you can blame the bankers that went wild. regulators that weren't minding the store. >> what goes on behind closed doors on wall street? >> we stand strong, and on the other side we'll eat golden sludge. >> could it happen again? >> i don't think anybody realized that we were within a day away from a major international catastrophic and economic meltdown. >> james wood from "too big to fail," andrew ross sorkin, the man who wrote the book on the crisis. this is "piers morgan" tonight. good evening. it's costing dominique strauss-khan $1 million to get out of jail. the judge is granting him bill, but he also posted bond for another $5 million and will be required to submit to home detention. he is being indited on seven criminal charges, related to allegation that he sexually abused a hotel maid in new york. joining me now, lisa bloom and author of "think, straight talk for women to stay smart in a dumbed down world." and the break-up of the marriage of arnold schwarzenegger and maria shriver. and ralph, divorce attorney, and the author of "getting away with murder." let's start with the case of this imf boss and turn to you, lisa. this is your area of specialty. an extraordinary case. we don't really know what went on in that hotel room. what we do know is that he has been allowed bail. he will come out tomorrow. >> what jumps out at me are the conditions on this bail. he has been required to pay $5 million, an extraordinary amount for a rape case. an armed guard will be posted at the door of his apartment, and he promises to waive extradition. this judge clearly does not want another roman polanski situation and flee to france and never see him again. >> does this infer any sense of the evidence stacking up against him? >> it very well could. the judge in this type of case is going to look at whatever evidence the police has, photographs, physical evidence, any dna tests, hair, fiber sample that may have come in, and the judge may say, look, this is a serious case. we want to make sure he stands for trial. >> given the charges that he is facing, if he is convicted on all seven of these, what kind of sentence are we looking at? >> he could be looking at 25 years behind bars. these are class one felonies here in new york. if convicted. of course, he is presumed innocent. we haven't heard both sides of the story yet. >> i mean, you are a divorce specialist. it seems to me that the absolute best scenario from everything i'm reading is that he may say this was consensual, and if that's the case, i would imagine this is where you would come in where the divorce courts were -- >> i was a prosecutor. these are not easy cases. he-said-she-said unless they have photographic evidence. what may happen is this, she hired a first class civil lawyer. that lawyer may sue him for assault. that will destroy the criminal case. it happened in the rape case of the kennedy boy. same thing. i wouldn't count hem out, and i wouldn't think a long-term situation of that wrist bracelet or whatever is he wearing. >> to me the most interesting part of this case is what the state court judge is going to allow in. are they going to allow in evidence of the other women who have similar stories, who say that they suffered similar fates like this maid? under a theory of modis operandi, that he has done this before and this is a common occurrence for him, a new york state court judge just might let it in. >> if you couple this with the damaging images that we're getting all the time, which the french are going mad about saying that this is -- what happened in france? do you think -- >> that is the perp walk. we have the first amendment here, andly defend the first amendment. we have a right to photograph people when they're on the street, being taken out of the car, into the jail. we have free press here. i'll defend that until the end, but, look, there's only two defenses. i didn't do it, or it was consensual. if there's physical evidence linking the two of them sexually, the only defense is it's consensual. then the question is are there marks or contusions? is he going to say it's consensual rough sex? a 32-year-old maid walks into the room of a 62-year-old man and has consensual sex with him. >> there are many outrageous theories. we're all hearing different versions. that he has been linked this escort agency and that he may have ordered an escort and thought the maid was -- have you heard this rumor some. >> yes. that's the rumor. >> does it seem a potentially credible one to you? >> i don't know. i don't know. i would think that the d.a. probably investigated that, and if that were true, it would affect -- >> you still can't rape an escort. how is that a defense? that's a dangerous defense. if you have physical evidence that there was and type of a struggle and evidence that she was in the bathroom with him, she escaped and she was almost at freedom, but is dragged back, you are putting all your eggs in a basket that may be destroyed by the physical evidence of a fight of blood in the room and other types of abrasions on this maid. >> wasn't she wearing a uniform? >> the whole thing -- at the moment there are too many unanswered questions as to where we sit. we don't know enough of what's going on behind the scenes. it's interesting that he has been let out. he will be out tomorrow. then we'll find out more. let's move to the other case, which is the schwarzenegger scandal. if it hadn't have been for the imf guy, it would have been bigger. what a bombshell. it's a strange story to get our heads around. you know, see images of him with his housekeeper. it doesn't seem feasible that this has happened, and he has admitted it. it looks like we're heading to a divorce, although maria shriver at the moment hasn't gone to divorce lawyers. she's known since january. you two are the experts in this area. if it goes to a divorce, we're talking huge numbers, but answer me with this question. how much of what arnold has admitted to in terms of bad behavior -- it doesn't get much worse than impregnating your housekeeper, where does that come when it comes to a divorce settlement? >> not really. i understand she has lawyered up at this point. >> she is. >> yes. laura lasserman, from what i hear. the significance of all of this stuff would affect custody. saying he has moral terpitude, he is a degenerate, but it's ten years have passed and all of a sudden this lady gets shocked and seen in casa blanka, where i'm shocked. she pockets the money. that has to be some kind of music in this -- >> it comes down to how maria shriver decides to react to this. i have said this repeatedly since this broke. i saw them both together in los angeles only a month ago. clearly long after she found out. they seemed happy. they were going for dinner together. clearly, it wasn't that hostile when i saw them. does a lot depend on how she reacts now? >> absolutely. there has been rumor after rumor about how many affairs that arnold has had. i mean, you know, the joke is -- the real issue in this case is not the affair. it's not the child. it's the coverup. for 14 years he knew he had an affair and had a child with this woman in the same home as his wife and his four kids. that is the most distasteful part of this entire event. >> especially in california, is there any particular aspect of californian law that might relate to this? >> well, i wonder if she has a sexual harassment claim, because she was an employee. that would be time-barred because these incidents were so long ago, unless something happened in the last three years. she was still working there. did he make a pass at her? did he make a move on her? if something happened in the last three years, she could bring in all of the old stuff. i'm sure over time with an iron clad confidentiality provision. that's why she hasn't talked to any news outlet. that's probably why she will not talk because she won't get paid in the fight if she starts talking. >> arnold schwarzenegger is worth -- depending what story you believe -- up to $1 billion. what percentage-wise could he expect to lose if maria goes for the jugular here? >> california is a 50-50 state, but if there's no prenuptial agreement and he was shuffling money to this lady, that gets figured back in the pot. that's a dispayings of money here. >> just remember, we just had the mcchord case where yam ji mccord got to -- she had been a previous divorce lawyer. the fact that, you know, we are on a swing in california, they're not afraid to set aside a prenuptial agreement. >> i wonder if you are in arnold schwarzenegger' position. what is the prudent thing to do now in terms of public statements or interviews? what would you advise him? >> i wouldn't give the story legs. he made a statement. a gracious statement of sorts. i would just go to cincinnati or somewhere and disappear. >> pay maria whatever she wants. don't fight her. give her her 50%. give her child support. give her spousal support. she gave up a broadcast journalism career for him. let's not forget that. she stood at his side. many people credit her with getting him elected governor. give her whatever she wants, settle it, lay low for a while. eventually come out. >> what is the mood in the california smart set about all of this? shock? >> really it is so appalling, and i have to say among women -- not that i speak for all women, but the idea that this woman may have had relations with him in their marital bed, that she lived there, that they may have had babies five days apart, i mean, the shocking aspects just keep on coming. it's hard to get your mind around how appalling this really is. >> how about the last ten years this maid has started to look more and more like maria shriver. changing her hear and color. it's very strange. >> i don't know if i see that. >> she had some kind of idolizing relationship to maria. she asked her her advice about love. that's where it gets really painful for a woman, i think. >> this is the woman that for ten years maria has been going up to and saying do i look good in these jeans, and now you realize that maybe she wasn't so honest. >> to his credit arnold schwarzenegger has been a very good father. i think everyone agree with that. >> what about to this child, though? >> well, apparently -- >> giving money is not the same thing as being a good father. >> he has not ab solved his responsibilities to the housekeeper. he has provided financial support. >> isn't there more to be a father other than providing financial support. wouldn't it have been better to own up to the boy and be a father to this boy. >> he made -- >> many men who are in this situation do own up to it and become a father figure to the child. i disagree. i think it is about the child. the child doesn't deserve this. >> he is apparently good friends with arnold's children. >> looks like arnold, they say. >> looks exactly like him. >> maybe the kid, you know, has come to this conclusion on his own, looking in the mirror, looking at pictures. >> in terms of a divorce settlement, how much of it is tainted -- how much of it comes down really to arnold and maria? >> you got to do something pretty, pretty bad to affect that financial thing. >> on the other hand, you look at something like the tiger case where presumably there was a prenup, but tiger ended up paying significantly more, as has been reported by some sources, just to try to get back his p.r. emage. i think the same might happen in this case as well. >> we don't know, and a lot of those allegations are unsubstantiated, and it will be fascinating to see if other women do come out and corroborate earlier claims that were made against him. he always said they weren't true. the jury is out. thank you all very much. >> thank you. coming up, the financial crisis that brought this country to its knees. the story of "too big to fail" with james wood and author andrew ross sorkin. ♪ [ male announcer ] in 2011, at&t is at work, building up our wireless network all across america. we're adding new cell sites... increasing network capacity, and investing billions of dollars to improve your wireless network experience. from a single phone call to the most advanced data download, we're covering more people in more places than ever before in an effort to give you the best network possible. at&t. rethink possible. her morning beginsve you the bewith artitis pain.e. that's a cofe and two s. . back to sore knees. back to moreills. the day one but hang on... her doctor recommended aleve. st 2il can keep arthritis pain awaall day fewerillshan tylenol. th is laraho chose 2leve anfewells r day free opain. and get the all day pain relief ofleven liquid gels. the 3.6-liter pentastar v6 engine in the jeep grand cherokee has a best in class driving range of more than 500 miles per tank. which means you don't have to worry about finding a gas station. which is good... because there just might not be one. the movie "too big to fail" is based on a best-selling book and premeerz on hbo on may 23rd. andrew ross sorkin was a columnist for the "new york times", and james wood plays the chairman and ceo of lehman brothers who has filed for chapter 11 in september 2008. they both join me now. andrew, let's start with you. you wrote this book. it's a brilliant title, because it kind of perfectly encapsulates the mindset of all these guys, doesn't it, on wall street? they simply never imaged that any of them could fail in the way that lehman brothers failed. >> you could call it failure of imagination. the title -- my editor hated the title when we first started the book. i always thought about not the institutions themselves, but people who in their own way thought they were too big to fail, and couldn't accept the reality of sort of what was happening to them. >> you are from a business, which is not dissimilar, i would argue, to wall street. lots of big egos, lots of narcissism, and lots of people who themselves consider themselves too big to fail. >> a sign curve of success and failure that's very much like the world of economics where, you know, you are as good as your last movie, good as your last earnings quarter. one thing i said to curtis when i first started to play this sort of -- the -- that i thought it was a very shakespearean story because these people have these tragic flaws, it seems, and i'm not -- i don't think that, for example, that mr. fuld was an evil person. he was trying to protect his stockholders as well, and wouldn't take certain acceptable offers on the stock as it was making a freefall to precipitate this crisis, but in our business i've seen that so many times where, i mean, the fellow who was the head of columbia, david beagleman started hiding checks, and ended up committing suicide. there are legendary hollywood babylon stories, and i'm sure there are wall street babylon stories, and this remarkable book and this is something that's important to point out, by the way, because really we're talking now about the entertainment that we made here for hbo. i thought how could anybody pull this incredibly complex story together, a, which he did, remarkably, and, b, make it exciting. this thing is like all the president's men. it's the most exciting thriller, and i just never expected it. >> i was, like -- >> it's a great film. i wouldn't say that lightly. have you. you have energized the story that could have been quite dry. i was trying to think of the reason why because it's in the end. it's like robinhood. have you very rich people running a collective scam which encourages pretty poor people, not the brightest of people in many cases, to leverage themselves right to the hilt, so when this ballooned never to be op popped which the smart, rich guys know has got to happen, it's the poor people who get hammered, and they just simply get bailed out by the government. i mean, they start all over again. >> there's one amendment i would like to put to that. these people put this cultural zeitguys of greed into the poigs atmosphere. during the bottom of this crisis, i was trying to sell my late brother's house, and real estate agent friend was trying to sell it and said this is just a catastrophe. he said i had a woman come into my friend who was a mortgage broker. she was trying to refinance her house. she had gotten a $750,000 mortgage for her house, and when they asked for her driver's license, she said i didn't have to give it the last time i got a mortgage. she didn't have to give her driver's license to get $507,000. she was a cocktail waitress. that was insane. >> this is what was going on. this is real life. when you came up with the idea for the book, did you see these guys as villains? >> it's a great question. i actually -- i'm not sure i saw them as villains. many some cases, in some cases dick is a villon, and some some cases he is a tragic person. not a tragic hero. >> he is either shockingly naive, not very intelligent, or he is willfully now pretending he is such. >> i think wall street, these people are professional traders. they always believe there's one last trade to be made. there's one more card that they can play, and i think that dick fuld felt he had one more card. did he know that he had taken on too much risk? i think he did. did he think it was going to be the end of him and our country and the global economy? no. >> let me ask you a hard question, because you're a top reporter for a top newspaper imersed in wall street and business. did you see what happened coming in any way? >> honest answer, i didn't. i didn't -- i don't want to say that i didn't see that we were going to have problems. i did. i wrote articles saying that there were going to be problems. did i think that we were going to be on the edge of -- did i think we were going to see a bank like lehman brothers go under, that aig was going to almost falter and we're going to be living in this 9%, 10% world of unemployment, and people were talking about 25% unemployment. that part is what i didn't get. >> one of the things that you're both hitting on -- i don't want to ruin the drama of the story, but i don't think people at large -- i didn't even -- i went to m.i.t., and i studied economics and so on, and i was as confused by this as i think all of us are. i don't think anybody realized -- this is one of the points of this movie and this book -- that we were living within a day away from a major international catastrophic economic meltdown. my mom always talked about what it was like to live during the depression. literally, people were virtually starving to death. you know, of course, the big wall street guys are jumping out of windows, unless they had not already put they are money away, much that they were going out to their summer homes. it's always the same cycle. you talk about being on the edge. i don't think anybody understands that war is terrible, disease is terrible, but economic depression can be the most single -- >> it impacts on everyone. >> everything. >> even contemporaneously, when i was reporting on this september 2008, it wasn't until i actually started working on the book and later as we were working on the film where i think i appreciated that it wasn't just bad, it was worse than bad. it was really -- >> i had an amazing conversation with the former british prime minister, gordon brown, who was prime minister at the time in britain when this all was kicking off. lie man brothers and so on was happening. he said he got a call at 5:00 in the morning. he was woken up by his chancellor, his treasurer, and he told if you do not commit $50 billion right now to the u.k. banking system, this is over. it's kind of a -- it was like economic apocalypse. >> literally. >> staring any the face. no british banks went under, which they continue to consider a great sug success. do you think professionally speaking now, that was a smart move to le