now that there's a civil lawsuit for bear stearns related to related fraud. do you regret participating with the federal reserve to buy bear stearns in two thousand names. of the federal reserve because we were asked to by the us a favor to finance some of the no no we did them a favor and we look at this one exactly right we were asked to do it we did it to great risk to our souls. first obviously the government backed this transaction whether it and it asked j.p. morgan to do it or not so it wasn't j.p. morgan participating with with the fed why did everybody last laugh when we asked that question well you know i think look i think he deserves credit for that point by all published accounts who are not involved in that but the new york fed has

now that there's a civil lawsuit trigger bear stearns related to related fraud. do you regret participating with the federal reserve to buy bear stearns in two thousand names. of the federal reserve because we were asked to by the us a favor to finance some of the no no we did them a favor i mean look at this one exactly right we were asked to do it we did it a great risk to our souls. first obviously the government backed this transaction whether it it asked j.p. morgan to do it or not so it wasn't j.p. morgan participating with with the fed why did everybody last laugh when we asked that question well you know i think look i think he deserves credit for that point by all published accounts who are not involved in that but the new york fed has never disputed that he was asked to come in and buy buy bear stearns with government assistance the new york fed offered up so i think it is kind of hard to hold them to account for this. and i wish on the bear stearns lawsuit i mean on the other hand they are a big financial situation they have a lot of very well paid law

reuters is reporting jpmorgan securities and bear stearns are being sued over mortgage-backed securities by the national credit association. this is over alleged misconduct and $3.6 billion in mortgage securities to credit union collapse on losses from those securities. we will continue to follow that story for you. the stock is higher at this point. dennis: stocks now as did every 15 minutes, nicole petallides on the new york stock exchange. nicole: all eyes on washington now discuss the fiscal cliff trying to come to some sort of agreement to make this happen for u.s. taxpayers, americans across the country who are eagerly awaiting a bipartisan decision of some sort end justifies the meeting has brought some optimism to wall street and as result we are seeing the dow up 91 points. focusing on bank of america the top performer on the dow jones industrials. some of the tech stocks are

you know, jpmorgan has this story, too, with bear stearns. it's not going to kill them, but it's going to be ugly. investors want to see a settlement or ugly. these banks are fighting it out and it could go on for years. >> so, is that a no? >> i think, to me, i would not be a buyer of any of the top banks other than u.s. bank, but i know people on the street who have put everything they've got in the bank of america and citi. >> all right, let's go off on that. meredith talked about march 2013 being a catalyst date. as a trader over the next three months i'm going to be saying, which of these names do i want to be long and sell the news in march. which of them you think has the best chance of -- >> i don't agree with meredith's premise, because, yes, they may let me use a little bit more capital if i'm one of the top four, but i'm living in a world where instead of an 8% risk rate, i have 100% risk rate. many of the assets i would like to create in terms of generating revenue are going to be much

eight right before the collapse that we were gong being time into we've gone along on these a bear stearns clowder ally's debt obligations and now everybody's going broke and in the case of california san bernardino has decided they're not going to take help or scalpers to saying we have primacy as a creditor we are arm of the state wall street bondholders and insurers however the . emily disagree arguing that federal bankruptcy law trumps state authority and should allow them to fight with cal pers in court as equal creditors so again this is the ok bond corral we have the insurers we have the bondholders we have wall street we have cowper's we have sent bernardino a corrupt city where you know all sorts of managers of this this tiny city were paying themselves exorbitant salaries and looks like all the violence in america is leading up to the new civil war between savers versus speculators san bernadino it's going to be divided between savers versus speculators pension guaranteed holders versus private equity you know you'll have mitt romney on one side versus the pension holders of of h

the national credit union administration is filing lawsuits against both jpmorgan and its bear stearns unit. the suit claims that bad mortgages totaling $3.6 billion were sold to a handful of federal credit unions. losses from the mortgage securities eventually led the unions to collapse. rim is giving 120 top-tier customers a sneak peak of the new blackberry 10. select government and enterprise customers are beta-testing the new phone. the blackberry 10, which launches next month, is considered by many watchers to be a make-or-break device for blackberry. research in motion, better known as rim, has been struggling mightily to maintain market share against the iphone. the race to the top spot in car sales is becoming more competitive. currently, general motors is in the lead, but toyota is coming on strong and so is volkswagon. based on gm's track record of overproducing cars then offering incentives to clear out showrooms, coming in second is not that bad accoridng to joe wiesenfelder of cars.com. "it might seem like they are losing by going to 2nd or even 3rd place, but in reality i

bear stearns is holding this. he was very early on that i have to give him kudos for that.ive offers, he has to make a decision coming down the next day, in days. he is friends with him. there is some loyalty. melissa: it shows how exemplary it is. >> he is a brand. melissa: he has a big book coming out. >> he is a brand. in tough times you want a brand. you go with the brand. melissa: charlie gasparino, thank you so much, good stuff. lori: and now "gangnam style." alan simpson briiging fiscal cliff talks to a whole new level. neil cavuto is up next with his trademark move. you know how painful heartburn can be. for fast, long lasting relief, use doctor recommended gaviscon®. only gaviscon® forms a protective barrier that helps block stomach acid from splashing up- relieving the pain quickly. try fast, long lasting gaviscon®. relieving the pain quickly. i have obligations. cute tobligations, but obligatio.ing. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishas core, building blocks for the heart of your portfolio. find out why 9 o

it is not an exaggeration that bear stearns was mostly done in by the extreme mismatch in its assets and liabilities. however, firms show the different strategy while facing the same yield curve. the book discusses the strategy of goldman which was less profitable at the time but more stable. the book discuss today some firms thrive and others failed, fundamentally about why different firms made correct decisions and others did not. it is opprobrious that the book form is in the hyatt auditorium. what separated successful firms from the failure was how well management utilized the first information within both their terms and the marketplace, firms that failed were management was insulated. dependent on their own knowledge. firms that succeeded where those management harnessed the information within their firm by creating effective feedback mechanisms. let me go back and remember a little bit when i first came to washington after my doctorate and one of the first books i was exposed to was tom's book titled the state of ridge, where the government sponsored enterprise in the financia

united states government jamie dimon said that he did the fed a favor a way his bank acquired bear stearns back in the crisis so there's lots of their favorite going around other stars we'll see what he has to say when silver is on its way to one hundred dollars an ounce and they're all choking you will think maybe you'll do your end zone dance maybe go through that yet again with all of our feet thanks so much you guys for being on the show and i know you want to be here. ok let's wrap up with loose change and dimitri you know we haven't covered the newtown tragedy the shooting at the elementary school which is horrible and in the wake of it we have seen a number of discussions about gun control gun laws if they should change what should change to avoid something like this happening again and also respecting the constitutional rights of americans have to bear arms here or a smattering of headlines but we're interested in talking about the business angle because we're seeing reaction from wall street to wal-mart so demitri kerber. others kerberos rate is awful no arrests no it's purpose ca

. >> the federal reserve is bailing out bear stearns... >> narrator: it's a familiar cycle.customers are outraged. lawmakers promise change. then it happens again. >> mf global, down almost 39%. >> an increasing number of investors are betting the stock has farther to fall. >> of all of the collapses that occurred during this financial crisis, the collapse of mf global, in my mind, is the most egregious. this did not have to happen. >> it is a wall street morality tale in some ways. how can something like this be allowed to happen? how can one individual completely shape the destiny of this firm and ultimately its demise? >> narrator: this is the story of jon corzine, the collapse of his company, and why no one stopped him until it was too late. >> he is fiercely ambitious and an aggressive risk-taker. and that's the part that never comes across when you talk to him in person. you get this sort of avuncular feeling that totally masks what is a highly aggressive and ambitious guy who takes these huge risks with other people's money. >> narrator: corzine had an impressive résu

and, of course, the most recently, most recently by the lehman brothers and bear stearns.other times when i think of her under what circumstances did bailouts make sense of? >> too big to fail or what to do about it, this is a more important, and even the volcker rule. i know we are in the heart of things. [inaudible] because they feel protected they take the risk. there's no doubt that they were protected on a grand scale during the crisis. even stockholders were being protected. very few cases were stockholders wipeout. so this is a big problem everyone is concerned about. and what do you do about it? and there hasn't been enough attention on this. dodd-frank bill has a section that says in the future no failing significant financial institution will be saved in the sense of the management and the stockholders remaining, particularly -- [inaudible] be put at risk. but how they going to do that? you have to override the normal bankruptcy laws, and they said the government, in this case the united states, which they already do for small banks, can step in. they will if the

our shores but it was true it was true with it was a veggie, of lehman brothers, citigroup and bear stearns. and yes, risks here can send things crashing to your. and we certainly did that with a housing crisis, hurting people in europe as well. under the guidance and completed rules, swap getting of more than $8 billion of notional value with u.s. persons would require somebody to register government is abatement will do it at the end of this month. the best to protect taxpayers and promote transparent markets should cover transactions of overseas branches and overseas affiliates guaranteed by u.s. entities. i think failing to do so, if we don't cover somehow the overseas affiliates that are guaranteed back your, not only will be exposed the public to risk like aig, but we would probably send jobs from the u.s. to overseas because our u.s. firms which is send jobs overseas. but the risk would still come back here. i think that's a competitive issue. furthermore for foreign firms to register, we are committed to substitute a complex but what does this mean? that means if there's probable an

i think -- i think that, you know, he has made some very good calls on bear stearns. i disagree with his assessment of the city. i think what is good is his perspective, what he is really known for. he kind of understands this sort of guts of these banks and why so many people want to hire him, because he is good on tv, explains things well. investors liked hearing from him, and he is a guy that could call a jamie diamond and get him on the phone. >> when j.p. morgan state chase. >> the name is escaping me. adam: the point you make, when they had the problem, we interviewed at eight. >> and he can, and get him on the phone. the sweepstakes is coming to an end. i can't tell you exactly when, but to reiterate the news, from what i understand, a very advanced talk to sign this thing adam: investors have a lot of skin in the game involving the fiscal cliff. has this been priced in? i'm hearing that they still think there will be a deal. >> investors do. the market, we should point out, the market has priced in the fiscal cliff. i talked to see as a lot. they are starting

bear stearns went out of business, jpmorgan took them over, essentially, during the early stages of thecial crisis. lehman brothers went out of business, and some people say that was the spark that led to the greater financial crisis -- jenna: charlie, i need to interrupt you, because we've got to run to another big econ story, house speaker john boehner just took the floor in talking about the fiscal cliff. let's listen in. >> mr. speaker, i rise today to recognize victor dhi dhi qar lor receiving -- jenna: well, maybe i jinxed things. [laughter] i was told that he was speaking on the floor. we saw him come up, but sometimes they need to do a few different orders of business before they actually get to the topic, so i apologize for charlie gasparino who was giving us an overview of where we really stand here in the financial system, and that does play into this fiscal crisis, because one of the big questions with the fiscal cliff crisis or negotiations is how big of an impact will it really be to this economy overall, ours and the global economy? so as we continue to watch the business

bear stearns had a number of their legal entities in the cayman islands. they found it was appropriate for them for tax planning and other reasons but the risks still came back here. >> if the risk comes back to us is the substituted compliance, as strict in london as it is in america? it's unusual that the crisis happens in london. mr. cooper, would you like to comment on it? and i will say in basel iii we're hearing from some of our financial institution that is the capital requirements are more onerous on american banks because american regulate, are going to enforce them and many competitors feel they will not enforce it. so this is a problem if someone can go, to another, have a different standard in what is competitive global market in the case of capital requirement requirements. have a situation that is disadvantage to american firms. i'm concerned about the threat to american taxpayers. you can say you have substituted compliance but how are you enforcing the substituted compliance? you hear from some financial institutions, won't say it publicly