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News Wrap: Fed Addresses Foreclosure Frenzy, Bloody Weekend in Mexico

October 25, 2010 at 4:48 PM EST
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HARI SREENIVASAN: The chairman of the Federal Reserve weighed in on the foreclosure mess today. Thousands of foreclosures have been frozen, amid questions about legal documents and other issues. And Fed Chair Ben Bernanke said in Washington the Central Bank is getting involved.

BEN BERNANKE, chairman, Federal Reserve: We are looking intensively at the firms’ policies, procedures and internal controls related to foreclosures and seeking to determine whether systematic weaknesses are leading to improper foreclosures. We take violations of proper procedure very seriously.

HARI SREENIVASAN: On Wall Street, questions about foreclosures hurt Bank of America again. Its stock fell another 2.5 percent. Bank of America is a “NewsHour” underwriter.

The Dow Jones industrial average gained 31 points to close at 11164. The Nasdaq rose 11 points to close above 2490.

More families were left mourning in Mexico today after a weekend of new drug violence. At least 10 people were killed at a drug rehab center in Tijuana last night. Gunmen burst into the center and made the victims lie on the floor, then shot them. And, in Ciudad Juarez, 14 people were killed Friday night when a gunman stormed a birthday party and opened fire.

The cholera outbreak in Haiti that’s killed nearly 260 people may be stabilizing. Health officials reported today that some 3,000 people have been sickened by the bacterial disease, but they also said the rate of new cases is slowing.

So far, only a few cases have appeared in the capital,Port-au-Prince. More than a million earthquake victims are living in makeshift camps there.

In Afghanistan, President Hamid Karzai acknowledged his office receives money from Iran, and he insisted the U.S. has known about it for years. Karzai confirmed a New York Times report that Iran is literally providing bags of money. He said his chief of staff takes the cash on his orders.

HAMID KARZAI, President of Afghanistan: This is transparent, and this is something that I have — I have also discussed with –even when we were in — at Camp David with President Bush. This is nothing hidden. We are grateful for the Iranian help in this regard. The United States is doing the same thing. They are providing cash to some of our offices.

HARI SREENIVASAN: Before Karzai’s statement, Iran had dismissed the allegations.

A Canadian man has pleaded guilty today to killing an American soldier in Afghanistan. Omar Khadr entered the plea today at Guantanamo Bay, Cuba. The killing happened in 2002, when Khadr was 15 years old. He now faces a military jury for a sentencing hearing.

Long-haul trucks, school buses, and large pickups in the U.S. will face gas mileage and emissions standards for the first time. The federal announcement today affects new vehicles beginning with the 2014 model year. The goal is to cut emissions and fuel consumption up to 20 percent by 2018.

Those are some of the day’s major stories.