mcgraw hill owns standard & poors. shares were a stand-out today, jumping more than 7% on strong volume. two big shareholders say they may push the company to break apart. in addition to s&p, mcgraw runs television stations and publishes textbooks. one of the biggest losers was pre-paid wireless phone service company metro p.c.s. earnings were four cents per share shy of estimates. it did not add as many new customers as anticipated. clearly a disappointing quarter. the stock lost more than a third of its value, falling hard. volume exploded, more than 20 times normal as the stock fell more than 36%. the firm warned those weak customer numbers continue this quarter. all 10 major stock sectors were in the red. consumer spending fell in june and consumer stocks led the losers. tiffany fell more than 8%. hotelier starwood resorts shed 7.5%, and coach dropped 6.5%. earnings were up for coach but the rate of growth slowed down. leading the dow industrials lower was drugmaker pfizer. it was able to beat earnings expectations

am i going to become chief executive of mcgraw-hill?ng to happen. >> greta: he's handled the company in which the credit swap business -- this investigation at the justice department is civil. why civil, i don't know. everybody else is getting investigated criminal -- criminally. is he in any way related to or suspected or guessed or anything these aaa ratings of these credit swaps in 2007, is he to them? >> he's the president of s&p so he obviously had a high level role. there are a lot of players involved. a lot of investigation centers on analysts and whether they were pressured into giving these securities a much higher rating than they thought they deserved. these questions as to whether business managers put pressure on analysts. i don't think we know for sure who exactly is in the crosshairs of the justice department. >> greta: was his compensation package during those years tied in any way to the aaa rating and any value with those credit swaps? >> so far as i've been able to tell that has not been the case. s&p benefited by hav

guest: s&p is a division of mcgraw-hill. mcgraw-hill has been under heat from shareholders lately.large shareholders what the company to spin off in pieces, with their education business and their education -- and their ratings business. also in the news recently has been that the president of s&p, who you might have seen in some of those hearings, he is stepping aside. they will have a new leader of s&p -- doug peterson. he comes from citibank. he has had a lot of experience working with regulators. he oversaw citibank, the japan division during a very intense and political time with japan and citigroup. some people say they are bringing in this dog peterson to s&p so he can better -- doug peterson to s&p so he can better and fees -- interface. host: a colleague of yours rights -- guest: that is certainly what some people close to s&p and sharma are saying, but we need to watch the investigation to understand the full picture. host: jersey shore, and democrats line. caller: why can there not be an agency outside of the government, outside of the agencies that independently investi

of them want what they have got no problem telling you what happens to these kids they're lonely mcgraw's even the procedure was always the same we take into account here and when the order came from the battalion to deliver them we hand them over to the army. after seeing the photos i got in touch with an actor and they told me i had to go to iraq to stop custody prestigious to get custody of the body parts they gave us new some to leave very we went to recover the bodies. once they gave us notice of delivery we went to recover the bodies. which. we left at half past three in the morning. to go to the human rights office. in. he was going to go to barber koa at about nine am. as a bear they gave us the medical examination papers for my brother alexander graham . bell it sounded a minute and for norbi arrow the other young man who died with him. and the medical examination office they gave us the death certificate and the woman who was the medical examiner there were cold war. so they gave us the bodies we thought that if we should arrive in time who could have buried them and look at the

lonely mcgraw's procedure was always the same we take into account here and when the order came from the battalion to deliver them would hand them over to the army. after seeing the photos they got in touch with actor and they told me i had to go to start casting a prestigious to get custody of the body wants to give us new some delivery went to recover the bodies. once they gave us notice of delivery we went to recover the bodies. which. we left at half past three in the morning. to go to the human rights office. it was going to go to barbara koa at about nine am. there they gave us the medical examination papers for my brother alexander with the . galaxy on the limb i know and for norbi arrow the other young man who died with them. and the medical examination office they gave us the death certificate and the woman who was the medical examiner there were culture of war. so they gave us the bodies we thought that if we do arrive in time we could have done repayment the time the same day. if they'd changed him because what i got is that they hit him with one or two bullets. and on the

s&p's owner mcgraw-hill announced deven sharma will leave his post on september 12th. the agency made an unprecedented downgrade of u.s. sovereign debt on august 5th touching off sharp declines in global stock markets and criticism in the u.s. administration and congress. s&p did not say if sharma's resignation is linked to the downgrade but the announcement raised speculation that agency may be trying to dodge the criticism from the government and the financial industry. >>> japan's finance minister says about $10 billion in reserve money already allocated this year's budget might be used to counter the yen's sharp rise. >> translator: an excessively strong yen might have a negative fe othjaneno as the country is rebuilding. we are monitoring the markets for any speculative movements. >> noda said if excessive appreciation of the yen takes hold, the government will include the emergency economic nty budget, but if the quick implementation is needed the reserve money, already allocated in this year's budget, might be used. >>> the japanese currency marked a record high

what if s & p is eventually sold off by mcgraw-hill and i know they're slg other things and maybe it goes away and goes away period and the other two are giving us triple-a ratings. is the triple-a rating the thing that stands? >> well, you know, i believe in suggesting to hear they've lost a lot of clout and downgraded greece and europe said forget it we're not going with you. >> neil: so you go to the friendly greater? >> you go to the friendly, but ultimately powers. >> and these are unsolicited ratings. and what's great about the debate, why do we need the stupid ratings agencies. why do we have so much market-- we are he' triple-a. i will say this, we do not need rating agencies. this is a scam, it's a cartel, it's a-- >> i tell you what. >> they have way too much power. believe me, i'm not a defender of s & p, i agree with you on the flawed past, dagen. the fact of the matter is we have not deserved a top rating for years. the argument afford to pay our bills because we could print money. if that's how you argue the defense of a great grade, i went through college with a 4.0. i

. >>> shares jumped after hours of mcgraw-hill after they team up to buy a $500 million stake in itsnies. tal 3w09 bottoms got a 15 ps boost after a private equity firm believed the struggling retailer is undervalued. ford is recalling more than one million f-150 and f-250 pickup trucks over fuel tanks that could fall off and catch fire. some good news in education. congratulations to ohio university. the new top party school in the nation, and that is according to the princeton review. >>> well, derek lee makes quite a debut as a pirate, and the rockies-phillies game goes down to the wire. plus, a baseball fan takes one for the team causing umps to overturn a call. your first look at sports is straight ahead. you're watching "first look" on msnbc. ay i'm missing england. i type in e-n-g... and he gives me a variety of options. would you like to have a look at a map, my lad? ah, why not? shall we check on the status of your knighthood? yes. again? yes, again, please! thank you. with my digital manservant, i'll never be homesick again. would you like me to put the kettle on, sir? no,

go after those behind the markdown rating agency standard and poor's along with its parent company mcgraw hill are in the crosshairs of the u.s. securities and exchange commission being investigated for overestimating the u.s. there are some two trillion dollars much more serious allegations of insider trading use of the downgrade is reported to have linked to certain market power players hours before it became official and financial analyst paul denning jeff explains it's likely to lead to a much wider crackdown on rating agencies. the path itself probably doesn't begin or end with an s. and p. . investigation is going to find if the if it's not just an arm waving to show there were some extra parties but had nothing to do with s. and p. made a great deal of money on friday there is clearly a political element because if you know a downgrade coming in you short the market prior to that you could make a great deal of money but that is a serious concern within the system like there's a good question in regards to why you have an insider trading been investigated in the general sense raymon

in its latest filing with the securities and exchange commission, mcgraw hill, the corporate parent of s&p, confirms the company is a potential target, saying it's received numerous subpoenas and other government inquiries concerning the rating activity of standard and poor's. s&p, one of the three major bond raters, has come under fire since it downgraded u.s. credit on august 5. but the investigation by the justice department and s.e.c. apparently began months ago. the "new york times" which first reported the story says investigators want to determine if during the housing boom s&p gave triple a ratings to mortgage backed securities which some of its own analysts warned were more risky. jacob frankel once investigated financial fraud for the s.e.c. >> did the ratings agencies have a basis for issuing the ratings? or did they somehow manipulate or inflate the reasons and was that their motivation for doing so? >> reporter: during the free wheeling days before the bubble burst in 2008, banks, wall street and credit ratings agencies all made huge profits on mortgage securities. home lo

no cuts that would be even worse even would be valid if i did that the guy who's the chairman of mcgraw hill which runs standard and poor's was worked in the bush white house working the bush transition team do you think you think this was because they don't like obama i don't know i just find it very look i don't i don't i think there is merit i think i think if he had been on the obama transition team but right now republicans definitely would be saying. i think i thought should i think i think from the s. and p. report itself we should draw very little except it should serve as an impetus look the crib the way credit works for countries is different than the way credit works for you and me if i get a downgrade then the bank won't lend to me and i won't get a loan in the bank that's what really needs to go on the difference of government loans and government debt is that the united states is a the biggest. the biggest borrower india has the most the it has the most money so i think anybody who wants that people want to lend money to the u.s. because. the u.s. pays it back and because

cameron has already called rebel leaders asking for the capture and the return of the lockerbie bomber mcgraw he which will result in just punishment. we suggest this. >> that's awesome. the return of the lockerbie bomber, do you think that will happen? >> there is no way. this guy is with qaddafi right now somewhere. he is on a beach. this guy is on the beach and has had plastic surgery. he takes the mask off and he looks like bill. i think this guy is with him. >> really? that's an interesting theory. i disagree. when qaddafi is captured or killed, will you miss his amazing fashion sense? >> not really, or the tents he wants to pitch by the u.n building in new york city. no, i think the world will be much better with him gone. obviously with a lot of other regimes like him that have been falling by the way side. i do like looking at his weirdly fat face that has had a lot of plastic surgery. i can't quite figure it out. >> he is like cargoes santana about 10 years from now. maybe if he is lucky. >> life transitioning. >> paul, you are our resident middle east expert. i want you to ram bell

getting a handle on mcgraw he's health is as difficult as playing "find the real pug. >> that was animatronicthese animal s who have been dead. shouldn't they show us some gratitude and hand the guy over? >> remember, we weren't in charge of this operation, this kinetic military action, whatever it was. i think this is just another indication of just how successful and wonderful this operation was. >> they never should have let the guy go. i can't think of a better place for him to be. there are bombs exploding and gunfire all over the place. pick him up and move him to afghanistan. he is going to die soon. >> i don't think he will die soon. that's what bugs me about this. he will out live me. he was never sifnlght don't you feel that way. don'ts you think we were bamboozled over oil. >> clearly. he is like the freddy kruger of terrorists. anytime you think, oh no, he has rebounded. we have a lot to learn from the libyan healthcare system. they are able to keep someone like this alive way past his expiration date. i will be happy when this man finally dies. he is a disgusting human being. to

and then a quick followup to one of the stories we were talking about yesterday, gavin mcgraw.d from the hospital. curiously he did tweet out afterwards saying he didn't have much memory of the attack or what happened and he's just going to, quote, recover from here. >> okay. he says he was attacked on the streets of new york and got hit by a cab. >> details are still murky. >> all right. we'll see what happens with him. thank you very much, courtney. for the very latest entertainment news logon to scoop.today.com. just thought of us living with a fan. don't know why that came to my mind. we'll make a list of things required, xbox. we'll be right back. i'm robert shapiro. over a million people have discovered how easy it is to use legalzoom for important legal documents. so start your business, protect your family, launch your dreams. at legalzoom.com we put the law on your side. [ whistle blows ] oh! [ baby crying ] ben harper: ♪ what started as a whisper every day, millions of people choose to do the right thing. ♪ slowly turned into a scream ♪ there's an insurance company th

gavin mcgraw was attacked in the wee hours of the morning and the investigators are opening up the detaltsse it is murky, he was in the east village and attacked by people and then hit by a cab and then taken to the hospital after somebody else called 911. he has a broken nose and some other injure is are. ht se going to be fine. but still -- >> he released a statement that this is the strangest story. >> strangest story ever and there has to be more police investigation to get something more definitive. >> nothing on twiter? >> no. >> okay. we will keep you up to date on that. and then a topic getting a lot of traction especially online, my scoop readers are all up in arms about this, the possible remake of "dirty dancing." kenny ortega was the original choreograph choreographer, and he made up the dirty dance and all of the grinding you see, and not dirty by today's standards, but i asked online, who should play patrick swayze, and here are the results. justin timberlake narrowly leading the pack and zac efron, and mark saling, and the biggest vote of all, no one can replace patrick sway

but mcgraw-hill owns standard & poor's. i bet if they have short-term money around it's in treasuries. i don't know that for sure but they would not be worried about it being in treasuries. >> rose: and that's, in fact, what happened. >> we can print money. there's 17 countries in europe that gave up the right to print money and, believe me, they don't want to give up the right to print money. >> rose: because they joined the euro zone. >> yes and now they have terrible problems because they can't print money. we can print money. we don't to worry about our government becoming dysfunctional but the printing press becoming dysfunctional. >> rose: so you are saying the united states can always pay its bills and it should not have its a.a.a. rating downgraded? >> that's correct. >> rose: what do you make of the chinese criticism? >> i'm sure they're enjoying in the a way. ll, i would critize, too, because if i were the chinese sitting with a trillion plus of u.s. govnment obligations one way another, i would be very worried ab

s&p's parent company mcgraw-hill announced deven sharma will leave his post which the end of the year replaced by the chief operating officer of citibank. beside's s&p downgrade of america's credit rating the agency is being investigated by the justice department for allegedly overrating mortgage backed securities at the height of the housing bubble. >>> in politics, new evidence that next year's presidential election could be too close to call. according to a new gallup poll, president obama is running neck and neck with the top four republican presidential candidates. he's ahead of congresswoman michele bachmann by four percentage points, 48 to 44. he's tied with texas governor rick perry at 47%. the president leads congressman ron paul by two percentage points, 47 to 45. and the president trails former governor mitt romney by two percentage points, 46 to 48%. >> speaking of mitt romney, might be fair to say that mitt romney's renovation plan is going to do little to change some people's perceptions that he's -- he lives in a rarefied environment. the republican presidential candida

in his spare time he has authored six books including mcgraw-hill textbook he offered on homeland security. he joined heritage as a research fellow in 2003. he is a 25 year veteran of the army where he rose to the rank of lieutenant colonel. he was head speechwriter for the army chief of staff. he was executive editor of joint force quarterly. he is a graduate at west point and a doctor from georgetown creating strategies for the army war college. michael chertoff, the led security secretary was appointed to that position by president george w. bush early in 2005, he said james jay carafano said the original series was the first report on homeland security read in his new position. why? it was the shortest. matt mayer as are other speaker. he is a busy fellow. he was former u.s. department of homeland security official in charge of project evaluating how each state has met the threat of terrorism. he is the preeminent expert in the role of federalism and local governments play in homeland security. he is president of the buckeye institute of policy solutions in the premier free market thin

at the same time you have a group of activists and shareholders on the parent company, mcgraw hill whos an independent oversight figure to help s&p navigate potential new regulation and the new public attention it has. it may well be the broader picture here is that some of the alleged wrongdoing in the run up to the financial crisis may now be beginning to bite here on wall street, because it's not just s&p. it's that justice department investigation continues. we have news that lloyd blankfein hired a defense lawyer, also went to the justice department, last night, in a separate development, you have the justice department suing deutsch bank for $1 million because it believed that bank knew from a mortgage company was lying to the federal government about its ability to the right to insure those mortgages when one in three of those mortgages failed. we may have a series of moments of truths on the reality of what happened back in 2006 to 2008, guys, as we move into the fall. it's going to be very interesting. >> what does lloyd blankfein's hiring of that attorney tell you? >> goldman

. >> 23 offices dates back 150 years and is the parent company is mcgraw hill? >> correct. host: report over the weekend. the essence and i'm paraphrasing but talked about the political gridlock in washington and the effectiveness and predictability of american policy makers and political institutions weakened at a time when on going fiscal challenges need to be addressed? >> s&p had laid a marker in the sand. leading up to and endureing the debt debate between congress and the white house and the line in the sand was that s&p believed united states needed to cut it's debt by four trillion dollars. the grand pa bargain. instead the deal led to at least a reduction of 2.1 trillion. falling short of that. s&p had warned it would downgrade the u.s. credit rating and follow through on friday. host: washington examiner. lot of editorials. stop the blame game attend sense is that washington cannot spent trillions of dollars. it's time to reign in federal spending. >> congress and the white house are trying to do this this debt deal does as i mentioned. would reduce spending over

in his spare time he authored six books including, mcgraw-hill textbook he coauthored on homeland security. he joined heritage as a research fellow in 2003. he is a 25-year veteran of army where he rose to rank of lieutenant colonel. served in europe, korea and united states. head speechwriter for the army chief of staff. before retiring he is executive editor of joint force quarterly. he is a graduate of west point. has a master's degree and doctorate from georgetown and a master's degree on strategy from the u.s. army war college. one anecdote, michael chertoff the homeland secretary was appointed to that position by president george w. bush in 2005 he said carafano's homeland security 2.0. the original in this series was the first report homeland security he read in his new position. why? it was the shortest. matt mayer our other speaker today. a visiting fellow here at heritage. former u.s. department of homeland security official in charge of project evaluating how each state has met the modern threat of terrorism. matt is probably the nation's preeminent expert in the role of federal