>> jeff: he's talking about scams touting money king opportunities in the worthle sharesf old g.m. coming up,n investor alert. >> susie: tonight's street itique guest says wal-mart's not the ly retailer cashing in on the recession. he's patck o'hare, chief market analyst abriefing.com. >> jeff: then, it los like more peoe are paying their credit cards on time ameran express and capital one both report delinquencs are down. the ne helped stocks surge as the dow add over 250 points. >> susie: i'm susie arib. >> jeff: and i jeff yastine. paul kangas is offonight. this is "night business repo" for wednesday, july 15. "nightly businesreport" is me possible by:

this proam was made possible by conibutions to your pbs station from viewers like u. ank you. >> susie: good eveni everyone. jeff: no alikely hood of support over the neaterm. end quote. th means no mone to hel the cash-strapped fi. cit is evaluatg alternatives and one of the nation's largest small business lende servi thousands of firms ahas been on the verge ofankruptcy for days. >> susie: harsh criticism toy of president obama's plan tmake the federal reserve th"super relator" of the u.s. financial system.

an institutionalnvestors group led by twoormer heads of the securities and exchae commission says at won't work. they say the central bank shld not get the job ofreventing systemic risk in the fincial stem. thatask is the centerpiece of the president's plano restructe how banks and other firms are regulad to prevent another financiacollapse. >> susie: arthur levitt d wiiam donaldson's criticism of thfed was blunt. their report compid by the investors' working group sai instead, they are recommding the creation of an iependent oversight board to monor risk manament. th so-called "systemic risk oversight board"ould be appoted by the president and approv by congress with no affiliation to governmen agenci. the task forces also recommending hedgeunds and

private equity firms brequired to rister with the s.e.c. and be subject to oversit. over the couer derivatives, like cdit default swaps, should trade on regulated exchanges and be subject to stct government regulation. and congress suld create a new agency to regulate consumer financial products including mortges. >> susie: i sat down wit william donaldn earlier today and asd him why he's opposed to the f taking on the job of "systemic risk regulator." >> we feel that the basically the federal reserve has got its handsull in terms o monetary policy and felt an indepdent oup that is not coming out of anyone one of they existing agencies, independent group with great strgth in terms ofhe

commissioners d board members and are particully strong staff withhe maate and the authority to goanywhere they wa, it is a way of rlly gettg at the sysmic risk oblem. >> susie: u're proposing the oversi board and treasury secretary geithneraid you can't put out a fire with mmittee. >> the kd of editing we're talking about here is a sll group that bypointment and the people apointed have different dimensions of experience a a strong cirman >> susie: and said hedge funds and ivate equity fuse registered witthe fcc. bernie moff's funds were restered and also cheed thousands of investors so why would this work. >> he didn't register. the ing regtered was a different business so thisther

business that wasuch a fraud was not registered nobody knew about it. it only seems logicalhat if funds are put together wheth you ca them hge funds or whatever tre should be some authority that that's right to go in and look at the procedus wiin that fund and lookt things such as h they price their securities, at cflicts of interest they have, etcetera, etcetera. >> sie: i'm sure you heard it id that weeally don't need new regulation and structure we need srt regulators to enforce the rules we alreadyhave. what are your thghts on that? >>here are a number ofules and regulationse don'thave. a ole d derivativearea that has gotten us in trouble and no oversight from tc and i think

clr we need affecti regulators and clearly we need we need peopleho ar trained and again this is a problem and a challenge and oprtunity to bring peop into the regulatory agcies that e trained and know what theye talkingbout an eager to work throh that agen. >> susie: what your analysis of the obama reform pla is it the right soluti to rerm the system? >> w say that it's a very good start. a goodtart but we're takin thgs a little further and also counseling that the whole systemic part of this and me conflicts of terest that are going require more study and we should not move too swiftly. >> sus: so what's the oneake away message you wou the oma

administrationo take from your report? >> i hope they take a good hard look asome of the areas we'v pointed out and take and see if ey want to add toheir oposal >> susie i guess wt it comes wn to is what investors care about and will the rerms ultimately spot risks ithe future and will they be able to prevent a bere doff situation from happening again at are your thought on that? >> there'slways going to be in a socty as big as ours and a global and financl investment world ere are going to be people comin up with schemes ando forth and so will be etty devious i'm se so can you say that amadoff kind of thg would never happen again wi proper regution, i don't think you can say that. the st you can do is to address the cses of this situatn which the

congressional committee taki this on is gng to do and tn to do the best you can. >> sus: pleasure talking to you. thk you. >> thanks. jeff: while the investors' working group made recommendationaimed at prevenng another financial crisis, congss today named a paneto investigate the crisis. form california state treasurer phil angelides wil lead theen member bi-partisan group. congress called r the probe into the wor meltdown since the grt depression earlier this year. the panel wi have just over a year to geto the bottom of things. it has to rert back to congss by december 15 of next year. >> susie: former tasury secretarhenry paulson is defeing his actions during the financial isis. tomorrow he will tesfy on capitol hill about banof america's coroversial acquisition of merrill lynch paulson releed today his prepared remarks, sang bank of america had no legalasis to nix the merrill deal and doi so would have shown a que, "colossal lack of judgment paulson al says it was appropriate for him toarn b.o.a's c.o. ken lewis that

the bank's management could ousted, if irejected the merrill purchase. jeff: investors viewed toda as a colossal buying opportunity, after intel's better-than-expected results last night. the dow opened nearly 100 pots hier at the bell. intel ares leapt 8%, giving the doa 180 point gain by noontime. adding to the bullishness, credit card issuerlike american expre say they're now eing fewer defaults and denquencies. that helped the financia and added more fuel to today rocket ride gher. e dow rose 256.72 points to close at 8,616.21. the sdaq added 63 points to 1,862.90. the s&p 500 gained 26.84oints to 9328. in the bond marketthe 10 year note fell 1-4/32 to 96utting the yield at 3.61%.

>> susie: shares othe old general motors loshalf their value day as regulators lifted a trading ban on theenny stock. trading was lted friday after some investorsonfused the new g.m. that emged from bankruptcy with e old g.m. stock that remains taned up in court. to be clr: the new g.m. isn't publicly tded now and most of the company is oed by the u.s. government. but what about those old g.m shares? as darren gersh explains there still virtually worthles reporter: it was stunning ne. last fday, a reborn general moto peeled out of bankruptcy fasooner than anyone thought. and shares in g.m. jumd on the news. the ly problem is, there are nohares in this new g.m. they were buying a corpse when they thout they were buying a baby. >> reporter: fince professor james angel sa many would-be inveors thought they were bung the new, post-bankruptcy

g.m., wh, in fact, they were buying g.m.'s cast o parts-- the assets that arstill languiing in bankruptcy court and mit be stuck there for years. >> many of the online news wes basically said "neral motors, gmgmq today emerd from bankruptcy. soany people thought, ah ha! i cabuy stock in the new company now, butt wasn't the new company they were bung. it was the corpse the old coany. >>eporter: when g.m. went bankrupt, its d stock got a new ading symbol-- gmgmq. that confused somenvestors so relators have given the old company a new name-- mots liquidation company. the financial instry regulatory authoty's john gannon wantsveryone to know buying stock in motors liquidatioor any bankrupt company usually means you ar buying a lemon. >> people who thin if they buy

>> reporter: regators did not haltrading in the old g.m.'s sharesntil just after 2:00 p.m. lt friday-- too late professor angesays. but nnon says securities law required tm to wait for the kind ounusual trading that to place on friday. >> pple who think, if they buy the old stock, wn the company emerges from bankruptc they are all of a sudden gog to make a big return, arerong. what is probably going thappen is the stock igoing to get canceled. their vestment will be rthless and there is probabl going to be new stk issued, but they're not gog to have rticipation in that new company. >> reporter: theew g.m. plans tossue new shares next year. shar in motors liquidation now cost about amuch as a wspaper. anregulators warn the stock will probably worth nothing the time the bankruptcy cou finishes its wk. rren gersh, "nightly busines rert," washington. jeff: municipal debt issuer could soon have dot their i's and cross thr t's in public. the s.e.c.ants the nearly $3 illion muni market to have t same disclosure rules as publicly traded coanies.

the agcy wants states and counties to be up-front abou things like bankptcies so instors can make better decisions. and it wants thoseisclosures qukly-- within 10 days. right now, muni debt issrs ha some gray area to work with disclosingn what's called a quote, "tily manner" >> jeff:ow let's take a look at some stocks in the ne tonight.

>> jeff:onight's street

critiqueuest says it's still too early to get excit about an economic recovery. he's patrick o'har chief market anast at briefing.com where he writethe bargain hunting lumn. pat lcome back to n.b.r. >>i, jeff, thank you. >> jeff: fst give us your sense of thearket today, the dow up 250-plus. >> elier in the week the s&p was down and wehink it got angst out of the way so what he we witnessed was a lief trade because earngs are coming beer than feared an the market appead with his cond quarter rept and the guidance is ven percent below the year ago perd intel is still not operatingn a normal environment andshey a bit daunting to us given we're 18 months into the recession so w

wouldn't get carried away with what we' seeing so far >> >> so patient. you still have to wait around a bit. givenhe run we'vead off the march, yes, we would agree with that. >> jeff: you write the rgain huntg column for iefing.com. what's your comments on how you dene a bargain. >> to art from from a top-down prespective and lookinat the broar economy and based on where we think the economy is heading breaking down to industryroups and one of the value-oriented metrics i t price to earnings growth ratio the pe divided by the growt rate. >> jeff: what's your thought here as far asf you had t pick oneargain what would it be? >> given the top-down view and the outlook that isn't quite as rosy as thrket'strading on wednesday's tradg suggest it shld be we look at the dlar tree stores the mbol is drtr

has done well with in th recession period and the unemployment ratexpected to hit double digits over the next future here we think it wi going to benefit from the ade-down effect because t consum has limited wage growth. >>eff: the stock has had a tremendo run in recent months and over the past year or so. doou think there's still room for thstock to gourther gin timeor the gains to dist? >> sure. it's probably going to move with the ebb and flow of the market so wn youget a od upday hinged on favorable prospects and the stoc is likely tonder perform wn that view changes stock becausit hahad a good ruwill probably ttle done but give enwhere we think the economy is headed we like the proscts for the lonterm investors. >> i s the ceo selling a bi

chunk of stock. >> it's prudent to takeome money off e table and we're comforble with that happening right now. >> jeff: and pat, any disclosureto make regarding dollar tree? >> no, i do not own ock at this time. >> jf: pat, thank you for ming back on to the program. >> thank you, jeff. jeff: our guest, pat o'hare, briefing dot com. >> sie: tomorrow, we'll see if investors go gga for google's latest earnings. we'll analyze the nuers and the outlook. >> susie: a formerredit suisse broker turned fugitiveas been captured. juli tzolov was picked up in spain today,fter going missing in june. tomorrow, a heing is set to determine whatmpact the capture will have on h upcoming trial. it's s to begin next week. tzolov icharged with fraud and conspiracyor buying auction rate securities whenis clients thought ey were puhasing federally-backed studentoans.

>> jeff: c communications is sending the travel chann on a trip to a w owner. reuters is reporting aauction for e cable channel is expectedo begin in the next few days. ssible bidders include scrip networks interactive and tim rner. the travel chann is valued at up to a billion dolls. x bought it in 2007.

>> sie: here's a look at at's happening tomorrow: ekly jobless claims are out and the naonal association of home buiers releases its july survey. also, quarterly results om harley-didson, i.b.m., j.p. morgan, marriott and nokia. >> susie: so tomorrow, wal- mart will unveil a new ratin system, but this one isn'tor movies or music. instead, it's designed thelp shoppers evalue the social and environmental impact othe products they purchase. but the stainability ratings won't be in place for while. firs wal-mart will send questionnaireso thousands of its ppliers asking about water used and carbodioxide emissions created in the makg of theirroducts. the effort will be rolleout in steps overhe next five years and wal-mart hopes oer retailers will get on ard. >>eff: recapping today's market actio shares rally on

an improved outlook from the federal reserve and tel's outlook. e dow gained 257 points. and the nasdaq gned 63. and to lrn more about the stories tonight's broadcast, toatch our streaming video and to take part in our daily bl, go to "nightlyusiness report" on pbs.org. you can also email us at nbr@pbs.org. >> jeff:hat's "nightly buness report" for wednesday, july 15. i'm jeff yastine. goodnight everyone and gd night to yoususie. >>usie: goodnight, jeff. i'm susie gharib. we he to see all of you again tomorrow evening. "nigly business report" is made possible by:

this program was made possle by contrutions to your pbs station from vwers like you. thanyou. caioning sponsored by wpbt captned by media acss group at wgbh access.wgbh.org

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an expert on the impact the media. today u have television. people he at least one tv set inheir home. whatever messages cong on that screen is being extended to the eire family. now that'awesome. it can baffecting our country anculture foyears to come. that's o of the reasons why puic televisn is so important, because it does assume that responsibili. ed includ his public television stion in his will. consid joining the community people who want public television to spa generations.