lehman brothers had a huge network in the financial world.ubsidiaries were present in more than 40 countries, including germany. the bankruptcy administrator of lehman's german unit has found around 15 billion euros of assets. one of the biggest creditors as a german bank which hopes to receive 5.6 billion euros. the deposit guarantee fund, another leading creditor, is also set to receive billions. lehman's assets are far higher than previously estimated. it is germany's biggest ever bankruptcy proceedings. for the past four years, around 100 attorneys and bankruptcy specialists have been working on it. so far, they've spent 720,000 hours on the case. one estimate showed total fees could be as high as 800 million euros, but the administrator says they will not need that much. meanwhile, hedge funds are hoping for a bigger slice of the cake. many bought claims from other creditors at bargain prices after lehman brothers filed for bankruptcy, and now they hope to make a handsome profit. >> we're going to take a short break. when we come back, a

london and you mention the lehman brothers repo want a five scam just briefly for people to understand what that means is that at the end of the quarter when they're supposed to report to regulators their their their their balance sheet the liabilities and assets that they have they will temporarily put all the liabilities they'll park them in the shadow banking system don't work they won't report the liabilities therefore making their profits look greater than they are and then the regulators move on to the next company they download the liabilities once again and they do this on a quarter by quarter basis this is done by all the fortune one thousand companies that engage in massive accounting fraud using the the shadow banking system to cook their books to mit you know these foreign remaining big accounting firms are involved day in and day out with massive accounting fraud there they're just as guilty as lehman brothers and financial terrorism the deloitte and touche the p.m.g. they're just as guilty as the rating agencies and financial terrorism we're actually going to move on to t

a lot of it is something like repurchased agreements the repo one hundred five that took down lehman brothers they had fifty billion for example hidden in these repo one hundred five repurchase agreements out there in the dark pools the dark matter which sucks in all of the real wealth the real activity of our economy is sucked into this thing so the fs to be a global financial policy group comprised of regulators and central bankers found that shadow banking grew by forty one trillion dollars. between two thousand and two and twenty eleven the share of activity based in the u.s. has declined from forty four percent in two thousand and five to thirty five percent in two thousand and eleven moving to the u.k. and the rest of europe so as you see there was a mammoth growth in it since two thousand and two right moving to the u.k. when david cameron wants to defend the city in london he wants to defend the shadow banking system that has its headquarters here in london and you mention the lehman brothers repo on a five scam just briefly for people to understand what that means is that at the end

then lehman brothers declared bankruptcy. the nation's largest insurer, couldn't cover its bad debts, the government stepped in with an $85 billion rescue. what role did the credit default swaps play in this financial disaster? >> they were the centerpiece, really. that's why the banks lost all the money. they lost all the money based on those side bets based on mortgages. >> and the market's totally unregulated. >> and this market is almost entirely unregulated. >> the result is a huge shadow market that may control our financial destiny, and yet the details of these private insurance contracts are hidden from the public, from stockholders, and from federal regulators. no one knows what they cover, who owns them, or whether or not they have the money to pay them off. one of the few sources of information is the international swaps and derivatives association, a trade organization made up of the largest financial institutions in the world. many of them are the very same companies that created the vast shadow market, lobbied t

for those in the audience too young to remember him as the intel analyst on the street with lehman brotherse's now short intel, the company he knew in and out when intel was the stock to own. >> i wonder if we have viewers who don't remember lehman brothers? >> probably, sad to say. >> the death of ecs if you put an ipad with a keyboard it's a pc, folks. if you look at what people are doing here in the cloud space whether it's the vmware, emc plays or servers there is big iron being sold. this is not a dead story. it support it is tablet devices we have on the desk. >> mike, i want your take on hul hewlett-packard. i asked meg whitman about tablets because she said that was one of the building blocks of the foundation of hewlett-packard over the next five years. i thought really, the tablet is your next big cutting edge innovation? >> they're chasing, aren't they? part of the justification was cloud. we were talking about cloud a year ago. they're trying to chase it. i'm trying to understand how to write down $8.8 billion on a balance sheet that probably only had $4 billion in assets when t

it is the moment that shook the financial markets -- the collapse of lehman brothers investment bank back in 2008. >> many thought all was lost for its german subsidiary company as well, which went bust as well, but that has not been the case. the company's liquidators have raised more than 15 billion euros. that means it could be 80% of its creditors' demands, however, some hedge fund managers are demanding more. well, it is very dark here in northern europe right now, but there is something you can do about that, mainly with electric light, believe it or not. >> after the break. >> thanks for staying with us. >> welcome back. we take a look now at the biggest terrorism case in germany in tickets, one with allegations of a cover-up and a new not to sell suspected of going on a racially motivated killing spree. >> the national socialist underground went undetected for years, but a parliamentary committee is questioning a former interior minister about his failure to follow up on key evidence in one of the attacks. >> cologne, 2004, some 22 people were injured when a bomb exploded nea

. >> a german law firm, for exple, are doing jt that r lehman brothers re in germany, and today, they'veeen trying manthstify their massive fees. them as well. lehman' a grn b >> risky speculation on the u.s. housin mkeas in septemberpa collse then, its assets have ben liquidated and notnl d.subsidiaries were present in more than 40 of hman's german unihas fouone othn 'ssss e figr yrs, aun 10ttne a bkrtc on eimehodotal fs ul basig mewhe,edris te lmaroerfid rak srt brk. wh wco bk, btay rtedndurreby soie tnk ftang wh us. >> welcome back. epitfreom i spadg si the long crh pteer tangohe see tay >> riot police moved in to break ahr-mohrotest against a me n ba ine mpy. tnse said truckloads of police aiv tov u demonsators. activists say almost 50eonjed >>heig t pte war of burma'sraitnowd rerm b ctics the latest police action show jt w sneeho rctns are. >> many of the injured were buhion otters camps under cover of night. acul pyeisard by violence. some demonstrators were stl asephethe crackdown began. >>5 nt ath m we iur a a i hoit. >> the oppositi lde rid, planning to the mine is backed by a c

you didn't rescue lehman brothers. it set off a worldwide panic when it went bankrupt, and i wonder, looking back, whether you think that was a mistake. >> there were many people who said, "let them fail. you know, it's not a problem. the markets will take care of it." and i think i knew better than that, and lehman proved that you cannot let a large internationally active firm fail in the middle of a financial crisis. now, was it a mistake? it wasn't a mistake for the following reason. we did not have the option. we didn't have the tools. the federal reserve cannot put capital into an institution. all we can do is make loans against collateral. >> the day after lehman, bernanke's fed did something astounding. it loaned $85 billion to a company that wasn't a bank at all, american international group, the global insurance giant that was also involved in backing risky mortgage investments. bernanke says unlike lehman, the fed could make the loan based on good collateral in a.i.g.'s portfolio. there have now been four res

in 2008, the regulatory sec was itself under scrutiny, critized for failing to anticipate the lehman brothers bankruptcy, which sent financial markets reeling, and also missing the warning signs of bernie madoff's multi-billion dollar ponzi scheme. "before she got there, they almost needed someone to come in and confess." mary schapiro, who president obama said will be replaced by commissioner elisse walter, overhauled sec enforcement and made it more proactive. "to get out there and defend investors, as opposed to trying to figure out what happened after." but critics say for the dozens of insider trading investigations, the sec under schapiro did not crack down on top executives during the financial crisis or since. "the mf global mess - is anyone prosecuted? who's going to get prosecuted for that?" the sec under schapiro pushed for transparancy, revealing risk. "gigantic risks were being taken and no one knew what happened until they exploded. now, those dangers to the economy are better understoood and are being tracked." in 2010, schapiro's sec was surprised by an $862 billion 'flash cra

but the recession following the 2008 collapse of lehman brothers was a blow to suzuki. the stronger yen also made the situation worse. annual sales for last year plummeted to 27,000 units. suzuki spokespersons say they'll continue selling vehicles in hawaii while only offering motorcycle s and marine engines in the rest of the country. >>> japan has decided to ease restrictions on beef imports from the united states. the government has made the decision after a panel of experts has reported that the step will post no safety risk. u.s. beef imports will start to increase from as early as the beginning of next year. japan's health ministry decided to allow imports of beef from cattle 30 months or younger. that's on condition that the brain and spinal cord continue to be removed. these are parts where the pathogen of mad cow disease is believed to accumulate. japan decided seven years ago to limit u.s. beef imports to cattle aged 20 months or younger in order to prevent mad cow disease or bse from entering the country. the measure was taken after bse was found in cattle in

but the recession following the 2008 collapse of lehman brothers was a blow to suzuki. the stronger yen also made the situation worse. annual sales for last years plummeted to 27,000 units. suzuki spokespersons say they'll continue selling vehicles in hawaii while only offering motorcycles and marine engines in the rest of the country. >>> here is what's happening on the markets. let's first take a look at europe. stocks are trading high as you see on your screens. investors are waiting for the results of the u.s. presidential election which has just started. london shares, ftse up by .5%. the dax is up by .55%. in paris, the cac 40 is up by about .7%. meanwhile asian stocks are mixed on tuesday. in in tokyo the nikkei average closed below the key 9,000 level for the first time in three trading days ending at 8,975, down about .4%. australia's s&p asx 200 rose a quarter percent after the central bank kept its interest rates unchanged at 3.25%. the shanghai composite index extended losses for the second day to close at 2,106, down about .4%. >>> taking a look at the four

sell a security and then buy it back at a future date in a fixed price so as we saw with the lehman brothers collapse what they found was that they had basically overnight when the regulators came to look at their books when the the auditors came to look at their books of course. it was a drink it black hole of debt so they sold that debt overnight for that day that they were being audited put it into this shadow banking system and then it magically disappeared they looked healthy so the fact is we don't know you know j.p. morgan celebrates record earnings you know is that because all their record debts are off in this shadow banking system well the cost of actually having cash on the books is prohibitive for a financial terrorist like j.p. morgan so they outsource their cash operations to the repo market essentially is why they report market existed so that banks and corporations can outsource their whole cash management function to into this thing called the repo market which allows them to gain negative rates of interest on their cash or they're making money the more money they borrow the

lehman brothers has striked a deal to sell arch stone to equity residential for just over $6 billion. arch stone owns 45,000 apartment units and the sale closes a rocky five year chapter for lehman which took the company private in 2007 only to see its value plumb met when the u.s. housing market collapsed. auditors now say arch stone was a major contributor to lehman's dehe miz. >>> moodys is sticking with a stable outlook for india. the agency mentioned a list of positives including india's high savings and investment rates, large diverse economy, but moody's did warn of credit challenges posed by india's weak infrastructure, high government debt and inflation. also under pressure partly due you to the country's strong reliance on imported crude. india is the world's fourthimpo may be some relief in sight. cnbc has more on the story live from new delhi. >> so this is a really big asset when talking about the field. field one will be producing 400,000 barrels a day. phase two producing 1 million barrels of oil every day. and conoco phillips announced an agreement for the $5 billion d

morning including equity residential and avalon bay communities agreeing to buy archstone from lehman brothers holdings. the price tag, about $6.5 billion in cash and stock. the deal gives lehman cash to help pay its creditors as it liquidates. but it paid $22 billion for this company originally. so $6.5 billion versus $22 billion, and you can see how lehman got into some of the problems it did. also this morning, europe set to delay the introduction of stricter rules on bank capital. the eu reportedly prepare to go follow the united states while it lobbies for a reconsideration of the u.s. stance. the delay could push back the start of basel iii by about six months. the law was mepts ant to be pha in by the start of 2013. >> archstone was not part of the zell asset, was it? >> i feel like zell was related to it. >> but he sold right at the top. so that was part of the problem. it wasn't just a total lack of due diligence. i mean, everything was valued hire when archstone was first sold, right? >> yes. but as i'm looking at this, no, sam zell i do not believe was involved. >> that was the equi

he's been perpetrating for years and any of the tax cuts caused the financial crisis, that's why lehman brothers and bear-stearns had too much-- >> the housing market. >> the housing market, it's insane. i think mr. mitt romney ought to be pushing back. >> as a quick extension, his idea instead of doing that with the economy back on its heels, raise taxes, which he will do if he gets reelected and impose more regulation on the economy. that's his solution to the problem we had before. >> i think the contrast in these closing arguments are very telling. obama decides to double down on the character assassination and class warfare, romney is talking bipartisanship, and he was a governor of a blue state. one sounds more presidential than the other. >> paul: the president is throwing out attempts to say, well, i'm going to get a big budget deal with congress, i real want bipartisan immigration deal, hey, maybe, even tax reform. >> this is really important, yeah, because he's being very critical of romney and last weeks we're seeing the glimmer of hope and change obama and trying to get that back and

this is kind of like what happened to lehman brothers. this is pretty much the bulk of what's left of lehman being sold to these two companies for about 6 6$6.5 billion. interesting they're buying basically the car cuss cas. another sign of the housing sector picking up. >> boy, bigs zigs and zags on avalon bay. thank you. >> the fiscal cliff deadline is just 35 days away. today the white house seems to have taken social security reform off the table as a component to any deal regarding the fiscal cliff. listen to jay carney. >> we should address the drivers of the deficit. social security is not currently a driver of the deficit. that's an economic pact. while the president supports engaging with congress on a separate tract to strengthen social security, for entitlements we need to look at medicare and medicaid. >> joining to us talk about that and more is alan krueger, chairman of the council of economic advisers. can you help us interpret what jay carney just said? a lot of republicans have gone into this debate and discussion saying,

of course, it was in 2008 with lehman brothers collapse.republicans blame that for john mccain and sarah palin's loss more than the overall dynamics of what that presidential contest was about. in 2004 that osama bin laden tape that surfaced right before the election, there were john kerry partisans that blamed that for actually hurting john kerry at the end of the day. >> thank you very much. i hope to see you tomorrow. thank you, mark. >>> right now officials in states hard-hit by hurricane sandy are making final plans for the election in communities where people are displaced and still have no power. officials in new york, new jersey and connecticut have asked power companies to concentrate on bringing electricity back if polling places first. in new jersey they're planning to deploy military trucks to be used as polling locations. tom curry joins us live now. tom, you followed this from the beginning, but obviously initially we're focused on the storm and the damage. then the reality this could affect poling locations on tuesday came in

he's sort of like the lehman brothers of politics. but that's disingenuous a process because the republicans have a lot more deep thinking to do than just shoving it all onto mitt romney, obviously. >> how about the numbers. can't make a party a success if it salutes the top 1% and trashes the bottom half, the 47%. these numbers are on the table. i disagree with those far right. but for some reason he's good at recognizing that among mitt romney's failings was his inability to connect with voters who aren't solely focused on being tycoons, big-time capitals. he was on "morning joe" making the same point he made in "the new york post" last week. i thought it was a good one. >> the problem for mitt romney is they had a theory of the race, which is they needed to run against -- he was going to be the anti-obama. he would be good for business. the problem with such a that i think is if you sent err campaign on business, what happens to people for whom about business is not the central fact of their lives, middle class people who want to w

as goldman sachs, lehman brothers and bear stearns.now you get hit twice. >> host: you volunteered your political leaning but as you are listening to the campaign rhetoric, do you think one side -- this obama seems more likely to solve the problems? >> guest: the coverage has nothing to do with what is going on here at all. the romney ryan plan with the eliminate the taxes on capital and from the wood for anybody with cough $.5 million of wealth and up to that he would have no taxes on capital the people of that would be taxed. that is a system that says we're going to let the already rich with tax-free and put the consumption of large labor and for the policy i believe it would lead to wealth and the situation where the entrepreneurial spirit is stalled and killed because it's the guy that group like me with no money and makes the success of himself with a silver spoon in the not so you'd like 18th-century france and 18th-century france your economics were determined by who you picked as your parents and i mean that to sound just as o

it finally popped with the bankruptcy of lehman brothers and the near collapse of a.i.g., who were botheavily invested in the oil markets. with hedge funds and investment houses facing margin calls, the speculators headed for the exits. >> from july 15th until the end of november, roughly $70 billion came out of commodities futures from these index funds. in fact, gasoline demand went down by roughly 5% over that same period of time. yet the price of crude oil dropped more than $100 a barrel. it dropped 75%. >> how do you explain it? >> by looking at investors. that's the only way you can explain it. >> in july 2010, president obama signed the dod-frank act. it addresses many of the regulatory lapses in the commodities market. among other things, it limits the amount of commodity futures that speculators can hold. it makes it easier for the commodities future trading commission to investigate suspected market manipulation, and it empowers the agency to regulate energy derivatives, which enron used to drive up the price of electricity in california. [ticking] coming up, a herculean effor

been hammered by the short sellers, particularly david einhorn who was famed for short selling lehman brothers. but, again, this is a company that has continued to try and come through here, new management changes, right, robert? >> reporter: yes, new ceo, and i just did a quick search, nary a mention of starbucks, remember, still a partner in some aspects, but not mentioned whatsoever in the here. the company also providing its outlook here for the first quarter, i'm going to take a quick look at that, and i'll have that for you in a minute. david: we'll come back to you. we have larry silver on the pits of the cme group, tells us why a debt deal is already priced into the debt market, and steven hammers says the fiscal cliff is y2k all over again. i want to start with stephen, because he's been looking at green mountain for a long time, but is it too hot to handle? even though it is popping after hours as a result of these earnings, it is a very hot stock to hold, is it not? >> the stocks do have consistent earnings, otherwise we wouldn't have it. but because we weight securities based on th

i think with lehman brothers, again, that was a slow burn. everal months where people knew lehman was getting into serious trouble. but the management earlier in 2008, lehman had some opportunities to sell itself. as the situation kept deteriorating, they basically their last buyer standing was barkley's. and i think hang paulsen as he says in his book thought they were going to be able to do a sales of barkley. nobody called-- and nobody called them and said, you know, nobody called them early. so they waited until the friday before the weekend and wanted to do the transaction and said, "will you approve in th?" and colin mccarthy said no, he didn't have time. i do think-- look, this is why you need a process. this is why you need rules. this is why you need an agency which is devoted to doing this kind of activity because if you're doing it ad hoc, you surprise the market. you confuse the market. and i think the market was surprised. >> rose: on the issue of capital requirements. >> sure, sure. >> rose: do you have a level that you think is

it was goldman sachs, lehman brothers, bear stearns and the others who were selling these things.they sold them to public employee pension funds and now you get hit twice. >> host: you volunteered your political leaning, but as you listening to campaign rhetoric, do you think one side -- that's a bonus the more likely than romney to solve any of the problems you're bringing up? >> guest: the coverage has nothing to do with what is really going on here at all. i mean, first of all the ronnie ryan plan would eliminate taxes on capital. romney would for everybody who has more than $12.5 billion above. a few people above that would still be taxed. that's a system that says to let the already rich tax-free and put all the consumption and labor. we're going to further the policy with shifting things down it would lead to wealth any situation where the entrepreneurial spirit is stalled until it has the newcomer, the guy who grew up like i do without money and makes the economy grow, not the person who grew up the silver spoon spoon in their mouth would become like 18th century france in

in october of 2008 after the lehman brothers collapse and the mccain campaign was in putting along with the economy obama quipped to one of his advisers are we sure it's too late to hand this pile of crap over to mccain and the party that created it, and the adviser said it's probably too late. obama says at least we are buying wealth. not low enough, it turned out. in december when his economic aid called with the first jobs report, she blurted out i am so sorry mr. president the numbers are just horrible. he said it's not your fault, yet. at one point david axelrod was in the white house and he wondered what would be like to govern in good times. the president just laughed at him. are you kidding? we never would have gotten the job. one thing my book does the other books don't is to get obama through the lens of his belief and his policies. i've got a lot of fly on the wall conversations in the white house and the background on capitol hill but this book also gets inside of battery factories and high-speed rail and yet the facility of that infamous solar manufacturer i think it's name

was goldman sachs, lehman brothers, bear stearns and the others and who did they sell them to? public employee pension funds and. >> host: you volunteered your political evening but as you're listening to the campaign rhetoric do you think one side, does obama seem more likely than romney to solve the problems. >> guest: the coverage has nothing to do with what is going on at all. first of all the plan eliminates all taxes on lap capital and everybody that has 12 and a half million dollars of wealth. and people -- that this is the system that says let's deal for the rich live tax and we are going to further the policy shifting things down and i believe there would lead to wealth and the situation where the entrepreneurial spirit is killed because it's the newcomer but grew up like i did that makes the success of himself and makes the economy grow and we would become like 18th-century france and your economics were determined by who you picked up as your parents, your gender and birth order. obama is actually the most business friendly president in the american history and i rea