[laughter] and then / forward to the lehman brothers financial crisis. we had a huge financial service business it is heart wrenching for the people that have died. it has been a horrible year. for the 90 days after if you are in financial services, you will never forget that as long as you live. every day was a new crisis and you had to make decisions all over the place. and at the same time, i had a media business and aviation business i would work on those 7:00 p.m. through 11:00 p.m. then 6:00 a.m. through 7:00 p.m. doing financial services. i remember when lehman brothers went bankrupt. washington mutual went bankrupt. and we decided that night we would raise $15 billion of equity the next monday. the biggest in the history of the world. so i say it is rocky out there. finally roger pinsky let's get the money process and then we fast forward to sunday night with a last-minute offering in asia. and then t.a.r.p. failed, seven banks in europe go bankrupt. i have to decide with 15 minutes to go do we want the next stage? i never felt i had so much pres

we had absolutely, when lehman brothers went bankrupt, it really crush the debt markets. so we had really the wrong business model for the time and that just put handcuffs on us for a period of time. i just think, we didn't navigate it as well as we could after we allowed the financial businesses to get bigger than we should have. i own all that. i talk about in the book and it just was, ages was really, there was nobody whose business model was hurt worse the data lehman brothers went bankrupt than ge capital, and navigating that just took a ton of effort and time, but ge capital is a great group, great set of leaders and i just never get as good a a b as i could have to help us navigate all that volatility. >> now, you take one for the team they're saying that's on your watch, but that brings me to this next question which i think is a good follow-up here which a, you even in the book the ge you inherited seemed overwhelming and its complexity nearing its responsibilities to my head exploded written some of the things you had to deal with on a day-to-day basis. i mean,

so it was very nefarious in september when they let lehman brothers fail. over fannie and freddie. then they realize goldman and morgan stanley be having a problem. that was about 20 september so they literally made goldman into morgan stanley. bank holding company which allow them to borrow billions of dollars so they had all the liquiditythey needed . three days later, treasury we know this if you talk to the people at the federal phome loan back in seattle . and in san francisco, back in the is the they call the home loan said you liquidity. >> so what did you want to do or what you think they have to have kept washington mutual last. >> they were in your. there is no plan all your support for goldman sachs and morgan stanley, why couldn't they three days later that same liquidity and support to washington mutual and several days after that why not give it to wachovia. why not give the same liquidity to wachovia . >> why didn't they i guess? >> because paulson wanted to consolidate banking in wall street which is what he said in his march 15 rent for a new financial system. >> s

motion what would later a few months later 6 months later become the global financial crisis when lehman brothers also collapsed you started to see that again the debt crisis has risen again you might say bill langer of arc ago yes he you know his fund collapsed in a spectacular fashion with massive margin call up to about $30000000000.00 margin call he received and it looks like he's really impacted not only did like c.b.s. viacom c.b.s. fall by like 27 percent as all his shares are if i had to be sold off by the counterparty banks.

motion what would later few months later 6 months later become the global financial crisis when lehman brothers also collapsed you started to see that again the debt crisis has risen again you might say bill lang of arc ago he 5 you know his fund collapsed in a spectacular fashion with massive margin call up to about $30000000000.00 margin call he received and it looks like he's really impacted not only did like c.b.s. by viacom c.b.s. fall by like 27 percent as all his shares are if i had to be sold off by the counterparty banks but the banks themselves i credit suisse have been hit credit suisse warns and pre-market statement of a highly significant hit to its 1st quarter results after it began exiting positions with a large us hedge fund that defaulted on margin calls last week so played.

motion what would later few months later 6 months later become the global financial crisis when lehman brothers also collapsed and you started to see that again the debt crisis has risen again you might say bill wang of arc ago he you know his fund collapsed in a spectacular fashion with a massive margin call up to about $30000000000.00 margin call he received and it looks like he's really impacted not only did like c.b.s. but viacom c.b.s. fall by like 27 percent as all his shares are if i had to be sold off by the counter-party banks but the banks themselves i credit suisse have been head credit suisse warns and pre-market statement of a highly significant hit to its 1st quarter results after it began exiting positions with a large us hedge fund that defaulted on margin calls last week so play this as a tragedy or a comedy you know that's always the question if i go tragic. that would be one way to go down the tragedy path or i could go down the comedy path either one or there's a tragic comedy there's a. mix of both if i go down the tragedy path things could get woolly so the 1st time was tr

you think back when they made the purchase for lehman brothers back in 2008, talk about bad timing.another stumble, and that really takes a hit to your risk management ability, each stumble along the way. what they say, once bitten, twice shy, while twice down, do you get back up or do you lick your wounds. do they go with the archegos one-off hit, but the dominoes are starting to fall. >> taking a look at the regional fallout, and also ubs, despite strong numbers, announcing its own surprise hits from archegos. absorbing a loss of over $7 million it, and is expected to see an $87 million hit in the second quarter. >> we are very disappointed at the situation. we are taking it very seriously, and we are reviewing the different relationships and reviewing the risk management processes to make sure that it does not happen again. >> where would you reduce leverage and reassess how you land? >> if you take the lessons learned often now, there are elements that we are picking up. the first one is the level of transparency and some of this business as well as the concentrated positions to

game stop should be eye-opener because the fact is there was no financial crisis it is not like lehman brothersd now we have a settlement problem there's nothing going on right now, yet there are huge problems going on in the infrastructure if we don't solve it now, then the next crisis will come along and we could be in potentially the same position. using new technology to do things in a new way is something we do in every industry. we should do it here, too. >> yes, that's a good point, chad a lot of the game stop saga would have been avoided if you had turks plus zero. thanks for coming on we will talk about the cryptocurrency market topping 2 trillion monday. thanks for being with us, chad. >> thanks for having me. >>> after the break, a supreme court justice is facing off with twitter. details in jt montusa me connected to more comfortable homes. emerson's energy star™ certified sensi™ smart thermostat uses geofencing to simplify how homeowners manage comfort and costs. emerson. consider it solved. we started with computers. we didn't stop at computers. we didn't stop at storage or cloud.

let me preface my remarks by saying i am a -- he was one of the first people who identified lehman brotherstechnically insolvent. i take everything he says seriously. he is wrong across the board about all of the things he suggests regarding this idiotic $100 million deli. let me start granular, and say in 2015i wrote i was looking for disconfirming evidence. we tend to look for things that confirm our belief. i was bullish and said let me find something that might make me less bullish. i found similarly on the pink sheet, $100 million grilled cheese food truck. to be fair, they owned four trucks, not just one. they did not own the land underneath the way the deli does. it proved nothing. they're always garbage companies on the pink sheets that have crazy evaluations. they stopped trading. i wrote that in 2015. they stop trading in 2019 enclosed last year. to draw a conclusion from an outlier is bad rhetoric. lisa: there is a question, how do we know when something is idiosyncratic, and we made that a drinking game, versus a symptom of a broader problem? barry: that is a fantastic question.

so it was very mysterious in september when they let lehman brothers fail. they took over fannie and freddie. and then they realized might be having a problem. that was about the 20th of september. instead they literally made goldman and morgan stanley bank holding companies. which allowed them to borrow billions and billions of dollars but that all of the liquidity they needed. two or three days later treasury and federal reserve, you know this for a fact if you talk to people at the federal home loan bank in seattle so a couple after they gave all of this makes the investment bank they called the federal home loan bank and said cut off liquidity for washington mutual. >> so what did you won them to do? or what do you think they could have done that would have kept washington mutual from collapsing? >> they were in pure panic mode there is no plan at all it was pure panic. they were going to open up the doors for all of the money and support to goldman zach's and morgan stanley, why couldn't they three days later get that same liquidity to washington mutual

and it has a story and has a lot about the lehman brothers and milken years and when i was 22 year'sto take and the effort you have to put in and how you have to behave. so that was, you know, that was my purpose in writing a book and so far the reaction has been good and i think it's a chance that i may have met my goal, i hope so. maria: eric, great to have you this morning. thanks very much and thanks for the great to this great country. >> thanks. maria: new study show it is pfizer vaccine may not work against one strain of the virus. -- amesh adalja coming up. stay with us. you're watching mornings with maria live on fox business. ♪ ♪ ♪ a fund that invests in the innovators of the nasdaq 100 like you you don't have to be circuit design engineer to help push progress forward can i hold the chip? become an agent of innovation with invesco qqq maria: welcome back, a vaccination breakdown. the south african covid-19 variant breaking through the pfizer vaccine. according to new study out of israel. tel aviv university finds the aggressive strain affecting 5.4%over fully vaccinated st

of you because, you and i were doing -- a -- on show, 2009, 10 you broke repo 105 story what lehman brothersa trying to hide leverage. here we are 12 years later banks doing -- not banks now hedge funds using total return swaps, 21st century tricks to hide literally billions and billions of dollars leverage, and in this case, one investor has hit the global banking system with about 12 billion of losses. tended for people watching right now implications are, hedge funds right now mutual fund asset managers cannot trust prime broke, the banks on street right now a week later can't calculate losses this is scary, have not given a number number of banks not given thank yous number that means that we are going to see a prepotential deleveraging as a investors hedge funds can't trust prime broke, a natural deleveraging process funds start with house, senate hearings, going to be entertainment time on television. maria: absolutely, larry those as the were incredible i remember in lehman collapse when i first got the call before weekend that changes everything when lehman went under i first got the

do upgrades to their homes in places like big sky, because i think, for the first time since lehman brothersate as a great place to put their cash. it's now not just something that they buy because they need, because they're moving jobs or having a baby or just need more space. they're now buying it because they want it, and they're looking at it again as a healthy investment. it's not just for the 1%, or the high earners. it's everybody across all marketplaces and in new york city, finally, we are seeing that start to happen here and its been incredibly exciting. we just sold one of the first resales at 220 central park south a week ago friday, for , $ , 200 a square foot, $ 33 million for a three bedroom and that purchaser believes in the strength in new york city. neil: i didn't know you guys were the ones but sure enough. >> we're always the one, come on, neil. neil: there you go, but let me ask you a little bit about that new york now because there are a lot of worries and there's some back and forth between the mayor and the governor over that july 1, 100% open, you know, goal is reali

his short position in lehman brothers is one of the bearish signs that company could be headed for aration is palable and understandable folks like elon musk have such rock star status at the moment that they don't have to do much to kind of keep the party going in terms of the longs and the excited retail investors piling into either tesla or game stop or what have you >> kate, some people reacted and looked at that letter and said who is calling the kettle black here you know, just as elon musk might be pushing stocks up or tamak is pushing stocks up, there have been lots of times where the likes of david einhorn are come on our air or, you know, gone out publicly and tried to push the stocks, for example, of tesla down and unfortunately for him thus far, at least, incorrectly >> yeah. no, it's fair enough i'm sure einhorn himself would admit that he has a power as well in some situations to push down names or possibly push up names. i remember doing my share of stories while at cnbc on the latest einhorn positions you saw market benefit the opinion leaders in the hedge fund space