rejoined now by merrill hoge. merrill on mondays. last night a tale of two quarterbacks, you might say. but let's start with the good. eli manning on that game-winning drive, 7-9, and he wasn't sacked in the win either. show us how the pass protection, key what he was able to do as they went downfield. >> i'm glad you said he wasn't sacked. that was the foundation of everything. we did see eli manning develop and evolve and grow as a quarterback. but let's take a look at the pass protection he had. if you're going to be able to throw the football down the field or be accurate on critical moments in the game, you've got to have time. you've got to have protection. now we're just going to look through this. the cowboys do blitz it. they get lucky on the tip, it goes the giants' way. if you go from the end zone angle, this is where all that hard work when you have to execute together as a team, because as you have all these blitzers coming, you know, you really have to have guys that see things together. the back here, bradshaw, as he w

and merril hoge is here as well. >> don't like the welcome i just got. >> welcome, merril. it is really an honor sharing oxygen with you. >> that's what i'm talking about. >> and not an ego at all. coming up tonight on "monday night football," the colts not involving merril, going for the 11th straight regular season win in miami. let's get you set for the very latest in what's going on with both teams with the team reports. we say hello to michele tafoya. >> hi, trey. peyton manning is going to have to deal with something he hasn't had to deal with in years. that's uncertainty at wide receiver. anthony gonzalez is out injured, out two to six weeks. he will rely heavily on pro bowler reggie wayne and tight end dallas clark. manning is going to have to integrate two young players, rookie austin colley and second year man pierre garson. the colts on thursday signed hank baskett, the former eagles wide receiver, but he'll play a limited role tonight if he plays at all. for an update on the dolphins, here's suzy kolber. >> michelle, in stark contrast to a dolphins offense loade

this winter, they bought merrill lynch.it was purchased, but its executives were awarded with $3.60 billion in bonuses. now, this is where it gets worse. the bank of america shareholders were never told about the $3.60 billion in bonuses when they agreed to the deal with merrill lynch. they were horrified, and they slapped bank of america with a civil suit, a penalty, and now, that penalty is $33 million. a federal judge is working on that with the sec and bank of america, and the judge wants to know whose idea it was to hide the bonuses from shareholders, and there is important news tonight about a man who was fired around the time of that merger. who is he? why was he fired? a wall street reporter for "the new york times" joins us now. she tipped us off on this. who got fired, and what was the timing in this saga? >> obviously, he plays a very important role. he was dismissed days around these disclosure decisions last september, so some people are looking at this now and asking what he was dismissed? was he dismissed bec

this winter, they bought merrill lynch.its executives were awarded with $3.60 billion in bonuses. now, this is where it gets worse. the bank of america shareholders were never told about the $3.60 billion in bonuses when they agreed to the deal with merrill lynch. they were horrified, and they slapped bank of america with a civil suit, a penalty, and now, that penalty is $33 million. a federal judge is working on that with the sec and bank of america, and the judge wants to know whose idea it was to hide the bonuses from shareholders, and there is important news tonight about a man who was fired around the time of that merger. who is he? why was he fired? a wall street reporter for "the new york times" joins us now. she tipped us off on this. who got fired, and what was the timing in this saga? >> obviously, he plays a very important role. he was dismissed days around these disclosure decisions last september, so some people are looking at this now and asking what he was dismissed? was he dismissed because he wanted the ban

year after spending months in the hot seat after buying merrill lynch. >> susie: a deal dissolved. penske pulls the plug on its deal to buy saturn, so general motors says it will shutter saturn for good. >> paul: it's a third quarter to remember. sam stovall joins us as wall street wraps one of its best quarters in years. he's the chief investment strategist at standard and poor's. >> susie: then, dot-com and beyond. the number of possible web addresses will soon explode. we talk to the man in charge of keeping tabs on where you can surf in cyberspace >> paul: i'm paul kangas. >> susie: and i'm susie gharib. this is "nightly business report" for wednesday, september 30. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. thank you. 7//& >> susie: good evening everyone. ken lewis is stepping down as c.e.o. of bank of america. in a surprise announcement late today lewis told the board of the banking giant he'll be retire at the end of the year. he's leaving after a tenure marked and marred by the ba

when he bought merrill lynch. merrill lynch was going to impoed and if they imploded that would have been, you know, three firms that went in a year. >> and he bought countrywide, right? they're doing rather well. merrill lynch is doing rather well. and he may have saved the shareholders at the end of the day. he may have saved the whole country . >> i just hope that andrew cuomo has more on ken lewis than some sort of like, you know, he was weighing the odds of whether he should have disclosed the bonuses or not. there has to be something more there than we're revisiting this thing in a major way. >> is there sec actions down the road? >> he says no. they say they don't think he's going to be charged be but i'll telling you, i have it on very good authority that what they concluded internally was that if he got -- if the sec charges him, he's out. we reported that last week and this week he's out. i'm not there. i'm giving the viewers all the facts. let they want put it together. who's going to replace him? we ha

we are told this is in connection with the bank's acquisition of merrill lynch in january. as you may recall, there have been serious questions about bonuses that merrill lynch paid out just before the deal was completed. sandra smith joins us now. >> fox business has confirmed that the new york attorney general has subpoenaed five bank of america directors in the ongoing investigation over those controversial $3 billion in bonuses paid to merrill lynch executives prior to the closing of the steel. he has questions about what shareholders were privy to as far as the mounting losses at merrill lynch just before the deal closed. sources close to the investigation tell us that there's likely to be more subpoenas in the future. shepard: all of this is happening one day after a judge came down hard on the bank about oversight. >> that is right. the u.s. district judge in new york basically said no to the sec's settlemt with bank of america. the sec claimed that bank of america misled investors heading into the merrill lynch purchase. the judge says that is not going to happen. t

he's leaving after a tenur rked and marred by the bank' rchase of merrill lynch january 1. lewis and b.o.a. havcome under fire sce it was learned merrill gave billions ofollars in bonus to employees while getting bailout money fromhe government. lewis says he's confent in leaving now, becse b.o.a. is ready meet the challenges of a global economy. the bank says lewiwas a key ayer in establishing it as a global fincial franchise and now itill look for a suessor. joining now on the phone for the test analysis ofewis' retirement from b.a. is dick bo, bank analyst at rochedale securities. her heo. >> susie why now? why the timing of today's departure? >> i think there areust too many govnmental actions being brght against the company. i think that new york city and ohio are both sng the company. you've got the s.e. c., congress, and federal judg alwanting to do something against the compy. so that's the reason why now. >> susie: do y think that the obama administration had anything to do with lewis' departure? >> well, to the gree that they control thes. e.c., the answer wou be

>> that is a problem i have with merrill lynch. it isisgusting. merrill lynch was destroyed becaus i'm sorry, baamerica was destroyed because ken lewis did not properly understand the danger of the structure investment vehicle that bank of americaon the largest banks the has tens of innocent people of money, they were investing in products d very dangerous things now ken lewis is still the ceo of bank of americalthough he lost all of that money. that is the moral hazard and that is why i hate blouts but i also feel that if you let people go likely member others, it can hurt a lot of people. i am writing this book not just for the 33 employees, but we wrote this @ook with the intention of main street per gram getting wonderful e-mails, twitter from people that are in the construction say forhe first time i anders stand and that makes me fe really good. [laughter] >> what about the movie? >> patrick is working on that. >> we do have the audio book. >> where are they? >> t nature of the headlock that the government officials put lewis and how they co

as you know, sallie krawcheck is running brokerage at merrill. bob mccann used to work at merrill. his first order of business if he does go to ubs, which is a likelihood, he has been offered the entire ubs america. that's the u.s. subsidiary of ubs. robert wolf runs that now from what i understand. that may come to an end pretty soon. mccann, from what i understand, wants to run the wealth management division. when he does that, then you are going to get a baitle royal for broke errs for top talent and w be mccann trying to poach people from his own firm. sallie krawcheck understands the space here. what she is doing now is she is reaching out, the former merrill executives, i heard ceos. merrill is a brokerage firm run for many generations before stan o'neill and john thain. and tell them, listen, the culture is not going to change here. we think the top guy should stay. the top brokers are close to people like the former ceo, dan tully, the former ceo. what we have here is both sides gearing up for battle to retain talent. this happen as lot on wall street. big news up-front com

most notably, that some material information like growing losses at merrill lynch were not revealed to shareholders. bank of america did send a letter saying they're not going to use that advice of counsel defense. the ag says in several weeks we should expect some charges against high-ranking officials. now to the "closing bell." >>> we're on the floor of the new york stock exchange. in the final stretch with the market reversing, losses now in positive territory. hi, everybody, welcome to the closing bell. i'm maria bartiromo. a lot of activity down here with the president on wall street giving a speech earlier. technology is one of the leadership groups on the up side. bar none. a number of tech names doing quite well today. that's one of the reasons that this market turned, erasing earlier losses. and now in positive territory. we have a story in oil and natural gas. natural gas prices up 12%. we'll get into all of that as we bring in bob to talk about this. off about 12 points.. what turned it around? >> i think the important thing is here is general electric was a real factor in

the securities and exchange commission was trying to settle with them over the merrill lynch thing. judge rakoff a week ago threw that out. now the s.e.c. is preparing to go to trial and preparing to do it vigorously, they say, in a statement just out. this case would go to trial now on february 1st. and the next thing that will happen, according to a schedule that bank of america and the s.e.c. have both agreed on-s that bank of america will have to file a response to the s.e.c.'s complaint. later this week, september 25th. so on friday they will have to respond to it. and then this case would be set to go to trial. and what a trial that would be. on february 1st. on whether bank of america misled investors about the losses at merrill lynch, the bonuses that were to be paid out ahead of the merger closing. that trial would take place on february 1st, and the s.e.c. says it's going forward, in their words, vigorously. melissa? >> all right, scott. karen, you wanted to get in here? >> well, i just think the s.e.c. has such egg on their face over the settlement being thrown out as wel

merrill did. it ended up being merrill's best asset. you did have missteps along the line. it was a mixed legacy. by mack's own admission it was up and down. looking forward james gorman's experience is more on what i'll call the agency side of the business. brokerage and asset management, less on the trading side. i think he -- i heard him once say a couple of years ago he liked the agency side of the business because they hire multiples in the marketplace, they do. whether that means he shifts the focus of the business towards those. morgan stanley does have a premier investment banking franchise a laumpling off point for a lot of stuff they do. that looks like it's going to remain in place. it will be interesting to see how he directs this. >> jeff harte is joining us, financial analyst. jeff, your take on this succession plan, what do you think about the change of management? >> in hindsight, it's not that big a surprise. i can't tell you i was expecting it to happen right away. in looking at it, the last two years financial crisis has been hard on john mack. he's pushi

at issue here -- some huge bonuses that were given to merrill lynch employees, just after its merger with bank of america took place about a year ago. our justice correspondent pete williams in our washington newsroom tonight with more on this. pete, good evening. >>> brian everything about this is unusual. judges almost never flat out reject settlements with this and seldom with tough talk. one year ago today when bank of america agreed to acquire the wall street trading giant merrill lynch for $50 b the bank told shareholders merrill lynch agreed not to pay year-end bonuses to its top executives. but the sec says in fact bank of america did agree to let merle pay $6 billion in bonuses. today a new york federal judge refused to let bank of america pay a $33 million fine to settle a lawsuit the sec filed accusing the bank of misleading investors. the judge said it is absurd that bank of america shareholders having been lied to blatantly need to lose another $33 million. he said that would have the victims of the lie pay an additional penalty for their own victimization and would viol

the fraud is merrill lynch happened on new york soil. this is not just sec regulated. it happened there. >> who got hurt in this fraud? they're a major contributor to earnings in bank of america. >> whoa, whoa. >> taxpayers are going to have to fill the coffers of our pension funds because our pension funds in new york state lost so much money -- be. >> but they're the ones who decided where to invest it. jack berkman, weigh in here, too. regina, please yield when i call on someone else. >> you have such a prominent lawyer arguing the hook is the fraud that happened on new york soil. let me tell you something andrew cuomo doesn't have so much as a statutory hook to launch the investigation, much to go to this point. if anything, it's a federal matter. it's no kind of matter. cuomo is rung for governor. this is like organized crime getting involved with the banking industry. what he wants to do is shake these people down and shake down people around them for blil contributions. he wants to fill his coffer, running for governor. >> if he wanted to shake them down, he wou

merrill lynch was sold after just two days of discussions. it is all a bit dizzying.rk is here with more. >> reporter: charlie, this was the day we were afraid to wake up to, the bankruptcy of one major wall street investment bank, the shotgun wedding of another. some called it the end of an era, another a day of reckoning. that 500 point drop in the dow is telling us investors are worried there is more to come. it was a day for the history books on wall street. >> you go to sleep on friday, wa up on monday and things have completely turned around. >> reporter: outside lehman brothers in manhattan today, shell shocked employees, thousands of whom will lose their jobs, wondered how it could have happened. >> it's very hard to imagine a place like lehman would come down. >> reporter: do you worry about what's going to happen next? >> yes. everybody is worried. >> reporter: the dye was cast this weekend after emergency meetings between government officials and wall street executives failed to produce a buyer for lehman. the suitors were looking for government guarantees

to the economic crisis and the great recession, it was one year ago this week that merrill lynch had to sell its operations to bank of america to keep itself from going into bankruptcy. by some accounts that turned into a bad deal for bank of america. investigators want to question five of the board members to find out what they knew and when. merrill lynch wound up losing $27 billion last year, due in large part to investments on bad home loans. despite that the company's aid workers almost $4 billion in bonuses just for the deal closed. because of those losses, bank of america paid $25 billion in bailout. sandra smith is a correspondent with the fox business that work. sandra, give us the details. >> that is right, new york attorney general andrew cuomo has subpoenaed five bank of america directors, including the former chairman of the country -- company. also, u.s. army generals. they were members of the audit committee in late 2008, at the time when bank of america was purchasing merrill lynch for $60 billion. someone close to the investigation tells us that there will be more su

> up next, the standoff between bank of america and the government over the bank's acquisition of merrill lynch. we've got the latest. stay with us. >>> welcome back. bank of america failing to meet a house panel deadline to turn over information about the bank's acquisition of merrill lynch. scott cohn with that story. >> the controversy over what bank of america knew and what it told investors and taxpayers about mounting losses and bonus payments at merrill lynch before the takeover is only intensif intensifying. b of a has until noon today to turn over documents to the reform committee which is one of the many entities investigating the merger with merrill lynch. as we first reported this afternoon, the bank missed that deadline and the committee chairman in new york is disappointed about that, according to a spokesperson. for its part, the bank is trying to ease the tensions a bit, issuing a statement that it is working with the committee on a plan to provide them with the information they need. and the meeting is scheduled in washington for tomorrow. the issue is attorney/client pri

in losses and bonuses at merrill. the plaintiff group includes the state teacher's retirement systems of ohio and texas, and ohio's public employee retirement system. >> let's have a quick check back in on the indices. 155 for the week overall last week during the course of the session. we actually gained 129. i'm expecting them to come up on the screen. >> it's on all the boards up around us. that snaps a three-day losing streak coming off the week that simon mentioned. up next after a short break, a couple of semi conductor names getting a lot of attention from investors today. which names are seeing the action and we'll take a look at the investment opportunities. >>> welcome back. we're in the final stretch here. about 25 minutes before the closing bell sounds. i've got a lot of green on my screen. that's for sure. financials, technology, health care stocks, all doing well today. there's the dow. not at the highs of the afternoon, but just shy of them, 125 points higher. among the oils, doing well. banks are doing

the five dectors subpoenaed re reportedly on the audit commtee at the time of the merrill al. no comme from bank of america. on monday, a federal jud rejected the bank'$33 million settlement with the s.e.c.ver the matter and ordered a tal. >> paul: it was , up and away from the srt on wall street today as investors welcomed e tame news on ilation. a stnger than expected 8/10 perct rise in august industrial production ga stocks additionastrength. so by on, the dow posted a 77 point gain. thsurge fed upon itself thanks short covering and buyers fearful of missing me gains. and with that, scks ended at their best levels the year. the dow jones gained 1.30 at 9791.71. the nasdaq jumped 30.51 2133.15. ths&p 500 gained 16.13 to 1068.76. in t bond market, the 10 year note fell 8/32 to 1-8/32 putting the eld at 3.47%. >> susie: it is not anniversary to celrate. one year a today, the government steppedn to bail out a.i.g. the insurance git was on the vergof collapse after lehman brhers went bankrupt. coress appointed a financial crisis inquiry commission to find out what haened. as we

merrill also was participating in joint state d.o.d. audit of the afghan national police training and mentoring program. they will report at the end of this year. looking forward to 2010, merrill plans to work on a number of department funded programs including the following. refugees and internally displaced programs, public diplomacy and the embassies dark forces. regarding investigations, and 2009, we created the middle east investigative branch to conduct investigations in support of the department expanding middle east and south east asia missions. concerning department programs and employees and contractors from pakistan, to morocco, with focused concentration high-value, high risk areas and iraq, pakistan and afghanistan. tuesday, six criminal investigators are assigned to meet with five posted overseas and one in arlington, virginia. we can move our personnel easily from these forward bases in the region as needed to islamabad, kabul, or other priority post. we plan to increase staff at current post adding one in baghdad, one in

bank of america's executives and merrill's executives should pay.be they should pay not with money but their hides, pay with their hides. if they hid the $3.6 billion bonus heist from shareholders. the s.e.c.'s decision to take the $33 million fine from the pockets of the shareholders and not the executives? meaningless. if the s.e.c. couldn't find the bad guys, it should recommend that the justice department get to the bottom of it. i think what happened here is mary schapiro, the s.e.c. chair in trying to get the job done made a terrible decision to settle is this for $33 million of the wrong people's money. no wonder andrew cuomo the new york attorney general feels compelled to get some state-level justice against the executives. i typically don't like that, but you know, because we sure aren't getting anything at a federal level i understand cuomo. here's the problem. same way that sarbanes-oxley, which i originally favored, has been taken to extremes, the government decides that people should be put in jail using existing laws, then the wrongdo

merrill lynch and morgan stanley and other firms or by an subprime mortgages lenders at top dollar in 2006 and eve in 07, eraordinary. and getting more and more leverage themselves. so, that was kindf an extraoinary thing that i'd learned d i still tohis day cannot decide wther some of these institutions like merrill lynch or citigroup or american home mortgage were corrupted a crooked or just stupid. i go back and forth on this in my own head but i think it tells something about the nature of the media that we like nspiracy theories. we like to blame the big financial institutions at the top floor being the master manipulators they all are. but they can become victims of their own chicanery and in this case they did. they built their own propaganda and obviously have paid my plea for it. the other startling experience for me in reporting the story was not about me perce i felt i needed to look up th question of how minorities d low-income people were targeted byendors because iwas pretty clear that members had gone very aggressively and systematically after hispanics and low-income b

has been unr fire since it bght merrill lynch january 1. allegedly failed to tell shareholders about the brokerage's operating losses and bonus payments texecutives. paul paul: susie, bank of americ sharesere among the big board's most active. we'll see them as ke a look at sometocks in the news tonight. >> susie: a programmg note for ne week as we kick off special coverage of the nation's hea ca reform story. on monday, tueay and wednesday nights, right here, jeff yastine's ill of health" signatursegments will look at health insurce in the workple. then on thursday night, "nigly business report" will join oer p.b.s. news and publ affairs shows for a special, 90-minu primtime look at health care reform. i'm one of the hosts f this unecedented collaboration among "nightly biness report", "now on pbs" and "tavis iley", a timely a in-depth look at the issues. it's called "pbspecial report: healthare reform," and airs thursday, septembe24 at 9:00 p.m., eastern me. eck the local listings in yo area. >> paul: also nday, how taxpayercan benefit fr

to put those pesky merrill lynch bonuses to rest. but a ruling today could land everyone involved in court. >> susie: then, from tires to auto parts to chicken. there could be a trade war brewing with our biggest supplier and buyer: china. >> paul: i'm paul kangas. >> susie: and i'm susie gharib. this is "nightly business report" for monday, september 14. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. thank you. >> susie: good evening everyone. president obama delivered a stern warning to wall street today: "we will not go back to the days of reckless behavior." those harsh words came on the eve of the one-year anniversary of the financial crisis, when lehman brothers collapsed. speaking at federal hall in new york's financial district, the president said the economy is beginning to recover. but he cautioned "normalcy cannot lead to complacency." he urged wall street to embrace his plans for overhauling financial market regulations. >> these re

merrill lynch had the same problem as lehman.oup had hundreds of billions, companies were in trouble, interbank market seize add year before. so already in the middle of a very severe crisis. lehman, everything okay is just non-sense, not understanding the difference between cause and affect. lehman was an effeaffect of the crisis not the cause. >> did allowing it to fail, though, give regulators the administration the political will, the panic to put in the tools -- to put into effect tools that would later be useful? >> yes. certainly why do i feel unconventional monitoring credit policies of the financial system were implemented, some of them before lehman, some of them after lehman. the support and back stopping of the financial is a commitment of $12 million resources, three already spent, capitalization, gaerns, insurance, you name it. many things occurred well before lehman. many occurred after lehman. >> do you feel better or worse than you did prelehman? i know at the time you said a depression was not an all together po

at merrill, he's credited with improving profits, a feat he repeated. jeff hart says gorman is the key man for the job. >> the one concern i have and i don't think it's a new concern, he does lack experience on the institutional side of the business, some of the investment banking, and that kind of side of it. >> reporter: as for the 64-year-old mac, he described the four-ine tur yur as being up and down. he says he feels great about the work he did during the credit crisis, notably securing a investment from mitsubishi, helping to stem what had been a dangerous flag for morgan stock. still ill-timed decisions by mac like increasing the exposure to mortgages and hedge funds ahead of the crisis, some say those are marks on his career. melissa, back to you. >> mary thompson, thanks so much. let's bring in david faber. thanks so much for coming out here and joining us. how do you think history will judge john mac. >> he's been around for a long time. i remember him as a lieutenant at morgan stanley, well regarded in the investment basicing world, but you h

and neither are the people who came in from merrill lynch to head up the investment banking area. so i would guess that brian moynihan would be the number one candidate. >> dick, by saying that, ken lewis stepping down is bad to have bank of america, does that imply they are in fact trading down by taking one of these possible successors and making him or her ceo? >> absolutely. there's no we in my mind about it. ken lewis was one of the most brilliant bank executives in this country. he's proved it over 20 years of making solid decisions. he's created a company which went from a nothing bank in north carolina to being the largest bank in the united states, with 12% of the nation's deposits, a number one position in a whole series of consumer and commercial products. for him to be pushed out on this issue is almost outrageous. >> hey, dick, it's joe. does this change the time frame at all for repayment of the tarp? >> no. i think it would be a mistake for bank of america to repay the tarp at this point in time because the government keeps making these noises as they did last week

the $50 billion sale of merrill -- merrill lynch to bank of america what engineered by the treasury and federal reserve. and insurance giant aig received rescue loans in return for federal control. but day after day wall street was saw huge stock swings. >> you would go home on friday, come back monday they would be out of business, go home, they come back they would be gone. >> by early october they pass the trouble relief program, tarp, the fund originally was intended to buy bad assets from banks. ultimately it was used to inject capital into the system. in his speech today mr. obama pressed again for overhauling the financial oversight system. >> there will be those who argue we should do less or nothing at all. there will be those who engage in revisionist history or have selective memories and don't seem to recall what we just went through last year. but to them i say only this, do you really believe that the absence of sound regulation one year ago was good for the financial system? do you believe the resulting decline in markets and wealth and unemployment, the wrenching hardshi

and i have yet to hear stan o'neal of merrill lynch o chuck prince, former of citigroup apologize fore recklsness that they unleashed but, boy, did they do a lot of it and the closer you look at what happened, the more outrageous it becomes. how much time do i have here? oh, okay. so what i'd like to wrap up with here in the remaining minutes is, the things i learned in the course of workingn this book that went beyond my own personal saga. all of the -- almt all of the public attention and debate about my book has been about whether i'm a creep or a irresponsible and did i do it right? did i do it wrong? all those kinds of questions. the real question is not whether i made horrendous judgments that's obvious. i did. the real question is, why did 8 to 10illion or so people at the same time make horrendous judgments? it's always going to be the case that some people at any given time are going to borrow more than they should and they're going to get in trouble for it. but it's never been the cas that we have this kind of wreckage at one time. so many people, so overextended in such a c

they paid $50 billion for merrill lynch.ey wait a week and have the could have gotten it for 12. so i can't explain it. >> that would defeat the purpose because that would convince the markets they are not worth that much. >> it was a poker game. the whole goal of it was to put everybody at ease and they were going to let lehman brothers go but nobody else and we areoing to -- we are going to solve this crisis. another theory and this is a deep, dark pherae a lot of people feel they let lehman go because they were sure that the t.a.r.p. would be passed and the t.a.r.p. changed capitalism. and i don't think that the t.a.r.p. would have passed if lehman hadn't failed. remember lehman phill an t.a.r.p. didn't pass the first vote and in two days later it paed. >> will the little banks survive or will we be gobbled up and have three banks we are going to be controlled by? >> i hope they do. that's one of the probls -- >> [inaudible] >> that is one of my great allies in the book. there is a scene where alex kirker says at a meetin

they are expected to be questioned about the billions in bonuses paid to merrill lynch executives beforehe deal closed despite the firm's massive losses. the investigation is trying to determine if bank directors misled shareholders by withholding details of the losses and bonuses. >>> bank of america is responding to calls for simpler credit cards. today the bank is unveiling a new card that features a one-page explanation of terms and conditions, a fixed rate and flat fee for late payments. the rate won't change based on a customer's payment history or credit rating. other companies are expected to release these types of cars in the coming months. >>> chrysler will begin leasing cars again starting today in an effort to boost sales. all 2010 chrysler, dodge and jeep models will be eligible and some special deals on select vehicles will be available through the end of the month. leases could make cars affordable for most people. chrysler stopped offering them last august when financial markets collapsed. >>> toyota is planning a billion-dollar marketing blitz to boost sales in the u.s.

it was one year ago today that the wall street was teetering on the brink of collapse, and merrill lynch about to be sold. we will talk to one of the few people who was able to foresee what was going to happen, and what he sees coming up. and also, lessons learned a and where we go from here. a nobel prize winning economist, and a woman who makes decisions for investing for millions and a pulitzer prize winning author. "the "wall street journal" report" beginning right now. the "wall street journal" report begins right now. >>> here's a look at what's making news as we head into a new week on wall street. more signs the economy is continuing to stabilize. the federal reserve beige book, a look at the economy throughout the nation, found that a vast majority of the nation is reporting economic activity stabilizing or improving, and it appears the worst recession since the 1930s is over. the report also says that soft consumer spend and a weak jobs market continues to suggest the economy roer will be subdued. the dow jones industrial average started off the holiday shortened week on an up

b of a is in a standoff with congress right now over the merrill lynch deal. sc scott cohen has the latest. >> bank of america shares down just under 2% at $17.31. that's a loss of 33 cents on the day. back in a moment. the products are best. especially for beef. consumers will go out of their way to find a better cut. so to round up more business, smart grocery chains have partnered with cargill who supplies stores with a line of top quality beef hand selected and specially prepared so grocers can sell beef so appealing it will have more shoppers blazing a trail to their store. this is how cargill works with customers. (announcer) when you buy a car what are you really buying? a shiny coat of paint? a list of features? what about the strength of the steel? the integrity of it's design... or how it responds...in extreme situations? the deeper you look, the more you see the real differences. and the more you understand what it means to own a mercedes-benz. the c-class. see your authorized mercedes-benz dealer for special offers through mercedes-benz financial.

over bonuses paid at merrill lynch. >>> here's a look at wall street. after spending much the session in negative territory, the dow finishes higher by 19 points. the s&p 500 higher by more than 6. the nasdaq composite higher by near 11. bob is our eye on the floor of the new york stock exchange. there was so much focus on president obama today because of his address across the street. but the fears about a trade war with china, we shook it off at the last minute. >> we did. i think that's the resiliency of the overall market. we did see stocks moving up, early on. but michelle's right, folks, that should have caused a little bit more of a concern. it did earlier in the day. stocks opened on the lows today. but we moved very quickly off of those lows. let's look at a few important names. general electric, our parent company, the stock of the day because of a very important technical level at $15. you cannot see a volume chart here, but just around 2:15, 2:30, ge hit $15. the overall market rose as well. general electric hasn't been at $15 since january.

bank of america, merrill lynch, the price target of 30. so there's room to run there. 52-week highs. a lot of them. i'll show you the range. a lot of different types of companies on the nasdaq. starbucks up 3.2%, hit a 52-week high. juniper, shows the range of companies that hit 52-week highs. to the down side, yahoo! they're struggling, in china, with their own brand, what are they going to do moving forward. dell down 1%. obviously some dilution involved there. i also want to point out there was -- goldman had a note out on discount brokers. schwab had to sell, that's down. but they have buy on e-trade, up 7.6%. the number one volume stock on the nasdaq. just incredible volumes. like feed the beast by the broker and there's a lot of volume. >> we don't have the charts to show you, but a lot to tell you about oil to look ahead for next week. oil prices today were down on the session, around $72 a barrel is where we settled. but they gained 4% on the week. again, chart's not there, but take my word for it. oil prices next week they'll show

andrew cuomo upping his investigation into merrill lynch. cuomo has issued subpoenas to at least five bank of america board members requiring them to testify about their knowledge of mounting losses and bonus payments of merrill lynch prior to the acquisition. bank of america would not comment on the story. bank of america shares up more than 2.5%. amazon.com upgraded to buy from neutral by boosting to $103 from $95. because of the sustainable competitive advantage in e-commerce. including customer loyalty and distribution infrastructure. amazon shares charging higher up on the day, up better than 8%. continental airlines with a $20 price tar guess but argus. what appears to be a bottoming in consumer demand. kond nen tal shares trading higher on the day by almost 2%. bud is back. anheuser-busch inbev trading under the ticker bud. it was acquired last year, and stopped trading in the u.s. but the ceo says growing interest from american investors prompted the return to the nyse. taking a look at the stock on the day. well, we don't have that

bank of america acquired merrill lynch and the government took 80% of aig. wachovia was scooped up by wells fargo a few months later. the playing field has changed. fewer players, less risk, lower leverage, bigger government for sure. i sat down this week with many of the players that changed wall street. citi's vikram, bob jimd and john mack of morgan stanley. >> i remember tim calling and saying, okay, john, give me plan b. what do you do if this happens? i think that kind of involvement, and clearly they were not just working with me, they were talking to other banks, i think that kind of leadership and involvement was the critical piece in keeping the meltdown from being much worse than it was. >> the entire administration has been very clear, they have no interest in running banks. and we are really responsible for the operation of the bank on a day-to-day basis. >> it was pretty -- it was a very uncertain period of time. one really questioned the viability of the markets. the fear was quite large. >> on one hand, we knew that if lehman went into bankru

america has until noon today to provide congress with answers about its controversial merger with merrill. a house committee investigating thdeal is demanding the bank divulge when it became aware of losses at merrill. it is trying to determine if bank of america's shareholders were tricked into approving the deal. >>> the federal reserve holding its first policy meeting since chairman ben bernanke declared the recession is likely over. the central bank is widely expected to hold interest rates at record low levels but it could signal to investors that it will begin winding down programs designed to keep mortgage rates down and get banks lending. >>> well, the irs is giving tax evaders more time to come clean. the agency is extending an amnesty for americans hiding assets in overseas bank accounts and have until october 15th to apply which promises no jail time and reduced penalties. the original deadline was wednesday. who are than 3,000 americans have already applied. >>> well, it was raining meatballs at the weekend box office. the animated comedy "cloudy with a chance of meatballs" op

that was before it took over merrill lynch last year.ast week, a federal judge threw out a proposed settlement of the civil case. the head of the federal communications commission proposed open internet rules today. he called for all wireless carriers to abide by the same rules that wired networks have to follow. some wireless carriers, such as at&t, have blocked file-sharing traffic because they take up so much capacity. the carriers argue heavy users can slow traffic for everyone. and still to come on the and still to come on the newshour tonight: a health insurance mandate; and novelist margaret atwood. that follows the latest on the arrest of three terror suspects. judy woodruff has the story. >> woodruff: the three defendants made their first appearances in federal court today in denver and new york city. the arrests on saturday were the result of a year-long investigation of 24-year-old najibullah zazi, an afghan national and airport bus driver who has reportedly admitted to getting explosives training from al qaeda. police raided

and the bonuses paid to merrill executives.elt securities and exchange commission had tried to settle charges a week ago with bank of america. a judge threw that out. today the s.e.c. says it will vigorously go ahead and pursue a trial on that. meantime, bank of america was -- have until noon today to turn over documents to a house committee about all of this. they did not do that. citing attorney/client privilege. >> why it could indicate that the recession may finally be over. >> the index of leading economic indicators it's up again, fifths month row. forward-look measures of the economy. the problem here though is that we still have high unemployment and by all indications even the administration admitting that unemployment is going to continue to be a problem and so that's going to put a little bit of a drag on this recovery. but there are signs pointing to, i guess, the worst of the recession being over. but still, a lot of crosscurrents there. >> okay and as far ass markets are concerned, they retreated today. are analys

remember, merrill lynch, bank of america bought merrill lynch. he was head of the broker department there. he wants to work. >> good to see you, charlie. thank you very much. appreciate it. >>> we're counting down, 0 minutes before we go to wrap it up. we've given it all back and then some. the dow down 25 points. the s&p lower, and nasdaq lower and price of oil down 4.5%. >>> we're talking about oil. talking about energy, matt. my one-on-one interview with duke energy chairman and ceo, james rogers. why he thinks solar power is going to become the clear leader of alternative energy and why he believes oil has been on this run, and what happened today. after the bell, former british prime minister tony blair sits down with me to talk about the global economy, in particular the uk. are we on the road to recovery or are we stalled. he joins me at 4:00 p.m. eastern today. >>> the finish line here. cue the submarine. aviation supplier, aar, down 30% to $10.2 million because of a 5% drop in the revenue. but wall street said, hey, that's better than we

merrill lynch had $1 trillion.ven more than that, they had 16,000 brokers who sell with customer accounts probably totally at least $1 trillion, maybe more. i can't remember the exact number now. you are talking about systemic risk out the ka zoo. i'm just saying -- >> and they're wrapping me, charlie, but it's sellout." ken lewis, the story right now, the feeling right now if cuomo sues him, they're saying he's not going, the board is behind him f the s.e.c. does, well, it's another story, he's probably out. >> thank you, charlie. >> i don't think it would be a very civil suit. i think it would be very acrimonious. >> i have a quiz for you. hotel cancellations, garbage piling up outside of restaurants, shopping bags. what do these things have in common? >> they are uncommonly clever economic indicators. seriously, we're going to tell you how they are all connected and what they tell us about the economy on the other side of the break. you are watching "power lunch" on cnbc because we are first in business worldwid

they paid $50 billion for merrill lynch. if they wait a week and have the could have gotten it for 12. so i can't explain it. >> that would defeat the ppose because that would convince the markets they are not worth that much. >> it was a poker game. the whole goal of it was to put everybody at ease and they were going to let lehman brothers go but nobody else and we are going to -- we are going to solv this crisis. another theory and this is a deep, dark pherae a lot of people feel they let lehman go because they were sure that the t.a.r.p. would be passed and the t.a.p. changed capitalism. and i don't think that the t.a.r.p. would have passed if lehman hadn't failed. remember lehman phill and a.r.p didn't pass the first vote and in two days later it passed. >> will the little banks survive or will we be gobbled up and have three banks we are going to be controlled by? >> i hope they do. that's one of the problems - >> [inaudible] >> that is one of my great allies in the book. there is a scene where alex kirker says at a me

khuram choudry from securities from merrill lynch, you're staying with us. still to come, the mack pulls back. he's leaving morgan stanley. does this signal a conservatism in the bank? >>> gm sold control of opel to mac na. will that be enough for germany's angela merkel? >>> hello there and welcome back. gm has decided to sell control of opel to magna. it brings clarity to the unit's 50,000 workers. analysts said gm had no clear alternative because of the cost of raising millions of dollars to keep the brand and funding its restructuring. the german chancellor angela merkel has welcomed the decision. >> reporter: gm has decided to sell the group to magna has the german government has negotiated and welcomed. i'm very pleased about the decision which is what the dperman government had hoped for. >> let's talk more about the car sector with our guest host for the hours, khuram choudry. your thoughts on the autos at the moment? does it mangs sense to restructure the industry at the moment or do you think we'll reemerge from the slump that we've been in. >> we'

the issue here was bonuses paid by merrill lynch. a judge rejected the deal to settle allegations that bank of america did not tell investors about the agreement to pay those merrill executives billions of dollars in bonuses before b of a then went and bought merrill lynch, which, at the time it, was a troubled investment firm. today's ruling comes days after the two parties urged the judge for a second time to uphold the settlement. >>> president obama is demanding wall street change its ways to prevent another financial meltdown. one year ago today, lehman brothers collapsed and it sent the industry into a tailspin. today, the president addressed wall street and gave a stern warning. >> those on wall street cannot resume taking risks without regard for consequences and expect that next time, american taxpayers will be there to break their fall. >> income's penbc's peter alexas us from wall street. peter? >> reporter: president left here downtown at federal hall, having a lunch with former president bill clinton right now elsewhere

>>> john saunders alongside merril hoge and mike ditka.or the second consecutive week go up against a quarterback making his squteisk start. drew brees, eighth straight game he's had at least two dating back to last season. obviously we know with drew brees nine touchdown passes in two games, going to be able to air it out. >> in the last couple years it's always been about drew brees. when you have a strength you must complement that strength. different dimensions to your team. it's very difficult to defend and offense that has apt -- options like that. what they did today, they complimented the saints. they were physical up front and or offensive line just whipped philadelphia. their backs complemented, and they were balanced. 29 carries. that's about as balanced as you can possibly get. that's the one thing the saints i believe have lacked. we'll see if they can keep it all year. but the first couple weeks they've had it. >> and because they're a good offensive football team they get you out of doing what you want to do. philadelphia th

lynch, long time merrill lynch executive left last year amid turmoil. here is what mccann wants to do. mccann had made a proposal to essentially if he was going to take this job as head of wealth management he wanted at some point to have it spun off into a separate company where he would participate in the upside of building that business. that was something mccann has pitched to gruebel. that spinoff would be done at later date when the market conditions changed. there are several complicated factors to making this work, the market is not good, number two, getting mccann in this job. he has a contract with bank of america. they say he has a noncompete clause. there are settlement negotiations going on. people who know mccann says he will get out of it. then he goes to ubs. what job does he take? another complicating factor. sources confirm that ozzie gruebel offered him robert wolf's job. he is head of all ubs america. now how this plays into mccann's grand scheme, i don't know, to be honest with you. i do know that mccann, number one, wants the wealt