involved in the bear stearns deal which is ironic because bear stearns is one. reasons they're paying for this. remember this is some of legacy stuff, legacy mortgage problems occurred at bear stearns. this is a very humbling experience for jamie dimon. he was prodded by his board essentially to end this. get some sort of a global setment on the mortgage issue. i think that is why he is doing it now and that's why he is paying it up. melissa: it would be worth it if it were all over. >> you're right about that. melissa: in theory it is suppose to include justice, federal housing agencies, new york attorney general, does it feel all encompassing? >> maybe. melissa: that's the problem, maybe. >> right. even if all those groups get into this settlement and some enormo deal i question this will be the end of the it. i know that is what the board wants, what he is doing in washington trying to put this all behind him but it is so appalling what the government is doing here, i really doubt they will stop if there is not come kind after pushback. charlie mentioned bear

the government bailed out bear stearns leaving the market to believe that the government would step inescue everyone. so when lehman failed that set off chaos in the market as far as what is the federal government's role going to be? >> i want you to respond to that neil irwin. >> the fundamental thing with lehman brothers unlike bear stearns and aig, it wasn't just having a short-term shortage of cash, it was insolvent. and at the time the government had no tools around to fill that gap. later there was the tarp and other tools the government had. at the time of the lehman brothers failure, there wasn't much left in the arsenal. the question is could they have handled things differently back then? you know, there's plenty of things you could have run of how they might have done things differently. but you had a massive financial system that was overextended, that was short of cash, we were hitting the outer limits of the legal authority and really the political will to bail out financial institutions. >> what about the market expectations that abby was talking about? >> you go to euro

and particularly bear stearns, they met with, with the sec at the time.. i think there was a linda thompson was head of enforcement. adam: uh-huh. >> they basically gave some sort of a conditional waiver to, to bear stearns, to, jpmorgan. they, there was some sort of an agreement. i, language when i finally agreement was not all that binding but there was some sort of a agreement that the justice department and fed were taking into account any irregularities that jpmorgan inherited from bear. jpmorgan didn't really want to buy it. they were asked to buy it. listen, they got a pretty good firm strip out the bad assets that caused bear's demise. they were in big, jamie dimon -- before doing it. they will argue that. adam: right. >> listen, as i said a million times on the air, this is more about politics i believe. jamie dimon is a staunch critic of dodd-frank and he is now paying the price. @here is nobody, call me a conspiracy theorist but there is nobody i know on wall street and inside that bank that thinks this is nothing but a political attack or at l

bear stearns evaporates.e first quarter of 2008, gdp cratered 2.7%, and it was the start of the great depression. here's alan greenspan later explaining why he missed it. >> i was right 70% of the time, but i was wrong 30% of the time. and there are an awful lot of mistakes in 21 years. >> some of those very people who were helping us through the crisis are now going to be advising or helping ben bernanke and the big fed stimulus that we have seen. how do we know they're getting it right this time? if my plumber got it right 70% of the time, i wouldn't hire him again. these are the people telling us how to fix this mess. >> well, first of all, i do agree, they're not doing it completely right. but also we don't face these things very often once every 80, 100 years. there are a lot of things we don't know. there are people who say if you do what i said, if you just say spend a lot more money, if you did a lot, everything would have been fine. if we hadn't let lehman fail, everything would have been fine. we do

i remember when i covered bear stearns back, you know, before they blew up in 2008, bear stearns wasits legal staff, tell us we're playing right up to the line. that's what they were doing. that is not generally the culture at jpmorgan. i don't care what anybody says. i know those guys. they're not telling people, they're aggressive, they're risk-takers but not telling people, here's the line, go a millimeter before it. that is what is scary here. it kind of underscores i think, you know, i know jamie doesn't want to break the bank up, underscores how difficult is to run these things and maybe impossible to run these things. lori: is there a way for jamie dimon to wrap this all up neatly and move on? >> yeah. at some extraordinary price tag right now. they have concluded internally that if they were going to settle to a universal settlement with everybody it would cost, 20, maybe $30 billion. by the way that is a year's earnings. i think they made 22 billion last year. right now they see, they see some merit in trudging this out, you know, like every day, settle something. or, litiga

when they bought a bear stearns. j.p. morgan what's the status of that huge short position still they're still there really yeah if they had traded they trimmed it considerably over the course of last eight months something around the neighborhood of maybe fifty thousand contracts down to ten but silver is so tight there are so few market for just one say couldn't get entirely out unlike gold where there was a flip completely from short how long and we can we know that by looking at is dated to see if you see generate some sell so they put out these report that britney with the data spat who knows what we have to go with it and it's what it is what it is and everything indicates that everybody is still short silver most everybody sure looks are still short gold but j.p. morgan is no longer and that's a big thing. all right let's talk about the comix for a second because of course it is a paper market and there is speculation now that their inventories are running down to near zero yeah same thing with j.p. morgan's i

when they bought a bear stearns of. j.p. morgan what's the status of that suit short position still they're still there really that if they don't trim it they trimmed it considerably over the course of last eight months something around the neighborhood of maybe fifty thousand contracts down to ten but silver is so tight there are so few market for just one say couldn't get entirely out unlike gold where they're able to flip completely from short how long and we can we know that by looking at these data to see if you see generate some sell so they put out these report that means the data is bad who knows but we have to go with it it's what it is what it is and everything indicates that everybody is still short silver most everybody sure looks are still short gold but j.p. morgan is no longer that's a big thing. all right let's talk about the comix for a second because of course it is a paper market and there is speculation now that their inventories are running down to near zero yeah same thing with j.p. morgan's intere

, we are standing behind wall street treedr trading. >> bear stearns did go under? >> no, there was a rescue of the creditors and the shareholders that let lehman go, yes, aig obviously an intervention, all the other banks, we now have the tax player explicitly behind wall street trading clearinghouse. >> five years later it feels safe, maybe it's too safe. because over those five years, we've had a growth rate of about 2%. it should be 3%. there is a sense in which the bank, the industry are supporting the status quo. very formulaic investing. there is no createtivety and creating new jobs. if we have long-term growth at 2%, we may be safe but we will be very sorrowful i think. >> no financial innovation. >> no financial innovation. >> the other thing that has not happened is any reform of fannie mae and freddie mac, the big mortgage giants that combined private profit with public risk. those things were put into conservatorship and they're still in existence and now they're able to make money again, which gives congress the ability to spend that money and less imp

, we're standing behind wall street trading. >> bear stearns did go under. >> no, there was a rescue of the ce creditors and a partial rescue of the shareholders. they let lehman go, but, yes, aig, obviously an intervention. all the other banks, we have the taxpayer explicitly behind wall street derivatives training at clearing houses. >> but five years later, it feels safe, but maybe it's too safe. because over those five years, we've had a growth rate of about 2%. it should be 3%. there's a sense in which the banks, the lending industry are simply supporting the status quo. it's very formulative lending. there's no lending to new dynamic benches, which would increase productivity and create new jobs. if we're going to have long-term growth at 2%, we may be safe, but we'll be very sore -- >> and no financial innovation. >> no financial or business innovation. >> you know, the other thing, kim, that has not happened is any reform of fannie mae and freddie mac, the big mortgage giants that combined private profit with public risk. those things were put into conservatorship and they're

the government bailed out bear stearns leaving the market to believe that the government would step incue everyone. so when lehman failed that set off chaos in the market as far as what is the federal government's role going to be? >> i want you to respond to that neil irwin. >> the fundamental thing with lehman brothers unlike bear stearns and aig, it wasn't just having a short-term shortage of cash, it was insolvent. and at the time the government had no tools around to fill that

plus, pay no interest for 3 years on beautyrest black, stearns & foster, serta icomfort, even tempur-pedic even better with sleep train's risk-free 100-day money back guarantee. get your best rest ever from sleep train. superior service, best selection, lowest price, guaranteed. ♪ sleep train ♪ your ticket to a better night's sleep ♪ >> pam: in bay area news, a house fire in fremont ws the scene of a dramatic rescue early this morning. these pictures from our helicopter partnership with abc 7 news. >> pam: firefighters found the front door secured by a security grille and a double deadbolt. so police pulled a patrol car up to the burning building. fiefighters then used the hood to enter the house they found two more people unconscious and pulled them to safety, seven people were injured , including two police officers and two firefighters >> pam: a man found with head injuries in union square saturday morning has been identified. a relative stopped by san francisco general hospital and made a positive identification. he had no wallet or i-d when he was found. police have not released his n

a study of a man who was behind some of the august policies of apartheid stearns just a stone's throw from south africa's capital and it's not just a monument to past injustices gobs of whites and we'll play artie's khosla takes up the story of. a half hour drive north of south africa's capital petrolia and you'll be forgiven for thinking you've traveled back in time it might be two decades since nelson mandela was sworn in as the country's first black president but communities hankering after south africa's apartheid past when racial segregation was enshrined in law are starting to wave their nationalistic color is when white people first advanced into the interior of south african eighteen hundreds this is what they saw before them vast dissolute stretches of land and now one hundred fifty years later they were turning to the dreams of a forefathers to create an independent entity with their own laws flag and language . well come to claim fontayne an aspiring whites only enclave if you're black you can visit but only for a few hours and with special permission well there's a little.

went down that the markets and, again, bear stearns, bear stearns had only been saved because the buyern the form of j.p. morgan emerged. and we had to have a definitive system. but we learned that the time we didn't have the necessary authorities to save a failing investment without a buyer. so ben bernanke and i went and talked with barney. we explained he didn't have the emergency powers he had for emergency banks. we didn't have them for investment banks to wind them down and keep them outside of the bankruptcy process. barney explained -- it was true after he explained it. that we weren't able to get the authorities from congress. the only chance of getting them was to say we -- we'll have a huge crisis if we don't get them because it will fail. that would have brought it on us. but they ended up enacting those as part of dodd-frank. >> to make a factual point, the opposition was coming from the republicans than the democrats. strong wing of the republicans take on the financial services committee who said, let it happen. but that didn't fully answer your question. hank convinced m

it wasn't too long after bear stearns went down -- again, with bear stearns, only been saved by jpmorgan. we had the fed assisting that buying. we had learned that we did not have the necessary authorities to save a failing investment bank without a buyer. them bernanke and i went and talked with barney. we explained that we do not have the powers for investment banks to wind them down and take them outside of the -- wind them down outside of the bankruptcy process. we were not going to be able to get those authorities from congress. the only chance of getting them was by saying that we would have a huge crisis if we did not get them because we meant would have failed and that would have -- lehman would have failed and that would have been disastrous. >> the opposition was coming from the republicans, rather than the democrats. you had republicans saying, let it happen. hank convinced me that if an institution failed, we had one of two choices. we can pay all the debts or none of the debts. lehman paid none of the debts. aig paid all the debts and everybody is in a bad mood. what we did

plus, pay no interest for 3 years on beautyrest black, stearns & foster, serta icomfort, even tempur-pedicand rest even better with sleep train's risk-free 100-day money back guarantee. get your best rest ever from sleep train. superior service, best selection, lowest price, guaranteed. ♪ sleep train ♪ your ticket to a better night's sleep ♪ >> either be depressed by the results, or be inspired by what a happened. i'll explain, which i am, coming up. >>> 26-year-old nora gately had polio as a child. she was living in an orphanage. within a year, an american couple adopted her, but things went a different course, her family was driving her somewhere else. to the schmidt family. >> he said i would come back and pick you up. >> did you ever see him again? >> no, not after two years. >> not to this day? >> not to this day. >> what you just heard being described is an underground practice called rehoming. parents adopt a child, often from abroad, and when things start to go wrong, those same parents go on line and agree to give that child away to a total stranger. no attorneys or welfare involv

>> there is the possibility that lehman, don't want to say only could have been a bear stearns, righttearns was almost a cop pleat loss but it didn't destablize the financial system way lehman did and didn't go to zero the way lehman did. melissa: right. >> he had a lot of opportunities, the perception the way history has been written his arrogance in not, you know, not basically accepting a big loss for shareholders, not admitting how bad things were. melissa: yeah. >> and so a lot of blame goes to him. so there's a real reason why, why he's tarred with that brush. melissa: real quick because we're out of time, what do you think happened with larry summer? i said before when you read that thing it is like i want to snd some more time with my kids? what really happened? did the president say it was over for you? >> i think so. they float ad trial balloon. it came out a few weeks ago. a lot of people in the president's own party -- melissa: took an ak-47 to that -- >> we don't want this guy. it is ironic, yellen is more dovish candidate. it is interesting, i think the paradox here and

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a lot of this is legacy stuff, what i mean from that from bear stearns and wash mon mutual that jpmorganght of the financial crisis prodded by regulators. this $11 billion settlement is on the table i should say. it is not a done deal. when i talk to jpmorgan insiders they say chances of this happen something 50, 50. clearly not a done deal. they say the deal won't end all the regulatory probes. the market reacted very postively when this thing first hit the tape. it might be too optimistic. it will not end everything. here is the interesting thing, the number, 11 billion-dollar number, if traders are playing off this could change. it could change based dramatic irkly on the language in the complaint f jpmorgan agrees to tougher language that it did more stuff bad or subsidiaries did stuff bad the number could go down. if it fights on language and language is important because that is where 30 party lawsuits come in. they use that language to sewage the bank. if they say less in the language, less onerous they agree to so the number goes up. that's where we are right now. clearly not a d

bear stearns, merrill lynch, lehman brothers. holy moly! how could this be happening? >> economists believe we are now in a recession. >> i saw this moving from wall street to main street. >> everyday the american people get angrier. >> losing farms and homes. >> breaking me, for real. >> we need to do something dramatically. >> we cannot simply assist wall street. >> you wanted $750 billion from congress. >> hank was doing things that were offensive to him. >> too big to fail is not acceptable. >> rose: congress these act. we're out of options! >> new york city fat cats expect joe six pack to pay for all this nonsense. >> the public wanted to hear those that made the mistakes are going to be held accountable. $and they're going to come back and ask for more! >> what we did was not for these banks, it was to save main street from a catastrophe. it's important that there be a historical record, so we don't replay this movie all over again. >> rose: i am pleased h.o.v. hank paulson back at this stable and in the interest of full disclosure, hank paulson has been and is a

the government asked them to buy bear stearns and the government asked them to buy washington mutualements they're working on right now are associated with things that washington mutual and bear stearns go wrong. shows you who you should do business with. we think every time the negative picture of them gets established, it's a pretty good chance to add your holdings at an incredible name at a very cheap price to book and wonderful play on the future economy. >> why is ginet a housing play in disguise? >> it's fantastic. housing and autos, first of all, community newspapers are huge advertisers in housing and autos and then they just are closing on -- in the next few months on buying 20 additional television stations from -- by buying b lo an that will give them 43 local stations. turn on the stations an you hear local auto dealers. so they dominate. if you are an auto dealer in the united states of america, or if you're in these communities and you want to advertise your residential real estate you have to use them and then, of course, they have a huge digital business on the side a

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me the most about what obama is doing is, you know, they are going after jp morgan for things that stearnshington mutual did, the banks that jp morgan bought at the behost of the government to save them rate. they going after jp morgan for things that those banks did before jp morgan bought them. to your point, what is the big, what are they going to do next time the government says hey, we need your help. come in and buy these guys? well, wait a minute. i don't know. if there were bad things at the bank you punished us. >> they are going for the blim that can pay out. they have money to make it right. >> david: also, jp morgan has a chairman, ceo, jamie dimon who doesn't like a lot of what the obama administration is doing. you think this is targeted to somebody for political reasons? >> david, it's absolutely true. there is another bank out there, bb&t that is punished because they tried to defy the government. having to take the tarp money. they didn't want to do it. they are being punished for it. so, jamie dimon is punished. he made it clear he did not like tarp money. he made it clea

plus, pay no interest for 3 years on beautyrest black, stearns & foster, serta icomfort, even tempur-pedic rest even better with sleep train's risk-free 100-day money back guarantee. get your best rest ever from sleep train. superior service, best selection, lowest price, guaranteed. ♪ sleep train ♪ your ticket to a better night's sleep ♪ >> stephen: welcome back, everybody. thanks so much. folks, my second guest tonight is the director of a new documentary, salinger, and coauthor of a book also called salinger. but if they have the same name, how will i know which is which? please welcome shane salerno. shane, thanks for coming and joining me. [ applause ] >> stephen: now -- >> i am good. >> stephen: again, i am the only thirsty one here tonight. now, shane, you are the coauthor of a new biography. >> yes. >> stephen: of j.d. salinger, you are also the writer and the director of a new movie again called salinger. >> that's right. >> why did you throw yourself into the life of salinger? why is he your white whale? >> he was, that is a good way to put it. his life is so extraordinary. when

morgan chase could buy the failing bear stearns. to buy meme lan. >> the situation in march, in the situation in the facts around bear stearns were very, very different to the situation we're looking at here in september. and i never once considered that it was appropriate to put taxpayer money on the line in resolving lehman brothers. >> his remarks did not calm investors or the system. within days and even hours of that news, other financial giants teetered on the brink. bank of america purchased wall street investment house merrill lynch. j.p. morgan chase bought washington mutual. wells fargo bought wachovia. and the government propped up aig. the world's largest insurer because it's financial best theirly paralyzed the banking system. paulson, former c.e.o. of goldman sachs ultimately did get congress to pass the controversial tarp or troubled assets relief program. under the measure, the government could disburse up to $700 billion to the bank in an effort to shore up the financial sector. ultimately it spent a little over 400

plus, pay no interest for 3 years on beautyrest black, stearns & foster, serta icomfort, even tempur-pedic. and rest even better with sleep train's risk-free 100-day money back guarantee. get your best rest ever from sleep train. superior service, best selection, lowest price, guaranteed. ♪ sleep train ♪ your ticket to a better night's sleep ♪ >>> women are more common to >>> women are more common to is shorter and the biggest problem is the e-coli into the bladder. when they get there they have these legs and once they are stuck they have a home and it is difficult to get rid of them. if you have no symptoms and you get a uti you don't need treatment. if you are symptomatic you are treated with antibiotics. young women we see in practice get of these. when the uti or urinary tract infection won't get treated it can find its way up to the kidneys. at that point, it is a kidney infection. the next phase is the infection can get into the blood and as you called it, urosepsis which is a deadly infection. in fact, the second most common cause of infection after respiratory. make sure you treat

plus, pay no interest for 3 years on beautyrest black, stearns & foster, serta icomfort, even tempur-pedicbetter with sleep train's risk-free 100-day money back guarantee. get your best rest ever from sleep train. superior service, best selection, lowest price, guaranteed. ♪ sleep train ♪ your ticket to a better night's sleep ♪ >>> so much for that phony scandal at the irs. newly released e-mails written by lois lerner contradicting official testimony the tea party official testimony the tea party washington overseeing the investigation of those who try to claim tax-effort status. among the e-mails, dangerous matter, cincy, referring to cincinnati, should probably not have these cases st. reason last one is important -- the reason the last one is important is this was sold as the rogue agent in the cincinnati office going after conservative groups. it seems that from washington the shots might have been fired. >> more remails to suggest they were discussing these conservative groups and how they were getting in the way of the democratic fundraising. the one thing that makes me furious, she

before---this is one of the bigger bubbles and it's starting to remind me of lehman brothers and bear stearns back in '08. so, i look for the action to wane and look for some selling pressure. > >what's your outlook on treasuries? > >treasuries i think are going to start coming down again. i think we had a natural spike yesterday based on what the fed said. but interest rates want to go higher. we've seen this for the last two or three months playing out that interest rates have started to rise and i don't think there's anything that's going to really stop the interest rates from rising so i think treasuries will start to get hit again. > >gold spiked yesterday. is that telling us anything at all? > >we had a tremendous amount of weakness in the u.s. dollar which naturally pushes up the price of commodities---in this case, gold. remember, gold was just 1420. it went back to 1275 so we're having a little bit of a bounce back in here. but i think gold fits along with everything else and you should be a seller of gold as well. > >thank you my doomer and gloomer friend. have a good trading day. >

it comes months before bear stearns went under in march of 2008.ise of the funds was among the earliest high profile signs of stress in the credit market that led to the global financial crisis. the bear funds and enhanced leverage funds had been crammed with subprime mortgage-backed securities prior to their collapse. they said they structured a cdo in may of 2007 of mortgage-backed assets that were primarily owned by the two bear funds and took huge losses when they imploded one month later. they say it would not have entered that transaction if it had known the funds were suffering substantial redemption requests and were desperate to secure liquidity to prop them up. the judge rejected the claims saying bank of america couldn't prove damages that could be traced to bear or the fund managers concealing any market moving information. a jury acquitted chofy and tannin of securities fraud in 2 09 saying there was no evidence of criminal intent or that they conspired to mislead investors. it was the first major criminal trial stemming from the finan

plus, pay no interest for 3 years on beautyrest black, stearns & foster, serta icomfort, even tempur-pedict even better with sleep train's risk-free 100-day money back guarantee. get your best rest ever from sleep train. superior service, best selection, lowest price, guaranteed. ♪ sleep train ♪ your ticket to a better night's sleep ♪ >>> in less than 140 characters, twitter announce it's filing to weekend a public company and sell shares to the public. but this filing is confidential. the mike row blogging site is able to keep it private under a provision of the jobs act because it makes less than $1 billion in revenue a year. twitter will have to make some of the information public 21 days before it starts pitching the stock sale to investors. and with the recent run-up of facebook and linkedin, it could be the next hot property. but the week in tech belonged to apple. biggest day of the year for apple, how one analyst described tuesday's event. it was a colorful launch, for not one but two new iphones. by wednesday, apple shareholders were seeing nothing but red, though, as the stock dr

so in my view -- bear stearns to me, though, people sort of forgot. came precariously close to declaring a bank holiday for the first time since the great depression. and it was a fire sale and to me, in many ways maybe bear should've failed in march. if they failed in march, we might have been able -- >> briefly -- >> the fdic has been good and we use the fdic's expertise in shaping our liquidation authority. sheila bair was a big piece of it. >> we're going to slip in a quick break and continue the conversation. i'm going to send it back to becky. back to becky. >> thank you, andrew. when we come back, we're going to wrap things up from washington with chris dodd and barney frank. and more on larry summers with drawing his name from fed consideration. we'll take a closer look at who is still in the running and what they bring to the table. robe grover norquist will be joining us. >>> we're back in washington, d.c. live with the two men responsible for the financial reform act. and my question is when you think about where we are in that act as littl

available free online. 8,000-word prologue that the -- that, you know, wasn't too long after bear stearnsat ben bernanke and i went and talked with barney frank who was terrific during the problem. and we'd asked -- said we needed something like this. and barney explained it would be virtually impossible. of course, he was right, look how long it took president obama to get these authorities. it would be hard to get them from congress without saying we have an emergency. and from that time on we talked and i talked quite regularly with dick. encouraging him to raise capital. >> you think he didn't understand? he called you the day after trying to undo the bankruptcy. >> it was very sad. can you think of anything sadder than someone running a firm it was their firm. it was his firm when it failed. my view, i'll say this just generally about the ceos because i interacted with a lot of ceos running major firms during the crisis. and i looked at some of the ceos more able than others. i think they were all good men and they were dealing with a crisis of which they haven't seen in a lifetime.

since stepping down as bear stearns' ceo in january of 2008 jimmy cane stayed out of the banking business focusing on the contract bridge circuit where he's currently ranked 23 in the world. in addition to his $25 million apartment at plaza hotel in manhattan, he owns a home on the jersey shore and condo in boca raton. aaron kalin, a rising star at lehman brothers and the first many female cfo. she told cnbc the firm was headed in the right direction. >> we are in a great spot now with this capital behind us with wind in our sails. >> art she left lehman in june 2008 she did a brief stint at credit suisse before leaving the business in new york altogether and declined to do press until the recent lean-in debate prompted her to write an op-ed in "the new york times" on the work/life balance debate. in 2007 countrywide ceo angelo ma sill low adamantly told cnbc his company wasn't going anywhere. >> no more chance for bankruptcy today tore countrywide than it was six months ago, a year ago, two years ago and when the stock was $45 a share. we were a very solid company. >> three years later w