as the e-mail from the prior friday, in the phone call from fred -- fed president tim geithner goldman sachs and morgan stanley scrapped the wall street model and became banks to ride out the crisis. if you said that was going to happen one week before, nobody would have believed it. and it did. unimaginable, catastrophic events were happening as the financial system spiraled into a crash. >> wells fargo, eyes wachovia, crisis hits european banks. treasury in congress sign off on bailout package. citing grave financial threats officials ready massive bailout package. hopefully get insight from chris dodd and barney frank about some of these events and meetings. the bailout plan as you will remember was rejected by the house. what happens is that the markets crash. the policymakers and government officials plunge to the of this with no one really knowing what happens next. tarp was ultimately passed $7 billion. another part of the discussion between then and now -- it's talked about as being the only part of the bailout and we know that is not true. using the tarp money, united states b

it does seem as though the bush and obama administrations give credit to hank paulson and tim geithner bernanke. handled a similar kind of crisis better in a way that it was resolved quickly and early. >> yeah i mean let's remember we have puerto rico going on here at the same time. but yeah when greece appeared it was clear they were not going to grow their way out of it. their dent was too high. they were cut off from the from world markets. they should have written it down. it would have been very painful and tough with the german voter who's would have gotten it over with. instead, they keep leaving them in this never neverland where they're cut off from markets because the debt hasn't been written down enough. they're dribbling out money to them which keeps them better off but the economy is crippled. so you move quickly. but what did they do? they made very optimistic projections. everybody did it, the imf, the europeans. they said they'll grow their way back. that was not a healthy development. >> fundamentally, zani isn't the problem that the united states has the capacity to b

the email from the prior friday pressage and the call from morgan stanley to the fed president tim geithner suggested and goldman sachs and morgan stanley scrapped the wall street model and became banks in a bid to ride out the crisis. if anybody said that was going to happen a week or two before nobody would have believed and and it did and that's what was happening on a daily basis and unimaginable and cat strovenlg, vents were happening as the financial system was spiraling into a crash. >> wells fargo, the crisis at european bank, that's the bad news and the good news at least according to some it says treasury and congress sign off on a bailout package. citing grave financial threats and officials are ready for bailout package and we'll get the insights of chris dodd and barney frank about some of these events and the meetings in the next hour. so the bailout plan as you remember, was rejected by the house and what happens of course, is the markets crash. once again, policymakers, government officials and the markets have plunged to the abyss with no one really knowing what happens nex

. >> i think tim geithner's done a good job.hink that the whole group has really done a good job. when you look at what's happening. at least we have an economy. you wouldn't have had an economy had they not come up with some very drastic steps two years ago. >> i'm almost more disappointed with the republicans. >> they have to toughen up on obamacare which is a total lie and which is a total and complete disaster. >> health care. >> liberal on health care. we have to take care of people that are sick. >> universal health coverage? >> i like universal. we have to take care. there's nothing else. what's the country all about if we're not going to take care of our sick? >> let me tell you everybody wants to pay as little as possible including warren buffett, by the way. and somebody said what's your tax rate? i don't know. i pay as little as possible. >> i would tax people of wealth, of great wealth, people over $10 million by 14.25%. this tax would raise approximately $5.7 trillion, which happens to be our national debt. >> well,

the more credible criticism comes from tim geithner, namely that we made it too hard for the fed to a lot banks. i havedisagree. given what we have been through if that is the case but will have to persuade congress. there is the notion we will give the unilateral right to do that. history is history. there was one allegation that the bill contributed to a temporary problem with liquidity . they got the buy side and sell side incentives mix up in that. that is the one thing in five years they allege was damaging and it lasted a couple hours. >> you had called that a frightening precedent. there had been 139 bills to repeal. frank or to reform or change the law. i am curious to see where do you guys -- how durable is this law? mr. frank: getting that on its merits -- the fear was the republicans would put a short term appropriations bill through and that would have damaged the economy. america, this is what it is about. this is how they can manipulate derivatives. that was a huge hole in the bill. it was the president. they have talked about repeal but compare obamacare to financial re

the criticism comes from tim geithner and others in the financial community that we made it too hard to bail out banks. that's the criticism you're getting. i disagree with it. what they're saying is there may come a time in america when it's important for the public to come to the aid of a major institution. given what we've been through, if that's the case, i hope it isn't, then you are going to have to persuade congress. the notion you would give the executive branch authority to do that misrepresents history. there was one allegation the bill contributed to a problem with liquidity. and it seems to me they got the incentives mixed up in that. but that's the one thing in five years that they allege was damaging. and it lasted a couple hours. >> you mentioned the swaps pushout rule the appeal you had called a frightening precedent. there have been 139 bills introduced to either rupeal dodd frank althoughor to change the law. where do you guys think -- how durable do you think this law is going to be? where do you think it will be five years from now? >> using the appropriations bil

the criticism comes from tim geithner and others in the community that we made it too hard for the fed do is bail out banks. i disagree with that. but they say there may come a time in america when it is important for the public to come to the aid of a major institution and my answer is given what we have been through if in fact that is the case, you will have to persuade congress the notion you would give the executive branch unilateral right to do that misreads history. and there was one allegation that the bill contribute today a temporary problem with liquidity and it seemed they got the buy side/sell side mixed up in that. that is the one thing in five years they allege was damaging and it lasteded a couple hours. >> you mentioned the repeal you called a frightening precedent. there have been 139 bills to repeal dodd-frank all together or reform or change the law. i am curious to see where you thing -- where do you think this law will be five years from now? >> a frightening precedent was using the appropations bill to get the cut. i don't believe the president vetoed it on that g

and secretary tim geithner was most interested in the banks having a soft landing. also if you contrast the new deal, the new deal also helps people that really lost their homes and who have lost their mortgages. the bottom mortgages and refinance debt. they made it possible for people to be able to keep their homes. one of our authors call that a public auction and it was really not available. and we think that there have been huge losses for homeowners and it could go up as high as 13 million before this is over. but the new deal also broke precedents by employing the unemployed and putting them to work as i mentioned earlier, increasing their dignity and she will talk more about what that meant in terms of creating this for this country. that did not happen at this time. it did essentially use that by the new deal with the unemployment insurance which was disbanded in one mostly and that had a great deal to do with keeping the recession from becoming the great depression. and in fact it's estimated that unemployment would've gone up to 60% instead of 10%. so the