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| TIME | SPEAKER | TEXT |
|---|---|---|
| 00:02:16 |
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WHAT'S BEEN YOUR OWN RELATIONSHIP WITH MONEY? |
| 00:02:19 |
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MY OWN RELATIONSHIP TO MONEY, THE WAY I VIEW IT, MAY BE DIFFERENT FROM A LOT OF OTHER PEOPLE. I VIEW... |
| 00:02:52 |
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WHERE DO YOU LIVE? |
| 00:02:54 |
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IN CHICAGO. |
| 00:02:57 |
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HOW DO YOU MAKE YOUR MONEY? |
| 00:02:58 |
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FROM INTELLECTUAL CAPITAL. SO I USED TO WORK MORE WITH MY HANDS. NOW I WORK MORE WITH MY MIND. I... |
| 00:04:14 |
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WHAT WORD WOULD YOU USE TO DESCRIBE WHAT'S GOING ON? |
| 00:04:18 |
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I WAS SOME COMPLICATED FEELINGS ABOUT WHAT'S GOING ON, BECAUSE I'M SURE THERE ARE MANY PEOPLE WHO... |
| 00:04:59 |
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THE ANSWER I WAS LOOKING FOR A WORD LIKE WE HEAR THE COMMONETATORS USE, LIKE I'M SCARED. ARE YOU SCARED?... |
| 00:05:10 |
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WE SHOULD BE VERY WORRIED. I DON'T WANT TO SCARE THE AMERICAN PEOPLE. LET ME FIRST SAY, AND THIS IS... |
| 00:06:47 |
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DO YOU THINK THE $250,000 LIMIT WILL BE EXTENDED BEYOND? |
| 00:06:52 |
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I HOPE IT WILL BE. THE OLD LIMIT WAS $100,000, AND THAT'S A BIG DIFFERENCE. AND I THINK PART OF THE... |
| 00:07:54 |
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THIS BOOK, "DEAR MR. BUFFETT," IS YOUR BOOK? |
| 00:08:02 |
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IF YOU COUNT THE SECOND EDITION, IT WOULD BE MY FIFTH BOOKS. MY FIRST BOOK HAS BEEN ON CREDIT DERIVATIVES.... |
| 00:09:48 |
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DID THE SIMPLE THING OF DEFINING A LOT OF THIS LANGUAGE, CREDIT DERIVATIVES, WHO INVENTED THAT TERM?... |
| 00:09:56 |
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I DON'T KNOW WHO INVENTED THE TERM. IT'S BEEN AROUND FOR MAYBE 15 YEARS. BUT THAT DIDN'T START GROWING... |
| 00:10:10 |
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DO YOU UNDERSTAND WHO STARTED IT? |
| 00:10:15 |
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JP MORGAN-CHASE WAS IN THE FOREFRONT OF PUSHING THIS. AND IT WASN'T MEANT TO BE A BAD THING ORIGINALLY.... |
| 00:11:53 |
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YOU SAID A LOT OF THINGS THAT A LOT OF PERSON, I PUT MYSELF IN THAT -- A SUPER FUND? |
| 00:12:07 |
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IT'S SUPPOSED TO BE SUPER SAFE. I TAKE A PACKAGE OF MORTGAGES AND I PUT THEM TOGETHER IN A POOL, I... |
| 00:13:22 |
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ALL THESE, BY THE WAY, ARE NOT BACKED UP BY THE FEDERAL DEPOSIT? |
| 00:13:26 |
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NOT AT ALL. THIS RISK WAS PURELY ON THE INVESTOR. MANY OF WHOM WERE SOPHISTICATED INVESTORS. |
| 00:13:33 |
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WHAT HAPPENED TO THE -- WHEN I WAS GROWING UP, THE SIMPLE PROCESS OF GOING INTO A BANK AND GETTING... |
| 00:13:53 |
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YOU HIT THE KEY PROBLEM ON THE HEAD. AND THAT IS, IF YOU HAD GONE TO A BANK, A BANK JONALLY KNOWS ... |
| 00:15:52 |
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DEFINE THAT PERSON OR THAT GROUP OF PEOPLE THAT DECIDED THAT THIS WAWS VERY QUICK WAY OF MAKING LOTS... |
| 00:16:02 |
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THERE ARE A LOT OF DONCHINGEAS OUT THERE THAT PUT THE TAIL ON. THERE WERE A NUMBER OF MORTGAGE LENDERS... |
| 00:18:45 |
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TELL ME WHAT YOU THINK. I CAN SHOW YOU A VIDEO OF BOTH THE REPUBLICANS AND THE DEMOCRATS SAYING OVER... |
| 00:19:12 |
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THIS -- |
| 00:19:14 |
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BUT THIS COULD HAPPEN AGAIN. |
| 00:19:17 |
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THIS IS IS A BIPARTISAN PROBLEM. YOU HAVE PEOPLE LIKE BARNEY FRANK AND CHRIS D.O.D. WHO HAVE BEEN... |
| 00:20:15 |
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IF YOU LOOK AT THE BOARD OF DIRECTORS OF FREDDIE AND FAN EARKS BOTH REPUBLICANS FROM POLITICS AND... |
| 00:20:29 |
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THERE'S BEEN A LOT OF CRONY CAPITALISM. AND I THINK PEOPLE NEED TO PAY ATTENTION. WE HAVE A FINANCIAL... |
| 00:23:17 |
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WHERE WERE YOU BORN? |
| 00:23:18 |
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I WAS BORN IN CHICAGO. BUT IN MY ADULT LIFE, I'VE LIVED IN IRAN FOR A YEAR, IN NEW YORK AND LONDON... |
| 00:23:34 |
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WHAT PART OF CHICAGO? |
| 00:23:35 |
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THE SOUTH SIDE OF CHICAGO. |
| 00:23:37 |
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DID YOU GO TO HIGH SCHOOL THERE? |
| 00:23:38 |
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YES. |
| 00:23:40 |
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WHERE DID YOU GO TO COLLEGE? |
| 00:23:44 |
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I WENT TO COLLEGE IN CHICAGO. |
| 00:23:48 |
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AND YOU'VE GOT A CHEMICAL |
| 00:23:49 |
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YES. |
| 00:23:50 |
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WHY? |
| 00:23:52 |
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I ALWAYS LIKED MATH AND I LIKED CHEMISTRY A LOT. AND MY FATHER HAD DIED WHEN I WAS 12 YEARS OLD, AND... |
| 00:24:52 |
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YOU MARRIED AN IRANIAN. |
| 00:24:53 |
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THAT'S CORRECT. THAT'S MY EX-HUSBAND DS NAME. |
| 00:24:57 |
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WHERE DID YOU MEET HIM? |
| 00:24:59 |
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IN ENGINEERING SCHOOL. |
| 00:25:01 |
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HOW LONG WERE YOUR MARRIED? |
| 00:25:02 |
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FIVE YEARS. |
| 00:25:03 |
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AND WHAT DID YOU LEARN ABOUT LIVING IN IRAN? |
| 00:25:08 |
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WELL, YOU KNOW -- |
| 00:25:09 |
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WHAT YEAR? |
| 00:25:12 |
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BEFORE, DURING, AND AFTER THE SHAH WAS OVERTHROWN, FOR THAT PERIOD OF TIME. AND I LEFT IRAN AROUND... |
| 00:27:51 |
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WHAT WAS YOUR MAIDEN NAME? |
| 00:27:55 |
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IT WAS A GERMAN-AMERICAN NAME. I'M AN AMERICAN MUT, IRISH-GERMAN MIXTURE. |
| 00:28:02 |
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GO BACK TO THE FINANCIAL SERVICES. WHAT COMPANIES? CAN YOU NAME THEM? THAT YOU WORKED IN FOR 20 YEARS?... |
| 00:28:10 |
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YES, I WORKED FOR A NUMBER OF BANKS INCLUDING MERRILL LYNCH AND THE FORMER PAIN-WEBER. FOR GOLD MAN... |
| 00:28:43 |
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IN ANY LARGE COMPLEX FINANCIAL BUSINESS WHERE THERE'S A LOT OF MONEY TO BE MADE, YOU'LL ALWAYS HAVE... |
| 00:33:08 |
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THE AVERAGE PERSON SITS HERE AND LOOKS AND SEES THAT A LOT OF POWER HAS COME BACK TO THIS TOWN FROM... |
| 00:33:30 |
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I THINK IT'S A VERY BAD APPOINTMENT. |
| 00:33:31 |
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WHY IS THAT? |
| 00:33:34 |
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BECAUSE TIM GEITHNER HAS BEEN PART OF THE PROBLEM AND NOT PART OF THE SOLUTION. |
| 00:33:37 |
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AS AN INDIVIDUAL? |
| 00:33:38 |
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YES, AS AN INDIVIDUAL. HE HAS BEEN VERY CLOSELY CONNECTED WITH PEOPLE ON WALL STREET. |
| 00:33:59 |
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THE JAMIE USED TO RUN JP. BUT TIM GEITHNER WAS PRESIDENT OF THE NEW YORK FEDERAL RESERVE. YOU HAD... |
| 00:34:59 |
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LET ME GIVE A CONTRARY POINT FOR DISCUSSION PURPOSES. YOU ASK A MAN LIKE HANK PAULSON TO COME IN BECAUSE... |
| 00:35:07 |
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OH, REALLY. |
| 00:35:09 |
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AND THEN HE TAKES IT AND TURNS IT. YOU SAY, WHAT'S REALLY GOING ON HERE? HANK PAULSON, SAYS I'LL... |
| 00:35:19 |
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THAT'S ONE ARGUMENT. BUT THIS MYTH ABOUT GOLD MAN SACKS BEING BETTER AND THE BEST AND THE BRIGHTEST... |
| 00:35:38 |
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IF YOUR OVER IN CONGRESS AND YOU'RE FUND RAISING AND YOU RUN A FINANCIAL SERVICES COMMITTEE AND YOU... |
| 00:35:53 |
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YES. YOU SAY THAT WE PRETTY MUCH HAVE A BLOCKED CONGRESS, BECAUSE THEY KNOW WHERE THE MONEY IS COMING... |
| 00:37:03 |
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THERE ARE A LOT OF PEOPLE WHO WERE IN THIS BUSINESS IN NEW YORK WHO ARE REVERED TODAY. THEY GAVE A... |
| 00:37:41 |
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YOU KNOW, THERE ARE A LOT OF GOOD PEOPLE IN FINANCE. BUT WHAT YOU HAVE HERE ARE, AS I SAY, INTERESTED... |
| 00:39:32 |
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HOW DO YOU FIND PEOPLE THAT HAVE THE PUBLIC'S INTEREST IN MIND? |
| 00:39:38 |
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WE'VE HAD A LOT OF INCOMPETENT PEOPLE AT THE S.E.C. WHO BASICALLY COULDN'T FIND A CREDIT DERIVATIVE... |
| 00:39:47 |
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WHY IS THAT? |
| 00:39:49 |
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WELL, I THINK THEY CAN. BUT A LOT OF PEOPLE WHO GET INTO THESE JOBS ARE POLITICALLY CONNECTED. COX... |
| 00:40:05 |
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WHY DO YOU SAY THAT? |
| 00:40:07 |
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I'D RATHER NOT GET TOO FAR OFF TOPIC. |
| 00:40:11 |
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THE REASON, THE PUBLIC IS BASICALLY DROWNING IN CREDIT DEFAULT SWAPS. DERIVATIVES. |
| 00:40:18 |
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IT'S REALLY MUCH SIMPLER. IT WAS A LOT OF BAD LENDING THAT WAS TOLERATED AND A LOT OF PACKAGING OF... |
| 00:40:51 |
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BUT THESE PEOPLE, BOB RUBEN AND LET'S TAKE HANK PAULSON. |
| 00:40:55 |
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LET'S CONTINUE ON -- |
| 00:40:57 |
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LET'S JUST. THEY ARE NOW FIRMLY LOCATED IN INSTITUTIONS IN NEW YORK AND WASHINGTON THAT HAVE A LOT... |
| 00:41:11 |
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THEY'RE -- |
| 00:41:14 |
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I'M TALKING ABOUT THE COUNCIL ON FOREIGN RELATIONS. |
| 00:41:17 |
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LET'S CONTINUE WITH THE GOLDMAN MYTH AND BOB RUBEN FOR A SECOND. AFTER THE ENRON CALL, NOW WE FAST... |
| 00:43:24 |
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TODAY, ALL THESE BANKS ARE TELLING US THEY'RE MAKING PROFITS NOW AND THEY'RE BETTER THAN THEY EXPECTED... |
| 00:43:35 |
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I'LL GET TO THAT IN A MINUTE. WE'RE BEING LIED TO AND I'LL EXPLAIN IN A MOMENT. BUT GETTING BACK TO... |
| 00:44:28 |
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A LOT OF FOLKS YOU'RE TALKING ABOUT IN NEW YORK CITY GIVE A LOT OF MONEY TO CHARITY. DOES THE MEDIA... |
| 00:44:38 |
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I DON'T KNOW WHY THEY'RE LAYING OFFER OF THEM. I DON'T KNOW THE ANSWER. |
| 00:44:45 |
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HAVE THEY IN THE BAST? THEY MAKE ALL THIS MONEY AND GIVE IT AWAY AND THEY'RE NOT LOOKED AT CLOSELY?... |
| 00:44:52 |
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THEY'RE NOT LOOKED AT CLOSELY AND THEY SHOULD BE. I DON'T KNOW WHY THE MEDIA WOULD BE IMPRESSED WITH... |
| 00:45:08 |
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THE MEDIA AND NEW YORK OFTEN SERVES ON THE SAME BOARDS. |
| 00:45:12 |
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BUT SERVING ON THE BOARD DOESN'T NECESSARILY MEAN YOU'RE COMPROMISED. BUT THE -- THERE IS SOMETHING... |
| 00:45:40 |
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BY THE WAY, LARRY SUMMERS WHAT DO YOU THINK ABOUT HIM? |
| 00:45:46 |
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LARRY SUMMERS IS ONE OF THE PROPONENTS OF DOING AWAY WITH GLASS SPIEGEL. AND THAT IS BIPARTISAN. ... |
| 00:46:08 |
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EXPLAIN THAT. |
| 00:46:11 |
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BASICALLY, THEY ALLOWED BANKS TO GET INVOLVED IN WHAT USED TO BE CALLED INVESTMENT BANK ACTIVITY.... |
| 00:47:08 |
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LET'S GO BACK TO THE AVERAGE PERSON'S SAVINGS IN BANKS. THEY'VE LOT A LOT IN THIS PROCESS. THEIR... |
| 00:47:29 |
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I DON'T BELIEVE THAT ANY OF THOSE INDIVIDUALS DID ANYTHING OUTRIGHT ILLEGAL BECAUSE OUR CONGRESS DIDN'T... |
| 00:47:39 |
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WHAT I WAS GETTING AT, IF YOU'RE IN THEIR SHOES, THEY SIT THERE AND SAY, I'M NOW SERVING MY GOVERNMENT,... |
| 00:47:57 |
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WELL, YOU HAVE TO LOOK AT IS THE UNDERLYING INSTITUTIONS THAT HANK PAULSON WAS HE HAD OF GOLDMAN SACKS... |
| 00:48:34 |
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IF PRESIDENT OBAMA CALLED YOU TO THE OVAL OFFICE AND GAVE YOU AN HOUR AND SAID, TELL ME WHAT I SHOULD... |
| 00:48:49 |
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NO ONE HAS -- RESPONSE. |
| 00:48:52 |
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NO 21 HAS A MAGIC BULLET ANSWER. THE THINGS WE NEED TO DO ARE THE THINGS, GETTING BACK TO PRUDENT... |
| 00:49:34 |
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MY NEIGHBORHOOD BANK, THEIR INTEREST RATES ARE SO LOW YOU MIGHT WANT TO GIVE THEM THE MONEY. THEY'VE... |
| 00:49:49 |
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ISN'T THAT INTERESTING. THERE ARE A LOT OF SOLID BANKS. WE HAVE THEM IN CHICAGO AS WELL. NORTHERN... |
| 00:50:30 |
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WE'RE RUNNING OUT OF TIME. YOU'RE IN THE OVAL OFFICE. GIVE ME SPECIFICS TO SAVE THE SITUATION. |
| 00:50:37 |
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LOOKING AT THE BANKS NOW, I WOULD LOOK AT THE STRESS TEST WITH A JAUNDISTED EYE. WE MAY HAVE TO PUT... |
| 00:50:54 |
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WHEN IS IT GOING TO HAPPEN? |
| 00:50:55 |
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I DON'T KNOW EXACTLY. |
| 00:50:56 |
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WHAT DOES IT MEAN? |
| 00:50:58 |
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THEY ARE TRYING TO SEE WHICH BANKS ARE SOUND AND WHICH AREN'T SOUND. THERE'S A LOT OF WHINING GOING... |
| 00:51:52 |
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BY THE WAY, JAMIE, YOFF A QUOTE IN FRONT OF ME, SAYING TODAY -- THIS IS ON THURSDAY, THAT HE WANTS... |
| 00:52:07 |
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I DON'T KNOW WHY JAMIE WANTS TO GIVE THE MONEY BACK SO QUICKLY. BECAUSE THAT MONEY WAS MEANT TO BE... |
| 00:52:57 |
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DOES THE PUBLIC HAVE ANY RESPONSIBILITY? |
| 00:52:59 |
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YES. THE PUBLIC OF COURSE ALWAYS HAS RESPONSIBILITY. BUT DO THEY HAVE IN POWER? BECAUSE WE ARE BEING... |
| 00:53:47 |
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WHEN YOU'RE NOT WRITING BOOKS, WHAT KIND OF CLIENTS DO YOU REPRESENT? |
| 00:53:51 |
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MAINLY SOME OF THE KINDS OF PEOPLE WE'VE BEEN TALKING ABOUT RIGHT HERE WHEN THEY GET INTO TROUBLE... |
| 00:54:04 |
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GIVE US AN EXAMPLE. |
| 00:54:05 |
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I DON'T TALK ABOUT MY CLIENTS IN PUBLIC OR NAME THEM. FWU KINDS OF THINGS AS AN EXAMPLE. IF THEY HAVE... |
| 00:54:32 |
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ARE YOU BEING HIRED BY THESE BIG NAME COMPANIES THAT YOU'VE BEEN CRITICAL HERE? |
| 00:54:37 |
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ANOTHER EXAMPLE IS, LET'S SAY THERE'S A RISK ON THEIR TRADING BOOK AND THEY DON'T KNOW IF THEIR TRADERS... |
| 00:55:01 |
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PUT ANY NAME YOU WANT TO. WHERE DID THE GRADE COME FROM? |
| 00:55:04 |
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WHERE? |
| 00:55:06 |
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WHEN DID THIS HAPPEN? |
| 00:55:09 |
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ABOUT A MILLION YEARS AGO. |
| 00:55:11 |
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IS IT WORSE NOW? |
| 00:55:13 |
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THE GREED HAS CERTAINLY ALLOWED TO REMAIN UNCHERKED. AND WHEN YOU GET SOME BAD APPLES IN THARKSE TEND... |
| 00:56:43 |
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WHAT ARE THE CHANCES THAT THESE BIG NEW YORK BASED COMPANIES OR THE POLITICAL INTERESTS IN THIS TOWN... |
| 00:56:51 |
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SO FAR THEY'VE GOTTEN AWAY WITH THE LARGEST PONSI SCHEME IN THE HISTORY OF THE CAPITAL MARKET. |
| 00:56:59 |
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COPET A LOT OF THEIR OWN MONEY. |
| 00:57:05 |
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SO FAR, THEY'VE BEEN GUIDED -- INDICTED -- TWO. IT'S CHUMP CHANGE. IT'S NOTHING. EVEN THAT MAY BE... |
| 00:58:12 |
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JANET TAVAKOLI, BASED IN CHICAGO. SHE HAS FIVE BOOKS YOU CAN BUY. AND THE CURRENT BOOK IS "DEAR MR.... |
NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.
