more on madoff. scott cohen. >> we are now hearing reports from the courthouse that the five form he madoff employees have been found guilty of at least one count of conspiracy. it's a lengthy verdict but the conspiracy count is really that from which everything else flows. they were accused of conspireing to falsify the books and records. allowing the ponzi scheme to go on. these employees had all said they didn't know what was going on. they essentially testified they were dupes of bernie madoff, but the joury has found otherwise i convicting these five employees. all found guilty of conspiracy. again, as we said at the outset, this is a lengthy verdict. there's really 31 counts to be decided here, not all the defendants are accused in every count, but the key count of conspiracy the reports are saying now, all five are convicted. >> thank you very much for the breaking news there, scott cohen. back to our discussion about the youth obsessed silicon valley. herb, you're the grown-up at this table.

one juror said the evidence against madoff was overwhelming.acy to defraud clients, securities fraud and falsifying records and face prison sentences up to 220 years. the ponzi keep planned madoff in prison for 150 years. >>> disney is buying youtube operator maker studios for $500 billion. maker has subscribers and generates billions of views every month. one of the largest audiences on youtube. disney will also find talent for its tv shows and youtube. >>> and the company that make the the popular app-based game candy crash saga makes its initial public officer -- offering tomorrow. candy crush was the most downloaded app on apple's app store. it produces three-quarters of the revenue for london-based king digital entertainment. something investors look closely at. anne-marie. >> i'm embarrassed to say, i waste a lot of time playing candy crush. i should invest to at least get the money back if i can't get the time back. jill wagner, thanks a lot. >>> washington redskins owner dan snyder is launching a new foundation aimed at helping american

madoff pull off the scheme. related to the right hand man and has been a witness for the prosecution throughout and is still giving information to investigators. as well as joanne who had the oversight of the largest bank firm. there are two important players. they programmed the computer on the 17th floor of what we call a lipstick building where bernie madoff had his private investment advisory firm behind locked doors. they have been found guilty of conspiracy to defraud clients involving conspiracy to commit securities fraud and falsification of books and records. they faced depending on who we are talking about, decades in jail. madoff, we spoke to him in jail last may, he is in prison in north carolina. he has always insisted just an outright, downright lie he did this on his own. now the jury is saying he did not do it alone. cheryl: this trial had lasted for six months. is this really the first true conviction of showing that madoff did get help from inside of his office? as you and i remember from years

madoff is serving a life sentence.rare interview the nfl commissioner tells us about a way to make football safer for kids. that's next. that's next. mine was earned in korea in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve. he was a matted messiley in a small cage. ng day. so that was our first task, was getting him to wellness. without angie's list, i don't know if we could have found all the services we needed for our riley. from contractors and doctors to dog sitters and landscapers, you can find it all on angie's list. we found riley at the shelter, and found everything he needed at angie's list. join today at angieslist.com >> pelley: the study out this week confirms stre

but that madoff example was from 2007. the stanford piece from 2004.eople, people every bit as smart as you, fell for them. the final warning signs, your own overconfidence. if you think you have it figured out, think again. ask questions. >> the problem, guys, is that what scott said by virtue of the first three examples he gave, read all of them, said seems reasonable. these things are hard to spot. >> so one thing i would add is that compare to a benchmark, compare to the s&p, compare to nasdaq, because if the returns are so far apart from or consistency is so much better, you got to ask those questions, probably stay away. >> the thing that most shocked me over the years was the consistency. that's a red flag. because as a trader since 1993, never had an identical year one after the other after the other. >> these returns weren't always necessarily that far away from the market. that's another reason that they are so good. so you just got to be careful of whether you're lulling yourself into complacency and just ask the questions. a lot of very sma

bernie madoff being a high profile example. high frequency trading being another reason a lot of people have had difficulty coming to terms with what's happening and how safe equities are. on all three fronts we've had some progress lately. does that suggest there might be a change in mentality for the retail guy who otherwise might be on the sidelines? >> well, i'm not sure it's necessarily those particular issues, but certainly people have short memories and they forget what happened five years ago or whatever. but i think you're right. the data shows that individual investors are coming back into the stock market. that doesn't mean it's this great contrary signal that everybody likes to talk about. rather, that's very normal in a midcycle environment. you know, the early cycle is always the best time to invest but nobody wants to. they're under their desk in the fetal position. the midcycle they begin to come back into the equity market. it's the late cycle when they think there's nothing else other than equities, that's whe

madoff was arrested in 2008 and has said he acted alone. prosecutors argued that the fraud began as early as the 1970s. each of the five defendants faces decades in prison. >>> all right, let's get an early look at our weather this morning. chad myers has that for us. >> and good morning. kind of a complicated forecast for the northeast. a couple of different storms trying to interact. i just don't think they're going to get their act together here with big snow, although it's possible with the european model predicting more than anyone else. there is the low heading up the east coast on the american model. some light snow in the cape and also in parts of maine, 4 to 6 inches probably on the extreme eastern edge here, but nothing for the city. a little bit back here in washington, d.c., into the blue ridge parkway. now the european model, a completely different idea. a little bit closer to the shore, so the snow is not in the ocean, a little bit more onshore, so there could be 10 to 12 inches from chatham back to about plymouth and also up

more of bernie madoff's victims are about to be paid.he man in charge of recouping and redistributing the money stolen by bernie madoff says another $349 million is ready to be paid out. madoff's victims gotten back $6 billion from the ponzi scheme, about a third of what they lost. just yesterday five former employees of madoff's were convicted being part of the massive fraud. bernie madoff himself is serving a 150-year prison term. that is a long one. >>> later in the show, grading the states on their health care practices. next, we answer the question, how do you do that? we'll have some advice on spotting fake jewelry before you drop all that money on a rolex. ♪ i ys say be thman with the plan but with less ergy, moodiness, i had to do something. i saw mdoctor. a blood test showed it was low testosterone, not age. we talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, es

it is a song looking at issues like what happened with bernie madoff. she performs again with her band called got, girls in trouble, based on women in the bible. we ended the festival with a show by, a great jazz player, author and scholar, about jews and the great american songbook. so we start with the great iraqi songbook and finished with the american songbook. >> what a diverse group of folks coming to the bay area for all this music. anthony, you are among them. >> yes. >> we will show this in a moment. when it you set that up now so we can look. >> this piece is an illustration of two parallel histories. so a jewish history from 19th century and a parallel african-american history, from the same period. what i do is i combine what i would call the roots music from each culture, that would be the religious songs, the spiritual songs, work songs and lullabies, in order to create this simultaneous history. >> wonderful. let's take a look. at the end of this, we will see more information about the jewish musical festival. we will take a break and ret

madoff is now 75. he pleaded guilty and is serving a 150-year prison sentence. >> the fbi is refusing to run background checks on people applying to run legal marijuana businesses in washington state. even though it does similar checks in colorado. the federal government says it will not sue to prevent washington and colorado from regulating marijuana even though the drug is illegal under federal law. the justice department hasn't said why it isn't doing the checks. washington is relying on checks from its state parole. washington sate says it's concerned that people with criminal histories would wind up with pot licenses in the state. so far only three people have gotten licenses to grow marijuana in washington. >> time now 6:26. still ahead public safety versus your right to privacy. coming up the crime fighting tool that could collect information from your phone at any time. >> a live look outside, the western span of the bay bridge. waiting for the sun's arrive. going to have great temperatures. >>

bernie madoff ran a private hedge fund. this is not a stock for the faint of heart. stock is coming and people are digesting this, and they close the company down. more to be written on this. liz: can't wait till they come back and say we have got nothing. >> if they do this it will go up. liz: charlie gasparino breaking that news. general motors facing public relations nightmare. may intensify and grow. how to handle the crisis and what it means to gm investors. tim murphy chairs the oversight and investigations subcommittee, he is coming on live. we are going to ask what he hopes to find out about the bubbled recall and where are the regulators on this? billionaire elon musk, modern electric cars get stopped by a very old law. it could affect the ability to sell to customers. we will tell you what is at stake. in the new new york, we don't back down. we only know one direction: up so we're up early. up late. thinking up game-changing ideas, like this: dozens of tax free zones across new york state. move here. expand here. or start a new business here... and pay no

all five of bernie madoff's former employees on trial in the wake of his massive conspiracy have been convicted. prosecutors prevailed on all 33 counts against them. each was found guilty on conspiracy and securities fraud charges, among others. prosecutors argued that the five not only enriched themselves but also helped madoff cheat investors out of billions of dollars. the six month trial was one of the longest in manhattan federal court history. biotech stocks are under scrutiny and under performing. analysts say the downturn comes after a letter from three members of congress questioned gilead sciences' pricing of it's product "sovaldi," a hepatitus-c drug that's costs patients a-thousand-dollars-per- day. analysts say the pushback by government healthcare agencies spooked investors of other biotech companies as well. trader james ramelli of keene on the market, explains. "it shouldn't affect the broader space too much. i think the broader market is in a place where bad news is really going to make investors nervous. especially with something like the biotech sector. its come up

madoff's right hand man was the government's key witness in the trial.loyees will be sentenced in july. >>> google is adding a little style to its google glass eyewear. it is teaming with luxotica. they will sell google glass through its lenscrafters and sunglass hut stores. >>> warren buffett is coming to your living room wall. fat head is selling an oversized big head decal of the billionaire investor for just $29.99. all proceeds go to two detroit area charities. nice to have warren buffett around. i don't know if i would want a big head version. >> well, bertha, i don't know. big head might be right. >>> just ahead, the ladies of the hard court light it up in college hoops. ♪ ♪ [ girl ] roses are red. violets are blue. splenda® is sweet. and so are you. [ female announcer ] just about anywhere you use sugar, you can use splenda® no calorie sweetener. ♪ splenda® lets you experience the joy of sugar without all the calories. it's a very good reason to enjoy something sweet with the ones you love. think sugar, say splenda™ to enjoy something sweet with

. >> this just in, a jury here in new york just convicted five employeed of bernie madoff in the first too spring from the fraud scam. the former employees made themselves rich while telling an elaborate web of lies for decades. they'll knew they were doing expect tried to get away with it. the scam cheated investors ousts billions of dollars and duped government regulatessors, a jury already convicted madoff he is now serving 150 years of a prison sentence. >>> the united states and germany are sending out high-tech submarines in the search for signses of the missing malaysian airlines jet. a magazine reports oceanographers in germany are working with scientists also woods hole in massachusetts to deploy the abyss deep sea search sub. they're unmanned, 12 feet long, they can dive nearly 20,000 feet and stay there for a full day. teams use these subs to track down the wreckage of the missing air france flight off the coast of brazil in the atlantic ocean. let's take a look now. we have the president of the -- tburon subsea services. he brought with him this device here. similar to the

if there's one person i trust, it's bernie madoff.sagreed with his assessment and sent them packing. we would add the newly minted felonies to our zero list. and let's check back in on today's battle of the day before we part ways. we asked, are the freedom tower b.a.s.e. jumpers, those adventurous impresarios heroes or zeros? we want to clarify that onscreen earlier, we did not specify that we meant b.a.s.e. jumpers, that is the technique they were using. here is what we found so far. 57% chose rfd zeros. a lot of mixed feelings about that. on our own team, a lot of adventurers who respected it and some people who thought, too much of a breach of security. we'll keep the conversation going about that. but for now, we're going to wrap things up for today's edition of rfd. thank you all for joining me and it is time for the reid report with my colleague, joy reid. oh, joy, batter my heart, good to see you. >> great to see you too. i don't know about jumping from up that high. >> it's a lot. let's not do that after the show. >> i think

. >> when you were working on nasdaq, did you know bernie madoff? >> i did not. he preceeded my time on nasdaq. >> on your website, the securities and exchange site side, there is a header "he securities and exchange commission post-madoff reforms." >> yes. >> and there are a lot of them. what impacted that have? >> a significant impact. again, you have 4000 extraordinarily dedicated public servants in the sec. you are never going to catch every bad guy, but you certainly want to look back -- which happened. criticisms were leveled to some degree. react positively to prevent in as many cases as possible somebody like a bernie madoff or even lesser fraudsters slipping through any cracks. the reforms you just referred to make us a much stronger agency, the system of tips, complaints, and reviews, essentially making sure that when somebody in a regional office or one of our examiners gets a bit of information, that it gets to a central place of real time and gets to the right people to investigate it and track it down. a much stronger agency now. >> you touched on o

jury has reached a verdict in the criminal trial of five former bernard madoff employees.there has been a verdict reached. we don't know what it is but we'll bring you that news just as soon as we get it. >>> big news, it is all tied into the crisis in ukraine. the department of energy has consciously approved natural gas exports from the jordan cove project in oregon. because of the current circumstances, bill flynn is watching what's going on and we see natural gas trading lower on this. phil, explain it. >> well, it is. because it's going to take a five years before this natural gas is going to get its destination. and so the market right now is not pricing this in. but i think it's a big step forward and a realization by the obama administration that they need to move a lot quicker to approve these natural gas expert. the bottom line is, energy is security. it's national security. and in this type of situation, it really brings home how important it is to start approving these exports. we knew russia was and threat to europe and we knew it was a risk to everybody else

company signed off over claims that it is a bernie madoff ponzi scheme.acknowledged this. aids to learned that 5 bernie madoff were found guilty on most counts of helping run the biggest ponzi scheme in u.s. history. exposed byon fraud the financial crisis. the verdict is still being read right now. going back to the broader markets, the small-cap index has rallied for the last seven straight borders. the longest run ever. joining me now with a look at the small caps is mike from bloomberg. break it down for us. what is behind the huge rally. >> small companies obviously have a bigger market. if you look at the cap, they are saturated in the markets. companies, there is a lot more room to grow. at least in the last quarter, the s&p 500 once ran. is alarming right now. the russell 2000 price-to-earnings valuation is about 49 times trailing earnings. it is higher than it was during the.com bubble. it is a warming thing. that is deadly three times the ratio of the s&p 500. about 17 times earnings. it is about average. >> is it fair to call this a bubble? >>

five former aides of madoff were helping run the scheme. the two men hired by madoff hired had little experience, and they were convicted on all counts. they failed to persuade a federal jury in manhattan that they were ignorant of the fraud. bill ackman has driven the company further into the arms of another investor, carl ikahn. he announced plans today to nominate three board members nominated by ikahn. and the retailer reported a 42% drop in profits. j crew is said to be contemplating an i.p.o. later this year. those are the top headlines. back to you. >> thank you, su keenan. as we mentioned at the top of the broadcast, the deadline for enrolling in health care coverage is just one week away. it is more important than ever to be an informed consumer. a company called vitale always is helping people when it comes to finding the right doctor. joining us now is a chief executive of the company. great to have you here. >> thanks, great to be here. >> talk about what you do specifically? >> vitals is in the business of helping people pick a

madoff is now serving a 150-year sentence. >>> and first responders assisting them. >>> and attacked,sual new feature inside the governor's mansion in colorado. s >>> some big changes here across the eastern seaboard as we go from tuesday to wednesday. the moisture we see towards the gulf of mexico is going to meet some energy up here. a storm system is going to form off of the atlantic. now as we get towards tuesday evening, we get to see the snow here across maryland as well as into delaware. as we go towards wednesday, the snow is going to be a major issue. in these areas, the wind is going to be extremely strong. we could even be seeing blizzard warnings across parts of cape cod. as we make our way towards thursday, things clear up, clouds in the area, and the snow is going to melt across much of the area. here in new york, the snow, well, if we get an inch that is going to be quite a bit. then here on wednesday, we're going to be really concerned about what happens up towards parts of eastern maine. for boston a nigh of 37, and then on friday a high of 53. tony has your news comi

five former madoff employees were convicted of falsifying records.x-month trial, prosecutors convinced the jury that the five defendants played key roles in building the ponzi scheme and keeping it going. please stay tuned for more on "the kudlow report." >>> larry kudlow, you are a national asset. thank you for all that you have done for growth, for optimism in this country. we're going to miss your nightly show. thank you for what you have done to mentor people like me to, help us see the light on what it takes to get the country on its feet again. >> it's no secret how economically and politically brilliant you are but many folks may not know how truly kind you are. you've always been a pleasure to work with. i call you a friend. aflac. ♪ aflac, aflac, aflac! ♪ [ both sigh ] ♪ ugh! ♪ you told me he was good, dude. yeah he stinks at golf. but he was great at getting my claim paid fast. how fast? mine got paid in 4 days. wow. that's awesome. is that legal? big fat no. [ male announcer ] find out how fast aflac can pay you at aflac.com. [ male announ

madoff himself is already serving a 150-year prison term.wall street today: the dow jones industrial average lost 26 points to close at 16,276. the nasdaq fell 50 points to close at 4,226. and the s-and-p 500 gave up nine points to finish at 1,857. still to come on the newshour: why officials now believe the missing jetliner went down in the indian ocean; margaret warner in kiev; a dangerous search for survivors in the washington state mudslide; healing the psychological scars from liberia's civil war; who should control the world- wide-web? plus, japan surrenders part of its nuclear stockpile. >> woodruff: let's go to the latest on the malaysian airliner, missing for 17 days. government officials finally declared what they believe happened to flight 370. but the search for the plane itself, and for an explanation of what happened, continues. so does the anguish of the families, many of them chinese. tom clarke of independent television news narrates this report. >> reporter: after more than two weeks of hoping, today all hope was dashed. so

. >> often the ponti scheme takes a back seat to madoffs. it's more complex.iggest difference, most of the stanford money is still missing. the man in charge of finding it has never done an interview until now. in search of the missing billions coming up next on "power lunch." [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ >>> welcome back to "power lunch." check this out. lowering price target to $105 a share from $125. the firm citing slowing trends in the housing market and increased competition from home improvement retailers like lowe's and home depot. up 15% on the time frame until today's down side. back to you. >> dom, thank you. >>> manhattan prosecutors accusing three former leaders of the once prominent law firm dewey and labeouf of cooking the books, of hiding the firm's deepening financial struggles from banks and other creditors as well. according to the indic

it's a fascinating suite of songs that looks at issues, societal and perral, raised by the bernie madoff issue. two more shows. she'll perform again saturday evening at jcc east bay with her band girls in trouble which does indy rock and folk songs based on women of the bible. we end the festival with a show by ben sidron, a great jazz man, pianist, singer, record producer and p.r. host, author and scholar, about jews and the great american songbook. so in the sense we start with the great iraqi songbook, and twin the great american songbook. >> what a comprehensive, diverse group of folks coming to the bay area for all this music. another neerks you are among them. >> yes. >> we'll show in a moment a clip of some of your work. set that up for us now. >> i conceived of this piece convergence as being an illustration of two parallel histories, so a jewish history from the 19th century and parallel african-american had history also from the same period. so what i do is i combine what i would call root the music from each culture, that would be the religious songs, spirit actual songs, work

this was not as highbrow as may may -- a madoff. >> they investigated the ings for securities fraud, u.s. attorney's office did not move quickly enough and let the statute outs of limitations expire. >>> back to the rain, there is no corner of the bay area that does not need this rain. in the north bay, those who depend on the weather for their livelihood is glad for every sprinkle. cornell bernard is live in petaluma with the story. cornell? >> ama, it started raining here in downtown petaluma around a 9:00. it has been raining pretty much off and on and many hope it will be enough to put a small dent in the drought. windshield wipers are back on duty. the pavement is slick and drivers are taking it slow. it is raining hard in petaluma, but nobody is complaining. >> yea, good for california. >> where is your umbrella? >> i didn't expect it to sprinkle on me on the way home. it is what it is. i don't mind the rain at all. >> city officials don't mind the rain either. >> yes, bring the rain on. >> the north bay will take every drop. rivers and streams are running higher, but the sonom

prosecutors, all five convicted of charges ranging from securities, fraud, criminal conspiracy for helping madoff hide his massive ponzi scheme for years. nine others pleaded guilty to aiding the fraud. >>> detroit emerging from bankruptcy. kevyn orr hopes the city's plan for financial reinstruction touring will be approved and put in place by this fall. thousands of retirees and beneficiaries will receive ballots to vote by the end of april. >>> congress returns to washington today from one of two spring recesses and lawmakers have a lot on their plates to extending unemployment ben fits to raise the federal minimum wage. john harwood joins us from the nation's capitol. what is number one on the agenda this week? >> number one is going on now on the senate floor, to begin debate that would be aid guarantees for ukraine and sanctions against russia that would allow president obama to go further than he's gone and include reforms to the imf. but this is while the president other sees, this is a step forward that the administration hopes to take and democrats hope to take. they do expect to get the

this was not as highbrow as may may -- a madoff. >> they investigated the ings for securities fraud, but the u.s. attorney's office did not move quickly enough and let the statute outs of limitations expire. >>> back to the rain, there is no corner of the bay area that does not need this rain. in the north bay, those who depend on the weather for their livelihood is glad for every sprinkle. cornell bernard is live in petaluma with the story. cornell? >> ama, it started raining here in downtown petaluma around a 9:00. it has been raining pretty much off and on and many hope it will be enough to put a small dent in the drought. windshield wipers are back on duty. the pavement is slick and drivers are taking it slow. it is raining hard in petaluma, but nobody is complaining. >> yea, good for california. >> where is your umbrella? >> i didn't expect it to sprinkle on me on the way home. it is what it is. i don't mind the rain at all. >> city officials don't mind the rain either. >> yes, bring the rain on. >> the north bay will take every drop. rivers and streams are running higher, but t

five of bernie madoff's former employees have been convicted for helping their boss hide his multi-billion-dollar ponzi scheme for years. his right hand man was the government's key witness in the trial. the five employees will be sentenced in july. they could receive up to 20 years in prison. google is adding style to its eye wear to develop versions of the web connected device. i guess that means you can follow a map while you are actually on your bike because i know that's what you like to do. >> absolutely. yes. yes. and google glass is not something i likely wear. bertha coombs, thank you much. >> you know, we did it, we had a reporter wear google. >> one time. last time. you don't need google glass at all, at least to look up the forecast. we're counting on christina loren. >> you know bertha, you said bikes but you got it wrong. it's his hog. scott's hog. good morning to you. i want to show you this, it's kind of cool. you can see here its vertical coming in basically once the showers start. they are basically going to impact the north bay first. the futurecast picks it up as the radar liv

. >> five of bernie madoff's former employees have been convicted by federal jury for helping their bosside his multibillion-dollar ponzi scheme it for years. his right hand man was the government's key witness in the trial. the five employees will be sentenced in july. >>> google is adding a little style to its google glass eye wear. it's teaming to develop ray ban and oakley branded versions of the web connected device. it will be sold through lens crafters and sun glass hut stores. and warren buffett is coming to a living room wall near you. at least if you want it. fat head is selling an oversized big head decal of the billionaire for $29.95. all proceeds photo two detroit area charities. i'm not sure i'm ready for a big head version of warren. >> i like calling him a fat head, though. that's kind of fun. >>> how to stories making news this morning. 32 people were injured in a chicago subway derailment monday because the operator reportedly dozed off. that's what the chicago transit authority union president said before adding the operator actually had 17 hours between shifts to get

he's called the "mormon madoff." shawn merriman is a bishop in the church... father of four children... and the head of a thriving investment business pulling in millions. >> everybody wants to be a part of an exclusive club. so you had to get in quick. that's why he was able to take advantage of so many people. >> narrator: but for 15 years, merriman lives a lie, ripping off his neighbors, members of his church... even his own mother. >> he just said, "mom, i have to tell you something very bad." i said, "you took all of our money that we're counting on for retirement?" he said, "yes." >> narrator: shawn merriman is a scam art

over claims it 'scilitated bernie madoff ponzi scheme. -- madoff is serving a 150 year sentence. >> arestop of the day, netflix. all in the most in the s&p today, down six percent after wall street journal reported -- is in talksr with apple to created a streaming device. we have some breaking news that we want to get to. , at the close of trading here we have the market , but let's get to this news. >> greenlight capital had today website called seeking out the a steakd talked about they had taken in mike got -- a stake they had taken in micron. he had this suit to try to reveal the blogger's identity. they say they will drop the suit about apparently they came to some sort of settlement there as he is ending this suit. they did identify the blogger who linked to the micron stake. this has been resolved privately, and it is unclear how me more details little get. interesting that it comes to a conclusion. >> we're going to find out, right? >> perhaps. i tried to find out this morning by dr. the head of seeking out and asked him who it might be. >> probably the same person who itcoin.d

bernie madoff, we should be really angry at him. he did something really terrible. but the optimal level of abuse is not zero. you tend to think, you talk to banks, right? well, they don't really say this, but it is sort of widely known in the banking industry that they just tolerate some level of embezzlement because the optimal amount of reduction is not 100%. getting that last 10% is so much more expensive than getting the first 90%. it's like your immune system, you don't want an immune system that attacks anything that gets into your system because then you'll die of these autoimmune diseases. so do i think there was moral hazard in the financial crisis? yes, i do. do i think that's why we had the financial crisis? no. i tend to attribute that to a different phenomenon which is the desire and the belief that you have engineered risk out of the system. there is nowhere as dangerous as a safe. so when i started as an economics journalist this 2003, i was reporting on something called the great moderation. anyone remember this? this is great. whole careers, i was

all this bonus news comes five years to the day bernie madoff pled guilty to fraud, and theft. 10 of that has been recovered. half of that has been distributed as the legal process draws out. coming up, tracking the missing malaysian flight. using satellites, space-age technology being used in the >> as the search for missing malaysia airlines flight 370 continues, the effort has been crowd sourced. the earth imagery company digital globe started on online campaign, where people can log on and inspect imagery of the search area to help look for signs of the name. the chinese government released pictures of their own that they say may show signs of debris. how powerful are the satellites that fly over our head. let's bring in dr derek pitts from the franklin institute science museum. how accurate are the hollywood and spy novel depictions. the movies make it seem like they can read licence plates, newspapers, and the reality is that on our computers we can look at google earth and see detailed images of our houses. if they are that powerful. why have they not been more interested in f

. >> a majority weren't wealthy people this, is high brow as madoff this, is blue color people. >> investigators say they hid the fact the funds were doing poorly and transferred in a pyramid scheme. >> i'm say is thatting the possibility bad karma will come to you and other people associated with you. >> one added insult, lawyers touted as chairitable contributions to a school his childrenttended but one donation was paid with investor money drawn from the mortgage fund account. >> awful. just awful they took our money, used it for themselves. >> a civil case filed against ngs sxethed to go to trial in the summer. investors persuing a class action lawsuit. the last chance to finally get some of the money back. >> thank you, dan. a 7-year-old grade teacher accused of sexual assaulting students. he was arrested today in richmond. we're told the investigation began in november, while he was working at making waves academy, also in the west contra costa county school district. he's being held on $1.4 million bail. >> police in oakland investigating a freeway shooting tonight, it happened on interst

this was not as highbrow as may may -- a madoff. >> they investigated the ings for securities fraud,ut the u.s. attorney's office did not move quickly enough and let the statute outs of limitations expire. >>> back to the rain, there is no corner of the bay area that does not need this rain. in the north bay, those who depend on the weather for their livelihood is glad for every sprinkle. cornell bernard is live in petaluma with the story. cornell? >> ama, it started raining 9:00. 9:00.town petaluma it has been raining pretty much off and on and many hope it will be enough to put a small dent in the drought. windshield wipers are back on duty. the pavement is slick and drivers are taking it slow. it is raining hard in petaluma, but nobody is complaining. >> yea, good for california. >> where is your umbrella? >> i didn't expect it to sprinkle on me on the way home. it is what it is. i don't mind the rain at all. >> city officials don't mind the rain either. >> yes, bring the rain on. >> the north bay will take every drop. rivers and streams are running higher, but the sonoma county r

. >> a majority weren't wealthy people this, is high brow as madoff this, is blue color people. >> investigators say they hid the fact the funds were doing poorly and transferred in a pyramid scheme. >> i'm say is thatting the possibility bad karma will come to you and other people associated with you. >> one added insult, lawyers touted as chairitable contributions to a school his children attended but one donation was paid with investor money drawn from the mortgage fund account. >> awful. just awful they took our money, used it for themselves. >> a civil case filed against ngs sxethed to go to trial in the summer. investors persuing a class action lawsuit. the last chance to finally get some of the money back. >> thank you, dan. a 7-year-old grade teacher accused of sexual assaulting students. he was arrested today in richmond. we're told the investigation began in november, while he was working at making waves academy, also in the west contra costa county school district. he's being held on $1.4 million bail. >> police in oakland investigating a freeway shooting tonight, it happened on inter

. >> bernie madoff, den is kozlowski, criminals, gluttons of greed. and evil genius who towered over them, one man. >> big bird. >> big bird. >> we didn't know that big bird was driving the federal deficit. john: and senator it and i clever smear. big bird is not driving the deficit, but it iss are 300 million. >> john, there are 10,000 big birds. america is -- as a whole is a pretty mature group of people. and if you really talk with them anywhere we are, and what is going to happen, what we have to do, and say, it is not pain or no pain it is some pain now. or significantly pain later. and we don't have any politicians to tell the truth to the american people. >> and the pain that comes later by not addressing these issues now is severe. john: thank you, senator, tom coburn we'll miss your service. >> i will be watching you. >> good. a lot of waste in government that is not in coburn's waste books like the $98,000 that interior department spend on this out house in alaska. and the million dollar spend on this fancy bus stop in washington, d.c. matti

. >> five former employees of berp ard madoff were convicted on conspiracy charges. found guilty of helping to fruitulently deal with people. >> coming up next on al jazeera america - a singing nun blows the socks off the competition at italy's version of "the voice." we look at the video that is up next. >> doping has haunted kenya's olympic program after a dozen athletes were caught using banned substances. the international olympic agency wants kenya to shape up and crack down on the abuses. kenya says some runners are not cheaters, just misinformed. >> it's early morning. the high altitude sports training destination in western kenya. the athletes train hard in the morning. it's the best time of the day to run. they hope that they'll be able to clinch medals, maybe break medals. kenya is a country that dominates lopping distance international races. but allegations of widespread doping amongst athletes is threatening its imaging abroad. >> many find that it's out of ignorance. someone tried to tell them. if you have an injury, this is okay. without knowing that t

madoff was rejected by a jury and 5 employings added him and the first conviction in the fraud case and five could face maximums of 220 years in prison when sentenced in late july and nine others plead guilty for participate manage the scheme. president obama will submit a proposal this week calling for legislation to put an end to part of the nsa surveillance program and this development is coming from senior administration officials, good morning. >> they told the "new york times" they are going to propose an overhaul of the national agency's phone records program and the goal is to end the far-reaching aspect of the program that caused the most problems for advocates, under the proposal nsa would stop collection of data about american's calling habits and phone companies would keep records on site and not required to maintain them for longer than they do now and in line with the speech president obama gave at the justice department back in january when he acknowledged that high-tech surveillance has a threat to civil liberties and almost a year that edward snowden leaked evidence of

a federal jury rejected the idea that madoff acted alone. they face up to 220 years in prison sentences. >>> the washington post says the owner of the washington redskins will start a group to benefit native americans. dan snyder faces criticism over his refusal to change the name of the team. some consider it offensive. redskins original american foundation snyder made no mention of the name controversy. >> chicago tribune looks at the probe into monday's train derailment. commuter train swrumped the tracks and plowed into an escalator hurting more than 30 people. whether the operator fell asleep and if the automatic brake system worked properly. >> the new york daily news says the 9/11 museum will be open to the public on may 21st. the site where the twin towers once stood honors the victims, family members and first responders will get a six-day preview. >>> and the new controversy this morning at the world trade center after this stunning video. ahead on "cbs this morning," base jumpers sneak past security at the site of the world's most

this isn't as high-brow as the madoffs.r: investors say they hid the fact that the investment funds were doing poorly. continued to raise money on false projections and transferred money from one fund to the next, e in effect, a pyramid scheme. >> i do not wish him i'm saying, the possibility the bad karma will come to you. and other people that are associated with you. >> reporter: one added insult to the investors. the lawyers counted as charitable contributions to the bentley school in laugh yet. but one of the donations was paid for by investor money. >> that's just awful. just absolutely awful. they took our money, and used it for themselves. >> reporter: a civil case filed by the securities and exchange commission is expected to go to trial this summer. and the bankruptcy will drag physician for the rest of the year. investors will not receive money from either of those actions. investors are pursuing a class-action lawsuit, a last chance to get some of their money back. >>> overseas, now. america is leading the charg

all this bonus news comes five years to the day bernie madoff pled guilty to fraud, and theft. 10 oft has been recovered. half of that has been distributed as the legal process draws out. coming up, tracking the missing malaysian flight. using satellites, space-age al jazeera america. we understand that every news story begins and ends with people. >> the efforts are focused on rescuing stranded residents. >> we pursue that story beyond the headline, pass the spokesperson, to the streets. >> thousands of riot police deployed across the capital. >> we put all of our global resources behind every story. >> it is a scene of utter devastation. >> and follow it no matter where it leads - all the way to you. al jazeera america, take a new look at news. on al jazeera america >> as the search for missing malaysia airlines flight 370 continues, the effort has been crowd sourced. the earth imagery company digital globe started on online campaign, where people can log on and inspect imagery of the search area to help look for signs of the name. the chinese government released pictures of their