but lehman executives couldn't ignore the letter, and asked their accountants from ernst and young toew lee. >> valukas: and in those interviews-- we have the notes, which are part of the report-- he says very specifically $50 billion, repo transactions, moving money off the balance sheet at quarter end. so our conclusion was ernst and young certainly knew it as of that time, and did nothing with it. >> kroft: valukas says ernst and young was legally bound to make sure that lehman's audit committee and its board of directors knew about lee's allegations of the unethical and unlawful accounting practices. but they never did. did the audit committee know? >> valukas: no. >> kroft: did the board of directors know? >> valukas: no. >> kroft: did dick fuld know? >> valukas: did dick fuld know? well, he says no. >> kroft: the only place lehman's c.e.o., richard fuld, has publicly answered questions about his firm's bankruptcy has been in front of congress. >> richard fuld: i have absolutely no recollection whatsoever of hearing anything about or seeing documents related to repo 105 transacti

my name is in a talk shop ernst, and i and utility counsel region -- my name is natasha ernst, and i am the utility counsel. i want to flesh out some more evidence of planning department looks out, because it is their decision that discusses the capabilities standard. gooi did not realize the dpw was not going to be there. we ask what the other locations where we could locate. this was the location that is the best right here, and as you can see, there is no screening. there is no trees or any other type of solids that would screen it, -- foliage that would screen it, so there are these right on the corners. the planning department was very concerned regarding placing and montana -- placing an antenna because they would affect these window views or placing them on the top of the larger pool because it would affect the deck here, so the low paid and was selected as being the most compatible -- the location was selected as being the most compatible in the neighborhood. this is the coverage map again, and each of these triangles are similar installations. the one we are talking about pr

in fact, a new sdy bierness & young suggests that the president -- by ernst & young suggests that thedent's tax proposal would cost more than 700,000 american jobs. . speaker, what lane will you choose? i urge the house to pass h.r. 8 and prevent a tax hike for all americans. i yield back. the speaker pro tempore: the gentleman from michigan, mr. levin. mr. levin: i yield myself 10 seconds. when you look at mr. herger's district, he's standing up to protect 180 people who have income over $1 million, sacrificing a middle income tax cut for 285,000. i now yield two minutes to the very distinguished chairman, former chairman, and a gentleman from new york, mr. rangel. the speaker pro tempore: the gentleman is recognized for two minutes. mr. rangel: thank you, mr. chairman. i've never been so fortunate in this house to have the republicans state thergument as clearly as they have this afternoon. and i think wally herger said it. it is possible not that we're talking about a tax cut. people are working every day to try to make ends meet. they don't know the wonderful tax cut that they are

my name is in a talk shop ernst, and i and utility counsel region -- my name is natasha ernst, and i am the utility counsel. i want to flesh out some more evidence of planning department looks out, because it is their decision that discusses

there is an agreement -- >> does that mean ernst and young got it so wrong? >> the methodology is flawed. they assumed that none of the differential of 49 billion would be used for deficit reduction. it is a very flawed study, and i think there is strong evidence that extending the bush tax cuts for high-income families will not promote economic growth. we have before the ways and means committee proposals like accelerated depreciation, which republicans and democrats have supported, which would clearly promote economic growth. yet it does not come out of committee and we do not vote on it. why don't we vote this week on extending the accelerated depreciation to 100%? why don't we extend the middle- income tax cuts and that, and have the argument about high- income tax cuts later? the answer is that the republican party is essentially stuck in cement on extending high-income tax cuts. that is what grover norquist says. we cannot get enough flexibility on your side to sit down and do the middle-income tax cuts and argue about high- income afterward. >> i fear

the ernst and young study is otherwise flawed.t does not assume that any of the money that would be received by not extending the high-income tax would be used. that is a $49 billion difference between the two bills in terms of deficit increase. that is the difference between extending the high-income tax cuts and doing that for middle- income families. i want to mention one other fact. in 2011, 93% of the income growth in this country went to the top 1%. so in terms of economic growth as well as equity, in terms of certainty, i want to emphasize this, there is so much talk about certainty. why leave here without extending it? widely here and talk about tax reform? most of the tax-reform proposals are only generalities, including the bill that has been introduced here, and essentially doing what was suggested there, having a reduction of two tax brackets, 25% and 10%, for upper-income families, millionaires, an additional $300,000 in a tax cut. the middle-income families want us to do that. >> i will answer that question since you

ernst & young, a nonpartisan respected accounting firm says that raising taxes that much would be a drag on the economy right new. >>guest: first of all, i don't know what they are talking about. i have not seen the study. moody's evaluated the romney plan and said it would throttle our economy down. so, we can have competeing studies. here is what i know going back to the policies of the last decade. huge unpaid for tax cuts skewed to the wealthy is not going to produce the kind of economy that we need. it is not going to help rebuild the middle class in this country. and it is not going to help us grow the kind of economy that we need for the long run. yes, we have a fundamental difference on this issue. >>chris: we will do a lightning round and you are not very good at it but i will give you another chance. quick questions and quick answers. senate majority leader, harry reid, took to the senate floor this week to say the word is out that mitt romney didn't pay any taxes for 10 years. i figure nobody is doing more research than you guys in chicago. does the obama campaign have any evi

a study conducted by ernst & young concluded that the democrat tax hike could lead to the loss of over 700,000 jobs. that's the choice that democrats made, to raise taxes on families and small businesses and destroy jobs. america is at a crossroads. as this chart illustrates, and the question is, which path will our country take? the democrats' path will cause 700,000 lost jobs. or the republicans' plan that will lead to the creation of one million jobs in the first year? what's even worse is that in their quest to raise taxes on the so-called wealthy, several of my democrat colleagues have made it clear that they're willing to hold low and middle income americans hostage by threatening to let all taxes rise at the schedule -- as scheduled at the end of the year if they don't get their way. now, these massive and imminent tax hikes are part of the fiscal cliff or jobs cliff as i offer refer to it that we face at the end of the year. the nonpartisan congressional budget office says going over the fiscal cliff could cost america two million to three million jobs. this will be a devastati

>> well, and i point back to david axelrod, there is another study done by an accounting firm, ernstoung, well-respected and well-known accounting firm that said if you put all of the obama tax cuts or tax policy -- not tax cuts, actually, into effect, increases to the wealthy and tax cuts for the middle class would be a drag of the economy, a half percent in growth and 700,000 jobs, a loss of 700,000 jobs, in the economy. so, you know, everybody has their study. and, they are -- indicate flaws with both candidates' plans. >> kelly: what about the vice presidential choice for governor mitt romney? was that discussed at all today? >> i did ask david axelrod about that. and, you know, to see what he says, i said what will it say about him. >> and he says it will say whether he wants to double down on the return to policies of the past and, basically you are saying if he chooses someone who agrees with his policies it will show how bad a candidate he is an he said exactly. >> kelly: i'm going to get a front row seat to watch? >> real quickly, in addition to david axelrod, it is a combat

the impact of these new workers will be greater than the demographic explosion in the past century ernst and young expect that in the next five years women's income group grow by five trillion dollars to eighteen trillion dollars globally which will double the g.d.p. growth of india and china together investor advisors say if this is currently the most exciting growth story but to capitalize on it the financial world ruled by a man should start investing in women in training help them build businesses and promote a stronger female presence in executive positions so the message from s. then young is for man to invest more in women before we start cashing in on ourselves but your business r.t. moscow. i definitely go along with that investing in women sounds good some may let's get into the markets and see the hair mosco they already struggling solving taking a little bit of a saying with the biggest flaw for the most of them i said it's not actually as russia's top trading partner china struggles to regain strength and that's being felt here in the us really despite some positive local. r

the impact of these new workers will be greater than the demographic explosion in the past century ernst and young expect that in the next five years women's income will grow by five trillion dollars to eighteen trillion dollars globally which will double the g.d.p. growth of india and china together investment advisors say this is currently the most exciting growth story but to capitalize on it the financial world ruled by men should start investing in women in training help them build businesses and promote a stronger female presence in executive positions so the message from as the youngest for a man to invest more in women before we start cashing in on ourselves but you have business r.t. moscow. i like that message very much indeed let's get to the markets and see what's happening close to home here moscow got both forces they are in trouble this monday afternoon as you can see with the biggest fall this month although my stays on that straight is russia's top trading partner china struggles to regain its strength meanwhile domestically russia's economy grew four point four percent

these new workers will be greater than that demographic explosion in the past century ernst and young expect that in the next five years women's income will grow by five trillion dollars to eighteen trillion dollars globally which will double the do to pay growth of india and china together investment advisor say this is currently the most exciting growth story but to capitalize on it the financial world ruled by man so start investing in women in training help them build businesses and promote a stronger female presence in executive positions so the message from as the youngest from them to invest more in women before we start cashing in on ourselves but yet a bit of both of those those are to moscow and moscow's just slipped into the red on the back of all the emerging markets all news china's economy is faltering spain and italy e.u. top performers monday as brussels malls buying more forms of there are a bunch of bombs that sent the euro higher after a turbulent morning in the greenback snow sliding to post you wrote and india wants to join russia's voice six crumble delis in talk

praising all this talk muppets but then back to the story that maybe overlooking is the ladies themselves ernst and young says women represent the biggest developing market globally and could save the ailing world economy this emerging market is not part of the brics mammas will come from there at the moment more than a quarter of women in developing countries a cop pulled from the economy they count almost a billion and once they get involved the practice of these new workers will be greater. then that demographic explosion in the past century parents and younger expect that in the next five years women will grow by five trillion dollars to eighteen trillion dollars globally which will double the do to be growth of india and china together investor advisors say this is currently the most exciting growth story but to capitalize on it the financial world ruled by man so start investing in women in training help them build businesses and promote a stronger female presence in executive positions so the message from as the youngest the man to invest more in women before we start cashing in on ourse

ernst & young has come out and made it clear if you do this, 750,000 jobs are going to be destroyed. at a time when the american people are asking, where are the jobs and so, listen, it's time to put the rhetoric aside. it's time to put the politics aside. i another we are in election year but my goodness, raising taxes at this point in the economy is a very big mistake. extending all the current tax rate, which our bill does, for one year so we have time to revise our tax code, lower rates, fairer rates for all americans, which is what needs to happen if we're truly going to make america more competitive, put more americans back to work and bring some of those jobs that have been shipped overseas back home, we all know we need to revise our tax code and reform it from top to bottom but that's not going to happen overnight. so extending all of these rates for one year will provide certainty. certainty for who? certainty for small business owners. people who can make decisions about what they want to invest in terms of new plants, new equipment, whether they want to hire new employees

was in violation of generally accepted accounting principles its order thing for him i believe was ernst and young the big four accounting firm and they said that it wasn't compliance but it wasn't till accounting professors at cats from penn state university and anthony kept the nation villanova university read the documents the public documents they don't have access to the books and records their own have access to management they don't have access to the company premises they just read the company's books and records and they find their groupon was overstating its revenues violating accounting rules on revenues and they bring their information to the f.c.c. the f.c.c. goes ok. groupon go fix it this is a big four accounting from what's going on here now going back to my day in my day i had to fool what it is i had to lie to what it is in order to defraud my investors today you don't have to like what it is you don't have to pull them in many ways they're complicit with management they were in bed with management they had this incestuous relationship with management that makes crime e

. >> economic growth is worse now, but now campaigning for a tax hike on small businesses that ernst & young says will cost 700,000 jobs. >> reporter: out campaigning to end tax cuts for the rich and take a shot at his opponent? >> in order to afford just one $250,000 tax cut for something like mr. romney, 125 families like yours would have to pay another $2,000 in taxes each and every year. >> it would be the same theme tomorrow in virginia and in florida where the president is also running six points ahead. >> reporter: after the election and it's sure there won't be anything definitive, congress has just seven weeks to make a deal to prevent everybody's taxes from going up on the first day of 2013 they include a controversy atman dade starting today, businesses must make sure their company's health plans provide free contraception services for female employees. insurers are also required to provide welfare checkups, plus screenings to counseling for domestic violence. like the contraception services, the wellness checks and screenings must be free of charge. >>> coming up, a visit

ernst & young said this will cost our economy 700,000 jobs. fact. small businesses now say for the first time in almost four years the greatest threat is not lack of sales. it's taxes. and that's why house republicans voted yesterday to stop the tax increases. stop the tax increases. today we take the next step. and in the end it is to create a process for a fairer, flatter, simpler tax code, one that will ensure that the family budget doesn't go broke paying for the federal budget. one that ensures that the success of working families depends on how hard they work in their hometowns and not the size of their tax loopholes in washington, d.c. now, my friends from the other side of the aisle, mr. speaker, they have great theories that we're going to tax our way into economic growth. if only we tax small businesses more that somehow they'll create more jobs. beatings will continue into morale improves is their theory. well, we have history. we have history. go to the coolidge administration, the kennedy administration, the reagan administration, the b

there was an ernst & young study but the obama campaign has picture this up and said look, this is one more way that mitt romney is out in out to help the average american. they released their own report detailing what they see as problems with romney's tax plan. that, i think is far more troubling and will be more far more of a substantive attack in this campaign as we continue to move forward with this kind of sluggish economy recovery as the backdrop to the last few months of the presidential race. >> eliot: it seems to me the obama campaign is moving on two different fronts. one is the background noise about the tax returns which plays to the image of mitt romney elite out of touch. the other is the purely substantive argument. you can say a lot of things about brookings but they're a solid, analytical group. they're not going to swing analysis one way or another. they're a down the middle type of group. i think that's the deeper problem and that may be why mitt romney is behind in pennsylvania ohio, florida is neck and neck. he is not gaining traction in those swing states. on the

a study conducted by ernst & young concluded that the democrat tax hike could lead to the loss of over 700,000 jobs. that's the choice that democrats made, to raise taxes on families and small businesses and destroy jobs. america is at a crossroads. as this chart illustrates and the question is, which path will our country take? the democrats' path will cause 700,000 lost jobs. or the republicans' plan that will lead to the creation of one million jobs in the first year? what's even worse is that in their quest to raise taxes on the so-called wealthy, several of my democrat colleagues have made it clear that they're willing to hold low and middle income americans hostage by threatening to let all taxes rise at the schedule -- as scheduled at the end of the year if they don't get their way. now, these massive and imminent tax hikes are part of the fiscal cliff or jobs cliff as i offer refer to it that we face at the end of the year. the nonpartisan congressional budget office says going over the fiscal cliff could cost america two million to three million jobs. this will be a devastatin

a study conducted by ernst & young concluded that the democrat tax hike could lead to the loss of over 700,000 jobs. that's the choice that democrats made, to raise taxes on families and small businesses and destroy jobs. america is at a crossroads. as this chart illustrates, and the question is, which path will our country take? the democrats' path will cause 700,000 lost jobs. or the republicans' plan that will lead to the creation of one million jobs in the first year? what's even worse is that in their quest to raise taxes on the so-called wealthy, several of my democrat colleagues have made it clear that they're willing to hold low and middle income americans hostage by threatening to let all taxes rise at the schedule -- as scheduled at the end of the year if they don't get their way. now, these massive and imminent tax hikes are part of the fiscal cliff or jobs cliff as i offer refer to it that we face at the end of the year. the nonpartisan congressional budget office says going over the fiscal cliff could cost america two million to three million jobs. this will be a devastati

president obama's plan would raise taxes on the rich, which a study by ernst & young says would eliminate 700,000 jobs. not grow the economy. bill: you heard from directly from the president and romney team reacted. that romneyhood line will get a lot of reaction. what did you make of the romney team's response on that? >> he wants to refocus the attention on president obama and the economic record and the economy as it stands now. but he is reacting to the president. he is coming second to the president. in a political campaign that is not necessarily where you want to be. bill: stuart, see you at 9:20 fbn and neil at 4:00. patti ann. patti ann: that fund-raising stork in connecticut is rubbing a lot of locals in the wrong way. the president used a nearby beach as a landing pad for his helicopter. that forced the closure of not one but two beaches. one of them, sherwood island state park, is one of connecticut's busiest especially on a hot summer day. the state of connecticut says 1,000 people visit the park on average weekday. that generates 2500 fees in lost parking fees. that is reven

we need a pathway to job creation and obama's tax hikes, ernst & young came out with a latest report, his tax hike would cost 700,000 jobs or more. so what we need is to extend the bush tax cuts for an extend those tax cuts for everyone. but, the house having that vote yesterday, jon, it is all been symbolic. nothing will get done until after election day and the american people are suffering but obama's solutions are not the solutions that america needs. jon: you've got the -- >> i don't have confidence what romney will do quite frankly. with this particular resolution passed army privates will pay more than $270 in tax hikes. marine corps rals going to pay more than 1100 in tax hikes. >> the resolution that was passed, with the resolution that was passed they have $1,000 per tax credit. they want to keep the capital gains tax cut just the same. they want to actually impact the estate tax. the resolution that was passed yesterday would add to the economy. would stimulate the economy. what obama and the democrats proposed is going to have a add more to the fiscal cliff that earn about

>> ernst & young came out with a study 10 days ago, the big accounting firm and they said a couple things. they said if you move forward with the tax plan and the president and leading democrats are advocating, what the house debated yesterday, it would cost the nation 700,000 jobs. now that doesn't make any sense whatsoever. in this environment, and in your previous segment where you're looking at a slow economy and one of the toughest economy that we've seen in a generation. so, our argument is, don't do anything that has a stifling effect or a restraining influence on economic growth. it is not the smart move. so let's do one thing and that is to keep the tax rates certain for another year but not just for another year for the sake of doing another year alone. as a bridge to reforming the tax system and getting to where i think most americans are, bill, that the recognition the status quo is completely unsatisfactory. bill: let me get to tax reform, comprehensive stacks reform in a moment. two years ago 139 democrats in the house voted with you on this. what's changed in 24 months? >>

their vote to increase taxes on job creators came on the heel of an ernst & young study detailing its ramifications. this study concluded that these proposed tax hikes on top of the 3.8% tax increase on dividends, interest and capital gains that was added to pay for the health care reform bill, would reduce our economic output by 1.3%. the ernst & young study also found that real after-tax wages would fall by 1.8% as a result of president obama's policies. even in the face of this information, my colleagues on the other side seem all too willing to gamble with a chance that our stalling economy can withstand such a hit. by doing this they're playing russian roulette with our economy. to my colleagues, i ask: how certain are you that tax increases on kwrob -- job creators won't be damaging the economy? if you have any doubt, i suggest don't pull the trigger. i'd like to shift gears a little bit to address the record of the 2001 and 2003 tax relief. just as a perfect storm of good economic conditions blew at the back of the clinton administration, a perfect storm of bad economic conditi

i would also like consent to introduce a report be ernst & young about tax rates on high income tax pairs in 2013. can i enter that for the record? >> ok. i am going to quote from it in a second. but first of all, we ask ourselves why we're here. if we're honest with ourselves, we can look back over decades of fiscal mismanagement by both parties. both republican and democrat and maybe one or two independents. if they were out there at the type. but we just made some poor fiscal choices year after year after year. and pointing fingers that the time is not going to resolve sequestration. you mentioned over and over, both of you on this panel that we have five months to avert sequestration. and we need to be working together. we don't need to be engaging in partisanship or playing the blame game or whether you voted for the bill or didn't vote for the bill. it's coming at us quick, like a fast-moving train, and if sequestration is allowed to take effect, we know it's irresponsible and the damage it will do will be irreversible. but you did mention the but you did mention the president's pla

and last but not least there's a study by ernst young prepared by you've seen on the screen that claimsinesses get caught up in this 1% or 2% so be careful, you might be crushing 700,000 jobs. back to you. >> good stuff. and i like the audience participation as well, rick. rick santelli in chicago. check back with you in a bit. want to get back to visa, the payment processing company, the official sponsor for the london games, has the only card that's accepted in olympic park. trust me that's absolutely true. visa's had a stellar year. there's a look at the chart trading near multiyear highs. joe saunders is the chairman and ceo of visa, joins us live from london. joe, good morning, or good afternoon to you. good to have you. i want to get to the olympics. i want to talk about the global consumer. but the news of the day, of course, as you may have heard, starbucks and square partnering up. we're going to talk to howard schultz and jack dorsey in a moment. to what degree does this change the landscape for visa? do you see it as a positive or a negative? >> i definitely see it as a posit

in addition to the extra tax burden, a recent study from ernst & young said we could lose as many as 710,000 jobs and wages could decrease by almost 2%. now, i'm no rocket scientist but i'm pretty sure that the people of america and south mississippi don't need a rocket scientist to tell them the tax hike are the last things we need right now. that's why the house stepped forward yesterday and passed legislation to stop the tax hike and that's why we're committed to working on tax reform to make our tax code simpler, fairer, flatter for all americans. i yield back. the speaker pro tempore: for what purpose does the gentleman from georgia seek recognition? >> to address the house for one minute and to revise and extend. the speaker pro tempore: without objection, the gentleman is recognized for one minute. mr. barrow: mr. speaker, i rise to pay my respects to a tireless crusader in the quest to protect america's children from violence and exploitation. ernie allen, recently retired as the president and chief executive office of the national center of missing and exploited children whe

we saw that ernst and young put out that the plan the president will supports will cost the economy 700,000the president's proposal says that 50% of the people that the tax hike applies to are folks that get at least 25% of their income from small businesses which means you're taxing the very people we want to go out and invest to create jobs. so it just doesn't make sense. out's counterintuitive to me that anybody would say that. >> all right. so i'm not optimistic about anything between now and november obviously. but now i have a vision of the new senate. i don't know what it will be necessarily. i see patty murray and ted cruise, the senate's going to turn into the house the way things are going. that doesn't mean the election will solve anything, eric. we're so far apart. how is this going to work out? you saw what she wants to do. the whole fiscal cliff. the country needs to go down in flames to stick it to the republicans. >> i'll tell you one thing. the house has acted. we have gone about every week putting solutions on the table to pass the bills. it may help if the senate could st

we need to get growth going again and taxes have a big part to play in that economic growth and ernstthat the president's call for tax increases will cost 700,000 jobs, okay? it will decrease the ability for us to grow. so the baseline and the assumptions in the bowles-simpson commission called for a nearly $2 trillion tax increase over the next ten years. that is not something that will lend itself to economic growth. the second piece, wolf, is the fact that the structure of the entitlement programs and healthcare was left in place and we know that that has been ineffective at lowering costs to allow more people access to coverage. >> your good friend is the vice presidential nominee and mitt romney is about to do the biggest speech of his political career. you'll be here? >> yes. >> thanks very much for coming in. >> eric cantor of virginia. that's a key battleground state. >> do you think you've got it? >> we're going to win. >> northern virginia could be a problem. >> we'll win. >> it's one of the areas hardest hit by isaac's wrath. plaquemines parish, where hundreds had to be res