get 3 years interest-free financing on beautyrest black, stearns & foster, serta icomfort, even tempur-pedicplus, get free delivery and sleep train's 100-day low price guarantee. you'll never find an interest rate lower than sleep train's interest-free for 3 event, on now! superior service, best selection, lowest price, guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪ >>> our third story outfront, a con crime spree. today police are investigating another jewelry store heist. not the one of about $140 million earlier this week just basically across the street just three days after one of the biggest of all time. this is better than a movie. seriously. what is happening? >> reporter: this is unbelievable. the resort town has been riddled with high end robberies. the latest was at a fancy watch store where two robbers came in, one with a grenade and the other with a gun. they made out with about 40 watches. the same place was robbed earlier this year and 150 watches taken valued at $1.3 million. the other robbery just a few days back, the carlton hotel had an exhibit of jewel

the global financial markets was in large part due to derivatives trading and later took out bear stearns and lehman brothers in 2008. bottom line is, derivatives do have a place in financial markets, but not with banks, because the banks are gambling with insured savings deposits. in other words, you, the taxpayer, are backing up all these financial derivatives so the banks can basically crap shoot." how does that happen exacly? what do banks buy and trade? "the ones they like especially are interest rate contracts, and they also trade a lot in global currencies. they trade a lot in gold, precious metals... these are the markets they like to speculate in. but the key thing is here they're not playing with the house money, they're playing with insured customer deposits, which are insured by the federal government. you have to separate those two areas." thanks for your insights, juli. "you bet." the u.s. airways and american airlines merger is almost ready to fly. shareholders approved the $11 billion merger, which is one of the final steps in closing the deal to create the world's biggest

financial markets as we as we knew them at that time and we lost a couple of banks lehman brothers bear stearns it was the worst financial crisis in decades credit and it's all tied to principle a the unwinding for the meltdown in the securitized real estate market so now what you're describing to me now is pretty much what everyone feared would happen because the response of two thousand and eight from bernanke in his predecessor was to simply reinflate the real estate bubble to unsustainable levels so is it fair to say that route of point now where the bubble has been reinflated and now this new real estate bubble is bursting wealth even the fed is worried about that and the fed has actually pinpointed reads as one of the major reasons for jailing the purchases because the. we're getting out of hand these streets are very large they have grown at enormous rates and even though they're not as large as citibank or bank of america they can still do severe damage to the financial system if they if they blow up and so yes there really is a bubble that has recently been cost is something that the f

the problem for all of these things is that these allegations just like bear stearns just like lehman brothers they're making bad bets and stealing customer accounts apparently to do them i don't know if the allegations are true they appear to be but it takes a lot of time to unwind the transaction find out who the guilty party is the real concern that i have is not punishing cords and he should be punished and obviously everyone who did it should go to jail my concern is this is going to happen again and again and again it's going to happen every five years just as it happened every five years in the past unless we get that volcker rule under the dodd frank bill that i've been advocating before on your show that's great let's talk about the volcker rule what about it ok i happen to agree that if you. we're going to have a federally subsidized banking industry the way we have with the banks ok there's should be limitations on that i don't think we should have been the first place but tell me what's your view on the volcker rule we need the poker role basically local rules and it's not

morgan so they got rid of bear stearns they got rid of lehman brothers and then they absorbed walk over here they were they have the big too big to fail banks got even bigger and that's one of the that's one of the points that that whole financial engineering collapse occurred in two thousand and eight so now we're describing there's morgan stanley goldman and jamie diamond j.p. morgan have a oligarch position they collude means they are engaged in open price fixing there's no competition there's no way to someone to come in there and so you know what we're going to offer a cheaper service and do this to competitively because they'll be forced out of the market because deregulation regulators are in the pockets of the bankers well you know that is the. it's going on against for the story from former goldman sachs about the subprime mortgages that were dumped into collateralized debt obligations and sold to passive pension funds around the world and we know that goldman sachs and their preferred clients were able to profit knowing that these things would blow up knowing that greece would

the problem of all of these things is that these allegations just like bear stearns just like lehman brothers they're making bad bets and stealing customer accounts apparently to do them i don't know if the allegations are true they appear to be but it takes a lot of time to unwind the transaction find out who the guilty party is the real concern that i have is not punishing courts and he should be punished and obviously everyone who did it should go to jail my concern is this is going to happen again and again and again it's going to happen every five years just as it happened every five years in the. unless we get that vocal rule out of the dodd frank bill that i've been advocating before on your show that's great let's talk about the volcker rule what about it ok i happen to agree that if you're going to have a federally subsidized banking industry the way we have with the banks ok there's should be limitations on that i don't think we should have been the first place but tell me what's your view on the volcker rule we need the poker world basically local rules and it's not becaus

get 3 years interest-free financing on beautyrest black, stearns & foster, serta icomfort, even tempur-pedicget free delivery and sleep train's 100-day low price guarantee. you'll never find an interest rate lower than sleep train's interest-free for 3 event, on now! superior service, best selection, lowest price, guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪ >> we return, for the post game report, hey, andy. >> hey, that clown posse you had on, kind of insane? >> i think they are. >> is that why they're called insane? >> i think their earlier motto was mildly amusing, but you realize, no, they're insane. >> and one of the brothers is jermane clown posse. >> very nice, that was an impressive segment. >> thank you, andy. >> yeah, you're welcome. government nudged squad, i also think it should be nudged, it sounds less threatening and i think that is what the obama administration should have gone with. >> i think the problem is, people spell it like nudge, and it should be noodge. >> so there could be no mistaking it. >> i could really go for a noodge browny. >> or i love

get 3 years interest-free financing on beautyrest black, stearns & foster, serta icomfort, even tempur-pedicet free delivery and sleep train's 100-day low price guarantee. you'll never find an interest rate lower than sleep train's interest-free for 3 event, on now! superior service, best selection, lowest price, guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪ donuts?ts ♪ ♪ donuts?ts you're cute. [ door closes ]s [ female announcer ]er new special k protein cereal helps keep you fuller longer.r willpower.we what will you gainga when you lose? how ya doin'?n' mmm. [ birds chirpingpi ] okay bye bye!ye [ female announcer ] ] help satisfy your hunger lonr with special k k protein bars and shakes.e willpower. what will you gain when you los le? >> good morning the time is 6:41 a.m. the beard has gone blue. the dodgers have signed free agent reliever brian wilson to one-year contract. >> wilson has not pitched in the major leagues since april 2012, the same month he underwent tommy john surgery on his right elbow. wilson was one of the majors top relievers from 2000 and 8-11 wi

. >> guys, if you think about it, bear stearns, lehman brothers, citigroup, merrill lynch, not a singlewas charged at any of those firms for financially-related crimes. what it comes down to, the fabulous fab tourre? why do we call him fabulous? it was in an e-mail. >> whole build something about to collapse anytime now. only potential survivor, the fabulous fab. >> what is he talking about? a synthetic cdo. a product made up of mortgage back the securities or sin threat dick mortgage-backed securities. we don't have to get into all that. he sold that to investors. aba capital, a bond insurance company that bought this pile of junk that he calls a pile of junk. the sec is essentially charging him with putting together and selling something that know was fraudulent. that he knew was going to blow up that is what it comes to today. i would point out, there is a jury selection this is a civil trial. what is interesting about a civil trial, the sec has a lower burden of proof. it is a preponderance of evidence. not the sort of high, intent, what is the word for out? dennis: beyond all reaso

morgan hasn't absorbed bear stearns. cost -- how much bigger a target then? >> it would be billions of dollars t. point is, we have already done that. why would you want to recreate the very companies that caused the crisis and had to be bailed out? it makes no sense. >> the other thing is i mean now this is pretty funny, i'm looking at a quote from my colleague, my illustrious co-anchor. i may use this from dealbook from andrew. he said, here's the key, they wouldn't have prevented the lost financial crisis. it would not have prevented j. pm morgan's 2 billion plus in trading. what will she tell us the rationale is? i guess it's a knee-jerk response? she may cancel after all this? >> just ask her those questions. i can't imagine what the answer would be. >> in fact, andrew, asked ms. warren about whether she thought the financial crisis or j.p. morgan's losses could have been avoided if glass stealing were in place. she told andrew the answer is probably no to both. >> exactly. >> that's by czar. some people like public

ashley: gary stearn, former president of the federal reserve bank of minneapolis. mr. has other issues he could discuss as well. thank you so much for being here, gary. you had a very unique perspective on all of this. i'm sure you wonder what is going on in there as well. has ben bernanke, before we get, to, you know, can they get out of it gracefully has mr. bernanke done everything he could and do you generally agree with everything he has done? >> i think the fed has againly been heroic throughout this because the economy and markets faced major challenges and i think the fed has done a lot to try to alleviate that. hopefully they have been wise as well. these are uncharted waters in many ways, not the kind of thing that central banks typically faced. so i think we have to still keep our fingers crossed a bit and hope that, what we experienced going forward turns out to be positive. i'm reasonably confident but, the jury is still out as they say. liz: from your experience, having been behind closed doors, with the federal reserve of your era, making those decisions

get 3 years interest-free financing on beautyrest black, stearns & foster, serta icomfort, even tempur-pedicsleep train's 100-day low price guarantee. you'll never find an interest rate lower than sleep train's interest-free for 3 event, on now! superior service, best selection, lowest price, guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪ and >>darya: new this morning. we have learned of an attack on the it happened just after 8:30 last night. the victim was walking with a group of people between coho the science building and martin luther king library when he got into an argument with another male. thispolice say that's they struggled in the grass and at some point the victim had concrete numerous times, causing "multiple injuries to the victim's face." an alert was sent out to the campus after the incident alerted students and faculty of the attack. following a developing story out of san francisco where police are investigating a double stabbing. it happened on staynan and haight streets. that's near golden gate park. kron four's mike pelton is live at the scene with

get 3 years interest-free financing on beautyrest black, stearns & foster, serta icomfort, even tempur-pedic, get free delivery and sleep train's 100-day low price guarantee. you'll never find an interest rate lower than sleep train's interest-free for 3 event, on now! superior service, best selection, lowest price, guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪ >>> i take responsibility for all my actions. and the ones that i feel that have any way undermined the trust of virginians, i take personal responsibility and i'm deeply sorry for things i have done or choices that, perhaps, members of my family have made that have hurt that trust. >> i take responsibility for all of my actions. and the ones that i feel that in any way undermine the trust of people of virginia i take personal responsibility. and i'm deeply sorry for things that i have done or choices that perhaps members of my family have made that have hurt that trust. >> virginia governor, bob mcdonnell, who has been under fire for perks that he took from a virginia businessman announced today that he is givin

we had the old bear stearns, wamu. our systems weren't great. a new management team in place.e end of the day, we'll have a great management business. >> it's true. as strong as the quarter was it was wells fargo that delivered the real shocker to wall street. going into this quarter, there were plenty of fears. or that wells didn't make as much money from its net interest margin or its expenses would stay heavy, stay out of control. no, no, no. john stump, ceo and company, blew away the numbers and every one of those lines and delivered acceleration in loan growth along with a terrific increase in return on equity. return on equity is amazing. perhaps most amazing, wells had a bullish quarter when it comes to charge-offs. the lowest level since the start of the financial crisis. i know stump. what i think the man prides himself on is how many people had their mortgages adjusted, fixed, lowered, you know, worked out so they could stay in their homes. so that when things got better, and their loans would go current, well, let's just say they would stay lifetime customers of wel

management, at risk management and doing things like getting the government to pay him to take on bear stearnse is i'm mine to any risk. the man is brilliant. if he doesn't say there he will go somewhere else and be more powerful. melissa:o jonathan, what do you think about that especially brilliant, leak on the side if you don't want me to be chairman i don't need to b be ceo. i will go away and do something else. i don't need the money. all of sudden everybody found religion thought it was a bad idea to screw around with this. you buy, sell or hold jamie dimon? >> buy. they would be crazy to let him two. he is a target. successful businessman and financeer, a target for everyone from government to newspaper headline writers. hillary once again hits the nail on the head. a terrific ceo and done terrific forgr jpmorgan. wouldn't bet against the strock. as interest rates go up, interest margin for banks go up as well. it's a strong buy right here. on jamie a dimon?uy, sell, hold >> agree with hillary and john. 2008 crisis we're years away but how quickly we forget. the 2008 crisis was horrific.

they couldn't nail the guys the reagan lehman brothers or bear stearns.hey didn't get madoff. >> he turned himself and. dennis: exactly. >> of a sudden there's a public outcry. it is a very sexy case sitting there. they did have compelling evidence. on one hand it is political in the sense that they're playing this up and on the other hand they have real cases. if you believe insider trading is a crime you have to believe this is a good case. we should point out is is not done anything wrong. dennis: we appreciate. get blood on the buck. coming up at 8:00 p.m. eastern right here on fox business, charles will demystify the stock market. he will help you should your fears because a lot of fears about stopping people from getting into this market and making some money to prepare for a more prosperous future. the can't miss special major market. that guy is good. time now for of looked at stories you're clicking on tonight on foxbusiness.com. disappointing results from home builders could not keep the market from ending in the green today. the nasdaq and the

bear stearns was sold to j.p. morgan for pennies on the dollar. allowed to go belly up, and aig, considered too big to let fail, is on life support, thanks to a $123 billion investment by u.s. taxpayers. >> it's legalized gambling. >> it's legalized gambling. it was illegal gambling. and we made it legal gambling. >> with no regulatory controls. >> with absolutely no regulatory controls. zero, as far as i can tell. >> i mean, it sounds a little like a bookie operation. >> yes, and it used to be illegal. it was very illegal 100 years ago. >> in the early part of the 20th century, the streets of new york and other large cities were lined with gaming establishments called bucket shops, where people could place wagers on whether the price of stocks would go up or down without actually buying them. this unfettered speculation contributed to the panic and stock market crash of 1907, and state laws all over the country were enacted to ban them. >> big headlines, huge type. this is the front page of the new york times. >> "no bucket shops for new law to h

get 3 years interest-free financing on beautyrest black, stearns & foster, serta icomfort, even tempur-pedicelivery and sleep train's 100-day low price guarantee. you'll never find an interest rate lower than sleep train's interest-free for 3 event, on now! superior service, best selection, lowest price, guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪ >>> let me know when you get it. once you light them all up. >> 260. >> come on, fire. >> one of the videos at issue in army private first class and accused him of violating the espionage act and joining me to talk about it, alan, are you surprised bradley manning evaded a conviction for aiding the enemy? >> well, evaded isn't the word i would use. there was no evidence to support conclusion he intended to aid an enemy or hurt the united states. he intended to be a whistle blower. the video you just showed should be seen by every american. it should never have been classified and indeed, under the law, you're showing it tonight on television subjected you to being convicted under the same statutes. broadcasting the material

get 3 years interest-free financing on beautyrest black, stearns & foster, serta icomfort, even tempur-pedicd sleep train's 100-day low price guarantee. you'll never find an interest rate lower than sleep train's interest-free for 3 event, on now! superior service, best selection, lowest price, guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪ >> shepard: the nation's economy performed so much better in the second quarter, thanks to more consumers opening their wallets and more businesses opening their checkbooks. according to the commerce department. the gross domestic product grew nearly 2% in the last quarter. economists had said they expected it to go up less than 1%. g.d.p., of course, is the total value of all the goods and services that a country produces for a specific period of time. it's one of those main indicators that the economists use to determine the health of any country's economy. but today's news did not effect the markets that much. wall street ended the day decidedly mixed. we may soon have to pay more to use our debit cards. that's because today a judg

remember we had the old bear stearns wamu. business. we believe, the way john does, it's an important product. we're going to be really good at production, really good at servicing. we've just got a little more wood to chop. >> it just seems that he wants to make the loan and you don't. >> our shares have gone up, 9% to 11%. i think you'll see our share go up over time. remember, they're the largest. >> how much of your decision to lend/not lend has directly to do with the fact that i don't know if the government wants you to lend or they want you to hoard. >> are you talking about on the balance sheet now? >> yeah. >> commercial loans. yeah. well, look, we have to adjust -- we have a new regulatory environment. so all banks have to adjust to it. and that doesn't mean you have to withhold more for liquidity, more for capital. build up the capital ratios. eventually you'll be back to business as usual. that may take another year or two. and these are global requirements. so we have to meet the requirements, you know, in 60 coun

they took on this energy business through the acquisition of bear stearns in 2008 and added to it ins sempra for $1.7 billion but commodities have been highly volatile, tyler in, recent years and something they have sort of struggled, and now it looks like they will divest themselves with all of the part of the commodities business. >> kate, thanks very much. >>> moving along, it's must-watch cnbc tonight. the premiere of "the profit" tonight at 10:00 eastern time. you do not want to miss it. there is its start, marcus lamonis who will do whatever it takes to fix a failing business. he can smile. he will smile, i promise you. he will. he'll also get his take on the health of the american economy in business right now. "power" will be back in two minutes. the new guy is loaded with protein! i'll believe it when i--- [ both ] oooooh... [ female announcer ] as you get older, protein is an important part of staying active and strong. ensure high protein... fifty percent of your daily value of protein. low fat and five grams of sugars. [ major nutrition ] ensure! nutrition in charge! ♪ [

long-term capital management or like republicans and democrats did in the 2008 financial crisis for bear stearnsank of america and jpmorgan chase and citigroup and marginen stanley and goldman sachs and bank of new york mellon and yeah, over 700 other banks. as wall street offense year steven rattner wrote the residents in motor city are no more responsible for detroit's problems than were the victims of hurricane sandy for theirs. congress right now should convene a special sessioning to address detroit's emergency. and can send emergency aid right now as the city prepares to operate without a solvent government. it can target jobs programs in the city. jobs are supposedly we're told a priority of both parties and it can explore less expensive solutions like envesting in local property which could be sold later or starting a detroit branch of the smithsonian. that's a pretty logical way to avert a cultural disaster. there's talk that bankruptcy could force the city to auction off a billion dollars worth of art collected over 128 years. at the detroit institute of art. the federal government cou

we are bear stearns and wamu, new management team in place and at the end of the day we'll have a great mortgage business. we believe the way john does, a really good product, really good at production and servicing. >> it seems like he wants to make the loan and you don't? >> our share has gone up. we've gone from like 9% to 10% to 11%. i think you'll see our share go up over time. they are the largest. they are close to 30%. >> how much of your decision to lend/not lend has directly to do with the fact that i don't know if the government wants you to lend or they want you to hoard. >> you're talking about on the balance sheets. we have a new regulatory environment so all banks have to adjust to it, and that doesn't mean you need to hold more for liquidity or capital. eventually you'll be back to business as usual. that may take another year or two, and these are global requirements, so the requirements in 60 countries around the world, not just the united states. >> so it eventually means you'll have enough capital or eventually means that you think things are going to soften and the

responsive to it, and to see where the system seems incredibly slanted in a very violent way and stearns out we don't need to look to history. how open all of this stuff about stand your ground, it is their right now in the present moment. how to deal with this as it is happening so blatantly, not even hit in. >> one other way of saying it is to suggest these ideas about violence particularly as it pertains to black men and black people are foundational to american society. we want to talk about saying hello, the issues you're talking about in your specific community and if it is not only when individuals are doing, it certainly helps to say hi and treat each other better but there is a longer a trajectory of dehumanization and society moreover that manifest things like drone violence and manifest in long periods of social isolation for people who are incarcerated and we see in recent events last week. that is a longer problem, not only for black people or black men, it is a problem of american society written large. to think about the little things, things we can do in our communities a

get 3 years interest-free financing on beautyrest black, stearns & foster, serta icomfort, even tempur-pedic. plus, get free delivery and sleep train's 100-day low price guarantee. you'll never find an interest rate lower than sleep train's interest-free for 3 event, on now! superior service, best selection, lowest price, guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪ >>> welcome back. we're closing out what would be a memorable month again, but right now, we're losing altitude here, bob pisani. what's going on? >> look, i think the fed did a perfect job. all they wanted to do was make sure that they didn't change the 10-year yield by saying something that could be misinterpreted. and in that sense, they succeeded, whether you like it or not. i think that's what they wanted to do, and they did it. you couldn't ask for a better month, bill. when you put up the leaders, you get healthcare moving up as much as you have materials and industrials and financials, boy, what more can you ask for? the s&p 500 overall up about 5%. that's broad-market participation. if you look at

. -- the most notable example would be lehman and bear-stearns.ou didn't need a commercial bank to do that. so there's some question as to how much that separation would actually prevent the kinds of problems we saw from developing. and then secondly, there is at least some question as to whether one would lose something, which is the benefits of having large institutions with a capacity to -- doesn't say it had to be as large as some our institutions are are today, but relatively large institutions with the capacity funding of any sort that a client may need from a line of credit at a commercial bank to underwriting a bond to going out with an i.p.o. now, what those benefits are, little hard to pin down. there hasn't been as much research as i would like, but it's arguable. when i put those two things together, efficacy and at least some questions about unintended consequences, my own sense is that i wouldn't have this approach as high on my list. there was a problem with bear. there was a problem with lehman. there was a problem with the civs. i

. >>> yet another lawsuit over the failure of bear stearns.eliable aaa ratings on mortgage securities and helped push those funds under. a little later the firm, itself. this is hardly the first time these rating firms have been in the president islight. is the justice department sued in february. still, it was notable to me, it brings one chapter of the mortgage saga full circle. questionable ratings helped kill bear stearns. the fund ratings managers were killed and acquitted. now the ratings actions that provided the research that led to the investments, et cetera, et cetera, are under fire. it's like the whole things are coming around again, what's interesting, they argue it's their constitutional right under their first amendment to express an opinion. does that make sense to you? >> it makes sense, if they thought aig was going to pay up, they weren't aaa, were they? you had to know they were going to pay up? >> there is nothing proeblt protecting us. not that we need an opinion. to others, they say their opinion is good. i think they we

a difference because the companies that were the problem were freddie mac, fannie mae, aig, bear stearnss, countrywide, and she said it was the big thanks that got the bailout. stuart: i am a conservative kind of guy but in this instance i agree with senator boren even though she is away on the left of the political spectrum. i believe she has teamed up with republican john mccain in the senate to propose this legislation. that is an unlikely duo. >> senator mccain has been supportive of doing this for some time and senator warren said that they are getting calls from democrat and republican offices of other senators who are interested in looking at this bill and possibly supporting it. stuart: anything but dodd-frank. i know you are laughing but do you not agree? appreciate it. let's go to the big board, pretty flat, up 9 points but we are at 15,468 not that far from 16,000. former mcdonald's ceo is here with us. i want to talk first of all about the markets. look at mcdonald's and junk food. and the markets. 16,000, here it comes. >> everyone looking for place to get their money, so ma

did you know that perry capital's founder is actually his uncle is jimmy cane of bear stearns if younow that. i've been slightly out in the clouds anyway this morning, court, because of andy murray's victory at wimbledon. >> oh, yeah. that was very exciting. very exciting. i forgot about that. >> yeah. yes, i know. good stuff. thanks very much, indeed, for that, court. good to see you this morning zblmpk. >>> eliot spitzer wants back in the political game. the former new york governor announced he's running for city comptroller. he has until thursday to get enough signatures to secure a spot on the ballot. spitzer resigned in 2008 after being caught patronizing with prostitutes. he says he'll ask the public for forgiveness but will try to raise the profile of the comptroller's office using its power to audit city agencies. throughout the show we've been asking who in your view made some of the greatest political comebacks. someone tweeted alexander hamilton. keep your responses coming here on "worldwide exchange." tweet @cnbcwex. >>> no competition at the u.s. box office this weekend

two people from bear stearns and somebody from citigroup that the prosecutions did not stick. is this loss bad for the sec's reputation in general? if he just can't get anybody at this point? >> they can get people, and appreciate my experience at sec our motivation -- tracy: you'reyou're right. that would be a slam on you. you got lots of people when you were there. i bet you did. >> bring an action if you feel you have enough evidence and it is in the benefit why the laws were written. you look at likelihood of winning or losing, they tried to settle with him. but that said there is a lot of pressure on the government to bring actions. as we discussed off air, put a face to some issues that arose in 2008. tracy: if he is proven guilty is this a red mark for goldman sachs? >> not necessarily because i think they have settle. what concerns me is that any regulated institution there is a supervisory chain and i find it a little dumb founding that a 28-year-old person, young male, would be left alone to be managing this relationship. tracy: right. >> and that how could he do it

this would be lehman and bear stearns. large banking organizations that have some thingshat were similar to what they did. you do not need a commercial bank to do this. there is some question as to how much that would actually prevent the kind of problems we saw from developing. secondly, there is some question as to whether some would lose something which is the benefit of having large .nstitutions with the capacity it has the capacity to provide funding of any sort that a client may need from a line of credit. to going out with an ipo. s are are hardefit to pin down. when i put those two things and at listficacy some things that unintended consequences, my own sense is that i would not have this approach as high on my list. there was a problem with lehman. onhink that problem was short-term funding more than it was what kind they were affiliated with. >> got a long way to go? >> looks. i think people should continue to explore and ask questions would be. the impact for me the prior she is the wholesale funding area. >> y

losers, bearme stearns, lehman brothers, banks that do not exist anymore that thethey made bets housingp and got badly burned. as people who are whonding for mr. tourrre, are these people? guest:tourre is his own star witness. he spent about 1.5 days on the stand. he told his own story. he grew up in france and was educated in france and got a degree from a top engineering school in paris, came to the united states and got a master's at stanford and started working for goldman sachs. he appears lively and engaged. he speaks with something of a french accent so he can occasionally be difficult for the court reporter and jurors to understand. getting up on the stand, he is doing his best to get across to jurors that he was not one of these masters of the universe, that he was part of a big organization on a transaction that was reviewed by many other theye at a place where have lots of institutional control. he says he depended on those controls of the institution. to make sure that there was nothing wrong with the transaction. on the other side, the sec has really made this a case about

in 2007, the investment banks bear stearns and lehman brothers were leveraged 33-1 and 31-1 respectively. these institutions would have been compliant with basil three with their international leverage ratio, and yet each would have become insolvent or nearly insolvent if the value of their assets declined by as little as 3%. that meant they only had 3% protection, and if their assets declined more than 3%, they are what you call under water. they simply were failing unsustainable institution or bank. i am pleased to say that this week, regulators finally went beyond these inadequate rules and proposed a 6% leverage ratio for insured banks. i had said earlier that senator vitter and i had argued for this and were pushing the banking regulators to do what they, in fact, did this week. the move is a necessary step in the right direction. it shows how far this conversation's gone in a short time, but there is more work to be done. let me explain several things we can do now. first the number needs to be higher. "the wall street journal" editorial board, not a group of people with whom i oft

get 3 years interest-free financing on beautyrest black, stearns & foster, serta icomfort, even tempur-pedice. you'll never find an interest rate lower than sleep train's interest-free for 3 event, on now! superior service, best selection, lowest price, guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪ >> brian: quick headlines. new government report shows drastic 26% increase in the number of tsa agents accused of wrongdoing between 2010 and 2012. 20% of the cases involve workers falling asleep or failing to follow protocol. others never show up at work or just flat out stealing. a prominent ex-civil rights lawyer locked up on terror charges wants out of jail early because she has terminal breast cancer. she's 73 years old, was sentenced in 2005 to ten years for helping a man convicted of -- to blow up new york city landmarks. >> steve: meanwhile, this. kids all across the country will recognize her as the co-star of one of the best shows on television "i carly." now she's getting her very own spinoff show called "sam and cat" and joins us live. gone to you. >> good mornin