tell us what we expect to hear from mary jo white.hey will be getting a news conference this morning. have them expect to herald this case is a breakthrough in terms of the way the sec is operating. i think the sec realizes in the age of computer hacking it really has to change the enforcement model and aggressively partner with fbi and others to take down these kinds of schemes. one thing we saw with the insider trading prosecutions of galyon and other hedge funds a few years ago was a really long investigation that looked into the personal relationships that these traders have. the thing hacking allows is you can get the information without being a wall street trader. you can cap -- hack a company that deals with press releases and trade on the information, which is a huge right to the stability and fairness of the market. i think the sec will say we are on top of this issue. matt: as you know, anyone can go and findrk web contract hackers out of russia that probably would do this kind of thing for you for the right price. do we exp

never. >> dean cheated on mary jo with tori and they divorced. was unfaithful to spelling too. some of the drama played out on true tori. >> so many people came out, it's so great. it's karma. isn't that a fantastic feeling? i was like, no. it's actually really horrible. >> this week, josh duggar has confessed to cheating his wife. we know that dean has gone for rehab for sex addiction. how do you deal? how do you cope with husbands that can't stay faithful? >> to be cheated on is such a horrible betrayal. it's really a horrible betrayal for anybody to get over. >> if you had to get advice for anna duggar? >> i think it would be difficult to stay in a marriage with infidelity. people do, but it certainly, if it happens once, chances are it's going to happen again. >> we reached out to dean for comment. he has not responded. meanwhile, tori has been on vacation posting these photos of the kids, but the most important reason was her new book about living gluten free. >> i went gluten free for a specific reason. my daughter got an auto immune diseas

and we're sitting down and talking exclusively with mary jo about her lawsuit. we'll have that tomorrow. interesting stuff. >>> last night, cameron mathison got the first chance to ask jennifer aniston about her secret wedding. >> i gave it my best shot. i did. but first, i got to show you this. kelly clarkson broke down on stage in l.a. crying during a song about her father and then boom, the surprise announcement. >> kelly's fans showered her with lots of love as she explained why she's struggling to continue her emotional song "piece by piece." >> something happened. didn't want something weird or drunk. >> she's already mom to adorable 14 month old river rose with husband of nearly two years, brandon blackstock. >> i'm so, nothing is wrong. everything is good. but i'm a mommy again. >> now from babies to marriage, jennifer aniston stepped out last night for the first time since pulling off her secret wedding to justin theroux. jennifer aniston wasn't as private about the details as the wedding itself. >> we had the beautiful luxury of having a beautiful priv

i'd like next to call on mary jo light the chair of the s.e.c.cly because the s.e.c. has been a terrific partner for my office, not in just this case but we worked closely with her and other folks, with impact for investors not just for new jersey, but all around the country. >> thank you very much, paul. it's an honor to be here today to be invited to be here today. i also want to congratulate all of the law enforcement agencies represented for their extraordinary efforts on this groundbreaking case to safe guard the integrity of our markets. i will focus my comments on the securities law violations alleged in the s.e.c.'s complaint which shows how cutting-edge and important this case is. it also illustrates the risk posed for our global markets by today's sophisticated attackers. now, the s.e.c. has uncovered and successfully litigated hacking and trading schemes in the past. today's international case is unprecedented, in terms of the scope of the hacking at issue, the number of traders involved. the number of securities unlawfully traded, and

adam. >> mary jo white was talking about 32 individuals on civil side.he criminal issue, that is the press conference she was speaking. we heard from the u.s. attorneys in newark and eastern district of new york but let's get to the nuts and bolts what went on here. on the criminal side, nine people were charged. two of them ukrainian hackers according to authorities. six stock traders and one real estate developer. they're charged with a $30 million scheme which they were able to hack into computer systems of newswire services, that report things like earnings reports. those companies being market trend out of toronto, pr newswire, out of new york and business wire in san francisco. those companies, by the way, were not charged. they appear to be victims of this hacking. now prosecutors allege this all started back in 2010. and that they were charges these peoples with computer fraud, conspiracy, to commit money laundering. listen to what mary jo white had to say. >> hacking becomes more sophisticated. hacking becomes more sophisticated. we have to be a

chair mary jo white detailing a groundbreaking case involving the global group of 17 hackers and traders and 15 firms and funds. the s.e.c. alleging that they netted $100 million in illegal profits. >> all companies should be vigilant. all of us should be vigilant in protecting our systems, taking measures to detect and guard against hacking. >> reporter: the masterminds of the scheme, two ukrainian hackers, access company press releases before they were made public. the hackers infiltrating three wire services through malware and employee logins and then sharing the information with the traders who bought or sold company stocks or options before the release went public closing out their position soon after. the case highlighting the vulnerability of our financial system and while banks spent billions on building their si r cybersecurity system, they are looking for the soft spots. >> they are always going to look for the weakest links and they targeted the news wires. >> reporter: over a five-year period, the group traded on 800 different releases, most involving earnings reports of com

mary jo white comedy sec -- whit e, the sec chairman, said there is flexibility built into this rule. there will be room for some companies to move around that number. it's a matter of in what ways they decide to do it. he will vary by company. company.will vary by pimm: let's say a company has a large force of contract workers are workers outside the united states. 5%via: you can admit up to of your workforce outside the united states. you can admit contractors from your median -- omit contractors from your median number. theseabout nike or clothing manufacturers where they do rely on contractors for their manufacturing. they might have a slightly different numbers and another company. pimm: sure, because they have different inputs into the equation. what about the chief executives? what about at the chief executive level? pay is so hard to measure. you can look at it a million different ways. some of the flexibility comes in when you look at when and how companies will pay their ceo. if you are hiring a new ceo you might give him or her a lot of equity. options that are not exercisa

still coming up, mary jo white calls today's insider trading arrest unprecedented in nature.mputer hackers, we have got all the details, coming up next. ♪ scarlet: it is noon in san francisco. this is "the bloomberg market day." hackers and corporate announcements, guess what? millions. stunned theberg tech world with a major reorganization and a new name. what about this new clothing organization? scarlet: reach comes to an agreement on terms for new aloe deals. one of their opponents? ♪ scarlet: good afternoon, i'm scarlet fu with eddie lu on this tuesday -- that he lose on this tuesday. -- betty liu on this tuesday. coming out of china, you can see the dow is down 250 points. we basically erased all the games that we saw yesterday. which actually erased the losses

pimm: mary jo white saying these events are "a brazen scheme to earningspublic information."will speak to our own cyber security expert from washington, d.c. coming up next. ♪ betty: you can see federal authorities speaking right now in brooklyn at a press conference, announcing they have broken up a major cybercrime ring locust on insider trading. hackers based in ukraine, pennsylvania, and the u.s. state of georgia stole more than 100,000 corporate press announcements and traded that information before it became public. boeing and hp were some of the companies affected. pimm: the indictments in the complaints allege that $30 million in illegal profits were made. five men were arrested this morning in georgia and pennsylvania. for more war indicted on fried for more people were indicted on fraud charges. that is security jeh johnson. mike riley is joining us from washington. what do you make of the arrest that are made this morning, is it going to have a substantial effect on cyber attacks to glean this nonpublic information? mike: it's an interesting question. one of the th

bobby kennedy, teddy drove off a bridge on chappaquiddick island killing his 28-year old passenger, mary jo kopechne. "david, the kennedy family reaction to crisis in the past has always been remarkable. how has the family reacted this one? have they been involved in this talk tonight?" "well harry, they always draw together in any crisis and i think that they've done this again. i think the striking difference here is that in the past their tragedies and their griefs have been things that they've always been willing to share, openly with the public but in this instance they haven't done that." ted kennedy would survive the ordeal relatively unscathed not only physically but politically as well. though the curse so callously attached to the kennedy name would endure into the next generation. "good evening. once again, the kennedy family is stealing itself tonight to deal with tragedy. after take-off last night from new jersey, a small plane carrying thirty- eight year old john f. kennedy junior, his wife and sister-in-law vanished on approach to the massachusetts island of martha's vineyard

sec chair mary jo white is infuriated, announcing that hackers who wanted that got it. making a stunning amount of money off illegal hacks into press news wires. can she bring the bad guys down and get the money back? one legal eagle's opinion coming up. >>> and time to learn the alphabet google style. what the street thinks about the tech giant's genetic change? stay tuned. two streetlights. the only difference: that little blue thingy. you see it? that's a sensor. using ge software, the light can react to its environment- getting brighter only when it's needed. in a night, it saves a little energy. but, in a year it saves a lot. and the other street? it's been burning energy all night. for frank. frank's a cat. now, two things that are exactly the same, have never been more different. ge software. get connected. get insights. get optimized. nobody's hurt,but there will you totalstill be pain. new car. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it. what are you supposed to do, drive three-quarters of a car? now

the current chair, mary jo white , has announced a review of all sorts of market structure questions. and i think that's an enormously beneficial undertaking on the part of the sec. real issue i see it, we're becoming a nation of effectively day traders. they're going in for incremental trading and using computers in enormous numbers. high frequency trading is very often accompanied by spoofing and putting in orders that have no real intension of being met. those things can be manipulative and and adversely affect our market stability. deidre: so, harvey, how concerned are you, let's call it for the little guy? we were covering all last week how numerous online brokerage sites, people couldn't access their accounts, whether td ameritrade, charles schwab, any others, people couldn't sell even when they wanted to. on a scale of one to 10, how worrying is that? >> 11. it basically is critical that people be able to access their accounts and be able to engage in orderly trading. if markets are backed up or if there are brakes put in place that we have automatic brakes put in when trading

joed zidyjody. >>> when we come back, meryl streep. >>> good morning. it's 8:25 on this wednesday morning. i'm mary calvi. police have identified a man in the shooting in redhook brooklyn. frederick allegedly opened fire, wounding five people, four are believed to be innocent bystander, and the victims include a pregnant 19- year-old who lost her child. >>> the nypd officer caught on camera slamming a pregnant woman to the ground has learned his punishment. the the civilian complaint board said he used excessive force and recommend he lose five vacation days. the woman's lawyer says the decision is too lenient. >>> new this morning, an apparent health scare for sandra lee. governor cuomo's long-time girlfriend is in the hospital right now. she was rushed to the hospital last night, where she is expected to be monitored for a couple of days, suffering from a fluid buildup. she was diagnosed with breast cancer in march and had a double mastectomy in may. >>> an update on plat is a -- an update on the plaza hotel's suit to remove the citibike rack near the plaza, but the appellate court upheld the lower cour

mary at at 5:00 a.m.. i think fred lane for joining us, good to see you. mike, wonderful to have you on the program, join kent, we will see later on the program. every clinton wants to make college more affordable. would joy millennials think of that? we will talk about that with the attorneys, keep it right here, millennial round table coming up. you are watching fox business network. stay with us. (vo) rush hour around here starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours. when broker chris hill stays at laquinta and fires up free wi-fi, with a network that's now up to 5 times faster than before you know what he can do? let's see if he's ready. he can swim with the sharks! book your next stay at lq.com! maria: google makes an announcement about the future of the internet giant, china's central bank staving off economic turmoil. do