the firms that were less stable, jp morgan, bear stearns, ourselves, and we couldn't stabilize lehman brothers. we even looked at it as a company. david: at one point, the ceo of bank of america was leaving and they needed a new ceo. how did they pick you? you were the general counsel. brian: at that time i wasn't. i was general counsel for a short time. after that, i had the commercial banking business and investment banking business. i couldn't keep a job, let's just say that. i had five jobs in one year. largely, we were doing deals and things were shifting around and it was interesting. the late summer, early fall of 2009, the ceo told the board he wanted to leave at year end. they went through a search process.

lockdown what about the economic impact there are economists today talking about this being a lehman brothers moment. the economy is going to take a major hit in the 1st quarter services is a major chunk and transportation 80 percent down will tell us how close restaurants are closed and the movies and everything so there's not much activity if at all. many factoring is partly coming back car industry is chemicals and so forth but the 1st quarter is basically gone now we have to see how they open up because even if you produce you have so many logistics nightmare signaled to get this products from a to b. you're running short on supply on packaging material and so forth the economy starters so it takes much longer than in 2003 to have a comeback story so powerful comeback but what about long term do you see companies deciding against china pulling out deciding to take their production elsewhere well 1st of all the biggest risk is not to be in china because the biggest growth story there's no 2nd china available and so for companies they always have to keep in mind and this is the place to be

some economists warn the growth of virus could prove to be a lehman brothers moment saying the outbreak could see many firms pull out of china for good after realizing the fragility of supply chains the crisis is in factories shut down supply shortages border closures and travel bans as if the global tourism sector the drop in manufacturing in travel is depressing oil prices. a short while ago i spoke to german businessman who's just returned from beijing and i asked him what it was like to be stuck in lockdown in a ghost town. well i've been through goldstone's before 2003 i was a veteran of the sauce crisis and it was involved down what does different now that actually the shops and the restaurants are all down it's like a panic particularly in beijing where i live which is hard to understand because we have 3 in a case as one mortality and we have 5000000 cars in the city you don't see them anywhere it's ghost town which is frightening and my kids actually 8911 very concerned about this i mean it's depressing frank you were stuck there for some time how did you get out now actually g

it goes back to the lehman brothers failure. under 1% on the two-year yield. the great triumph was managing this policy of, here is the trump presidency, and managing the two year yield to a better place. higher yield may be linked with the hope of an american or even international reflation. we have given up on that. , was the two-year yield coming in with the recent lunch now we are dust recent plunge. now we are below 1%, a huge benchmark for the global financial system. francine: it certainly is. let's get to our guest carsten , brzeski , and rupert harrison. from blackrock. there is just one story, and it is the fear in the markets. i have a simpler chart that just looks at the s&p 500, falling below its 200 day moving average. you look at any chart, and it screams sell. what will it take for the market to stabilize? guest: if this was a normal general markets, they would be looking oversold short-term. we have seen yesterday was a real panic selling. dysfunctional markets in high-yield, pretty low liquidity even in s&p futures, the lowest in a long time.

businesses learn now is how fragile the whole production system really is it reminds me of the lehman brothers call ups in 2008 where all of a sudden you know many people became aware that the financial system is very fresh out and since then we have seen a reorganization of businesses how they run their financial structures for example so that if they have to rely much less on back credit for example as a consequence of that and i think something similar could materialize also out of the corona crisis. sorry we're having a few technical difficulties difficulties but 1st of all a quick look at some of the other effects the outbreak is having. impacts on the airline industry brutal its dutch carry a k l m is making budget cuts a slowdown in business it's cutting back on hiring new staff and external consultants filling new projects and office for focus from plans and significantly reducing travel expenses. the german airline is also feeling the pinch announcing a recruitment freeze its cutting costs of the flights to mainland china and hong kong were put on hold due to the upright fans its shar

businesses learn now is how fragile the gold production system really is it reminds me of the lehman brothers call ups into the garden 8 where all of a sudden you know many people became aware that the financial system is very fragile and since then we've seen a reorganization of businesses how they run their financial structures for example so that if they have to rely much less on bank credit for example as a consequence of that and the thing something similar could materialize also out of the corona crisis. in 2012 a couple of entrepreneurs turned an abandoned army post in germany into a business center for chinese firms it's now one of europe's biggest chinese trade hubs in the coronavirus it. business developer michel is proud of what. the u.s. army used to be stationed here but for several years chinese business people have been living working and doing business from the so-called world factory but these days it's quieter than usual deets notices when walking through the office building some business people have postponed their return to germany after the chinese new year all because of

is learned now is how fresh out of the coal production system really is it reminds me of the lehman brothers call ups in 2008 where all of a sudden you know many people became aware that the financial system is very fresh and since then we have seen a reorganization of businesses how they run their financial structures for example so that if they have to rely much less on bank credit for example as a consequence of that and they think something similar could materialize ols of out of the corona crisis. president of the kill institute for the world economy thank you for your insight thank you chris it started with a wild idea and turned into one of the biggest chinese trade hubs here in europe in 2012 a couple of entrepreneurs turned an abandoned army post in the south west of germany into a business center for chinese companies and the plan worked over the years more than $250.00 offices opened there but with the cover 1000 outbreak in china turning into an international crisis things have become much more quiet. business developer michelle dietz is proud of what. the u.s. army used to be st

on september 15th 2008 lehman brothers one of the largest u.s. investment banks collapsed because that in. a phenomena speculative surfin must begin to. present itself so that your couscous a pricey i've honestly didn't so give you the presumptive don't. continue to look good if if you're more on. the debt good with the presumption the currency get on play. is good clearly for it could have done it. and you can sisters keep up the it is a process that in a while the reason. you don't is all going to have it the coming every other time is developed but on. ok probably also on our ration the sequel is commercial could show took up so i did a fade to distribute the go on to just what is on it would suggest that the other element was. 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. not on and off a separate issue one suture that are keeping no bond to god you have to prove the devil up it is act

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the firms that were less stable, jp morgan, bear stearns, ourselves, and we couldn't stabilize lehman brothersint, the ceo of bank of america was leaving and they needed a new ceo. how did they take you? you are the general counsel. brian: at that time i wasn't. after that, i had the commercial banking business and investment banking business. i couldn't keep a job, let's just say that. i had five jobs in one year. we were doing deals and things were shifting around. of late summer, early fall 2009, the ceo told the board he wanted to leave at year end. they went through a search process. it was something i told our board i will never leave you in a position to do. i him a successor at all times, now, at some time in the future. it was a difficult process for all involved. they finally concluded i would be ceo and i have been ceo since. david: since you have been running it for 10 years, market capitalization is up 54%, stock prices up 74%. what did you do to make these events happen and make bank of america largest consumer bank in the u.s.? brian: it was straightforward and there was some ad

on september 15th 2008 lehman brothers one of the largest u.s. investment banks collapsed. and filaments because it is certain must begin to. present itself so that your couscous a posse of honesty didn't want was there so give you the presumptive don't let. them continue. if if you're on to. lead it good with the presumptive the currency get on play. good hockey live for they could have done it the nickel sisters keep up the the surprise the us did in a while the reason. they don't is all they want to have it all the time is develop for. us it ok about the also aura russian the sequel is commercial good i took up so i did a fade to distribute the go on to choose what is on it would suggest that the other animals. 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. not on and off a separate issue one that are keeping on no bond to god you have to prove the devil up it is actually take you on to the proof. if your proof dog

it was one fund on one bank's balance sheet was downgraded and it started a chain reaction of lehman brothers and bastards and elsewhere and a crazed create the global financial crisis which requires 17 trillion dollars worth of or more and balance money and the response of wall street and washington and other banks around the world was to increase the size of the pipes that carry the money right so they didn't they didn't bother examining well is the currency self worth anything or is the system unstable or are we floating this enormous global ponzi scheme they set the ponzi scheme we're going to keep that intact but we're just going to widen the pipe so that we can float and flow more fraud remember it wasn't so in insolvency crisis auser it was an eloquent in a crisis right it wasn't that they were committing fraud it was that they weren't getting enough free money from the central banks so they made the pipes bigger they deregulated they really architected they change laws they stole from other poor slobs and then that they have this bigger pipes for the bigger global ponzi scheme but my

. >> it was a monday morning like no other, in the 158-year history of financial giant lehman brotherskrupt. >> this is a global catastrophe and markets selling off 800 points a day. it's a head-spinning -- you felt like you were in a crashing airplane. >> john said, i have to do what's right for the country. i'm going to suspend our presidential campaign. i'm going to capitol hill to make sure they do the right thing on the bailout. >> and i'm not going to be campaigning because of this crisis. i think we should cancel the next presidential debate. >> then obama comes out and says, guess what? >> it is going to be part of the president's job to deal with more than one thing at once. >> and kept on campaigning. >> john mccain asks to have a summit meeting at the white house that he will attend, obama will attend, and senate leaders and congressional leaders will attend as well as the incumbent president george bush. >> the breaking news happening right now. president bush and the men running to replace him together at the white house talking about the nation's financial crisis. >> and

if you don't remember, that's when the market bubble first and lehman brothers went bankrupt. this week alone, you saw the percentage loss for the dow and its value. mcdonald's got torched, coca-cola which lost 11% on the week. that's the stuff that doesn't really make a lot of sense. people are still going to drink coca-cola, but oil prices were decimated down 16% from monday to friday on the belief that demand will be dented if economies from china to europe too, yes, the united states begin to shrink. bret, we know the virus has already disrupted supply strains to get parts and materials from other countries. that fear ramped up to a new level with the victims popping up in italy over the weekend and john roberts reporting the connection in california of a second community spread victim. >> bret: you had larry kudlow saying, what i would look for, the buy in the market, there are buys to be had, coronavirus is the trigger but what connections are investors making between the virus and their money? >> he's right. so many things on sale, but the virus spreading come of that s

they acquired a couple investment banks, hired thousands of investment bankerse ill lynch, lehman brothersirtually from scratch and overnight, onef the biggest, most aggressive wall street had ever seen. it went head over heels recklessly trying to compete. reporter: lotsre of banks went lessly at that point. by 2008 the only two that were larger do not exist anymore. >> that is true. it was a cature of thera in which it was operating, aperiod -- a period where all the rage in washington, london, were very ch operating under the assumption big, private companies could look afterhe themselves andovernment does not need to interfere. reporter: why the relationship with donald trump and when? >> ite started in late 1990's. deutsche bank was trying to make a name for itself on wall streetts buildrand in the u.s. there were much more established banks. donald trump at the time defaulted over and oveagain for his businesses from a wide array of banks. he was off to the mainstream financial industry. he needed banks with higher tolerance for risk. desche bank needed clients potentially on bankabl

some of the biggest events that we have seen, the crash of 1987, brexit in fact, the collapse of lehman brothers, these markets tend to be 20, 30, 40% higher. it doesn't help today, but that is a thing to remember when we're seeing this kind of pressure. jim, poppy? >> julia, thank you. such important perspective. we'll keep it all in mind. we'll keep an eye on the market, of course, politics. it is crunch time for the democratic candidates making their final pitches before voters, one day before the critical south carolina primary. >>> and a mystery in montana. families are fighting for answers after dozens of native american women and girls, dozens, that's right, have disappeared there. i love the new myww program, because it's tailored to you! ...take the personal assessment and get matched with a proven weight loss plan. find out which customized plan can make losing weight easier for you! myww join for free and get three months free! stop cutting. new elvive dream lengths. with a cocktail of vitamins and fine castor oil. strengthens hair's length and helps seal split ends. to save that last

investment bankersr kind of the most aggressive firms in wall street at the time-- merrill lynch, lehman brothers, bankers trust. and they build, virtually from scratch anvirtually overnight, one of the biggest, most aggressive trading, sales and trading operations that wall stet had ever seen. and it just went head over-- head over heels, ilehink, very rely in hindsight, trying to compete. >> reporter: lots of people, lots of banks went recklessly at s that. >> thaue. >> reporter: the two ahead of it-- i looked it up, a by 2008, the only two that were larger actually don't exist anymore. >> yeah, that is absolutely true. this was-- it was very much acr ture of the era in which it was operating. and this was a period in the '80s andhen in the '90s and into the-- obviously into the 2000s, where all the rage in washington and london and many capitals of the world was kind of laissez faire regulatn. were very much operating under this assumption that big private companies can look after themselves, and the government does not need to interfere in how they're being run.r: >> reporkay. so why the rati

we look at the magnitude of today's the kinds it's lower by about 3.2 percent on the day that lehman brothers went bust which was really at the height of the global financial crisis back in 2008 it was down by 3.8 percent so it's really not that much less and this is the crisis in terms of the markets that's gripping the world that we look at the dow jones in the united states for example suffered its biggest points decline in history that was on thursday and normally what happens is we see flows towards gold as a safe haven but in fact gold has also been having its worst day since 2013 and that kind of highlights the fact that there's nowhere to hide right now. but what's a sense what's the feeling on this is a great deal of uncertainty to say the least because you're a feeling that it will. i mean that's really what makes the market isn't it there are some buyers and there are some sellers there's one school of thought out there that says look we're down about 10 percent from where we were 15 percent in correction territory as your reporter mentioned from where we were just recently that ma

. >> the 90's in equity delivered -- equities derivatives at lehman brothers.we dumb that down a little bit? we will in a moment. hang tight with me. we do want to go to brussels now. maria tadeo is with margrethe vestager. take it away. good morning. i'm happy to say i'm joined by the european commissioner. this was a big week for technology in europe. before we go into the presentation you just gave i want to talk about mark zuckerberg because he was here monday and seems to be saying i'm happy to see more guidance from governments. i'm happy to do regulations. some will tell you it's a big shift in tone. i'm not sure if i buy it. >> there's a difference between a shift in tone and a shift in behavior of course. and i think everyone appreciates that we can have another debate by now about the responsibility of giant platforms. but i think the important thing is to see real change on the ground. in that, we are still considering. it's not regulation -- if relation is needed to make sure the things we have decided in the real world also is represented in our di

caught asleep at the wheel when the repo spike started, they have done more aggression in saving lehman brothersleveraged many times in u.s. risky assets. he has gone from wanting to remove the punch bowl in 2018 and hurting risk returns, i think he will be the punch bag when people realize the fed has inflated this and he will be blamed for allowing this liquidity bubble to start to get going. divorce from fundamentals as we see the global economy potentially slow down, and from a global perspective look very recessionary in the next three to six months. tom: michael mckee is in washington and he will stir the soup bowl as we look forward to a nuanced discussion on china. that testimony today by chairman powell front and center above all the other distractions, including new hampshire. our, hethe 10:00 a.m. tested -- hour, he testifies to the legislative branch. ♪ ♪ "surveillance," there is monopoly, duopoly, dry oly,bully, and then -- triop and i am out of words. wireless,own as the cell phone carriers in america, this is what it is all about. in america, you get a monthly bill and it is usual

single a credits, the b credits we'll get a widening we won't get a widening like we had over lehman brothers we're going to get a widening credits. no question about that this is very predictable very normal in this type of crisis. >> just to sum up your bottom line, professor siegel, for people watching, and they listen to you, see you on the commercials, are you saying it depends on your time horizon here of what you should do with stocks near term maybe more pain, longer term investors what, sit with what they have? take the opportunity to buy? >> yes, yes. absolutely i mean, this could be a really tough year but 2021, 2022 onward there is no reason to say we're not going to snap back from this we always have go back to 1918. terrible one year then things got much better economically o you've got to look far forward. if you got some cash now, yeah time to put it to work don't get nervous if it comes down another 5% or 10% 10% from now would be the bear market it would take care of that recession. but you're going to get a bounce back in 2021 that i think is going to make a lot of investor

but when in 2008 we're comparing back to mostly after the lehman brothers shock in september and fall of that year when we really saw this cascade lower. but what was going on beforehand well, let me tell you. the market peaked in october of 2007 nearly a year earlier. it was already down 20% in this very kind of managed bear market fashion. then we got the shock and we were already a year into a recession. and it was not really a stock market issue it was mostly dislocations in the mortgage market in correct those were the liquidity issues. the stock market was kind of the tail and not the dog now, look at that compared to the current chart over the last couple of years. and what you see, obviously is this was a vertical drop off of an all-time high in a bull market which has been a bull market for awhile. very similar to this one and this one and so it's not really happening under the same dynamics. i do think the comprehensive washout selling looks like 2011, parts of 2015, and yes, 2008 even some of these washed out measures are going back to things like 2002 which is the bottom o

lehman brothers was the biggest investor in mortgages, they went bankrupt.s soon as they went bankrupt, -- they were scared there might be other boots to fall. , paul walkerin ended inflation in the 1970's. let's put and said the federal funds discount window at zero. immediately, all the banks new they were -- knew they were protected. in thetely they know worst-case scenario, they can get the federal funds at general rates they needed. that is why the economy changed. barack obama and by the way, interest rates are still at historical lows. obama and trump both are riding on the coattails of what the fed did and continued to do for the last 11 years. neither one has that much of a by fiscalact except spending, which is a deficit. that is the truth behind the story and thank you very much. host: tom in pennsylvania, who should get credit for the economy? host: hello and thank you for your insightful perspective. i believe it should be neither party but the american taxpayer because every time the economy gets in trouble, it is bailed out by our tax money an