when the other side decided you know this isn't worth as much as we thought it was so i mean lehman brothers just three or four months before it's bankruptcy was doing well it's auditor gave it a clean bill of health its stock was not so bad and then immediately became clear that it bets its bets were bad even after the crisis the so-called well managed bank j.p. morgan discovered that its london whale position was actually a five billion dollars loss sending the stock market stock price for that company down by about thirty percent so bad things in speculation can happen very quickly. one of the things that made the original volcker rule for the law was passed in dodd frank and then these five regulatory agencies including the fed c c o c c c f.t.c. my agency they all had to do it at the same time and we did it i think it was on december twelfth december twelfth ok it was snowing that day i remember it was all over t.v. because nobody else came into work the federal government closed and it actually didn't really snow that day but they closed the government anyway the bottom line is that it

when the other side decided you know this isn't worth as much as we thought it was so i mean lehman brothers just three or four months before it's bankruptcy was doing well it's auditor gave it a clean bill of health its stock was not so bad and then immediately be became clear that it bets its bets were bad even after the crisis the so-called well managed bank j.p. morgan discovered that its london whale position was actually a five billion dollars loss sending the stock market stock price for that company down by about thirty percent so bad things in speculation can happen very quickly one of the things that made the original volcker rule for the law was passed in dodd frank and then these five regulatory agencies including the fed c c o c c c f.t.c. my agency they all had. do it at the same time and we did it i think it was on december twelfth december twelfth ok it was snowing that day i remember it was all over t.v. because nobody else came into work the federal government closed and it actually didn't really snow that day but they closed the government anyway the bottom line is that it

when the other side decided you know this isn't worth as much as we thought it was so i mean lehman brothers just three or four months before it's bankruptcy was doing well it's auditor gave it a clean bill of health its stock was not so bad and then immediately became clear that it bets its bets were bad even after the crisis the so-called well managed bank j.p. morgan discovered that its london whale position was actually a five billion dollars loss sending the stock market stock price for that company down by about thirty percent so bad things in speculation can happen very quickly. one of the things that made the original volcker rule for the law was passed in dodd frank and then these five regulatory agencies including the fed c c o c c c f.t.c. my agency they all had to do it at the same time and we did it i think it was on december twelfth december twelfth ok it was snowing that day i remember it was all over t.v. because nobody else came into work the federal government closed and it actually didn't really snow that day but they closed the government anyway the bottom line is that it

when lehman brothers went bankrupt on the is ath.rothers was the heart of the world commercial paper polk market. they go to bush and said we need a trillion dollars by 5:00 in the afternoon. >> i got it, steve. >> no, no but they took. >> but the same people. >> you are giving them another tax cut. i don't understand that. >> no, no. >> is the price you're paying to keep the republican party with you? be honest you're paying a price to the republican establishment. >> listen when we first got into the campaign you have to bring remember we're a coalition, a coalition the republican establishment and this populist nationalist movement. and it takes both to win. we're kolg cognizant of that. i do believe the heart of the tax cut was the corporations to be competitive overseas with germany and china. it's a winner. my point with the establishment, the balance sheet of the federal reserve in 2008 was $880 billion. it's 5.5 trillion a day. what the elite did did was flood the zone with liquidity. there wasn't a deflation and collapse of

nobody was saying about that with lehman brothers >> the problem that we face here with the financial collapse was that it is 30-1 leverage i don't think they'll ever get that bad i know they won't ever get that bad. it will be something that we are not waiting for. i think deutsche bank is so telegraphed that it may hurt the markets. >> let's put it aside and we don't know if that's going to happen or not. financials here in the united states they did not do well on a week where s&p and the nasdaq both bounced >> right >> as if nothing happens this week, financial is still in the hole >> bonds did not do anything either >> is there any type of exposure to the european banks depending on how bad it is i am not convinced of that financials are okay and some that are doing all right and some good pockets in the financials if i am looking, i would rather be in tech to me that's where the growth stories are going. >> the spread between the two and ten and that's not a great scenario right now that's big case in 2017 for owning the banks and you this iou think of the systematic issues i th

collapse were we were talking about the two thousand and seven financial crisis that brought down lehman brothers as you know and many other banks and so mr epstein as a former employee of bear stearns who by the way was fired right after he became a partner he was at i think i believe he worked at bear stearns for a year he was hired by mr by the late mr a screen berg. and he was fired on a non reg d. violation which means insider trading and so when he left stearns clearly in a very negative way he gave information to the feds as to how hedge funds operated and that was part of the deal including names of other perhaps pedophiles who were part of his ring one of the victims virginia louise roberts who has sued him multiple times even though she has also signed agreements with mr epstein accepting monies. she claims that she had she was forced to have sex as a minor with eight powerful men she does not name or identify the names even though she told one of the attorneys representing the victims that. one of those powerful men was prince andrew the duke of york. she does not identify any other ma

it's reached a high of 185 in the lehman brothers collapse about, ten, ten years ago. >> as one would expect. >> we all remember that time. >> yep. >> and the low point was around 90, 95 when the market was really humming over the last couple of years. but it's extremely important as a entrepreneur and as someone who is founding a start-up to really get an understanding of the larger macro environment and to make sure your pitch is consistent with that. >> the blinders are often pretty high. it's easy to think your start-up is the center of the world. understanding the larger world around you you will help to make your start-up a bigger start-up. >> great meeting you. take care. >> thank you. >>> i'm here with this week's elevator pitcher ed roth who is here to tell us about your company, stencil one. i want to hold one of these up so people can see it. these are so cool. >> thank you. >> you are the designer. >> i am. >> and you run the company. >> yes. >> so you've done a lot of talking to customers, but how much have you done pitching to investors? >> not much. ready for that step

lot of banks in north america were involved in this are the same banks that collapsed you that lehman brothers goldman sachs merrill lynch all those banks involved in the north american real estate bubble bank was the level of the economist of what it's ok oh that's why it was the economic crisis as well that popped up bubble in the united states and along stopped. as he can with the we have to defend our democracy. but we must not think the world is perfect or even perfectible in with but if you do no one can think about democracy if they're angry at night or have to live in subhuman conditions can be funny in film and. the. amityville come here i am afraid to leave my job. and i'm going to survive without money. couldn't i just bought a car or. bought a house just. got it when i moved out there with a lot of money we can buy a lot of things and make a quick right there are things that don't satisfy us you got that you're going to buy a house or a car but you can't buy time or. because a dog is a cause it's a vicious circle something's not working right. some of it think you know that biblica

the new a lot of banks in north america were involved in this are the same banks the collapsed lehman brothers goldman sachs merrill lynch all those banks involved in the north american real estate bubble bank was the level of the economist of what it's ok oh that's why it was the economic crisis as well that popped up bubble in the united states and alone stopped. i think in what the name of this we have to defend our democracy. but we must not think the world is perfect or even perfectible but if you do that no one can think about democracy if they're angry at night morning to live in subhuman conditions going to join an infidel mind. the. damage they do i am afraid to leave my job. it could not going to survive without money you. could not just on a card but you can also bought a house. with a lot of money we can buy a lot of things make a quick right there are things that don't satisfy us you got that you going to buy a house or a car but you can't buy time or. it's a vicious circle something's not working right. john if you don't let biblical definition of a happy man without a shirt on h

others when leman brothers went bankrupt, the smartest guys, the geniuses didn't realize that the lehman brothersorld commercial market. they go to bush and said we need a trillion dollars by 5:00 in the afternoon. >> i got it, steve. >> no, no but they took. >> but the same people. >> you are giving them another tax cut. i don't understand that. >> no, no. >> is the price you're paying to keep the republican party with you? be honest you're paying a price to the republican establishment. >> listen when we first got into the kpap you have to bring -- remember we're a coalition, a coalition the republican establishment and this populist nationalist movement. and it takes both to win. we're very cognizant of that. i do believe that at the heart of the tax cut was the r for corporations to be competitive overseas with germany and china. it's a winner. my point with the establishment, the balance sheet of the federal reserve in 2008 was $880 billion. it's 5.5 trillion a day. the same crisis happened in the euro zone what the elite did did was flood the zone with liquidity. there wasn't a deflation an

we saw what happened with lehman brothers by not being diverse. i am extremely concerned about what the impcations are for teaching -- if it's garbage in, it's going to be garbage out. if it's a narrow set of parameters and thought patterns and life experiences that go into ai, we will get very narrow results out. so first i want to just talk -- get your thoughts on that. and the second is on this broader ethical question. we've looked foranhen i was a yg lawyer working on bio ethical issues, the hastings center got created to look at these issues. this committee has been grappling with crisper and the implications of crisper. i think about this being very similar that ai has many similar implications for ethical input. so if you can opine on both of those questions and recognize we've got, you know -- two minutes, three minutes left. about both the ethical -- whether we need centers to really bring in ethicists as well as technologists, and then the importance of diversity on the technology side so that we get the full range of human experience r

therefore, i think a lot of people are now making the lehman brothers case with regards to not really- matt: christian sewing saying the financing is secure and at good rates for the year but the concern with the downgrade is that funding costs rise. you worried about that? downgrade course, a can have an impact on the funding. however, the downgrade was from and this shouldn't increase the funding cost are medically. what would increase is the funding cost if there is concern in the market that deutsche bank has not sufficient liquidity. this is not the case. matt: got it. daniel, we appreciate you jumping on the phone with us on such short notice. daniel regli, mainfirst. deutsche bank a stock to watch. great gate says it will bounce at the open in just four minutes time. this is bloomberg. ♪ ♪ matt: here we go. less than a minute to go to the open. an incredibly busy morning. business and political and economic news around the world. take a look at futures. inre looking at a gain european futures. investors are selling the yen against the dollar. they are purchasing spanish and ita

i have spoken to christine lagarde about it and she has this great phrase, saying it had been lehman brothersybody is think it should just be lehman sisters, but the mixture of men and women makes the best economic outcomes. i'm quite happy with that! somebody was saying, do you want to come back on that? i definitely don't! we will leave it there. this is beyond 100 days. still to come... the children's word of the year for 2018 has been announced — one that's seen an explosion in popularity. stick around to find out what it is. the financial watchdog has begun a full investigation into the failure of online banking at tsb. the systems problem in april caused disruption for almost 2 million people using the bank's digital and mobile banking services, and left many customers unable to access their accounts. paul weekes tsb customers had trouble logging into their accounts. the service is better now but still unstable. customers phoning for help are having to wait for harper now on average being cut off completely —— average being cut off completely —— a halfan average being cut off completely

you saw what happened to lehman brothers about not being diverse. i am concerned about what the implications are that if it's a very narrow set of parameters and thought patterns and life experiences that go into ai, we will get very narrow results out. so i want to get your thoughts on that. and on this broader ethical question, we have looked for many years -- i remember when i was a young liar -- lawyer, we began to look at these issues and this committee has been grasping with crisp >> reporter:. -- if you can opine on both of those questions? whether we need centers to really bring in emphasis as well as technologists and the importance of diversity on the technology side so that we get the full range of human experience represented. >> where just now -- when someone is using the term doomsday scenario, i think we wake up 20 years from now and we see the lack of diversity in our technology and leaders and practitioners, that would be my doomsday scenario. so it is important critical to have this for these reasons. what is jobs. this is a techno

surprise that in the years leading up to the financial crisis, top executives at bear stearns and lehman brothers personally cashed out more than $2.4 billion worth of stock before the companies collapsed. it is no wonder that sophisticated investors have, for decades, strictly limited their own executives freedom to cash out shares. in the wake of the financial crisis, congress knew that it was important to force corporate managers to keep in the game in the long run. that is why the dodd frank act had provisions designed to give investors more information about whether and how managers can cash out. unfortunately, as you all know too well, the rules are still not yet been completed by the sec. investors are still in the dark about executive -- nearly a year since the landmark legislation, is completely unacceptable that the sec has not yet promulgated these and other rules required by law. it is not just at the regulations have not been finalized. the problem itself keeps getting worse. you see, the trump tax bill has unleashed unprecedented wave of buybacks. i worry that lack sec rules and ove

no surprise that in the usually up to the financial crisis, top executives at bear stearns and lehman brothers personally cash out more than $2.4 billion worth of stock before those companies collapsed. it's no wonder sophisticate investigators have for decades strictly limited their own executive freedom to cash out shares. in the wake of the financial crisis, congress knew that it was important to force corporate managers to keep skin and again in the the long run. that's what the dodd-frank act included provisions that were designed to give investors more informat and how managers could cash out. unfortunately as you all know too well, those rules have still not yet been completed by the sec. investors are still in the dark about executives incentives. nearly ages into that landmark legislation it is completely unceptab that the sec has not yet promulgated these and other rules that are required by law. it's not just the regulations have been finalized. it's the problem itself keeps getting worse. the trump tax bills unleashed unprecedented ways of buyback and i worry that lacks sec rules a

make those moves that it made with regards to bear stearns that it didn't make with regards to lehman brotherst earlier. and it did do with aig, those from the great depression ever rules. the fed had its power curtailed and that could be a problem. just that president trump out when he talked about economic value 've added. boy is that a squishy concept. i don't know any president to could do that bragging moment. what is economic value in this economy? you've got me at a disadvantage giving me a treat rather than a tweak. -- tweet. point since the election and now? a $20 trillionut economy in terms of gdp. tom: most of it is routine growth. >> the job creation is going well. that was friday, job creation is going well. the unemployment rate is low. i think that's what matters to oft people in terms evaluating the state of the economy. francine: how much does this have to do with tax cuts and how the u.s. will fund them? >> we will run big deficits. you don't fund the tax cut. it's a tax cut. that will mean bigger deficits and over time if the administration is correct we will get much strong

this september will be the crisis that happened in 2008 the collapse of lehman brothers. since then, a lot more capital in the system. the system is much more protected than it was before. did, however, point out one issue that all of us stay up at night thinkg about, and that is cybersecurity. we asked dtc are very focused on that, making sure we protect all of the assets in a financial system we are entrusted with. are focused on what is the resiliency we need to build in to make sure we can recover from any attack. there has to be a greater cooperation between the public and private sectors and the sharing of information regarding cybersecurity. those issues need to be discussed and we need concrete action. francine: larry, how much intelligence sharing? financialnthly community about cyberattacks or having tools? are people working on this together? larry: they are indeed. individual companies are working together on a bilateral basis, sharing information. we asked dtc share that information with all of our members. believehais something has to continue, but we have t

lehman brothers invested in toxic mortgage-backed securities eventually leading to $32 million in trade losses. they took bank deposits, putting the u.s. taxpayer on the hook for those losses. hedge funds sponsored by bear stearns, which also took americans' individual deposits, suffered massive losses. during the crisis merrill lynch, morgan stanley and citigroup also -- also lost big on bets backed by subprime mortgages. goldman sachs had to bail out a hedge fund. congress constructed the federal reserve to write strict rules to prevent that from happening again, to make sure banks use a taxpayer safety net to serve their customers, not bet against them. banks should be in the business of making investments in the real economy, not casino-style trade, using family's checking accounts. it took decades to p finalize the volcker rule which was completed in 2013 after the consideration of thousands of public comments. now they want to undo it all. the rollbacks announced last week would gut core components of the volcker rule. "the new york times" said, quote, the balance of power will ti