with regard to bear, stearns, you used the word fined. i think it would be not just unfair but bad public policy to fine them for having acqueases to serious pressure from the federal financial people to take over bear, stearns. leave aside equity, there may be another request by other federal financial officials to a bank to step in that way and they'd be much less likely to be cooperative. to the extent that you can say there are people to be made whole because of things bear, stearns did, that's different but as far as penalizing them because of what bear, stearns did before they were pressured into accepting it, i think that's a mistake. >> mr. mayor, what do you think of that? the next time the treasury secretary calls a bank during a time of crisis, do they hang up on him? >> i'm not -- i don't know what they would do. i can't speak to that. i do think, i want to emphasize what barney just said on this one part -- which i think is an important point -- we are at a place that j.p. morgan had to get bear, stearns because you would hav

with regard to bear stearns. i think it would be not just unfair, but bad public policy to them for having act with yeszed from serious pressure takethe fnts shl people to over bear stearns. if each of you individually could have done one thing the crisis, ing either before, after, during, i care, individually on your would it have been? start here. >> i thought about this a lot. i think communications the hardest thing to struggle with. describe it, we had one microphone but two different audiences. we wanted to project confidence to the markets but wanted the congress to know how terrified we were. but honestly to cat lose them to move. if we let the markets know hower iffed we were, it would have destablized. i don't have a better answer for solve that, but maybe better communication with the congress so they could know how we were. maybe that would have made the political process a little easier. >> i haven't thought about it. fold of in my time things right in front of me. but that said, i don't know if but

of 2007.ing the first -- the biggest shock is bear stearns goes under or is sold with a lot of government subsidy to jpmorgan chase. what should we have done that we did not, have put us in better shape? >> let me say something quickly on the previous point. just wars have unintended victims, and appropriate bailouts have regretted beneficiaries. nonetheless, it is the case that if you look at the shareholders of fannie and freddie, while leman, theychovia, are zero. at bank of america, they are down 90%. once you look at the vast majority of the ceo's and wealth, gone. you could overstate the extent to which everyone was billed out. every buddy tends to remember their own prescient comments better than they remember their own not-prescient comments and i of that.to be guilty from 2000, from the beginning of 2008 onward and violently after bear stearns had failed that the system was very substantially undercapitalized, fragile, and at risk. there were variety of junctures at which substantial capital could have been raised before bear stearns failed, and in the before lehmanwell brothers

to my recollection, the washington mutual and bear stearns were not the same. there was much more voluntary activity on the part of jpmorgan chase and washington mutual. bank of america was pushed into taking merrill lynch. i differentiate. washington mutual was totally them. i think it would be not just unfair, but bad public policy to find them for having acquiesced to serious pressure from the federal financial people to take over bear stearns. that sometime,t someplace in the future there will be a request i other federal financial officials to a bank. to the extent that you can say people are being -- as far as fining them because of what bear stearns did, i think that is a mistake. >> what do you think of that, mr. mayor? --the next time the krantz transfer secretary called the bank and a crisis, do they hang up on them? >> i don't know what they would do. jpmorgan a place that had to get bear stearns. we would've had the lehman beart earlier. now that we areorgan -- now holding them legally responsible for what we asked them to do at that time. as far as

morgan had to get bear, stearns because you the lehman moment earlier. bear has j.p. morgan because they did something they initiate, we solicited them to do, now we're holding them legally responsible for we asked them to do on that time so on that piece of the settlement, i don't know how it specifically represents, i think that's -- i mean you're government'sthe being given the position to look back and rewrite the rules of what actually contextually happened in a way and bearing people responsibility when actually they didn't come with the idea of buying bear, stearns and absorbing them, we asked them to do it and now we're saying you're legally culpable. it's double jeopardy. >> final question, if each of you individually could have done one thing different during the crisis, either before, after, don't care, individually on your own, what been?it have we'll start here. this a lot.out i think the communication was the hardest thing we struggled describeuse the way i it, we had one microphone but two different audiences. wanted to project confidence to the markets

with regard to bear stearns, no. you use the word fine. i think would be not just unfair that bad public policy to find them for having acquiesced a series pressure from the federal financial people to take over bear stearns. leave aside equity, i can't rule out that sometime, some place in the future there will be a request by other federal financial officials to a bank to step in that way and they would be less likely to be cooperative. to the think -- to the extent you can say -- as far as fining them, penalizing them because of what bear stearns did before they were pressured, i think that's a mistake. >> mr. mayor, what do you think of that? the next time, the knicks on the treasury secretary calls a bank during a time of crisis, do they hang up on them? >> i don't know what they would do. i can't speak to that the i want to emphasize what barney just said. on this one part of, which i think is an important point. we are at a place, and every member that jpmorgan had to get bear stearns because you would have had a lien a moment or. n

actually they didn't come forward with the idea eyeing bear stearns until then. we brought it to them and asked them to do it and now we are saying they are legally culpable for it. that's double jeopardy. >> final question. if each of you individually could have done one thing different during the crisis, either before, after or during, i don't care individually in your own what would it have been? we will start with you. >> i have thought about this a lot. i think the communications was the hardest thing we struggle with because the way i described it we had one microphone but we had two different audiences. we wanted to project confidence to the markets that we wanted to let the congress not terrified we really were. honestly to catalyze every move that if we looked at the markets they would have been destabilizing. i don't have a good answer for how to solve that. maybe that would have made the political process a little bit easier. >> haven't really thought about it. i don't know if this would have worked but maybe forcing the house members to put somebody i

there is stuff involving bear stearns, which it inherited. during the financial crisis bought bear stearns on behalf of hank paulson, then treasury secretary. and washington mutual it largely took over in the financial crisis in fdic receivership right now. there is stuff involving that. again it inherited that stuff. then there is the stuff it did on its own. jpmorgan is a bank. they gave mortgages out. they did a few. they weren't a big player in this business but they did some, some portions, some, i don't know how to describe it. , they were involved in this packaging and selling of mortgage that is were put in mortgage-backed securities and maybe even packaging of those things. but it wasn't so big in that business but clearly issued mortgages that were not very good and put in bonds, those bonds, those deals, that, there will be a concession about what it did by itself. ashley: is there blood on the hand, as you would say? >> there will be some blood on the hands and we'll get to see how much. look at their concession what they did, tha

the first, the biggest shock is bear stearns goes under. or is sold with a lot of government subsidy to jpmorgan chase. what should we have done after that and we didn't get that my to put us into better shape? >> let me just say something quickly on the previous point. just wars have time to get it if it comes, and appropriate bailouts have regretted beneficiaries. nonetheless, it is the case that if you look at the shareholders of fannie and freddie and wamu, wachovia, bear stearns, lehman, they are zeroed to you look at the shareholders of citigroup and bank of america down 90%. so if you look at the vast majority of the ceos involved, gone. you could overstate the extent to which everyone was bailed out. look, everybody tends to remember their own prescient comments better than the remember their own not prescient comments, and i am about to be guilty of that. it seemed to me from 2000 -- from the beginning of 2008 onwards, and violently after bear stearns had failed, that the system was very substantially undercapitalized, fragile and

at which this was critically raised in the for bear stearns failed in the early summer, well before the capital could've been raised. it does seem to me that that is a major failure on the part of their management and not recognizing the need to shore up the defenses. this includes the substantial capital rates and this is very substantial agility fragility and it is not possible that they could have been found in may or june. but yes, they couldn't have been found at prices that were attractive in this includes the previous environment. but if you look back, that was a moment when both the private and public sectors and is taking steps that could have attenuated the declines in output. and it goes to an issue which i have to say i am still concerned is with us today they said that bear stearns was well capitalized the day before it failed. so, how do you interpret that? i would interpret that as suggesting the regulatory capital is flawed as an indicator of fragility. something similar is true with respect to capital ratios as reported and judged by regulators for a variety of the

doing corporate security over bear stearns back in the early two thousand in between these two times as new york police department commissioner and now i mean this kind of in in just but not totally do you think that stop and frisk will now be implemented. and i think that's one of the reasons i'm going to tell you is guy you know that i've wow i kind of like what this guy is doing with all that surveillance of muslims we could use a little of that surveillance over j.p. . morgan no they said that the major thing that he would be involved with is actually cyber security which is a huge issue for banks you write remember that bloomberg businessweek cover that said very loudly the chinese are stealing your. i mean cyber security in particular d.d. o. s. attacks are a huge issue for banks because banks aren't only a target in terms of corporate espionage trying to get data get user information but also banks especially big banks like j.p. morgan have become highly politicized so a lot of times groups like anonymous and like losers that are just going after j.p. morgan for what they call

corporate security over bear stearns back in the early two thousand and kind of in between these two times as new york police department commissioner and now i mean this kind of in in just but not totally do you think that stop and frisk will now be implemented achieve more and i think that's one of the reasons i'm going to get is guy you know they're like wow i kind of like what this guy is doing with all that surveillance of muslims we could use a little of that surveillance over j.p. . morgan no they said that the major thing that he would be involved with is actually cyber security which is a huge issue for banks you write remember that bloomberg businessweek cover that said very loudly the chinese are stealing your secret. i mean cyber security in particular d.d. o. s. attacks are a huge issue for banks because banks aren't only a target in terms of corporate espionage trying to get data get user information but also banks especially big banks like j.p. morgan have become highly politicized so a lot of times groups like anonymous and like losers act are just going after j.p. mor

stearns and lehman brothers and the government is made. to spy on people the government isn't in league with the n.s.a. in america get other highly treasonous act to spy on people because they say they want to stop the bad guys and they're the warrants down a portsmouth who have their property stolen use an exploding financial device concocted by r.b.s. in the bowels of their terrorist organization so isn't that duplicitous by the government stacey is that a lot of those warm up to the fighting terrorists you know they subject their own citizens to this type of type of terrorism that is going to duplicitous treasonous government i don't believe in treason so much because i don't believe in nation states or whatever it's a globalized world and there should be rules there should be regulations on the on the football field of this game there are bigger knock on consequences that are more important as they point out in this piece about r.b.s. and that is that by driving healthy companies into the ground r.b.s. is not only runed thousands of li

doing corporate security over bear stearns back in the early two thousand and kind of in between his two times as new york police department commissioner and now i mean this kind of in in just but not totally do you think that stop and frisk will now be implemented out you can work out and i think that's one of the reasons i'm going to tell you is guy you know they're like wow i kind of like what this guy is doing with all that surveillance of muslims we could use a little of that surveillance over j.p. . morgan no they said that the major thing that he would be involved with is actually cyber security which is a huge issue for banks you write remember that bloomberg businessweek cover that said very loudly the chinese are stealing your. i mean cyber security in particular d.d. o. s. attacks are a huge issue for banks because banks aren't only a target in terms of corporate espionage trying to get data get user information but also banks specially big banks like j.p. morgan to become highly politicized so a lot of times groups like anonymous and like losers that are just going after

stearns and lehman brothers and the government has made g.c. h.q. to spy on people the government is in league with the n.s.a. in america and get other highly treasonous act to spy on people because they say they want to stop the bad guys and yet here the warrants down in portsmouth who had their property stolen use an exploding financial device concocted by r.b.s. in the bowels of their terrorist organization so isn't that duplicitous by the government stacey is that a lot of those warm up to the fighting terrorists you know they subject their own citizens to this type of this type of terrorism this is going to duplicitous treasonous government i don't believe in treason so much because i don't believe in nation states or whatever it's a globalized world and there should be rules there should be regulations on the on the football field of this game there are bigger knock on consequences that are more important as they point out in this piece about r.b.s. and that is that by driving healthy companies into the ground r.b.s. is not only runed tho

stearns and lehman brothers and the government says me. to spy on people the government is in league with the n.s.a. in america get other highly treasonous act to spy on people because they say they want to stop the bad guys and they're the warrants down in portsmouth who have their property stolen use them exploding financial device concocted by r.b.s. in the bowels of their terrorist organization so isn't that duplicitous by the government stacey is that a lot of those warm up to the fighting terrorists and are they subject to own citizens through this type of type of terrorism is that there's not a duplicitous treasonous government i don't believe in treason so much because i don't believe in nation states or whatever it's a globalized world and there should be rules there should be regulations on the on the football field of this game there are bigger knock on consequences that are more important as they point out in this piece about r.b.s. and that is that by driving healthy companies into the ground r.b.s. is not only runed thousands

stearns and lehman brothers and the government has made g c h q to spy on people the government isn't in league with the n.s.a. in america get other highly treasonous act to spy on people because they say they want to stop the bad guys and they're the warrants down in portsmouth who had their property stolen use an exploding financial device concocted by r.b.s. in the bowels of their terrorist organization so isn't that duplicitous by the government stacey is that a lot of those warminster fighting terrorists you know their subject their own citizens through this type of type of terrorism is going to duplicitous treasonous government i don't believe in treason so much because i don't believe in nation states or whatever it's a globalized world and there should be rules there should be regulations on the on the football field of this game there are bigger knock on consequences that are more important as they point out in this piece about r.b.s. and that is that by driving healthy companies into the ground r.b.s. is not only runed thousands of lives it is also greatly hindered our econo

along with bear stearns in washington mutual the two banks that purchased in two thousand and eight. j.p. morgan knowingly sold off bad mortgages disguised as good mortgages to investors like fannie mae and freddie mae freddie macas well as to every day mom and pop pension funds and while the economy hurdled towards collapse j.p. morgan was new in bear stearns got rich while everyone else got stuck with crap loans that were destined to go under as matt taibbi pointed out in a recent article for rolling stone j.p. morgan's mortgage program was little more than a knee labrat take on a madoff style ponzi scheme they the banks continued to buy these mortgages and throw them into the great hamburger machine turning them into securities that would in turn be bought by everyone from pension funds to fannie and freddie and then they pushed sales even harder to relying upon the influx of new buyers of these securities to keep the value of the old securities stable this is exactly what bernie madoff did using cash from new investors to pay off the old investors the justice department's record

stearns failed so zero had to. and they're extracting collateral from the system and therefore the quiddity is drying up right or another way to look at it is zombification and debt transfusions here you've got the zombie banks who should have been allowed to fail and die but instead they're being transfused with debt so as the statistic points out three times more debt transfusion is required per one unit or dollar of debt origination in this huge really deflationary contraction of the real economy in favor of the virtual fufu economy where everyone is just putting houses up their spring training and calling that a net worth enema as if that somehow was going to be the basis for a growing economy i don't think so unless you want to start monetizing believe me then you've got a bully make based economy where people are vomiting their net worth and saying look the more obama the better look at all the vomit on the street from all these poor suckers that kind of for real food anymore the economy must be expanding. we

stearns failed so zero had. refers to it as collateral extraction there extract and collateral from the system and therefore in the quiddity is drying up right oh another way to look at it is zombification and debt transfusions here you've got the zombie banks who should have been allowed to fail and die but instead they're being transfused with debt so as the statistic points out three times more debt transfusion is required per one unit or dollar of debt origination in this huge li deflationary contraction of the real economy in favor of the virtual fufu economy where everyone is just putting assets up their spring training and calling that a net worth enema as if that somehow was going to be the basis for a growing economy i don't think so unless you want to start monetizing believe me then you've got a bully make based economy where people are vomiting their net worth and saying look the more vomit the better look at all the vomit on the street from all these poor suckers that kind of for real food anymore t

stearns failed so zero had. first it is collateral extraction there extract and collateral from the system and therefore in the quiddity is drying up right or another way to look at it is zombification and debt transfusions here you've got the zombie banks who should have been allowed to fail and die but instead they're being transfused with debt so as the statistic points out three times more debt transfusion is required per one unit or dollar of debt origination in this huge li deflationary contraction of the real economy in favor of the virtual fufu economy where everyone is just putting assets up their spring training and calling bat a net worth enema as if that somehow was going to be the basis for a growing economy i don't think so unless you want to start monetizing believe me then you've got a bully make based economy where people are vomiting their net worth and saying look the more obama the better look at all the vomit on the street from all these poor suckers that kind of for real food anymore the ec

along with bear stearns in washington mutual the two banks that purchased in two thousand and eight j.p. morgan knowingly sold off bad mortgages disguised as good mortgages to investors like fannie mae and freddie. freddie mac. as well as to every day mom and pop pension funds and while the economy hurdled towards collapse j.p. morgan was new in bear stearns got rich while everyone else got stuck with crap loans that were destined to go under as matt taibbi pointed out in a recent article for rolling stone j.p. morgan's mortgage program was little more than a knee labrat take on any madoff style ponzi scheme the banks continued to buy these mortgages and throw them into the great hamburger machine turning them into securities that would in turn be bought by everyone from pension funds to fannie and freddie and then they pushed sales even harder to relying upon the influx of new buyers of these securities to keep the value of the old securities stable this is exactly what bernie madoff did using cash from new investors to pay off the old investors the justice department's record breaking

stearns failed so zero had. first it is collateral extraction there extract and collateral from the system and therefore in the quiddity is drying up right or another way to look at it is zombification debt transfusions here you've got the zombie banks who should have been allowed to fail and die but instead they're being transfused with debt so as the statistic points out three times more debt transfusion is required per one unit or dollar of debt origination in this huge li deflationary contraction of the real economy in favor of the virtual fufu economy where everyone is just putting assets up their spring training and calling that a network enema as if that somehow was going to be the basis for a growing economy i don't think so unless you want to start monetizing blame and then you've got a bully make based economy where people are vomiting their net worth and saying look the more obama the better look at all the vomit on the street from all these poor suckers they're kind of for real food anymore the econo

stearns and lehman brothers and the government is made. to spy on people the government isn't in league with the n.s.a. in america and get other highly treasonous act to spy on people because they say they want to stop the bad guys and they're the warrants down a portsmouth who had their property stolen used an exploding financial device concocted by r.b.s. in the bowels of their terrorist organization so isn't that duplicitous by the government stacey is that a lot of those warm up to the fighting terrorists and are they subject to our own citizens through this type of type of terrorism that is going to duplicitous treasonous government i don't believe in treason so much because i don't believe in nation states or whatever it's a globalized world and there should be rules there should be regulations on the on the football field of this game there are bigger knock on consequences that are more important as they point out in this piece about r.b.s. and that is that by driving healthy companies into the ground r.b.s. is not only runed thousa

stearns failed so zero had. refers to it as collateral extraction there extract and collateral from the system and therefore in the quiddity is drying up right or another way to look at it is zombification and debt transfusions here you've got the zombie banks who should have been allowed to fail and die but instead they're being transfused with debt so as the statistic points out three times more debt transfusion is required per one unit or dollar of debt origination in this huge li deflationary contraction of the real economy in favor of the virtual fufu economy where everyone is just putting assets up their spring training and calling that a net worth enema as if that somehow was going to be the basis for a growing economy i don't think so unless you want to start monetizing believe me then you've got a bully make based economy where people are vomiting their net worth and saying look the more obama the better look at all the vomit on the street from all these poor suckers that kind of for real food anymore t

headline suggests i am right as well because of the fed mortgage market liquidity is as bad as when bear stearns failed and this is from guy house woman of scotiabank and zero had quotes him as saying through its q.e. policy the fed by story dollars of mortgages for every dollar of origination the consequence is that secondary mortgage market liquidity has been decimated it is as bad as when bear stearns failed so zero had referred to it as collateral extraction they were extracting collateral from the system and therefore the quiddity is drying up right oh another way to look at it is zombification debt transfusions here you've got the zombie banks who should have been allowed to fail and die but instead they're being transfused with debt so as the statistic points out three times more debt transfusion is required per one unit or dollar of debt origination in this huge li deflationary contraction of the real economy in favor of the virtual fufu economy where everyone is just putting houses up their spring training and calling that a network enema as if that somehow was going to be the b

morgan and bear stearns, which took over during the financial crisis. for decades, china has been notorious for their one child policy, leading to forced abortions and the abandonment of baby girls. but the government in beijing said changes were on the way. economic reforms and the policy will be relaxed. the main focus is the rapidly aging population, with not enough young people to act as caretakers. the world's most controversial family planning law. -- the chinese one policy one child policy is said to be relaxed. many couples will now be allowed to have a second child. ago, thed 30 years policy was designed to prevent a population explosion. this has often been brutally enforced. - xiping, whor we met already had a child. but when she was six months pregnant, she was taken to the hospital and injected to force an abortion. my child did not die immediately. alive, and, still cried. the doctor said not to look at it, you will have nightmares. >> china may have the biggest population but they need more babies. the number of workers is shrieking and c

. >> rose: exactly, washington mutual and bear stearns. >> and bear stearns, yes. >> rose: brought a lot of problems, and obviously jamie dimon said he would not have maid those deals if he had it to do over. >> for sure, at that time, what he did helped the economy, but also, they were beneficial to jpmorgan. jpmorgan made a lot of money out of these companies right now, but right now, i think we are seeing the side effects of these two acquisitions. >> rose: looking to the future, is there a sector of the economy that you like a lot? is it technology and social media. is it financial institutions? is it hotels? is it all of those but one that i don't know about that seems very, very attractive to you? >> kingdom holding is a saudi arabia country and 14 industries, and these industries are regionally and in saudi arabia. it depend on each country, for example, real estate right now used to be a tabu a few years ago in the united states. and saudi arabia, it's really-- it's been a booming industry the last four, five years. >> rose: in saudi arabia. >> exactly, yes. although, the uni

i spent much of 2008 defending hank and then over bear stearns. we wanted to have hearings and dragged him up there and announce them over bear stearns. that was hard nothing to get done. there was no way that kind of resolution procedure etc. was a significant government intervention. remember what we have been there. it says it is get that the government will take it over. it would not have worked in the reason is simple and i want to add this because sometimes we make the mistake of treating washington as as if somehow an autonomous bubble. it's driven by voter sentiment. if it's a great success the voters hated. we politicians -- the media makes me but the voters are no argun either. [laughter] i used to say that when i was at harvard. >> you might not think i'm so great that the constituents aren't so hot either. this is why we never let him near freshmen members. [laughter] >> he here is -- you have this ideological tremendous intervention by the government. he stepped in and get rid of the board of directors and you fire people and you take

larry was slightly wrong because we got lehman to raise equity capital twice after bear stearns went down. we pressed wachovia to raise capital. the ceo told me i can't raise equity because it will stigmatize me but i'll do a preferred. but the -- and no regulator was in a position where they could say to some bank you need x amount of capital, you've got plenty of capital, you don't have enough, because they just didn't have the capacity to do that and they didn't have the knowledge and the leverage was hidden. so this gets to our capital program and why we designed it the way we did. our capital program was totally different than what the europeans did. it was different than what had been done historically, which is nationalize failing banks as they go down. what we wanted to do was get out quickly and put capital broadly into the system. the only way we could do that was on a voluntary basis. just imagine, i took plenty of criticism. one bank didn't want to take the, quote, voluntary capital when we encouraged them to do it quickly. so we got out quickly, we put capital in, and i

stearns and washington mutual, two companies it bought during the financial crisis. >> pelley: five years after the meltdown. >> reporter: exactly, scott. >> pelley: anthony, thanks very much. late today, a sharply divided u.s. supreme court gave texas the go-ahead to continue enforcing its new abortion restrictions. the vote was 5-4. under these new rules, doctors in texas who perform abortions in clinics must also have admitting privileges at a nearby hospital. that rule has forced more than a third of the state's clinics to stop providing abortions. there is an ominous development in the middle east that is raising concerns that a religious war may be spreading beyond borders. today, bombs exploded at the iranian embassy in beirut, lebanon. 23 people were killed. iranian troops are fighting in neighboring syria to support the dictatorship there. the civil war in syria is in its third year, and it's become, in large part, a fight between the two main branches of islam, the sunni and the shi'a, a rift that extends throughout the region. clarissa ward is in beirut. >> reporter: ther

stearns and lehman brothers and the government is made. to spy on people the government isn't in league with the n.s.a. in america and get other highly treasonous act to spy on people because they say they want to stop the bad guys and they're the warrants down in portsmouth who have their property stolen use them exploding financial device concocted by r.b.s. in the bowels of their terrorist organization so isn't that duplicitous by the government stacey is that a lie by cameron osborne the best of the fighting terrorists and are they subject their own citizens to this type of type of terrorism is going to duplicitous christmas government i don't believe in treason so much because i don't believe in nation states or whatever it's a globalized world and there should be rules there should be regulations on the on the football field of this game there are bigger knock on consequences that are more important as they point out in this piece about r.b.s. and that is that by driving healthy companies into the ground r.b.s. is not only runed thou

stearns failed and this is from guy hassel min of scotiabank and zero had quotes him as saying through its q.e. policy the fed by story dollars of mortgages for every dollar.

stearns during the two thousand and seven financial collapse the claim accuses standard and poor's fitch and moody's of assigning artificially high credit ratings to mortgage bonds now when those bonds collapse the funds failed resulting in more than one billion dollars in losses for investors in the complaints liquidator say e-mails which they say prove the agency knew full well that their high quality ratings of these mortgage bonds were bogus representatives for s. and p. fitch and moody's have said the charges are without merit and finally do you know how safe your big queens are inputs dot io a digital wallet company was hacked last month now the bandits made off with more than four thousand bitcoin and other words one point two million dollars yeah one point two million now the founder of inputs dot aioe released this statement saying quote people are getting refunded but inputs doesn't have enough points to pay everyone fully i don't recommend storing any bitcoins accessible on computers connected to the internet. now here's the thing keeping your biquad away from a computer conne

stearns during the two thousand and seven financial collapse the claim accuses standard and poor's fitch and moody's of assigning artificially high credit ratings to mortgage bonds now when those bonds collapse the funds failed resulting in more than one billion dollars in losses for investors in the complaints liquidator say e-mails which they say prove the agency knew full well that their high quality ratings of these mortgage bonds were bogus representatives for s. and p. fitch and moody's have said the charges are without merit. and finally do you know how safe your big queens are inputs dot iow a digital bitcoin wallet company was hacked last month now the bandits made off with more than four thousand bitcoin in other words one point two million dollars yeah one point two million now the founder of inputs dot aioe released this statement saying quote people are getting refunded but inputs doesn't have enough points to pay everyone fully i don't recommend storing any accessible on computers connected to the internet. now here's the thing keeping your big away from a computer connecte

stearns during the two thousand and seven financial collapse the claim accuses standard and poor's fitch and moody's of assigning artificially high credit ratings to mortgage bonds now when those bonds collapse the funds failed resulting in more than one billion dollars in losses for investors in the complaints liquidator say e-mails which they say prove the agency knew full well that their high quality ratings of these mortgage bonds were bogus representatives for s. and p. fitch and moody's have said the charges are without merit and finally do you know how safe your big queens are inputs dot io a digital bitcoin wallet company was hacked last month now the bandits made off with more than four thousand bitcoin in other words one point two million dollars yeah one point two million now the founder of inputs dot aioe released this statement saying quote people are getting refunded but inputs doesn't have enough points to pay everyone fully i don't recommend storing any accessible on computers connected to the internet. now here's the thing keeping your because it away from a computer con

stearns during the two thousand and seven financial collapse the claim accuses standard and poor's fitch and moody's of assigning artificially high credit ratings to mortgage bonds now when those bonds collapse the funds failed resulting in more than one billion dollars in losses for investors in the complaints liquidator say e-mails which they say prove the agency knew full well that their high quality ratings of these mortgage bonds were bogus representatives for s. and p. fitch and moody's have said the charges are without merit. and finally do you know how safe your big points are inputs dot iow a digital wallet company was hacked last month now the bandits made off with more than four thousand bitcoin in other words one point two million dollars one point two million now the founder of inputs dot aioe released this statement saying quote people are getting refunded but inputs doesn't have enough points to pay everyone fully i don't recommend storing any accessible on computers connected to the internet. now here's the thing keeping your big quote away from a computer connected to an

stearns during the two thousand and seven financial collapse the claim accuses standard and poor's fitch and moody's of assigning artificially high credit ratings to mortgage bonds now when those bonds collapse the funds failed resulting in more than one billion dollars in losses for investors in the complaint liquidator say e-mails which they say prove the agency knew full well that their high quality ratings of these mortgage bonds were bogus representatives for s. and p. fitch and moody's have said the charges are without merit. and finally do you know how safe your big points are inputs dot io a digital bitcoin wallet company was hacked last month now the bandits made off with more than four thousand bitcoin in other words one point two million dollars yeah one point two million now the founder of inputs dot aioe released this statement saying quote people are getting refunded but inputs doesn't have enough points to pay everyone fully i don't recommend storing any accessible on computers connected to the internet. now here's the thing keeping your big away from a computer connected

stearns during the two thousand and seven financial collapse the claim accuses standard and poor's fitch and moody's of assigning artificially high credit ratings to mortgage bonds now when those bonds collapse the funds failed resulting in more than one billion dollars in losses for investors in the complaints liquidator say e-mails which they say prove the agency knew full well that their high quality ratings of these mortgage bonds were bogus representatives for s. and p. fitch and moody's have said the charges are without merit and finally do you know how safe your big points are inputs dot io a digital wallet company was hacked last month now the bandits made off with more than four thousand bitcoin in other words one point two million dollars yeah one point two million now the founder of inputs dot aioe released this statement saying quote people are getting refunded but inputs doesn't have enough points to pay everyone fully i don't recommend storing any accessible on computers connected to the internet. now here's the thing keeping your big away from a computer connected to an in

the thing i have the biggest problem with, bear stearns, they weren't owned by jpmorgan at the time of the infringement. the fact that jpmorgan bailed out the companies and got smacked with a fine is absolutely ridiculous. there were problems that were revealed. not even getting the right kinds of decision. where is this money going to? is it going back to the investors, the ones that got hurt? no, it's going to the attorney general. >> community organizers, government agencies, housing bailout. now they recover nicely. bailout money they could not get to congress. scheduleding, jpmorgan stock is holding up. is that fair? is that true? >> yes. it fell 11%. people were kerchtd about the legal overhang. they made these announcements, that's the number so far in total. ? a normal, in this reserve. >> the point is it won't impact earnings. it's an overhang removed. we can focus on fundamentals and 2013's cash deployment which is dividends and -- >> look, again, i'd like to know, you know, you had this incredible laundry list of the finds and where the money went. community organizers are g

jpmorgan bought bear stearns. it was march of 2008. it predated the heart of the crisis being that it was in march but bear stearns was 2 bucks and ended up being $10. the larger question here is are they moving through all of the various fines, penalties, fees, settlements that they need to, can investors see through to the other side? they have put aside 23 billion for so-called litigation expense. jim, i start to wonder whether the continued -- i wouldn't call it an avalanche but the continued pressure from regulate are to regulators and all of the pressure points that they seem to be applying, one has to wonder whether we'll truly abate and get back to what we call real earnings power for these financial institutions. >> look, if we had normalized earnings and this is not a normal time, then jpmorgan would probably be 6, 7 points higher. all of these settlements are at the behest of the u.s. attorney. he's not going to sit down and negotiate. he's going to say, look, here's my deal. take it or not. and for jamie dimon to take it ma

jpmorgan bought bear stearns in march of 2008 in one of the key events of the financial crisis era. also a bit of news that sort of he said/she said. apple either did or did not buy the company behind the so-called connect technology that's in microsoft's xbox. an israeli financial newspaper reported over the weekend that apple bought what's called prime sense for $345 million. but prime sense now is telling business insider that the story wasn't true and we will try to get to the bottom of this. also, the new york stock exchange and nasdaq, they're apparently close to an agreement to back up each other's data streams. this would be a little bit more cooperation than we've seen between two exchanges that don't seem to love each other. an agreement could come by the end of the month. the idea is to prevent data outages. that's actually kind of good that two guys who kind of hate each other would say, you know what, in the common good, we'll all do business together. i like that idea. i don't understand this apple story, though. >> i don't get that either. >> i'll tell you this connec

stearns and wamu. one of the reasons this deal's getting done is jpmorgan's likely to cave on one key issue, where the liabilities of washington mutual, right? you can kind of go back into what's in receivership right now because, remember, they were taken over by the fdic and put in the claims for some of those liabilities. we understand there's jamie dimon, the ceo of jpmorgan, we understand a as of now they will not go back to the fdic and ask for those claims, that was one of the sticking points. that has been done. it looks like this thing is going to get done by the middle of next week. it's never done til it's done, but i'm hearing middle of next week, and we'll see. anyway -- liz: and they've come on to speak with you. >> jamie's come on, and i've asked tough questions. listen, i want to point this out, liz. we had a spirited discussion yesterday. a little bit of hyperbole. i do not want to beat up dan -- dick -- what's his name? liz: dick costolo. i said who he looked like. i will say there's

first of all the justice department says this isn't just for conduct by bear stearns and washington mutual, the two banks jpmorgan bought. in the court documents filed today just now, the justice department also says jpmorgan was doing the same thing, overpromising what was in these packages of home mortgage loans that were then sold as securities. the jpmorgan knew well, executives knew, there were a lot of worthless loans in there. he says this $13 billion hit, even though today doesn't have any criminal charges, is still a big hit on the company. here's what he said. >> this was something that was hard fought. it was something that we decided in terms of the amount had to be met, otherwise we could have simply filed our lawsuit. this was not simply something that jpmorgan simply signed a check and smilingly said, this is a good deal for us. this inflicts pain on that institution. >> reporter: now, the subject of whether criminal charges could still be filed, the justice department emphasizes, yes, they absolutely could be. i asked him today, isn't this your best shot? if you know they c

stearns and concerned about the perception of mistrust and exacerbating that perception. he went to a private equity firm that wasn't regulated by the fed or ral by the treasury. that was a big part of it. he was also looking for a situation where some of the controversy that may have surrounded some of the big banks was not going to follow him into that job. >> this company has a british background, right? >> yeah. it does. it's also sort of a more low-profile company. >> discreet. >> my guess, that's not going to remain the same, the situation anymore. geithner being over there is going to mean the deals that are done by warburg pink cuss will be more scrutinized. >> he didn't go in as the ceo. >> he is going to be involved in running the company. another criteria, if you go to a big inment bank they might call you every day and say what's the fed going to do. when you're making longer term investment decisions over a number of years they're not going to call him for that stuff. a different set of skills are involved. he was looking forward to the new challenge, i'm tol

stearns which is part of this deal, but jpmorgan itself which sold a lot of bad mortgages, if it did say i did something really bad, this is going to be a hit to shareholders, and i don't think they're taking this into account right now if we look at a stock chart, shares of jpmorgan were up marginally. but long term is what you have to look for here, it's whether they really did concede they did something wrong in this settlement, and that language is not out. now, is this a done deal? yes, it is. eric schneiderman, the attorney general, just front ran the department of justice. why does he have the authority to do it? he's head of president obama's mortgage task force designed to hold banks accountable for mortgage fraud during the runup to the financial crisis. so he came out and basically front ran the announcement on the justice department. i don't think we're going to get a press conference coming out of attorney general holder out of this. i think we'll see a statement, we definitely will see some paperwork, and that's the key thing. every investor has to look at this because

and jpmorgan reaching a deal with 22 of these investors who bought into hundreds of bad bear stearns mortgages which have a projected loss value of $70 billion. friday's deal, takes them to $4.5 billion payout. bernstein analysts see the move as a positive move for a bank still facing a multimillion dollar legal fight from washington. a similar deal bank of america struck that's now under fire. b of a reached $8.5 billion deal with same exact investors in 2011 but some bondholders said bank of new york-mellon let them down. a new york judge will decide after closing arguments are heard this week. now, banks are always relieved to solve these issues. citigroup among the banks that have yet to settle with this group of investors as it's been expected to. as we know well from covering these situations, it's not a done deal until all the investors say so. maria and bill, back to you. >> we'll be discussing the outlook for major stocks later on "closing bell" when i speak with prince alwaleed bin talal al saud, who will be here at the new york stock exchange live in the next hour. bill, w