an interview with mary schapiro >>> later, everything is all right up on the roof. the rise of urban farming. local produce grown high in the sky. >>> look at how the stock market ended the week. pa back in a moment. [ engine revving ] ♪ [ male announcer ] every car we build must make adrenaline pump and pulses quicken. ♪ to help you not just to stay alive... but feel alive. the new c class is no exception. it's a mercedes-benz through and through. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship. together for your future. ♪ >>> is your money safe? a question top of mind for almost every investor out there today. can the agency charged with watching the market keep up with faster

chairman mary schapiro had already proposed rule changes before may 6th that would allow regulators to track and tag high-frequency traders, and she is now considering further measures. are you comfortable with computers making, you know, 50% to 70% of the trades on wall street? >> one of the concerns is, if one goes wrong, if it operates in an unexpected way, given market conditions, what's the impact of that algorithm that has behaved in an unexpected way on lots of other investors in the marketplace? >> and chairman schapiro says it's happened since the may 6th crash after circuit breakers were put in place that automatically halt trading in a stock that moves more than 10% in a five-minute period. >> a number of times that those circuit breakers have been triggered has been because an algorithm operated in a way nobody intended for it to do, causing a stock price to go wildly out of range. >> the crash contributed to

liz: mary schapiro, the security and exchange commission, with us from the cftc, and algorithms. let me get to the nymex. is that what's your assessment is of what happened and keeping it current what the you think of the action today? >> it is a move on low-volume, being an algorithm there's a lot here. computers doing the trading and not much thought goes into it. it is on its own and a jewish holiday yesterday, low volume and big moves. liz: i don't know about you. and those working on the second day, let's bring --

my conversation with mary schapiro . >>> plus, it's a dirty business but somebody has to do it. why urban farming is looking up. the "wall street journal" report begins right now. sheerz here's a look at what is making news. more encouraging news about a turn arounden in the housing sector. existing home sales jumped nearly 8% last month to a seasonally adjusted rate of 4.82 million homes well above expectations. housing starts up as well, increasing 2.3% in august. slightly below expectations but single-family home starts reached the highest level since april of 2010. the dow industrials continued the streak of monday blues this week and it was flat midweek taking a breath after reaching highs last week. the markets were mixed on friday. the fedex and oracle reported earnings this week. fedex beat lowered expectation

and the biggest concern of chairman schapiro and senator kaufman is that average investors have lost in the integrity of the system. is that correct? >> yes, that's true or correct. and i'll give you an example. when i was at wharton, a professor came to me and said, "you know, there's a river of wealth that runs through this country. just a very small number of people know that it exists. some people can stand on a high hill and see it off in the distance, some people can get up to the edge, and there's other people that are swimming in it." that's the perception american people have about what's going on on wall street right now. they believe there's a small number of people who are swimming in this river of wealth. >> there are a lot of people out there who think that the stock market is rigged, rigged in the sense that there are people out there who have advantages: the insiders, the big companies. >> yup. and i think that we have to do a better job of, first, obviously making sure it's not the case. but we can't be evasive about it. we have to make changes that make sense, that

liz: mary schapiro, the security and exchange commission, with us from the cftc, and algorithms. let me get to the nymex. is that what's your assessment is of what happened and keeping it current what the you think of the action today? >> it is a move on low-volume, being an algorithm there's a lot here. computers doing the trading and not much thought goes into it. it is on its own and a jewish holiday yesterday, low volume and big moves. liz: i don't know about you. and those working on the second day, let's bring -- [talking over each other] and the volume is important to point out. what is going on with the market's? and we will get to that later what about this moment? >> what the market bounced against the resistance level and starting to tire out. moving sideways for another direction. to make the viewers understand the idea of algorithm trading, everybody's right. you have commentary out of opec, it started in the brent market, and the commentary supposedly a rumor from obama and that gets carried and computers that can read 250,000 words a second. they started to break d

this weekend's edition of ""the wall street journal" report" i had a chance to sit down with mary schapirocontroversial talk of high frequency trading. >> the high frequency traders, the dark pools, have an unfair advantage. how do you get the law of the land even so everyone is following the same rules and some fast traders aren't able to put their bids in sooner than others so they're getting a better price and beating the individual out there? >> you know, it's so important that investors understand that they -- and that the markets provide a fair opportunity for everybody to participate. there is more work to do in this area, to ensure that those with access to technology don't have an unfair advantage and that all customers' order have an equal opportunity to benefit in the marketplace. >> let's bring in our guest for their reaction and more with us today, richard bernstein, cnbc contributor, and harry heartford from causeway capital management. harry, let me begin with you. how much, if at all, do you think that the high frequency trading undermines the individual investor's confiden

i believe mary schapiro has been trying to change that.department of justice is changing that. but there's been a culture of very weak enforcement. it's like if someone robbed an snl, took $1,000, they could settle for $25 and no admission of wrongdoing. you tell me. if they could do that, would they do it again? we've seen that time and time again in the financial industry. maria, today when we read the business section, it almost reads like a wrap sheet. you have money laundering by ing direct and standard charter bank. you have bid rigging by a bunch of banks like wells and ubs and jpmorgan that rob communities of millions of dollars. you have the libor scandal. it just goes on and on. i think we have to -- for the protection of all the good people in the financial industry and the integrity of our markets, we need much more vigorous enforcement. >> so what do you think the impact of these prosecutions, you know, prosecuting wall street executives, what would be the impact on the market in your view? >> i think positive. if you send out

we have news on mary schapiro. we was an exclusive. charlie, what's going on?> apparently, sources close tell the fox business network she was hospitalized last week for a medical procedure late last week. the rumor mill built when she missed an internal hearing and meeting, but hospitalized for what is describeed to us as a medical procedure. we don't know what it is. i pushed the fcc spokesman on what that means, does it mean surgery, he won't go there. here's what they won't -- here's what they will talk about. they will say that, you know, the speculation, and this also came as there was immense speculation that she is stepping down imminently, i think a lot of people on wall street would like to have that happen yesterday, and he denies she has plans to step down. i raised the question whether she may step down depending on who is elected after this year's up, and remember, the fcc chairperson is a presidential appointee, even if president obama is re-elected, and he came back saying she has no plans of stepping down. she's due back in the office wednesday

. >> dana adams schapiro is the author of "you can be ride or you can be married." good morning. >> dana, let me start with you with that title, "you can be right or you can be married" it's provocative at the very least. what do you mean by it? >> it's a piece of advice given to me by someone i interviewed who came appropriately from her stepmother who was trying to tell her how to fight fairly and protectively in your marriage. she said if you fight to be right, if you fight to win, then there's a loser or there is somebody who is going to be not part of the union. you should never prioritize the individual over the union. it's really just teaching us how to be fair and how to keep the eye on mutual agreement. >> there's a lot of good takeaway in the book. because as you say, sometimes committees may come from learning from our failures. that's exactly what you found. by interviewing hundreds of men and women and their stories about divorce, some salacious details, including the secret affairs of one woman at the waldorf astoria to the cross dressing husband, what