Counter general electrics did for the alston business. One of the biggest upset ever in a congressional race the number two in public and in the house, eric cantor, lost in the primary to the key Party Candidate, david rat in david brat in virginia. Campaign that a portrayed eric cantor as being soft on immigration. Moving and shaking this hour, the incoming ceo of aig Peter Hancock. He will take over again september 4 Bob Benmosche. For bobptember benmosche. He established a Derivatives Group at j. P. Morgan. Internationalgs assets, return the company to profitability and repaid the government 182 Million Dollars bob motion. He stayed on longer than planned bob and moshe it. He stayed on longer than that plan after announcing in 2010 he was battling cancer. I spoke with bob for a few moments yesterday. I want to read one part of what he said. It is simple. I said i would set a date to make the trip, but in order to make the organizational changes at aig it would be important to have a new ceo to run the company. The transition was taking too long. He pressed the board and said we need to make a decision. The actual person taken over is not a surprise. That is a great way to sum it up. Peter hancock has been seen as the presumptive next ceo. The surprise was the timing. People thought that Ben Moshe Bob and moshe it would be sticking around until next year. This brings up questions. J winthrop was seen as another successor. He was the other internal candidate. You runs the Life Insurance operation at aig. Steve miller, the chairman of aig, told me that he plans to stay on, but we will see how that plays out. There are questions about Peter Hancocks mandate and how he will take aig to the next phase. And here is what bob said. Peter will be continuing the momentum at aig. If the board wanted a genetic change, they would have look for someone outside. I put pressure on the board to name a new ceo. There was too much pressure about it. This is a process that has been going on for a long time. Bob and moshe had cancer. They looked at some external candidates, but frankly they landed on they had these strong internal ones, and as rob said, they like the direction they were headed, so they meant about peter. What are people telling you about what peter is going to do with aig . Is it big issue with aig is a vastly Different Company today than what Bob Benmosche inherited. Is a Smaller Company had clicked it is much smooth company. It is much smaller. They used to have these past International Life organizations. What Peter Hancock needs to do is not stabilize the business, but figure out ways to grow it, and that is what he has been doing is the head of the Property Casualty unit for the next stretch, trying to figure out ways aig can deploy capital at attractive riskadjusted returns. Very some criticism. Some have said Peter Hancock does not know the Insurance Business that while. He is still relatively new to it. He was a banker at j. P. Morgan. In derivatives. And he is relatively new to the insurance industry. Aig for a couple of years, traveling the world to figure out operations, and we will see how he does. On the question on aig and why this transition taking place now, some have said there is an employee morale problem and some executives are leaving. I talked to Bob Benmosche about that, and he said it is the opposite, there are people knocking on the door, they want to comment they believe aig has its groove back. That is when he was saying. What are you hearing on that front . Hasorale is something that hung around aig since the financial crisis. And a lot of executive departures. We will have to see. It will come down to how peter grows the business. Are there attractive opportunities for people to stay on and grow their careers . Noah, thank you for joining me on this. In washington, that is the seat of the number two republican in the house, eric cantor, exposing the continued divide in the party. Peter cook is tracking the fallout. What exactly happened here in virginia . Saw it coming including, will of poorly, eric cantor. One minute, he is the conservative heir apparent to House Speaker john boehner, the favor lawmaker of a lot of his groups here in washington, and the next minute he is out of a job, losing in his primary to a tea partybacked candidate nobody had ever heard of outside of the seventh district of virginia until last night. Eric cantor was here yesterday, casting votes, seemingly unconcerned. He had run some campaign ads, but he did not have to mount a serious fight. Brat,d he loses at david a professor at a College North of richmond. Made the case that eric cantor was not conservative enough, especially on immigration. Eric cantor spoke to his supporters. It is disappointing, sure. I believe in this country. I believe there is opportunity around the next corner or all of us. Nobody believes that eric cantor would be out of a job, the number two House Republican, the man tapped to replace john boehner. The Ripple Effect will ripple across the country, certainly already on capitol hill. Some of these established republicans like john boehner, should they be worried . Absolutely. This is a message to the leadership. John boehner should be worried about his speakers gavel and the tea party folks, the conservatives, they will demand a seat at the leadership table. Tompeople to watch, and price of georgia, they will argue to get some see at the table. Peter, thank you. Peter cook, our chief washington correspondent. Lets turn to business. If you live in london, paris, youed, milan, madrid might want to stay at home as traffic will be a nightmare as therell be a protest of uber. The largest will be in london where the traditional black cabs will block major areas. , what is the plan for the protest today, and are using traffic jams right now . Good morning. The plan is for in about one hours time thousands of taxi anders will descend here start circling this area going down to whitehall, harlem and square. Up,housands of cabs show these are key arteries of traffic in central london. It could cause extraordinary gridlock. These cabdrivers are angry, saying uber is operating illegally. They have to jump through all sorts of hoops and uber has come in and they get to do what they please. Today is about voicing their discontent. I spoke to the head of the taxi drivers association. In london this afternoon i have been threatened with arrest. Cabdrivers are being threatened for driving on the road streets. Is that the sort of power that uber has . Is this the money it has . Ise the police force quest it by a police force . . Hat is going on in the city this is a start up. It has not been worth 17 billion for too long. He said really what this is about is a manifestation against a successful, Disruptive Technology breaking into a heavily regulated industry. Cks Olivia SternsOlivia Sterns, thank you. Aignt to get back to the them naming Peter Hancock to replace Bob Benmosche. My next guest served as the treasury Second Special compensation. It can find break ken feinberg joining me. Thank you for joining me this morning. Here. D to be first off, your reaction to Bob Benmosche and this succession plan. Do you think it is orderly . Orderly, tough shoes to fill. Bob benmosche, during the 16 months that i was the treasury on executive pay was the most effective negotiator on behalf of any of those top corporate recipients of taxpayer funds. I wish peter well. Those are tough shoes to fill. He was affect them against you, ken. He wasnt really. Negotiator. Cellent humor, he knew the facts, he understood the tension between a populist resentment to the tarp bailout of aig, and the need to keep his employees in place and not bolt to other competitors. He was very effective. He knew everything about the company. He came prepared to treasury. We personally negotiated each and every compensation package. A really set the Gold Standard for this. He said to you and those running tarp at the time that he needed to pay his executives properly, that top executives could not be subject to some of the caps on being put in place. In the end, those were the right decisions . I think so. I think we balanced the political outrage at the bonuses that had been paid to aig employees with bobs foresight, his vision in understanding what the future held for the company, each individual employee we worked that out through a negotiation process. Asked what was most effective about what was most effective about Bob Benmosche . He knew the fact. He came prepared. It was not simply from 30 thousand feet. He came in and with each employee he had a dossier. He had the information. He knew what he needed. He came up with creative alternatives to simply more money, less money. He left treasury impressing everyone. What is your big question around aig . The big question now is can the momentum be sustained. That he was dreaming if he thought the company would be able to repay its tarp taxpayer obligations. He was right. He managed to do it. Big challenge for peter will be further stabilization, moving forward, maintaining the momentum bob brought to the company. The think of the company, now that it is out of government oversight, ken, that it has learned its lesson . It is a Smaller Company, still systemically important, but you think they have learned their lessons and are you confident they can go on without direct government oversight . That remains to be seen. The crystal ball is murky. I would not predict one way or the other. I would say all of the indications from the past and thepresent is that bob left company in a position where it should be able to maintain that momentum. Peter is in charge. He knows the company. He knows it has to be done. Fingers crossed, but obviously, in america, companies advanced on their own in the marketplace without the kind of government intrusion that was necessary after tarp. Hancock . Know peter i have met peter. I would not know him the way i know Bob Benmosche through experience. I have not peter, i have met peter, that is about it, but he certainly has the resume and knowledge of the company. The outlook is promising. It seems like you have no ill will or harbor any hard feelings at all against Bob Benmosche, and the fights that came out in public later that were welldocumented between you and over compensation . You have no ill will. Ill will i have no ill will at all. I salute bob. We had disagreements, sure. I had a treasury mandate from congress. Is borna mandate from in his company. We worked it out. From his board and his company. We worked it out. That is what negotiation is about. People look to you as the go compensation,t Victims Compensation, from the 9 11 fund, to bp, and now i know you are working with General Motors. Compensation do you think it has gotten out of hand on wall street since the days you negotiated the pay of aig . I think executive compensation is still higher than it should be, but that is the free market. That is the adam smith in the laissezfaire system. I think they get between wall street compensation and main street competition is conspicuous, obvious, and i think it is too high, but only the free market can correct that system. And you do not see that reversing at any point . Well, if the market reverses. Right now, the argument is you get what you pay for. The market is soaring. Wall street is thriving. Main street is still very iffy, but this is the way the system works. You cannot expect government to interfere the way we did that tarpess demand after the bailout. You cannot expect government to monitor how wall street executives get paid on a daily basis. That is the function of private markets. It is a problem, but it is a problem that we have had for the last over 200 years in this country and it will continue, i think. Can, the extent that you can you tell me how it is going so far with assessing the Victims Compensation with General Motors . It is going very well. As i have said publicly, by the end of this month, we will establish a Compensation Program that will define who is eligible to file a claim with this fund that i am creating, what the dollars will look like for those who do file, the obligations they will have, the claimants, to prove their claim. We will, as expeditiously as we can, start to pay eligible claims. G. M. , i must say, as delegated has delegated to me without any ambiguity here full discretion to evaluate each individual claim, make a determination, and a those claims that are eligible pay those claims that are eligible, and the program should kick in, as gm has demanded, around august 1. Or you could be paying claims as soon as an or will it take a little while after . It will take a little while after. I would hope by august 1 week could invite claimants to file a claim. It will be a claims form. There will be rules governing claims. I am collecting input and advice lawyers,fficials, claimants themselves what should a Compensation Program, the structure, look like . By the end of this month, we should have a program in place and we will prepare the documentation, the claim forms, the rules, and i hope that we will begin to welcome the submission of claims by august 1 per gms timetable. I know it is very early, but is the price tag going to be astronomical will the shareholders gasp at what will be paid out . I like your comment. It is rather early. The price tag is at the end of the process. First, who is eligible to file a claim . Who is eligible . Claim is filed, what will be the methodology how will we calculate with individual claimant should receive . Third, how many claimants . If you had a number of claimants to the methodology we are going to use to calculate damages, that will give you some rough, but thatestimate program cannot go on forever. If we start by august 1, we want to have a relatively modest timetable to invite claimants to file their claim or that families and loved ones. Get them evaluating. It is premature to talk ken we are back with ken feinberg for this exclusive interview. Ken feinberg, as you know, is running the victims Competition Fund for General Motors. I can do many things on this program, i apologize, but one thing i cannot do is change our commercial breaks. You are finishing your comments about the price tag of what these claims could be and you were describing the process. At the end of all of this, do you have any idea, can you estimate at all how much we are talking about, or will this be a Game Changing number for General Motors . The answer is no, i cannot estimate it. First of all, we do not have the rules in place yet. We are gathering permission about what the program should look like. Secondly, it after you have the program in place, who is applying, who will submit the claims . Third, even if they submit a claim, is it corroborated, is it approvable . It is very premature to be talking about aggregate numbers. Yeah. Until there is more detail about what the Program Looks Like and who is filing the claim. Who is working with you . How many people do you have working with you on this . This is a small group. I have my colleagues working closely with me. Il has worked closely with me on these various programs like 9 11 and the bp oil spill. Touse outside economists help model what the program should look like. I reach out to the plaintiff lawyers across the country who have the claims, to gm officials to get their input as to which automobiles might be eligible, and we are trying to have a net toet, cast a wide get as much information as we came to make the program credible. If it is not credible, it is not successful. Clarks absolutely. Howd is this absolutely. How is this different from your experience on the 9 11 fund, bp, or tarp, for that matter . The 9 11 fund stands on its own. That was a national, historical tragedy, unrivaled, maybe pearl harbor, the civil war that is about it. There will be nothing like the emotion associated so soon after the 9 11 attacks with the establishment of the 9 11 fund. With bp, the problem was volume. We received over one million claims from 50 states and foreign countries. They are all different. This is a unique situation. Gm we will get it, and we will get it right. What is the biggest challenge, here, with gm what is the biggest challenge for . U, ken the biggest challenge is what it always is coming up with a program that is viewed as fair, efficient, speedy, and the goal, always, get money out the door and as fast as we can. Ken feinberg, thank you for joining me this morning. Glad to be here. Thank you. President Barack Obamas popularity rating sinks to the lowest point in his presidency. Only 44 of americans say they have a positive feeling about the president. The president got low ratings on his handling of veteran affairs and the deal that freed sergeant obregon bowe bergdahl. Emirates Airlines Cancels in order for airbus planes. Increasing his bed on u. S. Treasury. Governmentrelated death makes up half of his debt makes up half of his total return fund, the Worlds Largest bond fund, which has trailed 62 of its peers in the last year. It has been a tough year or years for bill gross. Turning to the world cup i