. >> why did ken -- not ken but henry paulson. >> henry paulson. >> and ben bernanke why did the two of them want to -- i mean -- >> why did they want to pay the gambling debts of aig? >> yes, exactly. what was it about it? i mean they said that the whole country would collapse. >> because all of the wall street firms were on the other side of those bets. and if aig didn't pay off the bets the firms would have experienced the loss. think of it this way. goldman sachs had lost on its bet to michael burry but they really -- they weren't -- it wasn't that they thought they were just brokering the debt between michael burry and aig. so they paid off michael burry in their out of pocket. they want to get paid off by aig and if they aren't paid off they've got a $13 billion loss. this was -- i don't defend this. i'm just saying what they're thinking. paulson and bernanke and tim geithner are thinking if we don't make the wall street firms whole the wall street firms are going to be believed -- are going to collapse. the market's not going to believe they're going to survive. >> a couple of

then former treasury secretary, henry paulson, from his memoir. then at 8:30 p.m., is afterwards with john lewis. the transportation department will suit toyota -- they will fine to yet for $6 million. congressional meetings have call into question the government enforcement of these standards. two former administrators discuss federal oversight of car safety standards. they are joined by the president and ceo of alliance of automobile manufacturers. they will take your phone calls and tweets tonight at 8:00 p.m. eastern. see the winners of c-span's studentcam video documentary competition. middle and high school students submit it videos on one of the country's greatest strengths. watched the top winning videos every morning on c-span at 6:50 a.m. eastern. at 8:30 a.m., meet the students who made them. for a preview of the winners, visit studentcam.org. >> we are in a unique position to go to war. we make -- we need the policy makers to develop a road map to get it done. >> something about energy policy you would like to talk about? at the new c-

after that, former secretary treasury henry paulson talked about his memoir. then it is "afterwards." book tv prime time is all this week on c-span 2. first lady michelle obama speaks with the studentcam first prize winner. other student filmmakers from around the country will join in on the conversation. you can watch it starting at 11:00 a.m. eastern on c-span. >> this year's studentcam competition asked students to create a five-eight minute video dealing with the country's greatest strengths or hmos that the country is facing. here is one of the first place -- strikes or a challenge that the country is facing. here is one of the first-place winners. >> one of our nation's greatest strengths or the arts. hey there, this documentary is "art for the sake of work." we have interviewed several professional artist to find out what sets american art apart. in austin, texas, the arts are of the highest importance to the community. this lovely town is the central location for this documentary. a few explanations are in order. what are the arts? arts is defined as t

after that, former treasury secretary henry paulson on his memoir. then, at a 30 p.m. georgian congressman john lewis on this book "race and reconciliation." -- that is at 8:30 p.m. >> we are in unique position to go to war. we need to develop a roadmap so that we can get it done. >> something about energy policy that you would like to talk about on your blog-you can search it, watch it, and share it at the c-span video library. every c-span program since 1987. it is the latest get from cable to america.>> earlier today, gon announced parliamentary elections will be may 6. his labor party is in a tight race against the conservatives. in the british system of prime minister traditionally meets with the queen to request an election. he did that this morning. >> it will come as no surprise. it is probably the least well- kept secret of recent years. the queen has kindly agreed to the distribution of parliament. the general election will take place may 6. i come from an ordinary, middle- class family. i know where i come from, and will never forget the values of doing the

henry paulson talks about his memoir on the brink with warren buffet at 7:30 p.m. eastern. at 8:30 p.m. eastern, race and reconciliation. >> in a few moments a forum on nuclear security and the middle east and the head of the internal revenue service, commissioner schulman, speaks at the national press club. a couple of live events to tell you about today on c-span2. a preview of next week's nuclear security summit with 40 leaders who are gathering to discuss securing nuclear material worldwide. that is at noon eastern. on c-span at 8:00 p.m. eastern we will take your calls and questions on federal oversight of car safety standards two former leaders of a national highway traffic safety administration and the president of the alliance of automobile manufacturers and to follow up on monday's announcement, a $16 million fine on toyota. that is live online at c-span.org and on c-span radio. up next, washington institute forum on nuclear security and the middle east. it is an hour and a half. >> good afternoon and welcome to the washington institute for middle east policy. i am

. >>> former treasury secretary henry paulson talks about his new memoir "on the brink" with berkshire hathaway warren buffett. he talks in response collapse. this event was part of the greater omaha chamber of commerce 2010 annual meeting. >> well, hank i want to thank you for coming us. you honor us. i should declare right off the bat that i am a friend of hank's. i have been so for some years. i admired him before he took the job. i get my ear him a lot more after the job is done as the secretary of the treasury. the name of this book is "on the brink," and that is exactly where we were in september and october of 2008. at that time, our economy, our financial world went into cardiac arrest, and we had four people in the operating room we were fortunate as a country to have in place. we had hank, we had been bernanke, we had tim geithner and sheila bair the head of the fdic. i really -- i know a lot of people in finance and a lot of people in business, i know a lot of people in government, and i can't think of for that would have done a better job of getting us through that. now it'

should bush give back money because henry paulson was bush's secretary. >> sean: hannity fox news alertis deficit. can we stop -- >> the fact that the economy took a dive under bush. the fact that bush did the first bailout, i should ignore that >> sean: bringing us down the path to economic ruin is his fault. >> i think he's going with a blank cheque to wall street and reimburse that money he -- 10 times as much went from goldman sachs to obama than enron money went to bush that's a huge disparity if you are talking about bad guys >> i think you are both right. i hate to see you argue, it is like watching my parents argonaut saying you are older. -- my parents argue. not saying you are older. >> sean: they forced them, they legislated. >> then you have the banks, a problem. here's a bigger issue, most of america, including myself have no idea what is going on with this stuff because it is not taught in schools. we have home ec, when we should be having ecec. >> sean: economics 101. >> exactly >> sean: if these allegations are true, they -- there will be the proper penalty we have laws,

then-secretary of the treasury henry paulson turned to congress and said "i need $700 billion" to beble to deal with the subprime mortgages and other troubled assets that the banks are holding, said that we can get credit flowing again, stabilized banks, and stabilize the growing foreclosure crisis. now, that was the announcement. congress passed. it put an oversight panel in place as part of passing it, and all those we have to write reports every single month. secretary hank paulson then pivoted quickly and said that will not work. so instead we will put money directly into the large financial institutions. we did that. they are now making money big time, paying out those big bonuses, but the rest of the economy is still struggling, and foreclosures continued to climb. host: so what is next with tarp? where are we and where is it headed? guest: 4 the bank of bailout part we're getting a lot of that money back. we seem to be doing pretty well. there will probably be some that will not pay. whether or not the automobile companies will be able to pay depends on whether consumers buy t

caller: this is just criminal, with this triple-day and then there is henry paulson, under reagan for the bailout. did not ask where the money is going and did not invest for the money is going. this is democratic. you sound like frank luntz. host: we have more from the speech from cooper union college. >> as i said here two years ago, i believe in the power of the free market. i believe in a strong financial sector, that will help people to get loans and invest in savings. part of what has made america what it is. you take whatever you can never you can get this, and that is what led up to this crisis. some of them on wall street forgot that behind every dollar that is traded, or leverage, there is a family trying to buy a house, or pay for the education or open a business. or to save for retirement. what happened on wall street has real consequences across the country. i have also spoken about the need to move -- to have economic growth in the 21st century. wall street reform as part of that foundation. host: here is the "the new york times", they have a $50 billion fund that will b

then-secretary of the treasury henry paulson turned to congress and said "i need $700 billion" to be able to deal with the subprime mortgages and other troubled assets that the banks are holding, said that we can get credit flowing again, stabilized banks, and stabilize the growing foreclosure crisis. now, that was the announcement. congress passed. it put an oversight panel in place as part of passing it, and all those we have to write reports every single month. secretary hank paulson then pivoted quickly and said that will not work. so instead we will put money directly into the large financial institutions. we did that. they are now making money big time, paying out those big bonuses, but the rest of the economy is still struggling, and foreclosures continued to climb. host: so what is next with tarp? where are we and where is it headed? guest: 4 the bank of bailout part we're getting a lot of that money back. we seem to be doing pretty well. there will probably be some that will not pay. whether or not the automobile companies will be able to pay depends on whether consumers buy

beginning with the appointment of henry paulson to become the treasury secretary, you know, originallynder the bush administration, right down to today we've identified that goldman sachs has employed 33 former government officials as their lobbyists that are out there on capitol hill right now. host: next up, dallas texas. on our line for democrats. caller: good morning. if i'm not mistaken, wasn't there a law passed that the politicians had to wait so many years before they become a lobbyist? and let me ask this. is it the reason why the medical field -- i'm not blaming the doctors but the ones that produced the pills and things, can advertise pills that can cause death, suicide, vomiting, a heart problems, and it's just government for the people, by the people, or are they for big business? because this is a damn shame. thank you. and have a good day. guest: there are some laws that apply to congress. and originally began with the ethics and government act in 1978. what it established is what's called a one-year cooling off period for a member of congress to actually make a lobbying

first the former goldman ceo ast henry paulson. he left to become bush's treasury secretary. jon corzine became a u.s. senator and later new jersey's governor. robert rubin also ran goldman, then left to become treasury secretary under president clinton. then went back to work for citigroup and was an economic adviser to president obama during the campaign and a mentor of mr. obama's top current economic aides. more goldman alums were currently in high positions in washington. representative jim hines currently sits on the house financial services committee. overseeing financial companies. hines is a former goldman vice president. gary gensler is the current chairman of the u.s. commodities futures trading commission and his office is expected to have a big hand in the future regulation of the derivatives market. he's also a goldman sachs alum. and many people might recognize this man, neel kashkari. he was the point man on t.a.r.p. funds, helping to dole out some. on top of this, there are more than 40 former congressional staffers and federal agency employees who registered

of course, people like henry paulson made $15 billion betting against the subprime market. mr.in, you have a whole history in at the subprime market, yet careening into 2007, citi made a slew of a bet that put you into further jeopardy in this regard. you were continuing, essentially, to advance your exposure. let me just point out one other thing. in july of 2007, you started to buy back cdo's to put them back on your balance sheet they had been off your balance sheet. it seems like you might have taken some action to protect the balance sheet of citi. >> there were some hedge fund managers, henry paulson was one, who really did see the big picture spiri. if you look at the various activities major firms were engaged in, i don't think any of them really saw the potential for the kind of crisis that we had. in terms of the purchase back, i was not aware of this $43 billion exposure until september. that was taking place at the level you would not see if you were just on the board. my understanding is that they were basically frozen. >> but you could not sell them. >> well, they

henry paulson is a criminal because he selected for goldman the securities he wanted bundled to tel soe could short against it knowing they were all bad loans so that he could make the money to put in his pocket and just because i use the word criminal that there is not a law. when something smells, it stinks. goldman do. they had him as the innovator and selector of the securities and they did not disclose it to any of the institutional investors. it was a lack of disclosure. all the other firms are doing it. >> you touch upon a very important point which is this whole thing stinks to high heaven. it stings and it gets back to the deterioration of ethics on wall street. maybe wall street is a reflection of our society as a whole. it might very well be. there has been a deterioration of ethical behavior certainly on wall street and it stems from the desire to make as much money as you possibly can as quickly as you can. i went from being a journalist working in north carolina in 1983-'85, where it would take me ten years to make as much money as i did in my first year on wall street, i

nothing as to the notion of the the regulation having enough power -- christopher cox, the sec and henry paulson both said, and no, we did not have enough authority. i want to address the false the comet -- dichotomy between did they have enough authority and should we give them any more? yes, everybody worked perfectly, they could not or did we could have avoided this. but people do not work perfectly. tim geithner, and the testimony. >> thank you, chairman frank. on september 15, 2008, lehman brothers became the largest bankruptcy in american history. in the days of falls, it puts our financial system to the brink of collapse -- in the days that followed. it illustrates many of the fundamental flaws in our financial system. these problems are exposed with great care and force in the report. tell the story of the ways in which our system of large institutions to take on excessive risk without constraints. in particular, the system allow the emergence of apparel financial system, what many of called a shadow banking system -- a parallel financial system. it operated alongside and grew to be almo

barack obama, henry paulson carrie. to the discretdegree that the discrediting happen, it was a moment. it moved from discrediting the republican party to discrediting the state. >> i would like to take another question. >> in terms of representation in then to organize the and the movement, how do you propose to remind people is not teach them that labor is a social reality and not just a movement or lobby? it is something that concerns them from the moment they start earning wages and supporting themselves. at this point, i do not feel like there is that sentiment in the public. i have a second question. it is about a broader solidarity movement, specifically the environmental movement. were you going to tell the workers -- what are you going to tell workers around that movement? is now the best time or worse time to ask the question of those unemployed or anxiously employed people around oil companies and mining? is now time to change the way they are employed? is now time to organize in their employment to change th

nationalized three large investment banks in the aftermath of this september 19 visit to the capitol by henry paulson, then the u.s. treasurer. the secretary of the treasury, to make it more correct. three large investment banks, ownership taken over, ownership or control taken over by the federal government. a.i.g., the insurance company, 1 -- $180 billion invested in the insurance company which was guaranteeing securities. and then we back this up to the late 1970's when the community reinvestment act was passed because there were lenders that were not willing to make bad loans in bad neighborhoods, they had drawn red lines around those neighborhoods and concluded that the asset value of that real estate was diminishing, not appreciating and that the return on that investment, let's say the collateral value was shrinking, therefore if they loaned against that collateral value, they'd find themselves upside down in those mortgage loans. so they drew lines around these neighborhoods where the value of those assets was going down. now, some argued that it was a racist decision and i don't know that, i

speaker, when you look at the beginning of this is at the end of the bush administration, henry paulson, secretary of the treasury, came here to the capitol september 19, 2008, and asked for $700 billion in bailout money that he would deal out the way he saw fit in an attempt to stop what he believed was a potential or maybe an impending meltdown of the world's credit that he thought could occur, come all crashing down, he couldn't guarantee if it was a fix. he said if he give me new ideas it won't be as good as my own. in about october of 2008, and then another $350 billion that was approved by a congress that was elected later and by a president who was elected later and that was president barack obama who supported and approved all of the tarp funding, all of the nationalization beginnings that he followed through on the balance of that of the takeovers of three large investment banks. a.i.g., the large insurance company, to the tune of $180 billion. fannie mae, freddie mac, culminated by executive order right before christmas of last year and hardly made the news. you know, if we we

paulson's involvement in a short position. if i'm an investor, that's something that i'd like to know. the e-mails remind me of henry blodgett at merrill lynch saying the stocks were junk while they're telling investors it's great. i think it's a good case. >> are you talking about if you're an investor in goldman stock or you're an investor in those cdo products? >> if i'm an investor in abacus, i would want to know what paulson's doing, and they didn't disclose that. >> is it your view -- i mean, jake, if you can put it in context, i know you referred to henry blodgett and those infamous e-mails. but is this just as bad as any other sort of crisis that we've seen on wall street to date, or is this something different? >> i think this is different. what the heart of this case is is goldman's conflict of interest, that they're telling their investors that this is a great fund to invest in when they know that paulson is going short and that there are problems with this fund. so goldman's conflict of interest, there's been a lot of suspicion on wall street that they've been doing things like this for years. this case