happened in the 20 years since the savings and most prices so there are same solutions that we use in the rtcys that we can use today because of banking regulation and because of accounting changes. the big banking has been relatively active we have seen certainly a significant increase was star tube as a strategy of the fdic going forward? i think is one of more of the three arch strategy than anything else. if you look at the institutions and financial institutions out there there are close to 2000 who have significant that breed of trouble clearly the fdic doesn't have the money the resources nor the political clout to take over the financial institutions with that. there's probably 600 or so will need to be taken over in short order and is probably what they are trying to do and letting the other ones mentioned them to be more than and adequately capitalized and hopefully at some point in the next five years get back to being more been well- capitalized or maybe get some consolidation. consolidation is being sold in today's market because the private equity firms that want to come to mark

that certainly happened in the early 1990's when you had the rtc, if you remember that, liquidating thrifts and selling them pretty cheap. and some people made enormous amounts of money buying things cheap. so you got to worry about that financially but also politically. on the other hand, if there are few buyers, the prices are going to be cheap. if there are lots of buyers dying to buy, the prices wouldn't be so cheap. that's the nature of a market, and this is a sort of specialized market in taking over the ongoing assets of failed financial institutions. >> jeff: we'll have to see how the reaction of the private equity community to this latest change in decision by the fdic. alex, appreciate you coming on the program. >> thanks, great to be with you. >> jeff: our guest alex paul awk of the enterprise >> paul: the nation is mourning the passing of one of the most influential senators in our history. representing massachusetts for close to half a century, ted kennedy helped re-write the nation's laws on bankruptcy, immigration, and education. but as darren gersh reports, kennedy's passion

that certainly happened in the early 1990's when youhad the rtc, ifyou remember that liquidating thrifts and selling them prty cheap. and some people made enormous amounts of money buying tngs eap. so you g to woy about that financiay but also politilly. on the other han if the are few buyers, the pres are gng to bcheap. ifthere are lots of buyers dying to buy, th prices wouldn't be so cheap. that's the nature of a market, and this is aort of specialized market in taking er the ongoing assets of iled financial institutions. >> jeff: we'll ha to see how the reaction of the private equity mmunity to this test change in decisio by the fdi al, appreciate you comg on the progra >> thanks, great to be wh you. >> jeff: our guest alex paul awkof the enterprise >> paul: the nation is mourng the passing of one of thmost influential senators in r history. reesenting massachusetts for close half a century, ted kennedy help re-write the nation's laws bankruptcy, immigrion, and education. but as darren gersreports, kennedy's passion and most likely legacy ll be health care reform. >> reporter: for mil

that certainly happened in the early 90's when you ha the rtc, if yo remember that, quidating thrifts and selling them pretty cheap. and se people me enormous amnts of money buying thing chea so you got to worry abouthat financially t also politicall on the other hand,f there are few buyers, the pricesre going to be chp. if the are lots of buyers dying to buy, the prices wodn't be so cheap. that's the nature of a mket, d this is a sor of spialized market in taking over the ongoing assets of fail financial institutions. >> jeff: we'll have to see how the reaction ofhe private equity commity to this late change in decisn by the fc. ex, appreciate you cing on the progm. >> thanks, gre to beith you. >> jeff: our gue alex paul awk of the enterprise >> paul: the nation is mouing the passing of one of e most influential senators iour history. presenting massachusetts for closto half a century, ted kennedy heed re-write the nation's lawon bankruptcy, immiation, and education. but as darren geh reports, kennedy's passion and most likely legacwill be health care reform. >> reporter: for million

you go back to rtc days in the early '90s, those banks forced to divest assets lost a lot of money while in reserves, have enough in capital and can work out these loans on their own. we don't need the government intervening, let the banks work out the loans as they normally would do and there will not be a problem. >> let me talk about the markets in the couple of minutes we have remaining. jack, there is a lot of talk about the market, i won't get into the technical jargon, a lot signalling we have a correction coming. be that as it may we had a pretty good bounce. what do you make of. >> it the bounce is coming on when you have expiration, august expiration, usually highs take place in august. something happening we have to be aware of, you take that august or october '07 high and march '09 row, you have a perfect retrace. if you look at that type of technical work. that takes you to 1015 in the s&p where we stopped. it coincides where we were right before election day. for me, the market will vote from here on out. let's see if there a's any poli that comes out that acts as a headwin

in the rtc days, we were smart enough to know the s and l executives could get us out of this and they hired a lot of these guys because now the treasury, for example, has been reluctant to hire investment bankers. i think the moralness is getting in our way. >> i agree that the moral issues are getting in our way. we need the best to get us out of the situation that we're in. you have to pay up for talent. that's exactly what needs to be done here. going forward, the negotiations will be stricter and to take contracts and to basically breech them for because the economy has changed is not appropriate. >> thank you very much for your time and thoughts on this. >> my pleasure. >> interesting conversation. a crook and phi landerer as well. a woman claims she had an affair with madoff for years. mary thompson joins us with more about the mastermind and his mistress. >> you know her. >> the mastermind and his mistress. >> she saw the ponzi master up close. details in her book. madoff other secrets. money and me. pending the book's release on august 25th. we did speak with her back in march

training to be military officers and many have become military officers and a pass after the war the rtc we know today really traces its roots back to this massive movement. >> so was there and grassroots movement to get into the war? was of the war popular before the americans got into a? >> the were was popular with some people but i think one of the things most people forget about world war i was it was very divisive both entering the war and then how to fight the war after it started. lot of that division has been from dawn in the years since then the. >> where does your book, "uncle sam wants you", come from? >> the book and to the senate found it puzzling group of people so in a footnote of another book i found a reference to what were called slacker rains in this locker was a bustling term in world war i for draft dodgers. slacker raids were carried out by a group of volunteers, mostly middle-aged men of overdraft aid to ago a man in cities and small towns and try to tie down the draft dodgers in the committees. i thought this is just unusual. people volunteering to enforce the dr

i personally prefer is for the assets to accumulate in the fdic, to resurrect what's called the old rtcwith fico bonds. this is what we did in the '80s when the s&l crisis occurred. the fdic had to accumulate billions of assets of bad loans. they simply held those in the resolution trust corporation and financed it with four-year fico bonds and the banks paid off those bonds. in fact, we're still paying off those bonds on a long-term amortization basis. so there are multiple ways chairman baer can approach this and none will affect the taxpayer. >> are you coming back? >> i'm talking to your producer. i miss seeing you guys. i hope to. >> i want you, too, because i want to talk about your chairman, objectivism, see these articles? he's a told randian fanatic. you're not quite as far down that road as the founder, right? >> no, i'm not nearly as far down that road. >> but the bank has done well on some of those principles, right in. >> if i get a chance to come on set, this would be a terrific discussion. >> i want to have it, i want to have it for two hours. >> what my chairman and i ag