which were in reality just as broke as lehman brothers. why did the government rescue other banks but not lehman the johns hopkins economist has been puzzling over that question for years. the fed of the treasury saw how disastrous lehman failure was and thought that the economy might be heading towards like the thirty's scale depression they that realized that it was time to body else out so they did they rescue there was the card program which the treasury bought stock in most of the leading bags. lawrence involved says if lehman brothers had been bailed out the entire global financial crisis would probably have been far less destructive and much easier to control. ten years after the event a new generation is delving into the issue and they're able to pinpoint the mistakes made much more precisely the overarching question though is this will time and hindsight be enough to prevent the next global financial crisis. some experts say the next crisis could be even worse brace yourselves but here's something perhaps we should consider might

anthony fry was the head of lehman brothers in the u.k. . i think they were in a position where they really believed they were the people in charge of the whole world. they were winning everyone else for losing. a fry hatch thirty five years of investment banking experience. even what place really with margaret thatcher that's even then his knowledge and expertise would challenge to take full head stay at his u.s. operations on a completely different route the firm baris more money than any other bank on wall street was in a position where i was for sure that i could say we won't do that. i'm gay we're already talked to me and saying you're trying to stop this we want to do x. ones that. we have a fundamental disagreement routes between them in america myself working here in england and it got very difficult. lehman's chief executive was not letting anyone get in the way of his vision and now this is a guy that to some degree is on a personal mission he's a grandiose wall street he has his own little shop you know he's been there long enough

lehman brothers ten years on. story event is. controlling rich but it's one of the legs of investment bankers who saw her car sales would never stop of a system that spun out of control in. the world i mean on the eve of the crash the investment bank lehman brothers starts september thirteenth on g.w. . plain ole a leg. to leg. this is the w. news live from berlin the european parliament votes to take action against hungering for undermining democracy in europe. coots the first time such a decision has been launched in the history of the parliament a vocal spearheaded by a dutch politician who told european lawmakers it was time to make a choice of the past about to the five of them. also coming up on live i hope condemns the violence at recent demonstrations against migrants in eastern germany and says there can be no justification for hatred towards people who look different and it is.

this man lived and breathed lehman brothers. most ninety five percent of his wealth was in lehman stock sure people have faith in his leadership whatever he was doing for the farm for the shareholders of the from had a very direct impact on his own personal wealth and future he had a lot of vested interest in making sure the human body did well. as part of this false look to the east to further his moneymaking aspirations in two thousand and seven asia was lehman's highest growth region it took in more than three point one billion u.s. dollars in revenue having toppled this in just two years and the man is the fourth largest investment bank in the press it had a large presence in singapore in fact we experienced record volumes in two thousand and seven and there was environment of confidence easy credit and people were optimistic. and this optimism filtered down to consumers and investors like mr ton who seized the opportunity to build a part of saved. but wasn't to save money for. when the money growing sipri the boston this is

all the same lehman brothers . who will be next every other investment bank would want to say that i am in trouble go out and save me so as an economist i was saying why do we need to go out and save these rich investment bankers it makes no sense and using taxpayer money. to sue mates and his colleagues what also that we can't and analyzing potential solutions i was just looking at mortgages what is the implications what is the balance sheets of these banks but we hardly know where the bodies are buried in these banks so we want to help them but we had one hand tied behind our back cannot do anything cannot do much when they tell you we have to believe. meanwhile dick fuld was running out of time he only had two days before the asian markets opened on monday morning to save his empire he turned to bank of america and britain's barclays bank for help anything that could have happened over the weekend they could have find a nice suitor. in a commercial bank to buy the human because be an injection of capital through

what is some of the lessons that asia has learned from the lehman brothers crisis. well less is just now actually some issues that come up about trust as well as which banks if i lend money to you at that point in time are you going to fail me you not going to pay me back so after that we actually have a bank adequacy ratio where you know if the fiscal regulators central bankers in asia make sure that you bank have actually enough money in order that they don't use that money to actually invest always best and then they won't be able to pay because of this so this is actually one very important it has been learned and actually there's also been a trade crisis in asia because rather than the financial crisis because we are actually low quite a bit from the asian financial crisis and we have actually learned to expand outreach links more with other countries apart from the u.s. and the europe who are very much affected during the lehman brothers global financial crisis briefly lindau economist there was saying that he can't imagine another crisis is just around the co

leaving lehman brothers wasn't my choice. i really thought there was no chance lehman brothers would be allowed to fall and after that, i became more cynical about the global financial system. i never got back into the lehman brothers office after september 12. it was actually a colleague who had to bring my box of collection out for me. i wasn't one of the people carrying boxes out. history rhymes, it doesn't repeat. do i think we will get another lehman brothers, not a systemically important bank. regulators are focused on that. will we get another financial crisis? yes. every other crisis before, people didn't think a crash could come. it is like 1929, it was the roaring 20's and people didn't understand the downside and everyone got caught up in the grade. as long as humans, nate financial markets, which they still do, not for much longer, we will get financial crises. erik: much more to come as "bloomberg best" examines life after lehman. leaders in policy and politics discussed the response to the financial crisis and w

eric: join us for life after lehman brothers. a story still being written. >> there are lessons we must continue to press forward on. eric: it is straight ahead on "bloomberg best." ♪ eric: hello and welcome. i'm erik schatzker. september the 15th marks 10 years since the lehman brothers bankruptcy, a collapse that triggered the worst financial crisis in almost a century. the effects are felt around the world by individuals, companies, institutions and governments. , in the next hour, many people who played key roles in the financial system as those events were unfolding. people who helped spearhead the recovery and we will discuss the legacy of the crisis as well as the critical question. could it happen again? first, let's flashback to september 2008 to capture the mood of the meltdown. >> major financial institutions have teetered on the edge of collapse and some have failed. >> we clearly have an unprecedented crisis in our financial system. >> today, there is unprecedented turmoil in our capital markets. >> it is very myst

there were other juniors from lehman brothers and i remember lehman brothers and i remember assuring them saturday night, look, it is absolutely fine. worst case scenario is we get taken over by bank of america. there was no idea that monday, brothers and i really enjoyed we have no employer and no way out. sunday, i flew from budapest to istanbul. i saw lehman brothers filed for bankruptcy and i got all these messages from ex-colleagues in new york say it has been great working with you. see you on the other side. leaving lehman brothers wasn't my choice. i really thought there was no chance lehman brothers would be allowed to fall and after that, i became more cynical about the global financial system. i never got back into the lehman brothers office after september 12. it was actually a colleague who had to bring my box of collections out for me. i wasn't one of the people carrying boxes out. history rhymes, it doesn't repeat. do i think we will get another lehman brothers, not a systemically important bank. will we get another financial crisis? yes. every other crisis before, peo

that is my lehman brothers running jersey. this table is full of memories for lynn gray, she spent 11 and a half years working at lehman brothers. i was heartbroken. i would never would have left, i would have stayed there until they kicked me out. well, they did take me out! but i would have stayed there for a very long time. it was one of the best places i had ever worked. a decade later, many have not forgiven lehman brothers. although the financial crisis was a result of several bad acotrs, when the bank ultimately filed for bankruptcy, it set off a chain reaction. (bell rings). on monday, september 15, when lehman brothers filed for bankruptcy, the dowjones fell 500 points. the biggest one—day drop since the terrorist attacks of 9/11. watching it all happen was peter tuchman, a trader at the new york stock exchange. what was it like for you to be on the floor and watching that happen on the big board? it is kind of funny you ask that because i was actually standing here in this spot where we are doing this interview, an

now in the aftermath of the lehman brothers collapse the then u.s. administration introduced stricter banking regulations known as the dot frank wall street reform and consumer protection act president donald trump has long been a critic of frank back in may you scrap some of the rules for small and medium that many on wall street want the deregulation to go even further critics say racing restrictions on bags could prompt the next financial crisis. so let's go now to the heart of darkness were it all began in new york so if you month scale wall street correspondent is standing by sophie you talked to former lehman employees how do those people remember those bad old days. well after listening to former staff members it seems to me that at least. some people on the lower level of the hierarchy weren't really aware of how bad the situation was even days before the bank collapse one of the guys who handled the e.t.f. trading told me that two thousand and eight x. only had been kind of a good year for him for a rather long time afterwards people were st

investment bank lehman brothers sophie thank you so much. all the lehman brothers downfall unleashed a financial tsunami that tore across the world ripping through europe asia and finally hitting africa earlier i asked our correspondent in nigeria funny french are how badly african countries were back to. it's a given the fact of course that this continent is made up of five fifty plus countries of course the effects are felt but the fact there are many fold you would have to zoom in really to each and every country with different political economic environmental makeup to say so to really get the detailed picture of what really happened here ten years ago now what we can say as a big picture if you'll remember of course the food crisis two thousand and seven to two thousand and eight so commodity prices were already volatile to begin with even before the global recession and that was through the reinforced by the collapse of lehman brothers the trickle down to a global recession that was especially felt very hard in sub-saharan africa but a

investment bank lehman brothers filed for bankruptcy. the u.s. government chose not to step in. stocks around the world crashed as banks lost even more confidence in each other. the following month german chancellor under macko and then finance minister patched work had this message for savers. those are telling savers that their deposits are safe because and an attempt to avoid a run on the banks. what began as a u.s. subprime mortgage crisis soon had an effect on the global economy trade slowed down dramatically the result in the year two thousand and nine the u.s. economy contracted by almost three percent and the german economy shrunk by five percent. that brings back memories certainly from my colleague who was a correspondent at the time tell me what was it like on that there a day well it was certainly shocking that particular morning and even in that context oft times at the time that it was very tense because of course there was problems before lehman's bankruptcy but still nobody saw that coming especially with the government not stepping in and people suddenly packing

the week before lehman brothers failed there was a concern about lehman brothers. i think the conversations that took place over the weekend were trying to find a solution to the problem. not suddenly discovering women's was troubled -- lehman's was troubled. >> was letting lehman brothers go a mistake? >> i do not think people consciously let it go. i think people in the united states worked very hard to find a solution to it. they took the view they were not going to put money into lehman brothers. they looked for other options. they concluded they could not lend to lehman brothers because there was not enough collateral. they concluded a deal would be -- they were hoping barclays mifi it -- might buy it. they bought it essentially for half the price a few days later. the hangup on the barclays deal was that people in the u.s. wanted the british government to underwrite any potential losses from lehman brothers. since we knew at the time we were basically underwriting barclays, we were issuing an insurance policy to barclays by protecting the british banking syst

investment bank lehman brothers filed for bankruptcy the event sent everyone from american investors to spanish property owners running for cover the lender was a giant but not too big to fail now ten years on we ask what lessons have we learned. the financial crisis is over the banks have been saved hundreds of billions in taxes pulled them back from the abyss but experts say the world economy isn't in the carry yes many governments were forced to take on massive debt to ward off the world fun and floodlights is. the next threat is going to come from a very different quarter and it's going to it's a very different nature than what struck the world in two thousand and eight it has to do with publicly held debt both in the united states and europe and that is the next term threat to the world economy and the results could be every bit as catastrophic and perhaps even more so than what happened in two thousand and eight take a silly where sovereign debt has climbed from one hundred two to one hundred thirty percent of g.d.p. since two thousand and eight that means the country owes more

in the week before lehman brothers failed, there was concern about lehman brothers building up. i think the conversations that took place over the weekend were trying to find a solution to the lehman problem, not suddenly discovering that they were in deep trouble. not aehman brothers was watershed moment, but was letting it go a conscious mistake? vyn: i think people in the united states worked very hard to find a solution to it. they put the view that they were not quick to cut public money into lehman brothers. options. for other they concluded that they couldn't lend to lehman brothers because there wasn't enough collateral. they concluded that a deal would be lovely. they couldn't find an american bank to buy lehman brothers. they were hoping that barclays might buy it. they bought it essentially for half the price only a few days later. the hangup on the barclays deal was that people in the u.s. wanted the british government to underwrite any potential losses from lehman brothers. since we knew at the time that we were basically underwriting barclays, we were issuing an po

lehman brothers ten years on a story of ambition greed and megalomania. we're so clever the reason the control of the rich that is what the mood of investment bankers cultic ourselves with never stopped everybody was wrong or wanted to ignore the reality that the whole thing might blow up in my face because of a system that spawned out of control. problems that will. cause them to feel the crushing investment bank lehman brothers start september thirteenth on t.w. . and . as they say here in the north in hamburg on the album i spent the night on this house by.

didn't bail out lehman brothers. during the time of the collapse timothy geithner was the president of the new york federal reserve and two thousand and fourteen he said the bank wanted to assess lehman brothers adding quote we explored all available alternatives to avoid a collapse of lehman but the size of its losses were so great that they were unable to attract a buyer and we were unable to land on a scale that would save them despite the federal reserve's inability to save lehman brothers the collapse led to many employees and customers uncertain of what the future what holds and washington actually banks art. and what the future did hold it also ahead treasury secretary hank paulson and federal reserve chair ben bernanke really critically concerned with lehmann did what was next with contagion from lehmann and perhaps others who could fall destroy the economy and still nobody knew the financial risks of those dark o.t.c. markets with those bundles of bad mortgages in the credit default swaps fearing the worst t

i think i was brainwashed into lehman brothers. my first full-time job out of university, and i really enjoyed it. the atmosphere was very good. in the summer of 2008, the started -- it started to become this idea that the reality was different to what management or possibly presenting to us, and the situation was much more dire. so on friday the 12th, i was flying to budapest for a work conference in hungary. there were some other junior salespeople and traders there from lehman brothers, and i remember assuring them on that saturday night, look them is absolutely fine. look,rst-case scenario -- it is absolutely fine. worst-case scenario, we get taken over by bank of america. there was no idea that monday we would have no employer, no option, and no way out. on sunday, i flew to is some will and i remember -- istanbul. lehman brothers to file for bankruptcy in the morning on the tv. i turn on my blackberry in shock and i got all these messages from people from the new york -- from new york. it's been great working with you. see yo

guy: lehman brothers was not a watershed moment, but was that he lehman brothers go a mistake? >> i don't think people consciously>> really let it go. i think people in the united states worked very hard to find a solution to it. they took the view that they would not put public money into lehman brothers. they look further options. that they could not lend to lehman brothers because there was not enough collateral. they concluded that a deal would be lovely. they couldn't find an american back to buy lehman brothers. they were hoping that barclays might buy it. barclays is a lucky bank because they bought it for half the price a few days later. but the hang up on the barclays deal was that people in the u.s. wanted the british government to underwrite any potential losses from lehman brothers. since we knew at the time that we were basically -- julie: we have breaking news from goldman sachs and its succession. david solomon is set to take the ceo. other management changes, steven beshear is expected -- stephen take theexpected to head of the company. david solomon is to take

the week before lehman brothers failed, there was a concern about lehman brothers building up, and the conversations that took place over the weekend were trying to find a solution to the problem, not suddenly discovering lehman was in big trouble. was letting lehman brothers go a mistake? >> i do not think people consciously let it go in that sense, i think people in united states worked very hard to find a solution to it. they took the view they were not going to put public money in lehman brothers, and they looked for other options, and concluded there was not enough collateral. they concluded that a deal would be lovely. they could not find an american bank, and they were hoping barclays might buy it. they bought it essentially for half-price only a few days later. the hangup on the barclays deal was that people in the u.s. wanted the british government to underwrite any potential losses from lehman brothers, and since we knew at the time we were basically underwriting barclays, we were issuing an insurance policy to barclays by protecting the british banking system. that was the r

investment bank lehman brothers filed for bankruptcy. the u.s. government chose not to step in. stocks around the world crashed as banks lost even more confidence in each other. the following month german chancellor angela merkel and then finance minister patched on book had this message for savers. bizarre telling savers that their deposits are safe the shows and an attempt to avoid a run on the banks of. what began as a us subprime mortgage crisis soon had an effect on the global economy trade slowed down dramatically the result in the year two thousand and nine the us economy contracted by almost three percent and the german economy shrunk by five percent. well back to the present time now and the c.e.o. of amazon jeff bezos on his wife mackenzie basis have launched a two billion dollar fund for charity it will help homeless families and create a network of kindergartens in the low income communities bezos is among the world's richest people his net worth has risen by more than sixty billion dollars this year alone a founder of amazon faces criticism many feel that his compan

lehman brothers turn your song. a story of ambition good comic mania. control the rich lots workplace of investment bankers who caught the car sales will never stop of a system that spun out of control. the problem was there will. never be the courage to be investment bank lehman brothers in forty five minutes on d w. i loved the first sign doing detailing. the hardware the incredible it's a whole new world. of online insert space industry. it's a new era of sexuality. will lovesickness be a thing of and sexual frustration too much i still have to get used to these robot noises exploring new frontiers in sex and love creating weirdos. the toughest on september twenty fifth on t.w. . well counted to global three thousand this week we are in kenya where a woman fighting co-chairs has developed a special way of protecting elephants. in syria now tropical wood is being lobbed on a massive scale chinese businesses are breaking the profits. and on the indonesian island of lombok people hit hard by.

brothers was not saved in part because lehman brothers and fold was the only major wall street firm to not kick in, so everyone decided that fould who was disliked was not going to get help. >> a number of people that we interviewed commented on that. i don't think in the end that lehman brothers failed because of a personality clash i do genuinely believe that the government and other bankers to the degree they wanted to save lehman brothers, it's absolutely true there was a political overhang at that time. the idea of a bailout was unpopular, and dick fuld was unpopular. but to hang it on the dislike of one individual, i'm not sure is a fair assessment. i know it made the rounds and continues to make the rounds for the past decade. >> do you think it was more the distaste over bear stearns -- if lehman brothers was first, maybe the outcome for lehman would have been different? >> absolutely. people talk about financial crisis as a series of dominos, but ed lazier talks about it in terms of popcorn you could have taken one of those kernels off that hot skillet and saved lehman brot

time after time through this is going on the ground ten years to the day wall street's lehman brothers went bust and the beginning of the that's all strategy that the british medical journal estimates could lead to two hundred thousand deaths in the u.k. by twenty twenty and the u.n. estimates will push perhaps hundreds of millions into poverty coming up in the show we speak to pull the former head of regulatory risk. halifax bank of scotland bailed out to the tune of tens of billions of austerity pounds by u.k. new liberal labor prime minister gordon brown after leaving and is leavin bankers in london's royal party to celebrate ten years since the bank went bust we speak to rolling stone journalist in all the time be who famously described goldman sachs as a great find by a squid wrapped around the face of humanity plus she's following through on the crisis was she still thinks she's a ring on the people of this to be the leader of western europe's largest labor movement gets only a blairite accusation of racism in response to his grilling of minority u.k. government leaders are racis

lehman, merrill, citigroup, all down. hank: the market turned to lehman brothers. i was doing everything i could to encourage dick fold, the ceo of lehman brothers, to raise capital, to attract investors and or to sell the company. one of the first things that ben bernanke and i did was went to see marty frank. we said, we got lucky because j.p. morgan stepped up and bought bear. we needed emergency resolution authorities to keep failing investment banks out of bankruptcy just like the government had with commercial banks. he said, we will not get congress to act unless you are prepared to shout, if we do not get these authorities, you will have an investment bank like lehman brothers fail and the consequences will be terrible! that was something we were not prepared to do. as soon as we started saying that, they would have gone down immediately. withme out of that weekend big concerns. we do not think bear stearns would be the end of the problem. >> fannie mae and freddie mac in freefall as both were down more than 40%. wall street worry. >> losing so much money o

history and the first week of september lehman brothers management made unsuccessful overtures to many potential partners as a result their stock plunged by seventy seven percent the company would continue to see this trend to as its hedge fund clients started pulling out and it short term creditors began cutting credit lines by the end of the second week in september and brothers was left with only one billion dollars in cash leaving the company desperate for any help it could get and during the weekend of september thirteenth two thousand and eight lehman was in talks with barclays ca and bank of america corp hoping one of the banks would take over unfortunately lehman brothers was out of luck and declared bankruptcy on monday september fifteenth two thousand and eight women brothers was the fourth largest u.s. investment bank at the time of the collapse having twenty five thousand employees worldwide that day twenty five thousand employees lost their jobs and poise had been following the news over the weekend when they arrived to headquarters on monday they cleared out their offices

after the break former lehman brothers bank is a supposed to party in london tonight to mark today's ten year anniversary but what does describe the governor of the bank of england's previous employer goldman sachs is a great quid wrapped around the face of humanity think of the shenanigans and from the headlines of threats to the international criminal court and the european court of human rights. coming up a bunch of going underground. still dollars. thirty seven billion of those are printed every day there's no backing there's no collateral there iou against a system that has twenty twenty one twenty two trillion in debt. not including the medicare medicaid social security that would give it a under under fifty trillion and. join me every thursday on the alex salmond shill and i'll be speaking to us from the world of politics or business i'm show business. two thirds of american households do not have five hundred dollars emergency cash. has. no value a population doesn't have money and burning money maintaining thirteen carious around the room why why don't you change your polici

brothers bankers you know but that's a personal thing for a guy actually spent. what a lot longer it of my life. asset persons purchase agreement between women and our police in which some of the insiders from women as the ship was sinking arrange to have gigantic bonuses paid for themselves in exchange for negotiating an advantageous deal for part so the idea that a lot of those vets who got paid huge amounts of money on the way out the door can get together and celebrate the good times from when lehman helped nearly destroyed the universe that's pretty offensive but they've been somebody. since. it's just another one because people in the financial press they would accepting what you were saying even when you were writing about it is when you called it fraud by rich people wiping out forty percent of the world's wealth people said you can't be a scam or a fraud because some of that money the rich invested in property so they would take it into you know it's amazing looking back that nobody you know waved a ridge leg earlier at the f.b.i. as early as two thousan

lehman brothers maybe by twenty twenty will kill two hundred thousand people we talk about mass murder that's a gross underestimate. in the year or so after the banking crisis the united nations itself published a figure that proved that over one hundred million people around the world have been driven back into abject poverty by the banking crisis now the mortality statistics that means the number of extra people who died as a result of poverty are somewhere around fifteen percent mark that means that the banking crisis killed more people about fifteen million the exact numbers not quite clear about fifteen million people which is more than any conflict since the second world war so the banking crisis wasn't just about money it was about death and of course it made everybody's lives misery and misery and still does the response to it now i want you to remind us what you said to the treasury select committee that secured the resignation of labor problems gordon brown's advisor who was the deputy chairman of the virtual services authority james crosby i told them that i knew exact cause

investment bank lehman brothers filed for bankruptcy. the u.s. government chose not to step in. stocks around the world crashed as banks lost even more confidence in each other. the following month german chancellor under macko and then finance minister patched work had this message for savers. because we're telling savers that their deposits are safe the show isn't an attempt to avoid a run on the banks. what began as a u.s. subprime mortgage crisis soon had an effect on the global economy trade slowed down dramatically the result in the year two thousand and nine the u.s. economy contract by almost three percent and the german economy shrunk by five percent. and for more on that i'm joined now by my colleague last hired to who was a correspondent on wall street for the u.n. all of this happened so tell me what was it like that particular day the ominous september the fifteenth two thousand and eight how did you experience it well i think i was a shocking day really even though times had already been pretty rough markets were down there were a little shaky we knew about problem

brothers 15, lehman filed for chapter 11 bankruptcy. barrel -- merrill lynch was taken over by bank of america. the u.s. government took control million -- in an $85 million bailout. ben bernanke and hank paulson testified before the banking committee about the bush ministrations plan to put assets from the banking system. a look back at what it was like during those days at the height of the financial crisis. we spoke with michael spencer. guy johnson asked him what happened. >> all the financial stocks took a massive divide -- massive dive. lehman int exposed to the negative way. , i am down 100ng million quit today -- 100 million quid today. francine: we will keep watching throughout the week. let's get straight to the bloomberg first world news. taylor: more than a million people living in the path of hurricane florence have been ordered to leave their home. it is poised to become the strongest storm to hit the region and more than 30 years. forecasters say it will make landfall late thursday or or early friday. says the damages cou

wasn't willing to safe the bank lehman brothers remains the largest bankruptcy filing in u.s. history. and for more on that i'm joined now by my colleague the last hired to who was a correspondent on wall street for you when all of this happened so tell me what was it like that particular day the ominous september the fifteenth two thousand and eight how did you experience it well i think i was a shocking day really even though times had already been pretty rough markets were down there were a little shaky we knew about problems for the banks we knew about the real estate problems but it was just a shock to see these lehman bankers coming out of their office where they have boxes past or a journalist you know these people you know many of them so on a very personal level the first thing we felt is oh my god what happened here all these people they're losing their jobs this is a terrible tragedy but then asked the story developed to learn more and more about the details what lehman brothers had done how their market practices were and you didn't feel so sorry for them anymore b

brothers and author of a colossal failure of common sense the inside story of the collapse of lehman brothers larry thanks for joining us ten years this week after the collapse what lessons do you think wall street and the city of london have learned well central bankers haven't learned much i mean in the years before lehman the fail the federal reserve our u.s. fed kept rates at one percent for years and i'll never forget being on the trading floor at lehman in two thousand and five two thousand and six they were telling us because of the incredible visibility that central bankers were giving them they were telling us to take more risk take more risk take more risk and here we are ten years later and central bankers have. driven trillions of dollars into turkish bonds trillions of dollars into south african bonds emerging markets and it's really the risk has just been transferred from the banks over to the sovereign countries but you know if interest rates are raised by the fed or the bank of england here in. britain as you suggest that could crash the economy to germany cool been t

lehman brothers collapsed. and, the u-s economy plunged into the great recession.(vicki) reporter christine romans covered this story and talks about what it was like as the crisis unfolded around her. nat: "the scope of this fall breathtaking. first bear stearns. now lehman brothers and merrill lynch."nat: "is your money safe? is your job safe?"nat: "economists say this is the worst financial crisis since the great depression."christine romans/cnn chief business correspondent: "it was dramatic. it was so dramatic. and what could have happened was so scary. what could have happened if policymakers and big executives and luck didn't all line up perfectly was your credit card wouldn't work. you wouldn't be able to get money out of your bank account. there could have been a run on the banks, but you didn't want as a reporter, you didn't want to scare people, but you had to tell them exactly what was happening."nat: "lehman brothers for 150 years a corner stone on wall street failure to find a buyer over the weekend means it is now bankrupt. but, the mercy of wall stre

leaving lehman brothers wasn't my choice. i really thought there was no chance it would be allowed to fold. i never got back into the lehman brothers office again after september 12. it was a colleague who had to bring my box of my collection to me. i never got to do that. history rhymes, it doesn't repeat. regulators are too focused on that. will be get another financial crisis? probably. what has happened is people didn't believe a crash could come. it's like the great depression and the 1929 crash. people got so excited of the roaring 20's. as long as humans dominate the financial system and markets, which they still do, i think we will get financial crises. francine: that was a very on bloomberg strategist and former mark. brothers trader, we are just getting breaking news out of president erdogan of turkey. he is speaking at the moment. he says the political reasons lie behind the lira's decline. president erdogan seems to be on the attack saying that the u.s. decisions became pre-decisions for an attack on his economy.