tim geithner is suddenly emerging as the boogie man is he rightfully should feel a bears in the mix talk to talk to tell us what's going on here charlotte bear is much more angry in this book than she was at her famous exit interview with the new york times magazine that she gave when she left she said that. in the first place she well i'm to close down citibank and that geithner refused to do it and that when they looked at citibank and the f.b.i. say the insurance corporation they couldn't just untangle the bank from city cork with all of that chunk mortgage activities speculative activities and sheila bair describes in detail the meeting they had at the white house when she said look. the treasury secretary came in said we're going to force j.p. morgan chase all the other banks to take twenty five billion dollars loan h.p. this huge gigantic bailout and she said it was all the same citibank the entire car that they sent in saving the banking system wasn't against saving the banking system at all it was to save citibank alone because it had bet involved so early criminalised and s

tim geithner has been controversial over the last four years. he is stepping down and whether it is the second -- he has -- some things he has done well and some he hasn't. i don't criticize him so much on bailing out the banks. that is where he gets the most criticism. he handed them too much money. that was a panic. when people panic you do things which i criticized his handling of the u.s. economy. he should know the stuff president obama tried to do with rising unemployment. a guy who worked at the fed issued no you don't propose health care when unemployment is not going down sufficiently. that is a drag on business and something even larry think of black rock, on the phone with him all the time, is gone public and said he supports president obama but the health care plan is that on business. this is my problem with tim geithner. i have issues with his core competency involving the economy. it will be interesting to see what he did. why wouldn't tim geithner step in and report those banks manipulating rates down? look at the new york fed ch

tim geithner can explain that.he reason for the difference between reality and what was forecast is europe and the summer drought. it is like this administration is looking at a totally different economy than the rest of us. now we want to know what you think. here is our question tonight. tim geithner said the economy is better than anybody thought. do you agree? log onto gerri willis.com. we will share the results at the end of the show. >> coming up on the willis report mitt romney closing in on president obama as the swing state race titans. which candidate will come out on top? we have predictions as gerri willis crunches the numbers next. he is known as the most renowned crusaders for using the wind and the sun to power our country but is president obama it making al gore a winning investor? gerri willis investigate the real facts. currently most gas and electric utilities don't put their payments on your credit report. find out why this may change and what it means for you. we are on the case next on the wil

and by that time tim geithner will work at citigroup.is, the new york fed didn't release it at this time i believe, we still have to check that. last time, if you look at the documents last time tim geithner was informed about libor manipulation and guess what he did? he sent an e-mail. i mean --. melissa: it was a big headache. everybody had quotes. >> why, i mean why didn't you at least release this to the justice department? what did you tell the sec? from what i understand in this document request they have asked what type of communications he had with various regulatory authorities and criminal authorities. as you know manipulation of an interest rate as it has been alleged here, at least one firm, barclays big bank, paying something over $400 million. its ceo had to step down because it was in the middle of this manipulation of the rate very important, right? libor is the base rate for a lot of things, car loans, house loans. they have asked for his communications with regulators. now here's the rub. maybe the new york fed is tryin

tavis: how to describe -- how would you describe your relationship with tim geithner? you mentioned that you had a bumpy relationship. here is a guy who was pushing for your ouster. called the work with somebody -- how do you work with somebody who is pushing to have you ousted? >> that was difficult and never told me that directly. i reached out -- reached out to them after those press reports were leaked and tried to have a conversation. that was one of the many problems, he did not communicate a lot with me directly. that would have helped. i dilee feel that he viewed me s an adversary, someone to force to take a position, as opposed to someone to have a two-way conversation with. i had a very specific public mandate. we have a process for dealing with failed institutions. it is as rough as a bankruptcy process. probably tougher. it was a difficult relationship. i do not question his motives. i think he was doing what he thought was best for the country, but he has a perspective that was formed by his tenure as head of the new york fed. it also functions closely wit

clearly tim geithner as new york fed president, not the chairman. the president, and that's a big role. remember new york fed president is the prime regulator of the big money center new york banks, the big important banks. he basically did nothing. he heard about it, okay i will talk to the guy in england about it maybe and just let it go. that is one thing grassley is looking at. the other thing is clearly interesting story itself. he is calling on, forget about libor. maybe ditch it. create our own index because as you know libor is important. credit cards, a lot of housing mortgages are priced off libor. it's a big thing. it is a problem if you have to get rid of it. he is thinking that an american-based system where a bunch of english banks and don't submit, what they think libor should be and average should be way to do it. i always say this is time, i was a big defender of specialists on floor of new york stock exchange. computers work better in this instance. melissa: seems like there is electronic way to clean this up. >> i think there is c

you could go to the new york fed website andause tim geithner a lot of heartburn.time from what i understand, we're still checking the website, it is not the easiest website to naviga through. what i can see right now, it may change, my phone may be ringing right now, but i don't see the documents on the website. melissa: so they were saying they would relse but not posting them on the website? >> the gave them tohe committee. last time they gave them to the comttee and put them on the website. meent crazy particurlylike the stuff on geithner. melissa: i imagine you will get in the car and drive down there and say, give me the documents. >> when due at foi, will take me three yearsrs to get them. and by that time tim geiter will wo at cigroup. reality is this, the new york fed didn't release it at this time believe, we still have to check that. last time, if you look at the documents last time tim geithner was informed out libor manipulation and guess what he did? he senan e-mail. i mean --. melissa: it was a big headache. everybody had quotes. >> why, i mean why d

for them to do anything about it and at the end of that week in march of two thousand and eight tim geithner and hank paulson had engineered a shotgun marriage with j.p. morgan chase to buy the company along with a taxpayer guarantee for thirty billion dollars for for any losses that they might incur up to that amount after the purchase although the company was eventually sold for ten dollars a share not to you know a year before it was at one hundred seventy dollars per share so a lot of employees lost their life savings as well as their jobs and we're talking about tens of thousands of people as well as investors really lost their shirts you know when the firm collapsed right nic i want to digress a little bit ask you. conceptual question your film and a couple of other films that got into the machinations of the fraud perpetrated on wall street the faulty accounting the manipulation and showing how this led to the collapse contrast that to a film like capitalism a love story by michael moore which seems to take on the entire notion of capitalism itself as the bad guy i'm wondering what yo

this is totally hypothetical we don't know who it's going to be but it can't get any worse than tim geithner i mean look at his record and you talk about bonuses how about one hundred sixty five billion dollars of bonuses does. or took none none of that was that he was at the fed he was not a bank that there take it but he overseen it he was the treasury secretary when these bonuses were paid in your in your opinion maybe there's something we agree on here i in my in the set up which i believe you heard i say i pointed out that you know reagan deregulated the snails in eighty three they the hustlers got into the business including neil bush was silverado and they crashed the s n l's in eighty six reagan said over a thousand people to jail he also took over a nationalized all the s n l's he created the resolution trust corporation over a twenty year period reprivatize them. was reagan right sure is that what we should be doing right now. what actually happened to solve the problem was in the george h. w. bush administration when he said no new taxes read my lips and he raised taxes to bail ou

they are turning up the heat on the treasury secretary tim geithner. barclays and other big banks and whether or not interest rates were fixed. a lot of this has been sent overseas until now. two senators starting an investigation to libor. let's move on. the economy certainly at a crossroads here with a fiscal cliff looming. our next guest, though, that people underestimate the positive impact we are seeing right now and housing. liz and sound are is in studio. what are we missing on housing? >> we have had a string of numbers. that factor has six years of a study drag on economy. only about 2.5% of gdp. i think people are underestimating the ripple effect to think like confidence. connell: what does it mean for the future? >> the numbers we have seen have been anemic. it is interesting to see how the conversation has turned. brian was very was on with us yesterday. he is very optimistic about the economy, usually. even he yesterday with using the recession worse than the possibility of falling back. have you completely discounted that possibility? >>

is re-elected one of his first priorities may be to find a replacement for treasury secretary tim geithner. geithner has hinted more than a year he wants to leave. the "wall street journal" reports chief of staff jack lu and erskine bowles are top candidates. bowles co-chaired the white house deficit commission in 2010. back to you. >> okay, thank you very much. we'll check back a little later on. >>> first day of october going to feel like july. >> it's not going to feel good. it is not going to feel good at all. >> in the pool. >> yeah, in the pool if you can jump into the ocean, it's actually going to be refreshing today. you're getting some pretty warm temperatures out there in the pacific, if you have the luxury of not having to go to work. if you do have to go to work, you want to get right to the shady spot before the other guy does because it's going to be hot out there or just do what i do, bring your windshield visor. temperatures are looking good out there right now. crystal clear conditions to start. no marine layer, no fog to tell you about anywhere over the greater bay area.

tim geithner, the treasury secretary, in the book is quoted thousands of words telling the president, you have got to do something about this problem. we have to fix it. you literally, it's not that we're going to close down the government, we will close down the american economy and, in turn, the global economy. if they do not solve the issue of this runaway spending, get some way to stop borrowing in excess, he tells the president of the united states if we default on this, on our obligations and our ious, we will trigger a depression worse than the 1930s. anybody here remember the 19 1930s depression? you probably don't. i don't. i was not born, but i've read about it. it was a calamity for the world. tim geithner said to the president what, if we default on this, if we do not solve this problem, we will have an economic catastrophe that will make the 2008 financial crisis a footnote in the history books. anyone remember the 2008 financial crisis? that's coming not from some columnist or journalist, that is coming from well-informed secretary of the treasury. you think about this,

have you ever known tim geithner to be right about anything? liz: can i stand up for citi for one second? anything i've ever done with them has done extraordinarily nice. checking accounts and things like that, look at that and say dropping down into moscow, there it is, into any country, they have a quality and solid consumer banking business, do they not? if that's not worth something? >> if your check clears, i think you are okay. the stock has done nothing for a long, long time. the ceo during this whole time. the rest of the balance sheet is not very strong. who knows what is in there. i don't know why he ever got the job in the first place. he did not know anything about ranking. citibank supposedly a huge commercial banker. david: can anybody turn it around? >> yeah, of course. david: who can turn it around? >> certainly not a hedge fund manager. david: what i'm asking is some people say it is impossible to control. >> don't say that. they have the new guy. we presume he knows something. maybe this bank will be run. david: are there any

>> i would not worry about tim geithner when it comes to aig. just worry about mr. benmosche and what he's doing. carolyn in florida. carolyn? >> caller: hi, this is carolyn from sunny miami beach. >> stayed at the "w" last time. too swank for me. the guy next door to me didn't go to bed until 3:30 a.m. that's when i get up! go ahead. >> caller: i'd like to know, i really love sea drill. >> sea drill? gun slinger, are you? >> caller: i think it's great. what do you think now that we have a new ceo? and why is this stock doing so great as far as dividends at 11%? >> the group's very, very under pressure right now. stephanie link, you see her a lot of times on the shows, we were just saying, these drillers, i can't take it. i'm not going to ib flikt a driller on you right now. although if you wanted to own one, you should be in schlumberger. you can't start a fire without a spark. liberty, justice and higher stock prices for all. if i were running, you'd have my eight-point plan. if only the candidates would adopt maybe one of them? "mad money" will be right back. >>>

these are questions i think tim geithner will rightly ask. we are 11 years after 9/11.raders -- traders handling 80% of the order flow of new york stock exchange listed stocks. trading is dispursed. maybe that's the problem, that it's so dispersed. whatever it is, the markets are not supposed to be down for two days. liz: the headline now is that treasury secretary geithner will be meeting today with the regulators, with the exchanges, with market participants. let me read this specifically to you. this is according to "wall street journal." will convene market regulators to assess the impact of the storm and talk about everything with the banks the regulators and the exchanges. >> that's because he feels they were not prepared. you know, what is he going to talk about? like is the weather getting better in new york? no. what he's worried about is the impact of the financial system of closing a market, the biggest stock market in the u.s., the most prominent for two days. they all followed suit. that was the whole thing. remember, nasdaq, they wanted to stay open. it wa

on the phone with tim geithner about 50 times in the last year-and-a-half. he is saying that the fiscal cliff for the u.s. is taking up time at the imf talk this morning and problems in spain. new breaking numbers out of what black rock is saying about the contraction in the united states economy if we go over the fiscal cliff. new numbers saying up to 5% contraction. that would wipe out 1 panth% gdp growth and contract the u.s. economy by 3% more. meaning $807 billion ticking out of the u.s. economy pretty much immediately. he is saying that yes, the markets are not pricing in at correction. they're not pricing in, the u.s. going over the fiscal cliff. they are expecting 11th hour rescue. the federal reserve is printing money and easing the way. he said it would undo the monetary money printing right now. we have to walk out for this. jittery market for next quarter. >> neil: this is why we call you wicked smart. all right. thank you very much. >> sure. >> neil: she is the "b" in fbn, the brains of fox business network. to put what she said in perspective,

because listen, tim geithner says we don't have a plan.as he gotten a plan since tim geithner said that? what is his long-term debt plan? >> frankly, i think what we should be doing at this point is borrowing more money. >> none. that's the answer. none. this debt is going to explode. >> no. you keep saying this debt's going to explode. this debt is actually -- listen, the deficit is a smaller part of gdp than it was on the day he came into office. he has a smaller deficit than was projected in january of 2009. we have -- >> gdp doesn't -- >> ten years -- >> margins -- >> and then it's going to explode, my friend. >> four straight years of 1 trillion debts, you're going to say it's gotten a little bit better? that's the sales pitch? >> jim garretty, let me ask you. hang on a second, sam. jim garrity, let me go back to you on this. after the last debate some people felt, some people in the media felt that obama, who had more energy, i grant you that, no question, might have won on points. but jim, to the issue of the agendas of the two cand

campaigns and look at this revolving door where the chairman of the sec or jake seward who worked for tim geithnerow work for goldman sachs s. you how is this going to be fixed and get retail toward back. it doesn't feel like an even playing field to me. i believe there are great things that wall street does, helping companies merge, but betting agnst them without telling them that and frankly wall street banks are making 75% of their money in trading. i i think you need to bring the pendulum back. i'd like to be a voice to shine transparency on what is wrong and try to pick it. >> let's be transparent f for yr own story. yoyou are denied a bonus on too of your several hundred thousand dollar salary. when so many people like the goldman clients with retirements and pension funds you cite being concerned about are struggling to make ends meet how does that align with your personal values? >> there's a huge compensatatio bubble in wall street. certainly i was making a lot of money and i was grateful for . if i was concerned about enriching myself what i would have done is stayed at goldman sachs or

in particular you were distrustful of, treasury secretary timothy geithner tell us why? >> i think tim and i had a fundamentally different philosophical approach to the issues, he was putting a lot of money in financial institutions and getting them healthy and profitable thinking that would take care of the economy. i wanted some accountability, i wanted shareholders to and owners to take losses and managers, i wanted them to feel pain. there was a clash of views. but i must say, i think moribund economic growth now is partly attributed to the fact we did not do anything to restructure failing institutions and down size this sector. we propped everybody up, this is a bloated sector, this is not serving the curb current econo. that is having an impact now. lou: it is easy for someone in my position to criticize in retrospect what was happening at the time with the bailout, i will be honest with this. i was saying, why is there no penalty for the necessity of bailout? why no safeguards going forward? why not walls built within the massivv institutions, there were none. and that to me is

tim geithner got the call, the head of the fed, the head of the sec. liz: sheilah baird said regulators were not a part of the decisson. >> let's hope that is the case. sheila baird is a private citizen, but let's hope people like that are not calling the shots on private business. listen, sheila baird did not like him. she did some good things come but also bailed out shore bank. once you get there, i downgrade a lot of er criticisms because she is not perfect in these criticisms. i think she would say she is if you read through the book. she thinks it shoul she made evy perfect decision. vikraliz: what about vikram pan? >> sheila baird was a regulator in the financial crisis. i don't remember her saying citigroup, a bank that wasn't big-time trouble. it was not problem, vikram pandit's problem? now. he inherited it. did he do a good job? the board of directors did not think he was doing a good job. the thing with morgan stanley ads how they overvalued it. i think that was the last straw, but it might have been something else that put o'neill over the

you know, look, it is about whether tim geithner in the treasury department under barack obama steppedeward their friends -- it is another scandal, it is another case of chicago corruption and so forth. megyn: i want to ask about this, this has become an issue because team obama really think it's going to be a winner for them in ohio and michigan and so on. it led to this exchange of the debate on monday night. >> as the president mentioned, the auto industry would be in favor of jobs being elsewhere. nothing could be further from the truth. in that process, they can get government help and guarantees. the debt burden that they built up, -- [talking over each other] >> you did you did not debut of providing health. >> i said that we would provide guarantees and i was able to allow the these companies come out of bankruptcy. under no circumstances would i do anything other than to help this industry get on its feet and the idea has been suggested that i would liquidate the industry, of course not. of course not. he meant let's check the record. [talking over each other] >> i have never

but i want to say, tim geithner, head of the new york fed. treasury secretary under obama, there is a link in that story. i admire him and i interviewed him. but he was the link between the two and i love to see him come out and say this action between jp morgan is dumber than dirt. >> larry, you agree that we are selling these mortgages. at a price that was shafting the consumers. >> million mistakes made. >> i don't want to go there. >> i'm just debating the wisdom of going after jp morgan. >> thank you for your plain speaking on the subject. >> we are going to tackle the voter id law. pennsylvania judge blocks the requirement from going into effect. next up on kudlow. tdd#: 1-800-345-2550 let's talk about low-cost investing. tdd#: 1-800-345-2550 at schwab, we're committed to offering you tdd#: 1-800-345-2550 low-cost investment options-- tdd#: 1-800-345-2550 like our exchange traded funds, or etfs tdd#: 1-800-345-2550 which now have the lowest tdd#: 1-800-345-2550 operating expenses tdd#: 1-800-345-2550 in their respective tdd#: 1-800-345-

i spoke with tim geithner yesterday about accelerating the return of wall street and we are cautiously optimistic that we will come back online tomorrow. the major problem with the flooding of the tunnels and the ground zero site and many buildings in downtown manhattan. the army corps of engineers is sending us their best national team. they call it the national on watering team. i didn't know there was such a name for a team, but honestly to new york, and we need them very badly. fema has also said set up a hotline for individuals. the fema hotline is (##8)121-3622 i have been involved in disaster. i have seen all types of disasters. i was in hurricane andrew in homestead florida. i was in the red river floods. the midwest floods, entire cities wiped away. the earthquakes in california. i have to tell you what i saw last night. what went on and the south shore of long island. they were some of the worst conditions i have seen. the hudson river, downtown manhattan, it was literally pouring into the ground zero site. would such a force that we were worried about the structure of the pi

>> mine is actually for tim geithner, secretary of the treasury.as saying that he thought the economy was performing at near full potential. now, first of all, when we decide that 1.5% growth is near full potential, we are in terrible trouble. and i would say geithner suffers from an amazing lack of ambition for this economy. i actually think that's what's wrong with the entire obama administration, they have a lack of ambition for this country and what it can and should do. but i would also say if he believes that, that tim geithner believes that a public sector job is equivalent to a private sector job. it's not that public sector jobs aren't important. teachers are important, firemen are important, nurses are important. but a public sector job doesn't pay for itself. taxpayers pay for it. a public sector job doesn't create other jobs. a private sector job pays for itself and creates other jobs. i frankly found his statement shocking. both because of its lack of ambition and because of its misunderstanding of what actually drives growth. it's not