Former NY Fed Pres. Geithner On The 2008 Crisis

Рет қаралды 103,641

5 жыл бұрын

Former President of the New York Federal Reserve Timothy Geithner recalls the events leading up to the 2008 financial crisis, and the aftermath that followed. He calls financial systems a “dark mirror” on society and lays out why the government needs to take emergency action in times of extreme fear.
Watch the premiere of the CNBC Original “Crisis On Wall Street: The Week That Shook The World” Wednesday, Sept.12 at 10pm ET/PT.
Ten years after the fall of Lehman Brothers, CNBC has produced the definitive televised account of the historic bankruptcy and cascade of events over a September weekend in 2008 that led to the worst financial crisis in generations. In this prime time original documentary, Andrew Ross Sorkin, CNBC anchor and author of the groundbreaking best-seller "Too Big to Fail," reports on how the nation and the world came as close as ever to a full economic collapse.
The story is told through gripping interviews with those at the highest reaches of the U.S. government as well as the CEOs of the nation’s largest banks who gathered to try to save Lehman Brothers from failure. Wall Street chiefs Jamie Dimon, John Thain, and others describe dramatic, around-the-clock negotiations. Former U.S. Secretary of the Treasury Hank Paulson tells of the desperate moment when he realized that a Lehman bankruptcy could bring down the world’s financial system.
Could a financial crisis of this magnitude happen again? Sorkin puts that question time and again to the people gathered for this CNBC documentary, who shouldered the fate of the world’s finances and who recall the nightmare scenario they faced down ten years ago.
"It would be breadlines across the country for a generation,” former president of the N.Y. Federal Reserve Tim Geithner told Sorkin. “We did feel that we were making choices and faced with outcomes that would be devastating to the lives of hundreds of millions of people."
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Former NY Fed Pres. Geithner On The 2008 Crisis | CNBC

Пікірлер: 141

@reginalduy3678 5 жыл бұрын

I laughed when he said "Just describe, in Lehman's terms, if you could" hahaha, Pun

@KrombobulousMitchell 5 жыл бұрын

Lol same 😂

@jamesbyrne9312 4 жыл бұрын

Thirded

@twelveshepherd9331 3 жыл бұрын

Haha

@missinformed4269 3 жыл бұрын

Freudian slip.

@maxmario9196 2 жыл бұрын

Sorry to be so off topic but does anybody know a way to get back into an Instagram account? I stupidly forgot the login password. I would appreciate any tricks you can offer me

@RodinThink28 4 жыл бұрын

" Capitalizing the gains and socializing the losses " or to put it in layman's terms : Heads I win, tails you lose

@laurentdrozin812 3 жыл бұрын

I think nobody would want to be put in the situation this guy was, in 2008.

@TheAmuse21 3 жыл бұрын

Just imagine without Tim Hank and Bernie. You walk into ATM and display shows “funds not available”... wow.

@briangasser973 Ай бұрын

There was an opportunity to extract a high cost on banks by demanding equity/preferred stock for the cash they were given. The bank stockholders and banker bonuses did well.

@ecaldwell9 Жыл бұрын

Love his play on words “…Layman’s/Lehman’s” Term. Sorkin is my new favorite person. Just got thru FINALLY watching Margin Call.

@harrybloom9213 5 жыл бұрын

We're gonna need a bigger economy!

@johnjcarroll7 Жыл бұрын

Geithner didn't lose his shirt in '08, but he did lose his eye brows.....

@nhanha7433 2 жыл бұрын

Thank you thank you and thank you.

@TheVanillebluete 5 жыл бұрын

Well I would not exactly call it "momentum"

@marcostation1000 5 жыл бұрын

Im a capitalist and believe CEO and top positions should get a massive cut from salaries and pensions if they don't protect their investors from the colapse or at least see it coming.

@TheEisel Жыл бұрын

Do you believe the same about the shareholders? It seems that both relegate a lot of the work the business do. If the shareholders don't see it coming I'd assume that manager won't either. The board is ultimately the decision maker of the company and controlled by the shareholders.

@sphakamisozondi 3 жыл бұрын

*"...Capitalizing the gains and socializing the losses... "* That sentence right there, is disturbing.

@HardRockMaster7577 Жыл бұрын

The Definition of Capitalism...

@AFuller2020 5 жыл бұрын

How many bankers went to jail? Who was held accountable, yeah the public got the bill. Oh and we bailed out Harley Davidson, USB and The Bank of Ireland with TARP, yeah that really helps the little guy.

@thomasbriggs6667 5 жыл бұрын

It'd have been hard to jail anyone because there simply weren't the proper regulations in place to prevent this from happening. It's a failure of the regulatory bodies that the bankers didn't go to jail, because there simply weren't the laws there to do so.

@jorgeponce5512 5 жыл бұрын

More outrageous and totally preventable was bankers paying bonuses in July 2009, just a few months after receiving TARP money. Geithner was already Treasury Sec of Lovely, Sweet, No-Hope-of-Audacity Barack Obama, and neither of them prevented that. Even Citi, which also received 45 B of investment by the Treasury in the stock, paid bonuses to their executives. Notice that softballer Sorkin did not even mention the word bonuses in the interview.

@lowekal 4 жыл бұрын

Last i checked our Justice system rarely needs laws in order to drag people to jail🤔. Surely, most if not all implicated Bankers/ Board members could've been jailed under a vague law that is determined a criminal act👮‍♂️! U know, like the way law enforcement agencies arrest people (usually minorities) who aren't breaking any laws and still end up with rights violated, jailed, life ruined, financial loss and a added bonus criminal record to make life nearly impossible. On the bright side they may have been lucky enough not to get shot for following the officers directions. Hold up, NM this America and this was pointless....

@RayGarrettJr 5 жыл бұрын

1:45 in this video gives you the crux. The only thing that happened here was the banks were made safe to continue sucking blood. The other bubbles are still raging

@rwnorris24 Жыл бұрын

The Cover photo of 'Overhaul’ by Steven Rattner says a lot. Please come to my birthday party too Mr. Geithner, Mr. Paulson, & Mr. Sorkin. December 31st. Sincerely, R.W.N II

@nertoni 5 жыл бұрын

I just noticed that Andrew has a coloboma in the left eye!

@DisgruntledAdult Жыл бұрын

For my economics people, When he says there wouldve been "bread lines for a generation." How exactly could that crisis had led to that? I guess Im not understanding fully.

@tarrysummers6744 3 ай бұрын

Do more research. There wouldn’t have been banking, money, digits on a screen even. Sucks to bail out big banks but they had no choice. Chase would’ve been only one standing

@Sam__2000 8 ай бұрын

Around 3 minutes he describes the essence of regulatory moral hazard. “This problem could only be fixed if we had more power”. This will happen again and make TARP look like nickels and dimes. Let the games begin

@nhanha7433 2 жыл бұрын

Ramp traffic nearly bump to my vehicle move from left to right. How more time we allow those drivers drive behind like that.

@mrimportant4787 4 жыл бұрын

its odd to watch a man who is basically looking the reporter straight in the eye and not alot of head movement...watch him after the question about Lehman being solvent 🤔🤔🤔

@IMTHATELDER 2 жыл бұрын

Is it just me or does his snidey little smile just scream “punch me, in the head, lots” ?

@vicdelafuente6939 5 жыл бұрын

Cool dude.

@arvandshahbazi1539 5 жыл бұрын

Bright guy

@vietimports 5 жыл бұрын

well, i mean, rich people still made out like bandits

@dawnglianapachuau6433 5 жыл бұрын

a former US Treasury Secretary that i will always remember.

@changenoways9555 Жыл бұрын

why

@dawnglianapachuau6433 Жыл бұрын

@@changenoways9555 inspired . I read his books 😁

@bencarter7839 Жыл бұрын

It's very annoying that he's so giggly about this issue, especially because the federal reserve caused this crisis.

@vineeshk.v8091 Жыл бұрын

Hi, It seems it’s not the federal reserve but the unregulated Default swap caused this crisis..

@bencarter7839 Жыл бұрын

@@vineeshk.v8091 Well no, the problem was not unregulated CDS. The underlying problem was the bad mortgage debt. CDS just became valuable due to this bad debt, as they should. The fed fueled the housing bubble with low interest rates in 2001. The problem didn't start in 2008, but much earlier. Also, Lehman brothers was only a $20 billion problem, and could have easily been saved. In fact, people who held onto Lehman stock made a nice profit eventually. Please explain what additional regulation of CDS would have made the bad mortgage debt good.

@kendellfriend5558 Жыл бұрын

@@bencarter7839 but it was Alan Greenspan, who was appointed by Reagan, who urged Clinton to repeal Glass-Steagall. It really all started with Reagan wanting to deregulate the banking sector as a whole. A lot of the underlying issues within the financial crisis can be stemmed from Reagan’s administration. Privatization of Fannie especially! If Reagan hadn’t took the steps he did to loosen regulations, the 2008 financial crisis probably wouldn’t have happened. Even George Soros says this and Buffet alluded to it when he became the CEO of Salomon Brothers.

@bencarter7839 Жыл бұрын

@@kendellfriend5558 Your comment makes you appear to be politically partisan. Bill Clinton, in late 1999 declared the Glass-Steagall act 'no longer appropriate'. Yet, you put the blame on Reagan. Also, Ben Bernanke and economists at the federal reserve have stated that activities linked to the GFC were not prohibited by Glass-Steagall, and they also stated that in most cases, these activities were not even regulated by Glass-Steagall. There's plenty of blame to go around regarding the GFC, but it's pretty tough to blame Reagan.

@jigyanshushrivastava6153 5 жыл бұрын

Why now these type of contents

@RealDaviii 4 жыл бұрын

@S S nice analysis wheres the crash

@bigweezo2341 4 жыл бұрын

Davi its here lol

@andrenewcomb3708 Жыл бұрын

Hey, Stetson. Don't you get an agent as slick as this boy is. He'll even tell Senate panels the dirty, low-down all day long and no one notices! And guess what, Slick? You might even see 18 year old models spreading tales from topographic oceans for your sweet cousin . . . And I WON'T EVEN BE THERE. How smart is that? Wishing you were here.

@DiddyKatt 5 жыл бұрын

How cold does it have to get for an economy to completely freeze ? Not considering windchill

@HardRockMaster7577 Жыл бұрын

Banks became suspect of other financial institutions exposure to the bad bundled debt, that had been over-rated so no one really knew who had over-exposed themselves. TARP was able to cover up a lot of the malfeasance, so thing could get back to normal --- for the banks----, and then the money could "trickle down" from their perch..

@mariosauceda6833 4 жыл бұрын

I don't like full eye contact, ❤️

@joycebell6912 4 жыл бұрын

Full eye contact only comes with an Honest heart..

@mariosauceda6833 4 жыл бұрын

@@joycebell6912 not sure about that .

@yinliu5634 3 жыл бұрын

At least congress learned something from 2008. They acted much faster with Covid

@rgosain 2 жыл бұрын

Ha. They conned you there.

@rgosain 2 жыл бұрын

If sub prime lending was the first con the this rescue sold under the fear of the Great depression was the con jobs of all con jobs.

@shobhitmishra9627 5 жыл бұрын

Finance is so weird😏.. There is this saying by a Billionaire playboy "Keep your frnds rich, Keep your enemies rich and then find out which is which."😉😉

@RobARug Жыл бұрын

Timothy Grifter reminds me of The Great Gazoo on "The Flintstones", minus the green skin.

@ralphmoreno8501 5 жыл бұрын

where are Geithner's eyebrows...?

@davidwestwater1914 4 жыл бұрын

The banks caused this and now the banks have the ability to borrow monney at will. They have been taking monney out because the banks are scared to lend monney to eachother now......wonder if things will collapse again its nov2019 now..

@nhanha7433 2 жыл бұрын

Winkle. Communication

@lukelewkowicz2233 Жыл бұрын

The solution: print, print, print, ....Leamans' pay for a strech of some seven years, 250 mill a year. Were the banksters in the other banks far behind?.

@tz1494 5 жыл бұрын

Dow jones to 59K!🤑

@nhanha7433 2 жыл бұрын

He laugh. And Warren also laugh.

@ask_why000 Жыл бұрын

Hey US taxpayer, We really work for a small collection of banks on Wall Street and represent some other multi nationals. We don't work for you, we don't care for you, but we will use your dollars and debt the save ourselves. You're welcome. Be sure to dollar cost average! Sincerely, Global bankers and their lackies

@nhanha7433 2 жыл бұрын

State union harmony.

@nhanha7433 2 жыл бұрын

No more peoples that we did not elect to watch over nation. But bring in to run the public offices. Our common wealth will destroy.

@guillermoelenes Жыл бұрын

Its irritating that this man is laughing throughout the interview, like it was funny.

@nhanha7433 2 жыл бұрын

Did Trump no about Lehman.

@xopcapital9986 5 жыл бұрын

Good that he sees the funny side of it when most people got completely and utterly you know what and those who never bought a stock in their life ended up paying the price.....keep chuckling Tim if it helps your conscience.

@xopcapital9986 3 жыл бұрын

@MeGusta109 Research him. Put your detective hat on. Then you'll find out.

@videosbrown5369 5 жыл бұрын

1st cnbc please like

@nhanha7433 2 жыл бұрын

You elect the right moral persons watch over the nation. Or oath broken.

@donparkvideos 5 жыл бұрын

Could you talk about all the guys who went to jail for the financial shenanigans? Oh wait...

@ChristopherHalbersma 3 жыл бұрын

The Fed could have bought the underlying bonds at $0.01 on the dollar and allow homeowners inside them to rework their loans down by 80% before foreclosure. It would have caused havoc on Wall Street; but the rest of the country would have been fine.

@goparetraitors4156 2 жыл бұрын

The poor would win and the wealthy will lose. Not going to happen

@ChristopherHalbersma 2 жыл бұрын

@@goparetraitors4156 The wealthy would have been fine. If you give a poor man $100 $95 of it will end up being revenue for some S&P 500 company.

@tarrysummers6744 3 ай бұрын

Then people would’ve bitched about their retirements pensions, and everyone would’ve lost their jobs when shares went to 0

@ChristopherHalbersma 3 ай бұрын

@@tarrysummers6744 Who cares? That's why we have Social Security.

@tarrysummers6744 3 ай бұрын

@@ChristopherHalbersma lol. What’s someone gonna do with 1k/mo

@nhanha7433 2 жыл бұрын

Transactions daily life interruptions

@charmed1234567819 3 жыл бұрын

In my opinion Geithner was a lot to blame for this situation. The New York Fed is supposed to be the eyes and ears of wall street. Do you mean his head was up his ass for that long before he realized there was a problem. I personally don't blame the heads of the firms because there dirty anyways but this is a man who didn't do his job what so ever. The reason the tax payer needed to bail out these firms was because of his negligence and he should have served time for it.

@dannybhoy2739 Жыл бұрын

He kept a cool head when everyone was panicking end of 2008 & his stress test on banks worked. Could have been lot worse

@spacecoastbonsai1421 3 жыл бұрын

I wish they didn’t do so much stimulus I feel like it’s gonna make our economy much worse in the future.

@RetyRety-lv9cg 3 жыл бұрын

Geithner IS the financial crisis.

@loudmouthandall7261 5 жыл бұрын

Am I the only one who feels like they are both flirting with each other.

@jorgeponce5512 5 жыл бұрын

And no one can identify who is Rose and who is Bud. Not even Kane.

@patriotsman6511 Жыл бұрын

Tax cheat

@raymondwhitehouse9922 5 жыл бұрын

What to do....... Err copy the British

@yankodavid103 3 жыл бұрын

The bright tractor decisively enjoy because begonia antenatally heap per a frequent stomach. dull, valuable latency

@fremontvideos3236 11 ай бұрын

OMG I can't even say anything else except this is just gross

@TaggsR85 3 жыл бұрын

He was a huge part of the problem

@joshuac6475 5 жыл бұрын

WTH is he smiling the whole time?

@missinformed4269 3 жыл бұрын

He’s a little embarrassed with the scope of the theft.

@HardRockMaster7577 Жыл бұрын

why not.... it's better than wearing a mask, isn't it. 🙂

@mistajacks 5 жыл бұрын

The money they gave to the banks would have been better allocated to help the borrowers who had taken on parasitic loans pay off their liabilities from predatory lending practices, rather than having given the funds to the banks themselves. So many people and families were destroyed by not backing the individual borrowers.

@jimjackson1381 5 жыл бұрын

I love how ppl think this guy is so smart. The financial system went insolvent without being diagnosed until after it happened. The fix was to print money and call the richest guy in the world. This is not brilliance. Period. End of story.

@chrisgionas4012 5 жыл бұрын

Jim Jackson since you’re clearly smarter then the Fed and the treasury why don’t you tell us what you would do instead to avert worldwide financial Armageddon? Please go ahead

@243wayne1 5 жыл бұрын

+Jim Jackson- And... It worked. Thankfully.

@parallax8322 3 жыл бұрын

@@chrisgionas4012 He's still working on his response

@Vgallo 4 жыл бұрын

How about some reparations for all the poor people that were the victims of predatory lending, people that truly didn’t know better and truly were worse off through very little fault of their own?

@MrVonBastard 5 жыл бұрын

Why hasn't he been arrested?

@Kyle_Schaff 4 жыл бұрын

Well, what did Timothy Geithner do that was illegal? or even ineffective at helping stabilize the economy?

@davenemo5494 2 жыл бұрын

Oh look, the guy that caused almost every millennial to enter a tanning job market with no house buying salary and a 20% down payment for a house. Is he looking for gratitude?

@nhanha7433 2 жыл бұрын

Trump families how you manage the fix broken economy systems.

@dlbdlb3919 5 жыл бұрын

This from a tax cheat

@MattyI971 5 жыл бұрын

You can't protect ANYTHING that's been pre planned Tim. I love how all these psychopaths in this little CNBC special find humor in all this. AND boast about how good they are

@the_real_economics 4 жыл бұрын

This guy deserves a jail time. Privatization of profits, socialization of loss. Geithner bailed out irresponsible managers of the big banks, irresponsible big banks, and irresponsible creditors (also big banks) who borrowed money to irresponsible big banks. This was not an investment risk of the public, but the private banks, so the losses should have been privatized.

@kw6143 3 жыл бұрын

the big banks aren’t simply owned by investment bankers and fund managers. their shareholders include a wide range of financial institutions including those that manage the money of common people - think pension funds, for example. it is not simply a class war between the 1% and the 99%.

@timothy627 Жыл бұрын

YOUR THE NEW YORK SPAWN CUB TIMOTHY GEITHNER YOUR NOT THY TIMOTHY CAMERON DREW THE DJ ! THEY KNOW YOU FEDS SPAWN TIMOTHY GEITHNER HAVE YOUR SONG AND MY SONG FIRST YOUR GEORGE JONES WHO's GOING TWO FILL THEIR SHOE's ! YOUR FROM VATICAN ROMAN's BOY's ROYAL's FED's FROM SEREBRO MAMA LOVER''s FROM THE SAME BAND THIS MY SONG THY TIMOTHY CAMERON DREW AS MY SELF AS DADDY WAS NOT THE CADILLAC KIND !