we'll talk with harvey pitt in another cnbc exclusive. see what he says. >>> and then citigroup executives have been facing off with shareholders today for the first time since the failing of the fed's latest stress test and uncovering fraud at its mexican operations. how should chairman mike o'neill be? a disgruntled citi watcher weighs in. cog up. we've got a lot to get to, so don't touch that remote, coming up. (music) defiance is in our bones. defiance never grows old. citracal maximum. calcium citrate plus d. highly soluble, easily absorbed. >>> hedge fund manager david einhorn has a warning. >> david einhorn is making some waves in the market. this time, his letter to investors, a recap of the first quarter performance. in it he disclosed that green light capital had taken new stakes in a number of companies, including sun edison and appliance and home furnishings retailer kahn's. both those stocks are up near session highs. 10% on the day here. he also said that they continue to make money on their stake in micron technology, anoth

we did ask harvey pitt, we should have a full screen of what he said. this is interesting.e upshot seems to be spread around a lot of money, apply enough pressure, make enough noise you can convince an investigation to ensure serious stock price atrophy. that is a guy who has been around for a while. this is raising eyebrows. you can say he cancelled out herbalife reedit but who is attacking first? herbalife is responding to an attack. he is doing the attacking and using political measures. it is completely legal. it just adds another dimension to what is going on here. within the context of the investigation, as everybody, put it into context of these contributions. money does buy influence. liz: is certainly does get you in the door. we got no horse in this race, but herbalife has been around for decades. we just had professors from nyu on yesterday saying these pyramid schemes usually collapse sooner than 40 years. >> what we said, i am not supporting this, the stock went down on the news of the fbi investigation. fbi had not found anything yet. very good lawyer writing

. >> harvey pitt said if it's front running, then that's the issue. but he's just -- he's not just a -- >> i don't know what i think. >> he couldn't flip it like the day the acquisition was announced probably. >> right, right. >> probably could though. >> he didn't seal it yesterday. this wasn't a go into it, get out of it type of pot. >> right. >> that makes it different if you're looking at this as a longer term investor. >> the story, it's a template, it totally changes the playing field. >> i think ceos would say 2013 was the year they got concerned about activist investors and blue chip companies for the first time had to sit around and start thinking what happens if the activist investor comes after me? you might have thought that was going to die down. it's not. this ups the game. >> the other quote ackman said was, we want companies to do the right thing for shareholders and we have ways of making them do that. i'm not here to, oh, the ceos are scared about their jobs. i don't care about them. >> i just want the company run well. >> i want the

. >> harvey pitts said it's important to have a level playing field but people need financial incentivesmation. it helps the marketplace. in other words, it shouldn't be totally level. there's a similarity here, isn't there? >> there is a similarity here. and i think it's going to require some policy decisions about what kind of information is in some kind of public domain that everyone should have access to. stock prices generally have been considered to be sort of a commodity that all investors should get at the same time. that hasn't been happening here. these milliseconds and maybe it needs to be thought through. but that may be a subject for regulation. it's hard for me to say on the face of it that it's a crime when it has never really been -- no one's really had any roadmap for how to handle it. >> a lot of the algo writers are triing to put out a defense how is it illegal for me to write better code than you? >> exactly. what do we want to discourage and encourage and what are the broader costs around it. it does need thorough investigation. i hope it's been getting and i hope it