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But TG IF everybody we've made it at least -- halfway through Friday night.
I don't know about the rest of the half but I'm -- this -- come on.
Welcome fox does -- -- -- -- -- at the conclusion of AIG -- a lot of us now here I thought another week like that's right I did this story at the same time it's a story that just keeps on giving.
-- Fox Business bashing new for me yes edgy wit what it for what information -- what administration knew what when.
And that the bonuses will get that -- -- a bad read.
Dealing information -- I'd say about what was said months ago David -- is gonna be along later on in the hour with that.
In the meantime also keep in mind that that Ben Bernanke the Fed -- getting set to speak at this hour as well.
Al did not Phoenix I believe so that'll be something to look for the Fox Business -- headlines -- -- right after that from his prepared speech so that'll be -- -- -- -- that affects.
A market has been kind of flat today -- -- -- take about the program election it's -- great from Dow Jones is going to be here to talk about all the big issues.
Tom graphic capital capital we'll talk about something that we haven't quite frankly talk enough about this week which is the debate about what we really need to do about this economy that bank.
All the -- -- -- the seems to be getting overshadowed by the bonus story we're gonna get into that with Tom Eric Anderson of eight on.
Will be a great -- I think to talk about risk management and all the -- went wrong with AIG in what could have been done better somebody knows something about diet is as well.
And -- hearing saying that this whole problem of that -- did too big to feel problem is extremely serious seemingly obvious perhaps the that there.
Yeah I think so violently that Washington is good for so we do have some of its congressman Ben Bernanke and it'll play it's exactly and went to -- -- big.
To fail what is the risk associated with.
And you know air we'll have some interesting thoughts -- -- -- she is well.
Eric well and -- congressman Charles dent at a Pennsylvania he's one of the people who actually voted for.
That 90% tax in the house yesterday that is controversial to say the least -- -- it passed overwhelmingly.
But the response to it has been hey wait a minute is this even legal can congress -- do something about that we've got -- -- this program live later this hour who voted for.
We'll hear it -- the -- as -- why he voted yes.
Carries what your thoughts on that of course we're gonna ask your questions directly to the congressman in the meantime again the markets are really in a holding pattern right here at -- mentioning.
I've Bernanke speaking even on the big break easy Bernanke headlines crossing right there at the top that's outlooks let me down -- connection -- in this headlines.
I'm Robert -- is joining us now had talked a little bit more about these markets Robert and you know.
-- option expiration -- it's looking volatile and it'll increase later -- -- for the markets are just.
Beginning in the N com yeah exactly the beginning in the in the middle of this is a trend we've seen.
Throughout this whole rally the past couple weeks where sort of the middle the day he gets a little.
Sluggish and slow -- seeing is they have the Dallas higher by a little bit the S&P 500 and NASDAQ just ever so slightly lower -- percent NASDAQ-100 mentioned this morning.
On the air it was actually higher for the year briefly this morning with some gains now it's just ever so slightly lower for the year we've talked about the fact people really.
Rushing in to technology stocks -- NASDAQ-100 to 100 largest non financial.
Stocks on the NASDAQ and that's the key partner non financial largely technology not only -- In that index right now guys -- club we have yes embarrassed you -- technology companies Xerox people really think you know in the -- -- technology company that they're suffering.
People aren't spending as much or not buying their -- they're not by the copiers -- like.
Of course because they're downsizing right now not spending it got pretty -- out of -- -- -- profit warning and and you heard from my Sony Ericsson out of Europe.
They make a cell -- it's -- JB a joint -- you may imagine between Sony and Ericsson.
There under pressure a little bit but then you look at Paul and they had a huge loss last night but there's a lot of us still excitement about that Palm Pre phones to do about this summer -- -- -- some litigation exposure with.
Apple potentially with a touch screen about technology what -- -- how that pans out thumbs up about 3% right but again it's really what you're seeing are winners and losers here they're they're suffering us.
Sony Ericsson some of their suppliers like STMicroelectronics.
Maybe not a household name but ST on the -- there AS and now the big.
Chip equipment maker ever in Europe they're all suffering but.
-- finish -- the other chip stocks you know Intel is down a little bit Motorola's down a little bit but.
Not widespread huge losses like.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- No one.
People are -- right now little -- try to come in and -- after this big rallies -- sort of just hanging out waiting to see.
If someone will indeed come through it in a large way and buy stocks in the -- -- -- the financial by the way we talked about city yesterday.
We -- -- diving in the afternoon GE diving after -- all these big financial stocks.
Who took TARP money falling and this is where the DC connection comes in traders -- pointing.
Two of the the bonus the call back if you are the higher tax rate they face -- 90% tax rate the -- to the house and whether -- -- this.
Becomes law not because they're saying that they're not gonna attract that kind of talent now -- few.
You -- that's just some kind of political grandstanding or whatever take a look at the foreign financial stability banks -- Credit Suisse UBS they're moving higher today because they don't have to worry about these.
Kinds of problems with bonuses they -- trying to hire talent.
-- that is what the concern -- All right get it up Robert -- with our with our top stories this morning thanks very much to -- -- They still what would it take another look at the big board really click here as we bringing up -- -- -- -- -- two points here Ben Bernanke is speaking right now we're going to be watching some of the comments that come across to last.
In the meantime.
And again we have a big show ahead.
Absolutely we're going to be talking -- -- seven mile shifts in this hour managing editor at Dow Jones Newswires about all the big topics of the day.
And will be also talking to Tom -- little regret later at managing director -- capital capital management all that and more coming up here foxbusiness.com.
-- -- -- -- All right so.
Let's get to some of those big topics that you see who some of the ways that you can Regis and certainly.
Twitter -- -- a lot email -- via live at foxbusiness.com.
And of course on the comments section of our board is probably the best way I see people already -- wait yes I did kind of asked the question what people want to talk about the bubble.
Adjusting to see what topics they -- and into Philly into sang.
Devices and shut com live OK so let's just go there come some of the comments besides the fact that.
We're thankful -- where we're at the end of the week and -- decide how a whole other new week on Wall Street.
One of the questions that's being brought up is -- is a comment about Barney Frank now -- to cancel.
-- Fannie and Freddie bonuses and again the -- talk is really big on Wall Street.
And a lot of anger so that'd be interesting because again this -- retention bonuses remember for Fannie.
And Freddie advise that you keep -- that those that know very much about the company in it they help rebuild the housing market.
Nobody I think.
-- through an election test to say about all this stuff.
-- -- people wanna talk about some of the bad bank ideas as well -- idea to what extent do you think we've got distracted this week mean this this week that a I don't see -- become a lost week.
For the for the administration but also for all of us that are watching to see what's gonna happen with this economy -- I think that's a great point I mean I think.
For the serious issues the issues the economy the -- of getting the banking system.
Back on track -- it has been a -- week not that these aren't real issues.
But they are bit -- -- you know the populace about human beings in dollars and cents with you know raise a lot and he's also absolutely human -- But there are big issues out there and -- -- if you go back just one week.
When the Treasury Secretary went over to England for the G-20 finance ministers I mean I thought that was very instructive you know.
The US was on the receiving -- -- a lot of criticism you know from Europe from the Canadian minister from China's premier has weighed in recently saying.
You know you can't lecture us -- you've got to get your act together and primarily the banking situation.
Yeah it's it's -- and that and then we're gonna have that meeting.
Obviously in April and and you wonder what substance is actually gonna come out of it and the other -- and this is just we -- these communiques again.
Because that might be the thing that you say in the markets -- goal is to say what's these fees -- -- to sell again -- this is really bear market rally.
What they're really gonna -- some substance and worldwide stimulus -- just going to be one of these blanket statements that doesn't really accomplish anything.
Yeah I mean it's very hard for multilateral groups to come up with specifics -- so I think that.
As you say markets are invariably disappointed when they expect a lot to come out of these these multilateral things that just too many conflicting interest between companies.
Countries excuse me.
So they're gonna come out something that's relatively bland I think the key thing is between now and that meeting up.
Does the US come out with some real specifics.
About is an aggregate of bank is of abandoning you know the bank's situation what exactly are we gonna do that's what we expect revenue to be a shocking and it wasn't that but now I wonder how -- -- if the private demand is there for public private partnership as part of that aggregators.
Bank that Geithner and company are supposed to announce who knows maybe next you know I mean I think they'll want -- -- everything we've -- -- -- is the complexity of -- Lot of programs -- complex and and that and my personal fear is that that private public partnership idea is just complicate -- also get a lot of moving parts you've got to do a lot of people involved in May be.
You know it will take some time at least to get off the ground.
It's Eric Tracy from floor is asking its Friday.
Well -- on my weekend to -- TV coverage I hope not probably sick because I mean they -- -- understand that because it it looks -- the story continues and there it's going to be a point -- -- where.
The public reaches a certain amount of the Josh -- -- not there already because I'm with you mean this step is is complicated in its off so.
At a certain point how we all crazy that is it we're very outraged today and then were extremely -- tomorrow Friday in days if there's no way to move this story and a half.
It is kind of like as Charles described on our show.
A magic trick you in the magicians is look over here he's doing -- down here at six a distraction from the main topic so how even introduced an idea like a bad bank.
Given the environment -- joins us -- these -- right now and -- sell it's not that I think this story isn't deserving play it's as -- -- Really -- in the news aggressive putting can't talk about that -- -- -- That's right now and I think I think maybe we are near the end of the story because you've had action reaction the public reaction now -- having even congressional reaction.
You've got the attorney general new York and quite honestly I think.
We'll have to see what the final -- this but think of a lot of these folks actually give back all or -- big part of these bonuses.
That will help deflate the story.
As an ongoing issue some of it came back but the thing we kept telling.
And I know the media and -- we deserve some some of the extra credit and are blamed for that right we've been talking about it.
All week long but that they kept the gutless congress it.
Racing this bill -- 90% tax because that give us a whole other angle that's a much more serious -- that you're getting retroactive you're going back and looking at.
At that stuff that happened in the past and the precedent being raised they're scared a lot of people -- -- people -- -- -- wall -- -- whoa wait a minute here we didn't think this is actually gonna happen for me to talk about it but you're actually.
Pass this thing.
But he got crazy so that that Kagan does the whole other angle to it what -- -- what do you make of that the whole retroactive notion of going back and taking people's money.
You know right or wrong that they've already been -- Yeah I think -- There -- a lot of people you know that this whole situation.
Is really -- president American.
History in the -- things get done here and I think that's part of the problem.
Even when government is involved is -- for these financial institutions.
We don't wanna go I think rightfully so all the way into -- nationalization so we get this idea -- private people are still running companies that are ostensibly private but they're really not.
So sure I agree with the I think.
I think if a bill passes that retroactively taxes what essentially were legal contractual obligations whether they would done.
You know rightly or -- -- -- done their legal contract you know people get very scared about the government certain.
Doing a second look back at at tax situation or a legally agreed.
Tripp yeah I wanna talk this -- of this congressman on later in the hour about a half an hour about you don't want to vote for this -- -- -- -- -- Washington.
And you it's when you're the logic behind what we often hear -- again the talk is always -- that this economic problem is really about housing it comes back to jobs and watch means actually commenting on this is it's who cares about AIG bonuses.
-- 700000 people lose their jobs each month.
And how many jobs -- a couple hundred million by.
And that's a great question we still again you -- taking the focus off some of these -- -- issues that we've been told repeatedly I think cracks.
This financial problems and to some of the story Phil was in the news.
Because Ben Bernanke said at the top shall we -- this.
The too big to fail problem is extremely serious that's what he says.
Gary says we keep hearing too big to fail who among us is really qualified to say who is or isn't too big to fail.
No company's too big to fail sometimes good comes at a failure but how would -- a stress test for the banks that but only now but -- -- too -- -- what companies are today.
I mean ultimately.
The and the writers points -- them and ultimately it's a subjective decision.
Right then that's -- administration's I think it I think it does that mean and I and and I think that.
You know -- -- people with experience but human beings making a decision that some institutions ties are so global so intricate.
We'll have so so much of a both from a confidence in a practical.
Sort of ricochet effect -- you know going -- -- line.
Domino effect that they can't let fail but I think if you go back again even to Bear Stearns and then.
But now of course in retrospect looks like mistake by letting Lehman go and I think -- now have this idea that what we're really told him -- and not so much in the future would do we want EIG situations with a government for some.
Outstanding amount of time is tie up with a private company will we want is to figure out.
-- better way to actually let a company fail but not suddenly right and not all at once and not in that kind of you know.
Mushroom cloud effect that everyone panics and and so many.
Bad things happen.
So I think the -- input and even Treasury Secretary Paulson raise this thing that but they've never gone to a is let's come up with a structure and agency a group of people in the government who responsible for.
As publicly and as rationally as possible winding down rather than continuing to feed money into the service.
Interestingly different messages that we have a story -- that we did on Fox News this morning am I about Wal-Mart and wal mart's giving -- bonuses.
Still at Wal-Mart should have done good mostly speaking of the last 52 weeks stacked like 6% show on average if you work at a -- -- to register.
You get -- -- her thirty dollars bonus from Wal-Mart.
One I happen to be the largest retailer here in nine states.
But I question whether or not you get that theory that wal -- too big to fail right -- -- you're probably not here that's -- and it really comes to you.
Now what the auto makers are too big to fail and the bank is too big to fail but the largest retailer in the US in the largest retailer in the entire world that would cost too much of a systematic risk.
Now what I'm a lot of people would argue database that -- I automakers are not -- -- But I'm just and the things to extend that thought we forget Wal-Mart is the -- of the low price -- right -- that you took while Miami equation.
And when we get -- cup competition to have low prices and for a lot of and we just.
-- -- yeah yeah I mean if you were thinking about in terms of employment.
Wal-Mart obviously not only is huge -- themselves.
But so many suppliers we -- Wal-Mart is either their sole the primary customer they've -- employs its interceptor I think it and it looks systematic I don't let -- get it about your opinions they're not gonna fail.
And I felt like -- and I -- -- but I but I hit but I think you do you have to go back to your point which is.
Did you know set -- as much as people won't like it.
But separate the financial system -- credit creating system.
That keeps things going from the companies that either sell or make things actually and that way of looking at things then you could argue.
As big a deal -- -- would be that the auto makers aren't too big to fail because they don't have those systematic and absolute.
We and that's the thing you -- and the other thing people are gonna like at the end of the day.
-- point about it being subjective is right that's what we either appointed hired and or elected these people to do runs his all all of government.
That there there's experience in this team here that.
You know is getting either be put to good -- -- you set and I and they all have points of reference they bring the table for Bernanke I assume it's a Great Depression the guy's an expert on and in the study did.
For Geithner and Summers and and that group -- the ninety's and the Asian financial crisis which is when they all kind of came of age and they and you hear -- refer to it over and over that the problem there.
Is government wasn't aggressive enough that we studied these things -- you know where they're coming to the table from a -- they're making these things about a thin -- you disagree with that.
But that's that that's the experience they come to the table with and Bernanke seems to agree with the need although he -- the previous administration because his point of view.
When he talked about sixty minutes he doesn't think the government acted aggressively enough during the Great Depression he studied some of them that's right their investments and guys that are you know again we can say for better -- for worse depending on.
-- you think the government's done so far.
Geithner as the head of the New York -- before the country that victory was already deeply about with the best of the situation already so he.
Yeah he's got some practical -- even in the current crisis.
-- -- Ohio says he's.
In the breaks -- a little bit which I appreciated actor -- you're saying I still want -- explain what the cost would have been if we just let the banking system fail we don't know.
Yeah he'll answer isn't accident yeah.
-- -- to.
Say yeah right I mean I think.
Which of course the real answer is we don't know I mean that's the right answer but I mean if you wanna guess I think it's fair to guess that would be -- terrific I mean that you would.
But it looked like -- -- let's say.
The financial system happening what he's -- -- -- -- -- I mean I think that we'll forcible doesn't fail but you've still protect.
In federal deposit like OK if -- still that FDIC.
I think it's it's not as tremendous but I think they actually think you see things chronicle all I think.
Bill -- trades on the New York Stock Exchange I think nobody makes alone I think nobody pays back Obama.
I think you know go by him and Alan Greenspan was chairman of the -- -- during the Asian crisis which was.
In some ways more minor than this certainly in the US it was more minor was -- more minor and the countries that affected.
But he said you know in his usual way he says things he said you know when.
Human -- faced with -- great and certainly.
And I think that's what have you things with -- I mean people would walk and people get paychecks it would not be good questions -- about this hypothetical right and that's what -- -- problems they can't imagine it and we don't I mean.
Your answer it better than mine but as you said -- -- -- -- -- we really don't know I don't know I think it would be -- responsible.
Test that -- I do believe that OK that's -- -- a lot of people agree with that and some others disagree but that's the issue of substance that we should be debating right or wrong as opposed to bonuses that we've been.
We've tied up in all week and we'll probably -- a good part of the show.
With -- -- -- a virtual reality like -- that you can walk through and a financial system fails you can kind of navigate.
That is definitely let.
But they thank you to to -- for coming -- -- as always it's great to see an election is from from Dow Jones joining us on the program today.
Right well let's take a second this is I can get it -- -- again if we we can show you overtime and everything that comment area on the -- your screen.
I really easy to write and getting a lot of great comments from some new names -- to appreciate.
-- -- of course that you can email I think about her -- You know at the end live on the back.
-- -- and Twitter.
That evidently a lot of Twitter FB -- at foxbusiness.com.
On the Internet we have much -- to go until the top of the -- member David -- -- coming up later on this whole AIG.
Documents wal boy are they revealing documents you're gonna win here David later -- in the.
-- joining us now from Baltimore is Tom grapples and managing director at -- What capitol capitol minutes.
And I have a thinkpad -- that we can -- -- stated that.
And I it's -- reality contributor at thestreet.com.
And and time it it's great to have you why don't we just kind of I got -- And -- bubble were great at it let's just pick up where we left off.
Out with this bad bank scenario we feel like -- might be the next chapter the next thing we hear from the government.
What you expect to hear and when do you expect -- Well I I I think they -- -- come out with something as soon as they can.
I think we've been waiting for this.
Really ever sense ever since the first part plan passed.
Back in October we thought we were gonna get some sort.
Relief on toxic assets and and there hasn't been a lot Bob progress -- that went away so they.
It's having the market and waiting for a long time it's been waiting for many many Dow Jones points ago now I -- -- Troubled Asset Relief Program was supposed to be the troubled assets and intended right in inquiry got -- and skillful.
And turn into a you don't invest in invest in banks.
-- -- instead.
And I think for some of the reasons you you'd mentioned just a minute ago I think because of the complexity of it.
I think that.
Currently Geithner and the Obama team have a little bit more time to work with than than Paulson or the bush team did.
You know back in October so I think I do think that they're gonna have something.
More substance to -- for us the next two to three week.
Natalie from Chicago -- -- and she says.
Aren't all banks' bad banks -- that's probably a fair question and -- mentioning no within the markets were waiting for his bad they scenario several than a thousand points ago.
But is there anything to guarantee that when we hear this bad bank announcement that the market -- -- rally.
Well you know it's I think it depends on what it's like.
I I think that there's a there's unfortunate is a very good chance that.
The bad bank will be two watered down to really.
Resolve the problem one thing that concerns me is that.
A lot of the administration's efforts to date and not just this administration but the last administration.
Have been what I think it's overly focused on and taxpayer risk.
And it pains me to say that but I think that in order for the program to be effective.
I think the government has to really take on a large portion of the risk so -- You're okay so you're saying this bailout we have our bail -- -- and that kind of package at nine trillion dollars that whole pot.
Favre daylight you expect that bailout pot to go up significantly or you would like to see -- up significantly -- shouldered the access -- that would go on is bad bank balance sheet.
I think it's -- the dollar amount I think.
Obviously look at programs like that to golf.
Or the TS -- left which hasn't gotten a lot of play lately -- was one of the first programs announced -- the -- at which is also one of the first programs announced.
They were focused on very high quality assets so even though there was a lot of dollars -- -- is that.
They're talking about trillion dollars -- the -- so far.
The -- dollars thrown -- it it was not really for very risky assets so the risk that taxpayers extremely low.
I'm in my view and I think of the Fed's DO.
I think it's more about.
Really taking all lines.
Some of the problem assets and here I'm thinking about particularly home equity loans.
And -- -- certain commercial loans that they I think those the things you need to get off banks' balance sheets if you want them to do you lever and a significant way.
-- one of the things that -- -- tapping into here though in terms of this whole idea of bringing the public vs private money whether it's need to be more government money or public money -- -- But I think it's that a growing.
Battle -- -- growing sentiment of skepticism that we've seen this week with everything's been mentioned the AIG bonuses and everything else and I'm curious from your point of view this -- -- -- hypothetical -- no despite -- -- but to say.
The government came to you guys at.
Capital capital say we need you guys to take part in this.
In this bad bank -- we need you guys aren't you -- -- -- really evident that could sit on the thing I've heard for some people has been like well we want certain assurances that they're not gonna come after our bonuses or they're not going to be retroactively -- you know.
Punitive in some way to our business and and people are a little bit reluctant because of what they've heard all week long here guy in Washington now.
But now I've got that that's fair -- -- wasn't quite sure where you're going to question that's fair I think that.
I was having some discussions with with a with some of my colleagues.
-- just yesterday about.
The towel which -- just been launched -- and the first.
First couple deals are out and -- seem successful but.
-- do you think this -- IG thing would give some people pause.
-- I do think it's -- it's an instance where the government sort of working at cross purposes unfortunately.
Right but you said in general by the way Ben Bernanke speaking live on the Fox Business Network -- -- -- on television you said originally you'd be glad to they know what you guys would wanna participate Telus blocked.
Well I mean I I I.
I think what the -- fizz oh what the -- The bad bank if you will is -- -- need is gonna need strong management from good bond people.
I think that what it in order or to be effective it's gonna have to buy a lot of complex assets.
-- and and even even.
Sort of plain Vanilla home equity loans become complex assets given the risk the credit risk involved so I think.
I I I think that you're gonna see.
Some good some good investment management firms get involved there are.
-- -- a bit there in the in in terms of a public private partnership.
We really don't know what that's gonna look like it could look similar to the towel in which which really have -- it's hedge fund type vehicles who are supplying the equity.
With the Fed supplying debt or -- -- and -- leveraged.
You know to to buy top assets.
-- with no real guarantee.
Of any performance and in that of the top -- so for example no real guarantee.
The auto loan of the credit card loan or what have you that that that underlies the -- that's how fast that.
I think they could do that with troubled assets where they they sort of supply leverage to you I think that it.
If that's the only way they try to solve the problem.
I don't think that'll be enough -- I don't I don't think that.
I don't think that private money will purchase.
The assets for a high enough value to make it worth about worthwhile for the back to sell.
A -- -- -- free air time first of all how businesses how how is business this day in these days for you specifically.
Our firms doing very well I think.
I think a lot of a lot of firms in the bond business are doing well if they've managed to.
Sort of steer clear of of the worst of the of the toxic assets a lot of a lot bonds as as has been well documented were sold as high quality and turned out the day they weren't so much and I think we are fortunate.
Smarter fortunate -- wanna look at it two.
To stay away from those that stuff.
A -- real quick here.
You know if we look at the market kind of as a jungle write the law of the jungle.
And you had the Federal Reserve coming in and scooping up and guaranteeing or ensuring some of these securities and whether they're good good.
Health securities are bad health securities.
What do as far as competition for the players in the market that would have come -- And and that anyways about the Fed guarantees let's say this distressed funds that the Fed would specifically deal at that cannot -- -- -- -- hedge funds or banks or private equity firms -- Kind of cultivate that that part.
I'm the judge a book you on that part to go and scope this this toxic John.
But that's a better way to kind of cultivate competition because it seems that the Fed -- -- talking -- both sides of their mouth and it's hard to know.
Where competition is gonna come from when they're being so interacted with the marketplace right now.
You know I think ideally we would have private money coming in and and and simply buy assets from banks and and really ideally we just -- the banks -- Take whatever hits they need to take.
I think that that the kinds of toxic assets are talking about.
Or actually relatively small -- part of the banking system.
I think guide I to -- look at Bank of America.
And they and they have something less than twenty billion dollars in sort of capital markets risk of of really high high risk type securities nearby about.
The CD is commercial loans are commercial loan obligations.
CMBS all that sort of stuff -- -- it's fairly small.
But then you look at their home equity portfolio and its 700 billion dollars of you really want to move the needle.
You've got to address those kinds of assets that pressure of straight loans if you will.
You could buy all of those top -- that sort of the classic toxic assets by all of those off banks' balance -- and I don't know that you really make that big -- difference when somebody other the other problem there is that.
Those those sort of toxic gas as your capital markets type assets.
In in most cases are legally mark to market are counting what they're mark to market so.
Banks have taken substantial hits maybe it's not enough we don't -- but they have taken substantial -- It on the on straight loans.
There they mark them based on expected losses.
So a Bank of America might only have two or 3%.
Loss applied to their home equity portfolio whereas in the private market they might not get more than fifty cents in the dollar of that stuff that I -- -- it.
We back may pay off it may pay off a Bank of America eventually but I don't know the market's gonna give them enough.
I want him enough time to get our listen -- thanks offer all the time today we appreciated that time -- -- thanks offer coming up.
-- -- I let's take a quick check now I get they can get in touch with us we're seeing a market that about eighteen points that.
The waiting it is not just of course of the time -- on the screen has got to do an average probably appreciate.
As always got a comment coming in -- -- -- live at foxbusiness.com.
An FEM lining coming up next we do have Eric Anderson CEO at 800 -- -- services commercial insurance.
I think it actually -- -- And it didn't talk about commercial insurance accessible through his concern about.
But that we had to get back to -- It was about a Shibani Joshi who's got the NASDAQ market site in Times Square following all things technology has an -- -- about it.
Well we're a pretty flat trading day different options expiration Friday at Connell and Janet -- down about two points.
Lot of push and pull -- market something that's.
Adding some pressure to our day we got this news at -- Erickson this -- the fourth largest mobile phone company.
Saying that this company -- I can even be able to sell half the number.
Of cell phones in the current quarter that it sold last quarter and that's creating a lot of concerns what's happening -- consumer spending.
What does that mean for all those companies that make gadgets.
And -- devices out there so Erick Erickson is.
Turning down lower but on the flip side we have -- I know you love palm -- on you get the inside scoop there this Palm Pre.
Which is expected it come out later on in the -- -- that first happened this year -- says.
It indeed will come out on time in the first six months of this year so loud that some good news and -- shares -- More than 2% so again this push and -- in the market.
Also we're talking about some news out of apple.
Apple unveiled a new feature -- -- I iTunes store where you can now.
Download it -- an own movies.
-- HD high definition for 1995.
At peace -- even rent and the company try to take on Netflix.
You can rent movies in HD for 499 a pop that really cool feature I think at that you can rent for thirty days for you got him for a whole month.
Which is kind of interesting there I'm already 33 million people have downloaded -- purchase movies off of Apple's iTunes platform.
And also some news out of Microsoft -- the video game makers we know people are staying at home.
And they're doing things like playing video games ENPD group said that video -- sales were actually up 10% in the month of February to one point 47 billion bucks.
Microsoft and big player in that space the second most popular gaming console the Xbox according to NPD group.
And just to let you know the best selling gains last month street fighter -- that we play.
And kills them so rather plainly there -- are aware of trying to be violent and destructive or something like that -- you want to read.
-- trend about that also you guys you guys talking about twittering I'm twittering now.
Way -- -- -- -- -- I let it until then right.
Cannot stop finding you know yeah I got on I got all these great technology articles -- -- off the beaten path up.
Some micro site executives at at a conference last week and it didn't made this big spoofing -- Steve Jobs and got.
Tattoos that -- real thug.
I have that article my my what's your username and Twitter Shibani Joshi -- I think that they really don't dislike him.
I'm not as creative that there were gonna get.
And I really has jumped by enjoys a -- right now I -- money they give very I would you know by the way that apple TV -- -- apple TV's really gonna make a move back.
At -- you don't know about that next time.
The funny thing was about it's about all of the diet Diana as she mentioned I interview that talking about the pre and cellular pomp and I have two phones next you want me my apple on Monday -- reaction motions until you're -- -- endorsing -- journalists -- neutral yeah.
I sent congress except.
-- funny just to get him to in her now speak yes I put up -- Shibani action 100 aren't speaking of mutual retention data DC has been did a great job.
Digging up just about everything you can find -- joins us now it's Friday rich -- a week you deserve a break this weekend what do we have not what are -- able to -- -- of Friday.
Well Friday actually found out that we have a hearing on Capitol Hill that something pretty rare for Friday afternoon what they're essentially looking into is whether federal state regulators and federal state law enforcement.
What -- they have enough power -- enough authority and enough money.
Ought to go after the rising tide of fraud cases -- you look at some of the agencies right now with no reports of specific types of fraud -- a couple of years ago.
I'll mortgage related fraud going through the roof at the FDIC investigations going on.
At the SEC to try to find all of these fraud cases and you think about.
Allen Stanford Bernie Madoff they really are the tip of the iceberg when it comes to this type of stuff.
Yeah amazing stuff so when we go from here.
You know after that you have this hearing will be the next step on that on that particular affront to -- That's going to be interesting because congress right now is playing with a bunch of different things as you know one of -- -- over all the regulatory system so there are going to be some agencies that may get folded and other agencies.
That well get different types of power or more power or more authority.
A but I think the end result of what you're going to see in all this I think it's going to be politically in in the political appetite to make sure.
Other -- agencies get some more money you don't you listen to the FDIC and all that have to go into the closing of just one bank.
One bank failure has about eleven different investigations launched as soon as it's closed you have attorneys you have folks staff that that the FDIC other agencies.
Looking into what exactly went wrong and where do we go from here so -- just think about that.
Each particular case -- broader each bank failure.
All of the resource is that attacks we've had about seventeen bank -- so far 2009.
Only a few months into the year last year we had twenty.
That interstate hop hop off topic here really quick -- at.
Because we actually done a second but were speaking to congressman -- and a little bit talking about the fact that he voted yes on this bonus don't.
Just let me say that it won't be here one question for for him.
It's actually fight a first market I ever worked and I cover congressman -- used to work in Eastern Pennsylvania -- that's it's got to make it to but the one question I have is does he think.
That the house version is more effective -- the senate version.
But again I think you also want to ask him why he voted with so many against so many members in his own party -- that -- -- -- probably for almost split on this measure and and a lot of them -- with Democrats try to push this thing through and of course -- the obvious question out of a lot of folks are asking -- will look past and is it constitutional.
Yet we don't have -- I don't -- that senate version by the way it's -- the tax rate is what it's much much lower than ninety right they have that much right right.
It's like 35%.
On the entire amount of a retention bonus and -- 35%.
On anything about 50000 dollars -- talking about non retention bonuses the house version meanwhile.
Taxis in 90% on bonus amounts above 250000 dollars so again that's Genesis congressman.
-- jets coming up in just a few minutes from the state of Pennsylvania Republican -- in and voted in favor that they'll are rich thanks a lot.
It -- -- to prevent -- had a problem.
And hurricane and Murray coming up we got Eric Anderson joining us from man to be good Eric -- and yet these just to check once again.
Hiking and -- us now.
It's not in its infancy that when they're angry at the we have producers and your -- that.
-- -- -- -- who's gonna bring you -- right now Eric guy is joining us from.
And I appreciate this is first thing for the -- urged them this is -- -- -- I think first of all questions explain it -- look at what is -- -- -- your back -- -- -- conference sure -- on it is the world's largest insurance broker.
And human capital consulting firm okay life insurance brokers -- how that different than insurance company like anti we assist.
Companies in purchasing corporate insurance programs we are advisor.
And we represent them to the insurance companies in the market still would you then going to accompany it and save AIG is offering you our -- what part of AIG's offering you the right insurance for your business I have ever worked so we.
Would work with a company -- or small sit with them and figure out what type of insurance and need to protect their company.
And then go into the marketplace of which AIG would be an insurer.
So there was -- chain bank.
For example and he had yet with good could be right now.
If you're solvent into beta public company and he's getting involved in me credit derivatives market for example would you have been suggested to him.
This is the type of insurance need to ensure that -- your business.
So most of it it involved a couple of -- it involves the basics of property and casualty of the building within.
Okay that all happen and as individuals and then as a bank gets into more.
Sort of diversified or complicated -- there are special insurance products that will protect them either from their liability to their customers.
Or in the event -- -- -- events that happened to the actual promises.
Are so for the board directors fair enough so.
This is tough times I have Eric I think -- -- -- tech industry understand and you read it holiday edgy story and -- just -- that very happy.
It looks like.
A little bit about the abolition of AIG and just in terms your interpretation of what they did their so.
In the late eighties apparently AIG started to change -- this is my little bit and got into these credit default swaps which are insurance on bonds -- -- it's still the insurance business but.
A totally different derivative of that insurance business which was different -- their core business so.
You're job is to kind of model risk get a -- rights or what what.
Red flags stood out you know looking back now that -- -- what he taught in terms of what they're too much risk taken -- abyss that they should have been into the just managed -- poorly.
What do you think went wrong there we at the end of the day I think you're.
When you hear a lot of people talk about the quality of the regulations around a company and AIG size in terms of the businesses that they were in.
The other reality is what AIG was known for up until the last six months was what they did in the commercial insurance here which was to provide companies big and small all hosts -- -- And so when you look at and it's been interest in following the discussions are on the bonuses in the bailout you know the reality is the government bailout of AIG that happened back in September.
Was incredibly beneficial.
To corporate America big and small based on the amount of insurance traditional insurance products that they provided to companies of all shapes sizes.
And without them in just give you some -- -- AIG was the largest commercial insurer in the US and it dominated almost every product that was involved.
So whether property insurance when it was directors and officers returned whatever the product line.
They were the big player on the street.
I'm had to get -- will quit just for second to get a Fox News duplicate gonna leave you with one question to answer from one of our viewers.
Gary -- Eric are are they sending to his time trying to solve all of the -- sentence and not solving the really real problems in this industry.
And you can I am not and not your walking away and ignore it.
Got your back that's gonna.
At the end of the day I would say no because I think from an insurance industry perspective as soon as you can get to help the insurance company away from the troubled.
Right then you'll see stability returning to the corporate insurance market.
So short answer is no I think they need to fix and find way.
To deal with -- the problems of the parent whether that's spinning out or selling or whatever solution that they're working on to fix the insurance company right would be a good.
-- okay and then insurance companies still are held up in very -- -- very healthy right but the ideas how do you spin off these other.
Components seven and and do that and it in a quote that this the word now they in an orderly fashion -- don't -- silenced by the more doesn't seem like for the right price and maybe somebody does but I mean how how do you think this -- -- play out.
You know I think if -- the -- Round of announcements -- amount of AIG around the restructuring into a separate company called you holdings right if they can pull that off where the government begins to spit it out into an IPO in the market returns.
Sounds to us like the best plan we've heard so far -- -- assuming that there's nobody out there to actually buy pieces of how does this all affect your business and they for example when they ought to be a buyer of some of these these units now we are not are we are not in the risk taking business and don't plan to get into -- don't plan to get into it I know we -- we are strictly in the advice business in the brokerage business.
But certainly for our customers.
You know as I said before AIG is a dominant player and they have long standing relationships I'm very complicated insurance issue.
They very much want to see a strong solid AIG in the marketplace.
Right so then that this does matter to them is certainly how this whole thing plays out and -- -- it's a two behemoth that's so huge.
Any sense on how it is you know -- timing wise -- this is going to be able to be wound down I mean we've been playing around this for a while now I'm sure in the grand scheme of things maybe it's not that long but.
And now we're getting caught up in this bonus -- is we get distracted -- -- times -- try to do it but back to the core issue of trying to orderly unwind of AIG we mean when you think that it happens over.
We're hearing terms like three to six months where they create the organization as a separate entity and then as soon as the markets open up where you can do IPO but they'll begin to do okay and you think that I mean is that realistic that big markets would be open up for an initial public -- six months from now.
For company like this you know at the end of the day it's a very profitable farm as an insurance company -- and so my guess is if the markets will open or when they opened this would be a good bond interest staying we're talking -- Anderson from.
From -- on CEO of risk services today on you know this has been some period right over the last year so we we had to Bear Stearns anniversary so to speak the other day.
I think Patrick's day we also I think about it a little bit -- -- all the things that have happened that.
From where you sit mean is anything just.
-- mean I'm sure a lot of surprised too but what really stands out in terms of what how will this -- question earlier.
How will this period do you think be remembered when they write the history books out 15100 years from now.
But I don't think they're gonna wait that long to read -- mr.
-- you know at the end of the day I think.
But clients understanding of basic insurance principles right for them the diversification of risk.
And the amount of business that they did -- AIG around the globe.
And so it just their remembrance for people that are in this business that you need to diversify your relationship -- need to diversify how you approach business chair and over time AIG grew to be an extremely dominant player almost two dollars.
And that in those days back in September when people realize there was a possibility of -- -- bankruptcy that they may need to go and replace.
You know billions of dollars of premium over the weekend.
I know they realize that there was not a market able to do.
You know it seems like the little lesson in diversification is one that we're supposed to learn from every crisis that we never did arrive at a lot of ways and that was what happened -- the dotcom bust.
That was what happened -- you know big company said that went down that people ought not downward but just huge declines -- their stocks and I think about -- for example of people have a retirement funds.
Tied up in it that was years ago or a decade ago and now we're back to -- That was the what was really the lesson of the Madoff scandal a lot of -- what can we ever learn this lesson of you don't put your -- all -- all in -- -- -- -- simple it's there's a couple of dynamic so you've got the short term pressure of price where people compete on price and if you are the cheapest person and you buy your insurance -- products as most people do and they do for a lot of other.
You can accumulate -- very quickly by buying it all from the same.
Employer if they are the best terms and conditions are -- any product.
Which is what happen to a number of the clients when may look back and that we can in September and realize just how exposed they were to AIG from an insurance standpoint.
Many of them were very very surprised.
That shouldn't happen should should not happen I mean being surprised about your own exposure to something as big as they actually.
There's so many mistakes made in this whole crisis I mean bye -- -- all on all fronts really mean consumers -- -- getting into deep right hip and things that they should have been involved in financial services firms made mistakes insurance companies.
Made mistakes come -- it's certainly have I've made mistakes what what's than.
What's the most glaring areas or something could have been done differently one of these big events.
That wouldn't have made things as bad as they are right now.
Well I think just understanding what was going on me on financial products world would have and its impact that it could have on the overall firm -- certainly.
It's got to be the number one lesson you can come out of -- that you we were looking at AIG as the rest of the world looking energy as a -- -- insurance company.
And it turned out -- -- side business not core to their mean.
Business have been built up over a hundred years could bring it down in three months amazingly -- aren't just as we wrap profits is because and it's been the news of the week.
This whole this whole idea that congress pass or the house passed this idea of a 90% tax on the AIG -- not only those phones is probably bonuses and other firms to take five billion more.
In bailout money.
What's your take is somebody in the business for all of something like this backward looking event.
That happened congress yesterday I mean at the end of the day when you when you look at again from an insurance perspective when you look at AIG as a player -- -- marketplace.
The number one thing that they sell -- the quality of their people.
The experience that they have been managing and identifying risk.
And issues like these do create.
You know questions for clients as well as those in the business of how Long Will they be able hold -- their talent.
So while certainly retention is a rare -- you know -- tell you is a very significant issue right okay.
Eric thanks for the time today we appreciate it Derek Anderson from -- on CEO of -- -- reservist is are we.
The reason I brought up that bonus issue at the end -- can -- It's in a moment for Fox News an -- as I know many people watching her -- on Fox News coming in the board -- so multi -- We have congressman Charles dent of Pennsylvania Republican in the fifteenth district who joins us now by telephone we asked congressman -- to come out and really we appreciate him coming on.
To explain why he voted for this tax yesterday 90% tax on these bonuses so congressman -- the floor is yours tell us what do you know we've talked.
-- nothing about this all day long and and been curious to someone who voted for it what was the logic.
But it could come out.
Thank you perhaps don't show.
First of me just say a couple things I think we -- understand that this company is 80% generally go right.
It is reasonable to encourage individuals.
They can -- a quarter million dollars to think a responsible decision.
Past they're government -- baucus.
Or had a picture -- I think that's reasonable.
I don't think any tax -- don't want to be in the business of all the AE IG I think that the fact that.
That this language allowing for -- bonus payments pressure.
February 11 the -- so called.
That have to be repealed.
By the taxpayers expect a 100% recovered and these are extraordinary times.
Okay no I understand -- about here's the issue that I'm hearing from.
A lot of people come to me in the last their sunset all right find what you -- for all angry at these bonuses and we think -- never should have been paid and they were mistakes to begin with.
That problem here is is the retro active nature of what you're doing in other words you're going back in time and taking away something that was already there.
The precedent that you're setting is scary to many people.
The people you're staring congressman quite frankly of the people you might need to pass other programs -- tell.
Beat the bad bank hedge funds private equity funds other financial services firms.
You don't -- what's the motivation for them to participate in any government program now that might be necessary to save the economy if they're worried about you guys come in and taken their money.
Or restricting their business and in another way even with a law that may not be written yet.
Over what we see something with that Arnold was -- Back into early October.
There were a provision that legislation to allow for executive compensation -- As well as.
Severance package -- parachute restriction.
The fact the treasury under secretary Geithner has failed attempt to negotiate reasonable.
-- Restrictions on bonuses I think is that acceptable and that took a lot of members of congress by.
I voted against the stimulus package this language that was placed in the so called but I suspect.
-- -- That language nobody -- the bill.
-- about the issue of of the you're gonna need these guys in the future some of these Wall Street folks.
And all you didn't shoot yourself in the foot by taxing them retroactively on bonuses that were already handed out.
And that now they're worried that the same might happen to them these.
-- of the rules change in the middle the game don't don't.
-- -- -- -- rules only apply to individuals.
Who are firm's work more than five billion dollars.
That's a lot of arms congressman and it's everybody on Wall Street it's a 203040 billion dollar -- all the big Wall Street firms.
-- 250 grand a family mean you're talking about the majority of Wall Street workers as well you're going after essentially again the people you're going to need.
If you if you're in favor some of these programs and he voted against him but that just the idea.
Of the government coming out next week with a bad bank plan and -- -- private equity firms to take part in it and again these guys are saying.
Why don't want to be involved any government program if you're right direct to be -- take my money your affect my business in another life.
Well arteries the vote that is still -- -- Cuba I think we're getting the and sent people into our program.
That's another reason -- support this bill a lot of that.
The congress -- -- there -- a lot of businesses didn't -- -- be in that TARP program to begin with.
Well -- it.
Sure about it anyway -- we're not talking.
Giant AIG and that that that means economists point out to jump in your -- There's been banks out there that -- -- listen the government says I had to take a billion dollars of this TARP money so.
If if you are strongly encouraging them from Washington to take this TARP money now other gonna have regulations according to this bill that passed in the house.
Then again they didn't have a choice to say and then you wanna be -- your plan to begin.
But anybody wanted -- to our program I thought went -- with their eyes wide open -- -- wanted to executive compensation but -- And they didn't even -- it's on executive.
Severance packages golden parachute I thought that was quite clear at the time to get back into the TARP law back in October.
OK so let me say they want -- see you then say right now okay you know what it begins changing the game changing and these are rules that we did not expect and so guess what here's -- -- money back right now we don't want it.
If they want to get a guitar -- That's their prerogative.
And I think that I won't be happier -- together -- like them.
Surely you're gonna need him to these other programs what they don't -- -- in to tell for they don't wanna -- and you know to the bad bank aggregate -- bank -- through a public private partnership apparently.
When they don't wanna get in -- one thing -- -- -- get out of -- -- -- -- -- the money back but what if they don't -- -- participate in these other programs are -- on trouble.
Well that that it would have to first make sure that everybody understand the rules.
-- Think that's what we have to have treasury than they had ever been very clear winner by nearly -- understanding people who we're not gonna happen.
We shouldn't be a position over the past legislation at a very early banner as -- as -- result of stimulus and we also saw what are.
And I don't and I did just now we didn't.
-- -- say that not -- stimulus but we're doing exactly how -- AIG conversation just happened over the weekend we jets' pass legislation in the house.
That happened within four.
Days that's how fast we passed and so the question is you're saying we have been very clear about the rules of congressmen right now give us three -- for this financial system moving -- what are the three world that are out there for the market.
Well first -- legislative process the -- passed the bill.
This is just one step in the process so that's going to take.
That's and it's gonna do it Everett does the president's going to have to come out and make state contest I'm not the one who's gonna sit here today determine what the rules are going to be.
That's why we have a Treasury Department has you know -- -- -- our consulate spots over there yeah at least we have to have leadership at a treasury and the administration.
What the rules were going to be yes we can -- brought policies congress to pass laws but -- -- going to need these.
Bought be implemented effectively we have learned -- treasury.
I'd be very clear and they were not clear here with these.
These bonuses of AIG I didn't I just find.
Unconscionable that treasury was not aware these bonuses that they just awarded thirty billion dollars to AIG.
What on March the second.
And and there was no discussion about the bonus and I think certainly that should have -- again.
I think a lot of people agree with you on that I get it again the issue that we keep bringing up his we're hearing from a lot of people is that.
All right maybe even if if you wanted to do this fine but do it from here on out don't go backwards and do it.
Because then in the future people are gonna worry about that the rules that you make up for any program aren't worth the paper they're written on right.
Understood and believe me the retro activity.
Portion of this legislation does does -- because these are extraordinary times however.
You know again.
It is there's an 80% ownership here by the taxpayers into AIG the taxpayers' dollars are being used to fund.
The bonuses and that's what's got everybody excited here that if there weren't if we didn't have this level involvement we thought it would be having this conversation right now I certainly wouldn't want that kind of.
Fair and one thing on what -- of this conversation is 300 some odd.
Members congress voted -- in favor of this including about half the Republican caucus I think and we called a lot of them and congressman -- the only one that voted for that said.
-- come out so we appreciate that we appreciate you coming on and and defending your.
Your views of thanks a lot congressman -- you -- -- but here.
The debt from Pennsylvania Republican who voted in favor that 90% -- The vaulted.
To rest him and bring them a lot thought that -- night.
But this text is just take a breath email us at -- the -- and -- on Twitter -- -- Lima also of course the comments on the screen which are cutting fast and furious.
Let's refresh the this thing at halftime and I'm -- that we have a lot of questions coming and we're gonna start let's.
You're not tough on me is you -- -- a congressman boy she's no -- -- -- I'll tell us Japan.
And I was good question.
But he -- stood his ground well that was my final thing we did call literally caught a lot of these kind of like when people -- standup but they -- economy and they don't run away they standard absolutely -- -- -- -- or -- -- tell us why you voted for you know we -- we've got these documents -- -- fascinating right out of the yes we -- and and a course that it'll -- -- lawsuit against both the Fed and the treasury.
What I think you're talking about -- the congressman is is whether or not they should have seen all this.
Remember the TARP program as big as it is what is -- 700 billion dollars for structures about 300 billion.
It's run by.
Forty people Neil -- -- it was the same guy that ran the Bush Administration is still there under the Obama administration forty people handling 350 billion dollars.
It's a huge task and it's one of the emails that we received -- as part of the the bunch of papers the thousands of papers we have been combing through.
Is a note an email between an assistant Treasury Secretary and -- -- Perry's public affairs officer back in December.
And -- the treasury assistant secretary says how's it going.
The public affairs option is bad serious questions to.
Not chump types are questions these are when -- -- are receiving identified testify in front of congress.
They're going to start to break kneeled down soon I'm getting worried.
That he's going to start snapping -- answer this AIG's stuff is tough to watch.
And then the public -- -- says they killed him.
On executive compensation.
He didn't know the answer so get.
It's not like there's a conspiracy.
To hot you know that there was this conspiracy to give bonuses to AIG guys there wasn't they just didn't have time they didn't have the personnel to answer all these questions.
You can't have the government spending 350 billion dollars Willy Nilly and not expect crazy accidents like this that perhaps.
And by the way it would have a -- in the years that had a good the -- guy.
-- It's right at me if I got a really I was going to be all over -- tonight and in recent you know even in practice that's that -- -- you can -- our technological -- -- looks -- -- Just give up.
Until we all okay so they don't have the staff I think that's -- -- -- -- staff and uncertain and and -- for the question and is David and it is the staff come on a waiting game and the.
Now that's another good -- probably from a lot of -- banks that have gone out of business -- that are being pushed out because they go to treasury for a while but that's Bloomberg.
Not -- I had Elizabeth Warren are we you all know Elizabeth essentially she's fabulous she's the woman.
Who congress put in charge of overseeing the TARP program -- boys she -- a lot she says it's a mess.
That we we -- spent 78 billion dollars in the first -- to the TARP program we either spend too much for assets from -- just been lost.
She says that the only thing that can save us from seeing things like this happen again is full transparency remembered as the first day I believe the president was on the job he said.
This administration is for full transparency.
But we still haven't seen all the papers and the Fed hasn't given us anything and didn't they say it's because the Fed is a private institution -- right.
The Fed is a part of the treasury right now they're working hand in glove -- -- the Fed is administering.
Money from the treasury and vice Versa so they can't use that excuse they have to have complete transparency.
That's the only way we're gonna know the truth one of the things just try to get out of the with the congressman as well not always is retroactive but do what you know why didn't they they do something.
You know back in the fall and there was talk write about some of these bonuses back in the fall they'll look at Fenway and some of the records that we have indicates factors one that I have from November 25.
In which they say this is what they put in the TARP program went remember -- first administer the program and they -- the portfolio over to treasury.
And during that time they said the treasury said the company.
AIG confirms that none of the proceeds of the purchase price forty billion dollars the treasury put -- AIG nor the funds -- the company under the credit occur agreement shall be used to pay annual bonuses or other future cash performance awards to executives if it looks like it's spelled out.
A question on that because with some of the money OK so let's say it does affect Citigroup gets 45 billion dollars.
What is -- Citigroup has -- I mean they sent back to.
In that money's not a direct funneling to bonuses right -- is it that can be proud that you're getting a bonus you can get stock from the company.
I did think that direct line.
Fran that the government to the banks of the bonus may not be -- Totally value and and you touched on something much different which is yeah money is fungible there's no way you can isolate a little bit of the money that's going into administrators say okay this is.
For this program is for.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I've actually make letter today to protest this weekend about -- your questions your money with our good friend Dana McDowell Tracy Byrnes is going to be with her as well 10 AM to 2 PM in the Fox Business Network special focus.
On small business an entrepreneur -- -- in the noon hour from noon to -- actually so you wanna tune in for that had a good week.
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