really interesting scene that stuck out to me to where you're talking to william dudley at the new york fed and you're asking him how he's going to protect against fraud in the talf program another tarp program and he says well we're going to trust the ratings agencies to rate the aaa rated bond and we're going to trust that and we're going to trust our economic models and we're going to trust investors to do diligence so in essence all of the things that led to the financial crisis and i don't know if he wasn't saying that or he didn't want to see that i don't know new york that came around with a lot of your recommendations on that for example in terms of enforcing compliance but i'm curious do you think that that's still the attitude with regulators at the top that they can't see what's going wrong and correct or they don't want to. i mean absolutely they saw all the problems that led to the financial crisis and they started designing programs that not only replicated all of the broken factors but added as an accelerant you know huge amounts of government guarantees and when i pressed du

in a statement the president of the new york fed said that the new york fed was able to achieve the principled goal to protect the u.s. economy from the potentially devastating affects of aig's failure while demonstrating sound stewardship of taxpayers' money. keep in mind the treasury continues the hold the stake in aig, a majority stake. 53%. right now that stake is in the money with the stock trading well above the 28 -- roughly $28.74 that the treasury needs to get in order to break even on that investment. >> thank you for that. >>> let's get more breaking news can kayla tausche. >> thank you. we have four new boards of bank of america. four existing directors stepping down next spring. sharon allen, the former chairman of deloit. the former chairman and chief executive of hospital company hca. linda hudson of bae systems and david yosk, former ceo. on this appointment, the current chairman saying bank of america shareholders will benefit of the global perspectives and diverse insights of these leaders. the ceo moynihan saying the management team will benefit from these addition of direct

angeles times reports that in fact the federal government has been auditing the gold stored at the new york fed drilling holes in it to make sure that it's actual gold what's your reaction to this story and how far does this go in addressing some of the concerns that you folks at gap to have been laying out for years it does not strike us lauren as being terribly relevant of all our complaints has not been that the united states does not have gold bars and that several depositories and there's not gold in the new york our complaint has been. the ownership of that gold has been oversubscribed over pledged has it been leased or swapped with the gold of other central banks so that the other central banks might intervene and in the market we sued the federal reserve back in two thousand and nine and we elicited a statement from the board of governors member direct have been there more but the fed has a secret gold swap arrangement with foreign banks and that these documents were among the documents that the fed did not want to release. to us so we know that the fed is surreptitiously active in the

libel or of course is something that we see that that was during the financial crisis but the new york fed that got a tip off that they didn't start an investigation of the time really lossing a lot going on lauren it great to have you here in the studio that.

libel or of course is something that we see that that was during the financial crisis but the new york fed got a tip off that they didn't start an investigation of the time really i was saying a lot going on lauren great to have you here in the studio that was lauren lyster host of the capital account that's going to do it for now for more on the stories we covered you can check out our you tube channel you tube dot com slash artsy america you can also check out our website at is r t com slash usa and you can also follow me on twitter liz wall will be right back here at eight pm see that.

even after the new york fed was given chapter and verse dennis as you pointed out on the show a coupler a meally mouth memo saying you may want to improve this or that. there was no "arrest and stop." it was shocking. let's switch to knight capital. can you imagine creating a computer system that could take over for 40 minutes. nobody pulled the plug? how did this happen? >> that is the one thing in which no one understands. everyone has algorithms. sometimes they work, sometimes they don't work. when they don't work, you pull the plug and press stop. when the dow crashed in five minutes, everyone saw crazy activity in the markets. and earn pressed stop at the same time and then there was no liquidity in the market and everything just went down. why knight capital could not do this when they were losing $10 million a minute makes no sense. >> eliot: when you see one of your documents on the screen being erased. but dennis, this raised for me even more fundamental question, which is what is the purpose of all of this computer-driven trading? as you pointed out these are algorithms that

. >> you ran open market operations for the new york fed and you were the undersecretary of the treasury. you have 1.6 trillion dollars in excess bank reserve on the fed's balance sheet. they can create another 500 million or trillion. it sits on the fed's balance sheet. meanwhile they are enabling and financing unprecedented budget deficits. how does it sit with you? this is a different federal reserve role. they are enabling and financing unprecedented budget deficits in the trillions every year. >> it makes me very nervous. i'm not nervous about inflation in the short run. much more nervous about the deflation when i see the chinese currency turn the other way. that's a big sign for me. i do worry about the fed crushing the incentive to lend. they say we'll make borrowing cheaper. but who will lend if you don't get a reward? >> out's too narrow. it's a mistake. >> twist is a mistake. if they think we need to balloon the balance sheets more, they are welcome to do it. i don't know why they need to given the idle reserves. >> do you think the fed -- i know they control short rates. i i

the new york fed says overall delinquencies rates on everything fell last quarter.redit card delinquencies saw one of the biggest drops with balances at the lowest level since 2002. bless you. >> thank you very much. >>> well, this next story caught my attention this morning. walmart is updating the mobile app for floor maps of the stores later this year in addition to a new feature with the aisle number of its entire inventory. that means, no more looking for the ketchup, the ice cream. basically looking for what you need. target, home depot and walgreens other big box names with similar apps and makes money and sense because about 20% of retail sales are apparently lost because shoppers just can't find items. ie, they give up. >> that's a good app. >> great app. i'll try it myself. >>> coming up next, isaac taking a toll on oil and gas stocks. up next, the pits of the nymex for the energy trade. >>> and then -- >> say it with me one time, jerry. >> show you the money. >> you can do better than that, jerry. say it with meaning, brother. i need to feel you, jerry. >

the fed played a principal role along with the treasury secretary and the then president of the new york fed and secretary of the treasury. >> i think they all were doing what they thought was best for the economy. it is important to understand -- >> did you think what they were doing was best for the u.s. economy. >> let me explain, give you a little background and i will come back to that, i promise you, okay is so beginning in the 70s there were a series of interventions where the fed lent to prevent the failure of an institution, essentially to rescue short-term creditors of the financial institution we had. franklin national we had continental illinois in 1984. and then others. that lead to the expectation that the fed would step in again to rescue short-term creditors. the large financial institutions therefore didn't have the discipline, it encouraged them to borrow short and lend long. it encouraged them to live dangerously. and we, that came to fruition, that came home to roost in 19-- in 2007. august we see counterparties, financial institutions pulling away from each other. the di

whether they will dig deeply at the new york fed remains to be seen. investigator because none of the agencies can investigate themselves. the fed needs somebody to say what happened here as a matter of protecting us next time around maybe they will put out a good report. maybe congress will. it will be two years from now. it takes congress that long to do things. i don't know where justice is on this. i don't know where the criminal division is. i don't know why, you know, there are e-mails back and forth between, among the different banks that are sufficient to make very quick criminal case bring it. that brings pressure on the individual up the chain. they should go quickly on this. >> talking to current tv's eliot spitzer, host of "viewpoint" every night at 8:00 p.m. eastern time. let's talk about a story we got into a little bit yesterday. a new report by nbc news shows that top ceos of top-earning companies around the country are donating in big numbers record numbers, to presidential campaigns and they are out spending to mitt romney's campaign

the numbers for the new york fed show more people are paying down their debt. the details, are you happy about this? >> it may be a little misleading. all kinds of debt with the exception of student loan debt are down. take a look at the numbers, drill down a little bit, credit cards, the total number of credit card debt $672 billion, that is the lowest level, balances at the lowest levels since 2002, ashley. unbelievable. auto loans are down as well, mortgages down as well, foreclosures go down so that is the good news for consumers. some concerns maybe people are coming out the other side of foreclosures and that is why they look so good. they are not in the bank's crosshairs. it used to be easy pc. not anymore, much more difficult. if you're a small business operator as well. very difficult to get unless you have bad credit. delinquency rates are lower, that seems to be good news. and that is what we have seen. you cannot discharge student loan debt, so people are paying that off, paying off credit cards and the mortgages is what they were looking because th

. >>> and people in new york city neighborhoods are fed up with gun violence. something new. they are

>>> and people in new york city neighborhoods are fed up with gun violence. they're starting something new. they are occupying the most dangerous street corners in each borough to see no more killing. the reverend al sharpton is one of the organizers of the movement. he calls it a symbol of the community's outrage over the bloodshed. >>> i'm randi kaye, i'll be back at the top of the hour. "sanjay gupta m.d." begins right now. ♪ >>> hello there, and thanks for being with us. a remarkable story about a big hospital chain, one that you've likely heard of, accused of doing heart procedures that were unnecessary just to make money. question for a lot of people -- what can you do to protect yourself. >>> first we want to make sure you're up to speed on an important fight over medicare's future. plans put forth by mitt romney and his running mate, paul ryan. one of the most divisive, important issues of the upcoming election. it's important for you to be educated so we're putting them under the microscope. >>> ever since it was signed into law by lyndon johnson in 1

new york. >> they wanted to be there in and testify. they wanted to go to trial. >> there is also victim impact statement. >> state of new york. if the feds aren't intervened this guy would have been out in september walking around the streets of new york. >> right. but now it is going to be a federal case -- >> bill: real quick. village voice awful, disgusting. always has been. they have ads and now they're on the internet. they are being sued over, what real quick. >> two 13-year-old girls and 15-year-old girl in the seattle area, washington saying look, you put our pictures out there sexually explicit pictures you enabled seal exploitation, you are responsible. the pimps are now in jail one of them at least. >> bill: did these girls actually work in that industry. >> yes they did. they were run away girls. >> one has been a prosecutor for 20 years. >> bill: classified ads led men to them and they are suing the newspaper? >> exploitation of children. >> bill: we hope they win. >> washington trying to pass a law to change this. i hope they get that through. >> bill: all right, ladies, charles krauthammer on deck. some on on the left hamm

the new york fed is saying basically the top regulator in new york they operated as a rogue institutionreds of millions of dollars here. >> seems hard to believe that could be as you go. when you look at libor and what's happened with libor and how that disease is spreading all over the place, you really sort of think maybe nobody's alone. >> let's talk about the convention. are you going to speak there? >> they want me to speak there. i'll make a determination. the night before, in sarasota, florida, i'm getting statesman of the year award so i'm going to be right next door and they do want me to be there. >> what would prevent you from being there, then? >> just if i want to do it. we'll find out. it is not my business. i run a very big business and a great business and going to the convention and speaking is not my thing. i like doing it. i enjoy doing it. i've been in politics all my life. i think i've been of great help to mitt romney and to the republican party but they do want me there, and i will probably be there, but we'll see what happens. it's quite a ways off. >> what shoul

so, with respect to this issue does the new york fed bank have the responsibility, authority to step in and be the involved party, or is it the board of governors, the s.e.c., or lots of people? i'm leading to the conclusion, everybody has a role, but no one's in charge. >> thank you senator reed. let me begin by emphasizing i'm here today speaking for the federal reserve board, but obviously the federal reserve bank of new york and the federaleserve board worked closely and collaborately on this triparty issue. i think in the wake of the most acute phase of the crisis, i think there was a broad agreement that some steps needed to be taken and that the risks that had become evident during the crisis needed to be addressed. i think we also at that time were not entirely clear as to what exactly the right way would be to address those. one thing that was clear was that the triparty market is unusually large and unusually complex. it does not just have any broker dealers, clash lenders, clearing banks, but all of the above involved fundamentally in a daily settle process that is fairly

>>trace: thank you, gregg jarrett, from new york city. the feds warn that if congress does not take action, the united states could fall into another recession. it could cost us two million jobs. both rebound and governor romney have already begun pointing fingers. that is next. all energy development comes with some risk, but proven technologies allow natural gas producers to supply affordable, cleaner energy, while protecting our environment. across america, these technologies protect air - by monitoring air quality and reducing emissions... ...protect water - through conservation and self-contained recycling systems... ... and protect land - by reducing our footprint and respecting wildlife. america's natural gas... domestic, abundant, clean energy to power our lives... that's smarter power today. >>trace: this "studio b," i am trace gallagher here for shepard smith. there is a spike in the number of americans applying for first-time benefits with claims up to 372,000 so job growth could have slowed in august, up 4,000. it has been moving at a

the new york fed set to auction $1.46 billion, the recently estimate value of remaining securities andane three, an ebt at this created to old aig assets secured at original $24 billion loan. that loan part of a broader rescue package between the fed and the treasury, $182 billion which threaten to put together because the aig because of its business guaranteeing subprime and other derivative contracts. if the assets sell at the fair value prices assessed in june the fed will be guaranteed a $7 billion profitability, that part of the bailout, the fed earlier sold at a profit all the assets of a separate company maiden lane two that secured $20 billion loan. so put those together, and in lane 3 the fed looks like earned in excess of $9 billion on the aig bailout. there is more to the bailout. the treasury currently holds a $23 billion equity stake in the company, down from 92% when it originally lent 70 billion to aig to rescue t the treasury needs a $29 strike price to be profitable. the fed looks likely to walk away with the billion profit and if they sell the remaining stake, walk ar

the new york fed has shown it has sold the last of its securities related to the insurance giant's bailoutpayers a profit of nearly $18 billion. the treasury department still owns $29 billion in aig stock but it too expects to turn a profit when it's all said and done, so that is not bad at all. $18 billion going to the taxpayers. >> i just assumed all that money going to aig is lost to taxpayers. it's encouraging that they got it back, at least most of it. >> reporter: i know a lot of people at the time were saying that money is going out the door, we'll never see it again. treasury, though, still sdoes have that $29 billion. >> but once they get rid of that stock or whatever, they're going to make money as well. let's hope they do. taxpayers could really use it. let's hope for the best. thanks, lisa. >>> nearly half a million haitians still live in tents after a massive earthquake. now a tropical storm is bearing down on them bringing massive rain, flash floods and mudslides. we're going live to haiti when we come back. ♪ (train horn) vo: wherever our trains go, the economy comes to life

in august 2010, the new york fed in its document found out that the principle write-down of a mortgage was 18%, it would cut the probability of default 40%. that is a big deal. within one year, a modification. considering nearly half of all of our standing mortgages are owned by freddie mac and fannie mae, correct, my friend from new jersey? it seems to have a simple solution. tell me where it is not so simple. secretary donovan commented that we need to break the logjam of principle reductions. and as you know, a triple incentive has been offered to banks, mortgage companies willing to cut mortgage principle for underwater homeowners 3 jon vacation program. you have talked about this for some time, have you not? some other states, obviously. while the decline in the median price of a single-family house, home, outpaced the national average by 3.7%, a drop. with one county having a 8% bergen county having an 8% drop last year. and even hired drop of 8.4% right next to it. the need for principal reduction for freddie and fannie failed mortgages is apparent. is it contained in the presid

jamie dimon is on the board of the new york fed.up at the end of this year, but do you think that's right, do you think that's wrong? does it create an appearance issue, does it not? >> it might create an appearance issue but what you're trying to do with these regional boards is get a sense of what's taking place throughout the country on a firsthand basis. the bankers in each of these communities have their finger on the pulse of the community so if you take them off the board, i think you're reducing some of that pulse that you really need. >> that's a good point. we have not heard that from a lot of people who have sat on those boards, too. >> we were on it, and they would ask us about employment and about our own particular business and we had different businesses on there represented so you'd see what august sell s were doing. >> we had sandy weill on a couple of weeks ago. do you have a view on what should happen to big banks, should they stay big, be broken up? >> there's a different culture between being a commercial banker

. >>> people in new york city neighborhoods are fed up with gun violence. ng something new. they're occupying the most dangerous street corners in each borough to see now more killings. they're calling it a symbol of the community's outrage over bloodshed. >>> and julian assange, a man who is no stranger to the media after his wikileaks organization released sensitive u.s. cables. but assange has kept a low profile in recent months after seeking asylum to avoid extradition to sweden on charges of sexual assault. that is until today when he is expected to make his first public appearance since march. we'll have a live report in moments. uhuh yep uch let's find you a room. at hotels.com, you'll always find the perfect hotel. because we only do hotels. wow. i like that. nice no. laugh... awe uch ooh, yeah hmm nice huh book it! oh boy call me... this summer, we're finding you the perfect place - plus giving you up to $100 at hotels.com ntgomery and abigail higgins had... ...a tree that bore the most rare and magical fruit. which provided for their every financia

new york. >> we talked about the feds paying out more than $400,000 in bonuses last year alone. unbelievable. doug luzader thank you very much. new segment to bring you now. time to step into the fox light. the lathes on the scoop in the entertainment world. we are talking about phil phillips he goes global and fans will hear him at the olympics. >> they will. when it comes to the olympics american idol winner phillip phillips has taken home the gold literally. ♪ >> it is the song of choice for women's gymnastic coverage. it is hitting number one on itunes. by the way set the american idol record by selling 240,000 down loads in the week. that surpasses david cook's sij "the time of my life." it is on it is way to hitting platinum. >> it is a terrific song. tell us about this, the popular show "arrested development"" is coming back. fans of the cult comedy arrested development had something to cheer about. jason bateman recently tweeted pictures from the set along with actor michael sarin giving a tour. many have been speculating for a while the show will return for a 4th and fin

new arena. and there is fed yechl cup playoffs in new york there is possible passing of the torch here. and finished a three under 68, and on the par five seventh there is a another young gun. saving birdie with a nice chip. and and toddrick harrington who is aknown at seven under. and indy this weekend. jr hildabrand showing off the ride he'll be racing on sunday. and there is a scarlett and gold paint scheme. >> this is a bonus for me. and there is a drag for goals over the weekend. it's been fun. hopefully we can do the boys proud this weekend. and this should be a cool event. >> and that is probably it. >> thank you. >> that is this edition of abc 7 news. closed captioning services, inc. this is the... here are today's contestants-- her high school newspaper predicted she would be on "jeopardy!" from farmington, minnesota, here is... she's been teaching for 22 years and is now teaching the children of former students. from statesboro, georgia, say "hi" to... an international baccalaureate certified high school. from nashville, tennessee, welcome to the stage...

the uk bank accused by a new york state regulator of laundering iranian money. steve is here with the update. seems like the feds aren't happy with new york about all of this. kind of airing their dirty laundry, right? >> there's a don't of different regulators at different levels, not just the federal level but the state level. and these serious allegations, mandy of money laundering and iranian funds and doctoring documents are overshadowed by allegations of overstepping bounds to go public with charges of standard chartered bank. some regulators criticizing benjamin lawsky's decision for action against standard saying he jumped the gun on other agencies and in the words of one regulator, hijacked the investigation in to standard and saying that could affect the outcome of the case. the office would not respond publicly to these allegations. officials said there was an ongoing multi-year investigation of standard that was very active before lawsky went public and said to have given other agencies little or no notice of what he was going to do and pulling standard's new york banking license as overly colorful a

months ago at&e shutdown signals that were said to fear with the port authority of new york and new jersey. all the fedillion on this felice radio system. >> the city has can pointed for a sell signal as a major problem but investigations continue into other issues plaguing the system. >>darya: amp will prevent closing arguments this morning is a patent infringement cases in san jose. apple accused samsung of stealing their idea and samsung is saying apple violated some of its patents. samsung wants 421 million. apple wants to 0.7 5 billion from samsung. lawyers say the heads of both companies spoke to each other trying to resolve their differences but they have failed to reach a resolution. new this morning, many buses filled with hundreds of domestic workers have left the bay area headed to sacramento. tsk tsk the fuss is left a short time ago from the oakland fruitvale bart station. the workers are headed to the capital urging lawmakers to pass an assembly bill. the bill would give caretaker's labor protection. something as simple as a lunch break. >>darya: they are not guaranteed or required to giv

allegations of the bank using its new york office to launder billions of dollars for iran's financial institutions and central bank now reuters reports the treasury department and the fed were blindsided and are were eight so some are saying this new york regulator has gone rogue and some are saying finally someone has taken on the big banks so i want to get my guests reaction but first i want to tell you what neil barofsky his reaction was because he was the former special an inspector general in charge of tarp oversight and he says this guy's just doing his job and they'd rather trash a potentially legitimate case then admit that they were asleep at the switch especially now after the recent revelations about their failures with live war and h.s.b.c. now he of course is talking about regulators so a few different. issues to address here let's bring back gerald celente founder of trans research institute publisher of the trends journal to give us his thoughts on this so in general we hear that this new york regulator maybe is going grow maybe he's the first guy willing to take on the big banks i don't know eliot spitzer when he did that years ago or maybe this is a ca

and fed talks this week the new york's most expensive flirts is going on sale at one hundred million dollars the seventy sixth floor apartment has six bedrooms nine both rooms and three thousand feet of outside terrace flats so high clouds sometimes block the view and wind made the roof was so the daughter of a moscow fertilizer all the previous top price property in the city for eighty eight million dollars and europe today will have more than i'll be waiting thank you very much for that dana and coming up in a special report the special report on the dangers of reporting from combat zones that are the headlines and if you're. everyone wants to be president. whether they're an old lady own engine driver. but it might be quite tricky to get a fancy cut. because you live out here in siberia. and the only way to get to you is by train. if they shoot something inappropriate from public they can easily be shown to accept casualties of war ok. i wish she would have never happened but it has happened. in a war a t.v. camera becomes an unnecessary what destroys their own safety all foreign

and fed talks this week a new york's most expensive float has gone on sale at one hundred million dollars seventy six floor apartment has six bedrooms known both rooms and three thousand feet of outside terrace flats so high clouds sometimes block the view though and wind the roof with or say developers. fertilise a previous top price property in the city for eighty eight million today will have more next. danielle one hundred million dollars for an apartment there seems like a lot of money to be spending when everybody is struggling right now but thanks for that update i'll see you in a little while and a new look at the economic downturn in golfing europe coming up in a few minutes after the headlines. everyone wants to be president. whether their old lady own engine driver. but it might be quite tricky to get a from c cut. because you live out here in siberia. and the only way to get to you is by train. in school started here before going global and now it's pulling fire. log in. to the right to. choose your place take your stand. to. make your statement. submit the word. coupon. if th