anything different with this fdic action?at of a surprise, given all the investigation that has been happening over the last couple years in the u.s. and around the world. the libor scandal seems to be growing. what we have here is a new front, if you will, in this battle with the banks over libor. the allegations, uncovered in 2008, are that the banks did not include accurate real benchmark numbers when they put the london interbank offered rate together. what the fdic is accusing here is that these particular banks helped create the libor, the u.s. dollar libor benchmark rate. they alleged that it was manipulated by these banks, and as a result that 38 fdic-insured 2007 that failed from by thethey were all hurt actions of the manipulated libor rate. as the result, the fdic as the receiver for the failed banks is going after the losses and then some. let me read from the complaint in the document. collusion,ence of the defendants could not have achieved the super-competitive -- supracompetitive prices they were able to charg

he was strongly supported, he's currently vice chairman of the fdic. known for his strong support for reform, strong opposition to too big to fail. having somebody like that, a go-getter who the public trusts as a reformer would add diversity and also bolster public confidence system of i hope they look at that last remaining vacancy as an opportunity to put somebody reform minded and associated with protecting the public. >> you mentioned j.p. morgan. i wanted to ask you, you had written a column for fortune in which you said you thought there was a lot of piling on going on. jamie diamond was being unfairly blamed for every sin, all of a sudden this company, that was the teflon bank, you know, everything was sticking to it now. every kind of possible allegation was being leveled at j.p. morgan. i would love to hear more about that, do you think it was sort of, the regulators sensed weakness and went after them or were they a big bank with a lot of operations that spawned problems? >> i think they made plenty of mistakes. the actions were more than ju

the fdic took those banks over and is trying to get this money back by suing these banks. a lot of these banks -- very big names here. more than a dozen banks that includes bank of america, thesehe bank -- some of banks have had to deal with investigations already. here,s complaint, it says "in the absence of inclusion, the panel bank defended the banks involved here. the banks that helped set libor could not have set the rates." suggesting the manipulation of this rate led to the closure of these banks here in the u.s. thatis significant here is there have been all these investigations and we have not heard that much from the fdic on this front. this lawsuit comes as a surprise to some. now the banks will have to take on the federal government in court. punitiveasking for -- libor rate affects everything. this is a global benchmark. if you think it doesn't affect you, you are mistaken. >> it sets everything from a mortgage rate to a car loan rate. that is why this is such a big deal when it was first uncovered back in 2008. why this has been a spiraling investigation, not

the fdic acts as a receiver for 38 failed institution. fraudulentd [indiscernible] start an ipoet to is in his april. china's largest e-commerce company is opting for a u.s. listing as it struggles to approve a proposed governance structure. those of the top headlines. back to you. >> thank you. mentioned, the fast food sandwich chain quiznos filed for bankruptcy. this follows sarrow. identify half a billion dollars in their chapter 11 documents. to tell us more is its cofounder. he joins us from denver with the first quiznos opened in 1981. thank you for being with us. take us back to the time when the first restaurant opened. what was in your mind when you started it? in 1981, thearted, story still there and operating, i came in here from new york. i was used eating scene which is baked in the oven. i came out to denver to go to eating summaryp and sandwiches on hotdog buns and thought there was a better way to do it. we created our first in which on 13th in grant. bakersit through a pizza pride evan. the lines got so long when we opene

question -- the fdic this last week announced that it is going to sue the 16th largest banks for the libor. i think that is great. you are not the chairwoman now, but i am very happy to see that. does this indicate that the federal government is finally able to defend its interests much at -- with as aggressiveness that jpmorgan and wall street has to defend their interests? a person put that out a warning that the derivatives bubble is growing, thanks only have 4% of equity to the ratio of their total assets, and even if a decline in their said theurs, he banking system will not be supported because it will not be one bank you can resolve. he was on a panel with you about six months ago in congress, and michael said, would you reinstate? yes, that is what i am trying to tell you. the question is, how much is it taking this long to get it through? why come if he said the elizabeth warren-mccain tell not going to take place, because we cannot wait until the next crisis, it is going to be too late, and he said you are going to be bum rushed into another bailout if you do not put this i

i urge you as quickly as possible with occ and fdic to move as quickly as possible. thank you for your response to me at the real economy in your confirmation hearing. last friday as the board released transcripts of the fmoc meetings the reading buzz interesting for those of us that find this stuff interesting. and they are maximizing employment. but according to "the new york time times", that's september the crucial, probably most important of those in september meeting fmoc members mentioned, according to the minutes inflation, # 129 times. and recession five times. you speak forcefully and have about the threats to the broader economy. this implies that the institution overlooked what was happening on main street during this critical time. now that your chair convinced us that we won't see meetings like that, where the emphasis the is so much more on inflation than full employment. because the focus will be on ordinary american who is bear the brunt of this economy. >> well, i think as you know, the feds take the mandate very seriously. and believe we should be

the fdic by contrast is backstop.t's intricate backstop by the us government if the fdic failed to note that anybody's mind that he was government would step in. that situation does not exist in your because we don't have a european government. so the question of the backstop was important. when i spoke to a very senior leader of the european parliament, he told me that this is really the only issue. the fact that the backstop, angela merkel told him don't know what you would accept a backstop because that's way too common funding, about the work of the roundabout way to europe which is what the germans have projected. the question that they have been asking themselves in the parliament should we block it? should we boycott this legislation because of this funding mechanism? the ultimate reason they ended up not boycotting this legislation this money was political. they have an election to the european parliament in to two months time. if they boycotted it now, the various parties boycotted a particular social us woul

>> we made sure our money market account are fdic insured.e sleep about it, but that extra insurance makes me feel better, makes my clients feel better. you can buy a treasury money market account. earn a little bit less, who cares. you are not earning anything otherwise. if you are not worried about this, one of those that will happen in a million years event, don't worry about it. gerri: people probably aren't used to hearing about this but you heard his advice. if you're worried about it, put yourself in a treasury backed-- >> money market account or fdic money market account. we are not talking about bank money market accounts. totally different. these are brokerage accounts, mutual funds, vanguard. fidelity. we all have money there. i do. gerri: and you think it is safe. maybe not. another lawsuit involving the target data breach with one of the retailers security vendors. they are suing target and security vendor trust wave. the banks are kidding trust wave failing to detect vulnerabilities and target network failing to protect the data

former fdic chairman sheila bair, she says yes. david: interesting argument. there is one key indicator in the jobs report that a lot of investors are kind of passing over, kind of missing and it is telling us the rate of job losses could be higher than you think. guess who spotted that? former chairman of the council of economic advisors, ed lazear and he is here to break it down for us. cheryl: tell us what you think. did the markets overreact today when janet yellen said rates would go up six months after the end of tapering. tweet us, at fbnt it b. your answers -- @fbnatb. your answers coming up later. ♪ ♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. with the m

citi has received a subpeona from the fdic. a subpeona has also been issued to p-n-c financial services group. the wall street journal reports that the justice department is seeking information about the bank's relationship with a payment process service. regulators say customers complain that they were fraudulently charged for certain services. the company is cooperating with authorities. despite yesterday's sell off in the stock market. there is one stock that just keep plugging away. the stock is plug power. it trades under ticker p-l-u-g and it surged 24% monday. the company makes fuel-cells to power forklifts and other warehouse equipment. the stock has been on a steady rise during the past several sessions -- but is picking up investors---since winning a contract with walmart last week. analyst believe more deals may be on the way. warren buffett is opening up about controversial topics.as crisis escalates in ukraine, buffett tells cnbc that he would use this as a buying opportunity for stocks. he also said he would "love

regulate joshor, the fdic, have taken into receivership since 2008. banks affected, they say washington mutual as well as mac bank. among the defendants, bank of america, citigroup, deutsche bank, jpmorgan and royal bank of scotland. back to you. >> mary thompson, thanks very much. those stocks down a half to 2% but they haven't dropped more on the news. we have to wait and see. the news just breaking. >>> let's go to talking numbers as the snazzy graphics show. green mountain, the subject today. the shares up 7.5% today after revising its licensing deal with starbucks. green mountain, up about 50% this year. is it a buy or a sell if you made profit? let's talk numbers. pleased to welcome john cosar, and steve cortez. john, i will start with you on the charts because when a stock has gone up 50% this quickly, i thi think is there anything there that supports it further? >> i think so. on a very near term kind of base circumstances sis, we are monthly oversold and we are really negotiating that 116 area which was the highs from 2011. we will probably h

our next googled speaker, sheila bair, the 19th chair of the fdic.search for hery also search for timothy geithner and henry paulson. have you noticed that, sheila? interesting. here to talk about that, a real story there, and much of the story was written by sheila in a terrific book about the global called "bull by the horns." without further ado, these , and in aeila bair conversation with her, breast solomon, from open -- deborah solomon, of "the wall street journal." >> thank you for coming, and i bair.germachairman i was reviewing your conference -- your comments last year, and it struck me at that point you said a lot of it dodd frank financial regulatory reform had yet to be completed, that we were not at the endpoint yet. what jumped out at me was many of the things you ticked off at somepoint, leverage ratio, of the things we wanted to put in place to prevent the banks from collapse still had not been were still in the discussion stages. where are we now nearly six years post-financial crisis? how far have we come? but it isetter, taking a

they're more than a dozen banks being sued by the fdic. due to a complaint fouled in manhattan. this is a continuing investigation into libor raking. ebs had to play one point $5 billion in fines for trying to rig the libor rate in london. now we have bank of america and credit squeeze also being accused. we will be right back. ♪ >> welcome back. buying an electric car may not help the environment as much as you think. he mining of a mineral that powers previous and -- prius and tesla cars is putting air in china. >> graphite is mined. added into theng air. in china you have polluted rain. this is the stuff that goes into our cell phones. it goes into our laptops. it goes into our electric cars. on the miningck of this. what does it mean for the makers of electric cars and companies that want to bring clean tech? one of the great innovations of tesla was i want to take a laptop battery. lots of them and use them to power a car. >> absolutely. what we are learning here is their is a bunch of interdependencies associated with the supply chai

consumers should not be concerned their accounts are fdic insured.ou get hacked you won't lose any money. from microsoft to the banks operating the atm's. >> starting next month you must be extra gig lent. lori. >>> drinking beer in class you will never believe who gave it to them. the selfy disaster like you have never seen before, it is worse than that one. who the heck is that. >> who is that person? >> brian, what's coming up on your show? >> i was told by someone who turned against me in the control room, would you take a selfie of yourself. it was going to be used for the next nine months as if my ego was out of control. it is between 6 and 9:00 a.m. eastern time. the pilot tracked the missing malaysian jet why didn't you tell us? because they didn't ask. listen to this story. she had a pink ribbon in her window for years now a breast cancer survivor being forced to take it down by the homeowner's association. we have the bartending story guinness book of world records. wolfgang puck is here. he's going to cook something really important. it is

easy for me to say, co-sponsored by the san francisco fed and the fdic before 10:00 a.m.he march pm ireport at 10:00. one company to note vod, egg producer cowman foods. >>> some of the other stories we are following, a new report from investigators probing the gm recall that we are there, they canceled both without taking any action. the subcommittee is holding a hearing on tuesday saying that mary brower will testify. the memo says gm engineers met in 2005 following the report that ignition switches were moving out of his position but the advice against judges is it would take too long. >>> president obama's embattled health care law hits a milestone today as open enrollment for the first year of college is, sign-ups are being done by young er members. >>> and the morning star says pemco is set to end the first quarter trading with 87% of its peers. the fund, which has around 236,000 billion in assets has to be up. investors pulled 5.1 billion from t from the fund in january. >>> the author of the "big shot" michael lewis says he'll help to talk about it. stay tuned. >>

position of 10% as you indicated but there is a government-backed reinsurance program, similar to the fdic for deposit insurance protection. and that will preserve the 30-year mortgage in the united states markets. gerri: what are going to be the new requirements for homebuyers and what do i say to critics who say there is not enough protection of programs that would help lower income folks get houses? >> we do have programs in place in our legislation that would help to protect for low-income and underserved markets. and as a result of that, i think that those critics are just not correct. there are some who would like to go back to the days of the past when we had the kind of housing goals and mandates put on the private sector that literally drove fannie and freddie to help push this market into the toxic assets that generated the crisis and it's correct that we are avoiding that. we're going back to system of strong underwriting, solid mortgages and protect put into place but we are providing a support base for underserved markets and for low income. gerri: you know, people who watch t

with some businesses and households unable to get credit on reasonable terms, the insolvency of the fdic'snk insurance fund and the failure or near failure of several large financial institutions which squarely presented the problem of too big to fail. i was deeply involved in addressing these crises and in the major legislation that followed including particularly the federal deposit insurance improvement act. i also led the administration's efforts to address a very troubling episode involving market manipulation and submission of false bids in treasury auctions by employees of the investment firm solomon brothers. that scandal resulted in the government securities reform act of 1992 as well as extensive revisions to the treasury's auctions rules. today our economy continues to recover from the effects of the global financial crisis, unevenly and at a frustratingly slow pace. the task for monetary policy will be to provide continued support as long as necessary and return policy to a normal stance over time without sparking inflation or financial instability. this will require a careful

and, basically, the banks are regulated by the fed and the fdic.nd they are required after the september 11th attacks to know their customers. and so they do a lot of work, checking their customers. and that's all according to federal law. and once a bank discovers that a customer is actually a marijuana business, then the bank has to notify that customer that they can no longer be their bank. and so the marijuana stores, unfortunately, when they bring in their cash to deposit it in a bank, it smells like marijuana. it smells like pot. >> right. >> so the banks say, i'm sorry. we cannot deposit this money for you, because it violates federal law and we could use our federal bank charter if we deposit this money. so the marijuana stores are spraying their cash with perfume. they're spraying it with air freshener to try to get the marijuana smell off but that's not really working. >> let me ask you this. do you think because of the cash thing that here we have the first january revenue estimates being brought in, do you think that's actually low and

they can lose their fdic insurance and also banned from banking for the rest of their lives. >> sure.seemingly paralysis. and that makes me think in my tiny way, well, doesn't that give rise to an underground system where loan sharks start fueling this industry. or a strange underground banking system whereby there is no regulation and none of us knows what's going on. >> first of all, this was inevitable. when you had a straightforward discrepancy between what the federal law said and what the states were now introducing. so it was inevitable that legal entities, the banking system, was going to have difficulty accepting this money and putting into the system. now, to your point, are you going to basically end up with loan sharks, back room -- >> an underground system. >> possibly. but unlikely. because these legal marijuana establishments will not want to bank with those people. >> well, and i think -- i agree with that. and i think what's going to happen, you're going to see banks getting involved at the community level, perhaps the small banks that need the business. >> going to t

let's let bruce and the others set up these bond garntors before we hit the fdic type reassurance funde got to roll the plate in a new system but in a system right now where there's only private side upside and downside is absorbed by the public is, you know, i don't think passes the smell test. i would also say for those who say, look, they made their money back. i was in the venture capital business a lot longer than an elected official. if i put the money to work in the bottom of the crisis, as an investor i would want more than a 1-1 return. what beyond that will be obviously bruce and the others will have a case in front of the courts. that ought to be litigated. they'll have their day in court. it should not slow the reform of a current policy that everybody across the industry knows and believes is unsustainable. >> look, i know and i hear from these shareholders who say, you know, they're willing to provide the new capital to a private market solution if they're allowed to do so. i've got to run, senator. >> scott, that is what our bill does. i remember these guys ought to read

maybe we will allow the nationsbank to come and from another state and it might be worth doing and the fdic says it might make sense to us as well because that could reduce our costs of having this or that building. and in the 20s and 30s ago got pushed back by spiegel. the 1980s and 1990s, it did work in the part of the story was demographics. there weren't as many people who are part of that agrarian coalition. part of this was the atms and supreme court decision. and i think that we could go into a lot of other elements of well. for one very important element also was the u.s. banks at this point internationally, the u.s. banks are losing the market share in the 80s not just outside the united states but even within the united states. and we are starting to see major entry. but in the early '80s japanese banks, german banks, british banks, they are entering the u.s. and it's starting to look like that we are really going to become a big player in the global drama of this. allen greenspan articulate this problem and so all of these pieces are like coming together pushing us to a different

there isn't an fdic or even a bank they can go complaint to. >> and for a lot of critics of bitcoin they are pointing to this as saying see, we told you so. you put all of this money into a virtual currency and now it's gone away you know, mt. gox filed for bankruptcy. they did say they have some assets but they also have a lot of debt so, right now it's looking like customers of mt. gox feel, you know, we're using mt. gox as their bitcoin bank have lost their savings which is really sad for a lot of people who had a lot of money there. >> so the japanese finance minister was one of those critics. he wasn't shy about his pessimism or skepticism for it how are other countries around the world and possibly their central banks positioning themselves to not just bitcoin but other cryptocurrencies. >> there u.s. regulators and lawmakers are being pretty progressive around bitcoin. and they are pointing to things like mt. gox saying we need regulation. we need some kind of oversite of different systems involved in bitcoin so i think this will give them more fodder for calling for that kind of

somebody runs the bank, the fdic, it is a haven for criminals. it should be outlawed and band.tuart: when you were cooking the books in that whole world -- >> i did money-laundering as a teenager. stuart: would you have used bitcoin? >> of course because it is easier than money to launder. carries more anonymity. you can hide those forces of the money. stuart: a lot of people saying this is wonderful. great thing that there is no central authority, not subject to politics or a central bank, this is a wonderful thing. not a scam item, a great thing. >> that is why i won't tell you if i go back to crime and use this thing. stuart: when you are not going to do that. that was interesting insight. thank you so much. president obama tried to quote aretha franklin, makes for some embarrassing spelling mistake. i bet you won't hear about it from mainstream media. we will show it to you next. in the new new york, we don't back down. we only know one direction: up so we're up early. up late. thinking up game-changing ideas, like this: dozens of tax free zones across new york state. move

another government entity, the federal mortgage insurance corporation, that would be mimicked after the fdiclvement is not going away under this plan. it is just shifting into a new agency, which will have new risks and new challenges. >> what can they actually execute that? if they were to regulate and reform the existing gst's kumbaya could be a windfall for taxpayers, americans, -- the existing gse's, it could be a windfall for taxpayers, americans, yes. >> it is either next to grind against private capital or an ax to grind against fannie and freddie, which generated a lot of bad well over the years. yes, there are things that the government -- that the private market can do, that the government can do, and fannie and freddie can be reduced in size and made more manageable to allow private capital to go in in a way that does not challenge the current position of equity holders. >> if they want private capital to go into help fix the gse's, why would crushing private capitals who are invested in them now be the right move? understandportant to the government never intended to see the expl

that's not the fed that's the fdic. continental, it would have created a big moral hazard problem. far worse was the doctrine of too big to fail. it really starts with the bailout of continental illinois bank in chicago in 1984. that's what i wanted to add what larry had to say about the fed's conduct and the crisis. the fed behavior among things it did wrong was to not act according to the classical notion of the lender of the last resort. the fed and bernanke in particular played a lot of lip service. lend high rate freely on good collateral. the whole idea you're not going to hold up a hope of a rescue for any insolvent solution. the problem was the fed bailed out insolvent institutions. it bailed out -- the problem though, is what they said when they bailed out bear. when they bailed out bear geithner and bernanke they were saying we're doing this because it's big. they didn't say we're doing this only because it's solvent. that was too big to fail. as soon as that doctrine was made. lehman and other financial institutions bigger, had every reason it would get bailed out. when

made sense for the fdic would save some money by having the acquisition to replace. you can see the political stars were finally aligned in the 1980's along with reflecting demographic trends and technological trends to get rid of this horrible system that had plagued the u.s. for 150 years. the politics didn't disappear. what happened instead was a new coalition was formed, a coalition of urban activist groups because they saw this merger wave is an opportunity. it was a great upper jenny. they were allowed under to express opinions about whether the banks that want to merge to become the major banks to express their opinion about whether those banks were good citizens. and what better way for them to determine whether there were good citizens than how much money those banks were willing to give them. and so was born in a political coalition. how much money we talking about? and show you on the graph. they got to become a bank's huge economic benefits. if they're willing to share those with people who will testify that this was a good thing to do. and therefore take

then the third thing i'd point out is the fdic has developed a single point of entry approach to resolution, very promising. it's getting a lot of support from our major trading partners around the world. that's all positive. there's a great deal left to do here that we're working on. i would point to just a couple things. first, the senior debt requirement that we're imposing on the largest banks to assure there is loss absorbing capital in case they do fail. secondly we're looking at a proposal of some kind to deter the excessive use of short-term wholesale financing. that was a real vulnerability in the crisis. and finally we're about to propose a surcharge -- capital surcharge on the largest firms. the global challenges are, as your question states, very, very difficult, and the work there is also going on. i guess i would go back to 2011 when the nations of the world came together at the financial stability board to agree on the key attributes of resolution mechanisms, and it's a big document-long list. i won't go through all of it. a couple elements i will point to. first, and this is

banks to outside your state to come in and take over those collapsing bridge but also intense for the fdicto maybe save some money by having that acquisition take place. so you can see the political stars were finally outlined in the 1980s along with reflecting demographic trends and technological trends to get rid of this horrible system that had plagued the u.s. for 150 years. but politics didn't disappear. what happened instead was a new coalition was formed. it was a coalition of urban activist groups because they saw this merger wave as an opportunity. it was a great opportunity. they were allowed under the law to express opinions about whether the banks had wanted to merge to become the megabanks the too big to fail banks, call them to express their opinion about whether those things were good citizens. and what better way for them to determine whether they were good citizens and how much money those banks willing to give them a? and so was born a political coalition. how much money are we talking about? i'll show you in the graph in a minute, quite a bit. so the deal in a nutshell w

. >> no, no, look at the fdic data. >> that's what i'm referring to. the decline has slowed. i haven't said it's come back but the decline has slowed. >> i disagree with that also. if you look at existing home sales, they're at an 18 month low. everybody is talking about the weather -- >> are we talking about economy instead of ukraine? >> the economy is a little more important here. >> thank you, folks. appreciate it very much. >> see you later. >> this market really has come back. the dow was down 250 points at the lows of the session. the dow is now down 167 points as we head toward the close, 50 minutes left in the tradesing session here. >> the conflict between russia and ukraine sparking a big sell-off on wall street. up next a top military expert tells us what the end game is for vladimir putin, what options president obama has, if any, and how long you could keep the market in turmoil. >>> meanwhile, one of the world's largest investors not fazed by today's stock slid >> warren, you wouldn't be selling anything today based on this 12 this? >> no, if stocks were cheape

the interesting thing is that the banks are getting 25 -- they pay fdic insurance on that, i believe.ny money on this stuff. but they haven't been able to get it out. they want to get it out. >> why haven't they been able to get it out? >> if you look at, for example, you can get figures from some of the banks as to the percentage of the total lines available that they have with companies that are being used. those figures, which you would expect to turn up a lot by now, they're way down toward the bottom. >> they're not allowed in essence to lend to small businesses like they used to be able to. it's an overreaction. you talk to any banker, you know, we just can't. the regulators are not going to allow us to get away with this, whether it's a big bank or small bank. you're seeing companies emerge at high interest rates, much higher than traditional banks, taking the place of that. >> so that's the evidence that the regulators in washington are messing up what the fed has been trying to orchestrate by having these low rates. it's worse than washington not doing anything. washington is

. >> kind of like the fdic knew about fannie and freddie. >> and it might affect the restructuring toegin with. it could get very messy. >> one thing is for certain when you have a headline every day like this, a lot of people just say get me out of it. that's been a mistake. but think how long it took for bp to get back to the gulf. today four years. >> four years later. >> and bp was at $70 and then it was at $60 and then $50 and how bad could it be and then $39 and the answer is the dividend's in trouble. i understand. i don't think the dividend is in trouble at gm. >> remember merck? >> $27 with vioxx. >> right. by the way -- >> the ceo's wife was taking vioxx, if it was so bad why was she taking it. >> they fought through it extremely well, it took a while. >> it took a while. i don't know if you've ever taken vioxx. you ever taken it? >> no. >> what a fabulous drug. better than celebrex. >> celebrex is in the news. >> yeah, celebrex. geez. i don't know. >>> speaking companies that have a legal trouble ahead, retailer target has acknowledged that its security software did warn it