. >> susie: thas what general motor's co fritz henderson was hoping for as g.m. gathered wit consumers for a test drivef the new cars in stock. >> paul:stocks stumble. dickbovay says there trading on fumes, not reality. >> susie: it may be 100 degrees the shade in some parts of the country t the naon's retailers are thinng saters d coats for christmas they're busy thinking of new wayso ring up sales ts holiday ason. paul: i'm pau kangas. susie: i'm susie arib. this is nitly business report for use it, august 11th. th program was made possible by contributns to your pbs station from viewers likyou. thank you. 7//& captioning sponsored bwpbt >> susie: hazardous to the econy's health. thatas the warning today from the congressional watchdog monitori the government's bailout of the tion's banks. according to report from the congressional oversht panel, banks still have plenty problem loans on thbooks and thatould threaten the economi recovery. how bais this situati? stephanie dew talked today with the panel' chairwoman, elizabeth rren. >> how vnerable is the financia

. >> susie: that's what general motor's ceo fritz henderson was hoping for as g.m. gathered with consumers for a test drive of the new cars in stock. >> paul: stocks stumble. dick bovay says they're trading on fumes, not reality. >> susie: it may be 100 degrees in the shade in some parts of the country but the nation's retailers are thinking sweaters and coats for christmas. they're busy thinking of new ways to ring up sales this holiday season. >> paul: i'm paul kangas. >> susie: i'm susie gharib. this is nightly business report for use it, august 11th. this program was made possible by contributions to your pbs station from viewers like you. thank you. 7//& captioning sponsored by wpbt >> susie: hazardous to the economy's health. that was the warning today from the congressional watchdog monitoring the government's bailout of the nation's banks. according to a report from the congressional oversight panel, banks still have plenty of problem loans on the books and that could threaten the economic recovery. how bad is this situation? stephanie dew talked today with

you're going to see fritz henderson with our phil lebeau.imagine... one scooter or power chair that could improve your mobility and your life. one medicare benefit that, with private insurance, may entitle you to pay little to nothing to own it. one company that can make it all happen... your power chair will be paid in full. the scooter store. hi i'm dan weston. we're experts at getting you the scooter or power chair you need. in fact, if we pre-qualify you for medicare reimbursement and medicare denies your claim, we'll give you your new power chair or scooter free. i didn't pay a penny out of pocket for my power chair. with help from the scooter store, medicare and my insurance covered it all. call the scooter store for free information today. call the number on your screen for free information. >>> alibaba.com is the biggest commerce firm in the world. it said today second quarter profits fell 34%. it's spent a lot more on infrastructure, technology, advertising. the numbers did though come in way better than analysts were looking for. a

ceo fritz henderson makes a major call today. and not so fast, the judge refusing to rubber stamp that settlement between bank of america and the s.e.c. on merrill bonuses as squawk begins right now. >>> good morning, everybody. welcome to "squawk box" right here on cnbc. i'm becky quick along with joe kernen and carl quintanilla. the economy is front and center today. the federal reserve starts a two-day policy meeting. the central bank is widely expected to leave its key target lending rate near zero. but market watchers will look for signals on the fed's other programs. at 7:30, we'll get the nifb aechgs small business survey. we'll get the findings live, complete with william did you thinkelberg's findings. 90 minutes later, we'll get the wholesale trade numbers. we'll see exactly how much employers were ringing out of their employees to try and make sure they made some of these profit numbers we saw when we got the earnings. >> the anchors in addition to earnings central, right, joe? >> i don't know how you want to call it -

fritz henderson, ce organizat ce company, has been doing twisting and texts. as i said, fritz henderson has done several webcasts, twittering with people on a regular basis. they're also instituting what they call a culture change committee. fritz henderson and several executives, a group of ant 20, meet at least a couple times a month, talk about whether or not they are reaching the public and are more responsive to what customers are looking for. this is all part of general motors trying to be more in tune with people and ultimately sell vehicles because, erin, at the end of the day that's what this comes down to, selling more vehicles. we're going to hear more from gm executives today. this ebay deal will get a lot of attention. it's only for california at this point. if it's a huge hit, look for them to spread it around the country. >> trying to figger oure out yo price. thank you, phil. >>> coming up, so-called accidental consultant who says that biz schools are bogus and partly because of the financial crisis. what does he suggest you do, two years, get

fritz henderson as the automaker sws off its 20 models to consumers. >> susie: warning today from one of the world's biggest stitutional investors: "stat street. in aegulatory filing, the boston firm id it's burned rough more than two-thirds o a $625 million fd created to handle lal claims. it may need to raiseore money. some customers sd, saying they believed they re being sold low-risk iestments. but instead ey lost money from subprime mortge exposure. >> paul: the swiss gernment took a break from its summer cation today, to hold a ecial meeting over banking giant u.b.s. the ba is negotiating with the i.r.s. on handing over theames of u.s. clients suected of evading taxeby hiding money in secret u.b.s. accounts. the swiss cabinet won'release details until a deal is reacd. on wednesday, bo sides will update a fedal judge on their on negotiations. >> susie: tonight's commentor wants regulators to crease the capitarequirements of banks. he's richard dekaser, esident of woodley park resech and the formerhief economist of national city corporation. >>eporter: most people would agree that

fritz henderson as the automaker shows off its 2010 models to consumers. >> susie: a warning today from one of the world's biggest institutional investors: "state street. in a regulatory filing, the boston firm said it's burned through more than two-thirds of a $625 million fund created to handle legal claims. it may need to raise more money. some customers sued, saying they believed they were being sold low-risk investments. but instead they lost money from subprime mortgage exposure. >> paul: the swiss government took a break from its summer vacation today, to hold a special meeting over banking giant u.b.s. the bank is negotiating with the i.r.s. on handing over the names of u.s. clients suspected of evading taxes by hiding money in secret u.b.s. accounts. the swiss cabinet won't release details until a deal is reached. on wednesday, both sides will update a federal judge on their on negotiations. >> susie: tonight's commentator wants regulators to increase the capital requirements of banks. he's richard dekaser, president of woodley park research and the former chief economist of na

let's talk a little bit more with fritz henderson. he's coming to us from one of gm's facilities in michigan. mr. henderson, thank you for coming in. >> hi, wolf. >> are you worried that selling cars on ebay will further hurt a lot of those dealerships, not only in california, but if it goes national, across the country. so many of the dealers are in trouble if you can eliminate them, they're going to be in further trouble. >> first, wolf, when we did the partnership with ebay, we committed to ourselves and to our dealers we would do it with dealers. 225 dealers are participating in california, that did it voluntarily, because they thought it was an interesting thing for us to experiment with. it takes the showroom into the living room. and, it allows the consumers a series of choices in a more comfortable environment. we had very good support. we wouldn't do it without the dealers with us. >> won't they be making a lot less per car sale via ebay rather than selling direct? >> i think that remains to be seen. like any experiment, this

you can see fritz henderson talking to an audi driver, and the guy says that he will go out eventually to buy a gm car. neil: so, maybe they are back and they have had a few cars that are good, but you think it is too little too late? out that the perception that general motors is a loser is out there and it cannot be shaken? >> there has got to be something about that perception. go to a chevy dealer. neil: are they serving lobster and ice cream? >> maybe they should be. you know what? these businessmen have to make a living off of operating profits, but general motors is just going to raise your taxes. thank you, al. neil: a doctor that could you? how about a congressman. (announcer) illness doesn't care where you live... ...or if you're already sick... ...or if you lose your job. your health insurance shouldn't either. so let's fix health care. if everyone's covered, we can make health care as affordable as possible. and the words "pre-existing condition" become a thing of the past... we're america's health insurance companies. supporting bipartisan reform that congress can build on

we're doing to be talking with fritz henderson when he shows up and more of his comments later on. guys, back to you. >> thanks. any idea about other ways they might be considering getting more connected to customers, things bandied about that we might hear from fritz later today? >> the biggest thing, they have to find a way to break the old model. the old model, do newspaper, online ad, tv ad. what they are finding when we they talk with people that a lot of people, they think of general motors, they think it's toxic. the brands, however, cadillac, chevy, gmc, those have not been damaged so much. they are trying to find a way to advance the brands. that's why when you look at ebay you'll find chevy having its on site. >> last car i bought was online, dealer went out and found it, did the due diligence, did the deal with the on site dealer. all we had to do was show up with the check, pay the car and drive away. it was it is easiest thing ever. if that's the future, sign me up. >> market strong, hedge funds making a comeback. money coming in. how will they invest it. last two kent

in fact, we have fritz henderson speaking about what makes this program tick. let's take a listen to that. >> customers will buy actual vehicles just like they do on ebay. by determining the option or by negotiating online. you can do all your research and price negotiation online in the comfort of your own home. >> a lot of people like the idea of being able to do that at home. john roberts brought this up earlier. you may want to go to a dealership and check out the car first and then come back and buy it because, you know, it might be nice to find out you don't like where the cup holder is. a network of 25,000 vehicles to pick from. >> did you say you may not like where the cup holder is? >> yeah. i was being funny. maybe it's the fuel economy. you have it keep it light every now and then, tony. >> stephanie, appreciate it. thank you. we want to check out our special report "america's money crisis." >>> here in atlanta, long lines right now outside the georgia world congress center where major lenders are gathered to help homeowners lower their monthly payme

fritz henderson has the board's support, but he has to show those results. >>> sony is unveiling twoew e-book readers today. it has a five-inch screen and costs $100 less than the kendall device. the other devices have a tough screen allowing users to highlight text and take notes. neither is wireless, though, so u to plug is into a kohlschreiber to download those books. could see some competition there with amazon. >> can they get those screens any flat sner. >> it's amazing technology. it really is. >> thank you. >> thank you, keith. >>> time is now 11:49. 83 degrees outside. still ahead the fitness craze to help you drop some of those pesky pounds. >>> plus meteorologist tom will be back with another check on the forecast. >>> we're looking for people who make the day special in the rly morning hours. if you know someone like,atth e-mail their story and a clear close-up picture orideo to morning person at ngcwhitoastn.com, andn. >>> a florida schoolteacher has been suspended from a classroom after he was caught on a cell phone video allegedly choking a student. this video made nat

with new ceo fritz henderson at the helm, it's part of the automaker's plan to reimage gm and broadento younger buyers by expanding showrooms from parking lots to laptops. >> and we are well on our way to succeed. >> reporter: out with the old, in with the new. the ebay site will let customers know if their current vehicle will -- the senate voted to give the cash for clunkers program another $2 billion because it's been such a smashing success. >> almost 2 to 1 under our survey, people have been buying these more fuel-efficient cars and have been getting the $4,500 voucher. >> reporter: so many trading in their clunkers to buy more fuel-efficient cars. under the program, the clunkers can't be resold whole. the engine must be destroyed. >> we're locked up. >> reporter: part of the shift toward more energy-efficient cars. and easier ways to buy them. leeann gregg, news4. >>> and that's it for "news4 at 4." i'll see you again at 6:00. "news4 at 5" starts right now. >>> tonight on "news4 at 5," a dog rescuedfter being thrown into a dumpster. tonight, the search for whoever it was that di

. >> reporter: withew ceo fritz henderson at the helm, it's part of the plan to reimage gm and broadingappeal to younger buyers by expanding showrooms from parking lots to laptops. >> and we are well on our way to succeed. >> reporter: speaking of out with the old, in with the new, the ebay site will let customers know if their current vehicle will qualify for the government incentive program to get big gas-guzzlers off the road. last week, the senate voted to give the cash for clunkers program another $2 billion because it's been such a smashing success. >> almost 2 to 1 under our survey, people have been buyin these more fuel-efficient cars and have been getting the $4,500 voucher. >> reporter: so many trading in their clunkers to buy new fuel-efficient cars that some dealers worry they'll run out of certain models. under the program, the clunkers can't be resold whole. the engine must be destroyed. >> we're locked up. >> reporter: part of the shift toward more energy-efficient cars. and easier ways to buy them. leeann gregg, nbc news. >>> we have a programming note. we have an announ

fritz henderson explained exactly how such a high mpg is possible for the volt. >> very simple.the volt can travel up to 40 miles on a single battery charge before the flex fueled power generator kicks in to extend the overall range to more00 miles. three-quarters of americans commute fewer than 40 miles per day, you can commute without using a single drop of gas. >> the chevy volt is expected to hit show rooms by late next year with a sticker price of about $40,000. >>> the new volley is just one of the many ways general motors is reinventing itself post-bankruptcy. cnbc's phil lebeau joins with us more on this. how much mileage is gm's stock going to get from this volt announcement? >> reporter: considering this is a private company, eventually when it is a public company again and there's stock to be traded, it could get a huge boost from this. keep in mind the volt does not go on sale until late next year. by then general motors will be a publicly traded company. if this car can deliver anything close to 230 in terms of miles per gallon, the potential here is enormous. ultim

fritz henderson said the volt will travel up to 40 miles on a single battery charge. after that, a small gasoline engine generates the electricity. >> three quarters of americans commute fewer than 30 miles a day, most volt drivers will operate on a daily basis without having to use a single drop of gas. incidentally, it's also much less expensive to drive a car with electricity. in detroit, for example, you can charge the volt at night, off peak, for about five cent per kill wat hour which means a full 40-mile charge of the volt will cost about 40 cents. >> lehrer: the volt could cost around $40,000 when it hits dealer showrooms next year. henderson said the price is expected to come down in future years. he also acknowledged plugging in the car will be a problem for people in apartments. ultimately, g.m. expects charging stations to meet that demand. medical researchers may have found another critical use for aspirin. a new study indicates it could cut the risk of death in colon cancer patients by 30%. the findings are in the "journal of the american medical associa

this morning in michigan, gceo fritz henderson announcing volt late next year, and according to estimates, 230 miles per gallon, according to gm, the volt will cost roughly about 3 cents per mile to drive. and according to vice chairman bob lutz, this may be a conservative estimate. >> we're very confident in that 230, and to tell you the truth, we discounted it a little bit, because we hope that in the final third, i wouldn't be surprised to see it even higher than that. >> keep in mind, the chevy volt, which is powered by a huge lithium ion battery pack provides a 300 mile range. in other words, fully charged with the gas assist engine, recharging the electric motor, you can go up to 300 miles. the volt's battery, by the way, being developed by lgkem here in the detroit area. for more on why this may be a game changer, check out behind the wheel.cnbc.com. keep this in mind when looking at the volt. it's a limited production model, when it first come out price tag expected to be about 40 grand. so the impact on the bottom line at gm is going to be no impact. right off the bat. of it's go

fritz henderson and harry reid. >> former new york

fritz henderson says he is confident that the highway reading in terms of miles per gallon will be inriple digits. right now, boasts numbers like that one. >> how do they come up with the number? >> it's a great question. a special calculation according to gm as they've worked with the epa. let's compare it to a prius hybrid that gets 50 miles to the gallon. all of the energy for the car comes for burning gasoline. the volts will run 40 miles without using any gasoline at all. after that you've got a gas engine that kicks in to power the battery which then in turn powers the car. if you're going longer distances than the 40 miles you're not going to get the 230 miles per gallon. if you drive 80 miles in a row on the volt the fuel economy will fall to about 100 miles per gallon. if you go 300 miles. fuel economy is going to fall to 60 miles per hour. it depends on how far you're going and the calculation changes for there. >> it's a cool looking car, too. fuel economy aside, we are in a recession. are they making a big bet on a car that a lot of people may not buy? >> they're getting a

this morning at a press con fwrens in detroit, company ceo fritz henderson announcing that in their estimation based on their formula, the volt will get 230 miles per gallon, cost aboue 3 cents per mile to drive.th but keep in mind, even when it comes out late next year, it will be limited volume and have a limited impact on gm's bottom line. >> this is a small volume at this point, anyway. it's a small volume vehicle. so the impact will obviously be in public relations and goodwill. >> and, again, gm says the volt mileage was based on a formula it received from the epa, although, again, the epa has not certified the volt's mileage, and that lithium ion battery pack is being developed here in the detroit area. guys, check out more on the impact of the voluntarily's mileage. check out the blog, at cnbc.com. certainly a number that gets you talking, bill. much i heard you talking at the top of the show. you get 230 miles to the gallon? >> we do here on "power lunch." the question we have, though, is the infrastructure that it will take. you know, there are no -- there are gas stations around the

. >> reporter: with new ceo fritz henderson at the helm, it's part of the plan to broaden appeal to young buyers by expanding showrooms from parking lots to laptops. >> we are well on our way to succeed. >> reporter: speaking of out with the old, in with the new, the ebay site will also let customers know if their current vehicle will qualify for the government incentive program to get big gas guzzlers off the roads. >> bye, old girl. >> reporter: last week, the senate voted to give the cash for clunkers program another $2 billion because it's been such a smashing success. >> almost two to one under our survey, people have been buying these more fuel-efficient cars and have been getting the $4,500 voucher. >> reporter: so many trading in their clunkers to buy newer, more fuel-efficient cars that dealers worry they'll run out of certain models. under the program, the clunkers can't be resold whole. e engine must be destroyed. >> we'reocked up. >> reporter: part of the shift toward more energy-efficient cars. and easier ways to buy them. leanne gregg, nbc news. >> well, the trial gm ebay si

. >>> gm ceo fritz henderson will make an announcement about the company's products.e automaker revealed plans to sell products on ebay. give customers the option of avoiding showroom sales people. >>> and 3:00 eastern, bernard madoff's right-hand man is expected to plead guilty to criminal charges. frank depascali agreed to enter the plea in a federal court in manhattan. buy a car on ebay? >> no. get in there, feel it, see what it's like. >> i remember when i was a kid -- i know it was after the extinction of dinosaurs. that's the thing you did in the fall is go around in the dealerships and see the new cars, you know? we're talking about 1968 models here, but what the heck, it was a lot of fun. >> if you were my parents, you went dealership after dealership and rode car after car after car. >> it was 1972, the dodge super b came out. the wing on that. what a year it was. they cleaned up in nascar as well. >> show me pictures. ♪ memoirs >>> 47 minutes after the hours. jacqui jeras in the weather center in atlanta for us. would you buy a car on ebay? a lot of people d

our ceo fritz henderson has opened up a line of communication. . . host: lots of ways to find more.hank you for taking our viewers calls. our guests was the line director for the chevy volt vehicle. in the next section, the mayor of indianapolis, indiana, to talk about how his city is weathering the financial crisis. in between, let us hear some morning headlines from c-span radio. >> the fight continues in afghanistan to clear the taliban from villages ahead of next week's presidential election. today, a british jet called in by u.s. marines had the taliban position in sight but the pilots refused to fire in an effort to protect civilians. the marines themselves a didn't attack militant shooting at them because women and children were in the compound, an approach meant to avoid civilian casualties at all costs. 18 years after being shot down during operation desert storm, navy pilot scott speicher is being brought home to his finer -- final resting place. his remains, found in the iraqi desert, are expected to arrive at the air station in florida. china may appeal a world trade org

. >>> right now, gm's ceo fritz henderson is holding a news conference.pictures you see are from detroit where they are formally cutting the rib on , shall we say, looking to make up some of the lost market share. talked yesterday about how some gm dealers in california for one month, this is a trial, are going to be offering new gm cars for sale on the ebay website, and the idea is that you could get all of the discounts that you could get from going in and haggling without actually having to do that, having to go in and haggel and know all of the skills. you can try it out on ebay, very interesting. >> this is from the dealers, right, so you would go and pick up your car locally? >> yeah, that's right. so you could order it online, see all of details would you know about at the dealer, do a test drive at the dealer, too. but the buying of it, you figure out the price on ebay and then pick it up at the local dealer. we'll see if it catches on. >>> a big question, right? is the government stimulus spending working? well, with some of those new -- like the

our ceo fritz henderson has opened up a line of communication. . . from the national history museum in new orleans this is 50 minutes and under. >> a funny thing happened on the way to the museum. i was in washington, d.c. earlier this week to attend the congressional reception held by the gold star wifes in honor of legislators, congressmen and others who had helped increase benefits for the families of servicepeople who had served in iraq and afghanistan. and while shmoozing around the crowd i found myself-looking man wearing a navy uniform. i gave him my business card and began telling him my story, very abbreviated. he said, "stop. i know this story. it's in tom brokaw's book." which it is. but i was absolutely astonished that this man, admiral mike mullen who's the chairman of the joint chiefs of staff, would know my story. telling this story is so difficult for me to tell so i ask for your patience if i stumble. until relatively recently on my lifeline my father was just one of among many of more than 78,000 american servicemen still missing fr

our ceo fritz henderson has opened up a line of communication. . . thank you very much for telling our audience about the volt. lots of ways to find out more. we appreciate you taking our calls. >> i think we're having these large turnouts because of the health-care issue. so i wanted to bring up, because there's been a lot of concern and legitimate concern expressed about what my views might be and what i am doing in washington, whether i'm listening to the people iowa. first of all, i want to express to you that i think we have the best health-care system and the world. it does not mean it is perfect. there are things that can be improved. in this costly, some people have a hard time getting health insurance. it is awfully expensive. >> members of congress around the country are holding meetings with constituents on health care. here's a look at some of the advertisements that they are facing during the august recess. >> for six years, and have been here in nebraska. last week, health insurance agent called, and told him i rates would go up 42% fro

tonight, gillian tests, fritz henderson and senate majority leader harry reid. >> this fall, and to therica's highest court, from the grand public places, to those only accessible by the nine justices, the supreme court, coming the first sunday in october on c-span2 -- un c-span. >> now a discussion on technology issues facing congress and the obama administration including cybersecurity, national broadband and government information technology. the lobbying group tec america hosted this group in washington, it is about an hour. >> they will not serve a tech policy in washington. to that end i wanted to introduce phillip bond as soon as he put on his microphone, president of tech america. he will have a few opening remarks to kind of the lay of the land of the various issues that we have been watching and what we are looking for in the fall and then we have a number of our policy experts on hand and on the phone as well to facilitate what we hope will be a fruitful q&a session for all of you. >> thank you very much. can you pick it up or not? >> bear with me for one minute. i am technol