captiong sponsored by macneil/lehrer productionsg >> brown: a deadly car bomb struck the heart of beirut today, raising fears that syria's war is spilling over into lebanon. good evening. i'm jeffrey brow >> warner: and i'm margaret warner. on the newshour tonight, we get n thattest on the explos killed a senior intelligence official and at least seven others from abigail fielding smithf the "financial times" in beirut. >> brown: then, freezingiuman eggs is no longer considered ani "experimental treatment" for infertility. we assess the medical and ethical implications. >> warner: from ads and social media outreach in spanish to

appearances on univision, ray suarez reports on an all-out push by the presidential campaigns for a key voting bloc. >> suarez: although latinos make up the country's largesta minority, about 9% of the u.s. electorate, in a tight election, these voters could end up providing the winner with the margin of victory. >> brown: judy woodruff gets an inside view of the financial crisis and the government ba out from former fdic head sheila bair. >> warner: and markhields and david brooks analyze the week's news. >> brown: that's all ahead on tonight's newshour.hi >> major funding for the c2 newour has been provided by:c2 ♪ ♪ ♪ ♪ ♪ ♪

>> moving our economy for 160 years. bnsf, the engine that connects us. and carnegie corporation. >> and with the ooing support of these institutions and foundat.nsoi and... friends of the newshou >> this program was made possible by the corporation for public broadcasting. anby contributions to your p station from viewers like you. thank you. >> brown: lebanon found itself reliving a nightmarish past today after the worst bombing in fr years. at least eit people were

killed and nearly 80 wounded in a car-bomb attack.le the explosion rocked central beirut as afternoon rush hour was getting underway, tearing through a mostly christian nehborhood.o streets were strewn with burned- out cars, and the force of the blast blew out windows and doors, and sent bloodied, dazed people into the streets, pleading for help. >> ( translated ): the whole place was destroyed. god saved my life. nothing left-- no roof, no windows. >> brown: other witnesses to the bombing said it brought back grim memories of lebanon's long civil war from 1975 to 1990. >> ( translated ): i heard the sound that everybody heard. the loss of material things is not a problem-- we are used to repcing the glass windows since 1975, but those who lost a loved one, that is the real loss.ci >> brown: among the dead today-- police intelligence chief wissam al hassan. lebanese officials said his convoy had been the target.

al-hassan exposed a bomb plot last summer that was linked to syria, and his killing instantly raised questions about a possible syrian role in today's aack. >> ( translated ): the message was to prove what the u.n. peace envoy lakhdar brahimi has been saying, that all the region is on the edge of exploding because of what is happening in syria. so syrian president bashar al- tssad sent this message t they can do anything in the region. >> brown: lebanon had had a few years of relative calm, but the conflict in syria has reopened sectarian fault lines.t the powerful shiite militia hezbollah, backed by syria's ally, iran, supports the assad regime. lebanese sunni muslims support the predominantly sunni syrian rebels. the divide turned violent in , when gun battles broke out in the northern city of tripoli. tensions have also been fueled by a flood of syrian refugees into lebanon. in washington today, state department spokeswoman victoriau nuland stopped short of blaming

syria for today's attack, but she said lebanon is at risk of being destabilized again. >> we have been, for a number of weeks and, in fact, months now, that we've been concerned about increasing tensions inside of lebanon, particularly sectarian tensions and tensions as a result of spillover from syria. but i don't want to pre-judge before the lebanese authorities have had a chance to declare themselves who was responsible here. >> brown: there was no such reluctance back in lebanon, where sunnis burned tires in protest in cities across the country as news of the bombing spread. a short time ago, i spoke with abigail fiding smith of thedi "financil times" from beirut. abigail, welcome. tell us a bit more about thel presumed target here, a top intelligence official. how h he stirred up enemies? >> well, he was one of the most senior intelligence h officials in lebanon. and he was associated with a couple of particular things

targeted syria and syria allies in lebanon. one was the vestigation into the murder of former prime minister rafikve hariri in 2005 andost recently he was seen as beio involved in the arrest of one of the syrian president assad's top allies in lebanon which was seen as a very bold move for the intelligence services in lebanon. >> brown: no one has tak respoibility for the bombing yet, i gather.y who what is the thinking there? what is being talked about? who is being looked at? >> well, politicians in lebanon who are associated with the sort of anti-assad movement have been very quick to blame assad. for many lebanese the bomb today was a huge blast, was reminiscent of a string of attacks which took place against anti-syrian politicians in the year 2005 to 2008.

so there's a lot of people targeting theta syrians for this, although syria has condemned the attack. and described it as an ago of terrorism. but there are protests in areas of lebanon, sort of associated with opposition to the syrian regime today. so the mood on the street at least in those areas is very angry. >> brown: well, you know, as you say, there is a lot of history there between syria and lebanon, how is this, what is going on in syria now, how is it spilling over, how is it playing out in lebanon. what force has that unleashed there? >> well, i think there's been two types of things. first of all there is the sort of literal spillover. there's been a lot of clashes on the syrian lebanese border where a lot of syrian rebels are believed to be sort of seeking refuge. and also there's been aot of refugees pouring intoen lebanon which is quite a small country.

they've had about 70,000 refugees. so that's also increased tensions. another way in which it is increased the sort of political temperature here is that it is made the sort ofredominantly sunni opposition of lebanon who are close to the opposition in syria more empowered and more angry with syria'sr allies in lebanon. so in many ways these tensions preexisted the syrian crisis. but the syrian crisis has ilamed them and you knowi, particularly when you have things like lebanese citizens getting kidnapped in syria as happened during the summer, it really sort of inflames things and makes the situation in lebanon very unstable. >> brown: and what about the role o hezbollah, the u.s. recently said it's become part of the syrian government's killing machin was the way theyleut it, iu believe. how much is known about hezbollah's role in what is going on both in lebanon and

vis-a-vis syria? >> well, you know, hezbollah themselv denyse sending fighters to syria. but there have been these reports of funerals, of hezbollah members who are widely reported to have died in syria. not very much is actually sort of known about it in terms of fact. what we do know is that hezbollah is closely allied with the syrian regime. they see sort of an alliance of interest together. and that has actually costed hezbollah politically in lebanon, bein to publicly associated with the syrian regime. >> brown: let me ask you finally, abiga, personally there, what's the tension level at this point? how c,se does it feel to a return to the kind of sectarian violence of thew past? >> well, i mean i don't kno about sectaan violence but certainly the people i saw today sort of around the

site of this massive bomb blast looked, you know,ec extremely disappointed that their country had gone back to a pattern of failure that everybody hoped had left behind. beirut itself, the central beirut, the streets i have driven in to get to the studio are quiet, much quieter than usual. but i haven't seen any actual sort of burning tires or anything on the streets. i think the coming days will show whether the political leadership on both sides in lebanon is really able kind of contain the tension provoked by events like this. >> brown: abigail fielding smith of the financial times in beirut, thanks so much. >thanks. >> brown: immediate reports of the explosion were captured on twitter today. see a timeline of these tweets from journalists who were at the scene on our web site. >> warner: still to come on the newshour:>> new guidelines for freezing human eggs; the outreach to latino voters; former fdic head sheila bair on the financial cris; plus, shields and brooks.

but first, the other news of the day. here's hari sreenivasan. >> sreenivasan: a roadside bombing in afghanistan today killed 19 people on their way to a wedding. most of the victims were women and children. the group was in a mini-bus, heading to tan groom's home in a northern district to congratulate the newlyweds. afghan president hamid karzai tostrongly condemned the attack. in yemen, suicide bombers in military uniforms stormed an army barracks in the south, killing 14 soldiers and wounding more than 20. the attack came one day after at least seven al qaeda gllitants died in what were believed to be u.s. drone strikes in the same area.s a pakistani schoolgirl-activist who was shot in the head by the taliban is now able to stand without help. doctors treating 14-year-old malala yousufzai in britain said today she still has signs of infection. they also released a photo of her, showing a large bruise under left eye. overall, they said, her condition is "stable." at this stage we're not seeing any deficit in terms of function. she seems to be able to

understand. she has some memory, she's able to stand. she's got mor control so she's able to write. whorether r ere is any subtle intellectual or memory deficits down the line is too early to say. >> sreenivasan: yousufzai was flown to rmingham, england, on monday. she had advocated for girls' education in pakistan and against taliban atrocities. the militant group has warned it will try again to kill her. new disclosures emerged today t about the assault that killed the u.s. ambassador to libya. the associated press reported the cia station chief cabled washington the next day. he cited evidence it was a terrorist attack, and not a protest, as top u.s. officials said for another week. today, in a radio interview,ya republican vice presidential candidate paulyallcalled for president obama to say more in monday's final debate. >> they refuse to answer the basic questions about whatca happened. you know, and so his response has been whinconsistent, it's beensi misleading. and more than a month later we still have more questions than answered. and so hopefully on monday night they can, thatda will

give the president a chance to explain himself >> sreenivasan: the president pointed out in this week's debate that, the day after the assault, he said: "no acts of terror will ever shake" u.s. resolve. republicans insist he was speaking only generally. in another development today, "the new york times"heeported that one of the alleged ringleaders of the attack hasd yet to be questioned, and is defiantly showing himself in public. the president did not address the subject of libya today, utut he did go after his republican opponent, mitt romney. campaigning in northern virginia, mr. obama said romney seems to be forgetting the more conservative positions he took during primary season. >> i mean he's changing up so much, and backtracking and sidestepping. we've got-- we've got to name this condition that he's going through. i think-- i think it's called-- romnesia. >> sreenivasan: both candidates will spend the weekend preparing for that final debate, monday night in boca raton, florida.

wall street had one of its toughest days in months. the market tumbled after microsoft, general electric, and mcdonald's turned in earnings that fell below expectations. the dow jones industrial average lost 205 points to close at 13,343. the nasdaq fell 67 points to close at 3,005. for the week, the dow ekeout a gain of one-touth of 1%; the nasdaq fell more than 1%.th european leaders have taken a new step toward dealing with their long-running debt dilemma. after all-night negotiations inp brussels, they agreed a plan for creating a central nking supervisor should be in place by january 1. they did not say when the watchdog would begin work. the supervisor would oversee efforts to bail out european banks so hard-pressed governments won't have to. those are some of the day's major stories.t now, back to margaret. >> warner: we turn to new guidelines and questions surrounding freezing eggs to treat infertility. doctors started freezing and then thawing eggs for in vitro fertilization, or i.v.f., years ago, but in very few cases, and the procedure has been

considered experimental. today, the american society for reproductive medicine shifted its position, saying the process shouldn't be labeled "experimental" any longer. it said babies born from frozen eggs are as healthy as those from fresh eggs. but the committee said the procedure should be limited in its use. it's estimated there have only been about 1,000 births from frozen eggs in the u.s., compared to more than a million babies born through i.v.f. we look at what's changed and the thicket of questions it raises. doctor eric widrao-chaired the committee that madeo-he recommendation change. he's with the shady grove fertility center. and marcy darnovsky is the associate executive director of the center for genetics and society in berkeley, california. welcome, both of you, he. wid ra-- widra, beginning with you, on what basis did your group, your committee conclude that this shouldn't be considered experimental any more. that it works as well as using fresh eggs. >> there's been a fair

amount of pressure from patients and practitioners over the last years to remove this label of experimental from roegg-freezing and thank youing, but there has been very little data published comparing the techniqueeg using frozen eggs and fresh eggs and looking at the outcome of the pregnancies. in the last several years there have been studies painly outref europe but some in the the u.s. as well showing near equivalent from fresh eggs from younger woman and frozen eggs in terms of establishing pregnancies and a large series looking at the outcomes of these pregnancies, and the children seem to be doing as wells appears without reproductive technology.f >> warner: yet are you limiting its appl able. pou're not recommending it for all womenwho might wantwh something like this. explain the limitations and why. >> sure. what we're saying is three fairly specific points. one is that we do think we should be reco ending thisre procedure for women who may become infertile from me cal treatment such as cancer and chemotherapy.

we think that it is a reasonable technology to use in centers that provide eggca donation services to their patients but that we need to monitor that very clely as c that still a very young tehnology. and we think it's premature to recommend that women freeze their eggs to preserve their own fertility for later. but we recognize that there is a strong impetus to do so and if centers proceed with that service that we carefully counsel the patients with the pros and cons. >> in other words, you're talking about what yhn would call elecive -- >> correct. >> warner: something that is elective. but is this procedure delivers as many babies or produces as many bivbies andbi healthy ones, why not, why doesn't it also apply to older women who may want to delay, let's say they are in their mid 30s and still aren't married and want to preser the option ofes having a baby. >> there is no question in our mind that that could be a huge benefit to women and families. if this technology is safe and effective across the age

range, that that could really be a bo to women who are in a position where they're not prepared to have children yet. but don't have other alternatives. so we would love too say yes, please go and do this. but it comes with both personal and societal andes scientific ramifications that we aren't prepared to say we understand y. y >> warner: does the data, and then i want to get to y, ms. darnovsky, but does the data, do you have data showing how safe and effective it is for older women? >> no, we really don't. the relatively small number of women without freeze their eggs lechively or even for cancer therapy oftera won't ed those egg force many years. and those that have frozen them may conceive on their own. so we have a small subset of women who have frozen their eggs for a reseonable period of time and wanted to use them again. >> warner: marcy darnovsky, what is your reaction to this-- reaction to this recommendation. >> well, our concern is that a lot of fertility clinics, hundreds, really, are already aggressively

marketing this procedure for lech difficult purposes, for what is times called social egg freezing. and we think that that is really not a good thing. it's the spirmental label may be removed which witld enable insurance companies to cover the costs for women who might become infertile because of cancer treatments, for example, but it's still an experiment. and as attractive and tempting as it is to, we all want to expand choices for women, so they can have children when they want to. but i don't think any woman wants to experiment with her own health or experiment with her child's health. and we really don't have the data and the new guidelines from the fertility industry organizations say that the data is not adequate to assess the effectiveness or the safety of this procedure for social purposes. >> warner: so are you saying that you aren't persuaded that fo p any woman this has

be safe,en to healthwise. >> right it there are risks to the children. we don't know yet, we hope they are all okay, and they seem to be so far. but they're still very young. there are risks to wome because egg extraction is actually a fairly invasivomas procedure. and surprisingly, and really dismayingly, even though hundreds of thousands of women have undergone it in the year since ivf has familyan option for formation, we don't have adequate data about either the short-term risks or long-term risks of egg extraction. and there are some troubling results that we do have. and that's something that the fertility clinics are oft, they put inof the fine print. and that's a real concern. and especially when you look at the situation, it'she kind of hard to talk about babies and business 's the same breath, i think, a lot of times. but the fertility industry

is a business. and this egg freezing if it should become something that young women do in order to have this insurance policy,es this really expands the customer base. and a profit centre for the fertility industry. and i really hope that the fertility industry will, you know, step up to the plate and really make it clear that they're not recommending this at the current time for lechive purposes, and that they hold the toes to the fire of their members who are advertising it that way and marketing it that way. >> woodruff: dr. widra, you are with a fertilityar clinic. what do you say about the health concerns and the concerns that it will just become a marketing tool now that it's not experimental? >> as a practitioner and representative, i am worried about the marketing aspects there are four important points that need to be addressed, briefly, one is we are not an industry, we're a medic practice like oncologists and on ste stations. seconds there are hundreds of papers on the outcomes

after egg retrieval for women short term and long-term and is generally accepted as safe. and the reality is yes, many medine has uncertain outcomes down the road but unless you actually do t you don't know so unless we canme freeze eggs and see what happens later we will never know whether it's safe or not. >> warner: finally before we of what about the so ethical societal o implications. i mean what message is this sending in tes of, particularly the trend or has been a trend for women to delay child bearing. >> ye, and i think as a seat that's something we have to step up to the plate about. we shouldn't be asking w en to bearen these risks just so they can have a family. we should be putting in place policies that make sure women have equal pay for the work that they do, to make sure t at they don hit glass ceilings, tha there are family-friendly policies in workplaces. that we're not assumingwe that women re the sole or the major caretakers for

children. and all these kinds of policies would really go a long way toward addressing the xiety that women feel about being able to have children. >> warner: what dow say to that, dr. widra. >> couldn't agree with that more. this is not a technology that should be used to cure societal ills or societal pressures. we do live in an unfortunately complex society where women off done have to make these choices. but the reality is the number one factor in infertility is delayed child bearing. >> warner: dr. eric widra and marcy darnovsky, thank you very much. >> thank ynk >> brown: and to politics and the battle for the growing hispanic electorate, something both campaigns believe could push them ov the top this year. ray suarez has our story. >> suarez: the assignment is straightforward, and really

hard-- getting latino voters to the polls. although latinos make up the country's largest minority--op about 9% of the u.s. electorate- - they are younger, poorer, and less educated than other americans in a country where older, wealthier and better educated people are more likely to vote. but states critical to both campans such as colorado, nevada, florida and here h virginia have seen large grthth in hispanic population and voter registration in recent years, and they are up r grabs. in a tight election, these voters couldind up providing the winner with the margin of victory. how do you talk to a population of 50 million people? for one thing, in spanish and through a variety of channels. bendina inclan is the republican national committee's director of hispanic outreach.in >> there's a lot of diversity

within the hispanic community. 20-plus different countries, different, differences in generation-- first generation versus third generation-- so having a message that connects with all of them, but also recognizes a uniqueness and when to be culturally aware is incredibly important. i hink that's why a lot of our outreach efforts are so localized.ha >> suarez: in battleground colorado, that was a juntos con romney-- "together witromney"- - event, headlined by romney's youngest son, craig, who's been hitting big hispanic markets too speak on his father's behalf in two languages. gary segura, a pollster and political science professor at stanford university, says the spanish-language outreach demonstrates cultural recognition. >> the idea that a candidate would address you in your native language, or if not your native language, the native language of

your parents, conveys a level of respect. it's part of symbolic politics. it doesn't have any meaning or any policy meaning per se, but in the minds of the voters, it conveys a sensitivity, an interest in, a willingness to listen to the concerns of the population. >> suarez: but for all their attention to getting the word out in spanish, the campaigns are leaving out a rge and obvious constituency, segura says. >> the missed opportunity for bath political parties are english-dominant hispanics. english-dominant latinos say they also would kind of like to hear something about latino concerns in the language that they primarily process information in, english. >> suarez: juan sepulveda is the senior advisor for hispanic affairs for the democraticti national committee. he agrees that outreach is more nuanced than just spanish ad buys. his campaign calls itself the first fully bilingual one in history. all the presanreleases, tweets,s and other media go out iboth languages.

as an example, on the spanish- language web site, they evenut encourage web visitors to use this calculator to figure out their tax bills under an obama administration and a romney one. that's the same tool available on the englh site. >> florida is a place that we know, on the voting side, you can do a lot of work in the spanish media and you will be successful in getting to a majority of our voters. that's not the case in colora.. that's not the case in nevada. and in colorado, the numbers are pushing kind of 80%-plus in terms of primarily getting that information from english media. we have to be really smart about kind of breaking it down to all those different pieces and making sure that were kind of having those conversations in all theifferent avenues, andif its more complicated now. >> suarez: segura says geing it right is more complicated still by the fact that some ads aimed at latinos are simplys

translations of existing english ads, such as this romney "day one" ad. >> your spanish advertising cannot simply be your english commercials translated into spanish. >> suarez: why not? >> because the message is different. the message is different, the cultural idiom is difrent.re what a phrase means, whether it resonates with the population is different. that has to be culturally bound. >> suarez: both campaigns have opened the spigots on spanish- language ad spending this year. newshour partnerantarta media/cmag found the obama campaign has spentolose tse $8 million for spanish-language unvertising from mid-apll unti the beginning of this week. th romney campaign has spent close to $3 million on its spanish-language ads during that period.y on the obama side, makers at the democratic national m committee are editing

testimonial ads like this one from a dinican-american vet who cares for her aging parent. the campaign has also brought star power to bear-- in english, from mexican-american eva longoria, and with cristina saralegui, a top rated talk show host known as "the spanish oprah."in currently, romney's spanish- language ads range from celebrating the entrepreneurial spirit in the hispanic community and in the "ya no mas"-- or "no more" ad-- a wide swath of hispanics tell how alough they voted for obama four years ago, he "forgot" them and didn't keep his promises. in addition to ads, the candidates took another route to reaching some 50 millionhe hispanics through interviews with the spanish-language network univision. immigration was one of the front and center issues. romney says he wldn't deport

lde dreamers-- those young people who cmee to the u.s. before they turned 16 illegally- - and after an obama administration ruling this past e mmer, no longer face deportation provided they register with the federal government. >> i'm not going to be rounding people up and deporting them from the country. we're going to put in place a permanent solution. and unlike the president, when i'm presint, i willntctually do what i promise. i will put in place an immigrction remirm plan that solves this issue. >> suarez: and mr. obama says, despite the dream act changes, immigration is one of therm greatest failures of his first term. >> and so i am happy to take responsibility for the fact that we didn't get it done. what i promised was that i would work every single day as hard as i can to make sure that everybody in the country, would have a fair shot at the american drea and i have... that promise, i kept. >> suarez: latino voters are, by definition, citizens of the united states. yet, segura says, immigration

remains an enduring front-burner issue, even as foreclosures and unemployment in latino families spid, and bspone estimate, the timmunity lost two thirds of its household wealth in the recession. >> they might have been born in the united states, but their co- worker, their brother-in-law,ts their neighbor down the street, the identity with immigration is much, much more proximate. >> suarez: but bettina inclan says the romney campaign is placing a priority on economic issues as it reaches out to latinos. >> they care about jobs, they care about the american dream and how, under this administration, it's become a little bit harder achieve that american dream. >> i think you could get into trouble as a campaign if you ly looked at the polling that said, "look, they didn't rank it very high so it must not be very important." >> suarez: both candidat are s.king their closing stateme >> this party is the natural home for hispanic americans.s.

>> we are a nation of strivers and climbers and entrepreneurs, the hardest-working people on earth. and nobody personifies these american values, these american traits more than the latino community. >> suarez: a pew hispanic center report out last week showed latino voters support the president by a three-to-one margin, but are still lessla certain than other groups about actually showing up at the polls. so although new latino registration has so r greatlytl exceeded new registration among whites, both campaigns are working down to the wire to make sure their supporters will actually cast ballots come election day. >> brown: ray talked political editor christina bellantoni about states where the latino vote can affect other races. that's on the "political checklist" on our home page. plus, tonight's edition of "need to know" travels to florida to see how the campaigns are courting latinos there.

>> warner: now, a new book by a former insider takes a critical look at the government's actions during and after the financial crisis. that fallout from the crisis and those decisions are still reverberating on the campaign trail this fall. sheila bair was a key player as heaof the fdic, o f of the nation's chief bank regulators. she worked with treasury secretary tim geithner, federalo reserve chairman ben bernanke, and former treasury secretary henry paulson before stepping down last year. her new book is called "bull by th horns." judy woodruff sat down with bair yesterday. h stheela bair, welcome. >> thank you for having me, nice to be here. >> woodruff: to get background out of the way who and what do you think is responsible for the financial collapse 26008? >> oh, there's plenty of blame to go around. i think at the end of the day it was greed it was just greed that was unchecked by

government and government regulators. this idea that is is all caused because the government wanted poor people to have mortgages, that's just not true. i think expanding access to home ownership for low rae raexization. a lot of people making ot of money, making a lot of irresponsible loans to frank lienir the mostulnerable parts that didn't understand it and regulators didn't step in to stop it. >> woodruff: what is it that you believe theulush and obama administrations did right and did wrong to deal with it? >> well, iu think the misstep goesing up to the crisis, both the clinton and bush i administration, i think the three big ones are we didn't raise bank cap al requirements, we didn't constrain the ability of large institutions, used leverage, borrowed money to suppo c their risk-taking and instead government took a lot of aptions to allow investment banks in particular to take on even more leverage t and expand their operations with borrowed money. the federal reserve board

had the authority to set mortgage loaning stanrds across the board for everyone, banks, nonbank, mortgage brokers. they didn't do that. and then finally, of course, and this is in the clinton administration, congress just said that nobody is going to regulate derivatives. the if, it,-- ftct couldn't regulate them, even state insurance rculators were told hands-off.e office change derivatives offices we don't think they need be to regulated. >> woodruff: are you saying government had their own share of responsibility. >> they did. yes, t i would say this is because industry lobbying stopped these kinds of steps from being taken.s >> woodruff: what about in response to the crisis once it happened. what was done right and what was wrong. >> i think as i said before i really question the bear stearns bailout, was done in march 26008. we were not in a crisis situation. we were in a cure rating situation. i never have seen a good analysis to justify that but i i do think when the government stepped in to bail out bear stearns in support its acquisition by jc morgan chase and chase was requested to do that, that that set up an

expectation that the gort would heat the other institutions fail. and so that sent a signal to lehman brothers that was having a lot of problems that they would probably get a bailout too and they were bigger than bear stearns. so they decided they didn't really take steps to correct themselves. and because the market had an expectation that they were go stock bail outs people didn't take steps on their own to fix their problems,. >> and you're critical in the book of the whole bailout process. >> right, mi. >> said these banks should have been let go. >> as you know the administration pushes back saying if we had let these institutions go,wehe problem would have been much morse, and what we've done at least stanched ge bleeding we are back, we are growing, it's slow but we're growing. >> i would agree at the end ef 2008 we were in a situation spinning out of control. and we needed to do something so we threw a lot of money at it. but the major institutions that were insolvent were having liqusity problems, they were having a hard time because everybody was so fearful, they were having a hard time borrowing money.

but they had e uity capital they were not insolvent. citigroup was insolvent, merrill lynch, aig was insolvent but the rest could have bumbled through. needmight have liquidity sport but they had enough capital to absurd their losses. but in 2008 we were dealing with a lot of unknowns so we threw a lot of money at it and i guess i can live with that more, but in 2009 we had a stable system at that point and that was really the time we needed to impose pain and account able. institutions like citi groupe should have been restructured and roken up. we couldn't even get conversations go being that. >> do you feel you did enough to speak up internally against all the -- >> when congress didn authorize all this tarp money it was my clear understanding and one of the reasons i participated in these bailouts is that we were going to get a big loan modification program, woid scale to preven unnecessary foreclosures from occurring and it never happened. didn't happen under bush. didn't happen under obama. so i do, that does still

make me angry. i spoke out about it a lot of i was being criticized for speaking out about it. on the bailouts maybe i should have done more. we were a ed to guarantee all the financial institutions and we said no,ed we weren't going do that. there is-- i was recall the anecdote where i felt like i was ambushed and the meeting in hank paulson's office, he and ben were there, they were on the phone and hand me a script that says the fti c will stand behind all liabilities in the financial system. and i wasn't going do that, we dialed that back. they wouldn't even there is an anecdote in pie book llhere we were at least trying to say let's ban bonuses. if we take losses on these bailout initiives then executive bonuses should be banned. the other regulaedrs wouldn't even support us on that. so yes, i did push. i didn't get much help or support. i was kind of surrounded. we were there by ourselves. rsybe coy have doneoy more, m i don't know. how many time cuss run into a brick wall at 90 miles per hour but we did what we did. >> woodruff: going forward what is it that you see in

the prescriptions of either president obama or governor romney that will fix the problem as you see it todaod >>ell, both say they want higher capital requirements. and that's good. but the problem isre we're hearing people talk good games but actually getting the rules in place. we have more capital in the banking system now because the market demanded it and we've had this stress testing process which is a discretionary process. t the rules still allow a lot of leverage. we need to get the rules changed. they both say they want to do tht but when it gets specifics how much liberty do you think is expect where would you set the capital, you really don't hear details. they both say they want to end too big to fail. thank goodness. even alan greenspan says if they are too big to fail, they are too big. so if they can't fail without hurting the rest of us, they need to be broken up now. but again doddpefrank has provisions to empower regulators to do that now. but will mr. o bam-- obama or romney appoint people who are willing to use that

authority who are committed to ending too big to fail. >> if are you a voier trying to make a decision, how do you make a decision based on hearing what you just said. >> that's one of the reasons i wrotry the book. i tried to break down some of these issues. i done think this changed. the financial services industry got too big as part of our economy, too big in their political influence inwr washington. and it is on both sides of the aisle it is in both political parties so unless people educate themselves i know people are busy and you have got all sts of things to learnll about and prepare for. that is one of the reasons i wrote the book to describe ome of these simpleom concepts is and steps that need to be taken. and make account able for elected officials to for regulatesers willing to do it. are you optimistic this gets figur or not. >> i am not, i really am not. we heard thank you to jim lehrer there was a dodd frank question, i appreciate that at the first debate. the second debate driven by town hall participants we didn't hear mu. and we're not really talking

about on the campaign stump. and my fear is they are both worried about alienated all this politicalth money that comes in from the financial sector so, again i think people have to educate themselves, speak up, get angry, raise this or it's not going to gett fixed. >> sheila bair, the book is bull by the horns and we're going to ask you to stick around and ask a few more questions on-line, so ou iewers can hear more of what yoveha ty.osa t thank you. >> you bet >> warner: and you can watch more of judy's conversation online. >> brown: and finally tonight, to the analysis of shields and brooks-- syndicated columnist mark shields and "new york times" columnist david brooks.sa so david, three days after the second debate, how does it look? >> well, the start of the first two debate os bama had this huge t personality advantage over romney, personal like able. dete one that goes away. debate two, there's a strong

momentum toward romney, it's back. it's not back, we sort of hit the equilibrium where they aredeoth quite popular now. so now it's who isu going to be a better president. there is not a big personal dince there is policy differenceless. and so after second debate where people liked obama'sng presence, they liked his forcefulness, democrats were cheerd. and so now he goes not third debate and the final whatever it is, 19 days with a slight structural advantage, people are looking at every poll, every 13 secretaries. but that's too much information. he's got a -- >> it is interesting, do you buy it that they are both popular now, because months when we were sitting here you are saying therehe wasn't much enthusiasm for either n a way, you know. >> the enthusiasm is certainly up there for romney at this point. and i don't think you can overstate the importance of the first debate in the election of 2012. by his unilateral disarmament, disengagement, call it what you want, the president enabled mitt romney to elunge all the

negatives that the obama campaign had put on the air about him am anda to establish himself, make a dash for the moderate middle to create the old new old or old new myth with sort of an enlightened or progressive position on regulation, on health care, and all the rest of it. s established, okay, and not contradicted, it just gives him an advantage, 70 million t people, 70,000 commercials, 70,000, but i mean you don't begin to approach the same number. >> you do in i presidential debate. obama had a tough job in the second debate, jeffrey. he had to, first of all reassure his own supporters that he was the guy he remembered, admired, worked for, helped-- for. thought he did do that. in romney's first deba, because obama wasn't even there, he was very even in

disposition and tone. and i think in the second debate obama got under his skin and he became peevish, sspish, there was a pet lent side to him, quarrelous. i think that and sort of his outburs and certain hcectors of the approximately, i think hurt him. i don't think-- it no way approached the decisiveness of the first debasically ict mean the first debate was a rout. but i think this was a solid obama victory. >> brown: now we move to one more monday on foreign policy. now beyond a few areas, have we had much of a deep discussion about foreign policy? awhat are you looking for in this one? a >> we've had a discussion of benghazi and i suppose we will go over that ground again. >> brown: yeah. >> but what i am looking for is not a rehearsal last four years. i think what each candidate is going to try to do and should try to doing, not some of define what are they going to do on iran or benghazi or china. how hard are they going to

bash china. it's to lay out a vision that reflects their personality. frankly i think very few people are voting on foreign policy this yeabut i do th yk they are voting on vision for the country and reflects their personality. dick morris, god lover him or whatever god wants to do with him, did have a nice formulation, which is policy as an instration of character. and how you see america's role in the world is going to be reflect-- reflection of your character. so i'm looking for forward looking broad vision more than who said what about again gazee on what sunday show. >> brown: what dow say. >> i stand second to nobody in my admiration for dick morris an david brooks, it san interesting couple. but i will sigh this, i think it's more about values than it is about character. and i think the principles value right now, the principal temptation f governor romney, as the neomer, as the challenger is to go in and try to dads el with figures, nairobi, kenya, and they have aom transportation problem. and the g8 nations, i will

name them four, i think that is a mistake. i i agree with david, a debate of again gaz-- benghazi does neither any good at this point. i think it particularly complicates gernor romney'ses life. because in order-- hillary clinton who is the most popular public office holder in the country, okay, beyond anybody, even more popular than her husband, i meannd together they are o the charts. but 70%, and she's exceedingly popular with women. >> celestial couple.e. >> exactly. she tok up, she stood upk and took up responsibility for this week. now for romney to go after obama on benghazi, he's got to go through hillary clinton that is tricky. and i would say this about the president. leaders don't understand. ire andreally a appreciate when someone steps up and says it's my responsibility it happened on my watch. >> it doesn't seem to have stopped them. even today we saw paul ryan talking more about benghazi. >> i don't think the president, i think the-- the

thing they do is stand in defense of susan rice, not give e appearance that shee was operati on the inrarmation she had. our information was wrong. this is it.n but i mean to disa bruise the sort of conspiracy theorist, but also to stand up for one of his own. i don't think quite frankly he has done that. >>is this hurting the president, as it kind of drags on? >> i personally don't thinks so i think the hardest argument, the argue they could make, the republic kos make is you spend four or eight years criticizing dick cheney for misleading the country based on false intelligence and now misleading the country based on false intelligence. it's obviously not the same size issu but that's basically what they did. they thd bad information itey was politically convenient for them and they repeated them. i don't thinkn hey really blame them, they were giving cia told them this is what happened, they repeated it it was easy. i generally think don't get in that. obama's weakness on forence

policy, his strength is thathe he does what's politically astute and is always cautious. he's not throwing the u.s. into anything big whether it's syria or iran. he's trying to do enough but not to coit resources. nd so it's a bit of a pass of foreign policy. i would say somewhat realistically but passive. so romney has some room there to say here's my vision. here is what america is going to look like in the 21st century. i think that is where you should go rather than relitigate. >> brown: let me switch gears to the targets of the campaigns. this is the week we heard over and over again women, women, women, women. the first debate, of course, e, heard about women in binders. >> well, in the second debate, that's right. i would say this, because ofbi the first debate, it gave mitt romney a chance to appeal to particularly suburban women who have been an awfully important constituency of the democrats. how important. i was just pointing out this. in neither deb e did the

president mention minimum wage, collective bargaining, union, working poor, the economic bread-and-butter issues the democratic party, the new deal and po new deal great society were based upon. five tis he mentioned planned parenthood. i mean theres with a sense that there is a cultural divide in the democrats, that this is a cultural constituency on social issues, you will pick up on whether it is abortion or same sex marriage or contraception. and ss it is a real difference as they go after the women. and i think the women's vote, in particularly, the sense that they were relying upon this. and whatever, whether it's even in some r polls suggested, a couple polls, there's been a loss of support. and i think there will be a major, almost frenzied effort to recapture women. >> are they both appealing p of womene gr or what are you hearing? g who do you hear them getting through to. >> we should say that women are re likely to votear democratic but it will still

be -- >> rim more likely to vote period. >> and more likely to vote the side than men. these are generalization and they are split. if are you going sqlenize about women as a group. >> brown: why not. >> and why not, there ri a couple of different demographics. it seems all that talk about planned parenthood a peeled more toward college educated upscale suburban women. where it seems to me the core of this electorate is what the pollsters call waitress moms who are high school educated moms making say 38, 40,000 in ohio, maybe with a kid. and so those women have slightly different concerns, a little more concerned about economic security, a little more concerned ab utut education, but clinton was the master at talking to this demographic. and basically he painted a picture of you're trying to do your best, trying to raise your family but yet all these hostiler forces coming into your home and trying to mess up what you are creating. and so i'm going to protect you from that even thinp like the v championship if you remember that back in clinton's day that was part

of the strategy, school niforms. i'm helping you get the order that you have built it will not be messed up. that was as. great strategy because that appealed to real anxieties. i'm ast sure either of these candidates have that sophisticated an understanding of what is driving so much anxiety, especially among that demographic. >> last coupleinutes, i wanted to save a little time to talk about george mcgovern, he's in hospice care. his family put out a statement that he is no longer responsive, at the end stages of his life. the statement, mark, your sthouts. >> i should autknowledge that i was an add mirer of george mcgovern and i worked in his 1972 campaign. but i think what's misunderstood about george a mcgovern, and to define him by that loss is to really be unfair. he went off to war as a i 22-year-old from south dakota. he blew the-- flew the b-24 which say big lumbering four engine craft t was vulnerable to german aircraft. de 35 combat missions. steven ambrose, the poet

laureate of military heroes said george mcgovern was as great a patriot as he ever knew. he had the trust,onfidence nnd love of his crew. and his acts of courage were just enormous. and i think that we owe him an enormous debt, steven s ambrose said i just want to show you that don't have to be a hawk to be a great patriots. and george mc2k3w06 earn was that he was a great patriot. he devoted his energy to feeding the hungry and trying to stop the united states from twoarsare shouldn't have gone into, vietnam a iraq. and i just think he should be remembered for that leadership rather than just the. 1972 race. >> the descriptions of the planes he brought back home after they had been shot up were incredible descriptions of things he did. he was an icredibly decent man throughout his senate and even the presidential runs, just incredibly nice. if i could make a cheap political point, he wrote a piece in 1992 for "the wall street journal" after he retired. he bought a b & b, bed &

breakfast in con, and he wrote a piece saying if hi been a small businessperson before i was in the senate, i would understand what a pain all these regulations are. and he said i would have been a better senator if i hderstood what happens when you are try to live under this. so that is maybeu a polit balance-- political point. >> is there a political legacy that either pro or reacting against still or that comes down to liberalism today. >> i would say a lot of the people he brought into the party in 1972 went on to reshape the democraoc party to this day.oc >> bill clinton among them. >> exactly. >> gary hart and other people. so i think he had a huge legacy within that party. >> brown: you would agree. >> i would agree.> i mean he proved that could you could be paetsful and a patriot at the same time. and the two weren't in any way mud allly exclusive. >> all right, mark shields, dad brooks, thanks asd always.

>> brown: and mark and david keep up the talk on the "doubleheader," recorded in our newsroom. that will be posted at the top of the online "rundown" blog later tonight. >> warner: again, the major developments of the day: a deadly car bomb struck the heart of beirut, lebanon, killing eight people and wounding dozens. it raised fears that syria's civil war is spilling over the border.b and wall street had one of its worst days in months after a series of disappointing earnings. the dow industrials lost 205 points. and something for political junkies-- a new e-book chronicles presidential debate moments. hari sreenivasan has more. >> sreenivasan: learn about a new series of f os and books, including an e-book we've created based on the documentary series "debating our destiny." ndincluded are interviews betwen newshour's jim lehrer and almost every presidential and vice presidential candidate since 1976. find out more on the "rundown." on "making sense," economicsud corespondent paul solman revisits presidential prediction methods. he relks to one economist who has a pretty good track record picking winners. and on "art beat," jeff talks to

writer louis erdrich about her latest novel, "the round house," which was recently nominated for a national book award. all that and more is on our wlk site, newshour.pbs.org. jeff. >> warner: and that's the newshour for tonight. on monday, we'll talk to voters in florida about what they want to hear in the third and nal debate between president obama and mitt romney. anm margaret warner. >> brown: and i'm jeffrey brown. "washington week" can be seen later this evening on most pbs stations. we'll see you online, and again here mondayvening. have a nice weekend.in thank you and good night. c2 major funding for the pbs wsur has been provided by: bnsf >> and by the bill and melinda gates foundation. dedicated to the idea that all people deserve the chance to li a healthy, productive life.lt >> and with the ongoing support of these institutions and foundations.

and... >> this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. captioning sponsored by macneil/lehrer productions captioned by mediaccess group at wgbed access.wgbh.org