Lois lerner the former irs official who was found in contempt of Congress Last week sent an email correspondence in april of last year. The april email explains the bolo criteria looked to pick groups for additional scrutiny and screening. Looking for groups with tea party, patriot and 9 12 project. Organizations seeking to make america a better place to live and groups with statements in their case files that are critical of how the country is being run. There is also new information about the actions of retiring michigan senator karl levin who sent a series of letters during the final stages of the 2012 president sham campaign. July 30th, 2012, levin singles 12 groups he wanted investigated for political activity. September 27th, he asks for copies of paperwork about planned political expenditures from conservative groups. October 17th, Stephen Miller tells levin that americans f for expressed the irs handling of the socalled 501 c 4 organizations including accusing the irs of misinterpreting the law. Leven also believes the irs failed to enforce the law. Mike, thanks. More on this with the panel. Now, what critics are already calling a very unwelcome blast from the past. President obama wants to reduce fees for first time home buyers in order to boost tepid home sales. Its the kind of thing many economists and homeowners blame for devastating. In a desperate attempt to boost the housing market, the Jobs Associated with it the economy has a whole, Obama Administration is working loosening standards for mortgages. Lack of available credit is one Factor Holding back the house issing recovery and preventing the economy from operating at its full potential. Since the administrations policy have failed to bring the economy back, housing is one of the few areas being looked at for growth. The public is the ultimate underwriter of their decision and thats why its so important after the first bailout that we had that was so tragic to our economy that we dont repeat the same mistakes. Which is why the head of the federal Housing Financing administration had tightened policies for backing home mortgages and after no document loans where brother borrows didnt have to verify their income, it was the implosion of mortgagebacked investments by banks that threatened the entire financial system. And cost taxpayers hundreds of billions of dollars and the administration is going the opposite direct. One reason is to help an economy thats struggling. A recovery seems to be in progress really has flattened out. The administration is also responding to pressure from part of its base to win political points. This is essentially a thought to the lower Income Housing groups, Affordable Housing groups, many of their couldnt at this time swents and say looking were doing everything we can to help poor people get into houses. Former officials look back at the last round and fear the administration is flirting with danger. We dont want to repeat the same mistakes that got us in such economic trouble in 2007 and 2008 and the way to do that is to make sure only qualified buyers are only eligible for loans. Lending to people who may or may not be able to pay it back is playing with financial fire and expecting the taxpayers to pick up the pieces. That cannot end well warns one observer. I asked former treasury secretary Timothy Geithner about the proposed new mortgage rules earlier today, just part of a wide ranging interview on some of the things that he wrote in his new book stress test. First again the administrations potential moves to make more credit available. Its going to be a difficult balance for them to strike because on the one hand you want to make sure you reform whats still a very broken Housing Finance system and the other part of this esituation is to make sure that the economy is getting stronger. But you understand the concerns. Yeah, i think if people are worried about are we going to recreate or preserve the same set of systems that helped contribute to the crisis, thats a very valid concern, we shouldnt do that and that works with us. This is not rocket science, bret. It is complicated. Its complicated. Its not rocket science. There has been a lot of reaction to your book. I would like to ask you some specific things and have you respond to them. First of all, it seems like you are in dispute with neil parovky in this book. He criticizes you for statements and comments you made in the New York Times article about the book that you suggest you thought trying to end, too big to fail was misguided policy. Where is too big too fail in the big picture . Its a very important question and people should always be concerned about this risk that these firms still think they are too big to fail or that the government in the future is going to come protect people from their mistakes. We were much closer to creating a system where we can be indifferent to the mistakes individual firms make. You cant say youve definitively solved that problem, but we can say youve made it much much better and keep at it. But misguided policy is how you described too big to fail . We made sure that if a taxpayer ever again has to put money at stake to protect the average person from financial panic, we did that. Because we acted very forcefully, the taxpayer is going to earn a very substantial profit on the protection we provided. Hes pretty pointed about his criticism about this book. The largest banks that help bring us into crisis in 2008 are 25, 30 ps, 35 pigger going into the crisis. We had a real opportunity in the crisis to fix that system. To break up the banks. To have accountability for those executives who are responsible for driving the entire Global Economy into a ditch and Tim Geithners reputation, legacy, i believe will be the guy who defended them. I think if you look at our system relative to any other major economy around the world, its a much less concentrated system. Banks are a much smaller share of the economy and we have a much tougher set of reforms so were much better positioned against this risk. The reforms arent perfect. But they are substantially better than the system that we had that prevailed in the decades before the crisis. Another reaction to the book, glenn hubbard. He says you just made up a conversation that you said happened at a dinner in new york. You quote him as saying well, of course, we have to raise taxes. We just cant say that now. Do you stand by that account . Absolutely. My memory is Crystal Clear on that and i had a bunch of people with me and i told them about it right afterwards. You are not surprised that he put out a statement saying in the middle of a highly contested campaign what incentive would i have had to make such a statement to the Opposing Side having helped develop and defend governor ram anys tax and budget plans. He was saying to me in private what he had written in public before. Another thing that raised some eyebrows here in washington was your description of a prep session that you had with dan pfeiffer, the White House Communications staff, before sunday shows, and you say dan pfeiffer wanted you to say that Social Security did not contribute to the deficit, and you werent comfortable with that. So was the white house trying to get you to mislead the American People . Let me say clearly, i was never ever in the position where anyone in the white house asked me to do and of course i would have never done that. Dan pfeiffer never asked me to do that. What he was doing was to point out that we didnt want to look like our proposals to help solve the long term fiscal problem were proposals that were going to appear to some cutting Social Security benefits to cover the shortfalls of the defs sits in other parts of the government. I guess it reads a little differently the way you write it, because you write quote i remember during one roosevelt room prep session before i appeared on sunday shows, i objected when dan pfeiffer wanted me to say Social Security didnt contribute to the deficit. It wasnt the main driver of our future deficits, but it did contribute. Pfeiffer said the line was a dog whistle to the left, a phrase i had never heard before. He had to explain that it was a phrase that was code to the Democratic Base signaling we intended to protect Social Security. I mean it won be a dog whistle if he was asking you to say its just a main its not a main driver . We didnt want these reforms we thault were very good to the country to be vulnerable to either side. That we were going to try to solve the deficit problem. It does contribute. To the long term fiscal problem, as it obvious its just a math thing. What about the role of the Federal Reserve during the financial crisis and throughout this period . Its hard to overstate how significant the fed has been pumping money with quantitative easing and what that has done to the economy. Are there any examples in the financial history of the world where quantitative easing or printing money has not led to inflation . Well, you know, were going through unferreted territory. Inflation comes eventually not necessarily. It just depends how thats something they can completely control. Inflation. They can completely protect american thats a perfectly preventable problem. But heres the concern. If Interest Rates go up just a little bit, even a point, you are suddenly paying more in interest on the National Debate debt than you are paying for the pentagon budget. Would you look at that as unsustainable . I dont think so. If you look at the projections show a stable fiscal prediction at that time. They are expecting Interest Rates to get back to normal. The long run is still unsustainedable thats going to require work over the years. You are happy not to be here in washington . Well, i had a great rewarding time in public life, but i couldnt do it forever. I couldnt do it forever. Mr. Secretary, i appreciate your time. Nice to see you, bret. Ton, well post the extend the version of that interview on our show page, fox news. Com special report. On the market today, the dow lost 101. 5. Sawp fell 9, the nasdaq dropped it the and a half. Up next the controversy over how veterans are treated may administration. Ther scandal for first whats some of our fox affiliates across the country are covering tonight. Fox 5 in san diego with firefighters battling an out of control brush fire in carlsbad. These are live pictures you are looking at right here. The blaze is spreading fast, west. Fanned by heavy winds. Homes and businesses are being evacuated. Fox 11 in los angeles a family cat comes to the rescue of a boy mauled by a dog. This is a live look at new york, from our affiliate at fox 5. Top story there is president obama asking for new highway funds. The president was on the at the point pan zee bridge. Thats tonights live look outside the beltway from special report. Well be right back. To show how many years that amount might last. I was trying to, like, pull it a little further. [ woman ] got me to 70 years old. Im going have to rethink this thing. 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Who really know how to live. female scientists yells hey elder couple laugh okinawa life an Obama Administration that already has its handsful with investigations into the irs and benghazi is now confronted with a merging outraining from both sides of the aisle over the way the country treats its veterans. Ed henry with the latest shoe to fall. Reporter new pressure on president obama as the Veterans Affairs scandal spread to his home state of illinois. Cbs news reported there were multiple secret waiting lists. The administration is now reacting to what is a burgeoning scandal, literally every day theres a new allegation from some va facility anywhere in the country. The scandal first exploded when it was revealed that 40 veterans allegedly died waiting for care at a facility in john mccains home state of arizona. The investigation has expanded to wyoming and missouri, texas and north carolina, bringing the total to aat least six states. Leaving the chairman to demand the president appoint a committee to investigate. Were not going to have an office of Inspector General to have the capability to do what needs to be done because it appears to be systemic and much more widespread than what we originally thought. Spokesman jay carney quickly rejected the idea of an outside commission. He says he got quote disturbing silence from the white house and one excuse after another from the va. So whats been done . I can cite you whats been done, including the increases in spending for va services that this president has insisted on. As the va secretary prepares for a grilling in front of congress on thursday. I think if you take a look at some of the things positive thats happening in the va and theres a lot to talk about from a positive standpoint, i think that they have done a pretty remarkable job. A new fox poll out tonight shows the president s approval is actually on the the rise. 44 approve of his job performance, better than its been. Hes still under water. It could be a long hot summer. Still ahead, more than a dozen years after 9 11, the museum is set to open tomorrow. Well show you whats inside. First, reports of the tea partys demise may have been greatly exaggerated. Dog whats this . Whats this . Mattress discounters Memorial Day Sale ending . Mattress discounters but mattress discounters has the Largest Selection of memory Foam Mattresses under one roof. Comforpedic, icomfort, optimum, and wow, four years interestfree financing on the entire tempurpedic cloud collection, even a queen size sealy gel memory Foam Mattress for just 497. The Memorial Day Sale is ending soon. Mattress discounters former president bill clinton is chiming in over the comments made by karl rove, suggesting that Hillary Clinton health should be part of the discussion. This led to this headline. Karl rove did not say brain damage. Heres what former president clinton had to say today. She worked out every week. She is strong. Shes doing great. As far as i can tell, shes in better shape than i am. She certainly seems to have more stamina now. She had staged what was terrible a concussion that required six months of very serious work to get over. A spokesman for Hillary Clinton says she is 100 . What was shaping up as a difficult spring for the tea party, looks a little less so tonight. The Grassroots Movement picked up a key victory in nebraska. Midland University Ben fass got more votes than his opponents combined. Substantial credit for the win. It was an unprecedented amount of it. What really matters is quality candidates, constitutional conservatives they say. He was able to draw support from all actions on the right. In the governors race, pete rickets was easy. Nebraska leans right so both are considered shoeins for the fall. What about West Virginia. West virginia made history last night. The state nominated Shelly Capito and natalie tenant. So West Virginia is going to have a female senator. This is one of the six that the republicans hope to pick up to make majority. So we should have a busy couple of weeks. And there was a race for her house seat, and that was won by a tea party supported out of state candidate, alex mooney. He is actually a former maryland state senator and chairman of the m