feinberg, we're watching the t.a.r.p. paid back at a rapid pace, wells fargo, citigroup, and now a story in the financial times that aig is listing its ash shn insurance group, is going to raise up to $20 billion, they're planning on paying back. how long do you expect to number this position? >> under the statute i serve at the pleasure of the secretary of the treasury. and the jurisdiction of my office. continues uninterrupted until all of the pertinent t.a.r.p. loans are paid back to the taxpayer. from what i gather, even though some have accelerated their payments, like bank of america and citi, other companies that are subject to my jurisdiction acknowledge that it's going to take a good deal longer, no matter what. so i think that the office of the special master will be around for some time to come. >>. >> reporter: if you were asked, would you do it again? >> you do not say no to the secretary of the treasury. and if secretary geithner asks you to do something, i suggest you do it. and i serve at his pleasure. and

feinberg's hands. only going to allow him to consider less than half of the recalled vehicles as part of the compensation plan. so the scope we need to listen to, but the scope likely is going to be far too narrow. as far as the compensation is concerned i haven't seen the final numbers, but my main concern for the compensation would be, this is unlike what mr. feinberg has ever done before. because you have a significant punitive component here. in other words, not only is gm at fault for what happened with these victims. but there could be punitive damages awarded because of the egregious pate of their conduct. >> which then brings up the question, will people opt in for this? because there will be some people who look at this and say, threat's throw a hypothetical number of $8 million per fatality. some people will say this is not about the $8 million, if i go to court i can get some punitive damages here not just about the money but i want to really put some sting into general motors. is that a pot

feinberg. >> that's right.s of thousands of people who didn't provide any documentation. we do things with a handsha handshakedohandshak handshake down here in the gulf and you ought to pay me on that handshake. >> we have a little bit of breaking news. the cftc and barclays, they are settling this libor issue. >> it's not a day until you talk about the london interbank offered rate, is it? >> no but it's an interesting case. >> did i even get that correct? >> it's an interesting case. we should get to it. >> maybe the attorney and settler of all disputes -- >> have you ever probed libor? >> no. >> there's a probe into allegations that some of the bank employees manipulated the london interbank lending rate. it was what we used to dictate in 2008, 2009. now we look at what's happening with the ten-year note and spain and france and germany. this is what we used to look at every morning when you first came in. the idea can you manipulate this and set unease into the market is a pretty huge issue. >> we're going

feinberg. there is no fairness in this world.y it happened but that it happened and now they're bereft and upset. >> ken feinberg joining us on cnbc going over the final application numbers. that 4180 in terms of applications, they're still processing these for the next couple of months and maybe a couple of months down the road we could see the final death claim number which is at 51 go a little bit higher. >> i think so. >> guys back to you. >> phil i do have one question. i should know the answer to this and i don't. if someone hasn't met that deadline, ken just made it clear that deadline's not extended. do they then have the option of taking this to the courts? >> absolutely. in fact, even if you filed a claim, we haven't had any yet where people rejected the amount that we've offered, but if a claimant files a claim or missed the deadline they always have the voluntary option of filing a lawsuit against general motors. >> but we should point out, becky, you then are running the legal question that's been out there all along

. >>> coming up, ken feinberg is coming up.as co-administrator of boeing's victims' fund. futures are flat the dow's down less than 10. s&p off 3 and change nasdaq indicated to open down about 20 watching "squawk box" on cnbc. was ahead of its time. still, we never stopped making it stronger. faster. smarter. because to be the best, is to never ever stop making it better. the 2020 c-class family. lease the c 300 sedan for just $429 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. there's one thing you can be sure of. they're changing by the nanosecond. that's why cognizant created a unique engineering approach to design and build new digital products. learn how cognizant softvision designs experiences and engineers outcomes. ♪ cool. ♪ cool. oh, wow. you two are going to have such a great trip. thanks to you, we will. this is why voya helps reach today's goals... ...all while helping you to and through retirement. can you help with these? we're more of the plan, invest and protect kind of help... v

ultimately, the cost of the program will be independently determined by ken feinberg and ken feinberg charge that we stock in the send quarter is our best estimate of the potential exposure based on the data that's available to us and work that we did with outside third party actuaries. there's a wide range of potential outcomes associated with that. but the $400 million is our best estimate. as we work through the program we will continue to update that exposure, either up or down based on the results. but at the end of the day, again those results will be determined by ken feinberg. >> and chuck one last question, and just to put a point on that you also say in your release it could increase by another $200 million. how many vehicles did general motors sell to people who came in with a recalled vehicle and said, i don't want in anymore, give me something else? >> through the second quarter, that population of customers that were imed by the ignition switch recall we have old over 6,600 vehicles to those customers. >> those are people who said i'm done with this and i want a differen

kenneth feinberg has the latest on the claims process for the automaker.pecial visit with nbc news legend tom brokaw. he's going to tell us about a business that many economies depend on during this time of the year. we have more squawk in just a moment. hey matt, what's up? i'm just looking over the company bills. is that what we pay for internet? yup. dsl is about 90 bucks a month. that's funny, for that price with comcast business, i think you get like 50 megabits. wow that's fast. personally, i prefer a slow internet. there is something about the sweet meditative glow of a loading website. don't listen to the naysayer. switch to comcast business today and get 50 megabits per second for $89.95. comcast business. built for business. >>> welcome back to "squawk box," everyone. we've been watching the futures and thaifr been under a bit of pressure this morning. s&p futures off by five. the nasdaq off by ten. and check out shares of general motors. today is the fourth anniversary of the company going public again after the bailout. raising $20 billion afte

joining us is ken feinberg of kenneth feinberg law office.'s great to see you one of the big questions that this entire pandemic and the response has created is the idea that we have effectively socialized the losses and privatized the gains all over again. everybody wants to get this economy moving as fast as humanly possible but there are going to be winners and losers picked along the way how should it be done? >> that's democracy. you asked congress in consultation with the executive branch, they decide the prioriti priorities what's very important is there has to be bipartisanship if anybody feels that the program is polarizing, it's shameful i think what's happened here is an attempt to come together, work out a common blueprint and implement that blueprint all the talk in the world about how great the government is in responding to this crisis, you don't get the money out, you don't get it out fast and people have to see the results. that's the key >> let me ask you this jamal was on cnbc last week talking about this in the case of the

this report that steven feinberg may be brought in to run everything, does that help or hurt?now, i really think reince priebus can be a good white house chief of staff if he's got the authority to manage the white house staff. >> we hear he might not have a lot of authority. there was a lot of people trying to push him. what do you know about that? >> i don't know anything about it. so i won't comment. >> all right. i guess, yeah, you don't think the president should have stood by flynn, do you? >> no, i think -- >> we know who flynn's enemies are. you know how much the last administration didn't like this guy. should he have stuck by him? did he get pushed out? >> i think he was correct to ask for the resignation. and i think general flynn was correct to resign under the circumstances. >> all right. senator, thanks. we appreciate your time. thank you. >>> when we return, jim cramer will join us live from san francisco with his take on today's top stories. "squawk box" will be right back. gofter ithe same way? y chasing afr short rm . gofter ithe same way? y instd etting ught

kenneth feinberg is here with us this morning.ou seem to always get some business when bad business takes place. >> you pick up a newspaper and you hope you won't get the call. but you do, so you offer your service like everybody else would. >> so how does this happen? did you just get a call out of the blue last week? >> i got a call from the mayor's office. and then a call from a couple other funds down there. so i was been consulting various funds trying to help them fashion some sort of program. they have millions of dollars of un unsolicited funds. >> how much is it now? >> i think it is over $10 million. how you coordinate that, get everybody together to determine who is eligible is a challenge. >> so how do dyou think about? >> well, you have to determine how much you have. how much goes to the families deceased and how much goes to the physically injured. who gets the money? there's always a dispute when there's money to be had. mr. feinberg, i'm the sister of the deceased, he didn't like his brother. make sure he doesn't

anyw anyway, government pay czar ken feinberg increased base pay at u.s. firms. on average base salaries rose 14% to $437,896 a year. 89 of the 136 employees under the feinberg review got a raise in base salary. feinberg will be testifying before a house oversight committee on executive compensation at 11:00 a.m. eastern this morning. it sounds like he does not want the scope of his position to be expanded to look at any other firms. he's asked congress in addition not to do that, that this is something to look at these seven firms. >> that final comment in the very first article where it says you're going to hear it from both, he's in a very tough position. he hasn't gone far enough and he's gone the too far. >> and maybe that means he's doing something right when it seems that both sides are irritated. >> i don't know. i was reading the journal today on some of what we are now left with in term of compensation. it's hard. if you have a certain viewpoint, you're going to think that the government probably -- we own these firms now. >> and you want them to do wel

as for the victim compensation fund run by attorney ken feinberg, she has not talked to ken feinberg since the fund was set up. >> i talked to ken at different points as we were going through and accomplishing the protocol. since the protocol, i have not talked to ken. he's running an independent process and that's the way we want it. i have utmost respect for ken and how he's doing the project, but there's a clear separation. >> reporter: by the way, the first awards from the first victims compensation fund we expect to come out within the next couple of weeks. ken feinberg started taking applications, if you will, or submissions from victims' families. back on august 1st, that is. so they expect to have those in the next couple of weeks as we look at shares of gem motors. connectivity is coming to the automobiles. next hour, you do not want to miss a "squawk box" exclusive sitting down with the chairman of the ford motor company, bill ford, as he talks to us about his vision for the autonomous vehicles. some of the technology is already here, but the question is how quickly we see

let's bring in ken feinberg from washington d.c.you announced this program yesterday and that you were hired by volkswagen you made it clear that this is just the beginning. you still need to set up the parameters. what do you invision in terms of the types of remedies or people that will be able to come to you and say, look, i have a diesel volkswagen model and i deserve to be compensated for driving a vehicle in violation of violation scandals. >> the regulators are looking at it with volkswagen and on top of what the regulators are requiring, what will it take in the way of protocol or compensation or some other benefits that will voluntarily entice owners out of the legal system into this program for promp remedy and that's what we'll have to see. >> can you see one remedy being buying back the vehicle. somebody comes to you saying i've got this car and i don't want it or want to drive it. i don't want to have it fixed. i want volkswagen to take these key and pay me. >> a possibility to invision. sure it's a possibility. i think

the company doesn't technically need the okay of compensation czar ken feinberg but after the publiche $165 million in bonuses in march, any additional payouts are viewed as a potential land mine. the payments are said to be delayed from last year, due next week. here's the take of the normal take here. isn't that incredible, after a 10 for 1 reverse split. it goes straight down. here's the daily news. aig heads back to the pig trough. so if you were to -- honestly, it's problematic. you cannot -- you couldn't pay out $10. you couldn't. >> i think you could maybe pay out $10. >> no, you couldn't. carl -- >> $10, not $11. >> this is $2.4 million and it's 48 executives. i don't know who gets what, but that's about $60,000 -- >> the last -- the last round of outrage was about -- >> is that schwarzenegger 60,000? >> i'm doing the math. it is $60,000. >> it's problematic. it just shows you how difficult -- >> this is $2 million. >> $2.4 million with 48 people. it just shows you, it is problematic. the taxpayer feels like the only reason aig is around because of the money the taxpayer puts

including john paulsen, andi biel, and steven feinberg. also including david malpass, dan dimico.y at 8:40 a.m. eastern. >>> our all star jobs panel this morning, douglas holtz aikin is here. he's president of the american action forum. jeff manbrake part of the rediscovering government initiative. and our very own senior contributor larry kudlow. welcome to all of you. great to see you. >> this is great. this is the a-team. >> you want to comment on donald tru trump's economic team? >> all brilliant people. eight guys -- i couldn't make the cut. no way. this is really the creme de la creme. but i will say this just to start the show off. mr. trump is going to speak at the detroit economics club on monday and in general terms, this is going to be what i call a big bang economic growth program. with lower tax rates, lower spending, lower regulatory burdens, and what's happened over the last few months as people have tweaked this around, we put in much more growth and far lower budget deficits. even douglas holtz 'kin is going to like our plan. >> you promise that. >> $9.6 trillion

ken feinberg will announce new rulings today.loyees at aig, citi, the automakers as well. bank of america could name a new chief executive as soon as next week according to the journal. robert kelly an ongoing candidate for the job but until b of a paid back t.a.r.p. money those pay restrictions were quite an obstacle. u.n. holding climate change summit in copenhagen. some protesters amid the policy, anne, that's prying to be worked out. >> reporter: yeah. it's been amazing. the protests in copenhagen have been mild in the first week of talks. we're expecting they'll pick up over the weekend. in fact, organizers say there's going to be a protest of some 40,000 people tomorrow. but today as the international chamber of commerce held a meeting here in copenhagen in the red brick building behind me with ceos from all over the world to talk about climate change and business, about 150 young people marched through the streets of copenhagen tried to get to the plaza. they were stopped by police. 61 of them have been detained. and they

loan toes submit executive pay xankz compensation plans to ken feinberg. trader andrew hall, his $100 million contract with citi has been in the headlines a lot lately. now hall's contract may not be subject to pay czar's oversight because it was signed before february 11th. but another source says feinberg still has plenty of flexibility, using his authority on a case-by-case basis. that's the big question, will he get his money? will that unit stick around at citigroup and -- >> or is he grandfathered in? >> but if he doesn't stick around at citigroup, it's a big question, too. this guy is a big rainmaker. >> did they call him? >> there was a report the other day that they had called him to see if he was interested, they called him and he made a bid and apparently they didn't go with it. >> fasb is reportedly holding a board meeting today to discuss a proposal that financial instruments be carried at fair value on balance sheets. no immediate action is expected on that proposal. if there's eventually a change in the mark-to-market rule, it could impact e

this feinberg guy, he's a reasonable guy. seems like he did a decent job with 9/11. >> a lot of companies said, fine, we're going to raise our base pay instead of salaries for everyone, anyway. >> what is matt damon trying to get some charity money? how much did you make this year? $20 million. an actor in his 20s, supposedly, but it's based on real life and easily -- and lebron, how much did you give to that charity? $1 million. but it's not one and the same. >> i know it's not one and the same. but just the idea that nobody should make $20 million. >> but i don't think that's the idea. you were talking about companies that took exception -- >> no, no, i'm not talking about them. with them, you can make the argument that now we own them and we want to try and bring them back from the dead. but in general, there's the notion that no one needs more than one or two -- even one or $2 million -- >> having pay for performance, if you can have a big chunk being paid in stock, that stock can appreciate gately and you should be able

ken feinberg, there were reports that he was going to lift that $500,000 salary cap that was imposed on aig executives. paeshl he's saying that's false. he's not going to do that. the compensation plan for the 126 highest paid employees will be released soon. and the government sources say the plan will give robert ben mushea to increase the cash portion of salaries above the limits that are recommended by the pay czar. yesterday reports said that five aig executives threatened to quit. >> they're denying it, but okay, no, we're not going to lift the capital, we're going to let ben do it. which is it's we're going to allow you to lift our caps, but it's the fault of the other guy. >> these aren't the guys in the cds units. should you pay these guys? >> you could argue if they left and trades went wrong and the value went down, certainly they're not sellable. >> to me, it's almost like hot potato. we're not getting paid for this. anyway, morgan stanley's ce owe plan toes shuffle top management. james goreman takes over on january 1st. he plans to put the finance chief in charge of the

>> boy gentlemen, thank you >> he'll never do it again now >> up next, we will be joined by ken feinberg, he's the man you call when you set up a compensation fund. >>> and well weget an update frm florida as irma churns towards the coast. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. this is not a cloud. this is a car protected from storms by an insurance company that knows the weather down to the square block. this is a diamond tracked on a blockchain - protected against fraud, theft and trafficking. this is a financial transaction secure from hacks and threats others can't see. this is a patient's medical history made secure - while still available to their doctor at their fingertips. this is an asteroid live-streamed to millions of viewers from 220 miles above earth. this is ai trained by experts in 20 industries. your industry. hello. this is not the cloud you know. this

among the stories that are front and center this morning, kenneth feinberg is likely to be appointedbillion compensation fund for victims of defective takata air bags according to court officials. feinberg has overseen a number of high profile compensation funds related to cases like the bp oil spill and the gm ignition switch recall. seattle is the latest city to levy a special tax on sugary drinks. it will be signed by the mayor today after the city council approved it yesterday. philadelphia, san francisco and chicago are among other cities that have taken similar steps. >>> tesla will resume selling rooftop solar 357b8s in nevada after the state assembly restored a bill for electric utilities to purchase excess power generated by those systems. it had been scrapped at the end of 2015. a big political battle on whether you should have to pie those back and what rate should be set for those things. >>> u.s. house of representatives gearing up this week to vote on a bill that would roll back much of the dodd-frank wall street reform. joining us now, the lead sponsor of the financial

. >> ken feinberg. >> ken feinberg.n impressed lately that he's looking at the reality of the marketplace, and it's a competitive marketplace with the competition to fanny make, freddie mac ceos, aig. i think he's letting the market -- >> pragmatist. >> i think he is. >> unlike england and france. >> that's punitive. >> even though it's going to make it harder for you to attract, because you will be fighting for bank that's can now pay more, right? >> yeah. right now the rush to pay the t.a.r.p. back was to get this freedom. but that's okay. this is a competitive system. you can't necessarily retain good folks in a synthetic, created marketplace. the marketplace is the marketplace. and so when you have good folks, and you can grab good folks, they pay for themselves many, many, many times over. >> there's nothing wrong with amer tok rasy, is there? >> it's the way this business has always been. they have been in it a long time, and it works. >> it works as long as people aren't taking money from the government, right? >

numbers that -- >> we did the gmac story where feinberg cleared 9.5 for g mac. chris ladell. >> you're right, it's somewhere between $4 million and $6 million. he says a lot of compensation -- benmosche is in here again. he finally met his match with feinberg. but i wonder if that will be the story in 2010. i guess it will. >> comp. >> yes. it's going to continue to be for a while. >> i think so. regulators and legislators, meantime, probing whether wall street investment banks deliberately sold risky structures and clients and vet on the securities' failing. a big day for travel and retail today. the weather, a big part of both of those things. let's check in with our friends, scott williams, at the weather channel. scott, good morning to you. >> good morning, carl. certainly we are tracking a potent storm system here. it has severe components. look at the lightning right now moving out of east texas. numerous reports of tornados overnight. severe weather likely as we move along the i-20. also the i-10 corridor, as well. most of the thunderstorm activity is out

. >>> ken feinberg came out yesterday with his new plan. i don't know if you found ittic whitble or not. >> it's hard to judge without knowing all the details, knowing how many cases are going to come through on this. feinberg is a guy who knows his way around settles like this. >> and it's going to be very difficult. he talked about it yesterday. the idea so many of these accidents happened five and ten years ago, to have the documentation you need to prove your case and what they're going to do to try and help you in that regard -- >> although we had a lawyer on yesterday who is representing a family who is not going to be allowed to participate in this because they settled in the past. they settled in the past, but it was based on incorrect information that gm provided saying that they had never changed the ignition, according to attorneys. >> they can still bring another case, though. the one thing that is good and interesting about how they're approaching this this time around is you can seek money from gm. in this case, go and find ou

hiring the same attorney, kenneth feinberg for a owners compensation fund for owners with vehicles that scrapping the scrapping das auto for something more humble, i think. i don't know how much traction that will have, but it's going to be a couple years before we know how this finally plays out, honestly. >> there was a news story in one of the papers today, about how one of the top officials this, top executive now, played a key role. he was dubious they'd make the california standards stick or they'd be able to meet them. said it was basically doing the impossible. >> more and more revelations like this come out before it's over. they will be ugly. what concerns me about volkswagen is some of the basic corporate governance issues are in place and e resolved. the heavy role of the employees uni union, the german government through the state of lower sax, and the porsche family. the shareholders come in fourth place on this. this is not healthy, i don't think. >> we've been watching china closely. a lot of concerns about the slow down in china, and that has to be something that the bi

we spode with richard feinberg of the brookings institution, he's -- he says, you start a business hereet you choose your workers doesn't decide how much you pay your workers, and it has the highest labor tax in the entire world. you don't pay your workers, you pay the cuban government's employment agency instead. >> then that workforce entity pockets about 95% of that payment in hard currency and pays the poor cuban worker in local pesos the equivalent of only about 5% of what was actually paid by the corporation. >> reporter: so keeping in mind, guys, that every other country in the world has been able to investment in cuba brookings estimates from 1990 to 2009, the total amount of foreign direct investment, $3.5 billion. that's it. a small, small amount. >> okay. thank you very much. we will see you throughout the rest of the week in the meantime when we come back, alibaba shares are under pressure after quarterly results. we'll hear from an analyst talking the currency slide. as we head to a break, take a look at equity futures at this hour. the dow down about 114 points. we're back

feinberg.0 claims and administer the court-ordered settlement which could cost them up to $7.8 billion, though there is no cap to it. that's $14 to $15 billion, which is still five lefs than tss tha original $20 billion set aside for the original project. >> mark dryer, the lawyer who embezzled millions from hedge funds and client, he's the subject of the new documentary "unravell "unravelled". producer and director mark siemor will join us when we come back. shows you the big picture on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend. i'm stephen hett of fidelity investments. the etf market tracker is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea. [ female announcer ] the sun powers life. ♪ and now it powers our latest innovation. ♪ introducing the world's only solar-powered home energy system, which can cu

keep in mind, ken feinberg, who has been retained by general motors to put together a victim compensationnce they put that criteria together, he will start floating proposals to attorneys and executives at general motors. once they come up with the criteria in two or three weeks, the expectation is they will get about 90% of the cases will go through that fund. people do not want to go to court. they are looking at this and saying you know what, we will live with that. we can take that compensation. we'll be done with it. the other 10% will go to court. whether or not those 10% of those cases if general motors were to lose and there were punitive damages, how material would that be? too hard to say. >> toyota. i think it was toyota. $260 million in lawyer fees for toyota. >> phil, stay here. let's continue this conversation can. let's bring in an analyst to talk about g.m.'s stock performance. >> jamie, you heard what they were talking about. one is the recall situation. the other is the company overall in its performance. how do you break those two apart? >> it's a great question. when y

i think ken fine berg i worked -- ken feinberg is a reasonable guy. >> should they be compensateing victimsthings that happened before the bankruptcy? >> i think that's a complicated question, honestly. i don't have an answer for you. the question is, where does it stop? there are many ought people. >> exactly. >> that have claims against old gm. bankruptcy is unfortunately a part of our way of doing business. there have been many other examples if bankrupt companies like asbestos. we are deserveing victims. we are not deserveing to get everything they deserve to get. we have to see how this unfolds. >> you think a judge comes out and says, look, you can't compensate some victims and decides your events didn't merit compensation as opposed to these other folks? >> that's one of the complicated things they will have to balance. the bun thing i'm sure of, it was late gaited to the supreme court, chrysler was done in compliance with the law. >> they have added 22,000 jobs since 2009, gow to some chrysler plants. they're in full capacity. they can't build them any faster. did you even envision

the other story today is ken feinberg and how much of the 2009 compensation is going to accrue to mr.en lewis. but don't worry about that. elsewhere, we have two big tech reports, ibm reporting a profit ofed 206 and i was ahead only by two cents on consensus. the company raised full year guidance to 985 a share, which is ahead of expectations. but it was the same old story. it was a drop in revenue. even if you factor out currency, down about 5%. some concern about corporate ordering of hardware, big mainframes and servers and other things that have people a little bit chagrinned, maybe, but it's run up to a new 52-week high. so $5, while it's a big number on a $127 stock, not that big. meantime, google shares got a boost after hours after earnings handling beat the street, posted its strongest revenue growth in more than a we're. the search giant says the worst of the recession is behind us. mark mehaney follows citigroup. mark, you always back out that tac or something and if you back it out, this was still good? >> yeah. the results were a little bit better than expected. fundament

. >>> tock executive at aig resigned because of pay instructions imposed by ken feinberg.quit. bank northwest trust cutting projections. they say the company is slashing its 2010 entertainment budget after being excoriated for throwing a large party. rick waddell said the bank misjudged the political environment. >> who's that? that's a good one. >> s.a.t. word. >> excellent. you nailed it, by the way. you preread it. >> combined the consonents and vowels. five in the trading block. >> wow. >> michael on the dollar, rick smith, dennis gartman, our friend from the gartman letter, george at cme and our guest host mike hollin and company. dennis, as you look back at '09, does what happened surprise you? did anyone think this was going to happen at the beginning of thor. >> >> i don't think anybody thought we would be up 20% in stocks bit end of the year. at the beginning of this year it looked like the world was coming to an end. everyone was almost laughing at the fed. the treasury was being excoriated and looked like the end of the world. and suddenly in march, the fiscal s

two big clollections headed to sale jerry feinberg, he was boston real estate investor, that's likely70 million this all starts tonight with sy newhouse, the conde nast owner the billionaire types that buy this stuff, they're largely unaffected everyone is affected by asset prices and the cost of money right now. >> what? >> i can't resist. any hunter bidens coming up for sale >> no idea >> you know -- they sell for $80,000, you know that but none in this particular -- >> not that i'm aware of. >> okay. not that you're aware of i do that for twitter. you're laughing. you like it. >> you love getting the twitter love. >> i love getting the twitter love i just -- i mean, when you look at nfts, you look at crypto, you look at art, chinese ceramic pottery, you look at -- what are these? how do you characterize those? >> they're assets. >> inflationary environment, why aren't they going up >> well, that was the argument for art. traditionally it is a great inflationary hedge but -- >> rampant inflation well, it is coming down. >> by the same time the pace of interest rate increases is -- h

zuckerberg lot a lot of trust and you bring in someone with a steady hand, you bring in a law firm, a ken feinbergook at it, they figure out who did what, whether anyone was inclusion, they get people fired and you move forward. and none of that has happened yet. so that is going to happen also the american people including the people who trade stocks will get tired of the story. but they won't get tired of the tariff story and i think there is a major change, a lot of people made a lot of money in the stock market and in companies being global it'ses and the high tide of globalism is gone. so people are reassessing everything and i think that is far more than behind the decline than zuckerberg going to cnn and giving an interview. >> so it is at 18 times earnings if they make $7 or $8. we just had a gentleman on saying that if all you provided facebook was your name and your birthday and your address, and you couldn't collect all that data, that it could be 60% less in terms of what they are able to sell everything for i mean, is that a possibility or would the business model stay intact >> see,

kenneth feinberg has 60 days to complete his work. among those, ensuring the contracts don't encourage excessive risk taking, that they an appropriate balance of short-term and long-term pay and that pay is tied to performance. >> i don't know if you guys saw this today, but there's a story in the business day of the "new york times" that talks about the pension advisers of gm. these are the people who did a very good job of making sure gm's pensions really were maintained through the last few years. it's in much better shape than some of the other pensions ewe saw out there because they were very conservative. but it turns out that 15 of the top 25 paid people at gm are working for these pension fund. so now the question is, as you go through, are they worth the money and who do you wind up having these pension funds at the end of the day. if you come in and say we're not paying for this any more, do you lose the talent? >> i go both ways on this here. >> i go back and forth. >> you look at the securities numbers and the job reportin

right now you have kenneth feinberg advising bank of america how to pay some of its top employees. >>ersations with him and he understands what our plans are, what our strategies are. i don't see any problems there. >> do you feel like whatever that -- the pay czar decides ultimately will allow bank of america to retain top talent? >> i think it's been a very open dialogue between the pay czar and officials at bank of america. they understand each of other. >> if the fdic have enough money to pay tough banks that fail and not, where do they get it, and ultimately, where does that money come from? >> i don't believe so. tyler, i think obviously it comes from the treasury. but you have to remember that we have to have it funded by banks and i don't think a lot of the american people are going to understand that. >> end up having to pay much, much more. >> yes. >> to bail out the fdic. >> yes. >> what's that going to the do to the banks? >> well, it's an expense, so it's a tax. it's an expense. it reduces the capital. and ultimately, don't have enough money to loan out. so it's not good.

>> well, don't you think they're already going that direction, given that they hired ken feinberg?hiring him just to look at the numbers. i think they know that they're going to have to do something to compensate the victims, especially people whose claims are not able to be paid given gm's 2009 bankruptcy restructuring. so -- >> david, you're just raising another question, though. should the money come from the new gm or come from the old gm? >> sure. i mean, there's not a lot of money left in old gm at this point. but -- and i think a lot of wall street analysts think they'll be paying somewhere between $2 billion and $3 billion in total and don't forget that given that toyota just paid a $1.2 billion criminal fine four years after its recall problems that gm also faces pretty hefty costs on that front as well. >> okay. we're taking hits on both satellite feeds. so we're going to leave it there. thanks, david and paul. we do have a programming note. we're going to talk to representative diana degette. she had a memorable exchange. holding up a gm ignition switch. you have a big k

how about that feinberg guy?hey've got to divvy up money, he's the only guy that knows. are you the only guy that knows how to do anything in this country? how does this happen? do you call them? >> adam gave me a call. we owned the hawks. we know something about ownership. in fact -- well, i won't go there right now. >> everybody that becomes a big success in business, sports just seems to be the next level ofr now that i've done this and i'm good at this, it's just fun and it's, you know, you can pretend you're still in business but you get to go to all the games. i mean, it's too good to be true, isn't it? it's almost like a broadcaster. >> it's the ultimate toy, in a sense. you remember lewis katz from new jersey? big philanthropist, great guy. >> oh, yeah. >> said in a commencement address once, when i was a kid i wanted to play in the nba. but i kept getting cut from every team i was on. i figured out the only way not to get cut is to buy the team. so it's a way to, you know, have your cake and eat it too.

. >>> five top executives at aig threaten to quit if their pay is cut by the pay czar kenneth feinbergth benmosche said he would quit but later reconsidered. >>> and gm taps spencer stuart to conduct a ceo search. they are looking for a candidate familiar with operating in asia and also considering candidates that come from outside the auto industry. >>> our guest host has more than 25 years of experience on wall street. he's a contributor of cnbc now, rich bernstein former chief investment strategist at merrill lynch, now ceo of his own firm. where did you get this name, richard bernstein capital management? did you pay someone for -- >> yeah, we paid consultants a lot of money to figure this out. >> big pr dollars. let's start with this, rich. we're back to now. right in the middle of trying to decide whether a deep recession is so stretched it has a sharp snapback or whether there's so many secular problems with what happened this time, the credit bubble, that we're going to have a muted recovery for years. >> you've nailed the discussion right on the head right there, where you hav

. >>> president obama's pay czar ken feinberg is expected to approve the pay package of ai gchl's ceo we're. he's expected to receive $10 million. even . >>> mer he was reached out to hank greenberg for advice. greenberg says he has the best chance to succeed in rebuilding aig. aig shares were up yesterday by 15%. >>> new fdic rules broadening the pool to make it easier, some say, for private equity firms to make deals. john kanas' private equity firm bought bank united, former ceo of norfolk. >> good to see you. >> some would say, it could be worse. you don't see it that way? >> it's good news for large strategic banks, obvious competitors in this business. it requires private equity to hold roughly double the amount of capital that their competitors will have to hold in the same situation. it singles them out as a category. and it's not going to make it any easier. it's certainly not going to access more capital from the sector for what we think is an ongoing problem and going to continue on. >> is it enough to sq uchl elch om deals? >> i don't think so. i think they'll continue to

this is according to ken feinberg whose running the company's claims.ut vw has not decided whether the owners will be offered cash, car buybacks or repairs. . >>> chobani has rejected an offer from pepsico and other investors. the firm worked with goldman sachs exploring a sale after receiving bids from several companies last year. it reportedly rejected the offer because the firm was looking for a majority stay. and chobani was only interested in a minority stake. >> i wonder told ingrid that she should buy chobani because i don't like the yogurt that -- pepsi owns the -- >> which one? >> i don't remember. >> why would i buy a majority stake because i'm interested in actually acquiring you? >> i'm actually wondering that the growth on chobani, it's not only growing but up exponentially. >>> consumer news this morning, gasoline prices continuing their lower trend. the average price of a gallon of regular drops by 8 cents to $1.82. joe kernin, if you're listening, i drove this weekend and did my own gas. the lundberg survey said it's the lowest in 11 yea

brought in feinberg. i defer to andrew.ow it right back. we've got to go to a commercial break. >> i think she's doing a good job. >> we've got to check it out. jim, happy birthday my friend. >> thank you guys. >> have a great day. >>> all right. let's talk teen retail now with jan rogers of worldwide enterprises intergalactic. are you there? >> i am here. i'm sad i couldn't be there on that great new set. >> it's all right. you can talk to us via bluetooth headset. >> you guessed it. >> are you surprised by gap or the strength of aeropostale and urban outfitters? >> i think i was most pleased with what urban turned in. though i do think both are more promotional. but longer term i'm concerned that urban is telling us they're going to increase the size of all stores by a factor of three times and make them much more destination spots and places that will be higher dwell time opposed to just focusing on what they're doing best right now which is growing their internet business. short-term it looked good. aeropostale had horr

it was an opportunity to go in, turn it around, fix it, but i think steve feinberg is -- is one of theeaders on the street today. i have nothing but admiration for him. i had the opportunity to work very closely with him at chrysler. he's a patriot. you know, his goal was to he store a true american iconic brand in chrysler. you saw he didn't, you know, hesitate at all. he made a very bold decision. and you know, the cerberus team is working through that. >> you were on the board of the company of freedom? >> i was. >> and then you stepped down from the board? >> yes. >> why was that? >> well, it's not uncommon. steve has a number of companies, control companies, and i was heading up the cerberus operation advisory council and we would go in to various companies and help them, you know, some of the turnaround situations and some of the operational opportunities to improve the performance. >> okay we're going to slip in a break. we'll continue this conversation. lots of issues to talk about. >> i want to talk housing with you. >> the economy. about 100 things we want to talk about. >> t

. >> that's a job for ken feinberg. >> i know pornography when i see it and i know art when i see it.s guy who sold a messy bed for $4.5 billion, he is an artist. >> he is a conartist. >> no, exposedly not. have you seen a picture of the messy bed? >> i have one at home that he can buy if he'd like. >> is it just the covers are messed up or is it -- >> i don't know. that's what i'm -- yonl. >> in the past, there have been crazy stuff. shocking stuff, crucifixes, weird, bizarre -- >> but i think that was just a messy bed. have you ever gone into a hotel and the bed is not made? >>> in florence in one of the most famous museums, there was a -- like a man kin leaning a stream. is it looks like a real person and this was considering look are a real maefrt pose. >> i'd love to do messy beds and telling them to anyone for like 40 bucks. >> you feel for google. they fought this ruling. now they're getting tarred for taking off things people say is relevant. they didn't want to implement this rule to begin with, so they're in a difficult position at this point. >>> texas governor rick perry.

. >> and we know from ken feinberg that whoever takes that job will be subject to -- his pay is not going to be what he thought it was. >> hope you like stock, long-term stock. >>> a consortium managed by capital group has won the bidding for corus bank. >> there is a yield alternative and if you're patient and you can take a longer term view, if we buy this portfolio of assets from the fdic, this bank fort fellow, you'll be buying this real estate at 25 cents the original cost. and with the proper financing and the right structure, you just didn't wait. as an alternative to the other asset classes, to me, it looks compelling again. >> the start of capital leg group is buying a 40% stake in the course for $554 million. the fdic is going to hold the other 60% stake. we think barry knew about this knew about this when he talked to us, but couldn't talk about it until the bottom line was signed. >> it was interesting to see him tap around it yesterday. >> he wanted to tell us. >> he did. it's too soon to start withdrawing the fed's massive report according to thomas hoenig. he warned that it

but you can only make 500 -- i mean, have you had to deal with feinberg related issues with any of yourhes? >> oh, sure. >> you are dealing with that? >> oh, sure. >> and have you seen talented people say, i don't even want to think about -- i wouldn't even consider myself to go there? >> absolutely. >> so there are people leaving firms with pay caps and there are talented people not going to firms with pay caps? >> absolutely. absolutely. >> how many times have you seen that? do you have that many -- you're doing all senior executives? >> yeah. i mean, 75% of our business is around the world, right? and you are. there's unintended expense consequences of this regulation. you have to be careful about that. >> well, you've got a horse in the gate, too. because you get paid based on the kind of deal you get your guys, right? so you don't want any compensation, either, i guess, right? as a -- i never think about it that way. come on. >> what are we talking about? six companies. are we talking about the 3,000 ceos? >> is it a bad idea, gary? >> i think it is a bad idea. i think it will go a

not at one time, but over several days when we were negotiating the compensation with ken feinberg. than 8 to 12 hours a year in washington. >> really? >> no more than 8 to 12 hours. what i say all along, no, you were the government and all these things were said. what i said was that the federal reserve was the bank. and as a result, they had to sign off on everything. they gave us over 1,000 waivers during this period of time because the issue was they gave money, they weren't supposed to give money. wanted to make sure they got that money back. once we paid the $85 billion and closed that out in terms of giving back the line and so on. we kept them informed. they attended board meetings, our manager meetings, which the fed does now as a regulator, and we didn't have any kind of an issue other than the compensation period was intense. >> does that change in terms of the dynamic between you and the federal reserve and other government agencies in the u.s.? >> i think it improves it in my mind because now all of a sudden. look, we had -- we wanted to pay a dividend. >> right. >> we

what i said in november was, you know what, if we can't resolve it with feinberg, then i'm going to announce them about pay. i had five of our top people ready to resign because if they didn't resign in '09 by law, they would forfeited any severance if they got fired. people had lost a fortune in this company. we say there was no consequences to employees. of the top ten people who worked for me when i got there, they lost $168 million of pay they had not yet received. that was the pay part. they also lost all of their stock, all of the stock that hank had put aside for them, all of it was lost. they've lost their entire fortunes. and they had nothing to do with the problem. they'd been running their part of the company extremely well. you have to have credibility to build back their money or they were struggling paying their mortgages. you don't want people in finance having financial difficulty. >> right. you just mentioned hank greenberg, force for good or force for evil? you dealt with this huge issue of he's going to pursue this lawsuit against the government. you decided not to. >> wha

and that's the way -- >> like ken feinberg, who defines it all very quickly.something of that order. >> is there a project that you have in mind? >> well, we just -- we will suggest the project. we'll suggest three or four. it's going to require probably some legislation from congress. if they have the courage to do it. but you can only offer these things to the government. you can't make them -- >> can you speak to the theoretical timetable? the reason i ask is just, we keep talking about how there needs to be the repeal of obamacare to get to the tax piece, and maybe you need to get to the tax piece to get to the infrastructure. is that sort of a latering approach, domino approach accurate? >> that's what's -- >> that's what's been enumerated to us, because, you know, the pay-for for infrastructure is going to obviously coalesce a grae great deal with what the tax plan looks like, okay? to do $1 trillion of infrastructure, you need to, in the end, have $50 billion to $60 billion of annual revenue, right? to support that. now, you can't do $1 trillion of infr

should it be the shareholders, the board or ken feinberg?e one. >> a, b, c. >> the board should be responsible. we're regulated industry. as you know, the federal reserve is coming out with compensation guidelines, s.e.c. is coming out with compensation guidelines. we're very sensitive to the environment, but, again, the bank is owned by the shareholders. we are elected by the shareholders. it's our responsibility to set policy, one of which is compensation. we're a fid you shear representing the shareholders. >> what is downside to letting shareholders decide? >> shareholders indirectly do decide -- i think it's important that directors, the policymakers, they're more close to the situation, they understand what's going on in the situation, they're there on a monthly or bi-monthly basis, they interact with management but sensitive to the shareholders and what's going on. directors need to -- they're engaged. >> at least you hope so. >> well, i can tell you that the bank of america directors are engaged. >> yeah, yeah. >> one last question,

government officials want pay czar ken feinberg to relax executive compensation restrictions at aig.cording to "the wall street journal." they believe excessive restrictions will make it hard to attract top talent which could ultimately cost taxpayers which own 80% of aig. >>> general motors is planning to cut 9500 jobs in its opal unit. that will be presented to unions this week. gm decided to keep opal after months of negotiating a possible sale. >>> merck's pain killer vioxx showed side effects years after it was pulled off the market. that comes from the archives of internal medicine, a publication of the journal of the american med sical association. merck disagrees saying investigators used unreliable methods to assess the data. joe. >> thanks, michelle. >>> gdp data due out in a little less than an hour. rick santelli is here along with senior economics reporter steve liesman and our guest host david rosenberg as well as a former bank of america merrill lynch chief north american. wow, that's long. rick, what did you do last night on "fast money." >> you know what, i had fun.