captioning spoored by wpbt >> we just can't have initutions that are large enough, connecd enough, that theifailures have catastrophic consequenc, and there not be a poinaccountable for their overall regulation >> paul: the president top economic advisor says efing up finaial regulation is still on the administration's to-doist this year. coming up: our elusive terview with lawrence summer >> susie: fed-exelivers for wall street. the ovnight shipping giant served up nice stock gains, as it bsts its earnings outlook. >> paul: tonight's market monitor est says the stock market is keepinpace with the recovery. he's eric ristuben, chief investment officer at ssell investment

susie: then, it has been eight yes since the terror attacks of 91, and there's still no morial at the world trade center site. from politics to t recession, we look at what'holding up the reilding process. >> paul: i'm paul kang. >> sie: and i'm susie gharib. th is "nightly business report" for friday, septber 11. "nightly business report" is made possib by: this programas made possible byontributions to your pbs statn from viewers like you. thank you. >> susie: good evening, everyone.

wall street is readying for visit from presidentbama. >> he'll be on walstreet delivering a majorddress about the financial crisis o the anniversary of theollapse of lehmann others. 's the event th many believ triggered the greatest economic isis since the great depreson. tonight, the preside's top economic advisor, larry summers, updates usn where things stand with the economy and the nati's financial system. washington bureau chief darren gersh met with summers and asked him how we're doing one year after lehmann? >> aer lehmann, the ecomic discuson was whether the recession would turn into depression. day the economic discussio is en the recession is gng to end, and most experts are looking for signifant economic growth in the ird and fouh quarters of the year. so i thinke've come a long way. at t same time, with unemployment well above 9%,

kely to remain unacceptably high for a few years, no one ca be tisfied with wher we are. 've got a great de of work to do, making sure tough stronger fanci regulation that this can't happen again, maki sure that this expanon is a robust d firy groued as i possibly can be. i want to ask you, oner after t of the banks have goen even gger. i'm wondering, are we me at risk from banksthat are tooig to fail now than we were even a year ago >> we've gota lot t do in terms of finanal regulation. weust can't have institutions at are large enoughor connected enough tha their failur hasatastrophic nsequences. and there not be a point of accountability for their overall regulation. 've got to have frameworks that enable t managemt to faile for largefinancial initutions, just like we do for small ban.

we've got to have way of protecting consurs that are more satisfactory an the es we've had in the past. and, clearly, we nd to eliminate what was jt a pervasive problem, even a year ana half a-- institutions moving from regulator to regulator an effort to rede capital reirements, to reduce other kinds of standards. ght now, there's still very substantial riskaversion, very substantial inhibion about exssive lenng, t that makes is the time to put in place the right kd of regulatory framerk so we don't get e kind of bubbles that we've had in the past. >> youtalked about a framework to deal with a future lehmann brotrs, a resution authority. that would help unwind ese big compies. one the concernsi've heard om some critics is that is

could beeen as aermanent path, way to use public dollars whout congressoting on it in a cri. is tt a concern? is that a fr criticism? >> well, i think it's importt design issue, but the crial feature woulbe to permit the management ofab unwinding in such a way that you didn't need to bail out all ofhereditors but instead make it possible for ceain classes of creditors to accept responsibily without being bailed out,nd without causing the ki ofystemic risk that you saw velop after lehmann. >> unemployment-you have called the unemploymt rate unacceptably high. that means that the administration-- we n expect the ministration to have new initiatives job creation in the cing months or t comin budg? >> the adminisation's overall economic program, the recovery

act, has operated an functioned more rapidly, i think, tn any econom expansion program in memory. but as yet, well under half of the nds under it have been disbsed, and they're going to be disbursed going forward, and diursed-- disbursed at a growing rate. so these a great dea more we're going to do through th recovery act, through our approaches to the housing market,hich are gaing, gang-- >> even with that-- >> so-- >> there's a great deal more i'm sure will come foard as the present talks about subjects like iovation, subjects like the ture of the manufacturing seor that will point to undergding this economy with a strong foundation. >> okay let mask you this-- some of the people in e markets that i'vealked to say the next bubble they're worried

about is treasy debt. there's so much out ther and they think thainterest rates could go higher and this could be a bubble in treury debt. is that a fai concern here one year aft lehmann brothers? >> i ink it's very impornt that we manage the nation's finances as careful and as prudently as we can. that'sy, action going rward tossure that as theconomy recovers, the federal deficit cos dow on a substantial scale, that we do things like e president's trng very hard to do with s health car legiation, thatconstrained the growth of major parts of federal cost, o which health care is probab the most importt. those e very imptant things do if we're going to have a reasonab and sound treasur market going fward. >> larry summs direcr of the nationalconomic council, thank u for your time. thank you.

>> sus: here's a brief rundown of today's top sries. fedex boosted its profit outok foboth the current and next arters. thshipper says an improving global economy and sble fuel prices a helping its bottom line. microsofand yahoo today confirmed the partment of justice has asked for more details about theionline advertising agreemt. both firms are cooperating wh the quiry. and consumers are feing a little betr about their economic prospts. the unersity of michigan's consumer sentiment svey hit a three-month high early ts month, risg to a better than expected readi of 70.2. consumer sentiment iclosely watched as a gau of future spding. >> pau wall street opened moderately higheas investors atteted to extend their nning streak to six-straight sessions. but an early 15-pot advance in thdow turned into an 18-point loss bnoon as profit takers moved in. neitr that rise in consumer sentiment nor the upbeat forecast from fedex could ke the dofrom sinking to a 50- int mid-afternoon loss with the nasdaq off tenoints.

the relatively milpullback encouraged a late flurry of buying which trimm the closing loss. thdow ended the day off 22.07 at 9605. it advanced in tee of this we's four sessions for a net gain of 164.14 points. the nasdaq lost 12 to 2080.90 today. it also rose three timeshis week and added 62.12 poits overl. ths&p 500 fell 1.41 to 1042.73 today, and for the shorted week rose 26.33 points. in the bond marketthe ten- year notrose 2/32nds to 102-10/32nds, puing the yield at 3.3.

>>usie: on this september 11, americans spenthe day reflecting and rememring the terrorist attas eight years o on the world trade center, the pentagon and united aiines flight 9that crashed in pennsylvania. at ground zero in new york, crowd of mourners gather in rainy, windy weather to serve thanniversary of the worst tacks in the nation's histor inashington, president and mrs. oma observed a moment of silence on the white houseawn. meanwhile, the queion for many americans today. what's being done to rebuildhe world trade center site? scott gurvey reports >> reporter: eight years and it's still basicly a hole in the ground. the walls what will be the ba of the new freedom tower, now officially oneorld trade center, are filly rising above street level. some day, we are told,here wille a park, a memorial, a muum, retail stores, a

performing arts centera transit station, and other ce buildings. but we don't know en. construction is caught ia battle oveplans and financing between thport authority, which owns the ld. and larry silverstn, who leases the devopment rights, neither would lk to us for this story but nicole gelinas of e manhattan institute for poli research says rt authority polics are to blame for the delays. >> they've gotn all of the rules muddd trying to control the al estate development's part of it, in ter of design and cotruction and timelines, as well as tir own part. d it's just all gotten into big confusio and stting now, they should say, "we're going to do our part, we'll let mr. lverstein do his par we'll do out part." and i think this will remove lot of the uncerinly and help wi the financing bottlenecks as wl. >> reporter:cross the street, on land controlled, silverstn quickly rebuilt another ilding destroyed on 9/11. the new world ade center 7 opened in three ars ago. insurance money is helping with financing for the frdom tower. but plans to devop other buildings have bn hit by the

recession anthe credit crunch. so experts say the port authority will have to sply financing because commcial lends fear the recession has reduced the demand forffice space. but stephen siegel of b. riard ellis says in this regard, the delays he actually been helpful. >> freedom tower won'tome until 2015. d i'm not so sure mainstream tenantwill go in there in any great numbers anyway. the next buiing is building number four, wch foundations are in for but it's going to take at ast until 2013 before it hits. and that time, i fully expect us to be significaly turned around and some real gwth again. >> reporter: silverstein i supposed to construct thre buildings at the worldrade ceer site in addition to the freedom tower. that could add as much at million square ft of office space to the lower manhaan landsce. scott gurvey"nightly business report," new yor

>> susie: a former top a.g. executive cod soon face criminal fraud crges. published reportsay federal osecutors in new york are preparing to impanel a gran ju. seph cassano, who ran a.i.g. financial productsnit, is at the cent of the investigation. losses from his department lt a.i.g. on the verge of clapse last year, and led to a 80 llion bailout for the firm. investigators want to kn if cassano and her executives misled investors about t value of mortgage-related contras. >>aul: susie, cassano says he didn'to anything wrong, and prosecutorare not commenting on the ce. w, let's take a look at our stocks in the news tonig.

>> paul:nd those are the stocks in the news tonight susie. general motors today canced temporary pay cuts for wte llar workers, saying the company needs to keep everyo movated. this spring e automaker slashed pay r salaried staffers by as mh as 10% to presve cash ahead of its trip through bankruptcy. today's ve covers about 27,000 workers. but g.m. c.e.o. fritz heerson and other tomanagers won't see their pay stored. their salaes are limited beuse of the terms g.m. agreed to whe accepteloans from the governme. >>aul: monday, we kick off our special series "lesss from lehman we look back at the bank failure, and ahead to at's next for the financial secr. >> susie: u.s. clinicatrials show a single dose oswine flu vaccine isnough to protect healthy adul. the findg could double antipated vaccine stockpiles

th fall and leado more peopleetting immunized faster. world health officia had thought two shots wod be necessary to protect agast the h1n1 virus. sanofi aventis glasmithkline and novart are among the firms king the vaccine. >> paul: the firstiability case involving mer's osteoporosis drug fosamax end in a mistrial today. jurors said deliberaons had grown ly and they couldn't reach a verdic in the new yk trial, a florida won claimed the drug caused dental and jawroblems. noord yet on a retrial. mek faces 900 suits related to fosamax, with patientslaiming it caused jaw tiue to die.

susie: here's a look at what's happeng next week. our friday market motor guest is rert morrow, editor of the institutional adviso service. on the economic calendar: tuesday: july business inventories and thaugust reports on retail sales d producerrices. wednesday: the consumer pric dex for august is released with august industal producti. thursday: weekly jless claims and august housing starts. >> paul: mguest market monitor this week is erik riuben, chief investment offer for client investment stragies at russell vestments in tacoma, washington.

>> eri, welcome to "nhtly business report". your first visit as a "market monitor." >> delighted to beere,aul. thank you very much. >> paul: many analys and investors think t stock market has gotten ahd of itself. whato you think? >> i don't think it has. now, obviously, e future is hard to predict incredibly accuraly, but what we think the market has reall done is recover fr a disaster scenario from kind of march to mid-may. since may it been really beginning to forecast a recovery econically. consensus has us at afairly mild recovery, certainly versus historical staards. so we thk the market's got it right. therare a let of things we're going to need to e in ter of positive economic datathis quarteto confirm that it's got itight but right now we ink 's basically got it right. >> paul: what invtment strategy are you telng your client to follow right no well, we'-- as you know, 're a wl-diversified instor, but when we loo at

equities, we like equities. we tnk they're an attractive value in general. and there are some sectors withinquities we very much likend financials and technology are two of the leading sectors inhat area. >> paul: financials and chnologies are your favites, right? >> yes, rht now. >> paul: yeah, okay, wellof course it changes. w about some individl stock recommendationright now. >> well, in e financials, i'll give you two. ll start with goldman sachs. ldman sachs has had very good run recently. >> pl: yes, it has, wow. >> yeah, vy good. real you look at that sto, they have two of theirargest coetitors from a year and a half ago, bear sarns and leann brothers, no longer exist. theyave a steep yid on interest rates. cash is zero. they can lend and d business at a higher rate than zero. that's a good thi for anyby in the finanal services business a they should be able to accumulate market are given the fact the compeors are not

in the spac as much as they used to be >> paul: and the trangymbol is g.h. how about anotr one? >> sure, sa basic area. another one is lls fargo company, w.f.c. wes is a beneficiary-- in some ways-- of the worst-case scenar that was priced into the market in march. really, people we worried that the finaial services sector would collapsend these banks would be worth nothing. they also were-- somebody wh actually acquired a large bank in wachovia, ty bought that bank atire sale prices. sinc disast haseen averted the's a lot of upside in terms of their abilito leverage the what could you haviassets on their bbs shes and still tring well below their three-year high. >> paul: we've seenwo of your favorite fancial stocks. how about the technology group? what do you like there? >> qualcomm, qco"f," one of the

principal chip providersor the mobile technology industry. so you're look at thin like research imotion, blackberryies and iphones. paul: they get business from them all >> they get to sell toll. >> paul: we have time for one more technology favote. >> we like dl. i think everybody knows dell is dell. ere is going to be a systematic rtocking oft hardwart the consumer levelnd at the corporate leve we're already seeing that in some of the guidanceell is providing d it's going to be positive, we tnk, for them. >> paul: interesting selection there, financial and technology. erik, do you persally own any of the stocks youention or have other disclose to make? >> no, i n muscular dystphyes that own-- mutual naundz o these stocks. i do own them inrectly. >> paul: ver interesting. i want to thk you for being th us.

>> thankou. >> paul: my guestrik ristuben of rsell investment. >> susie: recappintoday's rket action: wall street end five-day winning streak. thdow drops 22 points and the nasdaqoses three points. to learn more about eñatories in tonht's broadcast, to watch our streaming video anto take part in our daily bl, go to "nightly busess report" on pbs.org. you n also email us at nbr@pbs.org. can the consumer help pu this economy ouof recession and into recover tonighs two ways to play takes a look. re's kevin depew of minyanvill >> reporter: it's only septber, but pretty soon were going to be inundated wi gloom and doom about the upcing holiday shopping sean. a desperatelweak consumer is now a foregone conclusion, a fothat reason alone bears might want to consid a more optimistic ocome. the idea thathe u.s. consumer must retreh due to high debt levels is simply false. let'look at the real numbers. 30% of consumers havno debt

whatsoever. 40% to 50% have reasonle debt levels. that lves just 20% to 30% that havgotten into trouble. if t other 70% to 80% are able to spend and csumers prove re resilient than expected, look out above. consum credit for july released this ek showed an unprecedented decle in credit demand. consumer credit has now deined for six consecutive mohs and is falling at the faest rate nce 1944. why is this portant? two reasons: first, it showthe extent to which consumers feel like th need to repair t household balance sheet, which is gointo pressure consumer ending for the critical holidayeason. second, virtually all vernment attempts to re-ignite e credit boom ultimely depend on coumer demand for credit. if nothing else, i admire th timism, but the numbers just don't agree wi your view. susie: that's nightly business rept for friday, september 11 i'susie gharib good night, everyone. angood night to you, paul. >> paul: good night, sus. i'paul kangas wishing all of you e best of good buys. "night business report" is made possible by:

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