questions on july 8 about whether investment staff has experience with asset backed liabilities, securitization, collateralized loan obligations and assigning credit ratings to individual securities. the minutes fail tomination that stansbury mentioned these 3 issues go hand in hand with investment. the minutes report only that mr. coker stated ers contract out to external managers for this expertise and the minutes do not include that mr. cocker had expressly noted none of ers investment staff has experience in these areas that commissioner stansbury thoughtfully raised. the minute also do not report whether ers intends to have a external manager review the [inaudible] loan package before you buy them. to me that seems as if you would be violating your fiduciary responsibilities if you fail to have them analyzed from the perspective of asset backed liabilities, collateralized loan obligations and the issue of defining credit ratings to individual securities. who is going to review this package of loans that apparently ers staff are not qualified to analyze? >> any other members of the public w

the other bonds are securitized and should be a lot more secure.he blackstock group are advising and bia, a bond insurer, it has guaranteed the puerto rico power. here is a crazy situation. if in fact it were to default, it is possible the bond insurance company, if it were to enforce the seizure of assets, and owning the puerto rican power utility. which is a very bizarre situation, but the securitization of bond payments by revenues is a serious issue and should lead to much higher security, much less risk. it is a piece of puerto rico that would default, not the whole thing. erik: precisely. look at erik schatzker how $72 billion is not just $72 billion. the seniormakers," adviser on president obama's climate change proposal, that is an interview you will want to see. our twitter question today, do you think president obama will get a global environment deal? ♪ ♪. tom: good morning, bloomberg "surveillance." vonnie: a major insurer turns down one bit and accepts another one. that rakes up a merger plan partner re-had with access capital holding.

questions on july 8 about whether investment staff has experience with asset backed liabilities, securitizationoan obligations and assigning credit ratings to individual securities. the minutes fail tomination that stansbury mentioned these 3 issues go hand in hand with investment. the minutes report only that mr. coker stated ers contract out to external managers for this expertise and the minutes do not include that mr. cocker had expressly noted none of ers investment staff has experience in these areas that commissioner stansbury thoughtfully raised. the minute also do not report whether ers intends to have a external manager review the [inaudible] loan package before you buy them. to me that seems as if you would be violating your fiduciary responsibilities if you fail to have them analyzed from the perspective of asset backed liabilities, collateralized loan obligations and the issue of defining credit ratings to individual securities. who is going to review this package of loans that apparently ers staff are not qualified to analyze? >> any other members of the public who would like to s

ofurities, securitization securities that turned out to be highly toxic. that was about us.bout us. >> i think one ought to tread more humbly with respect to comparisons. the fed was not exactly the last set of people to understand what 2008 was all about. they were near the last in line to get it. of what no conception was happening before or during the events. in little less quick to draw that analogy. this is meant to be globally incurred -- interconnected world. that is the permanently echoing cliche and there is an element of truth to it. we are one, especially one my opinion the wrong idea, that we must have 2% measured inflation, that we must manipulate interest rates rather than allow -- we must manage markets upward to create asset values that will stimulate spending. that is the mantra from central bankers and that is a worldwide idea, the wrong idea. these ideas, if ideas were ever important in finance, and the ideas are made in america. olivia: supporters will say they will help, market, perhaps leaving little room for employment. markets will get a new set of sp

those loans were securitized. muchayment is coming and slower.u are expecting to get $1000 per month from a borrower and you are only getting $50 per month, the repayment is coming in at a much slower pace. scarlet: you're also looking very carefully at this as well. thank you for putting this into perspective for us. it is important to discuss and understand. up, best-performing gold-mining stock in the past decade is bracing for another plunge in gold prices. we will hear from the ceo. ♪ scarlet: welcome back. storiesook at the top of the hour. forecasters are more confident this hurricane season will be a breeze. scientists are warning residents to be vigilant as this month tosses season hits its peak. a below normal hurricane season. expectation right now is for 6-10 storms, strengthening into her gains. not only suffering through an economic crisis, but also experiencing one of the worst droughts in u.s. history care july was the fourth driest month in the capital since 18 98 to only 1.6 inches of rain fell last month. take a look at the wor

instead of what you saw with highly dependent on the securitization market, lending is just the oppositeit's a marketplace with tens of thousands of investors, hundreds of thousands of dollars. very distributed, very diversified trad. mark: you have partnerships with some of the traditional banks. are those partnerships key to lending club's growth? renaud: i don't know if it's key to our growth. we still have a lot of direct to consumer acquisitions. banksnk an alliance with can really yield benefits for the banks, for lending club, and more importantly for consumers and small business owners who benefit from these partnerships. what goeshink about into the cost of credit, it is the addition of the cost of operations and the cost of capitals. lending club provides a low cost of operations. the banks provide the low cost of capital. together we bring more -- mark: the chairman and ceo of lending club joining us from washington. stay with us. "bloomberg market day" continues in just a moment. ♪ after spending billions, egypt finally opened its suez canal expansion and it will have big ram

he realized there was a securite pantomime intended to intimidate would-be thieves rather than catch smugglers. the security guards who ran the showings were just as bored as everyone else. but they could fit this distantc boots, but they wouldn't fit. but these were just a little to big.the still, the seed of the idea was planted and he patiently waited in lineda each day to leave the plant at the end of the shift. acce they were the signature fashion accessories of small-town north carolina. everyone at the plant more than. they wore big oval medallions and embroidered with fake diamonds. the hispanic guys wore cowboy buckles with ornate gold trim and even the women wore them. they always set off the lawn but the guards never asked them to take it off.love. cut the disc inside the glovede. hype the love inside it and took it into your waistband. position your belt buckle just in front of the desk, cross your fingers as you shuffle and if you get flagged play very coolih new stuff belonged. he finally saw it and this is how the smuggling was done. so that is sort of how he got two d

explained this and understand this fully by technical people who say there are five degrees of securitization to reach the level of security that a federal server has. she's claimed well, when bill clinton was president, we had the system. well that wasn't recently. she needs to work on a secure system because foreign governments can hack the system and get the information! that's the fear! >> we're learning that is the fear on a number of intelligence agencies right now. you're exactly right. judge, it goes beyond her server. a thumb drive, her private attorney in possession of it, with classified information on it. what is going on here? >> that's where we're getting the claims of disparate treatment. we saw petraeus who had documents in his house. it was the documents were found, he was criminally charged. no one is saying she should be criminally charged, we don't know crime has been committed but enough fbi is looking into this and seeking a warrant. we know she had documents on the server and given them to the lawyer to keep in the safe which is not a skiff, the proper means for keeping

accounts link back to government server to employee at the state department, defense, even homeland securitnse secretary carter confirming the pentagon is investigating accounts linked to military e-mail dresses. noting adultry could be a carillo fence in military law. >> of course it's an issue because conduct is very important. >> but civil i don't know feeling the fall out too. reality star josh dugger issuing an apology admitting in a statement i have been the biggest hypocrite ever while if talking about faithful have wheel unfaithful to my wife and admit to go the abusing teens. learn your lesson and make end and your honoring hacked customers to press charges against ashley madison. >> she has more on "nightline"after kimy kimmel on channel situation. first on 7 news at 9:00. a little dance therapy at bay area hospital. >> san francisco police officer >> san francisco police officer talked about his dance off with >>the buttery jack was a huge r tasuccess.ut his dance off with people went crazy for a burger with melted garlic herb butter. now, here's the sequel... ...with portobello

securitization of p securities that turned out to be highly toxic. that was about us.n't about us. this is about the governments abroad. what we have to assess is how those development abroad could ink ping on us. olivia: jim, bill says the selloff clearly isn't made in america. jim: one should tread more humbly. the fed was not the last set of people to understand what 2008 was all about, but they were near the last in line to get it. certainly they had no conception of what was happening before or during the events. a little less quick to draw that analogy. this is meant to be a global interconnected world. that is the permanently ecoing cliche. there is an element of truth in t we are kind of one interconnected capital market. we are one especially one global idea on central banking. in my opinion the wrong idea. and that idea is we must have 2% measured inflation. we must manipulate interest rates rather than allow them to be set through prices. we must manage markets upward to create asset values that will stimulate spending. that is the mantra from the sentra ban

economist and brain jz macroeconomist couldn't see into the had very deliberately opaque market for securitization, we have no idea what is going on there. it is the main source of growth and huge bubble in credit including in their shadow banking system. let me close by just saying this, i sum up 3 concerns. i have been attending this things since the hedge fund meeting. time is running out. i have been very impressed by the board-the quality of the board staff >> time >> staff and the board, but i have been saying you have to figure now ways of hedging this fund. you still have to do that. >> that you -thank you very much. any members of the public who would like to speak now in general public comment? >> sorry i didn't fill out a form. [inaudible] representing retired city employees and following up on what petric [inaudible] and sylva [inaudible] there is concern about the dlhp program. i notice it isn't on the agenda for this meeting and were adviceed it probably would be. there is a nob nub on the ballot for november on surplus lands that indicates the fund are used to help provide secondary

today these candidates wanted to focus on health care and national securit

inaudible] regarding ers investment staff and whether they have experience with asset back liability securitization. loan obligations and a finding credit ratings to individual securities noting they go hand in hend hand with a potential [inaudible] investment. mr. cocoresponded that no ers staff has such experience and contracts with external managers for this expertise. there is no bench mark and no liquid secondary market. has a external manager and fiduciary who reviewed this investment. stance berry noted it would be unprecedented into engage with the city under the guise of it being a financial investment to further the city social policy goals. investing in the [inaudible] would set a bad president for ers, so please, table this investment. the investment is a sad symptom of pay to play politics in the city and nothing more. why is ers investing in market rate loans, using [inaudible] at the expense of not building dmr housing? if you set this awful precedent will the puc come next begging for ers to invest in the water system improvement program or water revenue bonds? don't set this preced

the capital market side of the business, our cfo used to be treasurer at wells fargo, opened up securitizationk participation and helped us grow. we think joanne has the same opportunity on the member side of the business, inher rating strong marketing business development effort and relatively nascent community effort and think great opportunity to deliver more community value into our membership base, helps us further distinguish ourselves from the banks. >> mike, the firm recently jumped into student loan refinancing as well. what's the opportunity here and what are the dangers, because it seems with rising interest rates, one and then just two there's a lot of risk here, people are going to default. what's going to determine who has the formula right to actually succeed in the space? >> sure about 1.3 trillion of student loan balances outside standing of which maybe 2 to 300 billion are addressable for refinancing. the athat refinancer agents like sophie have taken look past the fico score, look into things like income, education, profession and feel these are more robust ways to underwrit

the crisis was very much about us, subprime mortgage lending, securitization of securities that turned to be highly toxic. this is not about us. this is about development abroad. erik: here with me this morning, bob michele. is -- there are differences of opinion as to what bill dudley intended to convey yesterday. what was your take away? bob: i took away that they may or may not raise rates in three weeks time. i think they should. i think if you look at the u.s. economy, it looks fine. we'll see gdp in a few minutes. they have the cover to do it. if they are going to worry about what's going on internationally, and they are. how do you know you're not going to get those bursts every so often the next time you do think you may want to raise rates? erik: of what use is it for market participants to have bill dudley give a this but that address where he says, the likelihood effectively feels lower now but things could change between now and then. there is important data that may help guide the fed in one direction or the other. bob: he is trying to calm the markets. erik: did it work?

erik: you mean a securitization? >> yes. we have had some jumbo loans from major wealthy people. is a slightly riskier profile. erik: it is not subprime. >> but be very careful, it is not subprime. matt: why are we being so careful? >> because the credit scores are so relatively high. it was like 688 in the pool. matt: so because it is not subprime. >> that is significant in what you are seeing across lending broadly. you are seeing higher credit standards. i think it risky borrower in 2015 is a very different risky in 2008. erik: how important is that that the private capital is moving back into the main dream? >> it is a clear sign that the recovery in housing really has infirmary. home prices have been rising at a firm basis. we are seeing a bit of an inventory problem. i think this is the first sign that investors are willing to embrace risk after what was a tumult to as years following the crisis. erik: that is an understatement. >> should we go over to india for our second thing? erik: why not. >> let's take a look at the indian stock exchange -- stock index, rather. we hav

the securit booth was destroyed -- security booth was destroyed. >> we don't know what's in the air.t could be toxic and harmful in the future. >> what you are looking at are the tents set up as triage portable hospitals. the -- as far as the air goes, the head of the environmental protection bureau says pollution levels are being monitored. there are chemical crews in testing the air. that environmental agency says it could -- if would be harmful if you breathe in this air for a long period of time. now, the president of chine now has promised a thorough investigation into exactly what happened and quote transparent information disclosure to the public. focus right now. course, looking for suive vooers -- survivors. people are reported as missing. there will will be a lot of long-term health effects some. pictures are helpful. the devastation to the rows and rows of cars and buildings completely bushed out -- burned out. >>> back here at home, san francisco police arrested one person. they are still looking for two others in connection with the armed robbery of two tv news crews inc

some of these first tier securitized bonds, melissa, are down 30%., not the equities here. i admire the analysts for coming out and trying to defend these stocks. we've had many of them on, none have worked out. at one point i suppose they will. today's under the radar name is another food company, united natural foods. big food distributor, slammed again, down 37% year to date. but defended today, calling it the new best idea, recent numbers better-than-expected. pretty fat $72 target on united natural foods, about 45% upside. another disappointing food related day. >> we've seen a lot between the fresh market and whole foods, troubled sector. we did see this taken to the positive, just as you were talking about it. >> there you go. >> melissa, thank you very much. >>> the final oil trades are crossing for the week. will oil close the week below $40 a barrel for the first time since 2009? we broke below that earlier today. we're above it right now. $40.52. stick around to see where crude closes. you're watching cnbc. want bladder leak underwear that

they just did a securitization two weeks ago at less than 5%. of the leaders in solar financing. with the lowest cost to capital in the business. it has nothing to do with the price of oil. >> you're confident your price target is $75 which would imply 65% up side from where we are now. you still stick with that? that's quite a big return. >> it is. the stock was at $75 a year ago. the retained value, the asset base here doubled in the past year. the stock went from $75 to less than $50. that is classic multiple compression. some of that, because of this bizarre trade with oil you alluded to. >> tonight on "fast money" we have the morgan stanley analyst who upgraded solar city to overweight and says buy the dip. >> next up, the world's cheapest emerging market. is this a market you should inves invest in? i'm here at the td ameritrade trader offices. ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you vi

but some of the bonds, even some of the tier-1 securitized bonds out there that should be trading at're up 60 cents, 70 cents on the dollar. not trying to create any concern but do you believe we are going to see a number of bankruptcies in the oil space before this is all said and done? >> well, i think this is largely dependent on just how long we wwe stay at these sub-50 oil prices. if this is a price deck we have to deal with over the course of the in ecthree or four quarters, i think there is no question you will continue to see companies with a lot of stress on their balance sheet and perhaps some that go into bankruptcy. we've had a couple bankruptcies declared already in the oil patch zips january and i think in that very low oil price environment we'll see more. >> i know you don't know the pricing points probably of all these companies out there, but dave, if you had to guess and you looked out, $44 a barrel. how many companies can withstand that price level for six months? maybe we won't have it. but if we do? i think there are companies out there that have assets that dis

we look forward to what the social securit citizens have done in electing new board members.oing on in this community. we have churches who have never been out in the community knocking on doors, serving their community at large. it's so much more greatness going on in the community that that's the image we want to portray. >> we have been watching the movement. we are watching the progress with you. i'm curious what your thoughts are about what needs to continue to happen? it is momentum you talk about. what needs to continue to happen because the fact is, as i know you'll recognize, there's a problem of gun violence in the community. what are some of the steps you think need to be taken? >> well, the biggest thing is to allow the work that the local organizers are doing to continue to work and to allow the relationships that have been established to continue to grow. when you talk about gun violence, america is under siege from gun violence all across the country. gun violence from black on black crime, gun violence from police brutality, the guns are out of control in this