the s.e.c.'s effort we might have to go to press conference now -- to potentially bar elon musk as being an officer of a publicly traded company. this seems to differ from past instances where it has been done in that he didn't personally gain per se from any sort of fraud. it wasn't insider trading, wasn't cooking the books. >> that is true. and it certainly was for the and the company would make the case that in fact typically fraud when prosecuted by the s.e.c. involves what you just said, perhaps a manipulation of numbers to give a false impression of the fundamentals of the company itself and when it's revealed it impacts the company. they would say it's only because now you have threatened our founder and most important person that shareholders are going to actually be hurt, melissa. but nonetheless, they are seeking what they do typically seek in these kinds of cases, which is to have him be in a position where he could no longer serve on a board of directors or as officer of a company. >>

the s.e.c. accusing musk of fraud and making false and misleading statements about taking tesla private >> we allege that musk had arrived at the price of $420 by assuming a 20% premium over tesla's then existing share price, and then rounding up to $420 because of the significance of that number in marijuana culture and his belief that his girlfriend would be amused by it. >> musk issued a statement saying this unjustified action by the s.e.c. leaves me deeply saddened and disappointed. i have always taken action in the best interest of truth, transparency and investors integrity is the most important value in my life jim, the s.e.c. thought they had a settlement, but it was an unwillingness on the part of musk that he neither confirmed nor deny those charges that led him -- left him unwilling to take that offer. he would have had to step down as chair-minute for tman for tw would have a fine, it would require two new directors, but that's it. that's it. that's all he had to do. he said his inte

the s.e.c. alleges that musk made false and misleading tweets when he said he was taking tesla private at $420 and funding was secured the s.e.c. says investors who purchased stock after those tweets but before accurate information was disseminated were harmed. the s.e.c. said musk had not secured an agreement from any potential funding source tesla plunged in the aftermarket and is still down this morning the s.e.c. is seeking to ban musk from serving as an executive or director of a publicly traded company and that could affect his role as the head of tesla. musk said in a statement that the action by the s.e.c. leaves him deeply saddened and disappointed and that he has always taken action in the best interests of truth, transparency and investors. musk says integrity is the most important value in his life and facts will show he never compromised this in any way. the claim details a tick tock of events it reveals conversations with a sovereign investment fund which we know to be saudi arabia,

about an hour ago we got the news the s.e.c. was charging elon musk with fraud, misleading statements, false statements that led to a move in tesla's stock price that they describe at least was for the before of perhaps defeats short sellers

the s.e.c. suing elon musk, tesla stock tumbling we have the latest on this major developing story. >>> it is decision day for brett kavanaugh. a senate committee holding a key vote on the supreme court nominee today. >>> technology under fire. google's ceo meeting with lawmakers today. >>> pump prices taking a big leap higher. find out how much it will cost to fill up your tank and it is the final trading day of the month and the quarter so we'll break out our quarter-end yearbook and find out what is in store for your money in the fourth quarter. it's friday, september 28th, "worldwide exchange" begins right now. ♪ >>> all right. good morning welcome from wherever in the world that you may be watching i'm brian sullivan thank you for beginning and ending your week with us let's get to your top money and business story tesla stock is tumbling, it's down 10% right now it broke on new that's s.e.c. is suing elon musk for fraud. let's get more on this story from leslie picker in new york >>> good m

this following the s.e.c. suing elon musk. ties fraud but musk is fighting the power, rejecting an offer to settle with the s.e.c do elon musk and tesla have a fighting chance? and how much of a musk premium is there in the stock is it good or bad if elon musk is removed as ceo but stays with the company. >> i mean when the -- when the se s.e.c. offers a olive branch that's it the end of ma are they'll martha stewart you i think jim mentioned that on squawk -- squawk on the street that said, we are finding out. 2807 has been the line in the sand we are below that now. tim has been right i don't know what the premium -- but i think we'll find out in a very real way i don't think there is any way you can buy the stock without knowing the outcome of this stuff. >> top holders have been lightening up on positions you have seen that in the last filing i know filings. >> from a risk management how can you not. >> you don't vacate. >> you can't hold we with whatever is is coming. you it's 244 i think the stock gets cut in half ultimat

and melissa lee will continue the coverage of tesla, the s.e.c.'rence which as we said starts soon melissa over to you. >> thanks guys so much to cover "fast money" starts right now. marilyn story breaking just the last few minutes s.e.c. sues tesla ceo elon musk for fraud. check out the stock, down by 10.25% in the after hours session. you are looking at a live shock shot the s.e.c. about to hold a news conference in washington, d.c. we bring it live as soon as that gets started meantime we have coverage around david faber and phil le poe at a tesla dealership in california david let's start off with you. >> thank you, melissa. let's set the scene for people at this point so they can understand where we are. about an hour ago we got the news the s.e.c. was charging elon musk with fraud, misleading statements, false statements that led to a move in tesla's stock price that they describe at las

the s.e.c. sues elon musk. but what does that mean for tesla? find out after the break people tell me all the time i have the craziest job, the riskiest job. the consequences underwater can escalate quickly. the next thing i know, she swam off with the camera. it's like, hey, thats mine! i want to keep doing what i love. that's the retirement plan. with my annuity i know there's a guarantee. annuities can provide protected income for life. learn more at retireyourrisk.org avojimmy (shouting): james!ased been jimmy's longest. he's survived record rain and a supplier that went belly up. so while he's proud to have helped put a roof over the heads of hundreds of families, he's most proud of the one he's kept over his own. brand vo: get the most out of your money, whether you're using quickbooks smart invoicing to get paid twice as fast or automatically tracking your mileage. smarter business tools for the world's hardest workers. quickbooks. backing you. gives skin the moisture it needs and keeps it

the s.e.c. alleges in the complaint that the focompany's er ceo act the negligently in giving financial estimates six years ago when it announced that merger with boots alliance. as is customary, as part of the settlement, wahl greens theater admit more denied allegations. >> fellow pfizer receive approval for a lung cancer drug. the medicine is a once daily oral drug to treat a rare form of the lung cancer a leading cause of cancer deaths. sharesfi ofr rose a fraction in trading. >>> a eli lilly got the stamp of approval for a new class of migraine medicint offer new hope for the millions suffering from the debilitatg headaches. shares of eli lifrl rose on that news. t megrell looks at the big money in this growingmarket. >> reporter: migraine sufferers know the painful episo t are mon just headaches bringing severe throbbing pain often accompanied by nausea and sensitivity to light and sound. there are three optioor migraine prevention. the fda approved the ealey ly drug emgality thursday. it j

it started falling after news broke of the s.e.c. filing that lawsuit. it all stems from an august tweet that elon musk sent out, hinting he could take the company private. now the s.e.c. has a clear message to executives, what you say on social media matters. the s.e.c. is suing tesla's elon musk, calling this tweet false and misleading. musk tweeted back in august, am considering taking tesla private at $420. funding secured. tesla's stock soared after the tweet. the problem, according to the s.e.c., funding wasn't secured and the stock figure was a 20% premium over that day's market price. this man, faculty director of the sf state graduate business program says he's nod surprised the s.e.c. is suing. >> the s.e.c. feels that that was false and misleading information, manipulation of the stock price, and so even at that time it was quite clear to me that he shouldn't have used the words "funding arranged" or funding, you know, already put in place. >> reporter: musk released a statement, saying, this unjustified action by the s.e.c. leaves me deeply sa

the s.e.c. says this investigation was swift and thorough and that they saw no reason to wait to charge elon musk with fraud. if you haven't seen he will long music's tweet yet here is what the s.e.c. says was false and misleading. am considering taking tesla private at $420, funding secure. the sec says that tweet caused so much market confusion and turmoil that the nasdaq had to stop trading for 90 minutes. tesla's a stock price shot up 6% as everyone from shareholders to journalists were trying to figure out whether or not he was joking. >> we alleged that music's statements were false and misleading because they lacked any basis in fact. at the time he made these statements music had not secured funding for the proposed transaction. to the contrary, we along that he had not even discussed key deal terms including price with any potential source of funding. >> reporter: as for the go private share price of 420 -- >> we along that musk had arrived at the price of 420 by assuming a 20% premium

the s.e.c. calls musk's actions harmful to tesla's investors. >> thee. 's complaint which was filed earlier today in federal district court in the southern district of new york seeks a finding that musk committed securities fraud and injunction prohibiting him from doing so in the future, civil permits, disgorgement of ill gotten gains and a bar prohibiting musk from serving as officer or director of a public company in the future. >> shares of tesla fell sharply on the news in initial after hoursg. trad what happens now when a ceo is sued? eric gourd isn't a professor at the university of michigan law school school of business and joins to us tk about that. good to see you as always. >> hello, sue. >> what ha cens when a is sued? i think it depends in large part on what company it is and what type of company it is and how active a ceo in a company, right. >> yeah, i think that's exactly right. so what happens next for the company is somewhat up to the compan if the company maintains in idea th teslas musk, musk is tesla and they're inseparable, the compa

the s.e.c. claims it wasn't true and musk misled investors. e complaint says he chose $420 as the price for taking it private was a marijuana reference and his girlfriend would find it funny. this is about taking a company private. joking about it. the s.e.c. wants to bar musk from serving as officer or director of any public company. musk is the top executive. losing him would be a blow. not only is musk the public face, but analysts tie his $50 billion market val to you iue tr belief in him. tesla shares fell 12% overnight. musk calms it unjustified. -- calls it unjustified. he said integrity is the most important value in my life. the board says it is confident in him, but going private fiasco is one of several actions lately is causing his leadership and style. there was a three-hour podcast where he smoked marijuana and used a samurai sword and flame thrower. he called a british cave diver in the thai soccer cave rescue a pedophile. he is being sued for that. he is a renegade. that is what people love about him. when you take a company pub

the s.e.c. now seek an injunction to block elon musk from becoming a director or executive of any other company, she says they're sending a strong message. >> there's an attempt to reset a standard of behavior and a norm that we have seen previously but maybe has been eroded by ceos using social media. >> reporter: so the big question, will he will long music stay on as ceo. the s.e.c. says of course he can while the case is being adjudicated. whether or not he will subpoena to the board of directors. >> think this statement from musk. this unjustified action by the s.e.c. leaves me deeply saddened. integrity is the most important value in my life and the facts will show i never compromised in this any way. >>> in other news, tesla's stock took a dive slump is as much as 13%. the federal lawsuit comes after a months of erratic behavior from musk. kpix 5's julie watts with a look at moments that have rattled both tesla and wall street. >> it has been a rough year for elon musk. the announcement is

i don't think the s.e.c. really has an issue with that, the issue is whether you're really being truthful when you say you have funding secured. now that we have the justice department involved, i mean for the s.e.c. they can kind of get him just for that statement not being true. if you said you had funding secured and you didn't, that's a pretty easy s.e.c. case to bring. the justice department, it's a much higher burden. i mean, they have to sort of show that there was some premeditated intent to mislead the market, and that's a lot of times found in e-mails that may or may not exist, something where you send an e-mail to a colleague saying i'm going to show those short sellers once and for all, you know, watch my twitter feed at 4:00 p.m. today. i'm going to say i've got -- >> to be clear, the implication is people are shorting the stock, which means they're betting on it going down. you make a statement like this, and a whole bunch of investors see it and people see it and say i'm going to buy tesla's sto

tesla falls as the s.e.c. goes after elon musk. we have a top short on the stock and an analyst who says hold the phone. and a bold call on nvidia's next move "the halftime report" starts right now. >>> it is good to have you with us on this friday, the final trading day of the third quarter. here to debate and trade the biggest stories of this day are jim lebenthal, stephanie link, jon najarian let's begin with the bull run for stocks, what lies ahead as earnings, trade, all front and center for your money. doc, we're going to keep this going, right got through the historically worst month -- >> turned it into the best month of the year. >> great quarter what happens now >> well, i think we all talk about when bad news can't drive a stock lower, for instance or if, in this case, the broad market we had almost a 5% decline out of italy today that was huge. i mean, when you have people worried about a big economy like that and you can't drive our market down, we were briefly but we've turned things around all three indices are positi

heill ahead here tonight, the s.e.c. just slapped tesla's elon musk with a lawsuit for securities fraud. -1 copd treatm. ♪ trelegy. the power of 1-2-3 ♪ trelegy 1-2-3 trelegy with trelegy and the power of 1-2-3, i'm breathing better. trelegy works 3 ways to... ...open airways,... ...keep them open... ...and reduce inflammation... ...for 24 hours of better breathing. trelegy won't replace a rescue inhaler for sudden breathing problems. trelegy is not for asthma. tell your doctor if you have a heart condition or high blood pressure before taking it. do not take trelegy more than prescribed. trelegy may increase your risk of thrush, pneumonia, and osteoporosis. call your doctor if worsened breathing, chest pain, mouth or tongue swelling,.. ...problems urinating, vision changes, or eye pain occur. think your copd medicine is doing enough? maybe you should think again. ask your doctor about once-daily trelegy and the power of 1-2-3. ♪ trelegy 1-2-3 save at trelegy.com. ...to give you the protein you need with less of the sugar

musk calls the s.e.c.'s action unjustified. >>> all right, so we're getting our first look at the amazing transformation of the actor tom hanks into tv icon mister rogers. hanks stepped out of his trailer on the set of the still untitled movie wearing that classic red sweater and blue sneakers. the film is based on the real-life friendship between fred rogers and the journal tom juno. it's due out in october of next year. he kind of looked a little like forrest gump in red. does he look like mister rogers? >> i think so. i really am excited about this. i was the only child for nine years, so mister rogers was my best friend. >> mr. rogers was your best friend. >> he was my guy. we hung out a lot back in the days. >> and that still hasn't changed as an adult. that's still your best friend. >> okay. you know what, sure. he's a positive dude. i miss him. >>> all right, well, coming up, the breaking headline overnight in the brett kavanaugh nomination battle. the influential group now calling for the vote to be

he said he's deeply saddened by the action of the s.e.c. d has always taken the best interests of the truth. >>> a fix is in the works, but it could create more problems. the plan to shore up the two contraices in the new trans-bay transit center, the plan includes instation numb steel beams. the short-term solution means construction and likely traffic troubles for that busy fremont street. >> the first step is to open fremont street. the second step is to restart the operations of the transit center. >> construction should start as early asweekend. no word on when the new center will be open. >>> investigators say they found the thieves. stores were hit in 19 different california counties. in each case you might have seen some of the surveillance video. it was a grab-and-go robbery, with tens of thousands in apple products swiped. nbc bay area's jodi hernandez jones us with the new details. jodi? >> reporter: it turns out this is a up bigger operation than initially thought. 19 stores across california were hit, including this one here in

the s.e.c. claims it was not true. musk misled investors. it wants to bar musk from serving on the company. the top executive. he is the brains behind the operation. not only is he the public face, but analysts tie tesla's market value to investors belief in him as a genius and innovate or. shares fell --innovator. sharing fell 17%. tesla's board says it is fully confident in musk. going private fiasco is one of several causing several to question him. remember the live broadcast? he took a quick hit. he says he doesn't really partake. it is not good for ambition. >> he knew what he was doing. >> he called a british cave diver involved in the thai soccer rescue a pedophile. shareholders do not like that behavior. >> a bumpy ride. >>> a tragic end for the missing boy with autism. a body discovered in the creek on thursday is believed to be maddox ritch. he took off running last saturday on a walk with his father at a park in gastonia, north carolina. search crew found the body about a mile from th

here's what we know from people close to the s.e.c.,know what they're doing. s.e.c. g into whether the past statements of the company and musk about the company's progress on privatization had a basis in fact. they are examining corporate documents and past statements by musk on these issues with the focus on the model 3 production targets. remember, they missed a bunch of targets, he said he was going to make them -- liz: less expensive version. >> yeah, less expensive version. that product didn't meet the goals. they want to make sure he wasn't just touting it, trying to keep the stock up, that he really, when he put out statements and made statements during analyst calls, he had a basis in fact, was not just making it up. that's a pretty big issue. again, we hear the investigation could last between six months and a year. musk's testimony will likely be taken toward the end of this. again, none of this is written in stone but that's what i understand by people close to the s.e.c. here's something really interesting. everybody is lawyering up on this stuff. i will g

in a statement, he said he is deeply saddened by the action of the s.e.c. and he's always taken action in the best interests of the truth. >>> we have new developments that might have a lasting impact on fishermen and everyone who sells and eats seafood across the country. governor brown just signing new regulations into law that will eventually ban a type of fishing net that has been used off our coast for roughly 40 years. the gear known as drift gill nets is mainly used the catch swordfish but also been blamed for unintentionally killingerurs including endangered creatures like whales. we first uncovered the impact of these nets two years ago. lawmakers took notice. the new law would pay fishermen up to $110,000 to retire their gear. those that don't would still be forced to stop using the nets in about four years from now. >>> we're about just 40 minutes away from friday. it feels good to say it. >> it does. we are looking at some cooler weather moving in. it will be really nice. we are managing to hold on to some rain chances as well. let's bring you to

fourteen percent in value but it is still possible that a deal could be reached between iran moscow and the s.e.c. and you have heard about the latest trouble over at facebook how's the market responded to the news about another massive data breach at facebook. here initially it was a bit of a shocker and the stock dropped by a good thirty three and a half per cent one of the critics of facebook has been for quite some time that they are collecting ever more data but they're not necessarily able to really protect those so what we've heard so far is that obviously in this particular case no credit card information was stolen so that's at least a little bit of good news and the stock recovered the end of trading at the end of the day facebook is down by about two and a half percent but those have been some pretty rough months for facebook since the all time high that was reached in july the stock is down twenty five percent you had scored in new york thank you. now here in europe at the melanne stock exchange lost over four percent on friday as investors were spooked about italy's financial future

he sponsored 822 after the s.e.c. voted to roll back net neutrality rules in june. >> without net neutrality -- internet service provider can block our ability to access websites that they don't like or websites that aren't paying them enough monday. >> just yesterday the s.e.c. chairman called california's bill illegal. it said california's rules were anti-consumer and threatened the rest of the country. >>> now to consumer news about airbnb. >> michael finney here. >> they're popular. everybody talks about all the time. how do you know what you saw online is what you're actually going to get. even worse could be unsafe. here's a look at some safety features -- what you can do before you book to make sure your stay is safe. >> when karen travels she loves to use home sharing websites. >> we love it. because it's really cheap way to travel. >> but when karen arrived at a home she recently booked through airbnb, she was shocked to see the condition it was in. >> as soon as we walked in, you could tell that something wa

. ♪ >>> tesla having its worst day in five years after the s.e.c. musk for securities fraud, and that sparked a flurry of activity in the options mark. let's get back to don at headquarters to break it all down. >> reporter: if you thought tesla's stock was all over the place, take a look at how the options are doing. options volume have surged for those shares on the heels of the s.e.c. lawsuit alleging fraud by founder and ceo elon musk. tesla was the most active single stock name with nearly 800,000 contracts changing hands those put contracts, which give you the right but not obligation to sell the stock at a lower price saw more than four times their average daily volume you could say that those options were sizzling. all of that activity has translated into a surge in implied volatility or the price for those options. options prices on tesla are at their highest point of the year. it might take a little while longer before trading getting back to whatever you want to call normal for tesla's shares and of course those options. >>> dom, thanks. h

the s.e.c.'which was filed earlier today in federal district court in the southern district of new york seeks a finding that musk committed securities fraud, an injunction prohibiting him from doing so in the future, civil penalties, discouragement of any ill-gotten gains and a bar from him serving in the future. >> the stock is down nearly 12%. unclear what tesla does from here >> as we've heard so many people say, the board needs to take control. i'm not sure what that means, jon. >> the stock was lower than this a few weeks ago. it's still just testing the bottom end of its range. >> with that we toss it to "the half." >>> i'm scott wapner is the best quarter for stocks in five years a sign the longest running market of all time is it even close to ending it's noon and this is "the halftime report. >>> bring on october and q-4 can the bulls keep running in 2019 >>> plus, negative charge. tesla falls as the s.e.c. goes after elon musk. we have a top short on the stock and an analyst who says ho

the s.e.c. to impose financial penalties on musk and bar him from serving as an officer for any publicly taded company. now, musk released a statement calling the s.e.c.'s action unjustified and also said in part, quote, integrity is the most important value in my life and the facts will show i never compromise this in any way. >>> getting help with daca, that program protecting undocumented youth, has been in limbo since last year when president trump announced plans to faze it out. people can still apply. today as carlos explains, they got a helping hand. >> reporter: daca has protected around 700,000 undocumented immigrants who came to the u.s. as kids from deportation. michelle's parents brought her to the states from argentina when she was 10 years old. in 2013 she applied for daca protection so she could stay in the country without fear of being deported. >> what daca really allowed me was able to graduate and have a work permit and enter the workforce immediately. >> reporter: she has to

after weeks of scrutiny, the s.e.c. f the company through a lawsuit filed on thursday. juliana, talk about tweeting yourself into trouble, it's hard to think about tesla without thinking about elon musk. i guess the question is how high are the stakes for musk with this lawsuit? >> yes. the stakes are certainly extremely high. this is just one more challenge for elon musk and tesla. the security and exchange commission announced yesterday that they are suing the ceo for fraud and attempting to take him from his spot as ceo. they are charging him for misleading and false tweets. earlier this year in august, he tweeted he was considering taking the company private for a price of $420 per share. the s.e.c. alleges that he came to its number because of its reference in marijuana culture and because he thought it would amuse his girlfriend. elon says these claims are unjustified and he is disappointed and saddened by the s.e.c.'s action. >>> uber has settled claims over the ride sharing company data breach to the tune of $148

i think this team will do better in the s.e.c. this year. more from brian kelly you canar he that at nbsports.com. sunday night football tomorrow night. but giants and cowboys 7 eastern time. eastern 8:20 next the news for most of you except for the west coast. stanford notre dame on nbc with doug flutieathryn tappen. our produer. our mik tirico thanks for watching notre dame football on nbc presented by visa. waiting for a liver transplant.. will die waiting. don't wait. find out about living-donor liver transplants at upmc today. living-donor liver transplants mean less waiting and better outcomes. upmc is the nation's leader in living-donor liver transplants. so, why wait for a liver transplant? call upmc today. upmc. life changing medicine tropical x sÑi florence keepsis g. the winds have dropped off, but some 30 inches of rain. and some communities haven't seen the worst yet. jay gray is live in hard hit]án carolina beach with the latest. what is thetuation looking like for you ñrguys? i"át power of this storm is unbelievable. more than

options volumes surged for the shares on the heels of the s.e.c. alleging fraud by founder and ceo elon musk. tesla was the most active single stock name with nearly 800,000 contracts changing hands most of those were puts. those put contracts giving you the right but not obligation to sell the stock at a lower price. saw more than 4 times the average daily volume you could say that the options were sizzling. so you will a of that activity has translated into a surge in implied volatility or the price for those options. in fact, options prices on tesla are at their highest point of the year melissa, it might take a little while longer before trading gets back to whatever you want to normal for tesla shares. and of course those options. back to you. >> all right, dom thanks so with the stock down 14% today, somehow should you play it. >> mike with his call to action. >> sure what we're looking at is actually playing a range bound thesis the thing is dom just pointed out the stock is moving around sharp lirp in the options are extremely expensive and

the s.e.c. has an important three-part mission, protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. each part of this mission is equally important and should not come at the expense of the other. in his nomination hearing, elad echoed the importance of this commission and furthering it. he stressed the need to promote investor confidence in the markets and the s.e.c. itself and the importance of disspepg that markets are -- dispelling that markets are inaccessible or rigged against the little guy. he is committed to ensure that the s.e.c. has a strong enforcement program, one that holds regulated entities and individuals accountable. elad also emphasized that the s.e.c. must listen to small business owners and investors, many of whom do not make it to washington regularly, whose perspectives are incredibly important to the s.e.c.'s work and its continued improvement of capital markets. the u.s. financial system and markets are preferred -- the prefe

if the s.e.c. to resign and they remove him, i think you will have some really upset tesla share holders, you will see a massive plunge in the price of tesla and it won't be a good day for any of those investors except for the shorts. neil: now obviously the securities and exchange commission, if that doesn't enter into our thinking, if for example he is guilty of some of the things the s.e.c. seems to be intimating, this could easily escalate into a criminal inquiry, couldn't it? >> yes, and there have been some reports that the department of justice is already investigating. so it's not just a simple problem he has. neil: what would we be talking about here? >> we would be talking about securities fraud, because he intentionally made, allegedly, false statements to impact the share price, to crush the shorts, and that is potentially criminal conduct and obviously, it's really, really serious. neil: you have to prove it. if you want to make a settlement with the s.e.c., and apparently one of the i

i don't know why they would open up a parallel civil case to what the s.e.c. is doing. think that the need to show intent to defraud or other breaking of the law in terms of putting the tweet together we've done reporting on it, we know there were conversations with the saudi sovereign wealth fund and good feelings about the point of investment. whether they wanted to take the whole company private or be a key player it seemed that weren't ready to go as musk telegraphed but thab they were interested there's a lot of gray there. >> interesting we had kimbal musk, board member, on the air he didn't seem terribly bothered investors don't seem bothered. >> the model three production numbers will be the most significant material event for that group that we'll see on october 30 when they talk about their third quarter. but to our knowledge the board seems quite confident in musk. they shot down any idea he was going to take a leave of absence. even the search for a number two to help him out which we reported on, they have done reshuffling amid departures but the idea that t

the s.e.c. suing elon musk for fraud over his going private tweet. tyler. >> melissa, the senate judiciary committee expected to vote any minute now on the nomination of brett kavanaugh. ylan muy is on capitol hill waiting for the vote. >> that vote was supposed to begin about three minutes ago now but there are still several empty chairs in the committee room you can see some senators have been huddling together in small groups whisper being to each other, talking on the cell phone because the margin of error for republicans is so small. there are two republican senators who remain decided lisa murkowski and susan collins of maine and two exactic senators undecided weighing whether to cross the aisle and vote for brett kavanaugh. the senators are heidi heitkamp and joe man shun there is also speculation that perhaps jeff flake who it had come out in support perhaps his vote is not solid. so a lot of back room dealing here, a lot of conversations going on, tyler and no vote just yet. the words of senator john kennedy may be the best to describe this s

fourteen percent in value but it is still possible that a deal could be reached between iran and the s.e.c. and you have heard about the latest trouble over at facebook how's the market responded to the news about another massive data breach at facebook. here initially it was a bit of a shocker and the stock dropped by a good three and a half percent one of the critics of facebook has been for quite some time that they're collecting ever more data but they're not necessarily able to really protect those so what we've heard so far is that obviously in this particular case no credit card information was stolen so that's at least a little bit of good news and the stock recovered the end of trading at the end of the day facebook is down by about two and a half percent but those have been some pretty rough months for facebook since the all time high that was reached in july the stock is down twenty five percent yes court in new york thank you. now here in europe for the melanne stock exchange lost over four percent on friday as investors were spooked about italy's financial future earlier at th

a probe that may run alongside the s.e.c. n and with that tesla is down a ryui 4%. >>> kevin brady, the man leading the charge on tax reform 2.0 your money on the line >>> on-demand delivery announcing a $300 million funding round valuing the company at just over a billion dollars granting it that legendary unicorn status joining us in a broadcast exclusive is co-founder and ceo. good to have you back. congratulations. tyinger? >> tiger, yeah >> what brought them in? >> i think they like to pick winne winners. >> be more specific. how long has this been in the works? >> it happened quick tiger led one of the previous rounds with a small amount and a couple weeks ago i was approached and said i'm looking at the fundamentals of the company. i think it's time to accelerate the growth we have worked on our drought efficiency and then the whole thing happened extremely fast. >> he's joining the board? >> he's joining the board. >> how does that change things >> i don't think it will change a lot. he's very familiar with the company

the s.e.c. was just nowhere to be found and it was in fact s.e.c. regulated institutions. this gets to one point i want to make which is two of the common narratives about the failure i think that are deeply lawed go back to gramlich- bliley debate which glass-steagall was repealed in 1990-2000, and the thing in gramlich-bliley, embraced by president trump and the republican party platform is that somehow the repeal of glass-steagall allowed these giant co-mingled investment banks and it was that commingling of activities. ar stearns, lehman brothers, yeah, citi first and foremost, jpmorgan less so. goldman sachs less so on both sides. there is no note that commingling was the source. the stand-alone banks were ultimately first levered and first dominoes to fall as well as some of the major banks and thrifts that had no investment banking. i think that argument is false. the other thing is if they had redid the community investment bank which was originally in the legislation passed by the senate, 55-35, was the sticking point that was removed to get president clinton's sig

innovation could flock to other countries in fact some executives raised questions over whether the s.e.cwas the right government agency to be regulating crypto or whether it should be the cfdc or possible possibly a new government organization dedicated to dealing with digital currencies crypto execs also campaigned that icos and instances of fraud gave the space a bad name and that folks in the room want to be compliant if given the chance the meeting comes amid rising concerns it lawmakers over the woes of investing in crypt of including manipulation and funding terrorism eye two executives in attendance told me they hope the input factored as dachds drafts the bill, the first of its kind that could have wide implications for investing in crypto. >> thank you seema we are joined by carla who serves as circle and participated in the round table in washington. carla thank you for joining us we appreciate it. >> thank you for having me. >> from circle's specific point of view what were you trying to get across to this pannell of lawmakers today. >> absolutely. i think first we are just th

last week i gave a speech where i detailed the fact that we at the s.e.c. etter part of a decade while the exchanges have been profit making entities. and as you and i know and everyone on that floor with you knows, profit making entities can be counted on to make profit that's why our stock exchanges are structured the way they are with 13 exchanges, 12 of which are owned by just 3 corporate entities that's why investors are paying for all of this one microsecond at a time. i'm out to change that >> one problem you have is the public and private feeds which is to say there is the public feed which the nasdaq and new york stock exchange feeds to the public the number where stock prices are at any given moment yet there's a private feed that they charge a lot of money for to a lot of private firms. >> well, that's exactly right. here's the key point to see. the exchanges run both feeds that is, there's a public feed that the law requires them to provide for stock prices and there's a private feed they sell for profit. and they run them both that's sort of lik

. >> reporter: the san jose professor said if the s.e.c. gets its way it would be detrimental for tesla and its shareholders. >> the risk for changing ceos at a time when they are just getting the point of producing enough cars where maybe they can be profitable, is huge. if i was a member i would be cautious about trying to replace him with somebody a bei by anybody else. >> reporter: a technology reporter agrees. especially with the company's history of production delays, labor lawsuits and other challenges including our behavior. >> he has been aggressive in timetables and delivery of product. and basically it is never matched up. they had a lot of other distractions. >> reporter: the professor believes musk and his company are far from doomed as long as he heeds his advice >> act like a normal human being for a few weeks. at least a few weeks. >> reporter: musk released a statement saying, the secretary's action was unjustified and that he was saddened and disappointed . >>> rescue operation in the pacific ocean, check this out. a passen

with jay clayton will matter more he is running a roundtable you can't get anything done unless the s.e.cs these things they're using a roundtable to do it we'll be there with the abcds of broadridge's technology future tim is leading this, ai, block chain, cloud and digital. >> we got it covered thank you so much. that's rich daly, the outgoing ceo and soon to be executive chairman and this is tim gokey, the current coo and incoming ceo of broadridge. "mad money" maglaya is back after the break. i think that she's a very nice girl... ...you never got the brakes looked at? oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies lead with digital. the nation's largest senior-living referral service. for the past five years, i've spoken with hundreds of families and visited senior-care communities around the country. and i've got to tell you, today's senior-

the s.e.c. says the united tech paid for trips and gifts for foreign officials to attract siness which is illegal under us law. the company will pay abo $14 million to resolve the allegations. the shares were up a fraction to 133.89. >>> elsewhere chinese electric car makerrt neos trading on the new york stock exchange today. pricing at shares at $6.26. that was near the low end of the rangecind the p values the company at nearly $6.5 billion. neo, which plans to expand in the u.s. and in europe says i i believ has a better and cheaper product than rival tesla. neoshares finished up 5% to 6.60. then after the bell, taylored brands reported a revenue miss, oeven as theer of men's warehouse and joseph a. banks saw sales rise across brands. earnings were in line with estimates but margins smaller. shar were volatilen the after hours session but finished the regular day up more than 1% to $23.94. also out after the ll tonight, pivot alsoftware topped earning expectations and gav a current qrter outlo

i don't want to get in trouble th the s.e.c. but the bigger issue though is if you were to look at 2% to 3% type inflation rates where we are at rht now,ypically the market rates if we go back to 1960 and look at that market ate 18 times earnings get to 2840 it's a simple way to define we are o where we are in the markets already. earnings growth is going to slow by ther fourth quarnto the first quarter of next year not all the wonderful news from the tax cut against in 2019. and generally speaking, the economy is fine. i don't have an issue with that. but more about where markets a pricing, fair amount of good news is priced in already. >>right. >> a it seems like it's ignoring concerns. >> you mentioned the four triggers that we need to watch midterm elections, inflation in the fed, trade and earnings estimates thaare too high. so where should investors put their money to perhaps hide or hedge against anyf those four occurrences. >> so, hiding is tough in a market that goes down. diversifiation is the best way. but if you were

it was announced today the s.e.c. musk on thursday, accusing him of misleading investors with a tweet last month, saying he had secured funding to take tesla's stock off the open market and go private. regulators say musk had not secured that funding. tesla and musk will each pay $20 million in penalties to investors. musk will remain c.e.o. of the company. coming up next, years after a police sergeant is convicted of shaking down and jailing innocent people, a wave of exonerations. >> ninan: five years after a former chicago police sergeant was convicted of running an extortion ring, dozens of people he arrested for crimes they did not commit still remain in prison. 18 victims this week had their charges t at a mass exoneration hearing. here's dean reynolds. >> reporter: an empty lot now marks the spot of one of the worst chicago police scandals in history, once the ida b. wells housing project, it was where a group of corrupt chicago cops preyed almost risk-free on residents for most of a decade. , is ronald watts w

custody is the problem the s.e.c. t clear they are not pruchgt bitcoin etf's until the issue of custody is rfrld. but how to story the private keys, self-store something not going to work. the s.e.c. requires private funds with significant assets to use a third party. so cryptocompany bitco is among the companies looking to fill the gap. they received a chart frere the south dakota division of banking. they have to file financials, adhere to know your customer and anti-money laurnderring rules. and file antidisclosure. if they can crack it this will be a leap for bitcoin pap back to you. >>> thank you bob. for more we brought in our bitcoin brian kelly to get his take on this how important are the due developments. >> i think the morgan stanley is important for sentiment. you saw goldman sachs. people have been waiting for the herd, the institutional herd to come and so the fact that morgan stanley and citi bank, that helps sentiment. the custody is actually probably a bigger deal. because that's the rode block. if you

>> we understand from people close to the company both the s.e.c. tesla's lawyers, and most lawyers concede this is likely to hit a settlement because the s.e.c. apparently does not want to litigate this case. now, what that settlement is exactly, over what charges, essentially putting out a false statement, multiple false statements, on its face is a 10-b5 fraud charge, it's problematic, but you can settle it down. there's a million ways to settle this down. i think both sides agree that's probably where this thing is going. at least that's my sources. one other thing i want to say, this white house controversy over -- everybody is calling me up on wall street asking who is the leaker of the memo, who wrote the op-ed in the "times." i said liz claman. liz: i have only been invited in the white house once for a christmas party and i didn't steal the napkins. >> it's getting crazy over there. reminds me of the scene in "godfather" like you think -- you just think trump is going to walk up to somebody, who knows who, and give him the kiss of death. re

balwani, who left theranos two years ago, calls the s.e.c.arges "unwarranted" and is fighting them. at its height, how much was theranos worth? >> carreyrou: $10 billion. there was a period of several months where it was more valuable than uber, more valuable than airbnb, more valuable than spotify. >> o'donnell: and how much is it worth now? >> carreyrou: zero. >> o'donnell: theranos told investors this month, the company had run out of money and is closing its doors. ( ticking ) >> why the elizabeth holmes story proved irresistible to so many reporters. go to 60minutesovertime.com. will it feel like the wheend of a journey?p working, or the beginning of something even better? when you prepare for retirement with pacific life, you can create a lifelong income... so you have the freedom to keep doing whatever is most meaningful to you. a reliable income that lets you retire, without retiring from life. that's the power of pacific. ask your financial professional about pacific life today. ♪ ♪ >> alfonsi: until a few years ago, n.f.l. players w

the s.e.c. filed a complaint today that says the statements were false and misleading. if found guilty, musk faces punishment, including being barred from serving as a director of a public company. experts say it's a telling time for musk. >> what musk has done in the last two or three months has been beyond the pale for the ceo of a public company, and now the question is he going to calm down. >> investigators say they do think part of why musk chose the $420 share price was to make a marijuana joke. musk released the statement saying integrity is the most important part of my life and facts will show i never compromised us in any way. >>> crews are working to shore up two steel beams that caused the salesforce center to shut down. abc 7 news was on fremont street when crews removed ceiling panel there's. no other cracks have been found. the next step will be to ease the pressure on the damaged beams that will allow fremont street and the transit center to reopen possibly some time next week. >>> time to turn our attention to the weather. a nice cool day today. >> loo

s that do that today and that would never have been covered by the s.e.c.'s rules. that's on the one hand. that's quite easy to understand if you think about the first amendment. on the other hand, when we talk about facebook and twitter and all these other services, not services makes any kind of promise to do something similar. thatthey in fact say is they reserve the right to moderate content on their services. the key part. there is no circumstance under which anyone really would want services if they didn't moderate content, because they would become unusable. as any person whose ever bothered to read any comment anywhere on the internet understands, if you leave people to just say whatever they want, level of level, the hate, attack, mis misogyny, anti-semitism -- i could go on -- is unbearable. only reason that the internet actually works in terms of the services that we enjoy, is apps, the social media, because these platforms moderate content. they filter out the really, truly awful stuff. they vary in terms of where they line.he but that editorial discretio