but the headf the fdic, sheila bair, has come up with a solution. she wants banks to prepay $45 billion in iurance premiums. >> susie: another kemeasure of the housinmarket is showing improvement with pces marking monthly gains. what does it mean for th housing recovery we'll get some answers from noted economist. >> the dand will go wild in twto three years. so holon to your horses, everybod real estate is coming up, there's nooubt about it. >> paul: this south florida homebuilder thinks hpy days will soobe here again. he'll ll you why. >> susie: then, 's all about revenue en it comes to eaings. while cost cuts lped companies ke their numbers during the recession, wall stre's now lookinfor revenue growth. >> pau i'm paul kangas. >> susie: and i'm susie ghar. this i"nightly business report" for tuesday, septemb 29. "nightly business rert" is made ssible by: this programs made possible by contributions to yourbs station from vwers like you. thank u. caioning sponsored by wpbt >> sie: good evening, everyone. prepay us $45 billio that was t message tod

this morning, they will hear from fdic chairman sheila bair. in the afternoon, mary schapiro, who heads the securities and exchange commission will speak. that is at 1 p.m. eastern. that will be live on c-span. on regulation is born, "the wall street journal" is reporting that policies that set the pay for tens of thousands of bank employees nationwide would require approval from the federal reserve as part of a far-reaching proposal to rein in risk-taking at financial institutions. the feds plan reported by "the wall street journal" would for the first time in jack to government regulations deep into compensation decisions traditionally reserved for the bank's corporate boards and executives. we will hear from two regulators today, sheila bair and from mary schapiro. and they will wrap up the day hearing from larry summers who heads the national economic council. that speech live this afternoon at 3:30 eastern over on c-span. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conv

bair, has come up with a solution. she wants banks to prepay $45 billion in insurance premiums. >> sus: another key measure of the housing market is showing improvement with prices marking monthly gains. what does it mean for the housing recovery? we'll get some answers from a noted economist. >> the demand will go wild in two to three years. so hold on to your horses, everybody, real estate is coming up, there's no doubt about it. >> paul: this south florida homebuilder thinks happy days will soon be here again. he'll tell you why. >> susie: then, it's all about revenue when it comes to earnings. while cost cuts helped companies make their numbers during the recession, wall street's now looking for revenue growth. >> paul: i'm paul kangas. >> susie: and i'm susie gharib. this is "nightly business report" for tuesday, september 29. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt >> susie: goo

sheila bair joins me. >>> and the cause for global education. my one-on-one with former president bill clinton. take a look at how the stock market ended the week as we go to break. ♪ well i was shopping r ♪ which one's me - a cool convertible or an suv? ♪ ♪ too bad i didn't know my credit was whack ♪ ♪ 'cause now i'm driving off the lot in a used sub-compact. ♪ ♪ f-r-e-e, that spells free credit report dot com, baby. ♪ ♪ saw their ads on my tv ♪ thought about going but was too lazy ♪ ♪ now instead of looking fly and rollin' phat ♪ ♪ my legs are sticking to the vinyl ♪ ♪ and my posse's getting laughed at. ♪ ♪ f-r-e-e, that spells free- credit report dot com, baby. ♪ ♪ it's been a hard day's night... ♪ ♪ help! i need somebody, help! ♪ ♪ sergeant pepper's lonely hearts club band... ♪ announcer: rediscover the beatles, the band that changed music forever. - get 13 remastered cds - ♪ let it be - in limited edition packaging - ♪ let it be - ♪ let it be, let it be. - and never-before-seen video. the beatles "ultimate limited edition collection" availa

plus, sheila bair taxes banks $45 million to refill the insurance fund. rice and moore debate obama's middle class tax hike. and the ceo of lord and taylor tells us if anyone is doing any christmas shopping. fasten your seat belts, everybody. "the kudlow" report begins right now. >>> good evening, everyone. i'm larry kudlow. welcome back to "the kudlow report." senator schumer's public insurance amendment in the senate committee health care bill was defeated today, but is it really dead? our chief washington correspondent john harwood joins us now with the full story. hello, john. >> hey, larry. we've been talking about this public option. it's been moving in the house. today was the first big test in the senate, in the finance committee when liberals led by chuck schumer and jay ro rockefeller proposed separate amendments making the case that the private insurance market simply isn't working. >> we need this option because the insurance companies have failed to meet their obligations. in this whole matter of how do you unroll health care reform. the insu

what sheila bair has to say when the "closing bell" returns. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 i want everything right where i can find it. tdd#: 1-800-345-2550 anything that makes trading easier. tdd#: 1-800-345-2550 i want to be right in the middle of the action-- tdd#: 1-800-345-2550 you know-- i have to see what's going on. tdd#: 1-800-345-2550 and when i pull the trigger... tdd#: 1-800-345-2550 ...i've got to get the best price out there. tdd#: 1-800-345-2550 (announcer) try the new schwab.com tdd#: 1-800-345-2550 for yourself. tdd#: 1-800-345-2550 call 1-888-4schwab tdd#: 1-800-345-2550 or visit schwab.com/trader today. tdd#: 1-800-345-2550 'course a trade doesn't always work out my way. tdd#: 1-800-345-2550 but when it does... tdd#: 1-800-345-2550 ...man... do i love that feeling. >>> earlier today, maria bartiromo moderated a panel on global finance and regulation, on the final day of the clinton global initiative. she asked fdic chair sheila bair would it need to borrow money. >> is there an inherent conflict in lending money t

director curry. >> thank you, chairman bair. i also want to thank you for your leadership on this very difficult issue. i believe that any special assessments in the third or fourth quarters would be inadvisable when simply counterproductive. given current economic conditions and ongoing pressures on deposittory institutions. such assessments would be an exercise in the futility given the anticipated provisions given to the deposit insurance funds contingent loss reserve. consequently, i fully support going out for comment on the proposed n.p.r.'s restoration plan and its prepaid assessment system as an alternative to federal financing bank, for treasury borrowing. to me the anticipated liquidity needs for 2010 and beyond. the prepaid assessment proposal reinforces the notion, and this is i think very significant, that the d.i.f. remains a financial obligation of insured banks and that it is ultimately back stopped by the full faith and credit by the united states government. i have some longer term concerns, however, over the r

sheila bair speaking out this morning.egulators will meet at the end of the month to explore options for replenishing the dwindling funds that safeguard bank deposits. hampton pearson has more. >> she's also saying that one option being considered is perhaps borrowing from the treasury. that is one of the options as far as replenishing that insurance funds. bair, one of the three major headliners here at an all-day symposium on global finance. at the top of the agenda, u.s. regulatory reform, key points from the fdic chair, reform must rest the issue of too big to fail and the fdic insurance is not big enough to handle systemic risk firms and assistance must not be used to prop up firms. >> make no mistake, i support the actions we took to stabilize the financial system. lack in process, we did what we had to do, but going forward, open bank assistance should not be used to prop up a firm, only to give system-wide support. >> on the question of mark to market accounting and toxic assets, she says good for security firms, b

i bet sheila bair's taking a close look at this. >> but steve said they're not. >> it's on the table. >> but it sounds like they're tamping down this story as being the leading option. there are problems with going to the treasury aborrowing. >> what's the problem with this plan? >> i don't know what the problem is this plan is. it looked like a winner for the banks. >> and the taxpayers. and the taxpayers. this is outside the box, unconventional thinking. it's a brilliant, clever, new-thinking idea. this is creative capitalism at its best. >> it's hard to answer why this is not seen as leading to other solutions. but we know sheila bair's talked a lot about replenishing this fund. >> we're going take a quick break. >> outside the box thinking. a man who played second base here some 45 years ago. actually, 47. ladies and gentlemen, mr. larry mccarthy. amidst today's financial turmoil, our sophisticated wealth transfer strategies... and philanthropic expertise ensure your legacy... is passed on to family or your favorite pastime. ♪ northern trust. wealth management. asset management. a

right now special coverage from bret baire in d.c. bret: thanks, shep. you are looking live at the house chamber as it fills up with members of congress and other dig that tears. good evening. i'm bret baire in washington. i'm minutes away from a joint session of congress. the topic tonight, health care reform. we are told tonight the president will try to make it his health care reform. laying down specific markers for lawmakers. we have fox team coverage tonight. carl cameron is at the capitol with the status of any bipartisan compromise. but, first, let's go to major garrett to the white house with a preview of the speech. major major good evening. the speech is 40 to 45 minutes. the president tinkered with it adding 10 minutes to it. the president will try to make news on three policy fronts with language about medical malpractice dealing with those costs. calling it a legitimate issue. he will also put some language forward to talk about restraining the cost of his program if, in fact, health care savings projected are not realized. he will also try

. >>> supreme court justice ruth bair ginsberg is out of the hospital and back at work. the 76-year-old justice became ill at her office yesterday. she spent the night at the hospital as a precaution, but was back this afternoon. she underwent surgery and chemotherapy earlier this year for pancreatic cancer. >>> time to check the weather for the weekend. chief meteorologist doug hill has a first look. >> it is not all terrible news from the belfort furniture weather center. first, temperatures, cooling off, cloudy skies, 60 leesburg, 63 in the district, 60 woodbridge. overnight, mostly cloudy, 54-60. the big story, the rain d the timing. the storm scan, ran off to the west. more is beyond the picture. it is drifting off to the east. most of the rain overnight will stay south of the metro area. during the afternoon, a nw batch will move in. the question is, what time sunday? sunshine of the weekend, but it will be limited. all the detail is in the timing. a complete update on the weekend forecast coming up. >>> also still to come -- tylenol announces a recall of infant an

sheila bair saying, first of all, let's deal with too big to fail as part of regulatory reform. the fdic has a system that worked when it came to closing banks but not systemic banks that pose risk going forward, it should not be used for that purpose. whether it's the fed, fdic or treasury, that should not be the case in the future. >> make no mistake, i support the actions we took to stabilize system. lacking a resolution procession, we did what we had to do. but going forward, they should not be used to prop up any individual firm, only to give system wide support. >> also the chair -- fdic chair had interesting comments on mark to market accounting. great for securities but it simply does not work for the bank system. all of that part of a regulatory reform panel going on all day at georgetown university. erin? >> thank you very much, half on the hampton pearson. we have the final countdown to the opening bell. >> we're heading higher. >> just making sure. this is "squawk on the street." we'll be back for the opening bell in a moment. uuuuuuuuuuuuuuu thinking about mutual fu

>> guest: youtube is not an official side so there are a whole series of bair wohlstetter built theno where messaging, and one of them is, this is my house site is an official side of the united states congress sanctioned and approved by the congress but if you want to go to something that is not official, whether it is twitter, youtube or facebook you literally have to leave the house official site. >> host: when you do then you go to the youtube site. >> guest: you can click on youtube and this is my official youtube channel. and so there is a whole series of floor speeches and other youtube video is that i've been able to do. >> host: including some c-span video. >> guest: that is my favorite kind, but here is another example of what i try to do. i wanted to understand where my district was on middle-class economic issue so instead of taking a poll what i did was take my flip camera out in went to a shopping center in new york and ask people what their priorities are. >> part of my new with the-- talking to people about gas prices, food prices, taxes, health care. [inaudible] >> y

here's sheila bair. >> what we are going to do is tap the liquidity of the banking industry to improve our position without borrowing from the treasury. i never say never and there's much we cannot control for. while we are optimistic on the economy, if conditions worsen, we could have to tap our treasury line. but today is not that day. >> the fdic is projecting the cost for dealing with failed banks is now going to be $10 million. right now, the insurance fund has 10.4 billion in cash. putting that fund below levels. the proposal aimed to do two things. to get the fund above mandated levels and give it add added liquidity to deal with more failures. assessments on insured deposits won't change next year, but will change from the current rate of 12 to 16. this year, there won't be special assessments. they say exceptions will be made for troubled banks should the proposal threaten their viability. they will now go out for public comment for 30 days. back to you. >> so should the banks bear the brunt of replenishing the fdic's fund? joining us now, we have dick bove and also steve lies

that little comment, though, i sort of laughed because there's jamie dimon sitting near the sheila bairbig to fail, we shouldn't have it. it's become the biggest bank and his bank is the definition of too big to fail. is there not an iron any in him saying that we shouldn't get rid of them but not making them smaller. what is he saying? >> he's saying we find some magic way to make it less painful when these large banks fail. that's not realistic. it's simplistic to think that we're going to be able to take banks that are so huge and make it not painful when they fail. >> right. i mean, he's saying there's no -- he doesn't want to make jpmorgan smaller, but it doesn't seem like there really is any other way to pr veevent that systemic risk that matt's talking about. >> i agree with michael. too big to fail is like cancer. we're all against it but we're not going to see it eliminated in my lifetime. all we can do, as the administration is proposing, is to find ways of reducing the probability of failure and reducing the damage when they do fail. >> to be able to departmentalized the risk

she would do just about anything. >> apparently the relationship between sheila bair and geithner is strained. anyway, fine. in washington, the senate finance committee just starting to say the part that was there and -- >> i had no idea that was there. >> no, no, not you. it was going to be really smooth. but anyway, also in washington, the senate finance committee begins marking up the health care reform bill today. chairman max baucus made changes to his bill ahead of the event that would add $28 million to the measure. the committee has its work made up for it. members have drafted more than 560 amendments for consideration. >> it's amazing any legislation ever gets passed. >> is that just on the senate side? >> the emergency t.a.r.p. funding, the bill that was this bill and they were supposed to read it overnight. >> is that for the senate side? >> that is for baucus, yeah. >> and then they have to reconcile that with the house and the question is who has more power once you get into committee. >> tommy thompson told us yesterday it's the house. although others say it would be t

i know bret baire does. so how many fair shots do you need before you stop the nonsense?yeah, but you know how it works. these guys are saying you want to screw with us? well, get this, screw you, fox. that's what they are saying. bill: all right. it's just stupid. all right, now, when -- you know, i didn't get much out of that on any of those networks. i thought stephanopoulos was the feistiest. what did you think? >> so did i. i thought stephanopoulos was very good. and, you know, overall, bill, i think even though nobody made news. there were no really hard ball questions. i think, basically, they were better than they used to be. and i think that's because they realize that the american people have lost faith in them. don't trust them. they could dismiss my book when i write about them but they can't dismiss polls by independent groups that says the american people don't trust them them. bill: or falling ratings? bill: i don't know how can you say that when the only guy that asked about acorn was stephanopoulos. the other guys missed that story for two weeks? that's t

it is called baby bair. really comfortable, soft little vest that you can put on the child and it has a loop in the back that attaches to your own seat belt. so the baby can sit in your lap and if you hit a bad patch of turbulence which is of course what you worry about the baby won't fly out of your lap. they are secured to your seat belt and this is faa approved. >> that's great. real quick. this is the baby briefcase that let's you take all your baby's documents with you? >> exactly. and it keeps them all organized. vaccine records, doctor records, which as we know there are tons of paperwork. it is very important to know exactly what you have so that you can take it with you if you need to especially on a moment's notice. >> we missed some of the prices here but we will make sure you know all about them on our website. some great options to consider. thank you for joining us, margaret. >> absolutely. >> we have a list of these items at wusa9.com, just click on living smart. >>> it was a reunion three yea

. >> sheila bair says smaller banks could fail. as we go into the last quarter of the year, do i want to put new money to work in this new sector right now? >> we would lean toward the names that don't have the commercial real estate exposure. and that are not even dealing with significant credit costs. such as goldman sachs, that's our top pick. and also jpmorgan, because they don't have that much exposure, as i said. and because they have a nice balance between the capital markets and the more traditional lending side. >> what about regulatory changes? today we're seeing the federal reserve is really watching compensation, that's one thing. a lot of people worry that's going to impact talented people working at these banks. then, of course, with the financial reform on the table, you are going to see bigger government and more oversight. does that cut in any way? >> it could. the thing we're worried about the most, actually, is the degree to which regulation might force down the profitability of some core businesses, such as comm

i'm bret baire. president obama has been on the job 232 days now. and this will be his second address to a joint session of congress. this time there is a single topic, health care reform. the president says his speech will include specifics on his plan, including costs, implications, also what he hopes to see from congress in the coming weeks. one of the most contentious issues, a government-run health insurance option. the so-called public option option. so how will he walk the line? as we have been talking about, lawmakers in the left in his party say they can't pass a bill without it, while conservative democrats say they can't sign on to a bill with it the stage is now set. let's listen in to the house floor. [ applause ] bret: this is just the introduction to the diplomatic core. we are told president obama is running a little late to the house floor. we expect to see wilson livinggood the sergeant at arms in the house of representatives. he will do his famous introductions of presidents as he has done since 1995. brit, this is always an inter

he's sitting next to sheila bair saying too big to fail is a horrible thing. it almost was hilg laarious to h him say that and watch her reaction considering he is almost the definition of too big for fail. is there any institution in any of these structures that has the power or authority to tell jamie dimon, you're going to have to raise your capital requirements or jpmorgan chase is now too big? >> well, see, you put your finger on the key issue here which is whenever you give government regulatory power, what happens? the powerful interest groups, whether it be jpmorgan chase or some other institution, the powerful interest groups get the lobbyists, the insider access, and they begin to work the system in their favor. that's why regulation is very bad for the smaller banks and for our dynamic economy. we wind up creating it cartel of the big firms that are protected by the government regulation and so, in other words, i have zero faith that the regulators would do the right job and so the idea of giving them more power is like giving alcoholics the keys to

. >> sheila bair has been doing a fantastic job. i have to give her a shout out. she's closing down almost 100 banks this year. you don't even hear about it. she's doing it quietly, examining, closing down and taking on those losses. we'll see at the end of the day if in fact it's too much risk. so far, it really seems like she's steering the ship quite well. which takes me to the next question on the survey, what will it take to restore confidence, joe? what did the clients say given that there are so many uncertainties going into 2010? >> i think the brightest thing here that i feel good about, you have your slide up. one of the things that they talked about is, they are far less worried about the stability of the banking system today than they were six months ago. i think that part's terrific. now they're starting to devote their attention to what's going on with the actual spending that happens to be taking place in the system in washington. and i think that that is by itself, is a very positive trend from where we were six months ago. >> certainly feels diffe

shooel la bair says the fdic board of directors will meet at the end of this month to consider all optionsc's deposit insurance fund. >>> california's attorney general has issued subpoenas to moody's investors service, standard & poor's and trading as it investigates the ratings company's role in the crisis. they are looking into whether the agency violated state law by giving better ratings to shaky assets. that is cnbc, first in business worldwide. now back to msnbc. >>> i'm norah o'donnell live in washington. >> i'm monica novotny in new york. police are looking into possible motives for the murder other of yale grad student annie le after raymond clark was charged thursday with the killing much the two worked in a research lab that conducted experiments on mice. lee's body was found last sunday stuffed in a crawl space of the basement of the yale lab building. the hartford current is reporting the crawl space contained dna from clark as did bloody clothing hidden behind a ceiling tile. the newspaper also reports that investigators witnessed clark trying to hide lab cleaning equipment t

i'm bret baire in washington. a very special o'reilly factor analyzing this speech starts right now. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- bill: hi, i'm bill o'reilly. thanks for watching this special edition of the factor analyzing the president's speech on health care. that, of course, is the subject of this evening's talking points memo. trying to regain momentum on the health care issue, the president spoke for more than 45 minutes, way too long but is he obviously feeling passionate on the issue. the back story is that mr. obama was taken by surprise when millions of americans objected to the high cost of government-run health care and many of us reject the vision that bureaucrats will make medical decisions that effect our lives. can't have that. as far as cost is concerned, mr. obama says he won't spend any additional money on health care, expense will be made up by reducing waste and infish at -- inefficiency in the health care indu

in the panel last week there was a picture of jamie diamond sit is next to sheila bair. obvious obviously, jpmorgan defines too big to fail now. doesn't it? isn't that company too big? >> too big to fail ought to become historical terms. i've determined in this bill as i think a number of my colleagues, both democrats and republicans on the committee, to fashion a system whereby we can actually have the unwinding to trusteeship or receivership that companies can fail and unwind without posing the option of either dumping billions of dollars into a failed company or just letting it fail. senator warner, mark warner, of virginia, senator bob corker, a republican from tennessee, along with many others that are working on this, along with the administration, we're going to have a provision in here that i hope will put "too big to fail" in historical terms and never again be permissible in our country. >> i think a lot of people are confused. jpmorgan has gotten bigger. they still have investment banking, commercial banking and a whole lot of things under one roof. maybe the

. >> jaret, that's just what sheila bair at the fdic does not want. that is one of the biggest sticking points for this whole thing. is there a deal there or is the fed going to roll this or what happens, jaret? >> i can't see them consolidating the agency. the lessons from the uk suggest that consolidating the power doesn't do any better of a job than the system that we have. >> didn't they miss the crisis also? >> yeah. it happened regardless of the structure. i think the first step that needs to be taken is they need to revamp the capital rules. they need to get rid of many of the exceptions. they need to get rid of some of the sec problems that discourage building reserves. and that should be the first step. and then they can spend some time to debate really what the most ideal structure is. >> all right. we've got to leave it there, gentlemen. thanks so much for joining us. we appreciate it. >>> also a programming note. john horowitz sits down with president obama one on one this afternoon. "mad money" 6:00 p.m. eastern time. then "1 year later"

what's most interesting to me is the sub story of sheila bair's relationship or lack of relationship with tim geithner at the treasury. she is loathe to have to go hat in hand and say, tim, hook me up with a $100 billion backstop. she wants to look at all other options, maybe a portfolio of options before she has to walk over to pennsylvania avenue. >> nobody at the fdic or federal government would say so. is there any danger here if the fdic runs out of money and banks are failing that at some point the depositors insurance isn't there for your bank? >> it's all circular. as we saw from the crisis last fall, the government came in very quickly, geithner and paulson came in and said we need to guarantee money market funds. if there's a collective run on the bank situation, we're in a 1930s situation and the three of us would be in a bread line. i think in the end despite semantics the government is not going to let this happen. as we saw with fran ni and freddie you can't leave these things to chance anymore. you have to codify them specifically. we ought thought fannie mae and fredd

if sheila bair would ever let these banks take over. giving you a thumb up for santender and a thumb up for bankobreval. dominik in florida. >> caller: ba-ba-ba-boo-yah. i want to know about 3com. >> you know what 3com's like? i'll tell you what it's like. it's like troy versus university of florida last saturday. yes, i kid you not. and i tell you, tebow plays for apple. on a seller at 3com, unfortunately a seller of troy and a buyer of tebow and apple. eric in new york. eric! >> caller: boo-yah, jim. >> boo-yah. >> caller: i just want to see what you think about directv. >> it's a winner. it's a winner. what can i say? it's a winner. they got a lot of the right moves, right package. not an expensive stock. dtv is a winner. and there are very few entertainment stocks i recommend on the show. i do like viacom, by the way. i think it's good. and you know i've warmed up to time warner. let's go to joe in nevada. joe. >> caller: boo-yah, jim, from wonderful huntington, nevada. >> good to have you. second nevada in the course of the show. i

i'm bret baire in washington. a very special o'reilly factor analyzing this speech starts right now. bill: hi, i'm bill o'reilly. thanks for watching this special edition of the factor analyzing the president's speech on health care. that, of course, is the subject of this evening's talking points memo. trying to regain momentum on the health care issue, the president spoke for more than 45 minutes, way too long but is he obviously feeling passionate on the issue. the back story is that mr. obama was taken by surprise when millions of americans objected to the high cost of government-run health care and many of us reject the vision that bureaucrats will make medical decisions that effect our lives. can't have that. as far as cost is concerned, mr. obama says he won't spend any additional money on health care, expense will be made up by reducing waste and infish at -- inefficiency in the health care industry. i hope he has a magic wand. i'm not being sarcastic. if it could have been done, it would have been done. i

with an interview, bob, with sheila bair from the conference. >> you're jetting off to these things. >>> after the bell, john mack and vikram pandit look back on last year's financial meltdown and tell us how business as changed as a result. we are first in business worldwide. ♪ look at this man ♪ so blessed with inspiration ♪ ♪ i don't know much ♪ but i know i love you ♪ and that may be ♪ all i need ♪ to know (announcer) customers love ge aircraft engines almost as much as we love making them. innovation today for america's tomorrow. this is humiliating. stand still so we can get an accurate reading. okay...um...eighteen pounds and a smidge. a smidge? y'know, there's really no need to weigh packages under 70 pounds. with priority mail flat rate boxes from the postal service, if it fits, it ships anywhere in the country for a low flat rate. cool. you know this scale is off by a good 7, 8 pounds. maybe five. priority mail flat rate boxes only from the postal service. a simpler way to ship. what's on the minds of independent investors? let's ask. when you're trading a stock, every penn

john bair on aone-on-one session sa you've got t go o and publiy apolise. >> no, i dn't. >> you know e support i'm getting and the moni that's cing in, lus he probably didn't want tbe on tape apologing which we do televise house floo oceedings. so every hour it is still alivhurtsepublicans because it is a party. whatever you say about john boehner and mitch mcconnell they are not household words or faces. you don't need joe wiln, you need him t take his fiveeconds of fa and get it over wth. >> lehrer:here has been a lot of commentaryround a lot of this, that this is really -- reallyndicativ of a low kd o standard o discourse, negativ discrse, negative standard of discourse in the untry. do you think-- >> i mean it didn't come out of nowhere. i mean there ar certain unconscious standards we all behavior -- behalf in certain ways, you go to a funeral or a chch you behave in a certain y. these are deep and ired. you don't have to thin about . t there has beenhis broad core over many years inhe way peole talk in private and then s suddenly behaved in a way that normally there wou be just

>> that's up to sheila bair.he has been a great regulator, and has a lot of support on the hill shall bipartisan support. i don't think it's going one way or the other. it's what's more efficient, what's more effective and what can be done quickly? we have to allow her judgment and look at it later on. y think there could be any fundamental error there that could cause extraordinary problems one way or another. it's a matter of convenience. >> are you worried about how many bullets the fdic has in the revolver if, in fact, a huge number of banks start failing as we head into the end of the year? >> we certainly have to make sure it's well equipped to handle any failures that occur. we know there's a possibility of 300 to 400 very weak banks, many of which probably will fail. but so far, they've been very successful in either merging those banks, taking them out over weekends, reconstituting them. now they need some support either from treasury or a bond sale to have the sufficient funds to accomplish that. that a

all eyes will be on the key note addresses from f did i c woman sheila bair, mary schapiro and larry summers. that's your global stock watch. maura, over to you. >> coming on "worldwide exchange," trade tensions between the u.s. and china are on the rise. how will they impact the g-20 discussions next week? we'll have the analysis for you. >> and we're about to get insight into the uk data next week. we'll have your analysis right after this. >>> um bill-- why is dick butkus here? i hired him to speak. a lot of fortune 500 companies use him. but-- i'm your only employee. we're gonna start using fedex to ship globally-- that means billions of potential customers. we're gonna be huge. good morning! you know business is a lot like football... i just don't understand... i'm sorry dick butkus. (announcer) we understand. you want to grow internationally. fedex express >>> i'm maura fogarty. in asia, shanghai stocks dropped 3% as steel shares get hit by reports the u.s. may impose duties on chinese-made steel products. >> i'm ross westgate. here in europe, lloyd's banking group dismisses ta

sheila bair says she would like to avoid tapping a $3 billion credit line with the treasury. >> the s.e.c. is holding a public round table today to discuss new regulations for the lending market. this includes reinstating the so-called upparticular rule where investors can only short a stock after it rises or ticks higher. short selling has been blamed for worsening the investment crisis. but others say short selling enhances liquidity in the market. >> coming up here on "worldwide exchange," stocks are snapping a three-day losing streak thanks to a nuri of m&a. we're still a little lower in europe. plus, deflation deepens in gentleman opinion. we'll he assess whether the government will need to launch fresh stimulus measures to boost domestic demand and investor attention turns to third quarter earnings. are we underestimating how productive have become? how you could start saving. >>> hello. welcome back. you are watching global exchange here on cnbc, "worldwide exchange," or global exchange if i change the name of it. we are now all put in little tiny boxes because we're a global show.

take a listen what the head of the fidic sheila bair told me this week. >> there is a difference between there are also financial institutions themselves should take some leadership here, too. and they should recognize that there was a lot of excessive risk taking and the government had to step in. regular working americans and their taxpayer dollars had to chom in a some in and support them. it's unseemlying to have the eye-popping bow bonuses and the "business is usual" culture and they should exercise more self-restraint. >> strong words there from the head of the fdic. tony? >> has any legislation been passed to curb this excessive pay issue? >> nothing has been passed in full. the house did pass a bill in july, tony. what that did is it gave shareholders more say on pay for executives. it would also limit bank bonuses at places where there is the, quote-unquote, excessive risk taking. but the senate hasn't even looked at it the fed's plan, though, that is just a few weeks away from a final vote there by their board. we'll see what will happen. the interesting thing to note here, ton

i think treasury secretary and his staff, i think sheila bair and ben bernanke has shown a great understanding and gary gensler. i think the administration has put a good team together. we're going to have a tough new regime controlling derivatives based on cooperation between myself, the chairman of the agriculture committee, mary schapiro at and gary. >> i think getting to the heart of the question, though. can you reassure wall street as well as the american people out there that every member of congress may be as well versed as your staff in all of these things, in things like d derivativ derivatives? >> no, look, i'm not as well versed in some of the aspects of the national, aeronate ticks and space. we do delegate. i can say that the decision-making will be in the hands of people who understand what we are doing. by the way, i think the financial intermediation function is very important. i think we've gotten away from it. there was a very important function. it is to akreet from a large number of people in relatively large amounts and make it available to a smaller number of people, the

lastly, i have a deep concern over this bair that rush limbaugh and sean hannity and these others are fanning and when it burns, it will burn america. i don't believe america can fight a war on the streets of america. host: banking. we'll get a different view from both cretonne, florida. -- thank you. caller: -- boca raton. caller: there is definitely a need for social reform in the country in terms of reforming medical systems. there is no doubt about it. yes, president obama has to deal with the economic situation. it is one of the worst economic situations we have had since the great depression. host: jeremy, your point is also a limited by david kennedy. let me sure what you wrote in late august. -- let me share it. guest: absolutely, look, a bad overseas war ultimately poisons a president's. it has the cascading effect in terms of leading a country, to be a moral force, to push the system to do things he wants. that is on this president's mind and on the minds of his people. right now they have an interesting dilemma because general mcchrystal, the new commander installed by this

. >> last week in the times, they said sheila bair would cut off her right hand before she would ask for money from tim geithner on this. >> with her buddy. >> with her buddy. but other people say you really don't want to borrow money from treasury because it would send a bad signal that this is a serious emergency. other banks say maybe it's not as bad as getting a one-time fee that goes towards future payments, as well. we are also on white collar crime watch today. the scattered showers will consider whether to hear the appeal of jeff skilling. his legal team is expected to show that the jury was prejudice and that is underlying facts of that case were flawed. meantime, there will be specific recommendations for reform at the agency. let's get a check on the markets this morning. markets up sharply yesterday. in fact, it was the best day for the markets since august 21st. this morning if you're watching those futures, they're a little below fair value, but not by a heck of a lot. you're talking about the dow futures down by 5 points below fair value. the s&p is down by under two p

secondly last week's sheila bair said they might have to close the banks down, we still have a bank problem in the u.s. where there's assets and commercial real estate certainly that has to be recognized. the fundamental underlying economy. marches don't end up well, and you can ask the residents of atlanta. you can't always march in the same direction. >> people like jim grant who wrote over the weekend say you're very likely going to see a strong snapback in this economy because when you -- the bounceback always tends to reflect the opposite of what the downturn was, and this was such a severe downturn. you see a fear of upturn, or strong upturn when it comes to the economy. what do you say to something like that. >> sure, absolutely. and we have that 56% snap back. i think we've experienced the snap back. what we have to tease out from the -- >> he was talking about specifically about the economy when you start looking at gdp over 2010, he was talking about the economy. if you see the economy snap back sharply, does that mean you'll continue to see the stock market gain? >> sure. but the

the only really good voice out there -- well, there are a few others, shelia bair is doing great stuffeth warren is the person who should be out there put in charge of this she's been a clarion voice, focusing on the right issues. >> most of us are here in new york, some in new jersey, but what the heck were you thinking? >> well, you know, i've said, john, i'm human, i made an egregious, egregious error. i spent the last year and a half, fortunately, with a loving wife and three daughters who are spectacular and that's where my focus is and that's where it will continue to be. >> all right. former governor spitzer, thanks for coming in. >> appreciate it. >>> still ahead, did the president's to the big apple trigger early morning raids by the fed in a neighborhood in queens, or was this all just a big false alarm? a lot of unanswered questions this morning. it's 18 minutes past the hour. show and tell you weren't always my favorite day. with all the pet hair in the air, i'd spend class preoccupied, bothered by itchy eyes. but now i have new zyrtec® itchy eye drops. it works fast, with

i want to read a quote from sheila bair of the fdic -- " supporting this into different organizations would reduce information that is necessary for both entities to effectively perform their functions. separate consumer protection and safety and soundness would result in similar problems. placing consumer protection policy setting activities could ultimately result in a less- effective protection for consumers." she is expressing what appears to be a common sentiment among regulators by forbidding piece "regulatory objectives will actually weaken protection from the standpoint of a number of people. i know the arguments is that they want to protect their turf but when you listen to the economists that look at the past experience with bifurcasting these two functions, i want to ask you about that. >> i want to do this carefully. i think they are right to raise the potential concern. i think i shall the concern. we would not be enthusiastic about a proposal for reform that would create the risk. we have had a lot of experience in this country with combining the authorities together. we

i sat down with sheila bair, president of the fdic. >> there is a difference between capitalism and unbridledy should recognize there was a lot of excessive risk taking and the government did have to step in. regular working americans had to come in and support them. it is unseemingly to have eye-popping bonuses and business as usual type of culture. you think they would exercise more self-restraint. >> the bottom line, chuck, she is not talking about regulating exact dollar amounts when it comes to wall street compensation but compensation tied to long-term performance and not tied to a year of performance for a trader on wall street. a lot of talk about this re-emerging. >> any legislation to curb executive pay? >> the house passed a bill in july giving shareholders more say on executive compensation and limit bonuses based on risk taking. it is not law yet. in a recent speech goldman sachs ceo said excessive pay works against the public interest. that was very interesting from him. he at the same time said bonuses are important on wall street to attract top talent. you have two sides of th