san bernardino county started this plan because a group of venture capitalist in san francisco got to got some money together at least i think like twenty five million dollars and went down to the c.e.o. of the county's name is gray devereaux and told him we have we have this magical plan to head to help your problems here seminole county isn't exactly a very wealthy county. they started meeting with him though back in october or november according to the county and you know they didn't tell me. i mean these are public officials or something in california that's called the brown act max and you know you if you're going to discuss a public issue like taking homes right through eminent domain then you have to do this publicly so they would have met with great devereaux he's not all liked official he was hired by the county and everything and they can kind of get away with doing that the problem is a great devereaux then goes and signs a confidentiality agreement with these investors he's v.c.s. up in northern california and they keep you know having their talks and figuring out their pl

law officials in san bernardino county are investigating the possibility of criminal activity withiny government. it became the second largest city in u.s. history to declare bankruptcy. >> i understand it is a good day to invest in donuts. >> today krispy kream is celebrating its 75th anniversary. according to their web site, if you buy one dozen donuts at participating locations today you can get one doesn't original 47 5¢. donuts are my weakness. >> you said you ate one doesn't in one sitting? >> i sat down in a parking lot and it was college and by 81 dozen. when they're hot they just slide right down. it was my roommate and i, a large margin. >> the faa is concerned over the possible shortage of pilots worldwide. the report says a half-million pilots will be needed over the next 20 years. a spokesperson says airlines might hire people who are technically qualified but do not have the right temperament. are women really bad drivers? >> 1 mayor thinks so and now he is creating female parking spots >> and incredible journey on a cargo ship from china, coming up. [ male announcer ]

the express west train would run from victorville in san bernardino county to las vegas.in the coming weeks developers are set to ask the obama administration to provide a loan on the project. if it is built a trip from southern california to las vegas on the express west is expected to take just 90 90 minutes. >>> chrysler reported big earnings. $436million in profits in the 2 2nd quarter compared to 370 million last year. $16.8billion, that is an increase of 26%. they benefited from selling most of its cars in the u.s. others have been hurt by european sales. >>> washington state man could face charges. the flight was on its way to bellingham when the man asked a passenger to turn off her reading light. when she declined he began shouting. the man was questioned but allowed to go home. he may still be charged. >>> production of pure cocaine in columbia declined by 25% last year. potential production dropped by 72% since 2001. they rank third in production of pure cocaine. the decline is largely the result of a $7.5 billion u.s. backed effort to crack down on drug organi

warning in effect for riverside and mojave counties and flash flood warning just expired for san bernardino county, day two in a row of downpours in the desert in southern california. right now in the bay area, 95° at concord, antioch, 90 livermore, 96 fairfield sizzling inland east bay 80s from parts of near east bay to the south bay 80s north bay. these are the highlights areas of fog near the coast and bay tonight hot inland for the next two days cooling down in all areas over the weekend. tonight little fog at the coast perhaps moving locally over the bay, low temperatures mid to upper 50s another mild overnight period. tomorrow morning fog hanging around in some spots pulling back quickly to the coastline and away from the coast in some spots we'll be left with a pattern like what we've seen the last couple of days, mild coast warm irbe hot inland with temperatures soaring into the mid to upper -- 90s. in the south bay mainly 80s mid to upper 80s tomorrow. 84 san jose, 89 los gatos. 79 redwood city, 80 palo alto, low 60s coast many downtown san francisco 67 tomorrow. north bay numerous mid to

. >> originally i came to jail february 21st, 1981, convicted in san bernardino county for murder/robbery given a sentence of 34 years to life, randall was 18 at the time of his conviction. but his rap sheet started much earlier. >> i have been gang banging since i was 9 years old. coming from an impoverished neighborhood in southern california, my mother and father tried to move to pomona to establish a better life for us. by the time we moved there, it's mostly a middle-to-upper class neighborhood, being already bit by the gang bug, we just exported the gang life out there. >> randall's gang activity led to his incarceration at the youth facility and soon after, prison. there he joined a militant gang called the black guerrilla family. >> ended up in 15 years solitary confinement. tried to get back into the main line, but it was kind of hard. after facing walls for 15 years and handcuffs everywhere i went, i didn't adjust too well.pkujóei i still became more assaultive, more combative, more violent. >> after 25 years of incarceration, randall had plenty of violent episodes to share. >>

country are still feeling the pain, of course, from the housing bust, including california's san bernardino countyof the nation's highest foreclosure rates. now they've come up with a plan to help homeowners. it would involve the county seizing the mortgages, but investors holding the current mortgages warn they think the plan could backfire. how would this work? >> well, the proposal is that this alliance of two cities would use eminent domain to condemn the mortgage notes held by private label securities, and they would acquire these mortgages, renegotiate them at a lower mortgage and reduce the payments for homeowners. >> so, i mean, it sounds like it could work. i mean, isn't this what some people have said the banks should do more of? >> right. the argument that's advanced by the company proposing this, a san francisco investment company called mortgage resolution partners, is that just because of these agreements they're unable to renegotiate these mortgage notes. >> so do some people think this could hurt the homeowner? if so, how? >> right. it's being opposed by people in the financial ind

san bernardino county and an tear yoe and fontana would resell the mortgages to new investors.he homeowners would get to stay in their homes. >>> south florida sun sentinel reports over an outcry over the firing of a lifeguard. on monday, tomas lopez ran to an unguarded area of the beach to save a man. he was fired because he left his post. two other lifeguards quit in >>> this national weather report sponsored by mercedes-benz. experience truly great engineering today at your authorized dealer. >>> a final report is out today of the crash of air fans 447 where people -- captain sully s sullenberger shows us what the pilots did wrong. >> challenging but manageable. >> yes. >>> snoring can be a sign of sleep apnea. we'll look at new research showing it can lead to depression on "cbs this morning." >>> this portion of "cbs this morning" sponsored by purina. your pet. our passion. [ whimpers ] - hugs from beneful baked delights... - [ barks ] are crispy, oven-baked dog snacks with soft savory centers, made with beef and cheese. beneful baked delights: a unique collection of four s

county. >> which is -- not only on the job but when they retire. >> typical public employee unions across the country. had 0,000 municipalities. >> bill: what happens now when stockton, california, scranton, pennsylvania. san bernardino county all going bankrupt, what happens? >> what happens is precisely what we are seeing happen. this is the only way in many instances for these municipalities that have been hammered by public employee unions for them to recover. they have got to go bankrupt. >> bill: i don't think nassau is ever going to recover. >> folks in stockton says they are not going to negotiate because they are afraid much the awful cost of negotiating it with the unions. >> bill: i don't know where the money is going to come from down the road. >> we are going to see some vanish. >> bill: stayen on the case. great american news quiz, the funniest people in america edition on the horizon. we think you are going to like it. megyn kelly returns. new york city in the middle of a racial controversy over the stocks stopping and frisking suspected criminals in the suspected criminals in the minority communi another cup of coffee? how long is this one going to last? forty-five minutes? an hour? well... listen. 5-

in san bernardino county want to use eminent domain to take over properties than restructure the mortgageseryl casone he is with the fox business network. how does this work? >> this is unprecedented. is it going to work is a big question. this is the brainchild of the san francisco group of investors. what they want to do is a city would use eminent domain, sees the loans and home, if you will, if that borrower is underwater, and then the guys in san francisco pundit, and then in the city they reduce the property value and the guys turn around and saw that loan to somebody else, keeping the borrower in their home. people don't have jobs. the only way this would work is if the borrower was current on their payment. the truth is, most distressed properties in the country, people are behind on their payments. will target the problem? maybe not. and will this work in time to get the housing situation in california on track? i don't think it will. they're trying to float this bird they want to take this national. rick: some people think it might be a model solution out there. this is with priv

while our economy is slowly improving, unemployment rate at 11.9 in my home of san bernardino county. in the last 500 days since the republicans took control of the house, they have refused, i say they have refused to move forward a real plan to put more americans back to work. instead of working to create jobs, republicans have passed a budget that gives away $3 trillion in tax breaks to big corporations and ultrarich. end medicare as we know it. by turning a program into a private voucher system. just last week the republicans again voted to repeal the affordable care act which benefits millions of americans. it's time to stop the political game and get to work on finding real solutions to the problems we face. we must end the bush tax for the rich, protect medicare, and work to create new jobs for all americans and assuring we don't outsource those jobs as well. i yield back the balance of my time. the speaker pro tempore: the gentleman yields back the balance of his time. the chair will remind all persons in the gallery that they are here as guests of the house and that any manife

some california cities are considering drastic measures to help struggling home owners in san bernardino countyn to buy underwater mortgages and restructure them to allow people to stay in their homes. could this plan actually back fire on the city and the home owners? joining us to weigh in is a former executive vice-president at fannie mae and at the american enterprise institution. hi, ed. >> good morning. >> alisyn: you think this is a terrible idea why? >> absolutely. first of all, this is being portrayed as a quicksilver bullet that's going to solve the problem and i think it will be anything, but. first of all, this is going to be litigated for years, there's a question under eminent domain, a public purpose versus a private rpose and the bond holder are going it litigate that, it will take years, which is going to slow down the recovery of the market further. this is not going to happen tomorrow or even six months from now, and secondly, if it is successful, i think bond investors are going to be turned off even more by this type of throwing out the contract between borrowers and lender

in this case it is it the county of san bernardino which is half of the size of new jersey . unty in the united states of america would have to come up with this kind of cash in this environment. this is a suggestion to make office holders sound like they are helping. >> gretchin: could all of this fall in the bankruptcy so all of the mortgages be forgiven. >> no. bankruptcy is a individual bankruptcy of the owner of the house and the real estate would pay back the bank. >> eric: here's the little game they are playing. homeowner is made whole and the bank who holds the lien is made hold and the taxpayer in san bernardino has to come up with the money. so many homes are going in default they are trying to lower the value of the homes so they can pay property taxs and it makes it more difficult. >> it is it a point constitutionally. that imminent do main case said that the government can condemn property as long as it bep fits property. the value of the house and mortgage going on. and people are paying real estate taxes that benefits the government. >> eric: that is supremist.

we reported yesterday, of course, about san bernardino, california, and filing for bankruptcy protection. now, the countyo deal with homeowners who have had their homes foreclosed upon them. a meeting on the proposal is happening right now. diana? >> reporter: that's right, tyler. all about imminent domain. county officials are debating this. unprecedented way to use the powers of imminent domain and unprecedented times in the housing market. governments can use it to take property from private owners paying fair market value. the idea to turn that property around for the public good. in this case, the county would go a step further and seize underwater mortgages. they wouldn't tear the house down. reduce did principal on the mortgage to the home's current value to continue making smaller monthly payments and not end up in foreclosure which would be a blight on the community. now, they would have to take the mortgages from the investors who own them now then resell the reduced loans to other investors and plan to make many of the loans fha loans, backed by the government and that's where you will see the

county. have of san bernardino eastern >> i'm wondering where you get elected in that place. your cities on the new high speed rail that -- i mean, you need an indio to san bernardino high rail don't you? >> talk about a bridge to nowhere. >> you got all the other green stuff working for you so well out there, too. >> yeah. >> your days are numbered. anyway, congressman, thank you. no. hopefully you'll be able to represent that side of things. it is tough out where you are and i saw numbers. it is like i think obama's up by 86 points in california right now. right? >> well, we could split california in to ten states. >> you could. >> that's true. >> and might not be a bad idea. >> yeah. different result. thank you for being here this morning. >>> coming up, we have wisconsin governor scott walker on the set this morning as our guest host. plus, boeing ceo and we have got a big squawk special coming up later this week. searching for solutions, the two men prosupposed a solution. alan simpson ander skin bowles warn warren buffett and becky this thursday. stay tuned for that. an

county police. >>> another city in california filing for bankruptcy. seema, good morning to you. >> reporter: san bernardino is edging closer to bankruptcy. the city council voted tuesday night to file for chapter 9. san bernardino would be the third california city to file for bankruptcy in just the past two weeks. it would also be the second largest u.s. city to file ever following stockton, california, which filed late last month. san bernardino has slashed its workforce by 20% but still faces a $46 million deficit hurt in part by the recession and high pension costs. >>> time for a brain freeze. 7-eleven is giving away free slurpies to mark the 85th birthday. you can get yourself a cup of the frozen treat at your local 7-eleven between 11:00 a.m. and 7:00 p.m. they have been selling slurpies for 45 years. a fun fact, winnipeg, canada, held the title of the slurpy capital for 13 straight years with residents buying 189,000 drinks a month. that's a fun fact derived for you guys from cnbc. back over to you. >> all right. thank you so much. now i feel like i want one. >>> today fairfax county leaders will l

county fails to meet a workout plan plan fixed by a federal judge, the u.s. biggest ever chapter 9 municipal bankruptcy could be dismissed. this is happening across the country. >> san bernardino is one of the cities we talked about the other day with rick scott was on -- you know, he turned down the high-speed rail money from the federal government and they didn't. jerry brown is going ahead full force in one of the cities we said, you know, indio near palm springs and san bernardino, there may be a time when someone wants to go between those two cities. what if you go and you don't have high-speed rail to get there. california will take care of that and make sure -- every city should have a monorail. every city. have you seen the simpsons? sam is coming to town from the administrati administration, sam huckster -- >> i would like to take a monorail here every day. >> it's around the city. it's not here. every city needs a monorail. you have to have a raised -- what is it, a bond issuance and raise the money so you can -- >> the jefferson county thing is amazing. they squandered $2 billion and then they go in, double down, borrow even more. >> did stockton every take money? >

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

san bernardino, with the very latest. jane? >> melissa, on the brink is the headline in the paper. there's accusations of cooking the books going back years now. what are the ripple effects? the countyon't compare to stockton's. people are looking at santa ana. and marilyn cohn said what's happening in san bernardino has people asking is river side next? now, riverside, like san bernardino saw huge growth in housing, followed by a big collapse, lower tax, high unemployment. but most of the city is having financial trouble in california have been north. vallejo, mammoth lakes and now hercules, a small city only nine miles from vallejo. the fbi looked at the city's books and the state controller called the financial records the worst he's seen. >> i understand that we're sort of the banner child or for, you know, what not to do as an rda. but we're turning those things around. >> now, rda is a redevelopment agency. how are they turning it around? the mayor said it's selling assets. voters approved a sales tax hike. police accepted concession, but what's making it worse in california, the state with its own fiasco is holding on to more money than cities were expecting. >> the state of

county. megyn: as all of these drivers are reckless to the end with other people's safety. trace, thank you. $2 trillion pension crisis gripping so many u.s. cities. san bernardinolifornia is the latest victim after just approving a bankruptcy filing. residents there are scared. there is a question about how many cities in the united states are about to be hit by this same type of dire circumstance. it's not just california and cities in that state anymore. we'll have an expert panel here after the break to discuss it and tell you what you need to know. police raid a pastor's home and haul him off to jail. look at them coming in to arrest him for his bible study. really? that's in "kelly's court." >> we want to stand for our beliefs but for every believer in phoenix who want to host a bible study in their home that they can do it without the city coming in. and saying this has become a church. [ slap! slap! slap! slap! ] [ male announcer ] your favorite foods fighting you? fight back fast with tums. calcium rich tums goes to work in seconds. nothing works faster. ♪ tum tum tum tum tums that's a good thing, but it doesn't cover everything. only about 80% of your

that san bernardino has a lot of people who are living under the poverty line, some 310,000 people, as many as 15% of folks there. this to me is the criminality, that folks retiring from the countyg this much money. bill: is it county workers or city workers or both? >> county workers. bill: the city is in debt $45.8 million. that's how short it is on its own budget. that is 35% of the annual budget. >> that's right. bill: that's a deep hole. >> it's a very deep hole. cities across the country are facing this already. we had reports from wall street that there would be 50 to 100 bankruptcies among cities and towns. some of this is being covered up. now we're seeing that there is lying going on, that states are trying to bail some of these cities and counties out. remember this debt is investments for older people for their retirement, municipal bond debt. this is circles upon circles at this point. we'll have to wait and see what the we will true criminal probe of this is. bill: jeri willis check her out on fox business network. the wills heirs money through friday at 9:00. alisyn: we want to give you more context on the situation in california. san bernardino is the third city