told that's as a mouthful so what is happening now well a republican member of the house financial services committee michael graham you see him there and a group of republican lawmakers have signed on to a letter asking the justice department to appoint an independent counsel to take over an investigation of criminal wrongdoing surrounding the collapse of m.f. global the letter cites the law that take a look provides for the attorney general to appoint an independent counsel in cases where an investigation or prosecution of a person by the d.o.j. may result in a personal financial or political conflict of interest a letter states clearly the case of m.f. global and mr poor design falls under this section if you want an example of an independent counsel in the past being appointed it can be found you may recall in the case of ken starr during the clinton administration he investigated whitewater the death of deputy white house counsel vince foster and of course the monica lewinsky scandal now here this week a lobbying lawmakers in support of this letter is james could two lists president and co-found

writing on platforms against the bank bailout the ten tea party republicans in the house financial services committee today are happily taking big bucks from those very same bailed out banks they screamed about when they were running for office back in two thousand and ten looking at campaign finance disclosure records these tea party republican congressman have taken serious six figure money from pacs connected to big banks like j.p. morgan chase bank of america and goldman sachs and these bribes excuse me can campaign contributions or as the bankers would call them investments appear to be working just as the banks or as hoped tea party republicans on the committee are doing their best to kill key wall street reforms and block the volcker fire wall which will brevet banks from gambling with their money is the republican chairman of the house financial services committee spencer baucus admitted in a rare and perhaps accidental moment of candor quote the regulators are there to serve the banks and quote and just like the wealthy members of the british parliament were there in seven hundred seventy th

just last week the house financial services committee passed an amendment that would eliminate title 2 t liquidation authority of dodd frank and leave wisconsin the great uncertainty that we had before which is if a bank fails, we have the unhappy choice of either bailing it out, we had the unhappy choice of bailing it out with public funds or not bailing it out and let the rest of the economy suffer the consequences. what dodd frank did, and i think importantly, was to make sure when a bank fails, it's much less likely with the higher standards and greater capital buffers and the living wills that these firms have to file, that they will be insulated or the economy, rather, will be insulated from that failure in an orderly way. to make sure when firms fail they fail and the management and the owners pay the price but the rest of us, taxpayers, the broader american economy, do not suffer the consequences. i think if we go back to the old days we'll not have that and that is a problem. >> i wish it were certain that we had the new days. if a lot of this happens, i probably would agree

the fbi has now opened an inquiry in those multi-billion dollar losses and the house financial services committee will begin its oin hearing in the trading blunder. >>> asian stocks followed u.s. markets lower on fears greece could default if the country's anti-bail out leftist leaders gain power in elections next month. that turmoil has global investors selling gold and seeking safety in the dollar. overnight the precious metal plunged to a four-and-a-half month low. >>> meanwhile oil fell to fresh six month lows, below $93 a barrel. j.c. penney tumbled 12% on weak earnings report and news it's doing away with quarterly dividends. the same week facebook is going public, general motor is pulling the advertising on the social network but will keep the facebook page. >>> finally, here is some food for thought for you. before you reach for that sweet at your desk today. a new study at ucla finds eating too much sugar can eat away at your brain power. this based on effects observed on lab rats, memories. got to have a little bit. >>> spurs wear down the clippers. l.a. is king of the road and the majo

the house financial services committee will hold a hearing on the matter. no date has been set for that. earlier today the department of justice announced it would investigate. the bank's ceo jamie dimon faced share hoede shareholders. he survived an attempt to strip him of title chairman of the board. >> run to the store for milk turned out to be the best move a retired waitress ever made. and she is not the only one few hit the jackpot. prince william county, virginia recently. shomari stone has our report. >> this is a big paycheck for me. biggest one i have ever seen. >> amary atkins beams with excitement after winning $100,000 with the virginia lotto scratchoff ticket. >> i am happy too. >> real happy. >> real happy. >> sheaw >> she waited on tables for 30 years. she hit the scratchoff jackpot last week. >> what was your reaction when you saw $100,000. >> i said, my god what have i done! >> her good fortune started when she ran out of milk and drove to this 7-eleven. mary walked up to this cooler right here. opened the door, got a gallon of milk and se

the fbi has opened an inquiry into the multibillion-dollar losses and the house financial services committee will begin its own hearings into the trading blunder. >>> overnight asian stocks followed u.s. markets lower on fears greece could default on the country's andty bailout leftist leaders gain power in the next new election. that turmoil has investors seeking safety in the dollar. overnight, the precious metal gold plunged to a 4 1/2-month low. >>> meanwhile, oil fell to fresh six-month lows below $93 a month. jcpenney tumbled a e etumbled. the same week facebook is going public, general motors is pulling its advertising on the social network, but it will keep its facebook page. >> and, finally, some food for thought for you before you reach for that sweet at your desk today. little bit of a downer. a new study at ucla finds eating too much sugar can eat away your brain power based upon the observation of lab rats memories. >>> last night on "the ed show," byron dorgan talked about final regulations in the wake of the jpmorgan chase scandal. he told ed he thinks wall street restrictions

just last week the house financial services committee passed an amendment that would eliminate title two, the whole liquidation authority of dodd-frank and leave us with the great unteern at the that we had before, and critically to make sure when a bank fails, it's much less likely with the higher standard and the living wills that these firms will have to file that they will be insulated or the economy, rather, will be insulated from that failure in an orderly way and to make sure when firms fail, they fail and but the rest of us, taxpayers, the broader american economy, do not suffer the consequences. i think if we go back to the old days, we will not have thatis a big problem. >> if a lot of this happens, i probably would agree with you. if i had to put a number on how much of dodd-frank will see the light of day, i'd say it would be south of 50%. >> well, i would say, arthur, if you look for example at these provisions, the liquidation provisio provisions, the so-called too big to fail provisions, the fdic has gone an awfully long way in implelting those. >> that's true. >> the

today officials from several financial regulatory agencies were testifying before the house financial services committee on the settlement practices of u.s. financial regulators so this is a good time to have only hearing of our own on this issue to talk about regulation and for rod after all this is the real word on wall street that no one wants to utter helped perhaps by their cronies on capitol hill there is a major factor that may be working against victims of fraud and unless you are an m.f. global customer you may be surprised at what it is take a second think about it. think of your gas wall or your gas rather well i bring in our guest christopher whalen he's senior managing director at tangent capital partners and author of inflated how money and debt built the american dream so chris whalen i said with fraud there is this issue that people might be surprised really can hurt victims in getting their money recovered even if they're the victim of fraud that's right what is that that surprises you been writing about it well in the one nine hundred twenty s. in the 1930's we had a lot of fraud a lot

money these banks of regulation tooth and nail insurance companies are members of the house financial services committee on the front lines of wall street's war against oversight but if interest ends out here as the only member of the tea party caucus and i suppose that anime of the bailed out banks and that hasn't stopped him from carrying the wall street water venture is trying to repeat the part of dodd frank act that gives the government the ability to break up the too big to fail banks if he had his way the country would be on route to another bailout or great depression style catastrophe was also the sponsor of the so-called jobs act a piece of legislation that's been described as a quote invitation to fraud by former regulators but cognitive dissonance is nothing new to fincher even before he took office as the parker see was as obvious as a derivatives trader burning man during his campaign the. washington post pointed out that the agribusiness man took over two hundred thousand dollars a year in farm subsidies so does that really sound like a free market champion to you doesn't steve venture ap

we are getting word he will be called to appear before the house financial services committee becausef the trading laws in london. they are still investigating. roughly 3 billion loss now. >> a big bankruptcy filing for a large law firm. >> if you cawant your kids to become lawyers they can even fail in business. late last night filed for chapter 11 bankruptcy protection but they don't expect to merge. this will be a winding down of a law firm. 20 senior partners already bolted because compensation is dropping too much debt. 401 k and pensions is protected but the firm will be going out of business. >> wal-mart going smaller? >> doing business in some locations and smaller stores. wal-mart has done great with big box retail. something like 100,000 square feet under one roof. they have 10 with you is profitable. they are going to do smaller wal-mart express stores. a lot less over head and smaller inventories. you can go to super center, normal wal-mart or express stores. >>> thank you for joining us adam shapiro. it's 11 past the top of the hour. texas police in an all night stanned o

service, hire more than 50 workers and run trains an hour later on the richmond line. >>> lawmakers and lawyers taking aim at facebook this morning. the senate banking committee and house financialservices committee both investigating facebook's initial public offering last week. there are reports before the ipo morgan stanley and other investment banks told select clients that shares were overvalued. facebook has been slapped with two lawsuits one filed in san mateo county. >>> time for a check on the forecast we showed you beautiful blue skies not a cloud. >>> but it is a little breezy now more so later today that means if you are flying in there could be some implications. >> could be bumps absolutely flying in hopefully no delays maybe a warning a lot of times those don't create delays bumpy landing or takeoff. here's a look at the low that is going to bring the chance of showers tonight and tomorrow. winds coming from the ocean that means a cooler day today. 7:00 this morning still hanging around 50°. fairly light winds. by noon breezes pick up and it will be comfortable to be outside, mid 50s at the coast, low 70s inland. not as comfortable to be out by , when the winds ar

lawmakers like house financial services committee chairman spencer baucus says now is not the time to prevent risky bets. >> no law can do that nor should a law attempt to prohibit a company from taking risk. in fact, that's an impossibility. >> mitt romney also says jpmorgan should be able to gamble with deposits backed by the federal government. >> this was not a loss to the taxpayers of america. >> right. >> this was a loss to shareholders and owners of jpmorgan and that's the way america works. i would not rush to pass new legislation or new regulation. this is, in the normal course of business, a large loss, but surely not one, which is crippling or threatening to the institution. >> of course, the dodd-frank law was supposed to prevent risky betting but bank lobbyists put a stop to it. it was tied up in legislative tape and lobbyists turned into a 530 page monstrosity, according to the "new york times." one of the leading advocates is senate candidate elizabeth warren. she isn't just focusing on the volcker rule, wants congress to go back to the original law intended to stop can

the senate's banking committee and house financial services committee are looking into that matter. >ow 6:27. still laughing at you. 71 degrees. ahead, how a crook took local seniors for a lot of money. >>> how police ended up locking up this guy after they stopped him for jaywalking. >>> and not again, what marion barry said this time while apologizing. >>> i apologize efusely for any hurt. >> what marion barry said trying to make thing right that has some upset. >>> and space show. the spectacular sight in the sky that happened overnight. good morning, everybody, welcome back to "news4 today." i'm aaron gilchrist. >> i'm eun yang. it is memorial day weekend, a live look at the bay bridge. some people are already leaving town for the beach. smart move, too. it's going to get crowded. we are keeping an eye on traffic ahead. and we'll tell you the best time to leave if you haven't left already. >> and it is a good weekend to be at the beach or to go to the beach. right, tom? >>> yeah, good getaway weather on this friday morning. as many are going to be heading east across the bay bridg

> outfront tonight, we're going to go straight to barney frank, the chairman of the house financial services committee and the first openly gay member of congress. chairman frank, good to talk to you again, sir. it's been a while and i'm glad it's under circumstances like this. what does this mean to you personally that the president did this today? >> well, i'm very pleased. it's both a cause and an effect. obviously as well intentioned as the president is, as much as he is opposed to discrimination, lots are constrained by public opinion. although the good ones like barack obama try to move it. it is a sign that things have evolved. no president could have done this ten years ago. secondly, it will be very helpful because it will help persuade other people about this and i think about 15-year-olds in school somewhere being picked on and bullied. now the president of the united states has said, hey, you know what, you're as important as anybody else. you have the same worth as anybody else. that has an enormous impact. >> did the president talk to you about this before? any of his senior staff? did a

. >>> the head of house financial services committee has been cleared of insider trading accusations.ongressional ethics office has dismissed all potential charges against alabama congressman spencer ba krchlbac >>> one of the four versions of the painting "the scream" was sold at auction tonight at sotheby's in new york and the record-breaking sale price, anderson, i hear you ask, $119.9 million. >> wow. thanks. ridiculist is next. recently, students from 31 countries took part in a science test. the top academic performers surprised some people. so did the country that came in 17th place. let's raise the bar and elevate our academic standards. let's do what's best for our students-by investing in our teachers. let's solve this. aspirin? i don't really know what it's for. isn't aspirin like a vague pain reliever? aspirin is just old school. people will have doubts about taking aspirin for pain. that's why we developed bayer advanced aspirin with micro particles. it enters the bloodstream fast and rushes relief to the site of pain. we know it works. now we're challenging you to put it

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>> all the years i was there trying to bring the cases every time i went before the house financial services committeee to preempt me so we could not bring it. it was kowtow. when bankers said jump, it was how high? >> republicans -- george bush's reform. >> that has to be the last word. thank you all very much. back in a moment with more of those remarkable photos you wanted all of us to see but first we honor our fellow americans who serve and sacrifice. this week the pentagon released the names of eight soldiers and marines killed in afghanistan. i've been crisscrossing the gulf for the past two years now. i can tell you, down here, people measure commitment by what's getting done. i'm mike utsler, and it's my job to make sure we keep making progress in the gulf. the twenty billion dollars bp committed has helped fund onomic and environmental recovery. another fourteen billion dollars has been spent on response and cleanup. long-term, bp's made a five hundred million dollar commitment to the gulf of mexico research initiative... to support ten years of independent scientific research on the environ

joining us now, two distinguished members of the house financial services committee, brad sherman's a california, david schweikert's a republican from arizona. welcome, gentleman. brad sherman, what would you do right now? what would your first, if you could wave a magic wand, what would you do, brad? >> as far as the issue of too big to fail, i think too big to fail is too big to exist. you know, even a protozoa, when it gets to saea certain size, i able to divide and the resulting two cells are healthier. given the fact that most of the folks up on wall street are considerably smarter than protozoa, you'd think they'd be able to do the same. reason the we want to do that, we neveren again want a situation where a bank could call washington and say, you better bail us out, because if we're going down, we're taking the economy with us. and we never want to be in a situation where any one bank has a lower cost of capital, because investors believe that it has a safety net, because if it ever gets in trouble, it can seek a bailout in washington. all banks ought to be part of the capital

and the house financial services committee "gathering information" about the facebook ipo. facebook and lead underwriter, morgan stanley, get slapped with a shareholder lawsuit, probably several of them accusing them of hiding analysts lowered growth forecast for facebook while the ipo was being marketed. today is the first day investors can begin shorting the stock. all this as needham initiates a buy rating on facebook stock with a $40 price target. the analyst who made the call is going to be on "street signs" today. sue. >> thank you very much, ty. director of research for thompson reuters and she has some advice on the other way for facebook. she says according to starmine research, the stock should be valued at $9.50. she joins us now to talk about that. it's based on intrinsic value, but how do you determine briefly and in english how you get to intrinsic value. >> well, sue, there's a lot of investors out there who believe facebook is going to turn out to be exceptional. what sbrensic valuation model does is lets how much the company worth today if it turn out to be

congressman scott garrett, the chairman of the subcommittee on capital markets and house financial services experience committee. we have the deputy of the treasury of the united states and we thank secretary wolen for being here and we have arthur levitt, former chairman of the securities and exchange commission, senior adviser to the carlisle group, a man who has worn many hats in the financial markets and government as well. i thank you for being here and congressman garrett, i thought i would begin with you. i'm going to take you back to 2008, the financial crisis picking in and the period after that. you opposed the stimulus, you opposed the frank dodd legislation. how would the world look today if your way had prevailed? >> couldn't be much worse i guess than after all those situations went through. i guess the term that barney frank always used at the time when we were saying why don't we do this, why don't we do this after the fact, he'd say those are all counterfactuals and you can never go back to anticipate would actually would have occurred but with regard to two, three of those points you raised, w

in washington, facebook has caught the eyes of the senate banking committee and house financial services committee. both are conducting preliminary investigations into the ipo controversy. but there was a small amount of good news for facebook yesterday on wall street. as facebook shares gained a dollar in yesterday's trading, closing at $32 a share. >> so, andy, they are only down now about $100 million in a few days. $150 million give or take a few million. >> right. well, i mean, the issue here is one of what's called selective disclosure, which is where you tell one group of shareholders one thing and another group of shareholders another thing or don't tell the second group what you told the first group, which confers an advantage to the first group. unfortunately during the ipo process, it's not clear whether or not that's illegal. but just ask yourself, it violates common sense. suppose i told you one thing and i didn't tell you another thing. how would you feel? you tell the people on wall street that. you tell these analysts that tell the guys at the investment banks, put yourself in thei

jpmorgan will be appearing before the house financial services committee, taking a look into its $2 billionset yet. lawmakers want more time, though, to gather information. >> yeah. the pressure is on. we'll see what happens. >>> maersk says the numbers should be lower. this after first quarter net profits surprised to the upside. we heard earlier from mr. leake that there's a big difference between what happened in boat carriers and other carriers. >>> a greek bet has paid off. dart management has seened almost 90% of the $440 bill greece made yesterday. it bought it at a driesed price, now getting paid 100 cents on the dollar. >> a couple things about this. how does it feed into political angst in greece? these guys got a 2 bill -- they're suing argentina $2 billion. but it's not a 400 million payout. tight 450 billion payout. >> of course. and other investors who got significantly less than that. not too happy. >> they sold it to them. didn't have to. and the leaders of france and greece say it should remain in the eurozone. we'll speak to the german chancellor fresh from her first ever

also in washington, massachusetts congressman, barney frank, the top democrat on the house financial services committee. good morning. >> good morning. >> do you agree with bill clinton that after the election, there may be more incentive and therefore we wim not see this brinksmanship that may be part of the future of he debate in congress? >> yes, i think technically there will be less disincentive since we are as far from an election as you can get. there's an issue that has to be addressed. my republican colleagues differ with many of us not on whether or not to reduce spending, but on how to do it. they particularly want to increase military spending. and i believe that that's an issue that the country, i hope, will decide in november. the president wants to pull out of afghanistan at the end of next year. republicans want to stay in longer. they are pushing him to spend more money on nuclear weapons than the pentagon thinks is necessary. 10% of our total debt is a -- literally 10% to the fact that we went into an unnecessary and costly war in iraq. and the republicans, and you correctly pointed o