do picard and sheehan think there's another madoff out there?ainly have perspective on regulatory environment and improvements made or not made since then. >> how much cost? >> roughly $600 million, if you add administrative cost close to $700 million in fees. that's paid by wall street, by you and me if we invest. >> $700 million to reclaim $9 billion. >> which they say is a decent investment. >> thank you very much. >>> ahead on the program, intel and netflix both unveiling big plans to be front and center on your tv set. julia borsten at a media conference in laguna niguel, california. >> that's right, simon, digital and tech giants here and making big moves to own a piece of the future of television. i'll tell you about intel and netflix announcements coming up after the break. look, if you have copd like me, you know it can be hard to breathe, and how that feels. copd includes chronic bronchitis and emphysema. spiriva helps control my copd symptoms by keeping my airways open for 24 hours. plus, it reduces copd flare-ups. spiriva is the only

madoff on a daily basis.s of dollars going back and forth in a way that would have suggested that something was occurring that was not trading in the traditional sense of the term. and that they had an obligation to look into that under the banking laws. >> a federal judge has thrown out much of the case, and a separate case against hsbc. the bank's insist they were unaware of madoff's fraud. but picard and sheehan are appealing and believe they'll prevail. they say the banks are where the real money is. not in some secret madoff family account. >> there was a lot of speculation at the outset about whether madoff had hidden some money somewhere. do you think he has money hidden away or did he, in fact, turn over what he had? >> my sense of it is that we found everything that there is to be had from mr. madoff and his family. >> one family member did not survive. bernie madoff's son mark committed suicide in december 2010. the two-year anniversary of his father's arrest. and just days after picard sued mark ma

madoff has been no help at all which has madoff so frustrated that he said maybe he shouldn't have pled he writes i wish i went to trial and he should have been required to provide the evidence. madoff says he keeps offering to give picard more information but picard says he's never come through. madoff says he stands ready, quote, i have little doubt that the information i could provide would clearly demonstrate the vital role the major banks, like jpmorgan played, in carrying out my fraud including the role in handling the accounts of my major customers. the ball is in picard's court. most of the claims have been dismissed and the bank insists they knew nothing and also take issue with the fact that madoff's sons mark or andrew should or knew about the fraud. both picard and his attorney demonstrate the lack of knowledge of how the market and proprietary firms operate. the investment advisement business the heart of the fraud was separate from the trading business where his sons worked and it was separate because it was required by s.e.c. law. >> thanks so much. scott cohn with the la

that bernie madoff is angry.lusive interview with irving pickard, the trustee rounding off madoff's assets for investors. pickard told us madoff has been no help, $5 billion which the trust ye is preparing to put off to investors. no help, that set bernie madoff off in a big way. i've been in touch with madoff for quite a while now much of it off the record at his insistence but picard's comments unleashed a tirade. he's telling me he now wishes he had not pleaded guilty to the epic ponzi scheme as he did in 2009 because he says picard is distorting the truth. this is a man that keeps making statements that have no facts to back them up. i wish i went to trial and he would have been required to provide the evidence he claims he has. as you can see, i'm frustrated. he goes on, as remorseful as i am for the pain and suffering i have shamefully caused, i take some comfort in the fact that, with my assistance, all of my customers will recover their original investment principal. madeoff is proud of the role he claims

been the three highest number of enforcement cases we've ever brought. >> reporter: can a bernie madoff case slip by this agency again, do you think? >> we have been done an incredible amount of work to reduce the chancing of that happening. >> reporter: the suspicious heinz trade was made through a swiss-based account with goldman sachs. the bank and swiss regulators are cooperating with the investigation. >> pelley: anthony thanks very much. it was a negative day on wall street today. the dow lost 108 points to finish back below 14,000. but the entire economy is headed for trouble in just eight days when massive across-the-board cuts in the federal budget are scheduled to kick in automatically. these cuts were designed to be so deep and harmful that they would force the president and congress to find a better way. but they haven't. just for example there would be $46 billion cut from the department, and benefit cuts for 4.7 million long-term unemployed. we have two reports tonight. first, those defense cuts with david martin. >> reporter: of the 800,000 civilians who work for the depa

better nay madoff may have finally picked a legitimate winner. his family partly owns a biopharm suit cal company that just went public. it raised $33 million in the stock sale. "the new york post" reports that madoff's initial $2.2 million investment in the company is now worth $5.5 million on paper but the scammer not probably going to be able to keep the money. as a trustee for all of madoff's victims is going after the money. so we'll see if that actually winds up in the pockets of the victims at the end of the day. >> for the people that suffered, hopefully it does. >> we'll (woman) 3 days of walking to give a breast cancer survivor a lifetime-- that's definitely a fair trade. it was such a beautiful experience. (jessica lee) ♪ and it's beautiful (woman) why walk 60 miles in the boldest breast cancer event in history? because your efforts help komen serve millions of women and men facing breast cancer every year. visit the3day.org to register or to request more information today. it was 3 days of pure joy. ♪ and it's beautiful >>> howard her

did banks know all along what bernie madoff was up to? yes? madoff wrote to investors from prison urging them to go after big banks. he says they had to know and just turned a blind eye. madoff is serving 150 year sentence behind bars. >> peter: so much for transparency. former white house press secretary robert gibbs says he was told to never talk about the administration's controversial drone program. he said, quote, when i went through the process of becoming press secretary, one of the first things they told me was, you're not even to acknowledge the drone program. you're not even to discuss that it exists. >> brian: it was make believe in the action movie, armageddon. remember? >> we have gold for independence. >> brian: now it's going to be for real without the choir in the background. researchers at johns hopkins university plan to launch a rocket to smack an asteroid when it approaches earth. how dare you, asteroid, get out of here. if successful, the decade long project would mark the first time human intervention diverts an aste

adam shapiro is exchanging e-mails with bernie madoff. joining us now from the newsroom with details. >> this is really important on this day. we just had a ruling from the court of appeals. they are not going to get money back. they have lost another round in court. now we have made off sending us an e-mail. he talks about the loans he gave his son. i told them that it was crucial for them to trace the source of the original investment. he goes on to say "i believe it was possible to recover all of my clients investment principle, although both the trustee and principles that i was being delusional by making this claim." we are posting this up on fox.com, fox business.com. he also reiterates something he has said in previous e-mails. he told the trustee and u.s. attorney that the banks he did business with with had to know what i was doing regarding the fraud. we will have much more on this at 2:00 p.m. eastern. shibani: fascinating news and developments. adam shapiro, we look forward to that in the 2:00 p.m. hour. coming up, we will tel

. >> do they know what bernie madoff was up to. the man behind the ponzi scheme said yes. he urged them to go after big banks from prison. they had to know and turn add blind eye. madoff is serving 150 years behind bars. >> well our next guest says the next time you go to the market you should beware. the store uses a lot of tricks to make you spend more. here with tips on how to avoid that is consumer savings expert andrea warrick. >> we can always use tips to save money and i know one of them don't go to the grocery store hungry. >> exactly. you will start filling up your cart with unnecessary food items. >> you have another one. your first tip is don't use a cart. >> that is a very interesting tip. do you notice the carts are getting bigger and bigger? they are designed to encourage you to fill them up with a ton of groceries. if you use a hand basket you will realize when you are throwing in unnecessary goods or impulse buys. you are making those quick trips with the shorter list use a hand basket instead you will be less likely to buy on impulse. >> the other tip i kn

literally, only burning made off has been -- bernie madoff has been jailed in the middle of this crisis>> the shares of the parent company of standard and poor's, mcgraw hill, took a beating, dropping nearly 14%. moody's and dropped nearly 11 cents. the forced labor scandal in dublin, we have a long way to the report on alleged abuse and injustice. how are british scientists settling into their new home on an ice shelf in antarctica? ♪ >> hello, more unsettled weather working its way across europe, this system has given us a lot of wintry weather over the eastern parts, including moscow. there is an awful lot of heavy snow. here are the pictures coming out of moscow, that man is practically standing still. it does not look like the skies are going to clear here. it should be more or less dry, but not for all of europe. another couple of systems coming in, across the adriatic, the next one following hot on its heels, staying cold, the wind is staying down from the north. across the other side of the mediterranean, we have one or two showers around. here it is, working from algeria to gen

bernie madoff would not have the chutzpah to present this violin. adam: an e-mail with them a regular basis. got one today. >> how exactly are they going to authenticate this instrument? what tests are they saying that it supposedly is passed? i don't know how it could stand up to the test of time in the water. adam: if the violinist's three overboard and someone picked it up. unfortunately, we don't have time to discuss it because i understand they pulled out a big blue diamond from a love it. i'm not all right. that will do it. [applause] john: are you a republican? >> no. john: democrat? >> no. john: students. john: the nation's capital where the students need to be more than 1,000 of them gathered. now we discussed -- we will also look at the criminal justice system. in coulter will defend republicans. liberty 101 is our sw tonight. [applause] ♪ john: i'm in washington d.c. a place that needs a lesson in liberty. i'm excited that tonight i am surrounded by college students, more than a thousand of them will travel here for a students for liberty

bernie madoff would not have the chutzpah to present this violin. adam: an e-mail with them a regular basis. got one today. >> how exactly are they going to authenticate this instrument? what tests are they saying that it supposedly is passed? i don't know how it could stand up to the test of time in the water. adam: if the violinist's three overboard and someone picked it up. unfortunately, we don't have time to discuss it because i understand they pulled out a big blue diamond from a love it. i'm not baiting. adam: that's all that time we have. melissa will be back monday. ♪ gerri: hello, everyone. tonight on "the willis report" another unintended consequence of obamacare. now your health insurance may not cover your spouse and more. and starting to get hit by the sales tax. one economist says the designers of the law were all wrong. and, to top tier weekend. we have you covered with the important things like what the stars are going to wear and what is really in those slight bags. "the willis report" is on the case. ♪ gerri: all of that and m

[ angry gibberish ] >>> hey there, coming up on "power lunch," whatever happened to madoff's money?our years after the scandal, a team of lawyers are on the hunt. cliff coverage. from snake to snake eyes. as the chinese new year comes upon us, we go live to sin city to see what they're doing to attract high rollers from china. don't miss this. "sports illustrated" cover girl kate upton in the studio and will tell us what it's like to be the only one to grease the cover of the swimsuit edition two years ago. let me guess, scott, i bet the guys managed to stick around for the next hour to get a picture with kate upton. >> i was going to say, yeah, but we have bill gurley. take that. take that! as a matter of fact, we look forward to seeing you the top of the hour and kate upton as well. linked in is up more than 40% the past year and facebook up almost 40%. which is a better buy right now? steve weiss is our linked in bull and bill our facebook bull. tell us which you would buy? ? if i had to buy one it would be linked in. here's the reason. we know the strategy and success they're ha

bernie madoff, stanford and a host of other instances. you don't have a 25-year time -- >> susan, what do you say to those people? what do you say to the people, dan, that are burned and don't have time to make it back. how would you invest their money if they came to you today? >> well, ill refer to someone else. >> gina? what would you say? >> my client are institutional and long-term in nature. i would say the biggest risk isn't the equity market, it is the bond market particularly treasury. when you start at yields where you are now, what on earth makes you think can you hit an 8 or 9% target. long-term i'm fairly constructive on equities. short term i'm concerned market pricing at $110 earnings might be getting a little ahead of itself. and i agree, if you put a good stock on sale, i'm happy to buy it. i think the markets are ahead of that right now. >> is it true, gina, the name means the as tech goddess of fire? >> it is. >> channeling the goddess of wie will burn you. >> all right, pimco's version of the dollar menu. >> later on,

. >> do you think people were madder at him, john, or madder at bernie madoff?ho are they maddest at? his percent return -- wait, his return on $100 investment, as if anybody only gave him $100, was $1. that's $1. that's $99 lost. you got it? >> karl rove is a very smart political strategist. >> what happened? >> he was right on the immigration debate well before a lot -- >> how -- >> he helped design a governing coalition for george bush that won two elections. the problem is the republican party, the republican establishment, but the whole party -- >> let's not change the subject. i want to enjoy this for a moment. here he was with megan kelly making megan kelly look even better than she is. let's get a little look at this, please, if we can. >> do you believe that ohio has been settled? >> no, i don't. it may be that barack obama wins the state, but it seems to me that, you know, you got a lot of votes yet to cast. >> can you tell me whether you stand by your call on ohio given the doubts karl rove called. >> we're quite comfortable with the call in ohio. >>

do you feel different about warren buffett versus bernie madoff?f course you do because you're normal. according to the republican logic, if you feel any different about midlan albright and larry flint, you are a hypocrite. look, i voted for president obama because i trust his values and his judgment and i believe that he's a fundamentally responsible actor without gratuitously slamming ex-president bush, i think he displayed lapses in judgment in executing his primary responsibility in commander in

do you feel different about warren buffett versus bernie madoff? of course you do because you're normal. according to the republican logic, if you feel any different about midlan albright and larry flint, you are a hypocrite. look, i voted for president obama because i trust his values and his judgment and i believe that he's a fundamentally responsible actor without gratuitously slamming ex-president bush, i think he displayed lapses in judgment in executing his primary responsibility in commander in chief and put troops in harm's way imprudently. president obama would have exercised better judgment and he has exercised better judgment. the way it stands now, the drone program is exclusively within the domain of the executive. their protocol, their judge. so, yeah, i feel a whole lot better about the program when the decider, so to speak, is president obama. it's not to say that, again, the process shouldn't be codified, that there shouldn't be oversight, but really is our standard so low that we would only grant power to the executive that we wou

now, you can say, okay, bernie madoff made it for 40, but it's a totally different type of company.nd i think bill is going to be wrong on this. but i think he's a super smart guy and will start to fade this position if he's wrong. >> mike khouw, want to get you in here in terms of the options traders. are they siding with this bill ackman pain trade, in other words, siding with carl icahn? >> well, the top ten most active options in herbalife today were all calls, so, i think they're sort of going with the possibility that he's going to get squeezed a little bit here and there's room to the upside. basically, everything 37 to the 40 calls, all these things were trading quite actively. so, i think that obviously they're looking at it. there's no much risk of a down side shock, but there is some possibility the stock could move to the upside if carl gets some action. >>> time is still ticking down until the sequester. congress voting today on dueling proposal that would present domestic spending cuts before the deadline tomorrow. if no deal is reached, the department of defense will

his endowment also lost $4 million to bernie madoff.. >> we basically have written that money off. it's basically gone. >> but canada's experiment did receive a boost when president obama announced plans to create promise neighborhoods across the country modeled after the harlem children's zone. >> if the harlem's children's zone can turn around neighborhoods in new york, then why not detroit or san antonio or los angeles? >> and a lot of students came to school on saturday... >> there are other charter schools getting similar positive results, but replicating the harlem children's zone in its entirety may be difficult, in part because it's hard to determine exactly which ingredient is the key to geoffrey canada's success. >> i feel like i've gone to a

. >> i think bernie madoff could refinance his bail at this point the credit market is so ripe but in terms of the stock -- >> not so sure. >> normally i don't care how far stocks have gone but i don't tend to live in the past either. and the fundamentals may be okay but they're spending all for content and then another basis -- >> they just told us that. >> absolutely. that's what turned it around. it is not huge, only 20%. they've got another base to look at the stock and rave on and that is the original content. initial reviews of the house of cards are not great. but more so than that, the valuation is extreme under any measure except on a price to sell. >> you could say that about amazon. you have international expansion possibilities. >> true. >> you have global content expansion possibilities. and then when luke at the original content that brings a whole new subscriber they said. >> that is the last word. gavel comes down. doc? who made the most compelling argument? >> i just did exactly what i'm about to describe. i dropped hbo and went for netflix as the streaming content be

to the quote advisors by cannot wait until jet research, but they got the country club like bernie madoff or cousin bob's best friend or my next-door neighbor or someone who came and presented at my children's school. so people are discouraged from asking questions because people come at you as though they are your friends. and, of course, we don't can ask our friends hard questions. how are you acting in my best interest. are you working with the judiciary standard? >> host: a lot of people need financial professionals through free district is there anything wrong with getting a free steak and a glass of pinot noir in exchange for sitting through a sales skill quest to advise even going in the first place? >> guest: apparently gave an interview that reuters, if there's one thing i could ban it would be the free new. free meal, it's so harmless, right? you're going to get a nice steak. you ge did a good lobster. you don't have to buy anything. well, people who sell my shares will tell you this isn't going to end well for you. the problem is our defenses are down when we eat. we know this.

periny madoff's a whole different thing, it's not about this. that was a whole different issue. and people are upset about that, and they still are. i mean, you're hearing this now in 2013. we're a little bit late. fourthly, a bank bailout is going to be hated no matter what. if the government does everything perfectly, including explain it perfectly which is my next point, it's still going to be hated. but to my mind there are degrees of hatred, right? this could be a ten, ap eight, a six. so the next point, if the government had explained better what it was doing and why, this includes the obama administration. i think the american people still would have been upset by the bank bailout, but as i said, there were degrees. and i think they could have a more accurate perception of what really happened than they do such as, for example, the t.a.r.p. that i mentioned before. um, sixth, as those of you who have been paying attention -- now you do have to pay attention -- there was quite a backlash against the federal reserve as if it came out of nowhere and started grabbing power ev

is trying to get a new reputation, after missing bernie madoff and allen stanford, they are trying to create a new s.e.c., and when you have the chairperson not being able to take part in crucial, crucial enforcement actions, as a minimum the optics are horrific. >> well, we will see what happens. thank you, gentleman, for your thoughts on this. >> thank you, bill. >> thanks so much, guys. >> 20 minutes before the closing bell sounds for the day. market up in the triple digits, up 130 point in the dow jones industrial average, sitting comfortably back above 14,000. >> highlighted lumber and home prices soared according to a new report in december, but many of the big home builders have been downgraded today ironically. why the disconnect? we'll talk about that next. >> something more than a government's lawsuit against standard & poor's for blowing it on the mortgage market? >> it's just political payback for s&p's action to downgrade u.s. debt. do clients believe that this was somehow politically motivated? >> you'll have to stick around to hear the answer to that question when we co

it's -- there's this issue that came up from the madoff scandal of affinity fraud where people believeems like their kind of guy and there's a lot of that going on. people who listen to sources who are, you know -- if you actually believe what you read on the editorial page you would have lost a lost money over the years but people believe that because they seem like their kind of people. >> you talk about the willingness to admit their mistakes? what are the big things you where wrong of in the last ten years? >> the biggest was i was expecting a deficit in around 2003 because the bush administration, not that they were just running deficit bus they were clearly so long-term irresponsible. pushing through long term tax cuts and i thought, gosh, the financial market will punish us for that. i made two mistakes which are now clear to me. one is the united states gets a lot of slack. we're just not treated the way argentina gets treated. >> and you had spent a lot of time. >> right. and the other is we're a country that borrows in our own kcurre y currency. i revised my views. the united

take madoff. no one knew who he was before he got caught. he was well respected. look back at this country. it has always been poverty in the poor communities. now, it is spreading out. people are just upset with the fact that a black man is in office. they want to throw the blame on him. it is not him. look at the people who are surrounding him. they are not black people. this country has been made up of immigrants and people come to this country. the true american is the indian. until people realize that, we have to come together and help each other and spread the wealth. it is not social knows him or communism. no one is trying to take anyone's guns away. a group of people are so used to having things their way and now that it is not their way and you have to share, they feel someone is taking away from them. oft: the president's state the union address is coming up on tuesday. this is the way it is bringing -- that is the way it is being previewed in the wall street journal -- let us show the folks he tells regarding our coverage. that will be live at 8:00 p.m

i think making a reference to bernie madoff the other day. >> he may be right, but that's not the point in this trade. you can be carried out on the stretcher even if you are right and that's the issue. >> trade or not, it makes for a great story. ackman is also fascinating. he's willing to take a great deal of risk. not just a 20%. a fairly significant capital commitment for roughly 10, $11 billion fund. but also, the risk that he's putting his business in to a certain extent by being so outspoken and in this very public fight with a guy who just doesn't stop. i mean, you could pick so many people to get in a fight with. the last you'd want to go to the table with the carl ikhan. >> you have to think bill ackman thought about the possibility of a tender, so there must be some sort of protection. on that last fight, ackman was asked directly about the possibility of a tender. we didn't get any answers. you would think he is a smart guy and has thought about that. >> here's a brief litsen. ikhan and ackman on the "halftime" last month. >> this is not a nice guy and a guy who keeps his wo

i have to ask you because you talked in this group about madoff and pyramid schemes and you talked about know you're not a stock guy, not going to give me something specific on herbalife but i know you know these guys. who's right? >> so i'll caveat my answer with the fact that i've not studied herbalife. i don't know whether -- knowing all of the different players, i've known some better than others for a long time. dan lobe is one the most talented investors in the world. he's a good friend. and i would never bet against dan lobe. so i think ackman's got a tough road from here. >> thanks for having a little fun with that. carl, you heard it there. do not bet against dan lobe. i know a lot of viewers wanted to hear what kyle thought about that colorful situation. >> still taking notes as fast as i can, gary. great stuff. thanks to kyle. >> you got it. >> on an important day. >> thank you. >> straight ahead we'll look at financials and the rally and find out who the winners are and who is lagging behind. first, rick is covering the big rally as well. hey, rick. >> absolutely. it is a big