we're talking about mary shapiro, after knight capital struggles to stay alive, shapiro has been on a family vacation. she put out a statement saying in part the apparent trading error by knight trading group on w wednesday is the type of event -- phil kinda is joining us now, he is a partner at steptoe and johnson. and also bob pisani. phil, should mary shapiro have cut her vacation short and gone to washington to deal with this? >> it's comb to this. the fcc in times of crisis needs to show leadership. leadership in my mind is one part confidence, one part poise. they don't have a lot of confidence now in the wake of madoff. i don't think she needed to come home because of her staff to step forward, but putting someone out there would have been a smart thing to do. >> how significant did they see this event? what do you think? are they looking at this that it's not as serious as others? they were on the brink of bankruptcy according to some and now they have a lifeline. do they see it differently than the rest of wall street? >> i hope not. i hope they lack a sense of the full situa

again, that's mary shapiro of the securities an exchange commission coming out with a statement sayingunacceptable and she's going to direct the staff to accelerate their efforts to create new rules on this area. >> john harwood thank you very much for this. now the stock is up 60% in change. it's well above the four buck level once again. >> trifecta of breaking news on a slow summer friday. >> let's see if we can make it a decafecta. that would be ten breaking news. >>> up next on "street signs." the big book bounce. why one publisher is wall street's best seller today. "street talk" coming your way. >>> from real books to what we're call fake book. why facebook investors have 83 million new reaches to be worried about the social media stock. we'll explain when when we return. ♪ ♪ i want to go ♪ i want to win [ breathes deeply ] ♪ this is where the dream begins ♪ ♪ i want to grow ♪ i want to try ♪ i can almost touch the sky [ male announcer ] even the planet has an olympic dream. dow is proud to support that dream by helping provide greener, more sustainable solutions from the olympi

and mary shapiro has been on vacation during this crisis. she weighed in today, but does she need more face time? tdd#: 1-800-345-2550 when i'm trading, i'm totally focused. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 gives me tools that help me find opportunities more easily. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 and with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime... tdd#: 1-800-345-2550 until i choose to focus on something else. tdd#: 1-800-345-2550 trade at charles schwab for $8.95 a trade. tdd#: 1-800-345-2550 open an account and trade up to tdd#: 1-800-345-2550 6 months commission-free online equity trading tdd#: 1-800-345-2550 with a $50,000 deposit. tdd#: 1-800-345-2550 call 1-866-294-5412. would you mind if to be i go ahead of you?omer. instead we had someone go ahead of him and win fifty thousand dollars. congratulations you are our one millionth cust

secured financing at the end of the day but before they did that it was precarious they called mary shapiro the f.c.c. and said hey can you help us can you cancel trade she said no way is this an example of the right thing this firm had to deal with it in the private sector without the help of the government. this is what's supposed to happen you know it's most unfortunate if you're shareholder capital because you've seen your value largely destroyed but this is what is supposed to occur when companies do stupid things and we have seen throughout history that actually good because what knight capital daws has is a function in the market is matching orders from buyers and sellers and so there are their entire purpose in life is to try to find nickels to pick up in front of a steamroller well the more aggressive you can get with your ability to try to make money doing this the more risk you take in this case it appears that they loaded a piece of software that was defective onto their computer systems and instead of making a penny every time they did a trade they started giving away dollars.

dialing up mary shapiro the as the see and saying hey can we cancel these trades reportedly she said no and this is a change because after the flash crash people were upset that trades work canceled so why is is superior right first of all and why do you think she made this call this time. well know for a believer you put your money where your mouth is and if you're in the market and you're have people trading that night or any of the other you see and you know it trades a trade and it's very hard to break a trade the only alternative that she could have had was to adjust the hard is and lows of the move which could have been respectable and that could have happened then that would have taken some of the pinch out of the losses however to call law and say that we want to break all trades we messed up when i was on the trading floor if i sold something that i thought i wanted to buy i couldn't run over the program so please please please let me out you know it's like a do over and how many companies for people that are your viewers that their company has made a mistake they don't get

do you think that mary shapiro and sec made the right digs in not canceling more night trades? i would assume you have lobbied on behalf of knight to thinking that more trade should have been cancel snd. >> no. that's not true. tom joyce is one of our board members. never called me or asked for any help. >> do you think mayor shapiro made the right decision? that's why knight found itself in the position it did. >> i don't know. i don't have all the facts. tom does haven't all the facts. i don't know whether mary made the right decision or not. she has a very hard job. she does an excellent job. and in a very tough circumstance. >> andrew, real quick, what do you want to see here? i mean, you know, it -- i understand the whole politics of it and screening and that -- that place of the masses. but fundamentally, we all need the finance industry. to finance things that mat other main street. what do you want to see? >> well, i think at a minimum until some corporate executives start getting indicted and serving criminal -- >> indicted? who do you want to see indicted? indicted. >

i think they responded to the nasdaq/facebook thing and i think mary shapiro was informed and involved in this, and i think the regulators are doing what they should do. and i think that's, as tom expressed it this morning. >> good to see you. >> good to see you. >> we appreciate your time. kurt bradbury is the coo of stephens. let's bring in another executive who came to knight's rescue, the president and ceo of steeple nicolas. welcome to the halftime show. good to have you on this busy day. what i know is a busy weekend for you. >> glad to be here. >> why did you come to the rescue of one of your competitors? >> look, knight is a market participant. and they needed the help, and we're glad to be there. >> you can't escape the fact they still are a competitor of yours. did you try and do other things as i asked this gentleman, mr. bradbury here, did you try and get a piece of knight for yourself rather than have to go in this consortium, if you will, of investors? >> no, not at all. it made most sense to join the industry participants who invested in knight. as kurt said, this was a

commissioner mary shapiro joyce said he wished it was different but acknowledged it was the right one i did speak to chairman shapiro. we had a frank discussion and she did what she thought was right for the industry. and i have to applaud her for her decision. i'm kind of biassed. i wish she made a different decision. she thinks she made the right decision for the industry and i have to support her in that. >> critical to knight's future is whether or not clients feel comfortable enough to start routing their trades through knight. some good news on that front, vanguard a mutual fund giant said it started to route some of its orders through knight once again. david, back to you. >> buck fifty conversion price was hard to swallow for some shareholders but it saves the firms. >> market caps larger now. >> it held around tangible book which is close to $3 a share. all right. let's move on to one of our other big stories of the morning. best buy founder richard schultze offering to buy the struggling retailer for between $24 and $26 a share. let's get more on the story and bring in our a

mary shapiro is trying to introduce reforms for the $2 $2.billion money market industry. >> and all aboarhale watching cruise. how investors are navigating choppy waters when large fund managers meet dead lines to report with the f.e.c. later today. we just had to find a way to get a whale picture in. the producers find it more amusing than we do. markets will look for the likes of warren buffett and berkshire hathaway. warren's war chest is expected to show a loss. >> still us with, alec young, global equity strategist. as we turn to the u.s. trading session, and start to head into retail earnings season, where do you like -- how does that sector stack up compared to the performance across the rest of the index? >> certainly consumer discretionary houses retail stocks, and consumer discretionary sector one of the strongest year-to-date. overweight that sector throughout the entire year. downgraded it to neutral about a month ago. replaced it with energy, and since then, energy done much better. given a lot of concerns about the consumer, we think there are better places to make cyclical

mary shapiro dropped an anticipated vote on new rules for the mutual fund industry. rules aim to reduce risk to financial stability from money market funds. are you following this? >> i read a little bit about it this morning. she doesn't have the votes and she's encouraging other regulators to step in. the fed has a big interest in the money market funds. unclear what they will do. and unclear what authority they have to do it. fed doesn't have authority to intervene in a product like this. >> there's been a big issue about all the regulatory changes we've implemented and how effective they will be in future crisis. >> regulations always lag. rush to pass legislation then it takes two years to create regulations to implement the legislation and by then the markets have moved on dramatically. so perhaps it's time to stop, draw brett, go back to first principles about what we're really trying to accomplish with financial regulation and start over. >> what do you think -- you talk about first principles for financial regulation. what we're trying to do, of course, is n

and so under mary shapiro, under rob kusami that's going to fin.have many hard working individuals, in enforcement, on the exam side, doing this job, day and night. >> you know it's interesting, 75 35, you don't hear about all 735, so that's probably somewhat surprising. >> i'm sure years ago if we had this conversation the challenge would have been keeping up with humankind's ability to try to cheat. but it's all about technology now. and i got to imagine your emphasis is just as much on i.t. as it is the complexity of an instrument, yeah? >> certainly i agree with that. in terms of industry experts we're also enhancing our technology. so that means, you know, the latest technology when it comes to understanding the algorithms, we're creating quantitative units to look at algorithms. and you have those operating across the country. >> fantastic stuff. >> and i'm glad we're able to bring this interview because i know bruce, we spent some time and he is a person who is out there i know in his heart he's out there protecting all of you every day. >>

commissioner mary shapiro, who said something this important you needed time for the public to commentanks so much. hampton pearson in washington. when we come back, we'll sit down with a gulf coast shrimper battening dow jones the hatches. what precautions is he taking and what is his plan after the damage is assessed. we'll get your small business take on isaac when we come right back. tdd#: 1-800-345-2550 when i'm trading, i'm so into it, tdd#: 1-800-345-2550 hours can go by before i realize tdd#: 1-800-345-2550 that i haven't even looked away from my screen. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 that kind of focus... tdd#: 1-800-345-2550 that's what i have when i trade. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 ...helps me keep an eye on what's really important to me. tdd#: 1-800-345-2550 it's packed with tools that help me work my strategies, tdd#: 1-800-345-2550 spot patterns and find opportunities more easily. tdd#: 1-800-345-2550 then, when i'm ready... act decisively. tdd#: 1-800-345-2550

early they are week sec chairwoman mary shapiro dropped a highly-anticipated vote for new rules on the mutual fund industry after losing a swing vote to push forward the reforms the new rules aim to reduce risk. lance armstrong has announced he'll no longer fight accusations he used performance-enhancing drugs. the country's anti-doping agency will strip armstrong from his titles and ban him from cycling. he's refused to cooperate with the process that he's calling one sided and unfair. >> at least you have your own music. >> i do. >> difficult hour. >> armstrong gives up the fight or he admits -->> he doesn't admit anything. i'm tired of fighting with you guys. >> take all my titles, take everything? >> eventually going to do that regardless of what he says at this point. >> wow. >> it's been a long, long battle. between the doping agencies around the world or anti-doping agencies and armstrong. >> what do you think of the days? you followed this more closely than the average joe. >> i would think it would be disappointing. >> if he came forward -->> he gives up because he can't -->>