to do sell the banks all tripled and quadruple during that period of time based on all between hank paulson congress and wall street and billions of dollars were siphoned out of the economy and put into the pockets of you folks who used most of that money to pass laws to make it easier to commit the same crimes over and over again yes those hurdles you were talking about with hank paulson they were actually involved he met with these bankers from goldman sachs he met with hedge funders who used to be at goldman sachs we told them despite going in front of congress and telling congress. we will not bail out fannie mae and freddie mac. they will not be put into receivership into conservatorship and in fact he was telling them that we're going to do it so you cannot this is our little huddle our little cuddle i won't but that's exactly right and this is a one of the most blatant examples of really this modern crypto engineer financial fascism when you've got the hank paulson's of the revolving door between wall street and washington trading on inside information leading to this amalgam of frau

it's just... no, this is absolute terror. >> narrator: ben bernanke called hank paulson at treasury. > bernanke basically calls up paulson and says, "there's no endgame in sight that looks good. things only look like they're going to get worse. we have to do something more direct, more direct involvement of government in the banking sector." >> narrator: bernanke wanted paulson to help convince congress to initiate a massive bailout of wall street. >> bernanke says to paulson, first of all he says, "you have to go to congress. we can't do this anymore on a case-by-case basis." at that point, paulson bowed to the inevitable. one thing paulson said to me in an interview is, "when the situation changes, you have to be willing to change with the situation." >> narrator: on capitol hill, the democratic speaker of the house nancy pelosi knew nothing about bernanke and paulson's plan for a wall street bailout. >> i called him to say, "mr. secretary, can you be to my office tomorrow morning at 9:00 so that you can brief the house democratic leadership?" and he said, "madam speaker, tomorrow m

faulty it wasn't worth even two cents on the dollar the response of wall street the response of hank paulson the response of barack obama the response of all the bankers around the world was to essentially double down they took all that collateral that was shown to be worthless and they re collateralized it in essence a member of the fed's balance sheet went from less than a trillion to over three trillion and the tarp funds originally seven seven hundred fifty billion under hank paulson's extortion ery congress and all speech is that well over seven trillion officially twenty trillion of officially and this is all because of the attempt to really lend again the same collateral that has been shown to be worthless to begin with well let's look at the state of those people who are on. able to afford their mortgages so this next wave of foreclosure crisis is upon america bankruptcy costs and america's household debt crisis yes max americans are too broke to go broke a new study finds in a recent m.p.e. are working paper they found that illegal in administrative costs inhibit a significant numbe

blatant examples of really this modern crypto engineer financial fascism when you've got the hank paulson's in the revolving door between wall street and washington and trading on inside information leading to this amalgam of fraud that's poisoning the waters of our financial system and causing widespread austerity despair discussed outrage pre-revolution well max you bring up the word fraud and according to joseph devore an attorney at close in o'connor in new york and a former assistant regional director and the s.c.c.s. new york office he said the fine was not in consequential for a settlement that involves technical violations of internal poll season procedure is oh that's the best that's the technical violation that's that's that's we're talking about technically they need to take the money that they make from training us inside information to go and pass laws to eliminate each subsequent sec nicole aspect of the laws that were there to stop this violation of these chinese wall conversations from happening to begin with so when you replace the word law when you hear the word technical

hank paulson in 2008. running for re-election, it's a reflection of the season we're in. rhetoric sharp forever all sides, including those who sit near president obama within his government. >> john harwood, cnbc, portland, oregon. >>> next up, embattled governor scott walker tells us why he thinks he will win his recall election. life and death battle with unions. scott walker, right back. [ male announcer ] you are a business pro. omnipotent of opportunity. you know how to mix business... with business. and you...rent from national. because only national lets you choose any car in the aisle. and go. you can even take a full-size or above. and still pay the mid-size price. i could get used to this. [ male announcer ] yes, you could business pro. yes, you could. go national. go like a pro. >>> wisconsin republican governor scott walker in a life and death struggle. public-sector unions has a major recall election june 5th this could be the second most important election in the country this year. my special

i'm saying that traditionally treasury secretaries like geithner, like hank paulson, even going all the way back to james bake are, okay, you got to deal with democrats. they're going to have a debt ceiling bill come the end of the year. they're going to have a tax -- you can't be a partisan political campaigner, steve moore. this is what bothers me about kim geithner, who i personally like, while i disagree with him. he has gone way too far. >> i thought that statement calling him a political hack, glen hubbard a political hack was really beneath the dignity of the treasury secretary. look, the truth -- the main point here, larry, is that what glen hubbard said was true. you cannot get all the money that you need if you want to balance this budget or come anywhere near balancing the budget by just taxing millionaires and billionairres. everyone knows that. even if you took every penny from every millionaire in this country, you could only fund the government for less than three months. it doesn't work. if you have to raise tacks -- i think it's a very legitimate point to say, look, if

company secluded, talking about how we fix our problems, i remember hearing greenspan greenspan and hank paulsonhe treasury secretary all saying, subprime isn't going to hurt the economy. people are a little nervous about how far we've come and how we're supposed to fix it. >> which brings us back to an earlier segment, where you and diane swonk suggested that this area of cheap money right now, stimulating the economy, is necessary and he's warning that this is going to be the worst thing ever. how do you deed with these things without the benefit of hindsight? >> listen, it's very hard. the fact of the matter is, this kind of situation we're in the moment, where interest rates are near zero, the policy interest rates. we almost never see that. there was japan. it's one example. and we have on our blackboards, we have theoretical models of what the federal reserve should do, but we don't know. a lot depends on expectations, how people are going to think about the future. adjustment processes, the likes of which we've never seen. we don't know. but, nevertheless, my instinct is i would rather er

other words, it wasn't so bad we weren't force good making changes, on the other hand, people like hank paulson and the chairman of the fed and others will argue that in fact that is exactly what they were facing, that's what they understood and that's why they went to congress and said, you know, give us all of this power to do something and we have to have tarp and other things, almost kinds of unimaginable power. >> uh-huh. >> rose: in order to stop what is the collapse of our financial system. >> well, no, that's right, and -- >> rose: i mean -- that is drastic circumstances. and drastic response. >> no, and i am very glad they did that, and that's why we don't have 20 percent unemployment right now. but it did mean in terms of building a political consensus in favor of the really difficult kinds of decisions that will have to be made further down the road, i think if, you know, it may not have pushed us that far. so many the future, i don't know, it may take a clams of the dollar, it may take some really big, you know, event to actually force the political system back into a mode where it

stu, this is tarp, this is the big deal pushed through by president bush and hank paulson after all the big banks came in and said the entire economy is going to fail if you don't bail us out. we need the taxpayer money, otherwise the entire country will go down in flames economically so we did it. we gave it to them. the vast majority of it has been paid back however, however, now we get this report that, 119 billion still in arrears. put it in perspective. >> okay. this is one of the reasons why the economy is weak. 351 small banks, community-style banks, they owe $15 billion of unpaid bailout, bank bailout money. now they don't have the money to repay it. so they're not making any loans. they're not profitable. so they're not repaying these loans and they're not making loans to businesses. that's one of the reasons why the economy is so weak. and actually the condition of these 351 banks is getting worse. the number of late payments or nonpayments on these bailout loans has continually risen every quarter since 2009. so you face the dilemma, what are you going to do here? if you forg

c-span: your secretary hank paulson, former treasury secretary. this is only a minute or so.un this and we'll wrap it up. ♪ >> this morning we made come a hearing on the turmoil of recent reactions regarding government-sponsored entities, investment banks and other financial institutions. ♪ >> this is not just a cosmetic issue in a feel-good issue. ♪ >> the taxpayer already is going to suffer the consequences if things don't work the way they showed work. ♪ c-span: the video you must have gone in there with an idea. you weren't a minimum of vision when he shot a look at. >> actually, no. it didn't work that way. it was shot before the idea happening. that means that he might want to say how we ended up at them is that. cast doubt that senator be hancock contract. written in 1982 when there was actually a bad recession. family heard about it from a former turnout for bear stearns in their planned attack in the bear stearns trading room as things are going so. everybody's broke is like a modern song. so it's a very eloquent actually if you listen to the words. it's a really goo