paulsen use that power in 2008 to put them into receivership. we were then planning to do something about it and then the financial crisis hit and we made the judgment in the congress that trying to restructure housing, finance going forward at the same time as you are doing all the other financial reforms which were more backward looking, it was too heavy a lift. if we had maintained the majority, i promised we would look at fannie mae and freddie mac going forward. the republicans took over and this is the dilemma -- there is a genuine split ideologically as to what we would do. there are a large number of people who believe, including people in the housing business, that you cannot have 30 year fixed rate mortgages unless the lender who was ultimately responsible for that can get some guarantee against interest rate fluctuation. they say people will not lock in. unless the initial interest rate is so high that you can make money. i think there is a consensus, i hope so, that fannie may and freddie mac, that was not a good model. there were to

when the crisis hit, it was an excellent opportunity to put them into receivership. instead, we put them into conservative where they are coming back to haunt the market. while the white house said they want to wind these energies down, even floefls they have, they've replaced them with other goeventties that would be involved in the private mortgage market. the problem we have here is we are now creating an even bigger poll with banks, with clearing houses, with insurers that are getting an implicit backstop and inviting politicians to meddle. >> and to be fair with the white house, the president has said he would like to do away with fannie may and freddie mac. they have both parties in congress, it's hard for them to resist the home builders, the realtors, the mortgage brokers, the panoply of lobbyists. >> they're strong. it is shocking to think five years later the government is standing behind more of the mortgage market. >> is that 90%? >> of the market. >> remember, the only government could create a problem like 2008 where normally there is a pricing mechanis

that confirmation came from the federal receivership - the authority in charge of prison medical carein california. >> did the receiver not know it was illegal? >> the letter didn't ask whether or not procedures were illegal or not, just asked if they were taking place. >> the law clearly states no one is to be pressured into sterilization. >> our regulations are clear. a medically unnecessary procedure, such as a tubal ligation is not to be performed. when we were made aware, we took immediate steps to ensure that these procedures needed to stop. >> oh the patients they claim to have tuba ligation. it says it right there. >> wow. >> it says you're report i think from your c-section. >> mm mmm. >> january 29th? >> uh huh. >> let's keep that aside. >> to have a baby should be a wonderful, joyous experience, something that you just cherish all your life. to me, it was a nightmare. i was humiliated, i was treated so badly i just couldn't believe that i live in a society like animals. you know, i don't if it's my situation because i'm incarcerated, i don't know if it's the complexion of m

when the crisis hit, it was an excellent opportunity to put them into receivership. instead, we put them into conservatorship, where they're now coming back from the dead to haunt the private markets again. and while the white house has said that they want to wind these entities down and while congress has various proposals, even those proposals they have are winding them down to replace them with yet other government inteentities that would be invo in the mortgage market. we're creating an even bigger pool here, with banks, with clearing houses, with insurers that are getting an explicit backstop. >> and to be fair to the bhous, the president has said he would like to do away with fannie mae and freddie mac, but the housing lobby has its tentacles on both parties in congress and that's very hard for them to exist, the home builders, the realtors, the mortgage brokers, the whole panoply. >> they're very strong. it is shocking to think five years later, the government is actually standing behind more of the mortgage market, after that -- >> what, about 90%. >> about 9

hardly enough to throw any of the involved corporations into receivership.ome rail systems disappeared overnight to be replaced by autos and buses. buses which were built by general motors and mack. fueled by chevron and phillips and rolling on tires built by firestone. so only with the pursuit of profit at the expense of the common good. these corporations proceeded to bury a transit system that was indeed sick but far from dead. in fact all but the key and southern pacific had disappeared by 1941. if they had been allowed to hang on until world war ii began our transit history would be undoubtedly different. >> you had the southern pacific and red trains on the bay bridge and you had the southern sacramento bay train that is went into chico and you had the northwestern trains in marin county. on december 7th, 1941, the day that japanese attacked pearl harbor, only the key system was left. now if those -- if those systems had survived into december of 1941 it's very obvious what would have happened. they would have run through world war ii and then again th

you have enough money to absorb losses and recapitalize whatever clean banks emerges out of the receivershipe two important things. >> absolutely, sheila, thanks for being on the program, see you soon, sheila bair. >>> take a look how the stock market ended the week. back in a moment. >>> for more on our show and our guests, check out the website, otm.cnbc.com. i hope you follow me on twitter and google plus. look for me, maria bartiromo. >>> first, on monday, goldman sachs, nike, and visa will be joined to the dow jones average. the bank is kicking out others. on tuesday, we'll see if home prices continue to rise when the index comes out. >>> on wednesday, the report on new home sales for the month of august out. >>> on thursday, the third estimate for the second quarter gdp will be released, that's typically a market mover. >>> that will do it for us today, thank you so much for joining me. next week, former president bill clinton. keep it right here, "on the money." have a great weekend, everybody, i'll see you next weekend. the jersey mob does business the way the mob has always done bus

where the world needs to fight back against financial terrorism by putting those bonds into receivership don't buy u.s. bonds don't support the u.s. dollar well you know one of the things terrorism is asymmetric warfare ok these guys do not have the nuclear weapons of a great superpower so in this case here in the u.s. is acting as like a dictator with nukes and they're they're threatening while they have a department of justice they're suing for five billion dollars s. and p. making it very clear that they're sending a message they are sending a message that do not dare downgrade us we don't care how bankrupt we are how many of our bridges are falling down we don't care how you laughed at david the system is do not downgrade us or you will meet the department of justice and our lawsuits but now the n.s.a. gonzales all internet traffic they won't let any e-mail going to anyone suggesting that the u.s. bond markets are actually insolvent that's part of the scam part of the are they rocket going on say sarah thanks so much for being once again on this beautiful day in new york the kaiser r

where the world needs to fight back against financial terrorism by putting those bonds into receivership don't buy u.s. bonds don't support the u.s. dollar well you know one of the things from terrorism is asymmetric warfare ok these guys do not have the nuclear weapons of a great superpower so in this case here the u.s. is acting as like a dictator with nukes and their spending while they have a department of justice they're suing for five billion dollars s. and p. making it very clear that they're sending a message they are sending a message that do not dare downgrade us we don't care how bankrupt we are how many of our bridges are falling down we don't care how the lap and even the system is do not downgrade us well you will meet the department of justice and our law suits but now the n.s.a. controls all internet traffic they won't let any e-mail going to anyone suggesting that the u.s. bond markets are actually insolvent that's part of the scam part of the day racket going on say sarah thanks so much for being once again on this beautiful day in new york the kaiser report that was an

where the world needs to fight back against financial terrorism by putting those bonds into receivership don't buy u.s. bonds don't support the u.s. dollar well you know one of the things from terrorism is asymmetric warfare ok these guys do not have the nuclear weapons of a great superpower so in this case here the u.s. is acting as like a dictator with nukes and they're they're threatening while they have a department of justice they're suing for five billion dollars s. and p. making it very clear that they're sending a message they are sending a message that do not dare downgrade us we don't care how bankrupt we are how many of our bridges are falling down we don't care how you laugh but even the system is do not downgrade us well you will meet the department of justice and our law suits but now the n.s.a. controls all internet traffic they won't let any e-mail going to anyone suggesting that the u.s. bond markets are actually insolvent that's part of the scam part of the are they racket going on say sarah thanks so much for being once again on this beautiful day in new york the kaise

take the holding company, put it in receivership. but the operating subsidiary under it.t can control the holding company. the bilateral agreement that is being worked on now between the fdic and the regulators in most developed countries to recognize the authority and be able to avoid systemic disruptions. there investment bank. they had to use it if they could. connell: better than we were. i tell myself i wasn't going to do a lehman column. you ready column, but it is about lehman brothers. real people. >> i'm writing a book for yen children. the kids that dealt with it. it reminds me of the very -- the challenge and hardship that these families went through. a lot of people lost homes and took mortgages they should not have. so traumatic for them. they lost their jobs because of the recession. that is our regulate. connell: those people. what about those people five years later. >> they are clawing their way back. when they get jobs there to be lower paying, rebuilding savings a little bit. they have a long way to go. to get into another downturn led by a system is pr

likely somebody would be fired, somebody would be fined, or the institution would find itself in receivership fha is merrily on its way to becoming the recipient of the next great taxpayer bailout. tracy and ashley. tracy: holy, all because of an accounting entry? come on now. they have to come up with a better excuse than that, peter barnes. >> you're the accountant. tracy: and i don't believe it. ashley: i love that response. like nothing to see here folks. move right along. don't worry about it. >> debits and credits. we'll be find. >> thank you, peter. >> all right. ashley: the senate just taking action but there is still only three days and change until a possible government shut down. "wall street journal's" steve moore will tell us whether anything can stop it. that's next. >> plus there's about 40 states pushing the fda to regulate electronic cigarettes the same way it governs big tobacco. we have one e-cigarette ceo. njoy's craig weiss. he will share the reaction to all that ahead. >>> but first we have to check out how oil is trading as we head out to the break. basically flat. $102

paulsen use that power in 2008 to put them into receivership.anning to do something about it and then the financial crisis hit and we made the judgment in the congress that trying to restructure housing, finance going forward at the same time as you are doing all the other financial reforms which were more backward looking, it was too heavy a lift. if we had maintained the majority, i promised we would look at fannie mae and freddie mac going forward. the republicans took over and this is the dilemma -- there is a genuine split ideologically as to what we would do. there are a large number of people who believe, including people in the housing business, that you cannot have 30 year fixed rate mortgages unless the lender who was ultimately responsible for that can get some guarantee against interest rate fluctuation. they say people will not lock in. unless the initial interest rate you can makeat money. consensus, i is a hope so, that fannie may and freddie mac, that was not a good model. air were to alternative approaches. one that chairmanhens

holding companies are thrown into a receivership, the subsidiaries put into new companies. a clawback provision, they can go back to the banks and claw back money for the taxpayers and the fdic treasury provide a liquidity facility to finance those subs over the time while they're doing the workout. that's the part where critics say you've essentially entrenched a taxpayer bailout. now some dodd/frank critics also contend they're concerned they have tied the governments and fed's hands too tightly and won't be able to respond the next time there's a crisis to which the response is, hey, that's the whole point. here are the new rules that tie the government's hand. the fed is prohibited from individual bailouts, so-called 13.3 emergency authority. we said a lot of that during the crisis. the fed needs the treasury approval for broad bailouts and treasury prohibited from using that economic stabilization fund which was used to stabilize the money markets. more criticisms include the failure so far to deal with the wholesale funding market like money markets and whether too bi