sec history.ormally those are measured in millions. these settlements were over $55 billion, money returned to investors in the form of settlements and that is to this day the record for the sec and it was a very significant real-time action that the sec took for the profession -- my protection of bank's. >> taking back of the securities by the underwriting, i understand that and that was good but the mortgages themselves come the residential securities that were created from these loans which you characterize as becoming later worthless or near worthless, it seems to me those proliferated during many years. without anybody effectively acting against them and i'm not going to just point to you. i think the private sector people who originated them also had responsibility for them. >> i think we are coming to an agreement here because it wasn't obviously securities fraud that cost all of this and to the extent that these were securitized, the disclosure system didn't work. it wasn't sufficiently tr

their -- the sec's top staff. it had been developed by rules adopted unanimously by all the commissioners. when i became commissioner, i was in this room for my confirmation hearing sitting next to the director of the division of market regulation, eric's predecessor. she was extending these. we had all these people who offered this. all these people seem to be connected to harvard university. >> wasn't as robust as you wanted it to be or as robust as it could be under your structure? -- was eight as your boss? >> all the people briefing me on this were the architects of the program. it represented the agency's best of the time. i had no reason out of the box -- >> let me say, mr. cox, i know you outside of that environment. if someone told you that was how the world was coming you would not necessarily accept that. >> i am made of the critical. when i went to the sec, i had a lot to learn all at once. this is one of those things i was briefed about during the transition. chairman donaldson and i spoke about this

how'd the sec do? sh. >> we did have a weakness. and the process by which we looked at our own controls and the gao looking at that has actually caused an increase in our internal focus on financial reporting. >> yeah, so we're asking this little company to try to meet some standards that the sec can't meet. nowof course, the difference is the sec gets all the money they need, basically, to do so, and this little company here is just i don't want to say they're holding on, that'd make them sound they're not doing well. i think they are doing okay. so you can see how the ceo of a company like this might say, hey, that doesn't seem right. the sec can't even meet its standards, and yet they're coming and saying we're supposed to meet a standard that they can't even meet. can you see the problem that i have in discussions with folks like that? >> yeah. the standard, i guess, itself is an opinion on controls same as the opinion -- taking a self-look at controls the sec internally reported a material weakness as the gao agreed, so it's th

confidence in government generally and the sec specifically was badly shaken. thanks to the song support this -- the strong support this subcommittee has provided, we have made significant changes to virtually every aspect of our operation. we brought in new leadership, streamlined procedures, and reformed operations. we employ new technologies and initiated a significant investor focus rulemaking agenda. we undertook a top to bottom review leading to a restructuring. things limiting internal communication were torn down. a layer of management was eliminated, freeing professionals for front-line duty. we created specialized units that will build a focus to market abuse and structured products. these efforts are paying dividends. thanks to the support of this committee, among the highlights of my first year, we sought twice as many temporary restraining orders and asset freezes in 2009 as 2008. we issued over twice as many orders of investigation. we won $500 million more in disgorgement orders. penalty orders more than doubled. we filed an% more assets overall,

we welcome the sec's review of these events. we need to examine the ripple of fact that stock volatility in the etf market and make sure these are considered in circuit breaker considerations. we are pleased with the recently announced the adoption of market wide stock level lrp's. we will review the need for functioning lrp's once the circuit breakers are implemented. circuit breakers install rod blagojevich is based on a 20%- 30% -- circuit prison -- circuit breakers installed long ago are based on a 20%-30% move in the market. i would submit that the need to cancel trade is a son of a market structure that does not function properly. since 2008, hundreds of thousands of trades have been cancelled from electronic exchanges with stocks trading down to a penny in the fourth quarter of 2008. it is time to put a stop to that. we should review the order routing practices. there are things we can do to protect investors by being harmed by a volatile market. we want to facilitate an audit trail allow regulators to review marketwide t

how'd the sec do? sh. >> we did have a weakness.nd the process by which we looked at our own controls and the gao looking at that has actually caused an increase in our internal focus on financial reporting. >> yeah, so we're asking this littlecompany to try to meet some standards that the sec can't meet. now, of course, the difference is the sec gets all the ney they need, basically, to do so, and this little company here is just i don't want to say they're holding on, that'd make them sou they're not doing well. i think they are doing okay. so you can see how the ceo of a company like this might say, hey, that doesn't seem right. the sec can't even meet its standards, and yet they're coming and saying we're supposed to meet a standard that thy can't even meet. can you see the problem that i have in discussions with folks like that? >> yeah. the standard, i guess, itself is an opinion on controls same as the opinion -- taking a self-look at cotrols the sec internally reported a material weakness as the gao agreed, so it's the same

response of the sec supports the recommendation to update market circuit breakers. the circuit breakers should automatically halts trading of all stocks in all stages. we expect the chairman shapiro will have to announce this about what those will look like at the end. and single stock trading, the consistency across the markets. initiation by the primary market and orderly resumption of trading by the primary market. any rules unrecognized the stock in different ways. and other regulatory actions should not be for used for a primary market place for any competitive reason or disadvantage any national market system participant. thank you again for the opportunity to share our views and i am happy to respond to any questions. >> the gentlelady from illinois. >> i would like to welcome my constituent, mr. duffy, for joining us today. he is the executive chairman of the c m e group. i thank him for sharing his expertise. >> thank you. members of the subcommittee, i am terry duffy, executive chairman and thank you for allowing me to testify today. futures markets are le

any e-mail or sec filing. thus it would be covered by at least one and probably several of the existing federal criminal statutes. if this statement is not material or the intent not willful it is not evident the conduct can or should be considered criminal. another point that i'd like to make is that a statute that criminalizes the breach of fiduciary duties could be struck down by the court as impermissibly vague. increase into the existence and scope of fiduciary duty can be a highly specific project. if fiduciary duties are imported their vagueness may take on constitutional significance. the supreme court is currently considering this issue in three cases involving the so-called services stat sheet statute wits mail. instead to the sum of criticizes as everything from defrauding a client to an employee calling in sick. breaching fiduciary duty. would it be a federal crime for a broker to fail to read diligently in a prospectus or call a client daily about the market? would every breach of the duty of care

in closing we applaud the sec and the cftc for working together to review the defense of may 6th and develop aclosing, coordinated response. and t nyse are committed to maintain ongoing productive dialogue with these agencies and other trading venues. once again, thank you for the opportunity to appear and later on i will be happy to answer prv questions youe might have. tr >> thank you, mr. leibowitz. tor now we will hear from eric nollb executive vice president at ther nas-daq of services. >> good afternoon chairmant, mr. orski and members of the subcommittee for letting me speak to you today. we meet delete comet yesterday along with fellow exchange's chairman schapiro to develop the fellow car to the princeton and investors in the wake of last thursday. jointly to assess and implement changes to enhance the marketability to handlethury onusual trading events in thelyt future. assess the market for strong despite the 17 minutes of unusual trading occurred may 5th.future fight the market's rapid recoveryng desp during the peakc resilience of strength. to understand fully you have t

it has resulted in a the most open and transparent process i have seen in my nine years at the sec.e had many workshops and hearings, thousands of pages of records, so it was really well done. the chairman had lots of folks within the fcc to really focus on this infrastructure challenge. i think it was comprehensive. it is not exactly the plan i would have written or any other commissioner would have written, but it was something i have been waiting for for nine years. you will recall that i have asked before, why do we not have a national broadband strategy? let's get in the game. let's do what every other industrial country on the face of this green earth does, and that is have a broad band planted -- broadband plan. finally, we got an administration and a congress that agreed that this was integral to our future. it was really a music to my ears when they said, have the fcc to do it. we have a long way to go, and there are lots of t's still to cross before we get ubiquity out there. there may be variations along the way. some things people think will work will not end up working,

hedge funds will have to register with the sec which gives the sec a little bit more power to regulate them, not a lot. and most importantly is the ability of the government to what they call resolve, that means close down failing institutions like lehman brothers which they didn't really have all that much control over before because it wasn't a bank, to close them down, the way the fdic can close down a bank. >> rose: so how is wall street reacting to this. >> not well. >> well, you know, let me just say that wall street is putting on a little show here. they're making it seem like oh, god this is terrible. we don't like that stuff about derivatives. we don't like that stuff about directors. we don't like that stuff about the rating agencies which they are now perhaps going to change the structure of how rating agencies are paid. they claim they don't like the so-called volker rule which will make them give up their hedge funds and what you have. the truth is the big banks are thrilled about this. it could have been a lot worse for them. and behind closed doors i think they're poppin

and we don't know if the sec fraud case will amount to a hill of beans, matt. what is the bill of indictment against mr. blankfein really? >> i agree with your point here that i think it's premature to ask him to resign right now considering we're very early in this allegation phase with the sec. the sec has a very poor track record of prosecuting these cases like with bear stearns. if you look at in firms of leadership he still has the support of his shareholders and also has the support of his employees. he's done a very positive job since ceo for the total return of his stocks since he became ceo in may of '06. the s&p financials are down 37%. i think here what could happen is he could actually come out better than expected if he executes a deal that is the benefit to goldman sachs and he settles for less than expected and he could be in a position where he comes out as a strong leader. bottom line, it's premature. >> i'll play devil's advocate here that he allowed his firm's name to really be just taken right through the mud. >> there's rrb no question the

. -- chairman cox of the sec. i was surprised to learn that bear stearns was silence -- and solvent at the time it was rescued. and had not become insolvent according to chairman cox and the former officers of the company. the first question i would like to ask you is whether you were aware that bear stearns was, in fact, a solvent company? i understand there was a liquidity problem, but you -- but were you aware when you got them to be dealing that you were dealing with a solvent company? >> i think that is a ridiculous statement. we were told on thursday night that bear stearns was going to file for record 85 out -- friday morning if we did not act. how does a solvent with -- so the company filed for bankruptcy? when financial institutions die, they die quickly. but it is a liquidity crisis. the market loses confidence. when they die, i do not care what someone has on their books, okay? assets are not worth more. make no mistake about this may go we were told that the jig was up. at the time, we almost found out

at the end of this month, the sec is expected yo approve a new circuit breaker for single stocks. under the new rule, if a single stock in the s&p 500 index drops 10% or more within 5 minutes - trading will be halted for 5 minutes. that's across all exchanges. after a trial period, the s-e-c may decide to expand that rule to all market indexes. from the drop in the euro to banks' toxic assets. we're answering viewer's questions in today's viewer mail segment. but first, one money manager tells where he's finding opportunity in today's market. that's coming up next. woman on p.a.: cassandra mirasson. [radio transmissions] woman on p.a.: stephanie mccapra... man: excuse me. have a seat. have a seat. i'm fine. woman: take off your jacket, all right? sir! sir, relax. breathe easy. man: stay down. everybody, stand clear. ma'am, i need you to back up, ok? thank you. announcer: two out of three people with diabetes die of heart attack or stroke. we're gonna have to shock him. everybody stand clear. [music plays on soundtrack] [silence] [music plays on soundtrack] announcer: that was his

we reported earlier about the steps that the sec is taking. explain this new circuit breaker idea for us and how is that intended to stop something like that from happening. >> well, it is not a new idea. germany has been doing this for over a decade. the idea is pretty simple. you have the computer monster-- monitor stock prices in realtime and when a stock jumps too far too fast, 10% in five minutes, the computer will call a pause and then that gives the humans time to look and see what's happening. make sure all the circuits are working, and restart trading using the normal procedure we use every morning to reopen trading. >> brown: and then we were just-- nick perna was just talking about the high frequency trading. that's something we've heard a lot about since that happened. and the shadow markets beyond the ones we talk about, for example, the new york stock exchange. how would all that be affected by these new rules? >> well, i think the market will be a lot more stable as a result. because one of the problems we saw on tornado thursda

-- chairman cox of the sec. i was surprised to learn that bear stearns was actually solvent at the time that it was rescued. it had not actually become insolvent according to the former officers of the company and chairman cox. the first question i would like to ask you is whether you were aware that bear stearns was a solvent company. i understand there was a liquidity problem but were you aware that when you had bear stearns to be rescued that they were solvent? >> i think that is almost a ridiculous statement. we were told thursday night that bear stearns was going to file for bankruptcy friday morning if we did not act. how does a solvent company filed for bankruptcy? when institutions, financial institutions die, they die quickly. it is a liquidity crisis. they died because the market -- because of the market. when they die, i don't care what someone has on their books the assets were not worth more than liabilities. we were told there were filing for bankruptcy to more morning -- tomorrow morning. we almos

dark pools -- sec, nasdaq, we have registered market makers. little bit of the human element. we get to the dark pools and you do not. this is a potential for problems. by nature they are dark. someone can hide what they are doing and not reveal to the market that they are making a large purchase. i understand that. it may also create problems we do not know about. does what happened in the last couple of weeks make you feel that we should be examined what is happening in dark pools as well? >> absolutely. we proposed requiring that dark pools make their orders available for the public said that we do not end up -- >> when? when do they have to make their orders available publicly? >> our proposal would have them display quotations broadly, not just to a select group of participants like they do now. the goal is to not allow the two-tiered market to continue to develop where participants get access to " that the general public does not have access to -- quotes that the general public does not have access to. there are very large blocks where th

>> at that time when i was on wall street i did and i thought that the people we worked with the sec were in the highest quality. and when i was in government working with them i thought that they were just some very strong professionals and working very hard and very diligently. so, it was -- i look at it from that perspective and then i simply say if i get up to 100,000 feet in looking at it i just say we all made mistakes. when you get there are regulatory mistakes over periods of time and clearly from the bankers and the investors and all of the different participants, but i never doubted for a minute that the competence and the professionalism of the regulators and the sec who just in a very short time -- remember, this program for the council debate obligatory program had just recently evolved and then we had the tsunami. >> do you think that going forward it is important to try to eliminate regulatory gaps like those for the shettle banking? >> here's what i think, i think these big complex financial institutions need to have a sort of uniform approach in having a tough consis

we understand the sec is developing such a proposal and we are committed to assisting in the effort. these and other important actions may best be achieved by consolidating market surveillance in one securities regulator, probably finra, which would require an act of congress. we also at the same time need to ensure both finra and the sec have the full funding required to perform these duties. finally, the sec should continue its broad based market review to help find ways to improve our current market structure. in closing, we applaud the sec and cftc for working together to review the ents of may 6th and coordinate a response. we are committed to maintaining our ongoing productive dialogue with these agent sis and other trading venues. once again, thank you for the opportunity to appear. later on i'll be happy to answer any questions you might have. >> thank you, mr. leibovitz. now we'll hear from mr. eric noel, executive vice president, nasdaq transaction services. mr. noel. >> good afternoon. thank you for letting me speak to you today. we met yesterday along with our fellow exch

t >> caller: yes, the professor is right on this whole thing in the banking system and the sec. my question is to parts and i will make it quick. first of all did he know or hasm he known of a person who in th's 1990's was in charge of thedirer commodities a huge director oftk the commodity futures and she had talked about the black box derivatives. retedsue is that it's not how and when but derivatives shouldr be regulated but the derivatives should never exist. we should produce things instead of ideas and thoughts on this piece of mortgage-backed security versus this piece. sen. derivatives make no sense. there are estimates over 50 trillion backed by very little. if you could talk to that i would appreciate it. thanks. >> the listener is correct but proxy war in the chair of the cftc at the time wanted to regulate derivatives very aggressively and said how dangerous they were and unfortunately, she was essentially over written by then secretary summers and thennd chr chairman greenspan and the sederal reserve. thi she is one of the heroes of thie particular story because i t

they concluded the sec was shot by a north korean torpedo -- the ship was sunk by a north korean torpedo. military retaliation was never an option for the government because of the obvious risk, but the response it has decided on, will have an impact. trade between the two halves still makes up a sizable chunk of north korea's economy. speaking on a visit to beijing, hillary clinton said america is standing behind its south korean allies. >> our support for south korea's defense is unequivocal. president obama directed his military commanders to coordinate with their korean counterparts to ensure readiness and deter future aggression. >> the evidence of the involvement in the sinking of this ship will be taken to the un security council. america and south korea are looking for china's backing for tough action. >> good to have you with us. still to come, why thousands of people will descend on london for the chelsea flower show. japan is known for its high- speed trains but one of the most spectacular as a top speed of only 20 kilometers per hour. >> it may be slow compared to the bullet

yesterday we had testimony from former chairmen, sec chairman cox who said something to the effect thatonest lending practices have been told, much of this crisis quiz and they would not have occurred. the nearly complete collapse of london theaters by banks and other originators that to the creationists a much worthless or near worthless mortgage paper that as of september 2008 banks have reported over one half trillion dollars in losses under u.s. subprime mortgages and related exposure. and the creation of those -- of those mortgages was exacerbated by then turning those residential mortgage-backed securities into collateralized debt obligations in a process that at the last hearing i like into something like medieval alchemy, where you took this low rated tranche, the triple be related tranche of the mortgage-backed security, 93% of the tranches were higher-rated. this was the bottom 5% of the 7%. there was 2% of equity below. and then you took that tranche, low rated from a whole bunch of mortgage-backed securities and created something called the collateralized debt obligation, so

and i thought that the people we worked with at the sec were the highest-quality. i was in government and working with them, i thought there was just some very, very strong professionals they are and working very hard and very diligently. so i look at it from that than i just simply say, if i get up to 100,000 feet and look at it, i just say we all made mistakes. you know, when you look at the regulatory mistakes over a period of time and clearly from the bankers and investors in on the different participants. but i never doubted for a minute that competence and professionalism of the regulators at the sec who are just in a very short time -- remember this program for the consolidated regulatory program had just recently volts. and then we had this not me. >> do you think that going forward it's important to try to eliminate regulatory gaps like those for the shadow banking? >> well, here's what i think going forward. i think that these are complex financial institutions, they need to have sorted the uniformity of approach and having tough, consistent regulation wi

. >> i agree with the former sec chairman in general. i think there is -- i agree with the former fcc chairman in general. there is a convergence towards the internet as people get superfast fiber to the homes. what is important about broadcasting is ultimately the content, including local content. it is not so much the tran

when the sec changed rules for the markets about 40 years ago, they basically did away with mandatory specialist and market makers. people who had to be there all the time. so now you have voluntary liquidity. people are there when it's fun to be there and when it's not fun to be there, they're not. they know how to go away. now, shakers of c m e group, for instance rallied on friday off of news on this bill. because the derivatives market is definitely going to change. isn't that a good thing, putting some restraints on the over- the-counter trading that was going on there really cause a lot of the problem that we're in today? yeah, it's to the extent that it does do that, it will be in affect. because they have the clearing corporation that's going to clear most of these things. the problem that you have is the most of the transactions that created this problem took place in london. what do you mean? ok, very true there. what about the consumer protection laws. those have to be a good thing for people, stopping people from getting ripped off from mortgage companies and credit-card c

anyone who looks at it closely will admit that the fed, occ, sec, and to some degree that fdic were all lax in the area of over said. no question. coming out of this crisis, you not see that type of event happen again in the foreseeable future. the regulators understanding made big mistakes. moving the banks around for the sake of moving, i never saw that as constructive. it would only have disrupted things. most of your financial institutions are affected. we're talking about small, main street, regional banks. most would rather have the fed doing their audits and being there oversight then moving to a brand new agency. having to bring the agency up to speed on their activities. most of those billings were not the cause, were not affected, and were not the engine behind that economic crisis. that economic crisis. they do not deserve to have to go through this huge relocation simply because we're trying to make a public statement. online, i think the idea of taking all this authority from the fed was not good. i did not support from the beginning. >> we have about 10 minutes left. for v

the sec requirement is that while the speaker has great power and great authority,ut when the house is in turmoil or threatening to descend into turmoil, he must use not only his power with flexibility, but on occasion with humor as well in order to reduce the temperature that might otherwise arise. the greatest exponent that -- of that was speaker george thomas, and i remember one glorious evening when there was a real disruption in the house. hottest nationalist member was speaking -- the member in question was speaking with a very strong scottish accent and was speaking very fast, and me honorable members from south of the border could not entirely follow what was being said. an english labour got up on a point of order and said we cannot understand a word that is being said. may please have simultaneous translation? there was immediate turmoil in the house and speaker thomas, known as one who spoke with a great welsh lilt, said, order, order. there are many accents in this place. i sometimes wish i had one myself. [laughter] and immediately the trauma was over. i believe the right

will admit, and i think anyone who looks closely will admit, the federal reserve was lax as was the sec, the occ, and to some degree the fdic. no question about it. i believe coming out of this crisis you will not see that type of event occur again, at least in the foreseeable future in the memory of the people who participated in it, because they understand they made big mistakes. moving these banks around for the sake of moving them around, i never saw that as being constructive. i did it would have disrupted things for a while. -- i think it would have disrupted things. we are talking about small banks, regional banks. most of them would rather have the fed doing their audits and being there oversight than moving to a brand new agency and having to bring the agency up to speed on the activities they are involved in. most of those were not affected or were the engine behind the economic crisis we had. they do not deserve to have to go through this huge relocation simpson because we are trying to make a statement to the public for reorganization. the bottom line is i think the idea of

they're regulated tightly by the sec.here should be systemic risk resolution regulation and the wind up a 44 the holding company. if you push this into the holding company, it is not unregulated but it is not the most intense since the network where you can collect deposits and use them. host: dimon has said if this were to go through that it would cost some of these firms how much? billions? guest: i am not saying that jpmorgan cannot do derivatives. i am saying they cannot do it within the bank. if they want to do it within the securities affiliate, that is finding go if they take $100 billion -- that is fine. if they take $100 billion, i am not opposed. who among us thinks the banks had it too much capital? i think that is a sign of how capital short they were and how much they were using the safety net. if they said, look, we require $100 billion or more in capital. that is the market determination that this should not be done. otherwise, it is being done by the tax payers, not by the banks. i realize there would be a

> at the time, i did it when i was on wall street and the people that we were working with with the sec were of higher quality. and in government. i think that there are some strong professionals who were working very hard, and very diligently. and i look at it from this perspective. and i simply say, if i get up to 100,000 feet, we all make mistakes. if you look at the regulatory mistakes, clearly, from the bankers and the investors in the difference participants, i never doubted the confidence and the professionalism, that the regulators at the sec, who had just -- -- they had just recently evolved. and then we have this -- this tsunami. >> do you believe that going forward, we should try to eliminate problems with the regulation? >> this is what i believe, going forward. i think that these complex financial institutions need to have a uniform approach. they need to have tough, consistent regulation. this is without being able to find nicks and crannies. and in terms of shadow banking, -- a big reason that i recommended this concept was that somebody needs to have the authority, and t

there is a press release that the sec sent out on april 16th. if you will answer, i would like to get a feel for, you know, what you think really happened. i guess i would like to give you a chance to explain some of this. goldman sacks failed to appear -- fail to disclose to investors the role that a major hedge fund played in the portfolio selection process, and the fact that the hedge fund had taken a short position against the cdo. is it true that you failed to disclose that? >> again, i was not there, but i think our person maintained that he believed that they did know. look, for some of these things, you have to give me license in the sense that i was not there. i think there were a lot of elements of the transaction and reputations and things that suggest that they should know, and must have known. there are also a lot of opinions floating out in which some people say they did know. that is not a question of not wanting to tell you. i know one of the contested facts in the case is whether this election agent knew or did not know. >> let

the sec failed at its job. and it allowed the risk-taking the leverage against these type of securities and others to accumulate from 2004 when they changed the rules to allow that to happen. when you change your rules to allow something to get more risky and then you don't watch it as it becomes more risky, that's a failure on the part of the regulatory body. so they contribute to their own failure but then they fail in executing their defense against what they contribute to it. it's a bad cycle. >> and you call -- you say that the repeal of glass-steagall was one of the biggest mistakes ever made. why? >> because it allowed banks to both have the benefit of having fdic backing and to have their deposits backed and to have that capital assurance, that cushion, in order to go off into other areas and bet more. and what was happening -- i should talk about in my first book "other people's money," it's really big competitiveness within the banking industry. there was banks like jason morgan chase and citigroup, b

is the ability to do. >> what about self funding for the sec? >> what i am hoping it's worked out, this will be with their greater participation, is a way to do some self funding which leaves the appropriations committee with the role. if you look at the performance -- it is what i think about separating the ceo from the chairman of the board. people say that is very important, but my guess is it to draw up a list of major companies and did not tell people which was which, there would be no way to differentiate by any kind of results analysis. the appropriators are going to push hard to maintain some role, and i think that will be successful. >> can you talk about how derivatives oversight might play out? >> paul volcker rule is very important in this sense. does not distinguish between derivatives and independence. derivatives are a great example of a phenomenon that has grown up with no regulation. there was an effort to get them regulated, and it failed. they were never deregulated. that proliferated and have grown beyond their original use.

. >> sec spector who once led the liberal sestak by 20 points is only up by 11. >> came in got up at 11:30 or 12 started the next event at 7:30 drove from this area all of the way to erie for a 7 hour event up there. left there got back here 4:00 a.m. got up 3 hours later for 8:00 and continued got in last night at 2:30 a.m. this morning we went out i think our first meeting was at 8:00. we do a lot of traveling. >> it seems to be working. succe sestak keeps closing in by the day while the punches -- >> what they want to sees someone out there who is willing to say principle matters more than my job. >> and counter punches. >> he has the worst attendance record of anybody in the pennsylvania delegation. ought not be asking for a promotion he ought to be subject for court-martial. >> he said you ought to be court-martialed. >> that's silly. he wants to talk about personally let him. >> the pennsylvania senate race abo will get nastier. next harry reid the top democrat on the ropes. ♪ ♪ ♪ [ male announcer ] try fixodent with a time-released formula. use just once per day for all-day ho

>> two parts tequila to one part triple sec. which is the orange liqueur.to tequila and the other half fresh lime juice. >> that's all you need? >> i don't see a blender. >> i'm going to put mine on the rocks with some salt. we're just going to stir this up. >> someone who can actually drink this come in here, please? >> oh, harry smith. >> i can't do it. >> i'll get here as quickly as possible. >> you pour it over the ice. >> you all let me know how that tastes. >> in a few months come back, bobby. >> okay, no problem. >> thank you so much, bobby flay. like my mom says. for these recipes go to our website, earlyshow.cbsnews.com. be right back. you're watching "the early show" on cbs. ♪ [ male announcer ] we make them beautiful. ♪ we make them tougher. ♪ we make them legendary. we make them better... ♪ to make your life better. ♪ and we've never made one... quite like this. the 100% electric nissan leaf. ♪ >>> this mole is crazy, crazy, crazy good. >> it is. >> you can make that at home, harry. >> you think? >> definitely. >> that's it. >> lots of different

being and kept advancing further westward and made possible the egalitarian energy and hopeful the sec could not have existed even in america bacchae sell abraham lincoln that was completely unknown teaching myself math lincoln and injured jackson came from complete property had minimal the gold training and deduct audience of the history that is what tocqueville was perceiving would be possible. the trip continue to have the romantic aspects. they traveled mostly on steamboat's. the highways were hopeless. the water raise is how you moved about the country. they were thrilling because it was the most brutal winter in 50 years unfortunately and ohio froze solid just before they were shipwrecked and they thought they would drowned they shook hands and said farewell and then it landed on a rock so they said you better get two the mississippi to go to and negative go and it was up through their waste tocqueville got a terrible fever they had to spend one week in a log cabin and finally got to memphis, tennessee was still frozen and to spend one week shootings parakeets now that is probabl

we have had our sec year of furloughs. >> reporter: to avoid taxes, many raise fees.ng power consumption and cell phone fees this week. >> typical montgomery county taxpayer will face a higher rate on their phone bill than their 1040 income tax return. something is out of whack. >> reporter: they give montgomery county credit for reducing school spending but claims still -- >> pg and montgomery county are continually vying with each other for the top spot as the worst tax jurisdiction in the whole dc area. they beat out fairfax, arlington, the district, alexandria in virtually every category of tax. >> reporter: and businesses like j.d. towing struggle. >> hard to have decent guys and i would like to keep them on but it is increasingly more difficult to do so. >> reporter: he says real savings come by auditing big ticket items like infrastructure projects but elected officials know making those type of moves can cost them their jobs. >>> comic book heros are no match for a big green ogre. that's coming up in entertainment news. >>> the nationals mourn the sudden loss

his friend had become very involved in the sec retailer run. -- in the saturday taylor run -- in the zachary taylor run. taylor was 8 whig because he hated james polk. he becomes a whig by default. he was a louisiana citizen. when he came back in, he wanted to be president as a vindication. played did not quite understand it. in fact come -- clay did not quite understand it. crittendon found himself between a rock and a hard place on that. he had thrown in with taylor as a kentucky point man, but he kept that secret from clay. >> at the end of their lives as they tried to get back together? >> there are different accounts of this. the idea that they reconciled largely derives from someone who was with them in washington at the national hotel. he had been summoned to bring clay home, because he was dying, and they knew it. but by the time they got there, it was too late. crittendon went in in june. whether he was summoned or whether it was of his own coalition, we do not know. but thomas said after the meeting that henry said that his friend had done no wrong and the family should for

a sec annual bowling fund- raiser at the verizon center.k and brian orakpo, who was on my team, and bowled by the name rak daddy. he was really good, too. >>> a grand slam of a party in chinatown. we have a report on the kickoff event. head coach jenson mingled with fans while testing out the cocktails. the gm is optimistic about the season. guests were excited about the night. before she left erika asked the owner what to expect this summer. >> we will come back and go to this championship again. we will have a great time this summer. >> reporter: the summer lineup includes a visit from anna kournikova when the kastles take on -- what's going on, click on angie's army and submit pictures, videos and events today. >>> as prom season starts to give way too graduations and summer wedding season, some local florists are keeping their eyes to the skies over europe. kristin fisher shows how the same thing causing travel disruptions is hampering important events here at home. >> snap dragons, stock, gerber daisies, hydrangeas, tulips. >> she used

i was enthusiastic about the response that the sec had when mr. cox looked at it and said there might be something here. i heard the same rumors everybody heard that hedge funds have gathered and ganged up and there was an uptick rule and that was all part of the picture of the big fat goose walking down the lane that is about to get eaten up alive. whether it's competitors or people angry at it or whatever, i don't know. but regardless of whether there's a conspiracy or not, the bottom line was that the firm came under attack. we feel that if there was a conspiracy and the sec was going to find that conspiracy, that would be a miracle. i'm not an expert on conspiracy. >> did they attempt to find one to your knowledge? >> to my knowledge, no. >> your comment about being enthusiastic when mr. cox said it, you hoped there would be an inquiry. >> correct. >> to your knowledge, there has not been. >> if there has been, there has been no conspiracy. the answer is i don't know. >> i want to keep on this for a minute because i know some other commissione

again, it doesn't seem like they are in mode with the sec.e will be an overhang on this stock. lot of selling pressure last week was made up for a little bit this week. but still great uncertainty for goldman zbleer what i would do to be a fly on the wall this afternoon. on much more after this. goldman grill continues. mounting civil charges put a notch in the financial key businesses. top attorney weighs in. legendary investor whitney tillson joins us. tonight at 5:00 p.m. eastern on cnbc. with fidelity, you can take your trading around the world, because now you can trade u.s. and foreign stocks online, in 12 markets, 24 hours a day, all from the same account, and settle in u.s. dollars or the local currency. plus, we'll guide you with international research and realtime quotes, so you can diversify your portfolio, wherever -- whenever. and we'll be on call around the clock, while you trade around the globe. fidelity investments. turn here. >>> welcome back to "fast money halftime" report. we want to clarify something. a conference call ha