aig needed 182 alien dollars in 2008. bob benmosche came in and did the job and cut jobs and sold units and repaid that big government bailout. >> this will be applauded by anybody on wall street. hancock is truly one of the revered characters and wall street. we will have much more on this. quantitative finance executive. >> he created the derivatives business. >> he was part of it either way. >> certainly, risk management is front and center. this was beautifully managed by aig. the transfer of leadership is one of the hardest things to do. incorrectly -- when it's done correctly people don't notice it. iraq city hasgest fallen with tribal gunmen close to capturing a town that has the largest oil refinery. this underscores how the prime minister is losing his grip on the country. >> there was a play up to this over the last number of months but no one was prepared. stunnedot say they were but no one was prepared for the rapidity of this from june 6 to where we are this morning. >> things have deteriorated quickly. >> ia

you runs the life insurance operation at aig. steve miller, the chairman of aig, told me that he plans to stay on, but we will see how that plays out. >> there are questions about peter hancock's mandate and how he will take aig to the next phase. and here is what bob said. "peter will be continuing the momentum at aig. if the board wanted a genetic change, they would have look for someone outside. i put pressure on the board to name a new ceo. there was too much pressure about it. this is a process that has been going on for a long time. bob and moshe had cancer. they looked at some external candidates, but frankly they landed on -- they had these strong internal ones, and as rob said, they like the direction they were headed, so they meant about peter. >> what are people telling you about what peter is going to do with aig? is it big issue with aig is a vastly different company today than what bob benmosche inherited. >> is a smaller company had clicked it is much smooth -- company. >> it is much smaller. they used to have thes

how was the aig that mr. hancock takes over different from the old aig?at smaller and more focused company, run as one aig, rather than independent silos. it will be a much better run company. they have just come through the survival mode. the stabilization mode. getting ourselves down to the core businesses. that is the company that peter takes over. sanford bernstein is suggesting the size of aig could become -- >> it has already shrunk down quite a bit. by anointing hancock at your new ceo, that is continuity. what new initiatives would you like to see aig under hancock take? >> all of the big stuff, the restructuring and reshaping of the company, is now complete. we are now a property-casualty company on a global scale. we are a life property on the domestic side. we're going to between gaining and sucking in and adding a few things here and there. we're no longer doing this massive reconfiguration of the company. 65,000 employees around the world, we are the largest insurance company on the planet. now, it is about execution. >> you have done media a

now for more on changes in the executive suite of aig. position thecutive parting september 1, earlier than thought. for more, i am joined by betty liu. shames about robert m a meauchet and his decision to step down early. >> the only thing surprising about this news, really, is that it came earlier than expected. no one was surprised that he was going to step down. he said he was going to in february. he just wanted to do it a bit earlier. and the reason why, he said, is that he felt the board was taking too long to make this decision and that the company was on hold because of it. i actually talked about him last night recently. i set a date in february to make the transition, but i also said in order to make the transition at aig, it would have a newortant to ceo. the transition is taking too long." most of the people in this world have praised benmosche . here is what feinberg said this morning on our program about benmosche. effective full stop he knew everything about the company and he came prepared to treasury and we personally in

we've got breaking news on aig. aig has named a brand new ceo. the ceo is mr. peter hancock. he will be the president and ceo starting september 31st, taking over for robert benmosche who took over the company during a very difficult time. he currently serves, mr. hancock currently serves as executive vice president of aig. so he has been within the company. he also will join aig's board of directors. that will be effective september 1st. mr. benmosche is expected to resign from the aig board of directors on september 1st. adam, he will continue to advise peter hancock going forward. adam: benmosche as you pointed out he has been crucial to aig's revival since 2008. going into what was a beaten company and bringing them up. he stood up for when a lost country was demanding blood because they were paying bonuses. he said i need staff there. he stood up for them. liz: he did. the company certainly done well. it is pulling back slightly. it was pretty much telegraphed that mr. benmosche would be stepping down. that is our breaking news. we go back, so sorry to interrupted, dan.

he was ceo of delphi in his cause with aig. company hawker beech craft. we will speak with him in just a bit. "squawk box" will be right back. ♪ making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. become the next business to discover the new new york. beautiful day in baltimore where most people probably know that geico could save them money on car insurance, right? you see the thing is geico, well, could help them save on boat insurance too. hey! okay...i'm ready to come in now. hello? i'm trying my best. seriously, i'm...i'm serious. request to come ashore. geico. saving people money on more than just car insurance. . >>> the housing mode has been remaining so

although we are able to find a solution to merrill lynch and aig with a willing buyer, we had no goodoption. in the weeks after that when the system was basically breaking down there was a classic run across the system. i got a phone call one morning from this very prominent banker, maybe 630 tonight. i called back what has been said you have to get that you're out of your voice. don't talk to anybody else in your firm or outside because if they hear you, you know, it will be, it will be terrible. i said, you can replace it will what anger over to view up which can't let people who that way. i explain in the book if you were a weapon, you were scared to death. it was the people who weren't scared you had to worry about the most. the people who were scared were more smarter and more competent. >> was there anybody who actually wasn't scared? >> yet. remember after lehman that morning after lehman "the wall street journal" editorial page thought it was terrific. they said thank goodness they didn't step in and find a solution to prevent the default. they thought it was going to be just

government rescue money was critical to the recapitalization effort of aig.ayer fund were also critical in meeting security borrowers demands for cash. securities lending counterparties received 43.8 billion in the last quarter of 08. comparable to 496.6 billion in collateral postings and payments to aig's derivative counterparties. the record is pretty clear here. the taxpayer bailout associated with aig, which i opposed by the way, applies both to its financial products unit in london and to its state-regulated insurance arm right here in the u.s. but on to my question here for the secretary, secretary lew. as you know the u.s. and e.u. are currently engaged in trade talks as part of the ttip negotiations. with regard to banking and securities regulation the e.u. put forth a limited but reasonable proposal to strengthen u.s.-eu regulatory cooperation and to create a more results-driven dialogue that avoids market disruption and regulatory fragmentation. it is focused on consistency of regulation, limiting extraterritorial impact and laying the foundation fo

hancock has been at aig since 2010 and currently serves as chief executive officer of aig property casualty you. >> interesting to read the statements from stuart miller who we saw last week on air and he's saying aig, kate, a far stronger company than five years ago focused on the core mission to help businesses around the world prepare for the future, recover from loss and retire with confidence. >> no criticism of peter hancock, sure he'll do a wonderful job. i'll miss bob benmosche after the taxpayer bailout of over $180 billion. very interesting colorful ceo, and he did preside over a turnaround period for the company, so an interesting guy to cover. >> yeah. defying the nay sayers, jason, to some extent. tim, just curious if you would put insurance companies in the same group as financials here when you talk about places to look right now for investment opportunity. >> i think what people like about insurance companies and why the cash flow is where they model out. metlife is a place we've been investing. aig is a company that comparing it to the former is impossible. this would be a

several major investors are investing in hank's lawsuit about the legality of the aig takeover. they are looking to recover $50 billion in damages. they said the way they did the deal basically screwed shareholders compared to the other deals. steve cohen, ken langone, staun drunkenmiller are interested in rights, is right a security. you fund the lawsuit. defray -- melissa: that is quite a cast of characters piling on. this. >> this is good story. melissa: it is a good story. >> they all attend ad march 6th meeting conducted by hank and david boies, his high-profile attorney. david boies went through the case. here is why we think we have a shot. this case survived several attempts by the government to dismiss it. it won class-action status. boyce won the right to depose ben bernanke, tim geithner, hank paulson, all the government officials that are essentially around the bailouts which we have reviewed those depositions. melissa: does it help you or hurt you to have steve cohen? >> that is a great question. melissa: maybe he should be a silent investor. >> let me point out two

actually, a controversial lawsuit filed by former aig boss hank greenberg.ith the details. the wag gones are circling. >> i mean, this is a pretty wild story. fox business has got it totally locked down, confirmed. the lawsuits against the federal government over the legality of the aig bailout, what greenberg is contending, that the bailout which wiped out shareholders -- including himself, he was still the largest share shareholder es he got blown out -- that that amounts to an illegal taking, when you wipe out shareholders, the government took the company away from shareholders. what he's saying is they didn't pose that type of onerous terms on goldman sachs, morgan stanley -- liz: who all got bailed out to the tune of 100 cents on the dollar. >> here's what's going on, he's suing the federal government. he's winning a lot of demotions. david boies, his lawyer, has deposed, geithner, paulson, you name it. it's going to trial. and now several large investors are thinking of, get this, investing in the lawsuit. how do you do that? laugh this is what you do,

division.abolish the they were the regulator of aig. i had an alternative proposal. one was to abolish them. if we could not do that, change the name to the office of dispensation. we had the votes to do the first. ris next big thing -ch talked about. alan greenspan always argued if you did have some regulatory authority over the fed, you would not be able to have monetary policy. rate, that was not the major problem. and ther problem came representative of one of the objecting groups is here. this state chartered banks and the small banks came to us and they said we do not want to be regulated by the occ because you will be throwing us in the same arena as the big national banks. one of the things i should say -- the big national banks had very little political pull. the political problems with the deal with game from the credit union's from the insurance agents and the retail banks. the community banks way out way to the big banks and the community banks said we will oppose any bill that puts us into the same regulators. that was the reason. that is what stop that

>> i use aig as an example. >> mr. secretary, you know as well as i do it was the financial portion of that company was the problem. the connectivity of that. yield back. >> the gentleman's time has expired. the chair recognizes the gentlelady from wisconsin, ms. moore, for five minutes. >> thank you so much, mr. chairman. mr. secretary, it's nice to see. thank you for coming to speak with us today. i guess i was looking for your testimony, and i couldn't agree more with the formation of fsoc was an important strategy towards having all of these senior regulators and principles look at the system across the spectrum, because i was here, again, when mr. paulson came with his four-page bill saying give us $700 billion. don't want to go to that anymore. but my question is, in what -- i think a good process leads to good policy. so i guess i saw mr. roy what all, the fsoc insurance expert, dissent from the decision to designate prudential. and they were designated as a sifi. and we saw the sec push back and give -- reform.

. >>> and a big change at aig this afternoon, robert benmosche is out.peter hancock takes on both jobs, right now he is an executive vice president. benmosche is expected to resign in september but will stay on in an advisory role. benmosche is credited with steering the company through the financial crisis and paying back almost all the $2.8 billion received from the u.s. treasury. >>> and in detroit today, two very different agendas for the gm meeting. shareholders were asked to vote about improving new directors and incentive plans for top executives. but outside, protesters were demanding gm executives be held accountable for defective ignition switches linked to at least 13 deaths and the recalls of millionings of cars, phil lebeau has more. >> reporter: less than a week after ceo mary barra announced the recall of the vehicles from the faulty ignition switches, general motors held its annual shareholder meeting here in detroit. it was a relatively uneventful meeting. there was no update on the recall investigation. and gm ceo mary barra says they'r

aig ili say wafndrn ere,80bl eco.theerheff aghbo >>resud forfic tccket fsc.heav weneotis. ck w thairs ie pumangteinichohan inanti aft pref itlg thepo50 ut aythew yont tocommuneoamice derti> fa movint rst reem alert forl letw coming u >>> secretary of state john kerry says the obama administration is willing to talk with iran about the security condition in iraq. he also says u.s. drone strikes may well be an option here. the u.s.s.mesa verde is in the gulf. this gives the president another option if he decides to protect u.s. interests in iraq. it joins the aircraft carrier "u.s.s. george h.w. bush" and other ships. a men mohyeldin has the update. >> reporter: al qaeda continues their advances on the northwest part of iraq. the latest news we're getting today is that the al qaeda linked military group isis is north of the city of mosul. they won't stop their offensive until the prime minister nuri maliki steps down. they want to establish a state in syria, iraq and beyond the region. >> in the last 24, 36 hours we see that it's more them. it's more them establishing courts

aig said in a joint statement that they have committed $1.5 billion toward the venture. >> number three operating officer of the microblogging site, ali rowghani, is resigning, the biggest departure since the company went public. the position will be unfilled and he will continue as a strategic advisor to the ceo. >> number two, restoration hardware with tremendous growth tripling in the third quarter, -- first quarter. they are surging on the news hitting the highest level since the ipo in november, 2012. >> number one, guys, lululemon, cutting the first -- full-year forecast even as first-quarter earnings beat estimates. the founder and biggest shareholder lashed out at the board for being too focused on short-term growth stock is gett. now to the call of the markets, jeff presented, chief investment third core bank. crozenick. why are you alarmed? >> with regard to the equity call, we are still overweight. markets a lot of complacency, and no more complacency than we see them in the inflation field. we think labor markets are theter because of long-term unemployed. change the equatio

katie fehlinger will track the weather if aig changes getting are youd for the weekend much the teamtarts at 4:30 on cbs-3 and continues all the fun on the cw beginning at 7:00. >> you're right about those weekends though. they've been nice. >> sure have. >> kathy, thanks. >> long wait night for the sixers. still going on the draft. >> long term strategy as well. >> yes. >> long! >> people were teasing, social immediate yack everything. we'll be long time waiting for this -- look at that guy right there. >> he's happy. >> look at that. that's our new guy joel embiid but he's hur. we'll have to wait. the investments will pay off. we'll talk about it coming up i i never know what kind theof adventure awaits. that the days are longer, and the breeze feels a little sweeter. and, thanks to volvo, i'll pay nothing for repairs or maintenance for 5 years, nothing. they even cover my first month's payment. so, i'll be happy wherever the summer takes me. the wonder of summer event. the 2015 volvo s60 with complimentary first month's payment. starting at $329 a month. >> sixers fans asked to be

katie fehlinger will track the weather if aig changes getting are youd for the weekend much the teamtarts at 4:30 on cbs-3 and continues all the fun on the cw beginning at 7:00. >> you're right about those weekends though. they've been nice. >> sure have. >> kathy, thanks. >> long wait night for the sixers. still going on the draft. >> long term strategy as well. >> yes. >> long! >> people were teasing, social immediate yack everything. we'll be long time waiting for this -- look at that guy right there. >> he's happy. >> look at that. that's our new guy joel embiid but he's hur. we'll have to wait. the investments will pay off. we >> sixers fans asked to be patient and get on board with long-term game plan. much anticipated nba draft but so far not a single player selected will be on the court next season. at least not with the first two pick. they got the best player in the draft in kansas star joel embiid but he has a stress fracture in his right foot may not be able to play next season but the future is bright. then they made a draft trade deal landing consider yo zarick of croat

person's whistleblowing forms lack quote even a superficial factual nexus the order calls the claims of aigutterly incredible and patently false the tone of the letter is so low and petulant you just can't believe it's coming from the as these thieves so here's this very serious matter how corrupt our financial institutions are to the point where they're robbing all of us blind with bad mortgages and bomb investment instruments and we've got whistleblowers treating the matter like another a.t.m. machine wires we've got what is the post to be the police of wall street acting like angry teenager is the ending hate mail and setting up rewards programs because the system is just that screwed it think about that we have an anonymous program at the as the because the institutions we all trust with our hard earned money are that corrupt our whole financial system is a total joke what's not a joke to me if that were some reason we all keep buying into it that doesn't make me feel like laughing that does make me feel like i'm living in an altered.

aig has a new ceo, peter hancock. obama says he is a plan to get students out of debt but it turns out senator elizabeth warren think your plan is better. fashion designer vince camuto.

necessary thank you so much just spear climate scientists running to unseat washington state house for aig amazing to have you on thanks so much thank you. coming up i'll talk about two people who wrote radically different op eds on the iraq war stay tuned. certainly tony blair has benefited from war and deaths and he totally destroyed iraq and. he's calling for a reinvention of rag and i did a little back of the oblongata elation i figured that for every dead u.k. soldier in iraq it all had about twenty five thousand pounds but tony blair's retirement. right from the seat. first trip you and i were being butchered. on a reporter's twitter. and instagram. to be in the. you know that you know the premise is the only industry specifically mentioned in the constitution and. that's because a free and open process is critical to our democracy albus. rule. in fact the single biggest threat facing our nation today is the corporate excellent work of our government and across several we've been hijacked like a handful of transnational corporations that will profit by destroying what our founding fa

the order calls the claims of aig utterly incredible and patently false the tone of the letter is so heavy and petulant you just can't believe it's coming from the f.c.c. so here's this very serious matter how corrupt our financial institutions are to the point where they're robbing all of us blind with bad mortgages and bomb investment instruments and we've got whistleblowers treating the matter like another a.t.m. machine wires we've got what is the post to be the police of wall street acting like angry teenager is sending hate mail and setting up rewards programs because the system is just that screwed it think about that we have an anonymous program at the as these the because the institutions we all trust with our hard earned money are that corrupt our whole financial system is a total joke what's not a joke to me if that were some reason we all keep buying into it that doesn't make me feel like laughing and that does make me feel like i'm living in an alternate universe with a bunch of crazy people around me that whistle i'm blowing in this story tonight let's talk about that w

is it becoming an increasingly large part within aig? what did you see it being, 5, 10 years?rhear horrors about stores. that is not the case with us. we continue growing and doing our own thing. iag sees the value. it is hard to see what the picture is. we are profitable and we have the means to continue to grow and we will consent to do so. toy're on their own paths recover into profitability and maximize. oles. our own r we are set to develop. >> it is between iberia and iag . you must see some pods or holes where there is possible m&a. >> there are also -- there are always opportunities. we are focused on running the business. 30% is a huge challenge for us this year. as what we will be focused on primarily. will he tell you more about that. >> will ask him. your name has been mentioned in the past for successor to the top job at siberia. you are putting a face. does a man you are interested, would not be interested? -- it does it mean you are interested, would not be interested? started in> we have 2006 together and he is the boss. he is the best person. he has been deali

. >> reporter: as a lal ity battles aig corporation, we hea f both sides.s coming up sunday morning at :3followg "meet the press" o. male announcer: commemorate the war of 1812 bicentennial and join our traveling celebration as the chesapeake campaign visits town festivals up and down our shores. visit starspangled200.com. presented by at&t. maryland. land of discovery. >>> a judge has ruled that the golden nugget in atlantic city will not have to pay out a group of gamblers who wracked up a $1.5 million in winnings. the reason the judge says those people realized the cards had not been shuffled in a game of mini baccarat and when they noticed the mistake they just upped their bets to win more. accord i according to the ruling the unshuffled cards made the game illegal. >>> there are four more recalls from general motors that we want to let you know about. gm is recalling camaros from 2010 through 2014 because tests show that a driver's knee can bump the key fob and cut the power. also recalled the 2004-2011 saab 93 convertible. the 2014 buick lacrosse seda

>> i used aig as an example. >> you know as well as i do aig the financial portion of that company was not the insurance portion of the company it was the financial portion of the company. i yield back. >> time of the gentleman has expired. chair recognizes the gentlelady from wisconsin for five minutes. >> thank you, so much mr. chairman and mr. secretary very nice to see you. thank you for coming to speak with us today. i guess i was looking through your testimony and i couldn't agree more that the formation of the fsoc was an important strategy towards having all of these senior regulators and principals look at the system across spectrum because i was here, again, when mr. folsom came with this four page bill saying give us $700 million. i don't want to go through that any more. but my question is, i think that a good process leads to good policy. so i guess i saw mr. roy woodhall the fsoc insurance expert dissent from prudential and yet they were designated. then we saw the sec push back against fsoc on asset managers an aspect of money market mutual fund reforms and the sec is th

this is causing aig p for drivers o the on 76. now we're dealing with another problem out there.ll lanes are not blockedn76. is is not q as bad as delaware. for drive theuyill expressway, this is creating heavy volume. the big story is the closure on 95 southbound at 141. if you need to get around it, route 13, route 4, route 2. other options are out there. stay tuned within the next eight to nine minutes. we'll have live pictures from skyforce 10. >>> 6:07. there goes another one. it will be a dark day for thousands of workers in atlantic city as another casino is expected to announce it is shutting down. we'll get details live from a.c. >>> there's a new miss delaware this morning. a new one. and a crown controversy. we'll tell you why less than two weeks after amanda longacre was crowned pageant officials took her crown away. >>> 11 minutes past 6:00. we're following breaking news in us in castle county. >> jesse gary is aboard skyforce 10 arriving on scene where a tractor-trailer has overturned on 95 southbound. jesse, what can you tell us. >> reporter: i can tell you this tr

aig, job travelers, cna, hartford.il: you are an insurance company to insurance companies. >> i am an insurance broker. neil: the cyber part of the big business, cyber attacks increase you could lose money. >> insurance companies would lose money. i get paid a commission. the problem and the processes that when you ensure property insurance, for example, you have a history and no the actuarial data. cyber insurance, 15, 20 years of data. neil: a guy like you, you are a broker. do they take a look at retailers who seem to be particularly vulnerable to this? ensuring the guy who lives in a tornadoes out, even if we give premium dollars from the insurance. >> it has happened before, absolutely. i am sure. loss is superbly increased their credit -- pricing. i don't know if they were able to get more than they have previously. i am sure a in terms of conditions and pricing. neil: you see it continuing to boom. >> it is on fire. we see it because anyone who has a computer and business. absolutely. no question about it. neil:

booked at day aig on a crash problems had to do with the mismanagement of the approach it does not mean not things going on underneath the complexity with a familiarity or the training but at the end of the day unfortunately the pilots may have made the last decision and 80 percent of accidents are attributed to human factors. gerri: that is a great point. to they have a black box? >> it is of tremendous challenge they arrive on scene and they don't have a lot of information to go by. the cockpit voice recorders are only required with multi engined turbine aircraft and flight data recorders are multi a injun with 10 or more seats so investigators are working with varied little information sometimes it is just as smoking hole in the ground. gerri: talk about how old they are. some do not look like brand new technologies. >> the interesting thing is we see the gray of the fleet's some that are not even in manufactured any more people above them and maintain them but also with the pilot population but for the new aircraft there is a lot of technology with the of class cockpits with tools t

. >> panera, aig -- >> aig, another $2 billion.nd the dollars keep getting -- of course the swan song, ben mowshay. what a job he's done. >> talk about a successor. i think miller was on the other day. >> yeah. >> who's still -- still non-exec chairman steve miller and the board is focused on. >> that's been a win. the insurers have been big wins. we talk about -- protective came and went. $6 billion, big deal. >> you pointed out that could have lifted valuation ace cross the board for the life sector. >> whole group doing well. lincoln financials doing quite well. travelers, not necessarily competitive in that but has been a leader in the dow, quietly going up. no one talks about it. intel, leader in the dow, quietly going up. caterpillar, no one talks about it. caterpillar had a breakout yesterday because united said positive things. these underneath, these are the things that are percolating. underneath. that's why this market is so difficult to keep down. >> it is difficult to keep down. are you worried at all about the complac

you also like home depot and then aig. what about comcast?, are working on this merger with time warner cable, but what else do you like about them? >> well, of course, comcast is not only a distribution company with its cable properties, but also a content company. let's remember they also own nbc universal, and they have the pending deal with time warner cable which we do think will be allowed to proceed. this is a free cash flow machine, it has a free cash flow yield in excess of 6%. the company has pledged to have a dramatic buyback in shares at the completion of the deal to buy time warner cable. and so here's a case you have steady growth, you get some cyclical improvement on the advertising side of their business as the economy be does better. they benefit from the aereo decision by the supreme court yesterday on content side. but this is about a lot more dividend increases and share buybacks and that stream of cash flow. liz: what's home depot about? is that a recovery in the housing world play? >> well, in a sense, it sure is. home d

. >> aig has promoted the ceo.cusing on growth after the predecessor stabilized the insurer and paid back a government bailout. a new chiefau named executive officer. this comes as the cognac maker works to reverse a slump in earnings. the company last week reported that 39% drop in profits as chinese customers cut back purchases. ibm is nearing a deal for its chip manufacturing business. the tech giant has searched for a buyer since last year. foundries is mainly interested in acquiring ibm engineers and and no actual property rather than manufacturing facilities more than a decade old. welcome back. >> it is seven: 50's -- 7:46 in london. for more on the biggest apparel theiler, let's bring in director at cantor retail. brian, good morning to you. multinational and multi platform. >> i think that is three great strengths they are seeking to emulate. it does have a multi-brand presence you can virtually shop without realizing it. a wide variety of styles. andives huge flexibility all the existing markets. every br

another committee, i said i sent a letter to the secretary of state, secretary of defense, and head of aigaid give me your success stories. and why. i thought that would be huge if we could use that in our noses of what we have learned. but i just can't answer that question because i don't have a basis for saying what percentage worked or. [speaking in native tongue] and pay the consequences of not being able to answer that question. access to the public by implication all of it was wasted. if you can't cite metrics, not anecdotally, but metrics, 30% absolutely went to the purpose intended and is performing well. another 20% sort of in a little grayer category, and then 50% is wasted, or whatever the metrics may be. but if the answer is i can't answer that question at all, then it's just to the united states taxpayer, $103 billion in reconstruction was down the drain in afghanistan. 100%. >> with all due respect i think every inspector general if you asked whether it's the department of energy, hhs ig, could not answer that question. so i don't know if the american people immediately jumpe

it failed out aig which was effectively bailing out the banks.en the banks don't have a counterparty to pay insurance. it was a front door bailout of the banks. all banks got it, no matter what nationality. a lot of the banks that were benefiting were european banks which have large investment banking activities across the atlantic. rbs and barclays from this country. hsbc to a certain extent. deutsche bank definitely. among french, front and center, bnp. it has been the implicit deal in america, the trade-off. we bailed you out. now, how are we going to get them back? one of the ways to get them back is use the legal system. the legal system is not sending people to jail, but has been in forcing enormous fines. >> the pound of flesh is being firmly taken. >> the u.s. system will be quite a tractable on this. this is a repayment. this is not a nasty out of the blue $10 billion fine. 20. is a, hey, you owe us we will take 10 now. >> bnp will be ok. northpital ratios will be of nine, slightly south of 10. there are other institutions that don't hav

aig is naming a new ceo. ben mashay iss-- benmosche plan to retire. aig names peter hancock as ceo.- where is that, castle rock? i don't know which part it's supposed to be in the "game of thrones." >> it looks like a place. it's unbelievable. >>> and alibaba is going on a spending spree. the company is buying remaining shares of browser ucweb. alibaba spent 4.8 billion making investments in the past six months but this would be the biggest to date. >> touch screen chipmaker s synaptics. its chips are used in galaxy s5. shares of synaptics jumping on that news. >>> yesterday, almost the day that didn't happen. barely budging on any of these levels. the dow was up by just over 2 points. the s&p down by less than half a point. take a look this morning, you'll see the futures are indicated lower. dow futures down by 39 points. s&p futures down by 5.5 points below fair value. in europe, you'll see at least at this point it's -- i don't have any idea what it is. when the boards bet there we'll check it out. let's take a look at what's been happening with oil and some of the other issues.

brings prodigious derivatives and executive skills to aig.raq falls to a breakaway al qaeda group good morning, this is "bloomberg surveillance." 11 and wednesday, june joining me to scarlet fu and adam johnson. it's a busy day. we had mixed a data overnight. u.k. had the lowest unemployment and the world bank cut its global growth forecast among weaker outlooks for the u.s., russia, and china. >> it has been a real jumble. we get retail sales tomorrow in the u.s. 7:00 we get the weekly mortgage applicable -- applications. at 2:00, the monthly budget report. with all the news coming out of

aig, who saidn is it may repurchase as much as an additional $2 billion in private stock after sellinginess. aboutave brought back $418 million in shares as the end of the first quarter. >> number six isveriphone reported second-quarter profit analystped out that estimates. because of their forecast for the year as well. >> number five is men's wearhouse who reported first-quarter earnings that were better than wall street's estimate. it also said it expects its planned merger with joseph a tank to be completed within the next few weeks plus emma you will like the way you look, they guarantee it. >> we just had to say it. panera breadr is announcing a three-year stock buyback row gram worth up to 600 million dollars replacing an existing one that was set to expire in august of next year. they said earlier this week it will remove all artificial ingredients from its food by 2015, part of a healthy food craze. >> number three is diamond foods. it reported a loss for the third quarter. it voted strength that had reported strengthen its mac business. >> number two is hertz. it fell as much

aig has a new ceo, peter hancock. to get students out of debt but it turns out senator elizabeth warren think your plan is better. camuto. designervince

game -- been aig big day for the republican. i am proud to stand with our new leadership team. congratulations to our new majority leader kevin mccarthy. and our majority whip. effortsnited in our you -- in our efforts to move america forward. to make sure moms and dads have opportunities to bring home paychecks for their family. we are united getting americans back to work. getting the job done here on capitol hill. we want to be putting forward solutions rather than continuing to seek an action out of the senate. we are going to continue to work on behalf of the people who sent us here to make them proud and give them more opportunities. >> a couple of questions. >> a lot of people thought this had to go with a second ballot. [indiscernible] we have a strong team that was representative of our congress. i am proud to be the chairman of a committee that is 176 members. i have worked hard over the year and a half that i have been chair to build consensus. to move conservative solutions forward. to solve problems facing our country. had broads have appeal throughout our conferen

leader turned investor steve case, former motorola boss, chris gal vin, lennar's stuart miller and aig'sry lopez. >>> let's get you up to speed on the day's top stories. we are two hours away from the may adp report. the economy probably added about 210,000 private sector jobs last month. also on today's calendar, april international trade. a revision to first quarter productivity, may's ism nonmanufacturing index and the fed's beige book. check out the futures ahead of all of

>> aig. >> i was not the insurance aspect of their business. >> while the inquiry about systemic risk is one where you look at all the activities of a firm and you look at whether or not it has transmission channels and if there's a problem in other parts of the financial system. i think and i continue to believe the analysis done was high-quality and warranted the determination. i'll just point that there was not an appeal of a judgment either. >> one of the reasons for this prudential sifi is relates to liquidation analysis. are you familiar without? >> yes. >> simultaneous runs against separate counts by policyholders in the significant number of annuity and other contract holders for products with cache rendered value, this assumes a scale for which there is no precedent. in other words was there anything that in prudential that indicate they had ever experienced a catastrophic liquidation of policies or surrendering policies? >> the question is not whether something has happened at whether there is a systemic risk in the future and i think the scenarios that you look at tend to b

i think every inspector general if you asked whether it's the department of energy aig, vig, hhsig, not answer that question. i don't know if the american people immediately jump at the response and the answer that all of the money is being wasted. i don't think any -- you cannot give us enough money to answer that question. we would be spending all of our time trying to highlight what worked and if you actually look at our legislation, you look at the 78 act and my act, it's not to find out what has worked. my brief is given to me by you is to highlight problems no. to highlight successes. >> yes but you also demured in the answer to my colleagues question, all right how much is wasted? >> so we're not going to -- we can't put a metric on how successful we've within and neither can we apparently have a metric to his question about how much do we feel confident was wasted in retrospect. >> if i can -- >> mr. swrojohnson. >> the biggest problem we face is that there's poor data being collected. when data is being collected. i will give you an example of the usiad when we looked at the ag

avila you noted in your testimony to a recent audit by vv aig on the quickstart program, they responded lack of timeliness was due to an increase and claims. unfortunately, this seems to be a pattern. they do not radically project their future workload and divert from problems focusing on unrelated issues. can you please elaborate on the statement and how negatively impacting the subs focus -- the substance focus on predischarge claims? >> mr. chairman, as i work as a mvb issue, i wanted through the predischarge claims. i retired two years ago and i use the predischarge claim. i use the bvd when i had over, i had 180 days. that was the program currently being pushed by the v.a. they say your claim will be process a you will receive bennett -- benefits as soon as you exit the military. these claims go to regional offices. and a lot started filing and went to salem or utah to start receiving the claims. what we saw was the quickstart claims became a backlog because almost every member that was transitioning was told that will be the most advantageous way. we created a backlog. i believe n

lynch who may discuss this, why not have the aig take a look at this? why not have the graup do it. we have a situation going on here that is getting in our way of getting to i think what is a shared goal of getting to the bottom of the -- >> would the gentleman yield? >> i will yield. >> this won't surprise you, the way this investigation started is i went to the ig because they had the ability to look at 6103 and we were interested. they began that investigation. one of the problems is the ig was never given that drive nor were they independent and outside the irs which is one of the reasons that as a i.t. background guy, i have never seen a disk drive that had zero left on it. >> thank you, i think that was a good move on your part. we're getting a little off the rails now. if ig looks at this, there is a motivation issue that both sides without the facts can come to their own conclusions and usually we all come to conclusions to suit our political bias. this function that we have in this committee, as you know, i appreciate your aggression. but there has to be, my view, a balanc