tv MONEY With Melissa Francis FOX Business August 28, 2013 12:00am-1:01am EDT
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at stake with his handling of that and ongoing fiscal crisis, we're on that >> i'm melissa francis and here's what's money tonight is didn't think public pensions could get any worse, did you, oh, you were so wrong. private lobbyists get public pensions in 20 states. we're bringing in the big guns. former lawmakers scott brown and denn kucinich are here when their reaction. plus he may be in the slammer but one of wall street's most notorious criminals is living like a king, manservant included. it is all the word on wall street. you won't believe what is going down. "who made money today." she made so much. she made oprah look bad. not sure how that is possible. not sure who it is? even when they say it is not it is always about money.
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melissa: right off the top, the new treasury or fed nominee will be former larry summers. what will he mean for your market and your money? gerald o'driscoll, former dallas federal reserve vice president joins us with his take. what do you think? >> i don't think it will be a big change. i don't think it matters much for monetary policy which candidate, yellen or summers got picked but i think it may matter for regulatory policy. melissa: why? >> summers is perceived to be and i think is, pro large financial institutions. he thinks there good for the economy and efficient. right now they're getting roughed up by regulators and i think he might ease off on that.
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melissa: everyone is assuming this would be good for the big banks but do you think that is a safe assumion? we have a lot of evidence in that category. larry summers if nothing else he is unpredictable. he goes with what he thinks at all times and you're not always sure what that is. >> yes. i agree with you. but i certainly think that, based on, t past, on his service to the clinton administration, on his close, association with some wall street firms, that would be e safe bet. but could he turn around and be a tough guy? sure it could happen but i don't think so. melissa: is treasury secretary an academic obviously. imf as well. he doesn't have direct federal reserve experience though, monetary policy experience. does that make you nervous? >> no, it didn't make me nervous but i suspect it makes insiders at the fed, the top echelon at the fed a bit nervous. they know he will come in with his own ideas and do things his own way. melissa: he is not somebody
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known for building consensus which touches on what you said. a lot of people, you know, in the market who are asked about they worry about his personality. the fact he is cranky at times. he doesn't build a consens. he is fickle. that is not the personality we've become used to i the seat of federal reserve chairman. do you think that in of itse could make markets nervous? >> it might. it will make especially the presidents at the reserve banks nervous. he's, you know, we've had a fed chairman in modern history who was not unlike larry summers and that was arthur burns, another economist who thought very highly of his economic knowledge, skills and ability and he didn't much think highly of other people's opinions. melissa: do you personally think he would be a good choice? >> i think that his difficulty with consensus-building could make this a contentious period of adjustment for a year or so.
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and, yeah, i mean in a crisis, it might mean that things wouldn't go as smoothly as they otherwise would. melissa: compare him to janet yellen? that is the persoa lot of people were assuming for a long time would be the nominee. it is thought she would be more dovish than he would. she would leave the punchbowl out there longer as we call it in terms of looser monetary policy and quantitative easing. do you think that's a correct assumption? >> i would think that would be her predisposition. she might not be able to act on it if markets pushed interest rates higher but yes, i don't think janet yellen ever seen an unemployment rate low enough to suit her. her intention would be to be more dovish. if tapering begins under bernanke, i couldn't see her reversing that. if it begins under bernanke. summers might continue it. she might have slowed it down. melissa: given your experience who do you think the better choice of the two of them?
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>> oh, neither one of these excited me. i think it would be much more interesting if we talked about what the fed should be doing instead of the personalities of all the names out there the one i would have loved to have seen is don cohn but he is getting old. melissa: how about john taylor? one of my favorites? >> that is my dream appointment but that will not happen in a democratic administration. melissa: no. the bottom line what is your bet on what is going to happen here? >> i think larry summers will make an effort to smooth the edges, to, because it is in his interest to succeed. he will make his best effort being collegial. we'll see how good that is. melissa: gerald o'driscoll, thanks for coming on. we always appreciate your time. >> thank you. melissa: what is the link between larry summers and the market? wall street not looking hapy about the possibility of him taking over the reins for ben bernanke. every time it is talked about we
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see the markets swoon. i want to bring in charles payne. we had a very down day today. a lot of that is because syria. the talk out there about larry summers has wghed heavily on the market. why do you think that is? >> it is very interesting, you point out with gerald the ties, he made so much money from wall street. gobs of money as a consultant millions of dollars from citi, from shaw, hedge funds. he pushed for deregulation. he said and done things in the past you would think make him a wall street dream. melissa: right. >> i think it is the personality. i think it gets back to the personality thing and the unpredictability. wall street knows that january yet yellen will get marching orders from president obama and will not waiver. once larry summers gets the job he is -- this is just, again, it gets back to personality. this overwhelming personality of his that has casts a shadow. melissa: that is scary because he has, made the comment when he
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was the president of harvard women not being ad depth at engineering and science. who knows if he really believes that, if he meant it the way he said it. that kind of thing and you make a comment that gets everyone roiled and alienates a lot of people, that off-the-cuff comment is not personality you need as a fed chair. >> can you imagine with one of new things whe reporters get up and ask questions? melissa: right. >> he may lose it. melissa: could be entertaining. >> i would lo it. you would love it. melissa: wait a second, i'm totally changing my opinion on this whole thing. yes, we would love it but definitely make the markets uncomfortable. i'm suresurprised the market is not more excited about him. seems like he would be more accommodating to wall street in the sense of regulation. at the same time, everyone believes that no one would leave the punchbowl out longer than janet yellen. you heard what gerry driscoll said a moment ago he never has seen a employment rate low
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enough. that was a great line. he is fantastic. that is true. why they may want her more. >> summers may see this as last-ditch opportunity to go back in history, you know what? some things he said about enron nd california power crisis, using third world countries for toxic waste, things pushing for deregulation, maybe it would be a opportunity to swing the pendulum all the way over to the other side. may he would, quote, unquote, evolve according to someone. look at his resume' wall street would have on the pom-poms. melissa: you are not people with money on the street and talking the game and people who play it on tvecause you actually do it. what you do think about this? how nervous does it make you? how do you tee yourself up for this decision? >> for me, i'm one of these guys, number one, not a fan of the fed. b, fed talk dominates so much it causes people to miss some
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opportunities. i look for strong companies and who are doing extraordinarily well and become an owner of companies. the sooner the fed is o of the picture the better. whatever the knee-jerk consequences, can stumble on its own. we use the training wheel analogy. when you take off the training wheel sometimes your kid false. i remember my daughter learned how to ride a bike and one corner she was learning she fell three times in a row. she didn't cry. she picked her heavily is up. as the economy goes on its own it will stumble. so what? melissa: be sure to watch charles payne, making your market. tonight and all this week at 6:00 p.m. eastern right when this show is over. don't miss it. coming up next on "money", a new outrageous pension problem i promise you never heard. private lobbyists getting pensions in at least 20 different states. what? former lawmakers scott brown and
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dennis kucinich join us to respond. a u.s.-led strike on syria could be any day now. is it really all because of iran? we have details why that connection is something to worry about. about. more "money" coming when we made our commitment to the gulf, bp had two big goals: help the gulf recover and learn from what happened so we could be a better, safer energy compa. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watcover all drilling acvity twenty-four-seven. and we're sharing what we've learned, so we can all produce energyore safely. our commitment has never been stronger.
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♪ melissa: so just when you think you heard every possible story about the ridiculous amount of pension problems we've got one that might just blow your mind. hundreds of private lobby its are getting public pensions in at least 20 states. those pensions are meant for people that worked, 10, 20, 30 years for the government, teachers, police officers, that's who. ap reports that private organizations are walking away with pension money leaving taxpayers on the hook. here to react and crunc the numbers here are a few of our favorite fox contributors, former senor scott brown and congressman dennis kucinich and steve moore of "the wall street journal." one of the examples that really illustrates it. steven aqur are io. i think it is how you say the name. he is lobby it in new york.
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gets $204,000 a year. that is more than the governor gets. ford explorer is hisar. he get as state pension. director of the new york state association of counties. he is lobbying for counties, getting paid for that group and somehow get as state pension. apparently this happen as lot. have you heard about this before? >> i haven heard about it until the report. it is bad public policy it is not just that gentleman but hundreds of peole are involved. we should focus how do we sustain pblic pensions, not how we help lobbyists protect their pensions and help all public workers with a pension system that has right now with liabilities way over the assets. melissa: yeah. that may be a whole another topic for debate but, senator brown, let me ask you, you worked as part of a bipartisan conference to reform massachusetts's pension system. did you run into, did you see things like this? did you know stuff like this was going on? >> not in massachusetts. very similar situations but what
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you have when you have lobbyists involved in the process you either have the legislators or lobbyists slipping these piece of legislation forward and you know, adding it through an amendment process and here you go. it's outrageous. it is not meant as you referenced earlier in your show, police, fire, teachers, janitors, laborers, those are what these pensions are for. many of them are unfunded right now. they can't, they can't meet the obligations. and it needs an executive order like what chris christie is doing and others to get a really a handle on this and kick them out. melissa: steve moore, my brain ex-supposedded when i read this and tried to figure out how -- all of you agree that it is insane. it is hard to find somebody to defend why this would be the right thing to do. the groups, some folks involved say, that they operate mostly or solely on dues from their members, which are paid out of taxpayer-funded budgets. >> right. melissa: so a voice to government entities that serve
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the taxpayers and that's wy they deserve a public pension. what do you think? doou buy that? >> well it is not that often that dennis kucinich and i agree although i consider hi a friend but i couldn't agree with him more on this it is an outrage and i also think that when you look at the states, melissa, that are providing these pensions, for these lobbyists, guess what, it is very list of states that are at the top of the list with the biggest pension liabilities! you're talking about states like new jersey, states like new york, my home state of illinois. and when you're talking about the combined, unfunded liabilities, melissa, of the 50 states and their localities of over a trillion dollars, you scratch your head and wonder why hundreds of millions of dollars are going to these kinds of pensions for people that don't even work for the government. melissa: congressman, you talk about we need to figure out how to reform the system and save pensions in place but i think for a lot of americans this is
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symbolic with the problem with the whole system and why they don't want to save it. they lump it together. >> that's why this has to be resolved because if the people who are benefiting from this, truly have the interests of the public pensioners, those who have worked for the taxpayers, the teachers as you said, firemen, policemen, laborers, as scott said, what they should do say, give it up. it is not appropriate. we're going to give up this benefit. we have to focus those dedicating a life to public service willot get cheated out of their pensions. we know those pensions lost a lot of money when the market went south between 2007 and 2009. we hope the market will come up enough for pensions to come up with their assets but we have to do everything we can, secure the pensions of all the workers, but lobbyists i think they will do well without that benefit. melissa: they will do very well. that, senator, is unwith
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problems. their salaries are not capped the way others in the system are. their salaries can go up and up and up in their private lobbying job. their pension is based on that total paid from different pool. there sownly 300 people or something like that involved in this, this can get out of control very quickly by virtue of the fact their salaries go higher and higher. >> melissa, it is clear that the system is broken in those states that havehis issue, they need to fix it. comes from lack of leadership in some of those states when you have complete one party rule. there is no check and balance. so they're able to slip these things in. next thing you know taxpayers have no idea. they're so parochial a lost pension systems, they won't and don't have any obligation to disclose what they're paying their pensioners. so it's a broken system. we really, i got to be honest with you, never ceases to amaze me the greed and sometimes corruption in some of these situations. >> yeah. >> it needs to be fixed. people deserve better. >> by the way, melissa, the way
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to fix this and this is where dennis kucinich and i would probably disagree, i believe you go to defined contribution system. you own the money yourself. you put in your pension. they can't, politicians can't spend it on other people's pensions and you're safe from things like bankruptcy that happened in detroit. that to me would be the solution to these massive unfunded liables. melissa: dennis, you're shaking your head. go ahead and respond. >> i wanted to make sure my position was clear here. you don't cause all, you don't cause all the workerso suffer because some lobbyists are-- melissa: they're not suffering. they're owning their contributions. >> those pensions should not be reduced through the defined pension scheme. melissa: we're going to leave it there. thanks to all of you. >> they do better. they do bter under defined contributions! melissa: we all started agreeing and wouldn't be a segment if we didn't all disagree. i'm glad we got there, guys. thank you so much. >> thank you. melissa: next on "money", tough talk is targeted at syria. the u.s. could reportedlytrike
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melissa: the whole world watching the middle east right now and what is happening in syria after secretary of state john kerry confirmed evidence of a chemical weapons attack by the assad regime on its own people. new reports today that a u.s. strike could happen as soon as thursday. fox news's leland vittert is on the ground in jerusalem with reaction from the region. >> melissa, the war drums are certainly starting to bea much louder in the middle east. the arab league is now saying
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that they believe chemical weapons were used in syria and are demanding a rponse. they have stopped short though of talking about unilateral military action. the syrians for their pts are saying where is the proof of chemical weapons? to that end the u.n. chemical weapons inspection team is still inside syria investigating but they haven't been allowed out of their hotel today. they're still stuck in the four seasons in damascus. yesterday they headed to one of the sites of the alleged chemical attacks. they were able to collect tissue samples and blood samples from victims and soil samples. far from any kind of conclusive evidence the united states has for its own part moved on from that they have their own independent confirmation and intelligence of a chemical weapons attack. in israel people are awfully worried about the possibilities of retaliatory strikes by president assad. he has promise that is where he would take out retaliation for a u.s. strike, on israel. israel has the iron dome missile defense system, the arrow
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miile defense system to protect against incoming round that could come across the syrian-israeli border. the other things israelis are doing to gas masks. every israeli is entitled to one but not every israeli has one. at the post office long lines as people pick up new canisters for the gas masks, learn how to use them, those sorts of things as that become as very real fear about retaliation. the israelis don't think president assad will retaliate. in the past he threatened to retaliate especially after a couple of israeli bombings over syrian positions the past couple months but has not so far. the prime minister is not taking any chances. today he said that any strike by syria against the jewish state would result in swift and sure, end quote, severe retaliation. melissa. melissa: all right. so as our government seeming prepares for military action against syria, a report in the w is j today really hit the nail
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on the head -- "wall street journal." why we may move forrd. gerry seib joins me to explain the whole thing. great article, today. >> thank you. melissa: you lay it all to this idea, a lot of people are asking the question, we have stood by so long. why are we deciding to get involved now? you say it comes down to iran? >> i do think iran is the elephant in the room as i say in the piece. that is for a couple reasons. we wouldn't have the conversation because i'm not sure the assad regime would not have survived so far without lots of support in iran. iran is a partner in the war in a sense. it is not just the civil war, it has expanded beyond that. it has become a regional proxy war and president assad, iran, hezbollah on one side and just about everybody else including our israeli friends on the other side. that by definition makes iranian influence and expansion of the conflict which would be otherwise a small civil war.
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the third thing that matters is the iranian nuclear program is in the background here. there are weapons of mass destruction program at the center of the debate about syria which is a chemical weapons program the syrians have. the iranians have their own nuclear programs which the u.s. worries could become a nuclear program. iranians will watch carefully to see how the u.s. reacts to syria's program of weapons of mass destruction to see how they figure out whether to move to a nuclear weapon program on their own turf. melissa: if it's a proxy bat well iran how does that change the obligation to get in? that is one of the points you made. in some ways if the assad regime false, iran may actually feel more isolatednd get more panicked. >> right. it is not a simple equation. if it were it would have been resolved by now. melissa: right. >> that's correct. on one hand, if president assad falls he is the iranians chief, in some ways the only real ally they have in the arab world.
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hezbollah not being a government but kind after militia. so they become more isolated. that weakens iranian state in many ways. but on the other hand, as you suggest it may make them feel more isolated and maybe a little more desperate and more in need of a security blanket. a nuclear weapon might provide that security blanket. if there is bad news in syria that hurts the iranians and might compel them forward on a nuclear track a little more, that is why there are no good easy answers in this game. >> said that the president has said it wouldn't be acceptable for syria to use chemical weapons just as he said it wouldn't be acceptable for iran to develop a nuclear weapon. >> right. melissa: he must ponder whether the credibility of the first statement will affect the credibility of the second. explain that. >> well, i mean, the reality is that, you know, it is hard for superpowers to bluff. if he said essentially there will be consequences for syria's use of chemical weapons, then the credibility of that, of, the
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president make as such a statement is on the line. i think we'll see in the next few days he will back the statement up with action. but iranians will be watching. this is a particular acute question right now. because at the moment, u.s. and new iranian government are considering under the new iranian president considering whether to get back into nuclear conversations. again these things are all complex. melissa: yeah. >> if there's a strike in syria will the iranian government want to go ahead with talks with the u.s. or will that scotch the deal? because they have to make their own protest statement. we're not going to engage in negotiations with you now, you just bombed our ally. on one hand you have to sort of prove you're tough. on the other hand you prove you're too tough you may blow up a chance to have meaningful negotiation with the iranians on their nuclear program now a new president is in place. this is a game of 3d chess in many ways. >> it is and assuming they would sit down in good faith and negotiate and you would get somewhere in those nuclear talks
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which is something on the surface we have hoped for a long time but a lot of people have thout is a futile hope. >> it might be a, might be a futile hope. i don't think there is any chance but to -- choice but to give the process a new try since the new president is in place. iranians want to get in the conversation, there i no doubt that international economic sanctions as they calm lighted over last -- accumulated over last several years is hurting the iranian economy. they may be a in a mood to deal than they wouldn't have been two years ago. only way you find out is get in a room and test the proposition. i don't know that the iranian regime is optimistic about that they will make decisions on their nuclear program on their own terms. in this game you have to find out especially if you maintain your support from an international position. melissa: gerry, thanks for your analys. >> sure, hpy to be with you. melissa: for today's fuel gauge
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report. oil gained by looming strikes against syria. crude soared 3% to settle at 109.01 a barrel. that is the highest level since february of last year. that is not good news. also pressuring crude prices, libya's oil crisis. armed militants should down one of libya's most critical pipelines. production is estimated at just 200,000 barrels a day. that is 1/8 of capacity. mass protests by workers have crippled libya's oil fields and for weeks now. japan's government taking emergency measures to deal with the fukushima nuclear plant. tokyo electric power has been struggling to contain leaks of highly radioactive water. the government says it will directly provide money and workers to assist cleanup efforts. all right, next on "money", if you followed the lead of bill ackman, dan lobe or carl ica this year, well you may have lost more than just your shirt. we'll tell you why the power of their money could hang you out to dry.
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melissa: no matter what time it is money is always on the move. shares of teach very getting a bump infter-hours. swung to a profit in the second quarter, topped expectations plus it made $490 million from a patent litigation settlement with cisco and google's motorola mobility. teach very says the company is on a past for sustained profitability. sounds good just as long as teach very doesn't miss recording real housewives, atlanta and new york, those are the bess oneses. bill ackman making headlines
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again today, pulling all his holdings out of ailing retailer jcpenney, ackman loss more than $500 million on the trade and dragging the stock down with him. it didn't exactly help shareholders which is, by the way, what activist investor shareholders are supposed to be doing. should you know if you're foowing the power of their money or not? we thanks to both of you for joining us. spencer, let me start with you. people try to pile on these activist investors and think that, you know, come hello or high water they will find a way to make money. they have done it. they're billionaires. if you followed ackman into jcpenney you lost 63%. if you followed dan lobe into sony you lost 8%. icahn into dell, you still lost money, about 2%, but a loss is a loss. what do you think about that? >> i really don't get the theory of following an activist investor because a lost what happens you end upcoming in long
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after the activist investor already establish ad position, usually from a very different price point because that active investor may not disclose that position until they're required to by regulatory authorities which could be a month or two. you end up being at a very different price point and you're playing on very uneven field you're the last in the door to get in the position and you're the last one out. melissa: you have a fund that basically follows the big guns. that is one of your main strategies. how do you do it to make money and avoid this loss? >> well, no investor bats a thousand. the reality is that investors, hedge fun or activists in general usually wait quite a long time to realize their investment thesis and markets go up and down. irrespective of the manager's entry point, sometimes you get better entry point than a manager. sometimes not. the trick is to diversify yr holdings across multiple managers so you don't put all your eggs in one basket and in
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the end the numbers really speak for themselves. our activist strategy over last three years is up 90%, versus 60% for the s&p 500. so, these can be very valuable. you have to know how to use them. melissa: spencer, what do you think about that? >> my thought in response to that, when you look how an active investor kind of plays the game, they come in and generally cause as lot of volatility in either direction. so that makes it very difficult for someone to try to follow a hedge fund into a trade because remember, hedge funds generally underperform the market even, activist investors tend to underperform the market as a dge fund entity. the fact that you're trying to piggyback on top of underperforming vehicle, it is better to follow the indices. those systematically and overtime outperformed hedge funds and active investors are included in that category. melissa: is that always the argument. you must hear that a lot. how do you respond to it? >> it is truings.
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for most investors who don't have access or manager selection skill it is better to follow the indices but i think using these 13-f holdings and alpha clone's approach we solved the two pain points for investors. we access high conviction ideas from some of the best arguably active managers in the world because the top quartile hedge fund performed much better than average. melissa: let me stop you. how do you access their ideas without inside information? how do you -- do you have a direct line into them? >> not not alga. melissa: how do you know before people know what they're thinking and best ideas they are. >> it is public information. any mager who manages more than $100 million of other people's money has to file form 13-fhr with the sec 45 days after the end of that every quarter. in that form they have to disclose every single long position they have at the end of that quarter. melissa: spencer's point it is
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too late by then. w isn't too late by then. >> as i say, based on our own performance results which use nothing but these filings and we come in, much after the investor, the manager, and leave after the manager, we're outperforming the, in case of our activist strategy the s&p 500 by 50%. and we run multiple strategies and all of them are doing very, very well. melissa: gentlemen, good debate. thanks for coming on. interesting ideas. thank you. >> thank you. melissa: we all want to make money. next on "money", living the high life in the big house? an infamous trader has his own man serve have not and even a balcony? i don't have a balcony. a balcony? we have all the details. at the end of the day it is all about money. ♪ ñ@ç@çpçpçpç÷ñoxmhmhyhyhyhy
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melissa: oh the life of an incarcerated white-collar criminal. balcony, private bathroom, your own personal manservant to fetch things for you always. we have the gossip. the "new york post" is reporting that is exactly the type of special treatment billionaire felon raj rajaratnam is getting in the slammer. those fors is refuting this story vehemently. to us though. if you believes it doesn't sound like raj is not having a hard time in the big house. it is all the word on wall street. to sort this out better, former federal prosecutor fred tecce. he is here with the inside scoop. this is battle royale of reporters right now. >> it has. melissa: let' address the original article first that came out in the post. they came to have an inside source in the prison, who is a snitch essentially they're callng him.
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reporting that raj is getting the star treatment. he is in a medical facility. it is unclear what malady he has. they say he has diabetes but still being held in, on the penthouse floor of a medical facility that is apparently, you know, cushy. dzhokhar tsarnaev is also in the same building on the top floor. they have balconies. they have their own private bathroom. the doors are not locked. he has someone, an american samoan eddie, this is claimed in the post, they got this from a quote, unquote, snitch, who is delightful guy, doing all kinds of things for him like a manservant. when raj needs something this guy gets it. what do you believe? >> first of all a couple things, a snitch in prison who i can believe, that is the first problem i have with the whole thing. secondly i think there is some kernel of truth. melissa: yeah. >> do you think there is some guy raj is giving $300 a month
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for commissary or giving money to his family outside of the prison? probably. but that goes on in prison all the time. let me tell you something, melissa. i can give you inside because i was not inside as a prisoner and i have been in a lot of prisons in mymy lifetime the word that never comes to mind is cushy and the word that never comes to mind is a penthouse. raj may have lived in a real penthouse on the upper east side. that is not the federal prison he is in now. you don't ever want to go in one of these places. go ahead, i'm sorry. melissa: the department of corrections did confirm he is in this federal medical center. >> correct, he is. melissa: why? there is only very sick people there, very old, inmates or, you know, people that are crippled. so why would he be in this facility? >> because that's where the bubureau of prisons or bop as we call them has designated him. when i was federal prosecutor that cooperated with me, and i
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would try to move heaven and earth for the bop to put them in places better than the other places. i could never do that. the bop designated him for some reason having to do with his medical condition. ultimately if his medical condition changes they will redesignate him. don't you worry about that. these guys have to keep a watch over an entire system and they can not give guys like raj rajaratnam special treatment because if they do, ultimately the inmates will be running the asylum regardless -- melissa: is there outdoor space in this facility? a lot of people know this facility. does he have a balcony? are the doors not locked? does he have a private bathroom? >> first of all federal prisons, all federal prison inmates have access to private bathrooms at some point and access to private showers. like i said there is some kernel of truth in the story but i think it is getting spun in a way i don't really think is accurate or quite frankly insightful what is really going on. they have outdoor facilities? yes, they're allowed to go outside all the time. melissa: i meant the balcony.
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you know what i meant. >> yeah i know. melissa: thanks for clearing that up. we appreciate it. next on "money" it was one of the great victories for women kind. billie jean king trounced 1973's battle of the sexes. was it all rigged by the mafia? say it ain't so. you can never have too much money. ♪
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touch. and our own adam shapiro. for a story everyone suck tag about the watercooler. the mafia manipulating matches, tennis matches. the legendary battle of sections match between billy jean king and bobby riggs was. he owed 100,000 grand the chum. all right, guys what you do i in? what do you think? >> this seemsretty ridiculous. billie jeaning says it ridiculous this 40 years later this is still today the most watched tennis match ever. you think about what happened back then the "battle of the sexes." and you think of the contemporary tennis players. venus williams, maria sharapova, would they be put in the situation and would anyone doubt they won a match like this? melissa: you're doubtful is bottom line. >> a little bit. melissa: what do you think?
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>> i'm shocked anyone think the mob could rig a 10 "miss match." the mob doesn -- it's a disservice to the mob. come on, it is 40 years later. can i win points with the female audience? melissa: sure. >> what are we celebrating yesterday, august 26th? anniversary of the ratification of the 19th amendment. that thing. that the ability for everyone to vote. melissa: yeah. >> but the whole thing is just crazy. but you know, to pay off $100,000 debt, i mean, just doesn't make sense. melissa: doesn't make sense to you. this came on outside the lines, which is is pen -- >> espn. melissa: great espn show actually. it is interesting they dug this person up. it was hal shaw. he was an assistant golf pro at a? country club. he said he overheard two infamous mobsters discussing rigs months best legendary match. riggs assured them he would go into the taping to pay off the
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debt t sounds reasonable. >> reasonable but i have discussions with people on stories like mr. madoff. melissa: right. >> these people and i have discussions if they stand outside my door and can overhear parts of that discussion and believe they heard something totally out of context which would be absolutely inaccurate. melissa: yeah. >> you heard me have discussions with people on the phone. you haven't, but that one's guilty and -- melissa: standing outside your office and i listen all the time. >> you just want the scotch. melissa: talk about, we're all journalists here. let's talk about the journalism of this. this is one guy, the reporter said, he looked into his eyes and he repeated the story over and over again and it never changed. it never faltered. i wouldn't have gone ahead and done the report if i didt believe him. as reporters, how do you feel about this? >> i mean obviously it's a well-researched story but -- melissa: just one person. >> right. but it just seems, everyone's talking about the obviously the "battle of the sexes." there was a recent documentary about this. it is on everyone's mind right now. it certainly plays into everyone
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is talking about, tennis obviously on everyone's mine. melissa: is it fair to do it for ratings? >> yes. melissa: his son said he did know mobsters. >> fair to do it for ratings. like putting miley cyrus on every web page, "new york times", it is fai melissa: at the end of the day its all about money. get a story out. thanks to both of you. great job. up next , "who made money today?" she sold her worst selling album of all time last year but she has just been named 2013's highest paid celebrity. i was shocked by this. don't move. we have the answer right after this. tweet me if you know who it is. you can never have too much money. who do you think it is? >> i thought oprah. melissa: no, you know of course who it is without question. >> i really thought it was oprah when you teased this. melissa: know, no.
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melissa: whether it's on wall street or main street, here is to make "money" today, everyone going long on the fears over the u.s. against syria. it's and the fear index rocketing up 12%. more than 20% in today's meanwhile, losing money, anyone who owns airlines. surging airlines caused severe turbulence. higher oil prices mean higher fuel costs. could rally airline stocks some oft -- stumbling today. united getting the worst of it. and take that, of prep. madonna, yes, madonna is 2013 highest paid celebrity. according to a new ranking madonna raked in $125 million over the past year. her album flopped, but her tour grossed more than $305 million. will she ever go out of vogue? that's all we have for you today. i hope you made "money" today.
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we will see right back here tomorrow. charles is making your market coming up next. i will see you tomorrow. the following is a paid advertisement for the best of the carol burnett show dvd collection. (tarzan yell) you laughed with her... you sang with her... you cherished your time with her... "who...me?" there's no star in hollywood more loveable... more talented... more entertaining than carol burnett. carol's legendary variety show won 25 emmys, and all of our hearts. it's as hilarious and spectacular today as it was the first time we saw it...
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