george, looks like the markets are shaking off the jitters from the goldman sachs news. hi beejal. yes, markets are. looks like there was a little bit of pressure on the market. especially after goldman sachs news last friday. and it looked like, oh boy, this may be the start of a correction. then, however monday if you noticed at the end of the day, the markets started trading higher towards the end. so it looks like the market's gonna look past the goldman sachs news and focusing more on the earnings coming out this week. yeah, you think earnings could actually provide a boost for the market. so, do you think is gonna continue to do that? yes, we really do. what we continue to still have is a formula for risk appetite. meaning good earnings, good growth in a very easy fed. and the fed, is not gonna tighten anytime soon. they made that very clear. so, people are gonna be searching for returns. they're gonna be coming into equities. ok, so you're still bullish then, bottom line? yes, we did trim some positions. we had a little scare after goldman sachs announcement, but we still are

goldman sachs? the s.e.c. charges against goldman sachs, that is. please vote. squawkonthestreet.cnbc.com. >>> bob pisani on the floor of the new york stock exchange. welcome back to "squawk on the street." there's over 100 ipos in the pipeline this year. the big issue? we've got a robust first quarter of offerings. what does that mean down the road, good news, bad news here? is it going to spike in volatility that we're going to see on friday, did that dampen the recent enthusiasm? we have a transaction services partner at pricewaterhousecooper with us. so, we called the ipo resurgence before. it happened a few months ago. looked like we were going to get a pop up. then all of a sudden, boom, it sort of fell off a cliff again. what's pushing the resurgence here? >> well, i'm not sure we've seen it fall off a cliff, bob. in fact, we've seen 31 successful ipos to date. but more importantly, we've seen over 60 registration statements for new ipos in the pipeline to date, right? and that compares to the prior year similar period where only two deals got done. and if you put that together with the fourth quarter, we've got over 100

>> caller: hey, jim, given the breaking news from the s.e.c. on goldman sachs today, how do you think some of their competitors such as deutsche bank and citi are feeling, and do you think they will see more cases brought against them? >> i think that the government likes to bring a string of cases, but where they go first is their best shot. although we saw that against bear stearns. it didn't work. the justice department lost. do i think that goldman will lose clients over this? i think anytime there's something bad you're going to lose a client or two. but you know what the clients are motivated about? making money. and if goldman provides moneymaking ideas, business flows right back. it's the nature of the beast. don in my home state of pennsylvania. don. donald, speak to me. >> caller: i'll give you a real big boo-yah from the phillies game here. boo-yah! >> i like that, but my dad and i were commiserating. you know, other than halladay no one's gotten past the fifth yet. these are things of course i think about while i'm debating about the goldman thing.

news that s.e.c. has filed fraud charges against goldman sachs. what is the "fast money" trade? and how do you play the news? you know jon najarian from option monster.com, and a cnbc contributor, and jon, anything that had to do with cdos is to the downside. the rating agencies for example, and mew oodies to the downside,d do you think it is necessarily fair and i know you are not into the policy side of things to paint a broad tar brush against the rating agencies at this point. >> well, i do, bob, because of this, when you look at what happened here, and of course, the firms that put together the cdos pretty much knew what the game was and they knew they needed high value mortgages up on top to basically offset the very high default rate mortgages that were down below, and they gamed the system, if you will, by doing that. and then the ratings agencies looked at this and blessed wit a aaa rating, so that is what michael lewis talks about in his book, and certainly how a lot of the guys made a lot of money, so that hit the rating agencies in 2008 and 2009, and they were recover

. >> sreenivasan: the goldman sachs news rattled wall street after two months of steady gains. the dow jones industrial average lost nearly 126 points to close at 11,018. the nasdaq fell 34 points to close at 2,481. for the week, the dow gained a fraction of a percent; the nasdaq rose a little over 1%. federal bank regulators came under fire today over the largest bank failure in u.s. history. it happened at a senate hearing on the 2008 collapse of washington mutual, commonly known as "wamu". democratic chairman carl levin of michigan lashed out at the office of thrift supervision. >> o.t.s. was a feeble regulator. instead of policing the economic assault, o.t.s. was more of a spectator on the sidelines, a watchdog with no bite. noting problems and making recommendations but not acting to correct the flaws and the failures that it saw. at times, it even acted like a guard dog. >> sreenivasan: the head of the office, john reich, denied he'd been too cozy with wamu managers. and sheila bair, chair of the federal deposit insurance corporation, said her agency did all it could. bat

would like to give us your story of how you have been affected, go to bbc.com. >> the bad news is that goldman sachs is under investigation, but the good news is that they have jumped in profits for the first quarter. you may remember on friday, american authorities accused of defrauding investors. goldman says the charges are unfounded. >> goldman sachs is the world's most influential investor bank. today it announced that the average pay and bonuses reach 33,000 with just 199 pounds for the first of the year. the financial services authority said it would investigate the firm after the faa who charged them with -- after they have been charged with fraud. at the time of the alleged offense, he worked on wall street, but is now based in london and is operating year by the affected -- and is authorized to operate here by the faa. >> we have never condoned and would never condone inappropriate behavior by any of our people. >> goldman is alleged to have ms. sold to an investment and 2007 to investors by saying -- failing to tell them that the hedge fund was expecting that it would be a colossal flop.

star gettic is targeting that's a big deal. >> rubin came from goldman sachs, a number of players in government have -- >> the head of the new york fed is former goldman sachs. >> is there any chance that paulson, for example, hank paulson, the former treasury secretary, knew that this was taking place? >> the s echec has been very targeted, they named one very specific goldman trader who was involved in that. >> 31-year-old guy working in london, yes? >> who was involved in instructing these products. so again i think we have to be very careful about speculating on how high in goldman this might go. but the fact that goldman is being accused of this, it's a really big deal and i think it also will have a great impact on the financial reform debate. we have seen a real tough thing of the position there and actually they're talking now about saying firms should be banned from trading credit derivatives if they want to have government backing. that would be huge. that would be revolutionary. >> and what do you think is the likelihood of that taking place, that financial firms will be much harshly regulated in the future? >> we

fed reg bill. >> turn up your volume right now because there are new developments related to the sec's fraud case against goldman sachssteve liesman broke news this morning and is going to break news again right now. steve? >> thank you very much. cnbc now has additional details that appear to contradict the government's fraud case against goldman sachs. the government says in its complaint that goldman represented to a financial insurer that hedge funds in the company would take an equity stake to apparently bolster the impression of the value of the underlying security. cnbc has reviewed documents however showing that a former top lieutenant to paulson has testified that

. >> two days in the midwest, andrea, even as goldman sachs dominates news in washington.in iowa today. very important. iowa, remember, was the place that began barack obama's political career. he won the iowa caucuses. everything came after that. remember, once he had secured the nomination, the democratic nomination, his first trip, iowa. this holds a very special place in his heart. he's going back there again to sell financial regulatory reform, to sell the economy moving forward. this is the start of barack obama campaigning very aggressively, at least we expect very aggressively, for 2010 candidates, democrats running for governor, senate and house. >> and, of course, he's going to a couple of places in iowa where the unemployment rate has just as every place else in the country, has really bounced up since he was back there in 2008. but then he goes on to illinois. and illinois, of course, has a lot of political pitfalls for him right now. >> you know, his home state, andrea, you would think it would be a wonderful homecoming and he would look forward to going back

news tonight on two staples of our diet. >>> making a difference. remembering a passionate and inspiring woman who dedicated her life to fighting for others. >>> how much did goldman sachs just make? "nightly news" begins now. captions paid for by nbc-universal television >>> good evening. we may be at this for months. no one knows what this volcano in iceland is going to do. tonight after a scare over a new cloud of volcanic ash, the airlines are bound and determined to get back up in the air. and tonight we've seen the first few flights land at london's heathrow airport. this was the scene there tonight. european air space slowly comes back to life again. we can see it on live flight tracking systems like this one. yellow icons are jets in the air. you can almost see the ash line through europe north to south. while ireland and parts of germany are still restricted, others countries are coming back online after six days of no flights. not knowing what the future of this volcano may bring. we begin our coverage with dawna friesen at london heathrow airport. >> reporter: good evening, brian. here at heathrow for a while now the only sound you could hear was the sound of

the financials have grown into a little bit of a snag with the news from goldman sachs. but the rest of the market is looking pretty good. look at the broader market. yesterday we saw the russell close at new yearly highs, around 7035 i believe. looking very strong. looking at a couple sectors within the market. look at a home building sector, the x h b going to new yearly highs. and x r t, which is a retail e t f has also exploded to new highs around 4478. so, you are seeing some sectors catch fire now the market seems to have stabilize from the goldman news. let's take a look that retail chart. that is interesting because that means that the consumer is out there spending. so, is this going to continue or do you think they're going to get scared off and worry about the economy? right now, it looks like a consumer is some what supporting this market, even with all the bad housing numbers. not so much, i mean, we did get good numbers from existing homes. now this morning we're also seeing new home sales. let's see. hopefully that number will lead us to new highs coming in

goldman sachs and the financials all day long. from now on financial-free zone rest of the show. promise. believe it or not, there is news outside of goldman sachs. i know you're shocked. it is, after all, the biggest week for tech earnings, kicks off next week on tuesday when america's favorite stock, apple, reports earnings. so it's time to make the call. but before we get to apple let's talk tech broadly. some pretty big moves expected, and of course we got google earnings yesterday night and then we saw some big action today in the stock as well as the entire sector. >> well, listen, we make this point all the time. google is also a very company-specific story. they dominate their field. and they actually generate, you know, 97% of their revenue is from one product. they don't give guidance. they're really cagey with the street. so this is a stock-specific story. earlier in the week we saw intel. that is a much more macro story. they sell across geographies, to a lost different businesses. the guidance out of intel was fantastic. so i think the macro picture for tech looks really good. okay? but then again we're at 5

news. a google search of the terms s.e.c. and goldman sachs yields a paid advertisement for barackobama.com and today senate democrats pressed their plan in the face of uniformed opposition. >> this comes down to a basic question, whose side are you on? >> reporter: the democrats' proposal would create a new consumer protection agency, require government scrutiny of complex financial transactions and require big firms to have more capital on hand and less debt. republicans have argued a $50 billion fund to be used in case large firms fail amounts to a bailout. >> the very existence of this fund would perpetuate the risky behavior that led to the last crisis. >> reporter: democrats point out the fund would be paid for by the financial firms themselves, not taxpayers and in his weekend address the president slammed the republican leader. >> he made the cynical and deceptive assertion that reform would mean future bailouts when he knows it would do exactly the opposite. >> reporter: americans are expressing disgust with government. in a pugh poll

. >> news started out the week cal, about the sec investigation of goldman sachs. a lot of speculation about the timing. beating up on wall street in the same giant wall street firm at the sometime the president is getting ready to crackdown on wall street. rahm emanuel went on the charlie rose show and said that. listen to this and then your reaction. >> how is it "the new york times" knew about in before goldman sachs did, the filing of the complaint? >> i have no idea. >> soon thereafter, literally within an hour or so the white house was in terms of information -- >> everybody at the white house found out like everybody else, when it hit the news. >> when it hit "the new york times." ? >> no when it hit the news. sec is an independent agency, operates independently, nobody at the white house knew anything ahead of anybody else. >> there you go. >> if you google goldman sachs and sec it takes you to barack obama web page where you are invited to sign up presumably for petitions on this anybody who believes rahm emanuel on this >> you think his nose was growing?

and myself at 7:00, "fraud on the street, the case against goldman sachs" join us then and then the final hour of trading on the goldman newsmeanwhile we hand it off to the "closing bell." . >> goldman sachs under fire, and the s.e.c. taking aim for the financial giant, and they are facing fraud for financial securities. straight ahead, the financial and political implications, and what does it mean for your money? who stands to win and lose? how will the markets react in the critical final hour? we have investors and wall street players sounding off as we enter the final and most important hour of the trading day right now. >> welcome to the "closing bell." i'm trish regan at the new york stock exchange in for maria bartiromo. washington's war on wall street is heating up though right here in the critical final hour where we are seeing signs of resilience among investors. the stock market selling off sharply today on the heels of the major announcement that is sending shock waves across wall street and main street. the securities and exchange commission hitting goldman sachs with fraud charges related to subprime mortgages

the broader issue, of course, that goldman sachs faces, is that every time they have to defend themselves against a new allegation, whether it's this charge by the s.e.c., whether it's the situation with cit, aig, they are having to face down the notion that perhaps they have a corporate culture that puts clients second. guys, know they're keenly aware to this, because their letter to shareholders this year referred to clients 56 times and lloyd

in that investigation. >> a lot of news breaking on goldman sachs this morning. thank you, david muir. >>> for more on this, we're joined by susie welch. also economics correspondent, john sizeman. these profits, are -- david said, so much is at stake here. >> the reputation is at stake. but if there was a day that goldman sachs wished their result were not so good, it would be today. in the middle of the controversy, suddenly what people are mad about, is that goldman makes so much money, and perhaps profits off of others not understanding. can they get more money? >> john, a lot of politics at play here, as well. we learned that the s.e.c., the securities and exchange commission, investigating goldman, it was a split vote, 3-2, for the investigation. republicans voting against. it comes at a time when the financial regulatory reform also being debated in congress. this could lead to some tough questioning for the s.e.c. chair, who is before congress today. >> right. it could. but, you know, at the end of the day, i think this is just the beginning of a process

in the agency's first public statement since that news about goldman sachs broke on friday, the s.e.c. enforcement director, robert cue sammy tells us, and i quote, we have brought and will continue to pursue cases involving the products and practices related to the financial crisis. now, lester, the language here that's most critical is "continue to pursue." officials tell me that pursuing financial fraud is a top priority right now at the s.e.c. and that they have a wide range of cases that they are currently looking into. they also point out that they are better equipped to handle some of these investigations because there has been a restructuring within the s.e.c. so that there are now specific groups that are targeting specific kinds of fraud. so, really, the bottom line tonight, lester, from the s.e.c. to wall street, watch out. >> trish regan with that late update. thank you. >>> when "nightly news" continues, a look at what iceland's volcano may be doing to the air we breathe. >>> and up next, we met him here on this broadcast. a man making a difference for some d.c. school ki

it was 2007, and cbs news was reporting that across the country, the housing bubble was beginning to burst, but on wall street, some goldman sachs executives were cheering. "sounds like we will make some serious money, "bon goldman banker e-mailed another, referring to bets goldman made against the housing market, called shorts. "good news. we make $5 million." another e-mail as a california subprime mortgage maker went belly-up. and this from goldman c.e.o. lloyd blankfein: "we lost money then made more than we lost because of shorts. >> they were self-interested promoters of risky and complicated financial schemes. >> reporter: michigan democrat carl levin is chairman of the subcommittee investigating the role of investment banking in the housing meltdown. he made the goldman emails public. >> they bundled toxic and dubious mortgages into complex financial instruments, sold them to investors, magnifying and spreading risk throughout the financial system. >> reporter: in a statement today, goldman sachs again aserred it lost money in the mortgage market, $1.2 billion in one year. and said the senate subcommittee "cherry-picked

new zyrtec® liquid gels work fast, so i can love the air®. >>> two goldman sachs shareholders have filedtop executives. they are related to the fraud charges the s.e.c. filed last thursday. well, the complaints were filed yesterday in new york state supreme court. goldman's officers and the entire board of directors breached their duties by their alleged link to subprime mortgages. the s.e.c. accused goldman sachs of failing to reveal conflicts of interest which led to $1 billion loss for investors. >>> the s.e.c. is in some hot water of its own. an internal investigation found s.e.c. employees and contractors were cruising porn sites on government computers. apparently this was happening at the peak of the country's financial crisis to add to it. a staff accountant tried to access pornographic websites nearly 1,800 times over a two-week period. a spokesman says the employees involved have been or are being disciplined. some of have been suspended or fired. >>> gunmen ambushed and killed seven mexican police officers in the border town of ciudad juarez. now, so far no arrests have been m

a list of babylon produce occurred i client as, how did goldman sachs get comfortable with this bill? goldman sachs pointing out that it was a new century. goldman sachs did not respond and did not say, we are not comfortable, we are shorting against it, betting against it. asked a direct question, how can you get comfortable with a deal involving those loans, and instead of responding honestly, we've got problems, too, we are not taking chances on this bill. we may be selling at but we are betting against it. the clamp was told that goldman was an equity holder, which it was at the same time, but that was a half truth, because it was betting against that same security. that cdo failed within seven months. your client lost, goldman profited. the $2 billion synthetic cdo, the sole protection by air on this cdo, a $2 billion short. they were betting against it. goldman sales person described it as junk, not to the buyer, of course. the cdo employed within two years. your client calls, goldman profited. there is such a conflict to me when goldman is selling securities but particularly when its own people believe they are bad items,

goldman sachs has been in the news. do you fundamentally believe and can you promise your constituents that with your bill goldman sachs could not do what they are accused of doing, obviously they've not been convicted of anything, but what your colleagues are saying that they play both sides and they really hurt taxpayers. >> i think that this bill really strengthens the hand of the oversight agencies that would watch goldman sachs of any other company that tried to do what they're accused of doing. that's only an allegation, but a serious one, that they were playing both sides of the street, if you would, selling a product, then basically betting that it would fail. and that to me is the wrong thing to do. it's the kind of thing that makes people so cynical and upset with what's happening on wall street. if you want to make that provision stronger, you bet. i'll join republicans in doing it. if they want to water it down for some bank interest, i'm not for that at all. >> you said in the past, this is a quote, the bank

especially recognizable. >>> wall street giant goldman sachs is getting called out by the sec for what it says is fraud. adam shapiro with fox business network is live in new. goldman sachs is supposed to report earnings. tell me in plain english what the sec is charges goldman sachs with. >> that is a great question because it can get real complicated if you use wall street terminology but in reality, it is very simple. good old-fashioned nasty and horrible fraud. lets a say i come to you and i say build me a house but i am going to give you all of the materials to build that house and they will be explosive, inflammable and guarantee to burn down one month after you finish building the house and sell it to somebody p i want you to sell the house with the bad materials to everyone without it would being them i provide the the nasty materials and two that i have purchased insurance that the house will burn down and i will collect when it does. that in a nutshell is what goldman is accused of doing. there is nothing also illegal by goldman also buying insurance that the house will burn down. what the se cri. says is potentially fraud is they didn't tell the

it's all happening as new e-mails suggest goldman sachs, facing fraud charges, knew it would profit offconsumers losing their home. >> these e-mails signify there are all kinds of conflicts of interest in wall street. >> reporter: conflicts washington is trying to eliminate. republicans and democrats say they're close. we'll know for sure tonight. that vote is expected to happen sometime this afternoon. tracie potts, nbc news, washington. >> democrats need one republican vote to begin the debate. democrats and republicans working on this say they're optimistic, saying they each reach an agreement in a week or two. >>> an arizona congressman say it is obama administration can't help defeat the toughest immigration law. thousands turned out in phoenix to show opposition to the new law. on friday they signed a law that allowed police to ask for identification of someone they believe is in the country illegally. it toughens restrictions on hiring immigrants for day labor and transporting them. the law could take effect this summer. it's almost certain to be challenged in the u.s. supreme co

news. scott cohn reporting this morning on john paulson's first comments since charges were filed against his trade with goldman sachs. he obviously was not a part of the charges, but he's going on the offense. and steve liesman just broke a big story on the charges against goldman. so, let's start with you, steve. >> erin, thanks very much. cnbc has learned that the government has testimony from a former top paulson official appearing to contradict a part of its own case, specifically, cnbc has reviewed documents that questions the government's contention in its case against goldman sachs that the wall street firm misled the insurance company aca about paulson & company's intentions to short the deal. the government's complaint reads "unbeknownst to aca at the time, paulson intended to effectively short the rmbs portfolio it helped select." however, cnbc has learned that a top paulson official, paolo pellegrini, told executives that they intended to short the portfolio. they asked him about a meeting with laura schwartz -- "did you tell her that you were

new e-mails from goldman sachs boasting making about tons of money as the nation's housing market tanked. tonight, more on those damaging e-mails and why goldman says it did nothing wrong. plus... outrage and vows to challenge the arizona's new law targeting immigration. >> we can't stand idly by add kidnappings and violence compromises our life. >> the law is unconstitutional. it makes all hispanics second class citizens and we will not stand for that. >> ahead, why the state's governor says critics are overreacting and what effect it could have on our relationship with mexico. >> from parts of your car to parts of your body. how a major turnaround for a factory created new jobs. >> now to arizona, the immigration law there one day old but it's triggered massive protests. opponents say legal challenges are on the way. the governor signed the lay. its sweeping measure and now the touchest legislation against illegal immigration. among other things, the law makes eight state crime to be in the country illegally. something usually left up to the feds. it requires police to demand proof of

todd and kelly o'donnell delving into the political fight over financial reform in today's news from goldman sachs and the s.e.c. >>> plus, 15 years after oklahoma city, rachel maddow joins us. >> he's got this adrenaline pumping, but you force yourself to say calm and -- >> and send me your thoughts. you can find me on twitter at mitchell reports. [ woman ] nine iron, it's almost tee-time. time for new zyrtec® liquid gels. they work fast. so i can get relief from the pollen that used to make me sneeze. with new zyrtec® liquid gels, i get allergy relief at liquid speed. that's the fast, powerful relief of zyrtec®, now in a liquid gel. zyrtec® is the fastest 24-hour allergy medicine. so i'm ready by the first hole. with new zyrtec® liquid gels, i can love the air®. [ male announcer ] this week only, save up to $12 on zyrtec® products at zyrtectv.com and in sunday's paper. >>> monday marks 15 years since the oklahoma city bombing, the nation's worst home grown terror attack taking the lives of 168 people. up until now, timothy mcveigh has never been heard publicly admitting to setting the bomb. his

new york. >> rose: the great biologist from harvard e.o. wilson taped an interview today. we'll show it to you at a later time. tonight, more about goldman sachs and a memorial to franklin delano roosevelt when we continue. captioning sponsored by rose communications from our studios in new york city, this is charlie rose. >> rose: goldman sachs announced huge earnings days after the government accused the legendary firm of fraud. goldman reported its first quarter profit rose by 91% to $3.5 billion. this is just the latest sign that the bank has emerged as one of the strongest survivors of the economic crisis. last week the securities and exchange commission accuseded the firm of selling a financial product that was bound to collapse. joining me now from berkeley, california, michael lewis. he's the financial journalist and author of "the big short" number one on the "new york times" best-seller list with me at the table, david boies, an attorney who has represented both major corporations and the government in high-profile cases including the microsoft antitrust case. and andrew ross sorkin of the "new york times." he is a columnist in and e

goldman sachs during this 2008 campaign. alan colmes is host of the alan colmes show on fox news radio. the criticism is, you come out and say, goldman sachs, they are the devil. we have the sec cracking down, then you have an afeel people saying please donate to my coffers. >> oh obama and only democrats took this money and now they are going to crack down on the people they took money from and that's bad. as if wouldn't it be the other way around? if they took the money and didn't crack down on them then it's pay for play. megyn: the problem piece are raising is we saw at sec file this lawsuit against goldman sachs alleging fraud. some came out and said the timing was political. they could have brought it any time, and they did it now to provide support for the mid-term elections. and sure enough right after we see that allegation we see the white house trying to raise money off the sec charges. >> you are an attorney. defense attorney. have you ever -- is there any proof there is collusion between the white house and sec? anything that proves that? so obviously the sec is running inde

. >> and wall street bank goldman sachs reported its first quarter profits doubled. the news comes as the bank is dealing with legal problems. the securities and exchange commission filed several fraud charges against the company and the company is coming under scrutiny overseas. britain had begun an investigation into goldman sachs international, the london- based operation. >>> protecting your child from predators. a child abuse expert joins us in the studio with ways to keep your children safe. >>> and the secret iphone iphone prototype left in a bar. is it a hoax or is it real? >>> plus, a really close call in ohio. video captures a construction blade going out of control. >>> and looking at westminster tonight. sitting at 64 degrees. rain's in the forecast. wyatt's got the details coming up for us in just a few. now pay just $99.99 a month for verizon fios tv, internet and phone -- guaranteed for two years! it's an amazing offer that could save you hundreds of dollars. call now to lock in this guaranteed low price for two years. with 100% true fiber optics to your home,

from the fraud allegations against goldman sachs to thei ms call this week for new taxes on banks to cover future bail-outs. in new york, on thursday. president obama will renew his call for financial reform. in a speech, which he himself has trailed. >> we have to have basic rules of the road in place to make sure investors and consumers, shareholder as and the economy as a whole, are protected against access. are protected against wild gambles taken purely because it's good for somebody who's year in bonus. >> there are signs that change is coming. on wednesday senate committee recommended putting limits on the banks involvement in the derivatives market. controversy on future trading very lose with. the senate soon to vote on a /tphaoeupbl packet. republicans are soon to come on board. >> i'm optimistic we'll get a bill and it'll be a good bill. we're not there yet but i think we're closer than we've ever been. >> with november's midterm elections on the rise no politician wants to be seen to favor bankers over consumer which is is why the omens for a bipartisan agreement are good

new york city thursday to pitch financial reform in the shadow of wall. but today, the white house spokesman denied the government's fraud case against financial giant goldman sachs with time to provide political advantage. >> the sec is by law an dependent agency. it does not coordinate with the white house. >> goldman stock fell nearly 13% friday on the news the suit, but gained 1.6% today. our number one political story, the state of relations between the obama administration and israel. today, israeli defense minister ehud barack growned ail nation with the u.s. but prime minister benjamin netanyahu seemed to down play any tension. listen. who's to blame? >> i think any family with any relationship, relationship of allies, you have ups and down, you have disagreements. but i think this relationship between the united states of america and the people of israel is rock solid. >> you met with the president on march 23. an extraordinary visit to the white house, and no public picture. apparently kept you waiting in the roosevelt room. >> i don't know how the meeting was perceived, but i don't think there was any such intention on the part of the president. i thin

goldman sachs story? does that have an impact in confidence people have in wall street? or is that inside wall street, washington beltway types story? guest: it probably does. the stock market took a hit after that news goldman sachs' stock was down. we will have to see how that plays out. investors are worried that is not the only shoe to drop. there are other companies that are under investigation. there are other things to be found out. host: we are talking with martin crutsinger. mike joins us. how did this map come about? marty indicated you went to school to learn how to do this. guest: we were trying to figure out a way to show where the stress was being felt the worst around the nation. we wanted to look at the different points along a downward spiral. first you lose your job, then you cannot make your mortgage, then your file for bankruptcy. we thought these three variables would be a nice measure for getting a sense of the economic pain all around the country, and especially at eight state and county level -- a state and county the level. host: what surprised you most? guest: the variations. what was the most startling was looking at the changes from october, 2008, and how the pain of the r

new immigration law. stay tuned for that. >>> and profanity at the goldman sachs hearing.ry. [ man ] ladies and gentlemen, the 57th president of the united states. ♪ ♪ ♪ [ bell rings ] ♪ [ male announcer ] at&t. the nation's fastest 3g network. this mother's day, get 50% off all messaging phones after mail-in rebate, like the pantech reveal, only from at&t. have put their faith in sun life financial. we should be a household name. and we will be. so you're suggesting that we change our name from florida, the sunshine state, to...? florida -- the sun life state. the posters will be so cool. sooner or later, you'll know our name. sun life financial. >>> lisa sylvester's monitoring some of the other top stories in "the situation room" right now. what else is going on, lisa? >> hi, wolf. >>> well, the only man accused of shooting malcolm x has been paroled. 69-year-old thomas hagan has been on a work-release program since 1992, which required him to spend only two days a week in prison. two other men convicted in the killing were paroled in the 1980s, and they have all said th

another e-mail released is from goldman sachs ceo lloyd blankfein himself in response to a message about a newsarticle was going to say that goldman dodged the mortgage mess. blankfein responded, quote, of course we didn't dodge the mortgage mess. we lost money, then made more than we lost because of our shorts. also, it's not over so, who knows how it will turn out ultimately. shorts here meaning short positions or bets that the market will go down. a goldman spokesman says the senate subcommittee that released these e-mails, quote, cherry-picked four e-mail threads to release out of 20 million pages of documents this company provided and that goldman actually did lose money in the mortgage market in 2007 and 2008. goldman sachs, we should mention, is also facing a civil lawsuit by the s.e.c., alleging fraud, but that case could take years. and it is also completely separate, alex, from tuesday's senate subcommittee hearing. tuesday's hearing expected to gather some momentum for financial reform here, alex. but a lot going on with goldman. >> could be a few fireworks on tuesday. >> yes, yes. >

goldman sachs cost investors $12 billion, they gave out another $5.4 billion in bonuses. even somali pirates are going, come on! >> brian: that's true. goldman is actually in the newse been an amazing story had there not been a fraud charge. >> steve: that's right. maybe the news we're about to give you could make the government's case because just an hour ago, goldman sachs reporting huge profits in the first quarter of this year. its profits nearly doubled to $3.3 billion, largely way above the estimates. company says it's setting aside 43% of its profits for employee salaries, down from 50% last year. really cutting back. of course, this comes as the sec hits goldman with fraud charges last week. courtney. >> the space shuttle discovery reenters the earth's atmosphere at 8:36 eastern. then it will streak across the sky on its way to kennedy space center in florida. that's where we find our own orlando salinas. what time is the touchdown? what's going on down there? >> courtney, so the touchdown is scheduled for 9:08, just under 34 minutes and 20 seconds. nasa says the trend continues for improvement. that's a good sign. a little while ago, nasa did give the comm

goldman sachs. little chucky schumer there right out of new york got the most money from goldman sachs.obama got money from goldman sachs. so you need to put the demos up on the firing pine, as we like to say. host: back to the newspaper articles, this in the "financial times," the u.s. v. goldman sachs, case likely to spur efforts on finance reform, as we continue to talk about this with louise story of the "new york times." what kind of reform might we be seeing based on behalf the congress, what the democrats are trying to do, and based on this particular case? guest: well, loft aspects of financial regulatory reform don't actually dress what went on, according to the s.e.c. in this case. so perhaps even out of this case we'll see other proposals created. the financial reform package focuses on derivatives clearing . i don't think, you know, clearing any derivatives in this case necessarily would have changed this, and it focuses on protection and there wasn't a direct component of this. but perhaps you'll see calls for more of these. and i think stepping back, one of the things that

new gm. . >>> from goldman sachs to the political economy, political broads in the u.s. d the uk, we have a lot to talk about. eliot spitzer a columnist for slate.com, the former attorney general of new york. andrew ross sorkin, the chief mergers and acquisitions reporter of the "new york times." martin wolf, and amity shlaes a senior fellow at the council on fellow relations, and a columnist for bloomberg. eliot, let's assume that i am a big oil company, i want to in some way mitigate the exposure i have to oil. if oil goes up, i'll do fine. what happens if oil goes down. so let's say i want to make a bet that the oil market will go down f it goes down i have -- my balance sheet doesn't look awful. i go to goldman sachs and say find me somebody who wants to take the other side of this bet. what is wrong with that? that is, in effect, what goldman sachs is charged to have done. allowing john paulson to select securities. they're denying it, i'm saying even if he did that, isn't the whole point i have this bet, find somebody to get against me. >> those on one side of the b

news, london. >> couric: now to the continuing saga of goldman sachs. the wall street giant reported today that its profits in the first quarter of this year nearly doubled, coming in at close to $3.5 billion. but the focus continues to be on the civil fraud charges the government filed against goldman. our senior business correspondent anthony mason has the latest on that. >> reporter: goldman sachs should have been celebrating its $3.5 billion profit. instead, goldman stock slipped further as executives defended themselves against accusation it is company deceived investors. >> we would never intentionally mislead anyone. certainly not our clients or counterparties. >> reporter: the fraud suit, which accuses the firm of creating an investment designed to fail signals a more aggressive s.e.c.. >> clearly, this is a different way that the s.e.c. is doing business. they're really sending a message to wall street that there's a new cop on the beat. >> reporter: former s.e.c. investigator robert heinze says the agency was embarrassed by its failure to heed

goldman sachs executives went nearly 11 hours. see this at the c-span video library. every program since 1987 is free online. >> now a discussion on job creation with new york city mayor michael bloomberg and larry summers. this is part of an event hosted by the center for american

news". >>> the recession is apparently over for one part of the country. we'll show you where and how they did it. plus, goldman sachs under fire and congress wants answers. a report from the capital tonight only on the "cbs evening news." >> announcer: h this portion of the cbs morning news sponsored by intuit. stay on top of your business with quick looks on line. try it for free at intuit.com. just choose a style, then customize, publish and get found. sweet. get a 30-day free trial at intuit.com. at cousin everett's blueberry farm to talk about our blueberry juice drinks. they're made with my sweet, ripe blueberries, packed with th-those antioxidants that are good for ya. tastes real good, too! to give you an idea, let's whip up a quick sample. or you could just try this. [ chuckles ] yeah. ocean spray blueberry juice drinks. real blueberries, real good. >>> in los angeles, the hollywood sign has been rescued again. the big sign overlooking the city was threatened by construction of near account by estate homes, but "playboy" magazine founder hugh hefner donated $900,000 to complete a $12.5 million fund-raising d

announcement comes just days after the government said it was suing goldman sachs for fraud and it comes just as congress pushes for new regulations on wall street. >> contains republicans ideas and democratic ideas. it's good for consumers and for everyone who favors economic security over reckless mistaking. >> it's important for the country and the taxpayer that we get this right. >> president obama will take his case for financial reform to wall street's backyard. he is traveling to new york on thursday to speak at cooper union college where he is expected to urge congress to act quickly and pass new wall street regulations. >> we are going to check on rush hour traffic right now. dave calhoun is in for patranya. tell us about the trouble spots tonight. >> we have a few of them. we are working the accident eastbound, this is the afternoon to northbound i-295. the ramp remains closed. an overturned truck is there. hopefully they will be moving that shortly. let's move into virginia, westbound i-66. a couple slow spots from the beltway to 123. you are looking at an extra 10 to 15 minutes and again on the brakes from

>> well, erin, goldman sachs, we had a target of 185 to 195, where it was trading, you know, before friday's newswe were starting to take profits and getting out of goldman from recommending it on your show the day after thanksgiving 2008. so but the financials in general i think jim is right. the trend is up. the fundamentals are good. why we are a little bit hesitant and gone from an overweight to -- as far as underweight on the banks and an equal weight on the financials in general is just the inherent risk of if you look at the earnings, and the progress that they have made, most of it has been proprietary trading, and the derivatives. and with what is going on now, with bank, looking at regulatory reform, and the added, you know, catalyst now, with the goldman suit, i just think that a lot of their lucrative areas are, you know, might be restricted and a great source of profits, you know, might be lowered. i think it is going to be a difficult time period for the financials. you have to be in the right ones. for example, citigroup earnings were good, everybody is doing the right things, but

goldman sachs, charging them with fraud. now 24 hours after the head line first broke, the question now, is this just the beginning? as the president pushes for sweeping newaws to regulate wall street. david kerley in wall street tonight. >> reporter: goldman sachs declares it did nothing wrong. but with the closing bell, the gold standard of investment banks saw its value drop $12 billion, after being charged with cheating some of its customers. the allegations may energize reform efforts. >> the civil suit raises the level of awareness of the deceit on wall street. selfishness and self-serving behavior that needs to be regulated. we might have got financial reform without it but this makes it more likely. >> reporter: according to the government goldman defrauded customer by selling a mortgage backed security designed to fail, allowing another bank to make millions as the housing market collapses. it's a tough blow for the storied firm whose leaders went on to serve in government. >> if we don't change what led to the crisis, we'll doom ourselves to repeat it. that's the truth. >> reporter: president obama called on republicans to back reform and called

news of the s.e.c. fraud accusations against goldman sachs. it's a pleasure to be seeing you. >> i'm so leap to be here, dylan. >> here's my question for you -- do you believe that the goldman sachs fraud case, forget whether it has merit or not or what its outcome is. is indicative of the type of business practices that were common at merrill lynch? deutsche bank, ubs, lehman brothers, and the rest of goldman sachs, who were the firms that were the most aggressive with this type of trading and security in general? do you believe that there is, if we once we start pulling, we're going to see a lot more of this? >> this is certainly not an isolated example, dylan. i mean i think that some of these securities that were underwritten by all the firms that you mentioned, might be different in little nuanced ways. but what we're talking about is, yes, a really overarching effort to figure out a way to short the mortgage market. to bet against the mortgage market. not only for their customers in some cases, like mr. paulson, who was the hedge fund ma

goldman sachs. here's one internal goldman sachs e-mail that came out of ceo lloyd blankfein, new head of goldman.rote, "of course we didn't dodge the mortgage mess. we lost money. then made more than we lost because of shorts." here's another. he wrote "anyway, not feeling too guilty about this. the real purpose of my job is to make capital markets more efficient and ultimately provide the u.s. consumer with more efficient and ultimately provide the u.s. consumer with more efficient ways to leverage and finance himself so there is a humble noble and ethical reason for high job." >> this guy is now famous as being the guy who concocted, i have to be careful about the law, somebody concocted the idea you make $1 billion by getting somebody to invest $1 billion in a bad deal. >> you can bundle some subprime mortgages and sell to investors but bet against that loan so you make money either way. >> do you realize the i.q. that has gone into these guys, that think up these scams or schemes or plans, had it gone into, like, solving cancer -- >> well, it used to when finance was a much smaller percentage