>> i don't think another aig will happen. >> we are not going to see another aig crisis. >> no.nk we have been in this position for over two years. i don't think you will see a bank failure that we've seen. i don't think you will see a security industries failure like bear or lehman. >> you give a thumbs up to the regulators. >> i give a thumbs up to the regulators for getting the job done, but i give them a thumbs down for being afraid to tell the public. i've criticized many people in washington at all levels. why don't you talk about how much progress you have made since 2008? their answer is, we are not sure something cannot go wrong. i say, shame on you. because you should be sure. i am sure. >> when we come back, bob benmosche's villa splendid lives up to its name. >> there are not many views like this in the world. >> and he gets personal about his fight with cancer. >> with this illness, i have nine months to a year to live. ♪ >> how are you, bob? >> hi, betty. >> great to meet you. thank you so much for having me here. show me around your beautiful villa. in 2001, when

former chief executive of aig. i traveled to croatia to spend time with this retired wall street titan where he owns a vineyard. >> we have a ways to go. >> and recounts how he turned around a company left for dead. >> i had a company with a value of zero. today it is almost $80 billion. >> all while dealing with a personal struggle. >> with this illness, i have nine months to a year to live. that's what i was told. and then they put me on this aggressive chemotherapy. i said i have an obligation to resign if i cannot handle the chemotherapy. >> robert was born in brooklyn in 1934. early in his childhood his father moved the family to the catskill mountains, but shortly afterwards, his father died of a heart attack, leaving his mother and three other siblings a quarter of a million dollars in debt and with a half completed hotel. from there, money, having enough of it, became a driving force in benmosche's life. soon after graduating from alfred university, he rose up the ranks of wall street's biggest firms, chase

public saw aig as a scapegoat for everything wrong on wall street. paulson equating aig to citigroup, a firm set to fail without government help. the difference being, citi's failure would lead to other bank failures whereas aig stood along among insurance companies. paulson said aig's tough terps were needed to get a reluctant congress and an angry american public to buy into a bailout and to pave the way for the delivery of t.a.r.p. money paulson said he needed to help other firms. his first priority during the crisis was always to maintain financial stability. aig's former ceo hank greenberg and its investment firm star international alleging the government cheated shareholders by violating their fifth amendment rights. despite charging unusually high interest rates on loans and failing to pursue other options to save the company. to that end greenberg's lawyer questioned paulson at lebt about interest shown by chinese investors in aig at the time. paulson, who says he was constantly engaged with the chinese, said, i was 100% certain the chinese w

and economic loss to aig. so even if he's able to convince the judge that aig-- that the government did something wrong here, the government may still be able to say, but where is the harm? where is the loss? they can't prove they were hurt by anything we did. >> so it seems like david does have a pretty hard-- pretty hard case. but he's got a lot of money, you know. mr. greenburg has been paying the legal bills, and there's been a lot of money coming in. but they have been able to spend a lot to build as good a case as you could possibly build. >> and mr. boyes has been successful in certain aspects of defending mr. greenburg, has he not? >> the government has fought to get this case thrown out a couple of times. and you know, still here we are in court. and a couple claims remain. so that says david boyes has had some success so far. >> rose: aaron? >> that's exactly right. there is also a case a couple of years ago where hank greenburg sued aig about who owned star, the company that is now suing in this cou

you have aig saying they were extorted.ews to a lot of taxpayers who say if anyone was extorted during those emergency deals it was all of the tax dollars, all of the people who paid them. >> well, first, let's be fair to the people now running aig, but aig, the company itself is not suing. mr. greenberg is a disgruntled and he'd been kicked out. so that's the first thing. second, one small correction. they didn't get an $85 billion bailout. they got a $170 billion bailout. it's true, they came to the fed and asked for $85 billion on. a week later they said that wasn't enough. they needed more. this company, let's understand at the outset. they were so irresponsible. not only did they incur enormous debt that they couldn't repay, basically they promised to insure other people's mortgage securities for those mortgage securities turned out to be housing loans and couldn't pay off, aig had promised they would make it it good. not only did they not have the money to make it good, these great financial wizard his no idea how muc

twist. >> how is aig doing now? >> it is doing ok. that is part of what the government has been saying. where are the damages here? the aig shareholders might have taken a certain haircut at the time in terms of the shares, but they ultimately made money. the government is saying, look, the shareholders in this case wound up making money. remarkably, aig is doing ok. >> what interests me about this is the dynamic of this courtroom with the shares as big as they are and the money as large as it is and the personalities who are in there as witnesses and the star quality of david, certainly one of the great trial lawyers. >> his style, he has this conversational style in the way he deals with businesses. veryaulson, today, was straightforward, if you will. it might not be the best word, but he answered questions very frankly and moved through very quickly. week, the fed general counsel was on the stand and seemed to contest every little point. arguing over words like what for the bondsan were downgraded. it will be int

i actually broke the story about the aig bailout. when i broke that story, it's funny, one of my colleagues on cnbc right after i broke it, said the government was planning a bailout for aig, came on and air and said, no, that wasn't accurate. liz: don't you love that? how about supporting your -- >> so my report went up 200 points after this guy came on, it went down 200 points, and then it went back up again after he had to admit about an hour later that something was in the works, and by the end of the day -- i think that was a tuesday. lehman went under sunday, monday was an insane day. liz: insane. >> markets were getting crushed, nobody's borrowing, the credit markets were getting crushed. by the end of tuesday, aig was bailed out. still did not solve the problem. by thursday i broke t.a.r.p -- liz: okay, but so the point is you remember -- >> yeah. liz: i can remember i was in l.a., i'm getting a call, obviously, i'm at a shoot there, and i'm getting a call from somebody we all know and love and saying there will be an orderly

not all aig did, but what aig did was in short something called credit default stops.brought to them and said we're making these weird bets. you can come up with some type of engineering thing that you can insure them for. so aig taking their word for the have a lidty and value for what was rated aaa -- what did they do they went to the rating agencies and said are these valuable? >> aig took the risk. they were principle on this. here's the thing, liz, with hank, you have to make the case, david implies this that the government wanted to bail out morgan. people inside the fed were close to goldman and morgan. and they weren't close to aig. it's not explicit in their argument. if you believe that, that's a big leap, that you wanted to bail out goldman and morgan to the vehicle of aig taking over the company, destroying the shareholders and funneling money through the company to making 100 cents for the default swaps so you can bail out your friends on wall street. that is, in essence, what david is saying, what hank is saying, what they believe. i can't imagine they're

this has nothing to do with aig. aig got what it deserves. aig is lucky that it is alive today. it is alive today thanks to the federal payout -- thanks to the federal bailout. >> what is interesting is that greenberg from time to time says i do not believe the aig story has fully been told. >> i don't agree with that. about hankover story greenberg and aig. hank was going around saying what would happen if i was allowed to stay at aig. there would have been a private investor. >> to some degree he is right. if he had been allowed to stay successor did not understand what hank had told her that is the hypothetical. that martinains sullivan was at the helm, aig did go down, and they are lucky to be around at all. when you are in bankruptcy, shareholders get wiped out. benmosche,t from bob the last ceo before peter hancock, we talked a lot about the bailout in that moment in time. this is what he says about aig now. i want both of you to listen. >> i don't think another aig will happen. >> we will not see another energy crisis again? >> know, and i think we have been in this posit

and again it will be around whether it was allowed to take a steak in aig.ch they argue the government did not do with other banks that were bailed out. so those will be some key questions about what power the fed had at that time. >> gina thanks for coming on the program. >>> the economy is showing signs of severe stress in russia. russia's currency, the ruble is losing value, and some analysts are predicting that there is a looming economic crisis as the country's banks run out of money. rory challands reports from moscow. >> reporter: for an easy gauge of how russia's economy is doing right now, all you need to do is watch the tumbling ruble. on monday it briefly hit 40 rubbles to the dollar. caught in the storm are hunting of russia banks. they are fast running out of money. >> translator: as was said, all animals are equal, but some are more equal than others. in one to two years, only the biggest banks will be left in russia. the small banks will have to leave the market. >> reporter: so it seems a significant cull is coming, but bailing out russia's b

he used to run aig.n 2008 it got bailed out and he and a bunch of shareholders lost a bunch of money. could he have a fighting chance on winning the 40 billion for which he's suing in charlie gasparino joins me in an exclusive interview with columbia law professor john coffee. we should begin with the professor in asking him what the shot is? >> there's a lot of emotion in this case, greenberg is very emotional. a lot of people think there's no way the government should pay a dime to hank greenberg since aig got bailed out. no one knows the law better than you, john, does hank have a shot here? how do you rate? >> this trial is a wonderful spectator sport, not a realistic cause of objection. it's like calling everest a slightly upward slope. if the district court were to give a victory to mr. greenberg, the appellate courts would reverse it. however, mr. greenberg has true believers and may be therapeutic values and others to get the side across. it's an interesting story and will be embarrassing to the

now, boies is trying to prove that aig shareholders were treated unfairly because of very high rates they had to pay on loans. rates were far higher than other troubled financial firms during the crisis. the suit also acknowledging that the government -- or charging that the government unfairly compensated aig shareholders for the 92% stake the government eventually took in the insurance company. >> mary, did geithner say anything about whether he made any attempt to find a private solution instead of the public one for rescuing aig? >> reporter: well, you know, he was asked about some e-mails he received by david boies during the testimony, and geithner kind of shook his head and he said, you know, if there had been any kind of credible offer out there that would have taken this enormous risk that was aig off of the government's hands, he would have pursued it. but evidently there were none that he considered credible out there at the time. >> you know, mary, there have been so many high-profile witnesses in this case. yesterday former treasury secretary hank paulson, today tim geit

has said the government's 2008 bailout of aig was unfair to aig shareholders. the government gets its chance to respond. peter cook is outside the court a federal appeals -- federal claims. he's going to wrap up his portion of the case as in his today. it's been three weeks straight of the famed litigator making the case on behalf of hank greenberg. the government's bailout, well necessary for activists come of the terms of the bailout unfair to shareholders. the amounted to the taking of private property. they have made the case -- the federal reserve did not have the legal authority to take an equity position in aig. and specifically that the terms of this bailout were different then those being offered to banks. shows this was the government going to far with aig. he has been making his case for 21 days. carefully plotting and charting this course. a notion that a lot of people have trouble with. it saved these shareholders, saved the company. they say the key question is the terms of the bailout. it seems to have had some sway over the judge in this case. s

but he did defend the government's actions with the aig bailout saying the tough terms of the package were needed to a, to compensate packages for the risks they were taking and to minimize any windfalls that shareholders may have received. ben bernanke was on the stand for about two and a half hours and returned to the claims court for more testimony. susie. >> and he spent a lot of time grilling ben bernanke on the equity portion of the bailout, tell us what that was all about? >> reporter: well, this is key to the shareholder's lawsuit. they say their fifth amendment rights were violated when the government didn't adequately compensate them for what became a 92% stake in aig that the government took. so he was repeatedly asking ben bernanke why did you take this equity stake. did you know a loan rate included ben bernanke. boyds pushed him. what about this equity stake, he said it was taken in order again to protect the taxpayers who were assuming so much risk. >> boise had three big names, ben bernanke and the former treasury secretary, mr. paulson and mr. tim geithner, where is h

>> i haven't since i was 15. >> number four is aig. to justifywill have bailing out aig.is yahoo!. marissa mayer is close to investing in snapchat. $10valuation will start at billion. investors.mes from >> number two is h&r block. the sale of the banking unit is slowing down. the deal will not be completed this year. it will continue offering financial service relics to clients during the coming tax season. number one is hewlett-packard. they will split into. today is splitting monday. the pcs and printers will make up one business. that will be a very key part of the business. markets are kicking off trading week. while goldman they should have rushed to anticipate a rate hike anytime soon from the fed. blackrock thinks the opposite, that the fed could hike rates sooner than expected. , chad morgan,ere joining us, a portfolio manager who believes we still have a long road ahead. where do you stand, exactly, on the fed hike? >> i do not think it will move into the second half of 2015. inflation expectations are coming down right now. you have close rates in the in -- in t

rests up, the prosecution in the aig trial. the government will get a chance to defend its 2000 eight bailout of the insurance giant. plus, unlocking the true value of the new york knicks and the rangers. will the breakup of the madison square garden be the answer to that? stay "in the loop." ♪ an for this past month, attorney on behalf of hank greenberg has argued on behalf of aig, the biggest bailout was unfair to aig shareholders like greenberg, including others. the government gets the chance to respond to him. chief washington correspondent peter cook, has he been able to make his case so far? >> it has been really interesting to watch in the court. in the court of public opinion, joketrial is more of a than anything else online you have had "the daily show" take aim at david boies. the bailouts davis cup a, there is no doubt about it, but what did david -- and the bailouts save this company, there is no doubt about it, but when david boies said is that the terms of the bailout were not fair to the shareholders and he has

for aig and mr.enberg to say, gee, these terms are too onerous. >> they could have followed the process. >> follow due process, absolutely. if you didn't give them the money they're gone and god knows what happens to the economy. for them to be complaining -- >> i agree on the complaint and there should have been a better process. the reality was aig was being downgraded. because it was downgraded it could not ensure all of the contracts it had with the largest banks in the company and their co-dependent banks. the first chunk of money went to pay off the margin calls to these banks. >> exactly. >> it was a funneling through the banks. that should have been considered. the whole thing should have been considered. >> that is my point. in my view, aig first and foremost, everybody for the money through aig. that doesn't invalidate. less money would have been required if the terms of payout had been different. it's whatever the necessity, that didn't apply -- what should the interest rate have been, 20?

government over the handling of aig's bailout.burg argues that the government robbed aig shareholders of $40 billion. former u.s. treasury secretary hank paulson's testimony wrapped up earlier today. we are still waiting to hear from former fed chair ben bernanke and former federal reserve bank of new york president tim geithner. charlie and anthony are back with us. charlie, you have been following this very closely. >> i'm probably the only reporter to have reviewed their sealed depositions in the lead up to the case which have. melissa: are you not supposed to see sealed depositions? >> you're not supposed to. as journalists you're supposed to. i have write written about this. >> glad charlie is on our side. >> thank you, anthony. i don't think we'll see any great revelations from any of those three. particularly during the trial. i think they're so lawyered up. there is so much legalese -- melissa: amazing they would be dragged in to be put on the stand. what is the significant of that. >> shows there are friendly judge. hank

greenburg being the former ceo of aig. mr.s back for his third and what is expected to be his final day of testimony in the aig bailout trial. as he completes his testimony, former federal chairman ben bernanke is expected to take the stand. david boyce pressed geithner about comments he made saying forces or losses were forced on aig shareholders. geithner replying we forced losses on shareholders proportional to the mistakes of the firms. but then it got testy. boyce asking if shareholders of banks who also received government aid suffered losses similar to those of aig. geithner said yes in part because there was dilution to those who had to go out and raise capital. shareholders allege in this lawsuit that's seeking $50 billion worth of damages that they were treated unfairly in the government's $185 billion bailout. one in which the government took a 92% stake in the firm. geithner's testimony basically suggested along with former treasury secretary that aig had no other options at the time save for the government to resc

and the aig trial. it has been a roller coaster ride for the week among but it has slowed down today. we have been correction free for since thee years summer of 2011. perhaps we are making up for lost time. in terms of where we are right now, the dow is making its smallest move in four days. we are measuring in terms of small moves. pressure,r some little changed at this hour. did surpass its high for the year. in terms of where we are for the week, it is the fourth straight weekly loss for the s&p 500. the dow had seen consecutive days of triple digit point moves which we have not seen since 2011. earlier about the catalyst behind the sudden weakness this week. that theeve fundamental reason for weaker prices in the last few months has been essentially the rate of recognition by the investment community that global growth is not accelerating, but slowing down. >> we also spoke with the head of equity strategy. looking ahead, a lot of people are saying look at the credit market indicator as a good idea

the twostifying on thousand eight bailout of aig.end himself and the government and is much -- in its handling of the lawsuit. peter cook has been inside the courtroom, talk to us about how he is handling this walk down memory lane. there were some really interesting revelations from hank paulson yesterday. >> there were. the case is on break at the moment. not a lot of fireworks so far. it is pretty clear that the litigator which is representing greenburg is taking him down a pathway where he knows where he is going. they will get to more sensitive question. he has been trying to get tim geithner to verify that banks were receiving a range of federal assistance from the federal reserve at the same time aig was in the fall of 2008 to roughly the same amount of money , yet receiving that money on different, more generous terms than aig god. t. said that the circumstances were different which is the same message we got from hank alston -- puls aulson. the head of aig at the time came to tim geithner in july, and for the first time rais

which was ballenback and my view was that aig had many solvent subs.lly, had hank been there, he wouldn't have agreed to the points and bankruptcy was an enormous threat. >> in fact, if he had been there -- >> it was threat. >> hank wanted bankruptcy. >> i don't think he would have committed to the trading firm and the transactions. >> no. >> having said that -- >> what will happen? >> it would have been a different game. different representative. >> different football field. >> listen. >> absolutely. >> is the government and quickly about the markets before you leave. is the government going to lose this case potentially? >> i mean, i'm not law school trained. i'm not saying a word. >> i love it. >> before we go let you go then, how worried are you about the worried of today. china slowing. the u.s. strong. when's your take on all of this? >> i don't mean to be noncommittal. i'm worried and generally hopeful and the companies are really strong and just a lot of cross currents. >> yeah. >> just a lot of cross currents. i'm expecting more volatility but

talked about the aig bailout. at emotional baggage. >> getting dressed while he is walking. >> doesn't look happy to be there. this is obviously a painful experience. >> he looks less stressed than he did as secretary treasury. >> paulson wrapped things up quickly yesterday. >> there are six to seven hours planned. ben bernanke will take the stand. hours for him, expect a defense of the government bailout of aig, a strong one. >> we'll talk about the container store. revenue guidance for the full year is not good at all. especially going onto a quarter where they make 70% of their profit. we'll talk more about that and the container store. first up we'll get to the opening bell here at the s&p at the top of your screen. down here at the big board, and the nasdaq xcerra. soda stream, we have not succeeded in attracting new customers and must alter their course pivoting to a health and wellness business model. we know all the trouble soda is having in this country. >> soda stream had been bucking the trend with its