show and andrew ross sorkin. >> mt. rushmore of political brains there. i'm going to ask little andrew ross sorkin about -- he's gotten in trouble at "the new york times" for actually telling the truth. it was so funny. because krugman had said that bank of america was sure to fail, and it was a zombie bank as well as other banks and they should be nationalized. and andrew said that in a column, and paul krugman -- >> never happened, he said. >> and then we did this! and andrew provided the links -- i never did that. he wrote a snippy little blog. the funny part was, though, he then called "the new york times." this is paul krugman. i have won a nobel prize. >> that is a spot-on imitation. >> that's how he talks. i won the nobel prize. all the editors had to scramble around to try to help paul krugman and try to put humpty dumpty back together again. but andrew just provided links. here's this column he wrote. here's this blog he wrote. >> doing his job. >> where you were talking about nationalizing the banks. >> that's inconvenient. >> who's david and who

and andrew ross sorkin of the "new york times." he is a columnist in and editor of deal book the "times" online financial report and his book "too big to fail." i am pleased to have all of them on this program. i begin with michael lewis. tell me the significance of what the earnings report and what else goldman sachs said today. michael? >> well, the earnings report sr.... it's not that surprising. they've been doing very, very well ever since the crisis. and most of wall street has been doing very well. the story that we should all be talking about is this s.e.c. lawsuit because it is really pointing to how goldman sachs is making its money. and it's not a pleasant story. if i had to guess what's going on inside goldman sachs today, it's not a celebration of their earnings but full crisis mode because the world is ganging up on them. >> rose: tell me what it is that you think is at issue here. >> this lawsuit for first t first time in my lifetime the s.e.c. has filed a lawsuit that is at the core of what goes on on wall street. i

andrew ross sorkin, the chief mergers and acquisitions reporter of the "new york times."artin wolf, and amity shlaes a senior fellow at the council on fellow relations, and a columnist for bloomberg. eliot, let's assume that i am a big oil company, i want to in some way mitigate the exposure i have to oil. if oil goes up, i'll do fine. what happens if oil goes down. so let's say i want to make a bet that the oil market will go down f it goes down i have -- my balance sheet doesn't look awful. i go to goldman sachs and say find me somebody who wants to take the other side of this bet. what is wrong with that? that is, in effect, what goldman sachs is charged to have done. allowing john paulson to select securities. they're denying it, i'm saying even if he did that, isn't the whole point i have this bet, find somebody to get against me. >> those on one side of the bet knows the other side of the betebet disagrees them. but goldman misrepresented how they put together the product, and that is the predicate for finding them libel. >> that's the crux of the issue. >> the crux

andrew ross sorkin there from the "new york times" and omnipresent on cnbc.ho -- what would you buy in this airline sector? who do you think's the next one to be taken out? >> it's not necessarily taken out, but i think the more rational pricing benefits jetblue. jetblue, who will be able to probably show the highest profit margins on a real recovery, will be a beneficiary. plus this code share agreement that they had last week with american airlines is a significant benefit for them. i will also say that you pointed out something important. you know what the profit margin is on charging people $45 to bring a carry-on bag? do you know what the profit margin is? >> $45. >> 100%. don't underestimate -- >> that's a math wiz. very good. >> 100%. >> and that's american dollars. >> it's a rhetorical question. >> let's catch up with more afterhour action, shall we? let's get to the prop desk and bed, bath & beyond being watched by our good friend jon najarian. >> simon, i've got bed bath & beyond beating by at least 13 cents, and the stock is up almost $2 now. certa

really mattered on the line the same way so many people frankly on main street do every day. >> andrew ross sorkinhe book is "too big to fail." andrew, thanks. >> thank you. >>> coming up next, the latest, the case of the massachusetts high school student. accused of being -- well, accused of bullying a 15-year-old classmate. six students were accused of this. 15 years old. >>> when "family feud" contestant tells us why ellen degeneres is famous. his answer is kind of bizarre. you'll have to see it to believe it. we'll be right back. i needed more customers, so i got my nephew to build a website. i hired someone to make my website... five months ago. we are building a website by ourselves. announcer: there's an easier way. create your own small-business site with intuit websites. just choose a style that fits your business and customize, publish and get found in three easy steps. sweet. all from just $4.99 a month, get a 30-day free trial at intuit.com. you can label as "different." like janice. uh-huh. yeah. fashion deficient. and tom... copy incapable. it's open kimono time. looking good, dan. o

we're joined by andrew ross sorkin of the "new york times." good morning, appeared rue. >> good morning. >> and "fortune" editor andy wells is joining us, as well. >> two andrews on the set. >> have you ever been an andrew? >> yes. family calls me andrew. >> when you're in trouble with your middle name? >> yes. we don't have to go there. >> 18 major u.s. banks reportedly mask risks. >> what a shock. >> gambling in casa blanca. "wall street journal" says the firms temporarily lowered their debt levels before reporting in the past five quarters. this makes bank balance sheets appear less risky. this includes jpmorgan, citigroup and bank of america. trades by an average of 42% at the end of each period. i thought everybody knew this. >> are you shocked? >> no. i thought this was standard operating procedure. >> right. >> but you know, they're supposed to be a little better behaved these days, right? >> well, i wonder. we're going to get jpmorgan starting next week. will they get away with it next week? >> the real question is, from a disclosure pe

and "the new york times" andrew ross sorkin is author of "too big to fail." show tonight, gentlemen, thank you for joining us. it seems to me that the president has finally got the accent right. he calls it wall street. he doesn't say financial regulation or all of these boring terms. he says, we've got to clean up wall street. we've got to stop them from stealing our money. he seems to get it right. on the other hand, the republicans, thanks to the linguist, frank z,