had to buy back the property from lehman brothers. >> still ahead at 6:00, firefighters in san diego county get a helping hand from mother nature, but the firefight is far from over. >>> a boating trip on the bay takes a scary turn. you'll fine out what it took to rescue eight people of their canoe spring a leak. >> could this be the summer of delays? runway closures at sfo begin today and will last for months. >> i'm in the accuweather center. some coastal low clouds moving in. i'll have your neighborhood >>> calmer winds have helped firefighters get a handle on wildfires in san diego county. this week nine separate fires burned almost 20,000 acres. thousands of people had to evacuate as flames spread through canyons and into neighborhood. there are three fires on camp pendleton forcing families to leave. >> hopefully we can come back to a house in one piece and not burned down. >>> so far these fires caused more than $20 million worth of damage, and one man has ban arrested. the pleaded not guilty to arson charges. witnesses told police they saw the man put dried brush on a smolder

had to buy back the property from lehman brothers. >> still ahead at 6:00, firefighters in san diego county get a helping hand from mother nature, but the firefight is far from over. >>> a boating trip on the bay takes a scary turn. you'll fine out what it took to rescue eight people of their canoe spring a leak. >> could this be the summer of delays? runway closures at sfo begin today and will last for months. >> i'm in the accuweather center. some coastal low clouds moving in. i'll have your beer. dog. music. yikes. skip track, please. i'm hungry. impossible? maybe, but honeywell's latest innovation gives me hope. hello, thermostat? "hello. please say a command." i'm feeling hot. "changing set point to 68 degrees" the wi-fi thermostat that listens, learns, saves. from honeywell. thank you! thank you! dedicated bankers born to go the extra mile. you've been such a big help. it's what i like to do. so you can choose a bank where helping people comes first. chase. so you can. >>> calmer winds have helped firefighters get a handle on wildfires in san diego county. this week nine separa

walked throughle the lehman brothers investigation. what i think ultimately happened was, there were not adequate resources put into it by the department of justice. they got overwhelmed and there was a lack of coordination. it was assigned to three different offices. push,uggests an enormous but broke up the investigation and rendered it inadequate. to onemately came down woman in the u.s. attorney's office in manhattan. she was very confident and smart. that is not the kind of resources to bring to such a complex calamity. i don't think the ceo was adequately investigated. i don't think they adequately investigated the cfos who misrepresented the state of lehman brothers in the months leading up to its failure. the ceo still a multimillionaire. he's living a fairly quiet life, trying to stay out of the limelight. feeling for the good about himself because he is a free man. host: what's the role of the securities and exchange commission? guest: they blew it as well. i don't think they adequately sanctioned firms. they certainly did no

book, former treasury secretary tim geithner says he was open to a solution that would affect lehman brothersn business. lehman cannot get government aid or attract a buyer. in an interview with charlie rose, mr. geithner said the government's bank bailout program was not meant to help wall street. >> what we did in those weeks after tarp authority and after president obama was elected, you know, it was dramatic and unpopular and offensive to many, but it was remarkably effective against decades and decades of history in trying to design things to protect people. we did not do it to protect the banks. we did it because there was no other option to avoid the risk of mass unemployment. years had five and a half after lehman's bankruptcy, and a small group of hedge funds is making billions on its lehman investment. lisa abramowitz looked into this and joins me in studio. thanks for your time. why has this been such a good trade for the hedge funds? >> this is hard to value stock, talking about credit derivatives, contracts, and real estate but back in the heart of the crisis which had a very dif

sun cal had to buy back the property from the lehman brothers estate. in 2005 the land sold for $100 million. sun cal is not saying how much they paid this time around. >> there is a move in san francisco to improve relationship between two groups of renters and owners. >> you and i are neighbors and friends. >> you and i are neighbors and friends. >> yesterday members of the group "better housing policies" marched to a protest at city hall. some of the rental laws intimidate mom and pop landlords. they want changes that will encourage small landlords to rent space. more units on the market will help drive down housing costs in san francisco. >> elderly residents of a century old convalescent home in san francisco wonder where they will live come july. another company wants to take it over but at this point they are planning to close. >> you may not have heard of university mound ladies home but it's been here in san francisco's bortola neighborhood since 1884. a gift from james lik, once one of california's wealthiest >> it's goal is affordable, compas

crisis in 20008 hits and dice sat and watched the crisis unfolded and watched bear stearns and lehman brothers collapse a.m. of footage at night only to discover their offices were just across the street that all cbo and bundles were worthless. i said this is that we will have an amazing discussion about accounting. why it works when it doesn't do we will hold that the accounts and discuss them because that is what happened in the 18th century with the bubble. in france later it never happened. i thought that was an interesting disconnect is there a story? i started to think of the financial crisis and a cultural way. with the financial crisis and income inequality people look to economist at least for this conference i would just bring max back into the picture because it started to think about culture and things like a six. i was very interested in why people overlook accounting. so i started to look not just as states that work to the other moments where accounting failed. it was an odd tripp. so i went to the archives to looked at the accountants and i saw the books and they were amazing a

sun cal had to buy back the property from the lehman brothers estate.n 2005 the land sold for $105 million. sun cal is not saying how much they paid this time around. >> a senior care wants to take over a university ladies home, but at this point the facility is planning to close. >> you may not have heard of university mound ladies home. but it's been here in san francisco bartolo neighborhood since 1884. a gift from james lik, once one of california's wealthiest's men. it's affordable, compassion national care for seniors. but now the 134-year history of this residential facility may be coming to an end. >> they said they would close. it's a very, very nice facility. >> bonnie has lived here for three years. she and 52 other residents were notified the home will close its doors july 10th. >> since the beginning of the mission of this home, the ability to generate enough revenue from the resident fees were not adequate to cover the operating costs. >> bill is the interim executive director. >> our number one primary concern is finding new homes. >> i d

is that the same as arthur andersen or the lehman brothers? guest: i'm sorry to hear about your case. i'm not familiar with it. government wildly failed homeowners who were deeply underwater in their homes and were foreclosed on. this was a policy disaster from the obama administration were they implemented program after program after program that was wildly inadequate. they refused to fix it -- did not address it to fix it quickly enough. there was a big concern that fixing that and helping homeowners would hurt the banks. i think this is a scandal, a tragedy for the country. individual homeowners were deeply harmed by it. host: jesse eisinger's piece in the new york times. it is called only why -- why only one top banker went to jail for the financial crisis. thanks for your time. guest: thank you for having me. jim oberstar died this morning at his home in potomac, maryland at the age of 79. termsngressmen served 18 in the house and became chairman of the transportation committee in 2007. he was defeated in a reelection bid in 2010, and aft

theas at the bottom of response to the fall of lehman brothers. he writes about that experience and much more in this book. it is called "stress test: reflections on financial crisis. " i am very pleased to have tim geithner back on this program. you see it differently, what you went through, because you have had the benefit of time? >> i do not think there is enough distance for me to see it dramatically differently. i would like to claim i had more distance. i wrote this very quickly. the crisis really peaked about four years ago. i was still very close to those decisions. back -- although obviously, i made some mistakes, we got some things wrong -- i feel very good about the coordination to protect the public. helpingo be part of make those judgments. i try to write candidly about these in the book. i think the most important , initially,affected the depth of the crisis and the strength of the recovery, or the use. we were late to figure out how to marshal enough financial force to prevent this panic from really hurting the economy. that is bec

walked throughle the lehman brothers investigation. i think ultimately happened was, there were not adequate resources put into it by the department of justice. they got overwhelmed and there was a lack of coordination. it was assigned to three different offices. push,uggests an enormous but broke up the investigation and rendered it inadequate. to onemately came down woman in the u.s. attorney's office in manhattan. she was very confident and smart. that is not the kind of resources to bring to such a complex calamity. i don't think the ceo was adequately investigated. i don't think they adequately investigated the cfos who misrepresented the state of lehman brothers in the months leading up to its failure. the ceo still a multimillionaire. he's living a fairly quiet life, trying to stay out of the limelight. feeling for the good about himself because he is a free man. host: what's the role of the securities and exchange commission? guest: they blew it as well. i don't think they adequately sanctioned firms. they certainly did not ref

very small banks, verse that says x, various banks, other non-bank institutions, bear stearns, lehman brothers, and conclude ha, there's one distinguishing feature around wrist or complexity that we can now drill into that as a panacea in response to the concern and then control the debate going forward. the crisis clearly reveals that it is more comprehensive in that regard, so we cannot just make a dent -- a declaration. it is an important combination of all of that and there is nuance involved as to how to best approach that. of course, the response to that at the time was the dodd frank legislation. you just heard from the authors of that legislation. the best policy thinkers of the time, or at least those charged with the responsibility of responding to the crisis -- that was not dispositional inclined to be generous to the industry came up with the dodd frank approach. the paint is not your drive on that framework. it is not even fully implemented, so we can certainly have a debate about what it six -- about what it six facts might be, but the matter of fact is that is not yet complete.

freddie, long-term capital, various small banks, midsized banks, big banks, non-bank institutions, lehman brothers, the list goes on, and conclude -- there is one distinguishing feature around risk or complexity that we can now drill into that is a panacea in response to the concern and control the debate going forward. revealed thatarly it is more comprehensive in that regard. we can't just make a declaration. it is an important combination of all of that. there is nuance involved as to how to best approach that. the response to that at the time was, the dodd frank legislation. you just heard from the authors of that legislation. the best policy thinkers of that time or at least those that were charged with the responsibility to responding to the crisis in a congress that was not inclined to be generous to the industry. the dodd frank framework. the paint is not yet dry on that framework. it is not yet even fully implemented. we can certainly have a debate about what its affects might be, but the fact of the matter is it is not yet complete. any declarations on how it does work at this point are

write when you worry about your loved ones and how they would go through the same code of the lehman brotherswent through that took down the rest of the system when it was triggered and how at least four times bigger than the lehman brothers depending on the accounting system a lot more of the derivatives and a lot more trillions of dollars with no other company in the world to manage how this would be through the bankruptcy course. so they spent a lot of time and money writing these things and then the regulars are supposed to check these things and tell us somehow that j.p. morgan chase at the time when maybe other companies would go down as well would go down through bankruptcy without harming us and what they submitted to the answer is there is no way in the world that is what happened so they would say yo see read my lo more bailout. >> in other words if you let them drive 90 miles per hour, so the point is not all of these regulations are effectively useful. there are things to do and they are not that complicated. >> the dodd frank act is the bullshit. it's true. you can drive through

>> lehman brothers europe has been a good subsidiary.re've been some that have gone from initially trading at $.20 on the dollar, two raider than 100 cents on the dollar -- to greater than 100 cents on the dollar. >> really. amazing. thank you so much. >> we are approaching 26th at the hour, so it is time for on the markets. one particular stock, green mountain is soaring about nine percent after coke boosted its stake in the company to 16%. they are now the largest the one hand you have them desperate for some kind of business that might rely on sugary drinks, and on the other hand they will produce and sell coke brands at their brewer. the synergies for these two companies might be in place. >> a terrible day for david einhorn, whose green light a is short. >> coming up, why google calls this really disappointing. ♪ is "marketis makers." >> welcome back. tuesday. europe's highest court has served a major slap in the face to the internet giant google. the european court has ruled that they have the right to be forgotten, and say they ha

and, just days later, the decision to let lehman brothers go bankrupt.sury secretary, he faced bailout backlash, especially when word broke that a.i.g. planned to pay executives $165 million dollars in bonuses. >> i share the anger and frustration of the american people, not just about the compensation practices at a.i.g. and in other parts of our financial system, but that our system permitted a scale of risk-taking that has caused grave damage to the fortunes of all americans. >> ifill: critics also charged geithner did too much to help the banks and too little to help underwater homeowners. elizabeth warren, then-chair of the "tarp" oversight panel, led the critique here on the newshour in june, 2010: >> it's as if we had a boat that's taking on gallons of water, and they're trying to bail it out with a teaspoon. it is a badly designed program that, from the beginning, was too small, too slow, couldn't be scaled up. >> ifill: geithner left government last year and became president of warburg pincus, a wall street private equity firm. he's now telling

really lehman brothers that did. bear stearns was saved, citigroup, which many folks thought was going to go under was also saved, and other banks on wall street. there is a suspicion that no matter what these guys do the government will be there to bail them out. in dodd frank the idea was to eliminate that, that notion that some institutions were too big to fail. , in his book, put a bit of reality on that and said you can never really actually thatnate the possibility you might have to bail out a large institution. he just do the best you can to prevent that from happening. it is one of those contentious , youg with -- arguments bail out these bags can believe creates this moral hazard, and they feel like they can never go under. geisler has certainly -- with the book of and with his statements, has fed into that because he has supported the notion that you should not allow these huge institution to fail what you just want to set up a situation where you do not have to make that choice down the road. let me ask yo

will we see a lehman brothers style follow-up as some have predicted.t is next. ♪ >> time for today's global outlook. china could surpass the u.s. of the world's largest economy this year. that is an attention grabbing headline. comes from a new world bank study. the trouble is, michael mckee says it is ridiculous. everyone talks about 2027 as the key year they take over as the world's largest economy. measure itis how you and whether it means anything. gdp obviously is the sum of all the goods and services, the value sold in a year. something else called purchasing power header -- parity. this is what it cost to live in a country given the differences for what you buy in what you pay for it for exchange rates. the world bank compared ppp to gdp. they recalculated the numbers it, sayingnd updated it could happen this year. the problem is, that is nonsense at this point. no one believes the chinese economic data are any good, not even the chinese leadership. a cousin that, hard to use the numbers. were good, they do not use them for a couple of reasons.

wondering if would-be repeat of lehman brothers type of scenario. push --u are going to and olivia, you know this. it,ou're going to push for but you don't know what the consequences are going to be, that is a bit difficult. >> it has come quite political in the u.s.. eric holder seem to be under pressure that you were not in a criminal convictions. are some banks too big to deal? he is under a lot of pressure to get some scalps. it does seem like a bit of an about-face for brady dougan. he went to congress and he told the congress that this was not systemic. >> he told them it was a few swiss bankers that skirted. if they plead guilty today, what would matter is what they plead guilty to. that is quite development. there are some quarters that of putting a lot of -- that are putting a lot of pressure on him to step down. when you have been at a bank since 1990, when you've been on the executive board since 2003 and a ceo since 2007 and you have this massive issue and you are asked if you know about it and you say no, that is a question of oversight

class that the lehman brothers could deliver hedge funds out there. completely. catalyst that's bird the fed to start this unprecedented program this isrted $3 billion. really part of what is really driving the increase in asset racist here all of these hedge funds invested in, and delivered these lean dollar returns. who do they buy the debt from? some of the biggest banks were counterparties from the derivative contracts, realistic contrast, all of the different businesses lehman was engaged in. morgan emmy, the royal bank of scotland, credit suisse. they could not hold hard to as hasssets easily funded. to really review bankruptcy claims. these are incredibly complicated claims and they rely on bankruptcy judges to make decisions that may be fickle. prices, for asset example real estate. in 2009, that was not as clear that as it might seem in retrospect. the hedge fund could come in and bush -- it off your books, and it is an incredible trade or them. these are liquid pieces of securities. hedge funds are in a better position to make good or dabble on that. >>

geithner would confront a series of rolling crises, the rescue of bear stearns, the collapse of lehman brothersarket. did you feel like you were the kid at the dike plugging your finger in? >> i went to see paul roker on saturday of the bear stearns weekend and i walked into his apartment because i wanted to tell him where we were. and he said, how's your finger? i didn't know what he was talking about, but he was referring -- >> reporter: he was referring to your finger in the dike. in his first television interview since leaving the treasury last year, geithner acknowledged he'd not always made his case well. >> there were a lot of communications issues. >> reporter: issues is a nice way of put it. what would you call them? >> how about failures. reporter: in his new memoir "stress test," he tries to set the record straight. >> i think a lot of people still feel that the banks should have been made to pay in some way. >> yeah. reporter: either in terms of restructuring, less executive compensation, in some cases some people should have gone to jail. >> i think everybody feels that way. >> rep

i assume it is below lehman brothers. if we wereimum size going to take deposition should we allow a financial institution to be? >> i agree with barney on this. as did 90% supported of the congress. the issue on that bill had to deal with the community reinvestment act. it was a huge debate during that bill. there was general adoption of the notion that somehow we can create firewalls in the 21st-century and we didn't need to have the kind of separation. my own view is you don't want to go back. >> dodd-frank deliberately pushes risky activities out of the banking system like the volcker rule. we have seen some assets move out of the banking system because of higher capital which is directly aligned with dodd-frank and compelled. does the act sufficiently address the buildup, the potential buildup of risk outside of the traditional banking system such as through the up stock? is it the right way to go in the long haul? >> i believe so. the idea that every time something emerges, new product line emerges or some youinstit

i'm not sure they're necessarily was a lehman brothers culture.the u.s., but theas a cultre oure of investment bank, built from the ashes. a global positioning when everybody outside said they could not do it. everybody outside the bank and said downsized, downsized. this is barclays giving in. >> how much of this is tied to the rate environment? the building up of the investment bank and then the rolling back of that now? ys andbarclas deutsche, if you look at the 12 month forward roe, you get a cost of capital very similar for both stocks. both of those built their global businesses at a time when fixed income was booming. that was the obvious place to build it. so they are more exposed than some. this rate is facing environment. every bank is facing this situation. this is to do with regulatory pressure. this is to do with high-cost space. this is to do with not quite d enough spread of businesses to handle that slow down and rates and stay at the top table. >> this change that he's reducing theay is investment bank, and reducing the risk weigh

the jobless rate plunged to the lowest level since the collapse of lehman brothers. employment gain in with the biggest since january of 2012. dropped to six point three percent. the lowest since september of 2008. but get some analysis. we have peter cook standing by. and michael mckee. thanks. we have a tale of two jobs reports. one index shows job creation and the other, job losses. break this down for us. >> the establishment survey which creates -- rates businesses divided the good news. the household survey from which we derive the on implement rate paints a different picture. 800,000 people dropped out of the labor force, pushing down that unemployment rate. -- net job loss during the month. the household survey says 73,000 jobs lost. there is a real dichotomy there somesuggests that there is worry about how strong this recovery actually is. maybe a bit of a weather snapback. but not a real acceleration into the spring. >> there is a big difference between quantity of jobs and quality of jobs. how my today's numbers impact the minimum wage debate on capitol hi

bank of america, which was going to fail, lehman brothers failed. citibank would've failed. the only one left within jpmorgan. book of you would've failed. and so those smaller community banks would've been able to take over that. but could we have withstood the immense, of the global financial system? >> would our system survive without it? >> i tend to think that it would. but from a practical standpoint or a psychological standpoint, it gets right down to her people panic little good reason. and that is such a tough call, you call the administration makes. >> i think a short and sharp depression, and who knows how short it would have been, but something to mitigate with policies and fiscal symbolists that actually works. would that have mitigated the length of this? and are you can -- confirming this? >> we have taken this and turn it around and are making money now. but it's hard and i worry about a lot of the smaller banks. >> thank you very much for coming in, michael. coming up next, the presidential election two years away and the media is already calling the winner.

ever know what happened to lehman brothers shortly thereafter.you very much, nicole. a totally different subject. ben affleck has been banned from playing blackjack at the hard rock casino because they say he was a card counter. he is still permitted to play other games, just not like jack. he is banned for life. a man familiar with the intricacies of counting cards, the author of the book "the house advantage" and joins us now. you were a card counter, weren't you? >> yes, i was being stuart: a band you, didn't say? >> yes, said i could not play blackjack. same casino. stuart: i am told if you play blackjack at a vegas casino these days, the shoe uses six different decks of cards simultaneously. doesn't that make it very difficult to count the cards as they come out? >> you are not counting every single card or memorizing every single card, all you are doing is tracking the cards you have seen so you understand what you're going to see. all you are doing is look at how many high cards versus low cards, that will help you understand what your odd

he was there when lehman brothers collapsed.ites in the book that the government was pow powerless to prevent a catastrophic default. the panic that ensued froze credit markets around the world. he says it was like fighting world war iii with general washington's army. and the $700 billion bailout brought him in to conflict with the bailout's watch dog, who insisted that wall treat fat cats take a haircut. he says quote, he assumes our motives were self-evidently sinister as if we helped banks for profit. he disputes that. others have also taken issue with some of geithner's account. glenn hubbard was a financial advisor to mitt romney. hubbard says geidner was a liar. but he was there on the front lines during some of the most difficult times this country has faced. that's our show. >> >>> american surveillance planes join the search for nigeria's missing school girls. >>> hello, welcome. i'm steven cole in doha. these are the top stories on al jazeera. >> half of the south sudan - 10 million people - will be displaced internal

. >> you read this, it seems they had a case against lehman brothers, they cooked their books, said assets were valued at x and then they let them go. and "the othe the other guy pay. neil: who is paying? >> stock holders and customers. neil: argument for this from the beginning was, banks you can't too far, i can remember back, no offense to mr. unger with companytty reinvestment. idea was you have to get people in homes. from a -- i am not forgiveing them but you give an unstution power and brave lang to chase this business don't be surpriseed if they try to collateralize it. they could not win for love or money. >> community revitalation act under jimmy carter caused this turmoil with all of the housing lones that went to subprime loans, look at regulations on credit card, essentially people are think they ar are looked out for guy the benefit whether they put these regulations in place. neil: your points, i am not a saint, you are by the way. but then it would not surprise me, if you have to lend in an environment with politicians are badgeing on your head, you will try to come up with

course we look at that, and timothy geithner says he would support a low to help barclays buy lehman brothers back in 2008 but then resulted in the biggest bankruptcy in history. the former u.s. secretary feels divisions between officials safehaven. british lawmakers do oppose the deal. andrew ross-sorkin sat down to talk about this and you can see the interview at 8:00 a.m. on "squawk box." >>> european foreign ministers are arriving for talks in brussells this morning. where they are expected to step up sanctions against russia. in the lance few minutes, the kremlin responded to the referendums in ukraine saying the results should be treated with respect and implemented without violence. pro-russian rebels declared victory in the referendum on self-rule for the east of the country. organizers said 90% voted in favor of a break from authorities in kiev. the eu, meanwhile, declared the vote illegal. we have a ukraine risk analyst from control risk joining us, stephen, however much we look at the results and suggest that the votes have been rigged, right now what we are looking at is certain p

when lehman brothers collapsed.ly down there, spoke with a number of people on capitol hill. and that's sort of where we saw the split. >> you had no extra clothes. i wanted to save you. >> come on the show, we talk about underwear. >> there is nobody that thinks back and thinks lehman brothers was the right call. >> i'll tell you what was scary though. i was in capital hill walking around one day off when the bill was being written, and i had a fairly prominent number of them ask me what it was. >> this was a great block. we're going to take a break and cool you down. chuck todd, we'll watch "the daily rundown" coming up president and brian sullivan, deciding in the break whether you can stay. >> everything's fine. >> i vote we keep him on "morning joe." we keep him. >>> still ahead on "morning joe," edward snowden may have blown the whistle on government spying. but history of intelligence gathering goes much deeper. front line's compelling new documentary. then the answer to how china transformed from a strugglin

one of them was david einhorn back against the lehman brothers. as was at a time where he came out and crystallized it. he said government regulators should elationward a re-cap hopefully before federal taxpayer assistance is required. that proved to be a good call at the time. he also made interesting calls in 2011. he said steve ballmer should go as ceo. that cannot happen right then but it ended up happening. in 2012, after he asked a question on a conference call and did not mention it at the conference, it has fallen and rebounded, in that case, it was by virtue of the fact of something that was not said instead of something that was no it -- was. at a special conference presentation, not part of the made presentation but rather in december of 2012, we talked about general growth properties, which turned out to be very profitable. and then a sampling of other calls we got, one of the protest in 2011, justs -- said by the dollar and in 2012 semester, we had kyle talk about japan becoming completely insolvent. a lot of dramatic calls have come

they had credibility in particular because they were not telling us of this until lehman brothers went bankrupt. i think they try to save lehman. i do believe they were honestly surprised by the depths of the eaction. we all said, this can be as bad as the great depression. it could've been worse in this meltdown. during the great depression, you still had granularity in the world. something can be happening here, it won't be affected there. by 2008 we were on one financial grid and the whole thing was grinding to a halt. it didn't occur to us to say o. one other thing about -- the initiative and a time like that is inevitably with the exception. we had two choices. either say no or say yes with modifications. there was no option of that. >> in fact, you gave enough authority that they could change their approach because you remember in tarp they were going to purchase assets and you gave them the authority to provide these equity injections and that's what they did. >> they have paid back. >> at some point, you determined that legislation beyond the tarp was needed to reform the syste

he was president of the new york fed when lehman brothers collapsed. he was a political albatross, geithner told obama. there were better people for the job. why when he ultimately took the job, it didn't take long for geithner to feel conflicted. in his third day as secretary, he was walking into his first one-on-one meeting with the president when an activist stopped him and told him he was going to denounce him to the press. >> and you said, i'm not saying anything about this, so the president said what he was going to say, and as you say, you watched uncomfortably. why were you uncomfortable about criticizing executive in competence? >> at that point i felt like my job was to get the economy growing again and make sure we had finances in place to make that happen instead of continuing to crush the economy. i felt that was my principal responsibility and i wasn't going to be able to help much in trying to ease the understandable public anger because of the tragic damage of the crisis. i was sitting next to the president of the united states, a very

what would become of lehman brothers? what would become of long-term capital. would country have even been regulated? theit is revisionism to say crisis would have been prevented by a separation of commercial and investment banking. >> it is revisionism to a certain extent, but then again we weren't having the debate about whether that model would bring down the financial system. >> i think the facts are that enterprises of different business lines, different complexities, different risk profiles fail miserably. they all fail. the real question is are there different things we should do for the most systematically impactful to make sure we don't have more collateral damage. wetom mentioned, he thinks will still have significant presence under his proposal on restlobal stage, but the of the world's banking and financing markets are even more concentrated than the u.s.. competing on a global stage, and we need banks of all sizes to meet our needs. that includes large, global enterprises. >> a couple things. no one said by separating these we would andan failure.

i assume it is below lehman brothers. to what maximum size if we were going to take deposition should -- take deposition should we allow a financial institution to be? >> glass-steagall, i agree with barney on this. i voted and supported as did 90% of the congress. the issue on that bill had to deal with the community reinvestment act. it was a huge debate during that bill. there was general adoption of the notion that somehow we can create firewalls in the 21st-century and we didn't need to have the kind of separation. my own view is you do not want to go back to glass-steagall. as tempting as it would be i , think it is a mistake. we need to have 21st-century ideas on how we deal with these matters. as bonnie pointed out even if , you did today what we went through in 2007, 2008, it would have done a thing. -- glass-steagall would not have done anything. youhe volcker rule moves significantly. >> let me pick up on that. dodd-frank deliberately pushes risky activities out of the banking system like the volcker rule. we h

street insider and renowned journalist, author and speaker, nomi prins at chase manhattan bank, lehman brothers, bear stearns, director of goldman sachs with a distinguished career on wall street has only distinguished herself further by sharing her expertise by the written and spoken words. widely sought after by the outlets she's written a number of acclaimed works including other people's money it takes a pillage and black tuesday. she joins me to discuss the most recent work all of the presidents bankers they had their alliances that drives american power. welcome and congratulations on such a study of this book as we take a look into washington, wall street and the families that have had such an enormous impact on our nation and on the world. >> thank you so much for that lovely introduction. >> host: my pleasure and it was easily done given the fabulous career that you have had both on wall street and now off of wall street and the very world so it is a pleasure to have you. let's dive right in. this is incredible and unparalleled written history in the relationships between wall street,