and, in your office and you tried to get a meeting with timothy geithner. you go from your office to a nice office and the man who is secretary of treasury -- ditties have any say of your life when you're in that was a big point of contention. the way we viewed the statute and the way, as though the bill made it very clear in our view we were an independent agency within the treasury department, which meant that the president of the ninth states could fire me at will -- basically a stroke of his pen. but basically we operated independent. they went to the department of justice and actually saw to give a ruling that i was under his supervision which would have given the secretary potentially the ability and authority to shut down all that he did not like, set down investigations he did not like, keep me from releasing some reports. we ended up fighting tooth and nail using some of our friends in congress to help push back on that and ultimately they walked away from the fight. but ultimately, no -- after the review that request. >> your most contentious mome

. >> and thank you our church counterfeiter timothy geithner.he dollar was getting stronger because of confidence in our commempt and that's not what it is doing now and the dollar plummeted. >> do more regulations give people more confidence over less in the u.s. economy? >> rich was exactly right it is less. business growth comes down to a single risky decision . it can defend on how hard it is. what are the factors? and going back to a study for an instance. the one that rich cited with the world economic forum study is the most depaming. we slipped from first place to fifth place. you read why. it is because we ranked fifthth in terms of americans trusting their government and it will be arms length from business. those are 50th. come on, it is the united states of america. these studies are worth talking about. >> steve, i used to cover latin america it has more laws and regulations than any region that i know of and more law breakers. more laws and regulations sometimes they contradict each other and you have to be a law breaker. that is n

the quote from timothy geithner is you can't veto and cannot be responsible for default.president obama. woodward went on to write that anything had to be done to prevent what would have been a catastrophic default. he also writes that david pluf said if he caves, if the president caves to republicans on this issue it would have long lasting political repercussions and give republicans the upper hand going forward and they would be able to come back to this over and over again and force the president to go along with them. really interested behind the scenes stuff. the president never did have to worry about having to veto that because republicans dropped the demand that the debt ceiling be raised. what the president was trying to avoid was having to have the debt ceiling fight in the middle of this election year. >> a lot of these accounts, some of these were eyewitnessed by bob woodward when he had a opportunity to see some of the dialogue taking place or are a lot of his sources based on an nemity? >> he did interview on the record the president, john boehner and mitch

philosophical differences that you described in the book between yourself and treasury secretary timothy geithner who was then the president of the new york fed. the system was stabilize at the time but who got the better deal? the banks and wall street bankers or the mortgage holder and deposit tors. >> the people who had their unaffordable mortgages, they weren't dealt with effectively. there's a tendency to lump the banks together as terrible entities and there was some differentiat!pt2éz and some had behaved well. there were good faith borrowers that got stuck in morchs and didn't understand them and got themselves in to a situation that never should have occurred and we needed to help those people and never willing to spend money and capital to help those folks. >> who is better off? most of the bailout money has been paid back. >> it has. just because the bailouts made money doesn't make me feel better about them. on a cash flow basis i'm glad thif been profitable but doesn't justify what we did. to have a financial system based on the idea that if institutions make dumb mistakes and get in

under pressure from treasury secretary timothy geithner, the new financial stability oversight council is making a strong push for controversial rules aimed at preventing a run on what many think of as a safer place for investors to put their money. darren gersh explains. >> reporter: for an investment designed to be as boring as possible, money market funds have set off a fierce regulatory battle. last month, the s.e.c. deadlocked over new rules to strengthen money market fund regulation. today, the new financial stability oversight council headed by the us treasury said it is preparing to act to protect the economy. >> if investors get any sense that there might be a failure, they'll all race for the exit. and that's the equivalent of a run on the bank and there is no one there-- no one like a parent with capital or the fdic to supply capital if there's that kind of race for the et. >> reporter: three options are on the table. instead of a fixed value of $1, money market funds could be required to use a floating value. regulators are also considering whether money market fund compani

philosophical differences that you describe in the book between yourself and treasury secretary timothy geithner who, of course, was then the president of the new york fed. the system was stabilized at the time, but who got the better deal? was it the banks and wall street bankers or the mortgage holders and depositors? >> the mortgagees who got terrible, unaffordable mortgages. they weren't dealt with effectively. there's a tendency to lump all the banks together as terrible enti entities. there was a differentiation. there were a lot of good faith borrowers that got stuck in mortgages, they were pushed on them, they didn't understand them. they got themselves into a situation that never should have occurred. we needed to help those people and never were willing to spend money and political capital to help those folks. >> how do you feel about the system today? who's better off? >> just because the bailouts made money, it doesn't make me feel better about them. i'm glad out of a cash flow basis they so far have been profitable but that doesn't justify what we did. to have a financial system bas

to me and in this case benny would be ben bernanke at the fed and to me would be our friend timothy geithner over at the treasury were talking of course about the fed buying the government bonds issued by the treasury which then the treasury uses to pay down the debt to finance the deficit at a low levels so it's a very vicious cycle that maybe people aren't as aware of the impacts and we're going to talk about it right that's all coming up next on the capital account with lauren lester thanks lauren that's going to do it now for the news but you can always check out our you tube channel you tube dot com slash r t america our website our t.v. dot com slash usa follow me on twitter as well we'll be back here and a half hour. i've . not. easy to be. easy to. see.

it was almost perfect, secretary timothy geithner's reaction. was to pull out that fake outrage.u: as he made clear, the people who should be outraged or the people watching and listening to you right now. we have a housing market that was on its back and has been in many cases on its knees for the last four years. yet the government did not move to help -- t.a.r.p., a million foreclosures for the average price of a house about $206,000. with $200 billion, we could have stalled the foreclosures. provided some support and help that could've avoided this void rather than taking on these massive banks. >> it was even worse because the people need to understand -- this was a choice. where we are now in the grips of an ongoing foreclosure crisis was a conscious decision by her government. when we confronted secretary geithner on this, this housing program that was supposed to help millions of people stay in their homes, his response when pressed on the failure of the program was to defend it and explain it was about, in his words, the runway to the bank. this is the one program that w

paulson was replaced by timothy geithner. he was president of the new york fed. benz deali ining deg with the aftermath of that weekend. bob dimond was a key negotiator in barclays acquisition of lehman after the bankruptcy. in 2011, he became ceo of the bank. dimond held that position until july of this year when he resigned amid allegations of manipulating the interbank lending rate or libor. another banker at the table was jamie dimond, months earlier his bank j pchpmorgan acquired bear stearns. he's still considered one of the most powerful bank ceos in the world. >> christine romans, thank you very much. >>> lehman's failure shocked the financial world, really the entire world, suddenly anything involving money seems scary. want to bring in jill schlessinger, editor at large of cbs moneywatch.com. thank you for joining us. what do you remember most about that historic time in september, right after lehman failed, the fear, the panic, so many people believed the american financial system might just self-destruct. >> it was scary. it wasn't just lehman brother

new say you butted heads with timothy geithner who was the head of the new york fed and now the treasury secretary. what was the problem between the two of you? >> it really was a basic philosophically difference. he said we'll take care of the institution, take care of the problem. i wanted pain and accountability. i wanted them to take losses. i wanted their shareholders and creditor, people who funded them and invested in them to take more of the risk. and it was such a fundamental disagreement, a fundamental clash of philosophies and world views. >> so he resisted you on this point? >> yeah. pretty much. i think there was a huge disagreement whether bond holders should be required to take some losses. you need market discipline. there were serious mistakes being made. if you reward people they will do it again. that's the bottom line problem. >> obviously this book has some critics because there are those with the administration who say sheila bair is speaking out now. they wonder why didn't you speak out more heavily when these decisions were being made. >> well i think i did. i was

she take direct aim at timothy geithner.ichelle and more on "the fast half". >>> currency traders closely watching spain and greece in connection to the activity in the euro. joining us to discuss this and more, jen nordvig. good to have on you the phone today. mario draghi defending what he's doing when it comes to the euro and monetary policy over there. what do you think of that and what does it mean for the euro? >> well, i was in germany over the week he could. i thi i think he is getting more and more support. he has managed to reduce the tail risk in the system, no doubt about it, but the uncertainty is about when spain is actually going to apply for help. and that is taking longer than many were hoping for. >> that is the uncertainty. you have no doubt that they will. the uncertainty is about when. >> that's right. and i think they will eventually apply in the next one to two months. therefore, for my perspective, this is something that matters for short run of volatility but this issue is not the key driver of the l

in the book, treasury secretary timothy geithner argues with the president of the him in in these discussions -- vehemently that if we do not straighten this out in the short run, hopefully the long run, that the impact on everyone is going to be giant. it will affect confidence. it will affect employment levels. anyone who has any money or anticipates getting any money that they have invested in their home, bank account come any kind of investment is going to be impacted by all of this. -- bank account, at any kind of investment, is going to be impacted. we are living on the sharp edge of a razor blade. this all explodes. not this week but in two, three, four months after the election. if there is no fix, we are really in trouble. host: first cannonballs and press -- erskine bowles and alice simpson were on "meet the press." ersking bowles was asked what is next. here is what he had to say. [video clip] >> i'm frightened that we are going to meet this fiscal cliff and see this debt to country. it could lead to very horrible economic results. i met with the president. >> you took the ax. >> i

remember timothy geithner said there would be no more lehmans? doesn't look like there is going to be. second we've got the china issue. i'm going to have more to say about the people's republic later in the show. the fear is china has been on the verge of a economic collapse and will take the rest of the world with it. i think china is problematic, but i think it's a dealable problem, not something catastrophic because the chinese central bank can cut interest rates about 30 times before it runs out of room to ignite that economy. unlike europe and the united states, the policy makers in china have plenty of room to maneuver, and that fact seems to be endlessly forgotten by the bears who point this out daily. sure, many of their banks are bankrupt. i'm not saying that i don't trust -- hey, they built a ton of bridges and tunnels to nowhere, but never underestimate the problem-solving power of cash on the balance sheet. and china's got cash up the yazoo if not the yangtze for good measure. then there is the united states. here we have the fiscal

the the three from this whole group is you think timothy geithner was not doing the job as it was laid out for him to do that he took sides. >> right. >> that he protected citigroup over other financial institutions? >> right. right. well, i do -- again, i think he always thought he was doing what was right, but at the end, he looked at citigroup and helping citigroup is hedge the broader -- like the old joke, you know what's good for gm is good for the usa, secretary of defense wilson in the '50s, getting himself in trouble there. what is good for citigroup is going to be good for the country and that's just not true. they are not the same. they are not the same as all. looking back, again, this is a retrospective, but i mean, even then, i was advocating much more forcefully for troubled asset release, get the bad assets off the bank balance sheets, restructure the loans, we never really ripped that band-aid off and tackled it and there's stale lot of bad loans and assets sitting there. weaker institutions, like citi, you know, they don't do a lot to help economy, they sit there and n

timothy geithner and the newly created financial stability oversight council flexes their muscles now in a letter. geithner saying the sec failed to act on money market fund industry reform last month. the sec was tied up. geithner now writing this letter to members of the fsoc urging them to take action on money market funds. he says, further reform to the money market fund industry are essential for financial stability. also, citing the financial crisis of 2008 and 2009 saying that it demonstrated money markets are susceptible to runs and can be a source of financial instability with serious implications for the broader economy. this is a new tactic we're seeing in washington now with the fsoc, which was created by da dodd frank. now able to step in and pick up where the sec left off. it gives the council the authority to address risks to the financial stability if an agency failed to do so. so maria, interesting move here by treasury secretary tim geithner. back to you. >> all right. thank you so much. i want to bring you to breaking news on research in motion. r.i.m. stock on the

new say you butted heads with timothy geithner who was the head of the new york fed and now the treasury secretary. what was the problem between the two of you? >> it really was a basic philosophically difference. he said we'll take care of the institution, take care of the problem. i wanted pain and accountability. i wanted them to take losses. i wanted their shareholders and creditor, people who funded them and invested in them to take more of the risk. and it was such a fundamental disagreement, a fundamental clash of philosophies and world views. >> so he resisted you on this point? >> yeah. pretty much. i think there was a huge disagreement whether bond holders should be required to take some losses. you need market discipline. there were serious mistakes being made. if you reward people they will do it again. that's the bottom line problem. >> obviously this book has some critics because there are those with the administration who say sheila bair is speaking out now. they wonder why didn't you speak out more heavily when these decisions were being made. >> well i think i did. i was

it seems like they put wall street in charge of -- >> the secretary was -- timothy geithner wasn't areet firm but obviously, bob ruben was his mentor and he learned a lot of his world perspective from bob ruben, head of the new york fed. the new york fed is a big financial institution, a quasigovernmental one, all be t but it does -- i think is reflective of somewhat of a mind set, large institutions are the center of our universe, the old saying what is good for the g; good for the usa what is good for city group good for the usa there is this mindset if you help them and make them profitable, it will help everybody else and they are two very different things. >> shelia, one thing about the book is a lot of criticism of tim geithner and the organizing principle of the book your philosophy versus his. seems lining you let president off the hook, tend of the day president obama hired this guy, he stuck with him at every turn, people said they should get rid of tim geithner, why isn't the criticism of president obama? >> well, you know, i don't know. i think we had a relatively young p

my question is about secretary of treasury and timothy geithner. he not have a problem in the past with his own taxes being late or not paying them? i think finally did pay. i just wondered what our justification could be for having someone like this as the head of our treasury. if i'm wrong, could you please clarify. guest: i am not aware of whether that is the case or not. host: we will move on. the republican line in pennsylvania with mark. caller: yes, i was watching a show where it said that our dollar buys a very minute amount of gold. i was wondering if the government watching the gold prices? what happens if the dollar can only buy microscopic particles of gold < will we have runs on banks or will it collapse a system? and does our government still pay our debts by holding we did rolling gold back and forth at the treasury? guest: no, not to my knowledge. the government does have gold reserves that it maintains. we have not really looked at the impact of using or not using gold. the money that is used, besides taxes, to pay for our expendit

in the book, treasury secretary timothy geithner argues with the president of the him in in these discussions- vehemently that if we do not straighten this out in the short run, hopefully the long run, that the impact on everyone is going to be giant. it will affect confidence. it will affect employment levels. anyone who has any money or anticipates getting any money that they have invested in their home, bank account come any kind of investment is going to be impacted by all of this. -- bank account, at any kind of investment, is going to be impacted. we are living on the sharp edge of a razor blade. this all explodes. not this week but in two, three, four months after the election. if there is no fix, we are really in trouble. host: first cannonballs and alice simpson were on "meet the press -- erskine bowles and alice simpson were on "meet the press." [video clip] >> i'm frightened that we are going to meet this fiscal cliff and see this debt to country. it could lead to very horrible economic results. i met with the president. >> you took the ax. >> i did. >> we were not looking to do th

. >> timothy geithner, i don't know if anybody remembers, the vociferous nature with which he said if you questioned his stress test, listen, this is 1932 numbers. you don't know anything about what we're doing. yeah. turned out he was completely right. >> we got the expletive. >> this is a family oriented show because the kids are all home watching us instead of going to show. >> all right. how do you end the third quarter on a profitable note? find out from cramer. his mad dash is next. meet the head of the blackberry mak maker's fan club. let's take a look at futures as we head to the last trading session of the week and for the quarter looking at a down open. with the fidelity stock screener, you can try strategies from independent experts and see what criteria they use. such as a 5% yield on dividend-paying stocks. then you can customize the strategies and narrow down to exactly those stocks you want to follow. i'm mark allen of fidelity investments. the expert strategies feature is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when y

in the book, treasury secretary timothy geithner argues with the president of the him in in these discussions -- vehemently that if we do not straighten this out in the short run, hopefully the long run, that the impact on everyone is going to be giant. it will affect confidence. it will affect employment levels. anyone who has any money or anticipates getting any money that they have invested in their home, bank account come any kind of investment is going to be impacted by all of this. -- bank account, at any kind of investment, is going to be impacted. we are living on the sharp edge of a razor blade. this all explodes. not this week but in two, three, four months after the election. if there is no fix, we are really in trouble. host: first cannonballs and alice simpson were on "meet the press -- erskine bowles and alice simpson were on "meet the press." [video clip] >> i'm frightened that we are going to meet this fiscal cliff and see this debt to country. it could lead to very horrible economic results. i met with the president. >> you took the ax. >> i did. >> we were not looking to do

is that because your economic team is timothy geithner. should obama get this question, how should he respond? >> there is a lot of questions about who has come in with obama to try to reform wall street and prevent this from happening again. tim geithner was on wall street. he was part of the federal government, federal reserve. he came from wall street. >> jennifer: are you answering as donnie now? >> i'm setting up why that's a problem for the president. the president, what he obviously has to say is pretty straightforward. one is that when the stock market goes up which it has dramatically. i think from more than 50% almost 50% since obama took office. that's helping our retirement accounts to recover. everyone's 401(k) is in a better place than it was. the other thing that a president has to remind people of is that he set up new reforms that republicans want to take away to keep -- too big to fail from happening again. the banks took all of the risks and went to the american people and said bail is out. that's no longer possible beca