surrender continues with bear bankers deal so these are the two hedge fund managers from bear stearns where this is the beginning of the global financial collapse this was the first signal that all was not right and this is ralph she offered and matthew ten mean and take a look back at two thousand and eight when they were arrested frogmarched out from bear stearns and here's some of the footage from that time a white collar crime case in new york that may have national implications prosecutors say these two former bear stearns executives told investors their billion dollar hedge funds were doing well encouraging others to put their. in the portfolios saying they would be profitable long term investment but meanwhile the government alleges route and matthew to mean both knew the funds were failing ok but as the subprime mortgage market collapsed pulling their own personal money out while telling others to stay vested so apparently now at the last minute the f.c.c. has settled a civil suit against ralph cioffi and matthew tanny of the now defunct bear stearns as you see they knowingly

stearns?we get along okay, but, you know, you talk about -- you talk about the wires lighting up. my website degette.com had eight times more hits than we have had on anything else yesterday. people are mad. and the reason they're mad is because people support breast cancer research and people support planned parenthood, which was getting all of this money from the komen foundation to do breast cancer screening. and so -- and people just can't believe it. they feel really feel betrayed and i'm hearing that outrage from everybody including my own daughters. >> is it striking to you, though, after this year of just decimating attacks on planned parenthood, not only in state legislatures, but in congress, it becoming a real priority for congress? they were going to -- republicans in the house were going to shut down the federal government over their efforts to defund planned parenthood, after all of these attacks, this seems to be the one that is really grabbed everybody's attention? >> i got to

at 7:00 eastern former ceo of bear stearns, alan schwartz. then rep jeb hensarling and then martin heldstein. stay with us. "squawk box" will be right back. [ female announcer ] goodnight gluttony, a farewell long awaited. goodnight, stuffy. goodnight, outdated. goodnight old luxury and all of your wares. goodnight bygones everywhere. [ engine turns over ] good morning, illumination. good morning, innovation. good morning unequaled inspiration. [ male announcer ] the audi a8, chosen by car & driver as the best luxury sedan in a recent comparison test. >>> welcome back, everybody. as you can see, the dow futures are indicated higher, up by almost 15 points. after the dow finally pushed above 13,000 yesterday, closing at 13,005. it's a target the bulls had been running at for the last week or so. in the headlines, microsoft will unveil a test version of windows 8 today. it's the first microsoft operating system compatible with low-power microprocessors designed by amd holdings. >>> still to come, guest host allen schwartz, the former bear stear

i think they were referring to that letter that chairman stearns had sent. but my opinion is that was six months ago. i've seen no activity in my subcommittee. i don't think there really is an investigation. i think there was a request for documents which was satisfied. we've gone on down the road now. >> now, the white house with regard to the health care law and the contraception rules, the white house has -- do you support the white house's position on perhaps extending the waiver for religious organizations? >> you know, i think that we should have science-based policies as we implement the affordable health care act. the national institutes of health found that birth control and pregnancy prevention, family planning were a core part of women's health care services. and so in these insurance exchanges that was part of what had to be offered in an insurance policies to american women. just as there are in 28 states, the department of hhs, secretary sebelius said we will give a narrow religious exemption for, say, a church that might be opposed to providin

i met john lee hooker because of marcie stearns. i saw the connection. i understood more about the impact of african civilization on world soul of the position -- world civilization. >> what were you playing at the time, what inspired you? >> a great man that has been in it forgot about in our history. james reese. he was in alabama. he was a pianist, composer. at that time, everything was segregated. he formed the first black union. clefwas the 1950's, the club. he had seven orchestras. one time, they played in carnegie hall. this was before jazz. that did not come until 1915. before that, it was just african music. in addition to that, and joined the u.s. army, became a lieutenant, got some more musicians, went to france, and the french had never heard this music before. during the war, the french soldiers and american soldiers were together. james reese europe played in 20 cities in europe. he said, we have a culture, african people. >> could you play a little? ♪ ♪ >>, want to get to you moving to africa. but before that, langston hughes, talk about m

morgan and the into gesturing they're getting from bear stearns you know jamie dimon told us two years ago the bear stearns would not be material to their results but it's going to be very material because investors of lost more than half their money on the securities that they created so there's still stuff to fall out in this whole mess we kind of know what the numbers are now max i don't think there's anything particularly new in terms of their exposures but the thing is risks that we haven't talked about like eric schneiderman deciding that these people owe him you know billions and billions of dollars for the taxes that's a new factor that nobody is thinking about now i we got a one minute left i just want to comment on something that's a bit on the technical side but i think it's very interesting while ben bernanke is talking about the need for lower rates as a stimulus you have been quoted yeah i've heard you talk about this then there's a need for interbank lending just be stimulated by raising rates completely against what you hear the mainstream got we'll have about a minute

america were according to you know surveys by big business magazine were lehman brothers and bear stearns and within and less than two years both of them were you know had crashed and burned amazing michael and mike in the in the half a minute or so we have left what's the biggest lesson that you got out of all this all this research i think the biggest lesson is that we need to have you know everybody talks about having companies that have open door policy as in people you know and they encourage whistleblowers and then encourage information flow but the truth is in reality. human relations people don't want to hear bad news that they don't want people to muck up the works but we need to have a real protections for whistleblowers and right now we don't know within corporations and certainly not within within the federal government like codes and thanks so much for being with us tonight. great thanks for having me on and if you want to see this come again or for more conversations the great minds go to conversations of great minds dot com after the break from the right to work for lust to

if sooeone gave us the books of lehmannbrothers or bear stearns, then, i think, knowing what we knowwe could very well have realized something was wrong". "aig, i mean, they had a lot of credit default swaps. they were leveraging a lot too."(nats)to get that first job-- more than perhaps ever before-- they need this class. "it will definiiely make me more &pmarketable.""it's definitely growth area, so i think it's something good to know.""even through the crisis when head couut has been decrrasing, risk management head count is increasing. their nnmbers are larger than they have ever been before. the numbers shock me and i've been in thiss business for a couple of decades."they aren't all out to stave off the next financial crisis.(reporter): "don't these kids just wanna make money?""isn't that hy everyone's in new york? no. i think most of these kids are 22, 23. they're thinking about getting a job, paying back students loans."with starring salaries of around 150 grand for somm-- that shouldn't be a problem. (nats: "if those assists decrease by just 25 percent, and remain on our boo

florida republican congressman's cliff stearns.arenthood uses public money to fund abortions for that purpose. komen pulled its funds. you nour seeing exactly how dangerous the gop war on women is. politics is now putting people's lives at risk. in the last year, we've seen an unprecedented attack on women's reproductive rights. and reproductive health. republican controlled house passed tlus allow hospitals to turn away women seeking abortions even if life-threatening situations. passed laws to redefine rape to limit abortion funding. and passed laws to block federal funding to planned parenthood. that battle over planned parenthood funding inspired one of the most passionate and emotional moments when congresswoman jackie spear took to the floor. >> that procedure that you just talk about was a procedure that i endured. i lost a baby. but for you to stand on this floor and to suggest, as you have, that somehow this is a procedure that is either welcomed or done cavalierly or done without any thought is preposterous. there is a ve

senators kerry and mccain in the senate, representative cliff stearns in the house last year introduced comprehensive legislation designed to prescribe standards for the collection, storage, use, retention and dissemination of users' personally identifiable information. and these bills generated debate more generally in the halls of congress. this subcommittee also held hearings to address the security of sensitive health records and personal privacy on mobile devices. and last week, in deciding whether gps tracking violates a criminal defendant's fourth amendment right against unreasonable search and seizure, a majority of the justices of the supreme court acknowledged the challenges we confront as a society in determining the so-called new normal for privacy expectations in the digital age. against this backdrop, i'll direct the remainder of my comments to hr-2471 which passed the house under suspension of the rules. while i may not always avail myself of all the new technology and revolutionary tools and services available over the internet, let me say at the outset that i applaud th

. >> tom: two former bear stearns hedge fund managers who were among the first to fall when the housing collapse began have settled civil fraud charges against them. the deal between the s.e.c. and ralph cioffi and matth tannin came the same day a trial was to begin. combined, the men will pay $1 million in fines. cioffi will be barred from the securities industry for three years, tannin for two. neither admit guilt. both were acquitted in 2009 of criminal charges that they misled investors. >> susie: the recent uptick in >> susie: the recent uptick in job creation is welcome news, but tonight's commentator says problems in the labor market still run deep. he's glen hubbard, dean of columbia university's graduate school of business. >> the employment situation for january set forth many high fives in washington, but there's a problem with america's job machine. instead of momentum, at the pace of job growth over the past two years, it will take us two more years just to get back to the number of jobs we had in december 2007. but, of course, we have more people now who could be looking f

zoned off and if you did get into it, you would be >> we're joined on the telephone by chairman cliff stearns, chairman of the commerce, trade and consumer protection panel of the united states house of representatives. i would welcome the chairman by notifying him we are here on the set and stuart pratt is with us. he is the president and c.e.o. of consumer data industry association. can you give me some idea, can you volumize how much data is in your association, by the way, stuart? we represent a lot of different models, consumer credit associations --. >> how many --. >> they have probably 250 million credit reports and we're updating four billion data elements a month. >> that's a sizable amount, is it not, evan hendricks who is editor and publisher of "privacy times". by the way he has written this great book, a great read --. >> named book of the month. >> credit scores and credit reports, how the system work and what you can do. do you want to comment about anything he has said? >> information about social security very valuable. one of the tough things about sit that we don't own dat

his marriage to marian lloyd stearns, the daughter of the president of the university of colorado in june of 1946, meant that all his extended family were within a 50-mile radius of denver. as were a wealth of friend and a favorite past times of his youth, especially fly fishing and hiking in the foothills. for more than a decade, white enjoyed a widely varied legal practice, ranging from real estate to corporate work, antitrust an labor law and on to tax and litigation, including complex antitrust cases and simple one-day trials. his name rarely appeared in the public print, although he devoted an's nor muss amou enor time to a wide variety of activities. a registered democrat, he declined constant invitations to stand for public office and confined his political work to the grassroots level. he once confided to a friend that he thought he could get elected to office -- once. too committed to his convictions, often too stubborn to compromise, and too disinclined to accommodate the press, he knew he was better playersed behind the scenes than capitalizing on his early fame and public

first by bailing out bear stearns in the first place. biggest mistake. what they should have done is let the market work. once they started picking winners and losers, does this sound familiar? once they started picking winners and losers, then the market decided, well, we can just wait since the government's going to be involved. we'll just wait for them to do it. that led to a path of wall street bailouts and auto bailouts. where if we had just stayed out of it completely and let the market work, i believe the market would have worked. would the auto industry look different than it does today? yes, it would be. would it still be alive and well? i think it would be alive and -- and equally as well if not better. why? because markets would have -- the markets would have had to e react and do what was necessary to structure it to be competitive. look, the facilities that are creating huge profits right now are there and would be there. problem wasn't the facilities or the workers. it was the obligations that these legacy companies had that they couldn't -

to prefund european banks ahead of the greek default with enough cash to withstand europe's bear stearns right and it keeps them in the defensive mode in terms of deflation because greece is imploding this is going to be perceived as deflationary and therefore they need. to keep interest rates near that zero percent meanwhile the fact that they are essentially siphoning off the income from greece and these other countries through the backdoor through the off balance sheet to pay continually to pay the huge banker bonuses that's not really talked about because they go with that headline crisis greek collapse is deflationary oh by the way we ended up with all the s.s. and interest rates have to remain at zero percent if in fact the market was allowed to function without this interference you'd find interest rates starting to rise and you'd see some losers in the banking sector and you'd start to see capitalism return to the fore but right now you don't have capitalism you have what's called some some call corporatism but i think we're going to talk about that the second half or you could c

>> never mind replacing congressman stearns who launched this in the fall?t about replacing the leadership of komen? lots of democrats who wear the pink ribbons and on and on. does something needing to be done with their leadership? >> that will be up to komen supporters. it's amazing to see the out pouring of support for planned parent parenthood people know how to show their ad voc casey with tweets and dollars. we will see more of that. they will make their decisions based upon their base. >> thank you. we appreciate your time. >> thank you for having me. >> you are welcome. coming up a closer look at the activism arising in sxwavps, india, the kickoff for occupy the super bowl happened today. up next a brothel in nevada tried to give donations to the ron paul planned parenthood. anna talked to a conservative and it got a little contentious. drama, when we return. >> in a part of nevada when are prostitution is legal, the ladies at a brothel have endorsed ron paul. they say dr. paul has some special skills. and in indianapolis where the patriots are favor

huge collapse in two thousand and eight so that was a bit of a bank holiday for lehmann and bear stearns and and there was a credit seizure in these global markets it wasn't an official bank holiday but the global credit froze right now well but that's that's different right that's basically you have a credit crunch is it going to happen again i actually don't think so because i think that these particular dogs have learned their lesson ben bernanke druggy respectively the head of the federal reserve and the e.c.b. the european central bank what they're going to do is they're going to put out as much liquidity as possible to prevent any kind of two thousand and eight liquidity crunch because that was the last quite a crisis that they know for instance at this point in time they are not afraid of inflation because they think oh inflation is so seventies we're over that so we have to worry about inflation we have to worry about liquidity crisis and so the next time we have a liquidity crisis we're going to have so much cash sloshing in the system that there is not going to be a two thousan