lehman brothers did not cause the crisis. lehman brothers exposed the crisis. all of the mega banks who were a byproduct of the repeal of glass-steagall, separating casino style banking from the more boring banking, they had the same garbage subprime mortgages that lee man brothers what. lee man brother was just a canary in a coal mine, posing the problems in the rest of the bank. we had supreme court justices say things like concentrated economic power leads to concentrated political power. any time you have all that money swirling around in washington, d.c., they own the show. we see wall street lobbying at levels we haven't seen since the financial crisis. >> this is something i asked senator sanders yesterday. how do you do it? there's no magic wand to wave. if the banks are as powerful as senator sanders contends, the idea of breaking them up might sound good on paper but what's the actual pathway forward? how do you go about this project? >> i think you need an all of the above approach to backing up the banks. you use the law that bears barney frank's la

like,s a lehman brothers, crisis for commodities. do we really need to see prices this low, even lower than when lehman brothers collapsed? what takes longer to rebalance, supply or demand? >> nobody really knows. it depends on how quickly they can adjust to the downside. iran is coming on earlier, putting on pressure. the case that this is over exaggerated when you compare it to 2008. joe: i want to talk about china, the chinese yuan. hibor, yuan-denominated borrowing. up, go out prop it into the market and purchase offshore yuan, creating a shortage of them. r just overshows hibo 0%, now surged to 66%, an extraordinary level for one of these benchmarks, showing a , andage of offshore yuan how hard they have to intervene, how much it of a distortion the intervention is causing. gasped when it jumped to 10%. >> there was actually a good thing for the market, saying the pboc saying we don't want a lower yuan. it is a better thing for global equities. to how hard of a distortion and intervention they had to do. >> they took a page out

morgan chase is settling a lawsuit that goes back to the collapse of its rival lehman brothers in 2008. the settlement will cost j.p. billion..42 in return, it can walk away from drained at that it lehman brothers of cash before it fully. creditors said it takes directed -- it extracted a windfall at their expense. france announced a plan to help livestock farmers. the money will be paid out to help farmers with a slump in working very prices. poultry farmers will receive a piece of the pie after an outbreak of bird flu. givellows an initiative to farmers tax rebates and support for investments. hispresident of iran says country is the safest and most stable in the middle east. hassan rouhani made that claim trying to attract investors at a business forum in italy. his attendance was part of a four-day tour of italy and france. rouhani also met with the pope, as you can see right there. the first visit by the head of an iranian state in nearly two decades. deals to the tune of 17 billion euros have been announced in italy, and more is expected in france on wednesday. i need to get my p

i worked at lehman brothers. i ran a sales desk. and in 2008 lehman brothers went down, barclays picked up some of the people, and i was lucky to be one of them. i was managing director at barclays and i ran an international sales desk. >> active always? a triathlete type or -- >> always active. >> okay. >> big skier, runner, cyclist. i always liked to be active, i always liked to be fit and, well, it changes. but i'm still trying to do that. >> what happened november 26, 2011? >> exactly. so i was, i was an avid cyclist. most weekends i'd go out on a long ride, let's say a 50-mile ride from my home in bergin county, new jersey. sometimes i'd ride over the gw, go over to the park, spend some time, go home. but usually i went north. the idea was to go up to rockland county to avoid the traffic. finish so on that day, november 26th, almost four years ago thanksgiving weekend, i was coming back from a 50-mile ride, and most of my friends had already peeled off for home. it was just me and my buddy zack. >> okay. >> and out of nowhere a

if weal bail them out we made a tremendous mistake not bailing out lehman brothers. the idea of not bailing out a big bank when that could lead to another recession is just mind boggling. i don't understand. the banks are not an alien entity. the banks are us. if they make mistakes, commit criminal acts bring the people before the grand jury. don't neglect to bail them out. >> when you say humble opinion from palm springs it's a weird oxymoron. >> it sets audiotape an expectation. if the banks want to doris can i stuff, if they are too big to faille and they know it they will doris si stuff. they are almost emboldened to do so. >> charlie would remind you that's a moral hazard. i had to laugh. the thought of him being hung over. there is nothing untrue or unreal. >> should have seen that on air appearance. >> you think i'm kidding. >> the bush administration acted completely appropriately. the primary concern was systemic failure of the banking system. jerry is right. the banks are in better shape now. that means their debt levels are significantly lower. they believ

glass-steagall would not have prevented the financial crisis because shadow banks like aig and lehman brothers, not big commercial banks were the real culprits. secretary clinton is wrong. jessica rae: sanders currently trails clinton by double digits in the latest polls. jejeica rae: another big powerball prize is up for grabs. tonight's drawing will be for an estimated 500 - million dollar jackpot. million dollars... but lottery officials say the surge in ticket sales caused an increase. jessica rae: and here in iowa... many people in the work place are trying to cash in on the big prize. iowa lottery spokesperson mary neubauer shared some tips for powerball office pools. "definitely keep careful of who put money in and who didn't especially if you're buying ckets regulary so there wouldn't ever be a question of wether of not someone was in that week or not " jessica rae: this is the sixth largest jackpot of any u.s. lottery game on record and the fourth largest powerball jackpot. jessica rae: some changes to the off road speedway's usage were voted on last night at norolk's city planning me

you obhhio governor did not overlook his youngest support is. 18 years in congress, working for lehman brothers, a governor who turned a deficit into a $2 billion surplus. governor kasich: part of the reason why i ran is i knew if i won i cannot make anything worse. cynthia: he sat down with me to say is most proud of being an architect of the last balanced budget in the united states, the republican who blends conservatism with compassion. governor kasich: the fact i'm concerned about people who are poor or disabled or people who are mentally ill or drug addicted, that is conservative. it is an opportunity to give people a chance to rise. it is a sin not to -- in pittsford mold his character. governor kasich: common sense was one. god-fearing, playing by the rules. cynthia: he may have the biggest after the time -- biggest appetite -- governor kasich: i finished the best porkchops at the iowa state fair. cynthia: his goals as president, to balance the budget, restore our military, and unite americans. governor kasich thank you very for joining us. you have been spending more time in iowa in th

it was acquired on the catastrophic weekend that saw the demise of lehman brothers and the near collapse of aig. anthony: today's guest is responsible for maintaining the maryland's culture -- the merrill lynch culture. his strategies next. ♪ announcer: this show has never been solely about investments. we have talked about anything that affected people and their money. ♪ announcer: from times square in new york city, the new wall street week. anthony: i am happy to welcome john teal, the hallowed -- the head of wall street management. john: i grew up in maryland. gary: he went to college where? john: i went to green valley state. i learned quickly that football was not in my future. i was living with my brother, paying rent, and i decided i could be broke and warm. so i transferred to florida state. [laughter] gary: did you play at for the state -- at florida state? john: i was an accounting major. lynch in at merrill 1995 as a financial advisor. i had a cpa. anthony: what was your strategy? john: it is 1989. i am an accountant, not a salesman. i had been sent to sales training in the i

must be a tax increase unless we encounter something really shocking such as the collapse of lehman brothers or a major disaster. >> the prime minister acknowledged that the april 2014 rate increase greatly affected consumption. that year the tax went from 5% to the current 8%. abe added that the government needs to pass down japan's globally leading social welfare system to the next generation. >>> the average price of a new condominium in the tokyo metropolitan area last year was at its highest level since 1991. a private research firm says the average price was about $470,000, up more than 9% from 2014. the rise is mainly due to increases in construction and labor costs. >>> japan ahoping the u.s. will become a stable source of crude oil after washington lifted a 40-year old ban on shims. japanese wholesaler kosmo oil will handle the first delivery. the company will buy 300,000 barrels that will be shipped from houston, texas, in late february. >>> that's it for business news. i'll leave you with the markets. >>> in a show of modern fatherhood, prominent figures from david cameron to mark

this is the first annual decline since 2009, a year after the collapse of lehman brothers. the statistics service said exports from january to november declined 32.1% from the same period in 2014. retail sales dropped 10% year on year due to a rise in consumer prices and other factors. president vladimir putin said on monday that the government's first priority will be to do all it can to maintain people's standard of living. he made the remark at a meeting of supporters. putin gained public support by achieving economic growth thanks to high oil prices during the 2000s. observers are wondering how the economic downturn will affect his approval rating. >>> ford motor company says it will withdraw from japan and indonesia by the end of the year. in an e-mailed message to its employees on monday, a spokesman said it will end all operations in the two countries in the latter half of the year, including sales and product development. the message said auto sales in japan are expected to decline in the coming years, according to the japan automobile imports association, nearly 5,

it was an investment bank like lehman brothers. it was a big insurance conglomerate called a.i.g. it was a mortgage company called countrywide. it was another bank, not one of the big five, and others who are what is called the shadow banking sector. i said we are going after risk wherever it is in the financial system. paul krugman, the nobel prize-winning economist, said i have the best plan. barney frank, who is the frank in dodd-frank, set i have the best plan because i am trying to look at not just what happened in the past prevent that from happening again but what could happen in the future. the best evidence i have that i have the best plan is that the republicans and their billionaire allies are running ads against me. it started a few weeks ago. these two hedge fund billionaires formed a super pac to run as against me to convince them across not to support me. along came karl rove, the errand boy for the billionaires. he is now running an ad against me. another billionaire has jumped in, and he is now running an ad against me. you've got to stop and think, why are they s

alix: a lot of potential warnings, lehman brothers credit crisis. ways, those that call a bottom? >> it might. i think we might have some turmoil in credit markets. margins might get squeeze, labor costs going up, but it will not affect two thirds of the economy, which is consumption. the much more worried about corporate sector than the house hold sector. alix: we will stick with that and talk about the energy companies. oilill discuss 30-dollar and why it is not the end of the world. we will find out why. ♪ trump oning up, donald "with all due respect." let's get to mark crumpton with first word news. >> islamic state claimed responsibility for terrorist attack in indonesia. police say a suicide bomber blew himself up inside a starbucks, than other attackers opened fire, two people dead, five of the attackers, 20 wounded, the worst terror attack in jakarta since 2009. turkey's prime minister says tanks and artillery have attacked isis in retaliation for the bombing in istanbul. he said they targeted extremist positions along side the border, 500 strikes. close one taught him obe

that was before the collapse of lehman brothers.ng increased 3.9 billion pounds in november from the previous month, according to the bank of england. june 2008.est since that is strong mortgage data weak manufacturing data. francine: let's head over to caroline hyde. caroline: sweden will have order danish primethe minister used his new speech warned that his government may be forced to have goals across the german border. sweden is shaking the border by bus, train it, or fairy. saudi arabia has cut ties with iran and expelled diplomats after the saudi embassy in toronto was attacked. this is a protest for the execution of shiite cleric elon musk tried to ship 50,000 vehicles last year they eight graph,580 with manufacturing more than one they shipped 208 suv's in the fourth quarter. thank you so much. the worst ever start to the year for chinese shares created a halt to the circuit breakers are to the test been manufacturing contracted. happy new year it looks like a bad start to the year for the markets in china. it's data that d

mayem appear to have be currently on tour with the circus, they will retire in florida at the lehman brothers 200-acre conservation center be said that growing public concern about their treatment has led to the decisions they make have your own dash-camha is the new in t thing for drivers and thanks to this driver getting aa first-person point of view of what looks like you accidentallye drive drive-off of the cliff. walked away without a scratch happened a year ago in california . share the video on facebook on the anniversary of the crash as a warning two others he says he did not see the sign for the curve seeking once he came out of the tunnel, the car ended up landing on a drain pipe sticking out of the mountain that stopped it from tumbling further . what would you do with more than a billion dollars if if you won that they now that the problem jackpot is up to one . four million dollars for.is >> that means that you can be a billionaire by the end of the week .io and it seems almost impossible to spend that you can have fun trying as they knows kids an idea of what that money could bu

there is no lehman brothers. things are okay. we are creating jobs.and what the china information is for that matter. the fed inadvertently created a whole other set of problems for itself and our economy by leaving rates so low for so long. a lot of investors, steve, you know this well. all of a sudden, mom and pop are starting to pay out debts. what do you know, puerto rican debt defaults. you see more and more of these defaults. people start getting more and more nervous. this stuff is more widely held then you think. maybe it is not subprime housing, but we did not think that that was such a big deal in the beginning either. i will take a quick short break. donald trump not backing down to boycott tomorrow night's debate. a preview of the big night is up next. ♪ can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive? : . . trish: all right, we are sitting at lows of the session, you can see off 181

it was an investment bank like lehman brothers. it was a big insurance conglomerate called a.i.g. it was a mortgage company called countrywide. it was another bank, not one of the big five, and others who are what is called the shadow banking sector. i said we are going after risk wherever it is in the financial system. paul krugman, the nobel prize-winning economist, said i have the best plan. barney frank, who is the frank in dodd-frank, set i have the best plan because i am trying to look at not just what happened in the past prevent that from happening again but what could happen in the future. the best evidence i have that i have the best plan is that the republicans and their billionaire allies are running ads against me. it started a few weeks ago. these two hedge fund billionaires formed a super pac to run as against me to convince them across not to support me. along came karl rove, the errand boy for the billionaires. he is now running an ad against me. another billionaire has jumped in, and he is now running an ad against me. you've got to stop and think, why are they s

morgan and assets of management at lehman brothers. she is a graduate of boston college.ut unless he is the founding executive director to of politics and public service. nearly two years as one of the top communications strategists in the democratic party. most recently, he was communication director of the democratic national committee. he is a veteran of four presidential campaigns. he is a political strategist for four current senators and two former governors. he is advised on independent expenditure campaigns -- i can't quite do this 1 -- independent expenditure campaign arms of the ccc and the ds cc, which he will translate later upon request he has worked upon numerous other state and local races. he is a founding partner in two of washington's leading consulting firms and is a frequent commentator on tv. has an ma ino political management from the george washington university. we have a great program today. i am glad you were able to join us. with that, i am turning this over to bernadette. bernadette: take you barbara. thank you for being with us today. i had th

says that glass-steagall would not have prevented the crisis because shadow banks like aig and lehman brothersnot be commercial banks were the real , culprit. secretary clinton is wrong. secretary clinton says we need fees and a few more regulations on the financial industry. i disagree. [applause] mark: we will talk to senator sanders about his speech today, but now, is what he is proposing good policy or politics? john: i think it is both. it is good policy in the sense of that i think most people think that dodd frank is still too complicated and not strong enough to prevent the promises we had. better politics because there is a genuine contrast. hillary clinton is vulnerable. bernie sanders wants to make that as clear as possible. mark: this is an issue where the base of the party agrees with him more. hillary clinton has fuzzed up the issue and has made it more specific. his campaign knows they need a strong closing argument. i think on the politics, he was right. on the policy, a lot of what he is saying does not appeal to people. he needs to make it clear. i'm a little confused. i read

and what i remember was when lehman brothers collapsed, bernadette used to work there.[laughter] >> why am i rewriting the speech. he wrote the speech in march of this stuff. basically take this stuff and get with the guys and figure it out. i remember talk to go bryan and he's like -- this is the moment in which i shifted from being on a political campaign to governing because we were clearly lucky to win. i remember seeing ben, there's a 50% chance that the global economy collapses overnight. what am i supposed to do with that? he said, well, if things go a certain way in japan like the entire global economy can collapse overnight. there's only like a 50% chance. this wasn't like an open-change exercise anymore. this was like -- like, you know, very consequential events are happening, there's a vacuum of political leadership in the country. he was having to act more so than normal for someone who hasn't won yet. he was going to start acting like someone who was governing. the transitioning is as if he was a president. there was no space. feeling like this isn't just l

glass-steagall would not have prevented the financial crisis because shadow banks like aig and lehman brothers, not big commercial banks were the real culprits. secretary clinton is wrong. jessica rae: sanders currently trails clinton by double digits in the latest polls. jessica rae: the norfolk fire division had the busiest year ever for the area. susan risinger hasthe details. "norfolk fire chief scott cordes says 2015 was the busiest year ever for the fire division, with 358 fire calls and 2007 rescue calls. cordes gave his annual report to the city council earlier this week. the northeast kicks off one week from today in the chuck pohlman ag complex at northeast community college. extension educator john wilson will lead off the two- days of educational seminars with "don't sing the soybean blues," a look at how an scn infestation can cost $80 or more per acre in reduced yields. and the sacred heart youth choir will perform "esther," the musical at 7:30 tonight at burns hall. the 40- minute musical was written and directed by students aaron miller and austin truex. these and more stories

called me everything, said i stole people's pensions and bankrupted lehman brothers.hrough it, like a gauntlet. mark: but do you laugh it off? gov. kasich: i just don't overthink it. i might say to some people, what do you think about that ad, but i just don't live in that world. mark: have you seen any -- gov. kasich: since i have been running, i cannot remember the last time i turned the television on. i don't turn the television on. not because i am against television -- mark: how do you see our show? gov. kasich: i don't. i watch the golf channel. john: the rest of our conversation with john kasich in a minute. in the meantime, don't forget you are watching us in washington, d.c., you can now listen to us on bloomberg 99.1 fm. we will be right back. ♪ mark: here is part two of our conversation with governor kasich at the soda shop in laconia, new hampshire. we started off asking governor kasich what that things are that --would count about himself tout about himself to persuade a voter to choose him over jeb bush? private sector experience. mark: he's got private

it was the same day that lehman brothers filed for bankruptcy. so it was one of those days that gets etched into your memory. the hearing that we were having was the crisis in healthcare. the real crisis was outside the hearing room where the economic system was melting down around us. but there we were in the hearing room focused on the cost of healthcare. we had an enormous panel of witnesses. it took almost forever to get through the entire testimony of all of the witnesses. and a question was asked -- i can't say it was by me. it was by another member of the subcommittee who just asked all of these experts assembled in front of us, what is it going to cost to provide -- if we say we're going to have nobody in this country uninsured, what is the cost going to be? there was one of those eight or nine or ten witnesses who even offered an observation. and his observation was, it depends on what you are going to do. if it's medicaid, you can probably do that for $60 million a year. if at the time there were presidential candidates who were talking

through the peshen gulf and saudi arabia is key to that enterprise, we're going to have a -- unlike lehman brothersi relationship may literally be too big to fail. but i do think we are trapped, we're stuck. we don't like what the saudis are doing in yemen, expensive costly war against houthis, 6,000 dead, large numbers of civilians. we don't like the fact that the saudis are supporting in effort to counter assad in syria, certain groups that are very close to al qaeda. so there has. a good deal of frame. but we done have many friends in this region. and whether the saudis are allies or frenemies i am not sure how you characterize them. the saudis remain key to goals that we have, certainly campaign against isis and an effort to put the syrian humpty dumpty back together again. >> sounds like the u.s. goal to tamp things down, they don't want things to get further out of hand encouraging iran and saudi arabia not to over react. >> of course, implementation of the iranian nuclear deal. we can't afford to be too tough with iranians either. all of this reflects the reality that you have a broken, angr

right before the lehman brothers collapse. why are prices spiking now? the competition is stiff.ord to buy a house. >> for $1.15 million, you can have one bedroom in a walk up. >>> president obama hours from now will layout his executive action on gun control. what is in the plan and can it hold up? "new day" starts now. >> in just hours, here, president obama will officially announce his action on guns. >> lawless in his use of executive orders. >> on my first day behind that desk, those orders are gone. >> it will potentially save lives in this country. >> show time is over, everybody. we are not electing an entertainer in chief. >> we don't need four more years of obama. that is what you are getting with hillary. >> i will let him live in his alternative world. >> standoff in oregon. >> armed occupation. >> we came prepared. >> we will stay here. >> it is time for you to leave our community. >> announcer: this is "new day" with chris cuomo and alisyn camerota and michaela pereira. >>> president obama in a matter of hours will reveal his executive actions to combat gun violence

hillary -- >> we have ten and a half months and i think it's important -- we didn't know that lehman brothers was going to collapse on september 15th 2008 and transformed the debate in that election. we don't know what the election is going to be about. but it's a good bet that the economy and the anxiety that mike talked about is going to be at the center of it. and whoever can speak to that will have a better chance. >> you ran against hillary clinton in 2008. do you see parallels to her then and what is happening with her now and bernie sanders? >> i think that bernie has mobilized a young, progressive base within the party that we've seen before. i think she's more -- someone said she was caught unawares. she has been organizing iowa in a way she never organized it in 2008 and that could provide a firewall for her there. i will say a couple things about the two-them. i watched bernie sanders here. he better develop a better answer on the gun question. he looked flummoxed there. when he said i cast 10,000 votes on a lot of complicated issues. he sounded like he has been in congress 25 year

and what i remember is, like, when lehman brothers collapsed when bernadette used to work there. he was going to have to give a speech the next day at colorado some rally and they're, like, rhodes you got to rewrite the speech overnight. why am i rewriting the speech? at that time i was just doing foreign policy, it's general election, because you wrote the speech in march on this stuff and take that and get with the econ guys and figure it out. i remember talking to brian dees and he's, like, this is when i -- this is the moment in which i shifted from being on a political campaign to governing because we were clearly likely to win, i remember him saying to me there's a 50% chance the global economy collapses tonight. and i was, like, what do you mean? what does that even -- what am i supposed to do with that? there's the yen trading and if things go a certain way in japan, like, the entire global economy could collapse tonight. it's only a 50% chance. so we were in a different space. so the first thing i remember with that this wasn't, like, a hope-and-change exercise anymore.

shadow banking and investment banks and big insurance companies, like what we saw in '08 where lehman brothers and aig were principal causes of what happened to us. finally, i have gotten maybe, less than 3% of my contributions this time from anybody associated with financial industry activities. i have gotten so much more from students and teachers, 90% of my contributions are from smaller donors and 60% from women. so, i'm just -- you know, i didn't know about karl rove's ad against me, but it kind of boosts me up, because it assumes i'm going to get the nomination. he's trying to interfere with the iowa caucus to confuse people on their way to caucus for your time this morning. >>> bernie sanders is up next. later our powerhouse roundtable takes on the rowdiest week yet in this always-surprising campaign. >> announcer: the powerhouse roundtable is brought to you by vote4.energy.org. let's get these dayquil liquid gels and go. but these liquid gels are new. mucinex fast max. it's the same difference. this one is max strength and fights mucus. mucinex fast max. the only cold and flu liquid ge

morning, jpmorgan will pay about $1.4 billion in cash to resolve most of the claims involving lehman brothers. an $8.6 billion lawsuit. sara? >> show you what's happening with u.s. futures. after a 6.4% slide in china's market overnight, red arrows around the globe could be worse. dow futures down only 53 points. half an hour ago, that was 100. we've seen improvement as futures has marched on. s&p futures down about 6, nasdaq down 18. more than 1% declines across the major indices. energy and financials getting slammed the most. red arrows in europe. things are a little better as brent, the international benchmark for oil, does move above $30 a barrel. wti still trading below $30 a barrel. oil is certainly a focal point as well as china. >> absolutely right. and also, the fed set to kick off a two-day meeting today. the big question, will the central bank continue to hike rates or has the recent market rout blown the central bank off course? joining us to discuss the issue is the chief international economist at hsbc. great to have you with us this morning. good morning to you. will the fed b

agreed to pay more than $1.4 billion to settle most of a lawsuit that accused the bank of draining lehman brothers of liquidity before its collapse in 2008. the settlement resolves most of an $8.6 billion suit that accused jpmorgan of siphoning billions of dollars that they did not need. the stock was off yesterday about 2.3%. >>> showers in twitter tumbled in yesterday's trade after the company confirmed the exit of several members of the leadership team. meanwhile, a source close to the situation told cnbc that twitter's head of commerce, nathan hubbard, was named head of media on an interim basis. twitter stateside on the close yesterday down quite substantially, down by more than 4.5%. >>> and sun edison shares rose in monday trade after green light capital has said it has been in talk with the company regarding a board seat and that it's looking to sell the solar company's assets or even the company itself. however, green light said no agreement has been reached on a board seat yet. take a look at sun edison, traded up almost 3% in yesterday's trade. >>> now in tennis. serena williams topped

lehman brothers was not a big bank. it was an investment bank.uptcy and failure nearly destroyed us. so i've said if the big banks don't play by the rules, i will break them up. >> the big banks -- iw executives who are responsible for the decisions that have such bad consequences for our country. >> and yet the charge from senator bernie sanders and martin o'malley is that she has received an awful lot of money from wall street over the number of years. how can she be tough on wall street? >> steve, we found in our research looking at both clin n clintoclinto clintons over time is that wall street, including securities, investment houses, and banks, had over 60 million to both clintons over time, and depending on how largest single sectors donating to the clintons. and that's been true for bill clinton, and it was equally true, maybe even more so, for hillary clinton who, as you know, was the senator from new york, the very home of wall street. so it's a problem for hillary reasons. one is the clintons, bill and hillary, have been very close to

a jpmorgan unit will pay to resolve claims it took advantage of its status as lehman brothers ried tonfairly extract cash. s two of ment involve the three major piece s of litigation jpmorgan left over from the 2008 bankruptcy. that is your bloomberg business flash. manus: thank you very much. today marks the start of the fed's two-day policy meeting. no action is expected this month. it is all about the volatile philadelphia that is plaguing the markets. anna: the chances of hikes from less deral reserve seem likely. at the world economic forum in davos, we asked our top guest what is they expects. >> if you mean cut rates, i would be stunned. >> stunned? >> stunned. >> i would be very surprised if crease. an in >> i think potentially they tighten once more this year. but i'm not a believer that they tighten four for times. >> march is off the table. april is shaky. maybe by june. >> i think the forward market was way too worried about fed action. >> the fed probably made a mistake in september. growth has disappointed. >> going to go lower rather than higher. >> i think it was neces

has not changed, when compared to lehman brothers levels.hat we are talking about is the deleveraging and capital exports, back into the u.s., those savings are repatriated back into the u.s. is staying with me. brexit inalk about gre bavaria. the only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. manus: 6:30 in london. let us get the bloomberg first word news. caroline: thank you. north korea has conducted its fourth nuclear test. the regime said detonated a hydrogen device that underground test site in far northeast. a 5.1 first detected as test by the geological society. sunk to arrency has five-year low in offshore trading, after

that meant lending opportunities migrated to others what we calls now shadow banks, company like lehman brothers and bare sterns, and investment funds, and fannie mae and freddie mac as it become safer it was less important, and by the time that a financial crisis did have all of the lending and leverage that was built up outside of the banks where we really wrnght aware of it or aware how big and potentially dangerous it was. similar phenomenon observed in natural disasters and that the less decade we've had one after another record-breaking disaster, by hurricane katrina, hurricane reta, the earthquake in japan. just this year hurricane joaquin. this tells you that we're seeing ever more billion dollar disasters and if i would actually put total price of the disasters large spikes in the 2,000s so there's a lot of concern that this is the consequence of global warming especially in terms of flooding and hurricanes. and there's scientific consent that that a warming climate can contribute to severe weather events, but that is not the primary reason why the class of disasters is going up. major

glass-steagall would not have prevented the financial crisis, because shadow banks like aig and lehman brothers, not big commercial banks, were the real culprits. secretary clinton is wrong. secretary clinton says we just need to impose a few more fees and regulations on the financial industry. i disagree. >> we're going to talk a lot to senator sanders about his speech today, but today ask the question on days of big candidate policy speeches, is what he's proposing good policy, is it good politics? >> look, i think it is both. i think it is good policy in the sense that i think most people think that dodd/frank, for its strengths, is still too complicated and at the same time, not strong enough to prevent the kind of problems that we had with the financial crisis in 2008, 2009. it's better politics, because it's a place where there is a genuine contrast, and where hillary clinton is vulnerable with the democratic base. bernie sanders wants to cool -- make that contrast as clear as possible. he benefits from doing so. >> yeah, i think, look, this is an issue where the base of the party agrees

lehman brothers, aig, countrywide mortgage, wachovia.you do is talk about the big banks, you miss the big picture. we have to go after the shadow banking industry. we have to make sure they can't hurt us. that is what i have pledged to do. independent observers who have looked at what we have all proposed have all said, i am the toughest, most effective, most comprehensive. people like paul krugman. the best evidence, the folks that know i have the toughest plan other -- are the republicans. they are running $6 million with of ads right now. hedge fund guys have started a super pac to run against me. karl rove. another billionaire just jumped into the fray. ask yourself, why are they so nervous about me? i will tell you. they know me. they know that i say what i mean and i do what i say. i know how to go after them. [applause] sec. clinton: we are going to take the fight to them. we can and we also have to make progress. i am a progressive who likes to get things done. that is what i believe in. the debate i am having with senator sander