leon panetta, coming up exclusively on the "closing bell." tdd#: 1-800-345-2550 when i'm trading, i'm totally focused. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 gives me tools that help me find opportunities more easily. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 and with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime. tdd#: 1-800-345-2550 until i choose to focus on something else. tdd#: 1-800-345-2550 all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 open an account with a $50,000 deposit, tdd#: 1-800-345-2550 and get 6 months commission-free trades. tdd#: 1-800-345-2550 call 1-866-294-5412. for tapping into a wealth of experience. for access to one of the top wealth management firms in the country. for a team of financial professionals who provide customized solutions. for all of your wealth management and retirement

and leon panetta on how much we should worry about korea. and if that's not enough -- >> i really do believe that the pearl harbor of the future could be very well a cyberattack on this country. >>> nervous markets this week, partly due to new threats from north korea. the company threatening to use nuclear weapons, and the country respond by moving an advanced missile system to the pacific. i spoke to leon panetta, asking him about north korea's motivation and what the consequences may be, all part of the global conversation this week. >> a lot of this i think is aimed probably more at the internal situation in north korea, aimed at improving the new leader's credibility, his credentials as a leader. but at the same time because they have capabilities and they're developing those capabilities, i don't think we can take anything for granted here. i think the greater likelihood is miscalculation, that they do something that escalates quickly. that's the greater danger. >> let me ask you about another concern, and that is of course cybersecuri

i spoke to the form ter secretary of defense, leon panetta. what the consequences may be.f the global conversation this week. >> a lot of this i think is aimed probably more at the internal situation in north korea, aimed at improving the new leader's credibility, his credentials as a leader, but at the same time, because they have capabilities and are developing those capabilitieses, i don't think we can take anything for granted here. i think the greater likelihood is miscalculation that they do something that escalates quickly. that's the greater danger. >> let me ask you about another concern, and that is, of course, cyber security. you said that the united states is facing a potential cyber pearl harbor. what did you mean by that? >> the reality is we're developing the kind of technology now that can virtually cripple a nation. you remember hurricane sandy, when the power went down in hurricane sandy, they lost their 911 capability. they lost theability of gas stations to provide gas, banks to provide money. of hospitals closing, all because power went out. the realit

secretary gates and panetta held regular video teleconferences. some of you remember them. the commanders and all of the key players from the pentagon would work on those very urgent problems associated with both of those theaters. given the priority of the rebalance, the secretary decided to use the same model for paycom, a model that secretary hagel has adopted now as well. it is a model that provides continued attention and focus on the region. to support the secretary, i have been convening a series of working sessions of the acting group, the principal management forum and the department, that are specifically focused on the rebalance to the asia pacific. so we're watching every dollar, every ship, and every aircraft to implement the rebalance successfully. we also recognize that as the world is changing quickly, the operational plans need to change. we're changing them accordingly. we are therefore taking into account new capabilities and operational concepts, advanced capabilities of potential adversaries and global threat assessments. finally, partnerships. these ma

the panetta family had to flee their home to escape the rising water.e. poppy harlow is here with an update. six months for them has just been grueling. >> yeah. it's been a nightmare, that's how the mother put it. so many families have been able to move on, but so many families have not. and the devastation just gets worse after they realize just how much they still face ahead. so this is the story of the panetta family. been keeping in touch with them through all of this. one example of so many families in this area, still reeling from sandy. ryan panetta rescued his family from the rushing waters of superstorm sandy. >> i jumped out. >> jumped out here in the water. >> yes. >> i wasn't thinking that a log would hit me or anything. >> or the electrical power lines. >> he didn't just lose his home. he lost his school was so damaged, he to move to a temporary one. a lot to deal with. >> when something brings down, you have to give up. >> you okay, buddy? what makes it so sad? >> i honestly don't know. >> reporter: everything? >> it's everything. >> repo

i'm not near as smart as secretary panetta was on these things. he had a long history of these kinds of matters starting in this instukes, as you know some of you served with him on budget issues and statements that made sense. so, yes, i will pick up where he left off. i already am. the comptroller and i have had many discussions about this as well as others in the institutions. everyone is committed in getting this done. everyone is exactly where secretary panetta was and where we'll continue to be. >> thank you, secretary. i appreciate that and that is music to my ears. i know you have you hard decisions ahead but this is one i appreciate your personal support. i want to publicly acknowledge bob heal's work that he has done on this issue for years. he's done great work. let me turn to syria a little bit. it's been reported last month that syria used chemical weapons or chemical weapons were used. the president says that is one of his red lines. if that is the case. if a red line is crossed and we have to enact the plans i'm assuming that genera

secretary panetta was more polite. he called the pentagon "a big damn bureaucracy." it does not sound like leon panetta at all. [laughter] are, leon, we're quoting you. the military is not and should never the run like operation. but that does not mean we don't have a good deal to learn from what the private sector has achieved over the past 20-30 years in which reducing layers of upper and middle management not only reduced costs and micromanagement, but also led to more agile and effective organizations. and more empowered junior leaders. in light of all these trends, we have to examine whether dod a structured and incentivize to ask for more and do more. that entails taking a hard look at requirements. how they are generated and where they are generated from. it could turn out that making dramatic changes in each of these areas could prove unwise, untenable, or politically impossible. yet we have no choice but to take a close look at how we can do all of this better. in order to address acquisition, personnel and overhead costs in smart ways, they have not been do

stick around for that interview with leon panetta. i'll see you tomorrow. >>> and it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. market kicking off the second quarter of the year in the red today although just by a fraction after a record first three months of the year. take a look at how we're settling out on the street today. it was close but no cigar. look at that push going into the close. at the low the dow jones industrial average down about 47 points. we are coming all the way back as we approach the settlements here on the floor. things are settling out with a decline of just a fraction on the dow industrials, down about six points. nasdaq composite and s&p performing worse. nasdaq down nearly 1%. standard & poors index giving out seven points, one-half of 1%. first day of the second quarter in the books. how should you portfolio be positioned this time around? back with me is michael yoshikami. mark

secretary panetta was more polite. bigalled the pentagon "a damn bureaucracy of mine -- a big damn bureaucracy." it does not sound like leon panetta at all. [laughter] the military is not and should never the run like operation. but that does not mean we don't have a good deal to learn from what the private sector has achieved over the past 20-30 years in which reducing layers of upper and middle management not only reduced costs and micromanagement, but also led to more agile and effective organizations. and more empowered junior leaders. in light of all these trends, we have to examine whether dod a structured and incentivize to ask for more and do more. that entails taking a hard look at requirements. how they are generated and where they are generated from. it could turn out that making dramatic changes in each of these areas could prove unwise, untenable, or politically impossible. yet we have no choice but to take a close look at how we can do all of this better. in order to address acquisition, personnel and ove

i'm not near as smart as secretary panetta on these things.he had a long history in these institutions. actuarial us that makes sense. yes, i will pick up where he left off. the comptroller and i have had many discussions and the institutions and everybody is committed to get this done. everyone is exactly where secretary panetta was and where we will continue to be. >> i appreciate that. as you try to allocate resources across an awful lot of issues, but this is when i appreciate your personal support and publicly acknowledge any keys following up on an assigned group word. it's been reported last month that it s-sierra used chemical weapons. the president has stated over and over is one of the red lines if that's the case. if a red line is crossed and we have to enact the plan and i missed him assuming general dempsey and his team have put in place to do what it is we need to do, the question comes to how do we pay for that? the chairman has sent the white house letter recently asking not if we do something like that in the sense of budgetar

secretary panetta called india a linchpin in that strategic. -- strategy. these are all good ways to connect the rebalance in india, but i'd like to ask you just very quickly, operationally, what does this mean? what are the practical steps you would like to see in the u.s.-india relationship to make this work? >> very good question. and the thing i think i point to that's very much on my mind is he -- i'm sorry. the thing i to, much you could point to in the u.s.-india security relationship, and you're absolutely right, rick, no one knows this more than you, india is, i think, destined, to be close partner of the united states. we just share so much in the way of values and aspirations and our people just seem to mix it up so easily and so well. you see that every day. that has nothing to do with defense or military, but i think we'll be reflected there. -- will be reflected there. one area of particular importance where i think we can ake progress quickly is in building the indian military capabilities. they don't want to do it, as i mentioned in the spee

secretary gates and panetta both held regular video teleconferences on iraq in afghanistan. some of you remember them when the commanders and all the key players in the pentagon where work on this very urgent problems associated with both the theaters. given the priority of our balance, the secretary decided to use the same model for pay, the model that secretary of state has now adopted as well to provide continuous and focused attention on the region. in fact, i just came from such a meeting. and to support the secretary, i have begin beating a series of working sections of the debbie's management action group which is the principal management forum of the department that i specifically focused on our balance in the asia-pacific. so, we are watching every dollar, every ship, and every aircraft to implement balance successfully. we also recognize that as the world is changing quickly, our operational plans need to change we are changing them accordingly . we are there for taking into account new capabilities and operational concepts, advanced abilities of potential adversar

secretary panetta and one of his last speeches describe the single biggest threat to the united states. when he says that, you certainly have to listen. we have been targeted, all of the big banks have been targeted. cybersecurity is not just about hackers. it is not just about guys trying to get your credit card number. in the case of many economies, there has been a lot of press about china and iran and israel. it is a reality. sophisticated people. building firewalls against them will be difficult. we have got a strong team. this is a threat. it is one that should keep us all up at night. >> on a more positive note, you have traveled around. this is a personal question. where do you see opportunities that people should take a second look at? i think columbia is a strong market for u.s. exporters. do you have a couple of places in mind? >> yes. there is a term that we use internally. we call it frontier economies. mongolia, etc. they are actually quite strong. they have got hard-working people and are increasingly well-educated. typically pretty strong leadership. there are more. i t

certainly amazing, kind of brings back to me, i remember talking to former press secretary leon panetta who said his biggest fear was a lone wolf attack would be the hardest thing to track and that's what we are looking agent right now. national security analyst and homeland and former security advisor to president bush. what about this issue that we could be looking at a lone wolf, and as drew just said, we don't have a possible description of this person, no one has claimed responsibility. there's no motive. will we find this person? >> the lone wolf is the hardest in any investigation you rely on communication and interaction with others as one of your first leads. i think it's unfair to suggest that this is sort of unusual. they've just gotten through the crime scene exploitation, they have sent that information down to quantico, to the fbi bomb facility. they will get a lot of important leads and information from there. there are thousands of hours of videotape that they have to painstakingly go through. they're back in 24 to 36 hours out from this massive attack with all these inj

panetta put forward to continue that cooperation with the va? especially comes to electronic health care records, transfer of those records and tracking these folks from the time they enter your service to the time they get to the va and will be on? >> yes. we are committed to continue to work with the va. i just spoke with secretary shinseki yesterday. we met a couple times since i've been at dod and we've talked many times on the phone, a number of meetings. we have the responsibility in dod. we produce the veterans. and we are not near where we should be, but yes, absolutely we will stay committed and we worked as a partner and do everything we can to fill a seamless network. >> we need a seamless network and i think the department really needs to be sure that the folks working underneath you are stepping up to the commitment as well. >> one of the first things i did when i got over there was to get into this, i was deputy administrator of the veterans administration in 1981-1982. had a little something to do with getting their system on trac

secretary panetta, the president, it changed our strategy. we went through the hearing process the chairman of the joint chiefs said we cannot cut any more out of defense without changing our strategy. a week ago, secretary hazel said we're going to have to revise our strategy again. we have a strategy from world war ii to a year ago and we changed it and now we're going to change it again. it is in response to money instead of the threat. theill take a dive on budget in a second. you mentioned syria. iran foroncerns about a long time. now i have democrats and republicans indicating for much action in syria. 70,000 people killed. i have not heard you speak much on syria. i like to your take and what you think we ought to be doing. where is the red line in syria for the united states? willing to consider military strikes? few think we moved it a times. robusttill had a military legal willy-nilly wherever there is a problem, we would be in a better position to take action. i would like to commit our military anywhere crennel given what we're do

the realignment continued secretary panetta who crafted new strategic guidance in an f.y. 2013 defense budget plan which reduced the department's top line by $487 billion over the course of a decade. the president's request of $526.6 billion for fy 2014 continues to implement the president's defense strategic guidance and enhances the department's efforts at institutional reform. most critically, it sustains the quality of the all-volunteer force and the care we provide our service members and their families, which underpins everything we do as an organization. before discussing the particulars of this budget request, however, allow me to discuss the profound budget problems facing the department in 2013 and beyond as a result of sequester. the congress and the department of defense have a responsibility to find answers to these problems together, because we have a shared responsibility to protect our national security. d.o.d. is going to need the help of congress. we are going to need the help of congress, this subcommittee, to manage through this uncertainty. the f.y. 2013 d.o.d. app

. >> charlie: leon panetta was calling the shots. >> he was calling the shots.there was a commander on the ground who was sort of running the operation but panetta had control. >> charlie: he could have called it off. >> he could have called it off. it bass under the authorities to operate in pakistan the military can't go there. and the c.i.a. has what they call covert action authority. so they did it under c.i.a. control. >> reporter: covert action authority from the congress? >> well, it comes from the president. and congress signs off on it. it's how the c.i.a. operates around the world. they carry out covert actions which are technically deniable. the president auorizes them under what they call a finding. and you're basically authorized to go break the law in other countries and you have the presidential authority to do it. if it goes badly, the u.s. can deny knowledge of it. now in this case, if the bin laden operation had gone badly it would have been pretty hard for the united states to deny any knowledge of what happened. >> charlie: the president seem

yesterday on this program, former cia director and former defense secretary leon panetta told me, thereon for concern. but if you look at the stock market, traders are just not concerned. we're here with bob pisani now to talk about this. we know that the fed is driving everything, bob, but no concern whatsoever about what's happening in north korea. >> and when i talk to the trading community, i hear what we've been hearing for a long time. there's been so much bluster from the north koreans for so many years, that it hasn't amounted to much, why should it now? and put up the south korean stock market. you can so the proof in this, this is three months, no movement at all. but even the south koreans aren't that worried. here's what worries me a little bit. the whole nuclear doctrine we use, mutually assured destruction, is based on the idea that the other side is rational. that if they do missile tests, we send in nuclear capable jets to do exercises with the south koreans. but we don't know anything about this new guy, this kim jong-un fellow. he's 30 years old. we don't know if he's

defense secretary leon panetta said the u.s.must be prepared and very concerned because we cannot know kim jong un's motivations and intentions. it's because of that the u.s. is going ahead with a military statement of its own tonight. our chief foreign correspondent richard engel has reached seoul, south korea tonight and starts us off from there. >> reporter: good evening, brian. south korea thinks the north is bluffing, but pyongyang is playing a dangerous game of brinksmanship which the u.s. is matching with a show of force. military exercises by u.s. and south korean forces.

secretary hagel, general dempsey and your predecessor, secretary panetta, and secretary of state, clinn d genalper have ached an opinion onfavor that issue? >> i have not made a recommendation to the president that we should militarily intervene. >> i'm asking about providing weapons to the resistance. >> we are constantly reviewing every policy nd every option. i think we have . >> have you reached a conclusion yet? >> no. >> thank you. >> general dempsey, the north koreans persistent rumor the north creern are going launch a missile in the next days or weeks or coincide with certain events. do we have the capability to intercept a launch. >> we do. >> would you recommend if that missile left north korea air space we intercept it? >> if it threatened any of our on>> shria tr any ofou whether it left north korea air space, it would be weather it viewed it as a threat. >> that would be my advice at this point, yes, sir. >> is think in doubt in your mind that over time the north koreans are on the path to having the combination of missile and weapon on it? >> no doubt at all. >> in the ca

but six months after sandy the panetta family could only stand and watch. the foundation was shot. >> it was like my baby. and so watch it just be broken down like this is tearing me up. >> tough to go through. like watching my house just come down. >> their home, gone in an hour. >> we're living it every single day for the last six months. it's just a nightmare that we're never waking up from. >> this is everything we've ever done. this is our whole life here. >> they're still paying a mortgage on the home that is faux longer there. their fight right now is over insurance. >> just to do the foundation is going to cost $60,000 to $80,000. oh, my gosh. how do you justify that? it turns on the basis of what you have, not for what you need. >> they say they'll rebuild right here. they'll have to build higher and get approval from the city. i think a lot of people would ask, why rebuild here? it could happen again. >> there's no other way for me to explain other than we love it here. we love it here. >> that's one thing sandy couldn't take away. >> as long as w

and secondly, if secretary panetta was in charge, would this have happened? >> we try to collaborate with them on things we know they have a deep interest in. clearly that collaboration didn't reach the level it probably could have, should have in this particular case. as far as secretary panetta, when this all started, when secretary hagel said we had better take another look at this,, i picked up the phone and called him, and so did secretary hagel. so he understood why we were doing what we were doing, and he supports it. >> eric. >> the same thing i did when i was chief of staff of the army and thought it was time to put the parade back in the bag. the first call was to another general. >> thanks for this lunch. in its letter suggesting that syria had used small a little of chemical warfare, the administration said there was physiological evidence of this. can you talk about what physiological evidence that was d when did that become available to american officials? >> i can't add anything to what you have heard already. there are questions still being an

panetta put forward to cooperate with the va? especially when it comes to electronic healthcare and the tracking of these records from the time they enter service and will be on? >> yes. we are committed to continue to work with the va. i just spoke with secretary shinseki yesterday. we have had a number of meetings and that we have a responsibility. we produce the veterans. shouldnot near where we be, but yes, absolutely, we will stay committed and work as a partner and do everything we seamlesslfill a network. >> i think the department needs to be sure that the folks working underneath you are stepping up to that commitment as well. >> one of the first things i did when i got over there was to get into this. 1981 andinistrator in did -- and 1982. i had a little something to do with getting their system on track. >> on going to lunch one more question at you. are you in favor of closing guantanamo and do you have any authority to transfer any detainees for any reason, whether judicial, medical or military? >> i support the presi

defense secretary leon panetta he said that if this trend does continue that the alliance could be in danger of moving into what he called a collective military irrelevant so there's the question of whether nato will actually still be relevant given the decrease in its capabilities and opinion also . echoed by the former u.s. defense secretary robert gates and there are signals coming from the u.s. that they are not keen on continuing that kind of partnership with this sort of inequality and also looking at the u.s. his own budget costs as well as its shift in priority especially after we've heard that pivot to asia so they have their own concerns with their questioning the kind of reliance the kind of partnership that they have especially with european countries moving forward they're also facing some lack of enthusiasm from the european members of just germany france are very eager to contribute to any military operation so again. the nato secretary general has come out saying that the capability of nato will be impacted and there's a question of critics on the actual relevance of t

technology and what they're using it for top government officials including former cia director leon panetta has said that drones are here to stay regardless of the different views about him. here in california and in other states around the nation legislators are proposing laws that would restrict the use of drones here domestically this fight that the drone industry says that in the next decade we could see tens of thousands of drones in u.s. airspace despite those odds as you drone demonstrators like these to fight on and will be will continue to see protests like these nationwide in san diego. or t. tensions between the u.s. and north korea are at unprecedented levels this week new reports have come out saying that north korea has prepared two missiles for a launch the country also sent out an advisory to foreign diplomats in pyongyang warning them that it cannot guarantee their safety and the safety of the embassies in the capital if a conflict ensues now both north korea and the u.s. are talking strategy now r.t. correspondent margaret how takes a look at the chessboard so back in two

defense secretary leon panetta he said that if this trend does continue to be alliance it could be in danger of moving into what he called a collective military irrelevance so there's the question of whether it will actually still be relevant given the decrease in its capabilities and opinion also . echoed by the former u.s. defense secretary robert gates the problem that nato is facing when it comes to budget is no small matter if we just look back to more than a decade ago if. you had a goal of having sixty thousand troops for instance available for battle in a so-called in so-called core however today we see that these battle groups range from about fifteen hundred to twenty five hundred clearly a huge difference from the initial intention of the number of troops that they had planned to have the cuts that we're seeing it. clearly is because of the year the eurozone crisis the priorities have clearly shifted and there's not much enthusiasm to increase spending in the military alliance some sort of equal burden sharing the united states share has increased from fifty percent to seve

tom's point there is a lack of political courage or will for any secretary defense both bob gates panetta and now hagel to do that and that will require an extraordinary act on the sec def spark to do that comus go ahead. v.j. discusses if there's for. it's a nice academic discussion we're beyond that this is a matter of simple justice four years ago obama said he'd close to space he instituted a presidential task force to look at each of the people down there eighty six of those remaining eighty six of the hundred sixty six there were cleared they were cleared they say there are no security threat what's happening in our democracy is people on one side of the aisle played to fear and said don't let anyone out even though these people record and so they impose rules that restricted the transfer of everyone obama has the power to overcome that by making a waiver these are people who are cleared there's no political will to do this this isn't just we could study it all we want i've got clients who have been there for a loving years who are innocent people who've never seen their children th

and secretary panetta, the president, changed our strategy, so we would be able to fight one and do a holding action. and now, when we went through the hearing process that dempsey determined, joint chiefs of staff, we can't cut anymore out of defense and a week ago, secretary hagel said we're going to have to revise our strategy again. so we have strategy from world war ii to a year ago, and changes it, now we're going to change it again, and in response to money, instead of the threat, and -- >> we'll take it down to the budget in a second. you mentioned north korea, you know, we have the issue going on with north korea, we had concerns about iran for a long time. now you have democrats and republicans in the senate who are instigating for military action in syria, that have 70,000 some odd people in syria killed, now it's time to act. i haven't heard you speech much on syria and i'd like to get your take and what should be happening in syria. we talked about lines and what are the lines to syria from the united states. >> i think if we still had a robust military that we could go w

defense secretary leon panetta he said that if this trend does continue that the alliance could be in danger of moving into what he called a collective military irrelevance so there's the question of whether or not it will actually still be relevant given the decrease in its capabilities and opinion also . echoed by the former u.s. defense secretary robert gates the problem that nato is facing when it comes to budget is no small matter if we just look back to more than a decade ago if you. had a goal of having sixty thousand troops for instance available for battle in the so-called in so-called core however today we see that these battle groups range from about fifteen hundred to twenty five hundred clearly a huge difference from the initial intention of the number of troops that they had planned to have the cuts that we're seeing it. clearly it's because of the year the euro zone crisis the priorities have clearly shifted and there's not much enthusiasm to increase spending in the military alliance some sort of equal burden sharing the united states share has increased from fifty per

secretary panetta was more polite. big damn bureaucracy of mine -- a big damn bureaucracy." it does not sound like leon panetta at all. [laughter] the military is not and should never the run like operation. but that does not mean we don't have a good deal to learn from what the private sector has achieved over the past 20-30 years in which reducing layers of upper and middle management not only reduced costs and micromanagement, but also led to more agile and effective organizations. and more empowered junior leaders. in light of all these trends, we have to examine whether dod a structured and incentivize to ask for more and do more. that entails taking a hard look at requirements. how they are generated and where they are generated from. it could turn out that making dramatic changes in each of these areas could prove unwise, untenable, or politically impossible. yet we have no choice but to take a close look at how we can do all of this better. in order to address acquisition, personnel and overhead costs in smart

i in the thought out in california, leon panetta did a good job. i really admired -- the final thing i don't think we can stop terrorism hundred percent. >> i agree with you. there is a difference between operationally they have been incredibly good, in terms of assessment of our enemies, every since the russians exploded the bomb in '49 we've got it wrong every single time. >> bill: we will talk with a doctor, next, that tried to save a terror victim's life. a very emotional interview as the factor continues all across the u.s.a. and all ar >> bill: he found himself 30 feet from the bomb blast. the doctor joins us now from boston. so first, the woman who eventually died, doctor, were you first on the scene there? >> i was one of the first. i don't know if i was the first one. several people converged on the mass of bodies. we pulled a gentleman are out from under her and begin working on her, too. she was basically in arrest at the time. we thought we had a faint pulse. we started cpr we weren't sure of the pulse. we started using an ambu bag and