>> well, remember, morgan stanley was under extreme pressure.iquidity was disappearing very quickly. one of the... i tell about a number of really very, very difficult telephone conversations. >> rose: well, just tell us about it. >> i would say that the... but what you're specifically alluding to was morgan stanley and to john mack's great credit he had gone out and interested a japanese bank in making an investment. mitsubishi. and that... and but he needed that deal to close, we wanted it to close. we were naturally... all through this crisis we talked with foreign governments. they had a real interest in the stability of our system and what was going on, so we talked to the chinese, we talked to the japanese. now, in the case of the morgan stanley investment with mitsubishi, the japanese government obviously wanted to know, as did the bank, that investment would be welcomed and that the u.s. government wouldn't go right after investment was made and do something that would... >> rose: so what did you say to the japanese? >> so what we did wa

goldman sachs, morgan stanley wells fargo, i get the early signs that in terms of the criteria of thensation they seem to be following voluntarily the prescription -- prescriptions i have entered into. but, in terms of long-term compensation, what i am doing, as you know, what i am doing is one small part of a much broader venue that the chairman and the committee no great deal about, corporate governance reform, regulatory reform, the g-20 principles promoted by the secretary to make sure that foreign corporations are doing what we are doing, the federal reserve, the fdic, the legislation of the chairman. there are a lot of other initiatives out there that can have an impact on those companies that are not part of my jurisdiction, including some advanced by the administration concerning bank fees and other initiatives. i take no position on all of those other than to say that if you examine all of the items that are out there that are being considered by this committee, it seems to me there is an appreciable opportunity to rein in some of that excess of pay we see now that got us par

how about morgan stanley? morgan stanley is not having the reputation problems that goldman sachs is, and a great way to get exposure. >> you were given the assignment of aig and you said stay clear of this thing because things are so incredibly murky and look at where we are today. i mean, if this company can't give the proper guidance to the treasury sect a couple of weeks ago, i don't know, as a taxpayer, as a holder of this company and in essence, i'm doubtful. >> right. we've got 80% of a stake in this which is a big stake right now, and when you look at that short interest, i mean, there's a lot of reasons right now that i don't think we've seen anything from today's data that has made it less murky. if anything it's more murky, but that doesn't mean you can't trade it. joe talks about what are some of the trades. the volatility right now has come back. this is not a stock that people can short because they just can't borrow it and there is a very large short interest that was already put into place. it

the analysts at morgan stanley say there could be some negative data due from the experiments of a drug from astrazeneca. >> we'll look out for that. patricia is in frankfurt. what's higher there? >> it's looking good, isn't it, ross? a lot of the car and truck stocks are doing very well on this wednesday morning, especially m.a.n., up about 4.7%. you a couple of reasons here. we had very good data coming through from swedish truckmaker ganya. there is increasing talk, of course, that vw may take over m.a.n. and that is pushing that stock higher. by the way, skania was up as much as 9% the last time. carmakers like daimler, up. on the down side, daimler down after getting a downgrade from morgan stanley from overweight to neutral. siemens is falling suit into the red. >> and we've done some research. do investors like them or not? goldman sachs had a good look at the solar stocks and renewable energy in general. as you can see, we have quite a bit of a reaction there. for example, conergy trading down quite a bit. it's interesting to see that they're downgrading the stocks. we had obama

. >> let's look at specifically you have goldman sachs, morgan stanley, jpmorgan chase.t bailout money, and their bonuses rose 31%. i wasn't great in math -- >> right. >> -- but explain to us how you get that much money. >> there's no other industry where if you fail as spectacularly as all these companies did before 2008, that you get the kind of raise that they got. what most people don't understand is this money is almost entirely taxpayer money. they were given a mountain of guaranties even aside from the t.a.r.p. which most people understand. for instance, goldman sachs and morgan stanley converted commercial bank status, they got to go bar from the fed at zero and then lend it back to the government at 3% or 4%, basically free money, and they're taking that money out of the pockets who are saving because interest rates are so low that ordinary people saving are being punished. >> i wish we had more time. we have to go back to that toyota hearing. there are other levels as to what the administration is doing and even john mccain says he was duped, misled about the b

an analyst at morgan stanley upgraded the stock, predicting rising orders will lead to stronger than expected profits. coca-cola shares were one of the other leading stocks inside the dow today. coke helped push the dow back over 10,000 today. earnings came in as expected with profit gains in asia and latin america. at home in north america, it's still a soft market for soft drinks. let's take a look at the numbers from coke. while the results met expectations, revenues were better than predicted and global sales volume was up 5%. in china, coke volume was up 29%. the rally spilled over into pepsi today ahead of its earnings thursday. after the close, entertainment giant disney beat street expectations, driven by its broadcast and cable tv channels as well as its movie business. the house of the mouse saw profits drop at its theme parks and consumer products divisions. the company thinks movies "alice in wonderland" and "toy story 3" will drive future profits. disney shares were up fractionally in after hours. its up more than 50% over the past year. as we mentioned earlier, hopes of

according to morgan stanley, europe accounts for nearly a third of u.s. exports and 8% of s&p 500 company revenues. >> if the greek situation gets too far out of hand, you could see european g.d.p. cut back several points in the back half of this year, and that will slow revenues at those companies. >> reporter: the problems in greece underscore why experts think an international portfolio should be well diversified. the goal is to spread out your risk beyond one country and region. erika miller, "nightly business report," new york. greece is just the latest country to be the focus of worries about ious, concerns still building about spain, portugal and others. nariman behravesh is back with us, chief economist at i.h.s., joining us from boston. welcome back to "nightly business report". >> thank you. >> tom: we had a rush of bond defaults in 1988. argentina defaulted in 2001. sth greek threat of default any different from those? >> not really in terms of its order of magnitude, but the worry, as you were saying, is the domino effect, somewhat somehow or

even investing in some of the best-known american brands, apple, coca-cola, johnson&johnson, morgan stanley and tigrou as china rises, it's watched the u.s. and western economies fall. >> chinas feeling its oats after the economic recession. they feel they came through it pretty well. they are feeling robust about their future, and so they sort of have a little bit of a swagger to their step. >> reporter: flexing their muscles blocking sanctions on iran, threatening to retaliate u.s. arm sales to taiwan, opposing a climate change deal in copenhagen, launching cyber attacks, protesting president obama's planned meeting with dalai lama. blocking tv coverage of the president's town hall there last november. and yes, even though they had every right to do it, reclaiming those beloved pandas. but for all its clout and increasing willingness to throw its weight around, china has its problems. remember all that toxic tooth paste, theead paint in toys, the lack of regulation that cost the lives of thousands of children in the 2008 earthquake. many because of shoddy school construction leading t pro

i know morgan stanley recently put them in on stricter claw backs as well. >> jamie dimon told us once in an interview with david faber that they've exercised those clawbacks in certain cases. >> yeah. >> and not with him. in that restricted stock, actually true. it's supposed to be the investing period and the board can extend the investing period if they're not happy with the firm's performance and dimon's performance, i've been told. >> thank you, mary. >> all right. thanks. up next, the earnings season scorecard as we wind down wall street's hit parade. >> plus, a very interesting divergence in the unemployment number. the rate is falling, but the number of people losing the jobs are still climbing. what does it mean? we'llie we will talk about that after a quick break. >>> and president obama speaking out on the economy in the wake of those jobs numbers from this morning. we will hear from him just minutes from now. we'll carry that for you live. >>> we have matt nesto, what is the hot mid-cap move or your radar? >> i'm going to put my 2 cents in, dennes. i have a retailer that ha

interestingly, ryder's in the transport index, the s&p 500, the russell 1000 and the morgan stanley cyclical, so lots of avenues to give ryder a good old kick today. then lastly a big volume here today. or big trades in the intraday turn-around. you can see the stock was low. citrix systems continues to draw some buyers at low level so it's gone back to even today and the calls i understand are also very active. over to david faber now for the very latest faber report. >>> thank you, matt nesto. interesting tale of two media companies playing out in the stock market today. newscorp up sharply and actually much of the group also up. not nearly as much as newscorp. time warner, though, perhaps the lone exception after both those companies reported earnings in the last 24 hours. there's a look at news. up over 5.5% right now. the stock as you see above or right around $13.50 a share. why? well, the company reported estimates that were well ahead of expectations and also gave a very positive outlook. it is generating a good deal more in revenues and profits than had been anticipated from its cab

this morning in fact, morgan stanley cut the stock just ahead of the company issuing its warning. palm now saying that it's going to come in with sales that are more than 20% below what the street was looking for. they can't sell phones. part of the reason? in this age it's all about the apps and you've got google and their hooks developing them for the droid are and obviously the app king is apple itself. take a look at apple sars. part of the reason that we've seen a bit come off of those lows today, as far as tech is concerned, it's because apple, a very big weight on the nasdaq composite. came well off of its lows and coming back above $200 today. this happened over the last hour or so. part of the reason, perhaps some hopes some folks were hoping at the shareholders' meeting might hear something about a stock split or even more a stock dividend. steve jobs coming out and saying that the point he sees no case for a dividend. the company saying they are not splitting the stock. jim goldman will have more on about what happened at the shareholders' meeting at the bottom of the h

. >> goldman sachs and morgan stanley had a problem, which is they were about to fail, and everyone felt that this was coming and they couldn't borrow easily from the fed because they weren't banks. >> reporter: then, the authorities had a vision of salvation, according to johnson. >> and they said, "aha. we'll turn them into bank holding companies so they get... they have access to this cheap money from the fed. >> reporter: bank holding companies own or control one or more u.s. banks. though no one from goldman would give us an interview, c.e.o. blankfein recently told the financial crisis commission that the firm wasn't necessarily on the brink after lehman brothers collapsed in mid-september 2008. >> that weekend, when we became a bank holding company, the next day, we capitalized ourselves, in part, privately, with warren buffett. and the day after that, we did a capital raise for $5.75 billion, which you could have made a lot higher. we had access to the capital markets, and we could have made it more, and we weren't relying on that government help. >> reporter: but others are dubi

subsequent swoon many blamed its abolishment for the market's rapid decline with some including morgan stanley'shairman john mack. in response to the complaints the sec temporarily prohibited short selling in financials, being borrowing a stock to sell at a lower price with the borrower pocketing the difference. the sec decided to consider the uptick rule last year. the result a modified version being considered today. many firms having lobbied for the old rule to be reinstituted while short sellers and others argue older modified versions are not necessary. another issue on the table today the commissioners will vote on whether or not to adopt a road map rather than a specific date for u.s. companies to adopt international accounting standards rather than the currently accepted, generally accepted accounting principles or g.a.p. prince tallahassiplese u.s. believing it is in the best interests. >> let's go around the floor with our market reporters. brian, we did pop a little higher than we are now but up about 54. >> yes, not too bad. we're off the highs. we actually dipped, he when hamp was t

economist with morgan stanley. we appreciate you being here.rved, of course, here on the research staff of the federal reserve in washington where yuko directed the fed's model based forecasting -- where you co-director of the fed's model based forecasting. there are a lot more things i can say about you, but i think this gives us an indication of your qualifications. we're pleased you are with us today. what are you go ahead and let me hear from you and then i will introduce mr. joerres. >> thank you for inviting me to this hearing. following the deepest economic crisis since the great depression, u.s. and global economies are starting to recover. in our view, however, the recovery will be moderate and job gains modest. in 2010-11 we expect gdp to grow 3.5% and we expect annual job growth to average about 110,000 monthly over that two- year time frame, excluding high yields for the senses. even those job gains, however, are not a foregone conclusion. we have yet to see job growth in our economy, as you know. and while indicators have improved,

the second element of it is that companies like morgan stanley and goldman sachs, they are not banks.ble. but nobody in washington explains that to the public. you know? aig, nobody explains to the public that the reason it couldn't be allowed to go down the drain is its tentacles were so vast, so underreaching that if they did allow it to get flushed down the drain, then the big banks go down, and only then. and now back to present day with the legislation on the thing, there's only one piece of legislation consumers are interested in other than having their mortgages taken care of if they're in trouble, and that's, let's hammer the credit card companies. if they can't put a contract out in english that you can't understand, then they should be in business. >> and we will get some of those changes. they're coming down the pike very, very shortly in terms of how the credit card companies are going to be forced to deal with consumers in a more fair way. but i think coming back to the mortgages for a second, we can chip away at the interest rates on these loans. we can force banks, we c

economist at morgan stanley. he's written widely on the potential effects of fiscal issues and situations that could affect the financial market -- the fiscal situations, how they could affect the financial markets. carlo cottarelli, and i direct the papers that the imf is putting out on this topic. many years ago i switched fields because i discovered cbo payables and how fascinating they were and that got me fascinated on the budget. recently the same thing i found is happening with the papers coming out of the imf and carlo's name is regularly on them so i really direct you to the work that they are doing. i have given them first wide range of topics to discuss. i think one of the fascinating things is so often we're on a unsustainable path and we risk a fiscal crisis but very little is understood about what that means, what it looks like and how that might play out, what could be a tipping point for our financial markets. i don't think our panelists could answer those questions but i hope they would address t

economist with morgan stanley and we appreciate you being here. you are directing the forecasting and analysis of the global economy and financial markets and co-head of the firm strategy forum. usurp on the research staff of the federal reserve in washington where you directed the fed will base forecast and there's a lot of other things i had written here that i could say about you but i think that gave san qualifications. we are pleased to be with us today. what does she go today and we will hear from you and then i will introduce mr. joerres. >> senator, thank you. other members may not be here. thanks for inviting me to this hearing. following the deepest financial economic crisis since the great depression the u.s. and global economies are starting to recover in our view however the recovery would be offered it and not job gains modest. in 2010 we expect real gdp to go three and a quarter% until three and half percent we expect annual job growth until 10,000 monthly over that period excluding hires for the central census. even as job gains ar

john mack, the chairman of morgan stanley said the same thing last night.s is moving way too slow and they need clarity. you're on the same page with that but you do you think some of your own senators, republican colleagues, would come on board when you start hearing voices from industry saying the same thing? >> look, i had a meeting with all of the republican senators on the banking committee yesterday. and it went well. i think all of us just want to get the right thing done. something that doesn't create some sweeping new powers on the consumer side that undermine the safety and soundness piece. but, you know, chris dodd and i were in central america last week. i think you know that. our staffs have been working closely together. warner's staff has been working. i think we're going to get to a place soon on a bill that will stand the test of time. and i think there's going to be lots of republicans who come on board. i had a very good meeting yesterday with senator shelby, actually two of them. i think things are beginning to percolate in a very, very

economist at morgan stanley.ffects of fiscal issues and situations that could affect the financial market -- the fiscal situations, how they could affect the financial markets. carlo cottarelli, and i direct the papers that the imf is putting out on this topic. many years ago i switched fields because i discovered cbo payables and how fascinating they were and that got me fascinated on the budget. recently the same thing i found is happening with the papers coming out of the imf and carlo's name is regularly on them so i really direct you to the work that they are doing. i have given them first wide range of topics to discuss. i think one of the fascinating things is so often we're on a unsustainable path and we risk a fiscal crisis but very little is understood about what that means, what it looks like and how that might play out, what could be a tipping point for our financial markets. i don't think our panelists could answer those questions but i hope they would address them. as we're moving on in the policy f

economist with morgan stanley. we appreciate you being here.global economy and financial markets and co-heads the firm's strategy forum. you have served, of course, here on the research staff of the federal reserve in washington where yuko directed the fed's model based forecasting -- where you co-director of the fed's model based forecasting. there are a lot more things i can say about you, but i think this gives us an indication of your qualifications. we're pleased you are with us today. what are you go ahead and let me hear from you and then i will introduce mr. joerres. >> thank you for inviting me to this hearing. following the deepest economic crisis since the great depression, u.s. and global economies are starting to recover. in our view, however, the recovery will be moderate and job gains modest. in 2010-11 we expect gdp to grow 3.5% and we expect annual job growth to average about 110,000 monthly over that two- year time frame, excluding high yields for the senses. even those job gains, however, are not a foregone conclusion. we hav