for calculating and reporting rates and, also, that bba require a reporting bank' internal and externalors confirm adherence to the best practices and attest to the accuracy of bank's libor rates. >> bank stocks, prophets, could take another big hit if there are huge penalties but the macro impact are not going to be that big. there is an irony, and that is, in fact, to the extent that the rate fixing kept interest rates low, say, in 2008 and 2009 that could have helped the economy. >> bank of england, which geithner contacted back in 2008, said today that concerns of difficulties were widely expressed i but added "no evidence of deliberate wrong doing has been cited." that would appear to be contradicted by the new york fed documents we got today. >>trace: a police officer burned so badly on the job his own family did not expect him to five. but not only did he pull through a decade later, on a mission to him others. and his story is next. >> a county worker walked into a woman's home without permission. lied about it and got fired and now high wants his job back. what are the chances?

the bank of england had various meetings with the bba only bore improvement. didn't appear to have any impact. suit certa but certainly a lot of pressure being applied. i look at all of this and you look at the key players. where does it leave regulator structure particularly in terms of generating investors confidence in the system, in the banks themselves and actually in the uk? >> i think, you know, if you go back, regulation in '87, in those days, it was a light touch but everyone knew the rules. everyone kind of played by the rules and things western that complicated. it's only with this great explosion in the financial sector and the fact that the labor party took the regulation away from the bank of england, created the fsa, et cetera so, you had two regulators trying to do the same job and things falling in the cracks in between. now because everything has gone wrong the regulators have rubbed their hands boys and girls now is the time to go out and employ thousands and thousands of people and we're going to check everything. so regulation has gone com

that bba require internal and external auditors confirm adherence to the best practices and attest tohe accuracy of banks libor rates. that bba would provide more specific guidance as to the size of the transaction referenced in the reported quote rates. and lastly regulators randomly select a subset of 16 banks which the mean would be calculated. senate democrats yesterday issued fresh calls for wide-ranging probes for u.s. and foreign bank regulators n short, jenna, we will be hearing about the libor scandal for months and months to come. jenna: lots of questions about the effects potentially of europe's economy, on the big banks on heads of those banks and what this potentially means going forward for our banks as well. big story, james, thank you very much. >> reporter: thank you. jon: caught on tape, take a look at this, a driver running a red light. we have video of this crash from every angle and an update how those involved are doing right now. >>> also, another massacre of civilians in syria. now a shocking new report on what, weapons i should say the government could use aga

if that company goes public we will be pointing her name aound with the same abandonment o ma shoer bba' dta is teineay atarnt h atiscmiled me eoo tres itnta clinon said he will let packard went into the garage and died in the deression. that has by the way been st t millio bereo riin e t a eney rsntr. 'sgreat temple of american ingenuity. estimate that is where we go to dream away from the sphere f the kids that are going to dog th i. sosntn e dothta e o inflation now years of gerald ford ure we are not amateurs are popping . tearinbuhee a ucf- tle meunf ro e prn indicate anything left of them apple computer's. but there are othercns teoe t- iu aeb nursoma ehd 00 obs created in april according to the government. how many of those jobs were created by big firms funded by wall strt inves n fnbywlter bas terjb ea tks00am from large firms. 58 thousands can come spared up small-buness is. it used to be acommbl th stsll buss a hein amanra thih jobs got creative. both countries are to the point now we have to flatter them with this ridiculous termob crears threas thndi 'sagd tar re corani o b

i think that will probably mean that the bba should give up doing libor and it should be handled in some other way with quasi-official body. i think that the key thing is to re-establish some market confidence in rates and leave the enforcement actions which will be messy and extensive to proceed. >> why was the bba allowed back around the time you were at the fsa in the mid to late '90s to change the methodology to allow banks to self-submit their own borrowing costs? >> the arrangements were not part of the regulatory universe at all during my time. we had no right or purchase on libor. this was a purely market-driven thing. there was nothing in the financial services market act to say we should regulate it. i can't answer that question, because it didn't cross any desk at the time. i think they made an honest attempt to say, look, we're trying to establish a benchmark when there is no business being done at the particular rates and they assumed the best way to do that was self-submission. >> will they scrap self-submission for libor and all the rates used across the zo globe? >> we ne

. >> what was t response from the bba and fsa and others when you raised concerns of some of the rates your competitors have? >> various levels of acknowledgement but no action. >> the thing i find odd is that between january of 2005 and july of 2008, [unintelligible] reputation risk-management. barclays -- you did not appear to know what was happening internally until very late. it strikes me as odd that barkley's people were able to notice other people doing this but no one internally was able to identify that it was going inside -- going on inside the bank. do you understand why we find that difficult to believe? >> it is why i have been very clear today that -- to not conflict the three issues. the issue with the traders on the -- >> i'm familiar with the various reasons. i am asking why people at barclays notice other people doing this but were unable for what ever reason to recognize it going on internally. >> it is a completely different issue. barclays was talking to the authorities about the relative ranking elaborates -- of libor rates. >> but it is not a different issue at a

my view, yes. >> this is a question that the bba asks to banks each day.ds? were you asked to do soy -- were you to do so by asking and accepting interbank offers. in a reasonable market size just prior to 11 a.m.? this has only been the case for 15 years? >> it does seem when you look at it -- i'm an equity guy. not dealing with bank and interbank dealings. but it was an education for me i confess. it doesn't strike me as being 21st century. >> no. ryan, quick comment from you. nonprompt payroll data this friday, what are your expectations? about ten seconds to go. >> i would expect them to surprise a little bit to the upside. but not to be anything outstanding. our economy seems to be a little bit into a moving sideways. >> ryan, thank you very much. pleasure having you on the show today. ryan, and stephen thank you to also. pleasure having you in the stowed yoe. >> thank you for your help. >> here's "squawk box." we'll see you right back here. stay tuned. good morning. good morning. the libor price fixing scandal claims another player. barclays ceo bob

t t teimon he gave the masshuses balt comss in 2002 romy connued t atte boa meengs r buness acqred bba, including staples. this comes after reports from david corn in mother jones and yesterday th boston globe showed that romney was sllhe ceo bai tough 02 acrdinto s.e. filis. why ishis imrtan ll, waseginng i 199 thatain vestfful mpanies that were pioneers of outsourcing according to the washington post. there's some evidence that romney's standing has taken a tcent. ke aookthe lesteal clr policsvera opoll obaas a.5 pnt ldver romn now todathe romy cign haily ranged interviews with all the major networks. rick, your campaign, your guy, newt gingrich brought this up in primy se and hwas iticed, ngri s. mae romyouldave en beer serdf ts waully tigad in therimaes a no the genalelecon. i tnk that's probably right. it was not fully litigated. it wasn't fully understood in ct. givehe rney mpai an enmousmounof edit theyonhearment by aackiitt mneyas tackg fr enterise not ue butt waomint rrate an whe day. but there's still the same questions that are out there and obviously, these questions have t

the british banker association or bba require reporting bank internal and exporting auditors confirmnce to best practices and attest to the bank libor rate. >> no deliberate wrongdoing is cited. that's at odds with the new york fed disclosure today about barclay employee confessing to the libor manipulation. >> thank you. >> bret: the fate of the texas voter i.d. law is in three judge panel. closing argument were today in state's battle against the justice department blocked the law. justices say it discriminates against minorities. judges and others want you to pay for million dollar working vacation in hawaii. that is next in the grapevine. london is calling in war weary troops for the olympics. ♪ how are things on the west coast? ♪ ♪ i hear you... ♪ rocky mountain high ♪ rocky, rocky mountain high ♪ ♪ all my exes live in texas ♪ ♪ born on the bayou [ female announcer ] the perfect song for everywhere can be downloaded almost anywhere. ♪ i'm back, back in the new york groove ♪ [ male announcer ] the nation's largest 4g network. covering 2,000 more 4g cities and towns than verin. re

re aware of that argument your senators were having with the bba and fsandhek? inisno geen it is a chart of how many times people apart as discussed wi e ongt erthe b, thfed, we were posting rates, there was a worry that others cannot be posting rates athe level where transactions could occur. its rtant hi iclython o inry a number of years -- ffceitsi tono ba' rates. rates were tight. there waso much liquidity in the markets. if someone weroff, it did not show as much. it urmpese ngs argument? >> no. >> these communications were noterds los thh arel rtcot he ors thatvenre >> let me get to the exact spot so that i know where it is. where is that? grex parraph 42. i ink you rall in one of those discussionsd ow thec oe et dsss and the fsa. the report was to carry on. >> you areot aware oit o,as. a >> thank you. >> what does that say about the manament that you were not elir be these dcussns ' dngh. th was the misconduct. as soon as it was identified and investign -- >> we are talking about the discussions at were madep thme ern gac se ondngoullf ththsete y when thi

bba down a percent, bankia down 3% today.hat the ecb suggested imposing losses on senior bondholders of spain's hardest hit savings banks. this was in the "journal." stefan's been looking at this report and joins us for more from madrid. no comment, i guess, from the ecb on this. what are the implications? i suppose it depends whether the finance ministers agree with it or not. >> yeah. officially, the ecb doesn't have its work to save because the bailout package for the spanish banking sector has been negotiated with the finance ministers from the european union, but still, it looks like the ecb wants to reopen the debate. deutsche, should senior shareholders, bondholders, sorry, should take a loss in case of a very negative scenario, that's the idea. it's been rejected by the finance minister because financial markets would react extremely negatively to this potential announcement. and a spokesperson for the ecb declined to comment on this report from the "journal," arguing that the central bank was not part of this bailout

from the bank of england and the focus to whether banks colluded to lower interest rates because the bba'soom with individual bank submissions but if there's evidence that banks were acting together in order to suppress or move interest rates that could leave them much more open to criminal charges, the likes of which we have seen perhaps indications of interest coming from authorities in the u.s. tyler? >> all right. thank you very much. unfolding and complicated story there. >>> earnings tomorrow of coca-cola, mattel, intel and yahoo!. how should you play them ahead of the numbers? dani hughes, what should i do? >> cola cola, year over year growth for a couple of years is double digit. we don't expect to see that type of growth this year but beat the street. intel, as well. they beat a couple of cents every quarter. and again, they're guys to see tiny growth happening in the united states an i bet you'll see that today, too. >> all about the guidance. thanks very much. down to you, sue. >>> headline time, ty. nokia lowering the price of the smartphone lum that 900. all the way down from

were you aware of that argument your senators were having with the bba and fsa and the bank?ing this up now. page seven. it is a chart of how many times people apart as discussed with the fsa, the bba, the fed, and the bank of england that we were worried. we were posting rates, there was a worry that others cannot be posting rates at the level where transactions could occur. it is important part of this over all discussion, particularly in the context of the industry. the regulators consistently over a number of years -- it took the credit crisis to explode -- explore the difference of one bank's rates to another bank's rates. rates were tight. there was so much liquidity in the markets. if someone were off, it did not show as much. it exacerbated things. >> my question is whether the senior people were aware that your employees were having this argument? >> no. >> these communications were not understood as disclosures through which barclays self- reported misconduct to the authorities. she did not have been aware of that? >> let me get to the exact spot so that i know wher

going to ask him what was he aware of, what was the follow-up after this memo that was shot over to the bbaof alternatives, a couple of which aparentally were adopted, most of which were not. what was the next step? what were they doing? did they not have conversations with the financial institutions that use this index all the time to say hey, guys, there's a problem with the integrity of this rate setting. you shouldn't maybe, you know -- >> base everything off of it. >> base everything off of it on an ongoing basis. did that conversation happen, with whom and what was done about that? what was done to inform american consumer answer borrowers and businesses and others that they may not be getting or making the payments that they're supposed to. i just, i find it stunning that the secretary of the treasury was aware of this in early 2008, and it takes 2012 before anything is really happening. >> senator toomey is going to be with us for the rest of the hour. we have a lot more to get to. >>> come up, without congressional help the post office may be about to default on a $5 billion paymen

. >> bu bba has his o's on as the o's cruise into the all star break. >> you're a die hard oriels fant but there's more excitement when they start winning. >> now jade baseball fans may be attempted to dismiss the oriels hot start. the stats say something different. >> the last decade the oriels have only had a winning record twice before at this point. >> i'm thinking about playoff seatsful -- seats. >> that will be nice. >>> come coming -- coming up, trapped on the bay bridge during the big wind. drivers say it's time to make big changes. >> toddlers forced the fight on camera. who police are questioning. >> break out the flip-flops, sun block, we're in for another scorcher today. is there any relief on the way. more coming up when eyewitness news sat,,,,, >>> welcome back to eyewitness news saturday morning. i'm don scott sitting with gigi usually sits. she'll be working tonight. >> i'm time tim -- tim williams. temperatures already in the 70s and 80s. you're not going to see too many people in that particular fountain downtown. >> i'm not sure it's legal. >> the water is definitel

. >> deutsche banc sees earnings decline in the period as the profit drops 63% and spain's bba sees theottom line hurt by further provisions for real estate losses. >> bp takes a whoops $5 billion h hit. >> economic conditions worsen in it india. rates are unchanged on the rising inflation outlook and monsoons. we're following, of course, the action in barclays shares this morning. they're now down about 2% in this session. they were a bit weaker, but, of course, we wait to see what kind of reaction investors have to the news reuters is reporting. italian police is taken documents from barclays offices in italy as part of the probe into euro-libor manipulation according to a judicial source that reuters is citing. barclays shares, while being down closer to 3% are now down a little better than 2%. >> the rest of the european markets after a few days of solid gains just flatter today. the ftse 100 is just down slightly 0.2 of 1% under that. it's up around a quarter. it's flat and the ibex is up around 1% at the moment. you're seeing yields slightly higher than lows yesterday particularly

queues that you throw are relatively minor issue in the longer-term growth story for its trophy assets, bbaclearly, three-hour queues and seeing that on television is not really that helpful, but a lot of that is being addressed, being addressed by both the immigration authorities and baa itself. i think we have to put things in a broader context. there are multiple airport operator. they have obviously under pressure to sell and they have sell edinboro for a better price than anybody expected they would get. i think the overall valuation of their portfolio there, of course, has gone up. i think for them, one thing that, some people may say it's risky buying the spanish construction company, given what's happening in spain, but only 7% is managed construction. this is about a play on trophy assets and infrastructure in canada, in the u.s. and the uk with baa. >> i want to go to sell here, which i think is unilever. unilever to me is a very steady, cash-generative consumer products company that is achieving a lot more growth now in emerging markets, in those developing middle class areas of

this sets the scene for explosive meeting tomorrow and shifts on us on regulators, bba.ernor steps down next year. fascinating. >> absolutely fascinating. does it make sense why they would clean house internally only to point to regulators after the fact. >> have you to wonder why not release it sooner and see what happens. barclays has been dealing with other issues including executive pay, misselling of swaps. perhaps they felt pressure too much. perhaps bob diamond had reasons for hands up and walking away. the chronology is strange. >> kelly evans, the drama continues as we spend a day away from the markets. more fallout from the barclays scandal and the rest of the sector an anton schutz, portfolio manager of two funds. anton, always good to talk to you. good morning. >> good morning. how are you? >> good. interesting turn with boe. what's going on. >> certainly lots of politics involved. certainly having an american run a large bank, who has been flamboyant, large bonuses. you never blame regulators. regulators are always nice. you have to play nice with them. look

and governor crossner on the board at that time was in contact with the british authorities and the bbad june. i think it's important to note that following the federal reserve bank of new york's disclosures to the appropriate authorities, that there was rapid follow up. the cftc was making inquiries as early as april 2008. it sent requests for information to u.s. banks in the fall of 2008. the s.e.c. initiated inquiry in 2009 and the doj in 2010. currently, the european commission and range of other regulators, including british regulators, are also investigating and we know about the june 27th settlement with barcla barclays. so there was in informing the authorities that information led to investigations. the federal reserve bank of new york also contributed substantially to thinking about how to better structure the libor panel and the libor information collection to avoid some of the weaknesses in the system that became evident during the crisis. >> chairman bernanke, what are the factors that led you to support the extension of the so-called operation twist program and what change

on page 7, there's a chart of how many times people at barclays discussed with the fsa, the bba, the fed, and the bank of england that we were worried that although we were posting rates, there was a worry that others may not be posting rates at the level where transactions could occur. i think it is an important part of this overall discussion. these are issues that were brought up with the regulators consistently over a number of years. one of the reasons they had not been apparent in earlier years was it took the credit card division to explode the difference between one bank's rates and other banks raised before a very long time. rates were so tight and there was so much liquidity in the market that of someone was a little bit off, it did not show as much. it exacerbated the impact. >> my question was whether you and the senior people were aware that your employees were having this argument. you were not aware of that? >> no. >> it goes on to say that these communications were not intended as disclosures through which barclays self-reported to the authorities. should you not have

. >> what was the response from the bba and fsa and others when you raised concerns of some of the rates your competitors have? >> various levels of acknowledgement but no action. >> the thing i find odd is that between january of 2005 and july of 2008, [unintelligible] reputation risk-management. barclays -- you did not appear to know what was happening internally until very late. it strikes me as odd that barkley's people were able to notice other people doing this but no one internally was able to identify that it was going inside -- going on inside the bank. do you understand why we find that difficult to believe? >> it is why i have been very clear today that -- to not conflict the three issues. the issue with the traders on the -- >> i'm familiar with the various reasons. i am asking why people at barclays notice other people doing this but were unable for what ever reason to recognize it going on internally. >> it is a completely different issue. barclays was talking to the authorities about the relative ranking elaborates -- of libor rates. >> but it is not a different issue at a

focus, in fact, is shifting back to the bba which is tasked with collecting the rate. focus is shifting back to england. there were reports this morning, before we heard about the resignation of diamond before he testifies before the treasury, he'll give detail about conversations that he had. in any case, let's look at how this has affected market as we turn to hand off to you guys in the states, we are seeing green as we continue the relief rally of the european debt crisis summit. the ftse 100, again bolstered by what's happening with banks. up .3 of a percent. as we continue to watch the next headlines to come in as libor fixing scandal, keep in mind, what if anything replaces libor, what were regulators doing about it and what the future of bar kplis going to be. >> jamie dimon is fine, right, kelly? he's no relation? >> joe, i don't think your play on the word diamond is working very well. >> a lot of things have not been working with you, kelly. you're very serious over there. you're quite a reporter. >> i am not. you keep saying this. >> it is a british quality

on page 7, there's a chart of how many times people at barclays discussed with the fsa, the bba, the fed, and the bank of england that we were worried that although we were posting rates, there was a worry that others may not be posting rates at the level where transactions could occur. i think it is an important part of this overall discussion. these are issues that were brought up with the regulators consistently over a number of years. one of the reasons they had not been apparent in earlier years was it took the credit card division to explode the difference between one bank's rates and other banks raised before a very long time. rates were so tight and there was so much liquidity in the market that of someone was a little bit off, it did not show as much. it exacerbated the impact. >> my question was whether you and the senior people were aware that your employees were having this argument. you were not aware of that? >> no. >> it goes on to say that these communications were not intended as disclosures through which barclays self-reported to the authorities. should you not have