princeton. t t tenyear, as in the ten-year and yellen. >> thanks so much. we'll see you tomorrow. sue? >> "street signs" begins now. see you, ty. on monday the world was ending. three days later, we have the best three-day run for stocks. bill gross here to help you navigate, and also what lessons he learned by nearly sinking his naval ship 40 years ago. forget mad men. the original mad man, jim cramer is here. he's going to preview tonight's big "mad money." plus, are there too many people going to college? i say yes, many of you say no. plus, we're going to have more

on the breaking news of jon corzine being sued by the cbc. in the meantime we've got another triple digit move on the dow. in fact, the dow is now on track, brian, for its first three-day winning streak since april 30. bertha combs on the gold story. josh, it's looking pretty good so far. the question, of course, is always sustainability, right? >> that's right. mandy, listen, you knew you were going to get a lot of fed speak today and that could very well shape today's session. dudley, powell, lockhart, they emphasized accommodation. no rate hike on the way. you've seen the blue chips of double digits. look at the vicks, those financials, the best three-day

gain here since the start of the year. wells fargo, jp, just some of the names on the radar. pending home sales. you can see all higher in today's trade. guys, back to you. >> thanks so much for that, josh. you know over the past 12 sessions we've dropped about 12 points or more. where are those gold bugs now, bertha? >> they are off to the sidelines. it's clear the sellers here are very much in control. a lot of traders say the big movement here is to the short side, and right now it looks like gold is defending that $1200 mark. it's not a technical support of any kind. we crashed through yesterday's low, and now we're defending $1200 here, and a lot of traders say the next real mark here is around 1150, 1155, so there's a lot of room for down side here. gold dragging down silver right

along with it. both of them here looking to put in a record quarterly decline in precious metals. >> thank you very much, bertha coombs. homes under contract last month hit its highest level in six years, as josh just mentioned. but now it's jumped by the most in 26 years. these are huge headlines. they seem to be conflicting. are they? >> well, no, look, they're huge numbers, no question about it, brian. but it's all about rising mortgage rates, rates that threaten to rule the housing recovery. take a look. the average rate on the 30-year fixed contract jumped from 44.6%, that according to freddie mac. that's the highest since 2011 and the biggest weekly jump since the spring of 1997, but we're told those rates are already higher. rising rates that started in may are behind the spike in signed

contracts to buy existing homes. up an existing 6.7% month to month, they say buyers on the fence were scared into signing. others, though, on the twitter feed, are saying that isn't it. they say it's the jump in homes for sale with new listings and the fear of rising prices. of course, rising rates will hit those rising prices. >> this really is a momentum in terms of home price appreciation. the idea we will be able to return to home prices in the 2006 level is a bit absurd when everybody says 2006 were bubble prices. >> rising rates are also a risk to homebuilder backlogs. 36% of signed contracts in may were to buy homes that weren't built yet, so people couldn't lock in their mortgage rates. they may be in for some sticker shock when they get to closing. >> the challenge for a loan lock for a home that's under construction is you never know

when they're going to have their closing dates. a lock for two months is two and a half points and a lock for three months is a half point. so people kind of wonder if they want to invest in that loan lock. >> because those locks, as you can see, are expensive. loan analysts are watching this all very closely and some do expect cancellations to rise. >> thank you very much for that, diana. we have breaking news. the gold price has now dropped below 1200. we were below it just a moment ago, and indeed, that is the first time we have seen that break since 2010. so far, guys, this year, brian, we have dropped by 28% for gold which is clearly in bear market territory. i was on "closing bell" just yesterday and i asked several people would they buy gold at this level. there was only one who said he would.

but a regular on cnbc says he believes gold is a broken trade. very interesting to see where we go from here now that we've broken that psychological and technical record on gold. >> i was negative starting four years ago. i was about four years too early. >> you're a go against the herd kind of guy. >> or run with the herd. for the last 20 months, bond funds have posted inflows. since june 1st, we have seen an outflow of bonds totaling nearly $62 billion earlier this week. that trounces the record from 2008. rick santelli, what do you make of this? >> i think it should be no surprise. people have been calling for it for three years. but i think one thing we ought to think about a little more closely is that interest rates, indeed, followed the outflows up. that makes sense. but exactly how far down will

they regroup? we've seen some big bond kings just today say the big selloff adjustment is over. that may be true. but the real key to traders is w where will the new rate come to rest and where will the trading of yields be established? that is key. remember, we've had two legs of rising rates. the first was on may 1st following a fed meeting, and a couple days later, the big positive adjustments to the employment and the jobs. the second wave was just last week on the wednesday of the fed meeting where we gained another 35 basis points. many think it's going to stay closer to 250 than many believe. >> all right, rick santelli. meantime, bill gross says don't bail on bonds yet. he's here with us now. bill, do you think this so-called liquidation trade that people are referring to the last week or two we're seeing is over? is it done? >> yeah, we think so, brian.

we never can be sure because liquidation is a function of fear and fear can take hold of markets at various points in time. that certainly happened in terms of the bond market. but in terms of value, 2.50 on a ten-year certainly a value to us. based on the interpretations by fed officials in the last few hours, the last few days, the last week or so walking back that bernanke press conference, i would suggest there is lots of value on the front end of treasury curves, and therefore an attractive value in ten-year values at 2.50. we think 2.20 is the new normal on trend recoveries as opposed to 2.50. >> you joined us last wednesday, that was fed day, and when i asked you where you thought the ten-year would end the day, you said 2% or lower. are you sticking with that given the moves we've seen over the last week?

>> right now we're a 1.5% economy, 1% inflation. we have nominal gdp of 3%. to think that the fed can basically tighten in terms of reducing their purchases and, therefore, produce a new higher range than 2% or 2.5% for ten-year treasuries to me and to us is very questionable in terms of what they're actually doing. there is no rationale for it. inflation is 1%, they need to get it back to 2%. come on, fed, let's keep on going in the direction you've been going. >> when do you believe the tapering is delayed to, then, bill? >> certainly in late 2013 at the earliest. and will we be dependent on next friday's number in terms of unemployment and the participation rate and all the technicals that go with it? certainly. that's part of the problem. what the fed has done is induce a lot of volatility, not just on employment fridays but a lot of

volatility day to day in terms of the numbers until markets move back and forth. a ten-year treasury, which is subject to nine years' duration and to price risk basically has to adjust to that. what the fed is trying to do in terms of reducing that volatility and reducing that term premium, in one quick press conference and one quick statement, they've basically eliminated all of their progress. >> it sounds like ben bernanke's early 20 seamen rocking back and forth on the seas, trying to figure out how to calm the boat instead of sinking the darn thing. you said you almost sank the ship by not knowing what to do. >> i did. >> what lesson is that teaching you about managing these kind of markets? >> several, and you notice my unease here in terms of sitting up straight. i wrote that in my investment.

i was an ensign off of vietnam. we had a typhoon. i was in charge of the ballast and didn't really know what a ballast was until the ship almost went down and we tipped over. what does that tell me in terms of the financial markets 30 years later? that tells me that the financial markets need ballast and they can't be topheavy. what we've seen in the past month and a half is a topheavy market in terms of expectations for growth which the fed hasn't validated. so, yes, let's run a portfolio, let's run an economy, let's run a federal reserve that's not top-heavy but that's ballasted so it can survive a storm. >> talking of a storm and a rocking boat, if you don't mind me saying your total return fund lo lost. what do you say to those who are sticking in it? >> when i told them of the investment outlook and what

mohammad has told them via telephone, what i would tell them again and again from this point forward, it's not time to jump the ship, and that doesn't mean we want to keep our customers on board in terms of being captive, but there is value at this point. if you were going to jump the ship, it should have been six weeks ago, basically, when pimco suggested that a bear market was beginning but that bonds would return 2 to 3% for the next five or ten years. i think investors should expect that, but they shouldn't jump ship in anticipation of a may and a june typhoon. >> bill gross, always a pleasure, and thank you for the personal anecdote. don't worry, it's just between you and mandy. nobody else heard it. >> and possibly your mother. the mad man is raising the flag. he's telling you why you should invest right here in america.

with 1.2 trillion students in debt already out there, is it time to stop sending so many kids to college? it's a controversial debate. we're going to have it, coming up. dropping below the 12 million market. 1,198 a 12-ounce. the gold down 31 this year alone. to pursue all her goals. when you want a financial advisor who sees the whole picture, turn to us. wells fargo advisors. ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track.

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starbuck's, macy's and ford all iconic american brands. what do they all have in common? the patriotic mad man is here with what we can expect. it's going to be a great line-up. >> these guys are the pinnacle. i mean, this is what you aspire to be if you want to go into business. you want to be one of these three gentlemen. you also have the polls. autos have been the backbone of recovery. macy's, consumer spend, really important. starbuck's may be our greatest export. i think the starbuck's rivals. >> i just finished a book literally yesterday called "the power of habit" by charles dohig. excellent book, highly recommend it. they highlight schultz. those three guys all have something in common. they took a company that was, i don't want to say in trouble,

but they fixed it. >> stress. >> changed the culture. schultz left, remember, he comes back, they come back. these guys literally -- macy's struck federated. who cares? >> what he basically did was make it so there is an iconic chain, not just a store, that's in herald square. what's incredible about what he's done, by the way, they keep reinventing. they're doing it by macy's, and there's a trending chair where if you can't get something, they'll go to the store and send it to you rather than saying, hey, it's out on the website. these are remarkable reinvent n reinventions and i think they're based on renovation. >> i don't want to steal the

floor. >> i got jazzed on this. what my team does -- you'll love this -- they don't tell me. they say, we're getting close, we're getting close. they know it's a kid in a candy store when you have numbers like this. >> do you have like a common burning question you're going to ask each of them? >> common burning question is, you're making money. if you're making money for your employees, does that necessarily produce the best results? all three of these people are known for sharing the wealth with their employees. >> and i applaud that, right? >> i have two questions. >> sure, fire away. i asked on twitter for questions. >> number one, starbuck's. coffee futures are what, 30-year lows? >> and they raised to 5% yesterday. >> and number two, mulally making a huge bet on fuel economy, the hybrids.

is that the way to go? >> he claims the small car numbers gained a full point. he attributes that to the small cars which they're making money on. i did the homework, what can i tell you. >> can a focus cupholder hold a venti latte. >> no, because it holds what's known as the cramer. >> i bet you anything people are still going to go. they're going to raise prices and people are still going to go. >> because it's a habit. >> it's the hutzpah or whatever you want to call it. >> the what? >> hutzpah. >> i like the gold coins. i don't like the ged because i think stocks are horrendous. i do think gold will retain its value. this move is so breathtaking, you have to believe there is a

major liquidation. you don't know when liquidations end. i don't want to get in front of this union pacific freight train going 148 miles an hour. jeff talked about apple a couple months ago and he said there were no more buyers, that's the problem. do you believe everyone who owned gold did, and when the bottom fell out there was nothing left? >> i love the gold market, but china and india are the marginal buyers. i have no idea what's going on in china, but it ain't good. they basically shut down the trading in india. >> normally you would see china and india the world's largest buyer of gold, you would normally see them coming in as the gold price drops. but it's not happening. >> all those buyers seem to be sated, and the financial buyers clearly never had the fire power we thought they had. it's just a very hard number. this is the end of the quarter, too. you want to show that you own

gold. that shows they own gold, apple and coal. >> what you said this morning set me back on my heels in a good way. you noted, i think it was to carl and david, you said, no fund owner wants to show they own apple at the end of the quarter. which is shocking, because at the end of the first quarter, if you did own apple, you're a dunce. in three months! >> it's remarkable the way the market is so fickle like that. >> we got hate twitter if we ever said anything bad against apple as it was running to 700 a share. >> someone somewhere quoted me as saying i want to buy a blackberry right here. you idiot, you fool. of course, i said i wanted to buy it at 12. but twitter takes on a life of its own. >> indeed, it does. we have to leave it there because you have to go rest up because you have a massive show

tonight. "mad money" on cnbc, 6:00 p.m. and 11:00 p.m. thanks, jim. as you just heard, gold dropped to 1200 for the first time in 12 years. meltdown, or are they simply delusional? we'll have that coming up.

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1200 for the first time today, but you know what, the gold bugs are not going to be deterred. here's why they think the gold rush is not over. really, jane? really? >> hey, mandy, i know, it's getting busy at california gold investments. one bought silver, a woman after that buying gold. this is just out from rbc wealth management. they say there is so much negativity in gold investment that next week it might be worth a second look. gold moved past like an escalator and recently came down like an elevator. there have been more people buying and selling today as the

price hit a three-year low. it's its own market. there are some who think inflation is going to hit us big time once the fed stops buying so much of its own money. they want more physical gold, not less, and they are buying to panicked sellers. >> i'm still an ultimate bull in the market. i think currencies are a problem and we have a problem with our overall budgets and currency debacle, and i think currencies are going to continue to decline in price. i wouldn't be surprised to see gold make new highs in the next 12 months. >> really? really? >> yeah. >> well, he's in the minority according to a survey by jp morgan. only 40% think gold will be on the rise, a year ago it was 70%. it did go up to 1800 and didn't stay there. you've heard of the red

pandas. here are gold pandas from china. a 1 kilo koala, i'm told it's the cheapest in town. >> i'll take one of those. give me three. we continue to watch the price of gold as we stay fully below the 1200 mark for the first time in two years. coming up next, though, the nfl's big crisis and the fact that greed does not always pay. [ kitt ] you know what's impressive?

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welcome back to "street signs." i'm kate kelly with more breaking news on the ctc lawsuit of mf global, as well as jon corzine and edith o'brien. in a four-count suit, the tfc counts these amenities with misuse of company funds, failure to supervise, reporting to the tfc in a false and misleading way, among other things. the damages sought is a future ban on commodities, futures, related options or other related

transactions on corzine or o'brien, which would put a stop to corzine's future in the industry if they prevail. this suit paints a very damning picture of both o'brien and corzine as reckless in terms of managing the fund's money and particularly in isolating customers' money. almost $1 billion of customer funds went missing during october of 2011 as the firm sought to handle some losses they had taken on proprietary trades that corzine had done, guys. it's a very tough suit. we'll be hearing more about it any minute now as the cftc puts a start to the press conference acknowledging these details that are in here. >> thanks very much, kate. any minute now we'll be talking with them. has jon corzine any chance at all of settling this? >> of course, mandy, there is always that chance. and one curious report that came

out in the last week suggested that corzine had not been given a chance to settle with the cftc. that's not clear. what is clear is the cftc has taken a very tough stance on him, and hathey're getting toug on folks who abuse customer money. i'm sure there will be a chance to settle before the jury finds a result, so we'll see how it plays out. of course, corzine is someone who has very sophisticated defense lawyers. we expect to be hearing a statement from them shortly as to how they're going to handle this. >> kate, thank you very much. meantime, continuing breaking news that we've been following since the beginning of the program, really since the beginning of the month of june. gold's continued drop is now back below $1200 an ounce. let's bring in frank mcgee of

alliance international. somebody says, yeah, they've been wronged. is there a bottom? >> that's really the problem. you've had a lot of people attempting to hit and pick bottoms. it's sort of like catching a falling knife. the real risk that you have when people go out and say, well, we're going to this price, we're going to that price is what happens when you get there and the sentiment still looks as negative as the sentiment does. you're seeing it with your own interviews where you're getting 90% bearish. i think we still have 100 to $150 to go. >> how do you see them changing the sentiment to positive? >> i think we have to get below some long-term season cost of production, see some minds coming off the production cycle and start cutting back to that area. i would love to see the market probably around 1,000, 1,050 area to start moving sideways.

you've got what i would call really weak long-term support trying to hold this. there are still some liquidations going on. until those get clear in the market and all this metal comes to rest, we're going to have a tough time rallying. >> you said you saw $150 a downside? >> i've been saying close to 11,000, 11,050 for the past few months now. >> down 20% so far this year. still ahead, student loan rates are set to soar. is now the time to just say no to college? and the latest on the aaron hernandez murder charge. a big shock to professional sports, especially the nfl. i guarantee the closing bell will be good. why?

a, because bill is there, but they've got hank paulson. el be an -- he will be an exclue guest at 4:30 p.m. >> stay tuned. ♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. hurry, before this opportunity cools off. it's easy to follow the progress you're making toward all your financial goals.

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this is nfl player aaron hernandez' bail hearing. the former patriots' tight end is facing murder charges. these scenes from just moments ago. they got us thinking about the number of arrests in the nfl because it seems like there have been a lot. in fact, there have been 30 so far this year. there have been nearly 60 in the past 18 months. the nfl tells us its player arrest rate is 2%. in fact, they said, quote, the nfl rate is among the lowest in major professional sports. that's according to their own internal research. we spoke to the nba and major league baseball in contrast. it said their arrest rate is about 1.3%.

they wouldn't give us an exact number but they said only three players have been arrested since the beginning of the year. the raearrest rate for the nfl overall 2%, however, the nfl is built on fan trust. what does this mean moving on? patrick, thank you very much for joining us. does the nfl have a problem -- listen, aaron hernandez aside. the fact that yesterday there was another player charged with attempted murder and no one talked about it because a player was charged with murder to me says that's an image issue. >> i will say it's obviously a bad string of luck for the nfl. i would also say that those numbers that were given to you by the nfl and the nba, i would love to see where they're getting those statistics from and i'd like to see how they're measuring those things. because when you do see news when you're watching whatever sports network you watch, it's usually either a football or a basketball player. you're not seeing a lot of

baseball, hockey, soccer players in these issues. so i think those statistics are very interesting, to say the least. >> what do you think the financial impact here is? >> well, generally for the nfl, i don't think it's a major issue. i think they still have bigger issues like the concussion issue. for the patriots specifically in the aaron hernandez case, they have the term that's used, ironically enough, is when you have a player that's no longer on your squad but they still count towards the salary cap, that's called dead money. aaron hernandez is going to count $12.7 million in dead money towards the patriots salary cap over the next two years. why is that significant? because that means that's money that the patriots cannot spend on bringing in some other skilled players to complement tom brady. >> you know, listen, and by the way, we have to jump in very quickly with the breaking news he was denied bail again. so aaron hernandez has been denied bail. i understand what the nfl is trying to say, right, that this

is not any worse than the general population. i can't stress enough, though. yesterday a player was charged with attempted murder and it got no attention because another player was charged with murder. we had ray caruth. the general population commits murders, too, but this is a business, right, built on fan trust and loyalty, but will this hurt it? do you believe this will impact the game? >> i don't believe it will, because i think most fans, again, at the end of the day they want to see what's happening. in football's case, they just want to watch their games on sunday. they want to go to the stadiums, they want to go to the cookouts before the game, they want to watch the red zone at home. they want to just consume the games and they're going to take these isolated incidents and it's not going to influence a consumer's decision of whether or not they're going to go down to the game. it certainly might influence a parent's decision to let their kid buy a particular jersey. i certainly wouldn't expect hernandez jerseys to be flying

off the markets these days, in fact, they're probably going to be burned. the point is i don't see a major impact on the sport. >> a lot of these guys are supposed to be role models for our kids. thank you very much for joining us today, patrick. >> thank you. still ahead, we found proof that in some cases maybe a college degree does not pay. in the meantime, we'll be watching the big story, really, of the past month or so, and it is gold. it is currently sitting at 12.04, guys. but you can see on the charts we dropped below that 1200 mark for the first time since 2010 and gold is in a bear market. it's down 20% so far this year. of course, talk of the fed tapering is the last slamming gold has gotten so far this year. we're going to watch where it goes today. stick around. [ engine revs ] ♪ [ male announcer ] just when you thought you had experienced performance, a new ride comes along and changes everything.

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the price of graduation at one institution of higher learning? two words, both of which were misspelled. these diplomas came from radford university in virginia. that would be virgin-i-r-g-i-n-

rather than virgi-i-r-g-i-n-a a it's spelled on the diploma. the word "thereto" was also misspelled. they will send reprinted and corrected diplomas to the grads. in the meantime, a huge rate hike. student loans rate hike is just two days away, and it would impact millions of students. >> time is running out for congress to act or else interest rates on a set of subsidized loans, the stafford loans, will jump from 3.6% to 6.8%. student rate debt will continue to have an impact on borrowers and hetheir families. student loan debt is 12 times higher than it was 12 years ago. if the rate is on the rise, it

will certainly impact future borrowers, but there is a greater issue at the crux of the student debt crisis. >> the far more important piece is to have a plan. if you overborrow, whether your interest rate is 4% or 7%, you're still going to encounter difficulties. so a plan that takes into consideration what your income potential is going to be when you graduate and what that debt burden is going to look like is critical. >> now, unfortunately, many families are not planning ahead. according to a study, only 57% of high income families said they had a plan to pay for college before their child enrolled. only 37% of middle income families had a plan, and less than a third of low income parents said they knew how they would pay for their child's college he woueducation before enrolled. as long as your total student debt at graduation is less than

your annual income, you should be able to pay back your student loans in ten years or less. brian? >> thank you very much, sharon epperson there. i want to get back to kate kelly with more breaking news. what are you hearing? >> mandy, just reading through the lawsuit here and some very interesting details that paint a picture, of course, of jon corzine who is accused of failure to supervise and being involved with misuse of funds, and edith o'brien being reckless in terms of customer and firm funds as they ran out of money and ultimately used customer funds inappropriately. to wit, there is a conversation recorded here, and it's parent there were numerous recordings of conversations between the global treasurer and jon corzine saying, essentially, he had told corzine that the liquid flow was not sustainable and the situation was grave.

the firm essentially got to the breaking point on halloween of that month. they said, quote, we have to tell jon enough is enough. we need to take the keys away from him. it goes on to say that correspo corzine referred to this person as a gravedigger. they talk about this commingling issue and the need to have a segregated account to separate customer funds from firm funds, and she says in terms of running out of money and having to find extra money to put in the firm funds, it was a complete cluster and you fill in the blank. obviously stressful times before it went under, and a lot of anxiety and tough conversations were going on. very vivid capture, you guys, of the sense in those final days. thank you very much. first on cnbc, let's bring in pfcc commissioner bart.

what changed in the last few hours or days around the jon corzine case? >> well, we filed is the big thing. it's been a long time coming since october of 2011. one of the things we've been working a settlement with regard to mmf global, futures commission merchant and hopefully we will work out a deal on that but that is subject to the court of course. i think the bigger story here for me is, ensuring that customers know that the government's looking out for them. that these segregated funds, when you put your money with somebody that they can't use those for other purposes. there are clear laws against that. that's what's been violated here, brian and mandy. >> i would like to know here, i would like to know what took the cftc so long to notice that there was a misuse of client funds? >> well one of the charges, one

of the counts is that they falsely reported, mandy. we are talking hundreds of millions of dollars in false reporting. they were sune underseged and t transferred money like a shell game. there is one thing to say regulators should do a bet are job. but when people lie to us, it is difficult to get to the truth sometimes. >> bart, it's case kelly here from cnbc headquarters. i'm wondering if you could give us a flavor of the final days at cftc. i know you guys go through a pros receives everybody individually looking at an individual potential complaint to see if they sign off on it. and there were not five voices but four, because chairman against letter recused himself but was there ever a time it was a 2-2 split or some unanimity here? >> well, i can't get too much

into the details, though you covered the complaint itself, kate, very well. and some of the things that are very interesting recorded telephone transcripts are very interesting. and hopefully what we allege has been proved in court. because i think we have done a good job. it took us a while, you're absolutely right. but what we have, evidence we have, and things we are alleging i think we're on good soiled ground and i hope a jury will agree with us. >> bart, in terms of the settlement issue, new york times said john corzine wasn't given the opportunity to settle beforehand. is that true? >> i can't get into it. i'm sorry, kate. but right if you we are trying to work out a settlement with mf global. but again, subject to the court's attention. but this is something we think needs to be brought before a jury. this shouldn't be transparent. we want it out in the open and a

jury of their piereers can makee determination. >> what do you know about john corzine's corporation. how much money do you believe he would have to -- >> i don't know about his financial situation. maybe other people do, brian. but i don't personally know about it, sorry. >> in your press release, you talk about the fact you've come to terms with mf global or what is left of it at this point and there would be a hundred percent restitution by commodity customers when the firm went down. you talk about court approval, which is essential, right? we are having a debate as to whether courts would sign off. would this include an admission of wrongdoing or is that not yet clear? >> in general, when we do settlements, kate, much to my chagrin, by the way, we don't -- they don't take blame. they don't take responsibility. i wish that changed in the future. i hope it changes in the future. but our settlements traditionally have been, pay the

money and then people can make their own judgments about why they paid the money. >> do you think clients are safer these days? do you think from your experience of mf global and other situations, do you think clients can feel safer and there is an oversight of what is going on in the industry? >> absolutely. it is one of the areas. this is a small silver lining in this whole horrible debacle is that we have increased customer protection. so one of the things that mf blo global, what we allege they were doing, is they kept the money through during reporting periods but in the middle of the day they used it to cover bad debts and sovereign things. so right now, their money is required to be there all the time. and we can check ought it. we have spot checks. it was always required to be there, but they used it midday. we have automatic checking that we will automatic electronic access and everyday we get

confirmation electronically -- >> of what trades occurred? >> to ensure that the customer's money is there. to ensure it hasn't been touched. it is there, safe. so customers should feel better about what's gone on, even if some is a result of this horrible situation. >> we are short on time, but i want to ask you briefly about precedent setting here. i know there's been a lot of public outrage about a perceived derj of cases, as well as situations in which customers got very hurt. here is a an example of you guys being pretty tough on a well known industry figure and former government figure for not safeguarding customer funds. do you feel that this is novel and will it set a precedent? >> well, it sets a precedent, kate, just because it is a bill bo on bucks. this is billion dollars of customer money. it is not without precedent we

have done this type of thing in the past. but in general, it sets a precedent because the amount is so mammoth. >> thank you so much. >> all right, bart, thank you. kate, thank you as well. all right, we will have more on today's big move down in gold. coming up. tdd#: 1-800-345-2550 opportunities are waiting to be found in faraway places. tdd#: 1-800-345-2550 markets on the rise. tdd#: 1-800-345-2550 companies breaking through. tdd#: 1-800-345-2550 endless possibilities. tdd#: 1-800-345-2550 with schwab, i search the globe for the big movers.

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to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] she must work really hard for the money. the queen of england is getting a raise. she will get 5% bunk next year

to $38 million. this all comes as parliament just announced 17 billion in spending cuts by the way. just wanted to point that out. >> who is the guy next to her? i guess i should know who this is. probably a royal. i have no idea but he was like yay. he was hug the queen, but don't touch the queen. >> yes, my grandmother was a big royal -- cups and things of the queen. >> watch that guy with the flower. who is that? prince somebody? yay, we won. >> and the queen is probably thinking, who is this guy in who is this guy? >> how much that hat cost? >> speaking of untold riches and wealth and hidden treasures of gold, which is how i view the royals. comex gold is closed. did close below 1200 an ounce. actual close is below 1200 bucks an ounce. gold having its worst quarter in

the history of gold. >> in the meantime, triple digit gain for the dow. three positives days in a row. first time since my birthday, april 30th. >> all comes back to you. i think i speak for the i go in the flower when i say, yay. >> i'm not sure that warn warrants a yay. but anyway, thanks for watching "street signs." "closing bell" is next. >> hello, welcome to this special edition of "closing bell." we've got a big show ahead. >> why would they possibly have that in aspen, colorado? at this time of year? >> go figure. >> it must -- >> look behind me. >> we all are. trust me. one of my favorite places on earth. state of colorado. by the way, backe