lehman brothers did it goldman sachs is doing it j.p. morgan is doing it and they're doing it with more than two or three dollars of i'm not mistaken the exposure to goldman sachs is about fifty one billion twenty seven fifty one billion j.p. morgan is doing it to the chairman of seven hundred billion over one hundred billion this level of leverage combined with the fact that you have c.d.'s that may have a claim i mean i have a cream combined with the fact that the underlying collateral behind the bets or the decreasing significantly greece is trading at an average of about twenty seven cents on a dollar and that means that you have a ponzi house of cards that if it collapses or god takes several systems down. not just european banks but the bone the drug of brings with it so i'm curious to see what happened but i think there's going to be a major reset of the system from a financial and city perspective coming the only problem is when you know you can time it but i was the are we out of it because we have lots of that you have lots of

meltdown the bernie made off scandal the collapse of lehman brothers and now the collapse of m.f. global this all went through the city of london and this cation kernel of mass of infinite fraud so by shutting that down would be the first step the globe needs to take if it wants to get the global economy back on surer footing you need to shut down the city of london before there's going to be any hope of any stability in the global markets so here's where it gets very very scary ok there's hyper hypothecation as well now with weak collateral rules and a level of leverage that would make archimedes tremble firms have been piling into re hypothecation activity with startling abandon a review of filings reveals a staggering level of activity what may be the world's largest ever credit bubble and the biggest participant is hyper hypothecation max j.p. morgan almost more than half a trillion in reason i prosecution just this year alone right well we know that j.p. morgan off balance sheet has ninety kirlian in derivatives and they say that these derivatives are completely covered throu

that has gone to a former executive from lehman brothers. >> every christmas, strikes in spain. the annual festival lottery is a long standing tradition with some 400,000 euros scooped up by the lucky winner. this year, there is added incentive. with spain's economy in the trouble, the new prime minister has been officially sworn in. in last month's election, his popular party swept to its biggest ever victory on a promise to lift the country out of its economic mire. the task is daunting. the highest unemployment rate in the euro zone, a massive public debt, and a week forecast after the housing bubble burst two years ago. after his trip to the palace, he announced his cabinet. all eyes were on his choice of the economy minister. >> it was a former executive of the failed investment bank lehman brothers who was given the most complicated portfolio in conservative government cabinet. a former lehman brothers executive was certainly not the sort of change that these people were calling for when they came out in their tens of thousands this summer to protest against the previous s

it was luis degindos, a former executives of the -- a former executive of lehman brothers. the former lehman brothers executive was not the sort of change that these people were calling for when they came out in tens of thousands this summer to protest against the previous socialist administration's management of the economy. spain has already made severe cuts to its public spending and he announced further 16 billion euros worth. spain is considered too big to bail out by investors. these people are hoping for a little luck is christmas. >> we have got one of those stories for you. this is a little polar bear cub born one month ago in the scandinavian wildlife park in denmark. after two days, he was taken away from his mother. his mother was not producing enough milk. three people around the clock have been taking care of this little polar bear cub. in a few months, he should be introduced to other polar bears and he should be able to start eating solid foods like meat and fish. he seems pretty happy. that is is for all -- that is it from us. goodbye. >> make sense of inte

. >>> lehman brothers is closer to ending the largest bankruptcy in american history. >> and a major deal between martha stewart and tracie penney is announced today. with business news, shearson is linda bell in new york. >>> good morning. let's begin with that deal with martha stewart teaming up with j.c. penney. the retailer plans to buy a stake of 70% in her company. as part of the deal, and j.c. penney plans to roll out many stores and revamp its online presence in 2013. >>> you may notice some changes at the airport security when flying united continental. next year, the carrier will speed up its most frequent fliers through security points. los angeles and las vegas is scheduled to make changes in the next few months. >>> it has been three years since lehman brothers filed the biggest bankruptcy in u.s. history. they just won the federal judge's approval to begin payouts of $65 billion to creditors next year. >>> they are not forgetting man's best friend when doing holiday shopping. i have more on that in my next report. that is business news at bloomberg headquarters in new y

baxter, because he had this primary dealer, mf global picking a, i don't and if lehman brothers was arimary dealer. i think it was. in monitoring these guys were doing deals with in monitoring these guys were doing deals with you, you start getting nervous. you cut them off. in earlier october. mr. ketchum is nervous about things over the course of the summer, through august, maybe the books are getting cooked. i mean, we're to regulators over there. and, finally, the bankruptcy trustee comes in, boom, blocks of downtown is able to return $4 billion which is 72% as of today. i'm curious going to support mr. capuano was going. you know, databanks come in, and if they did they were doing their job, and sweep all the cash that then left the customers holding the bag? >> let me review some of -- >> i said a lot there, i apologize. >> and i hope i don't replicate that. let me review some of the activities of the new york fed during the week of october 24, which was the week preceding the bankruptcy. and it started with a downgrade on monday the 24th, the next day there was a large loss dec

in the city of london you know a lehman brothers and that's global all went through david cameron city of london this is the global headquarters of fraud so he's trying to protect is turf how do you see this situation going forward because it's really a clash between these two schools of thinking isn't it i mean before say more about europe i mean as you said before you know there is this debate now about a gold standard has the gold standard course the great depression and it's very clear in my view that the goals that it has not created the great depression what has been the case even under gold standard conditions bankers and politicians and the two of them work together here as they do today one to have ongoing credit expansion is very profitable for the banks you obviously politicians wonder for office reasons as well you can can one much larger budget deficit you know the state for the last thirty years that we have a complete feet money system around the world states around the world could accumulate huge amounts of debt and fund a lot of their spending not via taxation but by c

you know, when he went to work for lehman brothers, the now bankrupt part of lehman brothers, part of bringing down our economy. he went there, got rich. he was involved in trying to get florida involved in some pension deals. and, you know, all that stuff is going to come up and it's -- in another four or five years, maybe it wouldn't sting as much and maybe he could do good works and erase that part of his resume. right now with a brother who's still one of the most unpopular people in the world and his lehman brothers stint and some other issues in florida, you know, i don't see it. i don't see him being that stupid, frankly. >> "the new york times" columnist david brooks believes a bush candidacy is still a remote possibility. also byron york of "the washington examiner" columnist, he wonders if the bush op-ped that was recently in "the wall street journal" is a trial balloon. so we shall see. joan walsh, we do know one thing, mitt is not satisfying the conservatives. and it looks like newt gingrich is exploding and nobody believes that ron paul can run the table. so we'll see. >>

lehman brothers is the most recent. while the lehman brothers bankruptcy was monumental scale, commodity customers did not lose their money at either firm. in both instances, commodity customer accounts were wholly in tact. that is, they contained all open positionings and all associated segregated collar rail. that being the case, customer accounts were transferred to health sems with the commodity customers having no further involvement in the bankruptcy proceeding. unfortunately, that is not what's happened at mf global because the customer accounts were not in tact. in sem bankruptcy, they have priority in customer property including without limitation segregated property, property that was illegally removed from segregation and still within the debtor's education state and is no longer within the state, but clawed back by the trustee. if the customer property, as i just described is insufficient to satisfy in full all the claims of customers, the commission regulations allow other property of the debtors of state t

, the failure of lehman brothers and thinking, this sounds familiar. as each month passed and as each phase of the financial crisis gave way to a newer more ominous one than the last time in this and this crisis is still moving and faces now, i began to wonder if i was watching gerald ford's worst-case scenario from 1976 starting to play itself out. until that time it hadn't occurred to me that modern nationstates could go bankrupt. individuals can be declared bankrupt, but entire countries? i mean it seemed unfathomable. but there we were and there they were lined up in a row of dominos about to fall onto each other. iceland, greece, ireland, portugal, spain and now italy are in trouble. i watched with fascination as financial instability claimed banks and corporations and then as ford had spoken about in his meeting with sir hedy the social unrest began. there were riots in disturbances in athens and london. governments were ousted in iceland ireland and portugal and britain. i remember thinking perhaps i can offer insight that i was in new zealand a

we all remembered what happened after lehman brothers collapsed.freeze that closed factories, killed business and wiped out millions of jobs around the world. so the fastball here in the u.s., the central banks of england, japan, switzerland and canada, they want to keep the money flowing so households can borrow, companies can pay their bills and you can get paid at work. another player in a separate move was china. china loosened bank rules there to keep money flowing as well at about the same time the ecb and fed and all these other central banks around the world announced their move. some are wondering if all of this is a worldwide coordinated effort to keep europe afloat here. all this is good news, a very positive action in a still pretty negative and dangerous situation in the credit markets. the underlying problems are still there, make no mistake. those problems are an escalating sovereign debt crisis in europe. that threatens to tear apart the eurozone. europe basically is still on the brink, and there's very little time to fix it before

lehman brothers and refco are two of the most recent. by the lehman brothers bankruptcy was monumental in scale and the refco bankruptcy about serious fraud at the parent company, commodity customers did not lose their money at it affirm. in both instances, the customer accounts were wholly intact. that is, they contain all the open positions in supporting collateral for those positions. that being the case customer accounts were probably transferred to help with the commodity customers having no further involvement in the bankruptcy proceeding. unfortunately that's not what happened at mf global because the customer accounts were not intact. commodity customers have an exclusive right to customer property. this includes without limitation segregated property, property that was illegally removed from segregation and it is still within the debtor's estate, and proper that was illegally removed from segregation and is no longer within the debtor's estate but is clawed back into the debtor's estate by the trustee. regulations allow other pr

we all remember what happened after lehman brothers collapsed. a credit freeze that closed factories, killed business, and wiped out millions of jobs around the world. so the federal reserve here in the u.s., the central banks of england, japan, switzerland and canada, they want to keep the money flowing so that households can borrow, company can pay their bills, and you can get paid at work. another player here in a separate move was china. china loosened bank rules there to keep money flowing as well. at about the same time the ecb and the fed and all these other banks around the world announced their move. so some are wondering if all of this is a worldwide coordinated effort to keep europe afloat here. now all this is good news. a very positive action in a still pretty negative and dangerous situation in the credit markets. the underlying problems are still there. make no mistake. those problems are an escalating debt crisis in europe. that threatens to tear apart the euro zone. europe is still on the brink and there is pretty much very littl

meanwhile, progress for creditors of lehman brothers, the investment bank whose collapse accelerated the financial crisis. a federal judge today signed off on lehman's $65 billion plan to exit bankruptcy early next year and pay off its creditors. but it won't be the same lehman- - after the biggest bankruptcy in history, all that's left is a collection of assets like real estate, private equity, and banking investments. unsecured creditors will get between 21 and 28 cents on the dollar for their investments, but shareholders will get nothing. >> tom: a cornerstone of the dodd-frank financial reform bill is tougher protections for consumers. but some of those protections have been on hold as the senate spars over who will lead the consumer financial protection bureau. president obama's nominee is former ohio attorney general richard cordray. a showdown vote on his nomination could come as soon as thursday. as darren gersh reports tonight, the debate over leadership at the new agency comes as another market watchdog comes under fire. >> reporter: republicans and democrats traded jabs to

was make sure we didn't have a failure of a major financial institution that could have caused lehman brother's type impacts. >> reporter: the markets like the key numbers on jobs, housing, and manufacturing, all coming in stronger than expected. more fuel for the near-500-point rally. the next mile marker for the markets will be the unemployment number that of which comes out friday. >> pelley: anthony, does this mean we're out of the woods on those enormous debts owed by some european governments? >> reporter: well, european leaders are holding a summit in brussels on december 9, scott. that's a week from friday. the markets are expecting and will be disappointed if they don't get some kind of deal out of that meeting. the feeling down here is that the stock market wants to rally but the only thing that's holding it back right now is europe. >> pelley: we'll be watching. anthony, thank you very much. even china got in on the effort to ease lending today. it reversed its policy and freed up cash so its banks can lend more, all to add fuel to the chinese economy which has been slowing. presiden

targeting people who caused the health down but which hasn't brought one case against executives at lehman brothers, merrill lynch, bear stearns or a.i.g. still three years after the meltdown fraud charges against the c.e.o.s of both fanny and freddie were as big as it gets. >> schieffer: in sioux city, iowa, last night, the republican presidential candidates held their last debate before the iowa caucuses not many sparks at this one but when front-runner newt gingrich trying to correct michele bachmann at one point she sort of gave him what-for. >> i think it's outrageous that you can't to say over and over through the debate that i don't have my facts right when as a matter of fact i do. i'm a serious candidate for president of the united states and my facts are accurate. >> schieffer: a lot of people in politics were talking about this today and our political director jon dickerson was at the debate last night. john, at lot of attention to that comeback. but do you think it will make much difference if the long run here? >> reporter: well, michele bachmann was responding not just to the charge h

. >>> we last saw this concerted action when lehman brothers went down. i asked the german institute of economic research if things are really that bad again. >> yes, i think so, this is true. if we look at credit default swaps, they are at an unprecedented heights. also, the interbank market has dried out. there may be big problems emerging at the moment. >> how long can the positive effect last? >> usually this only blasts some days because everybody is clear about the fact that governments have had to reform and that using the printing press is the lowering the effect of the governments to go for structured refunds. at the last couple days, but in the end, everybody is aware of the fact more has to be done and politicians have to be more active than they have been in the past. >> will this send to inflation soaring? >> i don't think so. not in the short to medium run. in the medium to long run, we will see inflation in the raw material sector, the real-estate sector. this is the usual pattern. in the short run, we feel a slight recession in germany, an

and lehman brothers, the recession wouldn't have been anywhere-- >> come on. we need a bailout of lehman and greece. >> be careful what you wish for, ben. >> what happened this past week is a bandaid on a hairy problem and i want to be the one to just rip it off! >> do you rell think it's good letting these countries implode and default? do you really think that's a good thing? >> i think-- >> yeah. >> it's a worse thing when you try to bail them out and back stop them. >> no, no. >> well, default of greece hurts every bank in this-- >> you don't let defatal. >> susan, i just think that what, it is that proverbial slippery slope. if the rallies are based on back stops and institutions that might be fragile of their own accord that's setting pa dangerous precedent to what we had in 2008, and-- >> look i worked on tarp at the treasury department. nobody likes a bailout and i can tell you from my personal experience and people who do the bailouts don't like doing bailouts. when you get to the point you're making that decision it's already too late. you've got to a

highest amount of withdrawals since october 2008 which came immediately after the collapse of lehman brothers. last month alone equity focused mutual funds suffered combined losses of over $38 billion. let's get a recap now of the latest market figures. >>> that's the latest in business. back to catherine. >> thanks very much, ai. >>> a man armed with rifle and grenades has attacked shoppers in the belgium city of liege. four people, including the gunmen died, at least 120 were wounded. eyewitnesses say the man opened fire and threw grenades in a busy central square near a courthouse. the attack occurred on tuesday around lunchtime. district prosecutors say a 75-year-old woman and two teenagers died. local media reports that a baby was also killed in the attack. they say the suspect acted alone and reportedly committed suicide. the gunman was 33 years old and from liege. he was convicted three years ago of possessing weapons and growing marijuana. he was expected to turn himself in when the attack took place. >> translator: there were three big bangs. then firing, shooting in the crowd. and e

. >>> lehman brothers has one approval in court for its reorganization plan, ending the largest bankruptcy in history. that bankruptcy is often cited as the trigger for the global financial crisis of 2008. lehman will begin payout of an estimated $65er million to creditors. the end of the sad, sad chapter in american history. >> wow. hopefully. >> thank you, jess. >>> sure thing. >> by the end of the day, the controversial morning after pill could be available over the counter to women of all ages. >> when we return, we'll break down both sides of the debay. first up after the break, your weather first. >>> welcome back to 9news now. you heard the sound effects. what does that mean, howard, happening today? >> flooding is a bigger concern. i know you've been hearing us talk about the threat of wintry weather mixing in tonight. the immediate concern will be the amounts of rain we could see could be two inches or more, enough to cause potentially some flooding later on. the heavy rain off to the west and southwest in some areas is picking up. that will slow you down for the morning commute.

making sure we didn't have a failure of a major financial institution that could have caused lehman brothers types impacts on the global marketplace. >> reporter: and it wasn't just the fed's move that put a jolt into the markets. we are seeing positive developments on the labor front. private employers added 206,000 jobs last month and the that is raising hope. we got a rare piece of good news on the housing market. the number of americans who signed contracts to buy homes jumped 10% in october to the highest level in a year. today the markets will likely be moved by the weekly jobless claim numbers. we will also get the latest on consumer spending with reports on retail and auto sales so it should be another busy day on wall street. >> we don't talk a lot about good news, ash. >> no. >> good to see you. thank you. >>> politics now. the latest allegations of sexual misconduct. herman cain says he'll decide by next week whether to continue his campaign. the decision hinges on a meeting with his wife tomorrow. >> reporter: his political losses seem to be turning into gains for another candida

lehman brothers had celebrated its 150th anniversary and in 2001, mark zuckerberg was captain of his high-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 attack

them, they could have a credit crunch like the one three years ago following the collapse of lehman brothers. >>> better than expected news on the job market put investors in a buying moved. private employers added 206,000 jobs and the number of planned job cuts fell. the report points to some improvement in the job market and raises hope for the government's monthly unemployment numbers and those are released tomorrow. >>> a new survey from the federal reserve says the u.s. economy expanded at a slow to moderate pace over the past two months. a modest pickup in consumer spending, tourism and manufacturing drove that growth. meantime, the number of americans who signed contracts to buy homes jumped 10% in october to the highest level in a year. but the national association of realtors says the gain follows three months of declines and it just isn't enough to signal a housing recovery just yet. plus, there are new talks that yahoo! could be a takeover target. reportedly, private equity firm the blackstone group and bain capital are discussing whether to team up to buy yahoo! formore than $25

global which obviously is not lehman brothers in size but this is the seventh or eighth largest bankruptcy in u.s. history so ok it's not lehman but is this just the first body to wash up on shore as a result of this euro zone crisis to the u.s. do you think. perfectly is the first party most likely many who could be other bodies interested in making sure that ok so then the big question becomes what's the next body going to be reggie. well it's very difficult. you know my bet is the date of my crystal ball so. it's not my forte but i can take a very very good look at the president of course the past is always available for exploration. problem the issue of m.f. global was several for first you had speculation on it i had one of my readers this is why it was stated i told them it was an implosion waiting to happen ok two years ago that's for everything is going as planned that doesn't necessarily mean the end of quote was wrong and i don't but they never had a chance. right there trees out. there fruition because there was a run on the back not mention the media much as what happened m.f.