c-span: what is in hank paulson, secretary of the treasury had been head of goldman sachs? and i tim geithner, secretary of treasury had been head of the new york fed? what he saw that name and if you're authentic and income is that good or bad as the public? >> guest: this could in some bad things. the good thing when you're in the midst of a financial crisis, and there is some benefit to having folks who come from these wall street institutions. obviously goldman sachs is a wall street institution. the new york fed is regulator that fits in new york city deals on a daily basis of the large commercial bank. commercial bank sat on tim geithner sport, jamie diamond at jpmorgan chase. c-span: if i worked at the new york fed come up with a check from the federal government? >> guest: is an interesting question if it isn't clear about. preservice part of of the federal government. the new york fed is this quasi-public institution that served in litigation when they were trying to be back disclosure requirements under the freedom of information act. obviously they're involved in

how can we expect a government with hank paulson out of goldman sachs -- how can we get the average person a fair shake? >> that is an example -- a lot of them took short positions and derivatives with speculative debt on how mortgages perform. they would make a profit -- and other hedge funds opposed the market and they wanted the housing market to go bad. they would make money if it happened. in one, the volker rule will prevent that kind of activity. >> why has it taken two years? >> i don't know. the pace of regulatory reform is not that good. >> why do you think that happened? >> it is -- dodd frank led it to authorities to get it done and they are responsible for some of the problems. the lobbying against the regulatory process has been severe and intense. it is not getting better. >> how can they stand up to the lobbyists? >> there is what some people call cognitive capture -- to look at the world through the industry they regulate and they are too worried about those -- you should always listen about what the impact of your rule will be. but when you approach the issue the way the

bail us out or this entire global economy is going to go under and that's the thing we start with hank paulson during the two thousand and eight we saw with the banks here in the u.k. with the royal bank of scotland barclays are lawyers threatening the government banks in america threatening the government and just down the fiscal cliff and the debt ceiling banks threatening the government give us money or requests the system . it all kind of comes from long term capital management i think what your thoughts are you think you're quite right i mean the too big to fail concept started then i think that was the you know the d.n.a. got into the system about point he was slightly different from what happened two thousand and eight because this joint hedge fund officially was going to be dismantled what happened what greenspan did by cutting rates as you must because in the early to save long term capital management because it was wound down its founders lost their money and that was the end of our business but it was really to save the counter parties or the long term careful management which was t

economy and that's their game plan now the words when hank paulson threatened to destroy america unless they gave three quarters of a trillion dollars or every time they try to get some kind of law deregulated by threatening financial catastrophe jamie diamond is thread dollar collapse all right stay here and stay right there we're coming back to you in the second half on this new year's day special. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize everything you thought you knew you don't know i'm tom hartman welcome to the big picture. we speak your language. for music programs and documentaries some spanish matters to you breaking news i want to turn to bang goes to these stories. are you here. to ensure that all teach spanish. visit. america has a welcome back to the kaiser report you know the biggest story of the past five or six years has been j.p. morgan's massive make it so it was short position i asked over expert ned nadler leyland of asset management whether or

economy and that's their game plan now the words when hank paulson threatened to destroy america unless they gave him three quarters of a trillion dollars or every time they try to get some kind of law deregulated by threatening financial catastrophe jamie diamond is thread dollar collapse all right stay here and stay right there we're coming back to you in the second half on this new year's day special. speak your language you. will use programs and documentaries in arabic in school here on. reporting from the world talks about fifty yards peace interviews intriguing stories for you. in troy arabic to find out more visit our big t.v. show it's called. download the official application to yourself choose your language stream quality and enjoy your favorite. if you're away from your television just doesn't do so now with your mobile device so you can watch. jonty anytime anywhere. he survived the atrocities. to make a final decision. has changed his life and to world around him. by giving up. hope. and love to so many children. nikolai the american worker on t.v. . i'm nice cars are welc

economy and that's their game plan in other words when hank paulson threatened to destroy america unless they gave three quarters of a trillion dollars or every time they try to get some kind of law deregulated by threatening financial catastrophe jamie diamond is thread dollar collapse all right stay here and stay right there we're coming back to you in the second half on this new year's day special. soon which bright. moon a song from feinstein pressure. starts on t.v. don't come. on . i'm asked as a welcome back to the kaiser report you know the biggest story of the past five or six years has been j.p. morgan's massive make it so short position i asked for expert ned nader leyland of cheviots asset management whether or not this year could be the year that sees this manipulation scandal see some friction just as here we are twenty thirteen time for your prediction how will the l.b. and a sober market manipulation story pan out in twenty thirteen. well my so make a bold prediction and contrary to all the evidence i'm going to say that i think the story will break next year i think we'r

economy and that's their game plan now the words when hank paulson threatened to destroy america unless they gave three quarters of a trillion dollars or every time they try to get some kind of law deregulated by threatening financial catastrophe jamie diamond is thread dollar collapse all right stay here and stay right there we're coming back to you in the second half on this new year's day special. divine power in action to date. i am and she says we need peace we are under the control of those governing you so who are at the service of a space mafia i found that on that day the magnetic field of the sun will be. to create to support the story. after the second coming and it will be a beautiful place it will receive its glory it will be a renewed world and it will be a beautiful place. the best. will stop to strike him in the ocean. it's good business for us it's kind of like being a doctor you know if there's a disaster businesses. better unfortunately. choose your language. surely we can we know if you're going to say sell some. treatments to the consensus. choose the opinions that

economy and that's their game plan now the words when hank paulson threatened to destroy america unless they gave three quarters of a trillion dollars or every time they try to get some kind a law deregulated by threatening financial catastrophe jamie diamond is thread dollar collapse all right stay here and stay right there we're coming back to you in the second half on this new year's day special. edition will be soon which brightened the food movement from funds to oppression so . who's queenstown totty don't. something. lies beneath. thousands of meters of police broke. the law. that is a lose for many. but dangerous even to those who keep it to distance. mission. critical three. three. three. three. two three. old freeboard video for your media project free media. i'm asked as a welcome back to the kaiser report you know the biggest story of the past five or six years has been j.p. morgan's massive make it so a short position i asked ned nader leyland of asset management whether or not this year could be the year that sees this manipulation scandal see some fricken justice here we

economy and that's their game plan now the words when hank paulson threatened to destroy america unless they gave three quarters of a trillion dollars or every time they try to get some kind of law deregulated by threatening financial catastrophe jamie diamond is thread dollar collapse all right stay here and stay right there we're coming back to you in the second half on this new year's day special. secret lover a tour to mccurry was able to build the world's most sophisticated robot which will unfortunately doesn't give a dollar amount anything to submission to teach creation why it should care about humans in the world this is why you should care want your only on the dot com. he survived war atrocities. to make a final decision. has changed his life and the world around him. by giving up. hope. and love to so many children. nikolai the miracle worker on tape. download the official ati application to your cell phone choose your language stream quality and enjoy your favorites from alzheimer's if you're away from your television or it just doesn't matter now with your mobile device yo

. >> you talk about tim geithner and hank paulson and all the people who come and go from wall street. what is going on here? >> it is perspective. narrow focus on wall-street and viewing the needs of the country through wall street. it is just not so. their interests are different from ours. big bonuses are not in the interest of the country. >> and they put a restriction on the outfits that were bailed out. they had to have multiple bailouts at citi and they had restrictions on them but -- the treasury repaid the tarp and bailout money to pay bonuses again. to some extent -- the healthy ones -- they have the desire to camoflage those with problems like citi group but you go to wells fargo or jp morgan chase -- they weren't in any kind of -- they had access to liquidity and we say, we want you to have the tarp money, they won't take it. >> another sentence, 'i have seen many instances wehrhere stf were too differential to -- how many want to work in these institutions? >> it is an accepted practice of working for a regulatory agency for several years than an organization you regulate

you treated me differently than you treated hank paulson and others, god man saturates. >> neil: doesn't it -- goldman saturates. goldman sachs. >> and it's too big to not help. >> and same to greenberg. the bailout should have never happened in the first place and if his advice would have been followed, aig would have gone through bankruptcy and good parts would have survived and the bad parts would have sold off. now, we have a mess that is going to end up costing the taxpayers more than the bailout is going to cost you. i think george bush in order to save the free market i have to destroy the free market. >> neil: that is what we did, during george bush's tenure. i got a lot of grief on this show and you and i talked. jack kemp about the lunacy of starting these talks up and this big bank bailouts. this is back from 2008. >> the government needs to step in the treasury to make sure there is floor under falling real estate values particularly residential. >> why does the government need to do that. leter rip. >> neil: why didn't we let it rip? >> because the government decided it coul

tea party types didn't like t.a.r.p., but the great quasi apock lippic moment in 2008 was when hank paulson says if this does not pass, there's no economy monday. do you think with romney or obama as president, if another moment occurs, the tea party types listen to people like that and still send the economy down the drain? >> well, there's a moment that i memorialize in the book during the debt ceiling stand justify that i think is really, you know, i los -- illustrative of the plank of the republican party, an it was the house leadership, you know, boehner, cantor, ect., i'm answering in a general way, but there are -- they were rather cd and believed the debt ceiling had to be raised believing risking the full faith and credit of the united states was a dangerous proposition and default would be a terrible thing for the country. because they see their fellow members did not believe that to be the case, they brought in a treasury under secretary named jake powell who served in the george hw bush administration to explain what would happen if when august 2nd came and went and the debt cei

of secretary, everyone was struck by the fact that he didn't seem to quite have the stature of hank paulsonw four years later i think he feels vindicated. his signature achievement was to stop the financial crisis. >> my observation of him has been how surprisingly enamored he became with washington and the political process. on one hand he talks about what a mess it is. on the other hand, seemed to enjoy getting to know individual senators and doing a lot of this leg work on the president's behalf. >> i'm not a journalist but what i observe is he's actually a very effective political player. he tries to understand the other person's point of view. in my interview he talked about the budget debate and he parsed it down into there's a short-run budget debate in the next ten years that's not so short, the medium term and the long run. and he parsed out the differences and i think his ability to do that and to understand where each person stands made him a very effective player. i think it was no coincidence that john boehner wanted him to be -- >> in the room. >> in the room. >> if there was

. >> and when tim geithner was picked, having worked closely with hank paulson at the federal reserve bank during the crisis, people were comforted by that. they said, well, maybe he's not so liberal. well, as it happened, larry summers was an advocate of more stimulus than others in the administration. so you can't necessarily read that much. events are going to dictate, i think, whether this president adapts his own view necessary a way that people interpret it as going to the center or not. but for the moment, he knows where he is and where he wants to go. and he's picking somebody who can help them achieve his agenda. >> you know, the thing you point out, that this is a situation where business leaders probably wanted one of their own, they may argue they want somebody in there looking for pro growth policies. but maybe more important is somebody who was very familiar with the financial markets. that was somebody that tim geithner created a lot of confidence because he knew the markets so well, knew the underworkings. and when there were big issues, you knew there was somebody who

hank paulson, former treasury secretary says there shouldn't be one. president obama thinks there shouldn't be one. do you think there should be a debt ceiling? >> listen, i prefer having a ceiling. i prefer having that sense of discipline. >> right. >> i like everybody else in this country, including the politicians have been frustrated by our inability to grab this issue by the throat and start doing something about it for the future of our competitiveness. now, we had a start with the deficit reduction efforts. >> right. >> prior to that i thought the bowles simpson commission was a powerful response to what we could do about our own deficit. >> why do you think the president ignored that? i mean his own commission, he ignored it. why do you think he did that? >> i can't speak for the president charlie. >> why do you think it got no traction then? >> this is politics. this requires two parties -- you had the republican party had to concede something on the take side. the democrats had to concede something on the spending side. the way i saw it with

>> the one thing hank paulson was absolutely right about is the ripple effects of this would have been tremendous. people don't understand this particularly well, but aig had insured the mortgage wrist in the world. when i did that, it collected billions of dollars in premiums. it paid hundreds of millions to salaries and bonuses to the people that work there. but the effect of aig going down would have been disastrous. it was the right thing to bail them out. and it's the right thing for aig to say thank you very much. >> william cohan, good to have you with us tonight. that's "the ed show." i'm ed schultz. "the rachel maddow show" starts right now. >> good evening. a spectacular show right now. >> thanks. >> you have them every night. i'm just trying to get there. >> you have very kind. thanks to you at home for joining us this hour. this is eric shinseki. eric shinseki went to west point. he graduated june 1965. before that year was out, by december of that same year, second lieutenant eric shinseki was on the ground in vietnam. he was on a one-year combat tour, but he did not make

were rather historic at the time and that tim geithner and the president by extension, along with hank paulsonent george bush before him, deserve credit for bringing calm to the markets at that moment. i was struck, sue, by one thing. first of all, president obama really emphasizing the budget issues when it came to jack lew. not some of the other wisconsin ones that are thought to be his weakness. the other one was the sense that, it'll be a quiet treasury over there. even if geithner was not a very loud and boisterous one, it'll be a quiet -- >> kenny. >> i was struck by how long and heart felt the applause were. geithner came in at the very apex of the crisis there. and what with a t was like there in january of 2009. >> kenny, you made the point that the floor down here, wall street needs to see him confirmed by the end of january so he can address -- >> absolutely. the talk is that he will be there for the next fight that's coming, right? so i think that the street, people down here, wall street, will give jack lew a pass until such time he is confirmed. but then to see how he really does

so he really doesn't have the credibility on wall street that maybe even geithner and hank paulson hadonnections on wall street. they had insight there he really doesn't have it. that will be a big hurdle for him to have synergy with wall street and get corporations on his side. it does concern me. i share the concerns of jonathan and james and the senator. melissa: she makes a great point. what is the downside of that. people listening say, wow, he doesn't have wall street connections. maybe he is not insider. maybe we will not baby wall street the way geithner did. maybe it is a plus he doesn't have wall street connections? >> i prefer him to be wall street insider instead after washington insider exactly what he has been. he is essentially a career bureaucrat. he has been there for decades and decades the big claim to fame, one written about he was part of that 198 deal to supposedly save social security. you know social security has a $20 trillion unfunded deficit. it has huge multitrillion dollar deficit. it is not exactly a claim to fame. what i fear moving forward he will basica

financial service committee of 2007 in the bush administration and i worked very closely with hank paulsonary of the treasury. we worked on putting fannie mae and freddie mac to stop the lawsuits. george bush went to harry reid and nancy pelosi in december of 2007. he said the economy is slipping, i need a stimulus and they worked with him to give him the kind he can sign. then 2008, the terrible crisis and it was a very partisan thing in which the bush administration got more support from democrats and republicans in the final vote. then comes the election of barack obama and mitch mcconnell's announcement that his number one agenda item is to defeat president obama. we have, i think, a productive 2009 and 2010 and then in 2010, a group gets elected in the house, in particular, we don't believe in governance. not totally pessimistic. the way to go we've seen in the last three major issues in the house, a split within the republican party where main stream conservatives of the bob dole variety have aligned with the majority of democrats. they've been opposed by a majority of republicans in

a treasury secretary, hank paulson, who put his head in his hands and was overwhelmed with what he actually called the collapse -- the potential collapse of capitalism. that's what we faced. we have short memories here. because our life is so filled with fast-moving events every day, some of them wonderful, some of them awful, some of them lifting up our hearts, some of them breaking our hearts, so we don't remember the things that happened a couple of years ago. when president obama took over after a very lifeless economy, as my friend, senator brown said, where only a million jobs have been created, maybe not even that many in the private sector, over an eight-year period, and suddenly a collapse brought on by the greed of wall street and manipulation of securities dealing with housing, a crash, a nightmare. and we were losing 800,000 jobs, we were bleeding 800,000 jobs a month. and then the auto industry on its knees. now, believe me, in the past, i haven't been the biggest fan of the auto industry, from california, because i felt that they weren't producing the cleanest cars they could,

i think that's actually one of -- >> hank paulson and tim geithner in the darkest moments when peopleught they couldn't get money out of the atm, put terms on it. president obama's pick for defense secretary got a ringing endorsement today. the problem was, it came from the islamic republic of iran. >>> plus, the president cleans out his cabinet and all of his new picks are white men. no offense to white men who are sitting on this set but some people are upset about that.on st for your stuffy nose. thanks. that's the cold truth! i've got two tickets to thanparadise!l set? pack your bags, we'll leave tonight. uhh, it's next month, actually... eddie continues singing: to tickets to... paradiiiiiise! no four. remember? whoooa whooaa whooo! you know ronny, folks who save hundreds of dollars by switching to geico sure are happy. and how happy are they jimmy? happier than eddie money running a travel agency. get happy. get geico. fifteen minutes could save you fifteen percent or more. officemax can help you drive supply costs... down... ...and down. just use your maxperks card and get a ca

the selection of john snow and hank paulson and now jack lew, there are two things that all of them have? common. the one is they're all close to the president in terms of ideology and thoughts. the second thing is they essentially compound on what the president ran on. if you look in the case of baker, reagan, reagan was one of the key people in charge of the budget office in 1981, and then reagan makes him his treasury secretary. same thing with bob rubin. the issue that the president ptsdz to tackle are domestic debt issues. he wants to get -- he wants to get this. in his opinion there's no better person sitting in treasury to tackle that than jack lew. >> i do want to point out one thing as we talk about diversity, and we had jen saki on the show yesterday. she said while the president has a very diverse -- >> a woman who works for president obama. >> and she made the point that we have a pipeline problem. if you actually look at sort of where women are at -- we did a little researching as we are want to do on this television program -- 50% -- 50.8% of the country is female, but they

and as i took that oath of of office on december 15, 2008 in secretary hank paulson's office, a lot was going through my mind, as you can imagine. i thought i was going to be doing a law enforcement job. i knew we had the oversight function, but i thought this was going to be -- this was my experience, this was my background, cops and robbers, and that's what i thought the job was going to be. and that's where i thought my focus would be. i kind of believed, somewhat naively, that treasury sort of had it covered on the banks, and i would help them protect it from fraud. i soon realized that was wrong, that i was going to have to change my focus significantly as i realized as i started interacting with treasury officials just how captured they seemed to be by the magic of wall street, how deferential they were to the largest banks' interest over that of main street. the other people were supposed to be helped by this bailout. what i suggested the first couple of days, that, hey, let's do something crazy like actually have the banks make them tell us what they're doing with our hundreds o

i think that's actually one of -- >> hank paulson and tim geithner in the darkest moments when people thought they couldn't get money out of the atm, put terms on it. president obama's pick for defense secretary got a ringing endorsement today. the problem was, it came from the islamic republic of iran. >>> plus, the president cleans out his cabinet and all of his new picks are white men. no offense to white men who are sitting on this set but some people are upset about that. >>> first it was fire, the next day it was leaking fuel. what is going on with boeing's dream liner? citracal slow release continuously releases calcium plus d with efficient absorption in one daily dose. citracal slow release. ♪ [ male announcer ] this is karen and jeremiah. they don't know it yet, but they're gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission.

i think that's actually one of -- >> hank paulson and tim geithner in the darkest moments when peoplehought they couldn't get money out of the atm, put terms on it. president obama's pick for defense secretary got a ringing endorsement today. the problem was, it came from the islamic republic of iran. >>> plus, the president cleans out his cabinet and all of his new picks are white men. no offense to white men who are sitting on this set but some people are upset about that. >>> first it was fire, the next day it was leaking fuel. what is going on with boeing's dream liner? push-ups or sprints? what's wrong with fetch? or chase? let's do this larry! ooh, i got it, i got it! (narrator) the calorie-smart nutrition in beneful healthy weight... includes grains and real chicken, because a healthy dog is a playful dog. beneful healthy weight. find us on facebook to help put more play in your day. officemax can help you drive supply costs... down... ...and down. just use your maxperks card and get a case of x-9 paper for only 1-cent after maxperks rewards. find thousands of big deals now...

you saw hank paulson come in at treasury, bob gates at defense.proved to be important in their roles. that doesn't need you need quite the same changeover. one lien is that the predecessors were considered failures. tim geithner's tenure has been controversial but i think broadly speaking what he did to write the financial system will be considered a tremendous achievement in the annals of economic policy-making. but again, they are in something of a rut, i think, in their economic policy-making at this point, and particularly in their approach to dealing with republicans. a lot of that, i'd say frankly the bulk of that blame falls on the house republicans and john boehner. but it's nevertheless a case that they just put somebody into the treasury department who they intend to have lead a lot of their budget battles who john boehner at this point essentially refuses to work with. during the 2011 negotiations, they said boehner and the republicans said we just don't want to deal with lew anymore. we don't feel we can get him to say yes to us. now,

hank paulson says he hates the debt limit.former treasury secretary, the guy who said i need $700 billion right now? no wonder he hates it. ashley: don't we all. tracy: he has given a rare interview. we have details on that next. ashley: first a look at today's winners and losers. the dow just above the water mark. take a look. we'll be right back. ♪ chances are you've become, a better driver over the years. and one company thinks your auto insurance rates should get better too. presenting the aarp auto insurance program from the hartford. i'm a good driver. have been for years. it just makes sense that better, more experienced drivers should get better rates. it's been a while since i've checked. i'd hate to think i'm paying more than i should. call the number on your screen today and you could join the thousands of people who have switched and saved significantly. plus, you could enjoy benefits like disappearing deductible, which lowers your deductible every year you drive accident free. i haven't had an accident in years an

some would grew it already -- some would argue it already is, as we saw in that hbo -- hank paulson lookedsn't playing himself. unfortunately we're out of time, but this discussion could go on and on. >> the american people want us to deal with this issue, and this has been the time and place to do it. we ought to do it in the next few weeks. >>gretchen: senator, great to see you. more "fox & friends" more "fox & friends" straight ahead.t jack's cereal. [ jack ] what's for breakfast? um... try the number one! yeah, this is pretty good. [ male announcer ] over a third of a day's fiber. fiber one. [ coughs ] [ baby crying ] ♪ [ male announcer ] robitussin® liquid formula soothes your throat on contact and the active ingredient relieves your cough. robitussin®. don't suffer the coughequences™. nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapler and my... this thing. i save money by using fedex ground and buy my own supplies. that's a great idea. i'm going to go... we got clients in today. [ male announcer ] save on ground shi