Too Big to Fail

00:29:31,575 --> 00:29:35,037 "He knows, if Lehman goes, Merrill's next." 567 00:29:36,746 --> 00:29:39,082 "Vikram Pandit is the new guy at Citigroup." 568 00:29:41,376 --> 00:29:44,337 "No one knows if he's running Citi or if Citi's running him." 569 00:30:08,109 --> 00:30:10,653 Thanks for coming down here on such short notice. 570 00:30:12,071 --> 00:30:14,240 Monday morning, Lehman will no longer be able... 571 00:30:14,323 --> 00:30:16,242 to honor its obligations. 572 00:30:18,786 --> 00:30:21,663 We have two potential buyers. B of A and Barclays. 573 00:30:21,747 --> 00:30:22,873 Neither will take the company... 574 00:30:22,956 --> 00:30:26,126 unless someone else finances part of the deal. 575 00:30:26,209 --> 00:30:29,379 The government is not in a position to step in. 576 00:30:31,005 --> 00:30:34,092 I did the last one. You're going to do this one. 577 00:30:34,175 --> 00:30:35,551 Where is Dick Fuld? 578 00:30:35,635 --> 00:30:37,762 Dick's in no condition to make any decisions. 579 00:30:37,845 --> 00:30:41,098 We're breaking you into three groups. 580 00:30:41,181 --> 00:30:46,019 The first one will try to value Lehman's toxic assets. 581 00:30:46,103 --> 00:30:47,813 The second one will work on some sort of structure... 582 00:30:47,896 --> 00:30:49,731 for you all to invest in Lehman. 583 00:30:49,814 --> 00:30:53,693 And the third one works on the lights-out plan. 584 00:30:53,776 --> 00:30:55,987 If Lehman files for bankruptcy, we need to figure out... 585 00:30:56,070 --> 00:30:58,489 how to contain the damage to the rest of you. 586 00:30:58,573 --> 00:30:59,699 Christ. 587 00:30:59,782 --> 00:31:01,575 We've all seen this coming for miles. 588 00:31:01,659 --> 00:31:04,787 I don't think the Lehman bankruptcy takes down our firms. 589 00:31:04,870 --> 00:31:07,456 What, are we crossing our fingers? 590 00:31:07,539 --> 00:31:10,208 You're asking us to save a competitor. 591 00:31:10,292 --> 00:31:12,919 Let's not act like you're doing us a favor. 592 00:31:13,003 --> 00:31:14,713 Gentlemen. 593 00:31:14,796 --> 00:31:19,133 Gentlemen, you are great Americans undertaking a patriotic duty. 594 00:31:19,217 --> 00:31:21,511 Your travail will earn you... 595 00:31:21,594 --> 00:31:25,139 the love and gratitude of your country. 596 00:31:25,222 --> 00:31:26,974 I think it was Thomas Paine who said that these are... 597 00:31:27,057 --> 00:31:29,476 Lehman is a trading partner for every bank in this room. 598 00:31:29,560 --> 00:31:32,271 And their failure will be a massive blow to all of you. 599 00:31:32,354 --> 00:31:34,106 This is your problem. 600 00:31:34,189 --> 00:31:36,942 We can all argue about how we got here. 601 00:31:37,025 --> 00:31:40,945 Deregulation, derivatives, Dick Fuld made bad decisions. 602 00:31:41,029 --> 00:31:45,074 We're all responsible. It's a catastrophic mess. 603 00:31:45,158 --> 00:31:46,909 The government's done whatever it can do. 604 00:31:46,993 --> 00:31:48,536 It's on you now. 605 00:31:48,619 --> 00:31:51,080 You need to fix it and you need to pay for it. 606 00:31:51,163 --> 00:31:52,790 Let me be clear. 607 00:31:54,375 --> 00:31:58,879 We will remember anyone who's not helpful. 608 00:32:22,651 --> 00:32:24,486 "Do you notice a little pattern here?" 609 00:32:24,569 --> 00:32:25,779 "We don't deal with things... 610 00:32:25,862 --> 00:32:27,948 until there's some kind of emergency on the table." 611 00:32:28,031 --> 00:32:29,491 "Yeah, we don't deal with things until Friday..." 612 00:32:29,574 --> 00:32:31,784 "Some kind of a weekend thing. When are we going to figure out... 613 00:32:31,868 --> 00:32:33,953 exactly how to handle the failure of an investment bank?" 614 00:32:34,037 --> 00:32:35,830 "Well, let's do it over a weekend." 615 00:32:35,913 --> 00:32:37,707 "Just I talked to a person who is monitoring... 616 00:32:37,790 --> 00:32:39,250 the situation out there." 617 00:32:39,333 --> 00:32:43,504 "And the person said they all want the same deal Jamie Dimon got." 618 00:32:43,587 --> 00:32:45,506 "And they're not going to get it." 619 00:32:45,589 --> 00:32:48,759 Just a heads up, Chris Flowers is in the lobby. 620 00:32:48,842 --> 00:32:51,136 He's consulting for B of A on Lehman. 621 00:32:53,221 --> 00:32:55,682 Hank pushed Flowers out of Goldman. 622 00:32:55,765 --> 00:32:58,059 Yesterday, we thought Lehman was holding 30 billion in crap. 623 00:32:58,142 --> 00:32:59,519 Today, it's 70. 624 00:32:59,602 --> 00:33:02,897 70 billion dollars in assets that we're valuing with a dartboard. 625 00:33:02,980 --> 00:33:04,356 No, we're going to work this out. 626 00:33:04,440 --> 00:33:06,650 Unless you step in, we're ending this. 627 00:33:06,734 --> 00:33:08,110 Don't forget about Dick. 628 00:33:08,193 --> 00:33:11...