my exclusive interview with treasury secretary hank paulson. but first susan li is standing by. >> the senate judiciary committee voted to recommend brett kavanaugh for the supreme court. they agreed to delay the vote for one week while the fbi investigates the allegations against brett kavanaugh. >> this country is being ripped apart and we have to make sure we do due diligence. i think we can have a short pause and make sure that the fbi can investigate. reporter: more trouble for tesla founder elon musk. he's being sued by the sec. tesla stock has fallen over 20% this square. the fed raising short-term interest rates for the third time this year. the fed raising rates from 2 to 2.25%. they are expected to raise rates three times in 2019. markets also finishing mixed for the month. trade and regulatory concerns. facebook is seeing its worst month in six years. the shaky september didn't stop the record bull market as markets finished in the green for the quarter. maria: the federal reserve raised interest rates this past week by a farther per

the third story comes out of the interview with hank paulson. he said, we are in better shape than we were but he is concerned whether we will have tools to deal with the next crisis. hank: today when you look at it, we are seeing a situation where are better capitalized, we have much better regulatory oversight. i think there are fewer gaps. we have a better set of authorities. there is less what i would call dry tender. risk.is less all these things are unpredictable of having a major financial crisis. on the one hand, there are important new authorities, what some things we relied heavily on have been taken away. i wish we had a few more protections. david: flynn, what hank was talking about they relied on, yet a special fund at the treasury for stabilizing the d y dollar and he referred to that. there have been ramifications of use of those vices. he is concerned they will not be available next time. flynn: even if they were available, he imagined if we did have a crisis, congress and the president came together last time. after what we saw,

monopolies and he has an interesting take on what this op ed that timothy geithner ben bernanke and hank paulson wrote and he says the basic lie of geithner paulson bernanke is the argument that now regulators have no bailout authority leave aside the various misleading elements here yes they do they just have to ask congress which is the most democratic branch of government they are arguing against democracy they're angry the people have some form of check on their right to do whatever they want during a crisis they are couching this in terms of the need to stem panics they are pretending an attack on democracy is a technical point it is not so what they were arguing they were using the pages of the new york times op ed to argue that you know we have too much democracy we shouldn't allow the people to have any say in the unlimited bail out of banks in the next crisis and if they were bernanke. and there's a third clown there bernanke you've got him possum and paulson hank paulson who who warned all his friends i might add went before congress and shutdown and it's crashed the market the term th

ok what bernanke day and who's the third clown there bernanke you've got him possum and paulson hank paulson who who warned all his friends i call way back to where i had went before congress and said bannon it's crashed the market the term this is an admission of guilt this op ed piece and in the new york op ed piece they're saying the crisis we're guilty we had no constraint and we printed seventeen trillion dollars of bogus claims that are on back we just printed them out of thin air there's nothing to back them to bail out our friends that's an admission of guilt if they're not prosecuted now after admitting the crime if i go to the court i say that's just my nation guess what i murdered somebody and the court says go away we don't we don't murder is not a crime anymore so geithner and paulson and bernanke you they think of all the hardship think of the poverty think of it opiate crisis because of people lost their homes people dying in the streets queuing up. those guys put the needle in their arm and they killed those people and they admitted it and the new york times i know there's no

crisis i want to look at op ed that the new york times published on behalf of ben bernanke the hank paulson and timothy geithner remember when lehman brothers collapsed timothy geithner was the head of the new york fed which is really the federal reserve bank of america ben bernanke he was the head of the federal reserve bank and hank paulson was the treasury secretary and they let lehman collapse and then came to the rescue of all their friends well they wrote an op ed about basically concern trolling that there could be another financial crisis and first pointing out how much they as you know federal reserve bank chairmen and people involved in that helped rescue the system back then they said although we in other financial regulators did not foresee the crisis the kaiser port foresaw the crisis i might add we moved aggressively to stop acting in its traditional role as lender of last resort the federal reserve provided massive quantities of short term loans to financial institutions facing runs while cutting interest rates nearly to zero the treasury department stopped iran on money mark

i talked to hank paulson under george w.ush yesterday and this is the warning he had about the possible long-term consequences of the policy. >> i think we do not pay enough attention to the dangerous long-term impact. companies and countries want to do business with the united states because we have reliable and stable economic policies. is, is china going to start looking for new markets for which they will buy soybeans? are they going to be concerned they need to protect themselves if there is another tariff war and they need suppliers? david: congressman, our american endangering themselves by the trade policies of this administration and will they get this thing resolved in time? ,> china started the trade war we know that, we are in a trade war because of china and past administrations have not done anything about it and i applaud the president. i leave in free trade, fair trade, reciprocal trade and the president needs to use the tariffs to strike a deal. i am not a long-term person on making sure we are using these t

>> this would allow hank paulson to act as a king. >> my levels are ok? nk: i can hear you, i can see you. >> mr. paulson has asked that he be above the law. >> he has no idea how bad it is out there. no idea! >> if we have to have somebody at the helm, i think hank paulson is it. >> the world economy would have collapsed. >> right place, right time. no one else could have done it. >> bailout wall street, bailout main street. >> we are the last days of this country surviving. hank: i had a happy childhood. ♪ brother two years younger, sister, five years younger, early years spent on a farm. my father was a tough taskmaster. a lot of chores. high standards. if i was shoveling maneuver in the barn, the stall had to be clean. i would do a good job on my chores, we would settle the horses and ride. he would drive us crazy with to do lists. i picked that up. i make lists. he would leave it on the bureau for us to read when we woke up. he always worried about the septic tank. we took short showers. three minute showers, if i stated too long, i would get a glass

david: maybe i will take some to hank paulson.e s&p futures pretty much going nowhere after choppy trade yesterday after the fed's announcement here at european stocks a little bit weaker. but it is all about italian banks, off almost by 3%. italian bonds getting hit. by five basis points but off the highs of the session. questions about the italian budget and if it will meet the deadline by midnight tonight. euro-dollar reflecting some of that pessimism even though there was a surprise pop in saxony. the curve here, 22 basis points. crude up almost a full one percentage point. it is said that $100 actually might happen. now let's get an update for what is making headlines outside the business world. emma: the showdown on capitol hill with a lifetime appointment to the supreme court at stake. a woman accusing brett kavanaugh of sexually assaulting her decades ago will be testifying. ashamed say she was too and afraid to come forward for palm now. kavanaugh -- before now. testify -- brett kavanaugh will also testify. and budget all

the federal reserve bank of america ben bernanke he was the head of the federal reserve bank and hank paulson was the treasury secretary and they let lehman collapse and then came to the rescue of all their friends well they wrote an op ed about basically concern trolling that there could be another financial crisis and first pointing out how much they as you know federal reserve.

maria: my thanks to hank paulson there.acher said she was fired for giving zeros to students who did not turn in their work, next. and then trading action, the trading acting for entrepreneurship, details on ryan reynolds new partnership with richard branson. back in a moment. ♪ ♪ this is loma linda, a place with one of the highest life expectancies in the country. you see so many people walking around here in their hundreds. so how do you stay financially well for all those extra years? well, you have to start planning as early as possible. we all need to plan, for 18 years or more, of retirement. i don't have a whole lot saved up, but i'm working on it now. i will do whatever i need to do. ♪ plan your financial life with prudential. bring your challenges. that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the kohler walk-in bath features

treasury secretary hank paulson. trade war with china carries dangerous long-term risks, because companies and agents pullback from doing business with the u.s.. >> i think we don't pay enough attention to the dangerous long-term impact. companies and countries want to do business with the united states because we have reliable, stable economic policies. is, hisuestion really china going to start looking for new markets for which they are going to buy soybeans, brazil and africa? to be concerned that they needed to protect themselves if there is another tariff war and they need other suppliers. nejra: make sure you catch the full conversation later today at 12:30 p.m. london time. it is a wide-ranging discussion from lessons learned in the financial crisis to forecasting the next big risk. isabelle mateos y lago from blackrock investment institute is still with us. on the u.s. china trade tensions, this is something blackrock acknowledges receives high attention from investors. does that mean it's priced into global

missing thes just magnitude of the event. >> this is you, hank paulson on the debate. i was never able to convince the american people that what we did was in for wall street, but was for them. i want to ask all three of you about this. this, to me is the central issue. if you look at where we are today and describe it as a success economically, there are still many in this country who don't believe it. the question is from a policy perspective both the policy itself, and in the communication of the policy, was there another way to do it? hank: i will start because you are looking at me. [laughter] i thinkbegin by saying one of the issues was that we to wherey relative some other countries have stepped in to deal with these things. bankspped in before the had collapsed. fix theome things to , which are very hard to explain because they are objectionable things. in the u.s., there is a fundamental sense of fairness havethe american people better if you take risk and you succeed, that is great, but if you take risk, the government shouldn't be there, you don't want to re

hank paulson sat with david for an exclusive interview. they discussed how the u.s. relationship has changed. >> we are dealing with a different china than a few years ago. china is now an economic competitor to the united states and a security competitor. it is using its capacities and capabilities to exert influence in long-standing spheres of u.s. influence. , china isnomic side almost a $14 trillion economy. and it has not opened up like it should. it's absurd, i think untenable for china to say the world should keep their markets open for chinese companies if china is and cannot open up for foreign companies. so there's a lot going on. this tradelieve that war, doesn't benefit anyone. and the tariff impasse is a serious thing. ,> knowing china's leadership is there a better or more effective way? they have a lot of pride. saving face is very important. there is anhink easy way, but i think that by far, the best way to do it is to work with our allies to exert pressure that way. as opposed to tariffs. is it thet only public confrontation, an issue, but the other

treasury secretary hank paulson. that is it for daybreak australia, but daybreak asia is next. trading in new zealand is doing. a bit of downside, quarter of 1% lower. futures looking pretty negative. labor day, a long weekend here in ostrow you. of course we have -- here in australia. dollars,e and kiwi some of the worst performers over the past quarter. plenty more to come. this is bloomberg. ♪ is bloomberg. ♪ haidi: i'm haidi stroud-watts in sydney. one hour away from the open. >> good evening from bloomberg global-- bloomberg's headquarters. >> welcome to "daybreak: asia." ♪ haidi: our top stories, the canadian dollar hits a four-month high with the new freeway. the deadline is midnight in washington. three institutions

ten years ago this week that lehman brothers went bankrupt in a cnbc documentary i spoke with hank paulson the storm. paulson described his efforts to get dick fuld to save the bank lehman's books are loaded with subprime mortgages >> i had 60 calls with dick fuld from the time bear stearns went down i said you should be raising capital and you shoulded be looking for a corner stone strategic investor or working to sell the business. >> and what did he tell you? >> well, he's an optimist, so he basically said i've got plenty of capital we don't have a significant risk >> but lehman's falling stock price is telling a different story. >> financials took a big beating. lehman down almost 20% >> in just a few months, lehman has lost nearly half its value fuld is enraged and blames those betting against his company, the short sellers. >> i am soft i'm lovable. but what i really want to do is i want to reach in, rip out their heart, and eat it before they die >> for more from the key players who made efforts to stem the tide of the lehman collapse, be sure to watch "crisis on wall street: the we

paulson ago today, hank went in front of the press and says we will seize fannie mae and freddie mac and eject a couple -- inject money. it became the financial crisis. alix: it was a hybridization. david -- privatization. congress still cannot figure out to do what fannie mae -- with fannie mae. alix: what were you doing? : david running abc news -- david: running abc news. all next week, we will speak to the biggest voices from that time spanning across all of the sectors affected by the financial crisis. on monday, housing, tuesday, we speak with james rollo, and wednesday, regional banks with kelly king of bb&t, and ray dalio. just some of the guests as we look back 10 years to the financial crisis. waiting response from washington. euro-dollar firmer this by the fact softer economic data like german exports with the dollar playing defense today. 210 spread is flat. crude goes nowhere. david: let's talk about the numbers. at 8:30 eastern time, nonfarm payroll additions for august. we may hear from president trump on imposing tariffs on another $200 billion on chinese imports. wil

:nat: "but, in the end treasury secretary hank paulson refused to use taxpayer money to support lehman as he had for the buyout of bear stearns and for fannie mae and freddie mac just last week. the line was drawn at lehman's door."hank paulson/former treasury secretary: "i never once considered that it was appropriate to put taxpayer money on the line with, with, with in resolving lehman brothers. (vicki) (vicki) now, some regulators are pushing to relax rules designed to prevent a repeat of the financial crisis.(grant) meanwhile, many average americans continue to struggle. some can never buy homes again because the housing crisis destroyed their credit. (vicki) ahead at nine...bart is changing it's privacy policy... after they accidentally could have sent passenger informatiion to ice... (grant) plus...we'll show you how the world's largest retailer wal-mart is preparing its stores to handle the potentially catastrophic hurricane.... (vicki) and after the break... president trump facing backlash for his denial of hurricane maria's death toll.... tonight we hear from a survivor who s

hank paulson, who was the secretary of the treasury in the bush administration, and tim geithner, who is president of the federal reserve bank of new york and then secretary of the treasury in the obama administration. they will be interviewed by andrew of the new york times and cnbc who will be soliciting questions from the audience following the conversation. we are on the record and live. before we begin, i like to welcome andrew, the janet yellen professor of finance and management at the yale school of management and the director of their financial stability program. [applause] andrew: good morning. you are here to see what is the main event, a multiyear project to catalog and explain the actions taken during the financial crisis by the official sector in the u.s. these actions were taken by these three individuals. while we can argue and discuss, and we will whether any of the specific things they did were good or bad or worked or didn't work, what is not in dispute is the extraordinary partnership that was forged by the three of them, the cooperation across two different admini

at one point his treasury secretary hank paulson got down on one knee and begged nancy pelosi not tohe bill. presidential nominees john mccain and barack obama, bitter rivals on the stump, both lobbied for votes while campaigning against each other. on the second try, the bill did clear the house with the votes of 91 republicans and 172 democrats. through the bailouts, washington saved the american and perhaps the global economy. but trust in public institutions never recovered. just ahead of bush's first term, 44% of americans recorded a high level of trust in the federal government. at the height of the financial crisis, that number was 24%. last year, it was down to 18%. the crisis gave way to the rise of populism at home and in europe. in the united states, this translated to a remarkable fraying of the left and a hostile takeover of the right. so when the next financial crisis hits, the real problem will be, any response will require a substantial degree of bipartisan cooperation and fast. does anyone think that is possible in today's washington? when we come back, i want to tal

the upcoming discussion with the guidance of tim geithner and hank paulson and oure, own distinguished fellow ben bernanke, the hutchens center has teamed with the yale program on financial stability to undertake an important task. the aim of this project which were highlighted and an all-day conference yesterday is to askwh key individuals who were in the government responding to the 2007-2009 financial crisis to record important decisions, the decisions that they made at the time. in essence, to find out what they did, what they didn't do, what they couldn't do, and why. the goal is to create a reference for future generations, if you will, a financial crisis fighters who would want to know and he would wonder, what did they do way back in 2008? today we have the exciting opportunity to hear from three of the most consequential participants in this crisis, outstanding leaders all, who deserve a substantial amount of credit for preventing the second great depression. first, ben bernanke of course who was the chair of the federal reserve. and hank paulson was the secretary of the treas

c-span, former federal reserve chair ben bernanke and former treasury secretaries tim geithner and hank paulson. on c-span2 at 8 eastern, agriculture department officials look at how current trade policy is affecting u.s. agriculture. and on c-span3, the house foreign affairs committee considers legislation requesting the white house and the secretary of state turn over all documents and records pertaining to the helsinki meeting between president trump and russian president vladimir putin. that also starts at 8 p.m. eastern. >> c-span's "washington journal," live every day with news and policy issues that impact you. and coming up saturday morning, a look at the local, state and federal disaster response with michael greenberger, director of the center for health and homeland security at the university of maryland. and in our spotlight on magazines segment, adam harris reviews his recent article on the state of the free college movement. and washington post health reporter will discuss the u.s. senate's bipartisan opioid legislation. be sure to watch c-span's "washington journal" live at seven

we'll hear from hank paulson and geithner apple also introducing a lower cost model as well there isome reports that maybe they gave some away on their website, maybe some names and color schemes, as usual, it will be a big event at 1:00 >> stocks run you have and the reason why it is not the right thing because you will get them and there is mainly people say it is not what we thought and it is not that great. ex pepectations are too high. there will be people say well samsung has a phone that opens up there are nay sayers everywhere after apple moved up and got hit by tariffs >> david, at the event where you are there are all kinds of media deals being announced today. who knows if apple wants to join it out west? >> it is really funny. i don't think that's the case. jim, as you noknow well, they a spending more and more general on contents and certain things as they increasingly focus on having a larger ecosystem, something we talk about all the time for all the new products that's introduced today of the reoccurring revenue stream that's gotten so much larger the last couple of y

and a discussion of the 2008 financial crisis wednesday at 10:00 a.m., with tim geithner and hank paulson. u.s. house returns for general speeches and at 2:00 p.m., members take us legislative business. among bills expected this week, 2019 spending, the conference report for funding energy and legislativems, the branch, military construction programs. returnsp.m., the senate for work on the next i.r.s. commissioner. a discussion of sexual harassment in the workplace and a conversation justice ruth bader ginsburg george washington university law school. and sunday on "q&a," "an uncommon man." >> hoover said when all is said is alle, accomplishment that matters. it's a rather unsentimental -- the sort of thing you would expect an engineer to say and tot's one of the keys understanding his life, his success in everything but the presidency. announcer: sunday night at 8:00 c-span's "q&a". hayden,r: now, michael and michael rogers talk about presidents and the intelligence community at an event put together by george mason university. minutes. >> we'll get started in just a you.e, thank

and what the future did hold it also ahead treasury secretary hank paulson and federal reserve chair ben bernanke really critically concerned with lehmann did what was next with contagion from lehmann and perhaps others who could fall destroy the economy and still nobody knew the financial risks of those dark o.t.c. markets with those bundles of bad mortgages in the credit default swaps fearing the worst total economic destruction paulson and bernanke headed to capitol hill with a three page document seeking more than seven hundred billion dollars to buy what they called troubled assets held by large and small banks and insurance giant aig which had insured the o.t.c. dark market products for many of the banks and it did become law for more we're joined by legal journalist molly barrows at the ring of fire network molly some of our viewers may now have only a really a veg. welcome back well the impact of the great recession upon the crash that was huge in the u.s. the g.d.p. began retracting during the third quarter of two thousand and eight and ended up negative point one percent fo

and by the way, hank paulson said another argument out there, that if we had saved lehman, it would haveother company to go. and only the congressional action, the t.a.r.p. and all the qes were able to put the financial system back together again. >> all right steve, thank you >>> ten years after the financial crisis, the question now, can it happen bethany mclean says fracking is on shaky ground and this could be disastrous for the country. she is out with withnew book, t about fracking great to have you with us. especially at a time when we're watching oil peaking basically for the year forthe past coupl years, people are starting to put drills to the ground again what is the warning here it sounds like these companies are destined to not make money and this is trouble for the country. >> that obsessed me about this story. this question how can an industry make money and changing the world as much as fracking is and it is a really interesting conundrum. thus far they haven't approach that they can produce free cash flow and i think so the big question for the country is how much oil an

we sat down with tim geithner, ben bernanke and hank paulson all at the same time i've spoken to them over the years all individually, and we sat down all together in a live interview that took place for about an hour, and, you know, there's been a huge debate and you saw it in the documentary a little bit around lehman brothers why lehman did they have to fail? did the government have a choice, and one of the things you heard over and over again from the past ten years from hank paulson and tim geitner and ben bernanke that they didn't have the authority to make a loan to lehman brothers because they didn't believe the company had enough collateral. but almost that it was like a legal decision, and for the first time ben bernanke shared a little bit more on that view, and it might change some people's perception. i want you to take a look. >> this was not some kind of narrow legal judgment. not like saying we could do it, but it's just on the other side of legality. that's not the way we were thinking about it. we were thinking about in terms of was it feasible our belief was that ma

the 2008 financial crisis with former federal reserve chairman ben bernanke and tim geithner and hank paulsonoon, the u.s. house returns for general speeches. at 2:00 p.m., members take up legislative business. among the bills this week, 2019 spending, energy and water programs, the legislative branch, military construction, and v.a. programs. on c-span2 at 3:00 p.m., the u.s. senate returns on work for charles reading to be the next irs investigator. the women's bipartisan caucus hosts a discussion on sexual harassment in the workplace on c-span3. at 5:00 p.m., a conversation the women's bipartisanwith justg at george washington university law school. president trump

when we looked up to see you were managing the crisis response we saw but it was all people like hank paulson mary. now you know mark carney who were veterans from those banks. so we actually have career civil servants manning the regulatory positions we're never going to have a situation where there is going to be too cozy relationship between the financial services sector and the regulatory. thank you well now to go through some of the week's papers is the u.k. prime minister trades amaze old home of his colleague norman baker who's david cameron as a minister of state building thanks for coming back on we're going to go to lehman brothers in a second but obviously with two more liberal democrat all of them conference i got to ask you as a house member to the other week will you be becoming the next leader of the democrats and sits with lloyd george and with him to had since that action when liechtenstein wouldn't so well cock up us all forward and also the prime minister your old colleague at the home office was we going to be covering it later in the show said parliamentarians should not

do you remember hank polson explae -- paulson explaining why he wasn't at that meeting?o bail them out and had we had another week, it's possible we could have done it >> the financial crisis left a path of destruction through the banking sector wilf frost is here he's got a look at the banks both then and now. good morning >> good morning to you guys as well so the total number of banks in the u.s. has shrunk from 8,500 to 5,500 in the last decade. but the biggest banks have been resilient. those with the market cap over $100 billion have only gone from five to four in number and their total market cap has risen jpmorgan's more than doubling. the same is not true outside of the u.s. there were 13 banks outside of the u.s. over $100 billion in market cap in 2007 there are now eight. and the total market cap has fallen from $1.8 trillion. to $1.3 trillion but china's resilience and canada's growth hide europe's plight there were eight banks over $100 billion in 2007. today only one remains hsbc remains in that size. what about the workings of the banks themselves balance

here is former treasury secretary hank paulson remembering his efforts to prevent a panic during the financial crisis. paulsen: morgan stanley's liquidity had been bleeding away. john mack was on the phone with me, and i was in my hotel room and got on the plane and flew back to washington. he was saying, i don't know how long we can live. the sharks are going to be all around us. myselfew back and found standing up in the white house press room, and i felt like if i said, guess what, there is not a single power the united states of america has that will save a disintegrating investment bank if we do not have the authority to do it, i think morgan stanley would have gone down immediately. and that was my judgment. to put as good a face on it as i possibly could. >> good afternoon, everyone. i hope you all had an enjoyable weekend. yeah, yeah. as you know, we are working through a difficult period in nowfinancial markets right as we work off some of the past excesses. but the american people can remade confident in the soundness and resilience of our financial system. i commend the se