they were talking to the lehman people daily. more of lehman brothers ahead when 60 minutes on cnbc returns. [ticking] conservative. very logical thinker. (laughs) i'm telling you right now, the girl back at home would absolutely not have taken a zip line in the jungle. (screams) i'm really glad that girl stayed at home. vo: expedia helps 30 million travelers a month find what they're looking for. one traveler at a time. expedia. find yours. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's

and around the world. when lehman brothers collapsed, a financial panic ensued with banks and other financial institutions hording cash and refusing to lend to each other, and that was what we know as the financial crisis. it's not as though these facts were unknown or unknowable. fannie and freddie were two of the largest financial institutions in the world and were taken over by the government before lehman brothers failed. you don't become insolvent by acquiring and guaranteeing prime mortgages. included in this book is an essay that charlie, a professor at columbia business school you probably all know, that he and i wrote in september 2008, the same month that lehman failed outlining fannie and freddie's role in the crisis. republican members of congress and conservatives inherently skeptical of what they were told by the news media were able eventually to put facts together. so it is now widely believed by policy-conscious republicans and conservatives that the financial crisis was caused by the government's hou

financial statements and no one gave them a check no one gave them a pass whereas dick fuld the former chief of lehman brothers where is angelo mozilo the former head of countrywide u.s. where is john chorus line the former head of m.f. global they're not in prison not in court they've got to walk away from the masses they created so again here is the tape for mcconnell me a phrase of course coined by catherine austin fits but now that scientists as a term and are also very similar to cancers so they basically destroyed the system they killed the system right so the average american does not participate in the in the stock market rally because the stock market rally is driven by hardened criminals and securities laws violators like jamie diamond so they're know if they buy into the stocks are they supporting criminality that's one of the issues that they're turning people off because they don't want to invest in this plague this financial hole a cost that is jamie diamond they don't want to invest in that so they are on the sidelines. like in some societies the that the woman is forced to marry the ma

the so-called london whale in an eight point six billion dollar lawsuit against the bank remember j.p. morgan was lehman's a clearing bank and so as the special privilege of seeing what was going in and out of lehman brothers lehman argues that they had an unnecessary collateral call that caused them to go down right in the top brass says we don't have any accountability it's at arm's length we don't know what's going on we never saw the i don't know i was. what do i know what to do and just give him a bonus i don't know what's going to give him a. but it would. be my money anyway to meet this guy they walk away and then checking to see if their wallets from stone remind everybody about what this case is about to remember lehman brothers collapse of temper fifteenth two thousand and eight and lehman and its unsecured creditors today accuse j.p. morgan of using its access to lehman to extract eight point six billion of collateral in the four business days ahead of the chapter eleven filing they argued that it still had a quote practice of intentional mis marking i wanted to review trades that led to an unj

. >> very quickly, scott, you tweeted out yesterday or the day before that cyprus could be the lehmanthers of europe. what did you mean by that? >> we crossed a line in cyprus that should have never been crossed. for the price of 7 billion euros we have now drawn into question the safety of bank deposits all across europe. you know, the cypriot deposits were guaranteed, but yet the tax wasn't covered under the guarantee. so it basically tells you that as a depositor, you can have your deposit or your monies taken away from you by the government at any time and the question is, you know, as we sit here and there's no resolution to the problem in cyprus, inevitably if we see a collapse of the banking system, which i think is very likely in cyprus over the next week, all eyes are going to turn on italy and spain and we're going to start asking the same questions there, are deposits safe? and if the flows start moving and the capital flows turn negative in those countries, i think the eu will find that it is reversed a lot of progress it's made over the last year. >> thank you for those t

japan did not experience a financial crisis despite the collapse of lehman brothers and the earthquake two years ago. here are the latest market figures. >>> people across iraq are looking back on a war that took away one problem and replaced it with many others ten years ago on march 20th, u.s.-led forces invaded their country. saddam hussein's regime collapsed in less than a month but the conflict stretched on for much longer. the sectarian violence triggered continues to this day. nhk world's sho beppu covered the war and its aftermath. he's now back in baghdad. sho, how are things in the iraqi capital now? >> reporter: right. i can say that it changed quite a lot compared to those worse days. it seems lively, at least on the surface, streets in baghdad are busy, especially in the center. roads are jammed with cars, and the shops are packed with people. residents who sought refuge elsewhere, in iraq or across the country, are returning. oil production levels are back to what they were before the war, about 3 million barrels a day. companies have built modern shopping malls to take a

the time that lehman brothers fell. there was time between the thailand crisis and the korean crisis. there was time between the korean crisis and the russian default. we remember that as one keeper of financial instability, but there were long roles -- one period of financial instability, in there were long rolelulls between. you can get sucked into complacency by along period a relatively -- by a long period of relatively robust markets. any individual can save more and rebuild his or her balance sheet. but in a world where my spending is your income, if every individual tries to save more or every country tries to save more, the result is just lower incomes. in the end, you don't have more savings. that is the risk on the path that europe is following. >> larry summers, thank you very much. thek news at -- around world. syrian planes have bombed northern lebanon for the first time according to the u.s. state department here they have accused damascus of a significant escalation of the conflict -- state department. the

>> yes, i disagreed very fundamentally with the lehman brothers decision. it wasn't the cause of the crisis, we had the crisis before, but it was a turning point and everything fell apart. >> rose: what's their answer to that question. >> the answer has changed a few times but the basic answer is we department have the legal means. there was no tarp. there was no dodd-frank. they now have the legal means to handle the next lehman, so to speak, differently. but his view was that they didn't have the legal means to do it. >> the problem with that answer is they dnt have the legal means to do some of the things they actually did do and when they really wanted to to do it they found the legal means so i think that answer from them is not fully satisfying. it's not completely unreasonable. >> rose: what's his theory of the case of the economy today and what's necessary to bring down unemployment? he seems to me to have made unemployment his principal target. >> yes. i think the theory of the case is largely two pieces. one, to the point you were just making, char

at the lehman brothers is going to be paying off its creditors. lot of money going to traders that specialize in where they are putting the money. doing a lot of reporting on this, one municipal bond. west virginia tobacco bonds, these are bonds that are payment on maturity. now, again you can buy them at significantly below par to make some decent money just throwing some ideas other. connell: this is one that is gaining in popularity? >> yes, smart money looking at municipal bonds. there are bankruptcies in california. not a large number, but there are. >> isn't as bad as we can? >> i think that wayne rogers was on earlier and he represents a view like meredith whitney that there is doomsday coming. i do not agree with that. other pockets of this? yes. >> these are still pretty safe. i'm telling you, these are the least state of communities. but there is a trade here. and you have to be smart. if you think the stock market is getting too ahead of itself, nothing in cash and bonds. this is a market here for everything at a certain price. it is a

a pension plan out of califonia wins the right to sue jp morgan for losses tied to alleged risky investments in lehman brothers. the wall street journal reports chevron's board is cutting bonuses of top execs in the wake of accidents and mishaps. and amtrack is asking congress for $2.1 billion to upgrade its track system and buy more trains. let's check in now with todd horwitz of the adam mesh trading group for what will be the final trading day of the quarter and the week. good morning to you. > > good morning. how are you? > i am doing very well. what do you expect out of europe today? > > you know, i think that everybody is watching cyprus, although it is such a small, minor thing. but, i think what will happen is, depending on how the banks react - if they do open and what the reaction is going to be like if they are open. i do believe that the u.s. markets are probably going to sell off either way, no matter what they do, because there still are some problems there. > blackberry has a lot on the line. their earnings are coming out today, and traders are anxious to find out how those sales are go

so we got what the markets were calling the lehman ii scenario. what would have been the chances of getting true the congress -- think the congress another stimulus, another t.a.r.p. or anything like that? as a lot of people in this room know, you can damn any piece of legislation now by saying it's like t.a.r.p.. people have this view that t.a.r.p. was a failure, that it robbed taxpayers of $700 billion to dole out cash to undeserving bankers. the only part of that sentence that is accurate is the adverb "undeserving." [laughter] they were undeserving. they didn't deserve it. but when the ship is sinking, you don't quite worry about just desserts until you make sure the ship doesn't sic. but, in fact, the tarp was a tremendous success. the financial parts of t.a.r.p., you may recall t.a.r.p. then started getting used for everything, including the automobile bailout. but the financial parts of t.a.r.p. have turned to profit for the taxpayer. so it worked, turned a profit for the taxpayer, made sure that we didn't go into the kind of depression scen

at the lehman brothers was a big mistake.ce then i think they have been sure footed, smart, creative. they have shown stick to this. lou: sometimes in a very lonely way, not much competition. >> a lot of criticism. lou: it's always great to see you. we appreciated. >> creek to be with you. lou: go to the loudobbs.com and connect directly and make a small transaction. after the music stops. of that title, by the way. >> thank you. lou: we recommend the book highly. coming up next, the war continues later, the fiscal, psychological impact on our military. you are going to hear and see some shocking numbers in the "chalk talk" tonight. in a key defense witness makes a shocking admission under cross-examination. that's next. stay with us. ♪ egalzoom, you can take care of virtually all your imptant legal matters in just minutes. protect youramily... and launch your dreams. at legalzoom.com weut the law on your side. with google now, it automatically knows when you need to leave for the airport, how much traffic there is, and can h

and perhaps too motivated by money, but he found in the last days of his life, particularly when the lehmanroke, he went at it whole hog and knew he was sick. and i think she was in a lot of ways in a race to get as much done as she could. i think that happens and work becomes its own kind of medicine and an escape from illness, but my mother also didn't know she was dying until the end. and that is, that is -- >> she knew she was sick and didn't share that really with almost anybody. >> yes. >> did you know, tom? >> no. >> so it must've been a huge shock. >> it was. this is why nora is one of the most amazing people in the world. she knew if she told us early on and whatever problems you had, the first question people would ask was, how are you feeling? that's just no way to leave and it puts a cramp on the great adventure, and she didn't want that. so, no, me and the other people who loved her very much didn't find out until literally 48 hours before. >> tom was, in many ways, your mother's go-to guys for movies, whether "sleepless in seattle" or "you've got mail." tell me what your mothe

. >> a lot has happened in my turn including the collapse of lehman brothers, and the march 11 earthquake. >> he expressed hope that the boj and the government will step up efforts to pull japan out of the long period of deflation. >> japan now has an opportunity to end deflation. the yen is falling and the stock prices are rising. >> he said he did his best to try to stop deflation as soon as possible, and spur economic growth. the band bought bounds to pump liquidity into the economy. but he expressed that he had taken extreme care to make sure they did not end you have shouldering the country's debt. also, he said they could not change fast enough to keep up with the ageing population. chief researcher spoke about his time in his he criticized the boj governor for not working hard enough to get the country out of deflation. >> translator: end deflation. he failed to clearly outlike the boj's responsibilities and to appeal to the public that they would take aggressive steps. >> but he gave him ret for stabilizing the system. >>> transportation officials sri lanka have opened a new inter

the issue with cyprus i think that's a concern the cyprus moment could turn out to be the lehman moment. we don't want to it turn out to be a run on banks in europe. right now the u.s. is benefiting from the mess over there called the euro mess. but, if you start to get some really significant runs on banks and spain and italy and some of the other peripheral countries there's a real issue. i think the market figures that mario draggy the president of the ecb. all he's done is pledge to defend the euro. he can't do everything. he couldn't fix cyprus. >> but i really like, i think this is the new template for europe and coming here. i had a government official ethical me this. this idea of bail in rather than bail out. i know there's transition issues. instead of taxpayers bailing out bad banks why don't the bond holders bail them out. of course the shareholders will go down. the bond holders and if need be the uninsured depositors. this is a template for the whole story, europe, usa, japan. >> fair point. i understand the germans are tired of supporting their friends to the south. doesn

and around the world. when lehman brothers collapsed, a financial panic ensued with banks and other financial institutions hoarding cash and refusing to lend to each other, and that was what we know as the financial crisis. it's not as though these facts were unknown or unknowable. fannie and freddie were two of the largest financial institutions in the world and were taken over by the government before lehman brothers failed. you don't become insolvent by acquiring and guaranteeing prime mortgages. included in this book is an essay by charlie, professor at columbia and you probably all know him that he and i wrote in september of 2008, the same month that lehman failed. outlining fannie and freddie's role in the crisis. .. you can and show come and i were once accused in the new york column he and his of using the big lie technique for suggesting that the government had a major role in a financial crisis. it doesn't get much worse than being compared to joseph. [laughter] most americans have no idea that there is an

he saw the lehman brothers stuff come very r5er. in september of 2008, and then after that he had a two-year noncompete, and, you know, after taking some time off he's been, he worked at cnbc, and now he's here. so this is a, this is a pretty interesting development. if you own morgan stanley stock, and i think this is where this becomes key, i mean, this is a big publicly-traded company, this is a big deal. because this is the guy to make the brokerage department work, and the brokerage department is key to the future of morgan stanley. liz: well, and i think that he's leaving cnbc because they made him cut his beard. he's like that guy at disney where disney said no facial hair alive. >> reporter: i thought you were going to say because he had that big brawl with warren buffett. liz: well, that too. he made a statement about something regarding warren buffett, and they med him on -- made him on air apologize. already well, here's the thing, no. they published an apology. he refused to do it, from what i understand. gary refused to

brothers failed never others failed with the exception of one money-market funds that held a lehman brothers commercial paper and broke the book as a result of the losses, one example, but to be too big to fail you have to have many, many other firms failing and we have no record of any other firms failing when a $600 billion firm failed. would have been if a very, very large banks like jpmorgan chase? we don't know. but almost everyone keeps track of exposure to everyone else. that is part of the business in the financial area. as a result the likelihood is a large bank could fail to be taken over by the government, the fdic, resolved without the issue of too big to fail to be raised. the volcker role is not quite right. the danger is institutions that are connected with banks are not permitted to trade with their own accounts, assets, financial instruments for their own accounts. they can trade for customers, they can hedge and in market making, if you can tell the difference between trading for your own account in better than hedging and market making you are better than the regu

but you take a look at anton's bankruptcy report, the big question is how can the lehman executives didn'tson? i don't know. the department of justice has been -- >> come on. are we in that level of demagoguery that we're throwing them in jail now in. >> we got to run. thank you for the conversation. we'll see you soon. >>> does this sound familiar? an economy bumped up by real estate mania then the same economy destroyed when the housing bubble bursts. yeah. we're not talking about recent history. this may be instant replay. this time it's in china. up next we'll talk about where you might want to be concerned about. >>> later high hopes for a new support. will the growth of spartan races catapult them to the olympics? we'll talk with a man who started it all. stick around. neil and buzz: for proving there's nowhere we can't go. but, at some point... giant leaps gave way to baby steps... and with all due respect, you're history. if you taught us anything, it's that you can't cling to the past... if you want to create the future. that's why, instead of looking behind... delta is looking be

the former lehman brothers trader who found dividends in diamonds. of our national pastime bring around a gambling grand slam. my next guest used baseball to win at its own game. he turned what he knew about stocks to sports, a story he tells in trading bases, a story about wall street, gambling and baseball. good to have you on the program. >> good to be here. >> thanks for joining us. you made quite a career as a wall street trader. how did you or what made you start trading baseball for stocks? >> two years ago, i was starting my year trading, i had worked for lehman brothers for 136 those years. i figured that was my career. i was crossing the street and got run over by an ambulance. the resulting leg injury laid me up, curtailed my ability to work. worse than that i was in a wheelchair and stranded across the country from my family. stuck in new york, i needed something to make my mind off my inactivity and boredom and pain and i really turned to -- i threw myself into baseball season. >> amazing. you really turned something that could have been

she was once one of the most powerful women on wall street, becoming cfo of lehman brothers nine monthse its collapse. she disappeared after the bank's demise, refusing tv interviews until now. she says she can't discuss lehman's bankruptcy due to legal reasons, but she's compelled to add her voice to the conversation ignited by facebook executive sheryl sandberg, here giving a commencement address at barnard college. >> do not lean back. lean in. put your foot on that gas pedal and keep it there until the day you have to make a decision, and then make a decision. that's the only way when that day comes you'll even have a decision to make. >> reporter: is there something in the message that sheryl sandberg was sending out that inspired you to want to speak out now? >> yes, and also in terms of some of the reaction to that message. i would probably look at myself as someone who lived that message. >> reporter: you have leaned in. >> i leaned in far, very far. i had many young women over time that i've tried to give advice to, guidance to, and i would always be very honest and say don't d

i can imagine you leaving lehman brothers. just like in the bond movies, you don't turn your back and behind you things explode. was it cool? >> not that cool. i got lucky. >> you did get lucky. >> lucky timing. >> going back to it looked as if lehman brothers was a huge thing, tu a huge risk. >> yeah. i had a good -- a mother of a good friend of mine tell me i was crazy for leaving a sure thing like lehman brothers to do a crazy car-pooling startup. >> did you have any inside information things were going to blow up. >> because he left. >> that's probably why. when you left and started, what was the timing? >> this was back in 2007. >> before the economy had taken hold. >> you and other competitors and we touched on other businesses as well get their start in san francisco. it seems to me like san francisco and the mayor's office kind of goes out of its way to make sure you have a fighting chance. now, the taxi drivers and hotel owners and things would say -- would have their own opinion on that. do you get that feeling that you get some codd

rocked by the credit crisis in the eurozone and the global financial meltdown triggered by the collapse of lehman brothers in 2008. china's new president xi jinping attended the summit and called on other brics members to step up cooperation with african countries. >>> china is increasing its ties with developing nations as part of its strategy to strengthen its position in the international community. nhk world reports from the brics conference on xi jinping's diplomatic agenda. >> reporter: talks suggested the emerging economies may be scaling back on developed nations. there are various reasons for this. the financial crisis and the european debt tumult have given emerging economies a shared grievance. emerging economies to want to lessen their exposure. to these shocks. for china's new leadership, stability at home tops the stability at home tops the agenda and key to achieving that will be stable growth. the country xi has just visited are rich in natural resources, essential for china's industrial development. chinese leaders have pursued closer ties with africa in recent years and xi is ex

new form of financial fascism so why all the quantitative easing why all the deposit levies why tarp why m.f. global why why lehman brothers why the one to the well why all these well confiscation schemes what is happening well actually if you got a match prices one thing it says there about him is that he is often talking about the notion of accounts max explain to us what an account is well you see with the cyprus situation in other words the country had built up a number of faulty trade securitized trades that were never appearing in anyone's books officially and they kept them in the air account or off the balance sheet and with the idea that at some point if some growth comes they will leitch those areas back onto the normal balance sheet by pairing those losses against new found games but those games in those growth is never coming so those errors those losses are now manifesting themselves on these balance sheets without any any way to hide it so that side is gone out all these all these errors and broken trades and and losses are so are sticking out like a sore thumb and so the only way to to square the ci

in my book i talk about the destruction lehman cauause overseas. now it's the reverse.he last three years we had elevator shaft drops in the u.s. stock market. at the end of the first quarter, beginning of the second quarter, 16%, 20% and 10%. each time there was credit spread contagion from europe. a sovereign problem that led to a bank problem. then that weakness led to u.s. credit spreads widening. >> i didn't see much today. the bond rates were very low. >> overall there has been credit spread contagion over there the last few weeks. it raised a little bit, but has not spread to the u.s. that's why the u.s. markets held up so well today. >> there is economic torque behind the u.s. market. even an optimist like myself must acknowledge if this gets out of control and the european central bank has to do what they have to do we might have a problem, good economy or not. >> we might have a problem. charles' interview was very interesting. he did down play the contagion aspects as did i. the euro group did extend payments to portugal and island. to ring fence what they di

we've gone into these crisis phases late 2007, 2008, the lehman issue, everything.nobody believes that we can go up from here. warren buffett, i'm sure, will be referring to it again. it's been four years for this rally and there's a lot of people coming through at the end of the first quarter 2013 not having participated very much in that process. >> absolutely. >> so the idea of risk on/risk off is we're getting back to a normal relationship between taking investment risk for return which is not measurable danger. the real risks we've faced t have been those external risks. what is there's a collapse? these are the externallty risks whether it's a flight to quality unrisk. >> so this is exactly what we were talking about off the top of the show, which is if you look at a trading session like yesterday's, it wasn't a strong risk on/risk off core late trade. commodities were weaker. how do you as kind of a fund manager figure out where and how markets are moving on a day-to-day basis? >> 30% of the euro stoxx 600 is still in ways stocks. and so, therefore, the headl

i was on the street signs with brian and mandy and an intelligent guy thought cyprus would be the next lehmanrothers. i don't think it will. i don't think bernanke thinks it will either but the pessimistic gentleman who made the analogy was not alone. bright people believe the pending cyprus banking collapse would do a ton of damage and bernanke doesn't need to wager that they are wrong. we have nasty sales news from two of the most important companies, caterpillar and fedex. caterpillar reported that the north american machinery sales dropped. and that's a bone chiller. and fedex dropped about 7%. unless something dramatic has changed, so that if you absolutely positively have to have something delivered overnight so now you choose united parcel, this is an extremely worrisome fact. and then after the bell, oracle, the technology company got ferociously hammered. that's a terrible sign for i.t. spending. shipping, earth moving, these are gigantic technology. and of course, just three weeks ago we heard when the sequester kicks off the economy is going to down shift as hundreds of thousands o

have a deposit protection scheme as we have in this country, as all of your put in place after the crash of lehman brothers, those deposit protection schemes should be respected. that is the whole portrai point. that is why they are there for small savings. >> harriett baldwin. >> the civil service union as threatened today to go on strike. but the country does not seem to have grounds to have hope. does the prime minister agree with me that that probably indicates that there is a bit more room to save in terms of public sector setting so we can put labour sector, get this country back on track? spent i think my friend raises an important void. it is important to recognize that we should do everything we can to save and find efficiencies in public spending in order to help hard-working families keep their tax bill do. that is exactly what this government will continue to do. >> thank you, mr. speaker. on january 9, the prime minister told me they would be no hostile to the organizations unless they were in support of the local gp commissioners, proper public engagements and evidence-based. will no

it finally popped with the bankruptcy of lehman brothers and the near collapse of a.i.g., who were bothted in the oil markets. with hedge funds and investment houses facing margin calls, the speculators headed for the exits. >> from july 15th until the end of november, roughly $70 billion came out of commodities futures from these index funds. in fact, gasoline demand went down by roughly 5% over that same period of time. yet the price of crude oil dropped more than $100 a barrel. it dropped 75%. >> how do you explain it? >> by looking at investors. that's the only way you can explain it. >> in july 2010, president obama signed the dod-frank act. it addresses many of the regulatory lapses in the commodities market. among other things, it limits the amount of commodity futures that speculators can hold. it makes it easier for the commodities future trading commission to investigate suspected market manipulation, and it empowers the agency to regulate energy derivatives, which enron used to drive up the price of electricity in california. [ticking] coming up, a herculean effort to find oi

it was lehman's collapse that accelerated the recession, costing millions of jobs. the senior market strategist for trading advantage is scott bauer. let's talk with him. so scott, we were just talking about this bubble with china. how is that playing down there on the floor this morning? > > yesterday, that coupled with the long weekend thinking about the sequester and all the negative news out there, you would have thought that the market could have easily been down 1%, 2% yesterday, and we saw that out of the gate. and then as the day progressed, it's almost like the little boy that cried wolf - i will be quite honest with you, that is what traders are saying down here. this negative news out of china, the sequester, it's like, "oh, ok, it will get fixed." so traders are really believing that there is still momentum to the upside. more importantly, or just as importantly, the retail investor that still has so much cash on the sidelines, those are the ones that keep popping into this marketplace. so as a trader down here, it is very difficult to fight this trend.

and it just drives horses through the deposit insurance scheme introduced after the lehman collapse. s are playing a very dangerous game here. cyprus may be very small but you only have to see that this problem could potentially spill over to other countries. and if people start taking money out of banks, well, you know where that leads us to. >> alan, let's talk about that. a lot of talk over the the weekend we would see bank runs or at least some movement on monday, not just in cyprus where you can't take your money out because the banks are closed. but italy and spain, we haven't is seen that. what is the tipping point for you? if, for example, in cyprus they get after going after money that is still insured, if that's possible, does that change anything? >> moving your bank account is not that easy. so it's not something that you should expect to see happen overnight. but, you know, we were seeing during the course of last year in many of these countries, both combined, current and capital account deficits at the same time. we were looking at bank assets flowing, bank deposits flo