then later you -- geithner. then later you had, geithner or, and fed chairman bernanke, then whoever was at the new york fed at that time. they getting a lot of credit for saving the economic system. do you agree with that? that what they did in an emergency situation, they made hard choices that had to be made. do you agree with that assessment of what those people did in those two administrations? , when there clear was only so much time and so much money to go around, they saved the largest financial institutions. focus on american families and small businesses. >> so not the banks amid the loans. we're talking about what happened with a financial disaster that affected everything. what should they have done? >> they should have put that money into the banks with strings attached. let me put it this way. whenever a big corporation gets into financial trouble outside this crisis, when big financial corporation gets into trouble and new money comes along to be put in, whether the company ends up going through c

[laughter] you know, and geithner and summers. i mean, they knew what was happening. and if they didn't can know what was happening, they should have known what was happening. >> do you think the leaders of those financial institutions knew what was happening? >> yeah, of course. >> they did? >> they did not know there were $400 billion of bogus paper out there? of course they did. they knew what the leverage was, of course they did. >> so they didn't do anything about it because -- >> i don't know why. the banks were taken care of. you know, they invented something called too big to fail. too big to fail means that before glass-steagall commercial banks and investment banks were separate by law. glass-steagall i allowed them to get together. now, commercial banks were created to give mortgages mostly to people in america and made america the most independent country in the world in terms of home ownership. and they served a purpose. investment bankers were able to take risk on their own. glass-steigel put them together. now, they knew what they were doing, and the in

but then you had first under the bush administration administration, paulson, bernanke, geithner. then later you had under the obama administration, a different treasury secretary, geithner, same fed chairman, bernanke, and i forgot who was teplitzky new york fed at the time. they get a lot of credit for saving the economic system. do you agree with that? that what they did in the emergency situation, they made hard choices that had to be made. my question, do you agree with that assessment of what those people did in those two mrpgzs? >> as i make clear, when there was only so much time and so much money to go around, they saved the largest financial institutions. they did not-- they did not focus on american families and small businesses. >> rose: so we're now talking about not the banks who made the loans. we're now talking about what happened when we had a financial disaster that affected everything. >> yup. >> rose: what should they have done? >> they have put that money into the banks with strings, strings attached. let me put it this way-- whenever a big corporation gets in

timothy geithner will not be the only person on stage for the upcoming book to work -- tour.cessor and his will be among those appearing with timothy geithner as he promotes his book. this will mark the first time he has made public appearances with ben bernanke or john paulson since he left the treasury in 2013. phelps felt -- michael coming out of retirement at the 2016 rio olympics. the 22 time olympic medalist will compete for the first time since the 2000 12 london games in a meet in arizona at the end of the month. stearns 29 in june. he captured 18 gold and 22 overall at the last three summer games. that is look at top stories in the news at this hour. time for a commodities purport. seen a lot of volatility in oil, particularly over the weekend. trade to a nymex five-week high. again, closing right above $104 mark. the unrest justifies the level one veteran trader says. meanwhile, the spread between west texas and brent widens to a five dollar spread which narrowed to just over three dollars friday. meanwhile, summerlike conditions in the city over the weekend. natura

. >> her clashes with treasury secretary tim geithner, the fund's administrator became unlikely youtube>> there have been changes in manage. >> where the government -- >> absolutely. >> tied tarp funds? >> as i said in the context of the intervention taken in -- just -- >> i'm asking about the financial ins takez those are. >> i'm asking about the banks. >> it's no secret that secretary geithner and i saw the world very differently. i believed his focus was far too much on the big financial institutions and not on the families. to say in effect, here, take the money, please. rather than saying, we will say our financial institutions but believe me there are going to be strings. but none of that was on the table. it was all about how to rebuild the largest financial institutions and to get them back to profitability as soon as possible. i just thought that was wrong. >> you're willing to push people, how would you describe your style? >> intense? >> intense? >> yeah. the things we're talking about are important. so i care a lot about it. i get worked up. >> welcome back to the program, e

. >> at the same time, those who a new, tim geithner has book called "stress test," and the argumentill be he saved the financial system and they had to do that because if it had collapsed, we would have all gone down. --ecially the people >> there is a really good argument for that. the people on the receiving end of that get a strange message. it is like somebody badly parented, don't pay attention to what i'm doing, do what i am saying. fail, unlesst you you're too big to fail. >> so get bigger. notion, if you have a million dollars in the bank, they are your partner, $100, you are a debtor. >> yes. and so from that, it is not that surprising if the banks -- on the one hand, if the message is subject toe not ordinary forces, you will not fail and we will orchestrate will not happen one way or another. it is not surprising they turn around and view markets has something to be fiddled with. >> how long did it take you to write this book? part, theed the first gathering of the material, i started maybe september of 2012. gathering stuff for it. i did not start writing it until septem

. >> people, tim geithner was supposed to be a fairly middle of the road treasury secretary until heets brainwashed by president obama. i mean really what these people do when they get into these jobs, they follow order from the guy at the top. i don't think you can be, you can be albert einstein and can not fix obamacare. i will say one other thing, you notice when he was talking did you hear the sirens going on? there were sirens. melissa: what did you think coming to arrest everybody? >> i don't know. something weird. melissa: it a lot like corporate america. at time when everything was going wrong, everybody was saying why does she still have a job. he says, i'm standing behind her, i'm standing behinder her. the countdown clock is on until she announces her departure. why aren't we more honest, fire at time. i will stand behind her and she is gone. >> that is how the game is played at corporations. it is very silly game-- >> is it her fault? melissa: steve, give you last word. go ahead you were trying to get in there. >> is it her fault? yes, hell yes, it was her fault. she was

. >> you write about an experience you had at facebook where you had tim geithner with several womenembers and everybody graernathering around table and the women migrated to sitting behind the table and it struck me that my generation behind yours would have probably had the women serving the food to the men. >> that's exactly right. >> even sitting at the table. they've come a little bit but haven't come all the way to seeing themselves as players and equals. >> you can hear that progress of the one of the people i met with a teacher at the naval academy and he and his wife graduated from here 27 years ago together. and he talked about how in the u.s. navy, 27 years ago she didn't have the same opportunities he had. and that he sees the women graduating today getting the same or different opportunities certainly than his wife did as that march towards equality continues. so there's no doubt about it. we've made progress. and i think there's no doubt about it, we have a lot more to go, which is why voices like admiral miller's running the naval academy, not just women leaning in but

you're right, i can see paulson and geithner on the list too. >> if you're in charge of the fed duringably good shape, i would say belong on the list. >> while you're here, a quick question on coke. it's been in the newspapers i figured i should ask. the question i had in all of this is actually about your son howard. because he's on the board. have you had conversations with him and is he an a point gee of berkshire hathaway or separate? >> no. he is there because coke asked him to go on the board. i'm sure the fact that i had been on the board and we own a lot of stock may have entered into that. he is there to remember coca-cola shareholders not berk shire hathaway. i talked to kemp multiple times. i talked to my son howard briefly. muktar is the director. joe was wrong on that. there were multiple conversations. >> we'll talk about this on monday for sure. >> we want to congratulate you on the list. we will see you this weekend. andrew and i will both be in omaha. we'll see you there. >> and you will see me in another 25 years on your next birthday. >> thanks for the book on creigh

kerry geithner is with bloomberg news and following the fbi story . when you look at this story, talk about a new fbi investigation or is this an ongoing investigation? >> looks like an ongoing investigation. like you said earlier, the flash and the the announcement that the attorney general new york state had opened an investigation into the same area. a lot of movement going on in the space. a lot of people trying to figure out what is going on here and if there is illegal activity happening. >> you have seen these crimes are for. do you look at to this as a two-year, five-year, 10 year investigation? where do something like this lead to? hard to say how long it will go for but we should look at the insider-trading convictions and the string of insider-trading investigation some prosecutors have had on this matter. those go back to 2007 and possibly before. these cases have built on each other, and you get more and more as you go along. i think this fits nicely into that area of the investigation. insiderwe talk about trading, we think about knowled

bloomberg's terry geithner have been looking into the story.his is one of the hottest this morning. just last week, we were discussing, why would blake masters leiby firm? she joined in 1991, the first managing director ever. there seven been years. why not give her another big job in the bank? >> i cannot answer why she is leaving other than her official statement, but the thing we she is today is that under investigation by prosecutors here in manhattan. there is a series of events that led us to her resignation that happened with the commodity unit of j.p. morgan. it is important to keep in mind that this is a complex practice that led up to where we are now, and that includes last year, when jpmorgan, her unit, was fined $410 million by federal regulatory agencies for allegedly rigging the power markets in california and the midwest, and around that same time, they announced that they were selling that unit. the investigation goes into some other things that were happening behind the scenes with the sale of the unit that she ran so well for

obviously, possibly the greatest impact we have seen was in 2008 and 2009 where tim geithner talked abouthe world set on a cliff edge. we saw that have a huge impact. he is probably wrong in the sense that he implies that this quantitative easing in monetary stimulus is not having an effect. yes, maybe there are diminishing returns but i think it is areing much of what we seeing. in the u.k. contest, tight fiscal policy and lose monetary policy and probably lose monetary holocene is driving everything. loose monetary policy is driving everything. --say is not doing anything i think it's a only show in town. >> stay with me because we will speak about housing. danny blanchflower, bloomberg contributing editor. coming up, i will interview million our warren buffett today about calls for him to intervene on how coca-cola pays its employees. we will tell you how this got started. oca-cola has their annual shareholders meeting later today. run as the did their world's largest nonunion airline and we will have that story in a moment. ♪ >> you are watching "in the loop," on bloomberg television,

geithner's all over the country who are developing a new, -- we have those all over the country who are developing a new model. some are scientists. some of them are churches doing a better job of foster care or educating the poor. all of them get up in the morning and say i want to improve things. it is not working the way it used to. institutionalized prison guards of the past. idea.ve a brand-new lobbyistd've hired a to pass a bill that would limit railroads to the speed of a horse on the grounds that anything else was unfair competition. jeanne shaheen world. this is the hillary clinton world. it secretary clinton decided she was going to run, she will be the leading example of a prison guard of the past rapidly protecting every element of her system. that is what they build up. you come in with a brand-new idea. think about this. current model that we have accepted at every level of government of the civil service bureaucratic system was invented about the same time as a manual typewriter. around 1870 or 1880. people will tell you they will reform the pentagon or the department of

. >> yes, timothy geithner. >> these things do happen. >> it goes around. >>> coming up next -- i'm notthe heavyweight match-up we've all been waiting for. jesse ventura says ceos should make just as much money or the same amount of money as physical laborers. good thing jesse is off the grid and kevin o'leary is on remote because the sparks are going to fly when we come back. [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. >>> all right. kevin o'leary. i want to get thoughts on this story about irs employees that got paid bonuses even though they didn't pay their taxes. >> well first of all, i'm very happy that we have a mechanism in place that can discover this and shine the light on it. that's the first thing i'm happy about. but every time we go through april, every year, we start to focus on the irs and taxation

i remember when secretary geithner was before the budget howittee and i asked him, relevant are the long-term projections? you're talking about 34 years with the way the world is changing. are they relevant? he said anything past five years is not meaningful. we do the best we can. paul ryan does the best he can. but we are talking about budgets as statements of values and priorities. he lays his out and lays out a different set of priorities. the short term about $40 billion out of surface transportation spending at a time we have critical needs. we embellish that by $300 million over the next three years. american people are on our side. that is the debate we have to have and have had. the problem is we never come to a resolution in this congress as to what the proper number should be. numbers should be the easiest thing to do. philosophy is hard to compromise. we did it in the farm bill with food stamps. republicans want to cut $40 billion over six years and we did not want to cut any. in ended up eating $8 billion. that was a compromise. we need to be willing to do that more. discretionar