all over this story from the very beginning. he will join us live. adam: see where we stand on the dow, stocks on back from the highs of the day. nicole: we has in the back-and-forth action. a great run the last four weeks. neneuheisel the major averages. today is a different picture. dow jones industrials down. the nasdaq composite up 5 points and the s&p up 2 points. about one-tenth of 1% off the unchanged line. it shows some wait and see. we have a monthly jobs report. and i should mention we have a big ipo this week of twitter as well. that is really the environment we are in here overall as far as the major market averages. steel stocks are doing so well on analyst upgrade over at goldman sachs. up for the .5%, steel up 3% on

the day today. goldman sachs raised for example putting still dynamics to a buy from a sell. it shifted its rating. it was cautious originally but now the standout stocks that are worth keeping an eye on and buying as they say. adam: thank you, nicole. lori: a live look at the u.s. attorney's office in new york where in moments they are going to unveil insider trading plea deal with sac capital capping a multiyear insider-trading probe. we will bring you this live. charlie gasparino also on hand when the attorney general speaks. adam: we want to bring you the latest developments on blackberry. dennis kneale has been covering this. is this a surprise? dennis: it is a shocker. now it was down 16%.

the whole thing is what if they had a buyout and nobody even showed up? those stocks selling off on that because the buyout is over and replacing the ceo. it is hard to think of a ceo who has performed worse. he bet on a touchscreen smartphone when the real keyboard was blackberry mainstay. he bought a jet and the company was in trouble. let's jump up a few more paragraphs on that prompter. blackberry had agreed on a buyout from a large institutional shareholder, but fairfax had trouble raising the financing. so now they will loan a billion dollars to blackberry while they try to write itself. the big question is whether it can. sales fell, it came out huge and

kicking the tires at blackberry, but they passed on it. microsoft, facebook, samsung, lenovo and qualcomm reported to have looked at blackberry or talked to the guys over there and are nowhere to be seen. adam: what does fairfax gain from this? >> your profit doesn't go out of business and you go to zero. at some price it has be worth another bet. thousands of corporate events with millions upon millions coming in. you don't walk away from that but so far they're just not able to find the right partner. that is not your core competency. microsoft bought the wrong company. lori: this is a golden parachute. >> he tripled it to $56 million even as the trouble got worse

and sitting on the compensation committee to approve that deal was the ceo of fairfax financial which made a bid for a buyout. he should not have done that. what kind of bad. adam: we are awaiting the press conference with the u.s. attorney for the southern district of new york, very large settlement, $1.2 billion that as a c will be pleading guilty to some of the charges, but we want to bring into this discussion co professor for reaction to this and very simply, what do you think? this is not a surprise, is it? >> not at all. he has been very successful, now 3-for-3. each of those cases they held out, they resisted, he has won overwhelmingly. it will be followed up by an sec action that will probably bar

mr. cohen from life from serving as an investment advisor. they will probably be barred from serving as a public investment advisor for anybody but mr. cohen and his family. in the future they may bar him personally for life so i think this is going to be a story of just unmitigated success for the government on the insider-trading field. lori: he has not been barred as of yet. they are characterizing this as enabled and promoted insider-trading practices. so if this was more than publicity on the part of the government, why not write now kick cohen altogether out of the industry. speak out because he is not a defendant in this case. lori: why don't you think he is a defendant? >> this is a criminal case and they don't have criminal evidence that goes to mr. cohen. they have evidence various traders specifically

mr. steinberg who has been indicted and engaged in insider trading but nobody has been willing to testify against mr. steve cohen so the government cannot indict him. adam: i want to quote you from a national journal in september, 2012 you wrote the sec is settling cheaply with entities and ignore individuals of policy at parking tickets for securities fraud. you want to take that statement back? is this when we get the decision down the road? >> this is the department of justice today, not the sec be at adam: but everybody expects the sec to follow suit. speak out i think they are going to do that eventually. what i don't know is if the administration law judge hearing the case will grant a lifetime ban for basically failure to supervise your broker. it is one of the least serious

of the sec offenses. they may get what they are looking for and eventually they're going to get mr. steve cohen out of the brokerage business. but i don't think in general has used very high penalties. the statement you quoted me was about the general sec behavior toward most financial institutions and even in the london will case you don't see the sec suing any individual offices. lori: this is a victory for those look at this saying sac se cohen not able to buy himself out of this one. >> cohen will still have seven to $9 billion can trade for his own accounts. he is not coming out of this homeless, carlos and bankrupt. he is going to have a relatively happy economic existence. he had no choice in settling this case because if he waited for the convictions of the two officers, which is always a probability in a government case, they would be even higher

penalties for this is a plea bargain on the courthouse steps before the trials begin.çó in order to get a somewhat cheaper price. adam: what does it say they cannot get those two defendants to flip and they don't have the evidence they would need to get a criminal one indictment and conviction? >> it shows those two individuals are extremely loyal to mr. cohen. they may well pay for that because if they are convicted they could both face 10-year sentences. adam: were probably going to have in about two minutes, one of the assistances have come out, som so are still waiting fr him. they are going to take a victory lap, we get that. but who is the next target out there? >> there are a number of other cases that don't involve insider-trading. it is exemplary. they don't do nearly the same going for large financial institutions. to his credit did succeed last

week bringing charges against an individual jury resolved in his favor in the bank of america case but the sec still seems risk-averse. adam: ask you about the department of justice? jpmorgan chase, has this bank gotten away from highway robbery? >> there are some legitimate issues about the fdic and what it is entitled to and what it has to guarantee. but basically we have already seen a $5 billion settlement, and we will probably see a settlement with the government. adam: whereabouts do have them in just a second. here he is. speak out this past july we filed a criminal indictment against for companies for engaging in insider trading that was substantial, pervasive and on a scale without presidents in the history of hedge funds. three months later we are here

to announce a resolution that is matching in this magnitude. all of the charged sac companies have agreed to plead guilty, all have agreed to wind down and close outside investment businesses and all have agreed collectively to pay total fines and penalties in the record amount of $1.8 billion. today's agreements if approved would resolve the two cases brought by the government against as a c in july both the criminal indictment against the companies and separate civil forfeiture and money laundering action as well. both agreements were set this point lori: district court judges presiding over those cases for their review and their approval. the plea agreement announced today moreover is solely between this office and the sac companies and no individuals,

does not include pleas of guilty any individuals or any criminal protections for immunity for any individuals going forward. let me also stress that individual defendants who have been charged and are awaiting trial are presumed to be innocent and of the plea agreement announced today does not affect that presumption in any way. before we discuss the agreement in more detail, let me injured as our in this investigation and in this prosecution. i am joined and so often in cases of this magnitude and importance by the fbi led by george here in new york. today the fbi is represented by april brooks, special agent in charge of the division. i want to thank them for their dedication and for the dedication of their teams of fbi agents, notably supervisors. and also special agents.

for their hard work and assistance. we would not be there for the dedication and hard work. i also want to thank the attorneys commission working so closely on so many different aspects of this investigation coordinated nicely with them as we always do. i especially want to thank and acknowledge the dedicated career prosecutors to my right who have made it possible. they are handling the prosecution on the criminal side and their chiefs, also christine and smith for the aspect of the case as well as their chief of asset. so let me take just a couple of minutes to go through and talk about the particulars of today's agreement with the sac capital companies. let me first make clear what we

are announcing today that the government and the defendants have reached an agreement with one another. it is now for the court to independently consider those agreements and the agreements between the parties have no effect unless and until the court grants approval. the main features of the agreements are fairly straightforward and summarized in a chart to my right. if you take a look. on july 21 there were five counts. the total penalties-- i'll try to speak as loud as i can. they are divided as follows as described in the papers sent to the court today. $900 million fine in connection with the criminal case. $900 million fine with respect to the criminal case,

$900 million resolution with respect to the civil case. which means a total of $1.8 billion. as you may appreciate the security and exchange commission reached agreement with sac capital and those companies to the tune of $616 million based on conduct overlapping some of the kind that we allege in our civil money laundering complaint. and so if you subtract that out according to the agreement we had, a credit for that so the total additional payment beyond what has already been agreed to his $1.184 billion. other key terms of the agreement are that the entities agree to wind down in orderly fashion investment advisory business in a way and a timetable to be approved by the sec. they've agreed to accept the maximum term of ovation after pleading guilty of five years, and have agreed to maintain our approval a compliance consultant so that person can make sure

everything is going as it should go at the entities durq time of their winds down. there is another key point worth noting about. the financial penalties. its burden will not fall on third-party investors. the sac companies have made clear no outside investment money will be used to pay the 1.85 ilion dollars penalty. settlement terms provide for an orderly wind down and payment schedule of this record penalty to minimize any market disruption. i should also stress neither sac nor any person paying any portion of the $1.8 billion penalty will be permitted to claim any tax deduction or tax benefit in connection with this payment. so that is what is in the agreement. often as is the case here in addition to agreeing what is in their agreement it is important to note what is not in theywn agreement. there is no immunity from prosecution for any person as i mentioned.

as i said, this agreement does not have any binding effect on any individuals at all charged or uncharged so while the agreement may and the prosecution of the companies with respect to individuals at this hedge fund or countless other financial institutions to buy and sell securities, we will continue to pursue insider-trading investigations and follow the facts wherever they lead an investigation on the criminal side remains ongoing. as i said just about four years ago at the time of our first major insider-trading arrest, grade sometimes is not good, and there are at least 75 convicted insider-trading defendants who today would likely agree, but individual guilt is not the whole of our mission. sometimes institutions needs to be held accountable yet no institution should rest easy in

the belief it is too big to jail. it is a moral hazard adjust to society can ill afford. law enforcement should not shy away from holding institutions responsible when it is justified and necessary for both deterrence and accountability whether the misbehaving corporation is a hedge fund or a commercial bank or a manufacturer of a popular product because sometimes institutional punishment is essential to serve justice and deter misconduct. today one of the world's largest and most powerful hedge funds agreed to plead guilty by shutting down the business and pay the largest fine history for insider-trading essentials. that is the just and appropriate price in our view for the pervasive and unprecedented misconduct that occurred here. let me call to the podium our

partner from the fbi. >> good afternoon. in 2006 with new information of unbridled information trading on hedge funds, the fbi went to work. after examining trading anomalies, poring over documents, conducting surveillances and making a first approach to a key target, that individual began cooperating with the government. what started with a key cooperator led to thousands of hours of relentless investigative work by a team of fbi agents uncovering an extensive network trafficking insider information throughout the hedge fund industry. a network that has been chronicled by many of you.çó the result, in part, brought today's plea and the latest step in the largest insider-trading investigation in history. none of this would have been possible without dedicated

prosecutors willing to bring charges here in the southern district led by u.s. attorney and deputy attorney. i would like to recognize assistant and states attorneys and their chiefs. i would also like to recognize the team from my office. fbi special agents. i also want to emphasize today's announcement has no effect on any individual awaiting trials. those defendants are presumed innocent until determined otherwise. what sac capital's plea demonstrates is cheating and breaking the law are not only permitted but allowed to persist. sac focus on hiring the best talent, talent who was equipped with extensive network to circumvent traditional lines of

communication. talent who would be prepared to get confidential information to feel their illicit trade. sac didn't just break the law, other illegal activity was involved in insider trading that was substantial, pervasive and on a scale without known precedents according to the july indictment. nothing short of institutional failure. today's agreement, sac capital will plead guilty to all five counts in the indictment. the result is $1.8 billion in fine and forfeiture. the largest penalty in an insider-trading ever. more importantly sac capital will terminate investigations and be required to have real genuine compliance overseen by an independent expert. in layman's terms, sac will no longer be able to invest anybody's money but their own. as today's plea illustrates, sac

institutionalized the practices by cultivating a culture of corporate corruption. to those on the street who attribute his character to gordon gecko. principles are as important as your profit. the problem of insider-trading israel and for companies that willfully turn a blind eye beyond notice, commack, be on notice. how your companies make money is just as important as how much they make. today is not the end. investigation into insider trading on wall street, on main street and hedge funds and experts networking firms and anywhere else continues. we will relentlessly pursue this anticompetitive criminal behavior until every portfolio manager, every trading desk, every hedge fund owner stopped trading on insider information. thank you.

>> thank you, april. happy to take your questions. today's announcement is in respect to the companies charged by this office on july 25 and resolution is limited to those companies and as i said before and will repeat again, there is no immunity protection of individuals from criminal prosecution or investigation. it means as it always means in any criminal case, if somebody misbehaves, there is additional penalties that can be brought to bear. i will refer you to the plea agreement itself to play that out. [inaudible] speak of the agreement is them to plead guilty but appropriate

corporate representative at a time the judge or the judge approves the agreement would set sometime in the future, but yes. that can all happen in one proceeding. about how that judg judge woulde to handle it here. sometimes plea agreements are corporations, this time it is a straight plea. >> [inaudible] >> i don't remember the answer to the last question, i will refer you to the document. where does the money go? it goes to the united states treasury independent with claims are made be distributed thereafter. it all goes to the same place.

it is used in the same way all money forfeited in criminal penalties, in that same fund. >> as a defendant, i know this does happen. can you explain to us how the companies are almost destroyed. >> what i make clear in the remarks and with the companies have made clear is that obviously this money that exists in corporations and sometimes bound up in securities and sometimes held in part in cash, made clear wherever this is coming from, it is not coming from the holdings held by outside investors in this fund. you can draw your conclusion to what that means then.

>> if it were to reconfirm, he would still be suspect to those compliance? >> these are proposed agreements between us and the sac entities. it has to be approved by the court said nothing is triggered until there is an approval by the court. if you take a look at the plea agreement and what page it is at, within 10 days of sentenci sentencing, there is supposed to be a discussion about who the consultant should be and that person has not been selected yet. again, there is no resolution with respect to any individual like i made clear. if an individual decides he or she who had been associated with sac capital decides he or she wants to open up an new hedge fund, that person would have to go through the approval process with the sec.

the sec has a pending administrative action for failure to supervise against the principle of sac capital and so that person would have to get the approval to do something different outside of the sac entities. >> [inaudible] speak of the entities will cease to exist at that point. our agreement says nothing to them being able to manage money. it is in respect to these companies. the sec is a primary regulator of this consequence, has a pending action against sac capital and that case has not yet been resolved. >> how would you describe the victims in this case? >> as i have said many times, there are all sort of victims in this case. they include everyone who believes the market should be fair and the same rules apply to

everyone. other victims include potentially companies who had individuals stealing their information about what kind of money they were making. and selling it to people in advance of what was becoming public. another set of victims in the broad sense and most dedicated by the results today if it is approved by the district court judges. they are honest in the business and in hedge funds and many, many more of them than there are dishonest people and those people have indicated when you take the people in the institution's not by the rules off the playing field, those people doing it the right way and the honest way with integrity care about making sure they are doing things by the rules, their activity is vindicated in that regard. >> is it a fair penalty? >> you take everything into account.

given the amount of insider-trading activity we have alleged with respect to those entities over the course of a long period of time, it talks about a long period of time, different securities, different people, a lot of sectors and if you look at the amount of money that the companies have made, this seemed to us a fair but steep break and equitable resolution so it is tough several orders of magnitude larger and identified avoided losses and gains made by the companies over the indictment. it also represents something like 20 to 25% of the remaining funds in the hedge fund as a whole. if you look at the sentencing guidelines applicable to this case which are not binding but discretionary and they mean something, i believe sac set forth the sentencing guidelines range in the order on the criminal side 800 something million dollars so we have shown

a penalty in excess of what the maximum you might calculate is. if you take those things together in order to send a message of deterrence to make sure proper exacting of the penalty given the magnitude of the activity and insider-trading conduct, this seemed to us to be as we said in our letter steep but fair. >> you take into effect they are still investigating or not charging the person? [inaudible] >> what has happened today is a very substantial and important thing. it is a rare thing for any entity to be held to account as an entity, and that has been historically true for a number of years now. it's been even more rare for that entity to plead guilty to everything that it has been charged with, and not only rare, but unprecedented to have a

criminal fine and penalty of the magnitude that we have described. as i have said, a number of people have been charged and convicted, and the investigation remains ongoing. and we are not shy in the retiring people. these folks aren't either. and we're not unaggressive. and we bring cases when we have proof beyond a reasonable doubt that we can convince a jury unanimously of someone's criminal guilt, and when we get to that point with respect to anyone whether it's at the to be, the bottom or the -- at the top, the bottom or the middle, we bring the case at that time. last question. >> okay, you're listening to the u.s. attorney on, basically, summing up why they've gone ahead and agreed to the settlement with steve cohen's sac capital. individuals should stay on notice here, nobody's being charged directly, this is all against the firm as we've been listening to the testimony. adam: right. no criminal protection or immunity. charlie gasparino, got to ask

you a quick question. so steve cohen, the man who created sac, the firm who is pleading guilty, not going to jail and gets to keep his fortune. sound like justice to you? >> you know what's not justice? me standing out here in the cold, and i'll tell you, we picked the worst day of the year to hold this conference of. i'm underwhelmed by this. it's not really a $1.8 billion settlement, it's a $1.2 billion. i've never seen an agency like the u.s. attorney's office of the southern district take another agency's fine, which is the sec, and credit against it. it sounds absurd that they're doing it. that's one thing. the other thing is, let's be honest here, cohen has not been indicted, he's not barred, he could technically start another hedge fund. now, we know there's an outstanding sec case against him for failure to supervise, but he's fighting that. to technically, sac capital advisers and its various names, they're out of business, but steve cohen could come out and

start the number three hedge fund, and he could apply for it, and, you know,s there a chance -- there's a chance he gets approved. he's been charged. he's not convicted of anything. so that's the other thing. you know, but here's the bottom line, this clearly doesn't end the bad news for steve cohen. you know, we're going to have two trials coming up of former sac capital adviser, money managers, and, you know, steve cohen hasn't been charged, but, you know, we're going to be talking about steve cohen throughout those two trials. i think steinberg's trial starts this november, and i think the other begins next year. so we're going to be talking a lot about sac and, obviously, they continue to pursue steve cohen as a potential target. adam: with respect to individuals, the investigation remains ongoing. those are the words, no criminal protection or immunity. is that a direct message to steve cohen? >> oh, yeah. yeah, no doubt about it. you know, i think that they

still hold out hope that maybe steinberg or martoma looking at multiple years in jail, they could land him in jail for 12 years, that they may flip, you know, and provide evidence that could allow them to bring charges against steve cohen. i mean, there's no doubt that, listen, when you go after a firm like they have here, and like i say, i'm somewhat underwhelmed because they're trying to say it's $1.8, but it's really $1.2. when you put a firm out of business, if you say it's a veritable magnet for insider trading, you know, the guy at the top you've got to think has done something wrong, and i've talked to enough u.s. attorneys and fbi agents that have looked at this where they believe -- i'm not saying i believe -- they believe steve cohen is guilty. lori: hey, charlie, bundle up. we're going to run up against a break here. we're going to continue the conversation on the other side, okay? charlie gasparino there. busy day for the department of justice, also johnson & johnson

agreeing as well to pay up the federal investigation into its marketing practices. adam: and it's not just this week's ipo that has everyone clamoring over twitter. we're going to tell you which celebrity is sitting pretty at the top of the list next. [ male announcer ] how do you get your boce?

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lori: let's get you updated on the markets this monday afternoon, we head to the floor of the new york stock exchange and nicole petallides. so, nicole, you are watching johnson & johnson today. >> reporter: of course, in addition to sac capital, and we're watching it today because this is something that we're watching with the department of justice. it was one of the largest health care fraud settlements in u.s. history. onson and johnson, dow component, will pay $2.2 billion to end both civil and criminal investigations into the kickbacks that pharmacists and the marketing of pharmaceuticals

for off-label uses, according to the attorney general. it turns out we'll continue to follow it, but down 1% for j&j, and this is for drugs for dementia, schizophrenia and the like. back to you. lori: see you soon. adam: it seems like everybody wants a piece of twitter, the social network supposedly closing its books early on strong demand, but does its aggressive pricing put twitter at risk? what do you think? >> well, at least they're not trading on nasdaq. despite getting hit with a lawsuit by ibm, admitting that this morning, twitter could now be worth to up to $13.6 billion thanks to a new pricing of $23-$25 up from $17-$20 earlier. but investors still have fundamental questions about twitter's financials. a poll of 29 brokers and financial advisers revealed 23

of them do not recommend buying twitter shares. one of the reasons why, twitter's international revenue problem. potential investors at the road show here in new york last week didn't like that three-quarters of twitter's users are overseas while only one-quarter of its revenue comes from international advertisers. but as we've reported, those numbers are improving, in quarters one and two of this year twitter eclipsed its entire 2012 international ad revenue bringing in $62.8 million. but in the updated f1 filing, twitter shows it feels threatened citing increased competition from local web sites, local applications and services overseas including china, line in japan and south korea which may have expanded and may continue to expand. so twitter's trying to fix this problem by selling promotive products in more than 20 markets, forging relationships with tv networks in asia, and they're trying to show that it can make that money.

adam? adam: it's all about making money, whether they can do that going forward. we'll find out. a lot of people will buy in, but they might get burned. twitter has a new most popular user, right? >> yes, they do. katy perry beat out justin bieber for the most followers of any user. when i last checked, katy perry kicking justin bieber's butt by 25,000, sitting pretty at 46.5 million followers. adam, what would you do with that many followers? adam: i would say i jumped the shark. lori: especially considering the tabloid news on justin beer, did you see those pictures? trying to sneak out of a brothel? no joke. it was in "the new york post." >> yikes. lori: under a sheet, no less. adam: thank you, jo. from an investing story. lori: always. divesting to keep the in u.s. air, american airlines

merger talks as the department of justice makes demands. adam: but first, a glimpse into the future of work. no id badge, no keys, no passwords. the ceo behind the idea and how you prove you are really you with just a tap of the finger. ♪ ♪ [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the tradg floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade.

♪ ♪ >> i'm dennis neil with your fox business brief. sac capital advisers reaches a

plea deal with u.s. prosecutors, the hedge fund group will pay $1.2 billion in criminal penalties, will plead guilty to insider trading and will agree to terminate its investor advisory business. the agreement has been sent to judges for approval. vanguard's total stock market index fund now the world's largest mutual fund with $288 billion in assets, beating the pimco total return fund after investors pulled $4.4 billion out of that fund last month. u.s. factory orders jumped 1.7% in september matching estimates according to the commerce d.. the gain driven by a nearly 58% jump in demand for commercial aircraft in september over august. and that is the latest from fox business network, giving you the power to prosper.

lori: stock alert, watching shares of us airways, shares surging on new developments in its merger with american airlines. attorney general eric holder says he wants the companies to glee to divestitures at key airports nod -- in order to get this deal approve. slots at reagan international airport and others around the country. he hopes the antitrust suit will be settled before trial. adam: mobile software company micro strategy and its 3,000 employees became the first company to use a mobile phone app to get access to parking, elevators, offices, even your computer. the company's founder and ceo michael sailor joins me with how all of this works. congratulations, because your stock is trading up today. i know that you've been on a swing, but tell me about this. this is called usher, correct? >> yes, adam. the exciting thing right now is with a billion smartphones being sold every year, we're moving

into the era of corporate identity, and usher's a platform to replace a corporate id card and place it on a smartphone. adam: for instance, here at fox i've got my badge, and i always dismisplace this. as long as somehow this badge would somehow be on the phone, and i would use that going forward? >> well, i mean, the beauty of this is that which the badge dematerializes on software in the phone, you can load it on your phone or another phone. if you lose your phone, you can reload it. you can present the badge a thousand miles away to someone on the other end of a phone line, or you can walk toward the elevator, and it'll unlock because it recognizes you coming by blue tooth. adam: and the important information is secure in your cloud, is that correct? >> well, completely encrypted on the phone or in a corporate cloud. adam: so what happens as i've also done if i lose my phone or leave it in a taxi cab? i don't think news corporation

or 21st century fox wants somebody getting past the entrance there. >> well, you know, the beauty is people lose credentials all the time, millions and millions of them every single week, but if i lose my phone and the person that picks it up doesn't have my fingerprint, they're not going to be able to launch this phone. adam: is when i download the app, say i download it on to a non-- because i know microsoft has its fingerprint identity stuff, but if i download the app onto a non-iphone device, i still have to use my fingerprint or retina scan, does that get access the way we're talking? >> you can lock your corporate identity with a simple pin code or with a voiceprint, oring lock it with a more sophisticated password or with an eye scan or fingerprint scan, lots of ways to do it. adam: who other than you guys, i imagine you've got clients lining up to do this, are there any names you can share with us? >> right now we're in the process of rolling out pilots with some state university

systems, state governments, a number of corporations. i'm not at liberty to speak about them in particular, but suffice it to say that there are millions of organizations that have identification systems right now. and over the next decade i would expect that all of those identifications are going to dematerialize to software on a smartphone. adam: well, what's the advantage to that as opposed to my having to change the password which i have to do, by the way, every 14 days on my computer at work? >> well, everybody hates having to remember passwords, so that deters customers or employees from wanting to use the computer systems in the first place, and they tend to write the passwords down or give them to their friends or secretaries to log in for them. if you use your phone as your credential, you can get into the system in a split second, and no one can steal or guess the password. adam: we wish you the west and congrat-- the best and congratulations. lori: thank you for not bringing your entire man bag on set. i see how you roll.

adam: my man bag. lori: everything but the sink -- adam: it's a satchel. you know, you just -- man bag. i'm going to take the band-aid off and gross you out. lori: do your worst, adam. adam: next, the business behind blockbuster movies like the godfather, star wars and all of the james bond movies. lori: how the firemen's fund is keeping the film cameras rolling. ♪ ♪ so i can reach ally bank 24/7, but there are no branches? 24/7. i'm sorry, i'm just really reluctant to try new things. really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save.

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is there, assessing any risks that could shut down production and costs. andrew torrance is the ceo and president of firemen's fund. welcome, andrew. >> good morning, lori. lori: what kinds of incidents, the kinds of losses you might cover? >> >> well, i think just about the worst incident we can cover is if an actor gets injured on set or worse still, dies. that's the worst thing. but then you get much more run of the mill losses where equipment gets damaged, films can get lost, so there's a whole variety of things that can go wrong which firemen's fund is there to insure. lori: what's the most expensive policy you've sold on a particular actor, and name that actor. >> well, i can't talk about specifics clearly because that's very confidential. but equally, i mean, perhaps i can give you an idea of the largest claim that we've ever played which was back in the

1990s when john candy died on the wagons east set, and that was a $15 million claim. so you can see the extent of the exposures we insure. lori: can you give me a sense of who the actors and actresses are that that, perhaps, would demand the highest coverage? i mean, we read tabloids, so we could probably imagine, i suppose, a lindsey lohan type or perhaps an action actor or actress, is that fair to say? >> well, as i say, i can't talk about -- lori: okay. >> -- specifickings. i'll leave that to your viewers' imaginations. lori: tell me more about the business. what percentage, if you will, of an entire movie budget do producers dedicate to insurance coverage? >> well, it varies depending on the nature of the movie, but probably you're looking at between sort of 1 and 3% of the total cost of the film being devoted to the insurance coverage. so, i mean, that can drive premiums in the $2 million to $4 million per film mark. lori: and how do you determine what that premium will be? do you look at where the film is

being shot? who's in the movie? if it's an action movie, it's a drama movie, etc. >> well, there's a whole range of things, basically, that really make up the premium, but as you say, if the movie involves a lot of stunt work, for example, that can be dangerous. if it involves overseas locations, that will tend to drive up the cost. these days natural catastrophes, we need to be very aware of. so if it's being filmed in a location that's vulnerable to natural catastrophes, again, that can drive up the cost of premiums. lori: and do -- who do you negotiate with, if at all? is it the executive producer? the director? how is the decision made what kind of coverage will be pressured? >> -- purchased. >> it's very much done with the executive producer. and i think one of the great things, i mean, firemen's fund is the largest entertainment

insurer in the usa, and i think one of the great things we bring to this business is that we have the expertise in the our risk control area to really advise film makers on how they can get the film through on time, on budget with minimum risk. so we do more than just take the premiums, we really look to help people manage the exposures and minimize the risk in the film. lori: interesting. interesting business that you have, and thank you for sharing it with us. andrew torrance, appreciate it. adam: more ahead from charlie gasparino on whether steve cohen can rebuild after his sac capital is forced to pay the largest insider trading is settlement of. ever. and hanging up on blackberry, the company forced to kill a plan to sell itself. our twitter question, time for blackberry to call it a day? tweet us your response just ahead with tracy byrnes and ashley webster next. ♪ ♪

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tracy: good afternoon, i'm tracy byrnes. ashley: i'm ashley webster. hanging up on blackberry. shares falling like a rock as the company is forced to kill a plan to sell itself and goes on to replace the ceo. the stock as you an see is down. our twitter question for the day, is it time for blackberry to call it a day? tweet us your response ahead. tracy: demand so high for twitter's ipo on thursday the company is actually upping the price of the offering. we have an ipo czar with us today. david menlow on whether or not it is the right move. ashley: follow the bouncing bluebird. charlie gasparino coming moments ago from the scene of the justice department news conference and whether seesteve cohen can rebuild after the his sac capital is forced to pay the largest insider trading settlement ever. we have all the breaking news and we're all over it.

tracy: that can't be good. time for stocks as we do every 15 minutes. nicole petallides on the floor of the new york stock exchange. the market is not doing a whole heck of a lot, nicole, isn't it? >> as you noted not too far off the unchanged line. the friday's monthly jobs report delayed because of a partial shutdown of the government. we'll look forward to that. right now the dow jones industrials are up eight. nasdaq is up almost .2 of a percent and the s&p up one quarter of a 1%. the trend has been to the upside. all ice have been on sac capital and the u.s. attorney now finding that guilty plea. move on to johnson & johnson something i definitely wanted to cover here for you as we watch j&j. they will have to pay out $2.2 billion settlement, relating to the marketing of some of their drugs and doctors and pharmacists for everything from dementia ptosis r schizophrenia so they will have to pay out. the stock to the downside, 3/4

of 1%, johnson & johnson. back to you. ashley: nicole, thank you. breaking news. new york attorney general peter bharara, outlining details of the -- >> all the charged sac companies agreed to pay guilty. they agreed to wind down and close out the outside investment businesses and all agreed collectively to pay total fines in the record amount of $1.8 billion. >> charlie gasparino, author of, circle of friends, live at the manhattan attorney's office with more on this settlement. charlie. >> first i would like to say this is not a $1.8 billion settlement. this is a $1.2 billion settlement. i don't know why they keep use it. takeing a previous settlement with the securities & exchange commission with sac capital and throwing 600 million from that into this. don't ask me why they're doing it. looks like a little publicity on

part of the u.s. attorney, peter baja a. preet bharara. the criminal investigation into steve cohen is apparently ongoing. preet bharara did not say that directly but sure implied it. i can tell you based on my sources this thing kepts going. they're still looking to bring charges against steve cohen, particularly if they get two people to flip, michael steinberg, former sac capital money manager and mathew martoma. they're trying to get those two guys to flip. if those guys flip against cohen you will likely see a indictment against steve cohen. ashley: charlie, thank you. we have ron gaffer in, former sec enforcement attorney on steve cohen and his future. tracy: another big story, tweeter raising the ipo price from 23 to $25. that is up from the original 17

to $20 price. our next guest thinks it is not overpriced at all. what? david menlow here with us right now. we call you the ipo czar, because you know this stuff. not overpriceed? >> i don't believe the stock is overpriced. it came in at a realistic evaluation at 17 to 20 probably talked about everybody you had as a guest i. i was on a month ago. tracy: yeah. >> dennis kneale and i said, the deal will be a 20-dollar offering when they first bring it to the market. 22, to 24 on a bump and go out the door on 25. tracy: talk about where they're getting revenues from. 13 -- 4 of twitter users from overseas. 3/4 of those from overseas. is that an opportunity for them? >> incredible opportunity. one the biggest hindrances to everybody's optimism they're looking at the deal as flat offering. what do we have right now? what we evaluate with the company. what they don't realize, a billion six plus billion dollars from the offering.

they already cleared a billion dollar credit line. so they are going to grow inorganically. they will buy technology and squeeze new things. tracy: is china a threat at all? >> china is getting a little bit too much attention from what twitter is about at this point. there are some competitors out there. where they're headed and rest of the world will -- tracy: who suing this these days? i did my very own informal survey of teenagers and they're not. so who is using isn't people like me who use it as a news feed? >> well i guess everybody that has the adrenaline needle stuck in their arm. if they have to have news the moment it happens and twitter seems to be the standard platform. tracy: if i could get my kids to sneak in 140 characters oar less that would make my day. what would be the six-month lockup what they're doing with the employees but you're saying this is a three-month lockup. >> there is a traditional lock-up, the insiders own stock at average of $2.22 have the

ability to sell but wait six months. what twitter is doing, giving employees and not officers and directors a chance to get out after three months. tracy: sell for tax purposes beware if you're getting in three months later there might be a flood of share. >> but that is not something that will depress the stock. tracy: morgan stanley and facebook on,. >> no contest. tracy: why. >> marge morgan stanley just laid prostate on the ground and, facebook do whatever you want to do. we're just glad to have you. goldman is very professional. not that morgan isn't but doing this in very reserved and very choreographed way, no drama, no excitement on this. tracy: what about all the fileing? they want no changes, no comments from the see. ec because of -- sec because of quiet period. stuff like that. do you worry about that when it finally hits the market. >> i don't think it's a hindrance to the particular offering. i don't like jobs act related to

quiet filings. tracy: right. >> sec says full disclosure, get it out there. if you had bad three or four or five years show how you've grown. tracy: it is hard for bums like me to get it off the street. do i wait to buy this when it is available? >> with all the negative people speaking about particular offering. you will not get the double, triple situation. tracy: on first day, that is okay. >> let the stock come out. thrill will be plenty of people who say it will not be another facebook. i will not get stuck as the stock goes down. we'll probably have selling that comes out this week when it happens. for anybody that wants to buy, take a small percentage whatever it is you want as a core position and buy some. if it goes down a little bit further, fine. i don't think the stock goes below issue. tracy: david, i'm glad you're here. i like the new title, czar of ipos. we'll go with that. ashley: looks good on the business card that's for sure. tracy: we'll make it. shirts. ashley: google fighting back against nsa data collection. in tech minute we'll tell you

why google chief eric schmidt is taking his case directly to president obama. tracy: we go one-on-one with former cia director james woolsey, and on why america can not afford to give up on the spy program. ashley: you heard about cash bow building to win races but what about mcnugget building? tracy: regimen is paying off. ashley: gives credit for some of his medals, a bolt of lightning. >> my arteries are already hurting. look how oil is trading. for compute muters like me, hovering at 95 bucks a barrel. that is actually good for us drivers. the dow is up 11 points. we'll be right back. ♪

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partners said perhaps a canadian government bailout would have been a better solution in this situation. he joins me now. let's begin there. you think the canadian government could have come in and propped up blackberry? >> ashley this is the bad day for shareholders employees, it would have been better to go public, show customers they will be a ongoing company and reduce the drumbeat of negativity. we'll see cash they're burning and debay in businesses. you have to wonder if you're a customer of black per which will they get chopped up and sold off in pieces? ashley: what is wrong with the latest effort to sell the company. >> we don't know specifically. ashley: what do you think? >> letter of intent was sent there and there was no financing behind it. if you're a bank and being asked to lend $3 billion to predict the cash flows going forward for blackberry is a very difficult thing because who knows how many more units will sell and what the cash flows could look like.

why i said, you know what? if the canadian government backstopped the loans and we'll take responsibility for it? it is a strategic asset for the company and waterloo. you have to feel sorry for these people who trying to make a go of it. ashley: it has been on the wall for while now, hasn't it? >> it has and -- ashley: what happens now is the big question? >> it is interesting because they get this billion dollars in. john chen comes in. he will be the chairman of the board. ashley: good move, do you think? >> interim ceo as well. he will conduct a search. you know what will happen? i seen this movie many times. he conducted the search and i found the right candidate and it is me. ashley: it does feel that way. kind of a turnaround guy. he has that track record. >> enterprise software. ashley: good luck with blackberry. >> enterprise software guy, right? ashley: yeah. >> still strength in the enterprise. this is another major pivot for the company and they don't have much time left. they get the billion dollars. and maybe shut down the hardware

business. ashley: buys them time. >> buys them time but nothing else earnings splitting up the company seems more likely, would you agree? >> i would agree. certainly that's on the table. first thing we have to see, does john chen become the ceo? is this whole interim ceo thing just, they do a token search and he takes it over and wants to focus in on enterprise software. that is most likely the case. if that happens there are certain pieces of business they don't need like the happened set business. ashley: thorsten heins out, no big surprise? >> mild surprise, actually. ashley: why? because the company wasn't going anywhere. >> correct but everyone thought that perhaps he would be able to find a buyer, right? at the end of the day you only needed, you know, 3 to 5 billion to get the deal done? ashley: that's all? >> if u.s. companies with their offshore cash balance sheets, just goes to show you how value people are seeing there. ashley: well that is the point, is it worth the investment?

going private would have been good because you get out of the public eye. you really focus on turning this thing around. >> absolutely, tracy. close to break even. still north of 70 million blackberries being used. ashley: yeah. >> a chance to focus on enterprise and pro-consumer customer base. ashley: how long can this go on do you think? >> the bells are clanging right? >> exactly. >> they have another billion. it is convertible debt bond. >> right. >> has a 10-dollar strike in it, right? i don't think those guys will be converting anytime soon on the $10. 6% coupon. if i were the fairfax financial folks and already had close to 10% equity position, taking on another 250 million? puting a lot of their assets into this company. ashley: they certainly are. we'll see how that works out. thanks very much for being here. >> thanks for having me. ashley: thank you. tracy: boy, tired just listening to you guys. ashley: that is blackberry. what more can you say? tracy: it is quarter past.

time to check on the markets. nicole petallides on the floor of the new york stock exchange. nicole, what is going on? >> looking at some steel stocks today and u.s. steel and steel dynamics actually hitting some 52-week highs and this is on positive news from goldman sachs, basically a call on steel that is really good news for some of steel-makers. look at ak steel, up 10%. u.s. steel is up 4 1/2%. they basically talk about the supply demand fundamentals, seeing improvement there and heading into a sustainable recovery in the coming years going forward. so they raised a group. originally cautious on the group. raised it to neutral. some of these stocks they actually put buy ratings on particular stocks. you're seeing them higher. ak steel up 10% at the moment. back to you. tracy: thank you, nicole. we'll check in with you again in 15 minutes. ashley: sac capital hit with the largest insider trading fine ever but are charges about to, filed against company managers? we're live with sec former

enforcement attorney next. tracy: air traffic back to normal at los angeles international airport as investigators why a gunman went on a rampage and killed a tsa agent. that is in your fox minute ahead. ashley: how is the green back doing against all the foreign currencies? dollar weaker across the board. all the currencies are moving higheas been under pressure recently is starting to gain and the u.k. pound and mexican peso. and even japanese yen. we'll be right back. [ female announcer ] who are we?

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>> 21 minutes past the hour i'm lauren green with your fox news minute. the fbi says the man accused of opening fire at lax last friday planned the shooting rampage. he had a handwritten letter in his duffel bag saying he had intentions killing multiple tsa agents. wonk tsa agent was killed. multiple others were injured. anti-american rallies at the former american embassy in tehran. protesters chanted, death to america. it marked the beginning of the iran hostage crisis when 52 americans were held hostage for 444 days. police had their hands full when travelers spot ad small

alligator at o'hare international airport. the two-foot long gator was seen under an escalator in terminal 3. police use ad broom and box to capture the animal. the alligator was likely carried into the airport and abandoned. those are the headlines on the fox business network. tracy: that is terrible. that is probably somebody's pet. you know what that is? a mother wants to get rid of an alligator because she doesn't want her kid to have it in the house. >> getting lost at the airport is good excuse. tracy: now i think about it i would do that. lauren green. thank you very much. we have breaking news for you now. a landmark settlement with prosecutors. sac capital agreeding to plead guilty to insider trading charges. this shuts the investment advisory business and they pay a total of $1.8 billion in penalties. the company saying in a statement, quote, we take responsibility for the handful of men who pleaded guilty and whose conduct gave rise to sack sac's liability.

joining us with more on what is next for sac and steve cohen, ron gefner former sec enforcement attorney. i know you're running around everybody is expecting this. this is what was expected right? >> will be asked to redeem his -- no longer manage people money. he is only relgated to manage his own assets. the counter. >> the counterparties do they same with him do you think. >> my conversation conversatione marketplace. there is no risk to them. they weren't involved any in of the stipulated issues. tracy: charlie gasparino who is down there right now made it sound like they're still going after steve cohen personally. you think they are going to do that? >> one of the interesting things from the settlement, that seems that they carved out bringing an action against any individual. so that is not part of settlement. tracy: right. >> only against the sac enent

is. tracy: right. >> with regard to steve cohen individually, too early to tell. he has been through quite a bit. people would suggest he is not in jail. i don't know whether it rises to being jailable. that is for someone else to determine. he is paying a significant find and asked to leave a industry he was involved in his entire adulthood. tracy: how do they stay open after this? how do they recruit that is 24 black cloud over them. >> if 8 billion is his or his partner's money they need other people to manage his assets. the limitation as new law went on the books this past year. it is called the bad actor provisions. i presume one of the fallout issues mr. cohen will not be able to invest a certain amount in underlying investments with their own hedge funds. he may be precluded from investing 20% more of those assets. or taking interest in the firms. some of the prior arrangements or interest he had in with other

asset managers. there may that be ripple effect as well. tracy: i have to ask you. still own a baseball team. does this put a big debt in isn't. >> i don't know how the baseball owners and not an area of law i practice. i don't know if it precludes him by law, i don't think it would. that is question issue for them. rap stars on the basketball team. tracy: so much for the ethics part of it. his trademark was in and out trading. this is what he did. did this go down the way it should have do you think or were they, he was kind of the dartboard? >> first and foremost seems hedge funds themselves had a black eye within the marketplace. unfortunately were the scapegoat of many issues that came out post-2008 when reality is the hedge fund industry has been very positive to the marketplace. when banks have not beenp lending a lot of hedge funds or alternative investment vehicles have been involved and providing micro asthe s. lending and. in this case i don't know enough

factually whether it went down the way it should or has not. but the fact that they have not charged mr. cohen personally with regard to engaging insider trading and more about failure to supervise leads me to conclude if they had the information we have seen it by now. tracy: you're absolutely right. >> thank you for having me. tracy: ash? ashley: tracy, with the nsa snooping scandal heatings up by the day we go one-on-one with former cia director james woolsey on why america can not afford to give up on its spy program. tracy: the obamacare website has a tech surge s that what it needs and is it working right now? rich edson live on from the beltway with the latest on that. we'll be right back. thrusters at 30%! i can't get her to warp.

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ashley: all right. we have about 90 minutes until the close. let's look at this heat map. the dow 30, not a lot of heat coming off of it. stocks are more to the upside than to the downside. energy with exxon, pharma with america merck, and microsoft with the tech sector leading the way. on the downside dupont and visa. nicole petallides down on the new york stock exchange looking at kellogg, nicole. >> there is a lot to watch today, absolutely, ash, bringing you over to the cereal maker kellogg's much. kellogg's is up 1.4%. they're in the middle of a four year-cost-cutting program. this will entail a cut of 7% of the workforce by the year 2017. sales have been dwindling over the last time, over the third quarter, which ended in september 28th where they saw sales fall 2.2%. they make corn flakes, keebler cookies as well and fruit loops and the like. this is part of the cost-cutting

program over all. the forecast for the whole year is at the low end of previous range so that is not good news. we'll see as they cut costs and cut staff that may help the overall numbers. back to you. tracy: nicole petallides, cereal is so darn expensive. maybe we could work on that. in the wake of leaks that the u.s. spies on its allies, most notably, german chancellor angela merkel, germany and other companies are demanding changes. joining us former director of central intelligence, r. james woolsey, founder of defense for democracies. that is a long business card sir. welcome, welcome. what do you think about all this. >> i think one has to spy a good deal in modern times in order to avoid getting caught in terrorist attacks and the rest. some of things look like americans spying on other people when you get the initial story from mr. greenwald or from mr. snowden or someone else turns out when you look into them to be something completely

different. for example european countries spying on their own people outside europe, and turning the material over to the united states to analyze for them. so you want to be really careful with the initial indication of what is going on, especially if it comes from snowden or greenwald. ashley: is this typical way we do it. tap phones or not tap it, at least monitor what is coming in and out of the german chancellor's phone? is someone doing that to president -- >> i wrote in "the wall street journal" earlier this week or last week, i think it is, taking after the chancellor's cell phone is, smartphone, whatever, is something that a lot of germans and americans sort of reacted to. to collect intelligence generally on germany or other allies, as the french foreign minister has said and others that happens all the time between allies. it is extremely common. but it is a question of judgment and i think, going after

chancellor merkel's personal communications was a bridge little further than it should have been. tracy: you make a great point but what do you track? parents track their kid's phones. >> sure. tracy: this is how we track each other these days. you can't track a fax machine anymore, right? >> smartphones have become the new method of people being involved in the world. it is their bank often. it is their grocery store. it is their friends. tracy: right. >> i think that is what sort of stunned people about getting into chancellor merkel's personal communications. but generally speaking these states are going to spy on one another to some extent. i suggested we add germany and france to the group of five country that is we have a pretty open relationship with, britain, new zealand, canada, australia. ashley: has this hurt the u.s. reputation? there has been a number of foreign policy or lack of foreign policy moves that hurt the u.s. reputation.

is this another one just added to the pile so to speak? >> if this had come along alone it might have gotten sorted out. i think a lot of europeans and others are quite concerned about the veracity, franklily of the, the administration. and, how much you can rely on their promises. with respect to syria, we virtually said yes, we're going to help. we turned it off at the last minute. it is almost, sometimes, as if it is better to be an enemy of the united states than a friend if you look the way mubarak was dealt with on the one hand. and the way assad is being dealt with on the other. tracy: just to follow up on that, in your article in the journal i thought was so telling. you wrote, we were not leading but rather stumbling along behind. stumbling like a little kid that doesn't know which way to go. is that how you think the world perceives us? >> to some extent, yes.

we need to work on this working closely with the allies is one way to do that, trying to repair these relationships but that doesn't necessarily mean not finding out what they're doing. tracy: right. >> but there are limits and one ought to have a sense of balance and proportion and i think listening to the chancellor's personal communications and her calls with her kid or whatever -- tracy: like ordering lunch. >> i think that is kind of beyond the french. ashley: you mentioned snowden, edward snowden, former nsa leaker, how much damage has he done in your opinion? >> i think a great think he alre killed and will get them killed in the future as we miss opportunities to stop things because he has told the terrorists, while he has told the world how some of our procedures in nsa and elsewhere work. i think he is a trader. i wish very much -- ashley: you think he should be brought to justice? >> i think he should be

absolutely tried and for treason, yes. tracy: sir, thank you for taking time to share your thoughts with us. >> thank you. tracy: james woolsey, former director of central intelligence. thank you, sir. >> thank you. ashley: time for your tech minute. nokia has announce ad five-year extension to its patent deal with samsung. samsung will pay additional compensation to nokia as of january 1st. the total amount of compensation may not be hashed out until 2015. nokia said the. >> tension of this deal represents constructive resolution of licensing disputes and is it will save money for both companies. google's executive chairman eric schmidt criticizing the nsa over reports that the agency spied on the tech giant's data centers. schmidt says if the accusations are true, the ns-a actions are outrage just and possibly illegal. he went on to say google filed complaints with the nsa, president obama and some members of congress. youtube making history last

night by hosting its first move ever music awards and live streaming the event worldwide. the event was hosted by jason schwartzman and reggie watts. and included live performances by lady gaga and eminem, it was actually quite interesting. no. winners were voted on entirely by the fans. what a concept. the event set out to be different and spontaneous. and allowed full audience participation. a sign of future. did you see laidgy gaga's outfit? tracy: i did. >> very low-key. she looked like she was in lumberjack shirt. >> i thought eminem was living with jim morrison and elvis presley but apparently not, still performing. all right. lots of demand before the american airlines deal gets off the ground. we'll have market reaction to that next. ashley: the solution to keeping your electric cars charged does not require an he can lick plug. we'll explain. tracy: thank god.

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tracy: healthcare.gov has been plagued wish shoes ever since its launch and was even shut down completely over the weekend. so is the obama administration ever going to get the program on its feet again? who knows? rich edson does. he is in washington, d.c. with

the latest. hey, rich. >> hey, tracy. the administration says hang with us and we're trying to fix this. the daily briefing the administration does have on this has been pushed off. we're seeing what kind of daily updates they give us about the website and work they're doing. as you mentioned it is down this week and down daily from 1:00 a.m. to five a.m. on the east coast. there are questions whether or not the administration was being truthful when it came to telling people they could use paper applications or call on the phone if they were having trouble on the website. these are sentences that are obtained from notes taken at an administration briefing released by members of the house oversight and government reform committee. they found the administration saying we are to instruct navigators to use paper applications rather than go through the call center. they all acknowledge they all go through the same portal. paper applications help people feel they're moving forward and provides another option. buff at the end of the dave we are all stuck in the same queue. that raises questions as to whether the administration was

misleading consumers. >> you said there were four different ways. only one way. has to go through as you said health healthcare.gov. >> i said, what everybody said, again you can, have this -- >> i was here. >> soliloquy by yourself. >> trying to understand why the gave the american public the impression they could apply not, impression, told people they could apply. >> they can get on the phone and call the paperwork is filled out for them and the process is taken over from there. >> when can they enroll? >> when the paperwork is processed through health care.government governor. they don't have to go on line to do it is the point -- healthcare.gov. >> administration maintains the website for the most part should be worked out end of the this month. tracy: i'm not betting my kid's college fund on that one. ashley: who would like to be jay carney right now? charging an electric car without plugging it in anywhere? a pilot program in new york city is testing out the concept by

installing wireless charging plates that look like manhole covers. genius. evo power is the company behind this idea and the founder and ceo jeremy mccall joins me right now. jeremy, interesting. these charging plates look like manhole covers. they're in the ground. i drive my electric car over the plate. how does it work? >> very simply. it is like, if you will, tuning an fm radio. as you start to pull up to this charging station you actually, your vehicle starts to tune into that charging station and once you're over it, boom. just like being on a radio station except for it's charging. ashley: average vehicle, how long does it take? how long do you have to park there? >> same as typical charging stations being deployed. depends on size of the vehicle. could be a small vehicle like a smart ev that are being released right now with, nyu polly. those kind of guys are going to be charging about hour to two hours. for typical daily use. ashley: how much does that cost?

>> about 80% less than typical fuel that you get from gasoline. ashley: is that right? >> that's right. ashley: how did you come up with this idea? >> i was actually at columbia university and walking down the street. this was something that i was studying as my graduate degree in terms of my thesis and what i found that electric vehicles are really great but there is really no way to charge those and nobody was thinking about the infrastructure environment and i wanted to do something that could really make a city liveable with the electric vehicles. so the way i thought about that was, what about wireless chargeing? and truth is, that, manhole covers are everywhere. he was standing on one. and looked down and i said,. ashley: it was right underneath you. >> literally right underneath my feet. ashley: how do you go about getting it off the ground? you have the concept but takes time and money to make it reality. >> some of that money, came from the va. veterans affairs, i'm a disable veteran, i'm injured in combat.

veterans gave a small grant to do proof of concept. did that with nyu policy and engineers over there and what we found, we had technology that could work. six months after that, technology that could work with a vehicle. so we did it pretty quickly. ashley: we have a pilot program that is getting underway in the spring of next year, is that right? >> nyu is going to be first pilot partner. that will happen early 2014. it will be near washington square park, in the washington square village area. and nyu's private property. very public location. so people can see it working. we want people to understand this technology and to learn from it because it is absolutely that next technology leap forward. ashley: we wish you the very best. >> thank you very much. ashley: hopefully come back and update us on how it all goes. >> would love to, thank you. ashley: jeremy, thank you so much. we appreciate it. tracy: that is mccool. ashley: of course. tracy: quarter till. time for stocks now as we do

every if i have teen minutes, teddy wisering on the floor of the new york stock exchange. what are you talking about down there? >> i think that, i think that the chatter all week is twitter which of comes on wednesday. i think that's clearly going to be the excitement for the week, if not for the, if not for the month. that seems to be focus. market, tracy continues to put on a pretty strong performance. not a lot of volume. lines of least resistance are continue to upside. tracy: are we slowly getting ourselves back to fundamental analysis, teddy, or are we still thinking about what happens in d.c.? >> as we exit earnings season and focus, focus clearly will go right back to washington. all they manage to do a couple weeks ago was kick the can down the road. so we're going to, we're going to see that same rodeo again.

it will be interesting to see how the market reacts to it. kind of like the boy that cries wolf. tracy: yeah, exactly. >> god help us when it doesn't work. tracy: that's the truth. that is the truth. teddy weisberg, you're so great. thank you, sir. >> my pleasure. ashley: look if you bet on an adjustable rate mortgage a.r.m., congratulations. peter barnes on why a.r.m. holders are about to catch a break. tracy: why an olympic athlete credits, wait for it, mcnuggets, absolutely. tracy: at least part of the reason why he won three medals in beijing in 2008. what's the other part? ashley: fries. >> milk shake. we'll be right back. [laughter] when we made our commitment to the gulf, bp had two big goals:

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ashley: a new report find that many homeowners with adjustable rate mortgages are unlikely to see an increase on interest rates they pay on their mortgage. that's good news. peter barnes is in washington, d.c. with more. peter. >> ashley, that's right, this new report that shows families that took out a concern kind of adjustable rate mortgage are not at risk because of higher a monthly payments because of backup in lender processing rates. they look at three million hybrid adjustable rate mortgages. these are loans with rates that generally stay fixed for a certain period, for the first, three, five or seven years for example, at a, at a low rate which helps some buyers afford a new home. when and then the rates become adjustable annually after that period. lps report that is two million of these loans have already flipped over to annual adjustments when rates have been very low, thanks largely to the policies by the federal reserve. so they're fine. of the remaining million or so

hybrid adjustable rate mortgages, those homeowners are looking at continued low rates. also just 250,000 of these loans were made back during the housing bubble when lending standards were a lot looser. that means a relatively small number of these kind of loans could be problems. >> most of them have been originated postcrisis and because postcrisis hybrid arms are very well underwritten. very high quality loans. we're not very worried about them defaulting even if rates go up. they will have been underwritten to the full adjustable rate so they generally will be pretty safe. >> but safe means tighter lending standards and while tighter standards such a credit scores and high down payments are good for shareholders around limiting defaults and foreclosures they continue to make it hard for some homebuyers to qualify for a

loan of the ashley and tracy. ashley: that is very true. postcrisis hybrid arms. peter barnes. thanks very much. we appreciate it. tracy: say that 10 times fast. now, all analyze this next story here. you probably that olympic athletes dot carbo load. ashley: bunch of pasta. tracy: here is something you probably have not heard the mcanything get building. ashley: absolutely. tracy: i swear. come on. in his new book, track star usain bolt claims he ate 1,000 chicken mcnuggets during the 2008 olympics in beijing. bolt apparently thought chinese food, was quote, unquote odd. sew went to mcdonald's because that is noted throughout the 10 days in beijing. by the way, bolt won three gold med dales on the diet in the 2008 olympics. 200-meter, 400-meter and four times 100-meter. maybe there is something coming

to it. maybe a check is coming from mcdonald's. ashley: you're such a conspiracy -- tracy: i'm a little bit of conspiracy theorist. >> off you go. funny, go to a foreign country, i guess you don't want to upset the diet when if you don't like the food. it is a strange place to go for an athlete. tracy: i guess. mcnuggets look normal. i defy anybody to find the meat in those puppies. ashley: what part of the chicken is it? that is the question. tracy: that is next hour on fbn. coming up on "countdown to the closing bell" tripoint homes makes a key acquisition, around in the process becomes one of the largest homebuilders in the united states. we'll sit down with doug bauer, ceo of tripoint homes to get his take on the deal. and his plans to dominate the homebuilders market. the dow is up 18 points. don't go anywhere.

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♪ ♪ >> today one of the world's largest and most powerful hedge funds agreed to plead guilty to shut down its outside investment business and pay the largest fine in history for insider trading offenses. liz: that is u.s. attorney aiming a verbal arrow right at the heart of the famed sac capital, the largest fine ever for insider trading. good afternoon, everybody, it's the last hour of the trading day, and that nearly $2 billion fine is in addition to a more than $600 million penalty handed down by the securities and exchange commission previously. and the u.s. attorney is making sure everyone knows that size doesn't matter, and he put every institution on notice. >> no institution should rest easy in the belief that it is

too big to jail. liz: too big to jail. also stressing that today's settlement against the hedge fund firm started by billionaire steve cohen does not close the door on future criminal prosecution of individuals at that hedge fund. now, sac capital has released this statement saying in part: we take responsibility for the handful of men who pleaded guilty and whose conduct gave rise to sac's liability. quote, the tiny fraction of wrongdoers does not represent the 3,000 honest men and women wolf worked here -- who have worked here during the past 21 years. sac has never encouraged, promoted oral tolerated insider trading. no outside investors. our charlie gasparino has been following the case from the very beginning, he will be here in just a few moments, he's running back from the courthouse to tell us what it all means for founder steve cohen and his future manin