president of the new york federal reserve and two hundred fourteen he said the bank wanted to assess lehman brothers adding quote we explored all available alternatives to avoid a collapse of lehman but the size of its losses were so great that they were unable to attract a buyer and we were unable to land on a scale that would save them despite the federal reserve's inability to save lehman brothers the collapse left many employees and customers uncertain of what the future would hold and washington actually banks art. and what the future did hold it also ahead treasury secretary hank paulson and federal reserve chair ben bernanke really critically concerned with lehmann did what was next with contagion from lehmann and perhaps others who could fall destroy the economy and still nobody knew the financial risks of those dark o.t.c. markets with those bundles of bad mortgages in the credit default swaps fearing the worst total economic destruction paulson and bernanke headed to capitol hill with a three page document seeking more than seven hundred billion dollars to buy what they called troubled ass

emily: now you did not dive right in because you became an analyst at lehman brothers. left three months before lehman brothers disappeared, essentially. why did you leave? john: i wanted to save some money to make it easier to take a risk with no salary for many years, which is what we ended up doing. i went to manhattan, worked at lehman brothers in real estate, and had a two-year education in more than just finance. actually in company culture, the good and bad, company success, the good and bad, and i saw it going from being successful when i entered to disappearing. that was a powerful lesson for me, to never be sure that something is a sure thing. actually when i was leaving, my best friend's mother who worked in the building said how could you leave like a sure thing like lehman brothers to start a silly carpool start up? that was my message on the way out and a reminder that nothing is a sure thing. emily: lyft was founded in 2006 while you are at lehman brothers at the time. how did that start? john: i was on facebook and a mutual friend was connecting logan an

. >> wall street is on edge tonight after a weekend of talks aimed at rescuing the struggling lehman brothersk. >> all weekend top executives of rival banks, along with federal reserve and treasury department reserve officials met under tight security to discuss plans to buy lehman whole or in part. >> lehman is on the ropes. every ceo of virtually all the big banks gets a phone call. get down to the federal reserve. hank paulson had been lambasted for effectively bailing out bear stearns. so he sat all of these ceos in the room and said it's your problem. fix it. >> pretty clear the government is not going to bail anyone else out. at least that's the message they're sending. >> loud and clear. when i was talking to the folks at the treasury on friday, they're saying look, we're trying to find a buyer here, but let's beclear, we are not going to use taxpayer money. >> people believed if lehman went under, then the panic might spread. but people were equally worried that if they bailed lehman out, that it would be obviating this idea of moral hazard. if you believe the u.s. government is alway

. >> lehman brothers filing for chapter 11 bankruptcy.n with more personal worries about the company, people's futures and their jobs. >> i just pretty much lost my job. it's devastating. >> greed took over common sense. >> donald trump from his new york office now with an update on something he told me almost a year ago? >> maybe they should suffer. maybe that bank should be taken over. i don't see how the government can help. >> what do you make of this now, suddenly the government says what they said in the interview, the spigot stops but spigot had been running for a while. >> i think the government has done the right thing. they've worked hard and worked long and it's a mess. >> that day after the rumble. >> is not a mistake? that's a market. >> probably one of the best ceos of the last century are signing on to what is essentially a fiscal hail mary pass. >> it's another step in trying to resolve the crisis that we have. >> i know you don't buy this. >> i love you but sometimes we need intervention to bridge the gap from some crisis

i alluded earlier to uninsured creditors, if you're equity holder, you lost a lot of money or lehman brothers. your network depending on how many shares you had, net worth took a very big hit but uninsured creditors on the other hand that's a different story and that's where -- that's where the rubber hits the road and too big to fail. as i already commented, i think the living real aspects of dodd-frank had the promise of helping in that regard but having said that, i agree, you know, it hasn't been tested, legislation could come along and undermine it in a crisis. you know, whether that's good or bad would remain to be seen, cost-benefit question. it's not obvious that all -- that all too big to fail actions are bad. it all depends on what the cost of not doing it would have been and -- and in a crisis, you know, you don't have the luxury of doing those kinds of calculations at your leisure. you got to make decisions and we shouldn't be surprised, that not all decisions made in the midst of serious crisis with the benefit of hindsight, we shouldn't be surprised that they don't like lies or

on september fifteenth two thousand and eight lehman brothers one of the largest u.s. investment banks collapsed because that in one was our supply. of an immense because it is seven months because the bonzi presented itself so that your couscous a posse of honestly didn't want was there to give you the presumption to be wrong don't join the focuses them continue across the uk if a few more on to feel humble see debt good particularly the presumption the currency get on play. is just good as can you are clearly for it could be done you can't use fondly the nichols's diskeeper properly it is surprise to us that in a while that was done ok bob almost did on his own may only have it the coming every other time is over develop of wa but also man of all illnesses because of a busy ok probably also on our ration the bones equal is commercial good i took up so i did a fade to distribute he got on the shoes with his own did suggest that the other animals. after the fall of lehman brothers european banks with close links to american banks risked bankruptcy in turn. governments

i literally and personally held shares in lehman brothers the weekend they went bankrupt.idn't think that stocks could go to zero, but they can go to zero. so, i'm conscious of the cycle. emily: so, you're holding it for a rainy day? stewart: yeah, it's a great hedge against significant market conditions. emily: now, microsoft has free team, facebook has workplace, they are built as a slack killer. stewart: yep. emily: is that cutting into your share at all? stewart: no. it hasn't really shown up in, like, actual usage of customers yet. where it does show up is in the sales process. i think what will be really interesting is, you know, people talk about new microsoft versus old microsoft. where i think that will make a big difference is what the policies are for customers. first of all, that's good validation for us, and second of all, we are way ahead on the product side. emily: so you're not worried about it? stewart: no. emily: ok. you said you're getting the company ready to go public but you're not necessarily going public. where are you now on that? stewart: i think

lehman brothers bear stearns the london whale it's on this. if it really hypothecation which basically means as you just pointed out you can have an infinite number of owners of the same bond right you're lending the bond out as collateral in from a number of times and in the us i believe it's capped at one hundred forty percent of the fair market value of that security or something of that nature but you end up with people routing their fraud through london it only becomes the hotspot the global ha spot of financial fraud for that reason but so here we are with bitcoin and it is no counterparty risk it's hard money it's some money wall street gets involved but they're bringing in the products to bring in their bag of tricks that's allows them to react off the cape which is to lend multiple times the same asset right now which is a way in effect to control the place to go to control the price the price discovery right so walk us through a little. more how that works well there are lots of ways that it happens it all as you allude comes down to

it has struggled conspiring lehman brothers.trong workforce may be "a little large." rishaad: instagram redesigned its platform for horizontal scrolling, and the plan almost immediately went sideways. it is all a barrage of complaints and the app quickly reverted to its original features. they say the small design was a test that went viral by accident. yvonne: usually, use white and post a picture. checking china at the moment. lunch break and shanghai. we are mostly positive when it comes to asian equities here today with the exception of japan. actually seeing the csi 300 catching a bit, about .4%. tiedhang seng has been between gains and losses. flat in hong kong. dealing with low volumes today. rishaad: we are going to swipe left or is it right? right after this cunningly short break. eak. ♪ there's no place like home for the holidays ♪ ♪ 'cause no matter how far away you roam ♪ ♪ if you want to be happy in a million ways ♪ ♪ for the holidays you can't beat home sweet home ♪ >> it is 11:29 in hong kong. i am debra mao with

be picking up the bill russell jones a partner at llewellyn consulting and former employee of lehman brothers spoke to us about the legacy. i think that have to be some really innovative responses to this i mean income inequality wealth inequality huge issues and as you hinted there is increasingly an intergenerational element to this with the young feeling that they're getting very much the fin end of the wedge is it. i think politicians are going to have to be agile innovative. my sense is the way to look at this is that we need to become more interventionist but doesn't mean that we have to abandon the sort of capitalist model which has not withstanding the crisis we experience has been so successful for so many centuries but in order to make that capitalist model work and work well we're going to have to redistribute more i'm going to have to think of some some new ways of doing that my sense is that higher taxation on the wealthy is unavoidable my sense is that more transfers from pensioners back into the younger generations is unavoidable we are going to have to do this otherwise the po

in my opinion, there has been no normalcy in 10 years since the lehman brothers bankruptcy in 2008 and 2009, the beginning of the fiscal crisis. banks,take me 4 leading the chinese central bank, japanese, ecb, and the united states, they created, if you economy of free cash flow that was $21 trillion. it is the same size of the economy of the whole united states, but the difference is there is no liabilities to what they created. in other words, you know, there are no workers. nothing gets paid. just money created from nothing. so it is really worth about $100 trillion on the equivalent basis, and that is what has driven the economy. to their credit to where we are of the u.s.,omies europe, japan, china. they have been much too aggressive in trying to raise rates to offset that. i don't think there has been any normalcy for the last 10 years. so they are trying to get to something they call normalcy. i just think it is an illusion. guy: mark, bloomberg spoke to the saudi oil minister a little earlier on today. this is what he had to say. >> it is premature to say what will happen. cour

it was the year lehman brothers failed. it was not necessarily a disaster.rket going back to 2009. so some of it came out of the stock market. we are waiting to find out is this a temporary nervous condition or is something wrong in 2019 and 2020. >> when the economy or stock market are doing well it is because of the gop policy. which one here? which is it? >> most think the fed is doing the right thing which is getting interest rates back to something like normal levels. the problem with that is if the fed needs to cut rates during the next downturn. there is some likelihood that it will slow down the pace of interest rate hikes in 2019 which is what trurn wants it to do. maybe he will say things aren't as strong as we think they are. perhaps it is really is telling us something. he may actually get his way with the federal reserve. >> is there any way to find that out? do they both rely on psychology here? >> i would put all of my money into the answer if i knew what it was. i think the stock market and the economy are not necessarily the same thing. ther

bill of health by that like a comment on that and last, you could argue you had bear stearns and lehman brothersand you could have allowed a cleansing process and that is the biggest penalty then you would start fresh. what do you think of that as a solution? >> to answer the three questions and i hope i remember them. dodd frank or frank dodd as i prefer to call it, give u givese power to the fed which is why i am standing here to strip the power away from the federal reserve. this is what my book shows you they are choosing not to do their job and we are paying a lot of taxpayers money for them. second question, credit exam which is another way of asking for change in the ensuing years.

japan's biggest investment bank has struggled to generate profits in europe since it bought lehman brothersrations in 2008 and that is the bloomberg business flash. francine: thank you so much. oil moving lower the last couple hours after initially riding a wave of optimism leading to a rebound across risk assets. investors remain wary about the prospect of the sick like -- supply glut. hasia's energy minister told russian state tv that the situation in the oil market will be more stable and balanced in the first half of 2019 thanks to the opec plus deal. joining us now is bloomberg's emea managing editor will kennedy. patrick armstrong is still with us. patrick, think you for sticking around. will, welcome to the program. we have had quite a volatility -- a lot of volatility, but what is the outlook for the price next year? patrick: clearly, there is a lot of pessimism about the outlook for the global economy at this price as most analysts will tell you. if the conversation was dominated by supply this year, in the early part of next year, it looks like the conversation will be dominated b

stories about deutsche bank, you have to ask yourself is this this generation's bear stearns or lehman brothersf they were a u.s. bank, we would talk about it every day. it's not, that's one reason why i don't think we focus on it but you would say is it deutsche specific or sort of systemic i'm starting to think the latter if you look at the way some of our banks are trading, maybe it lends itself to exactly that citi bank has been a laggard you say why? they have the most european exposure deutsche bank is one of those things you can't discount the fact -- a lot of people want to say it's different this time. but the yield curve has been flattening for some time the market has not cared, for whatever reason it has cared the last couple of days. again, everybody wants to say it's different this time it's never different it's pointing towards something that none of us want to acknowledge or want to realize economies are slowing down there are a number of factors that i will continue to watch. the fact the speed with which the yield curve is flattening has to be alarming i'm not an economist, i'

lehman brothers, that was the biggest corporate failure in history.h up? companies would say the onus is on us, the workers, to make it happen because economists say a key reason we are not seeing wages grow faster is because productivity is not rising as fast as it should which means we should be more efficient. if we produce more, firms can afford to pay more. there is no silver bullet to make that happen overnight. firms have to invest more. give us the tools we need to get thejob done. more. give us the tools we need to get the job done. and more. give us the tools we need to get thejob done. and governments have to invest in things like transport. things are improving gradually but do not hold your breath. they are still a way off, as the resolution foundation says. we are still lagging behind. thank you. the public spending watchdog has found that an army recruitment drive has faced "significant problems" — including a website that cost three times its budget and was 52 months late. outsourcing giant capita was awarded the £495 million contract

string of that since october of 2008 which you may not want to remember, was the month after lehman brothershe stock of cme, chicago merc, the gigantic futures trading platform, shows how uniquely positioned it is to benefit from this. the stock is up 30% year to date. in a fox business exclusive, we take it to the cme and the man who leads this behemoth that handles massive trading moves in oil, bitcoin futures, volatility futures, terry duffy. great to see you. thanks for coming on. >> liz, thank you for having me. it's always great to be a guest on the number one business show in america. liz: number one closing bell show. yes. second behind "varney." he gets very touchy about that. terry, the markets are more, i don't know, mercurial than a teenager lately. what do you see through your window that's driving these moves? >> you know, there's a whole host of factors. i have been saying this for a little while now. you referenced october of 2008 just a moment ago. we have a lot of people participating in the marketplace that never saw a down tick in the market. a lot of people don't know ho

that was the friday night before the weekend in which lehman brothers went bankrupt. is that banks are doing on a global level worse now in terms of valuation than they were on the eve of the lehman bankruptcy. it is absolutely fascinating. view on theong banking sector, we have come so far and yet, we have not come so far. i am looking at gold. it is the first time that bullish wagers are outpacing the bearish wagers since july. this is speculation that the fed will slow down their rate hikes next year. we have a fed on wednesday. on top of that you heard some billionaire investors say they are urging that the fed stop its tightening and that it is really important. anna: i like the history lesson. i will go with a history lesson. plenty more minimal charts on the bloomberg. you can find them by running the gtv function on your bloomberg. oft, we have done a poll investors talking about where the see the stoxx 600 ending, 2019. according to that poll, investor see it at 321 points, which is the upside of 345. investors also see the s&p 500 finishing higher. inve

lehman brothers and so forth.see financial leverage start to go, that is what triggers your bear market. all the forward-looking indicators, small business optimism, even lose in share prices, you're going to have a slowdown. your third cherry, you have to growth and the finance leverage, it is inflation. this is making me think it is not going to be a horrific bear market. productivity in the u.s. is picking up. it might need there. free cherries do ok if you get productivity picking up. for q1pessimist because i do not think the growth story is going to be good. leverage,f financial if growth is heading lower and you see firms under pressure, maybe you see some of these start to say, someone has faulted. that is what we look for. going to happen. maybe we do end of the year higher. it is interesting you say we are not going to see a terrible bear market. they have been something like a 24% drop. this brings me on to the point in terms of we can't have bear markets without a recession, can't we? >> i agree. i thi

. >> in 2008, when lehman brothers went under, and the banks all froze, it was a terrible time for my company. it was a terrible time for the country. i had to do whatever was necessary to see that the company survived. we cut our expenses. we cut our sales. >> but cutting expenses and worrying about revenues was really not enough. they also had to put the versailles house on hold, and eventually they listed the half-built mansion for sale. guess what? $100 million. the whole thing was being captured by a documentary filmmaker, who was profiling jackie for a movie called "the queen of versailles." did you enjoy doing that? >> i hated it. [ both laugh ] >> that wasn't a maybe, right? >> i did not like it. >> he hates it because it makes him look like he's mean, upset about business, like we have a bad marriage and all that, where really he was just mad because the camera people were always around. we had no privacy. he's a businessman, and business goes up and down. he's very smart, and obviously he's bounced back so much more than he was even a few years ago. >> indeed, david and west

after the fall of lehman brothers european banks with close links to american banks risked bankruptcy in turn. governments only just managed to save them in order to avoid the collapse of the whole system. no one in office secretaries you want to switch on that are keeping your bank to god you have to prove the devil look it is actually take you on to the proof. if proof dog proof was three hundred proof or food near proven food in a prison for god you prefer going to prison on a system fragile if this was. in spain and in ireland after the advent of the euro and thanks to loans from german french and british private banks developers invested heavily in real estate . and a big don't need to back order to the good media danny and the rest buy new market is a or both back to on your longer. than yours morgan old labour's why not speak you live on our own nuffin did you blair in gabby douglas the shift to new york on one dot. com you loudly grandma you guardedly booklet victimized and ordered a book. about who are. it in blue sybil a plenty ski said country back they bet your salad bar.

after the fall of lehman brothers european banks with close links to american banks risked bankruptcy in turn. governments only just managed to save them in order to avoid the collapse of the whole system. and on and off a separate issue one a suture that are keeping no bond to god you have to prove the devil rip it is actually take you on to the proof. if proof dog proof was three hundred proof from food near proven food in a prison guards in prison going to prison on a system hostile if itis was. in spain and in ireland after the advent of the euro and thanks to loans from german french and british private banks developers invested heavily in real estate . and a big don't need to back order to the good meaty danny and the rest by now are costly to say or bought back to on you can on. their nose more be an old labor why not speak you live on our own nuffin to do blair in gabby douglas the shift to new york on one dot. com you're allowed like we're going to you guardedly booklet when i know the book where bad in the battle are. it in sybil a plenty ski said country back they bet your

be picking up the bill russell jones a partner at llewellyn consulting and former employee of lehman brothers spoke to us about the legacy. i think that have to be some really innovative responses to this i mean income inequality wealth inequality huge issues and as you hinted there is increasingly an intergenerational element to this with the young feeling that they're getting very much the finn end of the wedge as it were i think politicians are going to have to be agile innovative. my sense is the way to look at this is that we need to become more interventionist but doesn't mean that we have to abandon the sort of capitalist model which has not withstanding the crises we experience has been so successful for so many centuries but in order to make that capitalist model work and work well we're going to have to redistribute more and we're going to have to think of some some new ways of doing that my sense is that higher taxation on the wealthy is is unavoidable my sense is that more transfers from pensioners back into the younger generations is unavoidable we are going to have to do this ot

right after lehman brothers collapsed.t what point do you start to you seeerned here when shrinking,standings prices coming down are we -- ing towards the next don't know. >> i don't think we should put the cart before the horse. when we look at high yields, those companies have been much more responsible with their the past few years. reinvest in themselves. perhaps this is the caution is and could extend the cycle by firms not getting ahead of themselves. does represent a risk to us as things begin to turn. downgradede b company down to junk. cdf rose dramatically. market.t priced in the >> to us that's the big risk. we talk to lot of our investors who buy mandate may need to hold investments. thet's not priced in market, you have an elephant through a key hole problem. there.kers aren't they are holding inventory of bonds. investors should be little bit concerned about what's happening in investment grade yield market.gh david: what does it spleen for -- economy and growth? ing growthll anticipate 2.2% growth.d >> the c

lehman brothers back 10 years ago. ceo says that that firm's 3000 strong workforce in the region maybe closed -- quot e, "a little large." kathleen: bloomberg has been doing some crystal ball gazing as the year draws to a close. today, taking on the biggest names that could face -- themes that could face the asian sector in 2019. think there could be more limited -- transmission to several key markets, including china, japan and australia. >> we think the chinese interests are improving on the sales front. we think that they will continue to grow, mainly thanks to the expansion and margin. the reason of that is the product -- is shifting toward more protection type policies, which is good for medical insurance. rebalancing with rebalancing -- we two somewhat -- and increasing higher now. >> in china, we think that investment is still challenging. and the method bodies will be a challenge for some of them, right? but at the same time, their allocation is still focused more on long-duration assets. that ampanies have don

avoid anhey can upgrade version of their own lehman brothers incident. can process all the debt they have to deal with without a significant slowdown. no other country has managed anything like that growth without one big moment when they are youlow down, so emerging markets a compelling y uy? may be somewhere like mexico. francine: that sounds lovely at christmas. is it a dollar call? ,epending on what dollar does you go into emerging markets are not? >> the dollar is part of this. he emerging markets are export-driven, commodities priced and dollar, so when the dollar goes up, it hurts their ability to raise money. they have are lot of dollar-based debt that becomes difficult to service as the dollar rises. if you look at the bloomberg 8%ex, it's probably up 7% or since april. that will continue to rise as long as the u.s. is growing faster than the rest of the world. is the big question. you are sticking with us. from oure highlights conversation with brian moynihan . find out his new strategy for investment banking. this is bloomberg. ♪ ♪ there's no

getting no benefit, why not give 25,000, 50,000 years or even appreciated stock to 300% since lehman brothersappreciated stock out there. stuart: i've got to write this down. donor advised fund. is it only morgan stanley? >> is a 501(c)(3) tax-exempt vehicle. once you put in the vehicle it's not your money anymore. you get the deduction that you control the account. i think it's much more simple. stuart: you can put a ton of money and now and get the deduction for this year as you see fit. >> you can take the money and put in the market and it can grow. it's incredible. stuart: at december 9th or 10th year coming to me and we've got 21 days left in the whole year? >> will figure it out together. jonathan birkin, morgan stanley guy. advised funds. that is interesting. thank you very much indeed. now this. you will be able to invest into major right healing companies next year. they are uber and lyft paper to go public can invest in those companies. you can't at the moment that maybe next year can. they are competing for drivers and lift lost about 250 million. if you want a piece of the action

system was vulnerable, and then the core anking system would be runs able to the kinds of lehman saw with brothers, or another selling enormous amounts of insurance hat made investors comfortable that they weren't taking on undue risk. i didn't realize that this had the potential for a full-blown financial crisis like we saw. >> so this sounds a little bit like the story i tell about my was, i saw the housing bubble, didn't realize banking trigger the crisis, but you're giving me a what was goingto on in the financial markets that this is the the fed system, talking to people, should have been, people should but had their hair on fire they didn't, you're saying, basically, you're seeing this it it was alarming but really wasn't ringing enough bells. anet yellen: it didn't ring bells sufficiently. we didn't put the pieces together. the federal open market committee had a half-day discussion of the potential for bust in housing prices and what it would mean for the to economists on my staff, john williams, who is now of the federal reserve ank of new york, and glen -- gave a presentation in which th

earlier in the year, she said something like if it had been lehm lehman's sisters instead of lehman brotherselection. it didn't really ring true. >> se kupp. we appreciate your point of view on all of this. check out se kupp unfiltered saturday night at 6:00 eastern. the president's pardon power in question as the supreme court hears new arguments over double jeopardy. we will explain. live pictures of the hearse carrying the let president george h. w. bush. the casket and the family will board the bush 4141 for a final journey to college station, texas to a&m university in the bush library there. ♪ just look at those two. happy. in love. and saving so much money on their car insurance by switching to geico... well, just look at this setting. do you have the ring? oh, helzberg diamonds. another beautiful setting. i'm not crying. i've just got a bit of sand in my eyes, that's all. geico. fifteen minutes could save you fifteen percent or more on car insurance. ♪ can you feel it there's endless fun with great toys and games for everyone at amazon, with low prices and free shipping on millions o