madoff?" and they all said, "no. we don't think he's for real." >> kroft: could you find anybody? >> i found no one that ever traded with mr. madoff, and i traded with the largest equity derivative service in the world. >> kroft: and that's because madoff's investment fund never actually made any trades, at least going back to 1993 and probably further, a fact confirmed at a meeting of madoff investors by the trustee charged with liquidating his assets. no one knew the depth of the fraud, but a lot of people had questions. who else figured this out besides you? >> i would say that hundreds of people suspected something was amiss with the madoff operation. if you look at who the victims were not, you'll notice that the major firms on wall street had no money with mr. madoff. >> kroft: i mean, you write-- this is the letter. i'm quoting from the letter to the securities and exchange commission, red flag number 20: "madoff is suspected of being a fraud by some of the world's largest, most sophis

madoff's credit limit. allegedly it was an attempt to hide madoff's ponzi scheme from his clients. jp morgan says it was unaware of madoff's fraud operation, and the loan "wasn't suspicious." dominick's is warning of mass layoffs as its chicago-area stores prepare to close. more than 56 hundred workers were notified that their jobs will be eliminated by the end of the year. all 72-stores will close by dec. 28. some workers may be hired by other grocery chains. jewel-osco has purchased four of dominick's locations, and plans to retain 450 workers. and upscale grocery chain mariano's has expressed interest, also. retailer gap surprised wall street with solid sales for october. that stock gapped $3 dollars higher in trading friday as investors cheered positive news ahead of the critical holiday season. gap stores sold enough, jeans, sweaters, khakis and other apparel last month to improve revnue by 4%. the company is also lifting its earnings out look for the 3rd quarter. profit results will be out november 21

morgan's mortgage program was little more than a knee labrat take on a madoff style ponzi scheme they the banks continued to buy these mortgages and throw them into the great hamburger machine turning them into securities that would in turn be bought by everyone from pension funds to fannie and freddie and then they pushed sales even harder to relying upon the influx of new buyers of these securities to keep the value of the old securities stable this is exactly what bernie madoff did using cash from new investors to pay off the old investors the justice department's record breaking settlement announced on tuesday doesn't say anything about this j.p. morgan will likely never have to take actual responsibility for its madoff esque ponzi scheme because the bank will never have to go to trial and that's the problem with our judicial system and too big to fail banks we never prosecute them we never take them to trial present evidence to the american people showing exactly how these banks defrauded them and then hang a big heavy guilty verdict around those banks neck center lisbeth warren

morgan will likely never have to take actual responsibility for its madoff esque ponzi scheme because the bank will never have to go to trial see that's the problem with our judicial system and too big to fail banks we never prosecute them we never take them to trial present evidence to the american people showing exactly how these banks defrauded them and then hang a big heavy guilty verdict around those banks neck senator elizabeth warren made this point recently during a committee hearing. i know there have been some landmark settlements but we face some very special issues with big financial institutions if they can break the law and drag in billions in profits and then turn around and settle paying out of those profits they don't have much incentive to follow the law it's also the case there each time there's a settlement and not a trial it means that we didn't have those days and days and days of testimony about what those financial institutions had been up to their district attorneys and u.s. attorneys who are out there every day squeezing ordinary citizens on sometimes fairy t

. >> this seems like pulling bernie madoff over for jaywalking. as opposed to what happened. >> there have been suicides about it. at least one. it's shocking and sad. >> this should be a real punishment here, people go to prison for very minor cases compared to this. they're sort of getting off scot-free. i don't think it's right. >> reporter: this after a massive investigation two years, hundreds of interviews. prosecutors apparently left the statute of limitations run out on a serious charge of securities fraud. >> there are blatant actions that would co-have been brought to light and never where. unfortunately at this point, it's too late. >> reporter: investors filed a class action lawsuit against wells fargo for its part. walter ng going through a bankruptcy. the process continues until the end of the year. >> are there words for investors? >> we'll talk after sentencing. >> reporter: many lost their homes and more. >> we invested money in a wrongful death suit against when our son died and we used that money to fund a program at childrens h

. >> this seems like pulling bernie madoff over for jaywalking. as opposed to what happened. >> there have been suicides about it. at least one. it's shocking and sad. >> this should be a real punishment here, people go to prison for very minor cases compared to this. they're sort of getting off scot-free. i don't think it's right. >> reporter: this after a massive investigation two years, hundreds of interviews. prosecutors apparently left the statute of limitations run out on a serious charge of securities fraud. >> there are blatant actions that would co-have been brought to light and never where. unfortunately at this point, it's too late. >> reporter: investors filed a class action lawsuit against wells fargo for its part. walter ng going through a bankruptcy. the process continues until the end of the year. >> are there words for investors? >> we'll talk after sentencing. >> reporter: many lost their homes and more. >> we invested money in a wrongful death suit against when our son died and we used that money to fund a program at childrens h

. >> who committed the greater fraud bernie madoff or barack obama? madoff defrauded a few. country. >> he needs to stand up in front of the american people and say, you know what? i perpetrated a fraud. >> he totally lied. he therefore got his obamacare passed now if congress had known this even the democrats would have voted against him. >> i wonder why we were promised a state of the

adam: can i ask you a question about the madoff exposure?em from potential criminal charges because there is case being made on civil case, that people at bank knew it was a ponzi scheme. that they for 20 years essentially allowed check kiting. >> that is different issue. adam: this doesn't absolve that? >> that is different from the internal controls figuring out about madoff and people internally knowing about made i don't have -- madoff, not stepping up to the plate. jpmorgan shareholder this is another thing you have to deal with. this is mortgage practices in the run-up to the financial crisis. adam: okay. >> what is interesting about this deal. it will cover more than just bear and washington mutual. that will be a lot but the part about jpmorgan is the part i think the shareholders can zero in on because if its own practices were sleazy, and i think they will come out with some concession, see exactly what that concession is, i don't think they will say we committed outright fraud in this. i've been told by people in the bank, this is

. >> this seems like pulling bernie madoff over for jay walking. >> there have been suicides, for onet is shocking and really sad. >> there should be real punishment involved here, because a lot of people go to prison for very minor cases compared to this. they're getting off scott-free, and i don't think it is right. >> reporter: this comes after a massive fbi investigation, after more than 200 interviews. the prosecutors apparently let the statute of limitations run out on the more serious charge of limitations fraud. >> there could have been more accusations brought to light and never were, and unfortunately at this point it is too late. >> reporter: investors have filed a class action lawsuit against wells fargo for its role in the investment firms, there are civil cases, walter ing is still going through a bankruptcy. the trustee has sold off his car, jewelry and a membership at the country club. the process will continue until next year. >> walter, any words for the investors. >> so many investors lost their life savings, homes, others lost much more. >> we invested the money we

at the time when he was lobbying for the sia, chairman was bernie madoff.ow for the romney vetters, they liked at that and said a 30-second ad waiting to happen. bernie madoff's lobbyist paired with mitt romney. a problem. right. that's in public record. not a secret. but something. >> i am learning it for the first team now. >> most people in national politics don't know whchlt ult what it goes to. on question, he has a brother has a settlement with the sec, civil matter there are controversies around. er use about his spending as a u.s. attorney. investigated by the, department of justice inspector general and was slapped pretty hard for exceeding spending limits he was supposed to, abide by. a lot of things. matters of public record. his health. there werer use. the head vetter, said if he is not giving us the information. is there any smoking gun. maybe not. the totality of that, the questions, unanswered questions. unexmroeded landmines was way too much for him to take on. and the vice presidential possibility. chris christie has gotten a lot of attent

but one man did try to tell the government what madoff was up to.did it take you to figure out that there was something wrong? >> it took me five minutes to know that it was a fraud. it took me another almost four hours of mathematical modeling to prove that it was a fraud.

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it is an issue the way bernie madoff is a madoff issue. as trotter's reporting shows and at the blind comment by nfl personnel director shows. >> it's a biggish issue about us as a society. not just people with the nfl that said martin should man up. i talked to somebody earlier today, he's a big guy, bigger than incognito, should have punched him. and maybe initially when you see the story you think a big football player, why didn't he go after him, but he shouldn't have to because it is a workplace, to your point. he shouldn't have to brawl it out. and this notion of toughening him up, he made it to the nfl. he's pretty tough. >> and anybody who is hes that jonathan martin should have manned up, seriously needs to hit themselves over the head with a polo mallet until they think it through more quickly. we have to redefine our very definition of what we mean by moon manhood and adulthood. the real man in this twisted upsidedown logic is the bully and the person not a man is the person who stands up and says i don't have to deal with this

but one man did try to tell the government what madoff wasp to. figure out that there was something wrong? >> it took me five minutes to know that it was a fraud. it took me another almost four hours of mathematical modeling to prove that it was a fraud. (watic

. >> who committed the greater fraud bernie madoff or barack obama? madoff defrauded a few.his is defrauding the entire country. >> he needs to stand up in front of the american people and say, you know what? i perpetrated a fraud. >> he totally lied. he therefore got his obamacare passed now if congress had known this even the democrats would have voted against him. >> i wonder why we were promised a state of the art web site and it's a sunlight dial. >> anyone who has run anything in their lives could see this come a mile away. >> i have never seen anything run so incompetent as what we have watched. >> the president of the united states lie to the entire country on 00 most important thing to people, their healthcare and their current plan. >> it is a real significant distortion to say that hundreds of thousands of people are being cancelled. what's actually happening is that they are going to get a better plan for less money. >> the fact is that the president didn't tell the truth. it turns out not to be true. that people keep their insurance policy. >> former congressman

madoff is a case in point but you have a number a large number of dollars so you cannot say that i have to say that what has to be done of course is to pursue those who have engaged in criminal activity but the problem is much more generalized i mean they had enormous responsibility because they were not having a culture which was correct. but practically all the economist we are more or less a company in this very abnormal risk culture and also i have to confess the functional world but on the side of the authorities you know the authorities in general the government's. supervisory authority as we have so confident until the start of the subprime and even after the start of the surprise that they thought that it was not possible that the food five or system could collapse it was something which was of the order of the unthinkable and we were plain wrong if i make the international community but you see if you are targeting only one. scapegoat that would be responsible for everything say that you take the banks the commercial banks then what about the non-banks what about the highly lev

the gym ed over to madoff and his wife wendi deng of economic or political settlement that is perhaps best known since at the high pitched a third of june. hacking parliamentary hearings. it's not expected to affect operations the twenty century fox and news corporation controlled by them but to me high. all during the four lovely day today. us president obama was joined by his wife and fellow democrats have the rights that into something they did lisa graves of president john f kennedy was assassinated in two years ago on friday the promenade to take to be taken on such events but to generation. these days with us in our imagination. not because the last of his own but because he embodied the character of the people that he lived. brazilian resolute. you're worse than follow it. i am in the face of impossible odds. most of all determined to make the world of him. but settling for what is. but rather for what might be. in his idea was his sober square jawed idealism. we are reminded that the power to change this country is all americans are expected to come together on the center of a

whether jp morgan chase and other banks should pay for not taking a more aggressive approach against madoff's multi billion dollar ponzi scheme. the securities investor protection corporaiton argues investors should be part of the funds that are recovered from the scam. sea world is in the midst of a whale of a fight. the theme park is now asking a federal appeals court to overturn safety citations and a ban by the occupational safety and health administration.the osha ban restricts how trainers interact with killer orca whales during performances.the ban follows the death of a trainer in 20-10, which was documented in the film "black fish" . osha claims workers are exposed to a "known hazard" in the workplace.sea world has already successfully had the fine reduced from 75-thousand dollars to 12-thousand sea world stock rose 2% yesterday. sotheby's posted a loss in the latest quarter. but it was less of a loss than predicated by wall street analysts.third quarter results improved at the auction house on revenue growth from modern art and commissions.investors bid up the stock by nearly 2% yes

vetters worked at it he worked for bernie madoff trying to keep financial fraud out of the new jersey about his brother in an s.e.c. settlement. they saw stuff about spending patterns that the federal inspector general had investigated him for that he had gone around the country and violated spending limits. much of that was in the public record but not widely known. >> what did they consider the most troubling part of christie's past? >> they all liked chris christie. the reason why he got considered, romney looked at this stuff and said i don't apartment sarah palin-like situation where i pick someone and their controversies are the story for three weeks into and fast convention. they looked at this stuff and different people on romney's team seized on different things. one of his advisors said to governor romney all this stuff has been looked at. it's true but governor romney was smart now know being looked at in a governor's race ain't the same as if you're on the ticket. >> we'll talk about this coming up. i'll give you a tease. don't bleep me ron. i'm tired of you people. leave

s having to leave and quit those who engage in criminal activity have been sued madoff is a case in point but you have a number of large number of all those so you cannot say that i have to say that what has to be done of course is to pursue those who have engaged in criminal activity but the problem is much more generalized i mean they had enormous responsibility because they were not having a culture which was correct. but practically all the economist we are more or less a company in this very abnormal risk culture and also i have to confess the functional world but on the side of the authorities you know the authorities in general the government's. supervisory authority as we have so confident until the start of the subprime and even after the start of the surprise that they thought that it was not possible that the food five or system could collapse it was something which was of the order of the unthinkable and we were plain wrong if i may the international community but you see if you are targeting only one. scapegoat that would be responsible for everything say that you take the ba

i consider iran on the same level of trustworthiness of bernie madoff. >> i agree with that.michelle said with all due respect, i admire you greatly, but frankly, you don't know much about what you are talking about. the fact of the matter is we did degrade, they cannot take centrifuges and make the grade level you need for the nuclear weapons one. two, the germans are doing the inspection, best in the world. >> three, you have -- >> you talk about -- >> you have to have new centrifuges to finish the program. that is stopped. what is the alternative? we said nothing, done nothing and in the meantime they go ahead with the nuclear program. at least this gives us an opportunity to see. >> this is six months, though, bob. six months. >> please pay some attention to the details of this agreement. it's six months. it does degrade the weapons system because it does not allow them to make weapon grade plutonium. it also has german and u.n. inspectors doing something about it. you don't know what you are talking about. >> i will agree with you, michelle. i think you know what you are

madoff defrauded a few. this is defrauding the entire country. >> he needs to stand up in front of the american people and say i perpetrated a fraud. >> he totally lied. he therefore got his obamacare passed. had congress known this even the democrats would have voted against him jie. i want to -- >> i want to know why we were promised one thing and got another. it is a train wreck. >> anybody who has run anything in their lives can see this a mile away. i have never seen anything as poorly run and incompetent. >> the president of the united states lied to the entire country on the most important thing. the health care and their current plan. >> it is a significant distortion to say that hundreds of thousands of people are being canceled. what is actually happening is they are likely going to get a better plan for less money. >> the fact is that the president didn't tell the truth. it turns out not to be true. people keep their insurance policies. >> allen west joins us. good evening, sir. >> good evening, g

it's like looking at the bernie madoff problem and saying it's just a bernie madoff problem.f bullying or hazing or harassment in every nfl locker room. if you want proof, think of it like this, the nfl has huge turnover of players. the players in the dolphins locker room has been, what's the problem? this is just the way it is. so it's not just a miami issue. and the nfl, which has no uniform guidelines about hazing, the marine corps has had them since 1997. the nfl doesn't have them. this is an issue the nfl has to address. >> let me quote you in your piece. in the nfl for far too long, the ideal man has been a big, nasty bastard who affects a persona of being mean as hell and impuvious to pain. any dent in this armor is projected hypermasculinest power, to be in violation of the code. should fans be surprised if the accusations are true in what you're saying that the stuff happens on the field. it's not like people are going to ballet. it's football. >> frankly, i don't think fans will be surprised. i imagine fans had experiences of either being bullied or being the bully

have been aired in the race 2009 race and most people in the national media don't know the bernie madoffchristie was reluctant it to give them information about on the subject of his health and his lobbying clients and his household help and his brother in the sec. every researcher will look at the list and say let's drill down on each one of these and build a file. >> you made the best point. for mitt romney, the last person he needed was a wall street guy. when you look at where the campaign was. mike halpern, very quickly, someone who is a big fan of the show is donald trump and spends an inordinate amount of time watching it to complain. the republican party's embrace of donald trump. >> we talked about how governor romney courted him and got his endorsement, as everyone recalls on the day of the endorsement it was reported that newt gingrich would get his endorsement. typical donald trump confusion. >> to add to the drama. >> the obama people started putting the picture of romney getting off his plane with the trump plane. they put it in the spot and everyone in the focus group said

christie worked as a lobbyist on behalf of securities industry association at a time when bernie madoff senior fia official. cyst y's decision to steer contracts to donors and political allies like former attorney general john ashcroft. then there was todd christie, the governor's brother who in 2008 agreed to a settlement of civil charges by the securities & exchange commission. then again, if skeletons in christie closet derail his ambitions, it's clear there are plenty of flavors to choose electric. >> christie is very liberal. he could run as a democrat. >> i believe he is plain vanilla. ted cruz is rooty tooty fresh and fraughty. he's got fire, angst. the republican party needs somebody like ted cruz to really gin up the base and get a fire started. otherwise the republican party is dead, dead in the water. >> joining me is filmmaker alexander pelosi. great to have you on the set. >> thanks for having me. >> i always like it when we have someone say rooty tooty fresh and fruit forecasts. >> mark halperin is. >> that's what we call him offset. >> alexandra, in terms of these reactio

now, remember, bernie madoff's penthouse apartment with three bedrooms is 17 million.house has three bedrooms, six and a half bathrooms, the property also includes multiple swimming pools, horse stables and tennis courts plural. but if you get bored of entertaining inside one of those eight homes, take the party outside. there's a passenger jet just sitting there, a focker f-28 just to kind of hang out in and pretend you're a flight attendant. it also includes its own airport terminal with plenty of space for a party. but i don't think that jet can actually take off. we were looking into that. [laughter] can't actually take off. okay. speaking of parties, time for a house warming party. two companies moving in together in the latest home builder merger, tri pointe homes has bought warehousers real estate unit in a deal valued at $2.7 billion. what does this do for tri pointe? it makes it one of the ten largest home builders in the u.s. it just recently went public. is this latest merger a sign of a strengthening housing sector? we bring in the man at the top, doug baue

. >> he was also involved with some securities organizations, bernie madoff was involved with.n 2012, a lot of red flags, they didn't want to have that kind of aggravation going into a race. paul ryan became a running mate of. the romney campaign, they were pretty upset with that clint eastwood performance at the republican convention, where he was talking for way too long to an empty chair. and the authors of the new book, they've got new insight into what happened after that. >> yeah, wolf, it's been reported that clint eastwood, they let him riff. the romney campaign was actually pretty diligent about scripting the entire convention. but they kind of gave clint eastwood free pass to do whatever he wanted on stage. we knew that. but the authors go behind the stage to tell us what romney campaign aides and romney himself were actually doing whey they were watching this total train wreck unfold in front of them. romney thought it was funny at first, but all of his advisers freaked out. his campaign manager said you got to pull this, you got to cut it according to the book at le

john heilman said when you look at the bernie madoff fact, you can see how it could be a devastating 30-second ad in iowa and michigan and south carolina and anywhere where the primary would have been in a general election. >> you look at the intangibles. christie's health and temperament and easy to see why the romney camp was spooked by him. it's christie's response and even publicly, none of this was new. john corzine can't make the case of a fact the way somebody else did. outside the state of new jersey. >> by new jersey standards, chris christy is fairly clean. how will that play in the living rooms of iowa and new hampshire? >> you just made yourself part of rand paul's advertising. by new jersey standards. >> the scandal there, it's interesting when he talks about the blue jersey, i have to appeal to democrats. the more relevant factor is where inside not a failiated with democrats or republicans outnumber them. that's the largest and fastest growing segment of the voting population and where he starts to shine. that's the statistic to look at. >> when i think about christie

when it was run by bernie madoff. and they investigated him for expense account abuse. were very critical of him. there are a series of other things that they wanted from chris christie that he wasn't forthcoming in their view about, like his health record, like a defamation lawsuit that was filed against him. his brother who was involved in an investment scandal. the one thing that he said in the interview that wasn't factually true was that romney wasn't affected by that. the day when governor romney looked at that dossier and he pulled the plug on christie. lot of unanswered questions. none of those things may be smoking guns, george, but you know, when he steps up on the national stage, i think he knows this true, the level of scrutiny is going to be much, much higher. >> i don't think he knows it until they're there. >> he spoke to the romney team about this, right? >> i spoke to a colleague of mine last night, she's at harvard right now, she told me that none of these issues had anything to do with why christie wasn't pick. she never heard of project goldfish unti

it has a storyline, there are skeletons in his closet and things -- >> even bernie madoff's name comesthis. >> exactly, tv ads that will potentially be out there, that it's not good at the very time in which chris christie is saying i'm ahead by 30% in the polls i'm going to win overwhelming overwhelmingly. the timing wasn't good for chris christie. >> mark, we'll speak with you tomorrow. greatly appreciate it. up next, this is unbelievable story, a soldier oversees, watches in shock as his pregnant wife is stabbed at home while they are talking over facetime. details on the horrifying story and her condition and the condition of the baby. plus, former republican governor charlie crist makes an announcement on how the next run for governor is going to be different. i bet you can guess how. >> the far right wing seems to think it important to make much of my party affiliation. that is precisely what is wrong with politics today. hey breathing's hard. know the feeling? copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment that helps op

madoff defrauded a few.ng the entire country. >> he needs to stand up in front of the american people and say i perpetrated a fraud. >> he totally lied. he therefore got his obamacare passed. had congress known this even the democrats would have voted against him jie. i want to -- >> i want to know why we were promised one thing

christie was a lobbyist at one point for the securities administration when it was headed by bernie madoffat was a public fact but not widely known. then things about his brother's lawsuit with the s.e.c. things about his household help, his health. and other lobbying clients that christie never answered to the vetter's satisfaction. they put that down. they gave it to romney and said here are the unanswered questions. we need more information if this selection is to go forward. the day after that report, romney pulled the plug. >> i'm not sure yet. howard, does it shock you that he may have overused the expense account and spent too much on food and drink at hotels and stuff like that? it doesn't shock me. >> i'll tell you what's amazing though. and it's a tribute to the reporting by my friends here. they also say that the report raised questions for the vetters about christie's relationship with a top female deputy who accompanied him on many of the trips. that's a quote from page 352 of the book a page i'm sure chris christie has memorized at this point. >> john, any further comment on

christie was a lobbyist at one point for the securities administration when it was headed by bernie madoffas a public fact but not widely known. then things about his brother's lawsuit with the s.e.c. things about his household help, his health. and other lobbying clients that christie never answered to the vetter's satisfaction. they put that down. they gave it to romney and said here are the unanswered questions. we need more information if this selection is to go forward. the day after that report, romney pulled the plug. >> i'm not sure yet. howard, does it shock you that he may have overused the expense account and spent too much on food and drink at hotels and stuff like that? it doesn't shock me. >> i'll tell you what's amazing though. and it's a tribute to the reporting by my friends here. they also say that the report raised questions for the vetters about christie's relationship with a top female deputy who accompanied him on many of the trips. that's a quote from page 352 of the book a page i'm sure chris christie has memorized at mispoint. >> john, any further comment on that s

point a lobbyist for the securities industry association of america when it was headed by bernie madoffthat was a thing they looked at and said this could be a mildly problematic thing in terms of 30-second ads. there was also christie's reluctance to take part in the vetting process, which is to say he agreed to be vetted and in a rather unusual move, he didn't provide a lot of the information that the vetters were looking for. i don't think i've ever actually seen that. mark and i, halpern and i, my coauthor, covered presidential politics for a long time. usually when someone agrees to be vetted, they turn over all the things the vetters asked for. in this case, we reported from the final vetting document. they said there were a lot of things, christie's health, his lobbying clients, about defamation lawsuit against him, about investment scandal involving his brother, where he was not forthcoming with all the information they wanted, and their attitude was, if he's not answering the questions, the answer is bad. so these are all red flags, and, again, a big question is, how he handles