sachs is john paulson goldman sachs coconspirator paulson and goldman came up with the idea of sellingmortgage securities to europe mainly to european pension funds so that they would insurance on mortgage securities called collateralized debt obligations these are derivate is and the idea was that if the mortgage market improved in america and the economy picked up and they'd make a lot of money selling insurance on these mortgages what goldman and cos and didn't say is that in fact while they are selling the securities they were betting that the securities would turn into junk that the market would collapse and mortgages in america would that the mortgage market would implode and they would make billions that's what happened right after they sold several billion dollars in mortgage securities goldman and paulson. they were they lost ninety nine percent of their value in weeks they were complete total garbage and they didn't say that in fact they were the guys that were making the money selling these things so it was a complete fraud and so the securities exchange commission said this

>> a jury found former goldman trader fabrice liable on six and seven. civil counts for fraud the and a potential is life ban from the securities industry. >> a lifetime ban from the securities industry, shouldn't he at least have to stay a thousand feet away from wall street? and introduce himself door-to-door whenever he moves to any town that has a bank? just-- hello, my name is fabrice and i'm a registered derivatives offender. (applause) >> look, i guess if it's just the best we can hope for, fines that are essentially roll mood the bank's cost of doing business along with their budget for tonner cartridges or cocaine. (laughter) but at least now they know that, you know, we are watching them and it will be awhile before they dare to behave so badly again. >> banks are behaving badly again. that's according to a letter from the new york state attorney general. last year five banks agreed to pay out $25 billion as part of a settlement designed to put a stop to mortgage and foreclosure abuse. schneiderman says some of the banks are quote engaging in m

. >> goldman sachs settled early without admitting wrongdoing. >> settled. so it seems wall street regulation is really just like the middle east peace process. no one goes to jail and it all ends with a bunch of half assed settlements that seem to make everyone angry. (applause) >> so we might not get the emotional closure of having them admit what they did or the physical closure of having them go to jail so how about some financial justice. can we at least hit them where it hurts. >> goldman sachs the giant wall street firm has agreed to pay $550 million in a settlement with the sec. >> okay, that's not nothing, half a billion dollars, i don't care who you are, that has got to hurt. >> 550 million, by the way, is about three days revenue for goldman. >> three days? a stomach flu lasts longer than three days. if federal regulators really wanted to punish the bankers they would have skipped the fine all together and just fed them some old sushi instead. (laughter) are we somehow supposed to feel satisfied with this kind of justice? because this feels like,

the goldman sachs hearing. and goldman sachs settled for $550 million.ourre was the face of this. the members of congress and sec came down hard on. as can you see, found liable in six of the seven counts. >> thanks very much. what a developing story. well continue covering this with all angleed. >> one of the criticism was that nobody had been brought it trial for the financial crisis. >> right. >> and it is starting to happen now. >> and that's the point. sec has wanted to be more aggressive. bu because they want to show the world, we are the cops on the beat. and we will get the guys, the bad guys down. all right. in the meanwhile, we we have a record rally on wall street. if we close here in 15 minutes, we will close at another all-time high. >> by the way, s&p above 17 hundred for the first time ever. so will this day end in record territory? we go back to the floor for what is happening realtime a right after this. of thousands of dols in hidden fees on their 401(k)s?! go to e-trade and roll over your old 401(k)s to a new e-trade retirement account

they're all goldman sachs alums. the bill back to goldman sachs. they go back into government. -- they all go back to goldman sachs. they go back into government. it is a white house issued. >> this goes back to the media in a way. i will go back to goldman sachs if i must. remember in august when there were about 1200 people doing civil disobedience around the white house protesting the keystone pipeline. the corporate mainstream media was like this on that. imagine if 1200 tea party members hitched themselves to the date of the white house. when occupy launched in september in new york and then moved across the country, suddenly there was more attention being paid to other movements. it exposed how the media has done such a disservice to this country in the last few years by saying there was one movement in this country, the tea party. there are many other movements. the occupy wall street movement has brought into sharper relief and force the media to pay attention to other issues and movements. i could take off 10 or 15. -- tick off to enter 15

liz: the other thing -- >> goldman will lose. liz: let me cut in quickly. goldman -- hang on.for the breeze. they pay for his defense. they did because they want to make sure to their own employees. for greece was a symbolic face. the face of wall street in this deal. a big victory for the s in ec. next up is penalties. >> i disagree. i don't think he's a face. i think that the street has moved on. i think that this is a bigger story of the loss. the fact that they want, it's almost rudimentary. liz: agaii, the case is over. it appears that the fabulous fab is not so fab. he is liable. liable on six of the seven counts. already settled. okay. coming right back. twenty-six minutes before the closing bell. dow jones industrial up 118. ♪ liz: well, it was just launched moments ago. the first and set produced since the takeover by google in 2011. the beginning of the come back. joining us now, motorola mobility ceo. good to have you. first of all, we love these stories because it is american innovation happening here in the u.s. let's first talk about the features of the phone in

stock goldman sachs citigroup wells fargo h.s.b.c. barclays they all dropped fifty sixty seventy percent value their member hank paulson who was a treasure cycle of the time called up buffett he called up the head of citi group he called up the head of goldman sachs and j.p. morgan said that the government was going to bail out these institutions they were not going to quote unquote fail he passed that information along secretly without public disclosure if they all bought those stocks they make double triple quadruple now they want to get out so that sells c. and b. c. they found maria bartiromo to go on c.b.c. and say oh you poor individual investors aren't fully invested yet turn to buy in at the all time i use your margin to get a visceral this is what we want to do with your net worth maria this is no neos investment program to get all those. so well yeah exactly and hank paulson i believe met with a bunch of goldman sachs related hedge funds and he told them that in fact the u.s. government would bail out fannie mae and freddie

goldman came to learn gupta provider raj rajaratnam information about the firm.did not slide of of the handle. he comported himself in exactly the way palm and others that goldman had grown to expect, very calm lee and sayre regally he denied he had ever provided raj rajaratnam with confidential information about goldman, then went on to explain why this was preposterous. told palm and other lawyers who were listening in that he and raj rajaratnam at one point had been business partners, the two had a falling out and were no longer clothes and their partnership had stemmed from what raja gupta entered into many years back. he poured ten million into an investment dealer and invested more money in the entity, raj rajaratnam he later learned had taken his money out, and ten million investments had gone to zero and hired accountants and lawyers to sue him and the galion chief was arrested. why would i help someone with whom i had a dispute. >> thanks. a couple more questions before opening up to the floor. you for that one very interesting, juicy part of the story r

my time when i started at goldman sachs., i had been courting and been courted by goldman sachs for three years before i got a job. it was then called security sales. helping individuals in small institutions manage their money. i got a ton of history of those years, as well as some of what i talked about earlier. you can always get the skinny of my goldman days and the outrageous attendance stories of that year. but that's not what tonight's show is about. tonight's show is about learning how to trade and investing by studying with me at the university of hard knocks, not just to give you cool, funny stories. i will dispense with the anecdotes tonight and try to teach you how to make money from the events that transpired at goldman sachs. it's fun to have fun. you can go read the books, but i'm about making money. first, that's where i began to understand the process of actual money management. not picking a stock here or there, but the process, the ability to build a portfolio from the ground up. and i had the best teacher

goldman sachs brought public at $18 in 2007.row despite the selloff because of the gigantic market that was initially just women who performed yoga, but now has extended to all women, not even just women athletes, and some men too. some of the best ones from 2012 to think about, organic food maker annie's, discount youth retailer, five below, fibe, and enterprise software, guide wire, and they all fit the three-prong test. in all of these cases, the trick is to recognize the size of the market, the power of the competitors, and try to figure out how the company is coming public is valued versus similar players. deals like under armour or lululemon which are priced at significant discounts to their peers when you factor in the growth rates, they tend to be the good ones, but are rare indeed. the bottom line, to analyze an ipo, including the abstruse technology companies, you want to look at the addressable market, the competitors, the historic growth rate of the company, versus the growth rate of the market itself, see whether th

equities strategist at goldman sachs, calls the 40 cheapest stocks in the market. we're going to start with 40 and going down to 36 this time around. national oil well varco, bristol myers, applied materials and precision cast past, schlumberger rounds out the number 36 position. look at the upside targets that he has, between 23% and 22.5%, so it's going to be very interesting to see more of goldman sachs' top 40 cheapest stocks still ahead this hour. ty? >> all right, sue. that should be interesting. happening right now, president obama is in los angeles talking housing with zillow's ceo. the two are hosting a virtual roundtable, as you see right there live, taking questions from around the country. yesterday the president sketched out his latest plan for housing finance reform, and the top thing on his agenda, wind down freddie and fannie by 2018. diana olick is cnbc's real estate reporter and paul bishop is an economist with the national association of realtors. welcome to you both. mr. bishop, let me begin with you. is the price of getting the government out o

>> there's a lot connection with knight capital and goldman. what, the days before this incident in both cases, knight and goldman, they changed systems. it was not tested full enough that they could be sure everything would work in practice b. on monday they made changes. they made changes the day before the implementation. it is definitely very clear. liz: in knight capital it really threatened the existence of that firm. they had to be bought out, and for a minute the whole thing could have gone under. is it an overstatement to venture something like that could happen at goldman sachs? 410,000,002 goldman sachs again not very much at all in the grand scheme of things. >> a company that makes $3 billion per quarter. the only made $3 million per quarter. a huge difference between these companies. for knight capital, $440 million was much more than the position they had the quarter before. they are expecting to lose around 80 million, so really i would say a rounding error. liz: talk about the 30,000 feet picture here. the gigantic servers and

regulators are still working to unravel a goldman sachs computer glitch that caused bad trades in the options market.reports say the trades came from goldman's internal system and showed up at several trading exchanges. it affected about 400,000 options contracts involving stocks such as johnson and johnson and kellogg. the trades may be erased but reportedly could cost goldman sachs as much as hundred million dollars. professor james angel at georgetown university suggest the trading glitch mess could take a while to cleanup. "for one thing i've heard that 20 thousand trades got cancelled, now this causes enormus problems downstream. because you think 'wow, i just bought this option at this great, cheap price. and then they tell you the next morning 'sorry you didn't' so there are alot of people out there trying to figure out their position. what trades were good...what trades were bad." a goldman spokesman tells bloomberg: the exchanges are working to resove the issue and the potential loss is not material to the financial condition of the firm. the prime minister of japan has unusu

goldman sachs came forward with this.eport makes everybody pleased or not. >> in the meantime, the federal reserve kicking off its annual retreat. steve leaseman is there live. ben bernanke is not. >> good morning. a little monetary mayhem in the mountains where we begin this annual retreat for the federal reserve with really unprecedented amount of uncertainty over the fed. the leadership, near-term guidance on the policy and of course the effectiveness on the policy. we're calling this a jackson hole in the fed here with as you said no bean bernanke, no drogge, and a lot of governors and bank presidents. no clear policy guidance and no clear timing when we get that as to whether there was a september taper. the bernanke successor is uncertain. there will be a lot of debate whether quantitative easing was successful. and of course the taper guidance has been murky. let's look at some of the pluses and minuses of the two big candidates that people are talking about. first there is larry somers, the former treasury secreta

adam: what goldman sachs wants goldman sachs to get ahead. but first, the ending unemployment line. what it will take our economy. we are back after this. ♪ [ male announcer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade. i'm, like, totally not down with change. but i had to change to bounce dryer bars. one bar freshens more loads than these two bottles. i am so gonna tell everyone. [ male announcer ] how do you get your bounce? [ woman ] time for change! >> 22 minutes past the hour. it was 50 years ago today that martin luther king delivered his i have a dream speech in washington. churches and other bells will ring to mark the hour. president obama will speak today in d.c. the fire near yosemite is one of the larg

in that case goldman. this feels once again this isn't an exchange problem, not a problem within the nasdaq. sounds like something from outside coming in that they don't understand or can't gauge and that is going on. that is the only comparison i am making. there are so many market players. we have the centralized exchanges that are supposed to be responsible and a palpable. everyone is feeding off of their data and going in, one big happy melting pot of a global marketplace. what is happening is a lot of stuff happening quickly and even the people in programming don't understand what it is and that is my only point. my point is tuesday was goldman, today we don't know who it is. it could come from anywhere, some kid in his basement. cheryl: i want to clarify the breaking news situation and make sure i clarify again there's a lot of speculation, do appreciate you weighing in on this and say on this if you can and let our viewers know. about 46 minutes ago, all trades on the nasdaq, everything, was halted.

my suspicion goldman will get insurance to cover that one as well.o want to emphasize, i think there's a big difference between civil case or criminal case. you have to take that into consideration. but i think it is important to keep in mind, the is so much litigation goes on and a number of people are innocent and a numberf people are guilty. you don't want the innocent to have very large litigation costs to defend themselves. adam: sure. >> especially if it is in the line. i'm not one to sacrifice the rights or professions of accused or whether they are bankers, drug dealers or anybody else. think they are protections we need to keep in place. adam: quickly, jim, there is difference between a civil and criminal case. let's wrap this up. >> in the criminal cas it furthers business of company and dispuue over regulators f that gets criminalized the company is more likely to come and try to separate themselves from you than they do on the civil side just to please the prosecutors and get away from it. adam: i appreciate all three of you being here. w

we even saw a trading error from goldman sachs earlier today or yesterday. this is one of the challenges as china becomes more market focused, they'll have growing pains. and, you know, this is going to be one of the fallouts. hopefully these kinks in the system will be relatively small and the regulator will address them quickly. >> mike, thank you so much for that. mike warner, senior equity analyst as sanford bernstein. >>> coming up on today's show, we'll be heading out to paris as the french parliament reconvenes with pension reform at the top of the agenda. can the administration make the painful changes that the european commission is demanding? >>> and we continue our going green series, taking a closer look at the next generation on eco transportation as singapore's first green and driverless shuttle hits the road at 10:45 cet. >>> and the pulse of the retail sector ahead of target's second quarter earnings. can the retailer impress investors after a slew of disappointing numbers from rivals walmart and macy's? we'll preview the numbers. >>> and hom

you had people leaving the white house going right to goldman sachs, bp.in the first term they're now being staffed by the highest level by people who were staffing the obama administration. >> obama's -- >> omb director. >> citi. >> high level at citi. jake seaworth, secretary of treasury, they were doing all kinds of battles with goldman sachs during the first term, especially after the financial crisis. jake is now the head of communications for goldman sachs. >> so many have a connection of other figures prominent here. robert ruben. >> robert ruben has been a symbiosis between washington and wall street. bob ruben, the storied head of goldman sachs for many years, coming to take the reins of treasury, he was a real guru, and brought a lot of proteges, larry summers being one of the examples, tim geithner being one of them. the economy crashed, and robert ruben gets a great deal of blame. bill clinton did a mea culpa on robert ruben. >> the firewall between commercial banks and investment banks, and a big supportive of derivatives, deregulation, and al

banks including jpmorgan and goldman sachs.rch, moodys says it would review the assumptions of how much federal support banks might receive. u.s. regulators are working with banks on liquidation plans in case of another financial crisis. why does moody do this now? meanwhile, checking shares of the banks, goldman sachs is a touch lower in frankfurt trading up by around .8%. jpmorgan, morgan stanley and wells fargo all trading higher. >>> treasury secretary jack lew calling on congress to raise the u.s. debt ceiling speaking in california on thursday. he says lawmakers shouldn't wait for some unknowable last minute to resolve the issue. and the u.s. can't afford another self-inflicted wound. he estimates the government is weeks away from bumping up against the borrowing limit. congress returns from the summer recess next month. >>> the tokyo city government plans to invest in six megasolar plants across japan. the total output would be enough to power 270,000 homes a year. we have the story live from tokyo. >> tokyo revealed pla

goldman sachs agrees and plans a vigorous fight. goldman sachs was sued on similar charges august 1st. jpm recently revealed plans to exit owning and trading commodities. a-rod's appeal has eroded, according to marketing executives. it happened to tiger woods, lance armstrong and a list of other athletes who fell from the pedestal they were placed upon after a variety of missteps - in alex rodriguez's case, major league baseball's 211-game suspension, which he is appealing, for involvement in the biogenisis performance-enhancing drugs scandal. "i think there is more of a risk for companies to identify with an individual athlete. if they do something wrong, your brand goes down with them. i think what you're likely to see are more 'group' sponsorships, similar to the 'gillette young guns' or the coca-cola's 'family of drivers' in nascar. that seems safer to me." adler says look for fewer mega- deals for individual athletes, and corporate sponsorship decisions to move even slower than they do now. apple is offering consumers in china

as for goldman sachs who settled with the s.e.c. over this matter, it said it remains focused on being more transparent, accountable and responsive to the needs of its clients. >> do you think they should have called witnesss? do you think this was a major mistake? >> they'll say, if you're a defense attorney, last person you want on the stand is your client in large part because you don't want anyone to come up and say he said this or she said this and then not have a chance to rebut that statement. so really, if you were watching him on the stand, he's very energetic, very likable, very smart. so i think they felt the jury would -- he would appeal to the jury and there would be -- there would be more inclined to -- >> mary, i can only say from what i saw of the video of him walking outside and in and out of court, you were there with him during a lot of those times, i was a little surprised he seemed really kind of care free about the whole thing, very relaxed, which i can understand trying to present a front of confidence, but at

goldman. i don't mean to interrupt, but [speaker not understood]. so, we wouldn't monitor it with their contractor? so, we wouldn't do any monitoring, i think this is what the gentlemen are asking. do we do monitoring? and are you -- are we keeping track of it? and, so, i guess i'm just asking for the process. if we do monitor it, how do we monitor it? and are we making a commitment to monitor it? if it is not our practice to monitor it, then i think we need to state so, that is not our practice. >> what i would say under the current security contract with securitas, we are not monitoring their, their wage payment to their employees. if there was a grievance, we would investigate it. >> so, you're telling me that in order to monitor this or for it to be -- it needs to be red flagged first by a complaint from maybe an employee -- >> correct. >> -- that says, i am not being paid. so, gentlemen, i think this assertive for your information also. that in order for us to monitor it, then there needs to be a red flag that is -- it's an allegation that they

liz: the goldman sacks x trader had his day in court and lost.he sec go after other players? will they step up the plan? could this have any impact on the hedge fund insider trading? a former prosecutor ways and. 0i0i@q0y??ñ?ñ?ñ?ñ÷÷÷÷y >> here is a fox business brief the securities exchange commission accusing former technology to measure of agreement copy of insider-trading that he made a combined $7 million by using inside information with 12th of 13 quarterly releases. with an unspecified number of jobs in the newspaper division that says they're making the cuts in line with local market conditions and should come as no surprise married couples disagree on who should make the financial decisions. 36 percent of married women identified themselves as the primary decision maker of the 5% of men agree with that. this is the latest from fox business, giving you the power to prosper. >> did fabulous data as the u.s. called now faces the uncertain future after defrauding investors while at goldman sacks. less open the floodgates for more litiga