now, an arm of the treasury is looking into tighter regulation of mutual funds, and it could impact many of the companies you likely invest with. >>> and mission critical. america's cities fund a big chunk of our economy, but many find themselves in a financial bind. tonight, we begin our five-part series in oakland, california, to see how that city is trying to fix itself. we have all that and more tonight on "nightly business report" on this monday, november 18th. >>> good evening everybody, and welcome, it was not easy or smooth. but the dow closed at another all-time high today, its 39th of the year. perhaps equally notable the dow crossed the 16,000 mark for the first time ever a and the s&p scored its own first, piercing 1800, neither held it long, though, stocks got an encouraging bit of news by william dudley who says that the banking will strengthen. the jobs pictures will improve and so should consumer spending, but late in the day a wet blanket got tossed, coming by carl icahn. he called some companies' earnings a mirage and says some companies could have a big drop. well, it

that they aren't ok for the record they're telling the treasury but they're telling the treasury to print these bonds buying them from the treasury inflating the price of the bonds and then keeping interest rates low and what's really shocking is that you explain to me very clearly is that they're not just buying them from the treasury they're buying them through these third party banks that are actually doing the buying and selling to keep this free market and i. think what a bizarre it's really shocking mockery let's talk about quantitative easing because if that's bonkers then this is a really messed up what you know i mean this is like a relatively policy that's completely and saying it's over the past eight years and you know the fed it's it's what it morphed into can be argued that it's horrible that it's going to what the fact the matter is that something different than what it was in the one nine hundred eighty s. even and with with quantitative easing they buy eighty five billion dollars a month worth of bonds find these bonds inflates the price these bonds but they are als

that they aren't ok for the record they're telling the treasury but they're telling the treasury to print these bonds buying them from the treasury inflating the price of the bonds and then keeping interest rates low and what's really shocking is that you explain to me very clearly is that they're not just buying them for the treasury they're buying them through these third party banks that are actually doing the buying and selling to keep this free market and i. think what a bizarre it's really shocking mockery let's talk about quantitative easing because if that's bonkers then this is a really messed up what you know i mean this is like a relatively policy that's completely and say it's over the past eight years and you know the fed it's it's what it morphed into can be argued that it's horrible that it's going to what the fact the matter is that something different than what it was in the one nine hundred eighty s. even and with. with quantitative easing they buy eighty five billion dollars a month worth of bonds buying these bonds inflates the press these bonds but they are also

that they aren't ok for the record they're telling the treasury but they're telling the treasury to print these bonds buying them from the treasury inflating the price of the bonds and then keeping interest rates low and what's really shocking is that you explain to me very clearly is that they're not just buying them from the treasury they're buying them through these third party banks that are actually doing the buying and selling to keep this free market and you know you think what bizarre it's really shocking and let's talk about quantitative easing because that's bonkers and this is a really messed up what you know i mean this is like a relatively policy that's completely and saying it's over the past eight years and you know the fed it's it's what it morphed into can be argued that it's horrible that it's going to what the fact the matter is that something different than what it was in the one nine hundred eighty s. you then and with with quantitative easing they buy eighty five billion dollars a month worth of bonds find these bonds inflates the price these bonds but they are

the treasury department will sift through the comments. they have to be submitted by the end january. there may be a public -- hearing. and itch the f the normal regulations process is allowed to work. final regulations will emerge in a couple years. >> julian epstein is set in stone. but what the treasury clearly indicates, they want to move toward claire fee rity and try to get certainly what they call candidate related political activity out of 501 c 4s. >> some what out of it. they should put a footnote out of this program. it is a significant move. it clarifies what has been lacking in clarity for the last 50 years. the scan daufl dal was never a scandal. groups on the left and right. were targeted. under shifting criteria. who qualifies for the tax status and who doesn't. what the rules are frying to trying o here. what the rule change is trying to do here. clarify, what is kid considered political activity. what isn't. a lot of groups, they run an ad to a campaign. lauren o'donnell is running for congress. isn't lawrence o'donnell a

this authority allows the fha access to u.s. treasury funds without congressional approval for any funds needed to balance its books. that is what this is. that is what is in the law. it is no kind of bailout. importantk it is very that we be honest with the american people so they know this is codified in the act of 1990. >> the chair recognizes the gentleman from texas. >> thank you, mr. chairman and for holding this hearing. we have several points. every body erect a nice is that fha has played a viable role -- everybody has recognized the fha has played a viable role in first-time ownership. when these young couples urges of these homes and raise up their families -- purchase home and raise of their families, that is why does important we have a healthy fha. they play a vital role. the problem is and is not on sound financial footing and that jeopardizes its ability to provide this first-time home buyer or low income financing. you are going to hear today is that fha is not broke. that is not the case. have a negative capital ratio f

the treasury department plans to sell its last 31-million shares of g-m stock, two-point-two percent of the company, between now and years' end...finishing a controversial chapter in american business. "they couldn't compete with japan." in 2009, g-m was nearly out of cash. the obama administration directed a nearly 50-billion dollar bail out. dubbed "government motors," a task force overhauled g-m's management, dropped two- thousand dealers and closed plants. "we're a better company now." "they are more profitable now." but some say the bailout violated financial darwinsim. "who's to say what would have happened had toyota gained market share. we might have better cars." in a statement, the treasury department said "had we not acted to support the automotive industry, the cost to the country would have been substantial--in terms of lost jobs, lost tax revenue, reduced economic production, and other consequences." some think one of those 'other consequences' may have been elections lost in michigan, ohio and elsewhere. "it was political." overall, taxpayers will have lost about ten-bi

who could imagine that the treasury would come up with some device for. continuing to make the payments there are ways the government could slip around as they're there they're well known the government has chosen not to do so i think the actual situation is that the republican party has caved on this issue there is not a majority to block the rise in the debt ceiling and so this problem having been resolved a few weeks ago will be resolved in february in essentially the same way and i think everybody now realizes that that's the case so i'm confident actually that this problem is has been dealt with at least for now. that was james galbraith a professor at the university of texas at austin and son of prolific economist john kenneth galbraith now it's time for today's big deal. joining me now for today's big deal the one the only rachel corrie's is how you doing lady i'm doing great how are you ok now this is one of my favorite subjects that we're going over today celebrity photos and they're not always from the red carpet some of the best ones now some of

mr assad will no doubt put to use his experience as a former assistant secretary of the treasury and while in that position he oversaw the unwinding of the troubled asset relief program better known to most people as tarp if confirmed by the senate massage it will replace gary gensler. and finally starbucks announced tuesday that it will pay kroft foods two point seven five billion billion with a b billion dollars to end a lengthy dispute over distribution of packaged coffee now the payment was ordered by an arbitrator following the coffee giant early terminations of a bagged coffee grocery deal between starbucks and foods starbucks breach contract agreements and mismanage the brand wall kraft denies this of course they demand that starbucks pay them a fair value for the business the award will now go to monday's international which spun off from crawford twenty twelve. those are summer headlines for today i was always will be tracking these stories and keeping you posted on all the latest. now just last month u.s. national debt seventeen trillion dollars by historical record but also

mr assad will no doubt put to use his experience as a former assistant secretary of the treasury and while in that position he oversaw the unwinding of the troubled asset relief program better known to most people as tarp if confirmed by the senate massage it will replace gary gensler. and finally starbucks announced tuesday that it will pay crawford's two point seven five billion billion with a b billion dollars to end a lengthy dispute over distribution of packaged coffee now the payment was ordered by an arbitrator following the coffee giant early terminations of a bagged coffee grocery deal between starbucks and. starbucks said that bridge contract agreements a mismanaged the brand wall kraft denies this of course they demand that starbucks pay them a fair value for the business the award will now go to monday's international which spun off from crawford twenty twelve. those are some your headlines for today i was always will be tracking these stories and keeping you posted on all the latest. now just last month u.s. national debt seventeen trillion dollars a historical record but

mr assad will no doubt put to use his experience as a former assistant secretary of the treasury and while in that position he oversaw the unwinding of the troubled asset relief program better known to most people as tarp if confirmed by the senate massage it will replace gary gensler. and finally starbucks announced tuesday that it will pay kroft foods two point seven five billion billion with a b billion dollars to end a lengthy dispute over distribution of packaged coffee now the payment was ordered by an arbitrator following the coffee giant early terminations of a bagged coffee grocery deal between starbucks and foods starbucks said that cross bridge contract agreements and mismanaged the brand while kraft denies this of course they demand that starbucks pay them a fair value for the business the award will now go to monday's international which spun off from crawford twenty twelve. those are summer headlines for today i was always will be tracking these stories and keeping you posted on all the latest. now just last month u.s. national debt seventeen trillion dollars a historica

drawing the attention of federal agencies like the departments of homeland security, justice and the treasury, the irs, the sec, and the commodity future trading commission are all taking a hard look at virtual currencies. >> the treasury department already subjects bitcoin and others to rules designed to fight money laundering. that's why some say further regulation isn't necessary, and they worry that further government intervention will send bitcoin overseas. let's visit with marco santori. good to see you. >> thanks for having me. >> i fundamentally still don't really understand this, but i get that that senator said that bitcoin is about funding child pornography and selling guns and all of these terrible things. every time i speak to an advocate, it's the other extreme. it's all fine, jumping from pink cloud to pink cloud. >> right. i'm an attorney. i'm a skeptic, and i'm in the bitcoin foundation. i realize on one end, bitcoin can be used like all kir kir -- currencies for illicit purposes. on the other end of the spectrum and this is what amazed so many people, the government was unde

ally financial, the one time lending arm of general motors repaid the treasury another $5.9 billion. ally paid back more than 70% of the total bailout money it got from uncle system. >>> south florida may look like it's making a come back, but if you dig a little deeper, it's in a hot bed of shady bond deals. our series "mission critical" heads to miami next. >>> even though sales of the all electric leaf car have been below target, nissan still plans to beef up u.s. production. now since the start of this year, the auto maker dropped the price of the leaf by more than $6,000. it now says the leaf is the top reason that customers are referred to the nissan brand. >>> some of those electric cars might come in handy on the day before thanksgiving, which aaa says will be the single busiest travel day of the year. aaa is out with the annual thanksgiving travel forecast, predicting more than 43 million americans will travel at least 50 miles from home over the long holiday weekend. that's down 1.5% from last year. nine out of ten travelers will go by car, fewer people flying this year. >>>

motion confirming the mayor's appointment of vivian fei tsen, term ending february 26, 2014 to the treasury island development authority board of directors. >> okay. you're used to this. >> it's great to be here, i'm very honored that the mayor has nominated me to be the treasure reer of the island authority, i've been involved in numerous specific projects in this city. i started out building affordable housing and with the first housing director of the chinatown development community over 36 years ago and i went on to do other things but i have maintained my relationship with that great neighborhood organizations for three decades and i am now the president of its board of directors, i was on the commission of the agency in the early 1980's and early 1990's and [inaudible] which i've been stuck for about three decades prior to my [inaudible] and a great advocate, strong advocate for family and children uses on that block. i was on the de young board of trustees and helped them with the building of the new de young museum in golden gate park, i helped the port of san francisco after more o

fannie and freddie have recieved nearly $188 billion from the treasury through the bailout.combined-- the two will have made more than $185 billion in payments to the treasury by the end of the year.since the finanical collapse-- freddie has reported 8 straight quarters of profitablity.fannie has reported 7. its all about a room with a view. real estate site trulia ranked the latest luxury home building trends, and finds that it's actually what's on the outside that matters most. "we found that the trends that are actually moving up in terms of luxury listings are those that have to do with views. big windows, expansive views, and outdoor features like tennis courts. those are terms that are all trending up in luxury listings." that was jed kolko of trulia. he adds fewer homes are being constructed with extravgant kitchens, meaning fewer custom cabinets and granite countertops. formal dining and living rooms are also less popular. luxury is also on the minds of automakers. motor trend has named the cadillac cts its 2014 car of the year due to the sedan's sophisticated technology and h

we're looking potential losses on the part of the treasury department stake in gm. here is an interesting angle to this of course. one of the reasons for the bailout was it would be disasterous for the economy and all jobs would be lost, right? >> yeah. ashley: seen as something that could not be allowed to sink. >> that's right, ashley and cheryl. so the issue is, you're right, the treasury is saying hey, we saved jobs in the u.s. we saved productivity and economic growth bailing out gm the question is, well if gm is building a lot of plants in china to turn its, for example cadillac plant. but those plants in china, not just to get close toward markets there but to turn those hubs, those gm hubs into exporting hubs for gm into that region. he is cars not coming out of the u.s. coming out. gm cars coming out of china. that is a debate too. you will see a lost spin about this out of the government about this by year-end, as treasury slowly unloads its shares. the thing is, yeah, we made money on aig, 23 billion. you know what will else the government's stake in aig m

what is happening in the treasury world? >> we are starting to think about what is the next fed meeting going to do, november employment numbers going to look like? that is what is going on. but that is standing fast until 2014 and i am not thinking it is the beginning of 2014. they need to see numbers. they are economically driven. interest rates especially the ten year is where the sensitivity is, where traders are watching things. the bond market, a different game. if you watch the deal, you are seeing that they never so much but the ten year, lots of action, people are going flat in the market at this point and it is all stocks. people are rotating out of the bonds and going more and more into the stock market. they missed it and any pullback is getting bought. liz: oil above $90 a barrel and there was a story of something off line and suddenly conversations with iran about how they are going to handle their oil. iran is losing $5 billion in oil sales, they are hurt by sanctions. why am i even talking about this commodity

and ali velshi tonight with the treasury secretary. money" tonight at 7:00 pm eastern time and he will interview the secretary of the treasury. i'm del walters in new york city. thank you for being with us. we'll see you right at the top of the hour. ♪ malcolm x and the movement. >> black nationalism was at its height in the 1960's, the movement was malcolm x. this year marks the 50th anniversary of dr. king's "i have a dream" speech, but

the treasury department announcing it will unload its remaining shares in general motors by the end ofhe year. the total cost to you, more than $11 billion on top of the billion-plus we lost on rescuing clies letter. as the problems pile up for the health care law, there's new talk we could be bracing for morrow bailout. gary b., you say stop these rescues altogether. >> exactly, brenda. we talked about this even prior toll the stimulus, prior to the bailouts. that the government should not be invoed. this is what happens when you get government involved in things the market should take care of. the market voted that gm and chrysler and all of those companies couldn't survive. they should have been allowed to perish and go away and the workers could have been a lot happier working for toyota or honda or ford. instead, we get involved in stuff like this. we get involved, my gosh, in my day in the '70s, we get involved with -- or sia lind ra. we'll be revisiting this show, mark my words, and we'll be talking about how the administration went to congress for whatever, a billion dollars, t

the make very large profits at least in the with the good the fed the fed gives that money to the treasury so it becomes so a sort of a twofer you get low interest rates which reduces the government's cost of borrowing then you get the dividend from the fed every year which helps to reduce the budget deficit but i was compared to two drunks you know leaning on each other so neither one falls down on the question what's happening though is that because the taper talk and interest rates are going up if you look at the fed's assets if it were a hedge fund it kind of is a hedge fund looks like a bad one if you march of the market the fed would be insolvent today it would wipe out their capital their leverage to almost one hundred to one of this point again a very small decrease a survey wipes out the capital so now they're getting closer to the point where they're not going to be able to pay these dividends over to the treasury without becoming insolvent that will make the u.s. budget deficit worse same same phenomena in japan and the u.k. here's a story corps he hails recovery ok as unemploym

the make very large profits at least in the with the good the fed the fed gives that money to the treasury so it becomes a sort of a twofer you get low interest rates which reduces the government's cost of borrowing then you get the dividend from the fed every year which helps to reduce the budget deficit but i was compared to two drunks you know leaning on each other so neither one falls down on the question what's happening though is that because the taper talk and interest rates are going up if you look at the fed's assets if it were a hedge fund it kind of is a hedge fund looks like a bad one if you march of the market the fed would be insolvent today it would wipe out their capital their leverage to almost one hundred to one of this point again a very small decrease in the last of a wipes out the capital so now they're getting closer to the point where they're not going to be able to pay these dividends over to the treasury without becoming insolvent that will make the u.s. budget deficit worse same same phenomena in japan and the u.k. here's a story corps he hails recovery ok as unem

we're still with our aig position after helping the u.s. treasury restructure that institution. position in bank of america, where we've helped in the restructuring of that institution. there are companies still tainted by five, six years ago. they are still incredibly cheap and we stay with them. they're essential franchises, hence their significance, and they have an awful lot to give. over time people are going to focus more and more on their assets as opposed to their diminishing liabilities. we've had very little movement in the portfolios. our last significant investment has been fannie and freddie because now is the time. >> you've bought even more since we last spoke, haven't you? >> yes weeks have. we have $3.5, $4 billion of its preferred par value and we own the common shares of both. it's clear to us that there's value in all structures. >> what happens, bruce, if the congress decide, you know what, we're just going to wipe that out? >> well, in all honesty, i would have to think about what it means to be an american. >> right, but at the same time, the government --

so i guess they didn't comment to you, reading your article. >> well, the treasury department did commenthad to lay the foundation, grease the wheels to open up the possibility of a deal and now we may have one. >> what the treasury department spokesman said was that they believe they continue to do the enforcement element of sanctions which is levying fiens and working on penalties for those already designated. the key thing is the designation process, the process of identifying the people and entities that iran -- >> slowing way down. >> has really slowed down. >> slowed way down. >> in terms of the cat and mouse game that's the way the u.s. government tries to stop iran from busting sanctions that were imposed. >> what does that tell us? people say, look, he's trying to get a deal so he was throwing them a bone even though he was telling us he was being tough with sanctions. what's the import of the story? why do we care? >> the administration believes it can turn on and turn off how it approaches things with iran. it saw what they thought was an opening. they are seriously negotiating

without a strong currency and when you cheap in the currency the way the fed is trying to do in fact the treasury in the white house have been supporting that and we can national security we're seeing that all over the world right now saudi arabia egypt and russia and others are discussing an axis to break away from the united states because it appears united states is unwilling to stand up to its security guarantees to saudi arabia the u.s. seems to be facilitating the rise of iran as a regional hedge a man that will be at the detriment of saudi arabia what the u.s. will find out is that the saudis will no longer accept dollars for oil though insist on some other currency they're actually working on a regional reserve currency the g.c.c. members including saudi arabia are trying to organize a central bank you have other possible currencies that could be used including the euro as germany continues to consolidate europe and make that a more creative european wide bond market european banking regulation bank insurance there are a lot of actors around the world the fed seems to be oblivious to this

without a strong currency and when you cheap in the currency the way the fed is trying to do in fact the treasury in the white house have been supporting that and we can national security we're seeing that all over the world right now saudi arabia egypt and russia and others are discussing an axis to break away from the united states because it appears united states is unwilling to stand up to its security guarantees to saudi arabia the u.s. seems to be facilitating the rise of iran as a regional hedge a man that will be at the detriment of saudi arabia what the u.s. will find out is that the saudis will no longer accept dollars for oil though insist on some other currency they're actually working on a regional reserve currency the g.c.c. members including saudi arabia are trying to organize a central bank you have other possible currencies that could be used including the euro as germany continues to consolidate europe and make that a more creative european wide bond market european banking regulation bank insurance there are a lot of actors around the world the fed seems to be oblivious to this

without a strong currency and when you cheap in the currency the way the fed is trying to do in fact the treasury in the white house have been supporting that and we can national security we're seeing that all over the world right now saudi arabia egypt and russia and others are discussing an axis to break away from the united states because it appears united states is unwilling to stand up to its security guarantees to saudi arabia the u.s. seems to be facilitating the rise of iran as a regional hedge among that'll be a detriment to saudi arabia what the u.s. will find out is that the saudis will no longer accept dollars for oil though insist on some other currency they're actually working on a regional reserve currency the g.c.c. members including saudi arabia are trying to organize a central bank you have other possible currencies that could be used including the euro as germany continues to consolidate europe and make that a more creative european wide bond market european banking regulation bank insurance there are a lot of actors around the world the fed seems to be oblivious to this or may

this is as the u.s. treasurylew told this channel that he might prefer a smaller budget deal. >> the right answer is a balanced approach. you know, there are a lot of members of congress involved in this budget conference. chairman of the senate budget committee, senator murray is the leading democrat in the negotiations. she has made the case that there needs to be a balanced set of policies. that can be small, medium or large. you can do some loophole closers that are just shutting down some things that are abuses to begin with. you can raise fees. there's always kind of things that you can do to put a balanced package together. nk it's easier to put together something small than something large. so let's see how far they can go. if they can make progress and agree to even something relatively, you know, small or moderate that replaces any of the sequester with a better set of balance policies, it's good for the economy. >> let's bring in karen ward. karen describes it as punches in the face from politicians. a

all our money goes back to the treasury. i get paid the same amount of money, which isn't much, regardless of how much money we generate for the federal government, and to the cbo chart if you add in 20 -- >> i'm running out of time. let me get to some other questions. we are arguing semantics. are you being prepared, are you looking at a possible downturn and what are you doing to prevent that and what's your thoughts on qm? >> again, i don't control what happens in the common. i really hope we don't have another downturn but we are -- >> man, you just testified you look from economic projections to make changes and adjust this to your program. i'm asking what are you doing? >> let me clarify. the economic projections are used to value the existing portfolio, okay? what we look at in terms of our undivided criteria is what do we need to do pricing wise, credit lives to ensure that we are pricing our risk appropriately, and taking the right wrist. we have done pashtun i've listed those out. we have done a number of measures o

without a strong currency and when you cheap in the currency the way the fed is trying to do in fact the treasury in the white house have been supporting that and we can national security we're seeing that all over the world right now saudi arabia egypt and russia and others are discussing an axis to break away from the united states because it appears united states is unwilling to stand up to its security guarantees to saudi arabia the u.s. seems to be facilitating the rise of iran as a regional hedge a man that will be at the detriment of saudi arabia what the u.s. will find out is that the saudis will no longer accept dollars for oil though insist on some other currency they're actually working on a regional reserve currency the g.c.c. members including saudi arabia are trying to organize a central bank you have other possible currencies that could be used including the euro as germany continues to consolidate europe and make that a more creative european wide bond market european banking regulation bank insurance there are a lot of actors around the world the fed seems to be oblivious to this