report" with tyler mathisen and susie gharib. brought to you by -- >> the street.com. shares your strategy, stock picks with action alerts plus. the multimillion dollar portfolio she manages with jim cramer. you can learn more at the street.com/nbr. >> in the bull's-eye. target's ceo is out. the board calls for new leadership following the massive cyber attack. how vulnerable are other ceos? >> too big to jail? the u.s. attorney general sends a warning to financial institutions. even the biggest banks are not too big to jail. and still going strong. at 83, warren buffett is a superstar for advice on everything from his company, the market and the business world. all that and more tonight on

"nightly business report" for monday, may 5th. good evening, everyone. we begin tonight with a change at the top at target, the nation's number three retailer. gregg steinhafel, the company's chairman and ceo stepped down today five months after a massive data breach that put at risk personal and financial information belonging to millions of customers. the resignation is effective immediately. steinhafel had been with target, 35 years and is arguably the first major company ceo to lose his job to a cyber crime. the the news rattled investors, target shares fell 2.5%, one of the biggest decliners in the s&p 500. so what's next for target and will it change in the corner office restore trust in the company after it put so many customers at risk. courtney raying ann after today's ouster and the search for a new leader. >> as time goes on we'll get down to the bottom of this. we are not going to rest until

we understand what happened and how that happened. clearly, we're accountable and we're responsible, but we're going to come out at the end of this a better company and we're going to make significant changes. >> that's what target ceo gregg steinhafel said in january about the hol will day data breach. perhaps foreshadowing his own firing and a note to the company's board, stein half says the last several months has tested target in unprecedented ways with several key milestones behind us, now is the right time for new leadership at target. target cfo john mulligan is stepping up as interim ceo while the retailer undergo a search for a permanent chief executive. steinhafel's departure itself wasn't entirely unexpected though the timing took analysts by surprise. the holiday season's data breach has been a huge black eye for target, the retailer's last earnings release and subsequent updates suggested it was mostly in the rear-view mirror, hinting

behind the ceo's firing go beyond the data breach. target's expansion into canada has been disappointing. sales and traffic has weakened and the company was late to the e-commerce game likely costing it market share. >> the abruptness makes it seem like something really devastating like an interchange in the board or catastrophic information and we see the drop on this news rather the sort of pop bee often see. >> target has a history of promoting ceos from within company ranks. wall street thinks it has to be an outsider with a fresh perspective that takes over. the big question is who? there aren't a lot of strong retail ceos available. a problem for a retailer in need of a leader. for nightly business report, i'm courtney reagan. >> the target management shake-up raises the question how vulnerable are ceos when things go wrong? they advise companies in crisis. she's ceo of a crisis management

firm, 10man and company. >> is target ceo responsible for this data breach? some people would say that, you know, it was an accident and he shouldn't be held responsible as ceo. >> susie, i think that we now know that data breaches will happen all of the time. they have happened all of the time and they probably will continue to. i think the thing that's at issue here is how quickly he responded and what that response looks like as soon as they knew about it and that was way too long. it took too long to let people know, so i actually think that the issue is not a data breach, but a breach of trust. >> octavia, i don't mean to strain the parallels too much, but why does mr. steinhafel lose his job as a victim of potentially largely of a cyber crime and jamie dimon get to keep his when that company has paid billions, tens of billions in settlements, fines and other

judgments? >> you know, tyler. so i don't work with either of these two firm, but i can tell you that it must have to do with the internal equity that they both have built up and in the internal ways that they have dealt with this, not only the the external ways they've dealt with it, but i will say that i think dimon actually fessed up, came forward, started some solutions with far more e lack riddy than steinhafel did and that's the real issue is how quickly in this transparent age can you step up to it? >> right. so, david, where do ceos get training for this? who is a role model ceo who has done it right? >> there aren't that many people that have done it completely right, susie, because the situation is changing even as we're sitting here. news moves at the speed of an electron, as you guys know and it takes on more and more power as it goes over social media, so i think everybody is wanting to

catch up. i actually think that mary berra as a brand new ceo is doing quite well in how she's been stepping up to something that was not done on her watch. she was lucky it was not done on her watch and therefore she can be part of the solution. for the current target ceo it was done on his watch so it's harder for him to be part of the solution. >> it took them five or ten days to really come to grips with what was going on, it seems to me. your argument here, da vshg ia is in the era of social media, executives do not have several days. they may not have several hours to fess up to a problem. >> that's exactly right. you know, usually they say that tylenol is the best case for crisis management. if that were done today it would be a dismal failure because they waited five full days. today, i think you have to say something within an hour and you can't say that you know everything, but you can say this is what we know.

we will keep you updated and we will keep you safe to the best of our ability and we are on it. >> right. >> davia, we have half a minute. very quickly to this. if you were advising target on who they would be recruiting for this new job, what would you tell the board? a grand communicator who can build trust. >> that was a short answer. >> we have another 20 seconds, davia. >> and how about that? >> okay, great. and stocks got off to a weak start today. the dow was down 135 points on jitters about escalating violence in ukraine and disappointing manufacturing from china, but the markets rebounded after a pickup in activity in the services sector of the u.s. economy in march. it grew at the fastest pace since last august after an up and down session the dow ended 17 points higher and the nasdaq up 14 and the s&p 500 added three. the yield on the ten-year treasury note rebounded a little bit today after hitting a 2014

low on friday. now the biggest decliner in the dow today pfizer on disappointing quarterly earnings and revenues. shares fell 2.5% after the world's biggest drugmaker reported a 15% drop in profits that stung by cheaper generic medications and the loss of its patent on viagra overseas. revenues tumbled 8.5%. >> j.p. morgan chase was another blue chip decliner today shares fell 2.5% after a late friday regulatory firing and the bond and stock trading revenue to drop 20%. the bank won preliminary approval from a federal judge to settle claims for $280 million over misleading investors about the the risks of billions of dollars worth of mortgage-backed securities that later went bad. >> despite that deal the justice department announced it's pursuing a criminal investigation into some of the world's biggest banks for their roles in the financial crisis

saying no bank is too big to jail. in a video release, attorney general eric holder says he's personally monitoring ongoing investigations into big financial institutions and he's resolved to see those probes through. >> there is no such thing as too big to jail. some have used that phrase to describe the theory that certain financial institutions, even if they engage in criminal misconduct should be considered immune from prosecution due to their sheer size and their influence on the economy. that view is mistaken. and it is a view that has been rejected by the department of justice. >> and late today there are reports that credit suisse is close to settling with the justice department for aiding tax evasion. the amount, according to dow jones, is expected to exceed $1 billion. good news for burned investors who lost money to the swindler bernie madoff. the latest announced payoff it to victims from the winddown of

the ponzi schemer's investment firm is $350 million, that according to irving pick art, the court-appointing trustee liquidating madoff's holdings. that means a total of about $6 billion have been given back to more than 2,000 madoff victims. >> still ahead on "nightly business report," could an unlikely corporate alliance shaning the video game industry and trade the market for consoles? that story is next. ♪ ♪ amazon.com is teaming up with twitter to make it easier than ever to buy things online.

a new service called amazon cart lets customers add products they see on tweets right into their amazon.com shopping carts without ever leaving twitter. that could mean downloading a song from a performer you follow on twitter, buying a movie a friend saw or ordering some clothing a celebrity like susie is tweeting about. >> we'll see about that. the consumer battle over which is the best video gaming console may finally be settled and the winner will be sony's playstation, the nintendo wii or microsoft's xbox. morgan brennan reports. >> defend, attack, score! >> a potential new agreement could shake up the video game industry disrupting the way video games are purchased and played. the unlikely culprit, comcast corporation. the cable giant is in talks with gamemaker electronic arts to bring popular titles like madden nfl and fifa soccer to comcast x-1 cable box system.

after two years of testing a deal is to be struck in the coming months. they're able to download a selection to ea's games in much the same way you'd order a pay-per-view movie. more casual, family-friendly fare will be offered including fifa, madden, monopoly and plants versus zombies. this would create a new distribution model allowing a company to not only compete in space dominated by tech companies like sony, microsoft, apple and amazon.com, but bypass their devices altogether. it's also a big step for electronic arts. >> if ea can get an extra couple hundred,000 people to spend money, their average revenue per user is probably around ten bucks a month for the people who spend money. a couple thousand people is a couple hundred bucks enhancement to the game revenue. >> they have apps, voice control and cloud storage has been a bright spot for the cable company, fueling video subscriber growth in recent

quarters after years of declines and if it's merger with time warner cable goes through, as many as 30 million households can have access to x-1. still, there are drawbacks. tens of millions of living rooms already stream video gaming consoles and competition is fierce. >> comcast, amazon and microsoft are slugging it out and i'm waiting for apple to come up with something and they will, too. everybody wants to own the living room and comcast subscribers will use smart tab'lls as controllers. convenient, perhaps, for casual users and sure to keep the more serious gamers away. >> for "nightly business report" i'm morgan brennan in los angeles. comcast is the parent company of cnbc which produces this program. aig posted earnings that trumped estimates, but revenue missed and that's where we begin tonight's "market focus." the insurer says higher

catastrophe losses at the property and casualty insurance businesses hurt its quarterly profit. benmosche says he's focused on the long term. >> we're in here for the long haul. we want to make sure that over time we continue to do better and if you cut a corner or not worried about some of the risks that you're taking on now, you can get yourself in trouble down the road and we just don't want to do that. >> aig shares fell initially after hour, but during the regular session the stock was up a fraction to $52.72. the french government has opposed general electric's $13.5 million bid for alstom. ge maintains a proposal is good for everyone involved and is open to further discussions. ge shares fell slightly to $26.58. shares of tyson foods tumbled after the company came up short in its latest earnings report. the nation's biggest meat

producer gave a cautious full-year outlook because of a virus sweeping hog farms and may cut pork production. the stock fell 10% to $38.44 making it the biggest decliner in the s&p 500 today. orbitz worldwide posted a first-quarter loss blaming it on a charge from an income tax provision. the online travel agency did see higher overall bookings and an increase in revenue from a recent acquisition. it also forecast revenue for the current quarter above analyst estimates, but investors couldn't ignore that loss and shares fell almost 2.5% to $7.24. >> an engineer at general motors retired in the wake of the company delayed ignition recall. the retirement has nothing to do with the switch debacle which has been linked to 15 deaths. shares of gm off slightly today $34.75 is where they finished and walgreens saw same-storr sales rise more than 7.5% in

april and lifted by an early easter holiday. and new generic drugs. shares were up 1.5% to $61.8537 humana, wellpoint and monsanto all got a lift after larry robbins said the stock was well placed for growth. robbins whose hedge fund is over $7 billion said at the annual conference today that humana could see 30% to 40% growth. he was also excited about monsanto saying that stock is cheap. all three of those names are up more than 1%. humana was up $10.10. and monsanto at $114.85. shares of berkshire hathaway were down today despite a meeting with warren buffett over the weekend. they were just one of many topics buffett talked about with some 40,000 shareholders who converged on omaha to hear the latest words of wisdom from the

billionaire investor. >> warren buffett doesn't appear to be slowing down much. at 83, he's one of the fortune 500's oldest ceos, but that doesn't stop him from outpacing throngs of female reporters. >> no, just healthy eating and lots of exercise. >> with his usual boundless energy he made the rounds at berkshire hathaway's annual meeting sampling his berkshire treats. >> this is like clark kent going into a telephone booth when this happens. >> plague games with his buddy, bill gates. >> okay, bill. my house against your house! oh! >> hanging out with a supermodel doing something he could cheer about. challenging his partner charlie munger to a face-off. $2 for the buffett bottle of ketchup $1.60 for charlie's.

>> charlie, one-third and you're winning it in a landslide so far. >> notify me! >> even posing for oneselfie after another, but it turns out the super human buffett may actually be mortal particularly when it comes to investing since 2009, buffett's beloved berkshire has yushdz performed the broader market suggest the investment god may finally be losing his midas touch. in four of the last five calendar years he's lagged his favorite benchmark, the s&p 500 by significant margins and this is the first time in his 50-year investment career that he's logged such a lengthy losing streak. >> what happened? >> in the last five years we've done pretty well, but weave been in an up market and we do better in down markets we do in up market, but we've done well in the up market. >> still, few shareholders question buffett's track record. >> i don't think he's lost his touch. i think things happen in cycles

and you have to stay committed to the investment for the long term. berkshire shares at $180,000 when they're worth $230,000 that's a great opportunity for me. >> professional money managers feel the same way. it continues to be anybody that sold it for the last four years, it was dumb and dumber because it underperformed. buffett's winning streak is far from over. i still think there's a lot of great opportunity for upside and berkshire shares. >> no one seemed betrayed by recently disclosed news that buffett has advised his wife to invest in a low-cost index fund after he's gone. >> if you're lucky enough to find a warren buffett and invest in his career you can do a lot better, but it's probably pretty sound advice. >> at every turn, buffett was giving lots of advice. >> that means in a generation, if there's 1% population growth that means in a generation it is 20% better than you do.

>> tips on buying a home. >> when you live in omaha for ten years, i would buy a house today. >> and how general motors' new ceo is handling the recall. >> i had lunch with mary barra just about a week ago and she's dynamite. you couldn't have a better executive. >> buffett answered 65 questions from shareholders for more than five hours. the first one was the most controversial. why buffett didn't vote against coca-cola's lavish executive compensation plan. as coke's largest investor, buffett said, quote, going to war over the plan would not have been productive. shareholders seemed satisfied. >> most corporate annual meetings are poorly attended but this one is a massive lovefest. about 40,000 people came this year. it's a well orchestrated event designed for berkshire fans to bask in the glow of the oracle of omaha. there may be critics of berkshire and buffett, but you won't find them here.

>> buffett tried to get what he called a credentialed bear and someone shorting the stock to come and ask tough questions, but none were combrisly enough. >> you couldn't find a bear? no critic of berkshire? >> oh, there are plenty of of critics, but they don't want to seem to put up their money. >> still that didn't stop shareholders from wondering about plans for his $50 billion pile of cash, aside from a canadian energy deal, he hasn't made a significant acquisition since he invested in heinz ketchup a year ago. >> how important is it to do a big acquisition and do you have something in mind. >> i can propose, but the other person has to say yes. >> never mind about the next big deal, the real question is how long buffett will keep up this pace and what happens to berkshire when he's no longer running the show. buffett is typically mum on the subject and for now he still enjoys being in the center of

things and staying on the move. >> what more do you want to do? berkshire is an unfinished painting and i'm going to keep painting it. >> and what will be warren buffett's legacy? he says he wants to be remembered for being a teacher and tyler, one of the lessons from buffett that i remember issa what he calls the newspaper test. if a decision you made was written in the local paper and your family and friends read it, how would you feel? >> i wonder how he feels about the coke decision by that standard are? his shareholders seem to feel all right about it. coming up, the art of the deal about $2 billion worth of art is expected to sell during the spring options season. it won't end any time soon. ♪ ♪ ♪

>> some new concerns about using aspirin. the food and drug administration is questioning the value of taking an aspirin every day to try to ward off a first heart attack or stroke with people that have never had heart problems. the agency is urging people to take a daily aspirin only after talking to a doctor or other healthcare provider to assess the benefits and risks. >> a new study may put to rest those doubts over whether going to college is worth that money. over a lifetime the average college graduate will earn at least $800,000 more than the average high school grad and that takes into account the high cost of attending school and even the four years of lost wages while getting that degree. looks like activist investor daniel lobe finally got what he wanted at sotheby's and he wasn't bidding on any art work.

a deal was reached to give the manager of hedge fund third point three seats at the auction house by expanding to 15. it caps his stock ownership to 15% and it comes one day after shareholders were voted on the board. the deal averts a decisive vote by stock owners. finally tonight, spring has sprung in the nation's top auction houses and they're gearing up for the big spring auction art season which could see some record-setting prices for painting, sculptures and other works this year. our robert frank has more. sgloor the opening is $3 million. >> the art of the deal will make big deals in the next three weeks. sotheby's is expected to sell $2 billion worth of art during this spring sale. >> that marks an increase of over 70% from last year and the prices paid are likely to highlight the growing wealth for the world's wealthy and the values of rare works of art which right now shows no sign of

slowing down. >> christie's is likely to get the biggest prices. it is expected to go for their 75 million, that sounds high and it's half the price for one that sold last fall for $140 million. a painting by mike rothco is expected to sell for $60 million and a piece called black fire, is expected to sell for more than $50 million. most of the excitement today among global collectors is among post-war and contemporary artists, but a few classics are still holding their own. one of monet's water lily paintings from 1907 could top $30 million. there is no balloon dog this time around, and jeff will bring some playfulness to the sales this spring. his popeye sculpture showing the man with a can of spinach is expected to top $25 million. we'll see whether the art market can maintain its muscle in the

coming days. for "nightly business report," i'm robert frank. >> $25 million for popeye? >> i would pay that for the balloon dog, not popeye. >> i'm glad you have your priorities straight. >> i like that. >> that does it for nightly business report. i'm susie gharib. >> i'm tyler mathisen. we'll see you back here tomorrow night. ♪ ♪

>> adrian, adrian pitts. >> oh, yes. >> the great martin ellingham, who, as you all know, abused myself and others at st. mary's but taught us a thing or two about medicine. >> panic attacks. i sometimes have small panic attacks. >> what brings them on? >> blood, the smell of that, sometimes just the sight of it. >> your secret's safe with me. [quirky instrumental music] ♪