madoff. harry describes madoff -- this was madoff perpetuated the greatest financial crime in history. over the course of more than a decade he stole $65 billion from many investors all over america and europe. so, harry, you are a chartered financial analyst chartered-holder as well as a certified fraud analyst. and you have a background in the financial industry and then as an independent fraud investigator. tell us a little bit about what this means? what does it mean to the analyst that you described yourself financial analyst? .. depending on how you look at it and then he built as broad a ponzi scheme. >> guest: i first noticed in 1987 when i was an over the town it market maker. >> host: what does it mean to be in over-the-counter market maker. >> guest: my parents owned a firm, through a computer system called the nasdaq and it was done with a combination of computers and phone calls back in the day in the late '80s and he was a legitimate market maker, he was a big presence on wall s

when did you first hear of bernie madoff? i and and yet a legitimate business and then had this ponzi scheme. >> guest: 1987 when i was in over-the-counter market manager. >> host: what does it mean to be in the over-the-counter market manager? >> guest: it is a brokerage firm we but trade securities on exchange through the computer system and was computers and phone calls back in the day and in the late 80's and he was a legitimate market maker, he was a baby will street. i knew him as a broker-dealer, dominant in the counter market. i didn't realize he was managing money until the late nineties and it was on my radar screen looking back in late 99i said to the consent frank on my team to new york to meet this madoff and he said he seemed unusual and was in the drift of state which is the arms market state and wanted to find out what he was doing and he came back with a tear sheet marketing if he will and in five minutes i knew it was a fraud. >> host: how did you know so quickly it was a fraud? >> guest: the description con

in 2000 when we first discovered by madoff, i was fantasticed by my bosss to compete with madoff. i knew it was clearly impossible. it wasn't fair. it's hard to compete against somebody who types his numbers into a computer every month and they're all false returns. you can't compete with perfection. for the first 2 1/2 years, he was definitely a competitor, actually for the first four years. after i left the industry in august of 2004, after that, it was because it was important to us to stop him. >> so your boss comes to you, here is how this story really begins as you said a moment ago. your boss comes to you, wants you to compete with bernie madoff because he can't figure out how bernie is making money that y'all ain't making. he wants you to compete and beat bernie madoff. you dig into how well he is doing. when do you come to figure out that you can't compete with this guy because he is cheating? >> that took about five minutes. i read his strategy description. just from the holes in that description, it appeared that madoff would only have to pick stocks that went up or sta

and that's the way madoff was.nd they look and feel the smart people that were in there and say this is smarter than me and they are in the madoff. certainly they match the check. and everybody assumed someone had checked in effect when i checked the mail women willingly thinking they didn't need to check. if you're an investor you cannot abandon your responsibilities to others. actually to take some responsibility and figure things out and ask questions on their own. you can't just trust people willy-nilly. these people were not from finance. they would have understood the strategy they didn't even know what the were due diligence meant an unfortunate they became big dams. the portfolio seemed diversified he was one of the cofounders of nasdaq supposedly. he was former chairman of the regulatory body. his team ahead and impeccable pedigree, but the white-collar fraudsters always have the best resume, live in the finest houses, to donate to charity, seem like nice people and we find out they're nothing but human pr

madoff. they did this this service to customers and that is a very high number. >> guest: it is a high failure rate and nothing to be proud about, nothing in this case to be proud about. >> host: now what about big financial institutions. to talk about how some of the big banks mention goldman, you mention morgan stanley, you talk about an individual at citigroup who seemed to be on top of this and you say of the institutions if they do not have felt right proved that this was a bad deal, something is coming on, the suspected that. did they have a responsibility to see something and to what and whom and when? then you also mentioned a couple of european institutions and put madoff on the blacklist. they said they would not lend their clients' money to invest. >> guest: they had an ethical responsibility efforts were not falling short where they would have been. legally they did not have a responsibility. it proved self regulation in the capitol market doesn't work because of you see scott goi

bernie madoff have a row? >> they started in the early 1960's. she was still keeping the book the day he was arrested and she didn't know directly. she was certainly long for the ride. unlike an them to bonnie and clyde. anyone who didn't buy guns was part of the scheme. >> did you see that the story will continue with more trials? >> it is the layers of the onion being done peeled. i recommend the failure of the federal government. as investigators were after bernie madoff again and again from 1992 on they always missed him. and their defense is they were inexperienced and incompetent but i don't know if that is a satisfying answer. >> as head of the investigative unit one was the first time you heard of bernie madoff? >> the night he was arrested and was sitting in new york next my colleague. we had just finished reporting on rubble of its, the governor of illinois and bernie madoff was arrested, $50 billion scam. i don't know who he is but that is a typo. that would be the biggest in history. i soon found out. >> what kind of resources did you

fraud investigator markopolis author if no one was in talks about the ponzi scheme run by bernie madoff if all ten years before it became white man and his effort to get the sec and the media to act on his information. he discusses his book with guest host nicole author if after the fall saving capitalism from wall street and washington. >> host: hello. i have the honor to be here this morning with harry markopolos, the author of "no one but a list of the true financial thriller about a story of bernie madoff. terrie describes madoff as the greatest financial crime in history over the course of the decade he sold $65 billion from money investors all over america. so you are a chartered financial analyst holder as well as a certified fraud analyst and have a background in the financial industry and then as an independent fraud investigator. tell about what this means. what does it mean to be a quantitative analyst you describe yourself chartered. what does this mean in terms of for what you do every day in and why you were the person to sort out his fraud. >> guest: started in 2000i was

madoff managed to so expertly fool the staff with. we are doing much better. over 500 employees have undergone training. we have put in place new rules that will allow us to leverage the work of accounting firms when an investment adviser -- that are now required to have a surprise audit by up dca are registered accounting firm and allow us to have access to that information immediately so we can look for suspicious activity. as i mentioned in my statement, we put in place a system to try to better track ships and planes and referral so that the kind of information -- tips and complaints and referrals so that kind of information will not slip the the cracks. we worked day and night to do everything we can to minimize the chances of a terrific event like this ever happening again. i share your deep concern about it. >> i appreciate your response and your obvious interest in helping to change things so that it will be less likely, not likely at all for something like this to happen in the future. i wish there were some way we could provide some kind of restituti

madoff managed so expertly for the staff. we are doing better training.over 500 employees have gone through either certified fraud examiners training or chartered financial the analyst trading. we put in place new rules that will allow us to leverage the work of accounting firms when an investment adviser assets with inflation which has happened in the situation they are now required to have a surprise followed by the registered accounting firms and allow us to have access to that information immediately saw the commit for suspicious activity and as i mentioned in my statement we have put in place a system to try to better track complaints and referrals to the kind of information that the staff had about bernie madoff will have far less chance of stopping through the cracks. we worked day and night to do everything we can think of to minimize the chances of horrific event like this ever happening again. i share your deep concern about it. >> i.t. appreciate your response and the obvious interest that you have in helping to change things so that it would b

. >> neil: bernie madoff almost got away with it and we may know why.he folks at the sec were watching this. ♪ [ music ] any questions? >> yeah, lots of them. like porn, why were so many watching porn? according to a memo, some senior staffers at the sec spent more time looking at pornography than fighting crime. one guy in excess of 8 hours a day and he was the top attorney. reportedly visiting website like naughty.com. u porn and skank wire. all right. with us, the guy who uncovered this, so to speak, the sec inspector general, david kotz. this builds on early fears this was just something limited to lower ranking officials, but it went up the food chain. do you know how many were involved? >> we found instances, as we said, 33. i know of 31 in particular since i joined the sec as the inspector general in the past 2 1/2 years. 31 instances in the last 2 1/2 years. some were senior officials. >> neil: through the last 2 1/2 years? >> since december of 2007, we've found -- issued 31 reports. some were senior officials. >> neil: that's what makes this so

. >>> bernie madoff's exclusive penthouse is off the market. it sold for $8.8 million. that's a million less than the original asking price. the buyer is a toy executive who was behind the cabbage patch kids. money will go to reimburse madoff's victims. >>> starting next hour, tiger woods begins his quest in his return to golf. kerry sanders is at the masters in augusta, georgia. what are you seeing in terms of crowds today? >> reporter: huge. very, very busy. it is a sought after ticket. if you have a ticket today and wanted to sell it to the aftermarket, you could get upwards of $750. everybody wants to be out there at 1:42 when tiger tees it off. i think the speculation ends and analysis begins. did he lose his game? was this scandal so impactful on his life that he can no longer compete with the others here. that he's no longer the uniquely focused athlete, or can he still conpartmentalize his life as has been said when his father died and other traumas he's had to deal with, and focus just on that little white ball and the cup down there on the green. it will be in

today with her eight markopolos he is the author of no one would listen about the story of bernie madoff. harry describes madoff that he perpetuated the greatest financial crime in history of more than a decorated stole $55 billion from many investors all over america and europe sell you are a chartered financial all analysts as well as a certified fraud analyst and a background in the financial industry and adds a fraud investigator tell us what does it mean to be a quantitative analyst what does this mean in terms of what you do every day and why you were the% to ferret out the madoff fraud? >> guest: nawaz day portfolio manager managing billion of dollars in equity derivatives-- derivatives

staffers were looking at something tangentially related to the ongoing fraud. >> actors playing madoffs of the scandal. i'll go as far as that. >> are we surprised this happened? no one is surprised at this point this happens, are they? >> one thing, pornography, this is a serious point, infiltrating every area of the culture. >> not funny. i know i shouldn't be laughing. >> you know? >> it's not funny. $12 billion things on s a year. those who can't do, watch. naomi campbell was asked by a producer about a diamond she might have received from a dictator in africa. let's listen. >> had dinner with charles taylor? >> i had dinner with nelson mandela, thank you very much. >> did he bring you a diamond? a diamond in the rough, a large diamond? >> no, we're not interested in -- >> we're told you didn't help the prosecution in this case. >> thank you so much for that. >> get up. >> apparently -- there we go. apparently, gutfeld, diamonds and dictators are a girl's best friend. >> absolutely. >> what about this? >> supermodel is like a small european country. all their lives are used to a se

how did they let an individual like bernie madoff slip under their finger? so, i think that the word pathetic could really be triggered at the sec for coming up with something like this. but i think right now, between what's happened on wall street to main street. what's happened in the housing sector. the sec has to do something and go after somebody. and goldman sachs is your first primary target. and for the record, do you own goldman shares yourself? no, i do not own goldman shares. but i will tell you this, that if goldman got into the 135, 140, i would certainly be looking at maybe six months, nine month out options. call options. i would be looking for it buy down in there. ok, well let's talk about overall financial sector. since the sec may be looking at other banks. do you short financials now, or do you still buy them? no, i like financials. i think like bank america, i still like bankamerica. but, bankamerica up at 19 and the whole financial. if you look at the xl f, just as an index or an exchange traded fund. you see the percentage gain that we

i have to be honest, i think the sec made the same thing, intimidated by the bernie madoffs and large corporations. by the way, speaking of the government, nonunion shops need not apply for government contracts. another pro union rule from the white house that someone warns is not only discrimination, it's damnation for the job market. (announcer) we're in the energy business. but we're also in the showing-kids- new-worlds business. and the startup-capital- for-barbers business. and the this-won't- hurt-a-bit business. because we don't just work here. we live here. these are our families. and our neighbors. and by changing lives we're in more than the energy business we're in the human energy business. chevron. [ male announcer ] we call it the american renewal. because ge capital understands what businesses need to grow. that's why today ge capital provides critical financing to more than 300,000 growing companies. ♪ let's take a look at the stats. mini has more than double the fir and whole grain... making him a great contender in this bout... against mid-morning nger. honey nut che

there were federal regulations already in place that missed the lehman collapse and of course bernie madoff. so, they ask, how can you be sure more of washington will actually solve the problems on wall street? >> this is a big week, a big debate. thank you, david. >>> and also in the news tonight, a big decision from the supreme court. saying today, the law does not make it a crime to sell films of pictures that show cruelty to animals. the vote was 8-1, a victory for those who argued free speech. an million rights organizations were outraged. pierre thomas is our justice correspondent. >> reporter: today, the supreme court ruled that this video of dogs savagely fighting, which some believe is animal cruelty, is perfectly legal to sell. >> animals all over the nation lost. dog fighters won. crush video producers and purveyors won. and we now need to pick up the pieces. >> reporter: the legal debate centered on this man, robert stevens, the narrator of that video on dog fighting, which he calls educational. he was prosecuted for violating a 1999 law that banned the sell selling of depiction

sec that does such a great job, it turns out they can actually find porno, but can't find bernie madoff. these are the type of people. >> with clothes off. >> listen, i work alone (laughter) >> the bigger issue, when we look at common sense, let's take common sense, which is not to add another level of bureaucracy that is from a failed business model that can't find their way out of-- >> do you rell think consumers know where to go if they've been defrauded that they know where to go? this way they can have 1-800 number and call up and say, hello, government, this guy told me he was going to charge me $100 and he charged me $500. >> mark, credit is not a social right. >> i don't have a right to defraud you. >> they slapped other fees on and paid it off and shut my account down, it's not a social right. >> actually if you buy the furniture on the installment plan and know what you're paying, you're point the government nanny state needs to tell me. how about the buyer figure out what the hell they're paying. >> brenda: guys, hold on. >> and contracts-- >> let me ask you one question, is

by 2008, she and rachel madoff, to listen to each host of their own talk show and it was no big dealat all. in fact, millions of us love them. and alan's wedding to her girlfriend was blast all over the cover of people, just like that of any straight celebrity. feminism? who needs feminism anymore? aren't we like so done your? okay, so some women moaned about the sexes coverage of hillary clinton, picky, picky, picky. so wait a minute. the top five jobs for women are not a tourney, surgeon, or the ceo. they are, in order, secretaries in first place, followed by registered nurses, elementary and middle school teachers, cashiers and retail salesperson, farther down the line mates, childcare workers, office clerks and hairdressers. not a ceo or a hedge fund manager inside. and in the end not a president or the vice president either. but what about all those career driven girls going to college and supposedlsupposedly leaving the guys in the dust? a year out of college young women earned 80% of what men make, and 10 years out 69%. and if girls and women who have come so far, and full equ

. >> madoff does not exist without tiger woods. >> a sex scandal threatened to ruin his career. a storied career with 14 majors. the two victories world wide. after gawks exile, the four-time masters champion is fighting to reclai the trophy. >> there has never been a more important week in his life than this week. a story of fans and how they will react. this will be the most watched golf event ever. >> and not a moment too soon for the town of augusta. >> it has been challenging at times. a lot of sectors in the tourism industry have been challenging. >> history may be in the making. >> if attacker wins the masters, people will stand there with their mouths -- it tiger -- if tiger wins the masters, people will stand there with their mouths open. >>> your traffic and weather together every 10 minutes. >> we do have a lot of traffic out there. a full complement on 95. this is 95 traffic between dale boulevard and lorton. traffic making its way on route one to get up to fort belvoir. 395 slowing after edsall road to get to landmark. we will take you to springfield. headlights nor

. >> speak of strategies, bernie madoff the famous schemer didn't tell his customers much of his financial and investment operation let alone his financial strategy. if you have a secret method from a financial advisor, is that a red flag, how much should you be able to understand? >> well, i think it is a red flag. i mean it is either they are making it so complicated that you know, they are trying to sound smart or they are not telling you anything at all. they could be hiding fraud. or they could be hiding the fact that they really don't have a thorough strategy. i guess it is possible that they have some great secret that is going to make a ton of money. but given the two out of those three alternatives are bad, are you probably better off going with someone who can explain their strategy. >> we appreciate the ideas on your mind and your money. thank you so much. >> thank you. >> our guest this evening professor john nofsinger of washington state university. we will be back with your next mind and your money segment on may 10th. >> susie: here's what we're watching for tomorrow. as we

even, critics say, as the agency was turning a blind eye to bernie madoff's fraud scheme and the looming financial crisis. >> you read about federal employees doing that, you think it's another example of the waste of taxpayers' money. >> reporter: more than half of the 31 offenders were highly paid staffers making between $100,000 and $225,000 a year. including a senior attorney whose s.e.c. laptop contained 775 inappropriate images. an accountant who tried to access sexual or pornographic web sites 16,000 times in one month. and another senior attorney who admitted to spending up to eight hours a day downloading porn-- even after it swamped his hard drive. s.e.c. officials argue that for an agency of 4,000 people, 31 violations in two and a half years is actually not bad. according to a nielsen survey, in march alone 29% of americans with work computers used them access adult web sites, spending an average of 1:45 on such sites over the course of the month. michael robinson is a former s.e.c. spokesman. >> this is a salacious issue, especially because it happened at a regulatory organi

on sunday night the nation's fiscal future went from grim to grimmer if one takes out the bernie madoff accounting gimmicks like the timing shift the unpaid for doc fix the rate on social security the double accounting for half a trillion of medicare cuts the true cost of the government health care take-over bill is $2.3 trillion or another $20,000 per american family. this son top of the fact that our deficit has increased tenfold in the last two years. the president has submitted a budget that will triple the national debt over the next 10 years a budget even his own omb director says is unsustainable spending percentage of the economy 24 nlt.p% of gdp highest since world war ii caused to say "the outlook for federal budget is bleak, u.s. fiscal policy is on unsustainable path. congressman said about spending patterns itth it could trigger economic and political death spiral unless the congress and president have a sudden epiphany of fiscal sanity this story does not have a happy ending ends in job crushing family budget crushing tax increases skyrocketing interest rates as we beg the

investigator robert heinze says the agency was embarrassed by its failure to heed warnings about bernard madoff's stock fraud scheme. the word was out on this guy. how does the s.e.c. avoid not reacting to this? >> reporter: but s.e.c. commissioners were divided over filing the goldman suit. two republican commissioners voted against and two democratic members in favor. it was chairman mary shapiro-- appointed by president obama-- who broke the tie. >> chairman shapiro, was this political pressure in the goldman sachs case? >> absolutely not. >> the fact that they wanted the case to come out now doesn't mean it's a bad case or there's anything improper. >> reporter: former new york state attorney general eliot spitzer knows how to play hard ball with wall street. can you explain what the strategy of that is? why do you get this aggressive with a company? >> because you have to. the reality is, if you look at the last two years, most people would draw the conclusion that wall street doesn't get the degree to which their behavior destroyed jobs, wealth. until they get it, you just have to play toug

they blew it on madoff. they blew it with the bank of america case. they need to show that they can go up against the goldman sachs dream team of lawyers and win. >> jake, we've got to leave it there. thanks so much for phoning in and of course keep us updated on any litigation you hear. gary kaminsky, you're listening in to what jake was saying. what do you think? >> again, i refer to the blodgett thing and i'm going to have to disagree with jacob there. kaminsky, zamansky. this is not like that because the buyers of these products were well aware that these were how these products were constructed. it's not the same thing. it's very good press. it's very good in front of financial regulation. let me just give you one quick point, melissa. the buzz within goldman, i believe, at the end of the day here today was that this is really not a strong case, it was very strange this thing came out midday. something like that has not happened before. it's very unprecedented. and at the end of the day these were sophisticated -- >> got it. >> -- institutional b

the first thing is i don't mention bernie madoff once in my book.irst thing i have to decide whether or not i am going to correct john stewart and decided to not do that. i decided to roll with it. yes, i talked about bernie madoff in my book. he said answer me one question. what is the difference the tween a ponzi scheme and an investment bank which was a great line which he couldn't have used had he not mentioned bernie madoff and thinking quickly, i said something like the truth is obviously bernie madoff was a criminal, went to prison for 150 years in north carolina or wherever and what he did was against the law but what wall street does isn't against the law. they helped write the rules and regulations by which they live. there is a revolving door between the sec and congress and wall street and the money goes back and forth and we all know how this works and it is no surprise, the only indictments are these hedge fund guys. there are no other indictments. wall street has written the rules you live by. when it violates the rule, what goldman d

sachs, which suggests controversy inside the building, and i have no doubt, after bombing out on madoff, steamford and other disasters, s.e.c. is trying to regain its manhood or under mary schapiro, maybe i should say womanhood. we'll talk about that in just a little while, but leading into the experts, i want to say this more. it would be great if somehow washington can solve these issues without totally demonizing, demoralizing, and even destroying america's great global banks. guess what? we need these banks for full-fledged economic recovery. guess what? we also need them for america's full-fledged leadership in the global financial system in the world economy. in other words, can we figure out a way, please, to not throw the baby out with the bath watb? as we get to our panelists, i'm going to withhold my opinions this evening. i want to report just the facts and different points of view and hopefully let you, the viewers, decide. this thing is going to go on for a while. we have ron gib anywhere, currently of sadis & goldberg. we have brad simon at simon and partners. thank you fo

had some unwelcome news to share about madoff and stanford. >> right. were they desiring to diffuse the inspector general's report and that sort of thing? could be an element. i think that's less of an element but all of these things are part of the mix. >> does the case, in your view, signal a more aggressive -- rightly or wrongly, a more aggressive s.e.c., a tougher cop on the beat? >> the s.e.c. has been saying for some time that they're going to be tougher. they brought in rob kazami as the new director of the division of enforcement out of the u.s. attorney's office, a former prosecutor, made a big point of the fact he was a former prosecutor, appointed other former prosecutors within the division. and, you know, i was fortunate enough to be introducing rob kazami on a panel at the tulane institute in new orleans half an hour after his press conference. and he clearly is taking a more aggressive posture. and that was something that the s.e.c., i think, had to do and was good to do. >> he knows the synthetic cdo market inside-out since he was so ins

. >>> mark bernard, madoff's penthouse is off the market.d his wife were worried about the apartment's karma, they fell in love with the view of the manhattan skyline. the couple reportedly paid $8 million for the place. and most of that money will go to madoff's victims. >>> the obama family has new neighbors to meet when they travel home to chicago after seven months on the market. the house next to the obamas and their south side neighborhood has sold for $1.4 million. the listing agent says the new owners weren't attracted to the house because of the president. and that secret service has been in touch. new neighbors for the obamas back home in chicago. i'm sure they'll have a chance to meet. maybe they will bring a casserole. >> they don't spend a lot of time there since coming to washington, but i'm sure at soum point they will go back to chicago. >>> a u.s. attack that led to the death of two journalists. were the proper rules of engagement followed? >>> and the governor of virginia is declaring april confederate month. while the deci

and typically, you know, the sec really blew it with the madoff investigation. they dropped the ball and i think they have a chip on their shoulder. the commission has something to prove here. and by alleging that the golden boys of wall street engaged in this type of fraud, that is very, very significant. >> matt, let me play devil's advocate. if they only made $15 million off this transaction, goldman, why would they take such a risk, assuming these allegations are true, when right now they're just allegations, but why would they take such a risk for $15 million? that's a lot for any citizen, but on wall street for goldman sachs, you know, for the money they make, that's not that much. >> we don't know the entire story here. i've also heard versions where goldman was also short some of these instruments. so we don't know how much they're making out of it as well. the $15 million figure that you're quoting is just the fees they made off the transaction. we don't know what goldman's actual interest was in this deal. that remains to be seen. >> sunny, is it possi

. >> i think i understand that bernie madoff story. >> no wonder bernie madoff slipped through. >> yeah. >> nobody was looking. >> they didn't have -- >> i mean, seriously. we have a big show this morning. dr. jeffrey saks will be joining us here. congressman elijah cummings and moderator of "meet the press," david gregory. we'll get an exclusive first look inside the "politico playbook," and willie's "week in review" and find out which stories make the review. first, bill karins with a check of the forecast. >> mika, severe weather will be the big story over the next three days. sunday will be the rainy, wet day for everyone in new england. have that in back of your mind. today is a gorgeous day. cool, crisp start, a fantastic afternoon. temperature up around 70 degrees in philly, new york, hartford, same for you. buffalo, pittsburgh and d.c., enjoy a fant friday. now let's talk about the bad stuff. 30 tornadoes yesterday. we're on the middle of a four-day tornado outbreak. arkansas, mississippi, louisiana and east texas, that will be the worst of it. forecast, middle of the country, s

aig, enron, worldcom, bernie madoff, allen sanford. all missed by regulators across the board.e have this new bill that you all are proposing, new regulatory agencies. where is your faith come from where two regulatory agencies are going to do any better than the other regulatory agencies that missed all of this? >> well, candy, first of all, those people should be fire if that's what they were doing, number one. number two, we need a cop who's on the beat, not asleep at the switch. and i said that at banking hearings time and time again for the past year and pushed the new chair lady to much more aggressively. and we've seen that aggressive action in the recent goldman case which was bought that which is incredibly, if true, reveals what's going on in the industry. secondly, the consumer financial protection agency, that is basically to empower consumers, to give them plain english language opportunities to understand and be part of the system that protects themselves. at the end of the day, i just think that the abuses of some who maybe were not spending their time doing what

. >> madoff and those crooks on wall street took money from children, parents and grandchildren and greatstments. >> sean: they are using our money so they can buy votes. >> who do you think these big wall street companies were making bets with? my money, your money that's why the government guaranteed it, showed up and bailed them out.0é >> sean: i'll take the companies over the government in washington, -- >> you can vote out the clowns in washington. >> he's the guy who is responsible for most of this >> sean: we have to take a break, come back and continue, straight ahead. a chance to get everyone together for a night where everyone gets just what they want. combine two or three favorites, from new creations like crab-stuffed shrimp and pecan-crusted shrimp to classics like decadent shrimp scampi. it's everything you want in a night out. starting at just $11.99, during the festival of shrimp. right now at red lobster. i'm ed whitacre, from general motors. a lot of americans didn't agree with giving gm a second chance. quite frankly, i can respect that. we want to make this a company a

missed bernie madoff's gigantic ponzi schemes. might it have had something to do with the fact that senior staffers were looking at porn on the government computers? details to get you fired up straight ahead. i'm brian wilson. america's news headquarters live from the nation's capital starts right now. >> brian: all eyes are now on arizona. the state is home to an estimated 460,000 illegal immigrants. as soon as arizona governor jan brewer signed the country's toughest law on illegal immigration yesterday, the protest and threats of lawsuits broke out. casey stegall is live in phoenix with more on the fall-out from the new state law. hello, casey. >> reporter: hello, brian. this is no doubt the toughest immigration reform bill on the books now in the country. it's hard telling how long it will last considering the court battles are already brewing to fight it. arizona governor jan brewer signed senate bill 1070 in effect yesterday as things got heated between hundreds and hundreds of protesters out on the lawn of the capitol in p

employees were doing while bernie madoff was running his ponzi scheme and wall street was collapsing.ing them honest. >>> a bitterly contested immigration bill signed into law today in arizona allowing police new powers they don't have anywhere else? does it allow racial profiling? and three states allow some form of doctor-assisted suicide. now doctors in another state want to help their terminally ill patients end their lives. should they be allowed to? we'll hear a lot more at the top of the hour. now back to larry king. , its foot mapping technology identifies the areas you put pressure on then recommends the right orthotic. for locations see drscholls.com. an everyday moment can turn romantic at a moment's notice. and when it does, men with erectile dysfunction can be more confident in their ability to be ready with cialis for daily use. cialis for daily use is a clinically proven, low-dose tablet you take every day, so you can be ready anytime the moment's right for you and your partner. tell your doctor about your medical condition and all medications and ask if you're healthy

john paulson and if the allegations are true, he did everything wrong as bernie madoff and jeff skilling did, because it is irreprehensible with the billion dollar screw job to go in and manipulate the deal, and the investors get really stripped of their wealth. i mean, that is crazy. and the point i think is that if he didn't get charged, then people are going to say, yeah, we really need more regulation so that we can ensnare people like him as well. >> well, i guess that the question is, isn't it his prerogative to be in a vehicle and then perhaps later choose to get out, but maybe goldman is at fault here for not letting investors know that he had gotten out? >> no, i think that is the wrong read, trish. from what i gather from the coverage here, paulson's hedge fund basically went into a deal, and it created a third party to disguise the activities and then basically stuck a bunch of really bad cdos in the deal, knew that it would fail, and took a huge short position, and made out like a bandit. that is not -- people call it tsh >> well, that is not good. >> it is more than corrupt.

is under a new team and trying to show the world post-madoff they can reform themselves. but really, the devil will be in the details as the court case unfolds and it cou be, actually, years and years before any kind of resolutions, which shows how difficult this is. this is dealing with conduct from early 2007, it's 2010 now, and the court case could be 2011 or 2012. four or five years between conduct and resolution and that shows how difficult it is to prosecute these kind of cases. >> lehrer: zach, thank you very much. >> brown: now, to the other news of the day. here's hari sreenivasan in our newsroom. >> sreenivasan: the goldman sachs news rattled wall street after two months of steady gains. the dow jones industrial average lost nearly 126 points to close at 11,018. the nasdaq fell 34 points to close at 2,481. for the week, the dow gained a fraction of a percent; the nasdaq rose a little over 1%. federal bank regulators came under fire today over the largest bank failure in u.s. history. it happened at a senate hearing on the 2008 collapse of washington mutual, comm

investigator harry markopolos author of "no one would listen" talks about the ponzi scheme of bernard madoff years before it became widely known and to get the scc and the fed to know. he's interviewed with nicole gelinas and author of "after the fall: saving capitalism from wall street and washington." >> host: hello. i have the honor to be here thi

. >> bernie madoff ripped off billions and pillions.bout it at "fox and friends". >> and headlines in the wake of that volcano in iceland. air safety regulators are suspecting long-term damage to planes flying through the ash. they want to formalize safe guards to get commercial planes back in the air. the volcano costs the airline industry over two billion after 100,000 flights were cancelled. a coast close between a maul plane and a southwest airlines jet in burbank, california. they came within 200 phot of each other. an air traffic controller misjudged the spacing. it happened on monday and was not disclosed until yesterday and not clear why it was not reported earlier. >> pirates from somali have been indicted in the u.s.. they were in the courtroom to face charges of piracy and carries a mandatory life sentence. the men did not enter pleas. >> and john edwards is scheduled to testify under oath about his relationship with his mistress. hoe will be asked about the sex tape and whether he spent campaign fund tops hide the relationsh

there are thousands of bernie madoffs in new york and washington who are looting the national treasury into absolute ruin. the coming collapse of of the united states dollar is written in stone and the jews in this country have literally destroyed -- host: we will move to ocean city, maryland. . everyone agrees that it is important to fix a system that is obviously broken. but that not -- that will not happen on its own. financial reform is a big deal and right now it is not entirely clear what is going happen. host: that have what timothy geithner is writing about this morning in "the washington post." endorsing the senate regulation bill, calling it financial reform with teeth. arguing for financial legislation. some have criticized the legislation because they say it still allows the banks that taxpayers gave money to to be big. in other words, they will still be too big to fail. can you explain that criticism and what the legislation will do? guest: there is one school of thought that the largest of the banks that caused the collapse, that it is an issue of leverage. that they were

there have been indictments brought against stanford, obviously, the madoff case, there have been somehigh-profile matters, but i think i would focus on the work of that financial fraud enforcement task force which is pretty comprehensive in scope. it involves not only federal prosecutors, but state and local as well. the fcc is an integral part of this, and i would see coming out of the work of that task force the detent kinds of things that i think you and i both agree, ultimately, needs to be emphasized. >> who is coordinating for the executive branch the investigations and prosecutions of those guilty for bringing our financial system into crisis 18 months ago? because, of course, you have all these -- an alphabet soup of different federal agencies, the fdic, sec obviously the fed, treasury, who is coordinating all that? is it the financial fraud enforcement task force or is it more specific to the financial crisis? >> it's coordinated by the justice department, coordinated by me as the head of the financial fraud end forcement -- enforcement task force. it is an unprecedented effo

harry markopolos on his efforts to alert about then madoff ponzi scheme. his book is "no one would listen." pulitzer prize winners. find the entire schedule at our web site and follow us on twitter. though it this morning, elizabeth warren sat down with us on "washington journal." this is half an hour. host: you have a chance now to speak with elizabeth warren, the chairwoman of the congressional oversight panel. what did you look at, and what does the report say? guest: this is our third report on mortgage foreclosures. you may remember when congress passed the original $700 billion bailout, they said here is this amount to deal with troubled assets, mortgages and the trouble. we managed to get the banks back into the black. but mortgage foreclosures continue to be a serious problem. this report is about evaluating what the treasury has done, and trying to make sure the tension stays on that important metric. congress said we will measure the success of tarp by its effect on unemployment, peoples savings, and on mortgage foreclosures. host: remind us of w

the web for explicit images. 31 of the cases were in the last 21 1/2 years alone during the bernie madoff scandal and a new collapse of our financial markets. the report had some as sonnishing findings. 17 of the employees were at a senior level earning salaries up of to $222,000 a year. one senior attorney spent up to eight hours a day looking at and downloading pornography. he ran out of space on his hard drive and burned files to dvds which he kept in boxes in his office. an accountant who was blocked more than 16,000 times in one month from visiting websites found a way to by pass the sec filter and am mass a collection of, quote, very graphic material. and another accountant admitted he accessed pornography on his sec issued laptop computer while on official government travel. the report says the behavior violated government-wide ethics rules. at least one employee resigned. another received a 14 day suspension. the ranking republican on the oversight committee, congressman darrel issa, is blasting the sec. he says these high ranking officials were, quote, spending more time looking

exchange commission completely failed to find the ponzi scheme empire, in other words, a second bernie madoff, what a great way to remove this from the headlines by filing the lawsuit against goldman sachs. bill: many have observed this, the timing is perfect. here's what you have, a president going on the road with any populous message and a lot of americans look at wall street and you think you big fat cats, you're making all the meend taking it from us. back to the question about scott brown, do the republicans take a risk in opposing it? knowing how popular it is for many americans who despise wall street. >> 60 percent support more financial regulation. it is a risk. but it says a few things that a lot of people may look the different way. fannie mae and foreclosure, who led us into this housing mess and other banks who made stupid mistakes, they're not reformed by this bill, they got off scot-free and if you want to get back at wall street, the best way is to end all bailouts, say you bear the risk for whatever robs you have, don't get too big to fail because we're not going to bail you

billions of dollars, that is the equivalent of a ponzi scheme and you know how that went for bernie madoffney, too. and goldman did lose money, eventually, but... definitely, this is serious. >> gregg: we'll wait an see, brenda buttner, thanks very much. >> thank you. >> juliet: former president clinton defending controversial comments he made about tea party supporters and the comments came last week during a speech marking the 159 anniversary of the oklahoma city bombing and explained the anger shown by tea party supporters might prompt unhinged supporters to carry off terrorist attacks and he later clarified his position. >> any future acts of violence are on your shoulders, mr. clinton, you gave the kooks in the country an excuse to go be violent. >> the only point i tried to make was that eought to have a lot of political argument and nobody is right all the time. but, we also have to take responsibility for the possible consequences of what we say and we shouldn't demonize the government or its public employees or elected officials. >> juliet: joining me to discuss this is fox news c

and barry lynn on "after words," harry markopolos on his effort to talk to the fcc on the bernie madoff onno o would listen." .. i really do have to comment on some of the of professor's remarks, as well as those of the rabbi, and when i first went to germany as a young soldier in the 1970's, i was bewildered, because as someone who spoke german, whose family was half german, i was a member of the club, so things would be said to me that weren't said for public consumption, and for whatever reason, you just can't kill anti-semitism, so i'd like to just as a way of prelude, offer a few my views on it, specifically concerning the middle east and europe, and to begin with europe. you've got to understand that while the holocaust was an immeasurable, immeasurable tragedy for the jewish people, it was a great embarrassment -- >> people can't hear you in the back. >> sure. it was a great embarrassment for europeans, and embarrassment is a potent force and with you see the irrational criticism and outright lies told about israel and europe, i think you can understand it in terms of their psych

it didn't stop bernie madoff. >> sure. >> why these charges now, a week before the senate banking -- excuse me, the senate takes up these issues? >> sure. couple of things. one, under the bush administration, funding for the executor securities and exchange commission was hugely cut. it was as if all of a sudden the budget for the "today" show was cut and everybody wondered why al was no longer being sent to iceland, it's because there was no money for anybody to do anything and they were gutted over the past ten years. as a result, you've seen very little enforcement. at this point, we've watched billions of dollars in direct support, trillions of dollars in indirect support and billions of dollars in compensation paid out in our banking system over the past year, year and a half. at the same time, our government owns 80% or 90% of a variety of these banks and refuses to release information about what those banks were doing when they made this money in the first place, puts us in a situation where the government appears to be covering up or suppressing information on behalf of the b

"time" magazine, "wall street's latest downfall, madoff charged with fraud." "the bailout to end all bailou bailouts." "credit crunch continues." "u.s. sentiment decrease to a 28-year low." "u.s. loses 23,000 jobs in the biggest drop since 1974." so that's one chart, and i have one other. if you can -- just to remind us we're were. "san jose mercury news " -- "foreclosure wave, san jose fights to protect neighborhoods." "carnage continues: 524,000 jobs lost." "wall street employees set to get $145 billion." that's in bonuses during all of this. "economy in crisis, foreclosure." "layman files for bankruptcy." "a.i.g. seeks cash." we know about that. "what now?" is the headline. "what now" "dow falls 777." "u.s. pension insurer lost billions in the market." "housing prices take biggest dive since 1991." and here's one. "full of doubt, u.s. shoppers cut spending." now, i read these headlines to you, mr. president, to just bring back those dark, dark, dark days. and why we're here today trying to make sure that never happens again. if you don't learn from history,

and the media about madoff's ponzi scheme.find entire weekend schedule at booktv.org and follow us on twitter. >> now leaders over the group tea party express on this year's congressional election from the national press club in washington, this is about an hour and 15 minutes. >> we came down from boston yesterday. we were more than 10,000 people joined us on boston common to celebrate america. [applause] >> joining me at the podium is our director of outreach and one of the co-founders, miss amy kremer from atlanta, georgia. >> good morning. >> we have been very busy over the last couple of years actually laying the groundwork for a 2010 victory in the united states over this ideology that has us in its grasp right now. much of our focus has been in nevada where one of the big three happens to have a grip on that state as well. senator harry reid. we kicked off this tour in searchlight, nevada, a town of 500 people. some estimates were -- you were there? congratulations. [applause] we, according to some accounts there were a