meriprise will settle $17.3 million to settle s.e.c.-related charges. that is cnbc.com news now. i'm matt nesto. good morning and welcome to "the call." we are lower by 46 points. really this weakness coming as a result of that weaker than expected consumer sentiment number. we are going to talk about that, plus in today's call to action, how do you make money off the dollar right now? larry. >> i'm larry kudlow. treasury secretary tim geithner is on capitol hill. he is testifying how to regulate otc derivatives. should we abolish them all together? heck no. we'll discuss it. melissa, you're up next. >> new reports about aig quietly seeking government approval to pay out millions of done yuses to their top executives. it's bonusgate round two. are they justified? we'll debate it in "the call of

the wild." this is "the call" on cnbc. hi, everybody. the dow and s&p opened lower. dow is off about 45 points as of a second ago. the s&p off slightly. the nasdaq is actually posting a small gain. i have a surprise for you. i want to breakthrough this. if you look at today's trade numbers. listen to me for a second. today's trade figures show with exports improving, we might have a positive gdp number in the second quarter. i don't think our network has covered that. >> you've been standing behind that for a while saying that is a possibility. >> is's not a real recovery. it's a more statistical recovery. the fact the trade thing came in positively, we actually could have a positive gdp. i just want to put that in the mix, trish. >> and that would be excellent.

i think we will see some revisions to gdp as a result of that trade defecit do you have a spin on the consumer sentiment number? >> i think it's a lousy number. i don't think the economy is doing very well. going back to the jobs report last thursday, i have turned rather a little more pessimistic on the near term. i don't like what i'm seeing. >> okay. realistically, the trade numbers today could set us up for a flat or even slightly higher gdp in q-2. >> they are saying weighing on the economy. as you point out and one happens to be the consumer sentiment number which came in today. certainly affecting the market, guys. we are off 58. it's not a huge loss, but what you are really seeing is risk aversion right now. you are seeing treasury yields move down considerably. basically a lot of money on the sidelines. at some point that money has to come in and the bulls argue when it does, get ready. that's going to be major upside.

here we are in the meantime drifting sideways, drifting down wards. i want to bring in bertha coombs. she is looking how this is affecting the retail stocks right now. >> they were mixed. they were moving higher ahead of the number. we were hoping we might surprise more to the outside, then they pulled back. abercrombie recovering after posting that miserable 30% staple-store decline in june. the interesting thing is, trish, we are in the middle of july. obviously the unemployment numbers weighing on people's minds. they don't buy in july really. they wait and start in august. does this mean they are not going to buy in august? that is what one analyst was saying. don't pay so much attention to every single number, not this one. it's back to school that counts in terms of people buying. >> you've got oil, which is down significantly today. that's lending a helping hand. also airlines, right? >> it could. part of the reason chevron.

everybody talks about the high oil prices being a good thing. not a good thing if you are down stream. the refiners get hit on that because of the track spread. their cost of refining goes up. they didn't give any numbers, but it's weighing on all the refiners. >> and we have a shot at the airlines, as well? >> american airlines is trading to the upside. american is going to report next week. expected to post a loss of about $1.20 a share, if i'm right. usa lower. >> gm pulling out of bankruptcy faster than a lot of people thought this was going to happen. what does it mean for ford? >> ford is trade together upside. it was an interesting thing. everybody said no way can they do it for 30 days. they're out. chrysler is out. this morning there was volatility as investors try to figure out what they were going to do. it may point to the beginning of a turnaround in the auto section. >> geithner testimony going on today on capitol hill. what is the traders' reaction to

this? >> one trader said the interesting thing is if this happened in february, it would have been horrible. today he sounded more aggressive. he was defending. he and barney frank said it's a good vehicle. >> bertha coombs, thank you so much. we head back now to melissa francis with more on geithner. >> thanks. tim geithner before a joint house panel defend his plan to raise otc derivatives market. >> the treasury secretary has taken the opportunity to defend the overall obama administration plan for regulatory reform. of course today's accent on over-the-counter derivatives proposed regulation with good reason. geithner testifying before two powerful house committees, financial services and agriculture, whose combined membership includes 111 law makers. the goal of regulating rivatives, says geithner, whether thugh clearing houses or higher capital and margin

requirements is eased oversigh >> served thi subcomttee on capital market >> firms wlnolonger be able to use derivatives make commitments with inadequate capita no dealer i these markets would escape oversi we willbrg the risk-reducing and financial stability promoting benefits of central clearing to these important markets. >> skeptics are already saga montgomery other things, the devil is in the details of whatever final version of regulatory reform is crafted by the administration and congress. and house republicans in particular are sounding the alarm about a plan that would include plied guarantees of government packing. >> i would le some assurance that the taxpayers are notoing to ultimately be the ones who assume that risk. >> now geithner also telling law makers progress is being made between treasury, the fcc and

cftc over who will have jurisdiction of what aspects of regulations. the hearing under way now. the question and answer session beginning. there was a long delay because of house floor votes. >> hampton pearson, thanks so much. for more on how torein in this market, is regulation enough or should otc derivatives be abolished? thanks to both of you for joining us. as i understand what has gone by this morning, they want central transparent clearing of derivatives, a standardization of them. they want to police any sort of custom contract you made. this all assumes that the overseer can understand everything going on, which is not an easy task, and can anticipate the arbitrage opportunities to sneak around the system. it's a great idea, but it

doesn't seem like it's possible to me, janet. does it seymour possible to you? >> no. nothing that tyroposed here is ly going toforestall some of theproblems we had before. credit derivatives were massively involved in transactions that did a lot more than french kiss frogs. wall street owes america right now. none of this is being addressed by the window dressing here. an exchange traded clearing is a great ychltd the problems we had were with the custom contracts. they don't have the resources to police this the way they say they are going to do. they are not going to do it. we are being mocked. >> joel, everything she says is right in the sense they are trying to get rid of the custom contracts and want to police us. i think they understand and are trying to address the problem. i worry it's not really possible and that's where the idea of abolishing them -- that's how that comes in, right, joel? >> first of all they shouldn't

abolish them. derivatives serve a useful purpose. we are overlooking the problem area assuming that's the only thing going on in the derivatives market. we shouldn't get rid of customized trades either. it takes us back to the fact derivatives are flexible management tools when used correctly. >> you are right. on the customizing thing, you are fighting the tape a little bit. they want better capital requirements, more transparency. i approve of that. >> standardization. >> both of those are okay. >> okay. both of those are okay. they want standardization, i think, so they can trade them on public exchanges like stocks and bonds and other assets. i think geithner is right. i don't know every detail. isn't he basically right because you said at the top, we don't want to apolish this. these are useful hedging devices for risk purposes. >> that's right. so i think we have to be careful not to just push everything into the standardized category.

again, derivatives when used properly are flexible tools. >> how do you do that? >> i wrote a couple of books on corrections derivative. >> let me ask a couple of questions and then you can hammer. i understand their point of view. they want their own operation to hedge their risks. fine. how do you trade those on public exchanges? how do you make sure they are properly capitalized, and how do you make sure the fraud component is reduced? >> we are with bei misled. rsof all, with a customized contract, we nd customized contracts. the probms we had with the customized contracts, they were not used to the benefit of customers and they were used basically to rip off the system. credit derivatives -- >> i don't know about that, janet.

>> the transactions more than french kissed fraud. it makes the kama sutra look like it was written by amateurs. i documented that to mr. buffett. >> the point is, if you transfer risk where there is transparency in reporting so the market regulations know position and we have appropriate capital reserve requirements -- >> we don't have the capital reserves to do it. it is packed with lawyers without the expertise to go after this. regular ugs is not going to be there. >> your position to apolish this? >> no, no. >> if you go down that road and it's all going to move offshore and it will another body blow to the american financial system. >> that's right. we have to start somewhere.

>> you have to severely limit it and go after the bad guys. >> that's what they are going to do. >> they are not addressing that at all in these hearings. it seems it's all being swept under the rug. >> i wouldn't go that far. >> there is nothing to prevent this from happening again. >> i think part of the issue is there was not enough transparency. what we are trying to do now -- >> no, there wasn't. >> we need more transparency. you have to start somewhere. >> you have to start somewhere. they don't have the resources to police this. >> well, all right. janet, i've got to tell you, you are sort of sounding like the good is the enemy, the perfect or something. you have to start someplace on this. >> i don't disagree with that. >> i'm against fiscal nymphomania, but i'm not against french kissing as long as it's done by consenting adults. >> what is your position here?

>> you are not coming up with anything constructive. what's your bottom line? you want them or you not want them? >> i do want them. >> yeah, so? >> it has to be curtailed in a way that is a lot more comprehensive than that what geithner is proposing. >> write a letter to your congressman. >> we have rick santelli stand buying with a comment on this whole conversation. i have no doubt he is fired up. >> no. many years ago on this floor, regulated exchange, they used to have a product called flex options. they were customized derivatives, but they were still put forth on an exchange venue. here's the key. it's not bilateral. neither party to this customized derivatives is involved in the clearing of the pricing. the exchange takes that and you get your fluid margining which is key. so there is a way, of course to have the best of both worlds. granted, you are limited on how much customization, but there is

a lot. this has not been brought up. it was a successful product. >> why did it go away then? >> it went away because business went to the unregulated over-the-counter market. >> then we can go back and pursue this earlier process which i take worked? >> we may have solved the problem. >> this is good. >> it's very good. the customization part, and you hit on it. that's the weak link. >> it's doable. >> here is how you fix it. >> finh your thout. >> you ve to elimite the fraud. that's what i talked about. once you eliminate the fraud, the problem isn't the derivatives, it's the underlying fraud. >> janet, eliminating fraud is a very worthwhile goal. it's like motherhood. we all want eliminate fraud.

the question is let's not throw the baby out with the bath water. >> i agree. larry, i wrote two books on derivatives. >> great. thanks for joining us, guys. rick, thanks for solving our problems. >> oh, my goodness. >> i did my best, trish. >> i know. then rick had to get in, right? here we are 15 after the hour. coming up, global economic stimulus has water stocks on the rise. we'll tell you how to tap in -- do you like that for a play on words? as more government money is doled out. >> first up, congratulations, general motors, i guess. the bailed automaker emerges from bankruptcy. talking about the new gm. those details are straight ahead here on "the call." fithe same tools the pros e,

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welcome back, everyone. gm emerges from bankruptcy. ceo fritz henderson says the new company will repay government loans much sooner than expected. how will the recharged automaker pull this one off? we want to ask phil lebeau who just spoke with gm's chairman ed whitaker to get some answers.

phil, how are they going to do this? >> they say it's a different gm. a new day here. business as usual no longer around here. the company is leaner. take a look at the new gm. 35% of the u.s. executives, they are going to be leaving this company over the next couple of weeks as they strip out several layers of management. essentially you have a company they say is going to be focused on three things. customers, cars and culture. a lot of skeptics out there and fritz henderson knows they have to win over people who don't believe gm can change. >> we have to prove ourselves. have to see what we do and then see what results we have. that's how we'll prove ourselves. your point is you can't teach an old dog new tricks is true. einstein's definition of insanity, doing the same thing over and over again expecting a different result. we know we can change. >> and there's a lot of change on what it at general motors

including this man bob lutz. he will not be retiring. he'll take over marketing. his job is to change customer perception. interesting person to put in charge of that given the fact he can be considered a lightning rod in many regard. the new chairman ed whitaker believes the people at gm right now are the ones who can turn around the country. >> this is a company with great people. it has great technology, it has great products. it may have lost its way a little bit, but all the raw materials are here for this deal. not only american success, but worldwide success. you just have to be around a little while and you can sense that. >> by the way, ed whitacre jr has three gm vehicles. at 4:00 today, bob lutz, vice chairman and in charge of changing perception at gm, we'll ask point-blank if he is the man to change people's perception.

at "power lunch" an interview with fritz henderson. it's one thing to clean up the balance sheets and bankruptcy, but to convince americans to give general motors a second chance. >> do you know what those current market cap on the new gm happens to be, by any chance? >> i don't. in part because they're still trying to figure out a lot of things out. they are not going to be cash flow positive, at least until the first quarter of next year. not even thinking about an ipo until the middle of next year. even though you have a company that is out of bankruptcy, it's hard to say, okay, definitively this is what your market cap is going to be. >> stay with us. we have more questions for you. i want to brink in john loconowitz. thank you for joining us. let me throw this at you. in other words, this is a company that surprisingly, i think a lot of people didn't think this would actually happen

as soon as it did. did manage to get itself out of bankruptcy, certainly with a lot of help from the government. what does this mean in terms of the spin-off they are talking about some time next year? what does it mean in termsf taxpayers getting their mon back? are we gng to see th happen the same kind of time table? >> i think there is a good chance taxpayers will get tir money ck. has a very strong produ line day. ey have even stronger product on the way. to me the most exciting news today was that bob is back and that responsibilities are expanded. you lked about the perception issue. that is the biggest problem faci gm. at least f my money, bob is good night to hdle it. >> john, wt ishe timeline here? when are taxpayers going to get their money ba and whens this company going to come back from under the vernment's thumb and become a public company once again? >> i think thepublic company part could occur as soon as six

months. it would be probably quite foolhardy for the government to sell its shares in six months. the gaap value wouldn't be there. i believe the canadian government suggested it could take as long as eight years. that may very well be the case in order to get the cap value sufficiently high. >> eight years. >> everybody gets fully paid. yep, eight years. >> i want to go to phil lebeau. i think there may be a perception problem, but there is also a car problem. let's cut to the chase. they are going to have to sell a lot of little green cars to meet these cap a fuel standards. >> no. >> yes, they are. ford has the fusion, okay? ford has the fusion. chrysler has the fiat. they both have a good following. what is gm going to sell? the chevy is not cutting it. the cobalt is not cutting it. in order to sell the mid-size and suvs, they have to sell

small cars. who is attacking that issue? >> first of all, you are wrong they don't have cars people don't want to buy. the malibu is selling. >> hang on, hang on. >> they have cars that are selling. do they have small cars? not as many as they should. don't be hanging your hat on fiat yet. we don't see any fiats coming here for a while. before you hold them off as the gold standard, they've got a way to go. >> ford has a problem with the fusion. >> nobody is arguing that. >> you are saying gm will not meet its criteria? the cruise is not going to do well? you are selling the cruise off as being a failure before it launches. the bottom line is this, to me cap a standards, general motors has to approve fuel efficiency across the lineup. they said that's one of the top priorities here it's not just themall cars. keep in mind, when you lo at

subcompactsales,th are about .5% overall ses in this country. >> you are underestimating this significance of these new regulations. that's the point i am making. son has got to address this in order for them to sell the more profitable mid size and suv. >> does larry have a point? >> no, he doesn't. i'm wh phil on this one. this company is going to survi er the next few years selling americans the kind of cars they've always bought from gm. they are going to t significany better fuel economy through power train technology provement. they know how to do it. it's already oe books. it's gngo happen. >>kay. >> when we get beyond 2016nd neregs are out, the small car could become very importt. not until then. >> all right. we a going to leave it there. thanks so much, guys.

we appreciate it as always. up next, as the economic stimulus money flows into our nation's infrastructure, one commodity is beating out the benchmark. we are going to have fun with this one. jx h to pl the water sector. how. oo

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the iea's monthly oil report saying it is going to contract equities down 2.3%, below $60 a barrel. >> on its way to $20. >> not on its way to $20. >> opec's representative here. i love her. investing in water infrastructure has become a key response to financial crisis but government stimulus cash flowing, water stocks are getting a boost. so where in water should you invest now? let's ask deborah coy, janna montgomery scott and michael gogler.

deb remarks first of all, what are you buying? if you buy one of these, what is it exactly that you are buying? >> well, stimulus isn't the only story. stimulus, unfortunately, is not as stimulating so far as we would like. it's helping. we are getting money out of the federal government here and they are spending money in china and elsewhere around the world. the bottom line is that water is becoming more scarce. people are willing to pay more for it. to us that means water utilities should do well. they'll continue to get rate increases and companies that are helping with the infrastructure should help, as well. >> i'm confused about the stimulus money going to water. >> lots of people are. >> why was the water industry, there are a lot of jobs to be created. do water people build roads and i don't know it? is it bridges over water? i'm very confused. why would they get stimulus money? >> the infrastructure in the u.s., the pipe, the hydrants, is

very old. epa estimated north of $250 billion needs to be spent. any time you are replacing water mains, you are digging up streets. there's a lot of cost involved in that process that is labor. in some cases, 70% of the cost to replace a water main is the labor. if you were spending money on water main replacement, you are in effect creating jobs or keeping people employed. >> i think i need stimulus money. this is my other quick question. why are we talking about peak water here? water comes from the sky. it's not a finite resource. it's not like oil waiting for dinosaurs to die so we can have more oil. why are we talking about peak water? >> water is renewable. >> yes. and the difference is getting the water where you want it and the quality you want it. that's the issue. there is plenty of water out there. look at the oceans. the world is 90% of the water is out there, but it's not available where we want it and in the quantity we want it.

>> debra, to clarify this and get how to make money in in thing. in a sense these are private markets and private pricing decisions. if the government would keep its paws off and let the markets run that, would probably be a good thing, right? >> that would be a good thing. >> in terms of how to -- >> not true though, unfortunately. >> what about the companies bundled up in the index fund? would it work? is this a realistic asset to own? >> we certainly looked at the etfs. power shares, water efrnl tf, if you look at the top ten stocks in that etf, a lot of the companies have only a fairly small percent of their business in water. trying to invest in water stocks really puts you into -- because it is a government-dominated industry, puts you into smaller companies, utilities, pipes, repair companies, engineering companies, pipes and valves like michael mentioned. you kind of, i think, to benefit

you have to pick your stocks. the etfs are one way to play. they are not exactly a pure play. >> michael, do you have a favorite? >> we like american water works right now. it trades at a discount to its peer group in the u.s. utility space. they are going to benefit from increased rates. we like that one. pretty much best within our utility group. >> we've got to leave it there. thanks for joining us. it wouldn't be a g-8 meeting without some attack on the dollar, right? we'll try to play how to play the greenback next. >> round two of aig bonusgate. seeking to pay out millions of bonuses. are they justified? u have questions. whcan gi you the financial advice youeed? where will youind the stability and resours to kp u ahead of this rapidlevolving world? these are tough questions.

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i want to give you a quick check on the market. 70 points on the dow. a lot contributed to the weak consumer sentiment number that came in and reluctance in the market right now as people are gearing up for really the second quarter earnings season, which is under way. meantime the dollar's reign is being scrutinized at the g-8 summit calling for a more diverse currency system. where is the dollar heading and

how should you be positioning your portfolio right now? wonderful to see both of you on this friday. >> thanks, trish. >> paul, i'll kick it off with you. you don't seem to be so positiv overall on the dollar right now. >> no, i'm very positive on the dollar. >> forgive me i must have had peter and you confused. peter is that you? >> yes, that's me. >> forgive me. you say this is a dollar that's a big problem we are going to continue seeing weakness. why is that? is a lot related to the debt levels we are taking on? >> as long as policy makers have this idea whether it's monetary policy makers, fiscal policy makers in washington, they have to constantly do something to fix the economy, that means printing more money, borrowing more money and spending more money. at the scale they are doing this, it's constant daily debasement of the u.s. dollar. the dollar has been in a down wards trend since the late '60s

and only 11% decline in dollar index from an all-time record low. investors have to protect themselves in this environment over the next few years. >> paul, i want to get over to you now. of course you are the opposite on this one. peter just outlined very good reasons. there's a lot of concern that the u.s. government is not doing enough to really prop up the u.s. dollar and keep it strong. you don't think so. you think it's going to continu seeing or start to see upside? >> first of all, yes. the dollar saw, i don't want to say generational low, but major low in march '08. i think that low is going to hold many years to come. we all know the government is printing money. we have an academic problem. if that's the case and the market looks forward, why hasn't the dollar been absolutely decimated? i think it's because deflation remains a problem. we vaporize tens of trillions of dollars in credit, and the feds around the world have only

replaced it -- i tell you only like it's so easy, but it's only down about $10 trillion. we are still not close to equalibrium. >> the reason we haven't seen a total decimation is, yes, people still think the u.s. when it comes down to it is the best place to be. that said, this is a dollar that's still struggling. why do you think we are going to suddenly see an upturn? >> take the termediate term picture. i don't think the dollar is struggling so much. i think it had a normal, healthy and expected pullback. if you asked me where is the dollar headed in the next month? sharply higher. i think the dollar index, if we are lucky enough to get one more pullback, it's a pullback you buy to have the move of all moves. >> paul may be right. peter, i've got to challenge you. with a lot of bad policies coming out of washington, one would think the dollar would fall. here is the key point. take a look at the money statistics. i've got new numbers out last

night from the fed. the fed has stopped printing new dollars for six months. it probably doesn't show it. six months. they have stopped printing new dollars. that has had a phenomenal effect because this stock market correction with gold and energy and commodities and industrials is a deflationary correction. the fed is changing its policy without announcing it. somebody's got to put that on the table. >> do we still have peter and paul with us? i want to know exactly what do i do as an investor given each of these scenarios. peter, what do you buy? how do you really maximize strength as you believe it's going to be or rather weakness -- i'm getting peter and paul mixed up here today. weakness in the u.s. dollar? >> let's look at gold. we had this massive deflationary debt crash. we had the worst economy since the 1930s, and gold is 100 bucks from its all-time record high. that is sending a message.

>> it hasn't moved in three years. >> it's probably one of the best performing assets since the highs of september. >> it hasn't moved in three years. >> oil is at $60. remember the world we used to live in when oil went from $20 to $30 and went to $40 because we had a war? it's now at $60. corn is 60% above its long-term trend. inflation is there. it's a process, not an event. just because it's not raining doesn't mean the clouds aren't coming. >> paul, real quick over to you, how do you play it? >> very easy. currency shares. you can short the euro sxe. they have bullish and bearish funds to play and parish shares have funds to play, as well. bullish and bearish dollar positions. people should not play currency few tears here. play the eps or mutual funds. much easier. >> good ideas from both of you.

peter and paul, my apologys. >> and where's mary? >> i know. have a great weekend. >> you, too. >> up next in our "call of the wild," spotlight for poster child of the bailout. >> the fed has not printed money in a good six months. that's an important market point. >> steady, steady. >> not moved since the end of last year. embattled insurer aig is seeking uncle sam's blessing to pay yet another round of retention bonuses despite receiving tens of billions in federal aid. taking i rightful place

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it's round two of aig bonusgate. they are looking for government approval to handing out bonuses at aig. are they justified?

john singer. thanks for join us. john, let me start with you. they've got guys working trying to unwind these trades, trying to get a lot of criticism from friends, anyone. ldn't they just increase their salaries, say we'll give you a milln bucks to unwind these trades? >> we are talkabout folks here who signed contracts wh aig prior d after the government bailoutto forego other employnt opportunities to stay on with the compan they are bound to these folks. the second bonuses are controversial. these are for folks who did well. if we don't pay people who did well in this year and last year, they are going to go elsewhere and then aig is going to do worse than it's done now you are

hurting shareholder value in the long run. >> don't we need someone to unwind this mess? it's not an easy job. >> it's not an easy job, but incredible we are having this discussion. you have a company that not only melted down itself, but almost melted down the worldwide economy. the share price goes from $70 to a buck a share. we are debating whether they deserve bonuses? >> it's not a matter of deserving, andrew. if you look at the retention bonuses, these folks signed contracts. that is a rule of law. contract law in this country prevails. it's not talking about discretionary bonuses here. folks signed contracts. you can't just undo the contract. >> the contracts are broken every single day. let these executives go into court in this sort of economy with a blue collar juror and try to convince them they are entitled to a multimillion

bonus. >> contract law existed in this country since its formation. it's always going to prevail. if you didn't have it, really our system would flounder completely. >> can i ask in between this? i support contract law, obviously. it's crucial to premarket capitalism. i think andrew makes very good points. there is a part of me which is so furious at this aig story, i've got to tell you. question, isn't it up to aig and the treasury to show the american taxpayers, the blue collar folks you are talking about where this is going? this thing comes out every few months and we go nuts over it and we are probably going to go nuts over it again in washington and at tea parties around the country. is where the endgame. >> why are they writing new business? >> how do we get aig off the taxpayer dole? where is this bloody story leading. >> that is a better point. >> it's true late. the spigot is on. no one is willing to turn it off. aig got this initial massive sum of taxpayer money and now it's a

black hole. we can't turn this spigot off. in addition to that, we don't know exactly where this money is going and it's a problem and it's taxpayer money. >> john, apart from the contract law issue, which i basically agree, okay? the fact of the matter is there has to be some transparent plan to say to american taxpayers here is where we are going. here is how we are going to do it. your last thought? >> i think aig in this case is doing the right thing versus what they did in march. they are actually going in this case to feinberg the compensation czar who is allowed to look at the comp of the top 100 people of the seven companies that got the largest amount of government aid. they are cooperating the government into the process. they are not doing what they did in march which sparked massive public outcry. >> obviously we can't solve the problem of why they are not winding down. they are still out there competing and writing new business. thanks for joining us today. at the top of the hour, bill

griffith to tell us what he's got. >> with gm out of bankruptcy, phil lebeau talks to the ceo about their direction here. the president on his way to ghana. we are looking for smart investment plays in afca right now. you are going to love this, larry, there is a movement afoot to maybe ban smoking in the military. we have both sides of that story coming up, as well. we'll see you at the top of the hour in "power lunch." >> i guess that means larry is not joining the military any time soon. >> not any time soon. >> jane wells, who is on the list of nominees this week? >> trish, on the day gm emerges from bankruptcy, wait until you see who is promoting a california auto body shop. is china getting cold feet over chicken? d#: 1-800-345-2550 "i'm rethinking everything.

tdd#: 1-800-345-25 includt toook after my money." d#: 1-800-345-2550 tdd#: 1-800-345-2550 "the dust might be settlin.. tdd#: 1-800-5-50 tdd#1-800-345-2550 "i guess i'm just done with ing noing, you know?" tdd#: 1-800-345-25 tdd#: 800-345-2550 "oh, i'm nhinking about movingy ney. tdd#: 1-80345-2550 i am moving it."

welcome back. just when you think things couldn't get any lower, what do you know? we've got new nominees for "the call of shame." jane wells in los angeles with this week's list. >> trish, sort of an eclectic international call that covers sports, tech and commodities. none pretty. nominee number one, aig. the insurance giant you bailed out reportedly wants to hand out millions more in bonuses while a

jury ruled they were wrong going after $4 billion in stock hank greenberg took when he left. next -- >> this case is about bank fraud. >> bed of nails. lee dykstra says he was duped by a mortgage fraud at wamu who was nailed with chapter 11 with the foreclosure on his mansion. >>. ♪ for you and for me >> off the wall. the michael jackson memorial cost a broke los angeles millions including $50,000 allegedly spent on box lunches for police from a restaurant 35 miles away. they could have gotten the dollar menu at mcdonald's like the rest of us. most ridiculous exploitation? selling his image on a piece of toast on ebay for $20. kfc faces another lawsuit over looking like a bird without a head in the oprah give away.

game two, china, now considering a ban on the one part of chicken we don't eat, american chicken feet. it is all part of a bird brave trade war. here is my personal favorite. >> i buy it all at toyota. >> what is up with this? apple go found er at a body sho. >> futures market is a total farce. >> not cramer but snake oil market. pressure going to limit the ability of driving oil prices out of whack. it is a recipe for bad gas. vote on the blog. currently the winner is aig. >> my head is spinning.

thanks so much. we'll be right back with "last call" on otc derives. ♪ on this endless ocean ♪ finly lovers know no shame ♪ ♪ watching in slow moti ♪ as you turn tme and say ♪ take my breath away (annncer)ge locomotive. customers love them almost as much as ♪ my love g them. (announc) innovation today for america's tomorrow.

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it's time for "the last call." i think we are going to look at fed auditing. >> yeah. check out that news alert. u.s. law makers. >> asking president obama for an investigation of the fed? >> i think this is sponsored by ron paul. >> he got punked by bruno. >> here we go. it's getting political, right? >> i don't think the fed has done a great job in the last ten years. maybe they ought to be audited. >> they don't want the fed to have any authority. that's it for "the call." >> i like the fed, too. >> it's another government agency. >> thanks for watching, everyone. have a terrific weekend. i'm trish reagan. >> i'm larry kudlow. see you at 7:00 p.m. "power lunch" is up next!