unequivocal we based on the gretchen morgenson report and others like colby of bank of course warren buffet's nonvolatile that who knows what charlie munger is habit is a guy must be a horse after time up until july two thousand and seven when money was. circulating through the banking system from a class a drug dealing those c.d.o. backed by a code via bank j.p. morgan bank of america all these other banks that went polling month to the fed prior to their c.e.o.'s may have been a rated following that all the downgrades happened now we first reported on this in two thousand and eight when antonia maria coast then head of the united nations office on drugs and crime said he had evidence to suggest the proceeds from drugs and crime were the only liquid investment capital available to banks on the brink of collapse he said quote interbank loans were funded by money that originated from the drugs trade there were signs that some banks were rescued that way but again there's another aspect to why do analysts give these studios a rating of aaa why does moody's s. and p. fitch give what is

on to the next headline the bank run we knew so little about this is from the new york times gretchen morgenson and she looked at the federal reserve freedom of information documents that were released only last week this is based on the bloomberg news efforts to force the fed to release information that who they were loaning money to at the fed's discount window and it turns out according to gretchen morgenson and august two thousand and seven as world financial markets were seizing up domestic and foreign banks began lining up for cash from the federal reserve bank of new york that august twentieth commerce bank of germany borrow three hundred fifty million at the fed discount window two days later citi group j.p. morgan chase bank of america and who are cobia each received five hundred million dollars now banks only go to the discount window when they're in serious crisis and they're facing a liquidity crunch thus began gretchen morgenson says the bank run that set off the financial crisis of two thousand and eight so in retrospect it was said are mexican drug gangs the ending of the money l

she co-wrote the piece today with louise story and i'm pleased to have gretchen morgenson back on this program. welcome. >> thank you, charlie. >> rose: so tell me how this originated. i mean, for all of us who have spent a considerable time since 2008 interviewing people about that crisis, whatever you would ask the question, there was never a great answer or a great analysis. go ahead. >> you know what you hear is these are complicated cases, they're paper cases, there's no victim, quote/unquote. it's not like a murder case where you have a body. and so there are... those kinds of legal rationale that you hear. but it was so unsatisfying, charlie, because here we have whatever, name your number, hundreds of billions, a trillion dollars in lossess and nobody's fault? that's hard to believe. so people are relentlessly asking this question and with justice and with the right to do so. it's what people want to know. it's just... it seems morally wrong. >> rose: is it largely a matter of a difference between criminal behavior and unethical behavior? >> well, it's hard to believe that you