why would you have a due diligence officer in bermuda?>> that's a good question, considering that fairfield has offices in new york, and madoff is in new york. madoff is not in bermuda. >> smith: fairfield's partners refused to speak to frontline. but their attorneys insist that their due diligence surpassed industry standards. sherry cohen remembers differently. >> i know that there was absolutely no due diligence done when i worked for them. certainly no deep questions. i mean, they didn't need to know the details. it's, like, too much information. don't bore me with the details. and they wouldn't have gotten it, anyway. >> smith: and as for due diligence, no one seemed to question the fact that madoff's accountant was a one-man operation in this strip mall an hour's drive north of new york. did you ask him why he had such a small accounting firm? >> yeah. i mean, that was his... it was his family, you know, business. that it was an accounting firm that his father-in-law had used for years, and he continued to use it. >> smith: and it d

we also find quite a bit of limestone from bermuda that was used in the ships from bermuda as ballast. and when it arrives at the island, it was used architecturally. and oyster shell is another commonly found material at jamestown. of course, they ate these oysters. and subsequently used the oysters to produce lime for mortar and plaster. let's go on into our processing laboratory, our dry processing laboratory. here i am sorting artifacts from the john snook well. and these few ceramic shards are from one of the upper layers of the well. john smith in 1608 ordered the colonists to dig a well. and in 1610 that well was filled in kcolonists left jamestown. had hoped to go back to england, but they were met by a long boat in the chesapeake bay and ordered to turn around. the long boat belonged to lord delaware and announced his arrival. and so all the colonists came back and reoccupied james fort. these ceramics were made in those period from about 1619 until about 1625. they were made by thomas ward. he came to jamestown in 1619. we have historical documentation for that. and hiss kil

he fled to bermuda. >> i always hoped he would do was wrright. these kids are counting on him. >> he pleaded guilty. trying to make deadbeat parents pay. reporting in virginia. >> mcdonald's is doing away with the pink slime used in its hamburgers. it is used to kill bacteria. the material has come under fire. the department of agriculture said the use of this is safe. two other chains have stopped using it as well. the early tax filer will not get the warm. there has been a delay in processing returns. this is to prevent fraud. returns accepted on or after a date will not be affected. a much-needed overhaul for coffee. and it involves jane king has the bloomberg business report. hi, jane. >> good morning. lastly, president obama announced a new unit to investigate misconduct. we have a subpoena from the justice department. they subpoenaed wells fargo. there could be a supplement for the big probe with the big banks. banks have until friday to accept the settlement. we get the latest reports on home prices before the opening bell. futures are loo

. >>> mitt romney tiene dos cuentas en las islas caribeñas de bermudas. >>> de hecho el año fiscal del la lupa, por el cabildeo de sus grupos, por fanny may y fanny mack, dice que los honorarios de 1 millón 700 mil dólares fueron por consultas y no cabildeo. >>> queda claro que mitt romney pintará a newt gingrich como un agente del cabildeo >>> por el momento es todo desde washington, más adelante tenemos más información, ahora pasamos con jorge. >>> es momento de nuestra primera pausa y al regresar la gigantesca fuerza aérea de la frontera. >>> por facebook una antigua amante del favorito de las elecciones presidenciales mexicanas, lo acusa, y con un abanico de dólares se echa viento la hija del presidente de venezuela, hugo chávez, mientras los venezolanos no tienen acceso a la moneda, y más del discurso del estado de la unión al regresar >>> vamos a ver, en méxico le ha surgido un nuevo problema a enrique peña nieto, gran favorito en las encuestas, él dijo en su cuenta de twitter que tiene seis hijos, pero una ex amante le dice que tiene un hijo que no le da el mismo trato que a los

. >> bermuda, interesting. wayne rogers what do you have? >> we are talking about inflation.acts a number of commodities. >> johnathon. >> and what about a greek shipping company. and that is when you spit in the devil's eye to know that you are alive. it is in a troubled part of the world i know. there is the healthy dev dend. it is a volatile week for us. >> i think you have to look over the longer term. and risk assets is the making sense for the portfolio. and wayne? >> i gree. i am looking six or seven months. i think johnathon is right. >> never boring on carbin in of course. great to have you as usual and doing what you do at home. and neil cavuto w

a program in bermuda. >> john. that is not true. >> we talk to them and help them plan a career. they are stuck in generational levels of low income and stuck in levels and they are stuck if you don't help them out. >> there is your entitlement speech. >> all right. you have to start before you get to the college application process. it comes from educating people from the early stages. >> parents as well. coming up everybody. they were partly to blame for the financial collapse and now government backed loans will help property flippers. we may all be flipping over thisem ♪ flipper. faster than lightning. no one you see. one-on-one guidance to help me choose my investments. not just with my savings plan here at work. they help me with all of my financial goals. looking good, irene. thanks to fidelity, i can stay on topof my fi? good one. why, thank you. whether it's saving for retirement, college, or anything else, contact a fidelity investment professional today. this is mary... who has a million things to pick up each nth on top of her prescriptions. so she warilled that her w

or you could do like mitt romney did, hide money in swiss bank accounts bermuda, et cetera. >> is threatens war with iran part of a reason to hurt barack obama? we'll explain the details when we return. icy, cool flavor in a delicious 5-calorie stick of gum. ♪ ♪ polar ice. from extra. this is countdown south carolina. forgot the name of the show p.m. >> all right, back on the power panel. joe mccarter is senior policy editor joining us from boise i'd dough. deanna podala is in new york city. first question, is it gop threatening iran to hurt the american policy? do you know that 70% of the oil market is speculators? it's not people buying oil it's speculating on oil. that causes prices to increase by $27 a barrel. it's groups like goldman sachs that make these estimates. the koch brothers are involved in oil speculation and might move prices for every single american 20 to 40 cents per gallon. imagine every time you go to fill up your tank, 40 cents of that might be going to the koch brothers directly. it's an amazing stat. finally, oil speculation in 2011 cost every family in america $600.

or you could do like mitt romney did, hide money in swiss bank accounts bermuda, et cetera. >> is threatens war with iran part of a reason to hurt barack obama? we'll explain the details when we return. ccm00023

for someone who's running for president to have accounts in switzerland, in the cayman islands, in bermuda? i was astounded. i couldn't even believe that was true. i'd like to know how much of his money is offshore and what kind of message. if he says he's running for president. a president is supposed to lead by example. what kind of example is he giving the american people? passive income versus active income, put your money overseas, it's not creating jobs. it's not helping america. >> i think the example he would -- just to stand in for mitt romney momentarily, i think the answer he would give and he has given is i pay everything that's owed and not a dollar more. the fact is, this is par for the course. if you have a lot of money, you have a lot of money to pay people to engineer clever tax avoidance screens that are within the four corners of the law. i don't know if they're within the four corners of the law or not. i'm assuming for the moment there's no allegation of illegality. what i love about this story, it's making everyone stare into the dark heart at the core of our tax code

we talked about the cayman islands, bermuda, switzerland. now we think of offshore accounts and we think, oh, my gosh, they don't want to pay taxes. >> right. >> however, he did nothing illegal here. >> right. it's not illegal, but the question is is it fair. that goes back to the optics question, the appearance. appearance means a lot. so when you look at this and people hear this, the general voting public is going to have a problem with it. >> now he still hasn't made public the returns from the bain years. >> that would be very crucial. i don't think he will. it's very crucial because that's where the money was made. it's not wages that he's paying these taxes on, it's investments. did he make the money off the backs of the american people. >> why with all of that pressure to release his tax forms t seems like that's really at the essence of the debate here. >> yes. yes, it is. it is at the essence of the debate. he had the pressure to do and he probably should have done it sooner as a lot of people have said. now that he's done it, the

lizieber mud da -- bermuda talk to the director. >> what was it like working on the set?'s a story about a boy, a family, who lose their father, their husband in 9/11, and it's about the kid creating his own way of coming to terms -- trying to find a way to come to terms with the loss. >> the young boy that stars in the film, thomas horn, and is from the bay area. this is his first film. >> his first time acting at all. >> tell us -- i thought it was interesting how you actually found him. you saw three other kid audition for the role. >> 3,000. we auditioned all over north america and europe as well, and thomas came in quite late and we found him really my bruiser remembered him winning kid jeopardy di, and he suggested there was an amazing kid on kid jeopardy and he is one of the more amazing performances by a young actor. >> his first film. amazing. you worked with tom anxious, sandra bull lock. what was is like directing those two amazing actors. >> they're fantastic people. and the story is told from the kid's point of view so the child has this idealization of his f

he didn't just have money in swiss bank accounts in the cayman islands, et cetera, but also in bermuda. this guy is stuffing money everywhere. all the meanwhile, he's arguing for lower and lower tax rates. do you know that mitt romney is in the top .006% and the top 1% of earners earn over $380,000. let's give you a sense of how much money he has. per day, he earns $57,534, earns is an interesting word to use there, but that's how much money he makes. multiply that by seven $402,000. in a single week he's in the top 1%. he's not just in the top 1%, he's in the top 1% with his earnings every single week. that's an amazing number, but yet, he only pays 13.9% in taxes. that's probably his high mark in 2010. he won't release the other taxes, god knows how low they were. why is that guy paying 13.9%. when you look at his payroll travel the average american pays 7.65. romney pay the .1% of his income. almost no payroll tax whatsoever, because he's not a wage earner. he's getting money from unearned income, capitol gains dividends carried interest, so it's investment money. can we just for th

owners and as we talk about mitt romney, bain capital, vulture capitalism, swiss bank accounts and the bermudaally about newt gingrich and being funded by one person? >> if it's an attack coming from the president and his supporters it's not credible. he opted out of the funding the first time. and as mark mentioned the president has a big outside operation going and the democrats had 5-27s and the republicans had a swift boat, so this stuff is old and we are kidding ourselves if you care about reform, are you kidding yourself if you want to believe that there are clean hands on either side. >> and i guess, if we talk about the spark that will lead them to be against super pacs. if it's drawn out, if you look at the numbers here, in florida alone, $24 million has been spent, restore our future is mitt romney's super pac, 8.9 million and gingrich outdone by the romney campaign by 12 million dollars in this goes on, it has a chance to bruise and bloody romney and weaken him as a candidate. if you think this is ultimately harmful to the republican nominee process there will be more paths to make

the point* every time remanded someplace it is a disaster my father said you wouldn't dare go to bermuda because there'd be a coup d'etat. [laughter] the cultural changes reflected in lots of different ways. i call hip-hop islam rather become the rhythm of resistance where young people in the same way were young americans turn to hip-hop as a way to reject game violence but deliver the angry message and the same thing in the arab world and we saw this even before the ginnie shin revolt began nobody has ever told me to talk louder. [laughter] where hip-hop was illegal and you find young rappers who were challenging the regime by putting lyrics on their facebook page one plays the government could not sensor with lyrics that are angrier than any politician, opposition member had dared to water in the 23 years since the president to power. also reflected with the theater of countered jihad where four you find playwrights' writing plays that have the word jihad in them but one of my favorite is from a young egyptian call that jihad jones. [laughter] it is a parody on the muslim stereotypes a

. >> he might try to whisk his daughter to bermuda. >> it launched an international man hunt.charged with a decade old murder to which he's pleaded not. the murder victim, a chie computer programmer named john, who with his wife has befriending the charmer. he even lived in the guest house on the family property. one day in 1985, john and linda disappeared. lin linda's best friend went to the police. >> they were like, at least over 21. if she doesn't want to come back, she doesn't have pop. >> fast forward nine years, they were still missing when a crew digging a swimming pool unearth a skeleton, john's skeleton. police wanted to find that mysterious tenant. >> did it occur to you, we may never get him. >> i thought he could be anywhere in the world. >> there began to decade long hunt. he's still calling himself clark rockefeller. he is still maintaining he's innocent. >> wow. all right. thank you very much. be sure to catch more of mike's report on "dateline". >>> up next, a dramatic rescue caught on camera. a woman gets into an accident and is trapped in icy water up to her

awesome about having a potential candidate for president that has swiss bank accounts and accounts in bermuda and in the cayman islands. >> the alarming thing if you are romney, he has had problems in the primaries before the tax thing was an issue and the bain stuff was an issue with blue collar voters. i looked at the exit polls and there's a direct relationship between the enthusiasm that republican voters have for romney and their income level. he gets 50% of the vote with people making over $200,000. this is happening with every state so far, he had an image problem before it came out. and it makes it worse. >> you see why he has been hiding his tax returns. swiss bank accounts, alienates you from what is pushing a lot of votes right now. which is people are angry at the 1%. he is not the 1%, he is t the .0001%. >> we talk about companies with money overseas, there's something i'm not going to say unamerican, but seems unpatriotic shoring money overseas. he was paying taxes but, again, it's not good optically and not good from a messaging standpoint. >> and the timing is p terrible. it's

the rules allow you to have swiss bank accounts, and to set up businesses in bermuda.he rules allow all of that. the question is, are the rules right? he would continue those rules. it's not right that somebody like governor romney can make $22 million and pay an effective tax rate lower than the middle class tax in the country. if we are going to solve the deficit, then everybody is going to have to give a little, and that inudes people at the top. his view is that somehow our economy profitses because he has special benefits that other people of more modest means don't have, and we just disagree. >> why doesn't that appear to be a more poll tested question? if you want to have shared sacrifices, the middle class pay more taxes too? if it's a shared sacrifice, why not say to everybody, everybody has to do with less in terms of social safety net and everything else? >> well, there's no doubt that there has been sacrifices in the $2 trillion cuts, and there will be more sacrifices, and we will have to address things involving those programs, but the middle class has see

almost reminiscent of a bermuda high and kick those winds into gear here out of the south and southwest. today, we'll be in the 60s. tomorrow, we'll be in the 60s and then we'll start a gradual cooldown as we get into thursday and friday. temperatures will fall back near normal here towards the end of the week. with bright sunshine and temperatures in the 60s, i think a lot of people will be in a good mood. 66 today, lots of sunshine. unseasonably warm. winds out of the south and west at five to 10. cool tonight. mild overnight. 50degrees. we won't even get in the 40s here. partly cloudy skies and as we get into tomorrow, we keep the nice temperatures around. 67, more clouds tomorrow and a better chance of an afternoon shower. thursday, it likes we've got rain showers and and cooler temperatures. 53. notice temperatures, highs will only be in the 40s by saturday. cooler air will move back to the area here for the end of the week. before i toss to julie, just want to remind you about the fox 5 weather app. if you haven't gotten it, my suggestion is you do so. it is absolutely free. you c

bain capital has millions of dollars in foreign tax havens, bermuda, hong kong and ireland. this is not illegal, but offshore holdings brings in massive profits, which is the source of his income. he calls himself an expert in creating jobs, but he is an expert in gaming the system. >> the effective rate is probably closer to the 50% rate because the last ten years my income comes overwhelmingly from investments made in the past rather than ordinary income. i got a little bit of income from my book, but i gave that all away. and then i get speakers' fees from time to time, but not very much. >> this story will not go away. there is a new chapter every day. his favorability rating is starting to take a dive too. he is at 53% and 47 percent rate in a new pupil. they look at rodney favorably. romney has just got ice in his veins. he cannot relate to the middle class. the money running makes in speaking fees is really a lot of changing number. what would you do with $375,000? down in south carolina, it is just over $42,000. 375 is really not that much. net romney does not relate

report discovered bain capital has millions of dollars in foreign tax havens in the kay men islands, bermuda, hong kong and ireland. this is not illegal but offshore holdings brings in massive profits for companies like bain, which is the source of mitt romney's income. he's becoming the poster boy for what is wrong with the tax code in the country. he calls himself an expert in creating jobs, but romney is an expert in gaming the system. >> what is the effect it rate i have been paying? probably closer to the 15% rate than anything, my last 10 years my income comes overwhelmingly from investments made in the past rather than ordinary income or earned annual income. i got a little bit of income from my book but i gave it all away and then i get speaker fees from time to time but not very much. >> not very much. the story won't go away. there is a new chapter every day. his rating is starting to take a dive. he has an unfavorable rating of 53% in a new ppp poll. 33% of americans say they look at romney favorably. romney, this guy, he's got ice in his veins. he can't relate to the middle class

or because that drugmaker is paying for the doctor's trip to bermuda? maybe. because they do that.epard: a new analysis by "new york times" regarding part of the new health care law. drug companies will soon be required to disclose the payments they make to doctors. drug companies sometimes pay for things such as travel and entertainment, the point of the law is to head off medical conflicts of interest. and "new york times" says researchers found evidence that payments to doctors can influence the way they treat parents. with us now is dr. campbell who testified twice before congress on the topic of conflicts of interest. and doctor is an associate professor of medicine at harvard medical school. nice to see you. >>guest: foys to see you. >>shepard: is there as much for do about nothing or is there something? >>guest: well, that is a tough question to answer. clearly we know that relationships between doctors and drug companies are in all aspects of medicine and medical research and education. clearly we know that payments can influence behavior and science suggests those can chan

in the summer too many, we call day bermuda high.t will allow our winds to come in out of the south and kick up our temperatures. much warmer air on the way. 47 today. plenty of sunshine this morning. partly sunny this afternoon. seasonal temperatures. we will be cool tonight although not terribly cold. 35 your overnight low in the city. wind will be out of the south at five to 10 as mentioned. tomorrow being drum roll. okay, no drum roll. nice tomorrow. really spectacular tomorrow. 62. 65degrees on wednesday. everybody will ask where is winter? we'll be harvesting daffodils and crocuses. it is about a month early. >> i know, we might as well just go to spring. >> i agree with that 110%. >> i know you do. >> i know there are winter lovers out there. it is time for ask the weather guys. yes, that is the mighty fine segment where tony perkins and i put our fabulously large heads together to answer -- somebody asked this question, who has larger head. we have to answer that at some point. >> what. a doing up here today? >> today's quest

there's also investment vehicles that run through the caymen islands and bermuda.k. johnson who is a tax expert was on the show a couple hours ago. there are special rich for super rich types. he was able to gift $100 million to a trust fund for his sons tax free. that will likely get scrutiny today as well as where in the world he's making these millions, soledad. >> all right. christine, thank you for that. we're back with congressman trent franks. let's talk. if everything is open and on the table, the candidates said taxes, people have to dig through it. you don't want any kind of october surprise, does that same thing apply for newt gingrich and the ethics investigation? >> i think it does. if people will go to newt.org/answers they'll see the entire ethics laid out. >> let's throw that up. newt has never engaged in lobbying, period. newt made a decision after resigning that he would never be a lobbyist so that nobody would ever question the genuine nature of his advice and perspectives. >> hilariously he said last night, i took legal advice on how to not be a