sheila baer's job was to deal with banks. neil's job was to be a watchdog over t.a.r.p. he wrote a book called "bailout." investigating wa investigating. to say things are just as bad now as they were then is just wrong. >> if you're an executive looking at losing your job and your bonuses, certainly when they were how they were in 2010 as they were in 2008. if you're someone who is now enjoying their 99th week of unemployment, you may differ with the fact that you're necessarily better off. certainly overall, we have a much more stable economy and things are hopefully on the upswing, but there is a lot of people who are unnecessarily left behind. >> sheila, your new book is called "bull by the horns. fighting to save main street from wall street and wall street from itself." the title of your two books have a similar theme to them. both of you think chicago and washington haven't done enough in four years ago. what do we have to do to ensure there's not this fight between main street and wall street. >> i think wall street has to be different than -- if you view what's

tracy: if you could have interviewed sheila baer, what would have asked her?ggest issue for me as a lot of those policies did not factor in. the big difference between large banks and community-based institutions really supports the basic dream, job, mortgage, auto and education. without those things is hard to see how they move forward economically. tracy: i think that was missed, so many small banks were not even involved in the subprime crisis at all. >> largely did not participate. higher yield rates, etc. the crisis much worse off all the large banks are up in sf 20% have grown larger, small banks are failing in the hundreds. in the process killing the american dream and job creators. tracy: so are you seeing any improvement whatsoever? speak out were starting to see small business lending improve. the real problem, the simple formula for consumer ready economy, consumer base, the job creators in the last 17 years or small business 65% of the jobs and people who lend them are the community-based institutions 60% of those loans. it seems counterintuitive y

. >>> we have sheila baer and jim o'neill in the next hour, you don't want to miss it. >>> the marketsn the move. we have the smart analysis keeping you ahead of your investments. >>> it's a crucial week for europe. jim o'neill breaks down the steps for the next erou zone austerity measures. >>> sheila bair's plan to protect the world financial system. the second hour of "squawk" starts right now. ♪ good morning and welcome to "squawk box" here on cnbc. i'm andrew ross sorkin along with joe kernen. becky is out this morning, joe, but it has nothing to do with -- >> really? when people say did you bring us anything back from your vacation. >> i have a cold. >> they don't expect you to bring tapeworm. or malaria or elephant -- why is she not here today? you were sick immediately when you got back from rwanda. >> food poisoning, unrelated. unrelated. >> i'm enjoying the banter and the back and forth. >> you're leaning back like this with andrew talking. >> that's true. >> look at futures as we speak. >> look at the camera guys wearing masks. >> like michael jackson. dow jones looks like i

sheila baer obviously arguing was that right or wrong? bank of america huge part of the market. jp morgan huge part of the market. they can split this country. remember britain four banks maybe spain two banks. consolidate. take the bad loans. many people feel this is too far to the left. i like his view on too much austerity. there is hope that spain only needs a couple banks to make it. >> housing has yet to bottom in spain which is an important one. one of the proposals roy has is actually eliminating a tax break for buying a new home which does seem to go against what you might anticipate given they're still trying to, they had a housing bubble like we did but are not on the other side of it yet. >> timothy geithner, i don't know if anybody remembers, the vociferous nature with which he said if you questioned his stress test, listen, this is 1932 numbers. you don't know anything about what we're doing. yeah. turned out he was completely right. >> we got the expletive. >> this is a family oriented show because the kids are all home watching us instead of going to show. >> all