help. and...history made on wall street as a native american tribe becomes the first to own it's own financial services firm...why the interest in wall street and what it hopes to accomplish from the deal...it's ahead on this edition of first business. not a bad start for the first week in september welcome in ahead of thursday's market action you have the dow jones industrial average added second-highest close of the year. the buyers continue to come from the s&p 500 s&p five order index now is highest level if any level once. take a closer look at the treasury securities market in the week, the government is auctioning more than $120 billion roof of t- bills bonds and notes interest rates on the 10 year notes inching up just a little bit. scenes that around 3 1/2% so it does indicate that investors are looking for a little bit high return for the investment in

treasury securities but certainly not by much. perhaps% is reasonable. is not as bad as it could be for those bastards in the meantime the federal reserve basically saying that perhaps the economic growth beginning to take hold be very lightly. a new government report says taxpayers will probably not recover all of the bailout money poured into the auto industry... that's according to the congressional oversight panel... which did not give a specific reason why. since last december, a total of 85 billion dollars was given to gm, chrsyler and auto suppliers... in the form of emergency loans... and to get them through the bankruptcy restructuring process. "although taxpayers may recover some portion of their investment in chrysler and gm, it is unlikely they will recover the entire amount." the new report says quote: "although taxpayers may recover some portion of their investment in chrysler and gm, it is unlikely they will recover the entire amount." it goes on to say.. that the treasury department estimates.. 23 billion dollars of the initial loans made will be subject to much lower recoveries. and about 5.4 billion in loans

given to the old chrysler are highly *unlikely to be recovered. and tom.. the congressional oversight panel also had some harsh words for the treasury department in its report. the panel's report calls the us government a quote "tough negotiator" when it came to dealing with failing american car companies.... but at the same time it criticizes the treasury department for its lack of transparency on how it used the tarp money to bailout gm and chrsyler according to the report, the oversight panel said quote "congress, and ultimately the american taxpayer, have been "left in the dark" concerning the details of treasury's review process and its methodology and metrics at a time when treasury committed additional tarp funds to these companies." congress and ultimately the american taxpayer have been left in the dark concerning details of treasury's review process and its methods and metrics at a time when treasury committed additional tarp funds to these companies. the oversight panel also called on the treasury department to place its shares of chrysler and gm... in an independent trust.. to avoid any conflict of interest.. or governmental interference.. the us government owns 10% of chrysler.. and 61% of general motors..

and we asked taxpayers about the possiblity they may not get paid back in full... and most people we talked to said it's the price that had to be paid... in order to save part of our economy. i see a lot of money as a taxpayer being wasted in a lot of places.. besides auto indsudtry.. i think money in auto industry at least is being put in palce where it might save a lot of jobs. .so i'm in favor of it thinking about all money wasting.. it's about time spending money in america.. bailing companies out.. i's the lesser of 2 evils.. either let it fail.. or take bad shot.. whatever you lose.. you lose.. lettign it all go would have been worse than what we're paying now we also came across one woman who said.. losing the bailout money pales in comparison to other issues right now what bothers me is that every person in this country.. doesn't have health care..

that's the only thing that bothers me.. .. so it doesn't bother you that you we may not recover bailout money? no why not? i won't be around to see it this thursday, the congressional oversight panel will hold a hearing on this issue - questioning treasury secretary tim geithner... about the effectiveness of the tarp program. the panel's report calls the us government a quote "tough negotiator" when it came to dealing with failing american car companies.... but at the same time it criticizes the treasury department for its lack of transparency on how it used the tarp money to bailout gm and chrsyler according to the report, the oversight panel said quote american taxpayer, have been "left in the dark" concerning the details of treasury's review process and its methodology and metrics at a time when treasury committed additional tarp funds to these companies." congress and ultimately the american taxpayer have been left in the dark concerning details its methods and metrics at a time when treasury committed additional tarp funds to these companies. the oversight panel also called place its shares of chrysler and gm... in an independent trust.. to avoid any conflict of interest.. or governmentalthe us government owns 10% of chrysler.. and 61% of generaland we asked taxpayers about the back in full... and most people we talked to said it's the price that had to be paid... in order to save part of our economy. i see a lot of money as a taxpayer being wasted in a lot auto industry at least is being put in palce where it might save of it thinking about all money wasting.. it's about time spending money in america.. bailing companies out.. i's the lesser of 2 evils.. either let it fail.. or take bad shot.. whatever you lose.. you lose.. lettign it all go would have been worse than what we'rewe also came across one woman who said.. losing the bailout money pales in comparison towhat bothers me is that every person in this country.. doesn't have health care.. that's the only thing that bothers me.. .. so it doesn't bother you that you we may not recover bailout money? no why not?

i won't be around to see it this thursday, the congressional oversight panel will hold a hearing on this issue - questioning treasury secretary tim geithner... about the effectiveness of the tarp program. more struggling homeowners are getting some help with their mortgages. the white house effort to get loan servicers to work with homeowners to change terms of their mortgages has had a slow beginning since launching in march, but so far almost 600-thousand loan modification offers have been made. over 360-thousand three month trial modifications have begun. that's one out of every eight homeowners eligible for the program. 360 thousand loan modifications that's...there's value in that because that's the population of a moderate sized city that gets to keep their homes and that's good but to make a dent in the foreclosure crisis you really need to get it something like four or five million over the next few years. otherwise this is just a drop in the bucket. and that's the white house goal...to help four million homeowners by 20-12 more servicers are signing up for the program. in july, just 38 were included. in august that had expanded to 47. these include big names like j-p morgan, wachovia and bank of america...but how aggressive each one has been in changing mortgage terms differs greatly. for instance, of those mortgages serviced by j-p morgan that are at least 60 days behind, trial modifications have started on a quarter of them. that's more than 106-thousand. but at bank of america, just seven percent of those eligible for a trial modification have been enrolled. of the 47 loan servicers signed up, 14 of them have not started any modifications. if it has to go through layers of bureaucracy and lawyers and processes and all these things, they are left trying to steer a battleship when what they need

is a speed boat. van zalingen calls it too big to succeed. the four servicers with the most eligible mortgages are bank of america, citi, j-p morgran and wells fargo. together they account for 58 percent of eligible mortgages. combined, they've started modifications on just eight percent of those eligible. don't know what the s&p 511 month high he even posed labor day dave bahoric is back with us with trade the news. steal and a lot of folks looking for the fall we're gonna talk about that later in the program pretty positive action dave. pretty positive price action as far as the gains for the day. really a lackluster trade a dead trade a very difficult for traders to make money in this typable market. there isn't really any uncertainty in the market just a bunch of certainty. and with certainty that is the prices continue to

go higher. to go higher and for what reason? i don't know maybe there are a couple that you can hang your hat on. let's move over to the oil market because we have seen nice air driven home by the dollar and how long can the trade last supply and demand haven't come back in? i don't know the supply and demand does have to come into focus you just reached to a peak drive time season and the best at the refinery capacity utilization was 86 percent and that was one time only. now you're in the refining meannesses and a low demand for product they're coming into a soft part of the season and the mayor was there during the peak time. i don't know good question i've got questions across-the-board in every market today. because ratios are not proper fundamentals don't jive with price action and we are rallying if you saw the based

book today pull them apart that was about as bearish as it gets with home prices continuing to slide we haven't dealt with any legacy trade in the banking sector yet we are going higher because they wanted to go higher and when the game is over we will see what happens. there are more buyers and sellers dave bahoric traded nose. c o m over at the cme group. take care. s still to come a native american tribe makes history on wallstreet...it's latest move it hopes will empower its people and their economy. but first...we're joined by two market pros...hear what they have to say about recent market moves.

to crunchy oat bunches. taste the delicious surprise in every spoonful. new honey bunches of oats with pecan bunches. beautiful. it's said that new bull markets are built on uncertainty, climbing a wall of worry. that's certainly what we've seen in the past six months with the s and p 500 up by more tan 50 percent since march. scott sherdian of thinkorswim and

lincoln ellis with the linn group are back with us. it said that a new bull market is built on uncertainty climbing at a wall of worry as we see over the last six months or so the s and p 51 up by more than 50% since march. are due of market pros back with us lincoln ellis and scott sheridan on the in which the course one. welcome back to was a month ago both of you were here and the s&p was three percent lower than both of you were a little bit bearish. more bearish now lincoln? only 3 percent more so i don't need to be any more bearish but i do think the market showing signs of being a little tired. is showing signs of beginning to roll over and again the fundamentals that are beginning to emerge this afternoon simply don't support this kind of be shaped recovery that the market is anticipating. scott how about a month later% higher for stock prices still bearish? if i told you i was a bullish with to be surprised? i would fall all of my chair. the fall of your chair i am still bearish. if i am not accepting what is going on here as a rational mold i think it's a mind-set that has been created

and accepted by investors and traders and its of momentum thing right now. he can't fight it and if you do the bears are getting hurt and the move. it will fail to settle know if this tomorrow i don't know if it's a weak six months both of you guys have been having very reluctant to put time on it september is traditionally the worst month of the year and one of past has that begs indiction september is it. we first are beginning you two together it was backed in early summer even then you were questioning the rally lincoln has anything changed fundamentally here the market continues to see higher and higher prices? i don't think that anything has i think unfortunately guess the thing that worries me the most. unfortunately in this environment but it worries me is this priory from equity managers that we are seen popping out of the woodwork. the green shoots blossom into a full-blown bush's and that we

are going to have to bring out the because the growth is really here to stay. that's just not the case. unfortunately is going to be the same people are going to get hurt when this thing starts to implode that we are hurt last fall into the winter and that to believe but i think the disappointment part about it. one measure meant a big measurement of market settlement the cbot volatility index continue although pop earlier this month continues to show a lack of concern and lack of fear. it does if you're looking at it from the levels that we hit doreen the meltdown. and now we are 25 who but if you take a back 1218 months pushes eight months we were a lot at the 101112 range. so really are still significantly higher than where we were but not for looking at the time frame of

the meltdown. but if you look at what's happening now on the occasional days where we do have a downtick this to the volatility index the vicks really pops so that's telling you or same to me that people are a little nervous. they're looking in going let's keep the train going as long is it going but have been when it ends. big board the cme called trade this week back to work could still a bear market worries volume? volume is not there and scott is right really the only days we saw volume pickup is on the opening. the problem structurally is going to be as we drifted higher and higher you have people who have bought ian and i think scott made this point last time the natural buyers for this market when it starts to come down will be going. it won't be there and then you get the scan and price action in the new kid another overexposure to the downside. any can second be to put a time frame on a stick it down over?

sometime this century. there enough. 90 years still left the net. before the end of this month. there we go lincoln ellis right along gust scott share it with think or swim. and straight ahead on the show... a native american tribe makes big moves on wall street...why it's decided to leap into the financial services business....that's next.

one of the newest owners on wall street is a native american tribe from south dakota. the lower brule sioux tribe is

thought to be the first to completely own a u-s financial services firmbuying broker- dealer and asset management company westrock, with about $1.4 billion under management. michael jandreau is the chairman of the tribe. michael congratulations on the deal. why is a native american tribes interested in owning the wall street? first thank you. is owning up part of wall street is generated by the lack of services that exists at our reservation level. for years and years under the treaties that were agreed to by the tribes services were to be generated for health and for education and welfare housing for those activities that mequality and quantity of life. how does this deal considering was brock is in lower manhattan and the tribe

is located out in south dakota? first of all is our desire that the capital of is generated will allow us x access and generated back to the tribe can help us meet those many obligations that exist there. as a sovereign entity of the triad it does not have to pay income taxes federal taxes on profits generated by their business interests already including establishing casino agricultural and prescription will the same be true from the west block deal? to some degree yes. that will happen. and that will be i believe a fair roll part of it. so what kind of savings the you expect because what kind of

capital do you expect for the reservation over next several years? well i don't really have a true picture of all of the capital that will flow back. i take it will be substantial enough to help us meet those obligations that we have. also to allow us to deal with more importantly those needs that exist right no that are unmatched. colombo sneeze be jobs for the reservation for tribe members? could this be a source of employment? it could create as a part of the spinoff i believe many per minute japs and activities that we are currently attempting to develop today. with the limited resources that we do have. was the unemployment rate in the zero preservation and south dakota? for try which is

probably one of the lowest its 44% at this point in time. most of the reservations are suffering as 75 to 85% unemployment. as i mentioned to your star worship of the course of study years as chairman of the tribes certainly has divide gaining an agricultural popcorn this financial services however quebec is it much different type of industry are there risks associated to it? certainly there are risks associated with any new and innovating process but we have put together management that we believe is entirely trustworthy and integrity is there. it does

mark the first 100 percent on financial services firm michael along with the chairman of the laurel suit try. a barrel of crude oil is close to the highs of the year plus the government issues its weekly reports on or you inventory so we will take a closer look at the charts coming next.

this thursday the government comes with the weekly figures on or lavatory sometimes it can be

a marked more taking a look at or yolks u.s. oh is exchange traded fund attracts the barrel of oil a close to yearly highs not quite but your date is up almost 12 percent. over the past several weeks these numbers are usually bullish meaning high roll prices if. which can most leave mean higher prices at the gas, but you continue to see on the u s o chart this tried to march climber above $38 a share from exchange traded fund that tracks oil prices. uso has been able to go above $39 a share all year long is taking a look at oh i h that's where the oil sector as the oil service her older stock exchange traded fund attracts companies these are the companies that drill for oil. this full performance is phenomenal of almost 40 percent. clear line in the sand electorally $110 a share has been clear resistance and were back at the line. check out the web site and of course the phone number the website and

comments at first business x. c o m what the boys know #3126608397. we want to hear from you. thanks for tuning in. we'll see you next time everybody.