i can tell you we talked to harvey pitt, think we have a quote from harvey pitt, he said no. foremost security lawyers in the country, the ceo departure is immaterial. they forced him out, citigroup didn't do that. also said basically there we go, i haven't heard the sec is looking at it per se, but i believe the sec is looking at it. he knows something he doesn't want to talk about. in a free enterprise economy, who knows in a few months, companies boards can take proper action about their ceos. i think you can make a good case vikram pandit should be out. but you do have an obligation in terms of disclosure to do certain things. it has never been a more messy or sloppily disclosed ceo ousting, whatever you want to talk about it, then this one. and not only that, if my sources inside citigroup very close to vikram pandit, they have told me that he was ousted, we were the first report that, that is not what they publish. cheryl: he was here already. he was sent over in january of this year, and back on the ground. and that just looks bad or something else. >> you're making a

harvey pitt joins us. if i spend the time introducing everybody else we won't have any time left for this show. michelle, first to you. this is what you do. you're the best in the world at it. how does a filing screw up like this happen? >> companies get these -- the filing agent can get the filing in advance. earnings release in advance. and obviously what happened here is someone pushed the send but the an little bit too quickly. they're supposed to get approval from the company. in this case google before they actually send it out but that didn't happen here. >> you don't think there is any possibility it was a disgruntled employee and this is purely a mistake? >> i would have no idea if it is a disgruntled employee. they did merge with another company a couple of years ago. it could be anything. but i would say it is probably just a mistake. >> to mandy's point, because this is what you do, you track this kind of stuff, how often does this kind of thing happen? >> it is very rare. i can't think of anot

chairman harvey pitt. welcome back to the network, mr. pitt, after the technical problems we had.ere saying how concerned you were about the timing of the vikram pandit departure. in particular now, the revelation that it may have not been voluntary. if you were the chairman of the s.e.c. now, would you be ordering an investigation? >> i would indeed. i think this is something the s.e.c. needs to investigate to find out why the disclosures were so confused and apparently inconsistent with what the facts may actually have been. >> and is there a legal liability there, therefore, for shareholders? >> i think there is. companies are required to get their disclosures right, and they are required not to mislead investors. having two separate announcements plus an affirmative statement that the resignation was voluntary, if that is, in fact, not correct, would appear to create violations of the federal securities laws. >> and from your knowledge, from what you've read, from what you've seen, why do you think that happened? >> i think some of it may be a concern, when somebody's d discha

harvey pitt, thank you very much. this comes from fox businesses charlie gasparino that we are expecting the sec to announce in just about 20 minutes that the financial markets will be closed again tomorrow because of hurricane sandy. we will keep an eye on that every get the latest news and details as they become available. melissa: we will have an update on sandy path. ashley: it is shutting down most of our nations capital. a live report from d.c. on the way. ♪ [ male announcer ] this is the age of knowing what you're made of. why let erectile dysfunction get in your way? talk to your doctor about viagra. ask ifour heart is healthy enough for sex. do not take viagra if you take nitrates r chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience sudden decrse or loss in v

we ask harvey pitt. welcome back, tell me, what are you expecting tomorrow?will be a lot of volume and demand? >> i think there will be a lot of volume, and there will be significant amount of selling pressure at the beginning of the day. that tends to be what happens with the markets have been shut forriric -- extraordinary circumstances, this is what we experience ed oexexperienced on. gerri: interesting. they have been closed for two weeks, you are expecting a lot of demand or volume, does it make a difference have you dark pools out there? >> well, that is been some thing that has men that closing of the exchanges is not had that great an impact. large institutions can trade in the dark pool venues, and people can trade overseas, there has been trading overseas. so by and large, there has not been as much of a shut down as there 1 woul would -- once woule been but there will be selling pressure first thing in the morning. gerri: all right, we'll watch for that, i wanted to get you to pond to comments from arthur levitt, former ftc chairman, criticizing ne

i will say this, we have asked harvey pitt, major white-collar attorney, wayne state university law professor, waited out pretty clearly two different opinions. he says this could be bad if they can prove they knew he was posted as we reported first and they go around and started saying it was his choice and by the way they should have disclosed it during the conference call to all investors, they had an obligation to expose everything i know, this could be a problem for citigroup. the only time they have to disclose that a guy is leaving his when he resigns. technically he did not resign during that conference call. so their disclosure requirement the minute he resigns to basically say he resigns. liz: what about this was all pandit's decision, which they stood by the next day. can they be busted for lying to investors and shareholders? speaker that is what he is saying. that is a problem. says there's a lot of gray area, for example pandit did not know during the conference call. they have analysts look at his voice patterns, hired an outside consultant firm to see how he was present in ear

legal experts like harvey pitt said yes, that is a disposable event.the minute you know something like that you should tell analysts especially if you're doing earnings. until the exact decision is made, you don't have to disclose it. clearly the sec is looking at it. it is interesting how wall street, why wall street analysts care. i tell you there is a lingering suspicion out there that wasn't just the final straw being this evaluation of the balance sheet taking $3 billion write-down. there is a lingering suspicion something else is at play that may be material to the stock. that is why everybody is trying to figure this out. it may take an sec investigation. with these mysteries, it is the logical answer that holds true but i can tell you people aren't buying the logical answer because the way this thing came down was so ill logical. everything is hunky dory. now listen, we should point out in our fleeting capitalist by the day, wall street isn't capitalism and we don't get bailed out of it is capitalism. in this environment i don't think governmen

melissa: harvey pitt and i were talking about it as well. >> comfort letter. melissa: indemnity. >> indemnity potential liabilities from bear stearns. point out it was shotgun marriage. i covered that particular episode for a long time. i covered bear stearns's steady demise into oblivion. let me tell you something, it was not a pretty sight. government, then secretary of treasury, hank paulson and jamie dimon said, please can you buy the company? we'll arrange a deal. jamie dimon bought it. they thought -- there is business reason to buy stuff but they thought they were doing the federal government a favor. here is what we know. there is comfort letter that the securities & exchange commission, linda thompson was enforcement chief at the time basically gave jpmorgan. the comfort level however, only covers federal enforcement action. the agreement enforces the sec to weigh jpmorgan's role or more accurately lack of role, that is, quote, unquote in the comfort letter when assassing charges related to bear stearns. jpmorgan comfort letter covers bear stearns pri

i agree with harvey pitt. he said given a choice between lying or simply not saying anything, i think mr. pandit should simply say nothing about this. >> i don't know if there's a way to make this a great story from their perspective. but, hey, i don't think that's the way anybody would want to go. it doesn't look good, as bob just said from pandit's perspective. but i think there are a lot of questions about whether they could have communicated better about what was really behind this. like the truth. >> guys, let's finish up with apple. it was supposed to be the big one in corporate earnings this week, reporting of course ultimately weaker than expected ipad sales. the white ipad minis are already selling out. why has the stock been so resilient over the last 24 hours? >> i don't think it is clear that this is a sign of a slowdown with apple. we know they're spending a bunch of money, upsetting a bunch of product momentum to try to get everything in line ahead of this holiday season. the reason why -- the co

. >> kayla, i thought harvey pitt made an interesting comment. it's all about finger pointing right now. we'll focus more on the earnings, which we should be doing anyway. harvey's point was we're all looking it to blame art donnelly for this. why did google give them an incomplete report to begin with? he's blaming google in this regard right now, suspe isn't h? >> well, arguably, google did not need to provide the quote to make its numbers accurate and to get the signoff from regulators. you're going to be preparing that quote and preparing your executive commentary for that one moment when you get to sign off from regulators and are able to push it out. we don't know what the timeline was with what actually happened. i think the reason why investors have been quick to trade up again is they realize stuff like this happens all the time. it's ultimately ati relatively human error. they process millions of pages of documents a day. this is an unfortunate blip, but it's a blip on their radar. >> it's very possible, if not outright likely, that some

harvey pitt joins me now. here is jpmorgan response right now. the new york attorney general relates to bear stearns which we acquired over the course of a weekend on behalf of the u.s. government. this complaint is entirely about historic honda by that entity. do they have a good argument? >> i think they do. one of the issues is whether they acquired full responsibilities for all the tire responsibilities. i think they have a good argument. melissa: jamie dimon think he was probably getting, or something to that effect of, he was getting a lot of liability here. interesting enough, this karla sanchez, who was an attorney for the group that sued them privately, now she has moved over to the attorney general's office. in fact, that is one of their other complaints. jpmorgan says it is generally recycled litigation. >> well, i think this whole filing of the lawsuit and particularly the timing on the eve of the first residential debate, all of this strikes me as very problematic. i think if there is a good case, it ought to be brought in its own ri

we ran this by harvey pitt, a former sec chairman, one of the best white collar lawyers i have ever seen and said point blank, if it was x and they said why they got an issue and they do have an issue and an investigation and that is what we reported last night. lori: thanks for the chat today. should you follow suit, pulling back on treasurys? the head of the fomc next hour but first look at today's when his and losers. the dow up 22 points. we are back. tdd#: 1-800-345-2550 this morning, i'm going to trade in hong kong. tdd#: 1-800-345-2550 after that, it's on to germany. tdd#: 1-800-345-2550 then tonighti'm trading 9500 miles away in japan. tdd#: 1-800-345-2550 with the new global account from schwab, tdd#: 1-800-345-2550 i hunt down opportunities around the world tdd#: 1-800-345-2550 as if i'm right there. tdd#: 1-800-345-2550 and i'm in total control because i can trade tdd#: 1-800-345-2550 directly online in 12 markets in their local currencies. tdd#: 1-800-345-2550 i use their global research to get an edge. tdd#: 1-800-345-2550 rates specific foreign stocks tdd#: 1-800-345-2550 b

harvey pitt is with us. good to get your insights. we had you on during the day in question. lot of questions about the events as they went. "times" reporting here is most likely quite accurate. was there an obligation on the part of citi to tell us what was going on opposed to presenting it as his decision which appears to not be the case. >> this makes a mockery of corporate disclosure requirements. i believe it will be seen as a violation of the federal securities laws. >> why? the process described here is one that's gone on at many companies in the past. it's not that rare that when they want a ceo out, they tell him but they plan for it in a better way perhaps and it is presented as a voluntary resignation. why is this any different even if it unfolded over a very short amount of time. >> what makes this different is that there were specific concerns about pandit's leadership and that this was a board decision. investors and the investing public have the right to understand what the board's processes were. the fact that pandit chose an option and therefore chose volunta