ben carden, who was a third congressional here, and now john sarbanes. so if you're a member of the 3rd congressional district, this is your congressional district. we pass the baton and we pass the fort. the story of fort mchenry in the battle of 1812 and the battles of '13, '14 and '15 that have been fought in our country are well-known and told. you've heard them all weekend, and you will continue to hear them. because of the great historic significance of what happened here, it was the job of the maryland congressional delegation working with our fantastic park service to continue to tell the story. that's why we worked so hard and fought so hard both in the federal law books and the federal checkbook to have a brand-new visitors center and to be able to have the historic path to tell the sfoer and to be able to have commemorative coins to pay for it. i want to salute specifically senator paul sarbanes who initiated this in the senate, and i was his abled ally. at that time congressman ben carden was in the house where we worked together along with m

tucker about anarky and the role it can play in building a new civilization in the digital age plus sarbanes oxley turns ten today happy birthday but the threat of jail time for executives knowingly signing off on inaccurate financial reports hasn't been used to go after financial crisis related incidents so what gives and what's the lesson we'll talk about it let's get to today's capital account. now as you probably know as we have a dedicated loyal audience we spend a lot of time a great deal of time rather on this show talking about the big picture of the financial system and financial regulation the need for it the lack of enforcement in many cases the burden of compliance costs for small firms versus the large too big to fail firms that can not only shoulder the cost of violating these regulations but can also spend such a large amount of money lobbying to influence them today just to give you an example we see headlines from r.b.s. over a libre settlement from h.s.b.c. putting aside two billion dollars in the face of regulatory scrutiny over a bunch of stuff money laundering other alle

well after the financial crisis where is a hard time for sarbanes oxley violators related to it it's something we've talked about with a number of guests who've laid out concrete evidence they believe the violations that have gone on punished leading up to the financial crisis here a few examples. we know but if there is very very clear evidence that they were told. by senior management of citi group you know senior management of lehman brothers among others it seems like with this example you gave us our brains oxley it seems like you have a disaster like enron and then you have an effort to regulate so that it doesn't happen again like with sarbanes oxley and then you have the same practices that continue and post enron go unpunished so my question for you what is the point of regulation f. they're not enforced is it just for show yes it is for show it looks as if the regulators are there to protect the bad guys we didn't hold c.e.o.'s of our major banks accountable for accounting statements that they signed off on in two thousand and seven that were false. so happy tenth birthday

. >> congressman sarbanes office or the only people who were willing to help me. i reached out to the other senators and they said since congressman sarbanes was working on it already, they did not want to get involved. >> congressman sarbanes office contacted the u.s. secret service and got their attention. >> when your name appears before them as they wanted person, they will update the text record that you were the good david 11 and not the person you are looking for in your warrant. >> and not only share the same name, a share the same birthday. >> law enforcement experts say that have to check out the american david levin as a matter of security. even though the secret service knows he is not the wanted guy, he will still have to jump through hoops when traveling or if he is stopped by the police. >> i need to notify the agent who wrote the warrant of my where it -- of my whereabouts, and basically have to give them my itinerary, when i may or may not be coming back into the country, so i am not detained for as long as i have been. >> i am still being electro

then later in congressional and other testimony perjury and also criminal sarbanes oxley violations if you as either the c.f.o. or the c.e.o. of. the adequacy of your firm's internal financial controls then you were committing a felony punishable by ten years in prison and we know that there is a very very clear evidence that there were false and occasions by senior management of citi group in senior management of lehman brothers among others i'm curious and you know there are lots of different theories about this but i'm i want to know your why do you think we haven't seen those personal if the answer is very simple it's a very depressing answer it's very sad answer but it is that the financial sector is now so economically financially in political powerful that it is immune not only from regulation but also from law enforcement. and it is it's it's control federal it's in federal policy it's now so great that it is as a practical matter impossible to prosecute senior financial executives the united states so that you think that will be a continued trend we see for example with libel

. >> congressman sarbanes office are the only people that were willing to help me. i reached out to the other two center is when they said since congressman sarbanes was working on that they did not want to get involved. >> congressman sarbanes office contacted a secret service and sent this letter. >> when your name appears before them as they want a person, they will update the taiex record that you are the good david levin and not the other person we're looking for. >> the russian national david levin and david levin share the same name and the same birthday. >> they have to check out the american david levin. he will still have to jump through hoops when traveling. quex in it to notify the agent who wrote the warrant of my whereabouts, my comings and goings and i have to give them my itinerary when i may or may not be coming into the country so i am not detained for as long as i have been. >> is the satisfactory? >> i am still being electronically my turn. i am telling them what i am doing, where i am going, who i am with, etc. >> he says it might not be a bad i

in terms of clearly doctor -- >> that's fine, forget about the sarbanes-oxley, you come through as anat's happened, how do you have any faith? >> that is true, the individual investor has had some body blows, beginning with enron and worldcom and up to the present time insider trading, the libor problem, all of those things i think have been reflected in the fact that individual investors are very, very wary of the market now and that's unfortunate, because that's really the bedrock of the capitalist system. >> so congressman, if you were back in washington, and you could either update your law or write a new one, is there something you would do? >> well, no slaw perfect. i would have initially more of a scaled down provision that would have had, treat smaller companies different than the larger fortune 500 companies, but in many ways though we gave the flexibility to the sec and the pcob and they've used it somewhat and maybe there's an opportunity to use more of that to make it work even more effectively. it's a process. it's been ten years. obviously there's some changes that are n

congressman burger and john sarbanes with us, i think we share a love for this place.herish is looking over those ramparts and looking at the star-spangled banner and see the blue angels roaring over these ramparts. what an outstanding moment. in that never seen, superintendent, so many people here at the fort. moms and dads, black and white, grandparents, little kids. it was really outstanding. i would like to make just two points. so much has been said and said so eloquently by the ambassadors and by our secretary from a baltimore perspective and is a maryland perspective, there are a couple lessons that we clearly see having emerged from this experience, from this sacrifice, from this conflict. and the most important one of which is that freedom is not free. it was not the federal government that paid for this fort. it was the townspeople, the merchants, the business community of baltimore that paid for our defense. it was also a time that made us realize that we could not be a free nation. the freedom is not free. that the united states navy is not some luxury that

bush, i know he's not coming to the convention, but he signed sarbanes oxley. oxley is mike oxley mitigating circumstance predsessor as chairman of the committee. it's an accounting requirement. and what this does is to make another chunk out of that regulation. maybe we hear different people. the american people -- my friend says the american people are crying out for an end to regulation. every indication i have is everybody is tired of irresponsibility, by a few, not everybody, but they are tired of people being scammed and the notion that the fact -- that what we need is less regulation is an odd one. it comes from people who didn't see the cry sess we had because sarbanes-oxley came about after enron. so i would align myself with president bush, i think he got this up with right. i think mike oxley got this one right. for startups, for people about to go public, they have a $250 million exemption. but to give a permanent exemption is a mistake and don't start monkeying with cost benefit analysis. the chair: the gentleman's time has expired. the question is

a truly wad event led to sarbanes oxley a big overreaction. >> and you will get a big overring. >> inerms of enforcement. >> it will come at a lower level and a lower presumption of guilt. like the duke lacrosse thing as soon as there is an independencecation something bad is happening there will be a presumption of guilt and they will bring the ncaa into the sanctions. >> thank you all. we have to take one more break. [ snoring ] ♪ [ snoring ] [ male announcer ] introducing zzzquil sleep-aid. [ snoring ] [ snoring ] [ male announcer ] it's not for colds, it's not for pain, it's just for sleep. [ snoring ] [ male announcer ] because sleep is a beautiful thing. [ birds chirping ] introducing zzzquil, the non-habit forming sleep-aid from the makers of nyquil. ♪ car insurance companies say they'll save yoby switching, you'd have like, a ton of dollars. but how are they saving you those dollars? a lot of companies might answer "um" or, "no comment." then there's esurance. born online, raised by technology, and majors in efficiency. so whatever they save, you save. hassle, time, paperwork,

jamie dimon has a sarbanes will oxley issue. he signed off on statements saying the management was adequate and corporate governance was adequate, and the unit that reported to him was for from it. >> tom: highly critical and certainly will continue. janet tavakoli with tavakoli finance in chicago. >> susie: be on the lookout for >> susie: be on the lookout for a healthcare rebate check in your mailbox this summer. it's part of a new rule in the "affordable care act" aimed at keeping health insurance companies accountable and premium costs in check. but this year, many insurance companies didn't meet the new standards. so together, they'll be refunding more than $1 billion to their customers. sylvia hall reports. >> reporter: it's called the 80- 20 rule, or the medical loss ratio. the goal: to hold down health insurance costs by controlling the amount of money companies pay for care. insurance companies have to spend at least 80% of customers' premium payments on medical costs, not administrative ones like salaries and investmen

a truly wad event led to sarbanes oxley a big overreaction. >> and you will get a big overring. >> inerms of enforcement. >> it will come at a lower level and a lower presumption of guilt. like the duke lacrosse thing as soon as there is an independencecation something bad is happening there will be a presumption of guilt and they will bring the ncaa into the sanctions. >> thank you all. we have to take one more break. ♪ [ male announcer ] this is our beach. ♪ this is our pool. ♪ our fireworks. ♪ and our slip and slide. you have your idea of summer fun, and we have ours. now during the summer event get an exceptionally engineered mercedes-benz for an exceptional price. but hurry, this offer ends july 31st. i have to know the weather patterns. i upgraded to the new sprint direct connect. so i can get three times the coverage. [ chirp ] [ manager 2 ] it's like working in a giant sandbox with all these huge toys. and with the fastest push-to-talk... i can keep track of them all. [ chirp ] [ chirp ] [ male announcer ] upgrade to the new "done." with access to the fastest push-to-talk and

a truly wad event led to sarbanes oxley a big overreaction. >> and you will get a big overring. >> inerms of enforcement. >> it will come at a lower level and a lower presumption of guilt. like the duke lacrosse thing as soon as there is an independencecation something bad is happening there will be a presumption of guilt and they will bring the ncaa into the sanctions. >> thank you all. we have to take one more break. when we come back, hits and misses of the week. [ music plays, record skips ] hi, i'm new ensure clear. clear, huh? my nutritional standards are high. i'm not juice or fancy water, i'm different. i've got nine grams of protein. twist my lid. that's three times more than me! twenty-one vitamins and minerals and zero fat! hmmm. you'll bring a lot to the party. [ all ] yay! [ female announcer ] new ensure clear. nine grams protein. zero fat. twenty-one vitamins and minerals. in blueberry/pomegranate and peach. refreshing nutrition in charge! his morninstarts with arthritis pain. and two pills. afternoon's overhaul starts with more pain. more pil. triple checking hydraulics

sarbanes. mr.anes: i pledge allegiance to the flag of the united states of america and to the republic for which it stands, one nation under god, indivisible, with liberty and justice for all. the speaker pro tempore: the chair will entertain requests for one-minute speeches. for what purpose does the gentleman from texas rise? mr. burgess: i ask unanimous consent to rise, address the house for one minute, revise and extend my remarks. the speaker pro tempore: without objection, the gentleman is recognized for one minute. mr. burgess: mr. speaker, almost a month after the supreme court has issued its decision on the so-called affordable care act, we have all had time to think and dissect their opinion and start to predict how this landmark ruling will affect each and every one of us. i respect the role of the court, the decision of the justices, but i can't help but tell you i was disappointed the entire law was upheld. i do believe it is detrimental to our nation. it's been a wet blanket on our ec

and that's i think a lot of what sarbanes oxley and 1.6 and 1.13 have revolved around. one thing i think maybe we haven't looked at enough is our role as sort of a moral adviser. if the rules don't permit it or demand it, should we at least be counseling our clients about what is right in trying to be persuasive and influential and that doesn't raise kesconcerns about chilling our communications because we might breach their confidentiality. if you look at how the rules have progressed since 1908 with the canons, our role as the moral adviser and moral compass has been diminished more and more as we move toward a more black letter regulatory code for lawyers. it's left less room for that, and that's sort of one thing i think we can think about. >> jim, do you think it would have made a difference? >> the thing i think is important and that john and i talk about a lot is this whole idea of leverage. because lawyers can and a lot of lawyers do counsel their clients to do the right things, and a lot of times they find their counsel is not being followed. so you have to hav

them and i think this was serious and then in two thousand and two you had another thing which when sarbanes oxley came in in the u.s. it appear that gordon brown and tony blair had a deliberate strategy of what's called a race to the bottom in rate in the regulatory sense i am not trying to there was obviously regulation the world loads and loads of regulation but which whether they were actually applied or not that mattered but that the overall policy was not to properly apply the regulation that existed right now what's interesting in the last couple of weeks is that there's live or a scandal at barclays bank and including other banks around the world is now entered into the bank of england so it's gone into the inner sanctum of the world. central banks over in the u.s. of course there is this audit the fat movement that's been active for quite some time especially that the federal reserve bank of ben bernanke has been committing acts of interest rate manipulation and fraud but now mervyn king is a in this do you think this will have as some are speculating a kind of a ratcheting up of th

everything's proprietary. >> we now find out we don't know what sarbanes-oxley is, do we? is will jpmorgan be able to make the money it used to be able to make going forward. that's a phrase that joe hates. >> as opposed to the must be they make going back but we need to look backwards because we don't know what they made in the first quarter. usually it would be redundant to say going forward but obviously they didn't go forward or backward. >> the key to success in our business is to retire and look ten years younger like john does. >> no, no, no. you don't know about this guy? he's got the secret. it wouldn't even be a year if they clawbacked a week on you, you'd be broke, right? >> smarty pants. >> i know exactly what we're talking about. >> depends on the clawback. >> wow. okay, we're going to -- thank you, steve, for being here and john for being here as well. >> coming up, you'll be back, right? >> always for you, joe. >> thank you. >> i've been called a smarty pants twice. and david fab er er is monitori the conference. >> i think andrew was included in the smarty

are talking about that today because today christine is a very special day it is the birthday of sarbanes oxley that is the day the act was signed ten years ago this was a very large regulation supposed to penalize a fraud with with jail time and that was supposed to be the big penalty but yet we haven't seen it used in the wake of the financial crisis we'll talk about that all right lauren let's to re appreciate that and for our viewers you should stay tuned that's going to do it for us for now but for more on the stories we covered go to youtube dot com slash r t america or our website r t dot com slash usa. news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. during operations around the day. you know how sometimes you see a story and it seems so for lengthly you think you understand it and then you glimpse something else and you hear or see some other part of it and realized everything you thought you knew you don't know i'm tom harvey welcome to the big picture.

repeal dodd-frank, allow small and medium companies to opt out of the sarbanes. a strong balanced budget amendment to get our debt under control. , thank you, ted cruz, we will check with the polls tomorrow and know who will take the republican nomination. >> 99 days down and larry sabato is down to the top five missed number two. [ donovan ] i hit a wall. and i thought "i can't do this, it's just too hard." then there was a moment. when i decided to find a way to keep going. go for olympic gold and go to college too. [ male announcer ] every day we help students earn their bachelor's or master's degree for tomorrow's careers. this is your moment. . of our u.s. olympic team. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance

exculpate themselves from that kind of accountabilities and it's one reason in 2002, congress passed the sarbanesact. >> roberto, hello down there. i wanted to ask you to play referee here a little bit, because there's an article in "fortune" that came out that they're saying it exonerates romney from the suggestion he had day-to-day involvement. what they're saying they have found are offering documents for a bain capital fund from 2000 and from 2001 and show in these documents mitt romney is not listed as "a key investment professional." and this establishes that there was not operational input on romney's part in terms of bain's activities, even if there was a legal and financial relationship still in place. do you think there's anything to that explanation? >> well, somebody who is running a venture capital company may not be making day-to-day decisions as to what portfolio investments that company is going to make. >> especially if the company has a lot of them. those are delegated frequently. >> at least in my experience, it would be unusual for somebody who is 100% owner of a company like

. >> our overwhelming feeling about regulation is sarbanes-oxley. i am happy to pay it as long as we believe it is creating the consumer confidence and the protection that they need. unfortunately tdoesn't appear yet that it's a win/win situation all around. but it's certain -- >> greta: i was going to say, how does it translate tseems annoying, very costly, but how does it translate into someone trying to get a job or you are expanding your business? does it have a direct impact? >> we can't employ another sector. $2 million is a lot of development. >> you have to hire the jobs. that's expenses and that is not improving profits. it's somewhere you can't invest. >> greta: taking a break. help wanted. everyone agrees the u.s. economy needs major help. but no one can agree in washington how to fix it. our business experts have ideas. hear from them, next. ♪ why not make lunch more than just lunch? with two times the points on dining in restaurants, you may find yourself asking why not, a lot. chase sapphire preferred. there's more to enjoy. [ wife ] a

the main thing is the securities and exchange commission, under the sarbanes-oxley law, is allowed to clawback compensation when executives have cooked their books. he was one of the biggest book- cooking cases of all time, fannie mae. they got some money back, but not very much. he was the ceo at the time of the accounting scandal. the united states taxpayers continue to pay the legal bills of franklin and two of his cohorts in their defense against shareholder litigation in the accounting scandal. >> have any of these faults that ran fannie mae ever,ever come public? i cannot see jim johnson anywhere. he is certainly still involved in businesses, is part of the perseus corporation. >> a private equity business. >> as he or anybody else gone public with this? >> franklin has started to come out and talk about how he was -- he was on a panel if he months ago here in washington. jim johnson is keeping a low profile, but he is on the boards of goldman sacks and target. he is the committee chair of compensation for both companies. a prominent and prestigious shareholder of goldman sachs

have we gotten everything we deserve from sarbanes-oxley?g my money do more. ♪ i'm consolidating my assets. i'm not paying hidden fees or high commissions. i'm making the most of my money. and seven-dollar trades are just the start. i'm with scottrade. i'm with scottrade. i'm with scottrade. and i'm loving every minute of it. [ rodger riney ] at scottrade, we give you commission-free etfs, no-fee iras and more. come see why more investors are saying... cottrade. reporting lower than expected fourth quarter sales. she joins us now on the cnbc news line. in terms of the quarter how much of this is a coach specific problem and how much is because of what is going on with the u.s. consumer. >> coach blamed the entire miss on inopportune timing of taking away coupons from factory outlet stores but said traffic at the factory outlet stores was weaker. >> did coach also miss an opportunity in terms of its design? there was a big article citing bringing back the iconic designs. have they missed the boat when it comes to the designs of their hand bag

professor, i am sure you are familiar with sarbanes oxley. section 404b has resulted in costing 20 times more in reality than it of original estimates. you seemed to argue in your testimony that we should not worry because we have not seen the full facts of dodd-frank. but doesn't the experience that we have had with sarbanes oxley suggest this is exactly the time to be concerned? >> you are asking, looking back 404, i am not sure about the 20x figure you cited, whether we should use that as a basis to assume the regulation might cost more than the evidence gives us the lead to do? is that the question you're asking? >> i am asking if you are not as protecting wrong and not realizing that sometimes these over regulations seem to paint everyone with one broad brush, a very counterproductive. let me go on because i am limited time. mr. purcell, we hear a lot about how many government bureaucrats to protect american citizens from their own detriment. this was a large part of the argument behind the creation of the cfpb. i was in community bankin

i ask because earlier we spoke with michael oxley about sarbanes-oxley, he said if he could he'd setregulation, one for big and one for small. is there any you could tweak if you could? >> fannie and freddie and the gses and we debated and discussed it at length. judd gregg said not for lack of trying but there wasn't a solution people were willing to gather round and how you deal with the government-sponsored enterprises. i have my own views on it but it's an area that still needs to be done. bankruptcy laws need to be dealt with in a way our bankruptcy laws deal with one-offs, not highly interconnected industries so we've done a good job in creating a structure so you don't have the bailouts we're fearful of having or had in the past and that requires some additional work as well and i think you need to determine how some of these things are working down the road. that's the reason that you want to get moving on this, not do it so fast you rush to get the job done. you want to make sure the regulations make some sense and then give this a chance to see how it's doing its job and if