former treasury secretary hank paulson is here in a sunday morning exclusive along with former congressman barney frank and cnbc's maria bartiromo. i'm david gregory. all that adead on this edition of "meet the press." for sunday, september 15th. >> announcer: from nbc news in washington, the word's longest running television program, this is "meet the press." >>> and good sunday morning, secretary of state john kerry is on the ground in israel right now where he's meeting with prime minister benjamin netanyahu whose reaction to the deal is cautious but supportive. we'll get a response from senator john mccain in a moment. but first andrea mitchell just back from her travels with the secretary of state with the very latest on this deal. andrea, it amounts to this, assad and the russians committing to say exactly all the chemical weapons that he's got. >> right. >> and to get rid of them by the middle of next year. why shouldn't that be universally cheered? >> it is a very big deal, sweeping deal but there are a lot of ifs. is it going to work? the russians say they're speaking for assad. a

i went in thinking one thing and came out on the other end. >> rose: hank paulson and josh tyrangiel, the editor of bloomberg business week and the film maker who made "hank: five years from the brink." next. >> we begin tonight with hank paulson. five years ago this month the world was gripped by the worst financial crisis since the great depression. the u.s. economy was brought to its knees, starting with the failure of investment bank lehman brothers on september 15, 2008. soon, several of wall street's most venerated institutions were teetering on the edge of insolvency. the government's response was unpresidented in its size and scope. the troubled asset relief program known as tarp injected capital directed into the banks and brought a pause to the crisis. as treasury secretary hank paul son was at the senter of this and other decisions to stabilize the american economy. he looks back on his actions in the new documentary "hank: five years from the brink." here's a look at the trailer. >> by anyone's measure, we are living in extraordinary times. >> prices are at an all-time hig

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got five regulators all competing with each other falling all over themselves dysfunction. >> hank paulson "on the brink," the movie is "hank five years from the brink" on netflix starting on monday. and we'll see you in chicago in three weeks. >> i look forward to that. >> awesome. >> i look forward to it. thank you. >> thank you. >>> if that wasn't enough, that interview, a big show still to come. with a tweet, twitter starts on the road to the next big ipo with over 200 million users and some 400 million tweets a day. i'm not going to go 400 million and one, i'm not. i'm not going to do it. although i might tweet paulson picks summers. that's a lot of eyeballs -- >> you can tweet whatever you want. >> does hank have a twitter account? >> that's a lot for potential -- we're going to take a closer look at the twitter ipo and what it would mean for investors. >>> up next, he's the largest stressed debt investor in the world. he was in the running to be the u.s. ambassador to france, marc lasry will join us for the remainder of the show. >>> welcome back, everybody, we've been watching the

hank paulson to congress with a flame thrower and threatening to burn the place down in the us they extended wall street trillions in new untraceable credit and last week ben bernanke you promised to extend their over jeff by eighty five billion per month so what's wrong with a little bit of trickle down flame throwing stacy max i don't see the problem here why was this taste don't tase me bro yeah why was he jay z. just doing what the other guys are doing the problem is on wall street they have a saying go big or stay home you should have gone into the bank with a flame thrower asking for an overdraft extension he should have gone into the bank asking to have the bank given to him as the president for being such a nice guy and having a grenade aflame throw in a few other little niceties as a bag of tricks yeah well it's more it's very similar to the situation with hank paulson going to congress because remember at first when he went in with a flame thrower was rejected and then what happened they threatened to burn the they they threatened to commit suicide with the whole banking system and

hank paulson to congress with a flame thrower and threatening to burn the place down in the us they extended wall street trillions in new untraceable credit and last week ben bernanke you promised to extend their over jeff by eighty five billion per month so what's wrong with a little bit of trickle down flame throwing stacy. i don't see the problem here why was this tape don't tase me bro yeah why was he j z just doing what the other guys are doing the problem is on wall street they have a saying go big or stay home you should have gone into the bank with a flame thrower asking for an overdraft extension he should have gone into the bank asking to have the bank given to him as a present for being such a nice guy and having a good day to flame throw in a few other little niceties in his bag of tricks yeah well it's more very similar to the situation with hank paulson going to congress because remember at first when he went in with a flame thrower was rejected and then what happened they threatened to burn the they they threatened to commit suicide with the whole banking system and this guy a

hank paulson said yes, and we're going to debate that proposition. >>> is washington poised for a government shutdown. the white house and congressional members are locked in a game of chicken. with 17 days possible, is a deal possible before the time runs out? all that and more coming up on "the kudlow report." >>> good evening. i'm larry kudlow. this is the "the kudlow report." first up, economists have been telling us for months that a second half economic rebound is coming. and for months, i have completely disagreed. so i think today's tepid retail sales report and a big drop in consumer confidence suggests i may have gotten this slowdown forecast right. one time in a row. let's talk. here now is steve forbes. media chairman and editor-in-chief. the chief u.s. economist for deutsche bank and providing perspective on the numbers and anything else she wants to talk about is mary efner. 0.2%. the worst in four months. core retail sales looked lousy. what's going on here? >> two things. at the high level in luxury that continues to be robust. those are not impacted by it. in fact, they can

other little niceties as a bag of tricks yeah well it's more very similar to the situation with hank paulson going to congress because remember at first when he went in with a flame thrower was rejected and then what happened they threatened to burn the home they threatened to commit suicide with the whole banking system and this guy also did that he threatened to after the flame thrower didn't work he threatened to ignite himself so the article is man who had been refused over draft extension is tasered by armed police after bursting into a bank with a homemade flame thrower now the interesting thing is that of course the u.k. where they're a little bit more stiff upper lip about things jackie clover who runs the clover tearooms opposite the bank said quote we heard that he got upset as he had been turned down for an overdraft extension maybe he was someone in business who had got to the end of this tether right well i mean the point is a well is well made here that what the crisis was all about two thousand and eight was not about a sudden change in business prospects it wasn't a once in a

i am from the wall street journal and i'm honored to be sitting with barney frank and hank paulson, of hank, the new documentary. two rock stars of the financial crisis. welcome to the council on foreign relations meeting. this is part of the history makers series. this features individuals and made a critical contribution at junctures in u.s. policy. the crisis qualifies. the series is made possible by the continued generosity of hbo. let me start with a question that is on the minds of many people in the public. when you look at the entire picture and a number of prosecutions, the sec charges, executive compensation, the public statements of contrition, or lack thereof, do you think the people who were responsible for these decisions that led to this crisis have been held accountable? >> wow. i know that is a question on the public's mind. i will say something that may not resonate with a lot of public. if you except my explanation of the crisis, the excesses have been building for years, that a giant credit bubble burst, that a definition of a bubble is something that the market nev

hank paulson guaranteed money market funds at a time when 30 million americans with money market funds were panicking. billion in three days had gone out of the non-government market funds. re-hundred billion dollars. that was almost equal to the deposits of wells fargo or wachovia.via -- i do not think they can do that under dodd-frank. i do not think burning he did and i do not think hank paulson could do what he did. , the only is a panic thing that will stop it is when somebody who has the ability and am going to doi whatever it takes. bernanke and paulson and congress said to the american public. if bernanke said, i will do , he did it.takes called it the change stabilization fund of the treasury. it was enacted in 1934. strong characters who had the ability to print money. they said, we will do whatever it takes and the president was behind them. that is the way to in the real panic. congress does not like to give anybody that kind of authority. i tip my hat to them. will be another panic. where it comes from, who knows? when that time comes, the will thewill be, people who cause

hank paulson to congress with a flame thrower and threatening to burn the place down in the us they extended wall street trillions in new untraceable credit and last week ben bernanke you promised to extend their over jeff by eighty five billion per month so what's wrong with a little bit of trickle down flame throwing stacy max i don't see the problem here why was this tape don't tase me bro yeah why was he jay z. just doing what the other guys are doing the problem is on wall street they have a saying go big or stay home you should have gone into the bank with a flame thrower asking for an overdraft extension you should have gone into the bank asking to have the bank given to him as a present for being such a nice guy and having a grenade a plan throw in a few other little niceties as a bag of tricks yeah well it's more very similar to the situation with hank paulson going to congress because remember at first when he went in with a flame thrower was rejected and then what happened they threatened to burn the they they threatened to commit suicide with the whole banking system and this guy

economy through eyes of then treasury secretary hank paulson. >> the latest financial giants in distress. >> we're watching -- 15 years -- none of us understood the extent of what we were dealing with. bear stearns, lehman brothers, merrill lynch, holy moly how could this be happening. >> if the secretary of the treasury didn't know what was going on, for more hank five years from the brink i'm joined by josh terrengel, deirdre of bloomberg news. why did you want to make a document that focused on secretary paulson and what was his motivation of working with you? >> i had two motivations, the first like any good magazine maker you really want to break through the noise and you want to reach some signal so for us looking at the five year anniversary of this crisis there was one player at the very middle of it and that was hank paulson. i had met the secretary a few times and in talking to people who knew him i was told refeetedly, his story, the real story of what he was going through intellectually, emotionally, had never been told. after meeting with hank and talking with him, it was ve

hank paulson has said that he tried to save it and could not.hey do not have legal authority to do that. a line that was, this is national free-market day. what ever to, bipartisanship and where did it go? it was a live in well in september 2008. you had a republican president come to a democratic congress and say that we had serious problems. we were cozy den. -- then. hate friday afternoon at 5:00 because the phone would ring and hank paulson would tell me about a new disaster after the markets were closed. we're talking about lehman brothers and i knew he was doing everything possible to keep it going. husband, barclays is going to buy lehman brothers. then, the fsa pulled the plug. he tried to do that and my comments was to mike conservative friends who said they should go bankrupt. mimi was about to fall and the consequences were so terrible that a consensus came that we could not have that happen again. i said it was national free- market day. barneyother thing which andwed me to tell the story it came out with the reissue of "on the brink

hank paulson will verify this. we talked that night, and hank, who had done a great job, was in despair. the day the vote was going on, there was a gathering in the well of the house of the bipartisan leadership ready to go into the usual drill of trying to change members vote. i will take credit for going to steny hoyer and others if they do not do this, this is too serious, don't win this by these kind of tactics. we will pay a big price. i called hank that night and he called me and i said -- don't orry about it. sometimes the kid gets really mad, you have to let him run away, go a few blocks away, get hungry and cold and scared and then he will come home again. >> what is the alternative? >> when the market drops 700 points -- but i was at the airport the day after the vote, and a couple of people from north carolina came up and said that was terrible. i said, how did your representative to vote? he voted no. they got right on the phone. he voted yes this time. the people who are opposed, you hear from them mor

i think you know when you look at -- they mentioned hank paulson. what about ben bernanke, the federal reserve chairman sat in front of congress and called the subprime problem contained. i believe that this administration has shown over and over and over again what it will do when it gets mad at somebody, the lengths it will go to to target its enemies. >> wow, bob, where do you stand on this? what do you think? could it be possible that -- >> well, i think, first of all, fraud's a very specific word. >> and hard to prove. >> and i'm not a lawyer. i think for s&p, what has to systemically say, look, guys, we're all here to make money, find ways to cheat, come up with the aaa. so on and down the line. people were not thinking about the consequences of the products they were putting together. they were way too complex. way too dependent. and what you ultimately had was changes in the way some of the accounting had to be performed on the securities. so it was a whole bunch of things. but i think the point was everyone was making a big mistake by what

. >> what do you think about his performance during the financial crisis, hank paulson? show yesterday. i didn't find him terribly compelling there was a three guests, maria bartiromo and barney frank. neither seemed to make much sense. hank paulson suggested one of the problems with the bailout, he didn't explain it well to the public. the public never accepted that. he was one of the worst explainers in the world as you pointed out. >> there is no question about it. it was hard to explain because he coin explain some of the things that he did. there was no explanation that made any sense. i mean why would, why would you, lend $85 billion at 14.5% and take 79.5% of the equity. in addition to that -- >> cover all the, cover all -- he would say we covered creditors because the goldman sachs was on the verge of bankruptcy and morgan stanley. they went down the tubes as well. >> how do you know what the value of the cdos were? there was no price discovery, charlie. in other words if you want to sell a stock you look on an exchange and see what the price of the stock is. the

. >> does hank paulson know larry summers?he said he was a friend. >> he was definitely -- >> i don't know what the take away there was. >> to me, larry summers is the guy for the job. but i do think it's going to bring into the market some sense of policy risk. not that i think he's going to do something hisk risky. >> it is time now for the final grade for the week. >> i agree with jeffries in the upgrade today. intel going higher. >> tim? >> profits of eem, reload at 37. >> steven? >> i think you should be trimming your positions right now. but a position i'm comfortable with is eem. >> you know what i find interesting, a self-driving car is perfect for you. >> it is. it really is. because i don't drive. >> she can't drive. >> it's not that i can't, it's that i choose not to. anyway -- >> do you have a license? >> i do have a driver's license. >> a real one? >> yes, it's a real one. >> you didn't get it in a cracker jack box. >> we don't talk about the tplm, comes out, great quarter. >> i love having a free checked bag with

hank paulson to congress with a flame thrower and threatening to burn the place down in the us they extended wall street trillions in new untraceable credit and last week ben bernanke you promised to extend their over jeff by eighty five billion for a month so what's wrong with a little bit of trickle down flame throwing stacy. i don't see the problem here why was this tape don't tase me bro yes.

the view that it's important that there be a historical record for those who come after me. >> hank paulsonss week documentary, hank, five years from the brink. the former secretary is featured on the new issue. here is the editor. the frank. thank you very much for joining me. fascinating documentary to have now. is this a man living with regrets. he feels they misunderstood almost everything that was done during the frantic period and getting t.a.r.p. through. he feels that is his responsibility and didn't communicate why it was important to them and why he wasn't acting on behalf of the bank. it was clear that that was our way in. you go to the treasury secretary saying we would like to make a documentary about you. where do i sit down? he needed persuasion and i think our way in, you need to explain this. let's sit down and get it right. >> was there a rewind button as far as a lot of people think it could have been averted. it was a personal grudge that he had. what happens when you lock back? >> it was very, very clear that he had nothing to do with personal grudges. he explains it in

we had hank paulson former goldman sachs c.e.o. saying that there would be revolution in the streets if you guys didn't pass tarp so deja fraud what's sad about the alice are darling quote that the world is two hours away from massive meltdown that what's sad about that quote is what really. we should understand is that we were two hours away from having some accountability in the banking sector early two hours away from having honest accounting for two hours away from getting rid of the bad actors and the massive fraud in wall street the city of london we're only two hours away from having an economy get rid of all these crooks and then regenerate itself which would have started we would be right now in an honest recovery with real jobs and real g.d.p. growth instead of this hyper levered comair of an economy that's a blow once again exactly because we are stuck in a loop which is why we keep on having days off fraud we're stuck in the loop it keeps on happening over and over and had we had the societal collapse he threatened it w

we had hank paulson former goldman sachs c.e.o. saying that there would be revolution in the streets if you guys didn't pass tarp so deja fraud what's sad about the alice are darling quote that the world is two hours away from massive meltdown but what's sad about that quote is what really we . should understand is that we were two hours away from having some accountability in the banking sector early two zero hours away from having honest accounting for two hours away from getting rid of the bad actors in the massive fraud in wall street the city of london with only two hours away from having an economy get rid of all these crooks and then regenerate itself which would have started we would be right now in an honest recovery with real jobs and real g.d.p. growth instead of this hyper levered comair of an economy that's set to blow once again exactly because we are stuck in a loop which is why we keep on having days off fraud we're stuck in the loop it keeps on happening over and over and had we had the societal collapse he threate

we had hank paulson on a friday. we were talking about this during the commercial break.of people look at what he did during the crisis and say he's an american hero. do you agree with that? >> well, look, if you're beginning your mark of september of 2008 when the thing had cratered and we're looking over the brink. when ben bernanke says to barney and i in the night of september, it's going to melt down here and abroad. then, yes, did a good job of working through that, getting the t.a.r.p. done, setting things up. but, you know, this problem didn't -- we're talking about five years ago. this problem began, you could identify the problems emerging in 2005, 2006. jim bundting and jack reed had hearings in 1996. almost all of 2008, even with bear stearns on st. patrick's day, we did virtually nothing. you couldn't get the attention of the bush administration on these matters. so, i love hank, he did a good job in a critical moment. but this problem could have been a lot less than it became had we acted earlier to step in. and i'll go to my grave believing that. >> you're

hank paulson said yes, and we're going to debate that proposition. >>> is washington poised for a government

treasury secretary hank paulson took on the question earlier this week. >> the answer, i'm afraid, is yes. as long as there are financial markets and humans who experience bouts of panic there will be financial crisis. >>> it has not prevented speculative trading. jp morgan chase lost $2 billion on bad trade. sheila bayer, said that kind of problem is evident the u.s. banking system needs fixes. >> we did fail in some restructuring of these institutions. a lot of speculation in trading but not enough in lending. >> fallout is affecting main street an even more. it's harder for small business and for consumers to get loans. >> people don't take out loans. they don't take risk because they're not sure what will happen next. >> despite the shockwaves that the bankruptcy of lehman brothers across the system, no one was ever prosecuted. >> i spoke with david katz, the former securities and exchange commissioner. i asked if banks are still too big to fail. >> the top ten financial institutions have 3 trillion-dollar more in assets than before the financial crisis. there is no question that

finance secretary hank paulson took on the question last week. >> the answer is yes. as long as there are financial markets in humans who periodically experience bouts of conscience, there have been crises. >> just last year j.p. morgan chase lost $20 billion on bad trades. that kind of problem is evidence the u.s. banking system still needs fixing. >> we played a mistakes in 2009 by bailing out these financial institutions. so i think we have somewhat of a bloated sector, a lot of speculation i think in securities and derivatives trading, not enough traditional lending. >> fallout is affecting main street perhaps even more. it's harder for small businesses and consumers to get loans and bair thinks it's an uncertainty about banks. no one from the firm was ever prosecuted. diane estabrook al jazeera. >> ross is back with sports. this boxing match is getting a lot of buzz. >> $75 on pay purview, we found. floyd mayweather will be fighting camello al easy, just made weight at 152 pounds. that's a concern because the kid usually fights at a heavier weight. mayweather fig

and then treasure secretary hank paulson defended the decision not to bail out lehman brothers.irm. it came months after the fed provided credit so that j.p. morgan chase could buy the failing bear stearns. paulison said no one wanted to buy meme lan. >> the situation in march, in the situation in the facts around bear stearns were very, very different to the situation we're looking at here in september. and i never once considered that it was appropriate to put taxpayer money on the line in resolving lehman brothers. >> his remarks did not calm investors or the system. within days and even hours of that news, other financial giants teetered on the brink. bank of america purchased wall street investment house merrill lynch. j.p. morgan chase bought washington mutual. wells fargo bought wachovia. and the government propped up aig. the world's largest insurer because it's financial best theirly paralyzed the banking system. paulson, former c.e.o. of goldman sachs ultimately did get congress to pass the controversial tarp or troubled assets relief program. under the measure, the go

treasury secretary hank paulson took on the question earlier this week. >> the answer, i'm afraid, yes. as long as there have been financial markets and humans who experience bouts of panics there has been financial crisis. >> reporter: last year jp morgan chase lost $2 billion on bad trade. that kind of problem is evidence the u.s. banking system still needs fixing. >> we made a mistake in 2009 without doing fundamentally restructuring an in down sizinge institutions. we still have a bloated sector and not enough traditional lending. >> reporter: fallout is affecting main street even more. it's harder for small businesses and consumers to get loans, and there is a lingering distrust of banks. >> they don't create capital. they don't take out loans because they are not sure of what happens next. >> no one from the firm was ever prosecuted. diane esterbrook, al jazeera. >> david cotts joins us now to tell us where we are five years later david, good to talk to you. is it true that the five largest banks currently hold more than half of the total banking assets in the united states? the

hank paulson, who you've worked very closely with, says his biggest regret was he was unable to convince the american people that was was done were not from wall street, they were from main street. what is your biggest regret as reflect on the five year anniversary, and th you believee fed, congress and the president, have put the necessary measures in place to prevent another deep financial crisis? bernanke: on regrets as frank sinatra says, i have many. the biggest regret i have is we didn't forestall the crisis. once the crisis got going, it was extremely hard to prevent. i think we did what we could given the powers that be had, i would agree with hank that we were motivated entirely by the interest of the broader public that our goal was to stabilize the financial system so that it would not bring the economy down. so that it would not create massive unemployment and economic hardship that was even more, would have been even more severe by many times than what we actually saw. so i agree with him on that. since you gave me the opportunity, i would mention of course all the money tha