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

is john paulson goldman sachs coconspirator paulson and goldman came up with the idea of sellingmortgage securities to europe mainly to european pension funds and the reserve so that they would insurance on mortgage securities called collateralized debt obligations these are derivatives 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 paulson didn't say is that in fact while they are selling these 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 co

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

i couldn't convince goldman sachs to put its name on the deal, despite the immense fees that an ipo bringsthe analyst at the time that followed the company for goldman sac sachs, he pored over the financials, he looked at the product and he made a judgment. he made a judgment that the company, while having short-term momentum, most definitely, would not have my staying power. i was aghast. oh, man, i was looking at a big payday. i stood to make a big six-figure ticket to bringing the deal to goldman sachs. this analyst, though, he simply wouldn't budge! reminding me that this was goldman sachs, not some sclop firmed that put its name on any company just because it was hot. sure enough, we passed. and a couple years, the company failed. a victim of better technology and poor financial management. >> the house of pain. >> so take it from me, that's why the broker's pedigree matters and i would pass on deals done by firms that you have never heard of or have little or no track record with successful underwriting. doesn't mean that all ipo brought by goldman sachs would be a success, far from

. >> 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,

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 mac. when he was telling publicly and he told congress and therefore the public of america that they would not that they definitely definitely would not so they had insider information on that now let's look at this next headline soros is biggest holding a bearish call on the s. and p. five hundred now of course you would not know this listen to the mainstream financial news because they just focused on his long position on apple and his selling of g.l.d. the gold e.t.f. but soros fund management's biggest position is a put on the s. and p. five hundred e.t.f. s.p.y. sorest bought a put one million two hundred forty eight thousand six hundred forty three s.p.y. units in the quarter well the services make a huge negative bet and made him a billion dollars trashing the british pound he's made other multibillion dollar bets over the course of the years he's made billions of dollars taking the opposite

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 may double triple quadruple now they want to get out so that sell c. and b. c. they sound 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 notorious investment program to get all those zero 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 mac. . when he was telling publically and he told congress and therefore the public of america that they would not that they definitely definitely would not so they had insider information on that now let's look at this next

is it an overstatement to venture something like that could happen at goldman sachs?00,002 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 algorithmic trades that enable some organizations to shave pennies and get that much more sort of a head start on trades, how is this dangerous to the world out there? if there is a smarter, better mousetrap, great, somebody should be rewarded for that, but is it dangerous to the market? >> i think it is a tool, we'll use that that tool can be very dangerous in the same way we drive automobiles and sometimes we have an accident. how can we avoid these? it has to be controlled, it has to have regulars looking at this to make sure this i

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

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

cheryl: clarify your comments with goldman sachs. want to declare what you are saying, we are doing the best we can, dimming speculation in what is happening at the nasdaq, the nasdaq telling us it is a data error. we expect to hear from them at any moment but clarify your thoughts on the goldman sachs angle. >> the only goldman sachs angle here is like two days ago there was an issue with option markets from the outside 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

. >> goldman sachs, boeing, visa, i get from your book. >> yeah.i mean, again, many of them not terribly friendly to organized labor. >> in congress, as you say, he fought for labor. but then he went to work for spirit aero systems, overseeing a tough anti-union campaign. and then in the house he had supported a resolution condemning the armenian genocide of 1915. when he left congress he was paid about $70,000 a month by the turkish government to oppose the resolution? >> yeah. i mean, i guess the word, "genocide" goes down a little easier at those rates, right? i mean, i don't see any shame there. i don't -- again, he's allowed to change his mind for money. i'm allowed to be outraged. >> evan bayh, democrat from indiana. >> yeah, evan bayh was this, you know, two-term senator. he retired very, very extravagantly in the pages of "the new york times," about how washington is broke and how he was tired of all the yelling matches and partisanship and how nothing gets done. and he wanted to get into an honorable line of work. and a lot of his colleagu

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

a new york jury has found a former goldman sachs -- vestors back in 2007.hey accused a former trader of having misled those in europe about cdo. sec officials said he caused $1 billion in damages and violated u.s. securitiy s anies and exch laws. he allegationly sold them without providing posht information about the product, all the while anticipating their value to decline. those products were created together with the hedge fund led by john paulson. on the basis of the verdict, the u.s. district court is expected to impose a civil penalty on toure. sec officials said they were gratified by the jury's finding. goldman sachs settled the case in 2010 by agreeing to pay $550 million to investors. it reached that settlement without admitting any wrong doing. >>> indonesia's steady economic growth may be coming to an end. the latest statistics show the expansion stayed at the 5% level. that hasn't happened in nearly three years. spokespersons with indonesia's statistics bureau said gdp grew 5.8% in the latest quarter from a year earlier. that's the first 5% le

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

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

. >> stephen: oh, the angry mob wants a scalp, and goldman sachs c.e.o. lloyd blankfein is practically daring them with that thing. ( cheers and applause ). well, everyone can finally calm down. because we got him. >> it took five years but this morning the government is celebratings its first big victory in court, in its attempt to hold wall street accountable for the fnld crise. former goldman sachs trader fabrice tourre, known by his nickname-- "fabulous fab--" has been found liable for fraud for his role in a failed mortgage deal that cost investors $1 million. >> fabrice tourre is found liable for defrauding investors. it is a huge victory for the s.e.c. >> stephen: a $1 billion fraud out of a $22 trillion meltdown. let me do the math here and see what's going on here. and that is... my calculator won't take numbers that large. so how did-- how did the sleuths at the s.e.c. prove this mastermind knowingly misled his investors? he sent e-mails saying he knowingly misled his investors. saying, "the entire building is at the risk of collapse at any mome

last week, goldman sachs says it was taking steps to make aluminum more immediately available to customers. >>> u.s. federal energy regulators are going after alleged market manipulators. today the regulartory commissio threatened to fine bp of $20 million. accusing the traders of manipulating the market. bp says the allegations are without merit. >>> chevron will pay $2 million in fines for last year's massive refinery fire in richmond, california. the oil company also pleaded no contest to charges of violating the state's health and labor codes. investigators blamed the fire on a corroded pipe that burst. the fire sent thousands of people to the hospital, most complaining of respiratory problems. protesters were arrested this weekend in a demonstration to mark tomorrow's one-year anniversary of that fire. >>> microsoft is making another price cut, this time for its tablet surface pro, the company is offering a $100 discount. the move am coulds weeks after slashing the price of its less powerful surface rt by 30%. last quarter, microsoft took a $900 million write-off on unsold surface inv

people saw in this white house favoritism towards goldman sachs and the banks. the problem was the left populism has not emerged until now. for too long, many felt with the bomb in the white house that things would be sorted out. that is where movements become important. every administration in modern times has had to deal with insurgency's or movements on its left and right. reagan in many ways was a movement president. i say that with contempt for what he did in damage to this country. you need to see the pendulum has now swung. the tea party in many ways has lost a lot of this mojo because of overreach. it is out of sync with the values of so many people. we could have seen that in the summer of 2009. one of tea party people stood up and said "government, take your hands off my medicare." you see how internalized those programs are. >> who does not want to watch a car wreck? >> it has done a lot of damage. >> this tweet says the obama administration is responsible for the tea party. >> it opened a backing tree that hot summer of 2009 -- it opened up a vacuum

had to combat goldman sachs the whole time he was there.he absolute center of the sub prime mortgage crisis. he leaves to become head of global communications for guess who, goldman sachs. >> right. john: a senior white house official in this book says we are lapsing into self-parody. >> they might get spanked for a day or so but there's no price to place. the level of shame in washington is very, very low. the level of self-awareness in washington is very, very low. frankly there's no incentive to stop. >> john: can you stick around to talk because i need to talk some of this poison out of my system. >> happy to help. john: "this town" is on the book shelves now. [ cheers and applause ] xi @ bf7É')ia3;b!,x8=px that's our show. thank you very much for watching. i want to thank our live audience here tonight as well who likes a joke but weren't so sure about a weiner joke. i'm working with a high level of audience. please join us tomorrow tomorrow night. here it is, your moment of zen. >> anthony weiner, carlos danger will withdraw from the

it's brand new, and goldman sachs has had a bizarre trading glitch in its options area just a day ago. tell me what you think of what happened today. >> well, first of all, i woo sad that -- [inaudible] i think that's manager that couldn't be said -- something that couldn't be said a year ago. bob greifeld, obviously, something that he didn't think at all. he cannily, he was not on a plane, so his people were working hard to make sure everything went back. but again, technology's complicated. these issues will happen, unfortunately, but what we have here is a resolution in terms of controls. and i think that's something probably that nasdaq and the regulators have to work on to avoid things like this happening not only in exchanges like nasdaq, but also in trading firms like in the case of knight capital. ashley: but, look, to err is human, to really screw up it takes a computer, and when you have all of this information all coming in very complex systems, part of the problem was the nasdaq couldn't push the old reboot, reset button because it was so interconnected with all the other

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

. >> reporter: shares of pandora shot 6% higher today, thanks to a goldman sachs upgrade that dismissed competition concerns pointing to the promise of advertising growth. >> we had accelerating mobilization and starting to crack the biggest cost over hang on the company, which are the content royalty costs. >> reporter: pandora doesn't report until thursday but several other stocks gained on better than expected results. link inup and the stock hitting an all-time high monday after the analyst upgrade the the stock to buy on unexploited growth opportunities. groupon benefits from signs that the local mobile strategy is working, but perhaps the biggest fact tomorrow behind the 8% gain this month is news that interim eric is permanently taking on the ceo role. >> we seen the stocks do well in part because they have nicely beaten numbers on the quarter but the big picture there is they have shown success in migrating the mobile transition. >> reporter: not just social media stocks bucking the market's downward trend. two traditional stocks are also having a good month. vicom is up 7% afte