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CLASSROOM.
HOW A CEO RUNS HIS COMPANY.
LEADERSHIP STYLES CAN BE
DIVERSE AS PEOPLE BUT ONE
THING THAT MAKES LEADERS
EXCEPTIONAL IS RESULTS.
AND THAT IS THE REASON SO
MANY OF US ARE FRUSTRATED
WITH WASHINGTON.
UNEMPLOYMENT OVER 9%.
FEDERAL DEBT AND DEFICITS AT
RECORD LEVEL.
PRIVATE SECTOR IN CRISIS
UNWILLING OR UNABLE TO SPEND
OR GROW.
SOMETIMES NO MATTER WHAT YOU
DO, IT IS HOW YOU DO IT.
THIS ADMINISTRATION LONG AGO
GAVE UP LEADING FOR
CAMPAIGNING.
THROWING IN THE TOWEL
FINDING A WAY OUT OF OUR
ECONOMIC MORASS AND
ELECTIONEERING INSTEAD.
WHY?
BECAUSE IT IS SO MUCH
EASIER.
SO MUCH EASIER TO HIT THE
ROAD AND WAVE THE FLAG.
SO MUCH EASIER TO CALL FOR
CHANGE THAN BRING IT.
TIME WE DID THE HARD WORK.
THAT IS MY TWO CENTS.
PRESIDENT OBAMA'S ABILITY TO
LEAD HAS COME INTO QUESTION
SINCE BEFORE HE WON THE
ELECTION.
EVEN THOUGH IN HIS INNER
CIRCLE SAID THINGS LIKE
WE'RE HOME ALONE.
THERE IS NO ADULT IN CHARGE
TO DESCRIBE THE OBAMA
WHITE HOUSE.
NOW A NEW BOOK TAKES US
BEHIND THE SCENES OF OBAMA
PRESIDENCY DURING ONE OF THE
WORST FINANCIAL CRISES IN
OUR NATION'S HISTORY.
JOINING US RON SUSKIND,
PULITZER PRIZE-WINNING
AUTHOR.
HIS LATEST BOOK, LOOK AT
COVER.
CONFIDENCE MEN.
WALL STREET AND WASHINGTON
AND THE EDUCATION OF A
PRESIDENT.
WELCOME TO THE SHOW.
I'M AT THE DEAD CENTER OF
YOUR BOOK ENJOYING EVERY
PAGE.
A GREAT READ.
IF YOU WANT INSIDE INTO THE
WHITE HOUSE HOW IT WORKS THE
BOOK IS A GREAT GUIDE REALLY.
DESCRIBE TO ME WHAT YOU SEE
AS THE PRESIDENT'S
LEADERSHIP STYLE.
HOW DOES HE MAKES DECISION?
>> HE ARRIVES, GERRI, WITH
REAL LACK OF EXPERIENCE.
HE HAD ONLY MANAGED HIS OWN
ONE-MAN NARRATIVE.
HE STEPPED AS PRESIDENT
COMPLEX MANAGERIAL ORGANISM
ON THE PLANET.
ULTIMATELY WHAT YOU FIND HIM
STRUGGLING.
AT THE BEGINNING THE BOOK
SHOWS IN PAGE AFTER PAGE
THAT HE TRIES TO STEP UP,
KIND OF BE ROOSEVELT IN THE
FIRST MONTH OR TWO.
AFTER ALL HE HAD 75%
APPROVAL RATINGS.
TWO MILLION PEOPLE ON THE
MALL CRYING ON THE MALL.
WEEPING AND CHEERING.
AND WHAT YOU FIND IS THAT
OBAMA WANTS TO TAKE DOWN THE
BIG BANKS.
HE SAYS LOOK, THIS IS WHAT
WE NEED.
DEMOCRATS AND REPUBLICANS
ARE SUPPORTIVE OF THAT.
TOO BIG TO FAIL BANKS ARE
CREATING FEAR WE'LL HAVE
ANOTHER LEHMAN STYLE
DISASTER.
I WANT TO SOLVE THAT HE GETS
BLOCKED BY HIS KEY ADVISERS.
HE ESSENTIALLY GETS GAMED BY
HIS OWN PEOPLE IN THE EARLY
DAYS.
IT WAS HARD TO READ.
IT WAS HARD TO REPORT.
IT IS OBAMA NOT SURE OF
HIMSELF.
HE GETS THE WIND KNOCKED OUT
OF HIM.
ULTIMATELY WHAT YOU FIND
OVER THE COMING YEAR, THE
KEY YEAR ALL THE WAY INTO
2010 WHEN VERY LITTLE IS
HAPPENING.
HE IS NOT SURE.
DO I WANT MORE STIMULUS?
DO I WANT TO BE A DEFICIT
HAWK?
HE CAN'T DECIDE.
THAT INDECISION I THINK
CRIPPLED HIM.
GERRI: WE CERTAINLY IN THE
BUSINESS MEDIA PAID
INCREDIBLE ATTENTION WHAT
HAPPENED TO THE BANKS THE
PRESIDENT WANTED TO TAKE
CITIGROUP APART AND BREAK IT
INTO PIECES.
HE NEVER GOT TO DO IT
BECAUSE HE WAS OUT
MANEUVERED BY TIM GEITHNER.
HOW DOES HAPPEN?
WHEN THE PRESIDENT GETS OUT
VOTED BY THE SECRETARY OF
THE TREASURY?
>> THESE ARE EXPERT ADVISORS
WHETHER ECONOMICS OR
NATIONAL SECURITY THEY DO
ADVISE THE PRESIDENT.
THEY OFTEN DON'T AGREE.
BUT WHEN THE PRESIDENT MAKES
A DECISION THEY'RE SUPPOSED
TO LINE UP TO EXECUTE.
THAT DIDN'T HAPPEN TIME AND
AGAIN WITH THIS PRESIDENCY.
IN 2010 HE STARTS GETTING
MEMOS FROM CHIEF OF STAFF, A
SHADOW CHIEF OF STAFF SAYING
YOU'RE GETTING GAMED BY YOUR
OWN PEOPLE.
YOU NEED TO STEP UP, ASSERT
ACCOUNTABILITY.
TAKE OWNERSHIP OF YOUR
WHITE HOUSE.
ULTIMATELY THAT WHOLE TEAM
IS OUT THE DOOR EXCEPT TIM
GEITHNER.
ONE QUESTION PEOPLE ARE
ASKING NOW HOW HAS GEITHNER
MANAGED TO SURVIVE?
GERRI: APPARENTLY REALLY
LIKES TIM GEITHNER.
SOMEHOW GEITHNER WAS ABLE TO
RESUSCITATE HIMSELF INSIDE
THE WHITE HOUSE.
YOU ALSO DON'T HAVE KIND
WORDS FOR LARRY SUMMERS, WHO
HE'S A VERY CONTROVERSIAL
FIGURE.
SAID SOME VERY NOT NICE
THINGS ABOUT WOMEN IN
PARTICULAR.
AND HE SEEMS LIKE A
HEAVYWEIGHT IN THE
WHITE HOUSE AND SOMEBODY NOT
AFRAID TO THROW HIS WEIGHT
AROUND.
>> YOU KNOW HE WAS SOMEONE
THE PRESIDENT WAS WARNED
ABOUT HIRING LARRY FROM THE
START.
MY GOD, JOE STALIN WOULD
HAVE TROUBLE MANAGING LARRY
SUMMERS.
ULTIMATELY, ULTIMATELY LARRY
I THINK TOO MUCH FOR THE
PRESIDENT TO MANAGE.
SUMMERS CREATES A KIND OF
LARRY SUMMERS DEBATE
SOCIETY.
PRESIDENT THINKS HE WILL
OVERSEE IT.
HE IS JUST ANOTHER GUY AT
THE TABLE.
ULTIMATELY SUMMERS FIRST DO
NO HARM PRINCIPLES JUST LIKE
TIM GEITHNER ENDS UP BEING
MOSTLY A FORMULA FOR
INACTION RATHER THAN THE
ACTION THAT THE PRESIDENT,
WELL, WANTED TO EMBRACE BUT
DIDN'T.
LOOK, HE'S PRESIDENT.
HE IS THE LAST WORD.
GERRI: ULTIMATELY.
>> ULTIMATELY THE PRESIDENT
SAID IN THE LAST INTERVIEW
WITH ME.
I'M PRESIDENT I NEED TO BE
IN TIME OF I RECALL PA.
I'VE -- PERIL.
I'VE GROWN INTO THE JOB.
QUESTION IS WHETHER THAT IS
TRUE OR NOT.
LET'S SEE.
GERRI: WHAT IS INTERESTING
THE WAY THESE GUYS
INTERACTED.
YOU GET A BIRD'S-EYE VIEW OF
VERY IMPORTANT MEETINGS THAT
ARE A DEBATING SOCIETY
OBVIOUSLY.
WHEN YOU LOOK HOW THE
PRESIDENT MADE HIS DECISION,
ALWAYS A LARGE PART OF THE
DECISION, POLITICAL, HOW
WILL IT PLAY?
IS THIS SOMETHING THAT WILL
REALLY GET ME THE KINDS OF
ATTENTION, THE KIND OF POLLS
THAT I NEED.
I WAS SHOCKED EARLIER ON
WHEN HE HAS HIGH APPROVAL
RATING STILL SEEMS TO GO FOR
THINGS HE THINKS PEOPLE WILL
APPROVE EVEN THOUGH WE'RE IN
CRISIS AT THAT TIME, A HUGE
FINANCIAL CRISIS.
>> IT IS TRUE.
WHAT IS INTERESTING HIS LACK
OF UNDERLYING CONFIDENCE
MEANT HE DEFERRED AGAIN AND
AGAIN TO CONSENSUS.
UNLESS I GET CONSENSUS FROM
MY ADVISERS ON MY POLICY I
DON'T ESSENTIALLY HAVE
CONFIDENCE TO ACT AS WELL.
IF THAT IS TRUE ONLY WORKED
POLITICALLY ONLY WHEN ALL
THE THINGS CAME TOGETHER DID
HE MOVE.
THAT WAS VERY RARE.
THAT WAS ONE OF THE PROBLEMS
IN TERMS OF HIM NOT BEING
ACTIVE OR AS ACTIVE AS MAYBE
THE COUNTRY WANTED HIM TO BE
AT A TIME OF REAL CRISIS.
GERRI: RON, YOU TALKED TO
EVERYBODY OBVIOUSLY.
YOU SPENT I THINK 50 MINUTES,
AN HOUR WITH THE PRESIDENT
HIMSELF.
HOW FINANCIALLY SAVVY IS
THIS GUY?
THIS WAS THE BIGGEST CRISIS
WE'VE SEEN SINCE THE GREAT
DEPRESSION.
SOME OF THE MOST COMPLICATED
FINANCIAL INSTRUMENTS EVER
CONCEIVED BY WALL STREET.
WAS THE PRESIDENT UP TO THE
TASK OF FIGURING OUT WHAT
THE TO DO AND HOW TO
IMPLEMENT IT?
>> WELL, LOOK HE RAN UP A
LONG LEARNING CURVE, THAT IS
INDISPUTABLE.
HE IS NOT AN EXPERT IN
FINANCE OR ECONOMICS.
HE SORT OF HAD TO CRAM
QUICKLY.
I THINK AT THIS POINT HE
DOES GET IT.
I THINK ALONG THE WAY THERE
WERE SOME DOUBTS WHETHER HE
DID REALLY UNDERSTAND THE
COMPLEXITIES THE NUANCES OF
THIS THING BUT IT'S
INTERESTING AT THAT FINAL
INTERVIEW YOU TALK ABOUT THE
PRESIDENT, HE DOESN'T DENY
ANYTHING.
HE SAYS, LOOK, THESE WERE
HARD TIMES.
I LEARNED HARD LESSONS
THROUGH THIS ADVERSITY.
AND I'VE GROWN FULLY INTO
THE OFFICE.
NOW OF COURSE PEOPLE SAY
BETTER LATE THAN NEVER.
IT DOES TAKE PRESIDENTS
SOMETIMES A YEAR,
YEAR-AND-A-HALF TO LEARN
THAT JOB, THE HARDEST JOB IN
THE WORLD.
I THINK THE QUESTION NOW
WHAT WILL HE DO GOING
FORWARD?
THAT'S A QUESTION A LOT OF
PEOPLE ARE ASKING.
ONE THING THAT A LOT OF
FOLKS ON OCCUPY WALL STREET
MENTIONED AS WELL AS TEA
PARTY FOLKS HE WANTED TO
IMPOSE A FINANCIAL
TRANSACTION TAX TO TAX WILD
SPECULATIVE TRADING ON
WALL STREET.
IT WOULD HAVE RAISED $100150
BILLION.
PEOPLE ARE SAYING OKAY.
YOU WANTED TO DO THAT.
YOU WERE BLOCKED BY LARRY
SUMMERS.
WHY NOT NOW?
THAT'S ONE OF THE QUESTIONS
PEOPLE ARE ASKING.
WORDS ARE ONE THING BUT IS
HE GOING TO FOLLOW IT UP
WITH DEEDS?
ONLY WHEN WORD AND DEED ARE
TOGETHER DO PEOPLE HAVE REAL
CONFIDENCE.
THAT IS, CONFIDENCE MEN, THE
TERM CONFIDENCE IS ABOUT HOW
HE RESTORES AND EARNS REAL
CONFIDENCE.
IF HE DOESN'T DO THAT HE
WILL HAVE A TOUGH TIME IN
THE ELECTION COMING UP.
GERRI: I WANT TO PLACE YOUR
BOOK IN CONTEXT OF RIGHT
NOW.
YOU SAY BOTH THE LEFT AND
RIGHT EQUALLY BUYING YOUR
BOOK.
IT HAS INTEREST LEVELS FROM
BOTH SIDE OF THE AISLE
OBVIOUSLY.
WE'RE IN THE MIDDLE OF A
HUGE PROTEST, OCCUPY
WALL STREET DOWNTOWN.
MANY PEOPLE ACCUSING THE
PRESIDENT FANNING THE FLAMES
OF THAT KIND OF DISSENT.
DO YOU BELIEVE HE IS AND IS
THAT PART AND PARCEL WHO HE
IS, BEING ADVERSE REALLY TO
MANY OF THE FINANCIAL
COMPANIES IN THIS COUNTRY,
ADVERSE SOMETIMES TO
WALL STREET?
>> LOOK, DEEP DOWN HE IS NOT
ADVERSE TO WALL STREET.
HE IS SOMETIMES SAYS HE IS
BUT ACTION DOESN'T FOLLOW
WORD.
WALL STREET HAS GOTTEN A
TERRIFIC DEAL FROM THIS
PRESIDENT AND THE GUYS WHO
RUN WALL STREET ADMIT THAT.
THEY OPENED THE FEDERAL
PURSE TO SAVE THEIR BACON
AND SAVE WALL STREET.
EVEN NOW WHEN THEY SAY HE IS
ANTI-WALL STREET.
YOU DON'T REALLY BELIEVE
THAT?
NOT REALLY YOU ABOUT WHEN HE
HEARS HE TENDS TO GIVE MORE.
I THINK HE IS OUT OF IT NOW.
WHETHER THE QUESTION WILL
PRESIDENT WILL BRING
STOPPING ACTION TO
WALL STREET.
AMERICAN BUSINESS HAS NO
LOVE FOR WALL STREET.
CERTAINLY MAIN STREET
DOESN'T EITHER.
THEIR ACTIONS AT THIS POINT
ARE NOT HELPING THE AMERICAN
ECONOMY.
THEY'RE NOT HELPING AMERICAN
BUSINESS.
THINK PART OF WHAT PEOPLE
LEFT AND RIGHT ARE SAYING,
CAN THE PRESIDENT CHENG
THAT?
CAN HE BRING ACCOUNTABILITY?
AT ONE POINT RAHM EMANUEL
TALKED ABOUT STRONG
FINANCIAL REFORM BEING
NEEDED.
THE PRESIDENT REALLY DOESN'T
STEP UP TO THAT.
HE SAID TIME, MR. PRESIDENT
FOR OLD TESTAMENT JUSTICE
THAT IS SOMETHING THAT WORKS
POLITICALLY AND IN TERMS OF
POLICY.
GERRI: IF YOU'RE
LEHMAN BROTHERS AND YOUR
COMPANY GOES UNDER THAT IS
OLD TESTMENT JUSTICE, LET ME
TELL YOU.
>> NO DOUBT.
GERRI: HAPPENED TO
BEAR STEARNS AND ACROSS
WALL STREET.
RON, LET'S NOT WAIT FOR YOUR