ace reporter kate kelly followed this from the beginning and joins us from new york city with the latest. kate? >> scott, thanks so much. having read through these resolution dock mondocuments pu together by preet bharara, interesting highlights to the settlement word which the judge is behind me expected to sign off on on the earliest convenience. the $1.8 billion fine, a record, as far as we know for insider trading case, fines paid in the galyon cases were far, far lower. in addition, s.a.c. pleading guilty to five criminal charges, one of wire fraud, four of securities fraud. more detail on that to come. finally, surrendering investment registration as a hedge fund fund, no longer operating as a hedge fund in the future. details of the frame yet to be determined. two interesting nexts to point out. one it seems they'll be in business, as a family office and there are a number of issues in the language predicated on that idea. and, two, they're going to have to commit to independent monitoring, they'll have a compliance monitor who is approved by the government overseeing their tradin

here's kate kelly. >> hi, how's everybody today? >> reporter: there's often a line at st. vincent depaul of alameda county on the third wednesday of every month, the day of the free foot clinic. that's right. a foot clinic. >> these would have a good arch for you. >> reporter: it's one of those needs that could easily be overlooked, unless you know the community. >> a lot of these people are homeless or in shelters. they don't have clean socks. they don't have decent shoes. >> reporter: jana wearing started the clinic five years ago. >> do you like these? >> reporter: she's been working at st. vincent's since the 1970s when she was a public health nurse for alameda county. the experience opened her eyes. >> i saw so many clients that had very little, that i really felt that we could bring something to them. >> reporter: and she's done just that for decades. for 56 years, janet has been practicing nursing in northern california. more than half of that time, she's been tending to the poor and homeless of alameda county. >> how about your left arm? >> reporter: when she saw h

kate kelly, thank you very much.eloping story there. >>> let's send it over to dominic chu for a quick market flash. dom? >> that's right. mandy, pandora singing the blues, shares near their session lows, down about 3% after getting smacked with a downgrade at albert freed, to an underweight from a market perform keeping the price target at 23 bucks. pandora reports earnings on thursday. albert freed said this is a valuation call. back to you. >> thank you very much. we are watching. up next -- i didn't mean it like that, the ticker. the honey badger ceo his cars are catching fire, the feds want answers but elon musk doesn't care. the question is, should you? >> and two of the smartest minds in housing go going to be joining us with where they think our recovery is heading. america's sue apocolypse. ahead when "street signs" returns. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easil

kate kelly introduces this week's jefferson award winner. >> pott is so extraordinary. it doesn't seem possible -- the poverty is so extraordinary. it doesn't seem possible. >> reporter: she couldn't believe it when she visited haiti the first time in 2009. >> something inside me just said you should do something. just something. >> reporter: so from her home in pacifica, michelle lacourciere started a small sustainable biofuel program to help with farmers. that was just the beginning. >> we begin tonight with breaking news of a major earthquake has hit haiti. >> reporter: january 2010, a major earthquake devastates haiti. user her contacts, michelle helped -- using her contacts, michelle helped organize the largest earthquake effort in the bay area and spurred her on to tackle a big issue. >> energy is a huge problem. only one in eight people has access to electricity. without any access, you are lock in grinding poverty. >> reporter: at a recent event in watch the, michelle showed off the center -- in washington, michelle showed off the centerpiece of her solution. >>

i'm kate kelly.e the federal courthouse where we are expected to see documents of the case u.s. versus s. a.c. there is a proposed resolution we have word in the insider trading case that's been going on for months. we will get more details from bharara. we have a confirmation that the settlement with a $1.8 billion settlement, a record insider trading amount, as well as a guilty plead to securities fraud from s.a.t. capital will be forthcoming. we will bring you the additional details as we get them. >> our kate kelly are a busy day there watching the s.a.t. story. >>> six in 60. let's start with time warner cable. >> deutsche bank says to buy it because it is not likely to be acquired by shorter. you usually don't get that level of certainty. >> oxy? >> they say the company is going to divide itself up. that would be worth 30 more. >> consul energy. >> i mentioned this because we had the ceo on. they are getting more into natural gas, less thermal coal. we'll see. >> earnings from sisco, not the te

kate kelly is there and kate, why don't you run us through the biggest headlines we've heard so far? >> i would love to, mandy. it's been a fascinating day here at "the new york times" building at the deal book conference and one of the highlights was andrew ross sorkin's one on one with dan loeb the founder and manager of third point which is one of the best performing hedge funds this year. he let us in on a secret sauce in terms of his ongoing bullishness on japan and specifically the stock sony. he's had trouble with sony while the stock has gone way up this year some of his activist measures haven't played out as expected. at the same time he said he's still bullish that economy and the stock let's take a listen. >> we remain bullish on japan. we wouldn't have made the sony investment if we didn't support abe and everything that they're doing, you know, politically, economically and from a monetary standpoint. >> now, moving across a couple oceans over to europe, there's also been some talk today about europe and france in particular. you may recall on friday, s&p downgraded fra

my partner tyler at the nyse, first to kate kelly at the news ken fre -- conference, kate? >> we're waiting for the start of this slated 1:00 press conference with preet bharara. tough terms coming out of his office from the settlement reached. $1.8 billion fine related to insider trading as well as the surrender of their license. their ability essentially to manage outside money. they will become a family office shortly after the settlement is approved by judges. they have pled guilty to five counts against them, one of wire fraud, four of securities fraud and we'll hear more detail i'm sure on what they admitted to in terms of insider trading and perhaps not best supervising their employees. in a letter to the judges today two judges who need to approve this settlement in order for it to be set in stone, bharara said considering all things the depth and breadth of the wrongdoing here he thought these penalties were steep but fair. interesting but lotough languag out of his office. he has amassed a track record of insider trading convictions and cases. more from bharara in

cnbc's kate kelly is going to join us on the phone.but set the scene for us. >> reporter: karen, years after investigating and negotiating this deal, this is a long-awaited announcement between sac and the government. essentially it will accomplish many things. the government will be extracting what is in many ways a record fine. a total payout of sac of $1.8 billion. 1.2 billion of that is new. another 600 million comes from a prior settlement in a separate but related case in terms of the issues involved. the other thing is sac will be pleading guilty to at least one count of securities fraud and probably additional pleas, perhaps a count of wire fraud as well. i'm told that although the case made against sac in july was quite elaborate in terms of how prosecutors argued that they had promoted and sort of constructed a pattern of insider trading within the firm, sac won't go so far as to make the promotion of insider trading but they will cop to securities fraud and in so doing they will lose their registration as an investment advis

that's kate kelly.tice i'm not i'm not adding any. >> it became so obvious. you can't anymore. you can't. it would be like a -- right. >> point out. >> you're a journalist. >>> the dow surging in uncharted territory, but the index closed shy of 16,000 yesterday. and joining us now with more dennis gartman. and our guest for the next two hours is bob hormatz, former undersecretary of state. he's also a vice chair of kissinger associates, former vice chairman at goldman sachs. we want to talk about markets to start with. but i had a thought for you. welcome and welcome one and all. but you were at state and i just want to -- something occurred to me yesterday. it's rare to be able to get both israel and the saudis so incensed at us at the same time. is this a ploy to finally bring the israelis and arabs together so they could both hate us at the same -- >> it does create a unique kind of unity. >> how do you do it? you finally got the middle east together in their combined hate for the united states now.

kate kelly has more. interesting story. not a big surprise. >> i guess not. although it's creating a bit of tizzy on the trading floors today. with the big banks under fire for so many different regulatory issues looking to clean up the written records and may start by eliminating chat rooms. recent weeks jpmorgan, citi group, barclays and credit suisse have begun reviewing traders' use of online chat rooms, people gather for private conversations via instant message. in addition to small talk, there are discussions about specific trades or ideas and therein may lie a problem. ten banks under scrutiny for attempting to manipulate -- >> we have a partial list of that on the screen. numerous investigations under way, including jpmorgan's chinese hiring practices, for instance, and also their alleged manipulation of u.s. power markets, to name a few. as they review internal trading documents bank lawyers are finding chat room records is taking an inordinate amount of time. in an ironic twist, a new service, market collaboration services backed by ten major banks

award winning bay area journalist kate kelly reports this week's jefferson award winner has spent herr and retirement bringing healthcare and more to those most in need. >> hi, how's everybody today? >> reporter: there's often a line at st. vin tenth depaul's at alameda county on the third wednesday of everyone every every month the day of the free foot clinic, that's right, a foot clinic. >> these would have a good arch for you. >> reporter: it's one of those needs that could easily be overlooked unless you know the community. >> a lot of these people are homeless or in shelters. they don't have clean socks. they don't have decent shoes. >> reporter: janet waring started the clinic five years ago. she has been working at st. vincent's since the 1970s when she was a public health nurse for alameda county. the experience opened her eyes. >> i saw so many clients that had very little, that i really felt that we could bring something to them. >> reporter: and she's done just that for decades. for 56 years, janet has been practicing nursing in northern california. and more than half of th

kate kelly at jpmorgan headquarters in new york city. kate, the street anyway, seems to be happy that at least this part of the whole saga may be behind jpmorgan? >> yes, we're getting close, sue and i think you're right. investors are cheering the idea of a formal resolution to this although the $13 billion pack has been anticipated for a number of weeks now and, in fact, some portions of it have already been agreed to and announced. let's give you the breakdown of that. of the $13 billion, about $4 billion to the fhfa, already disclosed a couple weeks ago. another $4 billion goes to consumer relief measures. about $2 billion financial penalties expected in connection with mortgage securities packaging before the financial crisis. and the balance to go to credit unions and various other government officials involved with the probe. now in terms of consumer relief, this is an interesting piece of the puzzle. so jpmorgan has agreed to exit tend some things that it's already doing and also agreed to some new things. among them are of this $

kate kelly has more. kate, interesting, you don't hear from loeb all that often, at all, publicly. so everybody was sort of keyed in on what he was saying. >> you're absolutely right, scott. it's so rare to see him on camera, and we got a rare treat with that today, and a really detailed, packed interview. probably the surprised disclosure was the stake in fedex. he mentioned that to andrew ross sorkin, and we've seen the stocks at intraday highs, coming off that now. but based on what he said, the bullish sentiment, obviously a lot of investor enthusiasm. let's listen to directly to what loeb said about fedex. >> we had a very constructive discussion about the company, and we had some ideas, we shared them. he disabused us of some of our notion, life goes on. it's a normal part of the process. >> are you an owner in fedex? >> we are. >> and you like the stock? >> i do. >> you like fred? >> i do. >> you won't be trying to oust him? >> no, absolutely not. >> you can hear andrew asking the sort of $64 million question, are you going to try to oust fred smith, because even when dan lo

kate kelly is there live with highlights of fascinating conversations. kate? >> thanks so much, sue. i would say that within the last hour or so, things have taken a decidedly more bearish tone in terms of the global economy, especially leading off with blackrock ceo lawrence fink. fink talked about a number of issues, among other things wants the fed to start tapering as soon as december and predicted a significant leg down in the coming months and emerging markets, 12 to 15%. he expressed concerns as well about what's going on in various economies around europe. let's take a quick listen to that. >> there's greater and greater pressure on the french government today to create some reforms. just downgraded. i don't think in ten year's time we're going to have a euro if we don't have a strong france and germany. it's predicated on two very strong currencies and the competitiveness of france is still deteriorating. >> in the view of fink, the future of the euro hangs still much in the balance. that echoed a little bit what we heard from ray of bridgewater assoc

our own kate kelly is there, joining us with more. kate? >> kelly, thank you so much. u.s.stage after once again sounding a very tough tone in terms of corporate malfeasan malfeasance, both banks and hedge funds. he was asked about the s.a.c. settlement and why steve cohen was not himself indicted, why there was not a strong case against him individually, and bharara very strongly said this criminal case for all intents and purposes are still open, and no protections for any individuals, certainly including him. he also defended the indictment of the corporation, which, of course, occurred in july, and very recently settled for $1.8 billion. he said sometimes it's important to charge institutions. it sends a message of deter rens. finally, he sounded a tough note for the banks, asked about a citigroup argument in court earlier this year, and the notion of collateral consequences that come with admitting to wrongdoing. he said, in general, these are often overstated. in fact, we need to bring these tough cases, we need to hold the banks accountable, and he thinks in general,

. >> to kate kelly with breaking news on another retailer. kate? >> tyler, thanks so much. we have breaking news on crocs, the shoe maker apparently under way with discussions with at least a couple of private equity firms about a possible leveraged buyout, privatization of the company worth a little more than a billion dollars in market cap. these talks have been going on about two months, and parties that have been in discussions with them include kkr and blackstone two of the big players. i'm told kkr is more than likely out of the game at this point, although blackstone is still considering the possibility of a deal. however, talks i'm told are fizzling a little bit in general. it's not clear whether things will come together or not. but the stock has clearly been reacting very, very well to this news today up by double digits at one point earlier. now a ril bit off those highs. still very strong, tyler. that's one we'll continue watching for you. >> it's up 7% now. as you mentioned, kate, off the highs but a decent percentage gain. thanks, kate. >>> a number of ipos be

kate kelly introduces us to this week's jefferson award winner. >> the poverty is so extraordinary.st doesn't seem possible. >> reporter: michelle couldn't believe her eyes when she visited rural haiti for the first time in 2009. >> there was something inside of me just said i have to do something, just something. >> reporter: so from her home in pacifica, michelle started a small sustainable biofuel program to help haitian farmers. that was just the beginning. >> a major earthquake hit haiti. >> reporter: january 2010, a major earthquake devastates haiti. using her contacts, michelle helped organize the largest earthquake effort in the bay area. it spurred her on to tackle one of their country's biggest issues. >> energy is a huge problem. only one in eight people have any access to electricity so without any access to electricity, you are locked in grinding poverty. this is a slowly lar generator 1.5-kilowatt solargen rater array and that equipment is designed to charge portable battery packs. >> reporter: each generator placed in aville large could charge and recharge 100 battery

kate kelly is live outside of jpmorgan's headquarters in manhattan with the very latest on where the deal stands now. kate? >> reporter: thank you, scott. we've been waiting all morning, and i'm told the documents surrounding this settlement announcement are still being finalized. of course, the broad contours of the $13 billion deal have been in place for about a month. but some issues have kept the negotiators at the table for weeks now, and they're still tweaking language as we speak. just to recap -- as part of the $13 billion, we're expecting to see several major components. $4 billion already agreed on with the fhfa, and additional $4 billion going to consumer relief measures i'll talk when in a ekd is. $2 billion, financial penalty related to alleged misconduct that jpmorgan engaged in around the packaging of mortgage-backed securities before the financial crisis and the balance to gh to credit unions, states attorney generals, and so on. as part of all of this, jpmorgan will continue mortgage modification and relief efforts it has been doing for a while now. a couple of forms

kate kelly breaking the story over the weekend. what can you tell us? >> reporter: it's been a jam-packed day for s.a.c. and also the u.s. attorney for southern district who held a press conference at midday for reporters to walk people through this landmark settlement. procedurally there's a lot still to come. the settlement has been agreed to between the two parties. it's sitting on the desk of two judges in the courthouse behind me judges swain and sullivan, who must approve it. if and when that happens they'll have a public guilty plea by senior representative from s.a.c. not necessarily founder steve cohen but as well as sentencing to follow several months later. it's after that s.a.c. needs to get serious about restructuring. they'll have to appoint an independent compliance monitor to oversee what they're calling the wind-down. what that means is they have to return third-party money to investors. a process that actually will be mostly completed at the end of the first quarter, from what i'm told, but could take ultimately one two two years, mari

kate kelly all over the case since the beginning and kate, isn't case closed, is it? >> it is absolutely not closed, brian, and if there was any prevailing message today from the u.s. attorney for the southern district and the fbi who were both there, that was it. they're still working on this. no one should rest easy. couple key points from u.s. attorney preet bharara. he said it's a rare thing to hold a corporate entity like this accountable for these sorts of security fraud charges. the $1.8 billion is a record certainly for insider trading. again, no one has immunity as a result of this. not steve cohen or anybody else. there should be minimal impact, important for our viewers to the markets and to other parties who do business with sac. still, the questions from the audience were skeptical. a lot of questions about why steve cohen was ultimately not a part of this, what happens next. there's a sense that sac wants to reopen after just a short period of time. bharara was having to say no, that's not going to happen. they have about five years to unwind and we thin

for nightly business report, i'm kate kelly, in new york. >>> steven cohen is not just a high-profile defendant, he is also a high art collector, a number of works at christies. we'll bring you more details on the art world later in the program. >>> also ahead, as twitter prepares to start to trade as a public company, which other tech companies might be next. >>> interest is growing in twitter's initial stock price offering, today, twitter boosted the range of the price from 23 to $25, up from a previous plan to offer shares from $17 to $20 apiece. >>> and despite the boost in the expected price range, interest in twitter may be waning just a bit. a new poll found that nearly half of all investors fear that twitter will be a bad investor, while only 6% think it will be a good investment, and only 35% of investors believe that twitter will be successful about five years from now. and about half believe that the rival, facebook, will be successful in the next five years. >>> and shares expected to climb wednesday night, after twitter, what is the next technology company to get talked u

kate kelly introduces us to this week's jefferson award winner. >> the property is so extraordinary,possible. >> reporter: michelle couldn't believe her eyes when she visited rural haiti for the first time in 2009. >> there was something inside of me that said you have to do something. let's do something. >> reporter: so from her home in pacifica she started a small sustainable buy oh fuel -- biofuel program to help farmers but that was the beginning. >> we begin tonight with breaking news, a major earthquake hit the country of haiti. >> reporter: january 2010, a major earthquake devastates haiti, using her contacts, michelle helped organize the largest earthquake effort in the bay area and -- tackle one of that country's biggest issue. >> energy a huge problem. only one in eight people have any access to electricity. without any access to electricity, you are locked in grinding poverty. >> reporter: at a recent event in washington she showed off the centerpiece of her sustainable energy solution. >> it's a solar generator, 1.5- kilowatt solar array and that equipment is designed to

kate kelly joins us with all the details.ood evening, kate. >> reporter: it was obviously a big day for s.a.c. capital and the u.s. government which agreed to a settlement of $1.8 billion over charges that s.a.c. repe repeatedly engaged in insider trading. as part of this, they'll also plead guilty to securities fraud and wire fraud and surrender their registration as an investment adviser. judges need to sign off on this. there will be a public courtroom appearance and a guilty plea as well as a sentencing. and then the tough business of unwinding s.a.c.'s current third-party investments will begin. most of it's a simple process, but some of their investments are illiquid. at a press conference today with u.s. attorney barrara, a lot of tough questions about why s.a.c. founder steve cohen was not himself personally implicated. he was defensive. >> it is a rare thing for any entity. it is difficult to plead guilty to everything it's been charged with and of the magnitude that we have described it. >> reporter: so barrara as w

we want to bring in our own kate kelly. for weeks and we await the official release. how do you see it this morning and how should investors being thinking about things like the reserves and what will be left after this deal is codified? >> reporter: well, those are great questions, carl. i think jpmorgan we're going to hear from directly at some point today. we're all kind of waiting on a statement or a press release of some sort from the government, hopefully some time pretty soon with the details of the $13 billion settlement. it's $4 billion to the fhfa, $2 billion to consumer and credit unions. they now measure it at $23 billion. some analysts have raised the concern that their continuing liability from various mortgage litigation issues could exceed that amount. so i think dimon or his other top executives will be fielding some of those questions from investors as soon as the d.o.j. gives the public the details, they'll probably put that into motion and set a timetable. i expect to see some word of that certainly befo

kate kelly joins us with the details of the sac settlement. good morning. >> reporter: good morning, becky. it looks like today is the day after weeks of negotiating the embattled sac capital will finalize an agreement with u.s. prosecutors to resolve charges of securities fraud regarding to insider trading. they're expected to pay a fine that amounts to $1.8 billion. that's $1.2 billion in new charges related to the criminal settlement but at the same time they paid $600 million earlier this year in a similar but separate charge that they'll get credit for. this is probably the largest fine on record in terms of insider trading cases. probably the largest as well for the u.s. attorney for the southern district in manhattan and certainly high ranking for the justice department as well. instead of just pleading guilty to everything in the original indictment from july of this past summer, sac i'm told will have modified charges that they plead guilty to in a sort of separate court filing. we can look for that as early as today. that may go publ

kate kelly. after laying out $13 billion, is jpmorgan finally in the clear signaling a time to buy the stock or stay away? chris wahalen, down on all the banks. todd hagan managing investor from stern ag. he says the time may be right to buy jpmorgan. you're down on all the banks? >> i'm not down on the bacnks. they're guiding down. press attention on settlements and litigation has object cured the operating guidance we've been getting from the bank, ms. lake, cfo of jpmorgan, second quarter she told everybody mortgage would be down 40% in the sending half of the year. in fact, all of the banks have now guided lower. that's one of their most important businesses. so i think for investors, what i would tell them is, it's significant keep to keep up what's going on with these settlements, the numbers are big, but pay attention to what's going on on the pralgt side. >> it's a game-changer. >> it's a combination of dodd/frank, basel, lit gailgt ga litigation, affecting operation. it's limiting the wa

kate kelly, thank you, on what has been a very long, tense settlement between the bank and jpmorgan. tim holland, this is the financial sector. as they stay pay penance for financial fiasco of five, six years ago. would you buy the big major banks right now? >> i think the sooner the big banks can put these issues behind them, bill, the better off for credit, the better off for lending. but where we've positioned the diversified equity fund and our small cap fund is more toward smaller banks, below the $10 billion in asset threshold. the less touched by dodd/frank and regulatory regime that all these banks, especially the big ones, are now living under. we just see greater opportunity still down on balance than up, the cap spectrum. >> does everybody agree with that? what about you, leo? what's your take in terms of what we heard from jpmorgan and this settlement? if there's more to come and whether you want to start buying this stock again after all of these legal issues. >> well, i'll concur with a statement of fact. that statement of fact is that the banks are going to do it again

kate kelly joins us now, following a story about so-called long only hedge funds. at a long only hedge fund is like a typical equity mutual fund at 8 times the cost. what's the story here? >> well, tyler, interesting story in the "wall street journal" about a number of players getting into this invest vesting. you've heard long short equity funds which do bullish and bear bets on stocks. this is long-term value stories. why not a new thing there does seem to be more activity in this area. a couple names, tiger global management is one, coatu, juddson founders fund and hound partners, some of the names you probably never heard but they have begun by famous accolates of hedge fund managers or managers themselves. arguably, though, they're a little late to the game. >> i assume that they're charging the typical fees that hedge funds charge, the 2 and 20% of profits. that is a serious bag of mow tatos to carry -- potatoes to carry around as a hanty cap. >> that is something that the article discusses and some charge the standard others are giving investors a little reli

kate kelly, thanks very much. >>> bob pi ssani, i liked art cashin's line. talking about janet yellen, he said they were so nice to her, they did everything but buy her a corsage. >> i thought bob corker was going to ask her on a date at one point. what happened the upshot of the janet yellen snooze fest, i say that with respect, it was a masterful performance, the upshot is they're going to give her time to continue the bond buying programs until she's satisfied the economy is turning around to her satisfaction. i don't think that's going to be forever. these will get a little more contentious as time goes on. she clearly bought herself some time. the upshot for the stock market is what i call the beta trades are kind of back on. for example, stuff that's gotten beaten up a lot. internet stocks. high beta stocks. chinese internet stocks. emerging market stocks. put up the eem today. that thing is down about 8%, heavens, in the last six, seven, eight days. it's got a nice rise today all throughout the morning as janet yellen's testimony was on. see that boun

brian, if momentum holds twitter is aiming to price shares at $27, that's according to cnbc's kate kelly's reporting. now that would be above twitter's already raised range of 23 to $25 per share, sources telling cnbc that twitter management will decide tonight after the market closes, but the price expected say potentially around 6:00 p.m. eastern. twitter's 70 million shares will start trading tomorrow morning likely about an hour after the opening bell. so it will raise up to $2 billion if it exercises an over allotment option of 10.5 shares. twitter closed the books on an ipo a day earlier than expected because of strong demand. see what happens when shares start trading thursday but at the least we should expect some heavy volume. >> thank you very much. bring in buzzfeed president john stein burg and tim sullivan, another sullivan on the show. great to have you both with us. tim, let me start with you because i believe your company has invested at least a couple million dollars in twitter over the past couple of years. it is fair to say that you would like this to go well. how well d

let's go to kate kelly live back at headquarters. kate? >> thank you so much.approved the civil forfeiture portion of the settlement between s.a.c. capital, the embattled hedge fund, and the u.s. attorney's office, just announced earlier this week to the tune of $1.8 billion, and with a series of guilty pleas expected from s.a.c. this portion of the case dealt with a civil aspect of it in which essentially s.a.c. was accused of money laundering, and the judge involved, judge sullivan, was considered to be potentially the hurdle in getting this approved. he's been something of an activist judge, raised a lot of questions historically about cases brought before him. so this very well may get the u.s. attorney over the hump, carl, in terms of getting the entire thing approved. but now, it's down to a second judge on friday, judge laura taylor swain to rule on the criminal portion before the thing is official. >> yes. as we know, sometimes the judges don't always see the same way the prosecutors or regulators might, kate. we know you're on the case. thank you, kate

kate kelly with that news this morning for us. roup. rick santelli with the "santelli exchange" on a tuesday. hi, rick. >> hi, kelly. many on the trading floor look forward to steve liesman's interviews with the fed officials. it's not about the fed officials, but garnering where they're going, where they've been, and where they are, and how that will affect traders. today, i learned important bits of information from boston fed mr. eric rosengren. i'd like to play a clip. >> you would agree, you've said that before, you would agree your colleagues have said that before, i would agree i heard that before. it tonight seem like it's sinking in. is there some other way that markets can be told to understand this thing, or is it just something you can't do? is it too complicated a policy? >> so i think it has been a complicated policy. so one of the challenges is we've not been in a situation where we tried to exit from a large balance sheet before. and communications is a very important part of that. so we're working to get the commun

kate kelly will join us from outside jpmorgan's headquarters with more on the story in just a moment.we're going to start things out with the markets this morning. stocks retreating from record highs yesterday on bearish talkes from carl icahn. the activist investor said he had cautious on equities. he was speaking at a conference where he said he could see a big drop in stocks because earnings at many companies are driven more by low borrowing costs rather than strong management. the dow and the s&p 500 are both on track for their best year in a decade. the major indexes have soared by more than 140% since bottoming out over a year ago. in his third quarter letter to investors, jeremy grantham suggests we could see stocks explode higher than sink into a bear market. he

so my great colleague, kate kelly, somewhere around here -- ways kate? she does a really good job. there she is over there hiding in the back and. she called a meeting and this individual said i have a question. i was hiking in grand teton national park and there were warnings about bears everywhere is walking want to i came across something on the trail that made me nervous. i turned around and went back to my car and want to know if i really need to go back to my car. he held a pistol with picture and he said, is this bear poop? [laughter] isn't that great? and the good thing is i actually knew the answer. and the answer was no. he could've kept on your hike. there may have been bears but they weren't pooping on the true. it was a large ungulate that it pooped their own while ago. that it was pretty obvious for those of you who know that. anyway, i have a broad portfolio at interior and i'm not going to cover the landscape at this time. my focus today is on the administration's conservation agenda and that's when going to concentrate my words today. as time he mentioned, i've bee

kate kelly is live with the latest on that. >> reporter: i am out here where the trial is now underwayence phase just began. this morning following opening statements. a little earlier than expected. as part of the evidence phase of the trial the prosecution called cfo and me seengsly what's happened so far is a lot of instructions toless jury, sort of about how a hedge fund works, what a guy like michael steinberg, the trader who ran a portfolio there, did. and essentially, he's accused of using insider information to short a couple of tech names back in 2008 and '09, specifically dell and invidia, and getting ill-gotten gains, profits of $600 million or so. they walked through the money he made during the years in total, what his bonuses were. for 2007, for example, profits of $27 million and a bonus just of $5 million. a little bit less than the two years that followed. speaking of less, the cross-examination from steinberg's own attorney of dan berkowitz sought to me to portray steinberg as a bit of a cog in a wheel at a very large company, limited in the amount of capital he could

kelly, thanks. >>> it was an unusual patchwork style election night last night across this country with some notable firsts when voters woke up this morning. our national correspondent kate snow is with us for more on that. >> let's start with new york mayor. bill de blasio becomes the first democrat since 1989. in boston they've gotten used to saying mayor tom menino. marty walsh is the new mayor. he is irish american, the son of irish immigrants. detroit has elected its first white mayor in 40 years. and in seattle, ed murray is that city's first openly gay mayor. and a few ballot 34measures to tell you about. in colorado, there's a pot tax coming. in portland, maine, they also made recreational potts legal. and a domesticed air conditioned sports arena, they called it the 8th wonder of the world, a measure to save houston's astro dome failed. it is going to be torn down. >> a big change to the horizon. again, a patchwork of an election night last night. kate snow with us for the report. >>> still ahead, was it poison nine years after the death of a controversial world leader? news about possible evidence about what killed him. >>> later, a story about adoption featuri

indicate kelly is following that situation in manhattan and she joins us with the latest. hi, kate reporter: sue, thank you so much. before i get to the courtroom action, i just want to mention breaking news i just got which is that the chief operating officer of s.a.c. capital has just resigned as of this morning. his last day will be at the end of january 2014. steve cohen in what would be one of his first letters to the staff since the settlement a couple weeks ago talked about becoming a family office and transitioning into a new mode and cumin leaving as part of all that. back to the courthouse behind us, we're midway through a day of questioning that started with cfo dan berkowitz of s.a.c. capital kind of giving the lay of the land at the firm and where michael steinberg who's on trial for alleged insider trading fit within that mechanism. right now we're under way with multiple hours of questioning of a gentleman named jesse tortora. he was a hedge fund worker at an unrelated firm called diamondback who has pled guilty of securities fraud and conspiracy in terms of engaging