melissa: greed is not necessarily against the law. >> built securities built on subprime loins.s ginning earnings. that is accounting fraud on wall street. melissa: greg, what do you think? >> trade remembers talking more about sac than this case. they will be affected by the investigation about sac. melissa: okay. >> when it comes to case traders are skeptical that tourre did much of anything that was wrong. not saying they're wrong. >> tourre is insider trading case. sac capital is trading case. melissa: you say they're watching what is coming out steve cohen and the whole bunch? >> they're changing practices. they will last a few years but then they're aggressive. in terms of talking who they're sourcing, companies, ex-employees. a lost hedge funds i talked to won't even talk to ex-employees. >> they're afraid of wiretapping by the fbi. that is what is going on, right, greg? melissa: where does it go from here? does it have big impact on trading going forward? is it enough they have been so much in the limelight? do we have to see sac actually disband which it seems like that

more than 70% of subprime mortgages that helped lead to the crisis were backed by fannie mae, freddie mac, fha and other taxpayer-backed programs. if you have to put your finger on the root cause of the crisis, this is it. despite the inherent dangers in such transactions, fannie mae and freddie mac supporters kept encouraging them to roll the dice a little bit more. they did and the result is the worst financial crisis since the great depression. the ultimate consequence of these policies with that the average american family watched helplessly as their net wealth declined i nearly $50,000 wiping out nearly two decades of financial progress. ladies and gentlemen, this is where we have been. five years later, where do we find ourselves today? today, we know there are single moms throughout our economy to our having to work even harder than before simply to put food on the table, to. put a roof over their families heads that is unconscionable. today, taxpayers have been forced to pay for the mother of all bailouts, nearly $200 billion for the failed gse's. that is unimaginable. taxpaye

much likely men to get subprime mortgages. even high-in come african-american borrowers were likely to get subprime mortgages than white borrowers. was that about being a bad decisionmakers, women aren't good with their money or are we seeing targeted behaviors and those behaviors are still unaddressed? >> additionally these lenders targeted elderly african-american women with high equity in their homes. when they perfected this whole process of scamming people out of their equity, they rolled it out to communities of color, primarily african-american communities, because they didn't have enough people who spoke spanish to hit that community. they hit the spanish community later. but it was a targeted theft of equity in homes. to get that equity they used the refinancing market and exotic loans that were really designed for very high income people, low doc arms, exploding a.r.m.s as we called them. they started from greed and started in the african-american community. philadelphia is one of the best cities to look at to see th

payday and subprime are only part of the war on fisk braced pricing. are owers pay a lower rate than lower risk borrowers. it will be to reduce the risk based pricing. average cost, -- pricing where the prudent subsidize the imprudent pimp that is a very explicit agenda and -- explicit agenda of this agency. he also discusses a lot of the s out there. objective scholars, very well- known scholars and academic, solid evidence. sadly, despite the repeated claims that we have about it being evidence-based, they pretty much ignore all of the academic evidence contrary to results. we should be why concerned with this. he talks about the back story. let me really emphasize that many of the organizations of discussed in the book early did take advantage of the crisis and were very much behind the scenes creating the s -- creating the cfp be -- the cfpb. i am usually fairly reluctant to question anybody's motives or funding sources. i generally take the perspective that you should judge policies on their merits. of course, i believe that dodd frank fails on it

no one wants to go there but i think it will prevent subprime from happening it will get back to rational again. same kind of mortgage lending that worked for decades. cheryl: still can't believe it is not there now but that is a whole another story about regulation. david: incredible the fact that tesla now has a market cap of $20 billion, and they just build a couple of cars. you build thousands of houses and your market cap is lower. strange world. ara hovnanian. thank you. >> thank you. david: we have some breaking news. adam shapiro, what is it? >> yeah, this is coming from the public company accounting oversight board. "the wall street journal" is reporting, it is an update on the regulatorses review of the big four accounting firms and what they're finding may trouble some investors. according to the journal the most recent study found that 34% of kpm g20 12 audits were deficient. that is up from the year before when it was 23%. now at pricewaterhousecoopers, they found that 39% of the audits were deficient and that was down from 41% in 2012. in the article, the journal put up they

we bail out the banks that drove subprime lending.banks with the subprime lending schemes, they made money because of lack of oversight, they made money on the bailout and on private mortgage investment. they got away like real thieves. the people vacant homes, abandoned lots, and urban reconstruction plan to regain. if you in fact were to rebuild, say, chicago, half of those houses back. you would neat to do retrofitting, use solar, and you would put people back to work by restructuring where they actually live. at this point, there is no such comprehensive plan and there needs to be a way of creating jobs bottom up, not top down. >> excellent points, but i feel i would be remiss if he didn't address the story of chris lane, the young australian man who was shot to death allegedly by three teenagers who are acting, quote, out of -- the right first said you didn't respond none, and then the tweet -- the senseless violence is frowned upon. can you respond. >> you know, last year we went out to oklahoma city, where two young white men s

after all, this man oh, straight the global subprime crisis from his lofty perch as a 28-year-old midlevel trader. sorry, gordon gecko. your days of flaunting your six flags flash pass are over. no more three-martini lunches at quiznos, and don't even call. they will not be holding your table anymore at jardin d'olive. we'll beight right ( cheers and applause ). >> stephen: welcome back. my guest tonight plays the cofounder of apple computers. it's a lot like the bill gates biopick, but sleeker and twice the price. please welcome archton kutcher. ( cheers and applause ). ashton, hey. good to see you. good to see you. thanks for coming on the show last night. >> absolutely. >> stephen: you're an impressive guy, okay. actor, producer. you're a bit of a tech entrepreneur. you help fund spoddify, air b & b, and in 2009 became the first twitter user to hit one million followers. is that-- ( cheers and applause ) now you're playing steve jobs in the "biopick jobs," opens august 16. how-- are you a fan of jobs? did you come at this as a super fan of a tech genius? >> i came as a admirer of his wo

announcement that he will initiate more probes in the large financial firms that played a role in the subprimeal crisis. and i'm excited about this because i know for sure this means he's finally going after fannie mae for its role in the junk bonds and also it's possible that he's going to go after citibank, where his treasury secretary used to work. >> surpassing freeman. >> paul a hit for two slivers of evidence that the culture may not be doomed yet. the first is that anthony weiner the mayoral candidate who was in first place after his recent revelations is in last place. the second is that oprah winfrey was going to interview the troubled actress lindsay lohan and nobody showed up to watch. some may say we're bouncing off the bottom with the culture, but i'm going to allow myself a ray of hope. >> who says conservatives are pessimists, this

after all, this man oh, straight the global subprime crisis from his lofty perch as a 28-year-old midleveltrader. sorry, gordon gecko. your days of flaunting your six flags flash pass are over. no more three-martini lunches at quiznos, and don't even call. they will not be holding your table anymore at jardin d'olive. we'll beight right sleep train's interest-free for 3 event ends sunday! it's your last chance to get 3 years interest-free financing on beautyrest black, stearns & foster, serta icomfort, even tempur-pedic. plus, get free delivery and sleep train's 100-day low price guarantee. but hurry, sleep train's interest-free for 3 event ends sunday! superior service, best selection, lowest price, guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪ ( cheers and applause ). >> stephen: welcome back. my guest tonight plays the cofounder of apple computers. it's a lot like the bill gates biopick, but sleeker and twice the price. please welcome archton kutcher. ( cheers and applause ). ashton, hey. good to see you. good to see you. thanks for coming on the show last night. >

mortgages in detroit were predatory and subprime, and it killed the tax base. 200,000 people left detroitand they left when they lost their homes. this is the case. it was not caused by racial tensions in this city. i have lived here my whole life. >> jim, david has brought this up a couple of times in terms one of the major reasons for the crash was the predatory lending and the banks. whether or not the banks have responsibility to bear, is there any way to legally hold them accountable as i think david was suggesting that he would like to see happen? >> well, you know, bankruptcy and financial distress is like open-heart surgery. the longer you take to get to the cure and finish the operation, the worse it gets. the key here, and there will be plenty of time for historians to assess blame, but what you need here is a recovery plan. we will can find a solution by investing in infrastructure, back up guarantees and support to bridge the situation and basically turn it around because they invested. >> finding a recover plan that works, bringing people together and make that work. >> as pa

morgan on suspicion that it broke the law by selling subprime mortgages between 2005 and 2007. this move comes after the government filed a lawsuit against the bank of america earlier in the week for misleading investors about the real risk involved in putting money into mortgage-backed securities. investors lost hundreds of millions of dollars in those investments, but the bank claims it is not responsible for the subsequent property collapse which led to those massive losses. mexico's obesity rate is now higher than in the united states, and it is still on the rise. a united nations report has put mexico's obesity rate at the 32% of adults, making it the fattest country in the western hemisphere. >> diet and particularly the high consumption of sugary soft drinks are getting much of the blame, but the country's sotalol b is fighting back, saying that a lack of exercise and the country's love of fried foods are the real culprits. >> it may seem a little ironic, but members of the sotalol be have even launched a new health awareness campaign. -- members of the soda lobby. >> me

morgan on suspicion that it broke the law by selling subprime mortgages between 2005 and 2007. this move comes after the government filed a lawsuit against the bank of america earlier in the week for misleading investors about the real risk involved in putting money into mortgage-backed securities. investors lost hundreds of millions of dollars in those investments, but the bank claims it is not responsible for the subsequent property collapse which led to those massive losses. mexico's obesity rate is now higher than in the united states, and it is still on the rise. a united nations report has put mexico's obesity rate at the 32% of adults, making it the fattest country in the western hemisphere. >> diet and particularly the high consumption of sugary soft drinks are getting much of the blame, but the country's sotalol b is fighting back, saying that a lack of exercise and the country's love of fried foods are the real culprits. >> it may seem a little ironic, but members of the sotalol be have even launched a new health awareness campaign. -- members of the soda lobby. >> me

do you think subprime lending's going to end, alex? >> no.t will -- it is already still in existence. lending in general now has a much heavier set of regulatory burdens on it, which has slowed down the recovery. but we do have a natural cyclical recovery on the way. this has brought house prices back to their trend line. if you look at the 60-year history of house prices against inflation, they're almost perfectly correlated. and where we are now is we had of course the 50 years of going on the trend line, the huge bubble, the fall, and where we are now is back to the trend line more or less where we ought to be. and what we don't want to do now is try to artificially stimulate house prices and credit. >> look, i agree with that. i just want to get the private sector in a much more dominant position. >> yes. >> if you're going to get fannie and freddie, you may restrict them a little bit, maybe restrict what they can own in their portfolios. that would be a good -- a very good idea indeed. but if you're going to give fannie and freddie backs

announcement that he will initiate more probes than a large financial firm that played a role in the subprimeinancial price its. i'm excited about this because i know for sure this means he is going after fannie mae for its in the junk bonds and also it is -- possible that he's going to go after citibank where his treasury secretary used to work. >> paul, hit for two slivers of evidence that the culture may not be doomed yet. first is that anthony weiner, candidate in first place after his recent, shall we say, revelations, is in last place. the second one is that oprah winfrey this week was going to interview the troubled actress, lindsay lohan. by tv's measurement standards, nobody showed up to watch. some may say we are just bouncing off of the bottom of the culture. i'm going to allow myself a ray of hope. >> who says conservatives are pessimists. this is good news august here on this show. all right. thank you all. that's it for this week's show. thanks to my panel. especially to you for watching. i'm paul gigot. i hope to see you here next week. >>> on fox news watch. >> are you confide

market authorities have put in place very, very strict regulations to actually make what happens of subprime does not happen in this area. we are controlled by external looks of the adequacy between our methodology and the reports they go out. so the regulation is so strict that it would definitely prevent what happened in the u.s. >> there is a lot of focus on africa and the african growth rate at the moment. so far, these economies have been seen as a little bit of a wild west. thatyour existence mean africa and african economies and african markets are maturing? >> most definitely. not only are they maturing, but they are starting to understand the importance of the interest banks and the importance of good governance actually. although africa becomes very attractive in terms of investment based on the high return that investment can actually expect from the investment in africa, there is also risk. people want to make sure that, even if the return is high, they want to make sure that they invest where they can mitigate the risks. this is something that has been clearly stated to most bor

fabri fabrice tourre known as fabulous fab, has been found accused of misleading big investors about subprime mortgage securities. those contributed to the mortgage crisis in 2007, which helped drive the country into recession. he faces fines and could be banned from the industry. >>> transit workers in california's bay area are threatening to walk off the job again if they don't get a new contract. they paralyzed the b.a.r.t. system for four days last month. if there's no deal, b.a.r.t.'s two largest unions say they will strike sunday evening. that means the monday morning commute will be a nightmare. >>> the national weather service confirms that a rare tornado touchdown in jacksonville. it damaged some houses and brought down some trees. at least one person was injured in the storm. it's believed to have been an ef-2 twister. the exact speeds of its top winds have not been determined. >>> about 300 miles south, a party for young children turned into a panic for parents in ft. myers. with water was sucked into a storm train. adults jumped into the ditch to try to find him. but he was being

and to your point, if you go back to 2005 and 2006 and you look at who the top ten subprime lenders were, the wall street banks packaged and securitized the mortgages, of the top ten, i'm going to guess eight of the ten are gone. >> or rolled into somebody else. >> the real dirtbag, and i think that's a fair to say, word, subprime lenders, guyetts who pr -- the guys who preyed on the weakest of the weak, the worst of the worst, they're gone. >> not to justify it, just looking at the logic on how that one -- >> i see how they get there. it is just a very sort of perverted version of justice. and i also find it strange that -- >> i'm not arguing with you. >> we're five years out, and now we have two months left before the statute of limitations comes up on a lot of the stuff. i'm surprised because some of the stuff is 2005, 2007, maybe the statute is different, i don't know. >> i don't want to speak out of school, i don't know enough about this particular case. >> it may very well be it is egregious, it may very well be there is a circumstance in here that is just not good, but -- >> you k

defaults the former student defaults they actually get to add twenty percent more so they're like a subprime lender now you know what i found fascinating about the met is was you describe gilding so these universities like larry to show over there the new york university my alma mater they borrow billions from the government near zero percent and they use that money to guild or to create the dorms to luxury dorms so you have these kids showing up they have sex and drugs and drink for four years and then they get out of this gilded university with forty thousand dollars in debt it's like a bad trip to las vegas you know that movie hangover the next one should be set and why are you in new york city four years later. you wake up with this enormous debt hangover having you know impregnated five or six people including your professors and you're walking around there like a dead zone b. actually that tell you he does talk about this so who's raking it in because of that so once again contractors the so-called you know people around washington d.c. and connected are raking it in thanks to this ess

defaults the former student defaults they actually get to add twenty percent more so they're like a subprime lender now you know what i found fascinating about the met piece was you describe gilding so these universities like larry over there the new york university my alma mater they borrow billions from the government near zero percent and they use that money to guild or to create the dorms to luxury dorms so you have these kids showing up they have sex and drugs and drink for four years and then they get out of this gilded university with forty thousand dollars in debt it's like a bad trip to las vegas you know that movie hangover the next one should be set and why are you in new york city four years later. you wake up with this enormous debt hangover having you know impregnated five or six people including your professors and you're walking around there like a dead zone b. actually that tell you he does talk about this so like who's raking it in because of that so once again contractors the so-called you know people around washington d.c. and connected are raking it in thanks to this ess

defaults the former student defaults they actually get to add twenty percent more so they're like a subprime lender now you know what i found fascinating about the met is was you describe gilding so these universities like larry over there at new york university my alma mater they borrow billions from the government near zero percent and they use that money to guild or to create the dorms to luxury dorms so you have these kids showing up they have sex and drugs and drink for four years and then they get out of this gilded university with forty thousand dollars in debt it's like a bad trip to las vegas you know that movie hangover the next one should be set and why you in new york city four years later you wake up with this enormous debt hangover having you know impregnated five or six people including your professors and you're walking around there like a dead zone b. actually that tell you he does talk about this so like who's raking it in because of that so once again contractors the so-called you know people around washington d.c. and connected are raking it in thanks to this essentially

hedge funds like soros will be there to sell them these properties at inflated prices so low as the subprime crime crisis it was illegal loans made by banks. were ninja loans or other types of loans that were illegally made that they were fraudulent they made they lost the deeds they lost the mortgages they caused a huge crisis many people lost their homes the black population of america the largest confiscation of wealth going back to slave days and now suddenly groups like black rock who can borrow from the fed zero percent can buy up all these properties for a song after they essentially. vick did hundreds of thousands and probably more close to a couple of million now they come in with cash and they get paid on the money they borrow to flip the houses they don't actually need to own the mortgages or need to participate and then the upside in the housing market they'll be long gone now except for another crash after they made another huge profit floating more fraudulent securities so let's look at these two charts here these are from provided by dr housing bubble looking at this data from

we began doing subprime lending cases in one thousand nine hundred ninety we did the endless cases which went to the very heart of our investment banks restructured then the insurance cases the mutual fund cases and what i said to the people in the industry was look guys these are not isolated dots if you see the entire picture you see a system that is over leveraged too much risk we're you are taking advantage of we do regulatory system that will create a crisis so when i say i wish i'd been harder i would have been harder in saying and more affirmative in saying guys there's a crisis brewing and one less well than you have chuck prince a smart guy good guys the general counsel city back i dealt with him a lot then became c.e.o. he said his famous quote as long as the music is playing we'll continue to dance wall street didn't want to turn off the music a few of us were trying to say to them you got to pull the plug on this stop putting quarters on the jukebox we're going to crisis i will tell you i know use the word interviews but in this case it was i'm a big horse racing fan and one

attorney's market for subprime minister and alt-a securities between 2005 and 2007.y claim the firm violated federal law and comes after regulators filed a 850 million-dollar civil suit against bank of america. let's check shares of the new york based bank. they are down 44 cents at the moment. 54.86 is the trade. adam: talk about banks, a move to break up banks. charlie gasparino on one of wall street's biggest analysts sees coming down the pike for analysts. lori: new item at the ballpark, live from at&t ballpark to show you next. adam: beer. ♪ ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futur move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. aljoin us atorswim. projectluna.com >> i'm tracy byrnes with your fox business brief. tyson foods will no longer accept cattle feed with a feed additive that improves weight gain. analysts say the decision could increase corn dema

they believe that only a fraction of subprime mortgage problems were related. small inthey might be volume, cra loan mandates remain large and president. lendingerently required institutions to abandon traditional underwriting standards to comply with this government mandate. the cra implicitly put the government's good housekeeping seal of approval on low-quality loans. mac,e mae and freddie private companies awarded monopoly powers by congress in exchange for meeting certain affordable housing goals. we all know they exploited those charters to borrow at discounted rates, and ultimately dominated our secondary mortgage market. they wildly inflated their balance sheets, and personally byiched their executives implicit and explicit government backing. and did i mention the cooked books that allowed politically connected executives to make off like bandits with what their regulator described as ill- gotten bonuses in the hundreds of millions of dollars? given their prominence in the market, investors and underwriters came to believe that if fannie and freddie to

they were scared into subprime loans. that's not right. can we agree on that?the bottom line is we have court systems where you can sue but this is just a gesture to satisfy a certain segment of society that has supported obama and the bottom line is he's in the second term, now he can do whatever he wants do and in the black community his approval rating has gone down ten points. >> mm-hmm. >> so he needs something to -- >> that's right. but you need -- >> i've got a question for -- wait a second. >> okay. excuse me. >> are black americans better off now that obama is in his fifth year as president? do you think they're better off as a result of his presidency and policies? >> you know what? i think we've been in a down ward spiral for 50 years. >> has he helped? >> we ended the war on poverty. let me say this. we have who we want. now we have to get what we need. >> you didn't answer nigh question. i'm not going to let you off the hook. are americans better off -- >> policy is not without demand. >> sean, the answer is no. no, no. >> they have to bargain with

banks targeted people of color for subprime loans and then foreclosured in wide stretches.ell us how that happened. >> i would be happy to. you know, i'm glad that you opened with the fact that the fair housing act was passed in 1968, and that was followed by the fair lending act of '77. but the fact of the matter is that housing discrimination is very much alive and well in the united states. it has been incredibly well documented how racial discrimination was rampant throughout the mortgage industry. really, essentially, a systemic practice of the mortgage industry. the way that one former loan officer in baltimore put it was that wells fargo put bounties on the heads of minority borrowers by providing cash incentives to any of the loan officers who were able to convince these customers to buy these completely unpayable loans. and so it wasn't however just the fact that these loans were unpayable, toxic mortgages that all of the industry knew were toxic, but they represented it to homeowners as if they would be completely fine. you can just refinance in a year or two. the

we're not too far from subprime. the housing market is made just a little bit of a recovery. it is interesting the president is going to take a victory lap and at the same time admit the housing market needs help. and i think it will come back. i think unfortunately this whole thing is a long-time coming. been too many programs to begin with. we should have had the freefall and a natural bottom and we would be further along. >> neil: my crack production team is monitoring the president's speech right now, and i'm told he just echoed the line, phony scandals. now, -- >> what are the odds on that in vegas? >> neil: what is odd about this, the president. he recognized enough the severity of the irs scandal to say i got to get to the bottom of this. this cannot be allowed. so back then when he first mentioned it, it certainly wasn't phony. now it is. >> it's disingenuous he would now be taking this tact, but it's always been deflected. it's bushes fault, now it's phony scandal fault. at some point during the eight years, the bulk stops here and the blame and i'll fix it. more peo

$100 million he says he lost on a roughly $1 billion investment which he claims was stuffed with subprimejudge found jpmorgan wasn't liable for negligence. the bank says it's interesting its legal options. jpmorgan down 1.33%. >>> apple's reportedly prepping an iphone trade-in program that was originally supposed to launch in june, allowing apple's store customers to trade in old iphones for credit towards a new one. all things digital reports the program is currently set to debut next month, which would happen to coincide with the launch of two new iphone models, which apple's expected to unveil on september 10th. apple's stock down 1.6% in frankfurt. >>> plus, bill ackman has decided to go shopping elsewhere, cashing out of his investment in jcpenney. jack jackie's been tracking the story and joins us with a wrap this morning. hi, jackie. >> hi. good morning, ross. ackman selling his entire stake in jcpenney, 39 million shares or 18% of the struggling department store chain. now, the move comes two weeks after the activist investor who runs pershing square capital management stepped dow

i was in mortgages till the subprime thing blew up.ericacars, but i did. cars, caskets-- still dinging them on e way out, huh, frank? your line of work-- should the bereaved ever need a referral. you were the numbers guy at steed motors back in the '80s? numbers stunk. that's why i got out. see, and we thought it was 'cause of that burglary '81. you saying i robbed the place? well, probably made the boss money on that insurance claim-- win-win. donna figure it out, too? all those calls of yours she transferred? that what this is about-- donna d'amico? she cut you out. kept you from screwing the customers on the back end. she didn't get it. customers have all the power. they can leave any time. our job was no different than yours. come again? get them in the box, get as much as you can, get them to sign before they walk out the door. i look like a salesman to you, frank? you do what you have to do. befriend, persuade, control, lie. but once they sign, they're gonna pay for it for years. donna got it, frank. she just did it her way. it j