and there are still three districts in california in receivership. they are sing city, value rayo and oakland. emeryville and richmond were on that list. and no more. i'm live in richmond abc 7 news. >> and there are things looking better in vallejo. the city retiring firefighters it was forced to layoff when it became the largest city in the country to declare bankruptcy aichl grant allowed stit to hire 14 new firefighters. and they received their badges today. the money will be used to reopen one of the three stations closed because of the city money problems. >> we're able to achieve what we often dream about. it's opening stakes station because a lot of times you close them, they don't necessarily reopen. >> this grant expires in two years. the city hopes to retain the new recruits by extending that grant. >> in los angeles today the third day of testimony in a preliminary hearing in the brian stow beating case. on the stand, stow's friend and fellow paramedic. he describes the tense situation they suddenly found themselves in. abc 7 news has the

. >> with this $8 million payment ends 21 years of receivership.s the west contra costa unified school district will have an extra $1.4 million a year that would otherwise have gone to repay the loan. >> what that will do is help us make not make cutbacks we otherwise would have made. a number of teachers will have jobs as a result of that that would have been laid off otherwise. lags sizes would have been larger. >> here's how the district got in trouble in the first place more than two decades ago when it was called the richmond unified school district. >> we did not budget properly. we had more obligations than we could afford and the state cut revenue. >> the financial situation was so bad the entire district and its schools planned to close and to declare bankruptcy. that's when parents, led by tom butt, sued california. >> we prevailed, and the state was ordered to open the schools back up and complete the school year. >> california had to lend the district $29 million. but the interest rate on the loan was so high, 5.7%, the district continu

it was the first to enter state receivership.ey had a trustee and $28 million loan, with interest. over the years, they tell me they paid back $47 million. the school board president says even though state budget cuts are still an on-going problem, this is a hugep ste forward. the decisions, the finances now all their own. >> the taxpayers and the constituents over $2.5 million of interest payments, that goes back to the kids. that's where we as taxpayers want our money to go, here for the young people. >> it's fabulous news. it is opening up the doors for us to, you know, be able to plan better financially, give these kids the quality education they deserve. >> reporter: they say they saved and put aside what they could to go ahead and make that payment early. the teacher there, wendy gonzalez, among those that once protested, went on a hunger strike to get the interest lowered on the loan. it finally worked for them. the board president hoping this money that would have gone to the payments they would have continued to make wil

it was the first to enter state receivership. it had a trustee and a $28 million loan with interest. >> we're saving the taxpayers and the constituents over $2.5 million of interest payments. that goes back to the kids. that's where we as taxpayers want our money to go. >> district officials say they saved and put aside what they could in order to pay that loan off early. coming up in ten minutes we'll tell you about a school in the south bay that's created quite the buzz in its approach to academics and why it has visitors flocking that school daily. >>> more gruesome evidence is emerging from the preliminary hearing of the two men accused of beating giants' fan brian stowe. jeff bradford described the violent attack at the dodgers state yum parking lot. he claims they did nothing to provoke the violence nor had a chance to defend themselves. bradford said he watched stowe fall onto the back of his head. bradford was not able to identify the attackers, as others called to the stand. testimony resumes next wednesday. >> the fda a

one approach would be to ask banks for the purposes of being able to be brought into receivership if necessary is to simplify their structures to avoid these very complex interconnected types of situations that i think are such a problem. >> thank you very much. >> senator kot zx. >> thank you, mr. chairman, and thank you, mr. chairman. on page four of your statement you talked about inflation. you say with regard to inflation, the longer-term inflation expectations have, indeed, been quite well anchored. expectations among investors have changed little on net since last fall. and we are lower than a year ago. substantial resource slack in u.s. labor and product markets should continue to restrain inflation mare nary pressures. that's good news. that's good news for all of us. let me ask you a question about the reverse of that, and that's deflation. we've gotten some bad unemployment numbers not only for may but the revision for april. bad news out of asia. it appears that the australian manufacturing is in recession, that india has posted its slowest growth in nine years, that chin

abusive activities by prosecutors who are using forfeiture tactics, using -- basically taking over receivership of organizations and then pleading them guilty to bring in the -- put pressure on the co-conspirators, so-called. i'm not saying that they're badly motivated, but there's clearly a different trend, on one hand. on the other hand, at the other end of the spectrum, contemporary concerns of what would be political dissent in the watergate period are now about homeland security. and as differently as the administrations of the latter bush and obama would appear to be, in fact, obama is the most secretive president we've had in my lifetime. there is more going on that fewer people in congress know about than there was under nixon or under the reagan, bush, anything since then, including the last bush. but i'm concerned about the extent to which these institutional prerogatives become independent of any political control. in an effort to combat cyber side of terrorism, president obama has authorized a series of secret activities that go far beyond what bush did in the last administration. a

should be doing a lot of the banks because the banks don't deserve to be baloch the banks in your receivership an old debt they generated you go down they go down the good they get hurt. wise men rescue the public from the burden that's what the central bank should be doing certainly rather than opposing austerity on a public life no role really a. passive role being dragged along in it and i ask. you not. causing the growth spice and causing the imbalances the responsibility in your slots home to the bureaucrats it is on something as stupid as a mastery treaty and the banks went along in finance the stupid and across like that until it fell right up and now of course we're putting the pain on the public rotten in the bank back on the banks and the bureaucrats were longs ok bailing out the citizens versus the banks let's go and refer to your book deep bunking economics the newly expanded version and let me ask you this question keeping here book in mind when barack obama was asked why he bailed out the banks and not the citizens back in two thousand and eight he referred to the multiplying eff

have procedures in law put into the housing and economic recovery act of 2008 where there are receivership provisions to wind down freddie and fannie. the dodd/frank liquidation provisions mirror those to some extent. so put it this way. if you believe that dodd/frank gives us the power to wind down jpmorgan or citibank, you must by analogy believe we have the power to wind down freddie and fannie. if you believe we don't, then we don't. with that, i really want to thank our audience, and, again, emphasize both papers are online. i believe we have copies here, as well. and i know kevin is going to hang around to answer any other questions. thank you. >> thanks for coming. >>> here's a look at programs this afternoon. coming up, girl scout ceo an amarie chavez. then a hearing on railroad and highway security. that's followed by a discussion on this month's presidential elections in egypt, the runoff election june 16th and 17th. >>> on the other c-span networks, the atlantic council holds a discussion this afternoon on europe's financial crisis, and how to get out of it. the ceo of deutsche

. >> with this $8 million payment ends 21 years of receivership. district will have an extra $1.4 million that would otherwise gone to repay the loan. >> it will help us not make cutbacks that we otherwise would have made. number of teachers that would have jobs and class sizes would have been largerfxi >> here is how the district got in trouble more than two decades ago when it was called the richmond unified school district. >> we did not budget properly. we had more obligations and state cut revenues. >> the financial situation was so bad the entire district and school planned to close and declare bankruptcy. that is where when parents sued california. >> we prevailed. the state was ordered to open the schools back up and complete the school year. >> california had to lend the district $29 million, but the interest rate on the loan was so high, 5.7% the district continued to struggle financially. wendy gonzalez showed her students a documentary on a 2004 march to sacramento. she and other teachers went on a hunger strike to demand the loan be re

the safe gave a loan at 6% interest and placed it in receivership. school officials are paying off that loan. >>> tonight a hope and faith rally will be held in fremont at sierra lamar's former school, washington high for the missing morgan hill teenager. tomorrow volunteers will be out again searching the morgan hill area for any sign of the 15-year-old. yesterday the man suspected of kidnapping and killing lamar was in court but did not enter a lee. antolin garcia-torres only uttered the words "yes your honor." when asked if he understood what was happening. >>> a man will appear in court to face charges that he tried to grab a child at a movie theater in san leandro. police believe he reached into a photo booth while a woman was inside with her niece and nephew. witnesses say he also threatened the aunt after she left the booth with the children. officers arrested hayes tepblgs in the parking lot out the -- hastings in the parking lot outside the mall. >>> a wildfire in new mexico remains out of control and spreading in all directions. the blaze h

>>reporter: with this 8 million dollars payment ends 21 years of receivership meaning the west contranty unified school district has extra 1.4 million dollars a year that would other swris gone to repay the loan. >> it will help us not make cut back that we otherwise would have made. so there's a number of teachers that have jobs as a result of that. that would have been laid off otherwise. class sizes would have been larger. >>reporter: here's how the district got into trouble in the first place more than 2 decades ago. when it was called the rich mopped unified school district. >> we did not budget properly. had more obligations than we could afford and state cut revenue. >>reporter: financial situation so bad the entire contradict and its school planned to close and declare bankruptcy. that's when parents led by tom buck sued california. >> we prevailed and the state was ordered to open the schools back up and complete the school year. >>reporter: california had to lend the district 29 million dollars. but the interest rate on the loan was so high 5.7% the district continued to str

receivership like structure bankruptcy.ng on today was a recession of underwriting. we made bad loans to that are ours, people who were not prepared to be homeowners. when the foreclose, we had a crescendo of difficulties in the housing market. what is a qualified residential mortgage? you have to have 5% down payment. you have to a private mortgage insurance for 70% to 95%, and supplemental insurance for 50% to 70%, so that have the obligation of the taxpayer is already in short we make the loan. secondly, the borrower has to have an income that demonstrate they can make the payments. the borrower has to accredit report that shows they are irresponsible borut. they have to have title instruments that guarantee that is good. go back to the old-fashioned days of putting money down, having a job, having good credit. that way, when the securitized guaranteed loans, you are securitized loans that are not going to get foreclosed on. it will be repaid. one requirement of the mortgage finance agency is for them to attend-year plan

it was the first to enter state receiver sh receivership and it had a trustee and $28 million loan with interest. >> we're saving the taxpayers and the constituents over $2.5 million of interest payments. that goes back to the kids. that's where we as taxpayers want our money to go. >> district officials say they saved and put aside what they could and that allowed them to pay the loan off early. >> a check of our forecast. still a little too toasty for me. what about you? >> no, i like it this way. >> i know. well, you know, i think we're going to make both of you happy for this weekend. saturday a little bit more on the warmer side, jess, and by sunday that's when your weather arrives. it's beginning to cool down. it was hot here. 94 in livermore. 94 also in it gilroy. not good enough for records. usually need to tip over the century mark in order to have record fall inland this year and cooling throughout the bay with 70s in oakland. 88 in los gatos. numbers falling at the coastline with the westerly wind and the fog building up, right up against the entire peninsula. 61 in san franc

one approach would be to ask banks for the purposes of being able to be brought into receivership of necessary is to simplify their structures and avoid these complex interconnected types of situations that i think are as much a problem as size. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2012] >> more about the house and the senate in the cspan directorate. there is information on cabinet members, supreme court justices, and the nation's governors and you can pick up a copy for $12.95 plus shipping and handling c-span.org @/shop. coming up on c-span, "washington journal" live with today's headlines and phone calls and at 9:00 p.m. eastern, the house of representatives begins consideration on 2013 spending for the legislative branch. on c-span 2 at 9:30 eastern, the house ways and means committee hearing on tax cuts scheduled to expire january 1. on "washington journal" our first guest is michael hirsch, will talk about

one approach would be to ask the banks for the purposes of being able to be brought into receivership if necessary is to simplify the structures to avoid these very complex interconnected types of situations that i think are as much of a problem as ourselves. >> thank you very much. >> senator coats? >> thank you mr. chairman and think you, mr. chairman. on page four of your statement to talk about inflation. use it with regard to inflation, longer-term inflation did indeed been quite well anchored. expectations among investors have changed little on the net since last fall the product markets will continue to restrain inflationary pressures. that's good news let me ask a question about the reverse of that. that is the deflationary. we've gotten some bad employment numbers not only from the revision of april bad news out of asia it appears the australian manufacturing is in recession. india has posted its slowing of growth in nine years. china is on the verge of the manufacturing downturn. a lot of people are saying the speed here in the united states. the question is what is the risk

kind of scenario you want to see is a situation like central falls where the city had to go into receivershipa bankruptcy proceeding and essentially wiped away a lot of benefits the retirees have come to count on. >> brown: just a brief last word from you josh on that, do you expect to see much more of this? >> well, no state or local government in the u.s. when you consider pension accounting has run a balanced budget for a long time and i think that probably the california votes are a reflection of voter opinion but what meaningful reforms they'll get into state and local government policy remains to be seen whether elected officials will move on this. >> brown: josh rauh, kil huh, thanks very much. >> thank you very much. >> ifill: there appeared to be no end in sight to the fallout from president obama's immigration decision last week. >> this is not amnesty. this is not immunity. this is not a path to citizenship. it's not a permanent fix. >> ifill: president obama's decision to shield some undocumented immigrant from deportation stirred political consternation but is winning popular sup

put freddie and fannie from conservatorship to receivership like a structured bank and wind them downopen the mortgage finance agency which will make and guarantee a securitized, qualified residential mortgage. the recession in america that began in 2006 and is still going on today was not a recession of over lending. it was underwriting. we made bad loans to babar words, people who weren't really the repair to be homeowners. when they foreclosed foreclose him we had a crescendo of difficulties in the housing market. what is the qualified residential mortgage? you have to have at least 5% down payment. you have to buy the private mortgage insurance on the amount of loan from 70% to 95% and then supplemental insurance run 50 to 70% so that half the obligation of the taxpayer is already insured and backstopped when you make the loan. secondly the borrower actually does have an income to demonstrate they can make the payments. the borrower has to have a credit report that demonstrates their responsible creditors. they have the aftab appraisal that says the property is worth what it's pai

for the purposes of being able to be brought into receivership, we simplify the structure to avoid these very complex interconnected types of situations that i think are as much a problem. >> thank you. >> thank you, mr. chairman and thank you, mr. chairman. on page four, you talked about inflation. use a with regards to longer- term inflation that the expectations among investors have changed little net since last fall and we are lower than one year ago. product market should continue to restrain inflationary pressures. let me ask you a question about the reverse of that. we have gotten some bad employment numbers. india has posted its lowest growth in nine years. many's the china is on the verge of a manufacturing downturn. a lot of people are saying that we are at a stalling speed year in the united states. what is the risk of spending too much time worrying about inflation and ending up potentially in a deflationary near recession perhaps prompted by a shock from europe that cannot pull it together? what are your concerns about that? what is the fed thinking about that? and that's so

put fannie and freddie into receivership open the mortgage finance agency of qualified residential mortgage. the recession that began was not of over lending but under underwriting. people were not prepared. then we had a crescendo of difficulties. you must have of 5% down payment and supplemental insurance between 50 and 70% so half of the obligation is insured when you make the loan. the bar were harassed to have the income. and a credit report and the appraisal comment title insurance to search the title, going back to the old fashioned days of putting money down, having a job, a good credit. that way they will not be foreclosed. one of the requirements is to have a 10 year plan to privatize that is possible the same way of catastrophic insurance to take the guarantee fees put them into the catastrophic pool and that is the first backstop. that is the brief description to take us where we are now to where we need to be. but it passed to the transitional. i will create an agency to give us more liquidity to residential lending in america. my time is up. i can take a question end all wars

structures, one approach would be to ask banks for the purposes of being able to be brought into receivershipcessary is to simplify the structures to avoid these very complex interconnected types of situations that i think are as much a problem as sheer size. >> thank you very much. >> senator coates. >> thank you, mr. chairman, and thank you, mr. chairman. on page 4 of your statement where you talk about inflation. >> interesting q&a between bernie sanders of vermont and the fed chairman and sanders asking bernanke about whether bankers should be voted off the fed board and saying it is really up to congress and you guys voted for it and you have the ability to undo it. we will take a quick break. a lot more of ben bernanke in front of hill when we come back. ♪ [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪ ask your financial professional how lincoln financial can help you take charge of your future. ♪ >> welcome back. chairman bernanke answering a question about deflation saying right now they see it as a low probability event, puttin

approach would be to ask banks for the purposes of being available -- able to be brought into receivership if necessary, is to simplify their structures to avoid these complex interconnect types of situations that i think are as much a problem as sheer size. >> thank you very much. >> senator coates. >> thank you, mr. chairman. and thank you, mr. chairman. on page four of your statement, you talk about inflation. you say with regard to inflation, longer term inflation expectations have been quite well anchored. expectations among investors have changed little on net since last fall, and we're lower than a year ago. substantial resource, slack in u.s. labor and product markets should continue to restrain infliction near -- inflationary pressure. that's good news for all of us. let me ask you a question the reverse of that. and that's deflation. we have gotten some bad employment numbers, not only from may but the revision for april. we have bad news of asia. the australian manufacturing is in recession. india has posted its slowest growth in nine years. china many say is on the verge of man

one approach would be to ask banks for the purpose of being able to be brought into receivership if necessary, is to simplify their structure to avoid these very complex, interconnected types of situations that are part of the problem of sheer size. >> thank you, mr. chairman. and page 4 of your statement, you talk about inflation. you say with regard to inflation, expectations have been well anchored. expectations among investors have changed little. we are lower than a year ago. potential resources slack should continue to restrain inflationary pressures. that is good news. it is good news for all of us. let me ask you a question about the reverse of that. that is deflationary. we have gotten some bad employment numbers. bad news out of asia. it appears that the australian manufacturing is in recession. india has seen the slowest growth in nine years. china is on the verge of a manufacturing downturn. a lot of people are saying we are at stalls be here in the united states -- stall speed. what is the risk of spending too much time worrying about inflation and ending up in a potentially defl

but freddie and fannie in from conservatorship to receivership, like a structured bankruptcy and windnd then, open the mortgage finance agency we shall make an jim keet and securitize qualified residential mortgages. the recession in america that began in 2006 and a still going on today was not a recession of over lending. it was underwriting. we made bad loans to bad borrowers. people who were not prepared to be homeowners. when they foreclose on we had a christian of difficulties in the housing market. what is a qualified residential mortgage? you have to have at least 5% down payment. you have to buy private mortgage insurance on the amount of the loan from 70% to 95%. and supplement insurance from 50 to 70% some half the obligation of the taxpayer is already insured and backstopped when you make the olympic secondly the borrower has an income that demonstrates they can make the payment. borrower asked of a credit to demonstrate they are a responsible creditor. they have to have an appraisal. they have to title insurance to search the title to guarantee it is good. in other words,

if we put freddie and fannie from conservatorship to receivership with a structured bankruptcy and wind down, open the mortgage finance agency which were making varity in securitize qualified residential mortgages. those recession that began in 2006 and is still going on today was not a recession of overland data. it is under underwriting. we made bad loans to bad writers. people who are not prepared to be homeowners. we had a crescendo of difficulty in the housing market. what is a qualified residential mortgage? .. wrapping loves that aren't going to get for closer, that will be repaid. one of the requirements of the mortgage finance agency will did have a 10 year plan to privatize. that i believe is possible in the same way was done in catastrophic insurance in great britain where you take begin tvs that are collected at the close, you put those guaranteed fees into a catastrophic sinking fund and becomes the first backstop to protect american taxpayers from having to pay the guarantee of alone. that is a brief description of away to take us somewhere we are now, which is a lack of l