embley is a meeting in new york and we have some information in footage from the event and we'll be joined by professor ron filler of the new york law school to talk about the collapse of lehman brothers which was followed by the financial meltdown back in two thousand and eight he worked at lehman and what does he think will be the next financial crisis plus sirius x.m. is buying music streaming company pandora for three point five billion bucks steve malzberg tells us what it means also michael kors is find there saatchi for more than two billion dollars our forward fashion correspondent trinity charges tells us more and gives us her thoughts plus molly barrows from the ring of fire network is back to talk about some dirty details of those d.n.a. testing kit is that a lot or what let's hit it hard. at manual meeting of the united nations general assembly antonio gutierrez the u.n. secretary general began his remarks with a cautionary message about how the world is suffering from what he called

a trust deficit disorder the secretary general speech discussed climate change migration and even gender equality which some have suggested were somewhat of a shot at u.s. president donald trump for mr trump's party showed up late missed his speaking slot and then said this. and i presented a vision to achieve a brighter future for all of humanity. today i stand before the united nations general assembly. to share the extraordinary progress we've made he then went on to brag and boast about himself and his accomplishments. in less than two years my administration has accomplished more than almost any administration in the history of our country america's economy is booming like never before since byelection we have added ten trillion dollars in wealth the

stock market is at an all time high in history and jobless claims are at a fifty year low. he also said quote americans policy of principled relisten means he will not be will not be held hostage to all dogmas discredited ideologies and so-called experts who have been proven wrong over the years time and time again this is true not only in matters of peace but in matters of prosperity we believe that trade must be fair and reciprocal the united states will not be taken advantage of any longer he said while mr trump statements were somewhat more mild mannered than last year's remarks when he threatened to totally destroy north korea there's a diplomat for yet he nonetheless the spouse and isolationists view of the u.s. in the world and what is seen as a rough rebuke to mr trump french president emanuel mccrone suggested nations should not enter into trading relationships with other nations which do not comply

with the paris climate agreement he's talking about the u.s. there are very few others and brazil's president michel tamir in what is his last speech at the general assembly said that the old forms of intolerance are being rekindled. the increasingly heated words between the u.s. and iran u.s. sanctions and the recent decisions of ministers from opec and allied nations to maintain output levels seems to be pushing oil prices higher the price of brant crude traded in london is noticeably risen to its highest level in nearly four years around midday eastern time here in washington it was trading above eighty two dollars per barrel west texas intermediate that's w t i traded in new york also rode the surge rising above seventy two dollars for the first time since july the trumpet administration has demanded that adversaries and allies cease to buy or deal with iranian oil by dove ember fourth or face unilateral u.s.

sanctions the deadline and opec's decision not to act seem to portend some price that billet here even perhaps more price increases in the near term. and we've spoken about on the program importantly the ten year anniversary of the financial crisis before but today we have a special treat for a year here to give us a firsthand look at lehman brothers because he worked there is run filler who is now a professor of law at new york law school is also serves as director of the financial services law institute and is a particular friend of mine professor phil or ron welcome. thank you commissioner howard yeah we can get rid of the commissioner and the professors but great to have you here ron let's do a little ties are apple that's always fun what was going on and how did lehman end up in the dead center with the emphasis on unfortunately the dead part of this

fiasco yeah i think you hit the right or it was unfortunate and i mean i spent fifteen years at lehman was a managing director and their global futures area and while that department worked well and efficiently and properly lima did double down on the real estate market in two thousand and eight unfortunately and the market went against that position and unfortunately on september the fifteenth two thousand and eight lehman filed for bankruptcy. you know we remember it well those of us there that all that we can run we're getting reports from the new york fed on what was going going on and it was disturbing but quite frankly you know i thought it was all going to go to work out so when lennon filed for bankruptcy on september fifteenth what were your thoughts that day. well ok so let me give you a little bit of background for your audience i decided in january of that year to

become a law professor and join the faculty of new york last call so i gave my notice and a few months later i left lehmann. i got a call back that morning of september the fifteenth for my boss at lehman ron we need you we just filed for bankruptcy and as you are quite familiar with we had about ten billion dollars in sac funds and we wanted to make sure that got returned back to the our clients as well as along with their open positions and really the good if there are good those by friday of that week by september the nineteenth two thousand and eight one hundred percent of the funds and open positions had been transferred out of our bugs not a dime was laws. something you should be proud of as well the regulations that the c f.t.c. has promulgated over the years in protecting customer assets. worked well we had the proper amount of assets in those accounts and not

a penny was lost and just for our viewers when it went when ron said segued funds that segregated funds those are the funds that were were held in reserve of the customer money that the investors are allowed to use only to as the destructed by the investors or there's actually a little portion of it that is allowed to be used but ron did you deal with the commission that week and if so how and what other regulators were involved or exchanges i guess sure so it was a man i was at the last call and my boss called me that morning early and we need you ron and i really spent that whole week at lehman brothers work very closely if you were called walt lucan was the acting chair of the c f.t.c. at the time spent a lot a lot to three times a day. two or three times a day. the c.m.a. fogs gill and kim taylor i was talking to them keeping them informed of what was

going on each and every day almost each and every hour of each day to ensure that the system was working clients were getting their money's transferred back. my role at lehman when i was there i was the principal contact with all the regulators the exchanges the clearing houses i was also spending time there in that whole week working with the london clearing house eurex clearing etc because those are the two other major clearing houses so i was there or brought back basically because my i was a principal contact with all the regulatory agencies on the clearing houses to basically ensure a work closely to make sure client funds were returned back to their customers and as i mentioned before the system work well yeah well it worked well it sounds like because you are sort of a superhero and lead in to that you know i'm curious and i know you know i don't have family said that yeah right well i'm sure they do so i'm going to go and this

is i know speculative ron but you know that weekend before the fifteenth they were trying to figure out if bank of america was going to buy lehman or or maybe barclays but those folks the banks they wanted some guarantee from the government and both tim geithner the head of the new york fed then and later the u.s. treasury secretary under president obama and ben bernanke you they know we don't we don't have that money but then after lehman was going down and they were going to enter this big bailout what turned out to be in seven hundred plus billion bucks i mean do you think those guys at that point said wow we could have gotten out of this for a lot less had we given lehman some money. well i you know i think you're right on point and fortune the circumstances took place over that weekend as you mentioned bank of america was going to buy lehman but instead they bought merrill lynch and. lehman didn't really have. to be their white knight to take over and so forth

barclays was going to be really at the end of the week whatever we remained and our accounts in both securities accounts and futures were transferred the barclays capital on the end of that wait on the close of business that friday the nineteenth but the u.k. government wanted some assurances guarantees as you just mention and they just could not be worked out over that weekend keep in mind and from the audience first backed of lehman filed for bankruptcy on september the fifteenth that was a monday morning. and the regulators in washington try not successfully but they try to try to. find a buyer a home for lehman and they took a i guess a big sigh of relief monday morning lehman filed for bankruptcy that afternoon as you mention they get notice that a.i.g. insurance company is about to file for bankruptcy but for that bailout and. needed

over one hundred and eighty five billion dollars and but for that they allowed by the u.s. government a.i.g. insurance company the world's largest commercial insurance company would have failed the very next day so is the irony then there's not a lot of books written on it are stories written why do they not bail out lehman they brought out a i.g. the legal fees in connection with the lehman bankruptcy so we all when i'm a law professor we want to make sure the lawyers get paid the fees alone were sold much greater than probably what the bailout would have been so you have to wrestle with did should they have put up some money the u.s. government to keep lehman alive and then find a buyer a week or two or a month later just to keep it go on and yet they chose not to and the very next day they put up one hundred eighty five billion dollars to protect. his company so a lot of irony and all of that super in arresting and thank you so much for being

with us ron appreciate it professor a lot new york law school ron filler thanks. thank you bart. and argentina's precarious economic position has taken a dramatic turn for the worse the governor of the argentinian central bank louis computer has resigned even as the mockery administration is currently negotiating for a potential fifty billion dollars credit package from the international monetary fund mr x. it comes just three months after he took the post following his immediate present festers resignation in june over the weakness of the peso a recent interest rate increases notably failed to halt the pesos slide a reputed ally of the economy minister who reportedly has clashed with him over policy will now replace him at the central bank want to fishel central bank statement cited personal reasons for the resignation that seeming spin is unlikely to convince or calm investors the computer resignation immediately pushed the

argentinian peso which has lost more than fifty percent of its value this year even lower to just over thirty nine pesos to the u.s. dollar. and time now for a quick break but hang here because when we get fast steve malzberg tells us about sirius x.m. buying music streaming company ten dora for three point five billion bucks and our forward fashion correspondent. tell us about michael moore's purchase of for such a for more than two billion dollars plus molly barrows from ring of fire network is back to help someone the dirty details of d.n.a. testing kits as we go to break here the numbers that closing bell back in a flash. saying

you know we need to. and by force that's a position that's also the position of the guy that. can do that. goes in any case even though there is a number of chance they will have to go back to the to the country. it's hard to imagine decades after the war a nazi don't it was still active. in the nineteen seventies crittle had as the chair of its bowed a man convicted of mass murder and slavery as a german company developed so that to mind a drug that was promoted as completely safe even during pregnancy. to have terrible side effects what has happened to my baby anything. yeah she said she's just. submit to mind victims have to this day received no compensation they never

apologized for the suffering that not only want the money i want the revenge. welcome back sirius x.m. has agreed to buy music streaming company pandora for three point five billion dollars the deals are expected it close in the first quarter of next year and will create what very well could be the world's largest audio entertainment company in two thousand and seventeen sirius x.m. spent four hundred eighty million dollars for a nineteen percent stake in pandora so some of the rivers saw this as one coming rather here to explain how this marriage might benefit both companies assertive t.v. and radio commentator steve malzberg safe thanks for being with us you're becoming a media expert and all around know it all on these things and we sure appreciate it

give us the background of both sirius x.m. and pandora and what do they offer. first time i've ever been called a know it all and it's a good thing thank you bart well ok first of all you got serious you're in your car you turn on the satellite you listen into the big names like howard stern or maybe you're listening to their music offerings which are basically genre related you get the seventy's eighty's ninety's smooth jazz hard rock whatever that kind of thing thirty million subscribers. and that sirius a basically it's in your car pandora one of the most of well known kind of iconic oldis names on the internet the first to offer music streaming in fact and they have two services they have an on demand service for ninety nine a month which will get to and they have a free service they have seventy million the listeners not subscribers but listeners and you basically you programming pick your own radio station you make your own radio station with your favorite artists your favorite songs and you

listen to it but they do have advertising in those those that option as opposed to paying on demand where you don't have any commercials again i remember and pandora and i may test you know it all miss on this but in that the one that had all those copyright issues right at the beginning when they started i think that we were it was even some were even going to survive right but it turned out ok yeah well this is one of while this is still a little problem and what one of the things that they hope sirius could do for them is renegotiate they pay they lost one hundred million dollars and seventeen and sixteen that they had to pay to the music industry for copyright they pay the highest copyright. moneys of any of the companies streaming music so they still are saddled with that and they have to overcome that yeah because you know first when they started and i'm told i didn't do this myself i'm told that people would use it and it's like you say you could get all the music that you like and there was no

advertising but they were ripping it off essential and so do you think given that there's been this bad overall branding in the past that it's beyond that but you think sirius x.m. will keep the pandora brand steve. well that remains to be seen look a pandora's of the undermanned services fourth out of four spotify is eighty million subscribers and there's apple and amazon so door really needs of boost they have new management their c.e.o. is very excited about this think that this is going to help with advertising subscriptions and it's going to be a great marriage and it's going to make them the biggest entertainment company in the world but really can three point five billion dollars of a stock purchase to do that as fur as for a serious bart you know they they see that something has to change you know a lot of people think that auto and individual auto and their ownership has peaked and that's their main source to every car now as an apple jack so what do people need satellite radio for so they need to complement find

a synergy with pandora the music stream or and they use it as a hedge against new competition they you know so everybody has something to gain here everybody has a lot of hope here but sirius says that right now and there's a key words they use right now there's going to be no changes they'll be to brands no changes to the listener immediately so i think there will be some change some modernization to streamline that stream alighted and presented to the consumers kind of a new product eventually interesting entertaining and light in the know it all conservative t.v. and radio commentator steve malzberg thanks a lot steve. michael moore is the clothing fashion company is buying the italian luxury clothing brand versace for two point one billion dollars the announcement was made earlier today

as part of the deal the blackstone equity firm or poorly will sell their twenty percent stake in versace to course for chorus the less glamorous but more visible and prevalent of the two brands the deals. follow ups follow up to the acquisition of luxury shoe maker jimmy choo core seem poised to leverage versace's prestige with their own market presence with a plan to increase the number of or saatchi store locations from two hundred all the way to three hundred versace's creative director who's known to be outspoken and right on target is donna tellers saatchi who took over twenty years ago for her brother was actually murdered she will reportedly continue her role after the merger ms vers saatchi who has led the fashion house for these two decades said the deal will allow over saatchi to reach its full potential and the hill here help us understand more about it is our in-house board fashion correspondent trinity chavez

who joins us from our new york studio trinity thanks for joining us give us both the lowdown on both companies how large are they within the industry. so far these companies are both leading brands in the fashion industry both of which are billion dollar companies her stock she has long been recognized as one of the world's leading luxury fashion companies but is still a rather small fashion house compared to michael kors which is really building up its luxury brand just last year it acquired jamie to its quest to become of global luxury group and course could help to me to get closer to those goals because corps is a much bigger company ever saatchi this purchase could really be great for the company as well it could increase the brands rates lower the cost and employ and improve the supply the supply chain tell us trinity about the competition in this space i mean so assuming this is a great thing which about why they're spending this money for michael kors who do

they compete with and is this going to give them a big leg up. well there's been mixed reactions to this question while it looks like the move can get michael kors one step closer to its goal of becoming a major fashion conglomerate it's an odd merger for saatchi is one of the most exclusive names in luxury fashion being brought under the umbrella of a brand that's known for selling high end items at affordable prices some of its current competitors are other brands like coach kate spade and tory burch but now they could be opening the doors to more competition to more luxury brands so it's really an odd fashion moment at the moment so not to mention that michael kors just bought jimmy choo eleven months ago so it hasn't really integrated into the company and it's making investors nervous and we saw that yesterday when shares took a hit on monday trading after waltz the wall street journal reported at the time about the possible acquisition shares saying eight point two percent are

a very interesting well we'll look for you out there with the jimmy choo shoes and the michael coors and the restart you stuff you're always helpful on these fashion forward. thanks trinity. thank far. and consumer d.n.a. testing kits are a booming business last year more than twelve million people had their d.n.a. analyzed with direct to consumer genetic genealogy test it's a lucrative business to the rise of d.n.a. testing is created a market that is spector to be worth more than three hundred ten million dollars in the next few years and that's not the only way some d.n.a. testing companies are making big profits with some of the dirty details here once again pleased to be joined by molly barrows legal journalist with the ring of fire network molly thanks for being here as these kids are becoming increasingly less expensive people are given as gifts and things more people are using them but what does their data or where does their data end up. that's

a good question who actually owns this data and there are a number of issues that come up with this whole idea of giving your d.n.a. to a company having them test it providing a little information to you maybe you need it for medical reasons maybe you're just interested in your genetic history but what happens to your data after you've gotten the answers that you want and really a lot of these popular companies like twenty three and me living d.n.a. ancestry dot com they have a couple of forms and they vary from organization organization to basically have a consent form and a storage form and they can be kind of grey but if you agree to store your data then twenty three and me you're sort of loosely agreeing to allow them to access it and analyze it with new technologies and if you move on to a consent form then you could potentially have that same data of yours used in other research projects in the future now if you decide that you want to change

your mind you go online you say hey i don't want my results to be able to be seen by other people i want them deleted then they will say well it's possible that your d.n.a. has already been given to another researcher. project we can't wipe it away from that current research project if it is being used it won't be used for a new research project so it's sort of vague nobody knows exactly who owns it but you can bet that most of these companies are selling your dad or perhaps partnering with another company mostly pharmaceutical companies or medical research groups to use it for exploration of new medicines so glad you're covering this i mean we're all concerned about our private data you know what websites did we visit and displace book at the data but you know this is us this is our d.n.a. i mean what's more personal than that what are the businesses who are these companies that are making the money off of this data. well some of the bigger mainstream companies are you've got a living d.n.a.

and ancestry dot com twenty three and me and again going back to the pharmaceutical development companies the new medicines that are being developed for instance this one particular company glasgow smith kline they committed three hundred million to twenty three and me to be able to access their data to develop new drugs because that seems to be the future you've also got some other genetic testing companies out of california health and another that are collecting the same data and using it to develop new medicines new technologies because that personalized medicine they feel is where the real profits are going to be in the future so they plan to use this data to find new drugs find new treatments for patients but the funny part about it is eighty percent of these people are giving consent to have their data used in this research perhaps they feel like they're making themselves part of something bigger i just have a little bit of time ali but you won't be surprised for me to say this seems like an area for future regulation you agree. absolutely and you hit on it earlier when he said everything from smartphones to google everybody is tracking your data

wanting to utilize it to make more money off of you and that's essentially what the federal trade commission warn people about over the holidays last year they're saying hey it may be interesting you may have valid reasons for wanting to use these online companies or these genetic testing home kits but the bottom line is that's you you're giving them your building blocks to make you there's no ownership of that this is your personal data and one of the country's largest out of brokers axiom basically calls it ethical data use there's this feeling that hey your data really isn't you shouldn't have an expectation of privacy but trust us we're going to use it ethically so it will be interesting to see if the government like the f.t.c. branch or someone else comes into starts to regulate but right now there are no steps necessarily i believe that are pending to do that but it's in it's in everyone's ear they're talking about it well wait till they see this in other interviews molly burrows legal journalist with ring of fire network thanks a lot molly. they start. and that's it for this time thanks for joining it catch us a boom bust on you tube dot com boom bust r.t.

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