having joined pwc in 1976, mr.bowers has been advising clients with respect to their tax obligations for over 37 years. i'm also joined by steven williams, the managing director with pwc, mr. williams is a economists and holds a mass master's degree with a cops trags in international economics and be with us since 1982 and specialized in transfer pricing for 28 years. i understand that today's hearing relates to the tax imapproximately qualification of a business reorganization that caterpillar inc. began almost 15 years ago. i was one of the partners who provided taxed vice to caterpillar and it's outside law firm in connection with that matter. mr. bowers is a tax partner who assisted pwc's audit team of the tax aspects of their financial statements. mr. will yaems provided caterpillar with assistance regarding transfer pricing rules. at the outset, let me say that on behalf of pwc, we recognize the long-standing interest of the subcommittee in corporate tax issues and the importance of those issues. in that spir

pwc noticed some problems with the investigation.y should look into this sort of thing. .he bank said no they do leave it alone. they missed things because they were told by the client to miss them. >> why isn't this a conflict of interest issue? how pwc could be incentivized with the allure of more consulting work. it's to their advantage not to take a hard look. forced them to split up into auditing units and consulting units, whether as part of a separate company and look into the research that was maybeith wall street, that wouldn't happen. you have auditing companies that could be pulled in to do this kind of work and consulting companies which would be assigned to do different things. >> this is consulting work. >> if this is reviewing transactions? >> this would not be an audit. they are an auditing like work. sometimes this doesn't have anything to do with scrutinizing illegal transactions. >> this isn't inherent in the actual work. they were hired to find the stuff for bank of tokyo to confess to. you wantor a client, to min

so in that creates to work with pwc we got their arms around how to manage the best property and being able to identify and categorize what you have and where it is in the company is critical whether you are a small company or large company that has global operations. we also recommend companies identify who are the primary threat actors come who's interested in the trade secrets and intellectual property and the potential vulnerabilities in their policies and procedures and in their internal controls inside of their company and in the supply-chain. and also identified the trade secrets that would have the greatest impact on the company's operations and business. also looking at the economic impact of the loss of the trade secret and the magnitude that would have on the business and finally taking all of this information and allocating resources to better protect your trade secrets, thinking of it as an investment and not just a cost. >> thank you senator whitehouse i would like to thank you for chairing the hearing and for the great work you and senator graham have done to make sure t

. >> did you have discusses with the pwc audit team or the consultant for caterpillar about tax risks associated with this virtual inventory? did you ever have discussions about tax risks and what they were doing? >> i did have conversations. that's my role to provide assistance and device to the audit department. >> did you have concerns? >> not with respect to this inventory system. >> you never discussed problems with this inventory system? >> i explained it to them. >> did you have concerns about it? >> i did not have concerns about it. >> okay. >> thank you all very much. appreciate your testimony, your cooperation with this committee. >> please welcome the interim president of howard university, dr. wayne a.i. frederick. >> well come. it is with great pride that i welcome our distinguished speakers, guests and visitors to howard university for the moe men tus celebration of the 50th anniversary of the civil rights act of 1964. it is an honor for howard university to explore the history and future of this ground breaking legislation. it is my pleasure. to acknowledge the followin

at pwc us is the partner israel. thanks for your patience. bit about the israeli economy. everybody tells me it is able to cope with these types of conflicts. my sense is that this time is different. different for a number of reasons. first one is that we saw ben-gurion shut down for a little bit. that it's a sign we have not seen before. is your sense that this time is different or the same as previous conflicts? i think this conflict is much bigger to the israeli economy than in the past. the ben-gurion airport was shut for a few days. eventually, it did not harm significantly the israeli company. we know how to cope with such situations. all, israeliall in companies, israeli economy, and and israelioreign investors, understand that every few years there are such events. we say, business as usual. >> ok. what about the tourism ministry? said it was not business as usual. they said it has been dramatically affected. >> israeli tourism has been affected, yes. this has been for sure period of time. contraryributes to the is that internal touri

it's expected by pwc that the market will gain 7% this year, $27 billion. it could get even bigger.d news is the industry is continuing to grow strongly. some analysts predicting $100 billion in annual sales within the next two or three years across all formats. what that means is that it is creating a great ecosystem for developers. means a vibrant market for gamers. experiences.agical and that will keep the industry growing. >> phil harrison is driving for the x-box. it could be a $10 billion market per year. maker ofto the assassins creed. 2 billiioon people are playing games around the world. that is a phenomenal pasttime. this is a huge market. no wonder you are seeing all of these games maker is defending -- descending on cologne, trying to pimp their wares. christmas. we have the machines selling like wildfire. the playstation 4 and x-box have sold double the amount of the previous generation. now you have all of these hot new games. what is going to be interesting is the new business models. you buy one game. hand over the cash for the cd you played. now we're going into the

the new york department of financial services alleges pwc watered down an antimoney laundering reported covering the bank's dealings with iran and other countries subject to u.s. sanctions. >>> elsewhere, fund manager and activist investor david winters has sold his stake in berkshire hathaway, citing warren buffett's inequity on coke's plans. he said it was obsessive, but berkshire abstained at the shareholder meeting. winters has been a vocal critic of coke's plan, which he says violates shareholder value. wintergreen advisors still owns 2.5 million coke shares. winters had owned 1.2 million berkshire shares. >>> all right, coming up, u.s. markets are coming off a second straight week of gains, despite everything geopolitically, and appear poised to start monday's trading session in the green. we head to the bond pits in chicago for an outlook on what traders are closely watching, coming up next on "worldwide exchange." >>> the u.s. markets have had a terrific run, considering the dow was up 1.7%, the s&p up 1.2%. the problem is, european indices didn't enjoy that because the rally