he locatbblobbyed for a securit

banner, securitized, the funding for the securitized loans. the problem with that is that these subprime mortgages which were actually, i think, quite safe in the early years, they had fixed rates, they had somewhat higher interest rates, but their very nature was they were issued to people who could not afford the 20% down payment but could afford the monthly payments. what the hud regulation enforced or forced the financial community to do was to create a whole new set of subprime mortgages. but by definition, you couldn't change the down payment. you could only change the monthly aim. and the only way to do that was to go to adjustable rate loans. and lo and behold, if you look at the data of the mortgage bankers association, the proportion of adjustable rate mortgages in i think it was 2003-2004 went straight up. and within a very short period of time, they found a goodly number of those couldn't make the first payment. and that's what set the whole thing off and created a boom which i don't care what type of monetary policy you had, you'r

risk would have to be retained by the securitize her. that would newly incentivize them not to buy junk. senators were listening to people in the mortgage industry -- we put in an exemption called a qualified residential mortgage. stupidly confusing. those were supposed to be a superduper safe category. to my dismay, the major proposal is to condense the two, to combine them and to have only one set of mortgages. and one you can't make that you can make without risk retention. this is been the single biggest cause of the problem and i'm hoping that they can be dissuaded and have risk retention. no mortgages were made in america before but 1980 when i came in apparently. -- that came in. [laughter] >> this is been a remarkable treat. thank you so much. thank you. [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2013] head of the centers for medicare and medicaid will be on capitol hill to talk about the health care law's implementation. we will have that live at 10:00 a.

we had a problem with private securitization and the problem is we separated origination of the loan from ownership of the loan and the risk it would default later on. that gave us volume-driven business. so forcing securitizers, those packages mortgages and selling them off as securities forcing them to keep some skin in the game was a key central reform of dodd/frank. it's been proposed as eviscerates that and i think it's highly problematic. there's a lot of political pressure on regulators to back down on risk retention. everyone wants to get the housing market again. they think that's part of the solution to our economic problems but wet want a sustainable housing market. we don't want to recreate the party we had prior to 2008. so, i'm very concerned about it. i hope they'll think it through before they finalize those rules. >> you still see, what 75%, 80% of the mortgages in this country held or coming from fannie and freddie? >> that's right. >> right. you would like these two -- >> right right. >> -- this action, this business put onto the private sector but that doesn't hap

farm nomo oh yes you are because all that big i think you read by by the good security that is securitizedhold on a wall of it nothing but worthless junk that is so now make it about a rich except those who actually do the job they serve it we've got to go i think the max. states of us are going to have a whole lot more. there's a media leave though so we leave the baby. was bush and see to. play your part of the physical. issues that no one is there still with to get that you deserve answers from. politic only on r t. the interview. that is a city in the secret world of the fast majority of the syrian people the sunni population there the want outside stuff isn't limited to the genuine people's uprising and it was appropriated very early on by outside powers turkey saudi arabia and qatar turkey is almost regretting its role because it now has to deal with militants on its borders saudi arabia is funding them continuing to bomb them it things it has a free it has a license to destroy syria it's astonishing that no one in the west has said that saudi arabia should get out of the syrian conf

farm no mo or yes you are because all that they're going to rebuy profit is a guarantee that is securitizedtold on a wall that nothing but worthless junk that is so many make it about a rich except those who actually do the job. we've got to go i think the max. states of us are going to have a whole lot more. there's a medium leave us so we leave that maybe. by the same motion security although your party has a goal the question is that no one is asking with the guests that you deserve answers from it's all on politicking only on r t. welcome back to the kaiser report imax keyser time now to turn to two guests carl gray a big point investor and producer of the documentary film life on bit coy and austin craig who is featured in the documentary gentlemen welcome to the kaiser report so let's go next i call i will start with you before we get to the film tell us about your how you got into bitcoin so it's interesting because in the. mid to late two thousand and nine just came across the wires first i have to be honest i thought it was something similar to this world of warcraft money that peo

would have to be retained by the securitize her which would incentivize them not to buy junk. then frankly because of a couple of senators, democrats, who were listening to people in the mortgage industry with put in a section called the qualified residential mortgage. it's confusing qm and qrm and those were supposed to be a superduper safe category for which you could securitize risk protection. to my dismay the major proposal of the five regulators is to condense and combined the two and you have only one set of mortgages, one that you can make and one that you can't make without risk retention. this has been the single biggest cause of the problem. .. budget cuts on the military. and later, the privacy and civil liberties oversight board examines in s a surveillance programs. of the next washington journal, discussing the oil industry. a population of less than 8,000, considered by some to be the capital of the american oil kingdom. bought and sold daily on the new york mercantile exchange and the proposed keystone oil pipeline is directly through pushing. a capacity of mo

the great majority, you should make, keep 5% of the risk if you're going to securitize them and super duper ones with no risk retention. they're collapsing, too. i'm surprised at how quickly people have in my judgment forgotten what was one of the major causes and i'm just somewhat disappointed, hoping they're going to change this so the answer is there's no pure guide against this. there's a lot of political pressure both from the banks and from the loan advocacy groups. they are channeling a "wall street journal" article a few weeks ago that attacked me on cutting sub prime loans because i was keeping poor people from buying houses so i don't think we've found a way to do that effectively. >> sir? >> ken monahan. neel mentioned at the beginning of this that american democracy is very good at fixing problems but not heading them off and the preceding panel talked about the issue of government involvement in the mortgage issue that are ongoing. can you think, is it a constitution issue? how should the government go about trying to address the things it knows that are on the horizon no

. >> on capitol hill a house committee willook at all the social securit numbers and othepersonal information. government is now collecting on the health care.gov website. lawmakers sa hackers have already tried to break in a some data has been compromised. a brandew poll out shows near 6 in 10 amecans oppose t health care law. in aeparate poll 56% of peoe say they're making sure everyone not the government e and that is responsibility. the whithouse admits the website still doe have issues, but insistsverybody will be able to sign up by december 15th. >>> police say a state senator an forme gubernatorial candidate is i the hospital after he was stabbed in his home by his own son. democratic senor dees is being trted at the universy of val have a hospital in charlottesville. police think he was stabb at his home in western virginia by his son, gus. police s gus was found dead at th scene. >>> a jihadist group linked al qaeda has claimed responsibility bombings near the iranian embassyn beirut today. about two den people there were killed. security officials telling reuters that securitcamera

those mortgages were supposed to be a supersafe category to securitize. to my dismay, the major proposal of the five regulators is to -- to combine the two, the other you can make without risk retention of any case. you heard that before. this is been the single biggest cause of the problem. i am hoping that they can be dissuaded and have risk retention as a rule of argument. they don't know how to make mortgages without risk retention. it apparently means no mortgages were made in america before 1980 when i came in. >> we are going to leave it there. this is been a remarkable three. thank you for the conversation and the questions. [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2013] >> on the next washington journal, discussing last week's virginia governor race. our guest is matt lewis. after that, rob richie with the group "fair vote." he talks about the gridlock on capitol hill. later, a conversation on u.s. surveillance abroad, and how it is affecting diplomacy. the council on fo

and that was a case for securitization, that was the case with the derivatives market, and, you know, so -- i agree with you we needed more transparency in the derivatives market, and i -- one of the things i applaud about dodd frank is the idea of forcing derivatives contracts on over the counter -- on clearinghouses, central clearinghouses and exchanges, and i'd be even tougher, i exempting different classes for derivatives, but going back and relitigating history, i think one of the problems we dealt wi with. we had a market that had grown so fast that there just was not the necessary transparently and there was just a big, big problem. >> i think it was almost a rhetorical question, i think, and the answer's, i think history has spoken to the wisdom of that decision. and i would emphasize, the lack of wisdom. and i think that mary's point was important, too. you can have structures set up to police these or oversee these markets, but if they are inadequate, then you're going to continue to have problems. i wasn't there, so i'm not here to defend that -- >> as soon as i heard the w

avoid this that some chinese regulators what includes tiny afforded bangs into the upper eyelid securitization pro un program. so altogether eight pm risk appetites of those in the sector so as you can see this happening to some index up nearly one and the hop percent now be up on the downside to what ninety and itchy and telecom stocks partly out of profit taking also ponting as earnings disappointed. alice see them walk it out will be on a book outlets just in case the policy meetings out next week is what's missing. maybe mark is also the thing about any investment decision by china's biggest property developer dan koch also a lot will play shot up with some bank was that all about. this dry hump that is the question many people i see in the markets. nothing could just come start and that's come. he has committed is a form ten forty two million us dollar investment in retail banks iq in hong kong. that deal not only make it the biggest cornerstone investors bought me some bank but also be up to the single biggest shareholder. so here's the question why would a property company makes it a bi

yelling and colored jackets like this all and it's all being come out of does one initializer securitizing whether it's art or people's kidneys you know there's a huge growing kidney market people showing that getting on the open exchange of people to sell their body parts to get enough money to go buy any warhol perhaps but i mean my goal which of course being from hollywood a lot of people do sell their blood to finance movies or they'll sell getting to sell their movie so it's done anything new for him however if there is total meltdown if there if this hyperinflation spreads to the u.s. dollar and it's overnight loss of faith in the dollar and it crashes one needs whatever wealth one can take on a plane trying to log suitcase full of gold it's extremely heavy the people at the immigration counters and tekken tend to notice the roll up in artwork or you have a u.s.b. stick with bitcoin on it they don't notice that so much you're more likely to be able to flee to whatever safe haven you're looking for art has always been an easy way to transport large sums of cash this is true couriers w

you know resold on a mortgage market you know conducted by come to crafts and then repackage and securitizingfor five and remortgage and rehab obligated and looks like something that came out of the back end of a big over there at the no good nick farm yeah that's what they're selling over there lloyd blankfein is no good my car he's got plenty of big sloppy strong it's all going to be destroyed with the use of as an effect a big going to go to work on lloyd blankfein pig farm no mo or no yes you are because all the big one to rebuy profit gives a curie that is secured sold on a wall of it's nothing but a work of junk that is so many make it about a rich except those who actually do the job. we've got to go i think the max. states of us are going to have a whole lot more. i've . led. a live. live live. live. cross talk rules in effect that means you can jump in anytime you want to live. live it was terrible they come up very hard to take a listen to get along here a plug that has sex with others make their lives let's play. lists. lists lists lists lists . welcome back to the kaiser report im

yelling and colored jackets like this all and it's all being come out of dollars financial as a securitized whether it's art or people's kidneys you know there's a huge growing kidney market people showing that getting on the open exchange of people to sell their body parts to get enough money to go buy an andy warhol perhaps but i mean my goal which of course being from hollywood a lot of people do sell their blood to finance movies or they'll sell getting to sell their movie so it's done anything new for him however if there is total meltdown if there if this hyperinflation spreads to the u.s. dollar and it's overnight loss of faith in the dollar and it crashes one needs whatever wealth one can take on a plane trying to log suitcase full of gold it's extremely heavy the people at the immigration counters and tekken tend to notice you roll up an artwork or you have a u.s.b. stick with bitcoin on it they don't notice that so much you're more likely to be able to flee to whatever safe haven you're looking for art has always been an easy way to transport large sums of cash this is true courie

you know resold on the mortgage market you know conducted by cop to craps and then repackage and securitizingforty five and remortgage and we have propagated and looks like something that came out of the back end of a big over there at the no good nick farm yeah that's what they're selling over there lloyd blankfein is no good my car he's got plenty of big sloppy started it's all going to be destroyed with the use of as an effect a bit going to go to work on lloyd blankfein pig farm nomo or yes you are because all that they try to rebuy profit gives a kerry that is secured sold out of all of it nothing but workless junk that is so now make it about a rich except those who actually do the job. we've got to go i think the max. states of us are going to have a whole lot more. please . please please. crosstalk rules and if they've got these you can jump in anytime you want. but you know that these volatility of bitcoin is what makes some people extremely excited that these. new digital currency avdotya people extremely wary. and that's one of the reasons why i caution people this is a very high r

know and resold on a mortgage market you know conducted by come to craps and then repackage and securitizeand forty five and remortgage ties and rehab obligated and looks like something that came out of the back end of a big over there at the no good nick farm yeah that's what they're selling over there lloyd blankfein is no good my car he's got plenty of big sloppy started it's all going to be destroyed with the it's a massive effect of it going to work on lloyd blankfein pig farm nomo or yes you are because all the big one to revive profit is security that is secured sold on a wall of it's nothing but worthless junk that is so many make it about a rich except those who actually do the job. we've got to go i think the max. the stadium is going to have all out war. is women are missing is protests. threats to extremists. fix. their business a bill press that lets us straight. to . the interview. dramas the truth be ignored. stories others refuse to notice. places change the world lights never. told picture of the day is long gone to from around the globe. local. player. playing. the fish l

those mortgages were supposed to \those mortgages were supposed to be a supersafe category to securitize. to my dismay, the major proposal of the five regulators is to convince -- to combine the two, the other you can make without risk retention of any case. you heard that before. this is been the single biggest cause of the problem. i am hoping that they can be dissuaded and have risk retention as a rule of argument. they don't know how to make mortgages without risk retention. it apparently means no mortgages were made in america before 1980 when i came in. >> we are going to leave it there. this is been a remarkable three. thank you for the conversation and the questions. [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2013] >> on the next washington journal, discussing last week's virginia governor race. our guest is matt lewis. after that, rob richie with the group "fair vote." he talks about the gridlock on capitol hill. later, a conversation on u.s. surveillance abroad, and how it is affecting diplomacy. the cou

they will securit secure the voh thousands of police officers across the country.ething pretty rare voting in democracy. we are excited and people are hopeful that we have a big turn out anturnout. >> many thanks adam. >> egyptian students are demonstrating outside of a number of yrt university in supt of mohamed mor morsi. it's been a hundred days since security forces stormed the mosque in the capital. >> turkey's foreign minister has spoken about the expulsion of the ambassador. he spoke exclusively on how the continuing tensions would affect the relations between the two countries. >> our policies of egypt were clear and will continue to be so. our statements against the military coup is not because we are supporting one group against another one. this one is because of our respect to the choice of the egyptian people. because the election in 2002 was the only free and fair election with multicandidates in the history of egypt and it's the egyptian people's choice that president mor morsi was elected president of there are a lot of reports coming from different

hamid karzai today dismissing a long-term securit agreement before the end of the year.s is a retired united states air force general. thank you so much for joining us. >> thank you for having me. >> please begin with the issue infghanistan. the question of the security agreement. clearly thousands of american lives have been lost and billions of dollars of aid and we are negotiating ov this agreement. it seems aurd anyway. do you agree? >> absolutely. the game is over. they are signing the agreement for the 30th of december only say sorry, we are out of there. we had a failed strategy for 12 years with the hearts and minds of counter insurgency. we don't win hearts and minds it is so offensive to womeand minorities and christians and jews. and we are not going to create a jeffersonian democracy. and pakistan created the taliban and they are funding th taliban terminate this. wehave been fighting the war over there. and the president's letter, he said that they ll ntaccept raids on homes except under extraordinary circumstances. >> we have kept himin office. he is on his

process -- it looks like it, their favorite away with risk do retention and home mortgages and securitization. we set up three categories of mortgages. it pretty much impossible to make them. the great majority that you're keep 5% of the ribs. ones that are r rez epaid and have no redengs. i don't know how people could a major otten what disappointing,was i think it was to change it. this, people. both the banks and the advocacy groups, nay ear channeling a "wall street journal" article attacked me from subprime keeping me from buying a conservative umbrella. to do n't found a way that effectively yet. >> neil mentioned democracy is ood at fixing problems but not good at heading them out. the panel talked about the issues of government involvement industry that are sort of ongoing. can you think of -- like bravi -- is it a institutional issue. how should the government go about making sure that you have on the horizon now? is it possible? >> human civilizations are prone to mass delusion. it's funny but not funny. i bought a house in 2004 and 2005. i didn't see the bubble connelling. fw we ha

he's saying that the government needs to securit control the sen the country, but kidnapped by militiast weeks ago, and there is a real face of lawlessness. the setting is incredibly tense and the shooting, we're hearing that there are armed militias gathering in different parts of the city where we're hearing also the brigade is sending reinforcements up to the capitol of tripoli. it's really a situation that has been deteriorating for some time. this was a tense setting when we arrived 37 we just got in earlier today, and really the event this afternoon being anything can happen tomorrow. people are very nervous. >> sebastian, one one last one for you. are we looking at the situation that is deteriorating to a point where we're likely to see some kind of clash between government forces such that they are, and these militias? >> there was heavy gunfire. there has been very severe injuries, and the type of, and the fear now there is anything could happen. we're going to be on the scene and develop throughout the day. it's an intense place and really spark a new wave of attacks. >> sebas

wean tell you t secret service demote was to ants om the president's securit detail. what they are accused of. >> south bay teen vanishes. her parents are desperate for aners. marla teez will have a live update. reporter: good morning. i'm b redell. we'll take you live to the south bay. tw workers are being treated for burns after yesterday's accident a the tla motor ctory. that storyoming up. >> we'll tell you about the new y one community is coming together showing support for a riding an ac transit buile >> and we've got rlly thick fog t there. good morng to you. i'meteorologist christina loren. 'll tell y what the visibility is wre you live, when the fog will clear and we've got rain on the way for e weekend. lots toalk about. >> thick fog is onessue for thick traffic another for the east shore freewa wher the b rig crash is startingo tie up your commute. a live look outside. that's the san mateo bridge. traffic ming ang there. we'll keephecking in ashings change. a lot of news ead. it's thursday, november 14th. th is "today in the ba" >>> good thursday morning. t

he locatbblobbyed for a securit firm. one interesting nugget in the book, the romney campaign apparently referred to the vice presidential search process which was top secret as "project gold fish," and christie's nickname was puffer fish. they had a variety of names, fish consin, for wisconsin. i should say, though, piers, a number of people from both parties are casting doubt on the situation. i talked to beth myers, she for one said she never heard of project gold fish or any of these nicknames, so that is just one person starting to poke holes in some of the accounts. >> we know that according to the book, chris christie called mitt romney at one stage, when newt gingrich won big in the primary. he said get out of your crouch and kick the [ bleep ] out of this guy. that is what you should do, he is a joke and you're allowing him to be taken seriously. which is the advice that mitt romney acted on, launching the mother of all attack campaigns against poor old newt gingrich in florida. what do we make of this? quite har

they are basically securitizing solar.id it before t key to understanding solar city it's not a solar company, it's not a green energy company. it's a financial company. kmart and sears say they will stay open all day thanksgiving starting at 6:00 a.m., all day, all night through what used to be called black friday, and now at least for kmart and sears one long sale. sears was the first to do this to open on thursday, then walmart and target did it. but now we moved back black friday all the way back. if you work there it's another day. >> it's thursday. >> the commentator talking about the war on christmas, it's a war on thanksgiving. that one's over. there is no thanksgiving. >> exactly. i noticed it went from halloween to christmas. >> also a war on our pocket books. they keep reaching in for more money earlier. >> people tightening the belt though. >> coming up on "today in the bay," the bay area city we'll tell you about taking a new tough stance on guns. >> police investigating now after a man catches fire aboard an

in the mortgage market, it was not at all the norm, particularly with the securitization in the secondary market. people made loans that were not sustainable over the long term or even the fairly short term. they were able to sell them in the secondary market. they began to fail and pay close attention to whether those funds worked for the borrower. the borrowers should have known better. the pricing on the loans was opaque. they might be advertised over a teaser rate as if that would be for the life of the loan. there were a lot of problems. as to the letter and the observation, it is a curious observation. the way congress passed dodd- frank -- title 14 of the law would have taken effect of its own accord at the beginning of january 2013. 10 months ago now. it would've had a new framework. it is not as though our qm rule has altered the status quo and without it the status will would have continued to operate as it was. change was coming. it was embedded in the statute. fact that we wrote that rule delayed the implementation of the changes in the market by one year. we have given indust

we've seen a lot of examples of manipulation cases, you know, massive fraud in large parts to the securitization market. i mean, ethical standards, the conduct of doing business, deteriorated substantially in the run-up to the subprime crisis and the government has not done anything since that crisis to correct it. it's refreshing to see these kinds of cases coming. >> i thought it was extraordinary that, you know, they make these charges and, you know, they're found guilty as a firm but no individuals. any thoughts on what sheila just said? >> i'm not sure the specifics of this case or any other case other than what i read in the paper. but i think at the end of the day, you know, there have been a lot of accountability here. and they're continuing to pursue the cases. i think we have to wait until it's over. i thought what sheila was talking about, was more the question of conduct. we have to keep improving the conduct. literally your brand is carried by every individual. so, there's a lot of -- everybody did this at this company or that company in the big firms. we fired a lot of people in 20

. >> yeah, this is securitization of long-term contracts for both commercial and residential panel installations, and what this speaks to is the maturation of the industry, the intuition instugsalization of the solar. and the yield is under 5%. so clearly, people really feel good about the prospects for solar. i prefer tam, the etf, to owning it individually. >>> up next, whale watching. surprising third quarter moves from the big guys. but are these plays right for you? we'll find out next. >>> plus, the hottest hedge fund trade of the year. >>> then, following a slew of neutral ratings on twitter, the stock is down today after one analyst hit it with a sell. s&p's scott kessler is here with what's behind the bearish call. that and much more is ahead on "the half." [ bagpipes and drums playing over ] [ music transitions to rock ] make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you open an account. >>> welcome back. it's whale-watching time as the world's biggest hedge fund buyers reveal

the qualified mortgages were supposed to be a superduper safe category which you could securitize. to my dismay, the major proposal of the five regulators is to condense and combine the two set and2 and have one one you can not make the one you can make without risk. you have heard that before. the single biggest cause of the problem. and hoping to be dissuaded have risk retention. they know how to make mortgages without risk retention. apparently it means no mortgages were made in america before 1980. >> we are going to leave it there. this is been a remarkable treat. thank you for the conversation and to the questions. [applause] the meir. -- mayor. thank you. [applause] next, on first ladies and look back at the life of mrs. eisenhower. then attorney general eric holder announcement that the johnson & johnson will pay $2.5 billion as part of a settlement with the justice department. a conversation about the political response to the financial crisis. >> today it is our pleasure to entertain for the first time our first lady at her belated birthday party. ♪ >> ♪ many happy return

they have is used, but this is different bece rse, one, it deacai with national securits m so it s more essential. it is more important. getting it wrong is potentially more for less but the biggest difference is the secre. >>. , st other are3 v of the govelevment, let's take defense for example, the public and look at it. the p to alic and cabet the hea. the hearings can reveal a lot to be a ruch uch ber sittini fin hearings beforesas- during the cold war in debating whether we needed how many ntherlear submarines. in the the cost, who manufactured, who could lobby because thprogram mancatacl here we can hold congress accountable. we could say, you knoui did this person st te for that because this is in the district? and we used to do r yeorting on in top-secret america you cannot do any of that, and that is wlic as n that is one reason why the secrecy is counterproductive because it excludes the p to alc debate about what is the smartest way. it excludes a public accounting of how well the cabover aent is doincui and even the best card to people, and i believe that most, you knoui by

we have a securitization of mortgages.t means is banks will mortgages and sell them to other investors in what is called a secondary mortgage market. a $10 trillion market for buying and reselling of american mortgages. fannie mae and freddie mac are the two largest players in the market as they are buying mortgages, guaranteeing them so investors will buy the securities knowing if the loan defaults, they do not have to the credit risk. they only have to worry about what happens to interest rates. a little bit easier to predict how it will perform. what this means for you is if you went to your bank, it may be went to chase or somewhere else and you got the mortgage i met there is a good chance if your loan can be sold to fannie mae or freddie mac or another investor willing to buy it at a good return, chase a not want to keep it on its books. complexmortgages are instruments. who wants to have a loan that has a dirty year to charity? they may sell it to fannie mae and freddie mac. what they will continue to do is they wil

are shipped to airports each month, offering air travelers some relief while maintaining a level of securitn really is there to make them safer, make travel safer. and allow them to more conveniently do their travel. >> the ls-10 is now being installed at several major airports including london heathrow. officials there hope to have them fully operational by the end of january when new rules >>> a deadly winter storm is heading east this morning. will it interfere with your thanksgiving? we'll ask peter greenberg about who needs to worry and when. that's ahead right here on "cbs this morning". [ female announcer ] let betty do the measuring and get a head start on delicious homemade cookies. visit bettycrockercookies.com for fun holiday ideas. betty crocker cookie mix. just pour, mix...love. ♪ ♪ [ female announcer ] kleenex tissues help stop moisture better than the leading competitor. save yourself from an awkward situation. don't get caught without kleenex tissues. and now try our new lotion tissues. they're more soothing than ever. you may be muddling through allergies. try zyrtec-d®. po

in the mortgage market, it was not at all the norm, particularly with the securitization in the secondary market. people made loans that were not sustainable over the long term or even the fairly short term. they were able to sell them in the secondary market. they began to fail and pay close attention to whether those funds worked for the borrower. the borrowers should have known better. the pricing on the loans was opaque. they might be advertised over a teaser rate as if that would be for the life of the loan. there were a lot of problems. as to the letter and the observation, it is a curious observation. the way congress passed dodd- frank -- title 14 of the law would have taken effect of its own accord at the beginning of january 2013. 10 months ago now. it would've had a new framework. it is not as though our qm rule has altered the status quo and without it the status will would have continued to operate as it was. change was coming. it was embedded in the statute. fact that we wrote that rule delayed the implementation of the changes in the market by one year. we have given indust

can we draw a distinction between law enforcement activity and the fishing activity then national-securit interest to prevent%national-security int to prevent threats to national security? >> i can start with the civil libertarians you point. from our perspective is about particular suspicion. if law enforcement targets for investigation because they have reason to believe they are doing something wrong, that is a law enforcement model that has worked well to address crime even very serious crime that has a lot of brutality and death throughout this country. that is the model that we use to address gains or organized crime. so what we have seen in fact, it is not to the other model of a broad collection of data of even domestic programs. in southern california over -- local jurisdictions set up license plate readers to help to find stolen cars but if you talk to them it is also intelligence to gather large amounts of information on the propriety whether they commit a crime or not. or the fbi change the internal regulation to allow a new category of assessments so there has been a move at

a lot of mortgage retainers and securitizers and a lot of gses were making a lot of money off of it and rationalizing this is word people get mortgages. a lot of african-americans and latinos who lost their homes did not become new homeowners. they probably had fixed rate mortgage through fha that got refinanced out in sub-prime loans are some of them actually own their homes and were pushed to get cash and take up his mortgage. i don't want to go back to that. i want to repeat my earlier point homeownership doing if you're fha and low down payment is fine as long as there's counseling and you have past histories of making utility payments that can show you the people are ready for the next step. you don't do them any favors by giving them a mortgage and home that they don't understand that they can afford and they will eventually lose the house with a lot of heartache for them and their families. it's not the best way to go-go. >> youness theme of the great divide one of the biggest diversions is in the poll was attitudes toward credit. basically using credit is a positive force in her

the mortgage market running up to the crisis it was not at all the norm, particularly with the securitization and the secondary market. people made a lot of loans that were not sustainable over not only the long term, but even the fairly short term. and yet they were able to sell those in the secondary market and, therefore, did not have to and often began to fail to pay close attention to whether those loans actually worked for the borrower. and borrowers made some bad decisions and got into some bad loans where they should have known better, but often the pricing of the loans was opaque. they might be advertised over a teaser rate as though that was going to be the life of the loan, and it was just mispricing. so there were a lot of problems there. as to the letter and the observation, you know, it's kind of a curious observation. the dodd-frank act was passed and signed into law july of 2010. at that point the framework here was cast in stone. in fact, the way congress passed dodd-frank, title xiv of the law would have taken effect of its own accord at the beginning of january 2013. so ten

adam: does he have a proposal how to securitize, essentially the housing market?eep money flowing. that is what fannie and freddie do, whether they do it well or not is another discussion. >> at the would say if you want to dismantle fannie and freddie do it in the bankruptcy courts where shareholders have a place in line. don't wipe him out. these apparent proposals wipe them out. i'm not expert on each one of them. he will elaborate on this tomorrow. it will be interesting. from what i understand 1:00 p.m. press conference. you know, ralph nader, shareholder activist -- adam: if government does this, give everybody a free corvair. >> maybe do another deal with jamie dimon and -- next bank they sue, do that as shareholder relief, homeowner relief. adam: charlie gasparino. thank you very much. lori: while you gentlemen were talking the dow hit that milestone, that psychological mark of 16,000. let's go ahead to see what's behind the move with jonathan corpina joining us from the floor of the new york stock exchange. what do you think? will we close at 16,000 today

we did get a whiff of an sme asset backed securitization plan. it's gone away in the interim. is it time for mr. draghi, perhaps, to put that back on the table just to talk about it, perhaps, so you show the market that there is still very much an easing bias and a willingness to help small and medium sized enterprises with funding? >> what could be a possibility for the ecb would be that they extent the regime in the middle of next year to maybe 2015. this could be one in the short-term. but for small and medium sized company, i think it's not to the ecb, it's, instead, from the political side and to improve the credit conditions. >> okay. thanks so much for joining us, heico peters from deutsche bank. and we do have a poll running on our website asking you whether you think a rate cut is likely at this meeting. i don't see it, really. annette? >> i think it's a very, very uk bias we're having in that poll, but that's just my first reaction. people who think that rates will stay at the level where they are now and almost 50%, so i rather doubt it. >> so hold or fold, ross, ar

a lot of mortgage originators, securitizers and for while a lot of bond investors, gses, everybody wereionalizing it as we're helping poor people get mortgages. a lot of the african-americans and latinos who lost their homes did not become new homeowners in the subprime praise. they probably had saved 30 year fixed rate mortgages and refinance out into these toxic subprime loans are some of them even owned their homes and were pushed marketed come get some cash, take this mortgage. so look, i just don't want to go back to the. i would just repeat my earlier point, if are going to support homeownership, doing it to fha, people with low down payments that's fine as long as there's counseling and you've got steady passage of making regular payments, that can show you that people are ready for the next step. you don't give them any favors by giving them a mortgage and home they don't understand, they can't afford, they can't handle. they would eventually is that house with a lot of heartache and it's not the direction we want to give. >> again in this theme of the great divide, one of the b

proposal is one that would effectively get away with risk retention in home mortgages at about 100% securitization. we set of three categories of mortgages. we made it pretty much impossible to make them. the great majority, which you should make and keep 5% of the risk if your going to sigir dice them and then superduper ones that are sure to be repainted have no risk retention the a collapse, too. i think the question is i'm surprised at how quickly people have in my judgment forgotten what are one of the major causes. i just -- somewhat disappointed, i think they can change it. so the edge answer is there is o pure guide against this. there's a lot of political pressure. by the way, both from the banks and from the advocacy groups. they are channeling a "wall street journal" editorial of the wisdom that attacked me because i was keeping poor people from buying houses. that sentiment is i am afraid returning so my answer is we haven't found a way yet i think to do that effectively. >> neel mentioned at the beginning of this that american democracy is very good at fixing problems but not good at

i think a lot of mortgage originators, securitize nursing for a while censor while investors of gics,dy was making a lot of money and rationalizing us in helping poor people get mortgages. a lot of the african-americans and latinos who lost their homes did not become new homeowners in the subprime craze. they probably have saved 30 or 60 rate mortgages that have refinanced out into the slums. some of them actually even own their homes and were pushed market it, get some cash and take out this mortgage. so look, i don't want to go back. i would repeat my earlier point. before going to support homeownership, doing it through fha and even with low debt payments is fine, as long as there's counseling and history of making regular utility payments were what can show you that people are ready for the next step. you don't do them any favors by giving them a mortgage and home that they don't understand they can afford, can't handle. it's a lot of heart ache for them and their families and it's not the direction where want to go. >> again, in the theme of the great divide, one of the biggest e