who told the treasury department? >> pardon? >> who told the treasury department. the letter i got was from april of 2014. who told the treasury department? >> my understanding is the letter does not say the e-mails had been lost, it says that someone from the general counsel had informed the department of treasury that there was an issue the irs was investigating. >> know the letter says, the treasury was told, who told treasury? and you know who and treasury told the white house? >> i have no communication with the white house. irs.u are the head of the you don't know something this important? of the executive branch, we have regular communications with treasury to my we review them, we are in the process of reviewing regulations on the 501 c issue. knew in february, maybe march, and treasury knew at least in april, congress and the american people didn't find out until june, were you purposely not telling us? thought wasriginal to complete the review, and to produce a report laying it all out. did the irs in form th

who told the treasury department? >> pardon? >> who told the treasury department. the letter i got was from april of 2014. who told the treasury department? >> my understanding is the letter does not say the e-mails had been lost, it says that someone from the general counsel had informed the department of treasury that there was an issue the irs was investigating. >> know the letter says, the treasury was told, who told treasury? and you know who and treasury told the white house? >> i have no communication with the white house. irs.u are the head of the you don't know something this important? of the executive branch, we have regular communications with treasury to my we review them, we are in the process of reviewing regulations on the 501 c issue. knew in february, maybe march, and treasury knew at least in april, congress and the american people didn't find out until june, were you purposely not telling us? thought wasriginal to complete the review, and to produce a report laying it all out. did the irs in form th

letteressor, i read your to the treasury. like a tax lawyer, and i have got language that reads -- if the corporation is managed or controlled or has significant business operations there -- and then as a tax lawyer i get excited because they can be interpreted different ways. if treasuries could have solved this on their own, does this come down to interpretation and enforcement? >> well, what you just referred to is not within the realm of the treasury. it is in the realm of the congress. thatury has proposed companies like the transaction and burger king, that the foreign holding company would be treated as a u.s. company is the more thanholders own 50% of the company, but that would be a legislative action and not an administrative action. >> sam, i want to bring in our guest host, tim bitsberger. he has a question as well. >> i ask this as a board member -- a net capital have the right to move freely to enrich shareholder value? i feel like some of these actions being proposed are kind of knit taking and don't really enco

the case. you knew. and in april, your agency informed treasury about the problem, and treasury agreed with you that congress should be told as soon as it was able to. yet you did not provide the information. and then you assured us you would provide all the e-mails without limitation, with no mention that you then knew, two, three months into this they were not retrievable. >> as noted, all of this is a result of our providing you a public and fulsome document about this matter. we have not been hiding -- >> sending a letter months after you knew the e-mails were supposed to be lost, withholding the information -- you are aware this was a congressional investigation. you withheld the information. >> we did not withhold the information. >> you misled congress in may, when you said the e-mails would be provided. >> we have provided you the information, and you have had the information for some time. >> mr. commissioner, you did not tell me under oath that you told us in february and march and april and may that the information was lost. that was just what you said. tell us that again, that we knew that. >> un

. >> host: how much does this mean in lost revenue to the treasury? >> guest: nobody knows. it's clearly billions and billions and billions. there was a projection that the joint committee on taxation did that said if these things are not stopped, it would cost $20 billion over the next 10 years, but everyone i talk to including some of the people involved with that said that estimate is way low because it didn't anticipate what's going on now. so the short answer is, nobody knows but it is a lot. >> host: you have it figured in your story. 19.5 billion is what this committee estimated. you said that's conservative. that's about 2 billion a year. why do you say that is conservative? >> guest: because windows numbers were done, -- when those numbers were done, that was done before this big wave of inversions started. they were just taking a guess on how many companies would invert, if they weren't stopped. they are guess it's clearly low. i think, again, there's no point getting hung up on this number because it's the only number there is and it's too low and it makes no sense

basically scam the treasury ok just like is this now going to scam the u.s. treasury here you can scan the treasury and they might consider one day might possibly this should be in jail theoretically possibly it's allegedly possible that you should be in jail for scamming and they point out that between april two thousand and eight and september two thousand and nine for traders cut seven point eight million off the fees lawyers paid to the treasury by manipulating the repo rate which set the level of the feet so this allowed the state bank to access the tens of billions of government guaranteed free money and sensually we're going to have to the lloyds because the financial misconduct headlines are being grabbed by barclays royal bank of scotland h.s.b.c. laundering terrorist money etc so lloyds has really come in into this group now and established itself as a underhanded scallywag and and financial terrorist lloyd so i mean i think that they felt a little bit behind you know they weren't getting the recognition as criminals as money launderers as misselling

in another scandal lloyds bank just caught in another major scandal where they were ripping off the treasury and the bank of england of course h.s.b.c. laundering money for hezbollah royal bank of scotland involved in numerable frauds and crooked behavior so your point is that this is really the way up the slippery pall of knighthoods in the countries that we can expect this kind of behavior to increase not decrease yeah it seems to be what we've lost based on our economy home you know multi-billion pound frauds crookery and also you know let's not be judgment about it he who has never laundered money for his blog. you know no moral high horses about it but. basically it seems that you know i think clear as a country we we prize nothing of on the creation of money that's that's basically the only thing that counts in those who got in i guess the relative pay for people who take massive financial risks and drive this country to the brink of catastrophe and primary school teachers now clearly you need high level skills to drive the country to the brink of financial catastrophe and a total lack

for example, it describes the process for how omb is working the treasury to assess the capabilities of our existing shared service providers to identify gaps, and kind of help bolster them. introduces the treasury department as our key partner to reviews agency system implantation plans to make sure that agencies are ready for shared services. in the past, we would have agencies come up and say, we are special, we are unique, we cannot go to a shared service provider. we now have mechanisms in place for the treasury department where we can review requirements and work with agencies to have a back-and-forth and end up with a decision about -- decision memo to provide what is best for them. announcedmay 2, we official designations of shared service providers, the folks you see on the screen. three of these were previous writers that you were all familiar with, the department of treasury, interior, and transportation. and then we added a new shared service provider in usda. if you are a federal employee, you may get your paycheck -- because usda is a payroll provider. now they are a ne

the treasury inspector general has her blackberry, at the irs said the blackberry will only have e-mails that were in outlook, on her main computer. it is ongoing. and theentioned, headline reflects this, republicans are pushing for a special counsel. withhat they are not happy the status of the investigation, calling on justice to appoint a special counsel. how likely is that? >> i think that is unlikely. attorney general holder has said he does not think that this case merits a special counsel. it is unclear whether these alleged conflicts of interest would push it to that level. one of the women they focused on had given money to obama. she is one of many people looking into this, and a couple of other people called out, had previously worked on irs issues and had relationships with miss learner. what about the issue itself. the issue of tax exempt status from these political groups. where does that stand? there is effort earlier this year, some proposals to change that. will that happen? anytime soon. they pulled that proposal to revamp it. a new version is not expected until next ye

the. treasury secretary at the time placed the companies into conservatories shift and provided them with hundreds of billions of dollars in backstop financing there was one catch though the government never wiped out the existing common or preferred shares because doing so would have bankrupt bankrupted some major midsize american banks which have been encouraged by regulators to use the preferred stock as bank capital what c.d.'s these now stranded capital structure rules would dictate that the common preferred shares should have should have been wiped out but the government didn't want to do that and hedge funds piled in thinking that these things had huge optionality values and they were right now once the conservatorship now once in conservatorship the government required it and fred to issue super preferred stock to the treasury department stock which they do which they wouldn't repaying to the government before all other creditors at a rate of ten percent so they jumped in the line now what do you know by two thousand and twelve fannie and freddie started accounting huge huge gains

now once in conservatorship the government required and fred to issue super preferred stock to the treasury department stock which they do which they would repay to the government before all other creditors at a rate of ten percent so they jumped in the line now what do you know by two thousand and twelve fannie and freddie started accounting huge huge gains accounting gains now with the crisis behind it because it meant decided the common preferred stock should be worth zero and all dividends should go directly to the treasury no stops along the way common in preferred stock holders would receive nothing that of course didn't sit too well with the hedge funds and they sued now why i think these funds are vultures and investors like warren buffett right there on your screen wouldn't be caught dead participating in the shares i do understand however that the hedge funds are within their legal right to do this but that doesn't make it ok now with that said when it comes to ethics who really is to blame here the government shouldn't have allowed the purchase of these common preferred shares in

in the treasury market, and rates hitting the lowest level on the ten year in more than a year. >> jeffrey gundloch is the ceo of doubleline, joins us exclusively. >> how should investor it is be seei seeing. put it into your own words. yields are being dragged down pretty clearly by the persist isn't decline in yields. i mean, when you take a look at the relative value of treasury bonds versus french bonds. spanish bonds german bonds below 1%, it's totally understandable why treasury bond years have been falling. been positioned very badly. with rate differentials where they are, there's every remembers in the -- not only do they not only yield more, but the dollar is likely to continue to be relatively strong given the geopolitical concerns, an given the recessary type of economic that's a consequence so long-term treasury bonds against all prediction, there's no value, really. if you thought there was no value in the ten-year at three. , people are looking for safety, and obviously the treasury bonds. >> how low do you think we're going? >> i don't think so i've been talking about since

they have to supply the treasury with $6 billion a year to take care of the retirees and health benefits. >> but if they default on it -- >> they knit our country together just like the pony express. >> stop, stop, stop. when they don't have the money to pay back the loan, they default and who picks up the tab then? the taxpayer. >> they're operating revenue is actually going up. private companies rely on the post service. and if it goes away, all the prices go up and the fact that amazon just contracted with them. yes, u.p.s. and fedex use them because they're not going to provide services to rural communities. we can't leave them out, this is america. >> we're capitalists here, we're free market capitalists here. the pricing mechanism is broken with the post office. >> there's no doubt about it, eric. i'll tell you something else. the proof of the fact is that you have fedex and that you have these other postal services that are -- that came out of the private sector to compete with the post office. i mean 75 years ago they weren't there. they're there today and they are competing and

in the 1940's, worked for the u.s. treasury department. his claim to fame, perhaps infamy, is that he is the one who proposed to the treasury that to pay for the war, we must begin withholding. tax withholding started with a milton friedman suggestion. one that he seemed to regret after that, being such an antigovernment type of person. withholding allows a very high level of taxation. buyer to the 1940's, you pay taxes only on april 15. you sent in the full amount. if you are going to become a large government were government is taking 20, 30% of your income, you will have to have withholding. he made that government more efficient as a result. in 1946-1977, most famous for being an economist, a professor of economics at the university of chicago. that is where he did all of his work. birth,, the year of my he was a founding member of the mount pellerin society, which is economic thinkers from all around the world to toher every year or so discuss and present papers and so forth. i've been a member since 2002. it is by invitation only. we

a quick check of the treasury yield. a flight to safety. gone up and the yield has come down. i think you have the latest. charles: we heard that there was a separate column from the white trucks that we have been watching all day long. stuart: armored columns. >> absolutely. you have the uk to clarify reports. military action by russia and ukraine. we have said over and over again, western allies of ukraine, russia attacking ukraine is an act of war. >> this is ukraine attacking. >> it is getting louder. stuart: look at what is happening. it is pushing the yield down and the price up. they are now down 132 points. they are getting right into the middle of the markets today. >> no question what is going on right now. both sides have nothing to win. we saw it two or three days ago. the rest of europe is in bad shape. this is one of the stupidest things that is going on right now which makes it even more frustrating. it is a bigger deal. treasury bonds are straight up. $1 pro- climate democrats in november. they are pushing back. new at noon.

suddenly, the 10 year u.s. treasury is one of the high-yield government bond markets. could sell spain and by 10 year treasuries and pick up about a dozen basis points in yield. >> what else are you buying? u.s. treasury's is a good bet. what else looks valuable to you right now? everything is relative right now. >> we like corporate reddit. when we look at the way companies are managing their balance sheet, they clearly learned from 2007 and 2008. they are all building fortresslike allen's sheets. we like high-yield in particular. we look at credit spreads of just under 400 basis points. with the false normalized at about one percent, that seems to be pretty good value. in europe, we like the bank capital sector of the market. >> is it safe for investors who will retire in four years? non-hedged? >> it is a safe bet for the time being. the game changer to me is when you begin to see the fed lift the fed funds rate. right now, if you own bonds or another asset classic on and you want to book a profit because there are profits everywhere in the bond market now, you end u

commissioner singh. >> how much money do we have in the funds, like, we have most of the money in the treasury? i mean, money market funds or what kind of -- where we keep all the money? >> well, as i mentioned we have quite a fair amount of bond research money required by our bonds and that's in the tens of millions of dollars in u.s. bank and bank of new york that manage those. and then with the treasurer right now we have -- it's in the tens of millions of dollars. i didn't come with that exact number right now, but that includes some of the old housing bond proceeds that we haven't yet spent down down that are holding and not in escrow accounts. it includes the tax increment we've received. we have a lot less than we had at dissolution. i know at a certain point we had about $300 million at the time of dissolution and we are spending that down on the projects we are charged to implement. we still have tens of millions on hand that we are trying to spends. >> [inaudible]. >> sorry? >> she shallly [inaudible]. >> yes. that's set up be the charter. >> who is the member of those committee? >>

let's not spend the time at treasury trying to come up with fixes. >> let's talk about that because insence of any agreement on legislation, president obama is in this area as well, talking about possibly taking executive action to stop tax inversions. what makes this particularly interesting is just last month, treasury secretary lew said that was not possible. take a look. >> we do not believe we have the authority to address this inversion question through administrative action. if we did, we would be doing more. >> senator coons, that was just a few weeks ago. what's changed? >> the larger point is we should act in congress. >> i know, but i'm asking you why was it in mid-july that the treasury secretary said he didn't have the power for sxekative action to stop inversions and now the president says they do? >> there are some technical areas where treasury can continue to apply the impact of the 2004 law. let me be clear on this point. in 2004, a republican congress and a republican president joined with democrats in the house and senate to pass a law to address inversions as a pro

over in the bond market, investors turn to safe haven u.s. treasuries and the yield on the ten-year fell to 2.34%. michelle has more on the latest developments in the ukraine, russia conflict. >> reporter: the markets demonstrated again today of the geopolitical concerns out there, the one most worrying to investors is the situation between russia and ukraine. that's because russia is such a large economy, it's one of the biggest suppliers of energy in the world and has deep trade ties with western europe. every time there is an escalation between russia and ukraine, we see the west increase sanctions against russia and while that has hurt the russian economy as intended, it's starting to hurt the western economy. particularly germany. they warned that exports to russia declined sharply. it's not a huge part of the german economy, but when we've just seen german gdp come out negative, suggesting perhaps that country is going into recession, it's one of the last things the western european economy needs. that's why when we see a situation like that that

with zillow cofounder rich are barton, ch2m hill ceo jacqueline hinman, and robert rubin, the former treasury secretary and former goldman sachs cochairman. >> the government is not meeting its challenges. i think that is a real threat to our future. >> coming up -- we will hear and these newsmakers weigh in on the in policy and business challenges of today's economy. >> what's your sense of what is going on in an economic in recovery? and in and in and in and will and it feels like we are fumbling along. how would you characterize this economy? >> i would say we don't have enough internally generated growth. we can't do that unless we unlock investment and direct it to high-growth areas. we have only two options. one is not favored by the house of representatives, which is to say we have cut the deficit by more than 50%. we have to get the structural deficit down, but right now, with interest rates lower than inflation, this is the best time we will have to undertake a massive effort to build a 21st-century infrastructure. if we did that, we would have massive internally generated growth. th

and on the riot is the u.s. treasury department and war and policy and money. war, policy, and money are the most important things. right across the street and right across the street was the freedman's bank. reagan wanted to come home at night, look out the window and see the candles burning. and then a general comes along. the general comes along and says why don't we give them 40 acres and a mule. and lincoln says it's not my policy or idea, but i can get with that. and they figured he would never be killed after the war until his longtime president, it will be run by a white man that has run that country and they said no, we're not going to cancel it. so we told them that expects to thing, if nora. and that's how you had a lot completely separate from federal law. don't try to save it in light of the fact that they were insulated? they still put their money in the bank. and the bank fails and they turn it back to it. have you ever heard this? one hundred years past and now you aren't 1957 including living history. and that is living history. 1965, 1968. whic

. >> but with little hope on of congressional action, the treasury ep department is looking into how to slow inversions on its own. how much a rule change could impact the government's bottom line. but one congressional research team said that in over a decade, the u.s. stands to gain $20 billion in revenue if most inversions are prevented. there's a lot more to corporate tax inversions than that, and we want to be sure to sort it out. it's a complex and legal bottom line move for companies large and small. so we invited experts to help us. steven moschcowitz. and in washington, joshua smith, senior policy analyst. and in ne in new york, liz hoffa reporter for the world trade wall street journal. how much goes here and how much stays abroad? >> it's a company's decision. for the most part, we're not talking about a headquarters. that's a slightly different concept. this is a legal idea. some companies are going to move some assets, and some aren't. it depends on how mobile they are. and you will see that some of them have corporate jobs in the u.s., and some in manufacturing and distr

alexander hamilton, then secretary of the treasury, he was a new yorker. the northern states wanted the the debt,sumption of meaning during the revolutionary war, the northern states had run up a great deal of debt while the southern states had not. the southern states wanted none of this. they wanted individual states to pay off their debt. the southern states wanted the capital closer to where we are today. in a grand compromise, thomas jefferson, alexander hamilton, and james madison of virginia, decided to package these two decisions into a grand compromise, so the united states government assumes the dead of the states from the revolutionary war, and the capital would be closer to the place that the southern states wanted, and this compromise was a very important point in the early history of our country and helped solidify the country and helped solidify democracy. , in fact,stitution had talked about a federal as aict that would serve home for the capital, and washington, d.c., is the only city in the country, the only created bye country the constit