all of modern antitrust thinking came after roosevelt decided to confront j.p. morgan. now, j.p. morgan came to the white house. he was upset. and he said, if we had done anything wrong, with regard to the structure of this monopoly, he said send your man to see my man and we will fix it up. teddy roosevelt and his attorney general said no. we don't want to fix it up. we want to stop it. and we are going to go to the supreme court, and they did, and they want did, and the one, five mac-4. from that decision came the modern antitrust movement. and by 1912, 10 years later, this movement was strong enough, the thinking behind it, the consensus and a change in consensus was dramatic enough that standard oil was broken up into 35437 pieces. now, standard oil was the lifeblood of the american economy. this was a manufacturing economy, a transportation economy. that was the fuel of that economy. but people have become convinced because of teddy roosevelt that, while big could be beautiful, in america, under some circumstances and that certain private benefits, big could also be dangerous

its assets were sold to j.p. morgan chase. >> tom: the financial crisis had its roots in complex trading instruments that few people understood. now with financial regulatory reform working its way through capitol hill, there's a big push to make the investments we buy easier to understand. but as stephanie dhue found, some familiar products are growing more complicated. >> reporter: with interest rates near record lows, some banks are souping up certificates of deposit. they've taken the simple c.d. and linked it to a stock market index. tom gletner of suntrust investment services says the product is aimed at investors hoping to cash in on the market's performance. >> the majority of people who buy index-linked c.d.s know the stock market, are comfortable with it, want to participate, want to get the inflation beating returns it can potentially supply, but are paralyzed with fear of loss, so this allows them to participate in a good bit of the upside, without that fear. >> reporter: but losing the fear comes with a lot

companies that now hold 2/3 of the wealth of this nation, and they are goldman sachs, morgan stanley, j.p. morgan chase, citigroup, bank of america, and wells fargo. they have enriched themselves handsomely. they doubled their importance since the beginning of this crisis while quashing community banks across this country, seeing forced mergers and institutions like p.n.c. bought up as local community banks that didn't do anything wrong and were not permitted to do

the stock was the biggest percentage loser of the dow after j.p. morgan cut its rating to neutral, lowering its earnings prediction thanks to lower aluminum prices. oil continued to back down slightly from its recent highs, but big oil found buyers thanks to chevron's outlook. shares of chevron are at their highest price since mid-january. it says higher oil prices compared to late last year, and a return to profits in its gasoline refinery business will add up to stronger earnings. c.v.x. was the biggest percentage gainer of the dow industrials. conoco shares hit a new 52-week high and exxon also rallied. natural gas saw a little buying interest but it remains near some lows. still, there's buying interest in production. atlas energy jumped 20% thanks to a deal to sell a stake in one of its nat gas fields to an indian company, bringing in $1.7 billion. others involved in this same nat gas field that stretches from west virginia to new york saw buying. rex energy, exco resources and range resources, each up 4% or more on heavy volume. as jeff reported ear

goldman, merrill, citi, b of a, j.p. morgan. most of the major desks on wall street have had c d o and synthetic trading desks. so, this is just the tip of the iceberg and as soon as this case its momentum, it will be applied. the same setup will be applied to the other banks and the prosecution will continue way through the summer. we're just getting started. what are are the synthetic cd o's that banks are cooking up? i mean, how you make one and then lie about what you put in it? well, right, there's two points to your question there. you make up a cd o by saying these assets will behave in a certain way. and that's what you get. a bet on a derivative transaction. this bond will survive, or won't survive. the question lies, and here's where the case is in the civil suit is. whether it was a material omission, they forgot to mention about how bad this bond was. or they intended to not pervade the information to their customers. and that's where the legalities lie. do they know it, or they but it know it, or were they lying abo

j.p. morganhase is the first of the big banks to report earnings for the january to march quarter. it turned to 0.5 @ billion dollars during the first quarter, and sees signs of strengthening and the economy. -- j.p. morgan chase earned $2.5 billion during the first quarter. opec says it will put fewer barrels on the market this year than last. >> a couple of events to tell you about on c-span3. the joint economic committee will hear from ben bernanke at 10:00 a.m. that is also on c-span radio and online at c-span.org. and at 2:30 p.m., the senate commerce committee looks into the national broadband plan released last month. members will question fcc chairman about the plan and the role of the commission. host: you have a chance now to speak with elizabeth warren, the chairwoman of the congressional oversight panel. what did you look at, and what does the report say? guest: this is our third report on mortgage foreclosures. you may remember when congress passed the original $700 billion bailout,

j.p. morgan's brian tunick warns against loading up on retail stocks now. >> a lot of investors already are expecting good numbers to continue. a lot of investors are expecting improvement in the employment picture. so, i think there is some of this good news baked into these stocks. >> reporter: the real verdict on retailers' profits will come in may, when stores release first quarter numbers. apparel is expected to be one of the best performing sectors, with earnings growth of 36%. erika miller, "nightly business report," new york. >> susie: airline stocks took flight today on word of renewed merger talks between u.s. airways and united airlines. the carriers aren't talking publicly about a deal, but their ceos have been some of the most vocal supporters of consolidation in the industry. it's an industry that's lost a combined $70 billion over the past decade. as stephanie dhue reports, those losses are guiding the new talks. >> reporter: u.s. airways and united have taken this route before. the companies' connection was blocked by the justice department and labor unions in 2000. the two

j.p. morgan shays, that bail out individually, and with a profit of about $1 billion and the government will auction off the warrants it is holding on with wells fargo, and i think that should pull about 1 billion as well. so, as i said, when you have aig, you put more than $45 billion into aig. it is not clear we are done there, either. some parts of the bailout are an ongoing story like aig, fannie mae and freddie mac. whereas of the wall street banks, that has been winding down for about a year or so. >> we are talking to paul keel about the status of the bailout repayment, the banks but that taxpayer money and whether or not they are paying the government back. the attack could be $89 billion -- the tab could be $89 billion. timothy geithner writes for the writes fortqarp could be $117 billion. why the two different numbers? is tarp one program and $89 billion figure the wall street journal wrote yesterday include several programs? can you help decipher between all the numbers being thrown ou

chait and other large financial -- j.p. morgan chase and other large financial institutions. madam president, if my republican friends are sincere, i hope they will join me in supporting efforts to bring transparency to the federal reserve, and that amendment that i intend to offer will do just that. and what we need to do, among many other things, is we need to understand which financial institutions during the bailout received over $2 trillion in secret taxpayer-backed loans virtually interest free. who are they? i can tell you that last year, as a member of the budget committee, i asked fed chairman bernanke that very simple question, and he said, no, he is not going to tell me which financial institutions, not going to tell the american people which financial institutions received trillions of taxpayer dollars. well, i've got a problem with that. i think the american people do. and we're going to offer an amendment as part of financial reform in order to understand what, in fact, is happening to demand transparency there. madam president, in april of last year, the senate

stocks, financials looking strong throughout the day with bank of america, american express and j.p. morganishing towards the top of the dow. >>> but kindle creator, am zon taking a big hit today, after cutting new pricing deals with two major publishers. amazon agreed to begin charging more for the publisher's e-book best sellers. >>> back to "hardball." almost two weeks ago, albert snyder appeared on this show. and told the heart-wrenching story of losing his son who served in the military in iraq. and the further anguish, when a group of demonstratored showed up near the church when the funeral service was being held for his son. they are holding signs with horrible things on them. the group demonstrating at the funeral claims, says that the death of u.s. soldiers in iraq and afghanistan, is god's judgment for america's tolerance of homosexuality here at home. mr. steiner took the protest to court and won at the district level. and then at at the appeals level it was overturned. now the supreme court will hear the case this fall. but on friday, the appeals court, the second level of just

j.p. morgan tried to slip out of a mess he got himself in to. nd they can fix it up. teddy roosevelt told j.p. forget this your man and my man business. quote, we don't want to fix it up, we want to stop the dirty deals period. maybe president obama is getting tough with wall street. maybe a loud cheering session if he did. a few out there have a picture of teddy roosevelt up on their wall. that's "hardball" for now. "countdown" with keith olbermann starts right now. >>> which of these stories will you be talking about tomorrow? president obama says no more business as usual for wall street, that's a good thing, even for banks. >> people have confidence if they're dealing with banks, they're dealing with these institutions that they, in fact, are playing it straight. >> this as a senate committee passes strict new measures governing derivatives and another group of senators moves to make sure big banks get broken up to avoid the need for more bailouts. >>> the calm before the supreme storm. >> i'm confident that we can come up with a nominee who

j.p. morgan shays, that bail out individually, and with a profit of about $1 billion and the government will auction off the warrants it is holding on with wells fargo, and i think that should pull about 1 billion as well. so, as i said, when you have aig, you put more than $45 billion into aig. it is not clear we are done there, either. some parts of the bailout are an ongoing story like aig, fannie mae and freddie mac. whereas of the wall street banks, that has been winding down for about a year or so. >> we are talking to paul keel about the status of the bailout repayment, the banks but that taxpayer money and whether or not they are paying the government back. the attack could be $89 billion -- the tab could be $89 billion. timothy geithner writes for the writes fortqarp could be $117 billion. why the two different numbers? is tarp one program and $89 billion figure the wall street journal wrote yesterday include several programs? can you help decipher between all the numbers being thrown ou

in fact, in the case of j.p. morgan chase, citigroup, and bank of america, three of our largest megabanks, they have cut lending, they have cut lending through a key small business administration lending program by between 85% and 90% from one year to the next. these multibillion-dollar profits have been made through high-risk trading operations with money deposited by families and businesses. the banks are expecting people in our communities to shoulder all the risk while getting none of the upside. something has to give in this situation. these megabanks, these big companies are entitled to make profits but we will no longer allow them to continue to use the federally insured deposits of working people as capital for their money-making schemes. we need commonsense rules that separate conventional commercial banking operations from high-risk financial gambles. in no area is this need for reform more apparent than in the so-called derivatives market. a derivative is a high-risk bet that the value of another financial in

here we are 18 months later, and j.p. morgan chase is rolling in the money, making big money and are able to pay it out to their executives. yes, went in front of congress yesterday and said about the treasury's plans that are modest -- they said in effect, you know, we actually do not think so. we do not want to go along with what you are proposing. remember the thing about the boat -- forget you, we will go our own way and make our money. i find it stunning. these financial institutions would not exist if it had not been for the american taxpayer. host: here is a message by twitter. guest: you have to take that up with secretary paulson. we began to ask the question over a year ago as part of the panel. panel. it is simpl host: was the size of your office? guest: we have a staff of about 30. host: your budget? guest: we have a budget of about $30 million. we will exist until tarp expires. it must expire since october. they cannot start any new programs. we will bear for in a year from this month. host: let's here from clevelan

billions of dollars, when people in my district have fallen off unemployment benefits, companies like j.p. morgan chase don't return phone calls to do loan workouts, wells fargo, they're just totally irresponsible. they have too much power and they are thumbing their nose at the american people at a time when our people are just hanging on and i want to thank the gentlelady for holding the special order this evening, for giving us a chance to place some of this on the record and i ask unanimous consent that we be able to place on the record the letter we sent to the attorney general asking for criminal proceedings and also the names of the members of congress who signed on to this letter and we urge other colleagues who wish to join us to give us a call. i yield back time and i thank you so very much for allowing me to place this information on the record. ms. speier: i thank the gentlelady from ohio. you reference the number of people in the justice department tasked with doing the investigations. it was interesting this week when we had the hearing on lehman brothers and mary shapiro spoke to t

it is ridiculous to blame j.p. morganchase or merrill lynch or citibank or anybody else because the fundamental wall street of the financial instrument depends on some basic system. for example, the federal reserve has a responsibility to have prices. and treasury secretary paulson before the said the only thing americans can export is the universal financial instruments complaining we don't make any more to other financial instruments. so how do these like j.p. morgan make money? it is by losing. you know what ode upis, pedro? host: what is that? caller: it is other people's money. other people's money. other people's money is the pension fund, all this stuff, all this money is used to transfer wealth to capital gainers so monthly dividends or monthly pension payments or something like that. host: all right, charlie, we're going to leave it there. jane on our line for republicans out of san francisco, california, thanks for waiting. caller: oh, thank you. this is a very interesting topic, and the thing it goes back to is

2008-2009, but more than that, if you look at the heads from the wall street firms, goldman sachs, j.p. morgan, to black roth, the big management firm, they're all big-time democrats. megyn: a lot of people have the misconception that wall street is conserve tivment that's not true. >> not at all. there was always the misconception, or the cliche it was a bunch of country club republicans. it's i guess as you could say limousine liberals on wall street. megyn: we'll see what the reaction is as the crackdown takes place. charlie, good reporting, thank you very much. >> any time. megyn: fox news alert, awaiting the coast guard on the search for 12 missing oil rig workers off the coast of louisiana. look at these brand new photos, just in from this horizon rig, where an overnight explosion sent seven people to the hospital oh my goodness, would you look at that! helicopters and airplanes, and a boat, are now scouring the waters of the gulf coast for the dozens of workers -- the dozen workers i should say, not seen since this blast. the coast guard is now drilling -- the drilling platform is tilti

on "fast money" we have 360 degree setup for j.p. morgan. what are you working on? >> theang, melissa. >> still to come on power legislature, taxing american, one half of the bipartisan team trying to tackle tax reform on its own plus a whole lot more. >> what twitter does is it sells categories. >> they are students at harvard business school and they are talking about twitter. in recent years harvard business grads have taken top positions all over the internet, facebook, hulu, yelp, zinga. can twitter become the latest digital tool you can't live without? these harvard business school students think they can show twitter the way. >> that's right. our twitter-rama special continues. i'm militia caruso-cabrera. live from the harvard business school. news of internet advertising pioneer, bill gross launching tweet up and twitter's own letter to developers about expanding the twitter sphere. this is the founder of twitter and they are offering him some advice. >> i'm sue herrera, 74 stocks are hitting new 52-week highs, including mtv. >>> think pink. microsoft unveil

banks: bank of america, citigroup, j.p. morgan j.p. morgan, chase and wells fargo, issue two-thirds of the credit cards in this country, write half of the mortgages and collectively hold $7.4 trillion in assets, about 52% of the nation's estimated total output last year. and, mr. president, despite the fact that we bailed these banks out because they were too big to fail, incredibly, three out of four of these institutions are now larger today than they were when we bailed them out. enough is enough. i am joined, as a progressive, by many conservatives who understand that you cannot continue to have that concentration of ownership. not just in terms of the liability to the american people in terms of too big to fail, but in terms of their monopoly control on the entire economy. so if we are serious about financial reform, now is the time to start breaking up these beathat exert enormous impact on our economy. number two, mr. president, we have got to end the absurdity of a wall street selling trillions of dollars in exotic financial too

this morning, both intel and j.p. morgan chase posted better than expected quarterly profits. investors also seem encouraged about the retail numbers that came out today. looks like people are out there buying stuff, in march, sales were actually better than expected, the consumer price index, which is a gauge for inflation, that is good news, folks, if we can keep inflation in line with forecasts. yesterday the dow closed up 13 points, unlucky number but lucky for the dow, up over 11,000 points for the first time in quite a while. we see if we can keep it there. bill: in the meantime, americans are lighter in the pocket, the white housesy the economy is recovering, a new report says income overall has dropped in the 15 minutes -- months since the president took office. what's happening to your bottom line? stephen moore address that is in moments. martha: a florida man being hailed a hero this morning, he went out and found this missing 11-year-old girl, safe and sound, and who knows how many days she could have survived out there. we're going to play the dramatic 911 call wh

j.p. morgans and the citigroups and the bank of americas. what it will do is affect community bankers. so all we're trying to do on our side of the aisle -- and this is what i was very emphatic about yesterday -- is we're trying to make sure that this bill is in balance. and i think we can do that. but, look, there's not much in this bill that's particularly offensive to wall street, and to say that those of us who want to get it right for everybody else in the country are defending wall street is just way off the mark. just not true. the second thing i would say is, there are many things in this bill that are good. there's some things that aren't so good that i think are being worked out right now. and that's typically what happens when we have a bipartisan discussion. we -- you know, each side brings their particular strengths to a bill, right? i mean, we all represent sort of different points of view and when we work together, we end up with a good bill. but one of the things that does trouble me, and i was very emphatic yesterday about this, is -- and again today and tomorrow and h

a bigger story broke just a few weeks ago when a guy told when j.p. morgan and hsbc would be shorting thousands of silver contracts in order to knock the price down. cftc did nothing. he told them again before hand when they would do it, how they would do it, and how much. his name was andrew mcguire, and a major media reported this. "the new york post" was the only one reported any of it and this is bigger then worldcom and many others. in the reporting from mainstream media about this? the story was last week. he was scheduled to testify in the hearing on march 26th and the canceled his invitation. it is just amazing that even have something that big and the battle comes down to the legality or illegality of having these huge, short contest on these commodities. i believe that the etf funds are basically taking people's money and then joining the products. but that is just my opinion. host: thanks. for the earlier caller, there are some who tried to get through try to denigrate what we're trying to do -- we apologize when profanities' tried to get in and w

it would prohibit bank of america and j.p. morgan to engage in trading.from buying and selling u.s. treasuries and that limits the market for u.s. debt it is an unintended consequence. there are thing in the bill that clamps down on wall street and i want to be clear, they do things that work, and let me give you another example. they will try to crack down on derivatives here n process of that they are to hurt main street. if you are southwest airlines and you won an insurance policy. you buy a derivative. if you are a manufacturing firm, you want to guard against big swings in the commodity prices . that is an interest policy. they may regulate these the way they were regulated out of the agriculture industry and in such a way to cause them to go up. >> the main argument is tran parency. stick around. we'll be talking about joe biden and inflating job it's rollback time! save money. live better. walmart. so kate you were stressed, a lot of junk food on the go and you were... a little irregular, sluggish. my daughter needed activia! so i gave it a try an

all this is this a revolving door from goldman sachs or j.p. morgan and then they become head of the fed or treasury secretary. working people will not have any money left. host: in recent weeks we have heard alan greenspan defends his record at the fed. are there any investigations going on about fed policy? guest: not any of sec investigations. that is more a dutchman that they made about housing, inflation. host: what is the new york city view of alan greenspan's tenure at the fed, louise story? guest: there are a lot of people who say that the low interest- rates field housing bubble. others say that this also had to do with the influx of money coming in from china. people here are still very flat. however, there is not that hero worship that used to be for him. host: least story has an m.b.a. froin advertising. karen scannell has a degree in economics and journalism from ford and universally -- fordham university. this story is very complex. what is the most challenging thing, kara scannell, about getting your arms around this? guest: the structu

the largest six bank holding companies, bank of america, j.p. morgan chase, citigroup, wells fargo, goldman sachs and morgan stanley, are certainly too big to fail. the term may also cover a larger set of institutions. after all, last year's much vaunted stress test for the largest bank holding companies covered 19 institutions and even that exercise didn't include many other systemiccally nonbank institutions such as fannie mae and freddie mac, insurance companies, derivatives clearinghouses and hedge funds. while many in government industry want to eliminate the term too big to fail, the fact is that these too big to fail financial institutions are bigger, more powerful and more interconnected now than ever before. only 15 years ago, the six largest u.s. banks had assets equal to 17% of the overall gross domestic product. the six largest u.s. banks now have total assets estimated in excess of 63% of gross domestic product. that goes from 17% of g.d.p. just 15 years ago to 63% of g.d.p. now. while some still argue that there are benefits to having ver

the first set of hearings had chief executives of four big banks -- j.p. morgan, citi, bankamerica, morgan stanley, -- citigroup, bank of america, morgan stanley, but not citi. basically looking at citigroup as an example of one of the extreme cases of securitization going on where mortgages, many of them subprime, bought by by years that otherwise would not be qualified for a home mortgage were packaged and sold by citigroup to investors. at such a high rate, so that when the underlying mortgages began to default, that created a cascading series of reactions appeared -- reactions. host: folks at "the financial times" were so intrigued, headline coverage on the fact that citi relied on outside advisers on its decisions on to jordan nations. did you find it interesting as well? guest: i found it interesting, but one of them things about securitization and why it is difficult to explain and one thing that frustrated the commission is the process got broken up into some different segments. you had the mortgage originators, you had the banks that bought the loans, th

so you have to wonder with close to a million dollars with goldman-sachs contributing, j.p. morgan chase, over $700,000. morgan stanley. if they're all going to be targeted and all the reform is going to come wall street's way is the president in an odd spot having accepted all this money and has to step on their -- the back of their next and say there's going to be some new rules. >> showing that he's not beholden to anybody, citibank which we should point out, we should say citibank or goldman-sachs, it's not the corporation per se. it's people who work for the organization or people whose families gave the money. citibank gave $701,000 and yesterday, they also revealed that they are being probed by the sec as part of, "the industry wide investigation into a wide range of subprime related issues." by the way, time warner which is the parent of cnn gave something like $590,000. >> kind of indian giving if you have to give it back. >> that's true. giving some controversy. i don't see them writing the check. that was a pretty -- that would be a pretty ugly precedent if you have to g

all this is this a revolving door from goldman sachs or j.p. morgan and then they become head of the fed or treasury secretary. working people will not have any money left. host: in recent weeks we have heard alan greenspan defends his record at the fed. are there any investigations are there any investigations going on that is more of the judgment they made about housing and how to manage the economy. i've not heard many things looking -- about anyone looking at things the fed has done. guest: people are questioning how much effect there has been bedew they are saying the bill interest policy rate really feels the housing bubble. some people say he only had influence over a certain number of reits and it had -- rates. people are still very split. there is not the kind of hero worship for him that there used to be predicti. host: at the new york times, she writes about wall street and finance bur. ñ(xn'4a

but it should be and the details of to be looked at by the cftc because it is entered into with j.p. morganankamerica or whoever, cftc needs to have a thorough picture of how risky or how far out each of the financial institutions is getting and if they get stretched, then theu! cftc ought to have the authority to pull them in a little bit. and under the language that she and i had agreed to, that would be done and i think here that is going to be done. i do not think there have been necessarily changes to that. so, that is kind of the areas where we have the potential for some disagreements. we will have some amendments today and we will discuss the bill and see how it winds up. host: senator chambliss, georgia's senior senator is here to take your calls. let us go to tim, democrats line from wisconsin. caller: hi. where were you between 2001 and 2006 and you were in charge and republicans had everything and everything was going bad? banks were selling these risky mortgages like they were going out of style and nobody said a thing about it. had the presidency and these sec in 2006-2008 and

the dichotomy between that difficulty and the headline in the new york times saying j.p. morgan is upbeat on the economy as it posts profit. for a lot of people out there, that are at odds with were there are. one is up beat and the other is profit. as a long predicate, i know that they highlight concerns about fiscal matters of the deficit. you said and i quote that it is a fact that it shows sluggish loan demand in many borrowers cannot qualify. that is the diagnosis of the problem. what steps to we take in the next short months or year that will have a positive impact on the job climate as it relates in a very particular way to small business. >> the small business problem is very difficult because we want small business to have credit but we want to make good loans. we do not want to go back to the weak lending standards before the crisis. as i discussed earlier today, it is a very high priority of the federal reserve to work with banks and the examiners to make sure that there is an appropriate balance and that loans are appropriately under written and as they have been suf

j.p. morgan's third quarter brought in like $4 billion as a profit.lican. caller: thank you for c-span. job creation. one of the things -- i am a retired manufacturing engineer and i have been in the business for 42 years. the big question i have is on salaried people, most salaried people are forced to work anywhere from 50, 60, some even 70 hours. if there was some cap put on to the amount a salary person could work there would be a lot more jobs working -- for people to enter the market. anyway, just a thought. thank you very much. host: now to georgia. peggy is a democrat. go ahead. hang on, peggy. i have to hit the button. caller: good morning. i have just been listening to the people calling in saying about the tea party and i don't know a lot about them, except they have a right to express themselves. but what i see on tv frightens me some times and i would maybe suggest that some of these people watch the mcvay tapes that going to be shown i believe later this month. it is something maybe we all need to watch. there is a fringe element that th

well, here some of the titans of wall street went down to boca raton, about 80 j.p. morganankers and started to wonder if there was a way to create derivatives that could bet on whether bonds or loans would default. okay, that's what they did. they were down in boca raton saying basically how can we do off-book accounting to figure out ways in which we can bet on these things. so that's what happened. and that was the start of this and brooksley bourne called them out on it, let's stop it and basically was prohibited from doing it. so what happened when we prohibited -- when we prohibited the derivatives from being regulated? well, one of the cftc persons said all the fundamental templates that are learned from the great depression that are needed to have markets function smoothly were gone. these are things we put in place after the last fiscal crisis. we put them in place because we knew we had to protect things. the other side of the aisle led the charge on that deregulation, led the charge on the deregulation of derivatives and said let's keep our hands offer. thraoft f

financial condition during the period of financial stress that led to the failure of their stearns and j.p. morgan chase. in march, two dozen a, responding to escalating pressures, the federal reserve -- in march 2008, responding to the escalating pressures, it established a primary dealer credit facility as sources of backstop liquidity for those firms. to monitor the ability of firms to repaid, the fed in its role as a creditor, required all participants in this program to provide financial information about their companies on an ongoing basis. two federal reserve employees replaced -- were placed on site at lehman brothers. beyond gathering information, these employees had no authority to regulate their disclosures, capital, risk-management or other activities. during this period, federal reserve employees were in contact with their counterparts at the sec. in july, 2008, chairman cox and i negotiated an agreement that formalize procedures for information sharing. corporation between the fed and the sec was generally quite good, especially considering the stress of the period. in particular, th

the dichotomy between that difficulty and the headline in the new york times saying j.p. morganwill have a positive impact on the job climate as it relates in a very particular way to small business. >> the small business problem is very difficult because we want small business to have credit but we want to make good loans. we do not want to go back to the weak lending standards before the crisis. as i discussed earlier today, it is a very high priority of the federal reserve to work with banks and the examiners to make sure that there is an appropriate balance and that loans are appropriately under written and as they have been sufficiently -- and they are likely to be paid. we certainly do not want a modern equivalent of redlining. we do not want to say the entire category of small business is not to receive credit or nobody in the state of florida is to receive credit because of the general category. part of this is the cooperation between the banks and the examiners working together and understanding each other to make sure that every loan is evaluated on its own 2 feet. you

the very first of hearings at j.p. morgan, citi, bank of america, morgan stanley, but not citi and everyone was asking where is it? we're told just a way. so right now they're looking at citigroup as kind of as an example of one of the most extreme cases of the securitization that's gone on. where mortgages, many of them subprime mortgages that were bot i buyers who had not otherwise be qualified for home mortgage. were packaged and sold by citigroup to investors. but at such a high rate that investors, when underlying mortgages if there's a big into default, that created a cascading series of actions that lp repair the financial system. >> host: the folks at the financial times were a trick so much it was front page headline coverage of the fact that citi relied on outside advisors on its decisions about securitization. did you find it interesting? >> guest: i found it interesting but part of the process, been difficult to explain to the public and one thing that has frustrated the commission is the process got broken up int

j.p. to forget the your man and my man business. "we don't want to fix it up." he sent word back to morgan.deals period." there would be a loud cheering section. maybe he can get republicans behind him if he does. maybe there are a few out there who have a picture of teddy roosevelt up on their wall. that's "hardball" for now. right now it's time for "the ed show" with ed schultz. >>> good evening, americans. and back to "the ed show" from new york tonight. these stories are hitting "my hot buttons" tonight. the arizona legislature wants president obama to show his birth certificate if he wants to be on the state ballot in 2012. well, that's on the heels of a harsh anti-immigration bill, but it's not about race. it's much more than that. and that's coming up in just a moment. >>> fox news is proving to be one of the republicans' most potent fund-raising forces. shocking new details on how much fox contributors have raised. and where they're going to do it to get the money. >>> plus michael steele's in hot water, again, after the rnc's latest spending report. they spent more than $700,000 on