times one hundred that's why i say enron. is and j.p. morgan are going in the same direction they're going to zero j.p. morgan stock will be zero at some point i'm willing to bet anything on that happening within the next five years well ken lay at enron just determined that trading derivatives is actually more profitable because they can just clearly scam everybody the nationalization yeah so here we have the banks saw that and they didn't do anything to help stop it they said we want it on that business so in two thousand and three using special exemptions granted by the federal reserve bank and relaxed regulations approved by congress the banks have bought huge swathes of infrastructure used to store commodities and deliver them to consumers from pipelines of refineries in oklahoma louisiana and texas and by the way how many problems have we had with w c i because of exactly these guys the pipes don't work the pipelines don't work things aren't delivered nobody knows how to trust w.t. i anymore to fleets of more than one h

being fined five hundred million dollars for rigging the energy markets exactly in the same way that enron did by the way and now we have this new york times piece covering the aluminum market so in two thousand and ten goldman sachs bought metro international which has twenty seven warehouses in detroit and here is their story a shuffle of aluminum but two banks pure gold the story of how this works how they're able to add five billion dollars to the cost over three years to aluminum x. begins a twenty seven industrial warehouses in the detroit area were goldman subsidiary stores customers aluminum each day a fleet of trucks shuffles one thousand five hundred pound bars of the metal among the warehouses two or three times a day sometimes more the drivers make the same circuits they load in one warehouse they own load in another and then they do it again so since buying this the average delivery time for your aluminum has gone from six weeks to now eighteen months because of goldman sachs adding the cost before you speak max goldman sachs has replied to this new york times piece and they s

merkley democrat of oregon says every minds we have the potential for problems that occurred when enron was both supply electricity and running electricity trading markets they're all like this is like how many times does the same crime have to happen before they say let's stop it let's introduce a go to jail do not leave for the next three rounds or the next three lifetimes and just skilling was one of the architects of enron's crimes is going to be let out of jail early presumably he'll get a job at j.p. morgan so there were j.p. morgan's attempts you know to attitude toward commodities is what the n.s.a. kind of approach through data facebook and data they want to control like a huge vacuum all the data all the information and. lated knowing the three hundred sixty degree full spectrum dominance of all the data so jamie dimon wants to say oh let's just control every single commodity trade out there in the world take a little piece little rent seeking well the exiting this market now because people you know you have revolutions around the world partly because since two thousand and th

the next three rounds or the next three lifetimes and just skilling was one of the architects of enron's crimes is going to be let out of jail early presumably he'll get a job at j.p. morgan so there were j.p. morgan's attempts you know chata to talk commodities is what the n.s.a. is kind of approach through data facebook and data they want to control like a huge vacuum all the data all the information to manipulate it knowing the three hundred sixty degree full spectrum dominance of all the data so jamie diamond wants to say oh let's just control every single commodity trade out there in the world take a little piece little rent seeking well the exiting this market now because people you know you have revolutions around the world partly because since two thousand and three all the prices of oil agricultural goods copper metals everything has risen because they've created artificial monopolies and then there were big corporations like millers chorused you know bigger the beer when the bear manufacturers start complaining those guys you know out in pennsylvania are going to rise i. found

they cannot not keep saying oops. >> martoma and the enron scandals. they had him cold, they had him shredding documents. i do not know steve cohen, i have no skin in the game. i just find it odd that they have been pursuing him like the while whale, and the statute of limitations is about to run out, and they cannot charge him, so they go after the whole company. >> they are not a shy group of people, larry. >> but if they cannot get him, why just go after the entire firm? >> because, look, it's not like something happened once, it's not that it happened twice, it has happened three times now, they have two outstanding indictments, you can be in the mail room and your conduct can be attributed to the company. so the gomp is going to actually be criticized on this one, you want to talk about the sec, i'm with you. but not on this. >> why is the justice department leaking this before it happens? this is another one of the things that gets under my skin. >> i don't know, they should not be doing it and one possible motive is they have two days left on th

conviction won by the justice department against accounting firm arthur andersen implicated in the enron scandal now incredibly the government tells companies to police themselves the justice department's current position is that a company can escape criminal prosecutions if they just promise to change their behavior. as of two thousand and eleven not one corporate c.e.o. thank you executive or politician has been criminally prosecuted for crimes leading to the economic meltdown of two thousand and eight if you really did the investigation of the democrats would not be able to simply say always those george w. bush it was him well you know what it was a lot of bush. but i'm afraid the republicans will be able to say sorry not just last take a look at robert rubin secretary of treasury under bill clinton and all of the ruben guys they were working with alan greenspan they were working with phil gramm to deregulate all of this stuff so you got true bipartisanship everybody wants by bob is a you got it. and the memory of what a waiting game shrine in this country is some kind of a great lea

station for the name of the banking organization and you have taco bell arena and coors field and enron field and while this might not be that extent we want to say putting names on this structures that are gracing our waterfronts for years to come is not the way to raise funds to make this solvent. it's like akin to a bake sale. the funds raised to plug the hole that is going on. we think there are other ways without commercial rising this and this say slippery slope and it's to register the initial thoughts and we will be back next month to more completely present our case but want to make an initial statement in opposition of naming these buildings with naming rights. >> okay. item nine executive director's report. >> well good afternoon commissioners. thank you for joining us on such a beautiful day. it's hard to believe we're in the room. thank you to all that are here today. we have an exciting agenda following up on a start to our summer. it has really happened here at the port with a big bang and earlier today commissioner adams commented at the port we want to be a place where

is very, very rare - the last time this happened was with arthur andersen, the accounting firm for enron - it's to be seen whether firms like goldman sachs, morgan stanley or jp morgan can actually justify trading with one of their best customers." that was antoine gara, reporter with thestreet.com. he says that while the firms are loyal to sac now, their compliance departments could change that. it's well documented: most americans fear putting money into the stock market. greg mcbride of bankrate.com is with us this morning. good morning, greg, and where are people stashing cash? - alarmingly, angie, when we asked people "for money that you're not going to need for 10 years or more, where do you think the best place to invest it would be?," 26% said "cash." that was the most common response, and that's very alarming, because not only do people not save enough, but the fact that they're going to put that meager savings in a very conservative investment that's not going to grow their buying power over time is going to leave a lot of people well short of where they need to be for those lo

for manipulating the price of aluminum used for an unknown halliburton pleads guilty to pulling an enron and destroying evidence related to the two thousand and ten b.p. gulf of mexico spill they will pay a fine of up to two hundred thousand dollars but just to put this in perspective that's roughly point zero three percent of their six hundred seventy nine million dollars reported annual revenue and anthony weiner's wife a human abdeen is in the news that senator chuck grassley is investigating her activities while she worked for hillary clinton when she changed her name her official title and became a quote special in government employee and she was able to take on private clients and guess where she words none other than the firm founded by bill clinton and former british prime minister tony blair a firm called meal that will be involved would be were meant that we didn't mention that john corps iran was paying some the old fifty to one hundred thousand dollars a month and unfolding just prior to blowing up m.f. global audience and you connecting any related dots on this one by the wa

conviction won by the justice department against accounting firm arthur andersen implicated in the enron scandal now incredibly the government tells companies to police themselves the justice department's current position is that a company can escape criminal prosecutions if they just promise to change their behavior. as of two thousand and eleven not one corporate c.e.o. bank executive or politician has been criminally prosecuted for crimes leading to the economic meltdown of two thousand and eight if you really did the investigation of the democrats would not be able to simply say always those george w. bush it was him well you know what it was a lot of bush. but i'm afraid the republicans will be able to say sorry not just loss take a look at robert rubin second third treasury under bill clinton and all of the rubin guys they were working with alan greenspan they were working with phil gramm to deregulate all of this stuff so you've got true bipartisanship everybody wants by bob is a you got it. and the memory of what a waiting game shrine in this country is some kind of a great leade

manipulating the price of aluminum used for can you know how a briton pleads guilty to pulling an enron and destroying evidence related to the two thousand and ten b.p. gulf of mexico spill they will pay a fine of up to two hundred thousand dollars but just to put this in perspective that's roughly point zero three percent of their six hundred seventy nine million dollars reported annual revenue and anthony weiner's wife huma abdeen is in the new is it senator chuck grassley is investigating.

for manipulating the price of aluminum used for an unknown halliburton pleads guilty to pulling an enron and destroying evidence related to the two thousand and ten b.p. gulf of mexico spill they will pay a fine of up to two hundred thousand dollars but just to put this in perspective that's roughly point zero three percent of their six hundred seventy nine million dollars reported annual revenue and anthony weiner's wife a humor abdeen is in the news that senator chuck grassley is investigating her activities while she worked for hillary clinton when she changed her name her official title and became a quote special in government employee and she was able to take on private clients and guess where she words none other than the firm founded by bill clinton and former british prime minister tony blair a firm called to meal for a living and bob would be remiss if we didn't mention that john corps hangs in the open to one hundred thousand dollars a month and consulting thieved just prior to blowing up m.f. global continue connecting any related dots on this one by the way the muni market is

jp morgan did confirm the settlement reminiscent of a scandal when enron made millions in california. >> san jose earthquakes have been forced to delay the opening of their soccer stadium. crews have encountered what is described as difficult conditions finding water filled underground vaults along with piles of steel beams and concrete. the earthquakes now help to open for the second half of the season. >> little league world series giving tri valley area a nine day economic boom meaning big crowds on, and off the field. we're live with the impact of the series. david? >> this world series is drawing teens and spectator frarntz world including japan, canada and ecuador. but not just here for a long weekend or a few hours they're here nine days in hotels, restaurants and shopping. that translates into millions of dollars. these 11-year-olds to 13-year-old have extended families and supporters. 10,000 descended on livermore valley. >> they like bacon, sausage and pancake autos it's the shot in the arm the businesses lost. a crowd of a thousand inside and out. >> we took care of them, t

energy regulatory commission that would be for allegedly manipulating energy markets in california enron style barclays already battle for four hundred thirty five million dollars and a similar settlement for j.p. morgan in what amounts to well just one sixtieth of its twenty six billion dollars and revenues reported last friday no word yet on how much of it actually profited from allegedly bilking american oil with the subprime is back the consumer financial protection bureau just strengthen mortgage underwriting standards which we don't fund fall under the new rules don't worry that's because the guy who helped write the rules that the c.e.o. to be just went private and he started a company that will service the very old regulatory body you know excludes. or even provide. interest only financing because it worked out so well in two thousand and eight you can't make this stuff up breaks down the boom bust cycle later in the show. and here is what then your ryan interest. when it comes to economic textbooks and economic schools of thought we hear a lot about keynesianism but there are ac

economy looks better than anywhere else in the world so weave this enronment with real growth and thenflation hedge because part of the economy is in inflation node part of it is in deflationary. is a safe place to put your money coming on of the bond market into equities so there is reason to believe the market is still cheaper courbet the ones to have the market have a cold -- to pull back but it isn't. i am not saying that it won't. lou: the markets frustrating a lot of the gurus but a couple of things developing today is the suggestion that perhaps there is devil back of the tax exemption of municipal bonds. >> that has been on the table for a while. i don't know if it has a variance or not that we will see how it turns out. u: and basl iii is not strong enough some would like to raise the debt that 6% to be done with it. >> this is just one more move to make big banks smaller the missing ingredient is the regulators like the bigeat down for all financial institutions. they have to get smaller that is fine but you have to break the medium ground. so for certain they will continuu

energy regulatory commission that would be for allegedly manipulating energy markets in california enron style barclays already settled for four hundred thirty five million dollars and a similar settlement for j.p. morgan what amounts to well just one sixtieth of a twenty six billion dollars in revenues reported last friday no word yet on how much it actually profited from allegedly bilking american idol with the subprime is back the consumer financial protection bureau just strengthen mortgage underwriting standards if you don't fund fall under the new rules don't worry that's because the guy who helped write the rules that this you have to be just went private and he started a company that will service the very market his old regulatory body no excludes and yes even providing an interest only financing because it worked out so well in two thousand and eight you can't make this stuff up breaks down the boom bust cycle later in the show. and here's what's in your interest. when it comes to economic textbooks in economics schools of thought we hear a lot about keynesianism but there are a

jp morgan did confirm the settlement reminiscent of a scandal when enron made millions in california. >> san jose earthquakes have been forced to delay the opening of their soccer stadium. crews have encountered what is described as difficult conditions finding water filled underground vaults along with piles of steel beams and concrete. the earthquakes now help to open for the second half of the season. >> little league world series giving tri valley area a nine day economic boom meaning big crowds on, and off the field. we're live with the impact of the series. david? >> this world series is drawing teens and spectator frarntz world including japan, canada and ecuador. but not just here for a long weekend or a few hours they're here nine days in hotels, restaurants and shopping. that translates into millions of dollars. these 11-year-olds to 13-year-old have extended families and supporters. 10,000 descended on livermore valley. >> they like bacon, sausage and pancake autos it's the shot in the arm the businesses lost. a crowd of a thousand inside and out. >> we took care of them, t

liz: sadly they're not remembering the case of enron and the stock looked pretty good and we know whatd there. >> right. liz: clearly lessons have not been learned. >> that's correct. liz: let let's talk about sectors first. are there the most respected sectors and sectors not held in high esteem? >> couple interesting factors. banks and big global banks especially get little respect. that is residue of 2008, 2009 financial crisis. jpmorgan was i think 45. so that's not really that high. another area that doesn't get loot of respect is tobacco companies. and as one of my sources said, it is hard to respect a company that kills its customers. liz: wow! >> some sectors don't do well. health care has really not done that well. it used to do well. and there is russian, this is not a sector, countrywise, russian and chinese companies never do well. lack of transparency and lack of rule of law. liz: exactly. lack of transparency. how people talk u.s. will lose listings because of too much regulation. and the other side of it there is problem. everybody is screaming give me the list. number f

case reminiscent of the scandal a dozen years ago when enron made millions through illegal trading practicescalifornia. >> bay area goodwill industry has been forced to destroy hundreds of thousands of dollars worth of donated clothing and merchandise after discovering bed bug. agency shut down 2 warehouses which distributed 21 stores in san francisco, san mateo and marin counties. exterminator clean affected areas tomorrow. there is no evidence that any infected merchandise actually made it into any goodwill stores. >> this afternoon long waited ruling spells out the future of smart phone base ride sharing service such as lift and side car. as jonathan bloom explains taxi drivers stage angry protest today. >> flooding the streets around city hall taxi drivers created a colorful ear splitting traffic jam. demanding an end to smart phone base ride sharing purposes likeide car hoover x and lift with the pink mustang. they insist the draivrs steel the fair. >> cheer from everyone who has a family to feed. these illegal taxi are making it impossible for law abiding cab drivers like you and i to

this is really only about 1% of that event. >> well, given that you mention enron, i-going to ask, youch is fighting your proposed settlement and jpmorgan. why is it that energy market abuse is still happening? >> well, it's happening at a very low level. we want to make sure that people understand this. again, what happened today with jpmorgan was only about 1% of what happened with enron and all the other entities back in the early 2000s. what we're seeing here is ferc ramping up our enforcement ability. we're able to do that in a way the markets can stay fair and open and transparent for consumers. >> did it take a while to ramp up? it has been since 2005 it's been eight years and we've seen a rash of cases in the last two, but perhaps a little bit of a quieter period in the interim. why was that? >> it was because of the ramp up. number one, we had to get the personnel on board and number two, we had to start doing the analysis and this analysis would have to go in depth in what's happening in the markets to determine the manipulation screams. now we're fully functional. we have a

. >> jim who started his career as a forensic accountant and known for calling and founding enron, areomfortable with cat's accounting? >> i am comfortable with cat's accounting. i think what mr. chan close was talking about, of course, was the situation with seaway, a chinese company they had to purchase and write off the goodwill almost immediately because of accounting fraud at the corporation. 1% of the market cap and there's questions from a mining equipment a couple years ago that suffered. will they write off the goodwill there? i don't think it's an accounting issue. i think it's more valuation-based but overall the controls that are in place are sufficient at caterpillar right now >> at am fleck, thank you very much for joining us on cat. meantime, let's take a look at what's happening in housing, a very big story with housing starts falling nearly 10% last month but home builders very interestingly, holding pretty strong against that weak housing starts number and this all comes as john paulson just moments ago, you heard him here on "street signs," and he is at cnbc's delive

if you're asking more broadly what we've seen ever since the enron scandal is the withdrawal of enormousf less sophisticated financial participants, because they think the system is rigged in favor of the big guys, and the system is rigged in favor of the big guys which is why you continue to see even in a record bull market very low levels of participation by regular people compared to the past. >> abigail i know you're not a fan of high frequency trading. are you? >> bill, it's hard to be a fan of this. it's just morally, it feels unfair to give the guys with more money the ability to make more money, more quickly than the small guys, plus when we look at high frequency trading it creates false liquidity and takes out the essence of trading in a way. back in the day, people running ticket orders. now entering these orders into the electronic exchanges and without rhythmic didn't didn't it really just doesn't have the same essence of what stock trading used to be back in the day. the unfair advantage on many levels. it's hard to like. >> i haven't decided how i feel about this. >> reall

the enron case went out of business which was later overturned. as bertha said, it clearly looks like, in this instance, if they don't have substantial information that steve cohen traded outside information, they will put the business up which is mostly owned by steven cohen. >> what ripples do you think there will be in the market? >> i don't think there will be. i think we would have seen them already. one doesn't have to worry about large-scale liquidating positions at sac. they do have a quantitative trading operation, but they run with probably, i would say, the industry average. they're not a 17 or 20 times leveraged operation where you're going to see margin calls and things get wiped out because of this type of thing, or other hedge funds in their positions. >> do prime brokers stay with them? because they can't trade if they don't have the prime brokers. >> they can't trade certainly on a leveraged basis. as jim carl and cramer were discussing this morning, i'm sure you can do cash on cash business with anybody irrespective of the situat

other people show companies where it has very nice language and it was written by a company called enronanies that known in the industry off the shelf compliance manuals. just because you have a compliance manual, just because you have a compliance policy, that is not a defense. the prosecutors alleged really the opposite kind of a culture of non-compliance and culture of really just trying to get out ahead on inside information. so i don't see a defense in either the washington action or in the new york action that's really going to hold weight right now. david: guy, neither one of you do. harvey pitt, seth, thanks very much. we appreciate it. liz? liz: david, from plumbers to doctors it is a one-stop shop giving you inside scoop on local offices and quality. how do they handle competition if a online behemoth become as competitor? angie's list ceo gives us a plan. look at rapidly growing review site but the stock is up 100% year-to-date? how will the company turn a profit. >>> google launch as new device that brings video straight from the computer or smartphone to your tv. david: wow.

. >> we are pulling now more and more risk into the system, and that what happened with enron is at leastuld stand as a cautionary tale as we look forward to the integration of these larger financial institutions in the commodities market. cenk: there are no cautionary tales. the bankers look at cautionary tales and go hmm that was a good way of making profit, how can i use that in a differently market. right now speaking of cautionary tales j.p. morgan and sold man sacks and one other bank, three banks just cornered the copper market. they've bought 80% of the market. the people who let them do it? our securities and exchange commission. when they ask what are you doing, why did you let them get a monopoly on this, they say we were told even if there's a lower supply, the price won't necessarily go up. who taught you economics? that's insane! of course it will go up and you know it. that's the problem our government is in cahoots with these bankers to rob the rest of us blind whether it's the consumers or other corporations who have to pay the price. one last fact for you guys. in the la

he said if you compare this to enron 12 years ago this is really a fraction of the level of activityn the 2000s, and obviously that would be a welcome change n.2005 congress authorized ferc to kind of beef up its enforcement staff and try to go offer manipulation on a more vigorous basis, and in the last couple of years they brought more than a dozen case is, this being the latest. for jpmorgan, this is the latest in a string of ill-fated moves. they took on this energy business through the acquisition of bear stearns in 2008 and added to it in 2010 but acquiring rbs sempra for $1.7 billion but commodities have been highly volatile, tyler in, recent years and something they have sort of struggled, and now it looks like they will divest themselves with all of the part of the commodities business. >> kate, thanks very much. >>> moving along, it's must-watch cnbc tonight. the premiere of "the profit" tonight at 10:00 eastern time. you do not want to miss it. there is its start, marcus lamonis who will do whatever it takes to fix a failing business. he can smile. he will smile, i promise