cancer's everywhere well to put this is to put into context max a he was a former enron trader so a man who was an enron trader cannot make outsized returns in this market be this is how the one percent versus the ninety nine percent here's a man who won't get out of bed for less than. three hundred percent is not enough money he only made nine percent last year also natural gas prices are now down to two twenty eight which is like one fifth of what the natural gas prices are in the rest of the world well two point nine percent rate of return compare that to what the average saver of the average pension fund investors getting on their retirement accounts or pension funds really closer to one percent want to because of the money printing and forest subject down of interest rates in washington and around the world means that savers are under writing and putting the money in the pockets of these speculators who you know are making nine percent which is five six seven times more than the average person but that's not good enough for them again arnold the pig comes to mind now next headl

oh you know going to give me free money well i'm not going to trade anymore well maxie is a former enron trader so perhaps this is a sign that they're not able to rip off granny so easily well but enron trainers you know they metastasized and they they shut them down but they spread through the economic body and now the enron cancers everywhere well to put this is to put into context max a he was a former enron trader so a man who was an enron trader cannot make outsized returns in this market be this is how the one percent versus the ninety nine percent here's a man who won't get out of. bad for less than three hundred percent it's not enough money he only made nine percent last year also natural gas prices are now down to two twenty eight which is like one fifth of what the natural gas prices are in the rest of the world well two points at nine percent rate of return compare that to what the average saver of the average pension fund investors getting on their retirement accounts or pension funds really closer to one percent one of the percent because of the money printing and forest ja

the blood is in the water people understanding that this is the limit of our day of this year the enron of this year they have got tens of trillions of dollars worth of liabilities on their balance sheet they they try to pass that off on the fed's

chesapeake could be the next enron, or worldcom. chesapeake energy is second only to exxonmobil in drilling for natural gas in this country. more than 13,000 americans work for mcclendon, enjoying perks, which according to reuters includes on-site botox treatments. chesapeake also boasts a campus with three restaurants and a 70,000-square foot facility with a rock climbing wall. it may have been among the first signs that something doesn't end up. mcclendon has often made grandiose promises that aren't backed by reality. >> at a minimum, i think they can create a million jobs over the next few years. >> the "they" he's referring to is a fund chesapeake was launching. now, mcclendon is not a household name, but what he's fighting for is. even as natural gas prices have plunged by 50% over the past year, he's been a believer in gas as the fuel of america's future. and some people love him for it. others, not so much. "rolling stone" calls him the world's biggest fraccer. as a matter of fact, every head line they do is world's biggest

enron. we're going with enron. enron is right. you're on the board with 50 bucks.. let's see if you can go two for two. as quipped by jay leno, what short-lived gubernatorial candidate used the slogan, "what you talkin' about, california?" schwarzenegger. no, i don't think it's schwarzenegger because it's a short-lived campaign, though. it was before schwarzenegger. oh, the gary coleman? gary coleman. yeah, it has to be gary coleman. we're going with gary coleman. that's the right way to go, and you're up to 100 bucks. also a common orthodontic device, what term refers to a payment made to secure the services of a professional? retainer. retainer, sir. retainer! dr. fahrenheit in the house. retainer's right. yay! whoo! all right, 20 blocks to go, guys. here's your final $50 question. excellent. about 1/8 the size of the statue of liberty, the statue of freedom stands atop the dome of what d.c. landmark? where the congress -- that has to be it. statue of freedom. has to be it. capitol building? it has to be the capitol building, right? five seconds. yeah, i'm guessi

to march the of the premier issue should be fresh of both the too shirkers sosa if there is someone enron them to inform them from suits and risen in the kingston 11 the second finisher in geneva retort about the it will start but product itself soon will to achieve marlowe's goals were retorts to borrow some saw as impose stiff is effective is not a diet is not led by the rats for of you believe different approach to where it costs you don't do anything but this does is so unbelievably effect of never recorded in and of the largest numbers version will move of the mongol and on average men and women young old bare walls 34 and there were specifically at is not a change in the you your chance to fill in with the of sonobuoys placebo initial issues to the of of sumter lozano the heretics fyns no keller's of zero months and asat at up to one big festa s semple say if your hat was goes on and on doing this and sewing and as of this is up by will some of dullard and the hour day, tehran real school program involving goren and have dinner with friends and family income it feeds 024 some 20 for

as we talk about the tact they are being sued, sued by the lawyers who represented people that sued enronnd won for $7 billion. when we talk about enron, people have a visceral reaction, what does this mean for facebook going forward? >> there is a few lawsuits going on the main one filed what dan was talk about that certain investors got a tip off more specific projections about facebook's revenue than the average investor did. when a company goes public they have to put it in the registration statement, all their financials, so everybody is on a level playing field and what is alleged here that is certain kind of high roller type investors got information that the average investor didn't get. now facebook will say look, we did put some of this in our prospectus, we mentioned there were questions about growth, the revenue stream from facebook mobile, so that will probably be where the fight is in court, whether or not the average investor was warned. >> they are saying they did nothing illegal, certain people would look at that, and say this game is rigged. >> i don't know facebook would

. >> rose: tell me story of jeff skilling, he was a classmate of yours at enron. what do we learn from observation of him? >> well, i knew him when we were at h.b.s. as students together. he's a good guy. you never would have imagined that he would take the wrong turn. nor did he imagine he would take the wrong turn. >> rose: for reference, this was the man who was the principal executive at enron and was convicted and sent to prison and then there was some question about the judgment. where is he now? >> still in jail. >> rose: still jail. 25 year sentence or something like that? >> yes. just a... >> rose: pick up your story. i just wanted to add something to it. >> what's important to learn from him as well as for everything is he never intended to end up where he ended up. you can't teach ethics at a place like the harvard business school, but what you can teach is why is it so important to hold to your standards 100% of the time? and i described in the book how i learned that lesson. i got a rhodes scholarship, went off to oxford, i was tall so i could play ba

perhaps some of the illusions of enron. but yet you see parallels where once again we have a star-studded marquee board with public officials, even university presidents and things that clearly not doing that home work. people know the industry as we had at enron, freddie mac and some of the other troubled boards. there's no difficulty with the financial literacy or the industry expertise. people are just not doing the job. people don't understand iss, risk management. they would give these guys good ratings, but in fact it's the process. they're not getting the job done. independent investigations are needed. you look at this, you look at walmart, news corp, of course recently mf global, here it's almost a dozen years ago that we had the enron world com meld downs. we should be past this and yet we're seeing the same problems. at chesapeake, we clearly still need an independent voice and they're being held hostage by the charismatic ceo. >> jeff, thank you very much. great talking to you. we appreciate your time this morni

taking off some of the caps later removing some transparency and then eventually with the infamous enron loophole moving this entire market on to private unregulated exchanges these exchanges do not have any checks and balances the government doesn't even have a full view of what's going on and the problem of oil speculation excessive oil speculation by these. parties like hedge funds and pension funds has gone completely unchecked and driven up the price of oil for many years now and every attempt to try to write delay these oil speculators keeps getting smacked down because the spoiled speculators are very powerful political players hiring many lobbyists hiring law firms and of course keeping many politicians in their pocket ms lee in the in the minute we have left n.b.c. is just now calling the indiana race dick lugar the the longtime senator has lost can you tell me about who is behind the effort to unseat him what's going on there well this loss if you look at every other news program is going to be touted as a victory for the tea party but i would caution viewers to look the betwee

we saw an example of enron, which was not, you know, a financial company, but it collapsed because of very aggressive use of derivatives. is there anything that you're contemplating in your rules, or anything you're going to do to anticipate this type of problem. >> i think congress anticipated it because it included another category called major swap participant. and i think congress said that if you're nonfinancial you get to choose whether you're involved in this clearing and trading and we're suggesting through the margin rule that you get to choose on that, too. and i think, but if you're so big that your major swap participant and could be systemic, then you would be brought into this. could i answer your first question a little bit? i think chairman schapiro said it very well. this concept of portfolio hedging can mean different things to different people. what congress says, it has to be tide to specific risks. this experience we minds us we have to make sure. it's really tied to specific positions. it's not like well, we think revenues will go up or we like the european debt

and other enhancement technology that enable folks to make an enron around. so that pool is shrinking, and for a while the spending side was increasing. we have put cost controls, we been able, big news, flatten the spending curb. i don't know when the last time we can say those words in washington, d.c., but we have been able to do that. so in terms of broadening that base, one of the concepts we're looking back and looking a backend 2008, was phone numbers, should assess a fee on phone numbers versus revenue. but we have proposed a number of different ideas for comment. we'll people will give us their thoughts or no ideas as well. phone numbers may no longer work. it may be something else. will be broadband revenue? >> host: would you be in support of that? >> guest: we will see where the record goes. i have sort of a rebuttal present in my head that phone numbers are still a good place to go next because of our statutory authority, what we can do under the law that congress has given us. it also broadens the base. he keeps it squarely within traditional te

as i've been saying all along it's going to zero it's going the way of lehmann going in the way of enron you helped us do it the show is taking the terrorist down jamie diamond is going to be unemployed soon so the article goes on to quote one prominent hedge fund manager who is familiar with the trade but declined to be named of course he said this is not jamie diamond against one other fund this is the my of one against one hundred another fund manager then says i think some funds will make a reasonable amount but it's not george soros against the bank of england or john paulson versus us sub prime one of the fund a fund manager said referring to some of the most profitable and famed hedge fund trades of the past twenty years right and one of soros just reported last week a massive spike up in his position in gold yet well that's pretty interesting because we said here when he sold it that he would just buy a straight back well he's it's one in and out now he's back into gold because he realizes that the paper money world is collapsing and there's runs on banks around the world people

thousand and two this is the year that sarbanes oxley was passed this was of course in response to the enron accounting scandal and then you can see how it's escalated and after the two thousand and eight financial crisis we have course had dodd frank regulations passed and those are the estimated costs in complying again this is just technology spending by wall street banks and fund managers asset managers in order to comply with these regulations for what so for a london whale multibillion dollar trading loss at the quote unquote best managed bank that doesn't seem like a lot of bang for your buck our next guest argues these and harold flood models keep blowing up because fundamentally nothing has been done to rein in moral hazard or assert personal accountability at these systemically dangerous financial institutions and combine that with free money from the fed and you can look forward to more whales london or otherwise no matter how much is spent on dodd frank or the volcker rule and in this twisted world of these big huge too big to fail firms is one consequence of this trading loss un

i watched the whole enron debacle unfold years ago. department first went affaloer-level employs, and eventually the chairman was walked into the courthouse in >> bob cavnar, and 30-year oil industry veteran who is author of "disaster on the horizon" and founder and editor of "the daily hurricane", thank you so much for your time tonight. >> thank you eliot. battle speech right? may i? [ horse neighs ] for too long, people have settled for single miles. with the capital one venture card you'll earn double miles on every purchase, every day! [ visigoths cheer ] hawaii, here we come. [ alec ] so sign up today for a venture card at capitalone.com. and start earning double. [ all ] double miles! [ brays ] what's in your wallet? can you play games on that? not on the runway. no. i have the most common type of atrial fibrillation, or afib. it's not caused by a heart valve problem. i was taking warfarin, but my doctor put me on pradaxa instead to reduce my risk of stroke. in a clinical trial, pradaxa® (dabigatran etexilate mesylate) reduced s

the blood is in the water people understanding that this is the limit of our day of this year the enron of this year they have got tens of trillions of dollars worth of liabilities on their balance sheet they they try to pass that off on the fed's balance sheet but then the fed is saying you know when we have an only so much toxic debt that we can absorb from these both good buzz down there j.p. morgan and those drones are going to start selling this thing make it short killing it obliterating it can't wait to see the stock of zero and hedge fund out there make an easy money short this puppy to zero max a few things there first of all regarding jamie diamond's comment he said it was errors sloppiness and bad. sprint which it already seems like he's setting up the chorus line defense here it's chaos in the back office so we're just using little sloppiness errors little things like that it's going to be blamed on the back office perhaps once the whole thing comes down and he's also admitted to just two billion dollars in losses jamie diamond himself says these positions are still open and

strict jurist regulation up to the year two thousand the congress repealed it and it's just in the enron the citibank panic of two thousand and eight and j.p. morgan will ever sense that this is part of the problem with the rivers so this is sub prime there were a trillion dollars for the subprime so even with twenty percent defaults it's only two hundred billion of losses we can absorb that the problem is there were six trillion of derivatives. so the total loss was six times bigger derivatives are the called for a time and time again they should be banned they serve no purpose getting they should be banned altogether exchange traded futures i'm ok with exchange traded futures chicago style been around since the eight hundred fifty s. you put up initial margin and that's fine but these o.t.c. where you know you make up your own margin rules or nontransparent they're really designed to rip the customer's eyes out because the customers can't see the bid offer so that's why the banks like them to get it make a lot of feeding here make a lot of money that's exactly the bank that is arguably

. >> john: financial regulations, first enron, they say we are going to fast this, they fast page after page of rules. president bush says this is going to fix everything. it didn't stop bernie madoff. now dodd-frank. >> there are things that is not going to fix. intentional fraud is very hard to catch. yet we hold out the dream. let me give you dodd frank trying to regulate us to safety makes us less safe. bernie madoff was registered with sec. part of the reforms is to make that large number of money managers register with the sec. they are trying to find fraud. they are competent people but intentional fraud is very difficult to find. these are smart people trying to fool them and it's difficult to check every company. when you go out there and say everyone is registered, the small guy naturally assumes i'm safe. >> john: i'm protected. >> exactly. so it's a tremendous burden but not always often they actually do the precise opposite. dodd-frank does it all over the place. dodd frank claims to big to fail the idea we'll bail out companies that are important to the economy. and i have

agents that were assigned to just enron in the bush administration, it was like 200 f.b.i. agents.that are working as part of this task forces, when you go to the task force website, you go to stop fraud.gov, they have arrested three women, middle-aged women in connecticut because they were running gifting tables. >> whatever they are. >> first president bush went after the s&ls second president bush and bill clinton went after em ron but this is not just happening. >> sean: how do you get in front of a polling place with a baton and nothing happens when you put a bounty on somebody's head. i think this is going to grow. we'll continue to follow it. gentlemen, thank you so much for being with us. our great, great american panel is next. they fly just a liiiiittle bit higher... [ man ] he hits it! [ morgan ] ...go just a liiiiittle bit further... [ woman ] a perfect 10! [ morgan ] they can even be perfect. and when we come together... to cheer...as one... [ chuckles ] ...we know what happens. [ crowd cheering ] visa. proud sponsor of the olympic games for 25 years. join our global c

. >> john: financial regulations, first enron, they say we are going to fast this, they fast page after page of rules. president bush says this is going to fix everything. it didn't stop bernie madoff. now dodd-frank. >> there are things that is not going to fix. intentional fraud is very hard to catch. yet we hold out the dream. let me give you dodd frank trying to regulate us to safety makes us less safe. bernie madoff was registered with sec. part of the reforms is to make that large number of money managers register with the sec. they are trying to find fraud. they are competent people but intentional fraud is very difficult to find. these are smart people trying to fool them and it's difficult to check every company. when you go out there and say everyone is registered, the small guy naturally assumes i'm safe. >> john: i'm protected. >> exactly. so it's a tremendous burden but not always often they actually do the precise opposite. dodd-frank does it all over the place. dodd frank claims to big to fail the idea we'll bail out companies that are important to the economy. and i have

we saw the example with enron. it collapsed because very aggressive use of derivatives. is there anything you are contemplating would anticipate this type of problem. >> i think congress anticipated it. i think congress said if you are non-financial, you get to choose whether you are involved in the clearing, treating, and we are suggesting that you get to choose on that, too. but if you are so big it that your major swap participants and you could be systematic, then you would be brought into this. i think that chairman shapiro said it very well. one thing i would add is the concept of portfolio hedging can mean different things to different people. this has to be tied to specific risk or aggregate position. this reminds us we have to be sure. it is really tied to specific aggregate positions. it is not like we think revenues will go up or we like their european debt market these days. feasting sometimes you take into something else, particularly when they're set up as a separate business use. -- might experience sometimes you take these and they go into something else.

during one company enron scandal 100 investigators.ow, 55 investigators, in other words, we don't want to know. we're not really investigating these people who are our friends. presididtt bush s defendidi jamie dimon wrong again bob. he didn't do a very good job but you think president obama might have learned those lessons? apparently not. he said this jp morgan is one of the best managed banks there is. jamie dimon, the head of it, is one of the smartest bankers we got and they still lost $2 million and counting. we don't know the details. it's going to be investigated you but this is why we passed wall street reform. we're going to bring in david allison, pull lester prize columnness. first of all, david, always a great pleasure to have you here. when president obama said this is why we did wall street reform. i'm confused, if we did well street reform why did jp morgan able to take this insane risk and lose all this money? >> well, we haven't reformed anything on wall street. this is a complete shock. the fact is we made a fundamen

when you use the term enron, that's a frightening term. i do not believe it is enron. that is the chatter. >> thank you, jim. melissa, over to you. >>> very big open here on wall street to kick off this new trading week. does jpmorgan weigh on the financials? avon as well as homebuilders. we have all the bases covered for you and the opening bell straight ahead. ith the best mat. ...the united states would be on that list. in 25th place. let's raise academic standards across the nation. let's get back to the head of the class. let's solve this. [ creaking ] [ male announcer ] trophies and awards lift you up. but they can also hold you back. unless you ask, what's next? [ zapping ] [ clang ] this is the next level of performance. the next level of innovation. the next rx. the all-new f sport. this is the pursuit of perfection. take the privileged investing tools of wall street and make them simple, intuitive, and available to all. distill all that data. make information instinctual, visual. introducing trade architect, td ameritrade's empowering web-based trading platfo

there was 100 agents for enron alone.don't want to solve it. >> i don't disagree with you there, but it's an election year, they have to get obama reelected -- >> for what? >> because you know he is going to be different than mitt romney. they have to get him reelected this year as a democratic party, for a variety of reasons that have nothing to do with cory booker. but the point i'm making is the concentration democrats should be going after and what they should be focusing on are the rules. the rules that allows people to abuse a system. and they are focused on a democratic mayor from new jersey who said private equity has some benefits. he is right. >> on the last point you are 100% right. i know a guy who ran on changing the system but didn't do much about it. if president obama said here is the real change i propose, we get the money out of politics i would love it. unfortunately he hasn't done that. it doesn't look like he is going to do that and i have no confidence if he wins the recollection that he is going to

i watched the whole enron debacle unfold years ago.ment first went affaloer-level employs, and eventually the chairman was walked into the courthouse in >> bob cavnar, and 30-year oil industry veteran who is author of "disaster on the horizon" and founder and editor of "the daily hurricane", thank you so much for your time tonight. >> thank you, eliot. >>> getting away with torture, my view coming up next. [ woman ] oh, my gosh -- it's so good! [ kristal ] we're just taking a sample of all our different items in our festival of shrimp so we can describe them to our customers. [ male announcer ] red lobster's festival of shrimp starts now! for just $12.99, pair any two of 9 exciting shrimp creations like new barbeque glazed shrimp or crab stuffed shrimp. the crab-stuffed shrimp are awesome! [ woman ] very creamy. that's a keeper! [ woman ] shrimp skewer. [ woman #2 ] sweet, smoky. [ man ] delicious! [ laughter ] [ male announcer ] any combination just $12.99! [ woman ] so what are ya'lls favorites? [ group ] everything! [ laughter ] we'

he basically says he's proud of the fund's progress coming out of enron which of course closed down.e says after 17 years of doing this, i feel it's time to pursue other interests. we're hearing he may devote himself to philanthropic causes. they manage $3 billion to $4 billion. they've had a very successful track record. on one down year in their ten years of trading which was 2010. last year they returned 7%, which was pretty good in the environment. but we're seeing a lot of pairing in the commodity trading space, mandy. a lot of people are going in different directions. one in london closed earlier this year or in the process of doing that. in the broader sense, you saw stanley drunken miller a couple years ago. it seems to be a period in that industry. >> it sure does. thank you very much for the breaking news, kate kelly. i know you're on that story. in the meantime, we're going for a break. after that, hello kitty joins the mile high club. and how a dark and creepy side of life is actually proving to be big for one stock in particular. and speaking of filthy rich, an all new e

morning's suits has a pretty good pedigree winning more than $8 billion in claims for investors in enronthat was against nasdaq, problems with trading caused early trading in facebook to be extremely volatile. investors had trouble carrying out orders. now the s.e.c. and finra have opened reviews into this situation. it ended up losing a lot of money for investors. >> kayla tausche, thank you, appreciate it. >>> other stories topping the news, for the first time in generations, voters in egypt right now are freely picking a president. this 15 months after hosni mubarak was forced out of office. egyptians are lining up for hours to cast ballots to choose a successor. they'll choose from a field of 13 candidates. but a likely winner won't be announced until june. >>> no answer from jurors in the john edwards trial. the jury is meeting again today trying to determine the former presidential candidate's fate. edwards faces 30 years in prison for allegedly using secret payments from donors to hide his pregnant mistress during the campaign. >>> nancy reagan is making a slow recovery after brea