mr. madoff had told all he knew. passing sentence, he said a message needed to ebb sent of retribution and deterrence. for over 20 years bernard madoff swindled thousands of people over as much as $65 billion. his victims were the rich and not so rich, families saving to pay their children's college fees, the elderly and charitable organizations. his bravado enabled him to escape the attention of regulators, who ignored numerous warnings. >> i'm very close with the regulators. i'm not trying to say that they can't -- that what they do is bad. as a matter of fact, my niece just married one. but the issue is that they tend to look at the industry as if you're making a profit, there's something wrong. >> but for some victims, even the harshest sentence will not ease their loss. willard's father, william, took his own life after losing all his money to bernard madoff. >> he will go down in history as probably the world's biggest con man, and i don't think that was necessarily the legacy he wanted to leave behind. >> in a

attached with recovering aspects of victims of bernard madoff announced he will sue mrs. madoff. court documents claim ruth madoff has been living a, quote, life of splen door. >>> a stock to watch later this morning, visa. after the closing bell, they reported better than expected quarterly earnings but shares fell 1% in after-hours trading. >>> and in southern england, if you're in the market for a $2 million home, you're in luck. as part of a new trend called extreme home selling, one man is so desperate to unload his place he's offering a cash reward of $100,000 and a new combination speed boat car. interesting. >>> baseball trades, walk-off winners, and the yankees keep marching on. >>> plus, michael phelps proves an age-old fashion cliche. it's not what you wear. it's how you wear it. your early morning sports headlines are straight ahead. >>> a record-setting heat wave in the northwest is coming to an end. where is that heat headed? i'll tell you. you're regional forecast is coming up. you're watching "early today." >>> good morning. if you're just waking up, this is "early

mr. madoff will be paroled? guest: mr. w -- i don't remember the number of his sentence off top of my head. but i think there are a couple of factors. his advanced age plus the length of his sentence was a dig duration coupled with the fact that in the federal system there is no parole, there's not a situation where mr. madoff would be released at any time early outside of some extraordinary action. host: so even in that case you have someone of a celebrity in the sense of what he did. it doesn't matter as far as the person involved, parole or life sentences could pair out that way. what i'm trying to say is does a person's fame determine the length or the ability to get parole? guest: not in the federal system that is life without parole. states like pennsylvania and louisiana in the federal system there is no life sentence. every life sentence is a life without parole sentence so that individual is going to serve the balance of their sentence before they will be eligible for release. and in mr. madoff's case, the sentence

mr madoff isn't accused of knowing about her husband's fraud, but the lawsu says she lid a life of splendor using money that belongeto her husband's customers. ruth madoff's torney says today's action is que, "wrong as a matter law and fairness >> paul: ilooks like more investors e gaining confidence in the market. $11 billion flowed io mutual funds last wee that's the biggesweekly investment since early june. the vestment company institute tracks the numrs. it says much of that money wt in stock funds as investors responded to a string of song earnings repor. >> suzne: here's a look at what's happening tomorrow. we'll see weekly joble claims and host of quarterly results. exxon mobi kellogg, motorola d walt disney are among the companies schedud to report. >> suzanne: many u. car dealerare crushed with customer thanks to the government's new casfor clunkers program. kicked off friday, offering consumers bates to trade old gas hogs for more fuel effient vehies. the idea is toumpstart car and truck sales. but as dia eastabrook reports the program already ces some mps in the road. >> rorter:

mr. madoff could have better spent his time at gitmo n my humble opinion. and then we debate rob risch's ex factor. he says there is no u-shaped recovery, no v-shaped recovery, just an x for no recovery. >> we're going to try hard to cheer him up. not an easy task. "the kudlow report" is coming right back. count 'em, just two minutes. stay with us, folks. lots more to do. she wants to make up. we decide to turin early. we just know. announcer: fdi the moment that's rht for you both can take some time. that's why cialis gives men with erecti sfunction options: 36-hour alis or cialis for daily use. ciis for daily use is a clinicallyroven low-dose taet youake every day, so youan be ready anytime the mont is right. tell your door about your medical condition a all medications and ask if you'reealthy enough for sexual activity. don'take cialis if you take nittes for chest pain this may cause an unsa dp in blood pressure. don't drink alcohoin excess with cialis. sideffects may includheadache, upset stomach, delad backache or muscle ache. to avoid long term injy s

mr. madoff and pay the victims. he filed a $48 billion lawsuit -- he filed a $40 million lawsuit against ruth madoff. martha: he hasn't gotten anything yet. i cannot wait to hear what happens to those folks at the sec. they filled out their job no matter how you look at this. that was their job. rick: and no one's had several. >> no one has been fired at the sec. it is not just madoff. it is stanford as well. martha: thank you. moments from now, lawmakers will announce new rules for pilots and airlines. it is an effort to prevent the pilots error that may have doomed a commuter flights in buffalo. what the bill will do having my identity stolen has taken more than money from me. it's taken my time. time that i should have had to be with my family. it's like you're getting violated. these are uncertain times. and it's tough enough in this economy without... the added pressure, headache, and heartache of having... to struggle with a stolen identity. but you don't have to. lifelock works to stop identity theft before it

mr. madoff will be paroled? guest: mr. madoff's sentence is in the neighborhood of -- i don't know -- i don't remember the number of his sentence off top of my head. but i think there are a couple of factors. his advanced age plus the length of his sentence was a dig duration coupled with the fact that in the federal system there is no parole, there's not a situation where mr. madoff would be released at any time early outside of some extraordinary action. host: so even in that case you have someone of a celebrity in the sense of what he did. it doesn't matter as far as the person involved, parole or life sentences could pair out that way. what i'm trying to say is does a person's fame determine the length or the ability to get parole? guest: not in the federal system that is life without parole. states like pennsylvania and louisiana in the federal system there is no life sentence. every life sentence is a life without parole sentence so that individual is going to serve the balance of their sentence before they will be el

madoff may be out of the woods, not so fast. the bankruptcy trustee has just filed this suit against mrs. madeoff seeking claw backs in an agreement with the government before bernie madoff's sentencing she was allowed to hang on to $2.5 million to get on with her life. she is not out of the woods yet. the bankruptcy trustee saying that she was involved in the fraud for so many years is seeking a major clawback in this case trying to recover money from her. later on "power lunch" the attorney that says he met with bernie for four hours in prison. >>> it time to cash out of this rally? if so, where can you still profit? up next, a first on cnbc, the lawyer that one on one with bernie madoff. and then the pit boss joining us as well after this. >>> stocks stuck at eight-month highs, fast money knows best. they couldn't quit each other, is this carl bart's first big blunder? tyson holy field, jon and kate and now santelli versus leezman. the post market show tonight. when this hotel added aflac to compliment their benefits package aflac! it made a big splash with the employees yeaaaahhhh! fin

she has to know. >> reporter: prosecutors have not charged mrs. madoff justice department, ruth madoff agreed to forfeit property worth more than $80 million, including a manhattan penthouse. she was permitted to keep $2.amillion. ruth madoff's attorney said in a statement, ruth already forfeited to the u.s. attorney's office almost all of the assets named in this complaint." he believes there's more madoff money to be found. even so, he admits prisoner number 61727-054 in his prison khakis was charming. >> he could charm your socks off. >> reporter: the federal investigation into the ponzi scheme continues. thus far, the only person aside from bernard madoff charged is his accountant. wolf. >> alan childrenoff, thanks very much. >>> new york's mayor tells the homeless get packing. >> whether we're transferring the mrob elsewhere, whether they find jobs, it may be easier for them. >> reporter: michael bloomberg offers one-way tickets to his city's homeless. how many are taking him up on the offer? ♪ well i was shopping for a new car, ♪ ♪ which one's me -

mrs. madoff has not said whether she'll leave the country. she gave up her apartment and most of her personal property, but still has more than $2 million to live on. in new york, i'm kathryn brown. >>> as the recession forced stores to close. shoppers can now browse louis vuitton. the store is now open in the mall's luxury wing. and joins other high-end retailers like burberry and izod. sally is on her way now. >> tough times. we wish them well. >>> casino scam. how three employees rigged it so their family and friends could win tens of thousands of dollars in prizes. >>> definition of marriage. the first federal state to vote on the union of same-sex couple. >>> instant updates and first warning weather all the time, click wjz.com. >>> look at those skies. >> doesn't look really. really doesn't, does it? and especially if this is july. just fantastic conditions outside. and wait until you see the numbers. i want to show you the high temperatures from today. only 83 degrees so far. this is a very cool, comfortable air mass on top of us. and

mr. madoff on how he was able to fool the sec and pull off a ponzi scheme. martha: all along i have wondered how these people at the sec have kept their jobs. it is an oversight. it is an oversight.

mr. madoff? >> well, we don't know for certain, but one prison consultant that we talked with said that he is going to be watched carefully here, both because of the danger from other inmates, and also whether he is any danger to himself. as he faces the years ahead.. >> okay. thanks so much, scott cohn, we appreciate it.t. larry. >> we'll be right back for the last call.. you're still watching cnbc, and we are still first in business worldwide. you have questions. who can give you the financial advice you need? where will you find the stability and resources to keep you ahead of this rapidly evolving world? these are tough questions. that's why we brought together two of the most powerful names in the industry. introducing morgan stanley smith barney. here to rethink wealth management. here to answer... your questions. morgan stanley smith barney. a new wealth management firm with over 130 years of experience. ♪ finally lovers know no shame ♪ ♪ watching in slow motion ♪ as you turn to me and say

the door is always open for them to come back and charged mrs. madoff and all the items inside. what do they plan on doing with it? >> the u.s. marshal actually has the job of selling off their assets. eventually, the property is turned over to a real-estate agent who put them on their website. you can go to the u.s. marshal website to see what they are selling now. bill: ultimately, the money they get from that will be doled out to the attorneys and victims? >> no, it goes all to the victims. in this case, the money collected by the sale of those assets will all go to the victims. bill: duly noted. thank you. megyn: it was the moment that captured everyone's attention during michael jackson's memorial. his 11-year-old daughter taking the stage and breaking out in tears. why that moment is causing some controversy. one hundred potato chips, or one hundred pringles. both cost the same. but only the new pringles super stack can makes everything pop. the choice is yours. one hundred these, or one hundred pringles. same cost, but a lot more fun. everything

mr. madoff continued for decades down that road.iness community. there are others in the prison system. even though there are others in all systems of our society who basically take to a completely disconnected view of their relationship with all other people. i don't care about henry or steven. i don't care about anybody, as long as i get what i want to have and i will do that even at the expense of their lives, their incomes, their families and their futures. that is how we are defining evil. stanford university psychologist phillip zimbardo wrote a book on this conversation entitled "the lucifer effect understanding how good people turn evil." some would argue they were good and turned evil is to be called in question. in other words, some people are born evil. before we get to turning good to evil, how do you respond, professor, to the argument that some people are born as bad apples, as bad eggs? >> well, actually, that's a catholic view stemming back from adam and eve. i believe people are born with the potential to be anythin

mr. madoff who was also employed at the business. another firm was being scrutinized. the particular lawyer, i believe, at the s.e.c. then leaves the s.e.c. and goes to work at that particular company. i don't believe that any s.e.c. employee who has had a responsibility over an enforcement action should be allowed to go and work for that company in the next two years. what is your opinion of that? >> it is a very fair question, and the revolving door problem for many agencies is a problem for the s.e.c., certainly. we are looking at a couple of different models. the bank agencies have some influence on your ability to leave the banking agencies and go into a regulated institution for some period of time, and so we're looking at those. here's my dilemma. i need to get the best and the brightest to come to the s.e.c. to come and do what we do. i fear if i put too many limitations on their exit down the road, they might not be willing to come in the first instance. i'm acutely aware of the revolving door problem, and i'd like to find a solution to it, and i haven't figur

mr. madoff, he won't benefit from this particular scheme, quite legitimate one, i mooid might add.ou. >> so i take it he's not writing them. >> no, he's not. >> all right, thank you. >>> firefighters sprinted onto a racetrack to pull a driver out of a burning car, but even with their help, the driver was having a hard time getting out. >>> the co-pilot of a plane that crashed near buffalo in february was apparently working sick that day. investigators released transcripts from the cockpit voice recorder. first, officer rebecca shaw said she came to work because she didn't want to pay for a hotel if she called in sick. testimony at an ntsb hearing showed that both pilots made errors. >>> we've got new video in of a really close call on a racetrack in iowa. you can see the firefighters rushing out after this crash at knoxville raceway over the weekend. well, the driver was trapped inside for about 20 seconds, which must have seemed like an eternity, as the car burned around him. >> and i ran right up to the cockpit, sprayed my extinguisher, and flames were completely engulfed in the

mr. madoff. he is, of course, serving that 150-year maximum sentence. doing while he is locked up. he is exercising, reading, and busy in the sign factory, painting signs. >> really? >> yes. >> interesting. i guess you do have to pass the time. >> keeping busy. >> thank you. >>> michael vick may be able to return to football, but he is not necessarily winning the popularity vote. he leads a recent survey for the most disliked athlete in america. we're taking your thoughts on who you can't stand! ♪ >>> california governor schwarzenegger's popularity has plunged to a new low. in a new poll, the governor's approval rating fell to 28%, partly because of the bitter fight over california's massive budget deficit. californians are not happy with state lawmakers, either. just 17% approve of the job that they're doing. schwartz schwarzenegger signed a new budget deal this week. >>> at least 200 people have died in four days of violence in nigeri nigeria. the nigerian military says forces attacked a fundamentalist islamic secretary sect trying to force religious

mr. madoff. >> thank you so much. >>> we talk about the dangers of texting while you're driving. a study outthe other day shows it dramatically increases your chances of getting to an accident. he takes a wheel in a high-tech simulator and starts texting while he was driving. wait until you see the results of what he's doing. >> he can't drive without texting. >> 25 minutes after the hour. check, please. we know why we're here. to redefine air travel for a new generation. to ensure our forces are safer and stronger. to take the world we share to tomorrow and beyond. announcer: around the globe, the people of boeing are working together-- to make a difference. that's why we're here. >>> welcome back to the most news in the morning, happy hour is coming to the white house tonight. president obama hopes it will be happy when louis gates jr. and sergeant crowley join him for a beer. >> they hope it won't be like the cartoon. tastes great, less filling. there it is. he hopes it won't be like that. no accident that the president is serving beer at his learning moment shindig tonight. f

mr. madoff either. >> and if i could stop you right there that's my point. the sec -- the man, the whistle-blower, i can't think of his name right now -- >> [inaudible] >> marcopolis screamed that he had been referred nine years but nobody would listen be read the field and the same thing with the federal reserve. now you said, mr. mcraith, that quote, we've restricted the nature and the extent of the investments of insurance companies. and the federal reserve has jurisdiction to restrict the nature and extent of mortgage instruments and underwriting standards and they sat on their butt and did nothing. in fact chairman bernanke testified here in october of 2008 that it wasn't until december, 2007 the fed ever got involved in the whole sub prime housing market. i find that astonishing. and mr. capuano was giving you tell, he said where were the states when this went down the tube, but it was the federal agency with direct jurisdiction that did absolutely nothing and now we are talking about using that standard, the sec standard that will lead with madoff, th

mr. mica, for coming on the program. >> thank you. >> my guest tonight, dan mica, c.e.o. of the credit union national association. >> susie: it missed the credit crisis, and the bernard madoff ponzi scheme. some say more money would solve the problem; others say the agency just needs to think smarter. but as darren gersh reports, chairman mary schapiro says the s.e.c. is improving the way it does business. >> reporter: to many members of congress, the securities and exchange commission is almost a troubled teenager. after each bad report card, it offers a long list of excuses. today, congressman scott garrett asked s.e.c. chairman mary schapiro why investors should believe this time will be different. >> it seems like the s.e.c. is always coming in after the fact to the table, always a different chairman, saying, "we realized our errors and now we're going to try to correct them." >> reporter: in response, schapiro offered a long list of corrections. the s.e.c. is focusing enforcement on what it calls "high impact cases" that could hurt the most investors; it's increasing training for employees; and hiring more experienced market professionals; and tightening controls on in

madoff's historic financial scam. he was sentenced, of course, to 150 years in prison monday for defrauding investors. >>> and might president and mrsny when they eat their broccoli, snap peas, cucumber, zmal the vegetables in the new white house garden are growing in soil that's tested positive for lead. it is not at dangerous levels, containing only about 93 parts per million, only about 500 or so less than what's considered unsafe. the white house says it will continue to grow vegetables in the garden. of course, this has been a big push for first lady obama. >> all about keeping healthy. so, good. not so much lead there. thank you so much, brianna. >>> he was singing and dancing until the end. what do michael jackson's final rehearsals tell us about his health and his state of mind? i'll ask the vocal coach who was working on jackson's comeback tour. >>> plus governor mark sanford's story keeps getting stranger. did he spend any state funds on his trips with his argentinian lover? who can give you the financial advice you need? where will you find the stability and resources to keep you ahead of this rapidly evolving world? thes

mr. bachus: these are the same government agencies that regulated a.i.g., countrywide and collectively failed to prevent the worst financial calamity since the great depression. if it took them 30 years to catch bernie madoff, do you really think the s.e.c. can do beater swrob of identifying -- do a better job of identifying inappropriate risk of financial executives whose businesses have remain solvent during these challenging times? really now, is there any question who is better qualified or for that matter who ought to be responsible for setting compensation within the american corporation? in closing, mr. chairman, this bill continues the democrat majority's tendency to go to the default solution for every problem, create a government bureaucracy to make decisions better left to private citizens and private corporations. that's what we did in cap and trade, that's what we did in the health care proposals, and it's this bill on stpwhreck tif compensation -- executive compensation government bureaucrats don't know what's best for america. for those reasons, mr. chairman, i urge opposition to this legislation and reserve the balance of my time. the speaker pro tempore: the gentleman reserves the balance

madoff. i thank chairman serrano for including these two important provisions in this legislation and urge the bill's passage. the chair: the gentleman's time has expired. the gentlelady from missouri. mrs. emerson: mr. chairman, i'd like to reserve the balance of my time. the chair: the gentlewoman reserves the balance of her time. the gentleman from new york is recognized. the gentleman from new york. mr. serrano: i'd like to yield two minutes to the gentlewoman from california and also wish her on behalf of the house a happy birthday. the chair: the gentlelady is recognized for two minutes. ms. lee: thank you, mr. chairman. let me thank the chairman for his well wishes. they come every six months now, i think, but thank you so much. let me rise in strong support of h.r. 3170 and just say to the chairman, this is my first year on this subcommittee, but it's an honor to serve with yourself and such great leaders. i want to thank you, chairman serrano, and our ranking member emerson, for their very hard work on this bill in a bipartisan fashion. you've worked together during very difficult times for our economy and, of course, for this appropriations. this bill begins the work of rebuil

mr. bachus: these are the same government agencies that regulated a.i.g., countrywide and collectively failed to prevent the worst financial calamity since the great depression. if it took them 30 years to catch bernie madoff, do you really think the s.e.c. can do beater swrob of identifying -- do a better job of identifying inappropriate risk of financial executives whose businesses have remain solvent during these challenging times? really now, is there any question who is better qualified or for that matter who ought to be responsible for setting compensation within the american corporation? in closing, mr. chairman, this bill continues the democrat majority's tendency to go to the default solution for every problem, create a government bureaucracy to make decisions better left to private citizens and private corporations. that's what we did in cap and trade, that's what we did in the health care proposals, and it's this bill on stpwhreck tif compensation -- executive compensation government bureaucrats don't know what's best for america. for those reasons, mr. chairman, i urge opposition to this legislation and reserve the balance of my time. the speaker pro tempore: the gentleman reserves the balance