as more banks go belly up, more than 300 of them are on a short leash...but are the feds being too patient with some troubled banks? plus, how the nation's stock cops have responded to missing big scams...and does the s-e-c have the tools necessary to restore public confidence? also...as the price tag on healthcare reform continues to grow...a look at the impact it could have on taxpayers and workers pockets...it's all ahead on this ediiton of first business. welcome in at six trading sessions six updates for the dow jones industrial average and for the s&p 500 if you listen closely you're within whispering distance of a brand new high for the year. as a positive response come from these early seasons. it tickled at the nasdaq 100 it's been a

pretty easy ride of 27% since jaber able to look at about and that's barely positive right now so the dollar is definitely struggling against rest of the market. will talk more about what has been leading the market and has been technology but we took a look at these are nothing blowing them out of the water but the fact is what we've seen with the economic news is not as bad as feared and that has divided the calls for the by years. when investors are going to be paid attention to the fixed this week to ban burning key for it to days of testimony testimony and on the economy and monetary policy. halfway through 2009 - and bank failures continue adding up - bringing the total number of banks shut down by the fdic - to 57 in 2009... and 25 in 2008. so far this year.. illinois leads the nation - with 11 failed banks.. followed closely by georgia with 10 - the fdic has spent more than 12 billion dollars... covering losses from these failures.

the number of troubled banks is also on the rise... the fdic is keeping a close eye on 305 institutions... on the bad bank list... that's up from about 250 at the end of 2008... that list is kept private by the fdic experts say the fdic has been methodical with handling these bank failures... but some believe they are happening at a slower pace than expected considering how widespread the problems are... i think the fdic is allowing these banks to hold on a little longer. it's happening because 1 they are overwhelmed and 2 - because there's no reason to force them into bankruptcy.. if they can hold on for another 3 to 6 month period. another reason? the fdic is givng banks time to find buyers...so that losses are kept to a minimum. the fdic has a total of 23 billion dollars in reserves to

handle future bank failures... plus it will collect a 5 billion dollar payment at the end of september... from a special charge on banks. all of the fdic's funds are made up of premiums charged to banks... the agency is also able to borrow money from the treasury department if needed - but that money must be repaid. the price tag of to rescue the financial system could top more than 23 trillion. the special inspector general of the tarp strategy will tell congress on tuesday that taxpayers could be responsible for 23-point-7 trillion. doing the math, tarp is $700 billion, the f-d-i-c is in for $2-point-3 trillion, treasury department for more than $ trillion, almost $7 trillion from the federal reserve and another $7 trillion in combined aid for fannie mae, freddie mac and others. of the $700 billion in tarp, just $441 billion has been spent and the inspector general is expected to repeat concerns that the tarp money is not being

followed closely enough. as we sit with this market within a whispering distance of a new high billion against nine traders audio is listed to lot of ups and downs is there any change in the tone of the market and 950 last time we were at these levels? we are seeing red light volume dell was the case friday and the case yesterday so a little bit of a concern in terms of traders looking toward this little bit to mention 950 to 955 and s and p really following the nasdaq. we need to see volume picked up a little bit here in the s&p.

heck's what is it about technology does seems to be leading the market? can classic little bit with earnings related but it's definitely been very strong racine that trade in a very positive manner couple both 15 even when authorities at this point. and again everything seems to be looking at that i began we're looking at a few different markets that are related by think it was a spillover a carry over from some of the earnings that we saw at a little bit of a technical trade as well. another big earnings this week and right at the technical levels any expectations? i hope to see this rowlock continuous no question and i like to see as mps get up above a key level and hold these levels as long as we can stay above 925 and 930-year ripping is fairly positive at this point but again a lot of concerns in terms of volume we need to see a pick up a little bit in a possibly will was read above those levels of 955. ben liechtenstein traders audio.com

at the cme group. the person responsible for the tarp strategy, treasury secretary tim geithner, is due to be on capitol hill himself on friday. geithner and the obama administration have been pushing to increase regulations on hedge funds and other private investment funds...and in addition have the ability to declare certain banks and other financial firms as systemic risks, allowing regulators to take special actions to protect the economy. still to come the high cost of heathcare reform...what it all boils down to for taxpayers and workers. but first...does the securities and exchange commission have the tools to expand its responsibilities to an already long list of duties.

in the effort to re-write the rulebook for investors, the securities and exchange commission could see its responsibilities expand to include hedge fund advisers, private equity and venture capital funds. this follows what has been a tough few years at the stock cop agency, including its high-profile miss of the bernie madoff ponzi scam. we continue our conversation with merri jo gillette, the regional director in chicago with the s-e-c.

chairman of the sec has said that we open to investors is and shall be we'll adapt our ways and learn from past errors and undue not repeat them. what are some bills adaptations that the chicago office will room the chicago office is really him in sync with it the changes that are being made nationally. we have really increased and tried to focus our efforts in areas of investor education and outreach. on the enforcement side we continue to evaluate every evaluate what's coming through the door, and the reason i say reevaluate this that the criteria for what may be risk factors is entered depending on what's happening in the rest of the world. we need to constantly reevaluate what that is. are the tools that are available to use sufficient to could do the job that you will like the agency to do? i'd think we can do better. there are a number of additional tools that

we are looking at in terms of process within the division of enforcement. some areas that the chairman has addressed already for example the formal order process which is the process by which we get subpoena power to begin investigations and compel people to a fast response to our investigations has been streamlined and numbers reflect that so for example, on a rarely of this year to the present the commission has issued 224 new foreign orders and the same period last year last year commission had issued only 93. this is significant in response to the changes in leadership and house pacifically the commissioner themselves and the role they play in the ability for staff to go after to go after a questionable transactions correct? yes. there has been a very pronounced agenda by both the chairman with the support from

the commission that enforcement needs to be given the tools to really get out there and move quickly. what is generally the more routes among fcc? i'd been more route is pretty low in general at a staff level that you have pointed out there's been a tremendous amount of public criticism and some areas where the criticism has been and they are areas that to where the information might be responsible or provide some explanation is confidential so the staff is not able to respond in a meaningful way to those criticisms. by and large you have a staff that takes a lot of pride in what they do many many very talented people who have devoted their careers pull this because they believe and the mission of the agency who could have readily made much more from a french standpoint in the

private sector and opted not to but took great pride in what they did. ben has been difficult. for some time even well before the may of scandal broke in the recent public criticism there was a growing sense of frustration at the staff level that we do not have the resources to deal will be racine and yet the expectations were still there. i think we have a challenge on our hands to wreak configuring the staff. which disorder for inter dependent on rebuilding public trust and credibility for the agency and their inter depended to some degree. gillette says the agency has never claimed it could prevent fraud but that it works to deter it and to education investors to spot it. online, you can hear some of the common red flags to watch out for. go to first business x dot com and search ponzi.

online items from tight lending standards to healthcare reform...on our website how some small business owners are coping with the current economy. .. and bracing for future challenges. plus, why the securities and exchange commission may not be equipped to go after every instance of investment fraud...you can catch it all on our website, firstbusinessx.com. and straight ahead on the show... healthcare reform remains at the forefront on capitol hill...what it could mean at your company.

it is another week of washington focused on healthcare reform with the rhetoric and the price tag heating up. we've talked this problem to death year after year, but unless we act and act now, none of this will change. the goal of reform is providing insurance for those who can't afford ita goal that comes with it an estimated cost of $1 trillion over the next decadea cost that supporters want to pay for using higher taxes, fees and healthcare savings. rob wilson is ceo at employee services consultancy employco. debt will come back to the program. small businesses is a focus of these reform efforts in the house and in the senate car they me for a change? i don't think so they're struggling with the economy. health-care issues makes it tough for small business. how are they approaching these potential changes that have yet to really take shape yet? the challenges between the senate and house is not quite sure what's going to happen but the

concern cannot hire? or is it going to be higher taxes? two competing plans for now when and how someone in the senate employee based insurance requirements surtaxes on personal income over 350,000 which could impact small business people because they may run their business. every car all legal residents to enroll. is there approaching this uncertainty no small business have been the engine of new hires could this really impact of any kind of uptick in employees admit that may come in the months ahead? we'll look at it at 400,000 are closed on the pay while those nine police at 8% you can hire and the person or you can pay for health care. in the senate version looking at the small business company to provide workers' insurance tax credits for small business does is go to those concerns that they could get some tax credit? at the same

time there seemed to provide health care or provide what is known as the high in health care are you gonna pay taxes on that as well. where is your advice to folks were working for small businesses that may be called by the reform efforts? many of the small businesses have elf health care and have how much are they paying? should those employees if you don't have health care you're going to at some point. as you talk to small business owners about this idea of health care reform and they're expressing these concerns are they also expressing perhaps the possibility they make stop offering health care entirely? but the towns they all know if it's going to be cheaper to go to the government to plan and pay the tax than the premiums. we have to do something about the premiums because they are too high. how are companies approaching these uncertainties in regards to the economic at

uncertainties in the question is the hiring plans in area we're not seeing much hiring to start with the economy but this adds a second uncertainty. how about the credit conditions the small businesses are facing we've seen the brush with the failure of the c i t group announced worries about the additional costs of small business. so the small businesses are relying on credit the so small there running business on their cash flow so they look at being taxed on their earnings to cast the business makes it tougher. its address as the small business owners will like to see health care reform? but perhaps one that may not come with the cost does on the shoulders of small and large businesses? exactly been no reform is needed but is this the correct form? the bill complained of health care premiums are so expensive that they can afford it. which are

forecast for small businesses for the rest of the year. we're telling our clients they're hoping for the beginning of next year we might see a recovery but it's still in the trenches trying to survive. what will send along with us he works at employer services. tech heavyweights apple reports earnings on tuesday. we'll take a look at that chart + the nasdaq 100. all in chart talk coming up after this in the know message.

but while kodak everybody on nine month highs for the nasdaq 100 as it continues to climb higher to up the course of 2009 is up about 27 and 1/2 percent if. if this is a been a nice relentless rise in the face of a lot of difficult economic canoeists but fundamentalists has been restored and pointed out earlier from a book of both for the earnings news will cost the company's test and costed. or what is more if tech earnings would apple are rest of us take a look at the nasdaq 100 to iraq. if again climbing higher higher than that you highs really hope for about 37 votes a share to the accused is imported from the tatoos help but make clothes put was a pretty significant development. there is positively now trying to break out but again like your caller which we were talking about fair but is taking notes here and the trust in the mid '30's may rise to $40 a share and i think we took a look back when the nasdaq in rest of

the market fell off the shelves in september it cost f 40 before it fell down. let's take a look guess some of the components that are pretty big drivers for the nasdaq. out both as we've reported earnings on tuesday in that stock is a vastly outperforming the nasdaq almost 80 percent since a rate. i phone. that's where what it's been all about in his been hitting cylinders hundred $50 i think had been some small resistance at going back again to the fall last summer this is where it found some support drop below would in now will see if it can stay over a hundred 50 a share. investors are going to be paying close attention to the forecast for the i phone and i pod as will so both are doing pretty well. watchlist the head of the fed on capitol hill. federal reserve chairman ben bernanke begins two days of updating congress on the fed's view of the economy. the fed

has been very cautious in its descriptions, saying only that the decline seems to be lessening. or falling at a slower pace. some in congress have been asking tougher questions about the fed's strategy, and ability to pull back the monetary stimulus such as very low interest rates and allowing banks to use questionable loans as collateral. and at the same time, criticism continues for the fed's effort to help banks not necessarily filtering down to consumers. one more item cops in suburban philadelhia busted up a ring of illicit retailing. turns out the kids weren't breaking the law by selling lemonade door to door. the local ordinance that bans sales without a permit doesn't apply to kids under 16.

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