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The National Credit Union Administration a federal credit union watchdog has filed lawsuits against JPMorgan Chase and the world Bank of Scotland group.
It claims a five credit unions were tricked.
Into purchasing more than three billion of mortgage bonds that went sour.
But is that really any of the government's business to file lawsuits anytime a deal is -- bad what's next well they file lawsuits on behalf of gamblers -- bad bets on the NBA finals.
Here to discuss -- my freedom fighters Fox Business Network anchor and my colleague Lori Rothman.
Occidental College political science professor Carol and held them and -- -- institute president Iran book.
-- you run to you first -- -- any of the government's business that some credit unions bought bonds from some banks.
And didn't do due diligence to the extent that the government did after they -- that the deal once our -- money in the market yesterday's the government and assume in my behalf and never -- -- -- forward.
It's ridiculous this is more of government in a sense Nashville rising a banking system trying to decide who the winners though with the loses up.
How the well should be distributed it is -- soot for the government exposed to meet these candidacy.
Carolyn if the government sues every -- a deal goes sour deal as to which the government was not was not a party.
Isn't that sort of a safety net underneath these deals that will discourage due diligence.
And of course people who say I don't have to worry if this doesn't work out because Uncle Sam will come to my rescue.
Well judge if that was what was happening I would agree with you but I think what's happening here -- is -- the banks created toxic assets as soon as they've realized.
They were on the books they -- then very deceptive in trying to offload them we know this is a pattern of behavior that you know it's -- I'm glad that the government is going after the more egregious.
Causes of the financial meltdown in 2000 and they especially considering the financial reform has been so water I -- That is not actually under I understand your argument that's probably why should the government be doing less of a credit union thinks -- -- -- a piece of paper that wasn't worth what it's supposed to be worth.
Should sue the -- -- and.
And you know I -- Carolyn I hope we can have copied -- next time your new York at a time becoming.
The banks the big banks Goldman JPMorgan UBS in this case just the market makers and what the government is doing is.
Outrageous and are basically looking at these offerings sheets and basically calling it.
Bad advertising we have to pointed fingers at the loan originators and the credit ratings agencies.
Should the government protect us from anything.
Except force and fraud absolutely not invade this country was found in the principal.
That the government does one thing and it doesn't really well protect individual rights that means protect us each one of us as individuals.
From -- fought there's -- fought him.
If -- -- fought the credit unions would have sued this is the government.
You know decide who the winners in in in really decide to penalize what's been penalized to -- doesn't -- have a -- -- mean at least if these -- documents that these instruments were so bad why didn't the people lost money filed the lawsuits.
Why does the government have to get involved -- and other than to provide the -- the federal court for the lawsuit.
Well I admit it and obviously originated with the people who are affected because how the government even now that there's a case -- but it's because it's systemic.
Because it was a systemic problem and I would very much agree with -- that we do have to go after loan originators we have to go after the rating agencies we also have to go after the banks who knew once he realized he's in these assets for talks OK then tried to get rid of them been very unethical ways OK but the people doing -- going -- Or should be the victims and -- the government wants is also a huge distraction right it's a distraction from the real cause of the financial crisis which is not these banks.
It is government policies and Freddie to Fannie to defend who hasn't happened -- this -- I practice week we got to switch gears to this that nonsense and of Food and Drug Administration today which announced graphic new warning labels for cigarettes take a look these labels.
These labels are now required.
On every cigarette pack cartons and advertisement.
They show people breathing smoke out of their throats they show people wearing oxygen masks what right does the government.
Have to control the advertising of -- private company.
Isn't this a violation of free speech ms.
-- -- the government going to try to ban smoking all together be funny right if marijuana was legal that smoking was illegal.
I think these ads are outrageous because we know smoking is bad yeah I think the FDA needs to put -- dollars to work.
Fighting for DE coli outbreak at a -- Think I believe me in the First Amendment Caroline doesn't believe the freedom of speech extensive commercial speech apparently.
Well and this is one more tool and a parents arsenal because what we're really talking about here is parents -- appetizers the average age you start smoking is thirteen.
So finally the government has got into the game and said look we're gonna provide graphics that a thirteen year old can understand.
Parents should be rejoicing over this I.
Think that this is actually -- -- I think the government is actually stealing property.
From the sellers of tobacco look I can't stand smoking anymore than anybody else hates smoking but I think that the government is actually stealing their property when it forces them to spend their own money.
On a depiction that deters people from buying their product which is a lawful product.
I think you're absolutely right if -- -- shouldn't talk about -- and -- it should be in that it should be illegal but it is it is ridiculous this is not the job of government.
To tell us what to smoke what you -- What to consume this isn't -- -- on a -- and.
-- you know why they'll never make tobacco illegal because the government collects fifteen billion would that be.
Dollars a year in taxes on tobacco product listen Altria Group it is -- huge fortune 500 companies and you need to -- for Wall Street and I hate this I definitely trickles down into the economy and these companies.
Are very supportive Caroline can the government take any company any industry and just -- -- and they can advertise against itself.
Well I think industries that caused the death of 440000.
American a year -- cost a 167.
Billion and health care costs and got lost -- time about twice almost three times.
As much as the taxes it brings and those industries I think it can regulate just keep on.
Who smoke cause their own gas industry doesn't cause you to smoke urging -- -- -- searching cars -- that is hot.
Parents responsibility not industry's responsibility if pets can monitor -- thirteen year old then they're in big trouble.
Only have about ten seconds that they stock value of these companies -- ads like this come up again.
Actually interesting today they were down the tobacco companies right before the closing bell I didn't see the clothes they were slightly lower because I think the shock value here is.
You know it's sending people so it's seen and I'm a mom and I hope that my kids CD's and I certainly don't want them to smoke RA Carolyn held in Iran brought Glory Road but it's a pleasure thanks very much for joining us guys.
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