and bombshell allegations about ge the man who blew the whistle on bernie madoff calling the company a bigger fraud than enron. we'll have the latest. >>> we begin fiwith the market swings dom chu with the information behind them. >> you saw a whole bunch of volatility but as things stand right now, perhaps a bit of a respite for the bulls out there after a terrible day yesterday the dow industrials after swinging between gains and losses up about 0.25%. the s&p 500, similar percentage gain and just about flat right now. if you take a look at the overall picture, some of the things we want to take a look at are the headlines driving things about 5:00 a.m. eastern when we first got the headlines china wanted to threaten countermeasures to the u.s. tariffs that go into effect september 1, we saw a steep drop-off in the overall futures. in fact, if you take a look at the next slide, at that low here, between here and here, that was a 400-point drop in dow futures. now we got a bit of a move higher after walmart came out with good earnings and a chinese official was heard saying they wan

on accounting expert who blew 'se whistle on bernie madoff ponzi scheme is taking aim at ge, saying thetuation is far worse than disclosed. ge says it stands behind its financials. walmart setting a high bar for other u.s. retailers. the chain boasted strong second ,uarter sales and your outlook pushing back against concern of the trump administration's tariffs. alibaba sales beat the highest analyst estimates in the latest quarter. china's largest e-commerce company boosted by personalized shopping recommendations and a june sales bonanza. meanwhile, cloud computing revenue jumped 66%. the company says that was mostly due to an increase in average customer sales. that's your latest bloomberg business flash. this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." let's check in on the bloomberg first were details. here with the details, renita young. renita: beijing warns it plans tariffsiate for new scheduled to take effect next month. china called the tariffs a violation of the accords reached by presidents t

. —— bernie madoff. our correspondent has the details from new york.accountant and he says general electric is hiding $40 billion of losses in its insurance business. now, general electric has counted those claims, calling them meritless, misguided and self—serving speculation. nevertheless, ge shares fell by 15% at one point on thursday, and it is at one point on thursday, and it is a clear sign that investors are worried. they are worried quite possibly because of the source of the information. harry markopolos has a track record of highlighting financial misdeeds. most recently he was the whistleblower who uncovered bernie madoff‘s $65 billion ‘ponzi' scheme, the largest case of financial fraud scheme, the largest case of financialfraud in scheme, the largest case of financial fraud in american scheme, the largest case of financialfraud in american history. his report also comes at a time where ge's profitability has taken a hit. last year it was dropped from the dow 100 and has had to lay off thousands of employees. in other business news making he

trained by someone who went to jail for the largest ponzi scheme in american history prior to bernie madoff. what the piece also discovered is he did abuse women, and i talked to two sisters who both allege they'd been abused by jeffrey epstein. one of them when she was underage. they were on record, their mother was on record. other people in new york with considerable reputation and standing were on record, but jeffrey epstein went to see the editor of the magazine, and after that i was told that jeffrey epstein was very sen sensitive about the women, and they ended up being cut out of my article. they were obviously extremely upset, as was i, and they said -- i said do you want to pursue this in a different avenue? and they said no because this is exactly what we were afraid of, that we wouldn't be believed because he is the more powerful known figure and who are we? this is exactly what i, you know, we haven't, you know, it's taken us years to even -- to come forward at that point. they are two of the women who recently one of them annie farmer was the -- one of the women who stood up a

we will get back to you and the panel in a moment. >>> bernie madoff, well, one of the whistleblowers case has a new whistle that he's blowing supposedly. a new warning about a major u.s. company that we will talk about when we come back. connell: we talk about how, you know, markets may be less worried about recession today than they were yesterday. goes back and forth day by day. oil, though, continues to fall. it's down about a dollar. that's a 1.7% drop in the price of oil. $54.31. >>> before the break we told tu guy that had warned us, one of them, about bernie madoff has a new warning, and the warning is about general electric. whatever you think, kristina partsinevelos joins us now, people are clearly listening. this stock is getting hammered today. >> clearly. you are seeing it down almost 12%. that's because the accounting expert came out saying that ge is facing the largest accounting scandal ever, that he's ever seen. he's been researching this with his team for the past seven months. he published a document, research paper, on gefraud.com. it's about 175 pages, making alle

that's what the man who blew the whistle on bernie madoff is saying about general electric, and ge's hit back hard. those stories and more tonight t"on "nightly business repor thursday, august 15th. >>> good evening, everyone. welcome. ll has the evening off. stocks couldn't figure out if they wanted to go up ordown. the dow and the s&p 500 finished the day higher, af rel for investors who were searching for answers after yesterday's big sell-off. trade pushed stocks lower and then higher asd money rus into the bond market yields fell and stocks followed. at one point the yield on the ten-year treasury dipped below 1.5%. that's the first time that has happened since 2016. the yield on the 30-year hit a recobu low, again, that didn't last. yields rose in an unusually harp way and stocks swung wit them. here is where the major averages closed on the trading day.o theu joins industrial daerage rose about 100 points, the n fell 7 and the s&p 500 added 7. bob pisani takes a look at the strange day. >> reporter: stock went for another wild ride with the dow swinging all day. we saw risk ac

the stock plunged more than 11% after accountant harry marcropolis who helped expose the bernie madoff scandal said ge was hiding issues in their business. >>> virgin airlines is showing off the spaceport america facility. the virgin galactic facility will go into this area before they board a supersonic flight. hundreds of people have signed up for a ride on the space flight. they have additional test flights and they will start flying paying customers in the first half of 2020. >>> i want you to meet porky. >> hi. >> a new toy and $1 million. "toy story 4" has crossed the $1 billion mark at the global box office marking its fifth billion dollar release for disney this year. the studio is now the first to have five $1 billion movies in a single year. disney has dominated the box office. "avengers end game," "the lion king," "captain marvell" crossed the billion dollar mark. they broke their own record from 2016 and the big year is far from over. the studio had a strong slate of films for the rest of the year including sequels from "frozen" and the final chapter of the skywalker saga,

. >> ge plunged the most and 11 euros, and the bernie madoff whistleblower is taking aim at the companyuation is far worse than described and now the chair has responded in a statement -- "ge will always take any allegation of financial misconduct seriously, but this is market manipulation." brooke: they are betting on ge shares to slide so he clearly has the motivation but he has a financial interest at stake. the issues he raised are not particularly new if you've been paying close attention, so there are three key points in the first is that they are under reserving for long-term care and , and they are not properly accounting and are generally ok with the way they report their finances and are not giving enough detail, that there is some gap between how they get from one number to the next. matt: the numbers are mind-boggling, $74,000 per minute, $4.5 million an hour, $107 million a day. that is how quickly the fortune of the walton family, the family that owns walmart, has been growing in the past year. what is fueling the rich getting richer this year? >> well the most important t

bureau of prison system, partly because of the high-profile inmates it's housed like terrorists to bernie madoffp aide paul man a fort also spent a few days there in june. while the doj considered it well run, some of the most high-profile inmates do not, including he joaquin "el chapo" guzman, and complained about the lack of light and using toilet paper to drown out noise a civil rights attorney is currently suing the bureau after one client was allegedly beaten to death. >> i have heard numb lutz complaints about roaches, rats, feces in the showers. i would refer to it as unacceptable conditions. >> reporter: the mcc opened in 197 a planned to house 474 inmates. it currently holds 763. that means cells originally designed to hold one inmate often have two, a problem that puts serious strain on those who work there. >> you cannot have someone work two, three, four days in a row, 16 hours each day and think you're going to have somebody who will be at their -- operating at full capacity. >> reporter: a lot of problems, but let's turn to the accusers. it's a big day for them. one of them, jennif

i do think that this report is not on the status of bernie madoff.f you look at the reserves and what they can pay, they can deal with the $18 billion this analyst is even talking about. i don't think this is enron. this is definitely not enron. stuart: okay. it's still at $pai8.60 a share. a few years ago that would be unthinkable. >>> how about capital one? the "wall street journal" reports that some employees raised some red flags before the big hack. tell me more. jackie: the "journal" is saying they were worried about the strength of that cybersecurity unit, that there was a lot of turnover with the employees and maybe the company had not invested enough in software to defend against these hacks. page thompson, that former amazon employee, got in there. she got the data and there was a breach. we believe that it was not used for nefarious purposes at this point, but you know, it raises awareness on companies strengthening those units, making sure they're secure for customers. stuart: capital one up a little bit today but not recovering fully fro

raised concerns over bernie madoff.is increasing reserves and immediately saying the company is hiding a loss of more then $9 billion on its hughes asn baker's well. nejra: the claims have been called market manipulation plain and simple. he added that he wrote a paper but never talked to company officials goes to show that he is not interested in accurate financial analysis. stanley said he purchased ge shares on thursday. the idea that they are engaging in a intentional fraud is ridiculous. this is one of the most read stories on the bloomberg and it is interesting particularly given ge's history and the challenges up until now the company has been facing. matt: the history of ge is murky. notable murky financials. taking part in bringing out bernie made off. but so many big names are purchasing shares here are not just dropped in miller -- drew cadruckenmiller. let us check in on the markets from around the world. we are joined by our reporter in mumbai and in london by annmarie hordern. back arounds 11,000. is there

since the 1970s, it has locked up the most notorious gangsters, terrorists, ponzi scheme con man bernie madoff, and even el chapo. for decades, the metropolitan center has been the single most trusted prison for america's high risk criminals before and after they are brought to justice in the court of law. but now, ultra wealthy convicted pedophile jeffrey epstein was found dead in his cell. new york post reporting that epstein was hung from a bedsheet he allegedly tried to kill bed sheet for my bunk. himself just days before, what now many are saying is a bizarre move, he was recently taken off suicide watch, was in a cell without anyone else, and epstein had been behind bars since july 6th when he was charged with sex trafficking of teenage girls. he was accused of running a year's worth long scheme involving the exploitation of dozens of young girls, as young as 12 and 13. epstein was denied bail because of the severity of his crimes. his near infinite wealth posed a serious flight risk. the media now obsessed with the story because of epstein's high-profile friends. his rolodex was full of

today, a whistleblower who gained fame for warning about bernie madoff's fraud is warning about a fraud at this company he calls bigger than enron. morgan bren ennan is joining us with r more. >> yeah, this is definitely a developing situation quote a big r fraud than enron and worldcom combined. that's what he had to say about this earl yerl today and in this report for general electric's accounting, 169 page report that was out. as you mentioned, shares are plunge iing on the allegations which ge's accounting fraud aamounts to $40 billion. he joined us on cnbc today take a listen. >> ge is losing $5.27 for each dollar of premium income they're taking in. that's unsustainable and growing. for 2018, they grew at 60% going to make this company probably file for prupsy >> so markopolos arguing ge will need more in long-term care reserves, including 18 billion requiring cash immediately also tied to baker hughes. he discussed the gcas business on the network with us today as well ge responding to this report detailed this morning, but larry making a very pointed statement a few moments ago

he is the same whistleblower who uncovered the massive $65 billion fraud pulled off by bernie madoff,now serving a 150-year sentence. the head of ge is coming out swinging, using both his words and his wallet. to jackie deangelis on i guess which side the analysts are leaning toward. jackie: it's mixed right now. you've got some bulls on the street and you've got bears on the street when it comes to ge, but those shares as you said are rebounding today, after that sharp 11% drop yesterday, which was jarring for the market. that was actually the biggest drop in 11 years for ge stock. on claims that there's massive accounting fraud and that ge might be filing for chapter 11 bankruptcy soon. so in response to those allegations, ceo larry culp, he bought nearly $2 million of shares yesterday and he sent this in a statement. quote, he wrote a 170-page paper but never talked to company officials goes to show that he's not interested in accurate financial analysis but solely in generating downward volatility in ge's stock so that he and his undisclosed hedge fund partner can personally profi

claiming that ge's headed for bankruptcy this is the same man who also correctly spotted bernie madoff was a fraud before his hedge fund blew up he has gravitas. he says ge lied about the exposure to the hard to value long-term care contracts c.e.o. larry just bought a ton of stocks. healy disagreed, but the stock got hammered anyway. anyone with an ounce of credibility claims an american committed fraud, that's going to frighten people. the stock was down the mostly in 11 years, single day i have frequently criticized ge for the way they accounted for long-term care policies. i'm confident they are taking aggressive steps to be more transparent and reserve enough money to cover the cost. however, as i have told ge management many times and told you, with long-term care policies, you can never reserve too much which is why the criticism resonated, it always will that's why the stock went down 11%. he is accusing the guy of market manipulation can you blame him? can you blame him? unfortunately this issue isn't going to go away any time soon the false dichotomy isn't either which is why

chapo and keep him there and other high-profile inmates and defendants have been housed there, bernie madofful manafort was there recently. there had been a whole host of people who are high profile and when you are high profile such as the case with jeffrey epstein or was with jeffrey epstein, there's supposed to be special attention paid on these inmates, not only to prevent them from being harmed by someone, but also to make sure they're safe, right? they need to be safe. that's why in some cases they're segregated and they're not kept in the general population and that's what happened with jeffrey epstein. so the inspector general will come in and find out is there something going on at this jail? did they do something wrong and they're going to interview the staff, people they may interview other inmates and he did have a cellmate at some point and it's not clear if in this incident he had a cellmate that was there with him. it doesn't appear. it appears he was alone right now and there may be video. we've heard from people who are familiar with that area of the jail and they say there

and bombshell allegations about ge the man who blew the whistle on bernie madoff calling the companyd than

he is the same investigator who warned people about bernie madoff's ponzi scheme and claims ge is engagingis hiding major financial losses. the report declared ge the next enron. in a statement ge calls the claims unsubstantiated and meritless and the company says it, quote, operates at the highest level of integrity and stands behind its financial reports. >> they're having a meeting right now. >> yeah. actually said it is bigger than enron and worldcom combined. that is how big he said it was. >> call it meritless and baseless but somebody is meeting about what to do. >> the ge ceo went a and bought 250,000 shares of his company mething going on.ng so there is a little questionable how this investigator was paid on this project. he released the report to a hedge fund before it was public and then made money off the trading that hedge fund did. it doesn't smell right to me. >> they also think he is after the whistle blower money. >> there are a lot of questions still out there. >>> all right. an investigation is under way after a corrections officer drove his truck through a group of prot

on ge having the worst day since 2008 in wake of the fraud accountant who blewhe t whistle on bernie madoff's ponzi scheme. stay tuned >>> welcome back to the "closing bell." a wild day for stocks. bertha coombs has the details. >> it looked like we were going to end in positive territory but at the end of the day cisco continued to be a drag on tech cisco hitting a seven-month low after the disappointing out look and earnings and talking about slowing partly because of china. but we didsee a number of big caps today were strong facebook, in fact, helped the communications sector avoid going below those august lows and challenging the june lows. so we did see a turn around there and we saw most of the sectors just flat on the day so that is pretty good news after that big drop we saw yesterday. over to you. >> bertha, thank you now retail earnings came in mixed overall. walmart and alibaba beat expectations and macy's and tapestry fell short. and while retail sales rose 1% in july the sector faced headwinds after trade disputes between u.s. and china bill simon ceo of walmart u.s. and dana li

know i am an advocate for investor protection i did cases against many ponzi schemes, including bernie madoff billion dollar plus hedge funds. i put a lot of people in prisons over the years i have a family to support i need to get paid. >> in terms of the long-term care business, that has been raising eyebrows a huge skeleton that came out of the closet in march they had their quote/unquote teach in it was seen as something of a turning point for the stock. how did you get to your numbers and why do you think the current numbers are wrong? >> we wasn't to the statutory filings of eight ge parties for long-term care and pulled the regulatory filings for the years 2013 to 2018 and we saw all of the losses falling on to ge's books and we saw how much premium dollars they were taking in and what the loss ratios were they are losing $5.27 for each dollar of premium income they are taking in. those losses are unsustainable and growing at an exponential rate it's growing exponentially and it's going to make this company probably file for bankruptcy. >> two things. the dynamic is not specific to ge,

. >> this is the same facility that housed el chapo, bernie madoff was apparently held in the same facility. a lot of high-profile prisoners who come to new york, this is where they go. are there cameras all over the us glean what happened or what did not happen >> there are cameras, there usually are. but i noted in some of the reports specifically they said inside and outside in this particular case it did not have good video footage usually you do not have cameras for privacy reasons inside the actual cells but you would have them in court orders or hallways or in special circumstances, potentially like suicide watch, where you're trying to monitor people i think there's going to be a tremendous number of questions and a lot of oversight on this issue. hard to believe. >> hard to believe something like this could happen. >> hopefully more information will put to rest som conspiracy theories out there as well thank you very much. >>> we have a lot ahead including a closer look at a mysterious member of epstein's inner circle and questions regarding her this morning >>> now the latest on t

an accounting expert who blew n bernietle on bernie mad madoff's ponzi scam is taking aim at the companys the situation is far worse than described, and now chair and ceo larry culp has responding in a statement. "ge will always take any allegation of financial misconduct seriously. but this is market manipulation, pure and simple." brooke: they are working with a hedge fund that is betting on ge shares to slide, so he clearly has the motivation, but he has a been up front that he has a financial interest at stake. the issues he raised are not particularly new if you've been paying close attention to the company. there are three key points. the first is that they are under reserving for long-term care, and they are not properly accounting for their stake in baker hughes, and that they are just generally ok with the way they report their finances and are not giving enough detail, that there is some gap between how they get from one number to the next. matt: the numbers are mind-boggling. $74,000 a minute, $4.5 million an hour, $107 million a day. that is how quickly the fortune of the wal

he was calling for the exposure of bernie madoff long before he was finally exposed.being reported on one of our competitors, but it claims ge was basically issuing false financial statements that tied the true problems it was in, hiding the debts, if you like. he points out the alleged accounting issues with its oil and gas unit in particular. he says they have spent seven months looking into ge accounting and that they believe there's a $38 billion in fraud and he says it's just the tip of the iceberg. stuart: ouch. no wonder the stock is down. ashley: ten-year low. stuart: $8 per share. ouch. that was your dad and granddad's stock. not now. >>> all right. news on housing. i've got to say it's a disappointment to me. mortgage rates, the 30-year fixed holding, holding unchanged at 3.6%. i was expecting to go way down. sentiment from home builders, though, that is up and applications for new home sales jumped 11% last month. add it all up, how about the recession? we are going to get one? we talk to jerry howard shortly. he's from the home builders association. by the

bernie madoff whistleblower harry markopolos, i guess we will play it straight here, told nbc ge hasem. >> put a lot of people in prison over the years and i'm continuing that trend. i need to get paid i have a family to support anybody who signs those financials as a ceo or cfo is culpable. >> you are coming after the current management team right now? >> on march 7th they had an insurance teach in, they could have come in they could have shown you the insurance deals and what the losses were in dollars and cents, they did not. it would have been easy to do. they did not i did. world con and enron lasted about four months before they were exposed. >> ge responded issuing a statement saying, ge will always take any allegation of financial miskk misconduct seriously, but it is market man nip lags. it contains false statements of fact and these claims could have been corrected if he had checked them with ge before publishing thereport. joining us, cnbc contributor william kohn, a special correspondent for "vanity fair". let's start on the cnbc news line with nick heymann who in a note

made for "american greed" or "american greed" was made for this i don't remember, since bernie may dove has be madoff has been so much on the forefront of american consciousness and also involving this core brand. >> absolutely. if you are a parent who -- all of us as parents want the best for our kids and you see something like this happen, it absolutely strikes a nerve. if you're a kid who's trying to get into college and you get shut out by this kind of conduct, it just strikes a nerve in terms of status, in terms of higher education and all of these things are going on. it's absolutely a subject that was made for "american greed". >> and we're not even -- we're still in the middle of the story. we haven't even gotten to the end yet. scott, we'll be watching this closely tonight. thank you. be sure to watch the season premiere of "american greed," the college admissions scandal that will be tonight at 10:00 p.m. eastern and pacific time, only on cnbc >> looking forward to the voice puns got to be tons of them >>> still to come, first, podcaster adam corolla, but first, rick santelli >> 30-year bon