they came po lehman brothers a they needed $10 million lehman brothers did trational vestment banking lehman broers was a black-tie investment bank ad they raised that $10 million, they gave it to campbell's so and they sold bonds and stocks ove here to do it. they made a fee, and that fee is the traditional gehsmann thanking fee, a traditional business creates jobs. that is the moving business and what we started to see on the trading floor in 2004, 2005 and 2006, you could clearly see was bloodcurdlg scare through the yes going forwa, lehman was getting deeper and deeper into what is called the storage business. they were taking bigger bets. they were getting long assets, commercial real estate, residential real estate that they could not sell and they were trying to chase the big boys. they were trying to chase@@@cúúe glass-steagall act, allow these big commercial banks toompete against lehman sipa lehman brothers and a very, very dangerous position because now lehman brothers is a small to mid-sized investment bank and no we have, bank of america, all these large peanuts of commer

of lehman brothers rejected the offer and the following days of the feud with the bankruptcy of lehman brothers. that's an interesting thing to know from the asian perspective. on to hong kong with emily.. >> thanks, adam. and we saw the hang seng index ending lower by about 1%, 20,932 with mining and oil stocks weak. but one year ago today the hang seng index was at 19,351. what does that mean? it's gained about 8.6% since then. we usually track the dow and the u.s. markets, butut the hang se index also has a tendency to follow what's happened in the shanghai composite. today it managed a gain of 1.2% following on from the gains of friday, 2.2% higher onon the august economic data. but one year ago today in the shanghai markets, we have put on 45% since september the 14th. the shanghai composite did manage to hit a one-month high breaking the 3,000 threshold. and a strong day today for the shanghai market. china's banking system has been more conservative. so the mainland banks, rather, unscathed from the financial crisis. but exports from the united states and from europe obviously t

i corrupt here, and the story o lehman brothers around that weekend in september, really was the day that capitalism changed forever. our world really changed fever adt was a tou weekend not only for the lehman employees but for so many people around the country that didn't really rdalize th their lives would change, businesses, credit nes had been cut on credit cards, of 401(k)'s had become 201(k)'s and mt of t problems emanate from one of the st mysterioes places on wall street, the 31st floor of lehman brothers and it was a tragedy that never ever should have happened. i was sitting there on that weekend, september 15th,nd i wasn't reay sitting there. i was down onhe map. fl like mohammed ali was standing up on top of me and the referee is giving me the counts, and there were so man of us that were dow but i was really dowl. i wanted to dig deep down inside into their preserve that we all have plans to try to make lemode out of lemons so to speak, and i reaed out to james n. patrick and they were nice enough to hear me out, give me the time and insure nuremburg was also extremely h

bancorp in a head lock and say bailout lehman brothers and the reason is after lehn brothers failed to close to $700 billion worth of commercial real-estate, residenti real-estate, stocks bonds oil, gold, everything. lehman had tons and tons of assets and when you have a mpany in bankruptcy you hate a bankruptcy reorganizing come in and day just are interested in selling assets and on winding risk and thiwas the most rrifying unwinding in the history of bankruptcy. there was no preparation. the documents for the lead in bankruptcy, the initial document i talke to one of the lawyers there is on the 15 pages long. this is almost a 700 billion-dollar bankruptcy, and the initial document they presented to judge peck of the accord was only 15 pages long. this document suld have been 300 pages long to articulate h they were going to unwind this risk so what happened was after lehman failed you had some winding that was so nasty. that's why when you were sitting in home in october, november and the stock market was going down every daat 2:00 another00, 400 points that is because lehman was in

it's one year since lehman brothers collapsed, it changed the financial world forever. september 14th, 2008, lehman employees were seen walking out of the firm's new york headquarters carrying boxes unsure about what the future held on that same sunday b of a and meryl werill were working o deal of their own. >> i remember that. i want to talk to peter about a lot of things. spending the day with peter cohen, and i want to -- it's so hard to remember all of the permutations of what lehman brothers was and when you ran it. i just wanted to get some historical perspective on it. it was the oldest investment bank in the world. that was when i worked there and i worked there and i still don't know all of the different permutations. we sent out that book to when we'd make a cold call called the -- >> 1850. >> 1850. and then it was finally, when was it first acquired? >> it was acquired in '84, 1984. >> by shearson? >> and we changed it to shearson lehman brothers. and you were running shearson at the time? so you bought in lehman brothers at that time?? >> right. >> and then

former lehman brothers vice president. >>> on that anniversary of lehman's collapse, president obama heads to wall street. what does he hope to accomplish. we will look ahead to monday's speech by the president. stay with us. >>> welcome back on monday. which is one year to the day that lehman brothers collapsed. president obama will give a speech at federal hall right here on wall street on the financial crisis. chief washington correspondent john harwood with a look at what the president hopes to say. >> i think he's got two purposes to the speech. one of them is to remind people where we've come, how far we've come. he doesn't want people to forget that he took office at a time when the economy was cratering, when the deficit was approaching $1 trillion. and he wants them to view his economic recovery efforts, and all the government interventions that he's undertaken in that context. the second thing i think he wants to do is give a big push forward to the financial regulatory re-write that he has proposed that hasn't really moved anywhere in congress. it's been secured by the foc

his visit comes on the one-year anniversary the collapse of lehman brothers. dan harris has more. >> reporter: one year ago this weekend government officials were trying to decide whether to rescue lehman brothers, a bank previously considered unsinkable. the government decided to let lehman collapse and that triggered what is being called the great recession. since then the economy has shed nearly 6 milli jobs and the value of the average existing home has decreased by about 15%, though many economists say it would have been worse without the $700 billion bailout of wall street's other mor banks. stocks, too, took a nosedive after lehman collapsed dropping almost 5,000 points at the bottom but today they're on a rebound, though still 1,800 points lower than they were a year ago. americans have started cautiously to peer at their 401(k) statements once again. >> reporter: since the bott six months ago, everyone should be feeling a lot better about their nest eggs. >> reporter: if you're more than ten years away from retirement, many analysts say it is time to

this comes as the first anniversary of lehman brothers declaring bankruptcy. this led to a near meltdown of the financial system and triggered a global recession. the government spent massive amounts of money to prevent the system from fully collapsing. >>> president obama says he is confident the congress will pass a good health care bill. >> i have no interest in having a bill get past that fails, that does not work. >> mr. obama told cbs he thinks the health care reform plan will control the deficit. he criticized republicans who he says are trying to block health care for political gain. >>> those for and against the health care plan made their voices heard this past weekend in d.c. >> this is a moral issue and it's time to fix it. >> this will be the end of america. >> thousands of people on saturday marched on the capitol to show their opposition to the health care plan and growing government spending. yesterday, hundreds gathered on capitol hill to show their support for the health care plan. >>> osama bin laden has a new message. on a new tape, he says

americans had decided not to save lehman brothers. ben bernanke is a cautious man who chooses his words carefully and says it's very likely the recession in the u.s. is over. in one minute, we will hear from bbc correspondent across the globe. [audio difficulties] >> a day after scolding wall street, the president is trying to sue the main street. [audio difficulties] >> you work hard, you meet your responsibilities, you deserve better than the attitude that has prevailed in washington and wall street and sometimes in detroit for far too long. an attitude of values well over work. >> easy enough to say, but harder to deliver. but this might be a sign things are improving. this -- a [audio difficulties] >> from a tent -- [audio difficulties] the technical and to the recession. ben bernanke said is that -- said it is uncertain how fast recovery will be. to the armies of unemployed, that is bad news. barack obama said his job is to get everyone a job. >> i'm not talking about just any job, but [audio difficulties] >> the world's biggest

>> it wasn't a matter of them want to go buy lehman brothers. it was them wanding to unload their crappy lehman brothers assets. they looked at barclays' purchase of lehman brothers as an opportunity to unload some of their crappy collateral. and barclays wouldn't do it, and hence the $7 billion. >> it seems like in your article, you know, you're trying or succeeding in putting a didn't in the image of jamie dimon. do you think he's not as masterful as wall street thinks or more ruthless? how would you say we have misperceived him? >> i think the latter. i think that jamie dimon is presented in many cases as sort of a quasi-i public servant. he's a banker who was looking out for himself, which means to preserve as many as he possibly can. i think if you talk to some lehman brothers, they look at jamie dimon as a ruthless guy. >> just real fast -- >> there's nothing wrong with try to go do the beth for your shareholders. >> he bought it for less than a penny, so he's the real winner? >> bob diamond definitely emerges as one of the winners of last

this as the first anniversary of the collapse of lehman brothers. there bankruptcy lead to a near meltdown of the financial bankruptcy. the government spent massive amounts of money to prevent the system from foley collapsing. >>> president obama says he is confident congress will pass a good health care bill. >> i have no interest in having a bill to get past that fails, that does not work. >> mr. obama told cbs he thinks the health care will control of the deficit. he criticized republicans who he said are trying to block health care reform for political gains. others made their voices heard this past weekend. >> this is not a political issue. it is a moral issue. >> if he accomplishes health care, it would be the end of america. >> thousands of people on saturday came to pennsylvania avenue to show their opposition to the health care plan and growing government spending. crowds were estimated in the hundreds gathered on capitol hill to show their support for the health care plan. >>> osama bin laden has a new message. he said the commander in chi

. >> susie: today marks one year since the lehman brother's bankruptcy. so how's wall street doing now? we get some answers in tonight's "lessons from lehman." >> paul: investors put best buy shares on sale today. the stock dropped 5% as the electronics retailer posted a bigger than expected drop in profits. >> susie: more people are staying unemployed longer and that's leaving many americans with hard choices: pay the mortgage or pay for health care coverage. >> paul: i'm paul kangas. >> susie: and i'm susie gharib. this is "nightly business report" for tuesday, september 15. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. thank you. >> susie: good evening, everyone. ben bernanke declared today that the recession is "very likely over." but the fed chief cautioned that the u.s. economy still is very weak and many americans will continue to struggle to find jobs. speaking at a conference in washington, bernanke explained that technical indicators show the recession has

. >> susie: the speech marks the one-year anniversary of lehman brother's spectacular failure. but what if lehman had survived? would the crisis have cooled down? we answer that question and more in "lessons from lehman". >> paul: not so fast. bank of america thought it had a deal with the s.e.c. to put those pesky merrill lynch bonuses to rest. but a ruling today could land everyone involved in court. >> susie: then, from tires to auto parts to chicken. there could be a trade war brewing with our biggest supplier and buyer: china. >> paul: i'm paul kangas. >> susie: and i'm susie gharib. this is "nightly business report" for monday, september 14. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. thank you. >> susie: good evening everyone. president obama delivered a stern warning to wall street today: "we will not go back to the days of reckless behavior." those harsh words came on the eve of the one-year anniversary of the financial crisis, when lehman brothers collapsed. speaking at federa

. >> it was a year ago we saw those lehman brothers packing up and moving along with their stuff. i read some of them are going to get together this week at a bar near lehman brothers for a meet and greet. there's a pizza place nearby that had to lay off five people because lehman was such big business for them. >> it's so odd to think it's been a full year now. when we come back, kanye wess buffoonery during the mtv tribute awards.

around 2001, 2002, 2003 lehman brothers got deeper and deeper and deeper into the storage business. complex trades and credit derivatives, credit cmbfs like complex securities in commercial real estate, residential real estate. >> reporter: moreover says lehman lawyer harvey miller, lehman was buying these real estate bonds on credit, short-term loans it took out with a meager 2.5% down. >> it relied entirely upon credit. and it was leveraged very high. at one point i think lehman was 40 to 1. >> reporter: 40 to 1 meaning that for every dollar that lehman put in, they borrowed 40 from someone else. >> exactly. when the market chanced 3%, the company like lehman goes from let's call it solvency to almost insolvency. right royal alley -- and still be ridiculously work, i could do that. >> reporter: angry as many still are, people on the street may not understand the nuances of modern financial engineering. but then says mcdonald, neither did the top brass at lehman. >> they had a deep, dark secret. they didn't want to be exposed for all that they didn't understand. we had lost nuclear

and the lehman brothers's spectacular collapse turn the world on its head.look back to september 2008. what has been learned since the day the money stopped flowing? >> the worst financial crisis for 60 years was manufactured here on wall street with a frenzy of converting low-quality mortgages and business loans into allegedly high-quality investments. when those investments turned out to be poisonous, the losses were colossal for the banks from switzerland, the u.k., and here in the u.s. by the second week in september last year, lehman brothers creditors were demanding their money back, threatening viability. >> it was inside these seemingly impregnable walls of the new york federal reserve, part of the u.s. central bank, that lehman brothers would fail. >> refers to discover the size of the problem, the equity it would take to support limon brothers. billion. i began to believe because i have been involved in the long term capital that was karen a unlikely to happen without government support and no government support -- that was a very unlikely to happe

americans had decided not to save lehman brothers. benernanke is a cautious man who chooses his words carefully and says it'sery likely the cession in the u.s. is over. in one minute, we willear from bbc correspondent acrs the globe. [audio difficultie] >> a day after scolding wall street, the present is trying to s the main street. [audio difficulties] > you wo hard, you meet ur responsibilities, youeserve better than t attitude that s prevailed in washington and wall sreet and sometimes in detroitor far too long. an attude of values well over work. >> easy enough to say, but harder to deliver. but is might be a sn things e improving. this -- a [audio difficults] >> om a tent -- [audio difficulties] the thnical and to the recession. ben bernanke saiis that -- said it is uncertn how fast recove will be. to the armies of unemployed, that is b news. barack oba said his job is to ge everyone a job >>'m not talking out just any job, but [auo difficulties > the world's biggestconomy is growing again, but it wl not feel like that to the peo

a look back at the stunning events of the failure of lehman brothers and the shock wave still being felt. >>> police -- plus, if our economy is off life support, how is the health of the patient today? >>> the impact to me was really how bad or not how bad, but how do you contain this contagion? is there a way to build a buffer that it stops? with lehman and clearly it didn't. >>> a year ago this weekend, lehman filed for bankruptcy leading to a massive intervention in businesses and a stunning slide in the financial markets, and where are we now and are there lessons to be learned? joining us now to talk about that is joseph stiglitz, nobel prize winning economist and chair of the white house council of economic advisors. liz ann sonders, charles schwab chief investment strategist. and the js journal economics editor david wessel, author of "in fed we trust, ben bernanke's war on the big panic." great it see you all. >> nice to be there. >> good to talk with you. let's talk about this historic, really, moment in time that we were september 2008. professor steglitz, what have we learned

year ago, this weekend, government officials were huddling, trying to decide whether to rescue lehman brothers, a bank previously considered unsinkable. the government decided to let lehman collapse, and that triggered what is being called the great recession. since then, the economy has shed nearly 6 million jobs, and the value of the average existing home has decreased by about 15%. though many economists say it would have been even worse without the $700 billion bailout of wall street's other major banks. stocks, too, took a nose dive after lehman collapsed, dropping almost 5,000 points at the bottom, but today, they're on a rebound, though still 1800 points lower than they were a year ago. americans have started cautiously to peer at their 401(k) statements once again. >> since the bottom six months ago, everyone should be feeling a lot better about their nest eggs. >> reporter: if you're more than ten years away from retirement, many analysts say it is time to start taking some risks in your retirement account again, including stocks. but what about wall street itself? what has been done

let's say lehman brothers were saved. then what? >> i think we still would have had a financial crisis. i just think it would have been a little more orderly. the tsunami that the default created probably lead to other bailouts. are not think anyone will ever know to what extent we could have gone in this credit crisis. without question, we had to avert a credit problem. neil: you argued it was the perfect storm. a confluence of events on like we had seen. are we over? >> i do not think so. i think there are consequences to the debt we have put on the u.s. balance sheet. we are probably guaranteeing somewhere around $20 trillion of debt. neil: so we are digging a pretty deep hole? >> a pretty deep hole we have to get out of, and we do not want that legacy to go down to the next generation. neil: wall street is a funny business. no government involvement unless it is to help us. but when it comes to health care, no health care. >> my view is that with the health-care issue, once you take tort reform off the table, you politicize it.

because let's face it, almost everyone agrees that the lehman brothers failure was a disaster. and i think you can document that it is. now, i say "almost" because you have people like senator richard shelby who will still say "let them fail, let creative destruction work its way." there's a very vocal crowd out there. but i saw a recent poll of 40 economists, all of them said it was disaster to let lehman fail. their argument was we didn't have the legal authority to do it. i'm not saying they're lying or exactly wrong but it's not that simple. they could have found out a way to deal, which i spell out in the article. >> rose: which is? >> well, you needed a bear stearns kind of deal, a rescuer like j.p. morgan. >> rose: a rescuer with a guarantee like bear stearns. >> exactly. >> rose: well, wait, before you say that, they argued that they were out trying to sell it. they weren't but there were a lot of people and they were encouraging people to make a bid and there were no bids coming in. at least you had j.p. morgan coming in with a bid when they found out they had a girn t

. >>> it was one ring year ago today that financial giant no carrier lehman brothers collapsed. part of a financial no carrier ring crisis that rocked this country and the trig foresweeping government intervention in the financial no carrier > markets. today president obama heads to on ring wall street to push his no c overhaul plans and whitt johnson is in ring washington with more. no carrier whitt, good morning. >> reporter: good morning. government spending is the highest it's been since ring world war ii. that spending has been hotly ring debated, but president obama today is expected no carrier to lay out his plans ring no carrier no carrier to > scale back. ring president obama heads to wall street today no car to outline his strategy for ring no car preventing another financial meltdown. >> when ring i walked in the ring banking system the no carrier ring financial system was on the verge no carri of collapse. rfs it was one year ago this week the nation's fourth no carrier largest in-vement bank no carrier lehman brother, was on the brink of > failure. ring after rescue

the government let lehman brothers died. it decided to bail out the other corporations on a scale never seen before. >> after lehman brothers failed, banks around the world stopped lending almost overnight, and people stopped spending. from mexico to australia, governments stepped in. the u.s. announced a record stimulus package worth $937 billion. european governments also took action. china spend more than half a trillion dollars on the stimulus package of its own. >> the leaders of china were worried about unemployment, that the world lost its appetite for chinese-made goods. the stimulus package offered an alternative source of employment for migrant workers. massive infrastructure projects are now under way. some say it has been a success. gdp was healthy in the first six months of the year. others question whether this was money well spent, and wonder how long the positive affects of the stimulus package are going to last. >> which brings us back to this weekend and the meeting of g-20 finance ministers in london prepa

lehman brothers was on the brink of failure. after rescuing fannie mae and freddie mac a few days earlier and bear stearns the previous month, the federal government decided not to bail out lehman. credit locked up around the world. unemployment rate doubled to nearly 10% and financial markets tanked. >> the president is expected to use lehman brothers as a prime example of why banks need tighter government regulations. he's urged congress to pass legislation for months. today he's expected to tell them stop stalling and get it done. >> reporter: the president will also talk about the steps his administration has taken to stabilize the volatile economy. >> i've essentially taken the program that was voted on by the previous congress, supported by the previous republican president, and we've made it work. >> but making it work has come with a price. >> wall street itself has changed. lehman brothers is gone, bear stearns is gone. merrill lynch isn't an independent company anymore. >> reporter: the white house hopes to scale back i

it has been one year since the collapse of lehman brothers sent the u.s. economy into a nosedive and a new poll says americans not too optimistic. it fined eight out of 10 americans surveyed thinks the economy is poor -- it finds that eight out of 10 americans surveyed think the economy is poor. it report from project economy in washington. >> a year after lehman brothers collapsed, starting the tsunami that crashed over the economy, president obama is pushing for tougher financial regulation and he is doing it from wall street. the president wants congress to give stock -- get stalled financial legislation moving again and he wants to remind the nation where we have been. general motors is survived its bank -- baptism by bankruptcy. $50 billion of helped by its new co-owner, and uncle sam. >> the government task force was very helpful. they were entirely focused on one thing, and that was to make general motors a viable enterprise. >> boyd by cash for clunkers, gm is hoping to jump-start sales again by operating a 60-day money back guarantee. the presiden

lehman brothers was on the brink of bankruptcy. this morning, we look at what's changed on wall street. are they still taking those big risks. >>> and also, a unremarkable story about a 15-year-old. she stands less than 2 feet, 23 inches tall. we're going to take a look at her brave life. >>> your little boy like thomas the tank engine. >> hi's a little bit old now. >> he may miss the transformation. this be loved character is getting a new look. our reporter snagged an exclusive first interview with him. >> exclusive. >>> also, shocking, women's semifinal. the u.s. open last night. serena, after a crucial call against her. she, also threatened, shall we say, shove her ball down someone's throat. that's cleaning it up. >> ultimately cost her. >>> claiborne is here. >>> good morning, everyone. in the news, coalition forces have killed dozens of taliban militants in western afghanistan. the fighting comes after three american and seven afghan troops were killed in a complex ambush involving gun fire, two roadside bombs and rocket-pro

but it was lehman brothers that hank paulson and the bush administration allowed to go under. forth about what happened. what's not under debate as far as the administration is concerned is the need for more financial regulation. and the president's package is on capitol hill. i have to tell you, it's sort of being picked apart at this point. initially, it drew criticism from republicans and democrats. it was giving the federal reserve in their view too much power. alterations have been made. there's still a lot of other things going on on capitol hill. you may have heard of the health care debate. >> a little something called health care reform. >> this financial services regulation package to become more strict on wall street is languishing in committee at this point. >> thank you very much, mike. to talk about what this means, dylan ratigan, host of "morning meeting" is here with me now. we're waiting on the president. we're told he's going to speak at noon. but mike makes the point of all points. he's bogged down with health care reform. how do you get anything done? nothi

the one-year anniversary of the collapse of lehman brothers.f the nation's banks and economy now? here's what treasury secretary geithner told congress this week. >> i think the u.s. financial system today is in substantially stronger shape than three months ago, six months ago, nine months ago and on the eve of this recession. >> a financial reporter or "the new york post" joins me now. good morning. >> good morning. >> do you agree with that? >> yes. it is true. that the financial system is in a better position than a year ago or six months ago. banks trust each other again and credit is flowing better. the reason that's happening is because the government supported these financial institutions in a massive way. trillions of dollars and kinds of guarantees and investments and that sort of thing. we have financial stability but come at quite a price. >> are we guaranteed that the economy will continue to tick up upwards back on the path to precover ri? >> no guarantees. we are probably growing the second half of the year. inventory's got so lo

it is the fall of lehman brothers. firm's former headquarters in new york for a live report. [ birds squawking ] [ moos ] [ man announcing ] if you think about it, this is what makes theladders different from other job search sites. we only want the big jobs. welcome to theladders. a premium job site for only $100k+ jobs and only $100k+ talent. >>> it was one year ago that the financial world found out lehman brothers wasn't going to survive and wasn't going to be bailed out by the government. cnbc's bertha coombs is live outside the former lehman building now the epicenter of barclays capital in new york. bertha? >> reporter: thanks very much, michelle. you know, the core of barclay's capital is very much built on a lehman foundation because many of the traders who were here a year ago working for lehman are back at their desks today, though a lot of them thought they'd be gone. >> we kind of prepared for the worst all week watching the stock slide. >> that's bond trader jeremiah stafford. you recall last year he had

. >> reporter: lehman brothers had declared bankruptcy.he government had pumped tens of billions of dollars into insurance giant aig, and the market plunged amid questions about the real value of trillions of dollars of securities. that was the situation one chaotic week a year ago. >> serious consequences from misjudgement. >> reporter: a year later, various proposals are being put forth in congress and elsewhere to change some wall street habits. today, for example, the federal reserve confirmed to the newshour and other news organizations that it plans to place curbs on compensation policies at major banks. the rules would affect traders, mid-level and top executives, and are intended to discourage excessive risk-taking that is often tied to pay. this afternoon, president obama's top economic adviser, lawrence summers, echoed that sentiment in a speech at georgetown. more broadly, he called for tougher oversight of wall street, to prevent the need for future bailouts&h >> it is wrong that thousands of taxpayers should be at risk that fo

today lehman brothers declares bankruptcy. >> the world had changed when lehman brothers went down. knew that the financial world wouldn't be the same. i'm not sure if i really feared my own future. i feared the future. luckily, there wasn't a lot of panic in our office, but there was certainly a lot of stress. this was a situation that was pretty much telegraphed like somebody winding up like this getting ready to hit you. my first instinct was to sell because unfortunately lehman was so intertwined with everything else that was going on. >> everybody that you ever slept with, if you're one of these financial institutions, you have all the disease that they have from anybody that they slept with. every firm that had ever done a trade with lehman, which was everybody, let's face it, was going to be affected by this. so our first instinct was to follow that "fast money" trade. and that was to buy puts on all of those other financials. i'm sure overall in my portfolio i had losses that week. i know the trades i made were very profitable trades. but like everybody else, in my 401(k) an

banrp and say bail out lehman brothers. that is important because you had close $700 billion worth of commercial, residential real estate, oil, gold, lehman had tons of assets. when you have a company going into a bankruptcy, there reorganize there will come and and they're interested in selling assets and this is the most horrifying and wind in the history of all bankruptcy is. no preparation. th documents, the initial document it is only 15 pages lo. it is almost a 700 billion-dollar bankrtcy and the initial document they present to the judge in t bankruptcy court was only 15 pages. it should have been 300 pages to articulate how they would unwind the risk. after lehman failed you had the end line that was so nasty that ishy when you sell a home october november and remember how the stock market went down every day at 2:00 20400 points because lehman was then there doing the unwind briing down the minoes literally and watching them fall and tha person many people. if they have been sed you could have a situation where the

our reporter explains. >> it was a financial tsunami, lehman brothers failed, aig was on the brink of failure, and washington mutual was taken over night. >> during the fourth quarter of last year, we were in a real panic. >> this economist remembers it all too well. now a year later, things have really changed. he hopes nationally and locally growth is expected in the third and fourth quarter thanks to government stimulus. >> the cash for clunkers program, the first time buyer tax credit for holes. their other stimulus and subsidy programs. >> you have to look at the price right to move. >> the executive director of one organization says the first time home buyer tax credit as help to boost sales. >> i think it will continue throughout this fall but in the wintertime when things normally slow down, unless we see an extension of the tax credit, we may see something different. >> financial analyst says people are saving more than ever before. investors can find good deals. >> last year fear iran's supreme. now it seems to be intelligent investing, finding a good quality company we are

that's when the collapse of lehman brothers sent the dow plummeting 500 points in just one day.emember that? >>> investors have a trade dispute between u.s. and china. china has complained to the world trade organization after the obama administration ordered steep new tariffs on chinese tires for three years. although china may retaliate, analysts say a full blown trade war is unlikely while the two economies are almost completely interdependent. >>> meanwhile, a judge has rejected a $33 million settlement between the sec and bank of america over the government's accusations of inadequate disclosure by the bank. it all stems from billions of dollars in bonuses paid out to merrill lynch employees just before the company was acquired by bank of america. at the very same time b of a was being bailed out by taxpayers. >>> beginning next year, home depot will begin selling martha stewart brand. it comes with stewart's deal with k-mart which has been in place more than a decade ends in january. >>> federal officials are warning small businesses to prepare for the fallout from a new o

lehman brothers was allowed to become a grossly mismanaged monarchy. and really in essence, a giant deadly domino that hurt so many people watching out rigs nouthe now. we have these dominos that are allowed to become bigger and bigger and closer and closer together. i mean, merrill lynch today, now, is essentially acquired by bank of america, that's a more organization than lehman. i think going forward we have to break up these big banks. >> david? >> yeah. this will be a leading question. but are you surprised at how little things have changed on wall street in the last year? >> well, you know, i think it's the french who have an expression, david. the more things change the more they stay the same. i am absolutely shocked at how little has really changed. aside from the fact that there are three fewer competitors and people like goldman sachs are making tons of money because of that, and they're taking risks that others won't take and their raw material, i.e. capital from the fed is free, basically, i think is astonishing to me how little it's chan

tomorrow marks one year since the collapse of lehman brothers.ng up at 7:00, we'll take a closer look at where the economy now stands and if recent signs of recover you hold any hope. >>> we'll talk about what financial traps to avoid when you leave the military service and also details on a big career fair coming up. >>> a reminder that we are expanding to 9:00 a.m. starting today. tune in to meet police black usa and hear how she is using her success to help others. we'll be on from 9:00 until 10:00 this morning. >>> fox 5 is on call with news in the fight against the swe flu. the h1n1 vaccine is on its way ahead of skeed auld and if effect goes well, those vaccinations should go out it people in just three week. researchers conducting new trials using the hoven vaccine discovered that a single treatment may do the job within 10 days. >> we're looking in all likely hood at one dose, not two for healthy adults. that is great which means we'll have a lot more vaccine. >> health officials expect the vaccine to be ready around the first full week o

while this month marks the one year anniversary of the collapse of lehman brothers, triggering a free fall in the stock market and economy, the fed has been trying to step on the economic gas pedal for more than two years now. it was in august of 2007 when the federal reserve first mentioned the credit crunch and began cutting its interest rate, which at that time stood at five and a quarter percent. it also took the first actions to pump billions of additional dollars into the banking system. by december of 2007, the fed's target interest rate had been cut by a full percentage point and it began its term auction facility as a way to allow banks to borrow money from the fed by using various collateral. that program continues to this day. 2008 began with more interest rate cuts as the fed tried to get out in front of the slowing economy and bursting of the housing bubble but by march, it truly became the lender of last resort in the last minute deal for j-p morgan to buy bear stearns before it collapsed into bankruptcy. that was the first of what would be several bank bailouts engineer

. >>> on the one-year anniversary on the collapse of lehman brothers, obama made a speech on wall street. we have the details. >> in the heart of wall street, the president sent a clear message to financial institutions. >> hear my words. we will not go back to the days of unchecked access that was at the heart of this crisis. >> one year ago, lehman brothers was considered too big of an institution to fail. that almost brought do the world financial system. the president argued that the economy has started to recover in large part because of the $787 billion stimulus package. >> we can be confident that the storms of the past two years are beginning to break. >> the bailout of the financial sector and the automobile industry are signs of the large imprint the federal government has left on the economy. obama said the involvement is what -- is winding down of. he warned wall street about returning to the reckless practices. he is calling for more regulation which some analysts support 3 >> it is important that we see that the government is going to do their role. it is what should have b

who knew this would become a national holiday, lehman brothers.ll of lehman brothers. in seriousness, the an attempt -- i think the president wants to highlight, look, we pulled the economy back from the brank. it was really bad. a little bit of a reminder that it was really bad. he's going to make a little bit of a push for his massive overhaul of the financial regulatory system. that is actually another bill mabllinging its way through congress. should get passed in the fall. totally opposite strategy they had on health care. white house wrote the bill and dropped it on the desk of congress. we'll see how that goes. third thing with wall street is lecture them. hey, don't get complacent. just because things look stable now doesn't mean you can go off and start -- there was an article the other day in "the new york times." you can start gambling on life insurance policies, which i think was the potential latest gimmicks that some in the securities industry were thinking about trading. >> mike barnicle? >> unlike the health care reform bill, does

all that plus a year since lehman brothers folded, hundreds of billions crossed wall street. a year later, has anything improved? we will get to that. >>> but the big story, law enforcement officers tell nbc news they have a suspect in the murder of grad student annie le. police believe they found the body of the 24-year-old stuffed behind a wall in a building where she was last seen. the suspect reportedly is a student who underwent a polygraph test and failed. nbc's michelle franzen is on yale's campus in new haven, connecticut, today. michelle are they telling you anything else about this student? >> reporter: certainly, contessa, law enforcement agencies are not speaking out publicly today no press conferences scheduled at this point, but a lot of things developing behind the scenes. nbc has learned that law enforcement sources say that, yes, there was indeed a suspect in this case. and as you mentioned, failed a polygraph test and also showed signs of defensive wounds. we are still waiting word on any other details about that suspect. obviously, no name yet or if this su

. >> it was a year ago today lehman brothers collapsed and the financial panic began. investors and homeowners saw wealth wiped out and two administrations stepped in with massive bailouts and aid. president obama today highlights what has changed and what hasn't. not a single new law has been enacted to prevent a repeat. but the president will say the economy is better off. thanks, he'll say, to bold steps. >> rescue the financial system, to ensure that our domestic auto industry didn't go out of business and to stimulate the economy. that certainly cost a lot of money, but it's something that we had to do. >> we have come to speak -- >> thousands of protesters came to washington this weekend angry over those steps. >> we're spending too much money we don't have. >> and wary of the obama health care plan. >> we must stop this government takeover of health care. >> one advisor to the president said more people need change than oppose it. >> i don't think we ought to be distracted by that. my message to them is, they're wrong. >> senate democrats this week unveiled the

. >> on monday we celebrate the anniversary of the lehman brothers' collapse that caused the financial catastrophe unlike anything we've seen. >> reporter: a year ago the bush administration decided lehman was not too big to fail. >> i think we were within 72 hours of a collapse of the system. >> reporter: then came the collapse that led to an unprecedented $700 billion in bailouts. today on wall street president obama will lay out an argument for reform. forcing banks to keep more money to cover losses. making complex transactions more transparent and creating a new agency to oversee it all. >> they've done a lot of good work but have not changed anything fundamentally and until they do, the risk of another financial panic in our future is still very high. >> reporter: but the president's sliding popularity weakens his position. just 54% of americans approve of the job he's doing in the latest abc news/"washington post" poll. concerns he acknowledged to abc news. >> people are feeling anxious. we h to take a series of steps not -- in circumstances not of my choosing and i think it is

he is speaking one year after the collapse of lehman brothers. he will push for tougher regulations. lehman brothers filed bankruptcy last year on the 15th of september. it helped trigger a global financial crisis, of course still felt today. ahead this morning we'll speak with frank ahrens about what's ahead in the next six months. >>> president obama still confident that congress will pass a, quote, good health care bill. over the weekend moderate republican senator olympia snowe said the president should forget about the public option, it won't pass. even white house advisors backed down on the public option when asked on sunday talk shows. the president was speaking to "60 minutes" about claims some republicans are trying to block a reform bill for political gain. >> i believe that we will have enough votes to pass not just any health care bill but a good health care bill that helps th american people, reduces costs, actually over the long term controls our deficit. i'm confident that we've got that. you're right, so far we haven't gotten muc

then lehman brothers went under. that was the second clue. meanwhile, the dow, what happened? big time. you really saw the drumbeat of lehman brothers and aig and the fact that the government had to bail it out, as well, but it really did not begin until october that the panic set in, and that is what we will try to through this series talk to various parts of what we have learned from that and where we are going. greta: where it is going, i guess that is the question everybody has. where is it going? do you have a crystal ball, and looking at your research and maybe tracking things in history? >> sure. the reporting leads us to two main conclusions. one is that the recovery when we get out of the recession, we may already be out of the recession, but when it is declared, we are out of it, it may be schiavo were -- shallower. for many baby boomers, is happening so close to retirement, you have a near- death experience -- this happening so close to retirement, we may not see the spending. that is generally what boosts of the growth right after a recession, but the second key fi

this stop what happened with lehman brothers. problem with lehman brothers if you are at the public policy perspective, when you are coming out of a time of unbalance, you want to create a path to a softer landing. this is to prevent the panic that happens at the economic problems caught -- that happen with this. he really had almost no choice, following the consequences of the lehman brothers failure to act aggressively. the concept of moral hazard had to be thrown in because the man smoking and this has long since been incinerated. the issue right now -- >> that is the deal maker. >> the issue is how we create the political circumstances, to take the imbalance out of the system. this is a very big problem. >> i will follow this up a little bit. i have a failure -- i have an idea that he has gone unrecognized, and i think there is an issue that he is getting at, and i have asked a little bit about this. this is to lend freely at a high rate, and no one is arguing against this. the question that he spoke about, we do not know wha

. >> what about this moment in time where now a year removed from the collapse of lehman brothers, and certainly a lot of people talk about that moment in time as being the beginning or close to the beginning of the year collapse. are there lessons to take away from the lehman collapse auto or the year that was for the average investor? >> absolutely. i think what i find is that the landscape for investing has changed. the fact is that buy and hold, the traditional ways that investment companies and investors have learned to manage their portfolios have been call into serious question. diversification, and historically, you could buy a group of asset classes. they don't move exactly the same, and you could lower your risk, well, in the fourth quarter of 2008, we learned that they can all move together, and it wasn't to the upside. i think that my lesson is investors have to be more agile. they have to be more nimble. part of the reason why i wrote that book was because i needed to get out the word that the landscape has changed, and we really do need to be a little more aggressive in h

quoting a post-melt-down refrain if instead of lehman brothers, it was lehman brothers and sisters. > i think we think about risk differently. i think we're more risk measured. we're saying, look, look at the numbers. look at the evidence. >> reporter: the evidence, a recent reporting showing hedge funds with an annual return of almost six person, hedge funds run by women were nearly 10%. >> women tend to collaborate. they tend to pool information together in ways different from the way men operate. >> reporter: in fact, scientific studies have found that men take more risks in response to peer pressure than women, and that there is a direct link between increased testosterone and a willingness to take risks. >> when they get into tough situations, their testosterone rises and they do become much more competitive and less aware of risk. >> reporter: that's why at pax world mutual funds in portsmouth new hampshire, three of the firm's six portfolio managers are women. >> i do think that when women are at the table there's a richer discussion on issues like risk and that you make better

i left lehman brothers. i am not at the number one minority owned financial services finance company in the country, people do not know us. we should be taking advantage of that and building on that. i am inviting myself -- to talk about how we should be mobilizing and using the tax credit programs that are in the recovery act, not just for the investment in the community, so we can be a part of revitalizing the capital markets and that we can take the same advantage that the goldman sachs had done to revita lize the economy. >> let me follow up on that. she is the managing director at a firm which is the largest minority investment banking firm in the country. >> she was the first woman to be seated on the stock exchange. minority and women-owned investment bankers, and the top 10 of bankers in the country. wheree are competing with the goldmans. lehman brothers let me, but one from wall street to what is the new wall street, and the new wall street has to encompass people of color, it has encompassed withi