were either underwritten by goldman sachs or were goldman sachs' trading division. and none of that was revealed at the time despite the fact that key officers from goldman sachs who were involved in many steps of the bailout process. >> though goldman sacks says it had already insured itself against losing the $30 billion, the rescue of a.i.g. was critical to its future. >> had a.i.g. gone into bankruptcy, had the fed and treasury not stepped in, i think the effects for goldman sachs and for other american participants in that framework and in those circumstanc would have been very, very adverse. >> could have been fatal for goldman sachs? >> i wouldn't say fatal. no, sir. >> u.s. banks spend about half a billion dollars a year lobbying u.s. politicians, but goldman is perceived as having the biggest political clout. not only did paulson go straight to the treasury, his key deputies were also golan men. under barack obama, former goldman boss and clinton treasury secretary robert ruin rubin is an economic advisor and former goldman lobbyist is now the chief of staf

sachs-- tonight, how the firm used taxpayer money to make more money. >> goldman sachs recently was borrowing between 100 to 150 basis points-- that's between one percentage point and 1.5 percentage points above what the government was borrowing-- in the aftermath of the greatest financial crisis since world war ii. that's incredible. it makes no sense. >> lehrer: then comes a preview of the winter olympics with reporter christine brennan in vancouver, where a training run proved deadly for one athlete today. >> lehrer: and the grit and determination of u .s. olympic snowboarder chris klug, taking to the slopes after receiving someone else's liver. >> they told me that one day i feeded a liver transplant. i will never forget, i was looking around, who are you talking to, you can't possibly be talking to me. i feel like a million bucks. >> lehrer: that's all ahead on tonight's "pbs newshour". major funding for the pbs newshour is provided by: >> what the world needs now is energy. the energy to get the economy humming again. the energy to tackle challenges like climate change. what i

first, remember that goldman sachs is not on my watch. >> i understand that. >> goldman sachs and others have asked my advice in following the prescriptions i have laid out for the companies that are under my watch. i have, at the request of goldman sachs and others, urged them to take into account the very reality that you are pointing out. >> did they feel -- obviously, they have the choice to do what they want. they talked to -- their very existence owes to the people who are riding the bus and heading to work every day. did they feel it was idle funds in that when these small businesses that the people it will enable them to survive work that can top kick -- can't find credit because of the actions that were taken that it was inappropriate for these bonuses to be given? >i don't know what that discussion took place. >> i don't know if i am the right person to ask about what they felt were thought. i do know that goldman sachs, for example, has tried somewhat to accommodate the principles i have enunciated with my office with no cash bonuses, with bonuses that will be paid in stock ov

goldman sachs didn't get to become goldman sachs because they're bad traders. of course, they know more than the other guys, they're packaging the goods, it's their book, they know more about it than anyone. and if they're selling it, well you probably don't want to be a buyer. i want to buy things from people who i know more than, not people who are creating these instruments for me to buy. >> reporter: but pension funds don't bring in the math whizzes, the quants, the people that goldman sachs has, they're no match for goldman sachs salespeople or traders. >> generally speaking they aren't. so what is a pension fund doing involved in these securities? >> reporter: even if you think macke and blankfein provide a reasoned defense, however, one huge final question remains: has the firm been making record profits with your and my money? we'll look at that next time. >> woodruff: and to the record- breaking snow storm-- ray suarez has the clean-up story. >> suarez: sunrise brought the scale of the big dig into stark, snowy relief. from washington, through baltimor

-- goldman sachs. he worked at-- so investments, mergers lapook i.t. the listen the layout in the book callista bowls clients there were people and lead business before the clinton administration so what was emanuel's beil. for too smart, very hard-working and very effective but $1.62 million and half years is what he made. i have got to imagine his real skeel there was no wing who to call in the clinton white house in getting done what he wanted to get done. he makes $1.6 million by milking his former administration contact and uses that money to run for congress and now he's in the obama white house. so the revolving door is still spinning. there is a lobbyist now pew is an ex-obama administration official. already, less than one year in somebody has gone into the obama administration, left in becoming a lobbyist so this is damaging because anything that strengthens, that gives more power to the guys that can afford lobbyists in effect takes political power away from us and also gives perverse incent

followed by goldman sachs. you said the economy is in crisis and this year goldman sachs would get $16 billion of bonus payments about $500,000 per employee. this is difficult to understand why there wasn't at first the desire to have transparency in regards to the counter per transaction. would you address that please? >> i'm not sure if he were here for the conversation -- >> i've been here the entire time. .. >> thank you very much, mr. chairman. and secretary, mr. secretary. let me just ask, if you had to do it again, to do it all over, would you change any of the decisions that you've made in the fall of 2008 to rescue aig and pay the counterparty? >> congressman, again, i think about this a lot. and one the greatest things of our country, people will be able to look back and come to their own judges. but i am very confident that we made the best of a set of terrible choices, that there were no better alternatives. we did not have the option of bankruptcy, we did not have the option of default, selected ha

the government gave goldman sachs more than goldman sachs had any right to expect but at the same time giving no financial relief to millions of americans facing the foreclosure crisis and that-- that doesn't illustrate what the new york fed was working for who would reeves working for i don't know what does. seabee you may respond and then my time has expired. >> congressman that is not true and it is unfair to the public servants-- >> what is not true? >> what you just said. it is not true the actions we took with aig were for the benefit of anybody but the millions of americans who at that point were suffering from the worst financial crisis since the great depression. the only way to help reduce and protect that damage was to fix the system and prevent catastrophic failure. that is the only motive that underpinnings by the government. >> my time has expired in the chair recognizes mr. duncan. >> thank you mr. chairman. mr. secretary you talked about looking at these events with the benefit of hindsight. two men who did were peter boone, who is a researcher at the london school of e

goldman sachs and jpmorgan who i withheld endorsement of that i have known from my travel trust and i have wanted them ghettobly the rated. both of which soared today. i think the pattern is at last becoming visible to the spart money. that's why i'm making it visible 0 to you. i'm telling you this two-day rally is really about the banks, about goldman, about jpmorgan because the president's rants on banks are from now on full of sound and fury but will signify nothing when it comes to earnings per share and in the end that's what matter. the investment banks are the latest sector on an obama corporate enemies list. this gives you a chance to make money whenever the president bashes an industry and knocks down the stocks giving them a real beatdown, the business because obama and democrats don't have the clout in congress to come anything to pass anything. obama can wreck stocks when the company first comes into his crosshairs. long-term he's got to deal congress which can't pass anything at all. here's the pats tern in detail, the life cycle of what i call the catch and release i've

goldman sachs and jpmorgan who i withheld comment on, and endorsement of that i have known from my trust, and i have watched them get obliterated. both of which soared today. i think the pattern is at last becoming visible to the spart money. that's why i'm making it visible to you. i'm telling you this two-day rally is really about the banks, about goldman, about jpmorgan not just because of the turn in housing, because the president's rants on banks are from now on full of sound and fury but will signify nothing when it comes to earnings per share and in the end that's what matter. the investment banks are the latest sector on an obama corporate enemies list. this pattern makes you get a chance to make money whenever the president bashes an industry and knocks down the stocks giving them a real beatdown, the business because obama and democrats don't have the clout in congress to pass anything that comes close to wall street's fierce. obama can wreck stocks when the company first comes into his crosshairs. we're cedeing that. long-term he's got to deal congress which can't pass anythin

that is why goldman sachs are backing the wall street regulations. they will not end up as initially proposed, but the adm of executive cap on pay or other wall street regulations common goldman sachs has publicly expressed reform and a very close in working with obama on that and have a great access to the west wing and clinton's west wing and probably reagan going back. it is the quintessential special interests. barack obama raise more money from goldman sachs and anybody has raised from any corporation since campaign finance laws were changed. they were the number one beneficiary for the wall street bailout. the final law is the confidence game. this is the idea government can give people a false confidence in what other people are selling. why are we regulating the financial sector? we need to restore investor confidence. talk gain of about confidence half of the democrats talk of restoring confidence but i believe it is the job of the company or the broker to restore the confidence. they should not use your money to convince you it is okay to u

you're saying if, in fact, morgan stanley went down it would have been huge pressure on goldman sachs and they probably would have gone down. >> yeah. i'm saying that sure it was a risk. i thought during that week where investors were questioning the vishlt of the investment banking model both investment banks were in jpardy the way things had been going had been serial failures, right? and so there was more immediate pressure on morgan stanley, but we were... i needed to be in regular touch with both and all market participants, but i needed to be in touch with both of those investment banks abo what was happening there and in the markets around them. >> rose: one of the dramatic moments in this book and in andrew ross sorkin's book, it is this moment in which we are now talking about. and part of the untold story-- and everybody saw it from their own perspective where they had shared moments-- is the effort that the secretary of the treasury made to try to help morgan stanley find more capital. yes? >> we did everything we could to be helpful. to stabilize. >> rose: what did you do?

an investment bank like goldman sachs which often bets on its house account enjoys both sides of the trade, both selling the securities and the vehicles to the investor or the government or the company on the front end and being able to bet on the down end. you know, for example, this happened with real estate. it helped swell subprime and then it bet that housing would collapse very successfully. in this case you have collateralized... c .d.s., collateralized debt swaps what they're effectively insurance policies that have to be taken out on greek's credit worthiness and it makes us especially prohibitive for greece to refinance its debt. it needs to raise about $25... 25 billion euros to refinance its debt. but if borrowers out there being r being charged almost use yours you amounts to go out there and be an active participant in greek debt they won't do it and they'll take it out of greece's hide and say "you need to sweeten the pot and pay us a much higher interest rates for us to pay you the time of day." the argument here is that goldman sachs is participating in that market a

you're saying if, in fact, morgan stanley went down it would have been huge pressure on goldman sachs and they probably would have gone down. >> yeah. i'm saying that sure it was a risk. i thought during that week where investors were questioning the vishlt of the investment banking model both investment banks were in jeopardy the way things had been going had been serial failures, right? and so there was more immediate pressure on morgan stanley, but we were... i needed to be in regular touch with both and all market participants, but i needed to be in touch with both of those investment banks about what was happening there and in the markets around them. >> rose: one of the dramatic moments in this book and in andrew ross sorkin's book, it is this moment in which we are now talking about. and part of the untold story-- and everybody saw it from their own perspective where they had shared moments-- is the effort that the secretary of the treasury made to try to help morgan stanley find more capital. yes? >> we did everything we could to be helpful. to stabilize. >> rose: what did you

at went goldman sachs. it went to bank of america. the idea is that it trickles down at this is an idea the was blocked when the first george bush talked about it but obama full force signed on to the bailout's so people are angry people with economic power and people with political power are clearly on the same side and a regular taxpayers and small businesses are getting left out to be on the right to see this manifesting itself in a tea party movement which has a lot of good elements of the media like a lot of the battlements in there. one of the things i would like to see more from the tea party types is not just railing against one party because both parties are spending too much and not just to real against big government but big business which is lobbying for and pushing this big government. but another thing i think is hopeful and again i am not a partisan republican, i voted for republican presidential candidates i think zero times. yet. no way the vote for bob dole in '96 because i was a college freshman and didn't know any

goldman sachs just upgraded it to their conviction buy list today. >> tom: you were ahead of goldman sachs on the pick. you like the market itself, this being the nasdaq, is this a volume play on trading volume? >> it is, absolutely, especially because nasdaq has such a presence internationally in europe, for example, the majority of refuse enoughs are coming from europe, options, derivatives, and i love their squo, he's a real leader and understands technology as a tool for making money and improving margins. >> tom: and yahoo, we mentioned earlier that yahoo is selling hot jobs to monster, 225 million dollars. do you support that kind of diversification that asset sale? >> absolutely, especially because of the timing in this market with unemployment. the real unemployment being close to 20%. but yahoo has incredible value in china. if you look at some of the parts, yahoo is very under valued and it a company that reaches 10 to 14% of every single internet user. >> tom: why yahoo over google? >> it's a value play, and who knows who yahoo will continue to hook up with. >> tom: we las

goldman sachs, look at the 195 level a couple of among thes ago. look at what the stock has done since we've been trying to warn folks. you don't have to play defense. things go down faster than they go up. we said it last halftime report and you can make more money on the way down and you have to learn how to skate backwards as well as forward, mel. let's see how backward we are going go. carter worth, let's head to the chart of the day and talk about how much damage you see ahead. >> think the most important point is we desperately need this to be happening. that uncorrected eight months, nine months, continue months in a row off the march low. this is what you need in order to keep things somewhat healthy. so 1150 is our high, 1150 spot 4-5 about two weeks ago and we're looking at 1050 and we think that will be the point at which there will be some buying interest that emerges, if you will, and that will be enough of a correction, about 9% to, let's say, allow for things to stabilize and we're not in the camp that will cut dramatically below tha

people are running to those and the capital markets play and you don't want to buy goldman sachs? how about morgan stanley? morgan stanley is not having the reputation problems that goldman sachs is, and a great way to get exposure. >> you were given the assignment of aig and you said stay clear of this thing because things are so incredibly murky and look at where we are today. i mean, if this company can't give the proper guidance to the treasury sect a couple of weeks ago, i don't know, as a taxpayer, as a holder of this company and in essence, i'm doubtful. >> right. we've got 80% of a stake in this which is a big stake right now, and when you look at that short interest, i mean, there's a lot of reasons right now that i don't think we've seen anything from today's data that has made it less murky. if anything it's more murky, but that doesn't mean you can't trade it. joe talks about what are some of the trades. the volatility right now has come back. this is not a stock that people can short because they just can't borrow it and there is a very large short interest that was a

he's letting goldman sachs out of the presidential dog pound. when you say you like financials do you like the big ones, like the goldman sachs, or i guess there could even be more of an investment banking or a henley fund sort of type of play or do you like the regionals? >> actually we like them both. what we do is really just waeigt the s&p sector so since it's cap weighted we'll prefer the larger over the smaller. not with standing this proposal, the volcker rule or whatever you want to call it maybe there will be a shuffling. maybe these companies can actually readjust and still maintain a holding company with perhaps a regulated sub and unregulated sub but nonetheless the s&p composition of finances probably going to remain unchanged and, you know, ultimately will be unleashed so to speak on the unregulated side. so i would say all in all i tend to agree with jay somewhat on this. i think we'll find that the year is going to be front loaded. we're going to see almost a mirror image of last year and we're going to get a nice runup for the f

now goldman sachs seems to feel bad about this. it wants to donate $500 million to small businesses. what kind of three markets do we have been small businesses have to depend on a rich company's treating it as a hobby in order to get the capitol financing. but this in fact has not been a failure of three markets. the past 25 years are the stories of what happens when the government does not understand its proper role in the free markets and that is to provide a level predictable consistent system of prudent regulation so that markets can discipline themselves without causing unacceptable harm and destruction to the broad economy. we know how to do this. we did this for 50 years more or less well from the 1930's until the 1980's. how did we learn how to do this? we learned lessons of the 1920's the twenties were wonderful innovative decades as amity noted in her own work. the problem with the twenties as it relates to financial markets is that innovation creates optimism. optimism creates excess optimism and when you have financial

coach and nordstrom cut to neutral from buy at goldman sachs this morning each down about 3%. they see multiple compression in that group. gap, though, raised to buy from hold at citigroup. it's up 2% on its way to 24. they say the 15% drop since november is a buying opportunity and mastercard is down but at least two firms have come out and said it looks attractive after falling 13% in the past three sessions. it's at a three-month low. mark, back to you. >> thank you very much, matt nesto. erin? >> so mary, these jamie dimon numbers if you look at the options you could get a pay package up to $32 million. >> the way it's been explained to me, erin, is first of all you have restricted stock worth 7.6 million. that's what we told you. if you take a look at his options according to people close to the company what you want to do on the method is basically divide the current stock price by three and then you multiply it by the number of options. again, 563 million, which gives you basically stock options worth 8.5 million so essentially the bonus for mr. dimon this year or excus

versus exxon mobil, versus goldman sachs, et cetera. and actually, i think that what is good about this situation is that we're in an age of information. where very few things stay secret very long. so, if exxon mobil starts doing all sorts of stuff, its shareholders are going to be pissed off. the people who buy gas at the pump are going to be mad, et cetera. i don't... i predict that we will not see this deluge, increased deluge of corporate money directly into campaign speech. >> moyers: let me ask a specific question-- this is from a reporter ryan grim, who's reporting on speaker pelosi setting up a task force to try to counter the supreme court decision. "citizens united allows corporations to spend money directly from their general treasury." that's the truth. "meaning goldman sachs could decide to make a few billion less in loans, and instead spend it electing members of congress. which might be a much more lucrative investment. the kind of money that goldman can find in its couch cushions could dramatically alter a house race, i

jpmorgan, goldman sachs as well. only cisco is the only dow component positive territory. john chambers, bullish. the only sector that had anything more than a random green arrow was retail. macies and gap are two examples. tomorrow we do focus on euro again. our question to you, did we price into the worst case scenarios today? perhaps, just perhaps this is a rare case because lately it's been the on sichlt we might be selling the rumor, perhaps buying the noose. >> wouldn't that be nice. wouldn't that be nice? there is a benchmark revision coming but we all know about that. 8,505 jobs will be replaced. thank you, brian shactman. appreciate it very much. let's bring in our investors. we have zachary karabell, we have jim of macro portfolio, two of the best in the business to help us this evening. before we start our discussion, i want to play a clip from john chambers of cisco, one of america's best businessman who really is an optimist about the economy. let's take a listen, if we have it. >> what we saw in our numbers was an undeniable across-the-board dramatic improvem

joining us is the goldman sachs chief economist. jan, thanks for joining us. a lot of uncertainty in economics. it's been snowing outside. and it's been snowing a lot. and this affects the data. it also affects maybe what's going to happen with the recovery in coming months. what's your gauge of it? >> it is going to affect the data. it's going to affect next week's payroll performance jum bers. and it's going to affect the housing data and may already be one reason why the housing data has been as weak as it's been. >> how will it affect the payroll? have you been bringing down your numbers because of the weather we've had? >> so we don't have an estimate out yet, but we do think, you know, something like a triple-digit number. just from the weather affect. of course, lots of other things going on is certainly very plausible. >> jan, you've been introducing a paper here. you and a bunch of academics and wall street analysts came together to do a forecast on economic conditions. one thing you find is that things are getting worse when it comes to financial con

you look at names like goldman sachs. freeport-mcmoran, broken. all of these names have been pointing to the s&p going lower. then if you want clarity, go back to intel's release a couple of weeks ago. that stock piked and has been going lower ever since. good news, bad price action. the market has been wanting to tell you that it's going to go down. and i would take the other side. you don't have to play defense. you play offense now. things go down faster than they go up. >> that's your favorite phrase of the day. tell us, guy, what would make you think we're headed higher? do you take a look at the same stocks that led us lower as the sort of canaries in the coal mine? >> yeah, now you're looking for the same capitulation on the upside, now you look for it on the down side. you didn't see it today. people are going to try to pick bottoms tomorrow. i think it's got a lot of room left on the down side. we closed below a lot of technical levels. a lot of things broke, the 200-day moving average. people got complacent and that leads to bad things.

. >> let's look at specifically you have goldman sachs, morgan stanley, jpmorgan chase. they got bailout money, and their bonuses rose 31%. i wasn't great in math -- >> right. >> -- but explain to us how you get that much money. >> there's no other industry where if you fail as spectacularly as all these companies did before 2008, that you get the kind of raise that they got. what most people don't understand is this money is almost entirely taxpayer money. they were given a mountain of guaranties even aside from the t.a.r.p. which most people understand. for instance, goldman sachs and morgan stanley converted commercial bank status, they got to go bar from the fed at zero and then lend it back to the government at 3% or 4%, basically free money, and they're taking that money out of the pockets who are saving because interest rates are so low that ordinary people saving are being punished. >> i wish we had more time. we have to go back to that toyota hearing. there are other levels as to what the administration is doing and even john mccain says he was duped, misled abo

[laughter] the aig bailout with money going to goldman sachs, i wouldn't want to disclose that either. and making statements like we had to do it. it was in violation of law if we didn't pay them 100 cents on the dollar meanwhile in france they were selling these for less than 100 cents on the dollar. we got roiled. host could you point out it wasn't even treatment in the u.s. between different classes of interest which is to say 100 cents on the dollar but for the -- because there was a contract but he point out for the uaw working guice -- this could have to redo the contract. >> host: into concessions. new >> guest: double standard. so, not surprisingly, the financial markets have resisted doing the kinds of things that need to be done and the beginning of the conversation we talked about the risks of the too big to fail institutions. haven't done anything about that. >> host: let's talk about that because you talk about in the book but had been a glass stifel type. you explain it needs to be updated the ideal looking at the size and also looking at fire walls. so that for instance

government regulators are looking into how big banks and wall street firms, including goldman sachs, helped greece disguise the size of its budget deficits. the federal reserve is conducting its own investigation. and fed chairman ben bernanke told lawmakers at a senate banking hearing today that he's reviewing goldman's derivative swaps with greece. >> obviously, using these instruments in a way that intentionally destabilizes a company or a country is... is counterproductive, and i'm sure the s.e.c will be looking into that. we'll certainly be evaluating what we can learn from the activities of the holding companies that we supervise here in the u.s. >> susie: at that same hearing today, bernanke repeated the same message he told house lawmakers yesterday-- he does not plan to raise interest rates anytime soon. so, if interest rates remain at historically low levels for many more months, what does that mean for stock investors? suzanne pratt asked some market pros for their opinion on that topic. >> reporter: when federal reserve chairman ben bernanke talks, wall street always pays

goldman sachs says c.e.o. lloyd blankfein will get a $9 million all stock bonus for last year. >> susie: still ahead, the super bowl is just 48 hours away, and it's the hottest ticket in town. an inside look at the business of buying and selling tickets. >> tom: it seemed a lot worse than it was this week for shareholders. yes, the markets touched new lows for the year and it was the fourth straight week of losses, but for the week, the major indices were down less than 1%. the dow was up three sessions and down two. clearly, though, the losses on thursday hurt; it was the biggest single day sell-off since last april. still, the dow was down just 0.5% from a week ago. the losses were even smaller for tech stocks. the nasdaq slid just 0.03% thanks to the drop on thursday. the s&p 500 was the biggest loser of the three, down 0.07% this week. tech stocks were a stand-out today, helping pull the indices into positive territory. they were led by semiconductor and equipment stocks. the four biggest percentage gainer

goldman sachs helped contribute to the selling in financial stocks. the bank warned that the so- called volker rule would take out a chunk of its revenues. goldman stock drops 4% after managing director gerlad corrigan told congress that 10% of its net revenues could be at risk if it has to curb trading its own money and if it is banned from investing in hedge funds and private equity. mastercard pumped up its incentives and rebates in its last quarter and it worked, maybe too well. while earnings were up 23% from last year, the numbers still weren't good enough to meet expectations. operating expenses, though, were up thanks to a 25% jump in marketing. the stock reflected this disappointment, dropping to november lows on eight times average volume. burger king brought home the bacon in its fiscal second quarter with earnings up 13%. lower costs helped out as did its $1 cheeseburger promotion, which helped bring in more customers. burger king stock saw almost three times volume, bucking the down market today, gaining 3%. while burger king saw more cus

now we have unemployment and underemployment at 17 point* 5% by the bank goldman sachs says it has to pay at the 16 point* $5 billion worth of bonuses so its own employees do not leave firm. goldman seems to feel bad and it wants to donate 5 million to small businesses what kind of free markets do you have when they have to depend on rich companies treating it as a hobby in order to get capital financing? the past 25 years is a story when government does not understand the proper role in the free markets. that is to provide a reliable and consistent prudent regulation to discipline themselves without causing unacceptable harm and destruction to the economy. we did this for 50 years more or less from the 1930's through the 1980's. we learn the lessons of the 19 twenties. as a amity note to dinner of work, it relates to financial markets it creates optimism and optimism creates excess optimism and when you have financial markets that don't have any meaningful regulation other than monetary policy, borrowing against every last dollar project did decades into the future. you have layer up

that could feed into goldman sachs research. the rest, all of them are being tagged as the tail. >> patricia, thanks very much indeed for that. stephane had a late night flight back last night but he joins us now. eads and airbus once again in focus, stephane. >> absolutely. the commercial director of airbus generally indicated that the global air traffic will recover in 2010 with 25% to 5% of new orders coming from asia. he also indicated that airbus is going to increase its prices by approximately 6% in order to reflect the increasing price of raw material and also he repeated that european countries should reach soon an agreement on the a400m military aircraft and that would be a positive agreement. that's what generally he indicated this morning from singapore, ross. >> and we've seen construction still being pretty anemic. most places in the oecd countries, stephane. what is versi saying this morning? >> they announced a 4.6% decline in sales figures. the company managed to offset the decline of the construction sector in e

with that aig bella going to goldman sachs i would not want to do that either but making statements that it is a violation of the law to pay $0.100 on the dollar but they wear is selling for less than $0.100 on the dollar. >> host: not even treatment in the u.s. to say $0.100 on the d'arcy station on the dollar but for the uaw. >> they had to redo their contract. it is substandard. >> guest: not surprisingly , the financial markets have resisted doing the kinds of things that need to be done in the conversation read talked about of two big to fail institutions. >> host: talk about that you talk about what was day glass-steagall type but the adl looking at the size and firewall that does that look like congress is looking at the size or the fireball. >> guest: that is right there other things they have not done adequately with incentive pay. was saying they are very concerned about is more risk taking and short sighted behavior. there are some regulations that try to move in that direction of moving very slowly. part of the problem is than regulation the devil is in the details. you can g

i think deep in the chambers of conference at goldman saches it was understood that there's no way that the government lasted. if it gets this bad, we are all screwed. at that point. it is so unthinkable that in the end we have a second line of assurance, namely the taxpayer. this is the idea of private prophet and socialized republic risk. it's fundamentally that people are mad. they have not paid 100 cents on the dollar. we took them at face value and should be paid at face value. certainlyly, the company has had quoit a p.r. cal amity on its hands. >> our guest joining us from new york. writing for blume business week. dan is joining us from plano, texas. welcome to the program. caller: gr morning one and all. happy valentines day. i guess i would like to argue a little bit this morning with illegal immigration is just a matter of misplaced or inflamed emotion. it is not. it's a response to a very real problem. for example. if you review the map where the uninsured are. i work in a small manufacturing firm that katers to illegals boldly. these guys do work. they work to collect a leg

and you're going to see the likes of exxon mobil and their $45 billion profits and goldman sachs and their $12 billion in profits being used to buy washington in an even bigger way than they already have bought it. >> and frank luntz will look like a minor leaguer when the money gets like that. steve hildebrand former computy commissioner for the obama campaign. >>> if you have been watching closely for the last week, you will have noticed another obama campaign just underway. could the secret of saving the party of no and no principles be a new invention called facts? need a lift? hey, buddy, i appreciate the ride, you know? no problem. mind if i take a shortcut? yeah, sure. [ tires screech ] ♪ [ man ] i knew the subaru legacy was the smart choice. ♪ what i didn't expect was the fun. [ male announcer ] the subaru legacy. feel the love. is for your insurance rates to go up. with accident forgiveness from nationwide insurance, they won't. after the first accident, your rates stay right where they are. kind of like it never even happened. i am lory rigsby, and i am on your side. sw

we don't want goldman sachs telling people to buy swaps and short the market. >> do you think they should be private, peter? >> i think they should cease to be a bank. it should sell the industrial bank that it used to get the federal charter. be an investment bank. get out of the banking business. no federal guarantee. >> mark, i don't like the federal guarantee as far as too big to fail. we had a hudson banker here, a mid-sized banker. to me, this is where volcker should put his strength. you have a chance to get a real change in too big to fail. >> i agree. one of the remarks he said today that raised my eyebrow is where he said the house bill fixes that. i have to ask whether he's read the house bill. in fact, the bill passed by the house would allow creditors to be bailed out. >> and a $4 trillion safety net to fail. >> exactly. >> all right, peter, last word. is any of this going to pass the volcker plan up or down? >> i think the plan will pass. i don't know if we'll get comprehensive reform. >> sorry for the brevity, but you were enlightening on the lightning round. stay here for

goldman sachs. they used to be partnerships now they became publicly traded. >> when you were a partner at a wall street firm. you were a partner. that meant joint and several liability. liability if one of your partners screws up badly and loses millions when you are sued they go after the partner's assets that includes not just stocks and bonds and bank accounts, but their houses and their cars and their boats and their rolexes. there is no shield. other than telling your wife that you know you've had an affair, i can't think of more of an uncomfortable situation than going to the partners saying i lost you 50, 100 million dollars which each will have to write a check out of the checking account you would be out of business nt= you took a stupidess insame -- insane risk with other people's money. >> the guys with the green visors looking at the numbers making sure we are not going to take much risk because i'm not going to lose my house everything was handled in a conservative brace is. when you l

it brings to mind the ceo of goldman sachs who recently was quoted as saying he does god's work as an investment banker making sure capital flows to its highest valued use. it's a lovely idea. unfortunately, the current system which is marconi capitalism than real capitalism usurps goldman sachs and masquerades to be serving the public interest. >> guest: smith wouldn't even think it's so ugly. i think you would say it's quite typical. >> guest: smith understood on the part of the merchant or the business person to cloak itself in the public interest. and how dangerous it was. >> host: samuel fleischacker, give us a brief bio of adam smith. where was the race, where did he go to school, ephedra. >> guest: okay, i hope your viewers don't fall asleep in the spirit he is one of those boring lives of an important human being. his father died before he was born. he was born in a small town in scotland called kirkcaldy. he'd supposedly was kidnapped by gypsies and he was seven years old in the least a few days or weeks later. that's the most interesting thing in this lifetime. after that he

sachs logo that sits right above the grille. mind boggling details ahead. e weight on your own, until life shows up with hungry. or, you can follow the weight watchers plan entirely online and learn life skills that put you in charge. join for free right now and see how 31,000 food options give you options, and 1,800 recipes keep them fresh, so when life comes knocking, you can learn to live it, and lose weight and keep it off. join for free right now and get living. weight watchers online. stop dieting. start living. join for free right now and get living. new anti-aging eye roller. reduces puffiness immediately -- and also helps with lines and wrinkles. not surgery. this is our way to do your eyes. new regenerist anti-aging eye roller. >>> okay. two things about the demon sheep commercial from the california race republican primary. we're able to report the guy who does the demon sheep makeover is the bad guy from "the goonies." also it was not actually the worst republican political desifths week. that's coming up next. stay

you have the stock on the rise after goldman sachs added it to its conviction weigh list. aye $1.29. >> sports fans nationwide are gearing up to the super bowl game and big advertisements. this year denny's restaurants will have three separate commercials and they'll air it during the matchup. three new ones. the stock is up 33% year to year. today it's trading up 1.5%. okay. joining us now first on cnbc interview we have denny's president and ceo, nelson marcioli. welcome back to the program, sir. let's start with the three ads, because i think you had one ad last year and you're upping it to three. >> exactly right. and we thought buying three commercials in the super bowl and the back half would be a great way to do that. >> hey, nelson, can you tell us there's been debate in the newspaper about whether ads were more or less expensive in the super bowl. can you reveal whether they've been more or less? >> about the same. >> okay. >> how about the free food? let's go. i love the free food story. by the way, you have a lot of takers here on the set so we probably want to

treasury secretary for 2006 to fill some nine and as the ceo of the investment firm goldman sachs from 1999 to 2006. this event was part of the greater omaha chamber of commerce 2010 annual meeting. to find out more, this it omahachamber.org. >>> we are at west virginia university in morgantown west virginia with john temple, author of the last warrior the fight to save death row inmates. ken rose and said boe jones. >> to man about the same age and they both live in north carolina. boe jones was a farm hand from the plan county north carolina who was convicted of murder and 1993 for a murder that occurred in 1987 and he was sentenced to death and spent i believe 13 years on death row. ken rose is the lawyer, who in 1997 took on his case shortly before boe was scheduled to be executed and he has represented boe ever since and i spent four and a half years following that case. >> what got you interested in this case? have you always been interested in the law? >> my wife is a lawyer but it's not a field life studied. all i was drawn to the idea of writing about lawyers who exclusively r

this was a bill that would have regulated the pay of the janitor at goldman sachs. and provided a role for the congressional environment panel in policy matters and as a former member of that panel i assure they were unqualified for the task. so again, i don't see why -- the basic proposition is this again, in america the principle ought to be what you do with your money is your business. what you do with taxpayer money is our business. and if your compensation structure causes you to fail, don't take money away from the farmers, the school teachers, and the firemen to bail them out. the purpose of government is not to bail out. the purpose of government is not to place artificial limits on the american dream. it is to preserve freedom. i yield back. >> the gentleman from kansas. >> thank you, mr. chairman. i believe financial firms receiving taxpayer assistance should receive the most scrutiny with respect to their executive compensation practices. the most obvious and troubling case was aig that provided $165 million in bonuses last year after taxpayers invested b

you know, okay said we want to leave it to tim geithner and goldman sachs and i'm sorry if that sounds like guilt by association that if they cannot regulate the financial sector white we think it could regulate something as ephemeral as the carbon sector. [applause] but that is -- the bigger issue is raj's the other point which is we are just wasting time. there is no urgency to the solution, and that is the biggest problem with it. it does not flag of the urgency that the science tells us we should be feeling. that we need to be on a different course by 2012. that's why the meeting should have been so much important than it actually was. any measure that allows us to continue house if nothing has changed, to continue practice is because we were able to buy a few pollution credits from somebody else, that is wasting valuable, valuable time and i think that is the most important issue we need to focus on. i think certainly the young people in the environmental movement know that and one of the things that was really striking to me in copenhagen was people in their early 20s who work th

treasury secretary from 2006 to 2009, and as the ceo of the investment firm goldman sachs from 1999 to 2006. this event was part of the greater omaha chamber of commerce's 2010 annual meeting. to find out more visit omaha chamber.org. speaking with robert in more the third about his book they always said i was very a wide go, coming to grips with rates in america. i will start off with, who said that you would always make a white coat, and why did they say that? >> i think that was more of an internal feeling on my part. i grew up in a very passing time period during the 1960s. i was one of the few african-american fans, perhaps the only african-american family to ride the wave of millions of of why to left urban america at the time to go to the suburbs. at the same time many african-american for coming off the land of rural america and going to the cities. so i thought very unique, i felt caught in between. i think two groups almost like two sides and it was a time period that was pre-multiculturalism, and so i felt internally that perhaps i was destined to marry someone who was white