Steve Pagliuca 3-27

" Brief Friday we check in with Steve tell you -- he has a global private equity investor and the Celtics owner and managing partner. And we talk business with Steve because sees a business a super brings these and these are guru he's a wizard he's a guy we want to talk the wisest thing that Steve here on WRK once again welcome back. Well you guys are very complimentary this morning. You know we thought we make you feel good don't we cannot Simon the Celtics have been gone through a tough time so want to kind of ease you into the weekend a little bit and me. That you are a summary we've indicted talked to about what's been going on Washington because that Tim Geithner the Treasury Secretary in the Obama administration are. Are making a play for different kind of business environment in terms of regulation. Of the kinds of NCs like AIG we've been seeing get in the country into trouble what's your take on that."

" it in general I think it's a good idea two. Find some process to regulate the non bank entities. Especially with respect to cushion that we need to have -- this whole problem. This caused by the business structures out running the ability to have -- regulated for cushion. Because there wasn't enough cushion we had bank failures and and more partly non bank failures which are now wanting this so I think that is needed it's going to be an awful wave."

" On that -- pieces I understand -- Steve the -- the insurance sector is us segments of AIG. Have remained profitable to this day and have been carrying the company. Although the Olympic and still carry the company forward. And those out obviously under the purview of some type of supervision or regulation with regard to insurance reserves and and other. Corporate behavior is your sense is that that type of supervisory. System can be extended to the non bank aspects."

" Yes you know if if it walks like banking quacks like -- bank to bank. And therefore it needs to have great toward capital so I think that's where their -- should be. And that'll be a clear. -- to put -- back in in its systemic position. Basically not having those entities regulated so the the one small and really regulated Kennedy in -- AIG. -- 600 billion dollars credit default swaps and that's what brought the company and the rest the company was performing very very well. And to take it in Washington that's going to be recognized. And I think one thing that the finale of this is. Going after everybody in effigy is not a good idea -- going after the people that caused the problem is the right way to do it. Not trying entire company in the -- shared responsibility. Both by the government and by the people AG. The field AG have done a very good job George -- that the small group -- Topeka."

" It would seem like the cure for this and maybe this is where you're suggesting on archer would be to go back in time have smaller entities and have them be streamlined into these specialized skill sets rather than. Piling all these things into one company I have -- be unmanageable."

" I think that's a good point. They're maybe a question just size. As to whether a company is to diversify and has too many things going on content cause static risk. I think more importantly if the regulators have the -- men and audit and demand. Cushion or regulatory capital -- to businesses I think that probably job one. Jump to would be look at these entities and NC you want to structured if they if they -- become too big to fail. They're getting awful lot of systemic risk."

" Steve it's been an interest in several days in the stock market before we let you go commission take on what is going on out the resists. Fundamental pivot point -- this just an aberration in an otherwise struck."

" Did you know words Tom Watson Alan it's going back to. -- I haven't -- that question I'd be out of boat in the Bahamas right now but that's. That you. I would show how very out of that little little hazy day here at bought and open at this saudis since. But. See the stock are showing some signs of stability which I think is good. The stock market always -- economy would still have more economic issues that'll regrettable words. But you're seeing some signs of -- stability instability is the first thing before you have a comebacks so so that's a positive sign. As to whether it bounces up -- down you know no one knows but we have seen a period of you know nine -- ten -- sustained stability which we have seen at all times so that's good news."

" All right C value good good to have you back we'll see -- next week appreciate the the update on what's gone on a business Steve is the Como co owner Matt."