it made. >> aig plunging.at one point they were down 70%. >> they faced the hammer of a credit rating agency downgrade. >> narrator: once again geithner and paulson were only now learning the details about the hidden business dealings of a major wall street institution. >> everyone was having to learn all about aig, you know, in real time, learn about the institution at the same time that they're having to make decisions. and not even having the time to figure out who the big counterparties are, because you're faced with... it's monday night, and if you don't do something in 24 hours, you're going to see the consequences. >> here's this... you know, this mammoth institution that turns out to have an enormous hole in it. and, again, policy makers just come to grips with the extent of the challenges and the problems days before its imminent collapse. >> narrator: geithner realized that if aig went down, the consequences would be even worse than lehman. he argued for another bailout. >> tim geithner thought that

plus opportunity in aig. we're talking to the analysts with a bold call that's purning the company into the green, even as the market sells off today. so what's shaping up to be a pivotal day for the markets. we've got big investors to help guide you through these rust waters. tom barrack has been called the world's greatest real estate investor. over the next hour he's going to give you his best ideas for investing in that space. we'll find out where he's making his next big belt and you'll hear how he's monetizing the celebrity meltdown as well. later in the show, clairian capital's mark utay makes his first c nshs appearance in a year and a half. he will tell you whether stocks or bonds are a better investment right now and where he's making money these days. the market today, worries about the fed and europe, $27 billion invested in the real estate world. obviously want to know what higher rates mean for your world. what a great day for cnbc and for the cnbc euro. we appreciate you joining us very much on

aig has lagged, and we still think it's really cheap. >> what is aig's business?n't know what they do. >> it's a very complex business sort of, again, like citigroup. you've got to study it a long time to really get comfortable with it, but it's a global insurance company. a lot of different lines of business, but we think it's one of the premiere global financial companies, but they made a lot of mistakes in the downturn, and they are still trying to run off -- either run off or selloff some bad businesses. we think there are unlikely to be any big negative surprises to the downside and when they finish with the bad business they are left with a fabulous global franchise and today the franchise is changing at 40% to tangible book value and we think that is likely good. >> not hurt by the low rates and the flow of the yield rate. >> i think all insurance companies are sort of in the short term, that's a head wind, but we think when you're buying a global franchise business at a 40% discount to book you're getting compensated to wait until that improves. >> does ai

in other words, aig, remember them? their shares higher this hour after our own david faber broke the story that the federal reserve is moving to sell the former assets of a specific investment it bought from aig at the height of the financial crisis. david, what do you got? >> recap for it. a complex story involving something called maiden lane iii. as brian said, one of those vehicles set up to rescue aig at the height of its crisis in 2008. today the federal reserve bank of new york has confirmed to me that in fact it has changed its objective -- so-called objective, with regard to the assets within that vehicle, such as asset backed security, debt obligations, abscdo. $17.8 billion total value. they're saying we're going to explore selling some of the assets in here. in fact, it could be all of those assets in light of what they're saying are improving market conditions. and the fact that they had great success in selling similar assets although less complex ones out of the maiden lane ii vehicle. of course, all of

aig i agree is a macro player on the stock market and they are in general.much more of a play of what's going on with the insurance business and a pricing perspective on a global basis. i have reservations because of what we are seeing with better pricing in the u.s. >> we have to look at it. what is the top trade for q2. the commodities king and contributor of the world renowned joins us now to give us the playbook. top trade with 2012. >> the best is agriculture going forward. agriculture and the ability to shift around the world. those are the two things we need to pay attention to. the biggest corn crop the united states has seen. a monster crop and the biggest amount of acreage in the corn since 1937 and back then all it grew was about 30 and we are growing 165 bushels and useing it and exporting it with baltic freight down where it is. you want to own agriculture and the shipper who is move that. >> the volatility in the space is tough for a lot of investors and it should be along for the ride and saw where they went. how do you handle that and how do

aig? what could be better now? aig. how about these tech stocks. the themes that have been hammered exploded higher today in a huge way. equinox, a pure play on big data farms where all the information stored in the cloud. 19 point move today. that's the kind of move you see in a takeover. going from 150 to 169. how about the citirx software, a service cloud play. stock ignited for 9.5 point move for $77. $86. wow, i want that. they have been having a hideous april. so much for that. hey, look for salesforce.com, crm, to take out its high soon mark benioff, he has it going. how about total cramer fave xilinx? you need chips from xylinx to make sure its smartphone can get the data and video it needs so you can watch mlb.com while pretending what your data is yadayadayad'ing about. i have been waiting for a fabulous break-out quarter here. looks like we got it. i don't think it's over because after the close tonight amazon reported a monster, a blow-out of the 18-wheeler variety, and i think it's going to juice things again tomorrow. i got to tell yo

and we've actually hold 70% stake in aig.nd so, ultimately profit or loss of tarp depends upon what we're able to get for that, swells our interest in over 400 banks. >> all right. and she's one of the folks that counts the tarp mess. the tarp mess continues, the trouble continues, the new inspector general for the financial bailouts laying it out for me on fbn if you don't get, you should demand. are you ready to admit, young man, i was righten were you completely wrong and despite your superior mind and superior background, much more advanced decades in years, that you were completely wrong and i was completely right. go ahead. >> i was completely right. tarp was a life saver for this whole country. it cost us 60 billion dollars, it was cheap at twice the price. >> neil: here is what you're going to tell me. >> saved the entire financial system. >> neil: you're telling me, it would have been armageddon without it and you can't prove it. >> it would have been armageddon without it, the binx would have failed and insurance co

d aig h, let me turn to you. as you well know, it's hard enough to get veterans into the va system to receive mental health care. once a veteran does take a step to reach out for help, we need to have knock down every potential barrier to care. clearly the report your team produced shows a huge gap between the time that the va says it takes to get veterans mental health care and the reality of how long it actually takes them to get seen at facilities across our country. now va has concurred with all of your recommendations. but i think it's clear we all have some real concerns because some of these issues have been problems for years. so can you address a question of what you think it would take to get the va to get this right this time? >> i think to begin with, the veteran population is dispersed across the krumpcountry and thes not evenly disbursed across the country so those veterans that go to fixed facilities to receive their care, the va i'm guessing is probably trying to addresses in this current plan for

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aig's position has, quote, stabilize. shares of aig reflected that. above the ipo price and hearing a near term float because of that and the market trading it is the aim. simon? >> okay. david, did you want to comment on that? >> interesting. this is a valued investment. i remember during the death throws of the back in the crisis. there had been talk of trying to sell it. very difficult. this does appear -- do we have sense of the overall value is perceived to be for international lease finance? >> david, as you well know, filing for an ipo it is a dual track process, interest to buy the entire thing or the units. my checks is there's not many interesting parties and that an ipo at least a partial ipo of that unit is more likely scenario that as we mentioned many options remain on the table. this is a pretty easy to value asset. i think people looking at it as straight book value and valuation with 7 to 10 billion earlier on. my sources tell me closer -- between 6 to 8 and 8 even for 8 billion would be a stretch. thinking about a 50% deal for that u

could end being a positive as well for aig. news of which we already heard from kayla tausche may also be looking at an ipo. again, the new york fed spokesman confirming that they have changed their decision strategic decision to explore possible sales of some of the assets in the portfolio of maiden lane iii citing market conditions and a successful sale of the assets in maiden lane ii. send it over now for the beginning of "power lunch" with tyler and sue. >> thank you very much. three hours or a little less to go in the trading day. stocks getting beaten down on worries about europe and disappointment with the fed. investors think qe-3 may be d.o.a. that's because the economic data keep getting better. we'll look for the stocks that will be winners when the fed takes the safety net away. >>> ty, major layoffs at yahoo!. the company trying to become smaller, nimbler, more profitable. but is size really their biggest problem? we'll talk about how to fix the stumbling giant. >> eddie lampert says major retailers have to adapt o

d aig h about those being flawed. if -- i don't know if this is the same thing or not but the report i read means that they were kind of jimmying the numbers to look like people were getting treatment in a timely manner when they weren't. >> i think that the, the problem is that the schedulers were inconsistency operating by business rule that said you should schedule account appointment to the date that was desired. and the desired date, what is the desired date in the desired date the patient wants, the doctor wants so that not to and fro of scheduling, i think va created a metric, the business rules for which are not supportable in a systemic way. so when you look at the data set, it's not usable from my point of view. so i think that is in large measure part of the problem with the access measures across the system. we also hear reports of gaming and of people you know trying to game the system. but i don't have evidence that i can give to you of gaming but i certainly can say that the data set we don't think the

aig, they report thursday after close. the ceo will tell an amazing story. when he was here with us not that long ago, he sat here and he just wow, made me feel good about the steer. many of you were worried about the u.s. government having a stake in the company going back to the '30s, maybe they do sell, but i am confident what matters are the numbers. they're going to report a terrific number. it will be a terrific number. friday, earnings day. no. we don't care. friday we're focused on 100% the employment numbers. the weekly numbers up to it, impossible to believe this number is good. gdp was screwed up, talked to steve liesman. i don't know if you can trust it, people will trade off it i think it will be bad. traders beware. i suspect we will get tough employment numbers. investors, i have a game plan. use the week to buy great growth companies that had the best quarters as prices you consider lucky that you got. ken in florida. ken? hey, sunshine. >> caller: hey. >> what's up? >> caller: cramer. boo-yah, ken in florida. saw big earnings with expedia. c

tbe cistian today is vey ecl,ndt aig >> roman catholic tradion mmores4 stations of the cross, beginning with jesus's pontus pilot. -- condemnation pontius pilate. each week, a procession of the cross. years. >> it allows us to follow i jes'eps. the idea is that we travel with m. weee tdo as he did in times of pain and suffering, t especially in the help of the resurrection. that is the true meaning of christianity. t yngerman women have taken up residence in a hostel for pilgrims. they have just graduated from high school. bair in jerusalem toxpiee the unique atmosphere of the holy city. -- they are in jerusalem to experience the unique atmosphere of the holy city. >> they truly want toake the thhajes lk, kw that he suffered four us. that is what impresses me the most. >> he runs a souvenir shoplo thvia dolorosa. he is muslim, but he celebrates both religions. >> there is no strike your. it is governments that use religion to cause problems. >> the blisters market is no place for peace and reflection. -- the oysters market is no -- the boisterous market is known place for peace and refl

. >>> a slap on the wrist for ceos at general motors, ai gmplet and -- aig.nd much is apple's ceo making? >> only 120,000 jobs were created in march, expecting much more than that. as we get the full reaction this morning and it is pretty bad now that stock markets will open thrill at this l. -- open fillly today for the week being we have due futures down 100 points. >> let's talk about the ceos. >> aig, allied financial and general motors have not fully repaid the exorbitant bailouts that they got from the government, which the american pax dayer we height of the financial crisis. for the second year in a row, the government is freezing their salaries. do not feel too bad because they are making about $10 million a year. >> they're still doing okay. speaking of ceos who are doing okay of course the guy at apple. he is doing really okay. >> yeah. tim took, the ceo of apple, kind of makes $10 million a year look like pennies. he makes a million dollars a day. or $42,000 an hour. basically, $380 million for all of last year. here is the deal with the salary. h

rumors of warren buffett buying the treasuries aig. tell us what you're hearing. >> well, those are the major things we're hearing. it has to do with what warren buffett is saying and some of the comments coming from vice chairman yellin. we're still focusing on the macro and we are getting away from things like earnings but yet this is what has been driving this market over the last quarter to quarter, year to year. so we are at an inflection point right here. we're going to see what happens in the last hour of trading. depending on what focus is, we should carry through tomorrow. if google's earnings numbers, they are going to be impacted by higher gas prices. it may not have an effect on google but some of the other stocks. >> gord gone, lgordon, let me gt your take on wells, lots of focus on, that and we all want to hear what the firms have are to say about the mortgage markets and capital markets. >> it seems right now that investors are getting in behind this market, that we are anticipating a correction and that they are not goi

that's to a large extent what happened to bear sterns, lehman brothers, and the holding company of aig in other words, three of the nation's largest financial institutions had made more bad bets than they could afford to pay off. bear stearns was sold to j.p. morgan for pennies on the dollar. lehman brothers was allowed to go belly up, and aig, considered too big to let fail, is on life support, thanks to a $123 billion investment by u.s. taxpayers. >> it's legalized gambling. >> it's legalized gambling. it was illegal gambling. and we made it legal gambling. >> with no regulatory controls. >> with absolutely no regulatory controls. zero, as far as i can tell. >> i mean, it sounds a little like a bookie operation. >> yes, and it used to be illegal. it was very illegal 100 years ago. >> in the early part of the 20th century, the streets of new york and other large cities were lined with gaming establishments called bucket shops, where people could place wagers on whether the price of stocks would go up or down without actually buying them. this unfettered speculation contributed to the

aig had derivative data. well, name one headliner from aig. outside the wall street world, most american citizens couldn't. those were faceless corporations that have somehow brought us to the brink of financial meltdown. and then we have bernie, a phase, a family, someone to be the target of all of their free-floating rage and anger come of this fence being betrayed because that is what he did rudy betrayed people who trusted him. well, that is the wall street did. it betrayed people who trusted it. but he was a ham and they hurt and it then. and i think it was the mood of the country that made him so much a target of public rage, rather than anything unique about them. >> broods stood by him in a lifetime. and he and she is still standing by at ernie had better things change. can you talk about that? >> it has changed and i was able to interview with this file for an article in the times about her life since then. she realized that her loyalty to bernie was costing her her family. now, why did she stay with him? the one time madoff lost his

out to make a difference with a race to take up the state level hosni mubarak was ousted out about aig ever got was probably the most common political group skilled at conflict just by previous pledges not to do so triggering fears of pushing to intrude on a strict islamic. mosque mosque who calls the case of victim of these politically motivated and violence to bring damage to russian arms dealer. if you are supposed to sentence the business not to twenty five is the conspiring to kill americans and the. next hour special reports the thomas miller l a fad telling a story of one man whose death penalty was overturned off his life and. the unofficial motto here is that we don't joke around in texas. if this is so original continue with as you seem to do just in the. rules for work it's got to be the joke so material that we soon can be useful for the person we thought the day this will be executed in the midst of the system work for the written treaty. all of these inmates know that death row is an impossible place to escape from. throughout the years thomas miller's hopes of his case b

aig shares were up today after cnbc reported aig could launch the ipo of its aircraft leasing business, ilfc in the second quarter. earn billions from the ipo and other asset sales. >>> delta airlines is considering buying a conocophillips refinery for over $100 million in a strategy to save on rising jet fuel costs by refining petroleum in-house at the trainer, pennsylvania, based facility. sources say the deal would be the first of its kind for after airline. back to you. >> cnbc's ayman javeri eamon ja. >>> can santorum still surprise in his hometown of pennsylvania, or is it is time for him to get out while he can still save face? we will ask billionaire foster freeze. he is the top doaner to the pro-santorum red, white, and blue super fund pac what he thinks about this story. ♪ ♪ darling you got to let me know, should i stay or should i go ♪ every time a local business opens its doors or creates another laptop bag or hires another employee, it's not just good for business, it's good for the entire community. at bank of america, we know the impact that local businesses have on comm

something happened during the great ill out what you would wall street companies, aig, goldman sachs, general motors go to the federal government and say we've been reckless, greedy, irresponsible. bail us out. do not hold us responsible for decisions because one of that happen, the rest of the country understandably says okay, if you're getting a freebie, a bailout, where his mind? at a chapter called the moocher's dilemma. i want to have two of the many chapters for you. this is based on reality. consider the escalating temptations in the moral dilemmas in the same areas. number one, car keys left in a a parked car in the butter left running. do take advantage of the situation drive off in the car? why or why not? number two, the clerk at the grocery store gizzi too much money change. you keep it and point out the mistake, why or why not? number three, your bank statement includes a larger balance then you believe is warranted and released the bank has made a mistake and credit your account with too much money. to take the money or can't say he made a mistake. number four, governmen

of hold together and fight the enemy and for that eventually the whole financial bubble will be for aig the whole the river this market. i don't know. about. imagine but trillion is the thousand trillion and it's all bubbles will be. happy that there will be mass destruction. still ahead at one time about a decade ago dr mark barber's advice for young people involved moving to asia and i want you by well you will not believe what he says now as part of then by how times have changed you'll hear it after the break but first our closing market numbers. we just put a picture of me when i was like nine years old i like to tell the truth. i'm obsessed and i am in total ghetto friends that i love rob and get coffee is a planned trip. but he was kind of the guest today. i'm very proud of the role without you it's a place. you know sometimes you see a story and it seems so silly you think you understand it and then something else hears you some of the part of it and realize that everything is or you don't know i'm charged is a big. what drives the world the fear mongering used by politicians wh

and you look at the other insurers like metlife, aetna, aig, they were up about 20% so it certainly lagged the sector. now aflac is to a certain extent gotten over its troubles. it had a bad yush mean bond portfolio. a lot of people say that is resolved. a lot of people say if you are looking for a contrarian name and maybe even a takeout look to aflac because there is another big insurer which didn't do that well in the first quarter that was berkshire hathaway. that stock was only up about 7%. and we all know that warren buffett likes to buy cheap stocks oy out of favor. >> tom: and he has made a name in insurance over the past several generation. what about gannett, gci, best known for "u.s.a. today" and owns tv station this stock is not necessarily out of favor but it hasn't rallied as sharply as the markets. if has kind of flat lined in the mid tunes. >> well, the sector is out of favor. everyone keeps saying that newspapers are going to got way of buggy whips. and when people think about gannett they think about u "u.s.a. today" and the lovely pie charts when they stay at holiday inn

because i think if there is anything, i remember when we had aig and all these companies giving bonuses for bad behavior, i was very loud and sometimes loud by myself. but very upset about it. i think when you have got bad actors, the last thing you want to do is be -- is to give them bonuses. even if there is a two-track process and that's the impression i got -- two tracks here. some kind of way we don't want -- you know, as you go about the business of trying to re-establish this trust, you don't want the public to be confused about folks going out there and partying with their money. and at the same time, getting a bonus. i mean, it's like slapping them in the face. so i'm

because they said we meat a bet on aig that didn't turn out so well. do? he signed a law lifting some of the few rules that limit what analysts can do. these are the guys who have violated every obligation to you over the past ten, 20, 30 years. the president is helping them out once again. you know the old saying those who don't know history are going to repeat it. we are. they are going to break the law again. a couple of weeks ago craig smith resigned to goldman sacks and said the analysts there referred to clients and muppets. they should have referred to congress as puppets. the next time goldman saks analysts cross the line we indict the company. take back all of the money the ceo has learned in the last ten year. let's give them the right incentives, not a little slap on the wrist. something that will really the newest voice in cable news is on the new news network. >>jennifer granholm joins current tv. this former two term governor is politically direct. [ male announcer ] this is lawn ranger -- eden prairie, minnesota. in here, the landscaping

gm, aig, and ally. >>> a tough economy in greece.k news caster is pelted by eggs from protesters. voters there go to the poll next month. >>> a snap of the photo of the full moon last night. i put it on facebook. a giant pink moon. the first full moon of spring. it's named for pink moss, one of the season's earliest plooming spring flowers. bill weir from the "nightline" crew. keep them coming. >>> when we come back, remembers the painter behind works hanging in 10 million american homes tonight. is your home one of them? roke. i was worried. i worried about my wife, and my family. bill has the most common type of atrial fibrillation, or afib. it's not caused by a heart valve problem. he was taking warfarin, but i've put him on pradaxa instead. in a clinical trial, pradaxa 150 mgs reduced stroke risk 35% more than warfarin without the need for regular blood tests. i sure was glad to hear that. pradaxa can cause serious, sometimes fatal, bleeding. don't take pradaxa if you have abnormal bleeding, and seek immediate medical care for un

at goldman sachs, $129,000,000,000 one check to goldman sachs to bail them out for their bad bet on aigns of dollars to your buddies in the corporate suite on wall street. that's where there is dependency, not down at the bottom. you show a capricious disregard for the interests and needs of those who struggle and show enormous beennevsinceense beneficinec to those at the to the. we want an opportunity society where there is fairness the same rules for everybody. we don't want handouts for anybody. those at the bottom or those at the top. you know governor christie? i know you are a fan of bruce springsteen. a friend saw you at the vip concert last night at his concert he played an amazing song jack of all trades. i want you to read the lyrics of that song. i know you trust bruce. here is what the lyrics say, the banker man grows fatter. the working man grows thing. it's all happened before and it will happen again. governor christie pay attention to those words. those words are what you should think etch-a-sketch candidate, an image where romney is anti gas. >>i'm a political junkie. t

financial sector and he also was shot as the fiscal pact that had been signed he wants to withdraw from aig so he's taking on a very strong hard line approach these are the top four contenders for the top job in france so based on the rhetoric they've been using in their campaign france's european neighbors as well as other partners understand that no matter who takes on the presidency there will be disruptions to what the form of continue would be baby expect it's just a matter of to what extent these changes will impact the relationships and as far as french people are concerned they have a few more hours left to make that choice. right. historian and economist. maintains that the election campaign has failed to address the real issues affecting the everyday french citizens. for the moment you know france has a very weak economy with the huge problems problems of production problems of public debt over ninety percent of the g.d.p. problems of a massive unemployment problem to integrate the immigrants and so because this campaign was on the ball in fact sheet to discuss how really to refor