and four months before lehman collapsed, he sent this letter to lehman's top executives. >> lee: "i'veu all year. i've been banging my head against the wall. i'm now putting it in writing." >> kroft: says "it requires me to bring to the attention of management conduct and actions on the part of the firm that i consider to be possibly unethical and unlawful." >> lee: yeah. >> kroft: what were you talking about, specifically? >> lee: well, in that particular letter, i was general. there were so many specifics. i could have written laundry lists. >> kroft: what kind of a response did you get from this letter? >> lee: it's like throwing a grenade. i wanted to wake somebody up, at least to address the topics. >> kroft: it worked. six days after he sent that letter, matthew lee was downsized, let go after 14 years. but lehman executives couldn't ignore the letter, and asked their accountants from ernst and young to interview matthew lee. >> valukas: and in those interviews-- we have the notes, which are part of the report-- he says very specifically $50 billion, repo transactions, moving mon

so after lehman everything is different. because we had veered and zigzagged so many times at that point. there was no hope of achieving some clarity of expectations about our policy. >> rose: okay, but i'm still not, did fallson make the right call? >> i disagree with the diagnosis of liquidity problems. i think everything stemmed from that. i wasn't close to the decision about lehman. or the decision about bear. >> there is also this, sandy weill stepped forward to say you should break up, you should break up the banks even though i spearheaded the drive to create these superbanks, i now think its with a bad idea. >> that sounds good but how far do you break them up. in 1948 when we had too big to fail was sort av nounced as a doctrine, those institutions if you just drew them-- grew them with inflation they would be $200 billion. so is $200 billion small enough. they were too big to fail in 1984 according to the comptroller of the currency. i think the only way to do it in a sensible way is to look at a failure, could you

david lehman is the managing director of commodity research and development at the c.m.e. group. he says these new financial participants are improving the market for hedgers like marcucci. >> bringing a much broader array of participants into the market globally, as well as, bringing more liquidity into the markets from investors has actually dampened volatility. as you look at it statistically. >> reporter: lehman says what makes markets volatile is uncertainty: the current drought is a good example. and today hedgers and speculators have instant access to information and can trade electronically 24-7. university of illinois agriculture economist scott irwin says that can make for faster moving markets. >> but overall you'd have to say on net it likely means just simply, more efficient quicker reacting markets to even more relevant information. >> reporter: for marcucci it now means spending a little less time on the plant floor and a bit more time monitoring commodity prices. >> i've gone from watching it maybe monthly, to weekly, to daily, to hourly. >> marcucci has assurance

thank you thank you very much and just through trying my guess today once lehman relaxed was bruised the former w.b. a heavyweight champion and that's it for now probably all of us if you want to have yourselves spotlight without someone in a bar and see what we sense of you next time just drop in our spotlight will be back with more firsthand comments on what's going on in and outside russia until then stay in our team and take thank you very much. mission free accreditation free transport charges free. range month free. free studio time free. download free blog counseling video for your media projects and free media oh god r t dot com.

it was lehman and bear stearns. companies that aren't banks that are making problems? >> you have to start with the understanding that capitalism is not about not having ups and downs or not even having a crisis. it's the impact of the crisis that you have to be mindful of. when you subsidize the banking industry and allow them to leverage up the crisis becomes more difficult. when you allow them to intermix the trading, high risk activities where it is win-lose with the banking activities which is win-win then you get bad outcomes. you have operational risk which is true for all major financial companies and i think the effect of this, i hope, will be far more constrained in the sense of you don't have an enormous subsidy then spurring them on to ever greater leverage. we'll hopefully correct the operational risk. but you're always going to have these events in the capitalistic system. it's how big you allow them to get. and then how well you are able to manage them because of their size in the crisis. >> i agree 1

that as best we could but now we're looking at insolvency or a liquidity crisis that's not at the lehman level it's at this pain level it's at the greek level it's at possibly the entire european union level and soon enough at the united states level because really this is always been a crisis of insolvency the central banks have done everything they can to keep the liquidity game going but what i'm looking at and what i'm seeing is that is trying as they might there are just many things that are outside of their control that they've been unable to get the credit markets really going again we've had absolutely flat credit growth for a while and that's once you do go into the the details a little it's a very uneven part of the down there and some real simple we're just not seeing the credit growth that is required to get this bubble back on track which means we have to deal with the aftermath i want to get to that that first you're saying that history shows that when countries are in the situation they end up printing they try to prop this up and my hearing you say that two thousand and t

is there a lehman moment in here or no? >> i don't think so. i think you had a chance of a lehman moment with knight capital thing. you had a chance of a flash crash ant crash and it didn't happen. >> remember that baron's cover? >> i do. >> how far off are we? >> i remember "business week" death of equities in '79 too and i can't help reflect with that with bill gross's statement on cnbc the other week. if you want to put a 14 multiple on next year's earnings of 118 you can challenge the all time highs of 1550. >> when you heard bill gross make that statement what did you think? >> i recall the statement he made a few years ago when he thought the dow was going to 5,000. >> a man can't change his mind? >> absolutely man can change his mind. make all kind of mistakes. the good thing about me i recognize my mistakes quickly. >> what's ben bern going to do? >> i thinknext month the fed will meet and do another batch of quantitative easing. >> you think it's coming. you don't think they hold off for political reasons in the argument now being and

since there are no defaults and i suspect, remember the underlying purchaser was lehman brothers.e wanting to settle for something reasonable. warren probably took advantage of that window. the larger issue you speak of is there reason to be concerned concerned about municipal markets these days an obviously there is. obviously there have been a series of bankruptcies in california. having said that the municipal market is probably the best and most stable market of all the markets americans can access. 70% of the debt is held by individual investors as opposed to inverse in most foreign lands. it is a good bet still. tracy: what is really interesting, just last thursday, california sold 10 billion again with a. about, in short-term notes. they had their biggest muni debt offering this year. people bought them. somebody is obviously still comfortable. >> and they did. if you look, tracy. what the yield offerings were on the bond, they were infinitesimal. there is flight to quality in this market. when your savings account is paying less than 1%, when the treasury bill market is so

in other words it's basically lehman brothers but it's ten times over because the failure would send dominoes falling that may very well be catastrophic for europe. we'll get through. it cannot fail. ever since they bottomed and began to rally in late july it's been taking stock markets around the world along for the ride. it's been acting like a bull that smashed through every bearish matador from $4.89 straight to nearly 7 bucks. some of that is because the stock has reached latin american countries. some of it is because they have been able to raise money in the bond market. highly unusual for a european bank. picked up $2.5 billion in relatively inexpensive capital yesterday. mostly they have rallied because it's a proxy for whether the germans will help save spain. you'd think germany would be eager to extend a helping hand. if the germans are cooperating with the faltering nations of europe, we will avoid a lehman-like failure and santander will head to $10. if they don't cooperate, we don't want to know what will happen. suffice it to say 100% of the latest rally in the s&p ca

one of the lehman brothers crisis, where was the board of directors? shouldn't they have replaced the ceo before the problem -- but to of countervailing issues. you cannot -- if you for the whole board and jail or you prosecute them, who will want to serve on the board of directors? >> and is more fundamental than that. when we started this session, i mentioned that there is a long history to where we got to where we are. but gm is sitting here in the front row. he can attest to the way that firm used to run, and all of the other wall street firms used to run. it was a different world. they different risk profile. there is not a pressure for quarterly performance of public firms are subject to. once you transform an industry from a private ownership, or people's own money is on the line every day, to public ownership with permanent capital, and all of the pressures for performance, it is very hard for a regulator to vote mata to our. the balding man is going on in these companies. and that -- to a monitor every single thing and that is going on in thes

remember lehman brothers -- name one person from lehman brothers. aig had derivative data. well, name one headliner from aig. outside the wall street world, most american citizens couldn't. those were faceless corporations that have somehow brought us to the brink of financial meltdown. and then we have bernie, a phase, a family, someone to be the target of all of their free-floating rage and anger come of this fence being betrayed because that is what he did rudy betrayed people who trusted him. well, that is the wall street did. it betrayed people who trusted it. but he was a ham and they hurt and it then. and i think it was the mood of the country that made him so much a target of public rage, rather than anything unique about them. >> broods stood by him in a lifetime. and he and she is still standing by at ernie had better things change. can you talk about that? >> it has changed and i was able to interview with this file for an article in the times about her life since then. she realized that her loyalty to bernie was costing her her family. now, why did she stay with

after the collapse of lehman brothers, we learned that an infinite increase in auto sales is nothing but an illusion. what's next? we need to shift to making a smaller profit for a long time. sports car drivers basically have a habit of enjoying various events and changing auto parts after they buy the car. i thought we should take advantage of that in the 86. >> toyota engineers took many bold steps to create the 86. tada hopes it will become a major test case in the future of car making in the changing auto market. >>> commanders order the crew of the battleship to okinawa with virtually no air cover. thousand of sailors died. now, a man who followed the battle as the it happened is trying to find out why the orders went out. nhk "world's" kristina gan has the story. reporter: near the end of the second world war this was the former headquarters of the combined fleet. members of the public can now tour the once command center, six or seven years after the war ended, a huge network of tunnels and bunkers, reinforced with concrete. >> translator: i had no idea tunnels like this exist

the staff report alluded to the economy, but from july 19, 2006, through september 2008, when lehman brothers collapsed, there was two years of a housing boom in san francisco. i know project scott submitted. -- i know projects got submitted at that time. after all the information, i think it is time to approve this. i would say we need to give san francisco small builders and equal opportunity, a level playing field, and not burden them with excessive fees, which make it prohibitive to build. i am opposed to the pro rated fee. look at the working group sheet, and let all of us roll up our sheets -- our sleeves and get this approved by the voters in november. let us get some housing built. thank you for your support today. president fong: thank you very much. any additional speakers? ok, the public comment is closed. commissioners? commissioner antonini: thank you. i agree with virtually everyone who spoke, and i think this is important legislation. i know we can opine on it today. it has been presented that it is hard for so many. it makes sense, logically, that it is hard to absorb

lehman brothers had celebrated its 150th anniversary and in 2001, mark zuckerberg was captain of hish-school fencing team. borders bookstores had $3 billion in annual revenue and meanwhile, kindle something you did to a fire and nook was merely a small corner of the room. most americans knew little about osama bin laden or al qaeda. at the time, i was u.s. attorney in san francisco and i myself being out here paid little attention to those terrorist attacks that were occurring overseas. today, our world can change in the blink of an eye. the effects of that change are felt more rapidly and more broadly than ever before. consider the current economic climate. when companies fail to recognize and adapt to change, they can go out of business almost overnight. law enforcement and the intelligence community face a similar challenge. if we in the fbi failed to recognize how the world is changing, the consequences can be devastating. lives can be lost. our national security can be threatened, and the balance of power can tip toward our adversaries. terrorism, espionage, and cyber attacks ar

after the collapse of lehman brothers, we learned than infinite increase in auto sales is nothing but an illusion. what's next, we concluded we need to shift towards making a smaller profit for a long time. sports car drivers basically have a habit of enjoying various events and changing auto parts after they buy the car. i thought we should take advantage of that tendency in the 86. >> toyota engineers took many bold steps to create the 86. he hopes it would become a major test case for the future of car making in a changing auto market. >>> saudi arabia's massive oil wealth has ushered in huge social changes, but not all of them are for the better. unemployment is rising and is now 40% for people in their early 20s. the government is concerned, but its measures are having little impacts. the problem? it seems that young saudis are just not keen on working. we have more. >> in saudi arabia they held their first ever job fair. organized by the government, it featured 60 saudi companies in a range of fields from construction to private security. >> translator: we intend to use all mean

investment bank lehman brothers. economists say the lower figures are due to china's weak exports and domestic demand as the debt crisis in europe continues. the officials also announced last month's retail sales in china. the data showed only a 13.1% rise compared to a year ago. it indicates weaker personal consumption. economists are concerned over a possible decline in corporate earnings. people are now expecting more economic stimulus measures such as further monetary easing. >>> a global food agency says a drought in the united states has raised food prices worldwide. it's warning of tighter grain supplies if the unusual weather continues. the united nations food and agricultural organization says its food price index rose 6% in july compared to the previous month. by category, the prices of grains, such as corn and wheat, jumped 17%. the fao says the condition of the u.s. corn crop is expected to worsen as the drought continues. it also predicts a poor wheat harvest in russia. the agency says that from 2007 to

>> executives of lehman brothers. take a look at the bankruptcy report filed against them. that provides a road map for financial fraud. it is for whatever reason prosecutors are unwilling to bring those charges. >> comments? observation? >> my observation is that, you know, this is type of individual you will get to come in and talk about some of these issues. it is very unfortunate. >> if there -- >> a lot of hyperbole. >> if there was an investor speaking directly to you while the words may be different, the anger may be the same. >> no. and i -- we all hear that. i mean -- when we have a board meeting, we start talking about mistakes and errors and where we are, it is very disappointing. and we are very serious about fixing it. you have to fix it issue by issue. some of them are just -- >> andrew cuomo made a comment to me once. he said people will go back in the water when they know the shark is dead. should someone have been indicted after lehman brothers? >> i don't have the facts on that. you know -- >> how can you not have the facts? how do you not know the facts?

it has expanded by buying some operations of lehman brothers four years ago. through these efforts nomuir ra is hoping to boost its interest from some $586 million in fiscal 2011. nomura is set to announce the plan next week. >>> here are the latest market figures. >>> americans have heard the name mitt romney for years. they've read about him in the papers and seen him on tv. romney has gone before the cameras again to re-introduce himself to voters. he capped off the republican national convention by accepting the party's presidential nomination. nhk world reports from tampa, florida. >> reporter: mitt romney stepped to the stage under the glare of lights and the flash of cameras. >> i accept your nomination for president of the united states. >> reporter: the convention provided republicans with an opportunity for makeover. voters have seen the candidate. many wonder about mitt romney the man. >> to make that choice, you need to know more about me and where i lead our country. >> reporter: national polls suggest romney is lagging behind the president in lik

and of the euro at the madrid summit in ninety five from then to two thousand and eight the lehman crisis germany. depreciated or devalued in real terms as we say by having a lower inflation rate than the others in europe by twenty two percent or twenty percent in that order of magnitude for a decade with a decade of stagnation is the possibility not a pleasant one germany had its own crisis on the euro and recovered only after the financial crisis and a similar crisis is foreseeable for spain so if spain wants to do it that way in the hard way they are invited to do so but spain is too big to be bailed out in a similar way as greece as greece received two hundred fourteen percent of g.d.p. as aid how can we do that with spain these sums become astronomical too big for the rest of europe and i think everyone knows that how much deliberation can really afford any and now on the on what to deal how the problem you the problem of the southern european countries total bank and government debt of twelve point five trillion euros is too big for germany to to be solved. germany's g.d.p. is two a

earnings showed a profit for the first time since the financial crisis that followed the collapse of lehman brothers that's owing to the ecocar subsidy program and brisk car sales in asia. they plan to exceed 10 million units for the first time. despite the strong latest quarter, a toyota executive was guarded about the outlook. >> translator: various risks lie ahead, including a strong yen. so at this moment, we can't help to be cautious on our outlook. >> the company plans to intensify cost-cutting efforts in order to overcome these difficulties. >>> let's take a look at the latest market figures. >>> much of the work to help people in japan's northeast recover from last year's disaster has focused on urgent needs. housing, employment and infrastructure, for example. but the little things matter, too. a man from tokyo understood that after spending time in one hard-hit city. so he focused on creating a space where locals can gather and forget about their troubles. at least for a short while. nhk world's yoshiko nokata has the story. >> reporter: few things say summer quite like this. kids

earnings showed a profit for the first time since the financial crisis that followed the collapse of lehman brothers. that's owing to the eco-car subsidy program and brisk sales in the united states and asia. this year they plan to produce ten million units. despite the strong latest quarter, a toyota executive was guarded about the outlook. >> translator: various risks lie ahead, including a strong yen. so at this moment, we can't help to be cautious on our outlook. >> the company plans to intensify cost-cutting efforts in order to overcome these difficulties. >>> japan's financial regulators have issued an order to nomura securities to improve its operations. this comes after the firm's employees were involved in leaks of privileged market-related information. salespeople at the japanese brokerage allegedly leaked confidential information in 2010 to third parties, including banks. the insider stories were about three firms that plan to issue new stocks. the third parties then made illegal profits through insider trading. the financial services agency says that sales staff at nomura gained

bear stearns and lehman because we're not talng toxic assets here. knight trades in and out of billions of shares every day. and it's plain vanilla. it's not the toxic stuff you have to worry about what the fact and say oh, my gosh could this stuff blow up. no, if they have addressed this technical issue, which i'm sure if t.j. says they have, then this is a positive going forward. >> steve grasso the system may have worked in this case but that doesn't mean it's any easier to take or accept as an investor these days. >> i think the rest of the panel has touched on the 50,000 feet up issues. i think bringing it back home to a trading event. i think when you say that's the crux of all this, you have to protect yourself. a lot of us have that buy and hold approach. i think we're going to be okay here but a lot of these events are tradeable events. i'm not saying that you want to exacerbate the issue and run up something in light of somebody else's wrongdoing. when you're a home trader there's no secure investment. you have to trade it with limits. that

glenda lehman and other parents called police about possibly moving the camera to a better spoo...o far... no response. they now plan to take their concerns to county councill glenda 3:10 we're just really concerned that one of our students who is a new driver is going to have this additional challenge where it's limited sight already 19 for now.. it's just something drivers will have to deal with... like it or not. in towson, myranda stephens, fox45 news at ten. police... did... make an arrest ... last fall... involving... aavandalized... speed camera..../ thh... thanks... to some nearby... school cameras. 3 baltimore city police are fighting back...there are reports tonight that the victims in a double shooting last night......are related to the suspect in a triple shooting on wednesday......and police are trying to stop more violence from happening happeningfriends and family members gathered outside the home on linnard street this evening...remembering the 3 victims shot there wednesday night.two men...and a woman...were hit by gunfire.. the two men...died. thursday night...a m