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Helped craft the -- it's not coincidental.
The things he did here turn out to be the exact same things -- Recovery Act fast because way back in the transition period before we were sworn -- When Barack Obama -- literally sitting at a desk and a high rise.
Beginning to plan.
How we would try and get this economy out of -- ditch.
The first guy I called.
Was Jon Corzine.
Not a joke.
Not a joke.
His first noises smartest guy that I know in terms of the economy on -- finance I'm really mean this.
That was vice president Joseph Biden in -- may seventh 2009.
Before -- New Jersey governor Jon Corzine.
In words and I'm sure he wish he could get back in the teleprompter and this is power play.
And -- we are -- skill by Ford O'Connell and Debbie dingle we are very grateful to people for shepherding this through this process.
And we're going to talk about Jon Corzine in the one point two.
Billion American dollars that are missing from with the investment firm that he had -- all of that good stuff later on.
We're gonna get to more of your chats but I want.
You to be illuminated Internet I want you to know some -- very important.
I want you know what Peter Barnes.
Has to tell you about the health of America's banks right now because it could matter a great deal view.
Brother Barnes welcome back to lose power play how we doing today.
-- -- Chris undone while we are talking I just wanna make a distinction we are talking about the health of commercial banks you know way I don't checking account where you.
Maybe get a CD or something like that vs.
MF global which was.
More of a derivatives trading firm commodities.
That kind of thing and what.
Not was not a commercial bank.
Peter I promise we will save the -- crass political discussion about Jon Corzine who later in this segment that from you.
We want to get to know about stuff that really matters and that is how healthy America's real banks are so what's the score.
Well we got out positive report today from the Federal Deposit Insurance Corp.
its quarterly report for the third quarter shows bank profits hitting 35 billion dollars.
In the third quarter and that is the pre crisis levels they're back up there.
Earning about that last time we saw that was the second quarter.
So the -- -- are going to be rolling -- Wall Street again is that what you're telling us.
Yeah I don't think they ever left today.
True that's true -- be surprised if you can -- -- fifteen billion dollars but we also saw that Citigroup wasn't at Citigroup.
Has been urged to shore up its balance sheet.
Bank of America as the Bank of America today the Wall Street Journal reporting today.
Want Bank of America to do more to shore up its balance sheet.
I asked the FDIC staff in the briefing after.
-- report was released about Bank of America specifically they declined to comment they don't talk about specific banks but.
It's been widely reported to be -- day.
Has had what they call an informal memo memorandum of understanding.
To try to improve its finances.
Now what about the fact that -- there as some exposure for American banks with what's going on in Europe right now.
With basically this slow motion failure.
That's gone on over there is there how much -- of contagion from what goes on in Europe two American banks is there.
That is the number one concern for the FDIC and I I think it's fair to say other regulators.
We asked about that this morning as well.
The US banks don't alone a whole lot of direct.
Sovereign debt in Greece Italy Spain.
Very -- I think it's under under ten.
Ten -- is never call it the last number they did you write that out today and then in the -- but.
They do have a lot of exposure and -- these derivatives that we've got that that are blamed for helping the cause the financial crisis.
You know these so called credit default swaps are basically.
Jargon aside they're just basically insurance policies on deck.
That's basic -- and investments that's what they are.
An American banks Everett underwritten a lot of this insurance.
Four European banks -- -- and and sovereign debt.
Over in Europe and the head of the FB IC the acting head Marty Rosenberg said today.
That's -- in the number one thing that they're watching right now and treading trying to get their handle on.
Peter -- thank you for elevating our conversation today we will now turn back to grab it I'll honestly I bring up global -- You -- -- well let's talk to let's bring our panel and and talk about MF global if you want to hang out we would love of course to have you.
So here's what happened to guys Jon Corzine was.
One of the rising stars inside the Democratic Party.
Lost -- a surprise election Chris Christie in 2009 now it turns out that is.
-- political career.
Predicated on a large fund based on European debt.
Has gone south and then there's one point two trillion dollars and nobody can seem to lay their hands on he's starting to actually look like -- Chris one point two billion Peterborough failure Barnes fact check.
I -- around.
But it's a lot of minutes a lot of money even at one point two billion.
Are their political legs to this daddy didn't -- thing.
I -- your political answer a lot of people that are still angry and one of them.
Perhaps somebody I knew anything nonpartisan way warned about what was gonna happen when plastic -- was repealed an Internet years ago.
We need to have accountability what has happened here is wrong weak banks are making all of this money but I think even festina -- the investments -- we.
Seeing -- -- being extended up there to help the recovery.
No I think that it's an outrage that we're starting to see these big bonuses that thanks again where were not seen what needs to happen.
Wii Fit -- the American economy recovery and I think what we need to see some real accountability -- what we've seen in.
He's an investment -- press.
For what he says Jon Corzine -- -- liability or just if any humility and women cannot not have I'm not saying it's the same thing that we I'm just saying that in terms up.
A scandal that that hangs on and continues to be around.
Absolutely -- you wonder where the White House -- its advice Britain if I'm wrong but I thought we were.
Considering actually bring closer the White House and given where we are economically that would be a little bit scary.
Particularly after -- now.
And you know other various like lightsquared that we really have to think about where's the White House getting its economic advice.
In terms of ensuring confidence we're gonna get out of this economic downturn to your point I do agree with you about it accountability because we cannot afford another -- and a.
I would actually say Wall Street -- is giving advice to both parties Republican and Democrat right so I don't think that you can differentiate.
-- -- -- -- veteran correct OK let's get the word last word Peter Barnes who was so good to speak to stay and wait for us our brother burns what's the last word on MF global.
Well the regulators are saying that they MF global action and example the system working because it wasn't a bailout.
They're still trying to find one point two billion however.
-- system work.
There's only one point two billion dollars missing this is what we -- -- and a low bar we thank all of you for being with us today and Internet I have to tell you -- the good news for you good news for you as I'm off tomorrow Juan Williams is in in my -- what a treat for you and then we're off the rest of the week as we celebrate Thanksgiving with our families and we are very thankful for you making time in your lives to be with us and we hope you have a very blessed Thanksgiving we thank you so much and now.
As we like to do every day we want to leave you with the word from.
Our friend Charles.
I think it's quite remarkable what we just heard from the president.
His own senator defense that said last week in testimony.
That is -- sequester on defense goes into effect.
It will have a devastating effect on the military.
And essentially it endanger the security of the United States here's the president a week later said he will insists.
On these sequester the automatic.
Cuts in defense.
Unless he gets his way he was a -- in this entire deal.
He was in not only in Asia -- crunch -- was not only uninvolved in these negotiations.
But he was clear that he had no interest in in any serious outcome of the Republicans offered senator.
To me -- and an increase in tax revenues.
Which was supposedly.
The one thing that Democrats had said they had to happen.
-- and Democrats -- rejected it.