park avenue to the lobby of bear stearns. ironically bear stearns was also the billions of dollars they received in the bailout did not go into the company's cheer holders but to those to whom. it was a deal that ultimately saved the creditors to bear stearns by forcing it into j.p. morgan at the expense of equity holders michael hudson points out the bills the homeowners and corporate america on how in hock to the debt machine many corporations are effectively in negative equity or in and technically insolvent position headed by the financial sector by the banks themselves there really sympathy for the demonstrators in the bill. i don't know if there's a lot of sympathy per se to their point of view i mean we were you know in a similar similar boat so to speak a similar boat perhaps only one life preservers the fact the government now is funneling money to a major bank and saying if you can do that with a bank why not do it with strap homeowners facing foreclosure as democrats thank. god. my god thank you let me ask you cris

it was a deal that ultimately saved the creditors to bear stearns by forcing it into j.p. morgan at the expense of equity holders michael hudson points out to the homeowners and corporate america on how to the debt machine many corporations are effectively in negative equity or in and technically insolvent position headed by the financial sector by the banks themselves really sympathy for the demonstrators in the bill. i don't know if there's a lot of sympathy per se to their point of view i mean we were you know in a similar similar boat so to speak a similar boat perhaps the only one that has life preservers if the government now is funneling money to a major bank and saying if you can do that with a bank why not do it with strapped homeowners facing foreclosure as democrats thank god was. crisis increases desperation. hudson says main street is leading the move on the street in a battle for survival we are seeing a second class war in this country such as you've never seen in the entire history of the united states a class war class war except in this case the class war

>> bear stearns was selling them. lehman brothers was selling them. aig was selling them. you know, the names we hear that are in trouble--citigroup was selling them. >> these investment banks were not only selling the securities that turned out to be terrible investments; they were selling insurance on them? >> well, it made it easier to sell the terrible investments if you could convince the buyer that not only were they gonna get the investment but insurance. [ticking] >> coming up, defending credit default swaps. >> these people understand the nature of these products. they understand-- >> well, obviously, they didn't, or they wouldn't have bought them. they wouldn't have used them. that's ahead when 60 minutes on cnbc returns. for over 60,000 california foster children, having necessary school supplies can mean the difference between success and failure. the day i start, i'm already behind. i never know what i'm gonna need. new school, new classes, new kids. it's hard starting over. to help, sleep train is collecting school supplies for local foster children. bring yo

them i mean if you look at the balance sheet to lehman brothers a look at the balance sheet of bear stearns sure they had huge mortgage inventories they do securities inventories how do you think they finance those bear stearns was financing them in the repo market with bank of america so if it wasn't for those big banks again financing the whole thing the other thing is with this crisis that lawrence people said well this is about a trillion dollars of subprime and all day you know historic to four rates it never gone above five percent they say let's be crazy and assume twenty percent of forwards which was unprecedented that's a two hundred billion dollar loss in a trillion dollars of mortgages less than the s. and l. crisis is just a for inflation so they said what's the big deal we can survive this what they missed was that sure there were trillion dollars of bad mortgages but there were six trillion dollars of derivatives and the derivatives are the off balance sheet exposure of the banks again the banks are the culprits because of securitizing garbage loans and their derivatives books

leadership did not have expectation that the government would come in and rescue it as it had bear stearnscause they felt bear stearnss was smaller and less important, how could they help them and not me? >>neil: that changed people's views. this is where geithner came in. in thening, the new york fed president, later on, the treasury secretary for obama. i did not realize there was so much worry about citigroup than, later, justifiably over bank of america and what it was taking on. explain that. >>guest: it was. we were not, we learned in doses, we knew citigroup was not in great shape but i don't think we had full appreciation of how sick it was until we got to the end of 2008. their counsel was they relied on uninsured deposits. >>neil: they locked worse than bank of america? >>guest: yes. they got into trouble later on, and if bfa had a problem it was merrill lynch. >>neil: and we bailed them all out? >>guest: yes. >>neil: you said what? >>guest: mayoral lynch was -- merle lynch was at fall. city was at fall. say the accounting rules on what they should be in how the institutions mark

these beautiful things are so classy and comfortable i just couldn't bear stearns that i when i saw them. a shopaholic is someone who will stand in front of a full closet firmly believing that there is nothing to wear these people relieve nervous tension by heading to the mall but often regret making the purchases afterwards. each friday after work hundreds of strangers get together at this plaza to give and take guess a new social networking site offers everything from t. shirts to washing machines for free all contributed by users the idea is that the people who keep the necessary things or normally throw them away can give them to others instead. of my kid played with it and know we want to give it to someone else. you can make a gift to some service the museum. a money mentioning. a community of donors has created a virtual second hand shop giving things away free of charge a utopia created with the help of modern technology could become a reality if millions rather than hundreds behave in the same manner. that if you accept as something as a gift you must be thankful for it and must

i remember the bear stearns e-mail that sunday night when it turned out bear stearns was going under getting bought out for $2. i was working for cnbc at the time. everybody said $2? is it a type skro? is it possible? >> were you down on wall street? >> yeah. >> the whole atmosphere must have been -- must have made an impression. >> remarkably better four years later. the banks are in good shape. sheila bair will talk about it. , >>> apple ceo tim cook offered a rare apology on friday for all the weird stuff on the new but error riddled apple map application. >> and in another extremely rare move cook gave directions to those looking for directions telling them to check out some map apps made by other companies. he sent them to the competition. >> you got to be honest about these thing. >> welcome to cbs "this morning saturday." i'm rebecca jarvis. >> i'm anthony mason. >> arnold schwarzenegger is attempting to make a come back. he conquered body building, movies and politics. but a personal scandal brought him down and destroyed his marriage and his reputation. his memoir," total re

nomi prins was a managing partner of bear stearns and goldman sachs this is the most expensive take out the biggest crime in world history we're talking about a crime we can't even quantify we're talking double digit trillions of dollars and a lot of this film will explore the scale of money's missing written off lost ripped off in these various scams and in the case of the bailout funds unaccounted for. graydon carter editor of vanity fair may have summed it up best when he wrote it can fairly be said that the chain of catastrophic bets made over the past decade by a few hundred bankers may will turn out to be the greatest nonviolent crime against humanity in history they brought the world's economy to its knees last tens of millions of people their jobs and homes and trashed the retirement plans of a generation and they could drive an estimated two hundred million people worldwide into dire poverty and know the words never before have so few done so much. to so many and when experts estimate the total money lost may reach a hundred ninety six point seven trillion dollars and that coul

making any of these decisions but as somebody told me you know a twenty eight year veteran of bear stearns told me if you're a trader and somebody tells you the market's going down in september and goes down in september it doesn't matter who that person is you're going to go back and ask what's going to happen in november and not tell me what you see you know because you never really know i mean the market is almost in itself a mystic occurrence of mystic phenomenon and as you know one of the first things that i found out when i was a financial reporter and i just started i would read. market stories i would say the market is up today because you know oil and afghanistan and like all these really elaborate theories and i was like wow people must be really hard to. understand how these geo political things cause a change in the dow no i don't know if i could ever write my mind around that of course you become a financial reporter and you realize basically everyone is guessing and it's not you as the reporter who's guessing it's also the people in the market was guessing that everyone's tak

situation that has to do with the will truly and has to do with the position they took over from bear stearns the bottom line is all this is coming together and i would look for the price of silver to explode in the not too distant future ok so when you think that could happen this month or next month you're saying possibly one thing i saw that i read that caught my eye was it was an investment professional in the silver space who was writing and said that he had heard that last week j.p. morgan raised the price it was willing to pay for silver to thirty one dollars this was above the price that spot silver was trading at last week why would they do that well it's a good point if you're in a position and you're short and you have to deliver to longs and you can't get the physical supply you raise the price above what the general market would so you can get it and there's not desperation yet but i'll use i think pretty soon you're when you see the price acceleration that's when you know the panic has started so you think that's what this is about that this shortage of supply that j.p. morgan c

that's when bear stearns collapsed. ago today, four years ago today, i was at the new york jet/new england patriots game. lot of confidence in the air. it was a surreal experience on that sunday, the 14th of september, because everybody in that stadium, was glued to their blackberries or their iphones trying to figure out what was going to happen. that's the day it became that lehman wasn't going to make it. that merril lynch was going to combi combine. i bring out a little souvenir here today, going back to that period of march, melissa, this was something, a department within lehman brothers focused on creating these types of marketing products. this was after bear stearns collapsed. this is a rubik's cube. the goals of the company. this is my favorite, here we go, demonstrating smart risk management. obviously, joking a bit, little tongue in cheek, i want to talk about something serious, you continue to hear as we approach now entering five years, that nobody has been prosecuted. nobody has been put in jail for the c

another banker at the table was jamie dimond, months earlier his bank j pchpmorgan acquired bear stearns considered one of the most powerful bank ceos in the world. >> christine romans, thank you very much. >>> lehman's failure shocked the financial world, really the entire world, suddenly anything involving money seems scary. want to bring in jill schlessinger, editor at large of cbs moneywatch.com. thank you for joining us. what do you remember most about that historic time in september, right after lehman failed, the fear, the panic, so many people believed the american financial system might just self-destruct. >> it was scary. it wasn't just lehman brothers. that was a critical week. it was crazy. it was the day before where we had merrill lynch being acquired by bank of america, lehman brothers failing, aig needing an $85 billion bailout, we had the first t.a.r.p. plan unveiled, we had a money market fund going below the dollar a share. this was a monumental week. any one of those events in isolation would have been historic. together, they were practically cataclysmic. what i reme

. >> dennis, bear stearns was not a bank. lehman brothers was not an fdic banks.et your facts straight. >> which is why if you read the report, it says wall street. >> but you're saying banks. >> no. i did not. >> that is wrong. >> yes, you did. >> maria said it. i said wall street. but more importantly, alex -- >> so it's not the banks' fault? are you saying it's not the banks ael faults? >> no, maria, even alex would agree that the financial crisis in the economic crisis has inflicted great damage from one end of the country to another. and the american people and the policymakers ought to know how much that cost. >> yeah, but people like you, dennis, people like you -- >> and we ought to address how to avoid it from happening again. >> sure. but we also should address -- we also should address the fact that there is an enormous amount of class warfare in this country. everybody hates everybody. there's a lot of attacks on the banking sector. and i want to be clear, if you're going to say it's the bank's or wall streets' fault, we need to talk about it. if it's

department had taken over mortgage giants fannie mae and freddie mac that same month, and helped save bear stearns earlier that year. treasury secretary henry paulson told reporters he was drawing a line in the sand. >> i never once considered that it was appropriate to put taxpayer money on the line in resolving lehman brothers. >> suarez: the decision helped trigger a credit and liquidity crisis, fueled by deep doubts about the health of financial institutions. weeks later, congress and president bush passed the $700 billion troubled asset relief program, or "tarp." through tarp, the government disbursed money to hundreds of banks, and propped up firms like citigroup and bank of america. money also went to general motors and chrysler. tarp also provided new help to insurer american international group. a.i.g. was exposed to risky securities and provided insurance on credit swaps around the world. if it went down, the fear was other firms would follow. in october 2008, i asked edward liddy, who was the newest head of a.i.g., whether the lifeline would save the company. do you think that's going t

and linda geithner completely surrounded himself from people on -- with people on goldman sachs, bear stearns, merrill lynch. from an outside perspective, especially one sensitive to the issues of fraud and abuse, that that is a valid voice to hear. even if you disagree with that voice, even if you think that voice is wrong, it is still valid to get that input so you get something to pierce the echo chambers of these pro-wall street voices. >> what was tim geithner's motive? he is not going to continue as secretary of treasury, the matter what, i guess. >> i don't want to speculate on his motives. i can comment on ideology -- and it really reflects the wall street ideology, the sense that what is best for the banks is best for the country. these top banks. when the banks were telling him that more transparency would be dangerous -- the things i heard more transparency, things like having to account for how the spent the money could be easy -- it could be dangerous, it could take down tarp, the banking system. i think he accepted those voices on wall street without questioning that. i was tryi