we have the fedex story, also crane being raised to equal weight at barclays, and manitowok, the best thing that ever happened to them is being kicked out of s&p 500. the stock is up. another major trend out there, look at the one-week chart performance of chesapeake and natural gas, both of up 20% in the past five sessions. if you look at motorola, they have unrolled what i will say is the best named cell phone product ever, the click. 6% higher today, as they like the partnership with google. there are some grumblings that their choice of a service provider, t-mobile, might hurt them there. then lastly, some creeping weakness, look at the little blip on the white there, of dropping off the retail index,

the worst performer of the groups here today, being led down by advance autoparts, radioshack, dollar tree and best buy with a downgrade. that's it for me. back to you. >> matt, thanks so much. that will do it for us here on "the call." have a great weekend. >> see you on "the cud lo report,". and now "power lunch" is up next. hello to all the guys on the trading floor at bgc. i spence the morning with them trading for a charity on this anniversary of 9/11. what did they want to talk about? michelle caruso-cabrera, but i'm yod to that. have we got a barnburner today. the stocks have been struggling so far this friday, but it could be six days in a row of gains despite positive news from fedex and the american consumers.

we've been ibm and coke leading the dow right now. wynn resorts is pushing the nasdaq higher. we have an interview you cannot miss. charlie gasparino sitting down with morgan stanley's john mac. we'll find out what's behind his departure and what is next for both mac and morgan. plus, as you can imagine, a somber day on wall street and all across america, eight years ago today, the two planes triking the twin powers, the pentagon and the field in shanksville, pennsylvania, a day we will never forget nor should we. you're looking at a memorial service that has become a tradition in new york city down on ground zero, the remembrance ceremony for the fallen heros. to news, we're getting new details on president obama's speech scheduled for monday in new york city on the economy. john harwood has details right

now. >> the president will come on monday. it's so remarkable we have these two anniversaries, just one after the other, the 9/11 attacks, then the financial crisis last year. the president will use the one-year anniversary of the lehman brothers collapse to talk about what he's done to bring the economy, in his view, out of the deep hole it was in he's delivering it from federal hall, the same play where president bush delivered a call for regulation.

those were a little bit too late to save the financial crisis, but now president obama is talking about what to do to prevent it from happening again. >> i was struck by the tim before the oversight panel. it it would appear they're setting us up for the next phase in the government's strategy on the bailout, though they want to start to de-emphasize that, lot in all of this with health care reform has been the financial regulatory structure in congress. when i talked to staff members of the banks committee, they said to look to early 2010 as the time we're going to get senate action, house action and try to get a piece of

legislation to the president's desk, but it's a major priority. of course, the banking chairman, chris dodd, who's recently made the decision to stay at the committee is under a major reelection challenge, so it's quite important for him to have an conversation there. we'll see if they can get it done. >> thank you, john. keep it here on monday. the president on wall street, and monday night, two hours of special coverage as a result. one year later, the week that shook the world. >> do not miss it. we've been working hard getting ready for it. stocking fighting to hang on. is the s&p 500 can scratch out some gain today, it would be the longest six-day winning streak in more than two year. the dow very close, i don't know if it's ironic, but very close to the pre-9/11 close of 9605. scott? >> bill, thanks so much. we've been in a pretty tight

range today, but much of the conversation continues to centering around the dollar. almost every single day, look at that. the divergence is the dollar moving lower and the s&p moving higher. as you look at what commodity stocks are doing, gold is up, another $11 or so. gold stocks not surprising on that. take a look at energy stocks as well, because they were notable as they moved off their highs of the day. that's when we saw the market dip into negative territory, but of course they were going to exceed expectations and also raise the outlike for the second quarter. that gave an early lift to the market.

>> what a difference a day makes. we had a number of chip stocks saying their outlook was better, things moved up in that sector despite as upgrade of intel. we're seeing some chips drag and profit-taking there. some of the other stocks, though, that are defies the down trend today, take a look. baidu, and ciena, and winn, on some reports it may be allowed to do a listing on the hong kong today, the best performer on it is nasdaq 100. >> well, september is usually a big buying season for gold. india is wedding season. keep in mind, though, it's not the fundamental buying of gold jewelry that has spurred this rally of gold prices above the $1,000 mark.

it's largely investment demand. momentum buying from hedge funds and institutions that took gold prices today to 1013 intraday. the highest that we've seen since march of 2008 when we get that $1033 left. it's the euro playing a very big low. that was very, very significant for the rally in gold prices as well. meanwhile, we're looking at oil prices still holding, it seems to be one that we'll stick with for a while. rick santelli to you in chicago. >> it's very fascinating to see all these comparisons being drawn between the dollar interest rates and equities. look at the chart you've seen a lot. that's the one-year chart on the dollar index, but the next three charts, look at it over the last six months. the lowest yie in about four months, then look at the

european ten-year, which is very close to our yield, very similar pattern, also a count back to, yes, four months. other than a little bump there, they're virtually closing in on the same, so why are all the yields going down, but yet the current says being picked on, that's the silver dollar question. if you look at the spring and summer of 87, we had a huge stock market rally going on, the dollar was breaking hard. the only thing that wasn't the same is interest rates were moving up at that time. bill, back to you. >> thank you roche. >> as rick was talking, the dollar is at a new low. what's all this saying about the markets? also joining us is chief investment officer for private banks at credit suisse. good to see you guys. david, does this worry you?

>> this worries me we have the beginnings of a dollar crisis. ear seeing signs around the edges of fleeing from the dollar. you see it in gold, of course. you see it? stocks which have most of their revenues outside of the inns. coca-cola is a good example. you see it in commodities and sentiment shifting against the dollar. it's been building for a while and it's ongoing. the policy options that are in front of the united states don't suggest any near-term thing to change it. >> robert, are you as worried about this? >> we certainly saw the dollar strengthen as people took risk off the table. as people get more comfortable with the markets, with the fact that we're coming out of what

was an extraordinarily difficult period, that risk element is changinging things. of course, the dollar has given back quite a lot of its gains. in terms of going forward. if you look at the interest rate pictures, things are settling in, certainly the u.s. economy has found its footing and is moving in the right direction. at some point the next move is rates come up on a relative basis. >> but nobody is even -- where could you find anybody anticipating higher rates in this market? >> i'm not talking about the next month or -- >> i understand. >> the markets are not discounting that, not implying that at this stage of the game. i think we have to get through third quarter earnings, which ought to affirm what we saw if we get to that and also good for

stocks, david. with your view of the dollar, what does it mean to stock investors? >> you won't get higher rates in a hurry. stock investors have to be thinking worldwide, not u.s. cent rick. they have to look around the globe, go to the beneficiaries of a weaker dollar. >> all right. don't move, david, you're sticking with us for the full half hour. robert, good to see you. >> hope you saw the town hall meeting with tim geithner last night in washington, as he defended the efforts of the administration to save the economy from going into a depression. our steve liesman was one of the moderators. he'll join us live. plus a cnbc exclusive with the high fashion designer. find out why they're hiring lindsay lohan as an artistic adviser. plus get ready for the "fast money" halftime report. morgan stanley's jack mack

sits down with us for an exclusive. 

glee up 6.75%. during a cnbc town hall last night, treasury secretary tim

geithner defended the government's efforts to avoid a depression. our steve liesman has more details. >> thanks, michelle. me and 200 other folks tried to moderate some answers on the bailouts and banking, everything that's going on. there were three basic parts. one he defended what the government had done. second he he subjected what they're doing is working but needs to remain in place. third, he said the government will be getting out of this extreme involvement as soon as possible. how much pressure are you to dial back? >> no one will be more eager than i am. you're just not going to care about that more than me. we do not want to be in any institutions a day longer than necessary. and look what we've done. we already have $80 billion of

capital coming back into the treasury. >> now, bill, on your behalf, we talked about this issue of the new normal and what it is. here's what he said needs to be done to get back to the new normal. >> can't wait. >> we need to have people worry less about what they're going to make and more about what they're doing. we want to see a new ethic of responsibility across the business community. i think you need people to think hard about what happened, what we went through, and i think banking should be asking themselves what do they owe the country and what can they do to help restore confidence, not just here, but around the world that we're going to be careful custodians of the economic health of the country. >> now, on the issue of taxes, he was pretty noncommittal, not ready to say, basically said it wasn't time to make those

decisions, but he did say, we will as a nation have to bring or commitments and our resources closer into balance. so i think there are many who would interpret that in different ways, some see it as taxes going up, some see it we have to bring spending down and taxes up. michelle, bill? >> i would go with the lowering spending. >> you're kidding me, michelle. >> are there metrics? it's clear, as he said, that they are anxious. he for one is anxious to start the pullback of some kind. are there metrics that you can identify or he might have identified that will tell him when it's time? >> he talk about spreads coming in and the number of foreclosures, and the unemployment rate, bill. and diana olick, our foreclosures phenom, the 10% unemployment rate means more foreclosures down the road, more stress on the banking system.

i think he would say this is not the time to withdraw a lot of the bailout programs in play. the fed is also dialing back some of its programs. >> steve, any discussion about global coordination in extraction or to at the next phase? it took global coordinate in november and december to break the liquidity crisis. did he raise this? what do you know about g-20? what's coming out of -- >> we didn't have that with geithner. what i can tell you, is i can tell you to tune in on monday, where i did an exclusive sit-down with jean-claude trichet, about what went wrong and what needs to be down now, and a lot of talk about global coordinate. global coordinate is the new

normal, and tremendous shay also brought up this constant alertness is the new normal. >> hope the eye gets better, and as they say, you should see the other guy. >> i've got word to do, you know, what can i say? next, a media analyst not jumping up and down about ellen degeneres on "american idol." all of his reasons for the downgrade. and on the next hour we have an exclusive interview with john mack, and what's next for him and the firm he guided through the financial crisis.

shares of west higher by another 3% today, two days of gains for "the washington post" after they declared a quarterly dividend, a gain of more than $12.

cowan and company this morning downgraded a number of media stocks, saying. joining us first on cnbc is doug kroitz. 2011? i would think we were further along in this down cycle, but you don't think so, i guess? >> i think we may have reached a bottom. it's clear things have stabilized, but our historical work suggests unless you have a recovery by the consumer you won't get a recovery in advertising. the precious on the consumers are still immense. >> one step beyond that, as long as job losses continue, the consumer continues to be weak, is that the kind of freight train we're talking about here? >> yeah. it's not just job losses, but if you look at the consumer credit numb%. we had and that number is

actually accelerating. there's been a lot of attention paid to sect derivatives, that is getting worse, with more people being out of work for longer, it doesn't bode well for consumer spending. >> so you downgraded a big chunk of the sector, right? news corps for example. >> yes, viacom? >> yeah, we downgraded news corp and cbs to underperforming because they are the most leveraged to tiesing, and currently most discounting a very aggressive recovery. viacom we downgraded to neutral, because we think that likely none of the stocks are likely to outperform. >> not even with ellen degeneres on -- >> i think that will be entertaining, but paula abdul was entertaining in a different way, so i think it's a sideways

call. >> disney is not as beholden to advertising, i think as others you mentioned. >> disney also has a lot of exposure to the parks segment. while there they've managed to contain some of the damage by aggressively discounting pricing to the parks, you know, their margins are still under pressure. until the consumer rally recovers, it's hard to see them driving a lot of earnings growth. >> doug, the relationship between consumption, consumer intentions and advertising is so strong, when you look around the world, doze that holding up in countries that are recovering? can you bring any international connections to your outlook? >> the companies that we cover have -- including newspapers in the uk and australia and some asian exposure.

you know, this is is global recession, the areas which seem to be outperforming the most, line china, i suppose chinese advertising companies mike doing okay, but the companies i'm talking about don't have a lot of exposure there, so it's not really relevant to our call. >> and it's stuff for americans to buy chinese advertising companies at the moment. >> got it. great to have you here, david. >> we're going to call you mr. global from now on. >> i'm going to spend dollars on lunch before the price goes up. >> very good. >> good to see you. coming up, president obama is set to give a major speech on the financial crisis on monday. did he go too far bailing out the banks? the power grid is next. >> plus an exclusive with the president of what? >> ungaro. >> why did i call it ungaro. >> i'm saying it's spanish, but it's a french company, so maybe

i'm wrong. >> and why they're betting on paparazzi diva lindsay lohan. she's no diva, just the queen of "fast money," melissa. >> that was the right thing to say, because you could have said something else, which would have plead some very angry. we'll give you the trade on the financials and special goldman sachs, yet another analyst getting more bullish on this name as it approaches the 52-week high. is it time to get in? very busy over one casino name. up ahead on the halftime report.

welcome back to "power lunch." in the headlines, a lot of analyst calls out today. for example, clorox was downgraded from neutral to buy by goldman sachs. they did upgrade schlumberger from to buy from neutral.

president obama will visit wall street on monday to mark the one-year anniversary of the collapse every lehman brothers. we saw tim geithner defend the moves last nights on cnbc. what do we think? do we face more regulation and higher taxes? as a result of what's going on? firing off, former clinton white house staffer david goodfriend, and ron christie. you have 20 seconds to make your case, ron. let's start with you did we overspend? >> i think we did. i think they spent too much, and america is in a perilous financial situation. government spending is not the sluice to try to get out of a recession. we need to cut back, reduce of size of the deficit. >> david, you heard ron, he says there was overspending and that

it was a bipartisan mistake. >> here's what's going on on my planet. right now we've seen the stock market have its best six months since 1938. right now the american taxpayer has made $4 billion on the bailout. that's right, made it on the equity that they got as a result of the bailout. right now we've come away from what could have been a great depression and we're see the end of this recession. it works. >> ron, do those stats refute your case? >> no, they don't. i would like to see frankly the government get out of the business of trying to restrict the banks. the government doesn't want to do that, because of course the government wants to regulate. we cannot afford the unsustainable growth of the government. >> that's a different point, though, ron. what about david's point, the market's up, we've seen credit markets improve. >> in the short term. >> things are better.

>> i think this is a short-term burst of economic activity. if you look at the stimulus, the $787 billion, the vast majority will come out next year, i don't think you can look at government intervention to say that's added to the turnaround. >> david, what about we are the path to unsustainable levels of spending? >> the problem is you're taking a snapshot during a recession, we're in what's called a cyclical deficit mode. when i left the white house, when my boss president clinton left the white house, we were at a surplus. if we'ral full employment and you still are running huge deficits, but right now the instruments we've had used to keep you away from a depression are working. that means as revenues come back up in the recovery and as we see a more rational approach to spending, not like the bush reckless tax cuts that were just fiscally are responsible, but the thing we use to keep the economy going, we'll see the

budget come back in order. >> should we have just done nothing? >> no, we could have made sure to prop up individuals, people who needed unemployment extensions, taking a case-by-case basis at some of the industries, but i don't think the widespread billions of dollars that we intent to prop up the financial services market was justified. president obama has added trillions to the deficit in just a few short months. >> guys, good discussion. david, ron, good to see you. keep it here on cnbc, because we have a very big monday, special live coverage live on wall street. and then primetime, a live two-hour must-see show. one year later, the week shah thook wall street, a look back at those dark, dark days. then a look ahead. one of the special guests, the oracle of omaha, warren

buffett will be joining us from the women's conference, and he told the world to buy america when so many were running away. >> it was a good call, right? >> his view of that monday as well. you can't miss monday right here on cnbc. it's causing a lot of controversy in the fashion world. actress and rehab regular lindsay lohan joining the team of ungaro, i will pronounce it. we'll talk to the president of the fashion house about what's behind that move. and cnbc exclusive with john mack. we'll find out what's next for him and the firm. here's what's going on with the markets. they were lower across the board, we were trying to make it six in a row, but so far no luck. we'll be back in two minutes.

no rules especially fashion -- >> you hear that, bill? she says ungaro. here to talk about the hiring of america's tabloid darling to help shake up the aging label is the president of ungaro. welcome to "power lunch." why would you hire lindsay lohan, who seems to get in trouble every other day? ifrlgts i think she has an eye for fashion. i think the business model of

fashion today needs to address reaching out to the consumer directly. she's inspired me, because i've been seeing the fashion editors of major fashion magazines. >> what's she going to do for her? >> does she rep her generation fashionwise? >> and beyond. we're living in an ageless world today, and through her and her contribution to our fashion product -- >> how would you describe her fashion style? >> i think she's very modern. she dresses more for attitude rather than occasional dressing. today it's all about tight, and she's a walking, living advertising for the brand. >> that's true. >> she's always getting her picture taken. >> access hollywood every nigh, et cetera, et cetera.

we've seen some big names go bust, have to file for bankruptcy. we're on the eve of fashion week here in new york. they are clearly desperate, this big party across new york city last night trying to get people to spend money. are you being hit as hard as everyone else? >> we are. i think that's why the fashion model has to change. designer led brands alone won't work. i think we've got to address the question of who will replace the grand masters lieu langer feld, ralph lauren. armani, people like that. there's a lot of talent out there, but fashion is about change, it's about controversy, and i think we have to introduce change and controversy in a modern world where viral marketing is playing a major, major role. >> when will we start to see the effect of her as a creative consultant? when will we start to see the fruits of that? >> our first fashion show with

her involvement is on the 4th of october, in about two weeks' time. >> she's are working with you on designs? >> she's been working on designs and inspiration and image. >> so controversy is the name of the game here, right? this is what you're looking for? you like the fact that our first question is she's always in trouble, her father is always in trouble? that's good for you? >> the bad girl image plays? >> i don't know of any celebrity from marilyn monroe, marlena dietrich, who reached the state of celebrity without having controversies. i'm interested in her fashion take and in the way she looks at it and the way she's enhanced by fashion worldwide. >> that was my question. does she play in the rest of the world in the way she does in the united states? >> very much so, and even more. if you look at the publications and the tab lloyds, that is testimony to the fact that we are right in choosing her.

>> well, great to have you on, interesting stuff. good luck with fashion week. >> thank you very much. >> i bumped into her in a lobby once in a hotel. she's gorgeous. miss little tiny. still ahead, john mack is steps down. he's going to talk about what the future holds for him and the firm in a cnbc exclusive here on "power lunch." and an bur view, eric leacher is here today, he founded lehman's m & a business, managed morgan stanley's m & a business. another must-see on "power lunch." in the meantime the "fast money" halftime report is up next. we'll see you at the top of the hour.

welcome to the "fast money" halftime report. getting to the heart of the action. markets at the lows unable to make it six in a row so far, but we have some bright spots. transports near the high for the year and what is the trade on morgan now that mack is out? our "fast money" crew here. the pit boss pete najarian. scott nations and brian kelly of conundrum research. let's talk about the markets as a whole. mr. najarian? we got the positive news out of

the fedex today, also an upgrade of the name out of the bank of america and transports are sitting close to a 52-week high, all good news according to dow cirrus. >> and a lot of this is already starting to get bld in? we've seen this market continue to -- we're getting a pullback now, probably more related to the fact that oil is absolutely tipping over, pushing toward that 69 level. so as owl is pushed down, that. >> good point. we're showing that at session lows. you've been watching crude as well. a really into the treasury market. how do you interpret all this? >> i had this whole elegant explanation about how bond yields and oil prices weren't reflecting the same

fundamentals, but what i'm looking at is you can't have inflationary expectations and low bond yields. bond yields should be higher, so the bond market is telling us something different. as opposed to the stock market, which is saying look for robust growth. >> we are watching the vix turn up. it is close to a 52-week low at this point. >> let's remember that option trader start to suck time out of their models, so i would not be too surprised if we get there. if we get convincingly below that 2309, that confirms the rally. if we barely get below it, that's not as impressive. we'll have to see what happens. if the stock market ends up

taking a big step back, that's actually not the worst thing in the world, historically, the vix is pretty low right now. >> brian, are you sentencing any change in the options fix? as we are seeing the markets turn lower, require sensing a change in sentiment? >> a bit. we saw some put selling in the investment. x actually just recently, so that's tell you maybe the investment. x maybe does hold this level. and buy protection. we've had a nice move up to 1050 or so. so this is a time where vix has come out, it's a good time to buy some protection, and i think you'll see the price of premium start to trade a bit higher. >> melissa, to that point, when you look at the volatility range recently, this is that low range. we've been talking about this, 23 to 28. we get a bit above, a bit below,

but this is the low end, this is where you would want to own some premium for sure. >> this is the first on the halftime report, three options traders, and of course it's friday when you watch options action at 8:30. we are just moments away from the exclusive interview with cnbc with john mack. james gorman, the copresident will currently take over the reins. up by 1.3% right now. pete najarian, how do you interpret this? the streets, neutral to moderately positive on this. >> right. i think that the way you have to interpret it is if you look back to january, there were reports that they were already starting to get this into position. this is something that's been expected. everybody knew there would be some time frame, probably in the fall, because the contract comes up next year. this is just the progression. i think you already knew, going in front of, the smith barney

acquisition, all of this is setting up what morgan stanley is becoming. not a complete lack of risk-taking, but they've got the right guy in charge now. i believe james gorman fits the bill federal reservely. managemt ewe yit over ther unit over there. we have citi saying it will enjoy a $1 billion gain in its principal investment business which would be a 9% increase in an $11 billion business. at this point we're a few dollars away from the 52-week high on this stock. what's your read here? too crowded? >> brian kelly you're talking to? >> brian kelly. >> sorry about that. kelly, go ahead. >> listen, goldman sachs is best in breed because they keep executing. i'm not terribly excited about buying a stock at these high prices. i'd rather buy it a little

lower, but they just keep quarter after quarter doing what they do best, and taking on that risk and doing well. >> and as we watch the stock tick higher, not necessarily today, but tick higher in general, brian, how are options prices looking? >> well, you know, it still looks like the financials are a place you have to own in your portfolio. as long as the fed keeps the rates down at a quarter percent or whatever, it is something you need to add to your portfolio. one area i have been looking at, you see options activity going on with some of the reits and starting to have a bottoming process. i would rather get in some of the financial space in some of those areas. sl green, those are some of the names you want to own. i would rather be a landlord in this type of environment rather than an owner. >> let's talk about the dollar. certainly that is a big mover, hitting a 2009 low against major currencies. let's bring in the big sir who is known as rick santelli on cnbc. he is on the fast line. rick santelli, when you look at the dollar moving lower and

lower and lower, you got to think maybe the carry trade is back on here. >> well, you know, that all fits and it's a pocket, but i think the dollar is telling you much more than that. i don't mean to bring up a bad year, but if you look at the behavior of the dollar in 1986 and part of '87 going into the crash, what you'll notice is that it moved from 120 down to 85 at the time stocks were going up, and even in an interest rate environment back then, that brought the ten-year up to 10% right up to the crash from 7% to 10%. what i walk away with think something that there is a question mark about the outlook of the economy, maybe globally, domestically for sure, that the dollar is giving us a message. i think interest rates are different this time because of the crisis. >> that seems to conflict with what the data points are that we're getting out of the stock market. we're reading fed ex as being positive. >> absolutely valid points. we'll never know until an event

occurs, but there does seem to be an ongoing debate among many on wall street the last three months about why stocks are going up. i'm not recommending shorting them, i'm just thinking that just because they're sending a message doesn't mean it's going to be accurate and i think that the dollar and the treasuries and we're talking interest rates around the world are all moving down. this isn't unique to the u.s. i think they're sending a completely different message. >> voice of caution out from chicago. rick, always a pleasure. time for fast and furious. we kick it off with best buy reporting earnings on tuesday. dubai. >> the stock has struggled each time it's gotten above $40 a share. i think you don't have to chase this stock. you will get a better opportunity. >> garr minumin got upgrated. >> it's a good opportunity to sell some cause against your position. i like the stock but i don't absolutely love it. >> las vegas sands getting an upgrade. the options kind of business on this name. >> that's absolutely right.

we saw a bunch of buy eers both las vegas sands and wynn have great exposure so they're headed higher. >> intel got an upgrade but they are flat. >> i would buy it. if you like tech, you have to love intel. emerging market growth is coming into play. >> going to take a break. on tonightap, charlie gasparinon exclusive interview with john mack. maxed out at morgan, but was this the right move and who is getting the nice next? and the bears have been calling it for months. so when is that correction coming? we check the market forecast. plus, it usually flies under the radar, but don't make it angry. is the biopharma trade getting

ready to explode? on america's post market show tonight.

welcome back to the "fast money" halftime report. time for your "power lunch" trade to go. we're all watching morgan stanley which is approaching session highs right now as well as goldman sachs. pete, you're watching jpm. >> i am. we talk about best in breed. every night it seems we talk about goldman sachs. jpmorgan is also best in breed. i'm looking at the master trust data as well as the barkley's conference as two catalysts i think will be bullish. i love what jamie dimon has been able to do throughout the entire crisis. i like the direction they're taking. i think the delinquencies will continue to be on the downside. i think those are bullish reasons to own jpm and the volatile is the lowest level in quite some time. you can absolutely get those

options cheap to protect yourself. >> interesting trade. pete, thanks so much. see you on the desk tonight that. does it for us at the halftime report on tonight's "fast money" former cfo and morgan stanley treasurer brad hinz will join us to tell us what mass departure could mean for the company. up next, you have an exclusive. >> a big one. the next 60 minutes putting the power in "power lunch." two cnbc exclusives. morgan stanley's john mack and the man who founded lehman brothers m & a business way back when and then he also ran morgan stanle stanley's for m & a business for years. he's sitting right to my left. this is cnbc.com news now. the white house says president obama will make the case for financial regulatory reform when he comes to wall street to deliver a major speech monday. an appeals court has thrown out a $358 million patent

verdict against microsoft and ordered a new trial to determine damages. general motors reverses pay cuts for salaried wrs because it was losing employees to other automakers. that's cnbc.com news now. first in business worldwide. i'm julia boorstin. if you watch no other hour of cnbc today, watch this one. we've got a barn burner for you. it is the second hour of "power lunch" for friday. welcome back. i'm bill griffeth. energy stocks have been leading markets lower so far today. oil is down about 3%. back below $70 a barrel. the dow actually very close, interestingly enough, right now to where it was back on 9/11 in 2001, around 9605 is where it closed back then, but today ibm among the dow leaders today. >> i'm michelle caruso-cabrera, john mack out at morgan stanley. our charlie gasparino will have an exclusive interview about

what's behind the move and what's ahead for mack. you will not want to miss that big interview. >> we're joined by our power player, very pleased to welcome eric leech of the legender takeover banker who has advised at his own shop and advised on billions more at both morgan stanley and lehman, a division that you founded back in the day. eric, good to see you. >> nice to be here. >> what would you ask john mack when he comes up? >> i'd ask him if he wanted to play golf. >> i knew that was coming. lunch or golf. you're both old friends here. are you surprised he's leaving now? he has said he wanted to leave when he was 65. >> no, he's almost 65. he's doing what he says, and that's what he does. he does what he says and he means what he says, and so that's what he's doing. >> when we have john mack on, we're going to show him these numbers. i'm sure he's aware of them. since his return goldman sachs up 71%.

more dan stgan stanley is down . is that a reflection of his value to morgan stanley? >> not at all. i'm a john mack fan. you have to take the long view. he achieved a lot, did a lot, and was a tremendous leader at morgan stanley, particularly a year ago right now when things were in trouble. i don't think this is a reflection. i think it's short term. >> mr. mack will be with us next segment. let me ask you about the state of mergers these days. we were commenting the other day when there was talk about cadbury, maybe a sale there coming. we stepped back and said, you know, look at us, we're talking about deals again. deals are happening again on wall street, aren't they? >> enjoy it because it may be pretty short-lived. >> why? >> because there's been a real structural change in the m & a business that's occurred in the last year. first of all, private equity has ground to a halt because the credit is not available, and the private equity segment of the m & a market two years ago, let's say, was somewhere between 35%

and 45%. that's gone down to 0%. secondly, credit is still very, very tight. and, third, we still have a complex economic situation. >> you don't see any of that getting better anytime soon? >> i see it getting better, but i see it getting better slowly. i don't see a catalyst in the market that's going to make m & a boom with us. >> right now the end of an era on wall street. john mack is stepping down as ceo at morgan stanley. he's with us on "power lunch." charlie gasparino is standing at his side. take it away. >> i'm cognizant i'm sitting in striking distance, he's in striking distance of me as i ask these questions. you know, they made an interesting point. the stock is going up as you're leaving. explain that. >> i can't. maybe i should have left earlier. >> why now? i have heard there's been some tension with the board. you take issue with that. >> absolutely. there's no tension with the board. if anything, when i told the

lead director that at 65 i wanted to step down over a year and a half ago, he used 2010 as i'm getting ready to turn 66, and i interrupted and said, no, bob, it's in '09. so we've talked about this for a long time, and why now? once you start that process and the board did their job, they hired a search firm, they looked outside the firm, inside the firm, and when it was clear that james gorman was the right person, there was no reason to wait. we had a board meeting in july in london. talked about it extensively there and said let's go for the summer break and then talk when we get back and we were ready and we did it. >> why is james the right person? is it the business model that you're embracing right now? >> well, the business model is not changing. let's be clear. we've been going back to the dean witter merger, we've been in retail for over ten years. the smith barney acquisition, which i think you're going to refer to, is just an extension of that. now we've gone from number five to number one -- >> let's be clear for the

viewers, that's merging the who broker divisions. you'll have the largest -- >> 19,000, it will be the largest. the institutional business is core and key to morgan stanley. and james said, we had a town hall meeting today, clearly he's recognized that that piece of the business is core to our dna and to our success, and we're not de-emphasizing at all. we're building it up. you saw that article not long ago, the number of people we're hiring into that business. we're continuing to grow and build that business, very important to us. >> you've had an amazing career. 40 years? >> yes, 40 years. still like a holiday. >> especially when dealing with me. >> exactly. it took me 40 years to like you, charlie. >> thank you. we'll leave it at that. one criticism, maybe two criticisms of your recent management is that you leverage up, you embrace the risk model at the wrong time, in 2005 or when you first took over after

purcell left, and then you deleveraged and sort of moved away from risk at a time earlier this year when it clearly paid off to take -- you missed the bond market rally. how do you respond to that? >> two things, number one, the kind of risk that we got caught in was illiquid risk. a lot of it was structured trades, a complicated mortgages, even though our risk management had done the analysis and we thought no way this market would react the way it did. we were wrong, so were many others so. we're still taking risks. this is a risk business. just the other day we did a deal on 3.5 billion shares of barrett gold which we were able to sell. on leverage, everybody is delevered. if you go prior to the meltdown, we were over 30 times leveraged. >> how did you lose money and not make as much as goldman. >> there are different strokes for different folks. you have to compliment lloyd and what he's done, but at the same time we did not put in place the

footprint that we need for flows of business to make sure distribution was focused on clients and getting those lows, and to lloyd's credit, they have had that in place. >> lloyd blankfein. i believe michelle has a question. >> i think this might make you wince. since you took over morgan stanley, blackrock up 150%, goldman sachs up 71%. jpmorgan chase, up 22%. morgan stanley down 45%. you're beaten to the bottom only by bank of america. does that performance reflect your value and what you brought to morgan stanley. >> what a great question, and an easy one. what you need to look at, number one, that's a moment in time. our stock has been under pressure, but you got to go back over a year ago, stock traded $6.70. and like eric said, who is a good friend of mine and, eric, we will play some golf, but i get a lot of strokes from you, you know, if you go back to that

period in time, morgan stanley was under tremendous amount of pressure. there was some speculation we wouldn't stay in business. so you've got to think, all right, you got through that and how important is it to have a firm that survived, that's thriving, market cap close to $40 billion. so i think it's whenever you want to measure it. if you want to wait six months or a year and measure it again, i'm confident that those numbers will change dramatically. so pick your period of time. you know, if you would have picked that period of time in the first quarter of this year, we would have probably been at the top of the list. >> you're going to come back, right? and sit here with me -- >> absolutely. >> how worried are you though that, look, you absolutely brought the firm through this moment of crisis. it survived. you should get credit for that, but how worried are you that your legacy is wrapped up in that question that charlie asked you, which is you levered up at the wrong time, levered down at the wrong time. >> it's not about my legacy.

it's about the firm. this firm survived. as long as it thrives and shareholders do well, employees do well, that's what it's about. it's not about john mack. it's about morgan stanley. >> john, we're on the one-year anniversary of lehman's bankruptcy, i guess it's next week. you were sitting in that room when they were deliberating how to save lehman, maybe the street was going to buy the toxic assets, someone was going to buy the good stuff, barkley's, they both backed out. lehman imploded. did anybody in that room, did hank paulson, ben bernanke, tim geithner, the regulators, the ceos, did you have any idea of the systemic risk that was going to just explode through the system when lehman finally -- when they did capitulate? >> we all had a sense it would be a disaster, but no one thought it would actually shut the markets down, and it really did. >> but, you know, that's fascinating. it's one thing for you wall street ceos, you guys it's kind of the fish swimming in the ocean. i almost don't expect you to expect the system shutting down.

but paulson, bernanke, geithner, they had no clue? >> i don't think they did. things were moving so quickly and so fast that, you know, there's no playbook that's ever been written. you have to deal with it when it happens, and clearly after lehman went down and merrill gets bought by b of a and you had the payment system dry up, i don't think anybody anticipated that would have happened and i think if they had, there may have been a different outcome. >> one thing that weekend -- i disagree with you a little bit. i was speaking with larry fink and i asked larry do you think it's going to happen, do you think they will bail them out? he said if they don't bail them out, it's armageddon. how did larry think it was going to be armageddon, but hank paulson who has been a ceo, tim geithner, who has been in the regulatory apparatus, ben bernanke, an economist who i guess studied the great depression, how did they not know this? don't you think we're letting them off the hook to have

regulators that did not know what might happen in some respect, you know? >> no, charlie, i don't think so. larry is a very smart guy. to his credit and to the regulators a credit they talked to him frequently. i'm sure he had a chance to impart that to them. again, add view and maybe saw it differently. i'm sure it was shared with them. again, these were unusual times, and i think they did a superb job. >> bill, do you have a question? >> i do, mr. mack, bill griffeth here. i'm curious, for generations wall street has been the place to go for younger generations coming out of college to make money. i mean, that's been the aspiration for those people who come to wall street. but the booms and the busts of the last couple of decades have gotten bigger and bigger and they've taken a toll on the u.s. economy to the point now where wall street is tainted and the government is becoming more interventionist in this way. here is a question i have for you. the result of all we've been

through in the last year, will wall street cease to be at least for the foreseeable future such an aspiration do you think for younger generations to come make money? >> again, bill, you have to look back and give it some perspective. clearly, there's been a lot of pressure and i think public opinion about wall street in a way it operated, in a way it pays people, et cetera. but if you go back 15 years ago and you talk about the internet boom, i remember going to the harvard business school or the school at duke, some of these kids were dropping out early and going to silicon valley or starting their own company. a lot of it is these kids are very smart. they want to get on the trend, whatever that trend is, and if it's the internet boom, they're there. if it's wall street, they're here. if it's private equity, they're there. >> but will it cease to be wall street, especially, and let me emphasize this again, the part about more government regulation, which seems to be on its way. >> well, it's going to be a different wall street. it's still going to create a lot of opportunity for these young

men and women. i just address a number of the young summer associates. this is the time you want to come in business because a lot of people who said -- people who have been in business 10 or 20 years have said, i've had it. i've taken equity as part of my comp. i've lost t i'm going to do something different. when people are going the opposite way out the door, this is when you want to come in the door. >> john, you survived, i guess, the sort of battle of the bulge of wall street, right? you survived last year on morgan stanley, almost went under, some firms did go under. this is like one of these questions we have to ask. >> sure. >> has wall street learned no the to take' n enormous risk? one thing everybody had in common was embrace of risk beyond any means imaginable. >> charlie, it's just not as simple as taking too much risk. >> absolutely. >> i mean, if credit was

basically free, you actually got paid to take risk. unfortunately, and chuck got criticized for this a great deal, chuck prince, when the music playing people had to dance. what we did learn and again i think it's very important, there needs to be a limit to leverage. to have firms at 30 and 40 times leverage, and we got to 32 time leverage, clearly that was a mistake. >> they're camping inside morgan stanley and the remaining -- >> absolutely. >> did they come to your office and say you're inching up to 15 to 1. >> they're not doing that but we have an understanding that our risk and our models and our analysis and our risk management systems have to be much more robust and thorough and they do work with us on that. >> so you're saying that the concept of moral hazard was established despite the fact that wall street, except for a couple firms, has been saved. you guys understand what's going on. >> well, without question we do, and we have, i think, a very

good working relationship with regulators and some of the changes i think we need to make. one of the things that i'm somewhat disappointed in, i know there's going to be some changes, we've lost a little steam about getting the regulatory reform. >> michelle has a question, but i want to ask you one quick one. who will replace jim gorman? that's a big question for a lot of wall streeters. 20,000 brokers, this guy has been around for a while. who is going to replace him? >> he's the chairman of the morgan stanley/smith barney venture. charlie johnson runs it, he will continue to run it reporting to james. >> what's next for you? is this retirement? they're talking about raising the retirement age so that way social security kicks in later. you're only 65. >> can you wait for social securi security? >> well, i feel a lot younger than 65. i guess maybe i feel 55. i'm not sure. i'm not going to retire.

i have said to the board, i have said to james, i have said to our employees at morgan stanley, i'm here as chairman. i love clients. i love doing deals. i have talked to four or five ceos this morning. i have talked to steve schwarzman and called henry to talk to them about ways i can work with them. i travel all the time. so i look at being the chairman as helping james when he needs me. dealing with clients and talking with regulators and politicians around the world. >> our time together is coming to an end. >> i'm so sad, charlie. >> before i let you go, this is the most -- i'm saving the most important question for last. why do they call you mack the knife? nothing to do with a knife or -- >> no, i think back in the late '80s we saw that there was going to be a turn down and i let go a lot of people and then mack and knife went together. >> one more.

>> anything you want, charlie. >> did the controversial political consultant, what did he do for you? >> he would tell you he actually manages me. >> is he the guy that made you endorse hillary clinton? please tell us that's the case. then you don't have responsibility. i can still like you. >> once christy and i got to know the senator, we endorsed her. >> i'm a big fan. >> i'm a big fan, too. >> i understand the town hall you held was very emotional. tell us why and what you told them and what they asked you about. >> it was emotional in a sense that it came across as the way we are, very natural. we like each other. we want to work together. i'm not leaving. we're here to help james and help the firm, and it wasn't scripted, and there were wonderful stories told, and it really shows our culture and how we're a partnership. so i think that was the emotion ideal part. it had real impact on the firm.

>> you are grown-ups. >> we are big boys. >> thanks for coming. >> all right, charlie. thank you. >> back to you. >> thank you, eric. >> i'm told to mention somebody's book. >> this is what we should have been showing the whole time. do we have it? >> i thought john mack had one. >> where is my book? he's in the book. >> the title is not a reference to mr. mack. >> i want 2001 the space odyssey every time it comes out. >> mr. mack, so terrific, thank you for joining us. >> eric, we'll see you on the first tee. >> we're going to get more from eric, thoughts about the market, what he thinks about what john mack just said. >> much more to get to with him. don't miss more titans of finance on our special presentation sunday night. one year later, reflections from the titans of wall street. that's coming up right here on cnbc sunday evening at 10:00 p.m. eastern. you're watching cnbc, first in business worldwide.

let's check in with scott wapner. >> thanks so much. this is your weekly guide to investing. with gold and silver prices hitting new highs, wanted to talk about ways to invest in pressure metals. lots of talk about etfs, but i what nt to talk to you about one that invests directly in the bulli bullion. they are not subject to potential limits that the cftc is considering on imposing.

that makes it interesting. the biggest is the gld. i know you hear a lot about it. it's run by state street. it's continued to grow with the rise in gold prices, as you might expect. year-to-date inflows, about $10 billion. you have some other options as well. one is called the iau. it's much smaller etf and it is run by i shares. in terms of silver, mention it as well. doesn't get as much publicity as what's happening in gold, but it's also hit new highs. the slv is an ishares silver trust. i am the judge, court is adjourned. >> thank you so much. judge wapner. when we come back, more from the man who created lehman's m & a business. we'll get back with eric. plus a trip to the nyse waiting in the wings. "power lunch" is back right after this short break.

let's bring back our special guest who has been spending this last half hour with us. veteran investment banker eric leech. you were part of the deal with

nabisco those many years ago and all that. we were having an interesting conversation here. you know, as much as you see the brakes being put on private equity right now, i still see opportunities on wall street right now, don't you? >> i see tremendous opportunities, and as we were talking, bill, the biggest opportunity that i have had in my career is what i'm doing right now where i took my firm and merged it with broad point. it's a full service investment bank, and this week we -- market value exceeded $1 billion for the first time. we have over 300 people. we've got tremendous fixed income business, m & a, and i think as we were saying, after the destructive period comes the creative development. >> even with a regulatory structure that may seek to try and put a cap on growth opportunities on wall street, you're not concerned because let's face it, wall street always finds a new way. >> i'll tell you exactly why. wall street imploded, and what

is left now is a number of big banks. there may be six or seven depending on how you count them. banks who are the main part of the investment banking industry. morgan stanley and goldman sachs are banks. john mack was talking about regulation. he was talking about reducing the amount of leverage that's going to be allowed. that's going to happen. he was talking about 32 times leverage. some of the firms were leveraged 40 to 1. it will be much, much lower. that's where the regulation will be. with our firm and other investment bank that is will create themselves, there won't be that type of regulation. >> tell us about the nature of the assignments you're getting right now when it comes to mergers and acquisitions and what it tells us about the state of the economy. you say there's no private equity out there, ground to halt. doesn't that mean we get more synergistic deals? >> well, what's going on right now are restructuring deals

obviously. there's a tremendous amount of restructuring to be done. there's somewhere between $1 trillion and $2 trillion worth of debt that has to be refinanced. there will be tremendous capital market activity. the banks aren't going to refinance all that debt. there's some big m & a. we have seen this situation with cadbury, but it's kind of few and far between, and that will pick up as the economy picks up. right now most of the m & a that we see are difficult problem deals. so we're in a period that's still recovering from all the chaos that occurred. >> how many bankruptcies are we going to see in the next year? are we past the worst or when you talk about all that debt that needs to be restructured, obviously that's your opportunity, but are the credit markets going to be loose enough? is the economy going to improve enough so their revenues start to rise? >> i think so. but there still will be many more bankruptcies, but -- and a long process to work out of the situation that we're in with the

overleveraging. >> is the fed too loose right now? when do you think they will start to tighten? when do we start to see them nudge the punch bowl away from everybody? >> you know, i hope not for quite a while. i would hope they wouldn't tighten when we have unemployment in the 10% area, and, you know, i think it's great that we -- i think the government did a good job to get us where we are right now. personally, i would have rather let all these firms fail, the aigs and the ones that got overleveraged, but it wasn't feasible. >> that's the thing. >> so i'm personally happy to be where we are right now but it's not great. it doesn't make you feel good. it's going to take a while to work out of that. >> you founded lehman's m and a business. now they're gone. this is a girl question, did you

cry? this is the continuum of your career. >> i have enjoyed everything that i have ever done, and what i did at lehman, what i did at morgan stanley, what i did in my own firm, and now most of all what i'm doing with broad point gleacher has been great. nouf tears. >> but when lehman failed, tell me about that moment. >> i mostly felt sorry for dick fuld because i think he took it on the chin. sgroo d >> did he not deserve taking it on the chin? >> not fully. in the end he wasn't able to work it out. all those firms had these problems. john mack was just on here. he said he was on the brink. it wasn't any different from leman. what was different was somebody decided lehman was going to go and morgan stanley was going to stay. so, yeah, i think he's been overly criticized. that was my thought when lehman went down. >> eric, what a treat to have you with us. come back and see us.

>> thank you very much. >> nice to be with both of you. >> how many strokes do you give john mack? >> a lot. >> i thought so. take care. we'll come back. crude oil has been tumbling, but gold has been rallying. it's back above $1,000 an ounce. stocks struggling to keep this winning streak alive. what's on tap for the next of the trading day and next week? we'll take a trip to the trading floor. >> plus maria bartiromo joins us with a sneak peek at her special. four financial titans tell her how they handled the meltdown. she'll join us after this. uuuuuu

welcome back to "power lunch." here is what's happening at this hour. the winning streak on wall street in jeopardy right now. the dow, the nasdaq, the s&p all in the red by a bit. the dollar also continues to show weakness. gold, on the other hand, has been back above the $1,000 mark today, but it's not all gloom and doom today. shares of fedex has been surging after they say their first

quarter earnings will exceed guidance. sunday night on cnbc at 10:00 p.m. eastern a must-see hour. maria bartiromo is sitting down with four titans on wall street. to get their take on crisis, the healing, and the future. we cannot wait for this hour. >> a lot of feelings today, a lot of remembrance of obviously 2001, september 11th, but also one year ago. one year ago we were really feeling very differently than we are right now, particularly after the most recent rally in stocks. but we remember the sense of urgency, the panic, the uncertainty one year ago. lehman was looking for a white knight. could lehman file for chapter 11 bankruptcy. could citigroup have a major issue? and how would all of this impact the financial system? and the interesting part of it all is it was happening so fast. regulators and executives needed to get news out immediately. certainly that fateful weekend of september 14th they needed to

get news out before the asian markets opened for trading that sunday night. here is what john mack and vikram pandit told me this week. >> the impact to me was really how bad or not how bad, how do you contain this contagion, and is there a way that you could build a buffer that it stops with lehman and clearly it didn't. >> finding a solution to lehman was important for confidence in the financial markets, and we ought to do everything we can to ensure confidence remains because ultimately it's confidence that drives liquidity and capital access for all banks. >> of course, one year later we also look back and we can clearly see who saw the opportunities in all of the wreckage. blackrock's larry fink came out a big winner. jamie dimon come out a winning. barclay's able to secure a solid foothold in the united states. moving from a british bank to a

global operation. regardless, everybody involved was fielding phone calls all weekend to ensure their own survival. >> going into the first part of this year, we just went from bad to worse, worse to worse to worse, and the marketplace was so frightened that people put so much of their free money into cash. they had to store their wealth in something that was earning zero. >> it was stressful. it was emotional. we knew we were playing for big stakes, so on one hand we knew that if lehman went into bankruptcy, there would be huge implications to the market. on the other hand, we wanted to look at whether or not there was a transaction that made sense both for barclay's as well as for the markets. >> and, in fact, there was certainly for barclays. we visited the barclays' trading

show which was the trading show at lehman. now the firm is doing very well after selling its global investor business, the asset management business, to blackrock and now it has this huge foothold in the united states. blackrock, of course, becomes the largest manager of assets with $3 trillion under management. the playing field has certainly changed a lot. fewer players, less risk, less leverage, bigger government. the new normal. sunday night we look ahead to the opportunities in the new year. where is blackrock putting all that money. what is barclays betting on now? not to mention citi's plans. goldman sachs, morgan stanley, and where they see the big opportunity. don't miss "one year later: reflections from the street." it's interesting to get their take. >> and also interestingly, it's sort of counterintuitive but you understand why almost to the ceo, they all even though wall

street doesn't like regulations, they don't like to have anybody outside telling them how to do their business, i think they all recognize the need for some regulation because they don't want to go through that again, right? >> clearly, they feel and they would all admit, that the self-regulatory model did not work. there wasn't enough self-regulation, but i think there's also a concern, i think going forward people are not going to be taking on a lot of new hiring plans because they're worried about what's to come in 2010. cap and trade, higher taxes, and they're just sort of in this holding period to see what happens next. >> we look forward to it. sunday night, 10:00 p.m. eastern on cnbc. thank you very much. >> always good stuff. let's get more on today's market moves. head back to the floor of the new york stock exchange where warren miers is standing by. dollar is getting hit hard today. we did get some economic data that maybe should have helped. what do you make with what's going on with stocks? >> it looks like they will struggle to do that today. the dollar has been under pressure. that continues again today.

that's pulling oil prices down and as we all know, oil has such a big impact on the indexes that's pulling the overall equities markets down with t i think it's going fob a struggle on this kind of somber recollection of a day to really get things doing positive for the rest of the day. >> what should we make of the fact that the vix also happens to be near or at a 52-week low? should we be worried about that xlasen complacency? >> i wouldn't be concerned at the moment. i think you take it into consideration, the fact that this market has rallied almost 50% from the lows in march. you put those together and you have to be a little -- very tepid here on your thinking going forward. wouldn't be surprised if the market settles in just a little bit. >> good to see you. happy friday. >> thank you, same to you. >> special treat for basketball fans coming up. >> we have personal items from air jordan on the auction block.

as we get ready to induct michael jordan into the basketball hall of fame this weekend. we're coming back on "power lunch" in just a moment. the numbers of seniors are surging country to country. expected to jump to more than 2 billion by 2050. an age wave intel is trying to ride. >> wee see this as an enormous social need as well as an enormous economic opportunity. >> potentially the biggest opportunity, health care at home. the biggest challenge, marketing. >> no one likes to think of themselves as old. they like to think of themselves as less young than they used to be. >> that isn't stopping intel from building prototypes like this motion sensor device which tracks walking patterns. the goal is to study how to prevent falls. a major cause of accidental deaths. >> we generate hundreds of concepts for new technologies for seniors every month, every

year. we end up testing our trialing and piloting about probably two dozen of them. >> it's the few that make the cut that could save lives. that's today's "healthy horizons" report. i'm jim goldman.

big event in springfield, massachusetts, tonight. air jordan being inducked into the nba hall of fame. fans can own personal items from

the sport's all-time great. jerseys, golf clubs, he fancies himself a good golfer. going on the auction block next week in chicago and joining us, david hunt, the president of hunt auctions which is handling the sale and darren rovell couldn't resist. wanted to be part of this whole thing. this is the babe ruth of basketball. >> it is. michael jordan is one of the iconic figures. he transcends not the just the sport, but marketing. you talked about golf. it's really what makes his piece sos highly collectible. >> did try to play baseball at one time, too. the jersey, a significance to it? >> it is a game-worn jersey that is also autographed and we talked about it before on the show. when you have something that's actually game used, certainly adds a lot. it's not something everybody could get. this is a piece that should be in that $10,000 range. >> you're especially impressed by the signature. >> i think that jordan's signature, it hasn't changed over time.

you have a lot of athletes that change four or five times. you don't know if it's authentic or not. can you quickly talk about the upper deck authenticated? he's had a relationship with upper deck for a long time. it's basically fake or not based on whether you have a sticker pretty much. >> it's not just the authentication that's important, but the nature of how it's authenticated. the fact that michael cares very much about his product, his reputation, and so does upper deck and us for that matter. you want to make sure something is authentic. for many, many years michael has made sure that his signature is fully protected. the nature of how it's signed, you can readt you can understand it. it's a very attractive signature. that's part of his branding. that's a very important and bright strategy from a long time ago. >> what's down here? >> usa olympic jacket. not the one that was worn, but signed by michael on the back. great things. tired of that dream team, it was such an iconic situation. >> and maybe his second favorite sport, golf. you can have michael jackson's golf bag. >> it's amazing how prolific he

is at golf and how many clubs and bags he has. this has the bulls logo. tie it is into who he was, the badge player. beautifully signed across the front. this is the kind of thing that should be a couple thousand dollars. it's a great piece for the money. >> this is an unbelievable item, isn't it? >> it is. it's one of the badges used by michael as all the players had at the olympic village during the dream team. it has his photograph, signed on the back by michael. relative to the money, this is the sort of thing people might want to get into now because this is about a $2,000 to $3,000 piece, but given his stature he is the babe ruth of basketball. >> so many jerseys, so many signatures, so many basketballs. >> this is unique. by definition it's absolutely unique and it is something you would go after. >> what else do we have here? >> president obama, two neat pieces. >> another guy from chicago. >> it's all chicago. this is a basketball signed by the president.

actually what's interesting, it's got a photograph of the ball he signed on one of the campaign stops. it adds value. >> i don't know if you can see it, picture of the president on the campaign trail -- >> with the actual ball. >> there's the ball. very cool. really unique thing, one of the most premiere athletes right now, lebron james. these were the shoes he wore, he wore them inauguration night in the game. >> and it doesn't really show up when you're watching it on television, but in person i am struck by the fact that after you buy these shoes they're going to make terrific flower pots j they very lar pots. >> they are very large. >> the auction is? >> coming up this week, on thursday you can bid online at our website. it's a different flavor than we used to do. always fun. >> good to see you, david

hundrhunt. >> this fall's book season will be the biggest in years. you have dan brown's latest, ted kennedy's memory war. that amazon, barnes & noble and borders, mixed trading. amazon to the plus side. bbbbbbbb

did you read di vinci code? >> yes, of course. >> did you love it? >> "angels and demons"? >> yes. >> now we have "the lost symbol" hits bookstores like a tsunami on tuesday, the 15th, with a 6.5 million book printing. >> is that a record? >> i have no idea if that's a record but that is a lot of books. it's not the only book expected to make waves this fall. more now from sarah nelson who

writes the book beast column for daily beast.com. she used to be the publisher of publishers weekly. >> hi. >> this has got everybody talking obviously, but the big fear is that it doesn't match "di vinci code," right? >> i would imagine dan brown and his publishers are a little nervous. how do you match a real tsunami? the first book was more successful than anybody could have imagined that it was. after a certain point it doesn't have to do with the quality of the book even. it's just something happens in the culture and people hook onto a book and it becomes a big success. so will all the stars be aligned to do the same thing again this time? i mean, that's -- >> do you think they will? >> well, first of all, it's a very different time in the economy in terms of what people are spending their money on, and expectations are higher. it's a lot harder to match high expectations than it is to go in kind of cold. >> give me some context. a 6.5 million first print release.

how does that compare to ted kennedy's memoir that's going to come out or the previous "di vinci" or harry potter. it's a little less than the last harry potter which i believe was 8 million. i think it's about 5 million in this country and 1.5 million in other english speaking countries. so it's a lot. i mean, it's a lot of books. >> a lot of publishers have been clearing the decks getting away from that day just because it's going to be all about dan brown, but the one book not afraid to clear out and maybe rightfully so is ted kennedy's memoir which comes out the day before. >> originally true compass, the late senator's book, was scheduled to come out in early october. they moved the pub date up until next week. obviously, there's a lot of pub lis a lisi i

publicity around this book. i think it's a very different kind of book obviously. >> the kindle's impact thus far on the book publishing business. >> huge. >> changing it dramatically? >> i believe so, yes. >> okay. >> so much so that ted kennedy's publisher doesn't want to put it in e book because they realize it will be eating into hard cover sales. >> that's not what they say but i believe they do. >> sarah, thanks. >> thank you. >> it's like super bowl week next week. >> you had a very busy morning. >> i did. i was on wall street trading. get this, i was trading with some of the traders onned trading floor. i will tell you all about it and the charity i was representing when we come back on "power lunch."

it's become an annual tradition on wall street, bgc which includes cantor fitzgerald, every year on 9/11 howard sponsored this charity day where they par