our guest ischairman sheila bair of the fdic. tom braithwaite of the financial times and deborah solomon are hear as our reporters. next question. >> i just like to ask, the -- underdog-frank, the financialn -- under dodd-frank, the financial stability over sight council was created. this has you sitting aside timothy geithner, i wonder if this includes the credit union, i wonder in times of crisis how this war council will be with all these people around the table. >> right. well, not all of them are voting members. even if they were, i think, there's one lesson i learned during the crisis. people with diverse viewpoints can come together and make a decision and make it quickly. we have done it over and over again with our own process. that is a fairly elaborate process requires a superio majority of the secretary of treasure with the concurrence of the president. those decisions got turned around quickly. when the situation calls for it, it can be addressed. if the situation is not clear, sometimes a more deliberative process c

with sheila bair. after that former secretary of state, condoleeza rice. >> this week on c-span's "newsmakers," sheila bair. one of government officials who will be responsible for implementing the new dodd-frank regulation laws and to address the mortgage crisis currently facing our country. here's to question here, tom of the financial times newspaper. mr. brinkly first question? >> chairman bair. we are in the middle of a foreclosure crisis. to what extent is this a failure of regulation? >> well, i think it's a very good question. um, you know, it turns out this was an issue-wide presidency with large servicers. the banks were the primary supervisor. we have been collecting information that you have not been implicated in this. that's because they have small portfolios. it was really a symptom of size. it's very unfortunate. so in our back up policy. we have been told this is a process issue. that all the information is in the file. the person who needed to sign the affidavit had not been looking a

sheila bair will be joining us on the show today.atest issue with oprah on the front, a great article on the 50 most powerful women. >> let's get some clarification. we talked about this last hour, kind of knocked it around a little bit. this jim demint statement. so demint, we were having this debate back and forth. it's very convoluted. >> we weren't watching, i was trying to figure out -- >> what happened is demint makes a statement in '04 that people who are gay or promiscuous shouldn't be allowed in class rooms. then he apologizes in '04. i thought someone was dredging it back up based on our discussion and what was in the script. but no, he said it again this past friday. it sounded like he was saying it again. and then his staff seems to be backing down again saying oh, no, no, no, he believes it's a local issue. what's the story? have you guys been following this at all? >> i haven't been following it until i tried to follow what you and mika were going through this morning. >> clearly mika straightened you out during the com

chairman sheila bair and top justice and housing officials. the goal? to coordinate the government's response to the foreclosure fiasco. housing and urban development secretary shaun donavon was also there, and he says it's a big task. >> the issues around documentation of foreclosures are only one part of the broader concerns that we have and what we're looking at. we today assembled almost a dozen agencies from across the federal government as part of an ongoing process to look comprehensively at this. >> reporter: the federal housing administration is checking to make sure mortgage servicers are following procedures. specifically, it wants to make sure borrowers are contacted about their options when they fall behind on loan payments. so far, the f.h.a. has found significant differences in performance at different firms. sources tell me you've reviewed bank of america's processes, next you'll move to wells fargo and down the line, where are you in your investigation? >> i'm not going to comment because it's an ongoing review. what i can tell you is w

chairman sheila bair says foreclosures are a necessary part of working through the mess. >> i think we're going to get into more and more problems with the issues that are surfacing now on servicing, which is why i've tried to throw out a few ideas about perhaps how we can triage the process, make sure it can continue moving forward. >> reporter: bair's ideas include continuing foreclosures on vacant properties and greater payment reductions on modified loans. ideas she says won't require legislation. but some say fixing the problem won't be that simple. legal uncertainty surrounding the mortgage electronic registration systems, known as mers, has complicated the process. the center for responsible lending c.e.o. martin eakes says that's making it difficult to know who has the right to foreclose. >> i don't know how you fix that, i think it will take legislation to set up a national electronic registry if the problem of doing local filings is really such a big problem. >> reporter: but paul willen, a researcher for the federal reserve bank of boston, says cutting mortgage payments won't s

does the federal depository insurance company that is a cause i government agency that's run by sheila bair and when a bank is insolvent the f.b.i. see steps in a guarantee all the deposits under i think it's a quarter million or half a million dollars now they fire the senior management they tell the shareholders we're sorry but your bank is insolvent you wiped out they take what's left there they find a buyer washington mutual's a. great example of one to j.p. morgan for a couple of billion dollars and once the net of that leftover money is goes to the bondholders typically twenty thirty cents on the dollar so they lose a hefty chunk of their money again that's the penalty for lending money to an insolvent institution sweden did the same thing they essentially nationalized on a temporary basis all of their banks when they had their crisis nationalization is the wrong word it really should be called a prepackaged bankruptcy resolution they cleaned up the banks they threw out the lousy management they they sold off the debt for pennies on the dollar they recapitalize the bank and they spun

in june, 2006, sheila bair became the 19th chairman of the fdic. she came to the fdic with a wealth of experience on capitol hill, u.s. treasury, regulatory and academic experience, and to say she came and hit the ground running would be putting it mildly. those of us at the fdic soon came to realize how forward-looking she was on so many fronts. i think it was not long after that that the rest of the world came to see what we saw which is how far ahead she was of so many people on so many issues. and it wasn't just on issues like the need for loan modifications, the need to improve the securitization process, the need to try to instill some market discipline where it had lapsed, but her leadership on all those policy issues was critical, but then during the actual crisis when it arrived, the way she led the fdic was critical. i think both the fdic and american people have -- owe a big debt of gratitude to the way she led us through that experience. so with that i'd like you to please join me in welcoming chairman sheila bair. >> thank you. that wa

credit for stepping in and saving the economy than he did and called former treasury hank paulson, sheila baires saying they stepped in at exactly the right time. it's clear he doesn't think this economy has fully turned around. still a lot of repair ahead but very interesting what he said about taxes. he's been outspoken about saying tax rich people like me more. he's never before said you need to cut taxes for the poor even more than they are already cut right now. >> he brings up a good point. the t.a.r.p. program watts under president bush under a bush appointed treasury secretary henry paulson and bush appointed fdic chair. bot om like he's trying to apportion the credit where it needs to go for that part of the economy. good to see you. thanks for bringing this to us. >>> let me bring you up to speed in some of the top stories we're covering. the man who tried to bomb times square and failed has been sentenced to life in prison. fayssal shahzad was defiant warning the car to brace yourself. in connecticut the first department tried in a gruesome home invasion found guilty of 16 of 17 cou

sheila bair. thank you for being on "newsmakers". we will be right back with our guest reporters. we're become with our reporters deborah solomon. what do you hear? >> i think it was interesting her views on what's systemic. she's really seems to see interconnectedness as the linchpin. she's looking at, and another folks seem to be looking, if the firm goes down, where do the tentacles expand to. that determines whether the company is systemic or if they have counter parties in europe and in asian. it's really how far do their tentacles spread into the financial sector. in today's world. isn't everything interconnected? >> that's a huge issue. so many firms are interconnected. a hedge fund that does a lot of swaps with participants around the county, they would have a bigger impact because people start calling their positions, they would be unable to make good on their decisions. i can guarantee there's going to be a lot of lobbying. i think this needs to happen fairly quickly. the firms say they need to know if they're going to be designated as systemic. they put a request out fo

sheila bair and fdic and christine burney and elizabeth wa warren. who's on your panel?nference i'm writing about in the book, she has taken all the money of her foundation and spending it in her backyard in omaha. why do philanthropies all around the country do the same thing, actually begin to treat their own hometowns like they treat their families, whatever the problem is, try to find a creative solution? it's happening. we need to put the spotlight on it and make sure it aksccelerat. >> it should be a great conference. the president is speaking there tonight, should be a big deal and huge turnout tonight. >> book again, "third world america." >> and "baby love." >> i can say, oh, my book made the "new york times" best-seller. i learned from arianna, you just say, it made the list, in a knowing way. >> thank you. >> lawrence o'donnell will be here. first, willie. what will you denigrate us with next? >> mika, we will turn serious for a moment with a little news you can use. what would you and your family do if confronted on the street by a ninja? uda free lander is h

sheila bair, the fdic chairman. back to the phones now on our topic for the first part of the show, federal government versus california on legalized marijuana stemming from a "new york times" story. also written in a lot of other places this morning. here's the headline, u.s. will enforce marijuana laws state vote aside. regardless of what they do with prop 19 on november 2nd. again, this would legalize the drug for recreation now. the federal government is going to prosecute laws. arizona, michael, republican. good morning. caller: thank you for taking my call. i'm very interested in some of the topics everybody has been the talking about and i'm amazed about the sane and rational pay everybody's expressing their opinion. i'd like to address two subjects here and that has to do with the so-called harm of marijuana that is protected against by the laws that crirnlize possession of it. for instance, if i'm arrested and charged, say convicted for possession and use of marijuana, little mary living in phoenix a couple

satellite corp.2010] >> sunday on newsmakers, chairman of the federal deposit news corporation sheila bairhow the fdic used the mort and foreclosure information and she talked about the todd frank law and the stability of the financial system. she's interviewed by deborah solomon of "the wall street journal" and tom breakthrough weight of the financial times. -- tom braithwaite of the "financial times." >> middle and high school students, get working on those videos for student cam. c-span's annual video documentary competition. there's $50,000 in prizes. this year's theme, "washington, d.c. through my lens." on complete information on how to upload your video, go to studentcam.org. >> earlier this week, indiana governor mitch daniels received the hudson institute's herman kahn award. he is joined by dan quayle and this portion runs 40 minutes. >> i wrote a letter to the then prime minister of japan asking if i could meet with him. he didn't have the foggiest idea who i am but he remembered herrmann kahn, something of an icon in japan and he said, please come and see me. bring a copy of th

then, after that on "newsmakers," chairman of the federal deposit insurance corporation, sheila bair on how the fdic views the nation's mortgage situation. tonight, c-span's campaign 2010 coverage continues with a live debate between democrat john parkway and republican rand paul vying for the seat from retiring jim bunning. later on, another live debate between washington senate candidates, patty murray and republican challenger deano rossy face off in their second debate. senator murray is running for a fourth term. mr. rossy is a former nominee for washington governor but lost in 2004 and 2008. the debate is courtesy komotv in seattle. see it live at 10:00 eastern tonight at c-span. >> c-span's annual video documentary competition, $50,000 in prizes. this year's theme, washington, d.c. through my lens. for complete rules and information on how to upload your video, go to student cam.org. >> now, a discussion on african american voters and candidates in 2010. the joint center for political and economic studies hosted this event. we'll hear about the results of a new study they cond