it started a run on goldman sachs and morgan stanley because some hedge funds had their assets trapped at lehman. you could feel the world financial system trembling. it was really scary. the only thing that saved the system from collapse was governments and central banks throwing trillions of dollars and loan guarantees at the problem, and letting goldman and morgan stanley become bank companies. the lehman fallout was a major reason the government felt it needed to bail out a.i.g., which was bigger than lehman. so tomorrow, let's remember that letting lehman fail turned out a lot messier than it first seemed to be, and that even though bailouts are hateful, they sure beat having the world financial system collapse. i'm allan sloan. debating here on wall street whether or not lehman should have been allowed to collapse. >> tom: we hear that all the time on main street, as well on capitol hill. this will be a debate for the ages, there is no doubt about it, susie. >> susie: we'll have to let the historians figure this out. that's "nightly business report" for tuesday, september 14. i'm

morgan stanley is a sind kator.e marketing directly to china. >> morgan stanley, jp morgan and goldman sachs are involved. they market to foreign investors all the time. every time they do an i.p.o. let me finish. every time we do an i.p.o. in this country there is a road show that goes on that the banks perform. that road show includes foreign investors. >> cheryl: let me bring something back. >> this is nothing new. >> cheryl: here is the point of bailing out g.m. was to keep the jobs in the country and keep the cars manufacturered here. china has a strong car manufacturering industry. who is to say they wouldn't push to see more g.m. cars made there? >> no one. everyone is right. china has the right to do whatever the heck they want. for the president to say we need to keep this in the united states, keeping a u.s. industry thriving, go to sell pieces to china is not the way to do it. >> i want my money back, though. >> i know, but do you want it to be in china? i'm not sure that is the right answer, jonathan. yo

we had morgan stanley commodities, ecosys, and those with the main players that were there. earlier this week was the final day for potential bidders to submit questions. we're looking at responses to that. we have seen it fit to amend it in a couple of notable ways. the first is that yesterday, it reduced the minimum credit requirement. it requires the lowest dodge of investment-grade rating. -- notch of investment-grade rating. we wanted to make sure that we could have the greatest number of firms being qualified so we could get them in the door and be thinking about their business proposals. secondly, associated to that, we're going to be issuing an amendment to extend to the submission date for with the responses are due. they had been due october 6 and we have given them an extra week, and we now know they can adjust their packets, potentially firms that were in that credit rating range, for example. they have time to respond. will also been working on responding to questions. the first round should go out today. we will have those out later today or on monday, tuesday

corporations occluding well morgan stanley and bank bellowing j.p. morgan chase and company someone took part in the say in this forum yes well did you manage to turn. looked to see as such a forum and what what's their general impression well i can't i did not speak with the people that you mentioned but i can say that from my daily dealings with our member companies and with many of our c.e.o.'s convinces me that they while they see opportunities. and frankly those that belong to our council those who participate in the form you could say are sort of a self selected group there are those who see the opportunities here and and have made some commitment to it. there are there are others that remain interested but on the sidelines. why. one of their concerns. i could start by saying that. russia is. fighting against a tremendous comparative advantage which is its natural resource and down. companies that have historically had the greatest interest in investing here were in the oil and gas sector minerals. and it's hard to fight against what is such a s

holt will in the size his business background and his work at morgan stanley. kevin kamenetz says he will run on his experience in government. >> promote economic development, create jobs, get the -- the county moving. >> i do believe we are going to see a republican wave that will hit baltimore county on november 2nd. >> he admits that in order to ride the wave, he will be a lot of help in west baltimore county. kevin kamenetz is very popular there. he says expect to see him there a lot over the next month or so. >> the results of the primary fuel their rematch between martin o'malley and bob are like. they both have ambitious schedules leading up to november. we caught up with both campaigns today. >> perception rules in politics and voters does much of the difference between the two men treat they combine both have raised taxes and both look out for their parties' interests. between now and november, the campaign will be sharpening contrast, many more tv advertising, policy initiatives and photo opportunities. in the rematch between martin o'malley and bob a

i talked about. >> you have said the end i believe there is an external support for this that morgan stanley had a reputation for strong risk management process. >> i believe you mean jp morgan chase. >> i am sorry, jpmorgan, but do anticipates any changes to further augment your risk management? >> we certainly constantly review how we do risk-management in nine different businesses. there are certainly things that we have changed. one of the things we certainly emphasize over this time is greater stress testing, not only of our trading books but also of our other lending books. we certainly have changed a number of a cost the limited structures under which we allowed our businesses to operate. and so we do risk-management very much an evolutionary process. we try to learn from mistakes i the past both ours as well a others. >> mr. fuld, you listed some of the mistakes that you thought lehman had made. was moral hazard in the sense that there would be an old cement governmental support if things went as bad as they ultimately did? was backed part of the mistakes of it lehman brothers? what

just between the bank, morgan stanley, and the conglomerate, honeywell. wow. >>> losing jobs to computers, it's happened to a lot of folks in a lot of industries, and now it's happening to teachers. one state cutting hundreds of millions of dollars in aid, putting school districts under budget pressure and generating some controversy. >> in new jersey, the latest job casualties, spanish teachers, being replaced by computers. as several public school districts look to squeeze under the state spending cap. in randolph, they're honing in on spanish classes for grades 3 through 5. >> i think the nature of education is going to change dramatically. >> will there still be a need for teachers? >> absolutely. >> in the wake of a $825 million school aid reduction, the town is saving nearly $100,000 by introducing an interactive computer program called reset at that stone to the children. the move is getting mixed reviews. >> the program marries pictures with words and when prompted students speak spanish into the microphone and the computer talks back. however, so

morgan chase, citigroup, wells fargo, goldman sachs, and morgan stanley, their assets were -- grew from 17% in 1995 to 58% of gdp in 2007 as we approached the high point of the financial crisis, but they are 63% as of the end of 2009. they are not any smaller. those six banks are 5% or to have a 5% greater size relative to gdp now than they did during the crisis. so my question to you, and i guess i will start with you, mr. steele, because you have a lot of experience in the private as well as public sectors, then i will turn to the other two of you -- are we really any less likely to be compelled to save one of these six very large and very interconnected financial institutions in the event that we have a liquidity crisis anywhere near as severe as we had before? and i raise this because it seems to me that there are conceivable circumstances in the future that could lead there. we, obviously, commercial real- estate loans are not as large in number as residential real- estate loans, but if we all can see that the loss of value in the residential real-estate market place was a signific

morgan chase, citigroup, wells fargo, goldman sachs, and morgan stanley, their assets were -- grew from 17% in 1995 to 58% of gdp in 2007 as we approached the high point of the financial crisis, but they are 63% as of the end of 2009. they are not any smaller. those six banks are 5% or to have a 5% greater size relative to gdp now than they did during the crisis. so my question to you, and i guess i will start with you, mr. steele, because you have a lot of experience in the private as well as public sectors, then i will turn to the other two of you -- are we really any less likely to be compelled to save one of these six very large and very interconnected financial institutions in the event that we have a liquidity crisis anywhere near as severe as we had before? and i raise this because it seems to me that there are conceivable circumstances in the future that could lead there. we, obviously, commercial real- estate loans are not as large in number as residential real- estate loans, but if we all can see that the loss of value in the residential real-estate market place was a signific

banking organizations, b of a, jp morgan chase, citigroup, wells fargo, goldman sachs and stanley, now are actually larger as a result of mergers and the elimination of other institutions, than they were even in 2007, just before the height of the crisis. that apparently, they were 58% of g.d.p. in 2007, something like 68% of g.d.p. in 2009, which had gone up from 17% of g.d.p. in 1995, so there's been a consolidation and a growth, and i guess, my question to you, would be, given their increasing size, do you really believe that these institutions wouldn't be allowed -- would or would not be allowed to fail by the fed if they got into financial trouble today? i mean, i hope it doesn't happen, but let's just say for the sake of argument, that a diminution in some other asset class results in serious stress to both the balance sheet and the liquidity needs of these institutions. are we really in any better shape today to avoid the bailouts that have been so criticized in the last few years? >> the federal reserve was created, but we were always well within the law and we always did -- on

banking organizations, b of a, jp morgan chase, citigroup, wells fargo, goldman sachs and stanley, noware actually larger as a result of mergers and the elimination of other institutions, than they were even in 2007, just before the height of the crisis. that apparently, they were 58% of g.d.p. in 2007, something like 68% of g.d.p. in 2009, which had gone up from 17% of g.d.p. in 1995, so there's been a consolidation and a growth, and i guess, my question to you, would be, given their increasing size, do you really believe that these institutions wouldn't be allowed -- would or would not be allowed to fail by the fed if they got into financial trouble today? i mean, i hope it doesn't happen, but let's just say for the sake of argument, that a diminution in some other asset class results in serious stress to both the balance sheet and the liquidity needs of these institutions. are we really in any better shape today to avoid the bailouts that have been so criticized in the last few years? >> the federal reserve was created, but we were always well within the law and we always did -- onl

in brisbane, stanley roberts, kron4 news. cnn has announced piers morganlarry king. he closed an interview program and britain will do a similar show for cnn. now it's official. i hope you enjoyed this morning joining us again tomorrow morning at 4:00 a.m. we will see you. rid of the mansion and the limo budgets were balanced. $4 billion in tax cuts. world class schools and universities. clean energy promoted. 1.9 million new jobs created. california was working. i'm jerry brown. california needs major changes. we have to live within our means; we have to return power and decision making to the local level-closer to the people and no new taxes without voter approval. jerry brown the knowledge and know-how to get california working again. so i grabbed my son a juiceed dbox...and left the cooler lid. open. twenty minutes later, all our hot dogs were gone. and so was most of the car. my mercury agent, steve, told me the car was covered. i switched to mercury because i saved hundreds of dollars on my car insurance, but it was the service that really made me a

banking organizations, b of a, jp morgan chase, citigroup, wells fargo, goldman sachs and stanley, now are actually larger as a result of mergers and the elimination of other institutions, than they were even in 2007, just before the height of the crisis. that apparently, they were 58% of g.d.p. in 2007, something like 68% of g.d.p. in 2009, which had gone up from 17% of g.d.p. in 1995, so there's been a consolidation and a growth, and i guess, my question to you, would be, given their increasing size, do you really believe that these institutions wouldn't be allowed -- would or would not be allowed to fail by the fed if they got into financial trouble today? i mean, i hope it doesn't happen, but let's just say for the sake of argument, that a diminution in some other asset class results in serious stress to both the balance sheet and the liquidity needs of these institutions. are we really in any better shape today to avoid the bailouts that have been so criticized in the last few years? >> the federal reserve was created, but we were always well within the law and we always did -- on