Will Phone Companies Welcome NSA Reform?

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Jan. 17 (Bloomberg) -- Peter Cook reports on President Obama's reform plans for the NSA. he speaks on Bloomberg Television's "In The Loop." (Source: Bloomberg)

30 minutes to the opening bell, this is "in the loop" with betty liu.

The countdown begins right now.

Collects well -- welcome back.

You are "in the loop." equity stocks rose to a six-year high.

Housing starts fell 9.8% last month, dropping to less than forecast.

That is capping the best year so far in the housing industry since 2007. we will be talking about the business of football.

-- will be "in the loop" later this hour.

President barack obama will propose changes to balancing the program this evening.

He will call -- peter cook has more on that part of the story.

Why won't the phone companies welcome this change?

It is an interesting situation.

The bottom line is it leaves open the idea that phone companies could be responsible for storing this data.

That is their problem.

According to officials, the president will accept the recommendations of his surveillance review panel and call for the nsa to no longer store the data.

These are the phone call center here in the u.s. he is not saying this program should go away entirely.

He'll ask them to come up with an alternative.

He says ask to the data should only come to -- with a judicial finding.

That is a higher bar than today.

The phone companies want to make sure the government does not force them to hold the data.

Not only would it be a technical and logistical hurdle, they do not want the responsibility.

The former at&t ceo understands why.

There are too many things that can happen.

You are protecting information for other people.

It seems like it giant liability with no upside.

If the government wanted and needed, it needs to make the proper decisions about how to do that and not leave it in the private sector.

Doorman -- dorman was at at&t said he knows where this fight comes from.

It would potentially be funded by the government in the same way.

It may not be much of a change.

It could be the alternate or imperfect solution here.

Was about internet companies?

What do they want?

They will be listening to the president.

They have been praised in the last few months.

They want the president to make clear that the surveillance practices are being turned back.

They want to turn their businesses.

They want to make sure they have not freed their customer information with uncle sam.

Foreign competitors are saying you cannot trust american companies to store your data.

They want the president to reassure the rest of the world that the u.s. is scaling back its practices.

Second, it want the ability to share more details on when they are forced to turn over information to the government under court order.

They are limited in what they can disclose.

The whole is greater transparency will show it is a rare occurrence that these companies are not always playing ball with the government.

They want the government to commit to not undermining encryption standards.

Thank you.

We will be holding barack obama 's speech on the nsa.

It is at 11:00. here is a quick look at the top company news this morning.

General electric posted a i percent increase in its fourth- quarter profit.

The industrial sales of aircraft engines and appliances helped boost sales.

The company earned $.44 per share.

Morgan stanley says its profits of fell 70% in the 1.1 billion dollars for litigation-related expenses.

-- its first warning in a decade.

First -- fourth-quarter profits will miss estimates due to a mix of lower production, higher

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