you had the third largest bank, wachovia, that needed a shotgun marriage on a monday porn morning to -- monday morning to survive. most interestingly, this book starts in early september when freddie mac and fannie mae, essentially, were broke. here are two institutions that guaranteed 40% or so of all the residential mortgages in the united states, whose debt was held all over the world in very significant amounts including by foreign governments that would not have taken kindly to a default, freddie or fannie. you had them honing a very large portfolio of mortgages themselves. and like i say, in early september they both were broke. it's worth noting for those who take shots at some of the people who were operating during september and october that those two institutions, freddy and fannie, were chartered by congress and were ruled by congress. and for those who have heard them criticize the leverage in the banking system, it should be also noted that they allowed freddie and fannie to operate with a 40 to 1 leverage ratio, and they let them guarantee over 100 times the amount of c

a couple of wachovia of heavier rain. not everybody cease those downpours. showers broken up. best bet for heavier steady best bet for heavier steadier rain in southeastern massachusetts straight throughout morning hours. by lunchtime. notice we have a healthy risk of showers. they are just more and more broken up so more and more of these little lows between showers and into the afternoon. i know futurecast is drying out optimistic. let's count on a little drizzle. the further -- the closer you are to the coastline. the better the chance for wet roadways into the evening commute. but will en end up being a big but will en end up being a bigger issue than the rains. winds at 45 to 50 miles per hour across the cape and islands. cape annne getting a dose of some of those winds. in boston it itself. gusts of 35 miles per hour. a noticeable wind and breezy into the afternoon. around the time at noontime that showers start breaking up but the winds will be pretty slow to ease up so still gusting 25 to 35 miles per hour inland and coastline by 7:00 this evening, we have a wind advis

feds -- the reason they were absolutely unclear to anybody in the market shows to say leihmann and wachovia when washington mutual failed, they decided to pay. we created a housing boom. we needed a correction. a lot was done by the panic that was unnecessary. there was no rule of law and in the beginning it wasn't as bad as the early 80's, by the way, i don't -- they didn't call it the secondary affect. >> i wonder if you can comment on the notion that banks deregulated. that might have contributed. do you agree with that? >> absolutely not. massive increase under george bush. we had the patriotic act. massive increase in regulation. if you can go count the pages, the massive increase in regulations, banks were misregulated,s no deregulated. a lot of people point and paid no role in the financial crisis. banks like washington, countrywide had no obligation. maybe citigroup was a little worst. the industry was not deregulated. it was missregulated. >> do you think that the federal reserve it was up to her ideal that she expresses in her words? [laughter] >> no, i would go beyond that. i had

but wachovia was. anyway, are there places when you look at the books of the banks you supervisors that are areas that are of concern for you along the line joe is asking about? >> i don't see anything i call a bubble and the people said word is something obviously going to go down real soon. so far, the thing seemed pretty manageable. so, i don't see something that's so out of wham, m na activity. that's like a swap of financial assets. so it's an implication for a real economic activity, spending consumers real capital investment by businesses. >> buy backs. and the question is? >> and the question is whether you think you have companies that are borrowing money to buy back stock, whether that's a productive use of -- >> instead of long-term capital investment that they're fought doing now? >> no. >> i would argue, by the way, one of the reasons they're not investing is because they don't see on is other side the order book. >> maybe because there is no growth because here at zero. >> to make a physi

1210 would allow lenders to deal in the same kind of risky loans that sank washington mute tall, wachovia and countrywide and the entire economy in 2008. the bill undermines the anti-predatory leapeding provisions of the dodd-frank act and virtually eliminates one of the most significant consumer protection rules implemented by the cfpb. the bill also revises an industry practice under which mortgage brokers can earn hefty bonuses by steering borrowers into riskier more expensive loans regardless of whether they qualify for better rates. my colleagues seem to forget that we went through a terrible financial crisis, while we did spend hundreds of billions of dollars to rescue the banking system, millions of victims of predatory lending were left to defend for themselves as they were displaced from their homes and saw their life savings disappear. many reforms in the dodd-frank act ensure that the fingerprint shal try will never again be allowed to take the kinds of risks that drove us to a national crisis. but the mortgage lending rules are designed specifically to protect families from fi