." >> tonight, we're going to show the geithner report at 7:00. i'll be anchor at 8:00 p.m. >>> freddie mac reports the mortgage rate this week. new census figures show income fell 3.6% in 2008. that breaks a string of three-year gains. >>> the treasury expecting $50 billion in t.a.r.p. repayments. >>> so you must be all warmed up and ready to go? >> nothing but caruso. >> welcome to "power lunch." sue is on assignment today. stocks are higher for the most part a fifth straight day. proctor and gamble, chevron and cisco have been leading. the steady march to 10,000 is straight ahead. >> tim geithner getting ready to get grilled on the hill on the state of the banks. he's appearing on t.a.r.p. "power lunch" is going to carry it live in the next hour. >>> and president obama make made his pitch to congress and the american public last night. a ten-year plan with a $900 billion price tag, but is congress closer to a deal sm we'll get two sides of that debate. >>> and here's what else is coming up. >>> i'm diana olick in washington. foreclosures held

honest to god, geithner has done a fabulous job. he knows, i've told that to him personally and in forums. i believe in the stress test. you have a lot of negative guests earlier. i think they're dead wrong. i think he saved this system. i did not expect this recognition. i was not in his camp initially. he's done a remarkable job. i have said it to him to his face. i might as well say it on air. >> i think the hatchet is formally buried. he was right, the he you were referring to -- >> it was bernanke. geithner does real good. >> the he was not me, he was funny. >> going back to that period, that was a period where a lot of people said that i was a hot head. there were people at the network who said i was off my medicine. it was the thing that i have done in my career. the only guy i would really care about would be the treasury secretary of the united states and i got it and i'm thrilled. i am. just thrilled. >> everyone chuckles because it was a funny pom last night. you're right. there was a level of seriousness there and i'm gl

geithner right now? >> well, my biggest chrissism is everything he said is the opposite of what happened. what he said is their interventions made it easier to borrow money. loans were rising up through ookt 2008. that whole picture being painted is the opposite of what happened. >> i would disagree with that. if you accept what you just said, mr. murphy, that the loans are increasing to october 2008, the money didn't start going into the system until after 2008. so it did have an impact. your argument kind of contradicts itself. >> do you want to answer that? >> sure, yeah, just very briefly. just to clarify what i'm saying. the official story is businesses were in trouble because they couldn't make loans and pay their employees. that was the whole reason paulson said we need t.a.r.p. if you look at the data as to the volume of business loan, they were rising up to the point the crisis hit and now they're way down, they're down 10%. >> yes, but there's a counterfactual which is if they had not done that

cnbc's exclusive town hall special tonight, banking on geithner. you can submit your video or text question to the treasury secretary direct right now. do it on cnbc.com. e-mail us town hall@cnbc.com. our special event begins at 7:00 p.m. tonight. in these turbulent times, you want a financial partner who promptly gets you... the information you need. at northern trust, our sophisticated technology... puts the most accurate information at your fingertips. so while you may find yourself waiting now and then, it won't be for the numbers you wanted by 7am. ♪ northern trust. wealth management. asset management. asset servicing. if saving money happened as automatically as everything else? at bank of america, it practically does. use the bankamericard power rewards visa credit card and earn rewards like cash back with every purchase. cash you can put into savings. or even use to help pay down your credit card balance. it's one of the many ways we make saving money in tough times a whole lot easier. was it really for fun, or to save money on heat? why? d

where do you wish to take secretary geithner? were to do that right now, larry, is tap my watch and he would know. we are going the talk about the deficit, taxes. we're going to talk about china, t.a.r.p. and taxpayer money and compensation. >> we're going to talk about the anxieties of regular american people over these issues. bailouts. how long, how much involvement is the government going to have in the banking system. taxes and deficits, these are not just financial issues. these are major issues, larry, that strike at the core of who we are. >> and are we also going to acknowledge how far we've come? the s.e.c. today saying they're not going to back any more debt, which was a huge, huge program. the fact they can walk away is a wonderful sign for the credit mark. >> steve and i put a couple of screens together. one was sort of a report card, where we are, t.a.r.p. to steve's point, a lot of them don't know where we are. we've put into the banks $365 billion. the return is 18%. so there are some ways. >> i would submit to yo

>> you know, in the tim geithner town hall yesterday, geithner said at least once, if not more, we must make regulatory changes to ensure and assure this will never happen again, quote/unquote. do you believe this will never happened again? >> no, i think as a society we get so comfortable with euphoria, and we just see bubbles happen. by the way, what's wrong with sort of, you know, boom and bust economies anyway. doesn't boom and bust economy, doesn't that introduce or open the door for people to make money? >> entrepreneurship. >> and the door for people to get in. >> that's a great answer. >> it looks like you guys coordinated this. >> the idea that this will happen never again, that's almost silly. >> health care reform is front and center now, we wonder if the momentum with the markets will lose that. >> god forgive. >> great show, great stuff. >>> we're going to take a quick break. >>> and a list of stock toss watch as we head to afternoon trading, we are first in business worldwide. >>> all right. time for our call to action on stocks you need to watch. let's bring in matt nesto

as geithner said, it's a terrible thing. you want to punish these people but who do you end up punishing? people on main street, the average worker they're the ones who really suffer. on the other hand, they want people to think about the risks they're taking so obama is now saying well, no, you're not going to be too big to fail next time. and as you point out, without a new regulatory framework, that just simply isn't true. there are things that are too big to fail and believe me the wall street institutions know that and will behave accordingly. >> rose: so what do you think has changed in the last year? >> well, some things have changed. again, the leverage is down, although that leverage can go right back up as f they can get through the regulatory maze and they've shown the brilliant ability to do that. >> rose: the leverage is down as a means of self-control or... >> as a means of risk reduction. >> rose: right. in other words it's self-administered risk reduction and leverage restraint rather than somebody structurin

when we return, tim geithner answers your questions. cnbc host ag town hall with treasury secretary last night. we'll bring you the highlights. >>> ceo of morgan stanley calling it quits and clearing the way for his successor. what it means for the financial powerhouse. >>> chief party protesters take their fight to washington. >> you are talking down to the american people, if you think we are that stupid. >> the conservative movement showing it's dislike for the president's health care plan, setting the stage for rallies in washington this weekend. >> guest host and former new york governor george pataki joins dim army to talk about health care, spending and the deficit. the second hour of "squawk box" begins right now. >>> good morning, welcome back to "squawk box" here on cnbc. i'm joe kernen along with becky quick. carl is out today because we didn't realize it was his birthday until the end of the show and he got out of is yesterday, now he's gone today. he says he's 39. that's what everyone says they are, but i think he is. i've

treasury secretary tim think geithner testified on tarp today. joining me now from washington, hampton? >> maria, well, first of all, the treasury secretary told the oversight panel he's made no decision yet on whether or not to ask for an extension of t.a.r.p. and geithner was repeatedly asked just what is it taxpayers have gotten in return for that $780 billion investment in shoring up the financial system. >> you have a financial system that is more stable. credit is more available. people can borrow at much lower cost. and the taxpayer of the united states can see in the investments we made in the banking system returns in terms of actual billions of dollars. >> however, the five-member oversight panel was skeptical, raising questions about using t.a.r.p. money to bail out gm and chrysler. does treasury know the actual value of toxic assets. still on bank balance sheets. with millions of mortgage foreclosures, why have treasury loan modification programs only assisted about 360,000 homeowners. and from oversight panel chair elizabeth warren,

>>> plus, we're monitoring comments from tim geithner. that is all coming up right here on "the call." oh please. you got the presentation? oh yeah right here. let me stow that for you, sir. thank you. you know, just to be safe i used fedex office print online. oh you did? yeah -- they printed and bound 20 copies of the presentation, shipped it to portland, they're gonna be there waiting for us. that's a good idea. yeah. you have a nice flight. thank you. (announcer) print online...you upload your document -- we'll take care of the rest. >>> crude oil showed basically a glut of oil in the market. down $2.88. natural gas spiking to the plus side. >>> stocks are down 10 bucks on the dow jones. >>> during the height of the financial crisis, investors flocked to the safety of u.s. treasury debt. many are call tg top in treasuries. >> the run in treasuries, which i have believed in for a long time, is over. i am calling the top in treasuries. right here, right now at this moment. that's right. it's time to sell, sell, sell your ten-year and 30

bank of america wrote, "not enough, that's for sure." [ laughter ] citigroup said, "geithner sucks." and gmac answered, "taxpayer bailout." [ laughter ] as you'll notice, that last answer doesn't make sense, and that's because gmac apparently answered, "taxpayer bailout" to every one of the 50 questions. although that did turn out to be the right answer to 30 of them. question 41 tripped up a few banks. "given their historic underrepresentation in banking, women should be encouraged to enter the field as long as they are --" obviously, we were looking for, "qualified". morgan stanley wrote, "do-able." [ laughter ] bank of new york mellon said, "immediate family members." and citigroup wrote, "hey, geithner, we've got a job for your mother." [ laughter and applause ] now, i don't know if they're serious about that job or not, but i think my mother would be really pumped. [ light laughter ] finally, what was the most difficult question? apparently, this one from the multiple choice section. "banking executives should be given bonuses for -- a, good performance. b, mediocre performance.

as geithner said, it's a terrible thing. yowant to punish ese people but whdo you end up punishi? people on main street, the average workethey're thenes o really suffer. on the other hand, they want peop to think about the rks they're taking sobama is now saying well, no, youe not going to be too b to failext me. and as you point out, without a new regulato framework, that just simply n't true. there e things that are too big to fl and believe the wall street institutions know that and will behave accordingly. >> rose: so whatdo youhink has changed in theast year? well, some things have changed. again, the leverag is down although that leverage can go right back up f they can get through the regulatory maze and they've shown the brilliant ability to do that. >> rose: the leverageis down as a ans of self-control or... >> as a means of risk reduction. >> rose: right. in other wordst's self-admintered risk reducti and leverage restraint rather than someby strturing it? >> right. >> butdo note, there somethin called value at risk ey call it var, whicis the amount of money you n lose o

those are the three themes that geithner kind of hit. i asked him act the pressure right now to get out of some of these programs he's? >> here's what he said. >> how much concern do you have right now or how much pressure are you under right now to dial back on these programs right now? >> no one is going to be more eager than i am. you're just not going to care about that more than me. we do not want to be in any of these institutions a day longer than nest. look at what we've done. we already have $80 billion of capital coming back into the treasury. >> people were there from all over the country. we covered a lot of ground . >> we did. >> including the lehman weekend, by the way, where he said he spent two weeks at the new york fed, the longest time he didn't see his family. i didn't get the follow-up, was it pizza or chinese food. >> it was serious. yes, in keeping the point, he wanted to dial back. one other thing that stuck out to me was this point on housing. and we asked him directly whether housing prices are going to go down.

bailouts that tim geithner and henry paulson preceding him helped engineer. >> host: and you write with regard to the media, few janitors and newsrooms worked overtime after barack obama won the presidency. it wasn't easy cleaning the drool off the laptops and floors in the offices of journalists covering the greatest transition in world history. and at "the new york times" you say this new york times which exalted that the financially troubled fish wrap of record had sold $2 million worth of obama-themed merchandise. the times has a vested financial interest in propping up the obama administratio >> guest: i certainly think so. and that also helped me fuel, gave me fuel to write this book. you know, i did it in a very concentrated time period, and, you know, while i was digging up all of these stories and documenting conflicts of interest and cronyism, my colleagues in be much of the rest of the mainstream media were slathering over the greatest transition in world

tim geithner, the u.s. treasury secretary said there is a recovery, but it's certainly not time to think about taking anything off the table. >> we have brought the world economy back from the edge of the abyss and you are starting to see the necessary conditions for a recovery, but we don't have recovery yet. we have growth under way, but we don't yet have the conditions for a self-sustaining recovery led by private demand, which is what we're all committed to achieve. >> if there is one issue that is bedevilling them at the moment, it is the question of bankers bonuses. what compensation should bankers get so they keep being innovative and keep pushing forward but they don't take unnecessary risks? the french had wanted caps on salaries. the americans and the british didn't want that. in the end the g-20 has agreed that bonuses should be related to future earnings and income and the success of a company but substantially if companies failed then there could be clawbacks. this was a big development in term

i don't here geithner resolving too big to fail. so in effect, if these banks are too big to fail, yeah, they're trade for their own account. just don't do it at my taxpayer expense. isn't that part of this issue? >> it is, and to be fair to geithner, he did address it in his testimony today with stronger language. >> do you think he'll take out too big to fail? >> i don't think anybody is taking out too big to fail yet. this is an administration and congress still cowed by the financial institutions. every time they say jump the government says how high. it's remark thabl we still haven't embarked on substantive reform. >> all right. what's your solution to the proprietary trading. what should we do, jim? >> we should first split the activities. traditional lending and deposit taking i think has its -- it's an important function of the economy. that should be backed by deposits with a guarantee, with high premiums, by the way. the bigger you are as an institution, the more systemic risk prone you are, the higher your premiums shoul

in an exclusive interview with our sister network, cnn, treasury secretary timothy geithner said that does not mean the excesses of the financial services industry will be tolerated in the future. >> there is no risk that we will -- can afford and will allow conditions in the financial industry to go back to what they were in the peak of the boom. >> but the speed at which they've gone back to there sort of -- >> haven't gone back yet. >> on the way? >> nope. haven't gone back yet. i think it's important it not happen. again, you are going to see very significant reforms in compensation packages across the financial sector. one thing we did today which is very important is reach agreement on a common frame work and commit ourselves to make sure we're going to apply those standards on an even basis across our countries. >> geithner and his colleagues also agreed to continue pursuing economic stimulus policies like low interest rates to help insure a global recovery. >>> a deadly wildfire is no longer threatening communities north of los angeles. crews are finally getting the upper hand

what's coming out of -- >> we didn't have that with geithner. what i can tell you, is i can tell you to tune in on monday, where i did an exclusive sit-down with jean-claude trichet, about what went wrong and what needs to be down now, and a lot of talk about global coordinate. global coordinate is the new normal, and tremendous shay also brought up this constant alertness is the new normal. >> hope the eye gets better, and as they say, you should see the other guy. >> i've got word to do, you know, what can i say? >>> next, a media analyst not jumping up and down about ellen degeneres on "american idol." all of his reasons for the downgrade. >>> and on the next hour we have an exclusive interview with john mack, and what's next for him and the firm he guided through the financial crisis. >>> shares of west higher by another 3% today, two days of gains for "the washington post" after they declared a quarterly dividend, a gain of more than $12. >>> cowan and company this morning downgraded a number of media stocks, saying. joining us first on cnb

i think that's part of what geithner's going to answer. in the time you passed that stimulus program the unemployment rate has risen to 10%. how much longer? along the other side there are going to be those who are saying you know, it's time to peel back the programs, get government out of the market and let us get back to capitalism the american way. i think there's a lot to talk about with the treasury secretary. >> steve, thanks for joining us. >> thanks for having me. >>> the space shuttle "discovery" is scheduled to return to earth tonight. that could change. thunderstorms are in the forecast and that could keep it in orbit for an extra day or two. nasa could direct the shuttle to land in california. "discovery" undocked on tuesday. >> tom is joining us to look outside and see what kind of a day we're going to have. >> the view they have outside the shuttle. look at some of this imagery from space for you this morning, just in this morning. some spectacular images of hurricane fred when the space station and the space shuttle flew ove

>>e see something that is very broad, very draconn. >> reporter: but geithner ys the goal is to keep potentia prlems from slipping through regulatory crack >> if you are in the busess of providing financial cred, and that is your biness and your competing withanks and thrifts that are doing tt, there shoulde a common basic set of standards and protectis. >> reporter: but frank saynot all fis selling financial pructs will be subject to the oversight a new watchdog ency, including car dealers and 1(k) providers. anif you're looking for plain vanilla produc, those won't be quired either. stephanie dhue, "nigly business repor, washington. >> paul: join us tomrow night in pritime as we take part in the "pbspecial report: health care reform". n.b.r. joins other pbsews and public affairs programfor this 90-mute, in-depth look at reforming the nati's 2-1/2 trilli dollar health care system. as part of that our sees "bill of health" h been looking at the challeng employers face in providing care to employee night, jeff yastine reports one program, making grt strides in cutting corporate health

geithner says these reforms make take effect now.he government is expected to report a slight increase in new home as far as august this home sales this mornin . sales dropped 3% last month after rising four straight months. analyst warn it could get worse with the $8,000 first time home buyer credit set to expire soon. chrysler's board of directors is meeting today to review the ceoest five-year plan to revamp the automakers product line. he will ask others to put in overtime to get new models on the road by 2011. ford is wrapping up production in china to meet a demand in a fast-growing market. they are spending half a billion to build the third assembly plan there. tickets to the michael jackson documentary don't go on sale until sunday but fans are lightening up to buy them. dozens of people in downtown los angeles were among the first to lineup. 3,000 tickets for the october 27th show will be available. it is the only early screening before the nationwide release the next day. coming up on good morning, the first swine flu vacci

tim geithner -- does he think the worst is behind us?s the man to halt the financial future in his hands. plus, we have sirena williams here. how does she feel -- we have serena williams here. plus rachael ray. a lot of big names on the show. >>> speaking of serena williams, there are a lot outbursts. >> there is a video on youtube. >> the reforms i am proposing would not apply to those -- i would like to finish, but beyond so has one of the best videos of all time. >> the reforms -- >> more than 700,000 people have already watched this video since last night. it is mocking joe wilson and kanye west. both wilson and west have apologized. probably more to come. >> they are in big order these days. >>> tell us about the traffic. >> it is not very nicely out of gainesville. this is route 29. look closely in the center of your screen. the vehicle went off the roadway and to the pond there. they will be hung up for quite some time. >> you could feel alone and more warmth in the air. highs in the mid 80's this afternoon. the clouds will whirlw

. >>> treasury secretary jim geithner talking about regulatory reform. the perspective with the legendary name in banking. evelyn de rothschild coming up talking about the reform on the financial business. would you like a pony ? yeah. would you like a pony ? yeah ! ( cluck, cluck, cluck ) oh, wowww ! that's fun ! you didn't say i could have a real one. well, you didn't ask. even kids know when it's wrong to hold out on somebody. why don't banks ? we're ally, a new bank that alerts you when your money could be working harder and earning more. it's just the right thing to do. >>> welcome back. we're back live at the clinton global initiative. the annual meeting in new york city today. my next guest has been a major player on the global scene in european banking for more than 40 years. growing his investment bank from a 400 million-pound business to one with more than 5 billion in assets under management. he joins me now to give me his take. and share his thoughts on the financial reform. and international banking standards. and he is sir evelyn de rothsch

geithner says t.a.r.p. helped the economy get back on track. >> today i believe because of comprehensive quality actions put in place since then we are back from the edge of the abyss. >> senior writer and columnist for "business week." i know that there are people that would have -- take a lot of issue with being back from the abyss and whether t.a.r.p. has anything to do with that. but do we have a clear idea where that money went? >> i just want to see republi n republicans go you lied! >> quite honestly it wouldn't have the same impact. >> after last night. let me get that out of the way. look, a year ago we didn't know what was going on. we had our financial regulators step up, of course, and say there's something on the brink and other side. it is ugly and we don't want to face it. they were making it up as they went along. new treasury secretary brought in to answer for a very imperfect project and it is hard do. >> he is answering, too, not only for himself and the actions that he has taken but hank

and you can catch banking on geithner at 7:00 new york time only on cnbc. that is your global stock watch. christine. >> and the bank of england looks like it's set to stay pat on interest rates. we'll talk about quantitative easing and those exit strategies, as well, after the break. >>> and it is 30 minutes past the hour right now. here are the top business stories from around the world. in the united states, president obama calls on congress to stop bickering and playing games and get to work on crafting a health care reform bill. >> here in europe, gm has made its decision on opel. we don't know what it is, but a sealed envelope is on its way to german regulators right now. >> and here in asia, banks are leading the rally. it's a signal it could be the first in the world to raise rates. >> and welcome back to "worldwide exchange." we would like to take a look at the futures here in the united states ahead of the open. they're looking at pretty much a flat open at this point, but remember, things looked similar, maybe to the down side at this time yester

but treasury secretary timothy geithner says someone needs to be in charge. >> if you give that responsibility to a bunch of people, then you can't hold them accountable for performance. >> reporter: there is also disagreement about creating a consumer financial protection agency. republican jeb hensarling says that approach is heavy handed and could extend to retailers who provide credit, like walmart, target, and macy's. >> we see something that is very broad, very draconian. >> reporter: but geithner says the goal is to keep potential problems from slipping through regulatory cracks. >> if you are in the business of providing financial credit, and that is your business and your competing with banks and thrifts that are doing that, there should be a common basic set of standards and protections. >> reporter: but frank says not all firms selling financial products will be subject to the oversight of a new watchdog agency, including car dealers and 401(k) providers. and if you're looking for plain vanilla products, those won't be required either. stephanie dhue, "nightly business report", wash

but treasury secretary timothy geithner today told a congressional oversight panel the recovery still has a long way to go. geithner was testifying about the government's efforts to fix the financial crisis including the tarp or troubled asset relief program. he says the administration has not decided if it will extend the $700 billion financial rescue plan. he says even with the economy's progress, now is the time to repair and rebuild the foundation of financial regulation for future growth. >> susie: late today, one of those tarp recipients morgan stanley announced big changes to its top leadership. john mack is stepping down as c.e.o. but staying on as chairman of the investment banking firm on january 1, mack will hand over the reins to the current co-president james gorman. since 2005, under mack's leadership, shares of morgan stanley have fallen about 34%. but shares at rival goldman sachs, have surged about 70%. >> paul: stocks got off to a slow start on wall street today, but ended with another positive close, it's 5th straight session to the upside. an upbeat forecast from t

geithner told a congressional panel that the government will now end some of the emergency financial programs launched during the financial crisis. now, the treasury secretary says 23 banks have repaid the government in full. it looks like the cash for on clunkers reimbursements are finally accelerating for dealers. $1.22 billion worth have now been approved and the government hopes to have it all paid out by the end of the month. gm says it has 1 million miles to prove its fuel efficient cars work. 5,000 people have been test driving its fuel-celled engines which only kree mitt water vapor for the last two years. one big problem thsh's expensive to produce. and speaking of expensive, thousand about a football game? the average price of an nfl ticket is up 4% to $75. for a family of four to enjoy a day at a game, a cool $413. that's thank it is to the dallas cowboys new stadium which raised their average price of a ticket to $160. michelle? >> i think the tell tale tine will be how full those stadiums really are. >> reporter: absolutely. >> karen, thanks. >>> and just ahead on the mo

treasury secretary tim geithner went to capitol hill on wednesday to talk more about a financial overhaul plan. lawmakers say they want to solve the "too big to fail" problem... by enacting rules to allow large institutions to fail without hurting the overall financial system.. and requiring a taxpayer bailout. the treasury secretary also called for large financial companies... outside the banking system... to be brought under the same rules as banks. "if you allow institutions that are essentially doing what banks do, to compete with banks with no adult supervision, no constraints are free to engage in unfair deceptive practices, then you will recreate again what this country went through" treasury secretary geithner told lawmakers that the obama administration's goal is to protect consumers from being forced to bear the burden of any more failures. $900 billion is the line in the sand for healthcare reform on capitol hill. that's the maximum price tag reform supporters are aiming for in order to get congressional okay. the latest version in the senate, in addition to requiring most amer

secretary geithner said that the other way in the cnbc town hall. i think that's very naive thinking. on the other hand, i want to go back to this firms too big to fail. i hardly appro ll ll lly -- heae thought behind this from president obama. is he talking about the large banks already regulated by the fed which everyone believes are too big to fail, or is he talking about other nonfinancial, nonbank institutions? i don't know. >> part of that -- larry and steve, part of that, i still ask and people can't seem to answer, when we say too big to fail, what is the problem? does the federal government not have the regulatory power to do so? or even if they did, when you've got a citigroup that's got 500 subsidiaries all spread in 171 countries is it impossible to do? >> he said it in his speech. the president said it in his speech. the fdic already has resolution authority.y. now, he's worried about nonbanks. i'm worried about nonbanks. but i'm still worried about banks. would we allow city fwrup to fail? would we allow bank of america to fail? would

congressional oversight panel will hold a hearing on this issue - questioning treasury secretary tim geithner... about the effectiveness of the tarp program. the panel's report calls the us government a quote "tough negotiator" when it came to dealing with failing american car companies.... but at the same time it criticizes the treasury department for its lack of transparency on how it used the tarp money to bailout gm and chrsyler according to the report, the oversight panel said quote american taxpayer, have been "left in the dark" concerning the details of treasury's review process and its methodology and metrics at a time when treasury committed additional tarp funds to these companies." congress and ultimately the american taxpayer have been left in the dark concerning details its methods and metrics at a time when treasury committed additional tarp funds to these companies. the oversight panel also called place its shares of chrysler and gm... in an independent trust.. to avoid any conflict of interest.. or governmentalthe us government owns 10% of chrysler.. and 61% of generaland we a

that's cnbc townhall with secretary timothy geithner's just wrapped upp.e've got exclusive sound for you right now. here's what the secretary there to say. >> today because of the effectiveness of the actions we've taken, it's just the beginning. we've had more than $80 billion come back into the treasury. that money goes to reduce how much we have to borrow and it means that we have more resources available to do the necessary things our country needs. >> all right you saw steve liesman there, erin burnett is also hosting that special townhall event. that's tonight 7:00 p.m. on cnbc. so do not miss that. he is fielding questions from viewers across the country. time now for today's edition of "pops & drops." we want to kick it off with a pop for p&g. >> got a drop here. tim. >> truck engines and school buses. happy first day back to everybody. a crazy day for you, i bet. >> pop here for ual. up 18%. i love school bus by the way. >> i bet you did. you are the type that did. >> that didn't come out very nicely, tim. >> you led me right to it. >> dr. j. >> u

what tim geithner was telling us, time is not now. what he wouldn't tell me is when u.s.jobless numbers would start to turn around. he said change was in the offering, but it's still a way to go. >> everyone wishes they had that in their crystal ball. >> what the president of the united states wants to do to fatten your 401(k) asap. >ñ?=jf a look at the top storie now, more unrest in china. state run media says the city's communist party chief was fire third-degree morning. no reason was given for his dismissal. they blame him for a string of hy hy hypodermic needle attack. >>> the mother of a missing 6-year-old boy. police say they found wilfong and the child hiding in a secret room. the boy was the subject of a hard fought custody dispute. >>> pock wants to make it easier for americans to save for retirement. the federal government is taking steps to allow people to have their federal tax refund sent as savings bonds. unless the individual opts out. we'll get another check at top stories in 20 minutes from now. >>> a nato air strike. what america's top commander there i

y geithner will answer questions at a t n tillha in etmellg. it's called banking on geithner.t airs on cnbc tonight, 7:00 eastern time. that's our broadcast this thursday evening. thank you for beg with us. i'm brian williams, we hope to see you back here tomorrow evening. good night. k here tomorrow night. good night.

tim geithner says it is time to start winding down government programs designed to save the financialtem and lift the economy out of a recession. geithner told a congressional panel that banks will repay another $50 billion over the next 18 months. these extraordinary measures are no longer necessary. although he admits we're not in the clear yet. >> more purpose, people ranlly expected. not enough yet. we'll keep at it. >> president obama will deliver a speech one day one year after lehman brothers collapsed igniting the recession. >>> median household incomes sank to just over $50,000 last year a record drop of 3.6% and almost 40 million people lived in poverty. more than 13% of the population. that was an increase of 2.5 million people from 2007. >>> the sec is promising to fix the problems that allowed bernard madoff to get away with his multibillion dollar fraud for so many years. the head of the agency'sen forcement division said he started the biggest overhaul of his division in 30 years. the internal watchdog may recommend more than 40 changes to improve investigations. >>> ge

geithner said he was fine with their protection agency. the update was to reject the president's on vanilla products . >> pure vanilla. >> you've expressed concerns about there this consumer protection agency. given chairman frank's updated plans and giving the administration's seemingly approval of the chairman's plans, would you accept now the democrat's proposed consumer financial protection agency? or do you still have some problems with it? >> basically what we have is chairman frank's talking points. we still have the white paper from the administration that which basically authorize a government agency to design financial product. and as i said earlier, we -- america got to where we are by giving people choices, by innovation, by new products. it was the abuse of those products where you had a problem where you abused derivatives or you abused sub prime lending or you abused the securitization market or didn't understand it. so i believe what their focusing on is really more government management. you saw that in health care, where

former treasure secretary paulson, fed chief ben bernanke, and tim geithner. professor stiglitz says we still have too big to fail. did they make the right call? >> i think joe stigli tz has got it right. it's shocking that a year after this near economic cal amity that congress has not figured out a way to give the new treasury secretary and the fed the tools so they have a better choice should they be confronted with another lehman today. their view is they had only one choice. they could let them something into bankruptcy or bail them out. there was no way to do the resolution that joe stiglitz suggests. they asked for that authority and don't get it. so one thing it tells sus that both in the market and in congress, there is a kind of giant sigh of relief that the worst of the nightmare is over, and we are starting to see it return to the kind of behavior maybe a little complacency which is quite alarming given the many problems that lurk out there. >> why do we think the nightmare is over, because the markets have been trading better, and there's somethin

in prepared remarks, geithner says the u.s. economy is recovering, but the regulator system is broken and must be fixed. at 2:00 p.m., the same panel many will hear from the fdic, office of thrift supervision and the office of the comptroller. that's out at 10:00 a.m. new york time. meanwhile, on the earnings front, we'll get numbers out today from the likes of general mills, makers of top food brands such as pillsbury, petty crocker. then we'll hear from autozone, bed bath & beyond, cintas and red hat. >>> coming up on "worldwide exchange," 10,000, not a probably at all. how about 11,014? >>> >>> in the u.s., ahead of the fed decision, investeders are playing the hurry up and wait game as futures are relatively flat. >> hello, everyone. i'm louisa bojesen. in europe, the bank of england voted to keep quantitative easing at current levels and the sector sees its first growth in six hoz. >>> and geely automobile spiked up after confirmation that goldman sachs a making a multi million dollar investment. >> here in the u.s., let's

hey, tax cheats, i think tim geithner is looking out for you.sy paying visits to all the major news networks, all but fox, that is, chatting about the latest in health care with people on radio and f.d.r. and much more, it was a string of sunday morning appearances that sounded less like exclusive interviews and more like a broken record infomercial. let's take a watch. >> health care inflation went up 5.5% this past year when inflation was actually negative. 5.5% increase in their premiums. health care premiums went up 5.5%. last year your premiums went up 5.5%. making sure it's deficit neutral now and in the future. it's going to be deficit neutral. it won't add a dime to the deficit now or in the future. 80% of what i'd like to see is actually already in all of the various bills. 80% consensus. 80%. 80%. every president who tried to bring about big changes, i think illicit the most passionate responses. maybe you hear what's people had to say about abraham lincoln or f.d.r. the things said about f.d.r. we saw during f.d.r. we can be civil to

treasury secretary, tim geithner, told a congressional panel that the government will begin winding down programs, designed to save banks and lift the economy out of a recession. but geithner admits the economy still has a long way to go. >> more progress than i think people reasonably expected. not enough yet, though. not enough. and we're going to keep at it. >> president obama will deliver a speech on the financial crisis on wall street monday. exactly one year after lehman brothers collapsed, igniting the crisis. >>> well, it is a mixed picture for stocks on this friday morning. tokyo's nikkei average fell nearly 0.7% today. hong kong's hang seng is higher. in london, the ftse opened higher. wall street, the dow closed yesterday at its highest level since october. the benchmark climbed 80 points, finishing the day at 9627. the nasdaq gained 23 points to close at 2084. >>> americans income plunged, the most on record last year. median household income sank to just over $50,000. a drop of 3.6%, wiping out a decade's worth of gains in just one year. and more americans fell below the pov

tim geithner, i remember tim calling and say, okay, john, give me plan b. you do if this happens? i think that kind of involvement. and clearly, they were not just working with me, they were talking to other banks. i think that kind of leadership and involvement was the critical piece in keeping the meltdown from being much worse than it was.s. >> did you know how bad it was before sort of these calls, and before really getting into it with these guys? >> well, look, when you stock, you come out with record earnings in the third quarter, and your stock drops 30%. you know, it was pretty bad. we came out with that. so you know it's bad. but what they -- to their credit, they really said, we're here and we're going to help you. and i think they did a great job.b. you always criticize, you can always look back, and say, you could have done it a little differently.y. but they were superb. >> how was the t.a.r.p. impacting your business? i know that you returned t.a.r.p. funds in june, $10 billion. tell me the impact of all of this for morgan stanley.y. >> it wa

. >> did you talk to geithner? >> i talked to geithner's staff. did talk to a number of people in congress, talked to somebody who is very influential in the administration today in the white house back in '07 about pending housing crisis. >> is that larry summer? >> it's better i don't say. it wasn't larry summer. >> oh, it wasn't? all right. >> nobody wanted to listen. all i heard was how good everything was and there was no problem in the housing market. the system was sound and what was very clear was that no one got it. but it wasn't lehman per se, it was all of the securities industry, which is extremely overleveraged, you know. and people had no concept of what the shadow banking system had become, how big it was. >> yeah, well, we're in a position to be able to look back now and we're going to talk about the nosera piece, and whether the t.a.r.p. money could have been raised without lehman going under and talk about paulson, and unfortunately he ran goldman, save bear, save aig, and it almost looks -- it was unfortunate that it was such a

treasury secretary tim geithner says it's time to start winding down government programs designed toave the financial system and lifted the economy out of a recession. geithner told a congressional panel banks to repay another $15 million over 18 months and the extraordinary neshers no longer necessary though admits we're not in the clear yet. >> i think people reasonably expected -- not enough yet though and we're going to keep at it. >> reporter: president obama will deliver a speech on the financial crisis on wall street monday exactly a year after lehman brothers collapsed igniting the crisis. >>> the recession helped wipe out a decades' worth of income in a year. median household income sank to just over $50,000 last year, a record drop of 3.6% and almost 40 million people lived in poverty. more than 13% of the population. that was an increase of 2.5 million from 2007. >>> the sec is promising to fix the problems that allowed bernard madoff to get away with his fraud for so many years the head of the agency's enforcement decision told a senate panel he started the biggest overha

diane sawyer has just interviewed treasure secretary timothy geithner about prospects for recovery. >> so for people out there who believe there are two recoveries, one for main street and one fowall street, you say it's true? >> i would say there's no recovery yet. we don't have in place a real recovery. we define recovery, and the president will define recovery as people back to work. people able to get a job again. businesses investing again. and we are not at the point where we can say that yet. >> you can see more of diane's interview with secretary geithner tomorrow on "good morning america." and tomorrow, our series "where things stand," check-ins with people who saw their nest eggs evaporate as stocks collapsed. >>> still ahead on "world news" -- police zero in on the suspect of a murder of a yale student saying this was not a random killing. >>> pat tillman, in his own words. what he wrote about the war that crossed his life. ba bah bob woodruff reports. >>> and from sports to politics, what is it with all of these angry outbursts? mom was diagnosed with moderate alzheimer's.

of the botched minations and then a lot of the barely by the skin of their teeth, obviously tim geithner cos to md. everybod knows about him but there my others that i document. and i think one of the most important and relevant chapters i haven'talked aboutet been if you look at the front pagef "the new york times" you can see how relevant this is, is a chapter i did on the wall street money men. a lot of treasury officialsied to goldman sachs and city who are now rping enormous benefits from the govnment bailouts that t geithner and henry paulson proceedings hymn helped engineer. >> host: with regard to the media you write, janitors in newsrooms across the country worked overtime after barack obama won the presidency. it wasn't easy cleaning the jewel off the laptops a the floors and the offices of journalists covering the greatest transition in world history and at the "new york times" he say that this "new york times," which resulted the financially troubled fishwrap of record had sold $2 million worth of obama themed merchandise. the times has a vested financial interest in propping

obviously tim geithner comes to mie.d everybody knows about him, but there are many, manythers that i document, and i think one of the most imptant and relevant chapters that i hav't taled about yet -- and if you look at the front page of the new york times you can see how relevant this is -- is a chapter i did on the wall street money men. a lot of treasury officials tied to goldman sachs and citi who are now reaping enormous benefits from the government bailouts that tim geithner and henry paulson preceding him helped engineer. >> host: and you write with regard to the media, few janitors and newsrooms worked overtime after barack obama won the presidency. it wasn't easy cleaning the drool off the laptops and floors in the offices of journalists covering the greatest transition in world history. and at "the new york times" you say this new york times which exalted that the financially troubled fish wrap of record had sold $2 million worth of obama-themed merchandise. the times has a vested financial interest in propping up the obama administratio >> guest: i certainly think so. and