in a sum of 2008 after lehman fell and treasury secretary henry paulson came up with t.a.r.p., during three to four we could when i was very violently debated in the congress and among the american public, john allison took a very courageous stand opposing t.a.r.p. the fact is his bank didn't need it. but he posted in general that he opposed on the grounds of moral hazard on the grounds he did want to see government taking over in asia including 19. a very sad thing happened. when t.a.r.p. fast, henry paulson had the idea that if the treasury said okay, if this bank is a, this one doesn't, this one doesn't, then all the ones who did need it would be identified as arise. often depositors would run. so, you know, what we're going to do? all of your condition are not sick but we will give you all the medicine because we don't want you to know which ones of you are sick. so, what was that medicine? that medicine was that the government became a preferred shareholder in your bank. the government took options on common equity in your bank. the government may design a 250 page contract from

this really clear wall street has hijacked washington who was the treasury secretary under bush henry paulson where did it come from goldman sachs when did they repealed the glass steagall who's the biggest ration did it happen under clinton and so who was the treasury secretary that got it so motion robert rubin where was the from goldman sachs whose obama's chief of staff bill daley where is he from vice chairman of j.p. morgan chase it wall street washington it's the same club and the leader of venezuela hugo chavez his solution to all of this economic woes he wants his gold back you heard mr selenski it's very valuable he's having it repatriated earlier i asked adrian south was he what is the main reason for this. well there are two basic reasons one of them is financial and he obviously wants to protect the financial assets of his own country so he is repatriating these two hundred eleven metric tons of gold which sounds like a lot but since gold is heavy it's a relatively small volume and he is asking the united states and britain to give it back to him but there is another level that t

make this really clear wall street has hijacked washing who was the treasury secretary under bush henry paulson where did he go from goldman sachs when they repealed the glare spiegel who's the biggest bridge did it happen under clinton and so who was the treasury secretary that goddess of motion roger rubin where was the from goldman sachs who's obama's chief. bill daley where is the vice chairman of j.p. morgan chase it wall street in washington it's the same club they're not going to do it they're not going to do it you know you mentioned that federal reserve one point two trillion dollars in loans that were kept completely secret not to toot our form but we did bring that up in our four o'clock show what what fears or concerns does that renew for you that those were made in secret and not even reported to the government accountability office that audited that. well the concern is that they're doing all these shyster deals behind our backs and they're robbing the american people there's nothing that i agree with with that guy rick perry that's running for president except one thing and i agr

i also have read henry paulson's, hank paulson's book on the financial crisis as well, so this is an area that i really want to become a much better student of, and this book helped me do that, "too big to fail. " and another book that i'm reading right now, and this is a book that i'm just about done with, is allah, liberty and love. she's a good friend of mine, and i admire her willingness to question tradition and convention. and she promotes this islamic ideas which is inquiry, questioning. and at a time when you find some people who offer ideas based on tradition and just precedent and what has happened, she's one who says, no, there's this other tradition of inquiry -- excuse me -- and questioning. and her book, basically, is, you know, talking about how the modern islamic world, um, has an opportunity to really incorporate ideas of liberty and freedom. and as we look at the arab spring, you know, there's no doubt that the book she's writing is actually an important perspective because that's exactly what the people in tahrir square and the tunisia and in all over the region ar

now former treasury secretary henry paulson on the financial climate,, the wall street bailouts of 2008, and the u.s. economic relationship with china. from dartmouth college, this is an hour. [applause] >> as is our custom in the leading voices series, the first -- last week we welcomed secretary paulson's classmate who had the following questions. >> on the video. >> the part i've really been looking forward to. the one last question, the question you get to pose to our next speaker, and i looked at who our next question would be. it is your dartmouth classmate and former treasury secretary, hank paulson. so when he is sitting in that chair, what would you like for him to answer? >> i've got two related questions for you. why in the wall street bailout did you not condition those funds on wall street doing several things that it needed to do? particularly with regard to mortgage litigation and also making money available to main street, small, regional banks? and also putting some constraints on lobbying by wall street firms particularly during the particular time congress was trying

in the summer of to the sunday after lehman brothers fell and treasury secretary henry paulson came uph t.a.r.p., during the three or four week period when the was violently debated in the congress and among the american public, john l. listened to a very courageous stand opposing t.a.r.p.. the fact is his bank didn't need it but he opposed it in general on the grounds of moral hazard and that he didn't want to see the government taking over in the industry including banking than a very sad thing happened when tar passed henry paulson had the idea that if the treasury said okay this bank needs, this bank does, this one doesn't, then all the ones who did would be identified as part of ideas, all the depositors would run so you know what we are going to? all of you in the room are not sick but you're going to give you all the medicine because we don't want you to know which ones of you are sick. so what was that medicine? that medicine was that the government became a preferred shareholder in your bank, the government took options on the common equity and the government that may decide t

afternoon and brothers' wealth and henry paulson came up with t.a.r.p, during that period when it wasve then be debated, alice then took a courageous stand to oppose t.a.r.p.er his bank did not need it but he opposed it in general on the presence of moral hazardwan , did not want to seevern government taking over any but then when t.a.r.p passed, henry paulson have the idea if the treasury said this bank needs it and this one does but this one does not but all of those who did would be identified as a pariah so what we will do is all of you in the room are sick but we will give you all the medicine because we don't want you to know who is sick. what was that? the government became a preferred shareholder in your bank, took options on common equity, made use 9200 pay -- to differ dufay's contract that best rulesment would have of executive compensation you would abide by and could come up with other rules which you will not question under this contract.ra bb&t had been audited the previous week and passed with flying colors. then one evening bb&t regulator met with john allison and sai

. >> next, former treasury secretary henry paulson talks about the wall street bailouts of 2008, the current financial climate, and u.s. economic relationships. china he spoke at his alma maters dartmouth college in new hampshire. the forum begins with a question posed by his former dartmouth classmates, former labor secretary robert reich. this hourlong form is moderated by the former u.s. senator judd gregg. [applause] >> the first question to each speaker comes in the previous secretary. last week we welcome robert rice to have the following questions ch.-- robert reischau >> you get to pose a question to our next speaker and the next speaker -- maybe this is a site with your next question -- but our next speaker is your dartmouth classmate and former treasury secretary henry paulson when. is sitting in that chair, what would you like him to answer? [laughter] >> i have two related questions. why in the wall street bailout did you got condition those funds on wall street doing several things it needed to do, the delay with regard to mortgage mitigation and making money available t

in the summer of to the sunday after lehman brothers fell and treasury secretary henry paulson came upth t.a.r.p., during the three or four week period when the was violently debated in the congress and among the american public, john l. listened to a very courageous stand opposing t.a.r.p.. the fact is his bank didn't need it but he opposed it in general on the grounds of moral hazard and that he didn't want to see the government taking over in the industry including banking than a very sad thing happened when tar passed henry paulson had the idea that if the treasury said okay this bank needs, this bank does, this one doesn't, then all the ones who did would be identified as part of ideas, all the depositors would run so you know what we are going to? all of you in the room are not sick but you're going to give you all the medicine because we don't want you to know which ones of you are sick. so what was that medicine? that medicine was that the government became a preferred shareholder in your bank, the government took options on the common equity and the government that may decide

player in the fact that the leverage these firms are allowed to take on, which is something that henry paulsonortuned the sec to allow us to increase the average these firms take on their books. that really let them down the path to perdition because only a small loss was magnified by leverages they had. there was a tremendous amount of profitability and risk-taking related to mortgages on wall street. look at countrywide, bank of america. it is in trouble now because of its lending practices. >> you also have to remember the mortgage-backed security, the residential mortgage with the lowest risk asset from a capital good. and that is a big pizza by the banks went headfirst into this, why they leveraged it, why you took mortgage backed securities and when he didn't have natural buyers for them come you took them as tranches and bundled them into more leveraged instruments and then multiplied that further and further. when you look in the e-mail files of the financial crisis inquiry system, one of the things defined as there were other institutions that would have gone down because they retain

turn south in the economy, and you'd see president bush come out, sometimes ben bernanke, and henry paulson out the markets would tank. unless they've got something highly specific to say they might be talking to the american people but when you're watching the stock market that's investors and they don't do well with this generalized conversation. >> if the message isn't inspiring to the american people either, maybe it's best just not to say anything. >> yeah. >> i don't know. >> i don't know. >> let's ask felicia taylor anything inspiring. i think futures are up. >> across the board we've got futures up and gold backing off a little bit. that's reassuring. only up $50. that's still a safe haven play. carol, i couldn't agree more. at this point in time don't get in front of a microphone when it's upsetting to the marketplace. an interesting op-ed piece in the "financial times" comparing the american government to charlie brown. when he used to walk up and try to kick the ball and lucy would put it out from underneath him so he would stumble that's not a good comparison. we don't want to s

then bernie sanders and henry paulson talks about the 2008 wall street bailout. >> i am already preparing bias and report the facts. >> the people -- the reason that people love fox news because it is emotional, it is love and hate. >> aspiring high school journalists on ethics, paroled of opinion in commentary, and where they get their news and informations in today's multimedia environment tonight. >> this morning a political roundtable on the results of the iowa straw poll with republican strategist keith appell and democratic strategists. mark mellman former cia director of operations chad sweet talks about theba

up next, former treasury secretary henry paulson spoke at dartmouth college. this event from earlier in the week runs just about an hour. [applause] >> last week we welcomed robert ch, who had the following questions. >> maybe this question is a segue to your question, but our next speaker is hank paulson. >> i have a two related questions for you. why in the bailout did you not conditioned those funds on wall street doing several things it needed to do, particularly with mortgage litigation and also making money available to main street through small regional banks, and also putting some constraints on lobbying by wall street's firms particularly through a period of time congress was trying to reform the financial system. [applause] secondly, after you have explained all of that, i would like you to tell us whether the social benefits of the wall street exceed the social costs. thank you, hank. [applause] >> some things in life never change. those that sounded like two questions rather than the one. i will start with the first one, on the social benefits vs.

player in the fact that the leverage these firms are allowed to take on, which is something that henry paulsonuned the sec to allow us to increase the average these firms take on their books. that really let them down the path to perdition because only a small loss was magnified by leverages they had. there was a tremendous amount of profitability and risk-taking related to mortgages on wall street. look at countrywide, bank of america. it is in trouble now because of its lending practices. >> you also have to remember the mortgage-backed security, the residential mortgage with the lowest risk asset from a capital good. and that is a big pizza by the banks went headfirst into this, why they leveraged it, why you took mortgage backed securities and when he didn't have natural buyers for them come you took them as tranches and bundled them into more leveraged instruments and then multiplied that further and further. when you look in the e-mail files of the financial crisis inquiry system, one of the things defined as there were other institutions that would have gone down because they retain the