the banks giving you the loans only have the fees at heart. that is why the fee system has really gone a little bit out of control. that is how they make their money. they don't make money on interest anymore. that goes to someone else. that also influences the whole idea of making loans that the bankers knew people couldn't repay, and they didn't care because the investor, or fannie mae, would be the one to take the loss when the bar would defaulted. host: tell us about these fees. how many fees? what are they charging? guest: oh my gosh. probably foray legal assistance for the bank, the bank's lawyer, if you are in foreclosure, there are these drive-by appraisals. sometimes they joined by every day to make sure there is someone living in the house. maintenance. they will charge you to mow the lawn, keep the property up. there are just a tremendous number of bogus fees associated with foreclosure. host: what about just simply going to try and get a mortgage these days, or refinancing? are banks making money from the fee system as well? guest:

lemonis: so, the bank loans are somewhere around $630,000. scott: mm-hmm. and so, if i take the accounts payable and the bank loans, i'm pretty close to a million dollars. scott: $900,000-something, yeah. lemonis: we're drowning in debt right now. wendy: my kids and i, we all agree as a family he needs help. this might be it. lemonis: are the kids here now? wendy: jackie? lemonis: business like this has to constantly evolve. and so, what we're talking about is kind of the number of issues that exist inside the business. jackie: i mean, just based off of our conversations at every dinner table, we're wearing too many hats, and we're involved in so many things. and i think that that's gonna, like, run us ragged after a while. lemonis: does he give you the opportunity to do your job fully? jackie: no. ben: that's the thing that bothers me the most. lemonis: 25 years ago, scott came in, and he saved this company. now scott needs to let his kids do for him what he did for his father. if it's okay with you guys, i'd like to spend a minute with your parents just al

it is a similar story for the other banks. we saw more loans goes sour in the first half. mped 31%.bc offering less for savers deposits after the pboc cut rates last week. many banks are offering smaller time deposits. that indicates lending might be dwindling in this slowing economy. why pay more for deposits when the loan risks are shrinking? rishaad: we will have a more detailed look at that story later. in about an hour. we do want your opinions. let's have a look at some other stories we are following. china has detained an official and the managing director of citic securities on suspicion of insider trading. that theys reporting are being held along with three other citic securities officials accused of trading with insider knowledge. that they ares also accused of spreading false information. almost 200 people have now been allegedly punished in a special campaign by chinese police targeting rumors about china's stock market. shenzhen --ast in tianjin and other key events. closed forve been relevant violations which caused people to panic and resulted in disorder in

a slowdown in singapore is hitting the banks. loant way six-year low as oil prices inflated borrowing costs. recovery has suffered and they put more than 2% in a special category. profitability threatened as nonperforming loans backed by property and energy rise. is hoping to close the gap between google financial, which lender to enter the japanese market. mitsubishi says it wants to increase trade between the island and china. the australian government will release targets for reducing carbon dioxide emissions today but they are unlikely to be as ambitious as other developed economies. let's head over to sydney and paul allen. when is the -- what is the government expected to announce today? paul: the leaks are to be 26%-20% bye range is 2030. japan is aiming for 25%. europe, 40%. canada, often compared to australia, 30% by 2030. by 2025. 26%-20 8% australia looks comparable to the rest of the world but if you take the u.s., it is the same number, 26%-20 8%, but five years earlier. the u.s. would be reducing by much more than austra

be a possibility that you could get a loan modification without having to pay the fees, and your point about the fees is very well taken, and that's what the banking business does nowadays. in the old days, you used to have a banker on the corner, and they would give a loan, and they believed in you and it was face-to-face transaction and they expected you to pay it off and held it on their books, and now all the banks do is generate the fees and sell the loan to somebody else, and so the banker alone had the fees at heart, and that's why the fee system has really gotten, you know, a little bit out of control. that's how they make their money. they don't make their money on the interests anymore, and that goes to somebody else, and that's the whole idea that the banks made loans and didn't care. >> gretchen morgenson, tell us about these fees. how many fees? what are they charging? >> oh, my gosh. well, you know, an origination fee, you know, you have to pay probably for legal assistance for the bank, the bank's lawyer, and if you are in foreclosure, there are drive-by appraise annuappraises, and maintenance, they will charge you to mow the lawn a

it gave the green light for banks to loan money. it was too late for the asian investors to react. initially the american market soared. u.s. investors sought a slew of sell my stock as the market closed. >> reporter: after another bloodbath on the shanghai stock market, chinese officials cut interest rates to stimulate the economy and it gave the green light for banks to lend more money. the lowering of interest rates in china came too late for asian investors to react. initially the u.s. market soared and stay positive. an hour before the market close, u.s. investors saw a slew of sell my stock as the market closes orders. >> it told the machines and the traders that look, there is an enormous negativity for us coming into the market at the close of business. >> reporter:, so the last half hour was a selling frenzy that sent the market down another 205 point at the close. tomorrow will tell a big tail if the market has hit tale if the market -- tale if the market has hit the bottom. >> experts say to take a deep breath and don't even look at your 401(k), at least not now. >> a lo

lemonis: the bank loan. -$100,000. -john: yes. lemonis: and so, you're trending down. -right? -john: correct. lemonis: well, i'll give you a lot of credit, both of you, for putting together solid financials, but i don't know how responsible you are in managing the people here, and the biggest risk in this business right now -- -it's you guys. -john: oh, yeah. -we're what's broke. -becky: yeah. that's why i called you. lemonis: but i'm not a guidance counselor. becky: oh, i know, but... lemonis: you know what i like about both of you? becky: [ laughs ] lemonis: you have passion. even if i don't agree with the content all the time, you have passion, and that's not something that you can teach people. the criticism that i have is that the business is bigger than both of you. john: agreed. lemonis: you guys made this investment together. you're either gonna go forward together, or you're gonna burn together. i want to do business with people that will always do the right thing without conditions. but i just can't understand it. i need you to explain to me again why it is that you

a lot of the banks have loans that they tried to off load and have not been able do that. >> we continue after the break. you're watching cnbc where we're first in business world wide. >> apple is doing something and it could signal your opportunity to buy. we will tell you what it is that has traders excited when we return. here at td ameritrade, they rk hard. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. it means you can also afford to get up to ♪ 50% romantic-er romantic sunsets. making it the place to find a place for labor day. go awonderful,he ros crazy mornings. we figure you probably don't have time to wait on hold. that's why at xfinity we're hard at work, building new apps like this one that lets you choose a time for us to call you.

what happens with the banks determining their loans? t expanded size of their reserves which is what the loan value is based on combined with the price which is significantly lower than when the loans were made. they will see the credit lines potentially reduced. you saw a record amount of u.s. energy bond issuance. and you have really seen that slow down. it is not clear if the capital markets are not there for them, it is not clear where the money is going to come from. alix: much more ahead on bloomberg market day. keep it right here. ♪ alix: welcome back to the bloomberg market day. paypal went public less than a month ago and the company is already spending it cash. the digital payment giant just bought modest, a mobile commerce startup run by president obama's former cto. emily chang's in san francisco right now with more. emily? --ly: harper reed was ceo cto for the 2012 presidential campaign and joined modest shortly thereafter. he just sold to paypal. harper, thank you for joining us. to fillou were talking ready about this for

during the period on these loans were being made, the new democrats he made the banks lend to the poor people and gave them these terrible loans and protected fannie mae and freddie mac but here are the facts. first of all as to the loans by 1994 democrats get worried about those loans and pass a law telling the federal reserve to regulate them. that's an interference in the market i won't do that in the republicans took over in congress. we tried on several occasions the states and pass some laws to regulate predatory lending. the bush administration used federal powers to preamp that and to tell the states they couldn't regulate national banks and their state tanks became national banks to be exempted. 2004 democrats in the house tried to pass a bill to restrict sub-prime lending and tom delay blocked it. when i became chairman in 2007 i didn't get a bill through the committee i chaired. it said no lending to people who can't pay you back in "the wall street journal" attacked me. why is mr. frank stopping these homes to go to low-income people? white as they want minority groups to h

despite the interest cut that was made by the chinese central bank late on tuesday that you have just mentioned a quarter of a% made it easy for the banks to loanose companies that have a gap in their finances. also not gaining as much interest with that weight cut. still a volatile scenario, people being very careful and. >> thank you for that. >>> many people who bought shares with their life savings are worried about losing everything, adrian brown reports from beijing. >> reporter: struggling to understand what is happening to china's economy. all he knees i knows is that his are worth 70% than a week ago. he sells eggs in a market in east beijing, he tells me he invested $20,000, all of his savings but remains hopeful about a recovery. >> translator: i already put all of my savings in to the stock market. what i can do now is just wait for the index to come back. i won't buy or sale at this stage just keep watching it. >> reporter: his story is now being replicated many place as cross china. when it comes it making investments the options for most chinese are limited. property and shares. the problem now is that the prices are both are fal

the previous year. bank of america looking to sell $1.2 billion of mostly to liquid home loans. the bank is selling five pools of nonperforming debt, loans that have been modified and some that have not defaulted at all. banks have sold or offered $18 billion of defaulted on loans in 2015. mark: the decline in media stocks is hitting some high-profile ceos. bob iger apple often blamed for killing the music business might be doing the same thing to watch is. june was the worst month for u.s. watched sales in seven years. retailers say it is partly because of the new apple watch. sales of traditional timepieces were 11% lower compared to the same time last year. the inventor of swatch says the apple watch could bring an ice age to the swiss timepiece industry. apple watches are going on sale today at 100 best buys nationwide. betty: carl icahn is introducing a new activist stake in sheer energy -- cheniere energy. he may ask for seats on the board. shares have lost about 8% so far this year. that is a look at our top stories. mark: coming up in annex cap our -- betty: escaping work

the banks giving you the loans only have the fees at heart. that is why the fee system has really gone a little bit out of control. that is how they make their money. they don't make money on interest anymore. that goes to someone else. that also influences the whole idea of making loans that the bankers knew people couldn't repay, and they didn't care because the investor, or fannie mae, would be the one to take the loss when the bar would defaulted. host: tell us about these fees. how many fees? what are they charging? guest: oh my gosh. probably foray legal assistance for the bank, the bank's lawyer, if you are in foreclosure, there are these drive-by appraisals. sometimes they joined by every day to make sure there is someone living in the house. maintenance. they will charge you to mow the lawn, keep the property up. there are just a tremendous number of bogus fees associated with foreclosure. host: what about just simply going to try and get a mortgage these days, or refinancing? are banks making money from the fee system as well? guest:

china had eased its interest rates and was doing stuff to allow the banks to loan more money, more money to fire up that lukewarm economy. but towards the end of the day, this triple digit gain just kept getting whittled away until right at the close really at the last 15 minutes or so the bottom just fell out. there will be a lot of information. investment analysts are saying the same thing. do not panic. this appears to be a correction. but right now what happened is certainly discouraging. chris, back to you. >> thanks. >> well, we had a lovely day today. low humidity. it felt beautiful. doug and bj are in the storm center. is this a sign that summer will start easing on down the road? >> hmm, not quite. not quite just yet. we still have a couple of days around the 90 degree mark but right now this stretch is really looking good. >> it is. the trumpets are heating up and that's one thing that i will look at this hour. >> it could have an impact on the east coast. >> and down towards alexandrea. only 70 and sunshine. if it's that cool, you know we're in for a rather cool night tonight.

in 2006, to protect his investment, willis finds another buyer, but the new owner needs a bank loan and will not get it unless willis puts up the thermometer property as collateral, if the loan is not paid off, the bank can take it. then in july, 2007. willis herron dies at the age of 82. >> little did he know that the economic downturn would hit in 2009. >> after dropping 1,000 points. >> that dream of his that mom would not have to worry, changed when people did not pay the bills. >> as restaurant business fails, the new owner cuts back on main maintenance of the thermometer then stops making payment police, soon. the spire that willis erected advertises only baker's economic distress. >> it was vandalizeed. i was hearing it was an eyesore. >> some people wanted it torn down. jamie: the family is shockd. >> my mom saw it a couple of year aopbgs ago, she was defense tateed. a couple was in front of it taking a picture, she started to apologize for the way that the thermometer or looked. jamie: she how is on the that day to have it restored and brought back to its glory. >> barbara has

bank. >> we like the small banks in the u.s. because loan signature and valley bank is off the charts. they look expensive on today's earnings. tomorrow's earnings will be higher. liz: james, is there an area you would tell people to avoid? >> oh, yeah. i would think you want to avoid anything economically sensitive. you want to avoid the commodity sector, industrial sector. cyclical sector. economy is really not any better than it has been over last three years. we have the same economic numbers we had three years ago when the fed was giving us quantitative easing. now same data is giving us tightening. now that we have plunging commodity prices led by oil, world economy will stay slow and hurt the sectors. liz: folks, oil at six 1/2-year low, below $44 a barrel. great to see you both. fred cannon, james bianco, sort of the boys of september. thank you very much. that will do it for "countdown to the closing bell." a lot of red on the screen here, david and melissa. hand it to you. melissa: thanks a lot. david: indeed it is. politics still

million of the nine million african-american latinos, they found i in the court that the banks were targeting loansblacks violated them, they had to pay a fine for that >> right. >> so when you're targeted by all the companies and target by banks, that is absolutely just wrong. >> but -- and no one's going to necessarily argue against that. but, again, i think ultimately the answer, though, is, you know, getting a community that really does put more of an emphasis on, hey, engineering. you know, going in that direction and now this way the funnel isn't so small and the opportunities to hold people back becomes a lot greater when you've got a million who are prepared instead of a handful, it's a lot harder to hold people back, don't you agree? >> i won't agree. but getting your result from the investment. on the other hand while stem and engineering is very important, the nonstem part of silicon valley, even bigger market of lawyers, agencies, marketing, services and the like were around 2% that. tim cook said we're low in diversity in silicon valley, and it's our fault. they're admitting. not only

the interest rate cut allows more money from the bank to be loaned to businesses, to exporter who is have a short form in their cash flow as exports are now on their way out or the christmas market from the chinese manufacturers. it's important to try to bolster and help those industrialists. >> thailand says its business as usual following a deadly bombing in the capital of last week. it comes as tourist number four following the attack of the popular erdogan shrine in central bangkok. >> it was an attack like thailand had never seen before. in an instant, 20 killed and dozens injured in a soft target attack in central bangkok, at a shrine popular with tourists and popular with thais. who was behind the bombing is still a mystery, and there is only speculation on their motive. but that incident last monday did more than just kill and maim. >> i know that the government is really looking at the incident. >> the physical start here at the shrine have been cleaned up or covered up as they're being repaired. the attacks impact on this nation and it's people is still being realized, and t

the chinese slowdown has been reflected in the results of two banking giants. loans, 25ease in bad billion dollars. the jump in bad debt was more than double than last year. the average bank of china site 20% jump in that loans. banks reported zero profit growth in part due to a doubling of provisions. we will keep an eye on china. this search came after profits millionevenfold to $654 in the first half, about 10% more than forecast. air china benefiting from cheap you'll but expects more bobby ryan's in the second half due to -- expects more bumpy rides in the second half. and tiffany shares fell more than 2% after it missed earnings estimates. the strong dollar is hurting oversea sales, making up the bulk of tiffany revenue. expects 2016 earnings to be 2.2-5 percent lower. is pulling out all the stops to ensure nothing detracts from next week's grand military parade in beijing. it is employing all weapons in its armory, including confidence boosting measures. stephen engle will be in beijing for the parade but right now he's in our studio and it is funny we're talk

though the central bank cut interest rates, it made it easier for the banks to loan, giving them the ability to have loans, but cutting the opportunity for those who want to save money. it's the fifth interest rate cut in the last five months since november, and perhaps this is a trend that may continue. for the moment, china is not out of the woods. it's still a very serious situation as far as the domestic market, and the perception of china's market. everybody will be watching closely as to how china pulls itself out of it, and regains the confidence that it needs to make sure that the investors don't pull capital out of this country, and they're interested in the chinese market and the stock exchange. >>> a new tracker says that the commuters in the nation's capital face the worst rush hour in the country. 82 hours for washington d.c. drivers every year. texas a&m said other clogged cities are los angeles, san francisco, new york and boston, and the today found that commuters waste 7 billion hours and $3 billion in fuel. the growing kries in germany. the german chancellor, angela

oil prices are down and oil companies are relying on bank loans to keep them afloat. what does that mean for theanks? there is a bank in texas that 16% of its loans are in the energy sector. and dick evans is here. what is $40 oil mean for your business? guest: we were making a lot of money at $40 oil five years ago. we primarily bank independents that we know well. and so we know what they are doing. they are adjusting their plans and adjusting their capital investments and so there's no doubt, you have to adjust quickly. one of the things that happened in the first quarter of this year was how fast the energy cut their costs. and while that's painful to people losing jobs, it is -- it's the right thing to do. alix: what's coming up in october is what i'm excited about and when banks are going to determine how much to give to oil companies. ctigroup say it will be lower than in april. what are you going to do? guest: when you read the determinations of lower prices and see where your certainly there will be squeeze. it is interesting when we did it in march, we had about 20% went down. about 10

but what they dodo is lack some of the banking restrictions, the cost of banking loans is so high todayance cost could also actively break up some of the big banks. big banks don't lend small. and what makes this economy grow is when the banks lend to businesses. but most of the business people i know and myself included are having to look outside of banks in order to find projects -- funding for projects that we want to undertake. and banks have most of the liquidity in america. it's important that they lend it. . liz: how much are we really seeing in engineering of the u.s. economy at the federal reserve? i mean, you know, sometimes there are organizations that rank economic freedom meaning how freely an economy is allowed to start to move. and we can put up the ranking. we believe we used to be number four. now we're at number 12 this year. what does that mean to the average investor who is watching right now? >> according to the frazier study that we conduct here at smu with our primary researcher bob, the united states has dropped from being the most economical free company in the

so that if god forbid something happens and you default on the loan the government stands in as a guarantor of 90% of the loan. that gets banks to yes. it's a great day for us to be celebrating the small business administration anniversary. entrepreneurship is now. the career of choice. as a result of so many entrepreneurs innovating, we are changing the world from uber to facebook to under armor, all the company that is sba helped to start, are changing the world. >> they are, indeed. thank you. i know you had a busy weekend. we appreciate you taking the time. >> j.j. you have always been such a great supporter and champion of small businesses. we are grateful because you help us to amplify that voice. >> thank you. thank you. i am steeped in this world and feel honored to have gotten to be for so many years. thanks so much. she's the first african-american woman to own a billion dollar business and spent almost 40 years helping others find work. janice can fill a book with words of wisdom. jenna bush hager was able to get her to spill secrets to her success. >> one, make sure you are prepared. two, understand what the goal

they're allowing the banks to use exchange rate of last year rather than the current exchange rate. there's a big question mark as to what will be the level of nonperforming loans and how much money the banking system will need when the central bank finally gets around to forcing the banks to reflect the current situation. so the second quarter numbers, that's pretty much not an indication i would say of the true state of the banking system. that's to be made clear in the 3rd or 4th quarter. >> what does that mean that they're using last year's exchange rates? >> in terms of calculating risks the central bank allowed the banks to use the exchange rates before the big declines. before the oil price essentially collapsed. so banks are assessing risk on exposure based on the rate much more favorable than the rate today. perhaps the 40s rather than closer to 70. so that situation has been rolled over into the autumn when that provision comes off and banks have to look at their real exposure based on the current exchange rate you'll see a big adjustment to nonperforming loans and you'll see which banks are exposed in terms of inadequate capital and risk coverage and

the government involved how slow things are. see you have a business finance company that is stepping in to make loans where banks won't, so the market't making the loans they used to make. a lot of it has to do with regulation. what is the purpose of a bank? it is to make good loans. stephanie: we forgot that. john: so if banks won't do it company then other companies will step in. stephanie: we forgot that a bank can step in and trade up a storm and not have the downside. how about number three? tracy: number three. saudi stocks, you would think they would be suffering given the big selloff in oil but they are doing reasonably well. they are down 4%, compare that to stocks in brazil, where they are down 10%, russia, a lot of other countries are doing worse than saudi arabia. the vast majority of the stocks are in the hands of local investors. and the local investors are feeling pretty good. erik: you mentioned emerging markets earlier. do you like saudi stocks now? john: it is not a mainstream emerging market. when you think about the world we think about doing the best with what you can. 6% develop market 8% real returns in emergi

during the period on these loans were being made, the new democrats he made the banks lend to the poor people and gave them these terrible loans and protected fannie mae and freddie mac but here are the facts. first of all as to the loans by 1994 democrats get worried about those loans and pass a law telling the federal reserve to regulate them. that's an interference in the market i won't do that in the republicans took over in congress. we tried on several occasions the states and pass some laws to regulate predatory lending. the bush administration used federal powers to preamp that and to tell the states they couldn't regulate national banks and their state tanks became national banks to be exempted. 2004 democrats in the house tried to pass a bill to restrict sub-prime lending and tom delay blocked it. when i became chairman in 2007 i didn't get a bill through the committee i chaired. it said no lending to people who can't pay you back in "the wall street journal" attacked me. why is mr. frank stopping these homes to go to low-income people? white as they want minority groups to h

the recent united airlines breach. bank of america is looking to sell $1.2 billion of mostly delinquent home loans. the bank is selling five pulls consisting of nonperforming debt which are loans that have been modified and reviewing payment in some that have not defaulted. thanks have sold about 18 million loans in 2015. pimm: the two-day route and media stocks is hitting high profile chief executives in the wallet. nearly $4.5lost million from his $50 million annual compensation. and the bob eiger discovery ceo were also hit by the kleins. the paid index says they were among the 40 highest-paid u.s. executives last year. is revealing a 2.8% stake in chenniere energy. he wants to talk with a natural gas company management maybe request seats on the board. those ishares have lost about 8% so far this year. betty: national security is usually a bedrock issue for presidential candidates but two of the party plus candidates disagreed how to keep the country safe and last night's debate. chris christie slammed rand paul for opposing the collection of american phone records. >> listen senator, when you s

if you are going to make an investment you need to have the bank loan money. we need to use our stewardship authority where we can show there is a 10 year contract. those are some of the things we need to continue to work on. >> i think there is a cost to not doing this. i we do in the pilot projects, are we exploring this enough? doing need to do anything here in this committee and congress to facilitate overcoming this challenge and the more use of , how we canenergy make this a piece where you have the ability to do hazardous fuel. >> thank you for the question. plan -- thatomass is the fact to ensure that you have material at that plan. we need to make sure there is material at the biomass plant. there is another added value benefit, by going in and thinning these forests there is avoided release of carbon. when you have these catastrophic for -- catastrophic wildfires -- >> electricity rather than going up into the atmosphere. every time you testify -- i bring this a little further but i want to keep exploring fat, especially with the chair. >> good to see

shares in the state bank of india fell the most since january as more loans turned sour last quarter,ing 54%. the share slump came despite the bank releasing earnings which beat estimates. net income rose 10% for the quarter to $575 million. india's largest drug maker missed estimates as it faces supply constraints and the integration of a competitor it bought last year. net income fell 60% and sales came in about 3% below forecast. last month investors were warned that revenue may be slashed or even fall after its acquisition of another company. they're trying to reverse a u.s. import bank on facilities. those are the top corporate headlines this hour. angie: coming up, china indicates it wants the market to set the level of the yuan. but our next guest says the government is nowhere near close to letting that happen. u.b.s.'s senior china economist joining us after this short. ♪ angie: checking other stories. u.s. prosecutors have broken up an alleged insider trading ring that relied on hacking corporate press releases before they were made public. they said hackers in ukraine acces

the only loan. three week later getting another $150,000 loan from a sixth bank. friar and his mother were also convicted in a mortgage scheme for another $400,000 loan. prosecutors say friar himself spent $200,000 of that money. the banks eventually taking losses on most of it. new jersey's acting attorney general john hoffman who's office prosecuted the case says a financial crime said friar's football and religious status don't mitigate the fact he and his mother engaged in elaborate criminal scheme to defraud seven banks of more than $1 million. >>> sentencing now scheduled for october 2nd. they could face five to 10 years in prison along with $150,000 fine. dawn? >> all right. thank you brad. developing to night, three people are in the hospital after a bad accident in limerick montgomery county. it happened just before 8:00 o'clock this evening at west ridge pike and south limerick road. skyfox over that nasty scene there. you can see rescue workers working for nearly an hour to free one of the people who was trapped inside a car. we don't know the conditions

the european central bank due next week. greek banks could get a crash injection. details still need to be ironed out, including how to deal with bad loanse banks, and a 50 billion euro sell off of state assets. an independent euro zone analysts spoke with us. >> it is very likely that the greek parliament will pass the relevant bill on thursday. the greek government has majority that can be enforced by opposition parties that will most likely vote for the new bill. there are countries that are still not convinced that this agreement between the top level and the greek government, and they want to have an interim, a bridge loan for the next week for esm, ecb bill to be paid by greece and have further talks. there are several discussions right now on how the new -- the new reforms will be implemented by greece. right now there has to be some reform on the pension system. there has to be reform on also the tax collection system, the vat, and also reform on opening closed professions. so we're waiting to see the bill in its draft to be submitted later today to the parliament to see which exact measures the greek parliament has to vote on th

wednesday they stepped in again providing the country's banks with $22 billion in short-term loans. the hope is that more cash in the financial system will increase lending and stimulate the economy. the central bank had cut the benchmark interest rate for the fifth time in nine months. chinese economic woes are becoming the new normal. >> after days of a stock market route, investors around the world can no longer declare surprise. it is not over yet. experts are expecting further turbulence in key global markets. china but millions into their banking system to stoke growth. analysts are pushing for a discussion that goes beyond markets. the way that they are set up, a massive selloff could lead toa self-perpetuating rival. the lack of the city could keep investors -- the lack of liquidity could keep investors away. no one is in the mood to buy anything. >> i am not messing around with stocks. i'm not doing anything now. >> traders all over the world remain anxious. the looming economic problems at home in china are coming into focus. >> we know that it is not just growth that are w

wednesday they stepped in again providing the country's banks with $22 billion in short-term loans. the hope is that more cash in the financial system will increase lending and stimulate the economy. the central bank had cut the benchmark interest rate for the fifth time in nine months. chinese economic woes are becoming the new normal. >> after days of a stock market route, investors around the world can no longer declare surprise. it is not over yet. experts are expecting further turbulence in key global markets. china but millions into their banking system to stoke growth. analysts are pushing for a discussion that goes beyond markets. the way that they are set up, a massive selloff could lead toa self-perpetuating rival. the lack of the city could keep investors -- the lack of liquidity could keep investors away. no one is in the mood to buy anything. >> i am not messing around with stocks. i'm not doing anything now. >> traders all over the world remain anxious. the looming economic problems at home in china are coming into focus. >> we know that it is not just growth that are w

the massi memo. after not being able to get a loan modification dan and dotty moved out of thifr home only to be asked by the bankears later to move back in. three years after that they finally mediated. what happened? they agreed to let the bank have the house back in exchange for the deficiency being waived. whatever they owed on the house is now waived. you could find about short sales and everything else that we've covered on our website. let's review some of the basics. a short sale means that you sell your home with the lender's consent for less than what you owe on it. for many people who find their homes under water, a short sale does offer a way out, but it's not always so simple. the lender requires you showing what we call hardship. for example, loss of income. medical emergency. death of an income producing member of the family, and other things. now, you're going to be asked to provide tax returns, w-2's or profit loss statements if you are in business for yourself. the waiver of the deficiency is crucial for the short sale. that means the lender agrees not to come after you for the amount you still

china has been reflected in big earnings reports with the chinese construction bank reporting zero profit growth and rising bad loansbillion. another bank posted little change in profit growth as the government struggles to reinvigorate the economy. hires two engineers that fact a jeep to expose security flaws. the experiment caused them to recall 1.5 million vehicles. this is part of a campaign to improve security at the company. there are plans to invest more than $750 million in india, money they claim they are owed by the tamil government. are asking the central government to help them recover millions of dollars in subsidies. plant ina production the capital of tamil. declining to comment on the issue. a first-half loss of almost $8 million after suspending contracts with the parent company. during that stock surge that we ergy became the most valuable solar company end of that man was one of china's richest people but shares have been suspended since may when they lost half their value. even before the collapse, some questioned its relationship with its parent company with provided 61% of revenue. --ergy which

it's the benchmark for hundreds of trillions of dollars in financial contracts and loans worldwide. the scheme was exposed three years ago and series of banks were fined billions in penalties and included ubs of switzerland and u.s. based city group. heys worked for both the jury find guilty on all eight tkpwoupbts.counts. it's widely expected he won't be the last. britton started the sale of a 2 billion pound stake beginning the disposal of its holding in the bank seven years after a bailout. the greatish holds 78% of the shares after rescuing it at the taxpayer crash. >> germany's bmw and audi may be rivals in the premium car segment but they put it aside. the three luxury car makers have agreed to buy the navigation unit here for 2.8 billion euros. here is the biggest global competitor to google maps and provides the basis for the next generation of vehicles. >> to make the dream of self driving cars a reality they need intelligent mapping systems. enter the finished telecommunication system. they buy here and keep the service out of the hands of google apple and other companies that view it as key to their business strategies. in europe

the reagan library in california. bank of america is planning $1.2 billion of mostly delinquent home loans. nk is selling five pools of nonperforming debt, loans that have been modified and on, and soment that have not defaulted. and do you have the correct time? it is usually a noncontroversial question. not in north korea. the state is getting its own time zone a week from tomorrow. clocks will permanently be moved back a half hour. that will make pyongyang time different from its rivals, japan and south korea. tom: can they do that? brendan: they can do whatever they want. this is a moving commemoration of the war. it is an anti-japan move, not an anti-u.s. move. it will make those cooperation zones between north and south slightly more difficult because you have factory workers arriving at different times. that is the slight hitch in that arrangement. vonnie: it is unusual. you were saying india is a half hour -- brendan: india is also a half hour. there are some countries that do that. vonnie: you can do what you want, i guess. brendan: if you have sovereign authority, you also control

the government defended other aspects of its policy such as a $28 billion bank bailout to keep the financial system from collapsing. >> translator: we had a huge debate because as you can understand, the bad loans are enter connected with the recapitalization of the banks. we'll have to discuss this topic again in october and hope to find a compromise. >> reporter: the sparks flew as opposition mps blamed them for creating more debt. >> translator: why do we need 25 billion euros for the recapitalization of the banks? you drove up the deposit outflow. the stress shows that no capitalization was needed. we had a buffer of 11 billion to look into the markets. you gave it away. i'm wonder who is to blame. >> reporter: it liberalizes the energy and commodity markets. it enables more troubled businesses to enter bankruptcy protection, but it gives the government bigger teeth to which to go after tax evasion. it tightens the screws on spending, austerity trends which are expected to deepen in bills still to come. perhaps most hurtful, it ends early retirement over the next seven years and cuts pensions. the former association welfare minister ousted for opposing this bailout says pensioners will lose

it is better for the bank to end up selling that loan at $.70. they are only taking a 30% hit. >> given the fact that a chase in the quantitative easing, any thoughts on the equity market? >> i think it probably makes sense. you are going to have this qe1 or qe2 out there. to generate an equity return. >> be looking at any chinese debt that could be more opportunities out there? >> there is. the opportunities there is you have got to buy. you are buying from those state owned enterprises. state owned bank. you' re buying the debt of the state on enterprise. we buy that debt after it has defaulted. able to recover. >> that is the essential question. >> we are comfortable with it. at the end of the day, china has one of two choices. have got to follow the western legal system. if they decide not to come no one will invest in china. >> your quest for ownership. >> i think it is extremely fun. it is a blast. it is a dream come true. >> anyone 18. -- and you bought a team. >> about a year ago. >> the bucks was one other franchises on sale? >> at the ti

the road. >> we have a loan with the bank. then we also have a mortgage with david, carrying the note. jamie: according to patty not everyone is happy. >> my sister thought she would not get a fair portion of the proceeds from my mom and dad's estate. but the bottom line is we paid the appraised value for part of it, we inherited part of it. >> patty and allen own gatorama and every beast on the lot. i doubt old cecil clemens who opened it in 50s would recognize it today, allen has redone the ink yo. the inside in a good year they sell more than 10,000 pounds of prime gator meat. farming has been good still in the wild. >> population has been steady or increased. you know like any other farmer we're not going to destroy the environment because that is our livelihood. with any luck their son ben will be next generation to seagate or ramma -- it is already paying him dividends he found his wife here. >> just got married 4 months ago, my wife walked through the doors of the gift shop. jamie: that is how you met? >> that is how we met. jamie: she works with him. >> she loves it mere. jamie

the banks, yes. so, the banks are far safer. where the problem is, it is harder for the clients to get lower services for banks that are stressed. even deposits on account at the fed or loanured against very liquid securities now count against things like the supplementary leverage ratio, and as a result, it is a lot harder for clients to quickly adjust. joe: all right, last thing. the view that oil is headed lower, the 30's. what is that all about? steven: it is fairly straightforward. shell oil is a lot cheaper. it is the major supplier in the market and that has changed the equilibrium for opec. opec used to be marginal supply. their optimal answer was to raise revenue by restraining supply. today, shale is the marginal supply, which means a petrol best solution is to supply the rest oil. they have more rigs in the ground than any time during my professional career. so the between low-priced shale and the new production of opec, we will see lower oil prices for a very long time. scarlet: all right, steven strongin, thank you very much. joe: and we will be right back. ♪ scarlet: -- i'm scarlet fu and scarlet: -- i'm scarlet fu and -- joe: i'm joe weisenthal. scarlet: ma

the reverse horj is an opportunity they have to allow them to have financial freedom in their senior years. >> a reverse mortgage is simply a loan from the bankon part of the equity in your home. it's available only to homeowners 62 or older and it must be your primary residence. >> the advantage that the seniors have is there is no mortgage payment. >> in fact, with many reverse mortgages, the bank makes its monthly payments to you instead of the other way around. i wanted to see how reverse mortgages really worked for actual folks, so i hit the streets to talk to a few homeowners. we'll meet with josh shine. a reverse mortgage expert, and he will introduce me to two families. hey, josh. what's up, buddy? >> let's go meet these families you are talking about. >> we're going to meet two families today who have reverse mortgages. both different circumstances. first family we're going to meet, bob and marge. they did a lot of retirement planning, put a lot of money away, saved a lot wrfsh. >> why did you both consider to do reverse mortgage? >> we were wanting to be starting to tap into our long-term stock investment, and in looking at it, we s

i told them the only way out was a little eh loan modification and explained how to approach the bankone. time now to check in and see how they're doing. >> tell us what's happened since the last team we saw you. >> we did get a loan modification. a big thanks in large part to your efforts as well. >> thank you. >> and we have our head above water at this point, and we're beginning to reorganize things here and inside the house and -- >> and it's taken a whole year. >> i know that there was a period of time that you had made payments, so part of the modification was what? on what was owed? >> they put the part that i had missed payments for several months in a row. they put that at the end of the loan, so we still have that coming up. >> right. >> but that's the end of the loan. >> that's the end of the loan. >> so we have a modification, signed agreement between all parties. >> yes. >> you have -- you saved a little bit on your monthly payment, which helps. >> couple of hundred. >> everything helps. >> definitely. >> more importantly, what you were concerned about was what was owed.

the energy sector. a lot of these banks have loans to the energy sector they've tried to off-load and haven't been able to do that. >> cnbc's coverage of the breaking news sell-off continues after this break. you're watching cnbc. first in business worldwide. >> apple's doing something it hasn't since 2012 and it could signal your opportunity to buy. ♪ hallelujah >> we'll tell you what it is that has traders so excited when "options action" returns. ♪ turn your love around here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. ahh... steve, other than making me move stuff, ces. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one pla

the seconds was called the international bank for reconstruction and development, better known as the world bank, which was going to make loans. and the third institution was the international trade organization." they agreed all currencies in the agreement would value themselves against the u.s. dollar. the dollar would be backed by gold at the fixed rate of $35.00 per ounce. currencies were, by design, forced to stay relatively stable at the expense of potential rapid growth. but as japanese and other markets recovered -- america started paying out more for imports. "by the end of the '60s, there was a run on the dollar the u.s. government was anxious to stop." "a trade imbalance along with the run on the dollar have become almost acute. so what the president decided to do was swallow all the bitter medicine at once in hopes of a quick cure." facing a crisis, nixon brought 15 advisers to a secret meeting at camp david over a weekend. when they returned august 15, they had devised a plan that would shake up the entire system as it had been known to that point. "there was a demand from the rest of the world that the u.s. do s

that's just prior to the regular fomc meeting. 5 out of 12 regional bank directors urged fed policy-makers to raise the discount rate. that's the rate the fed charges the banks for loans. at that time those five thought economic and labor market conditions had improved to the point where a rate hike would be appropriate. the fed did not in fact raise that rate or any others at the july meeting, as you know, and we should note that, of course, this was before the recent developments in the markets cast doubt on whether or not we will see a september interest rate hike by the fed. all right. back to you guys. melissa. >> all right. thank you so much, sue. welcome, everybody, to the second hour of "power lunch." we want to go to eamon javers who has breaking news at this hour. >> reporter: yeah, that's right. the department of justice is saying today the fbi took into custody a former jpmorgan analyst from the san francisco office of jpmorgan along with two of his friends in an alleged insider trading scheme. the department of justice says ashis agarwal along with two other men have been taken into custody. agarwal allegedly participated in an insider tipping scheme abou

it is true that the fed does create money and it is loaned out by banks. that is the way it works now. as far as the bonuses, that has a lot of people upset, but regulation was put in place several years ago. not so much on bonuses, but raining and some of the excessive practices that happened during the mobile -- the bubble. the sec is requiring public companies to report how much more their executives are being paid than the average worker. there is an attempt for that information to be put out there so people know what is going on. host: we should charge earlier of total deficit and that as a percentage of gdp. know the difference between deficit and debt. thest: the deficits' difference between what the government takes in between taxes and other sources. the difference between taxes and spending. ae cbo expects there to be 450 billion dollar difference. that is an annual deficit. thaning 400 billion more we taken. that is relatively low compared to the past 6, 7 years. in 2009, 2010, the deficit topped $1 trillion a year. of debt is the accumulation th