this is different ways in which we hold banks accountable, including for the fees that they charge, the prices that go up, and you do have options. look, we've had some issues with the national bank

will the ones that have positioned themselves properly for the environment, jp morgan being one of themly. >> i'm curious, when you think back, the last time you were on, you were on with david favorite. when you think back to that period, and you said you do think about it a lot, is there anything you would have done differently in retrospect? with four years of distance? >> i've thought about that a lot. the answer is actually not much. you know, once the markets froze, i mean you can go back and say, should we have done some things differently leading up to the environment we got in. you know, you can always say that. hindsight is 20/20. once the markets froze, there was really very little we could do. the liquidity environment is what pushed us over the cliff. and in retrospect, i don't think there's a lot that any one player could have done about that. >> it's both the event itself and the aftermath are, are almost black swans, they're so rare. because i was reminded, i used to work at lehman brothers as retail broker. and every sing the person that we would cold call, we would sen

you go into, you don't have a jp morgan account and your check isn't from jp morgan.ck, but walmart will and check-cashers will. or people are using prepaid, which is borrowing from yourself. or people are using alternative measures, payday lenders. which when i looked at, i used to have a glamorous job of going and doing all of these visits, so this is dated, but ten years ago, 12 years ago when i would go see payday lenders, their security deposit was a polaroid picture of a consumer. because the consumer came back so often to go back and get a payday advance. but the relationship was positive. they knew what they were, they knew what they were paying, they just needed the dough. more and more people are going to find themselves outside the financial system. same thing happened in japan in the '90s. >> and ha does that mean overall for the economy? >> it means that you have to count on, you have to believe that the high end is going to remain bulletproof and keep powering ahead. and you know, that's it will work this year. i don't know how long it works on a go-forw

gmac, bank of america, citibank, jp morgan and chase are the five banks were tayou were talking a. there has been criticism of this deal, and we want to read them. he said, you're hardly skimming the surface of this deal. it could help some people a lot individually, but in terms of the big picture, overall housing economy and housing market, it's really just a drop in the ocean of the problem. >> i don't totally disagree with him, actually, and let me tell you why. there are a lot of reasons why the real estate market in the foreclosure crisis is where it is today. it has to do with unfair loan origination, it has to do with securitization of those loans, it has to do with -- and let me tell you what this is about and what it is not about. this is focused only on the idea that if the ban-- as the banks acknowledged a few months ago was robosigning. there were unfair practices related to the foreclosures themselves. not as to why this all occurred. that has to do with originalization, securitization issues, but now why the foreclosure issues are a part of this settlement. it is a s

market strategists with jp morgan funds. >> let's talk about the dow here.does the dow look to be suggesting going forward. >> the dow has been trading at a pretty vicious sideways trend for about two years now. it's trying to do so let's use the 3% rule. if the dow can rise above that level, maybe this rally is for real and will go on. on the back of that pattern is a bearish rise that will try to take the dow towards its target. so we really have a bull and bear battle drawn right on the top. >> and in terms of fundamentals, large cap industrials dorks you think they move higher based on what you are seeing whether it be earnings, revenue, cash on balance sheet? >> broadly speaking you are right. stocks will continue the do well. >> what do you want to do in terms of the dow companies. >> i think it's part of a broadly diversified portfolio it makes a lot of sense. take a broader perspective. think about the s&p 500 50e 0. >> that's been the topic of the day. what does the chart say about the nasdaq. >> when we take a look it's trying to do something that

do you think jp morgan should use this turmoil in europe, use the position it's in, the cash cushionlsewhere, outside the u.s.? >> you'd have to ask jamie dimon that question. >> no comment whatsoever? >> no comment. jiem is very capable of talking. he talks to people like you. you should ask him. >> we will. >> we've been down this road with higher energy prices many, many times. this upper looks like it's going to be a tough one, we're givening to seegive beginning to see 4s and 5s around the country. >> people used to say if stock goes down, buyers go down and gas was at $40 then. they've been talking about that forever. was up to $150 i think. i wish it wasn't so high. i think blaming administration for the price of gas, they might as well blame him for the lack of rain in the southwest part of the country. he has no control over that. you have problems in nigeria, problems in iran, people are afraid, there's not much can you do about it. people in the industry say there's no reason for this to be at this price, it just hysteria. maybe that right. i hope it goes down. so far the

been refusing to go along with a deal the white houses about been negotiating with bank of america, jp morgan chase, and kiti group over alleged foreclosure abusz. the deal reportedly includes $17 billion to pay for principle reductions for homeowners still in their homes. and 750,000 have been pushed out through foreclosure and saying with out help, he and his wife are sunk. >> no matter what i do to make my wife happy and make it liveable i'm going to lose it all. >> and he says he bought his house at the peak and almost immediately lost the $100,000 down payment, then another $100,000 on top of that through the value of the home. >> i'm renting the house from the bank. i'll never live long enough to see equity z i'll end up having to short sale. >> he is hoping harris will take the deal and that he will be among the homeowners who helped. and if the banks write off the $100,000 he owns over the value of the house, his broker believes banks shouldn't be allowed to buy out what may be a criminal investigation. >> i won't be able to buy my way out of something that. is just my opinion. >> the

jp morgan chase, citi group, allied gnc and there are other banks expected to join in but not there yetwe're going to hear about some by the end of the week. as soon as we do, i'll let you know. our next question from joannea. she says i heard for people with underwater mortgages you'll get $17,000 taken off the principle. how will that help? figure are wrong. there is a lot of bad information out there. let me tell you there is not an actual dollar amount. bank as agreed to write mortgages down to or take away from. if you're already late with payments or if you're at risk of falling behind in the bank will consider writing down downs the principal, writing down the part to get you to a payment where your debt to income ratio is 31%, traditional number. 31%. they're not going to include consumer debt in that. that is wonderful. now, to get, if you're underwater but not behind on your payment, here is what they're going to do for you there is a 5.25% interest rate no, mortgage limit meaning all high-priced homes in the bay area are not excluded. and now, we're kind of shocked that the b

in exchange, bank of america jp morgan chase will be released from further liability related to the mortgage scandal. a former announcement is expected today or tomorrow. >>> if you go to the beach, there are some strict new rules to abide by. the county is violating and if you violate the new rules, you could be found guilty. the idea is to protect beachgoers and nearby homes. >>> they have now returned to half-moon bay and santa cruz getting shots of all the big waves out there. this is what it looked like yesterday, 20 to 25-foot waves rolled in. the movie about men and mavericks is about gerard butler which due out this fall. by the way, the wait for the big maverick surf competition continues this morning. >>> 6:20 let's check in on the commute with sal. >>> once again, we are looking at the commute which is busier, if i told you about it earlier, this flipped over car near grand avenue was in the fast lane. obviously they had to right the car and put it up on a flatbed tow truck and that was in san leandro and that has been removed and traffic has recovered in the area. moving along ta

that's right, ahead of the new consumer brewer row -- bureau, big banks like bank of america and jp morgan were accused of making tricks to have customers pay overdraft fees and they paid big payments first and it is misleading marketing about how overdraft protection works. they say customers should look for small banks that don't charge you when you go into the red. young customers seem to be hit the hardest with overdraft fees and this investigation could read that new rules about how big banks operate. allison burns ktvu channel 2 morning news. >>> nobody was hurt but that was after a student used pepper spray during recess. the incident happened yesterday at the element trail school. -- elementary school. the student sprayed pepper spray and parents were called to pick up their children. police say it appears the incident was an accident. time now 6:16, a student who was on a hunger strike has died. alexander gomez died six days after refusing to eat. he along with 31 other inmates were protesting conditions. officials are making no comment on the cause of death. they are waiting for

the banks involves are wells fargo, bank of america and jp morgan chase. >>> the entire staff will beorarily placed where two teachers are accused of abusing students. and two long time teachers at the school were arrested last week on suspicion of lewd acts and now they are being replaced while a full vision is completed. the l.a. unified school district is also dealing with sexual abuse against a school janitor. he worked at germane and a mother told police that a janitor had inappropriate conduct with her child and he is due in court later this month. >>> bay area central valley plane crash, cessna crashed on sunday just outside of fresno. there it is, the 52-year-old pilot died on impact but now they are saying he stole that and the owner is a walnut creek insurance agent. he said he discovered his plane was missing and he didn't know what happened until they called him sunday after this crash. >>> well one walnut creek bar is saving alcohol while other businesses look for other ways to curb excessive drinking and the lift bar and grill, they want to lift alcohol serving from 12:3

bank of america, jp morgan chase, wells fargo, citi group and allied financial signed on. the president had harsh words for the fraudulent practices. >> millions of americans did the right thing and responsible thing, shomd for a house, secured a mortgage they could afford, made their payments on time, were nevertheless hurt badly by the irresponsible actions of others. by lenders who sold loans to people who couldn't afford them. by banks that took risky mortgages, packaged them up and traded them off for large profits. it was wrong. and it cost more than 4 million families their home to foreclosure. under the terms of the settlement, america's biggest banks, rescued by taxpayer dollars will be required to right the wrongs. >> what does it mean? the settlement could reduce mortgage rates for one million homeowners, who owe more on their homes than they are worth. another 750,000 people who lost their homes to foreclosure between september of 2008 and 2011 will get checks for $2,000. in exchange, participating banks will be off the hook for certain types of fraud investiga

goldman sachs, jp morgan chase and also citigroup as well. many others could see their credit scores being cut by one notch as well. we're talking about the likes of bank of america, royal bank of scotland and also that french bank, societe generale, which has come out with a disappointing set of earnings. it shows perhaps one of the cases where these credit ratings agencies is slightly ahead of the curve, andrew. >> yes, absolutely. certainly be behind the curve if you go back to 2008. got a lot of flack about that one, didn't they? >>> okay. the chinese vice president, xi jinping, wrapping up economic talks in washington on wednesday at a lunch hosted by the u.s. china business council. mr. xi told american business leaders that the two nations are making progress on trade and currency issues but that both need to trust each other more in the years ahead. u.s. allegations that china manipulates its currency has often caused friction between the two countries. mr. xi didn't miss the opportunity to point that out and point out that china has

bank of america, wells fargo, jp morgan chase, citigroup and allied financial are all involved. >> under the terms of this settlement america's biggest banks, rescued by taxpayer dollars will be required to right these wrongs. >> the state attorney general says this deal will help thousands of mare landers stay in their homes through enhanced loan modifications and other services. >> we are getting more money in now than new york. we were hit that hard. >> to speed up evictions workers signed documents they had not read or faked signatures. the 960 million dollars is based on the homeowners impacted. amanda kelly says her father-in- law's home was foreclosed. >> it has created anger towards the whole practice in general. we have become more ed educated on it. >> you could qualify if your home was foreclosed between january 1st 2008 and december 31st 20 live. i am kai jackson reporting. back to you. >> thank you. that deal includes every state except oklahoma. it is expected to help nearly 1 million households. >>> a big set back for the local families affected by a gasoline leak in balti

the fcc gave waivers to jp morgan over and over again. 22 times when they settled six fraud cases includingecent one for $200 million, and the list goes on and on. what people don't recognize is what private equity companies do. it's something that the rest of the press misses and i want to talk to you about that. >> sure. >> you know, a lot of times, for example, whether it's the l.a. times, if a company is not doing so well, sears k-mart, people think they must not be able to sell in this widgets. their financial situation must be bad. what they don't know is when private equity comes in, they oftentimes leverage the company and take money out of the company, and that causes the financial problem. can you quickly explain that for the audience? >> yes this is financial engineer 101 but you're absolutely correct. companies like the times mirror company with the tribune or like sears or macy's and bloomingdale's in its day any number of these companies that have been bought by private equity firms the whole alchemy of the way they make money is putting in very little as they can, and the res

. >> reporter: the deal involves bank of america, wells fargo, jp morgan chase, citigroup, and ally financial. those companies will pay out nearly $25 billion after government investigations into the foreclosures that followed the burst of the housing bubble. to speed up evictions, workers sometimes signed documents they hadn't read or faked signatures, a process known as robosigning. >> we spent almost 14 months getting to this point. >> reporter: maryland attorney general doug gansler says this state is getting the sixth highest cut of the settlement money, $960 million. that's based on the number of homeowners impacted during the mortgage crisis. >> we're getting more money in maryland than new york is. we weren't hit that hard. >> reporter: nationwide, up to 750,000 people whose homes foreclosed from september 2008 through the end of last year, will receive checks for up to $2,000. people like marilyn laviry. >> wells fargo foreclosed on me while i was in the midst of trying to get a modification. >> reporter: those who are under water on their loans will also be allowed to refinance at a