tell your doctor if you've been to areas where certain fungal infections are common, and if you've had tb, hepatitis b, are prone to infections, or have flu-like symptoms or sores. don't start humira if you have an infection. if you're still just managing your symptoms, ask your gastroenterologist about humira. with humira, remission is possible. if fox wants time warner what other media companies might be on the block. stocks rising again. mandy is on assignment.

sara eisen is with us. >> the beig ebook from the 12th federal reserve district saying the economy expanded. consumer spending in creased in every district. vehicle sales were stronger than nonvehicle sales. broad based demand for trucking and rail services. i like watching those transportation comments. they can tell you about the underlying economy and manufacturing expanded in all districts. real estate, however, was the one sector that varied across districts. home inventories generally were low. prices were high. demand was mixed. sounds like the same report almost every day. bank loan values rose with slight to modest increase. the fed also monitoring crop reports. there were heavy rains and that improved the outlook for crop. now, on jobs, all districts reported job growth and job

improvement. several districts reported skilled workers shortages which we've heard a bit about. wages were rising to attract talent while overall wage pressure was modest. price pressure inflationary pressures overall generally said to be contained but higher prices noted for meat, dairy, construction materials and some metals. six districts reported higher costs being passed on from business to consumers. sara, this is not a report that screams 4% growth. but it does say that there's broad based growth. if you notice the manufacturing, consumer spending, a bunch of other areas, not just in several districts, but in all districts. looks like we have modest growth but broad based modest growth. it reads like 2.5%, maybe 3%. >> they say inflation is contained. headline came in higher than expected. cpi next week the federal

reserve or the center of the fed janet yellen doesn't see a big concern here. it's something people and the markets watching. >> no doubt. she talked a lot today how she's watching wage pressures and what that means and how she believes there's room to run when it comes to wages. just for the record, most economists think that ppi comes off next month because a big part of the miss -- the higher than expected number came from gasoline prices. >> good point. did she say anything else surprising? >> what do you think as a woman about that? >> i don't think it's a gender issue. it's a political. >> i wonder if certain men cut off women more than they would other men. when i watch -- i watched hundreds of hours of hearings and i didn't see the same

treatment. she defended the notion of what does the fed look for when looking for bubls. and she said high leverage. >> most have zero to no debt. so when you talk about leverage that's a fancy word generally of saying debt, right? social media stocks don't have debt. tech heavy tech names turn out to be tech heavy. >> not to cut you off, brian. >> just said taking some heat. >> let me explain to you. >> a lot of people especially said, look we respect the fed chair very much we're not sure she should be commenting or anybody from the fed should be commenting on mark valuation. >> commenting on market valuation is appropriate. it has a pretty large apparatus to monitor market stress and market potential bubbles in the market. but i think there needs be a

criteria. that criteria needs to be -- there was a lot of money borrowed. is leverage and debt propping up these particular things such as there could be systemic risk in the fallout of it. that's where i think the litmus test ought to be. not just any market that has higher valuations in the past. >> steve liesman thanks very much. guys, good to see you. >> thank you very much. we're joined right here on the set, of course, at delivering alpha by preet bharara. nice to have you. with jim cramer who has interviewed a number of time from this very conference in years past. you lost one recently. a lots of made of it, i guess 85 convictions, now one not conviction. roger's younger brother.

is that a disappointment for you >> when you bring a case where you think you have proof beyond a reasonable doubt and you lose you want it's always disappointing. i said it was disappointing after the fact. 85-1 is a pretty good record. you know, there have been times when people criticized us for having a perfect record. noting it might mean you're not bringing hard cases. we brought a lot of hard case. when you lose a case i think it puts a little bit into perspective the accomplishment by the folks in my office and the fbi and sec in a lot of these cases because you can't win every case in our system. it doesn't mean we change what we do and we bring cases the same as we always have when we think we have the evidence. >> some correspond at least and some coverage that indicates your office knew it was -- their words not mine -- a weak case.

>> i won't comment on that. a lot of people comment on things that they don't know what they are talking about. no case is equally hard or equally easy. they range whether you're talking about a narcotics case or insider trading case. we bring every case that we think is responsible to case. when a case is above that threshold, which is a very high threshold, proof beyond a reasonable doubt to a jury is hard to accomplish. >> are we at the end of what has been now years, of course, of prosecutions for insider trading on wall street. >> we're not at the end. there's cases in the pipeline. cases that are ongoing. i don't know it will be the same number that we had at the beginning of four and a half years ago. people are still committing bad acts. and bad acts committed before that come to light three, four years after the fact. >> there are a number of prosecutions that are ongoing. understand that.

some related to saic. from your perspective having prosecuted so many of those from that first day when i was reporting on it that morning, it would seem we've got to at least pass through the bulk of what many people would see the prosecutions that your office has undertaken. >> we don't know what tomorrow brings. i don't want to comment as things are under wrap. i won't say there will be 85 more in the next 12 months but we still have cases to bring. >> why are we still talking about? it's so scary. >> you people love to talk about it. >> why are people still committing it. you send a lot of people to jail. 85 out of 86. maybe you're the lucky guy that wins the lottery and doesn't go to jail. people lose their livelihood and yet risk it. >> they should do some better calculations. i do think that things have gotten better.

i think that the timing of some of the conduct in some of the more recent cases pre-dates the onslaught by the fbi and by our office and other offices. look it's always going to be the case you won't eradicate every kind of criminal activity. there will be people who think they can get away with it because they are smarter than the other guy. they study the techniques and m mechanicsisms they can get away with it. our hope is it's gotten better. it's not being done to the same level it was but that's impossible to measure as a scientific matter. >> last year when i interviewed you you said that you're not afraid to prosecute a bank. what do you have to do to be put out of business. there's a bank, bank power that knew they were under

investigation, first thing -- everyone know, like a tv show. preserve the evidence. stop doing what you're doing. general counsel comes in. got compliance. listen. stop it. they didn't stop it. yet they paid a fine. >> they didn't just paid a fine they pled guilty -- >> they were still doing business. >> the point of prosecution is not to get everyone who commits a crime a death penalty. in our system that's still permitted in certain cases and that's true with financial institutions. the point was making last year and throughout is that no institution is too big to jail. that doesn't mean depending on the nature of the conduct that you're trying to put a company whether it's a bank or hedge fund or anyone else necessarily out of business and cause hundreds of thousands of people to lose their jobs. in the b and p case, like it was true in the credit suisse case, the object was to exact a very serious penalty and have a

serious effect and significant financial penalty commensurate with the actions that took place. the goal in that case of not to destroy the bank because given the nature of the economy although very serious that's not responsible. when you saw in the b and p case is something that's very rare since the days of arthur anderson. as i often say the pendulum has swung back. people said a year or two ago it would be impossible for a major financial institution to with stand a federal crime. that's not true. people overstated the level of collateral consequences that a business can suffer. there will be occasions where a financial institution or another entity might suffer more serious consequences that might be the right thing. it wasn't the right thing in that case. i hope people fresh that prosecutors like in our office and others have been responsible mean tur about exacting a very

serious penalty but not going too far. >> i want to come back to insider trading for a moment. specifically chase and newman a case you guys prosecuted and won that's now on appeal get to questions the way your office interpreted or succeeded in getting judges to agree on what constitutes insider trading. in this case people were, numerous numbers down the line so to speak from the receipt of what was nonmaterial public information and may not have known that a benefit was construed at all. there seemed to be some judges at least who say that is not insider trading, your office seems to disagree. >> we'll see what happens with that case. just so people understand what we're talking about here, the legal element that's in question as the defense has put forward has to do with knowledge not about whether the information was material or nonpublic but

whether or not the person first obtained the material got some kind of a benefit which is a technical element of insider trading. we took a position that they don't need to know that and we had judges agree with us. the system we have in place is where you have appeals court and further appeals after that. >> that's appealed that put in jeopardy some of the other convictions you reached with mr. steinberg this idea if i'm four or five down and i'm not aware -- i'm not aware that this was actually illegal. >> it's not whether it was illegal. whether a person upstream got a benefit. what i'll say rather than talking about an impact it will have on any ongoing cases, if the ruling goes the other way i think it's fair to say that it will be easier for certain individuals to turn a blind eye and make an argument they didn't know about the benefit but still got inside information and able to make a profit and be a lot easier for a lot of people to

cheat in a way that i think is unfortunate. >> another way to interpret the law would be when i was a hedge fund manager if i heard something that was nonpublic material, i always said don't freeze me. you're freezing me. my lawyers say i can't do a thing. to me if you're just giving me info now under there now i can say i'm not frozen. i didn't pay that person anything. >> we'll see how the case plays out. do i have a concern that if the elements get narrowed too much it makes it a little bit too easy for people to commit fraud on a market and cheat other people who are playing by the rules and know they are playing by the rules. that's all. >> it's rogue decision. >> i'm not going to comment on that. we make our positions clear on legal matters and very respectfully to judges who sometimes disagree with us and we'll see how it plays out. >> do you think wall street is inherently corrupt. >> no. i don't think any institution is

inherently corrupt. in don't think hedge funds are inherently corrupt. i don't think state houses are inherently corrupt. in some quarters i think people are not doing enough to make sure they are taking care of that. if people think who they are hiring into a company they would do a better job. one of the most bizarre things that's laid out in the indictment there was a person hired over the objection of the compliance officials who was rumored to be a crook and inside trader. and shockingly when that person comes to the firm what happened within a couple of weeks. he began to engaging insider trading. some stuff is common sense. some stuff has to do with culture of a place. i don't think that wall street is heefl corrupt. i don't think banks are heavily corrupt. they can being a great institutions. >> is the sac investigation over

and done with? your career path. you've been a government employee for a while. not that easy to support a family in a new york area. would you ever consider going to wall street? >> i'm trying to do this job and do as good a job as i can. i'm not thinking about the future. >> you got to be thinking about the future. >> i'm thinking about tomorrow. i'm thinking about next week and thinking about making it to my fifth anniversary in my job. >> we just heard from a former prosecutor might run for president. >> he put it well. you shouldn't put ambition before wisdom. >> i want to get your reaction that a federal judge about plea bargains which your office has received many. plea bargains have let many innocent people take a deal. people accused of crimes are often offered five years or face 20 to 30 years. the prosecutor has the information, has all the chips

and the defense lawyer has very, very little to work with. it's a system of prosecutor power and discretion. >> the judge is a friend of mine. i'm a guest in his class every year. i have respect for him. we don't agree on many things. the judge knows that in the federal system before someone is able to plead guilty there's a full elocution under oath and the judge is required to make sure they are pleading guilty because they feel they are guilty. if he's aware of a case ever brought by office where somebody pled guilty but was not guilty or more specifically that he took an accepted a guilty plea where that was case i would like to know about it. he hasn't called me with such an example to date. >> do you think it's a crime to run ahead of someone else's order when you paid to get that order? do you think that there's a came being committed at some level by high frequency traders?

>> high frequency trade cigarette getting a lot of attention as it should. my sense it's a bit more of a regulatory issue than a criminal prosecution issue. but it's something the sec is looking at very carefully. but prosecutors in my office and the fbi are also looking at it to see if, you know, there's a basis to bring a charge people are acting with criminal intent and taking unfair advantage. >> i'm talking about an ongoing investigation. >> i'm saying they are taking a look at the issue. >> i don't know. you know, finally cyber which you discussed with treasury secretary earlier in your office. we can all go down a pretty scary way for a financial institution when it comes to cyber crime. we know the u.s. has indicted five chinese nationals who will never get -- seemed to be more for show. how serious a problem is this and does your office have any real hope of combatting it on a worldwide basis? >> i think there is hope.

the fact that treasury secretary, secretary of the united states of america chose to spend an additional portion of his address on this is important. cyber is up ten fold from five years ago. number of resource the fbi has brought to bear supermany, many fold. ice an important issue for your viewers for people in business. general alexander put it this way. we're witnessing the greatest transfer of wealth in human history. it's very disheartening to see people high up in the government cabinet secretaries and other talking about the problem with china. people say that wasn't my case the chinese nationalist case might not get those bodies. there are people within the government if clueding my office, the fbi and elsewhere trying to figure out ways to bring individuals to justice. i'm not sure it makes stones give them a buy because you can't get them.

there's some evidence to believe that the process of naming and shaming if you have the evidence, you bring the case and make an open case about it and expose to it the public, that i think helps matters and can deter people and may not deter as much as you want. the actual deterrence is put the actual human, in handcuffs. >> do you think the fbi has the resources combat this effectively? oftentimes the criminals seem to be more sophisticated than those tracking. >> jim used to have my job. he made this one of the top priorities of the fbi as director muller did before. everybody is paying attention to it. regulation has to be there. commitment on parts of the shareholders and board of directors and ceo, people in the seat of major companies has to be there. i'm still surprised how often i talk about the cyber issue and i talk to people at companies and they say they don't have a plan in place for what they are going to do if they get hacked.

you can't begin to make those plans and figure out who you will call at 1:00 in the morning when you figure you've been hacked. your customers will leave you. you'll have regulatory problems. it's getting better. >> question about justice. >> my favorite subject. >> indead. expert. we see a lot of banks paying big funds. but the people i talk to say, you know what? those were crimes that were committed by people. and what's happened is the people now are writing checks of shareholders money and oftentimes they are getting raises when the board meetings come around. does it ever get to you >> i see a lot of stuff in my job. things that get to me more than the idiocy of people committing crimes. what we don't talk about on cnbc we had a spate of convictions including terrorisms, including son-in-law of bin laden.

authors things that get to me when you talk about the actual human safety of people in a city where people try to blow up buildings. with respect to that, the director said it best. when we announce the guilty plaef b and p and shareholders should get angry. they should not be getting angry at the prosecutors, they should get angry at the management to allow this bad conduct to continue and continue over long periods of time. until shareholders and board of directors hold people accountable no amount of prosecution will fix the problem. >> finally, karl icahn will be a guest here later today. does he have anything to worry about from your office. >> i have no comment having to do with your guests on your show. >> up don't want to comment on any of our guests. >> no. >> thank you very much. u.s. attorney for southern district of new york. back to you. nice try with karl icahn.

a lot more coming up from delivering alpha. that was a good one. >> it was a good one. yeah. karl icahn coming up in about two hours. >> also coming up on the show, time warner turning down a big offer from fox. surely more offers could be coming in this industry. which companies should you be looking at. look at potential buyers and sellers and a lot more from delivering alpha all coming up on cnbc.

>> today's big story, rupert murdoch company making a massive bid for time warner. time warner reject that offer. sore broke the story this morning for cnbc. that story is a hot topic at the delivering alpha conference. take a listen. >> time warner great assets. hbo, warner studios, content is king. both those assets have great content. the deal makes a lot of sense for fox. makes a lot of sense for time warner shareholders. >> it's the best time ever i think to be a media entrepreneur, and it's also a very good time if you scale to don't build massive scale and it's the middle where there's deep consolidation. >> makes a lot of sense.

he's going into a business he knows and understands and done a great job of things he acquired. >> joining us now from guggenheim securities is michael morris. do you believe that eventually time warner will fall into the hands of 21st century fox or another buyer? will the deal get done? >> it's visibility difficult to say conclusively. the two sides have walked away from each other right now. i agree with the comments you heard earlier there are some strong reasons especially on the scale side that this combination could make sense. i think that discussions will likely be revisited. whether it gets completed is yet to be derpd. >> we ran a search much some companies. let's tall them big boys, mid-size and smaller cap names. time warner can be considered a big boy. multimultibillion market cap and

laying it out on our wall. you consider those the buyers. sellers or easy targets you see names like discovery, scripps networks, amc, on that list, mike or maybe another name, do you think anybody then will get caught up in what could be reactivation of media purchases? >> sure. i think if you look at the deals that have been either announced or contemplated recently they are looking to build scale on the distribution side. they are looking to build scale on content and so when i look at one thing that seems very apparent to me is the geographic realization on the distribution side meaning that comcast, charter, et cetera what they propose aligns their footprints more concisely. i look at cablevision systems that's concentrated in new york, a very attractive area for a comcast proposed acquisition. it seems a natural fit for a company like comcast.

>> with these two mega deals on the table and we're not close to this one yet especially given the fact that time warner has walk away for the moment what are the antitrust regulators have to deal with. this is a whole new ball game? >> sure. of course anti-trust regulators are looking out for the best interest of the consumers. looking that we don't have some sort of concentration that hurts the consumers from the pricing side. if you look what comcast has done in the past and the qualifications they put around the current proposal it certainly seems to be in the interest of making sure that, that it doesn't go afoul of some antitrust concerns. i think that as you look at some of the potential content deals, it's a much more fragmented market place. for example, a combination like time warner and fox on the studio side even those these are the two largest studios it only puts 27% of last year's box

office under one roof. >> mike morris, we appreciate your time. interesting stuff. i have a feeling the story may have just begun. let's go back to our delivering alpha conference. john harwood, what have you got? >> we talked to chris christie and had a very engaging conversation. he was funny as usual. combative at times. talked about the sensitivity and the difficulty of knitting together a republican party divided between business conservatives and the tea party. but course the money question is he in fact going to run for president on the republican side in 2016? i asked him that straight off. here's what he had to say. >> identify been pretty clear, i certainly will consider it but whether i do it or not is something that i honestly don't know yet and i think, you know, people say that all the time and folks are fairly cynical but he knows what he's going to do. i don't know what i'm going to do. i think when you have four relatively younger children like we have, and from 20 to 11, you

know, there's a lot to consider. >> now of course, one sign that he's actively considering it is he's going to iowa tomorrow to campaign for other republicans. he declined to take stands on national issues saying he wasn't going to do that until we get into a campaign if one happens. but he did criticize the administration for a tepid economic recovery and took some responsibility for a slower than usual recovery in his own state as well. >> what we had is the most stagnant, limp absolutely unimpressive recovery post a recession that we've seen in the country in decades. talked to people on the streets every day in new jersey, ask them if they feel we've recovered and i would tell you that the majority of my citizens don't. >> now, of course, on the question of bridgegate which severely damaged his political

prospects a few months ago and trying to move past that he said staffers had gone rogue, he's taken some responsibility but said if you disqualify everybody who had a staffer who did something they didn't approve of, didn't know about you wouldn't have very many people running for president and brian we can expect this is a guy who is strongly inclined to do it if he can figure out a way to make it work. >> i thought it was like a debate. he was very strong on it. >> he is a very talented guy at the back and forth. very charismatic. he's funny. all of those qualities will serve him well. he does have a rough row to hoe especially in states like iowa where those populist conservatives are more predominant than they are here in new york city. >> he does have a rough road. have you driven in new jersey lately? just throwing that out there. >> stuck in traffic. >> could be a pothole on the way

to the presidency. >> john harwood, thanks very much for bringing us the comments from chris christie. after the brief yellen bump in the road stocks once again all time highs during this session. our next guest says this bull market has years to run further. >> treasury secretary jack lew says be a patriot. pay your taxes. so maybe does that mean taking legal tax breaks is unpatriotic? we'll debate it coming up. ed tablet approved to treat symptoms of bph, like needing to go frequently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision,

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. welcome back to "street signs." check out general electric the stock moving higher on a bloomberg report that they are in talks about selling its household appliance business which could fetch between $1.5 and $2.5 billion. back to you. meantime on the broader markets the dow hitting a new intraday record but can it continue to move higher and notch new records? let's ask a noted bull from wealth capital management. some interesting comments when you hear about the fed, stan

drukenmiller one of the best investors saying the federal reserve is behind the curve and it's scary. how does that make you feel as an investor? >> i agree with stan. i really do. the problem the fed has, i think, sara, is not so much arguing it should stay stimulative because the unemployment is high, wages don't show, it's their case that can be made for why they are still practicing an unprecedented massive unconventional crisis-like monetary policy in an economy which has not been in a crisis in more than five years. so, i kind of agree. i think that the fed, if they are going to continue this much longer is risking more harm than helping more and i would agree with mr. drukenmiller i would like to see them reel that in. >> how do they get out of this mess.

how do they tell us things are moderate but yet we see things getting better and they do these extra measures. what's the way out? >> yeah. well, you know, i think, brian, that ultimately it will be the market that will for the fed out. in other words -- >> bond vigilantes, the bond market is more powerful than the fed once again as it always has been until the last five years or so? >> i think so. i think the stock market too. you know, i think the fed is more like the rest of us than we like to think. that's to say they are not really in control either. it's not up to when the fed decides to tighten, it's up to adam smith and i'll tell you what we're only one big bad wage number away from forcing the decision here. think of last month's employment report we had 288,000 jobs, the employment rate drops to 6.1. if you change just one number in that report that wage number only came .2 up but if it came

.4 up we would have a different feel where we're at. that good jobs number wouldn't be good growth it would be good jobs number with the wages accelerating would be fed behind the curve, overheat. we got to raise interest rates. i still think ultimately we'll get some hot inflation data and if we do i think it's going to force bond yields up over 3%. going to bring intensity around conversations around the fed and force them to accelerate their exit strategy. >> certainly a hot debate. thanks for joining in. i know you see many more years of this bull market in stocks. thank you as always. economic patriotism. that's what treasury secretary jack lew says we need to keep companies from leaving america for cheaper tax locations elsewhere. michelle caruso-cabrera is fired up about it. she's next.

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>> on this question of inversions, i used language in my letter that's pretty strong. i said we should have some economic patriotism much it's not right to take an american firm to benefit from all of the thing that we do in the united states to make it a safe place to do business but then i don't want to pay taxes here and shift my corporate address overseas to pay a lower tax rate or no taxes. >> so is it unpatriotic for a company to see lower tax rates. joining us now is michelle caruso-cabrera. what say you. >> it's completely unpatriotic of congress that corporations are put in this position where they feel they have to move overseas because they have been put in such an uncompetitive position. i define patriotism as having a great country and every day they make our country less great by maintaining the positions that they do and i see what happens overseas when countries allow themselves to become uncompetitive and if you want to push this notion that these companies aren't allowed to do

what they do, then you can push for higher unemployment, push for these companies to be taken by overseas corporations that will have more money because their taxation structure is better and we'll lose more jobs. it's his position that's unpatriotic. >> here's the argument on the other side i suppose which is this. these companies have availed themselves of the fda regulating drugs, patent protection, our contract law. that they are gaining a benefit from being in this country and how dare they move because we help build them into what they are and now they are saying -- >> all of those things are what made the united states a competitive place to do business and day-by-day this administration does more and more to make us less competitive to do business. all of those things you talk about are great. why are they undoing those great things by adding on these layers of uncompetitiveness. >> this administration and what jack lew is pushing for is urging action. >> i'm sure they are.

absolutely. he's right behind it. this is president obama's greatest mission right now. >> you believe that? >> what can they do? >> they can make a deal. he can be like bill clinton and make a deal. >> what they could do is okay if you leave america and i think they float this, if you get federal government contracts you're barred from bidding on those contracts. >> okay. >> i don't know what other power they can have. >> currently wherefore rent shareholders to e7b% they could move that up to 50%. >> what you're talking about, prohibitions on mergers. that's the next step. that's a logical way to start thinking. you can't move overseas. now you can be bought by overseas companies. you can't do this. come on. we're a couldn't founded on economic liberty. >> the irony is every year congress for years has built up tens of thousands of corporate tax breaks. there's a story where california

has offered up sweet new incentives to get tesla. they are all just throwing money away in every direction anyway. but this becomes the bigger topic. >> i don't know. looks like we'll get a lot more of them. walgreen's is in the news. "wall street journal" speculating that could be the next one. michele, hot topic. coming up u.s. attorney made a name for himself going after noird traders and the u.s. doj has been getting big settlements from big banks but no criminal charges for their executives. our next guest asks where are the perp walks anyway? ♪ during the cadillac summer's best event, lease this 2014 ats for around $299 a month

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and take a break of his own. experian. live credit confident. >> the big storytime warner turning down an $80 billion offer from fox. let's bring in bill griffeth. >> we have a man who knows the ins and out. bob wright our former boss the man who engineered the deal between nbc and universal studios to create nbc universal. in his view does this make sense? can some of the problems be overcome.

reuters say there's sectiucces concern. and do we need more mediation. >> a lot of questions with this deal. i like how carl said. and will rupert murdoch be about bill's boss. >> wouldn't boss on top of that? >> wouldn't you love to see that? earlier this hour, we heard from preet bharara, known as the sheriff of wall street because of his 85-1 record when prosecuting insider cases, but our next guest has a problem with the way the system is policing the world of finance. david nelson, chief strategist at gulfport asset management. what is your beef, david? >> i think jim went to the heart of it. he tried to ask the question and preet cut him off. just take a look at bnp paribas, that case. when you read the indictment it reads like treason. and certainly, management knew what they were doing was a criminal act, yet there's no prosecution of those responsible, and that's what

justice is supposed to do. it's supposed to root out criminal activity, protect the public and also bring to justice those responsible, but here -- >> so, reading between the lines, david. and listen, forget the french banks, whatever. >> well, that's when they actually got -- >> you want perp walks. >> i do. why should the shareholders be the only ones that pay the bills here? >> or the public. the public could say, hey, you know what, you destroyed the economy, get locked up. >> okay, if you want to change behavior, throw a few ceos in jail or at least claw back on the big bonuses they got, i guarantee you will see behavioral changes. >> don't you think those cases are going to be hard to do? obviously, if they were able to do that, wouldn't they have done that already? >> i don't know, and i'm credential not an attorney and i'm not inside the room, but does it really pass the smell test? do we think thez gentlemen and ceos -- >> would you comment preet bharara for his record, which is nearly perfect? >> but he's going after hedge

fund managers and traders. an exemplary record on that, 85-1, what can you say about it? he brought s.e.c. capital to its knees, but to today, i haven't seen a perp walk with regards to a bank. certainly they knew what was going on. why only punish the shareholders? we spend billions in compliance at the corporate and government level. if you want to change the behavior, you have to change the action. it happens in other industries, just not banks. >> that's what is so interesting and sad, in a way, right? is that the four biggest banks in america now have far more assets and, essentially, then, control over the financial system than before the financial collapse. what have we learned, yesterday i believe it was? jpmorgan chase has 3,300 subsidiary companies? >> $2.5 trillion -- >> but we also learned they will be paying $7 billion related to -- >> but that's shareholders paying the $7 billion. none of that is in management. >> that's an argument, i get it.

>> you saw yesterday, this will be a very populist issue in the next two election cycles. i thought everybody was focused on janet yellen's monetary policy statement, but the grilling that she got from senator warren with regards to jpmorgan's inability to put together a plan, i think we saw two things -- a declaration of war on banks and also possibly her first campaign speech in a bid for the white house. >> we did have a good senator on the show a few weeks ago and asked her, are you going to run for president? she said absolutely not. >> they all say that -- >> no -- >> do you think it will be a mainstream issue? >> it already is. it's not just programs like this and in the financial company we're talking about it, it's headline issues in "usa today." they're talking about it. main street america gets it. >> agreed. once it's off cnbc.com and on to more main street, you have the popular issue. >> i think so. >> good luck getting back across the bridge. don't give me that look. i get enough of that. another check of the markets

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and gas companies with heavy hedge fund ownership. qep resources one of those. at today's delivery alpha conference, the famed head fudge manager cooperman named qep as one of his top picks. his others, super value and citigroup, are names we talked about monday, just digging through the filings, a little old elbow grease. cooperman was not a major holder at the time in the first quarter, so what's that mean? >> he's been buying. >> thank you. nothing gets by you. >> all right, let's look at the broader markets right now, because we are still seeing gains for the s&p, the dow and the nasdaq. the dow is off of its all-time intraday high by what, 16 points, brian? >> 17 right now, you're right. >> 17 points, but as you can see, we are still seeing gains across the board. we'll be right back.

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