jean claude trichet is returning as ecb's president.t's been forced to buy up tens of billions in sovereign debt trying to deal with the crisis that few anticipated. in a recent interview, trichet said the eu may need to amend its treaties so bad behavior can be punished. >> for tomorrow and the day after tomorrow, you have to, in my opinion, have a vision of what should be done. that is my own personal sentiment. it's not the sentiment of the institution, but my own sentiment is that we have to go further and visit if necessary a change of the treaty to permit the governance of europe to put -- because a particular country would not behave properly, refused to behave properly, not apply recommendation. refuse one time, two time the recommendation, then we must have the capacity from the center to impose decision otherwise it puts into question the stability of the whole. >> you can see cnn's entire interview with jean claude trichet a few hours from now, early on tuesday if you're watching in asia, in a very internal edition of "quest

outgoing ecb president jean- claude trichet made firm on interest rates. >> it was jean-claude trichet'spolicy -- last policy meeting. he warned of an impending threats from the debt crisis. there are two new injections of all trips team funding -- injections of much needed funding. >> we urge the banks to do all that is necessary to reinforce their balance sheets, to retain earnings, to ensure moderation in enumeration and to return to the market to strengthen the capital braces. >> his words reflect his concern over a possible banking crisis. many banks are in an urgent need for a boost as risks increase. >> the economic outlook is subject to particularly high uncertainty and intensified downside risks. >> he left interest rates at 1 and 1/2% due to a recent surge in inflation. he is stepping down on the midst of what he called the worst economic crisis since world war ii. his successor is not likely to have an easy time of it. >> the european commission is proposing a coordinated recapitalization of the region's banks. this came after france and belgium agreed to bail out dexia, the f

. >> this was a jean-claude trichet/press conference as the president of the european central bank. retirement celebration it was not. rather, a hard-headed look at mounting problems. interest rates remained at the same, but he signaled concern about slowing economies, even as inflation remains above the ecb's targets. >> the government decided to keep the key ecb interest rates unchanged. this confirms our view that inflation is likely to stay above 2% in the months ahead or to decline. conditions are likely to dampen the pace of economic growth in the second half of the year. >> he said the ecb would take measures to lend to banks that might find themselves in difficulty because they have lent to greece or other countries with public finances in trouble. analysts are already concerned at times that banks are increasingly loath to lend, and finding it harder to raise money. >> banks are now really turning the tap off new credit. this would precipitate some very negative development for years to come. >> chancellor angela merkel, the heads of the world bank and the international mon

germany's banking capital to attend a farewell ceremony for outgoing ecb president, jean- claude trichet. the event has turned into a crisis meeting. chancellor merkel says there is no time to lose. >> if we want to turn the crisis around, if we are determined to promote europe, we must grasp this as a chance and be prepared to act and conventionally and fast. i believe that the topic of a treaty amendment should be on the table. >> the two leaders are expected to discuss ways of restoring confidence in the financial market. one idea is to leverage the eurozone rescue fund, pushing it to over 2 trillion euros. the fund would be used to guarantee bank losses and prevent contagions two bigger european economies. with the occupied wall street protests have been spread to frankfurt, pressure is mounting on the german pressure. these protesters hope that she will have a solution to the spiraling prices. >> we are looking ahead. the head economist told us about how leveraging works and what advantages it has for the bailout program. this is similar to a joint move made by the u.s. treasury dep

. >> this was the jean-claude trichet is last press conference as the president of the european central bank. a retirement celebration it was not. rather, a hard-headed look at mounting problems. interest rates remain the same. he signaled concern about slowing economies, even as inflation remains above the ecb targets. >> inflation has been elevated and incoming information has confirmed our view that inflation is likely to stay above 2%. ongoing tensions in financial markets are likely to dampen the pace of economic growth in the whole area for the second half of the year. >> he said the ecb would take measures to lend to banks that might find themselves in difficulties because they have lent to greece or other countries with public finances in trouble. analysts are already concerned that banks are increasingly close to land. they're finding it harder to raise money. >> banks are turning the tap off new credit. this would precipitate some very negative news for the economy. >> in berlin, the chancellor merkel met with heads of the world bank and the imf. she urged banks to raise money

. >> it was shawn country should -- jean-claude trichet's last appearance before retiring. he had a warning. the sovereign debt crisis could spread and destabilize the european economy. one key problem is the lack of transparency in financial markets. this makes it hard to predict not gone effects. it is making american banks and insurers nervous. u.s. banks hold a relatively small exposure, but european banks decided to reinsure their investments in u.s. banks using a tool called credit defaults swaps. now those banks hold nearly 25 billion euros agree that. most of the major financial services funds in the u.s. are involved -- goldman sachs, jpmorgan, and bank of america, to name just three. the details of who injured how much money in those institutions remain unclear. bank of america looks to face the biggest blow. it was already hit hard by the financial crisis in 2008. it is slashing tens of thousands of jobs. if the bank of america collapsed, it would send shock waves through the financial sector at a time when the u.s. is battling its own debt problems and the ameri

on the day jean-claude trichet takes a bow with a few words of his opinion and how everyone has coped. >> he's been defending his position as the president of the european central bank and the way the e.c.b. handled or is handling the sovereign debt crisis. after eight years he is stepping down and today there will be focus on the legacy that he leaves behind. it is a rather interesting story because the first half of his reign he was the euro zone saw some credible growth. inflation was moderate, which is the central bank or role of a central bank to keep inflation under control. also during the first half the financial system was stable. no doubt that will be overshadowed with the sovereign debt crisis. all eyes are on the italian who has been viewed with high regard how he took charge of the italian central banks. it will be interesting to see if keeps the eurozone on the same path. > we are quick to say he is italian when there is something they don't like. >> you have a example of a bit a casualty. >> we will touch on this on the world business report but m.s. global a u.s. finan

course which are thought to be extremely painful for the population now we've also seen john claude trichet saying that he does expect those governments to come through with those cuts in order to balance this budget but there is a meeting today and tomorrow of the world's leading finance ministers as they try to tackle this crisis has been in portugal. more just be too painful for the people who take these austerity measures my colleague has spoken to some of those who are victims of the crisis i'm afraid i'm afraid of the future i'm afraid that. things are going to be like they are in greece right now people in these matters they are not going to be able to to have a good life to have at least a decent. louche is an active member of the portuguese indignados delish movement its participants believe the government is hell bent on pleasing the nation powerful and ignores the needs of the people they have to actually they have to realize that we are not there we are not we are not going to take bad for them and we want a problem and people are so i'm pointing out it's happening and it's happ

which are thought to be extremely painful for the population now we've also seen the joan claude trichet saying that he does expect those governments to come through with those cuts in order to balance his budget there is a meeting today and tomorrow of the world's leading finance ministers as they try to tackle this crisis that has been in portugal might just be too painful for the people to take these austerity measures michel. i'm afraid i'm afraid i'm afraid that. lucia is in the active member of the portuguese indignados delish and its participants believe the government is hell bent on our full and ignores the needs of the people. we are. it's happening. here. the worst rate of unemployment in thirty years at over twelve percent rising taxes and falling wages are the reality of portugal's a bleak present situation things are so bad people are no making comparisons with cataclysmic periods in their history and looking to them for inspiration in a few centuries ago was a situation similar to its present state. one. right there managed to pull the country out of the crisis three hundr

called on national governments to now do their bit to ease the debt burden its president jean-claude trichet spoke ahead of a key meeting of world finance ministers gathered in paris to hammer out solutions to the crisis europe correspondent daniel bushell has more. patience of european central bank does seem to be running out it says that it can't really take the whole burden on itself it really needs the governments to come through the european governments come through and take some action because the latest come true problems with spain its problems with its solidarity a failure of solidarity is how the downgrade of its rating again which is going to make it even harder for it to raise money and pay off its debts we're expecting protests tomorrow perhaps the biggest protests so far over the measures in spain now russia's prime minister has come out and said that europe's governments could solve this problem if they wanted to. the crisis is more of a political than a financial issue according to different estimates between one and one and a trillion dollars is needed the number is big but

host: we continue our discussion regarding unemployment with trichet in denver who just lost a job. -trisha in denver who just lost a job. caller: it is patricia. it has been more than six months. i lost my job in may 2010, and i have been on the job hunt ever since then and have not been able to locate a job. host: what kind of job are you looking for? why has it been so hard to look for -- to find one? caller: jobs a gone overseas to the philippines. i was working in the health-care field. even though i have a doctorate in criminal justice, it is hard to find a job in that field as well. host: to see anything coming from washington on the federal level or something in colorado that will help you find working get back to -- help you find work? caller: i hope so. i hope that president obama's plan, that he has in place, hopefully it will help us get a job or bring the jobs back from overseas. host: david on our line for those who have just found a job, calling from sarasota, florida, go ahead. caller: thank you for c-span. i have lost a job and gained a job. i work for a day laborer c

. >> fire trichet with the colonel stated having lives -- i appreciate what the colonel stated. we are now getting to the point where we are cutting active-duty force in both the army and the marine corps. how does that play into these decisions? we are already trying to downsize the force on purpose, and now we are talking about changing the retirement program, which might cause an additional accidents. >> 19 -- exodus. >> when i was indicating strategic, we are considering the force drawdown, and also acknowledging that in addition to keeping pace with our current forces we will be recruiting new force is going forward. you mentioned specific capabilities. that is part of the area where we know our forces will rely on new technologies and we may have new requirements for recruiting those folks. so, as we are looking at what this course looks like, what are the attributes, which just want to make sure that our overall compensation package, of which retirement is one, is the right combination. that is why we say there is no decision. as the secretary has said several times, we m

>> trichet there would have the penalties. demonstrate you were using this. it will be whether you use an option are first refusal. the big issue is the cost. >> you do it to get to your complete coverage over time. it'll take a multi-year process. >> no. on senator rockefeller's question about fairness, he asks about fairness and have you define that. you mentioned accountability. does the accountability in your mind include the quality of the service that is being provided? is accountability just a onetime expenditure? >> under the world, accountability is every year and every month on the quality of our service and how quickly we put things back when they go down. there are bundling obligations. we live in a world where we identify the quality of our service all the time. the issue that is the unknown is the ongoing >> mr. jones, let me ask you a question about the mandatory pre-emption that is in the abc plan. you talk about how consumers in washington state would be heard by that. give the committee a few examples of how you think that might actually hur