. >> we will have new york attorney general eric schneiderman. don't miss it. >> and tune into "market makers" on wednesday. michael lewis himself will be our guest host for the entire hour. ♪ >> more revelations of this weekend about the faulty general motors ignition switch that led to at least a dozen deaths over the past decade. newly released document said the company decided not to fix the problem all the way back in 2005. the reason? it was too expensive. our auto reporter matt miller is here. we also have sally greene there -- sally greenberg. matt.begin with you, more details on what is called damning documents. >> it looks absolutely awful and i am sure for mary barra it is a horrible as well but not nearly as bad as it is for the families of people who died. in the case where general motors solve the problem backing 2001 open anin 2001 and investigation in 2004 and decided a fix was too expensive. you have to ask yourself, if someone thought, wait, -- it is too expensive, we would rather let someone died? worthensive that it is the cos

joining me now, new york attorney general, eric schneiderman.ays a pleasure and honor to have you on the show, especially on the heels of this, more good for people who think minimum wage workers need a fair shake. i was staggered by the statistic up to 84% of workers, fast food workers report wage theft has something that happened to them. why are we hearing about this now? >> what's happened, workers, fast food workers and others, have found their voice, and these are folks that traditionally, a lot of folks in the labor movement thought you can't organize these people, they're too vulnerable. they found their voice. sciu, mary kay henry have thrown down on the fast food workers and are backing them up and they are coming forward in numbers that are staggering. we settled two weeks ago, got back wage over 1,000 car work washers. yesterday announced 1600 mcdonald's workers, finding their voice, getting support from unions and becoming a powerful force in reviving essential american efforts to do something about inequality. everybody talks about

eric schneiderman is here live. >>> old tech, new hope. as microsoft looks to launch office for ipad, will the stocks be winners for your money? >>> public offerings with so many new ipos soaring, is there a bubble brew that could soon burst? today's starting lineup, joe josh and stephanie link is here. stocks are rallying again today after russian president vladimir putin suggested no plans to move further than annexing crimea. that seemed to calm investors a bit but there seems to be plenty of risks to keep an eye on. ball seems to be in president obama's court now to comment on further sanctions but there are still risks to keep an eye on. >> like a lot of geopolitical storms. flare-up, the vix spikes, the market gets more comfortable with it and the unknown becomes more moaknown. how much is putin going to push to get a pro-russian guy up there and is that going to be the next flare-up? we don't know but in the absence of anything immediate or military you have calm. the dow is up 400 points in 48 hours. >> is it safe then to be in thi

the bokens were with new york attorney general eric schneiderman. >> thieves are not going to stop stealingphones until they know the smartphones are worthless. >> reporter: a kill switch allows them to erase data and make them inoperable. wireless companies warn the technology could theoretically be used by criminals or terrorists to cut off cell phone operations. >> we're very concerned it's secure. we don't want anything that's a hackable kill switch. >> reporter: but new york commissioner william bratton points out the industry profit when owners replace or ensure devices. >> they're making a fortune on this. they don't want to lose them. well, shame on them. >> reporter: in addition to a congressional bill, several states including california and illinois are also considering kill switch legislation. it makes it hard for manufacturers to resist. elaine quijano, cbs news, new york. >>> well, getting mad can be dangerous to your health. a new study found two hours of an angry outburst heart attack increases nearly five times. and a chance of a stroke also goes up. researchers say more st

today the bokens were with new york attorney general eric schneiderman, he is among the growing numberofficials that want mandatory kill switches in mobile devices. >> thieves are not going to stop stealing smartphones until they know that the smartphones are all worthless. >> reporter: scott, in addition to the kroningal bill, several state its including california state its including california and illinois are also considering kill switch legislation, the size of those markets makes it harder for the we are very concerned it is also secure, we couldn't want an instance where it is a hackable kill switch. >> but new york police commissioner william bratton points out the industry profits when owners replace replace or insurance devices. >> we are they're making a fortune and they don't want to lose them. well shame on them. >> in addition >> reporter: scott, in addition to the kill switch bill, several state its including california and illinois are also considering kill switch legislation, the size of those markets makes it harder for the wireless industry and >> pelley: elaine, tha

attorney general eric schneiderman saying the company must compensate for all of the lost cash dollars on the gm recall. releasing testimony ahead of tomorrow's hearing. chris malone is here to weigh in. it gets worse every time news breaks. we just hear more that they knew it seems like the situation gets worse and worse. >> it will get worse before it gets better. this really is an opportunity for them. they should run into this ambush, not shy away from it. i believe that pending on the way they embrace and handle this, they could cut in half the recovery time. >> if you were a stockholder, with that terrify you what he just said? >> you want the company to, call it, the formula. in this case, 2.6 million cars would have had to have a board expensive ignition system. do they throw out the formula and worry about the media event? look what happened to toyota. it did a lot of damage to that brand. i think you have to reassess the formula. it will cost them a lot more than the quarter billion dollars. >> despite the fact that they did not make gm specifications. they canceled the propo

eric schneiderman is here live. >>> old tech, new hope. will the stocks be winners for your money? >>> public offerings with so many new ipos soaring, is there a bubble brew that could soon burst? today's starting lineup, joe

. >> eric schneiderman is with us investigating the high-frequency trading. welcome. >> thank you. >> so high-frequency traders, as shown by michael lewis and steve kroft, is it illegal? >> it's been around for a while, not illegal. what michael is talking about are high-frequency traders who use their speed to take advantage of cracks in the foundations of our market. as i think he explained in the "60 minutes" piece, we now have 60 public and private markets that are linked up, and there are cracks. there are places you can get to faster than other people and front-run the market. what's improper is front-running the market, using any special advantage or edge with your speed to have an unfair advantage over anyone else. there's an assumption in the marks that everyone's allowed to do research but they're fundamentally -- >> is what they laid out last night illegal? >> some of it i believe, may be illegal. our office's had an investigation for over a year in some practices related to high-frequency trading. there was a situation we dealt with last year wher

i want to go to eric schneiderman. may, the new york attorney -- attorney general announced plans to sue wells fargo for curbing foreclosure abuses. the $26 billion settlement was reached in 2012 between five major banks and 49 attorneys general. it provided basic protections for homeowners such as requiring banks to notify them about missing documents within a certain time period, but he said the banks had violated the times of the settlement with impunity. he showed hundreds of complaints issued by homeowners against the banks. fargo and bank of america have flagrantly violated their obligations under the settlement. i sent a letter to the monitoring committee, the body that oversees the implementation of the national mortgage center settlement, notifying them of my intention to sue wells fargo and bank of america for noncompliance of servicing standards, spelled out in the settlement. this enforcement action is the first taken under the settlement, based on 339 individual complaints from new yorkers against these tw

we were pushing this when we helped eric schneiderman's secure cell phones initiative. gerri: new york attorney yen. >> there is legislation in california. and now the federal legislation. i think people are starting to pay attention. gerri: paul, there is another solution being proposed by the wireless companies themselves, a national database of stolen phones where you could go and check in if your phone is stolen. is that enough of a solution for you? >> no, i don't think that would solve the problem. the problem is these phones are being stolen here and being shipped overseas that would solve a national problem. if the phones are being resold in america but it doesn't solve the problem of the phones going to asia and other places. >> annie, to you, how old was your sister when she died and what do you make of this debate and this controversy and you sit down and listen to people talk about it, people that didn't even know your sister. >> meagan was 23 when she was killed. she was a year out of college. she was just starting her career and navigating life as an adult

understand, hank is still fighting what is left of the spencer case with current attorney general eric schneidermanked some people, just pick up the state, get away from these nutty regulators and he is considering that. greenberg is considering moving all of the operations from new york to texas. a fairly big move. i will say is this. if you ask why the state is in bad shape economically and is, you bail out the new york investment banks in 2008, still have less employment because regulations caused people like hank greenberg when they start growing and getting -- he built a ig into a huge entity but now he is doing his second act. they bought another accompany a couple weeks ago. when you start getting that, the economics force you to cut your costs by moving to texas as opposed to putting up with regulations and taxes here. that is what greenberg is doing. i do know he is considering it and it is in the context of this thing growing with the purchase of this insurance company. hank has better relations with the chinese government than he does with the government of new york state. cheryl: is not

attorney general eric schneiderman said he reached the deal with the owners of 23 domino's stores.it follows a similarly victory by mcdonald's employees, bringing the total amount of stolen wages regained by fast food workers to nearly $1 million in two weeks. the fast food for campaigns has more than 80% of new york cities fast food workers report wage that. connecticut governor malloy has signed a bill raising the minimum wage to $10.10 an hour starting in 2017. imprisonedmy veteran in an immigration detention facility in tacoma, washington says he has been placed in solitary confinement after calling for work stoppage among prisoners. the northwest attention center is owned by the for-profit geo group. hassall moses said he try to type up a letter: for fellow prisoners to protest the halting work him up the letter is intercepted and he was placed in solitary confinement. moses spoke in an audio recording made by an attorney. basically, this facility is run by detainees. working, we stopped could negotiate by the pay raise because right now everyone is working for one dollar. we

i don't want to give barack obama or eric schneiderman, any ideas about regulating pay. now they start with the wall street guys and go to the mutual fund managers. you could be smoking pot. you could have needles sticking out of your arm but no rationale person in the world can sit there and tell you that bill gross is worth $200 million this year after the crappy year he has had. it makes no sense. melissa: fund he managed at the worst annual performance since 1994. >> this is absurd. think about it this way, if lebron james is nearing the end of his career and he is suck guess what, they don't pay him as much. melissa: jonathan? >> he will with you know, i can't doubt that he had a bad year last year. he lost less than 2%, charlie. trailed a lot of bond market averages but talking about a man who won ever considerable accolade in the investment universe. >> [snoring sound] you. >> might make the snoring noise and think he is not worth it but -- every accolade investment fund business. >> and one from you too. i'm just saying that and dollar 50 doesn't get you on the s

. >> new york state attorney general eric schneiderman very critical this morning of high frequency trading in a speech in new york. he said some of what's going on in the high frequency trading world is essentially insider trading 2.0. take a listen to the attorney general this morning. >> building tremendously lucrative advantages into markets for high frequency traders at the expense of the investing public is wrong. it's time that we focus on structural reforms and restoring the mind-set of winning based on price, winning based on smarts, rather than winning based on speed. >> now, he didn't single out this firm by name but he did refer to a stat in the ipo filing last week. what's attracting schneiderman's attention is this sentence in their filing, as a result our real-time risk management technology, we have had only one losing trading day during a total of 1,238 trading days. that's from january of 2009 to december of 2013. that is a long time for a winning streak. schneiderman raising some kweps about that. virtu did not respond to calls for a comment about this. buy a high frequen

the sec is a civil regulatory agency and eric schneiderman is the top law enforcement in new york. he has a different view -- deal with two different regulators thing to structure the market this way or that way. >> does in the market prevail? >> traditionally, the sec is the principal market regulator. we have allowed anti-fraud legislation by the new york attorney general. this is a much bigger expansion of jurisdiction. >> you look at the volume and the participation rate among average americans, and it is nothing like it was. i think it is hinged by all of this concern. great job breaking the news. john coffee, always a pleasure. >> this is a great story here. i'm glad you broke it. >> indeed. the tensions continue to rise between ukraine and russia. we will have more on this tends situation-- tense when we return. plus, we will discuss -- world's largest trade deal. see you back here. ♪ >> the crisis in putin ukraine is escalating. vladimir officially moved to and russia isea and bolstering its military presence along ukraine's border -- it's new order. in a speech he defended

high frequency trading on today's show now on tuesday new york state's top cop attorney general eric schneiderman dubbed the practice insider trading two point zero we're taking a look at why coming right up and earlier today i sat down with the c.e.o. of overstock dot com now these staunch and big point supporter patrick burns to get his view on the report on the cryptocurrency and just crypto countries in general outside of big fun you won't want to miss my interview with him and finally in today's big deal edward harris and i are talking to act we're covering everything from mohamed el ariens tweeting as a base to the latest in wearable technology it's all coming up and it all starts right now. with. our lead story today insider trading two point zero what is insider trading two point zero you ask well it's a term that the new york state attorney general eric schneiderman coined on tuesday to describe high frequency trading now high frequency trading is a form. of quantitative trading that's characterized by short portfolio holding periods all allocation decisions are made by computerized quan

. >> and it links up with this -- eric schneiderman has all ready started looking into this.o say the least. here's the single best chart. >> this comes to us from a firm that assists foreign companies and their strategic choices in china. it shows manufacturing output as a share of the world total for the u.s., and white, japan and yellow, and germany, blue. the u.s. peaked at about 26% in the late 1990's. japan and germany have also seen their share drop as well. the reason is because of china. the red line. it has been steadily climbing. >> more than us. >> is sort from 3% in 1990 20% in20% -- to almost 2000. >> bill white is with this, former mayor of houston. it is a whole new wage dynamic with steve roach between the u.s., mexico, and china, isn't it? labor arbitrage has been going on for a long time. we have seen it occur really since the 1950's. u.s. policy. we want other people in other parts of the world to have good jobs that are sustainable. certainly, we've seen a growing middle class in mexico right now . some of the initial benefits you saw in nafta, some manuf

>> which is why her family along with new york attorney general eric schneiderman are calling for a kill switch allowing users to make them worthless on the black market. >> it's economically a winner for several levels of criminal activity. >> reporter: according to scheinderman, most wireless providers have refused because it would cut into the billions phone companies make selling anti-theft insurance and replacement devices. >> the corporate greed that is driving this problem has to come to an end. >> reporter: last month amy klobuchar introduced legislation that would require companies to install a kill switch on each new device. >> we literally have to make these phones as sophisticated as the people who are stealing them. >> reporter: the wireless association said its member companies moved as quickly as possible to work with the fcc, law enforcement and other policy makers to develop the proactive, multifaceted approach to remove the aftermarket for stolen phones. the association also says wireless companies are concerned that kill switches could be hacked and used to disable the

thank you for joining us today, attorney general eric schneiderman. news this morning including the new movement rooted in civil rights. we will talk to two of its leaders to see what it might be able to accomplish. >>> plus, more on the search for the missing malaysian airlines flight 370. take a look at what happened this morning at the airport in kuala lumpur. hundreds of people, more than 300 of them, riding bicycles in a show of support for the passengers and the crew onboard flight 370. as well as for the families who have been waiting for answers for more than two weeks now, the ride for prayer. participants decorated their bikes with small malaysian flags and stickers that said pray for 370. all of this happening this morning as search planes circled back to the same remote stretch of the south indian ocean to keep searching for new clues in the disappearance of that flight. malaysia announced only hours ago that french satellites have discovered images of potential wre wreckage from the plane. [ sniffles, coughs ] shhhh! i have a cold with th

. >>> eric schneiderman is calling for tougher regulations. >> this is interesting. >> among them, beingervers within the trading venues themselves, providing ultrafast connections and other moves to get information to traders milliseconds ahead of the rest of the market. snyderman says markets are catering to rather than curbing -- >> should everybody have the same access? nobody should have the ability to locate their server closer to the exchange? >> this goes to the whole idea of the game being rigged. right? and the idea that one guy has an advantage over the other guy. this is a technological advantage, if you pay more than i do, i somehow get -- it doesn't make sense. >> i did a story on this. i went to a location in new jersey that was close to the nyse servers. the real estate prices had gone up because there was a premium on the real estate that was close to these servers and these hedge funds. all it is is like a box. that's all it is. a little box. >> you have to wire a little bit closer, reduce the traveling of the speed of light. >> these are the things that get people most

trading on this show before and just last month we told you about new york a tourney general eric schneiderman efforts to examine high frequency trading in fact on monday morning schneiderman said lewis said that lewis's new book will help focus attention on this debate now schneiderman's inquiry into high speed trading threatens to disrupt the model that market regulators have permitted for years trading firms pay to place their systems in the very same data exchanges and this is a practice known as co-location and it lets traders shave off milliseconds on transactions now several years ago the founder of trade bought one of the biggest high frequency trading firms said that his firm had nothing and had had not lost and had not had a losing day in four years well perhaps that's because the firm's average holding period for a stock was eleven seconds eleven seconds so how is it possible for one of the largest high frequency trading firms to execute millions and millions of orders over four years without ever having a down day well the answer in short is that what they're doing is not trading i