few major markets to impose substantial barriers to entry for american business, including financial services firm. and though you have stated publicly the the u.s. needs to level the playing field with china, they continue to have the most restrictive market. for financial services in the g-20. and the the newly released development research center, the state council, world bank, newly called china 2030 reported greece and calls on significant changes to the chinese domestic financial system, as they become more active internationally. as the chinese financial services firm expand to the u.s., what steps are you taking to ensure that u.s. financial firms have the same access to china. >> very important point to us. thank you for highlighting the world bank report, because it's a very sweeping constructive set of suggestions for reform in china, including opening a financial sector. i think it's very important china move further to expand the opportunities in china it's necessary to be more fair to us. so we're going to keep encouraging them to move further. we made some recent progress. even just

the staff issued guidance the way that financial services firms should disclose risk to foreign debt, helping to provide investors with adequate financial information, even as that situation remains very fluid. and the staff issued guidance issuing company's obligations to risk cybersecurity and attacks, clearly a growing concern of investors. in reviewing the most recent waive of ipos, problem recognition practices were stopped. the risks were stopped before being able to take risk again. they acted swiftly when the right of the investors to have their day in court was threatened by objecting to a provision that was in the documents connect with the company's ipo, the results of these changes are not always eye catching but we are convinced that increased focus on these sectors is a necessary shift in a crisis world, we know that our effort says to provide guidance has proved helpful to many companies. and we believe based on our own review of disclosure statements that investors are getting information that is both more complete and more relevant than in the past. perhaps the areas

the staff issued guidance regarding a way financial services firms should disclose their exposure to european sovereign debt in time for these firms to use it when they prepare their annual report, helping to provide investors with adequate granular financial information even as that situation remains very fluid. and the staff issued guidance on disclosing cyber material attacks, clearly an area of growing concern to investors. additionally, in reviewing the most recent wave of ipo, court fan quickly stopped revenue recognition practices, and they halted the use of non-gap measures. before these practices, the tech bubble of the '90s could take root again. similarly, disclosure teams acted swiftly when the right of investors to have their day in court was threatened by object ing to mandatory restriction of ipo. the result of these changes aren't always eye catching, but we are convinced that increased focus on systemically significant market sectors is a necessary shift in a pro crisis world. we know our proactive efforts to provide guidance have proved helpful to many companies as t

it was a global financial services firm. it was not a bank. so it was not overseen by the fed. it was an investment company. it held lots of securities. it did business in security markets. it couldn't take deposits not being a bank. instead it funded itself in short term funding markets including the commercial paper market. lehman invested heavily in mortgage securities and commercial real estate during the 2000s. as house prices fell, lehman's position got worse and they were losing money in real estate. lehman was becoming insolvent. it was losing money in all of its investments. and it was coming under a lot of pressure. indeed as lehman's creditors lost confidence they with drew fug refused to roll over lehman's paper and other business partners said we're not going to do business you because we're afraid you won't be here next week. lehman was increasingly losing money and increasingly finding it unable to fund itself. they to find somebody put more capital into the firm. it was unable to do that. on september 15th it filed for bankruptcy. this was an enormous shock that

. >>> the united states financial services firm, mf global billion the country's eighth biggest bankruptcystors panicked over the amount of risky european debt that this company had on its books. here are some of the details that came out of the testimony in washington on wednesday. $1.6 billion in client money has been unaccounted for since mf global went bankruptcy. the hearing focused on $175 million worth of transfers and whether customer funds were improperly used. one person believed to know the details is edith o'brien, the assistant treasurer at mf global. she wasn't very forthcoming in her testimony. take a listen. >> on the advice of council, i respectfully decline to answer based on my constitutional right. >> o'brien actually repeated that phrase each time that she was asked a question. "the wall street journal" has reported that she's now in talks with the department of justice about possible immunity in exchange for her cooperation. >>> spain could be brought to a standstill today as unions stage a general strike and protests continue against tough austerity measures that are

financial service firms. i'm walking around the same executive suite with the same clients, right, guys i do business with every day. so you know my guys said new mark knight franks said the best real estate broker in new york is now, it's me because i know the head of all these guys, all these banks and they're going to do business with me. >> can you keep the employees? as grub and ellis went bankrupt, i have to believe some the hitters left. >> a bunch of hitters already left. when you buy something out of bankruptcy, the price will be lower. we are an infrastructure firm. grub and ellis, we're going to build it up and buy it right. >> now, howard, you have a huge business in europe, both opportunities because the big banks out there have really dropped back but also the fact is that things are weak. they trade a lot of government debt over there. i have to believe they have a lot of stuff for sale. is europe a place that you are looking for as opportunity? would you look to be smaller in europe? 46% of th

so that the economy is growing faster, so for example, i would recommend that any of the financial services firmse largest, those that have the largest amount of assets, are most collect connected to the noble economy, if they can't prove to the regulators, and if they can't prove to the market that if tough times hit them they could unwind themselves without a problem, then we shouldn't howie them to be of the size they are. george schultz -- >> rose: we shouldn't allow them to be the size they are, therefore we should do what? >> well, if they can't suffer through a very tough scenario, then we shouldn't let them live in the prosperity of the moment. so george schultz said a long time ago if institutions are too big to fail, they are too big. so the burden should be on them to persuade market participants and in my view government officials that they can withstand the shock and if they can with stand the shock, the value but unwind themselves without necessitating the government to come in and write a big check, that is fantastic. if they can't pass thatç test, then i think we have got ourselve

the support includes support of entrepreneurs, whether they be from convenience stores, financial services firms, high-tech firms. in pennsylvania, the life science companies feel very strongly about this because for them, access to capital is a huge challenge. it's -- it's the absolutely essential precondition for their growth. and they're not alone. manufacturers generally, the supermarkets, all kinds of trade associations, the support for these capital formation bills is very, very broad. i want to touch specifically on three of the bills that i've been working on for quite some time now and i'm -- i'm very hopeful and optimistic about because i think the -- well, first of all, these three bills are among the six bills -- they are three of the six bills, i should say, the house companion version of these bills are in the package that leader cantor has proposed and there's broad support i believe in this body for these bills as well. the first i want to refer to is -- is a bill that i've introduced with senator tester. it's senate bill 1544, and it's called, "the small company capitol formatio

bad reputation. 96% admitted their firms invited negative public perception by their actions or inactions. 74% believe increased regulation of the financial services industry will help their firms improve reputations and trust with customers faster. the study was conducted by a research company that specializes in the financial services sector. it interviewed 150 marketing and communications executives. joining me now, former labor secretary, professor at uc berkeley and author of "aftershock: the next economy and america' future". i include it on the syllabus in my class, professor, thank you. it is a spectacular book. >> thank you. >> does this survey suggest there has been some sort of epiphany on wall street? >> certainly among marketing and communications people on wall street. they understand how angry the public continues to be at wall street, but whether the understanding has permeated beyond to the real power on wall street, the ceos and the major traders and hedge fund managers is a different story all together. >> is this merely an understanding that, gee, we did something that is going to hurt our reputations, or is this an understandi

financial regulator. like factory firms or service businesses. should small businesses that previously didn't offer consumer financial products be concerned about a new layer of regulations? >> if a business does not offer consumer financial products or services, they would not be subject to our oversight. if it they do, they would. so money service companies previously were not subject to any federal oversight. arguably. i mean, there are some laws that may have applied to them. they now are potentially subject to oversight by us. this is a big shift that the law represents, which is that there are plenty of consumer markets where you have chartered institutions, banks, credit unions, thrifts, competing against nonchartered institutions that were not subject to any oversight whatsoever. and we want to make sure they are held to the same sorts of standards and principles and people are put on a level with one another. that's a big part of our job, it's something we're going to be -- it's a big challenge for us to do it, but we're working hard to d

it was a global financial services firm. it was not a bank. so it was not overseen by the fed. it was an investment company. it held lots of securities. it did a lot of business in the securities markets. it could not take deposits not being a bank. instead, it funded itself in short-term funding markets including the commercial paper market. lehman invested heavily in mortgage related securities and also in commercial real estate during the 2000s. now, as we know, as house prices fell and delinquencies on mortgages rose, lehman's financial position got worse and they were also losing lots of money in their commercial relation so lehman was becoming insolvent. it was losing money in all of its investments. and it was coming under lots of pressure. indeed as lehman's clients lost confidence they started losing funding for lehman. for example, investors refused to roll over lehman's commercial paper and other business partners said we're not going to do business with you because we're afraid you're not going to be here next week. so lehman was increasingly losing money and increa

financial services authority, uk financial services regular. keeping the regulars informed was one of my top priorities. that includes spending most of sunday evening, october 30, working with regulators to agree to terms on which the firm would be sold and to accounts transferred to revive it as best i recall, it was shortly after concluding that process and likely just before midnight october 30, that i learned that the firm was unable to reconcile its segregated funds accounted i was shocked, because i believe that the firm had in place the fully compliance system operated by highly qualified professionals for controlling and securing customer segregated fund. as a last effort senior people from potential buyer work with people from our finance and operations team to provide a fresh set of eyes to help identify the reconciliation errors. once the inability reconcile the accounts became clear, at approximately 2 a.m., we notified the regulators. later that morning, after several hours of discussion with the regulars, we made the bankruptcy filing. since that filing i've been assisting in the complex efforts, global efforts to maximize the value of bankruptcy estate for all mf global stakeholders. i will try to answer

china stands as one of the few major markets with substantial barriers for financial business including services firms. billy have stated publicly that the u.s. needs to level the playing field with china, they continue to have the most market for financial services to financial services in 2020. the report agrees and calls for significant changes to the chinese domestic financial system as they become more active internationally. as the chinese financial firms expand to the u.s., we pointed you to make sure that the u.s. that u.s. financial forms have access to china? >> figure for pointing that out. that is a very sweeping constructive set of suggestions for reforming china, including opening the financial sector. i think it is very important that china move further to expand the opportunities for you up firms competing in china. that is a critical part of both the success of the reform process in china and it is orchestrated to be more fair to us. we're going to try to move further, we made recent progress in the last three months in opening the insurance sector in china. we have a ways to go, we a

the sources say the firm tricked new clients into buying products for high prices although the value had sharply declined as a result of aij's investment failures. the financial services agency also plans to strip aij of its registration as an asset manager. >>> the united states is asking japan to pay for the transfer of u.s. marines stationed in okinawa to locations other than guam. tokyo and washington are making arrangements for the planned realignment of u.s. forces stationed in okinawa, southwestern japan. the current plan is to reduce the number of marines initially set at 8,000 to be transferred from okinawa to guam. 5,000 marines will now go to other places outside japan, including hawaii and northern australia. it's been revealed that in bilateral working level talks, the u.s. has asked japan to pay for the transfer to locations other than guam. some japanese government officials argue that it is unavoidable to bear part of the cost for the transfers to reduce the burden on okinawa. both countries had previously agreed that japan will pay $6.1 billion for the transfer of 8,000 marines to guam. some japanese officials say the government should ask for the sum

in equities, the firm is a big trader in financial services sectors.nergy and equities trading over there. right now we are in the fixed income area. the big business here is fixed income. this floor trades on average $10 billion a day in u.s. treasuries. the firm has a huge presence in munibonds. through february, rbc has been the fourth largest underwriter of u.s. munibonds. when i speak with rbc head of rate strategy as well as heads bond research, we're going to get an insight into what is going on in this market. whether or not we're seeing that kind of flow into munis and treasuries. we're seeing the dow under pressure and what is driving the selloff. over to you, mary. >> hey, marie. the story hasn't changed since the first hour of trading as we head into the last hour of trade. the story being concerned about a decline in global growth because of the manufacturing data that came out of china. so let's take a look at sectors that are pacing this decline t won't surprise you that these are linked to the global growth story. we're seeing weakness

when i went to work in the financial services industry, i went to work for a firm whose ceo was deeplyus and wrote a mission statement that defined the purpose of the firm as serving others. now i think that is the purpose of financial institutions. they should be means to greater ends. they should not be ends unto themselves. they should define their mission as helping solve the needs of others. so i think the servant leadership ethic, stewardship, thinking about the impact of your actions on others, managing responsibly what others have entrusted to your care, that really lies at the core of the financial services industry. and how far from that did we stray going into the financial crisis? my concern is not only did we get away from that, but we have been trying to solve the financial crisis, trying to prevent future crisis and we have forgotten one of the basic and core issues, which is it comes down to character and principles like stewardship. >> really, it comes down to culture. >> it does. >> and without the culture, there's no list of rules that will make it happen. if their c

the house financial services sub committee probing the collapse of brokerage and commodities firm m.fered evidence ceo jon corzine, the former democratic governor and senator personally directed that firm's assistant treasurer to transfer $200 million from the supposedly protected customer account, to anover seas account. corzine swore under oath he never authorized a transfer. the treasurerer will testify before the sub committee wednesday. >> thousands of americans of all faith took part in the nationwide rally for religious freedom. they're protesting a new government mandate they feel goes against their morals and violates the first amendment. religious correspondent lauren green has more. >> voices raised for religious freedom as protesters in 140 cities across the nation rallied against healthcare mandate. on the step of the historic hall. hundreds gathered for fundamental right they say the law threatens. >> our own government engages in the same sort of impression that led our nation settleers to flee their homeland. >> the core issue, obama requirement that all employers, eve

firm at that time it happens. according to the house financial services committee which released a new memo on this today, an interesting nuance between jpmorgan and mf global. jpmorgan so nervous in the final days with mf global, they asked the firm to sign a letter assuring that all transferring of moneys complied with rules. but mf global never returned that letter, and edith o'brien is portrayed as reluctant to sign jpmorgan letter. o'brien has been subpoenaed to appear before congress next week. initially, she did not want to testify. they are going to make her testify along with a host of other mf global executives and then there is this. dramatic e-mail from edith o'brien, about a $200 million transfer from a segregated customer account in which o'brien writes, per jv.c.'s, tht is jon corzine's, direct instruction. that seems to be at odds what corzine suggested just last year when he testified on capitol hill. take a listen to how he characterized all this last year before congress. >> let me be clear. the last few days of mf global were chaotic. i did not instruct anyone to lend customers to mf global or any of

the drove the jobs numbers a lot of jobs added in the service sector which includes everything from restaurants and hotels to healthcare firms financial companies to employers added two hundred twenty seven thousand jobs in february that's better than most economists expect is good jobless rate has exceeded eight percent for thirty seven straight months that is the longest stretch on record and now we've got revisions the bigger picture is even a little bit better it got better than expected december january and february now is about two hundred twenty seven thousand jobs created two hundred twenty seven thousand jobs created that's a little better than the wall street consensus the unemployment rate held steady point three percent. now let me just give you a few more figures to round this out six which measures the marginally attached discouraged workers also dropped last month or fifteen point one to fourteen point nine percent also explains why the unemployment rate stayed the same despite more jobs being added because more people are entering into labor force and the wonder of people who are long term unemployed meaning of they've

services of j.p. morgan and other financial institutions provided to mf global. these are services that banks typically provide to merge and operations of firms like mf global. first, mf global maintain a large number of cash demand deposit accounts, much like a retail checking account. at j.p. morgan, as well as other banks. second, mf global used j.p. morgan as well as bank of america and other banks for cleaning services. third, j.p. morgan served as the administrative agent for two committed revolving credit facilities, one consisting of 22 and one of 10 banks that mf global had put in place. finally, mf global had entered into securities lending and repurchasing arrangements. these serve as a tool for mf global. as noted in my written statement, we worked hard to assist mf global, our client when it began having problems. these efforts, which would in turn then if it transports customers, include several options. we sent employees to assist mf global to unwind its securities lending arrangement. by doing so, mf global was able to regain access to the securities it had posted as collateral, and then sell those securities to generate addit

. >> the house financial services committee today held a hearing on ms goebel, the financial firm that went bankrupt last year. the executives testified, but the former assistant treasurer put the fifth and declined to answer questions about what happened to $200 million from a customer account. she had previously written an e-mail saying john courts line, the former ceo of ns global authorized transferring the customer's money. congressman randy now the power of texas chaired today's hearing. >> previously agreed. there are members that are not necessarily made in attendance of the hearing that are not in the oversight investigation committee, and i ask unanimous consent of the members be allowed to participate in the hearing today as well. i'm going to go ahead with my opening statement. this is the third hearing that we have had on ms global. it is not the eighth largest bankruptcy's in the history of the country but more importantly it's about trying to ascertain where they lost over a billion dollars worth of the money not a trial and the bottom line of what we are trying to accom

financial and accounting services, legal and contracting support and our role expanded as the commission's vision became clearer. given our experience and expertise, the commission asked gsa to help select the design firm and construction contractor for the memorial. although the requequestion of t commission we selected a design firm. this competitive and streamlined process seeks so select the most qualified designers to support federal design commissions. we seek to contract with the nation's most talented architects, landscape architects and engineers to design projects with outstanding quality and value. as part of this process, gsa utilizes the expertise of private sector peers to assist in the evaluation of proposals and design firms ensuring we benefit from the knowledge of a wide variety of individuals. at their request, gsa worked with the commission to develop a highly qualified ae evaluation board of 11 members from the commission, gsa, the eisenhower family as well as private sector peers in a variety of design and architectural areas. the board used three-stage process to make its selection. this included evaluating the past work of firms submitting proposals, then developing a short list

financial services committee holding a hearing. according to prepared testimony, the bankrupt firm's general counsel will tell lawmakers that she was not aware of the seriousness of a shortfall in customer accounts until the final hours of the firm. lori ferber will also say she resisted having an mf employee sign off on a document assuring jpmorgan that fund transfers were proper because the request was too brad. >> they didn't want to sign these documents. what's so amazing about this story is that jpmorgan calls up mf global and says this money you just gave us, you have to tell us where this money came from and you need to promise us that it wasn't customer money. when you get a phone call like that and then the lawyers say we can't actually sign something that's so broad that says this isn't -- because there's something a little -- >> if about somebody outside the firm knew this was going on, how come somebody inside the firm didn't. that's got to raise the question, right? if you know this outside the firm, how can you not know what's going on inside the firm. we'll find out more. in the meantime, britain has reportedly held

service that j. p. morgan along with other financial institutions provided to and get -- to mf global. this standard services that clearing banks provide to support the day-to-day commission merchant operation of firms like mf global. first, neugebauer -- mf global maintains a large number of cash demand deposit accounts much like retail checking account at j. p. morgan and other banks. second, use j. p. morgan as well as bank of new york melon and other banks for clearing services. third j. p. morgan served as administrative agent for two committed revolving credit facilities. one consisting of 22 and one of ten banks that mf global put in place. finally mf global entered security lending and repurchase agreements with j. p. morgan. these arrangements served as a financing tool for mf global. as noted in my written statement we worked hard with our client when it began experiencing problems. these efforts which would in turn benefit mf global's customers included several actions. we sent the j. p. morgan team to the offices from renacci to assist with its ongoing efforts to unwind its securities lending arrangements. by doing so mf global was able to regain access to the securities it posted as col

financial services. hour down across the board making headlines, bank of america has reportedly eliminated jobs in its equities mortgage backed securities and research divisions. the firm'sn pairing staff since last summer as business dwindled during the european debt crisis. and alan stanford has asked for a new trial. >>> now today's fashion al praflt. scott williams joins us from the weather channel. i just want to tell it you, andrew ross sorkin, wire the'rew york, he's wearing a sweater. would you confirm this is inappropriate wear for the weather we've had? >> absolutely. because we continue to find temperatures that are going to be topping out in the upper 70s. but i guess he can wear it this morning because we're dealing with a little bit of that fog out there across the greater new york city area and that will be a cause for concern. expect some of those airport delays for some of those first flights out with that reduced visibility. as you can see behind me right now, we're really socked in around the new york city area here with the reduced visibility. new york city down to 4 miles, lower at jfk. we have a quarter of a mile around the richmond area. so a littl

financial regulations from congress. but i don't think we're going to go back to a model where firms just give advice. i think they provide a variety of services. and clients do want that. it is a free market out there and clients are not unsophisticated. that's the other side of it that again when i was writing about this this week and got a lot of e-mails, there are people who said, look, clients can try to take advantage of firms, too. you know, again, it depends on where you're coming from on this one. host: next up is tracy, california on our republican line. we're talking to ken. go ahead. caller: i have a very serious question. i run a small company in california let me tell you i'm from the silicon valley. what is being done to this country by this goldman sachs morgan stanley and j.p. morgan which nobody is talking about the regulations out of s.e.c. which are coming out are very clearly fraudulent. there is the corporate crooks colluding with the wall street bankers sucking every penny of the american pension system and how it is being done i will give you a very simple example how the press reporters are covering this financial nons

financial services committee is holding a meeting. they plan to tell lawmakers that she desperately sought fund transfers to try and cover the customer account shortfalls in the final hours before the firm's collapse, but according to prepared tesk, christine slowinski says the banks would not execute them. she said she only learneded on the morning of the bankruptcy that that sentiment was real. they passed it late yesterday postponing bonuses. >>> let's get a check on the markets. after yesterday's market tisht where you did see a little bit of a pullback, dow was down by a little over 40 points, this morning you're going to see green arrows across the bofrmd dow futures up by 16 points. obviously we're going to be watching a few data points. at 8:30 we'll be getting durable goods orders and you do have an action coming up later this afternoon. if you take a look right now at the ten-year, we did see it falling do 2.81%. this morning it's yielding one basis point higher. looking right now at 220. and as i mentioned, we do have an auction coming up today for five-year notes. it's going to be 35 billion of them and that comes up at 1:00 p.m. today. >>> let's take a look. at this point you