After 4.7 upgrade the mailing templates lost html formatting in edit mode

I tested in dmaster under drupal, but find in my own WordPress installation.
Create new mailing, and select any html template, the css and html formatting does not show up in editor or in html preview and missing from sent mails.

Same happens when you go to the Mailing templates under Administer>CiviMail>Templates
and select sample civi newletter templates.