feel more. >>> who brought down bernie madoff?ff ran a fake business, a fake investment scheme. he told people he was shrewdly playing the market with their money earning them a solid, never-changing 12% annual rate of return. that meant you could double your money by investing with bernie in six years. sounds great, right? but in reality, bernie madoff wasn't trading or investing in anything. he was just taking people's money and using it to pay off other investors. it was a ponzi scheme, a $65 billion ponzi scheme that unraveled in december 2008, about a month after the presidential election. here's the thing, though. who brought bernie madoff down? who exposed him? who caught him and got him arrested? no one did. madoff turned himself in when his ponzi scheme collapsed on its own. ponzi schemes need a constant supply of new money to keep them going. when the economy had a stroke at the end of bush's second term, there wasn't enough new money around to keep the scheme going, plus some investors in the scheme found themselves in

cisco. >>> an update on the madoff ponzi scandal. the madoff whistle brother, harry markopolis about his effort to bring down the ponzi master. mary thompson sat down with him to hear all the gritty, glory details. hello. >> it was an interesting interview. it's a well-known fact that the s.e.c. repeatedly ignored markopolis's warnings and his $65 billion ponzi scheme. what we didn't know and what markopolis writes about in his book "no one would listen" he tried to bring this to the attention of the former governor, ellioiot spitzer. >> you actually had a plan to go down and kill madoff yourself? >> i did. and rightfully, so. speaking to the fbi. they told me for that kind of money a lot of bad things happen to people. >> during your investigation, you actually went up to someone or an aide of someone who you thought had the fight in them, that being the former governor of new york, the former attorney general of new york, eliot spitz spitz spitzer. you presented this to an aide and took out your name and said, please give this to h

the sec investigators whereafter madoff again and again from 92 on. they always missed it. why was that. their defense was they were inexperienced and incompetent. i don't know if that's a satisfying answer. >> a set of the investigative unit for abc, when is the first time you heard of bernie madoff? >> tonight he was arrested. we just finished reporting on rob okoye veg and my friend got an e-mail from the fbi saying bernard madoff arrested, $50 billion scam. i soon found out. >> what kind of resource dated you and your unit turnover? cannot clear the entire abc investigative unit immediately launch into action. much of it for broadcast but there were so many great details and facts that just could not sit into the world news pipeline for 2020 so we just ended up doing this book. at the first book i've written. >> it is your first book. >> i'm a rookie at this. and here i have as much as i wanted. >> how cabbage how did she say writing this into your work? >> 430 caulk in the morning was a good time to write and they gave me time off over the july 4 weekend. so over june

that's the ruling today from the judge overseeing the liquidation of madoff's defunct business.it's in agreement with the trustee in the case, and his "money in, money out" formula to decide claims. about 100 of madoff's ponzi scheme victims plan to appeal today's decision. >> jeff: if you have little or no equity in your home, you now have more time to refinance your mortgage. the obama administration is extending the home affordable refinance program. it was set to expire this june, but will now run through june of next year. the program lets borrowers who owe up to 25% more than their homes are worth refinance to lower interest rates. it was originally expected to help up to five million homeowners. so far, it's only helped about 200,000. >> susie: "exceptionally low for an extended period". those few words have been the federal reserve's policy on interest rates. tonight's commentator makes a case on why that fed policy makes sense. he's president of woodley park research. >> ten days ago, the federal reserve increased an obscure interest rate-- the discount rate-- raising w

madoff. history to them and somehow they couldn't be bothered to conduct a thorough and proper investigation because they were too busy on matters of higher priority. if a $50 billion ponzi scheme doesn't make the s.e.c.'s priority list, then i want to know who sets their priorities. >> all right. here he is. i've talked about this guy. very excited to meet -- >> you love him. >> i love him. with us now, the man who blew the whistle on bernie madoff's $65 billion ponzi scheme but was ignored by the s.e.c. for ten years, harry markopolos. he details his story in the new book "no one would listen: a true financial thriller." we're very happy to have you on the show today. i want to start backwards. first of all, lacking now at the situation, given everything you've brought to the table and what you've witness with eberni madoff and others, has anything changed at the s.e.c.? >> yes, they've got religion, especially when it comes to ponzi schemes. now they're a high priority. >> would this have

bernie madoff told them.rnal bureaucracy problems and other things, they have all the problems bubbling up in the bernie madoff case. the sec is trying to learn those lessons and reorganize itself internally so it does not happen again. host: what is the difference between the two offices in new york and washington in the sec? guest: the office here is the headquarters and they do a lot of their work and actual rulemaking. by contrast, the new york office has some role in writing the rules. they are inside the investment banks and other wall street companies. they work with prosecutors on sec cases. that happens in washington, too, but mainly in washington they are involved with rulemaking. there is an overlap but that is the general distinction. host: republican line in flatwoods, caller: k ky. caller: the old soviet republic brushed away the idea of communism and saw that democracy would work and were smart enough to make a change per at -- a change. why is it our government say that the communists can make

madoff was treated for a broken nose, fractured ribs and a cut on his face. one said a despite was over money. prison officials deny that the attack ever happened. >>> lawmakers have approved legislation that would reduce the balance of jail time for offenders found with crack versus those caught with cocaine. possessing five grams of crack and transferring 500 grams of powder cocaine have the same sentence. the new law would make it an 18-1 ratio. >>> ron washington admits he made a huge mistake last season using cocaine and failing a drug washington says he offered to resign. but rangers' nolan ryan turned him down. >>> michael jordan's record at the helm of the charlotte bobcats is now 1-0. they beat the oklahoma city thunder last night, hours after the nba approved his $275 million bid to take over the financially-struggling team. the deal makes jordan the first explayer to become a majority owner in the league. >>> speaking of basketball, hurry up and fill out your brackets. this year's edition of march madness is hours away. the first of 16 games trippe

this bill is based on bernie madoff economics. and it includes things he campaigned against hillary clinton and john mccain on during the campaign. >> all right. >> it is a bad bill for america. we will fight the election on this. and the democrats will have significant losses in the house and senate as a result of this bill. >> you have ten seconds. >> listen, karl and a lot of the republicans want to call the election all over. health care reform is good for people. and it's good for the country. >> for the longest mission -- >> karl rove? >> you should not denigrate the mission like you just did. >> karl rove, joining us from indianapolis. thanks for joining us on "this week." david plouffe, thank you very much. i think we'll be debating some more. >>> coming up, a special "roundtable," george will, sam donaldson, democrat tom daschle and republican trent lott. >>> and "the sunday funnies." >> they're working on declaring march 18th as st. obama day. we want to honor the president for driving the democrats out of washington. ye

i think that he should be in there with his buddy, madoff. host: william cohan? guest: i agree with some of what he said, but equating henry paulson with madoff is a bit too far. henry paulson was right when he was saying that the sky was falling, metaphorically. the sky was falling. it was not his doing. frankly, even though everyone likes to come down hard on goldman sachs at the moment -- my new book is about goldman sachs, i wanted to make sure the people understood that -- they were better at understanding the risks than the rest of wall street. not much better, but better as a relative matter. as i said before, this was a crisis that did not have to happen, completely avoidable. wall street executives talked about it before, testifying in front of congress, they thought it was a once in a lifetime tsunami. i completely disagree with that, they knew exactly what was going on. they could easily have prevented this from happening. they may have had to laugh off 5000 employees that were dedicated to creating and manufacturing, selling toxic securities we have n

. >>> there is news this morning that bernie madoff was attacked behind bars. suffered a broken nose, ribs and cuts to his head and face. he is serving a 150 years. he will be 72 at the end of april. >>> the is a new law boosting the economy and getting people back to work. president barack obama signed the new jobs loss. it offers tax breaks to companies who hire new workers and highways and construction programs. skeptics are saying it will only create 250,000 jobs. >>> the top 50 offenders in maryland are being called out. >> really? >> yeah. >> that's a lot of money and are they going to go after them? ÷÷÷÷÷÷÷÷÷÷÷÷÷÷ do you know what's in your spread ? in land o' lakes spreadable butter with canola oil, there are just three natural ingredients. delicious sweet cream, canola oil and salt. nothing hidden, nothing artificial. spread pure, natural goodness straight from the fridge. discover land o' lakes spreadable butter with canola oil. land o' lakes, where simple goodness begins. >>> welcome back. flooding fears continue in the midwest. the red

bernard madoff's former employees have been indicted. they have been accused of helping him program a computer to falsify recds. thousands of investors lost billions of dollars. wachovia has agreed to pay one and $60 million saying they laundered illegal drug profits. that means wachovia will not be prosecuted. prosecutors say it is the largest case of its kind brought against a u.s. bank. >>> for g it is for lovers. for lawmakers, virginia is also for viagra -- virginia is for lovers. legislators have found enough money to retain funding for the little blue pills. >> the virginia general assembly adopted a painful budget. millions of cuts in law- enforcement and transportation. one thing did survive, viagra. $3 million was approved to pay for erectile dysfunction drugs. ttim kane wanted to eliminate it but someone sneaked back into the budget. >> ic e i see it and ask, is ths erectile dysfunction? >> it is difficult to trace supporters. we found plenty of opponents. >> the cut funding for schools, music, sports and everything else. but

with the madoff name for his brother's fraud.ustee says his family profited from the ponzi scheme and they should return the money. madoff is serving 150 years in prison. >>> still ahead, some surprising comments by the attorney general about osama bin laden and why he thinks the u.s. will never catch him alive. to a well-equipped buick lacrosse. get inside each. and see what you find. if perfection is what you pursue, this just might change your course. meet the new class of world class. the twenty-ten lacrosse, from buick. may the best car win. hey what's going on? doing the shipping. man, it would be a lot easier if we didn't have to weigh 'em all. if those boxes are under 70 lbs. you don't have to weigh 'em. with these priority mail flat rate boxes from the postal service, if it fits it ships anywhere in the country for a low flat rate. no weigh? nope. no way. yeah. no weigh? sure. no way! uh-uh. no way. yes way, no weigh-ing. priority mail flat rate box shipping starts at $4.95, only from the postal service. a simpler way to

don't bernie madoff me is what she should say. >> this did come from the national enquirer. hate to say they can't trust him. they were right on everything. who knows, maybe they will be right on this, but you can never tell. >>> coming up, presents for everyone. of course bill gets nothing. what is going on with america's first legal straight male prostitute? about as much as you think. ps, anyone looking for a good gardener? he's available. >>> does wedlock make you weigh a lot? if you mean fatter, yes. if you have an appetite for crill, maybe. that's what they say in greece, the birthplace of bobsleding. they claim married people are twice as likely to become overweight than single, single tons who are single. they say couples who tie the knot are more apartment to let themselves go while unmarried stay a lot of time staying fit to attract a partner. thank you science for that science explanation. says one of the co authors of married people, the need to hunt for a partner is reduced and stress and anxiety is reduced. there is less smoking and one's appetite increases. bo

you get a situation that madoff whistle-blower harry markopoulos described in the following way. >> i'mgesting that if you flew the entire s.e.c. staff to boston, sat them in fenway park for an afternoon that they would not be able to find first base. >> then there is the issue of the credit rating agencies. firms like moody's and standard & poor's, names you may or may not have heard. they assign grades to the quality of securities. in theory, they're supposed to be a safety net for investors. they're supposed to protect shareholders and investors by giving fair grades. saying this is high risk, this is low risk. too bad that their interaction with the big banks who sell these risky securities works a little bit more like this -- >> what's that? what is that? >> you're not an educated man. let me pay you the complement of being blunt. there is large, a large and popular business which you are causing dismay. >> which leaves us nicely into the problem of the fact that the cops work for the crooks in our financial system and there's a revolving door between the low-paid police force and

we have the madoff whistle-blower tomorrow. >> markopolos, from boston. >> yeah. >> you are adorable.ite the fact he just admitted on tv, and it makes me a little sad, he was cheering against jay leno. >> come on. you're putting words in my mouth. jay will never have me on his show now. jay, you know i would never say that about you. >> we're excited you're back at 10:00 and it's been great to have you here. >> thanks for having me. >> it's been nice to meet you. >> my pleasure. >> be sure to catch two new episodes of "law & order" tonight at 9:00 on nbc and now every monday night at 10:00. i love it! when we come back, what we learn today. can i eat heart healthy without giving up taste? a man can only try... and try...and try. [ male announcer ] honey nut cheerios tastes great and can help lower cholesterol. bee happy. bee healthy. ♪ can your moisturizer do that? dermatologist recommended aveeno has an oat formula... now proven to build a moisture reserve... so skin can replenish itself. that's healthy skin for life. save at aveeno.com. we love getting our outback dirty. because it

, they might as well wear a ball and chain, it's a ponzi scheme a billion times worse than bernie madoff, but congress isn't investigating it, they're running it. >> and now they've added a new entitlement to it, health care. it's just so irresponsible. megyn: but if you talk to the democrats who pushed the health care bill through, they say we need it, that otherwise we were going to implode and it would have been much worse for our children who weren't getting coverage. >> yeah, and if you believe what the cbo says, what the cbo says, they are going to put medicare, which they would have to do to pay for it and they never cut anything. they're going to cut the doctors' pay? no, they're a powerful lobby. megyn: whose children were those? first of all, you put children in jail, now we see you taking toys from them and literally having one watch with a ball and game. >> we libertarians believe in voluntary action so these were volunteer parents who brought their kids in to be abused by me. megyn: and now they'll have that forever more to show that to their own children. >> we warned you a

used, and i sure people's hearts and minds are pure and clear but they are accounting would mcburney madoff blush. we are talking ten years of revenues matched against six years of program. every single decade is the democratic majority in tandem turning off this program? for four years after this year than are you going to have you're 21, 22, 23% pay cut for doctors under the medicare system? for clamming medicare savings twice on your revenue side. you're claiming 520 billion in medicare cuts, 210 billion in medicare taxes, but this is double the counting. you can't have it both ways. either the money is used for the solvency of the medicare system where it is being used for your new entitlement. that brings us to the class act, the new in title mind that you are putting into this program. five years of premiums, $70 billion that he were taking out of your brand new entitlement to do is to reduce the cost of this. so are you going to pay it back? even the democratic head of the budget committee said, quote, this is a ponzi scheme. this is the democratic chairman of the senate budget commi

bernard madoff the fallout from the crime of the century still leading to foreclosures. >>> we'll toss to the market action right now and bob pisani kicks it off at the new york stock exchange. nice, green day, bob. >> yes. financial s holding up pretty well. i just want to show you the etf for south korea, which is a basket of south koreans thoughts. reports in the last hour that south korean naval ship sank following an explosion near a disputed border with north korea. we had the squirmishes in the past and trying to get more information on what is happening. this had volume in the last hour and, again, we'll get you more on that as soon as we get it. weak dollar here today. a lot of the big material stocks and international stocks that are in the industrial space have been up and down this week on the week or the strength of the dollar. this is, of course, on euro strength and weakness and we have a little more clarity in greece. dollars weaker here today and the big material names have been to the upside. financials have had a mixed day here. interesting comments. bernstein cut 20

senator kent conrad has called this a ponzi scheme of the first order that would make bernie madoff proudother fictitious claim, $15 billion cut by the independent payment advisory board. this is an un-elected body who will be able to force medicare cuts and reforms throughout the system. congress can only vote to stop these if 3/5 of the senate votes to stop the cuts. now they have continually talk about tax on cadillac health care plans. they use this, it's a saving of $32 billion. you know whose cadillac health care plans we are talking about? we are talking about unions. they are the ones who will be affected. do you think the democrats are going to tax union cadillac health care plan? that's not going to occur. i tell you that once this gets passed they are going to repeal this tax at future points. 10 years of taxes to pay for six years of benefits, i mentioned earlier. the two large cost drivers are medicare expansion and the health exchange but there are only six years of exchange cost in the budget window. again that's a gimmick. these costs were not included by the c.b.o. becaus

grassley: before i speak, i would ask unanimous consent that brittany madoff of my staff be granted floor privileges for the duration of the debate. the presiding officer: without objection, so ordered. mr. grassley: i want to speak in support of senator inhofe's amendment, 3588. that would be to exclude medical devices for children and persons with disability from a medical device tax. i know when you talk about a medical device tax, and if it's on the manufacturers, you're going to say well, what should i be concerned about that for? because some manufacturer is going to pay it. well, don't fool yourself. you know, corporations don't pay taxes. only people pay taxes. and there's three categories of people that pay taxes: either stockholders or employees or consumers. and i'll bet in most cases consumers end up paying for that. so, this provision in this bill is much broader than the inhofe amendment would apply to. but i think senator inhofe has picked out a very important aspect of adding taxes, the extent to which surely the vulnerable people that you call children and persons with di

when i heard a colleague talking about fiscal responsibility, it's a little like listening to bernie madoff talking about tough accounting rules. it's a little bit like talking or hearing from brett favre about promising he'll retire. it's a little bit like listening to saoeupl co-- simon cowell delivering a lecture that people shouldn't utilize sarcasm because after these unfunded giveaways my colleagues put together a republican filibuster to attack the american worker in a completely inconsistent manner. so, i would say i have a different outlook. i think many of my colleagues here have a different outlook that we should be here to make america work for working americans. and that means that when they're hurting, we're going to assist them with unemployment insurance. we're going to help with the kpwa extension. we're going -- with the cobra extension. we're going to help with loans to small business and we're going to help seniors by fixing that medicare provision. we're not going to take the hammer to those programs. we're going to assist our working families. because of this republica

used, and i sure people's hearts and minds are pure and clear but they are accounting would mcburney madoff blush. we are talking ten years of revenues matched against six years of program. every single decade is the democratic majority in tandem turning off this program? for four years after this year than are you going to have you're 21, 22, 23% pay cut for doctors under the medicare system? for clamming medicare savings twice on your revenue side. you're claiming 520 billion in medicare cuts, 210 billion in medicare taxes, but this is double the counting. you can't have it both ways. either the money is used for the solvency of the medicare system where it is being used for your new entitlement. that brings us to the class act, the new in title mind that you are putting into this program. five years of premiums, $70 billion that he were taking out of your brand new entitlement to do is to reduce the cost of this. so are you going to pay it back? even the democratic head of the budget committee said, quote, this is a ponzi scheme. this is the democratic chairman of the senate budget commi