by the way, we should mention you're the head of a historical society that looks at the sec, the seccal society. you look at thing in the context of its entire history. you say the sec at present is completely dysfunctional. what leads you to say that? >> well you had an issue with respect to money market mutual funds and the question about whether there should be more regulation or not. and whether you support the issue of the need for more regulation, the commissioners could not agree on putting out a rule proposal even if there were a majority opposed to it, they could not come up with a compromise and that suggests that the agency has become polarized and is not functioning the way it was intended to function. david: well, by the way, we have to use this as the last question. it is supposed to be a nonpartisan agency. there are five members of the sec. only three of them can be from any particular political party. used to be we would have sort of majority rules but are we having these 3-2 splits right now? is that all how they are breaking down? >> we seem to be back to 3-2 split

the sec has other options. we'll see what happens in the courts. >> and the net neutrality provisions have been invented in some of the telecom deal -- embedded in some of the telecom deal. there are conditions of some mergers that there are reviews and that they ought to -- how to make net neutrality incorporated into their business plan. >> the net neutrality might get struck down only to those provisions that can be imposed on those deals. i am not a lawyer, but the d.c. circuit district court knocked down these rules before and were pretty clear about it. the sec just got unlucky. eight courts it could have ended up in and they got the same one th

cheryl: a shakeup at the sec. charlie gasparino has exclusive details from inside the sec. charlie: there has been a lot of speculation when the sec would imminently step back before the presidential election. clearly after the presidential election more speculation. in that speculation heating up last week from the sec for a couple of days. last week she was hospitalized according to sources telling fox business network her spokesman confirmed she was hospitalized for a mental procedure, all they would confirm it as, a medical procedure. we understand it was a surgery but we don't know what the surgery was about. she will be out thursday back at the sec back on regular duty. i understand she is working from as it goes. it is kind of interesting, this is an internal meeting and this is some sort of a hearing brought out renewed speculation. they tell us she has no plans to step down. that makes me think she has no plans. the chairwoman of the sec is appointed position by the president who has a shot. she has had some rough goings. the vote in the regulation, one of her duti

the sec actions in this regard.: it seems like this is out of control. high-frequency trading accounts for two-thirds of all trading on the exchanges. how you put the genie back in the ball? >> i think one of the things that you do is require that all trades have a legitimate purpose you eliminate the trades that are effectively demi or false trades and required that all trades to be followed through or that there be penalties associated with transactions that are canceled before they are ever executed. gerri: it feels like a big job. to we have the technology available to our regulators to kind of track all of those trades? >> i'm not certain how well equipped the regulators are, but that is a budgetary issues. the technology exists, and the real requirement should be imposed by the exchanges and self regulators as well as by the sec. we need some affirmative-action, and we needed quickly. gerri: thank you for coming on tonight. fascinating interview, and great to hear what you have to say. i have to come back soon

have faith in the sec? only if the sec is the one that's on cbs on saturdays and they got galore in that. operations fair is fair. bottom line, the government isn't oblivious to the willy-nilly and embrace of engineering, high frequency traders that hurt you. the government recognizes while progress can be good not all innovation breeds progress. some gets you slaughtered. it is that the branch of government wise to the problems, chicago fed, it isn't the one that matters. let's go to david in arkansas. david? >> caller: thank you for doing what you do for us. >> i appreciate that. thank you. >> caller: i have learned a lot from you in the last six years. i have a two-part question. which has the most upside, sirius logic or apple? and why? and what's the likelihood of apple splitting? >> cirrus logic has been an i amazing stock. i have been going over the few things i thought was doing wrong. i stayed on the apple bus. apple is still cheap. do i think apple will split? absolutely not nor do i think they ca

the sec will be holding hearings again, and this week on the communicators, we're joined by three technology reporters to look at the upcoming legislative and policy agenda which involves technology. elizabeth wassermann is the tech editor at political. one of the issues we covered on "communicators" is cybersecurity. what's the status of and it do you see further action this fall? >> yes. when the senate left town this summer, they had just failed to pass a democratic back bill on cybersecurity that was calling for more requirements on critical infrastructure industries, such as power plants, pipelines, and water systems. the republicans didn't want to leave it as a full buffet. they give lip service to the fact they could come back with a compromise. however in the intervening time we had the political conventions and each party, fueled the topic with a little more rhetoric and finger-pointing, and at it really going to be interesting to see whether they revisit cybersecurity when they come back in town. >> now there has been some talk that president obama might look at cybersecurity throu

i was sec. i try to go to every family i was just--sec. whatever the outcome is i was just sick. it just sinks to the bottom of your stomach. >> the superintendent said that they are providing the vague details the mental health coordinator will also be on hand to help with the situation. >> and we are talking about what prosecutors led to this a deadly shooting at the colorado movie theater in aurora, colorado and the month of july. that left 12 people dead. with 60 injured. this information from previous court documents including confirmation that the gunman, james jones said a package to the university of colorado psychiatrist. james- holmes.. although the psychiatrist said that she did not see the notebook. and also documents included information that he spoke with other students to about killing people. when his life was over. defense attorneys have argued that he is mentally ill impossibility of an insanity plea. >> police arrested the anti- islamic film that is sparking outrage worldwide. he is convicted of bank fraud in 2010 and four of his probation is not being allowed

was the decision by the sec to back off on money-market funds. do you see that -- we had some regulatory actions on banks, chartered banks, each less. money markets are part of the shadow banking system and the sec says we can't do it. what happens next? >> this is a very important issue to address. they have made the case already that money market funds are a systemic issue. i think there has been a lot of work around that and consensus around that. some of it than by people in the audience here. i think the fact that that sec has been able to address this -- one of the things it was put into place to do was addressed these situations where you have a stomach tissue that is not being addressed by the primary regulator. now this is very much on the agenda. i think it has to be. there is obviously a complicated set of questions about how you do it. one option is to put it back to the sec by making a designation as a whole. the first response would be to put the onus on the sec to address this issue again, which may be the right way to go. you coul

the western role in supporting the rebels in the syrian conflict that's next in spotlight in just a sec. he gave. you to meet. hello again to walk into a spotlight leave and so you shall all right so i'm all in all and today find

we offered it up as a voluntary commitment to the sec as something to help the sec. we would have done it with or about the transaction. we have gone far beyond the nature of the commitment in terms of eligibility of the program and the speed of the project, led the way we are running signups. the way we are promoting its. . it barely resembles the original program that we put in front of the commission at the voluntary commitment. >> we want to introduce our guest reporter. she is the editor in chief of cable facts daily. >> i know some of the early data that you have from the program was that the computer rates were very low. have you any more details there as to why that is? >> rates are a little higher as we have gone through the year. over 100,000 families, and 11,005 fun trick computers being sold. -- 11,500 computers being sold. based on our research, we thought for futures were going to be an essential element. the research out there is that one of the significant impediments to low-income americans signing up for internet services is that they do not own a c

i think the sec has a much broader problem. the whole structure of the market in this country.ve dark pools, semi- light pools and we have stock exchanges. we have virtually 60 different places where ibm trades under all different roles. gerri: just to fill people in just a little bit. dark pools. you do not know what is going on. like it is trading in the closet as opposed to being out on one of the big exchanges. >> that is correct. if you turn the clock back, not that we should, the date that i've left the exchange, we had an 84% market. eighty-four traded on the big work. that was the pricing for all letter for anyone else who wanted to compete. gerri: not anymore. one critic of the market right now is calling the volume, the shares that are traded on the new york stock exchange toxic trade. trade that no one else wants to handle. the ones that are legitimate are going into these dark pools. >> that reinforces what i just said. the first stop is the dark pool, the second is the semi- light pools. that is wrong. the structure of the market in this country needs to be redefin

except the sec. not even the fed. that is my feeling about this despised market. the market that continue to have tens of billions of dollars of outflows of sell sell sell towards of bonds. even on not so hot days like today. nasdaq declined and it looked like an ugly day at the beginning. boo! today my colleague countered that you can't stop progress. not all innovation is for the betterment of mankind. we except these principle in many walks of life. we got a gigantic hate going on against nuclear power. i remember the days when it was the peace of harnessing the atom. but it is being called into question after the three-mile island and fukashima. when on the first day of the balance. of world war i they sent their days in and machine guns made mince meat out of them and by the way, that is why we have the geneva convention. to me, the german machine guns are mowing down thousands and the people being annihilated? that is you. trying to save some money as generations have before you. as someone who cares about you and about the level playing field. my biggest op

. >>> el pdtresidente de mÉxico felipe calderÓn dio qujomari qa es deporlorable y sec capto el m momento mÉxico. >>> no sirven para rehabilitar a a la gente. >>> la fuga mÁs grande fue en i diciembre del 201,0,donde 153 e presos huyeron e nnvn nuevo lar. >>> en apodaca las familias de l los internos qriuerÍan tomar a carÁrcel, los fugados antes d s irse asesinoaron a 4 reos, al u fufgfu fuga fue cnuando se reunieron l secretaria de seguridad interna de estados unidos y el de mÉxico, la secretaria dijo que trabjaana contra el crimen y e s sec secretario que se da el comabte co contra el narcotraficanteosa,n m embargo en este fgobierno mÁs d mil reos se han dugfugado. >>> en mÉxico, mÁs de 40 p personas han muerto y 10 heri s heridas, despuÉs de la explosiÓn de una empresa de pemex, cerca d de la forn dorontera con estado unidos. >>> elecciones presidencialel r mÉxico, enrique peÑa nieto vi t visito cuba aolombia y se reuno el presidente de colombia, juan manuel santos para abodar la lucha contra el crimen organizado ey el narcotrÁfico. >>> la experiencia de colombia s serÁ sin duda un ref

adam: of love to have left session, let's pass the sec.hey might have approved this kind of transaction. an insider says, this is happening. you should do something about it. washington generally did all of this morning. it is us seem like the sec caught this or is capable. >> we saw the madoff situation. it was years and years and went on where this was not caught. so i think that we need to do -- basically we need to do a better job and put in place more strict that line so that this can come out and a faster pace. adam: i appreciate you joining s&l all of us what confidence in the markets. it will lead to have you back. oil prices nodes-4%. vowing to keep prices back -- low. plunge may not last for long. american outlook for the financial futures takes a surprising jump. what is behind the sudden surge of optimism? we will explain. more "money" coming up. but back ♪ adam: and last week shockingly large increases in oil inventory sending crude prices plunging. this the best single-day drop in two months. the energy department reports sto

the sec is extremely happy about that and we will move forward.in terms of the investigation as cases, there were 376 new cases and we closed for 27. we close 51 more cases than we opened. we closed the quarter with three and 25 cases. 102 left pending cases and these figures are as of june 30. i give you some updated figures. in terms of caseloads, caseloads were down. that number looks better so things are looking up. sustained cases, the rate was lower in the second quarter of 2012 compared to the second quarter of 2011. 5.3% sustained rate in 2012 compared to a 2012 sustained rate. the sec sustained allegations in 12 cases but the number of days to close has increased in the second quarter compared to the second quarter of 2011. we had some emphasis on our legal unit. one of our lawyers a lot of time on policy recommendations. we only have our two trial attorneys and policy analyst attorney who edits the reports. and we are becoming more comprehensive in hour sustained report so it is taking longer. and moving on to the type of sustained alleg

and i think that the sec, i don't blame the sec for this.ec has disclosure obligations and they have responsibilities to be sure the disclosure is accurate. i think the private market needs to be regulated. >> we'll continue this conversation after the break. >> we have a lot more thoughts about what is really happening for people who are trying to invest in the stock market. "squawk" willi be back after this. when you take a closer look... ...at the best schools in the world... ...you see they all have something very interesting in common. they have teachers... ...with a deeper knowledge of their subjects. as a result, their students achieve at a higher level. let's develop more stars in education. let's invest in our teachers... ...so they can inspire our students. let's solve this. >>> one more hour with our outspoken guest hosts, dick grasso and ken langone. >> i don't think there's any reason why we shouldn't hold people accountable for performance. >>> jean paul dijorio wants to hold candidates responsible for the promises they made on

the sec and cftc, about seven years ago, regulated the national market system.is a disaster and a failure. they have to start over and look the american public in the eye and say that we are going to carry the water for you. we are going to get it right and we're going to do it with a very simple test. if it's right, everyone wins. lou: dick grasso, thank you for coming to be with us. you are speaking from experience. dick grasso. coming up, at long last, we have the inspector general's report on "operation fast and furious." are we any closer to the truth? one of the leading investigators on capitol hill, congressman trey gowdy is with us. who is behind the so-called occupy movement? that is one of dick grasso's favorites. we will be talking about the directors of an important new documentary called occupy unmasked ally bank. why they have a raise your rate cd. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years? no. if he can't,

the sec is charged with writing the regulation. 2300 pages.taken so long to get these rules actually implemented. do you have the staff needed to actually do this and handle much more than before? >> we are working hard on dodd frank. as you know, the s.e.c. handed an enormous amount of new responsibility under dodd frank with more than 90, sometimes more than 100 new rules to promulgate and we have made tremendous progress. we have laid the ground work with the regulatory regime and the derivatives market. $600 trillion market at the core of the financial crisis. we have instituted a new whistle-blower program enabling us to do a better job of bringing you security cases faster, broader and more effectively. we have registered hedge funds for the first time and received systemic risk information. we have put in place new corporate governance provisions say on pay that gives shareholders more of a voice in the governments of the companies whose stock they own. an enormous amount of progress has been made. is there more to do? absolutely. we ar

blair levin was the principal author of the sec national broadband plan and is currently the founder and executive director for gigu, the university community next generation innovation project. then we will hear brief spropbss from mark cooper, chief economist from the consumer federation of america, we will also hear from harold furgot roth, a former commissioner of the federal communications commission and currently a senior fellow acted hudson institute and finally, my colleague, michael calabres, director of the futures project. after hearing from the respondents i will open the panel to the audience for additional questions as time permits. without further adieu, let us begin with reed hunt. >> thank you very much. hello everybody, thank you for making it here. i am going to talk to you about energy and blair will talk to you about communications services. but we're both talking to you about a conversation that we have been having with each other, and want to invite you into. we've been having this conversation for about a year. in our own conversations, we all it the politics

that is what the sec is saying. that is what nyse is saying. got out to proprietary clients. they got smacked with a $5 million fine. they settled it without denying or yes --, it was -- >> yeah. this is all coming out because of the flash crash investigation. that's what basically flushed this information out but you know, even though they're saying it's, you know, technological snafu, the bottom line it still erodes market confidence and investor confidence, right? so that not a good thing. tracy: you have to wonder if there was a little something funky going on? >> that's right. ashley: funky indeed. emac, liz macdonald, thank you. >> sure. tracy: technical term. ashley: it is, funky. coming up is spain on the verge of asking for the next european bailout? many believe they are. leading global analyst steven pope will tell us why he says the united states should be very concerned. tracy: but first before we head out to break, the dow is up 30. look how the dollar is moving right now against the euro. the euro up. dollar down. euro up 1.31. s

tracy: first woman to chair the sec.ot to give her there. >> very accomplished person wishing her a speedy recovery. the biggest news is that she's coming back, and apparently not stepping down. ashley: continue to follow it. tracy: thank you, sir. ashley: oil hovering around $11 # 00 -- $100 a barrel, and tensions overseas push it beyond that mark and hilt our wallets? we'll investigate after the break. tracy: winners and losers on the s&p500. office depot way up top. somebody going to buy that company? ashley: time for stocks now as we do every 15 minutes. let's head to the floor of the new york stock exchange. our very own nicole petallides watching office depot shares take off, nicole. >> that's right. we cover these office supply stocks very closely because sometimes they have some big moves. in this case we're watching office depot very carefully today. hedge fund starboard value has taken 13.3% stake in office depot. that makes it the biggest shareholder of office depot. you can see how it is faring right now. it

it's not a necessity, it's a nicety. >> host: have you been following the changes that the sec's made to the usf over the last couple years? >> guest: yeah. from a reform standpoint, i'd say progress is being made, and some of the caps and some of the things that they've done are a step in the right direction. >> host: and in texas you came up when they were sort of talking about contribution reform which is sort of the next -- and it's a republican commissioner who'd been urging, you know, to move toward contribution reform which would be broadening -- >> guest: i'm saying, again, anything that moves towards reform i'm supportive of. it's the political support in rural -- especially in the senate where you've got two senators from each state. if you come from a largely rural state, a tough, tough thing to get real reform through the senate. >> host: now, congressman barton, i want to return to privacy, and i want to talk about social media for a minute. >> guest: okay. >> host: does your do not track kids bill, is that centered around social media, and why just children? why not adul

during the flash crashed the dow plunged nearly 1000 points in a matter of minutes, sec says the nyse was sending up stock quotes to some people in real-time but to others around five seconds later. think about that. the ceo sent a statement to us that the timing differential stems from technology issues, not from intentional wrongdoing by the exchange for any of its personnel. software issue if it is fixed. nyse agreed to pay the $5 million fine but did not admit to any wrongdoing. critics say it is a prime example of exchange trying to make the most money rather than providing a fair and open market for everybody. the answer to our question of the day. has it been strong enough? stay with us. you is an compromised weapon of union delegates still have to the strike. meanwhile, president obama visiting today with the families of the victims of the attacks on the u.s. consulate. now it is time for your comments. dennis says it is about as strong as a used tissue great we also asked about president obama's comments on gerriwillis.com. 97% said no. pretty strong reaction, my friends. her

during the flash crashed the dow plunged nearly 1000 points in a matter of minutes, sec says the nyse sending up stock quotes to some people in real-time but to others around five seconds later. think about that. the ceo sent a statement to us that the timing differential stems from technology issues, not from intentional wrongdoing by the exchange for any of its personnel. software issue if it is fixed. nyse agreed to pay the $5 million fine but did not admit to any wrongdoing. critics say it is a prime example of exchange trying to make the most money rather than providing a fair and open market for everybody. the answer to our question of the day. has it been strong enough? stay with us. [ male announcer ] at scottrade, we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need it. it's anothe

the hacker group anti-sec says it actually found 12 million apple ids on an fbi agent's laptop. anti-sec says the data file had user names, zip codes, cell phone numbers and addresses but chose just to post the device name and number. the group says the fbi is using apple device information for a tracking people project in its own words. the fbi is disputing the hackers' claims. the fbi says that it never asked for and never possessed that kind of a database. security experts say just having that identification number alone would not necessarily pose a problem but if someone was able to take it and merge it with other personally identifying data, then it could expose to you something such as identity theft. we have links on our website to some of those sites that have gone ahead and downloaded that information and published those id numbers. you can go on there and check your own. >> melanie, has it group done it just to prove they can do it? >> reporter: when you go on -- it's getting into the [ indiscernible ] the reason they said they did it is they have a beef with the secur

from apple devices like i phones i pads and i pods and so far and the sec is released just one of the twelve million i.d.'s now you deny you the i.d.'s include user names phone numbers and addresses and the identifying codes also have the ability to track and monitor users of these devices so let me get to the point here this is evidence of yet another facet of government overstepping across industry to access more information about our personal lives to track us all well i have an i phone and i asked syria earlier if the f.b.i. had stored and tracked my user information to check it out. during the f.b.i. tracking this phone would you like to search the web or if the f.b.i. knows where i am are to tracking. syria i don't want to be surveilled. if you want you to. syria why are useless. i can't search the web for perry why are you. if you like. well it looks like siri isn't all she's hyped up to be but now even more questions than when i started looking into this like how is this information legally being data mined and for what exactly well i guess the how is kind of rhetorical since

the sec was tied up. geithner now writing this letter to members of the fsoc urging them to take action on money market funds. he says, further reform to the money market fund industry are essential for financial stability. also, citing the financial crisis of 2008 and 2009 saying that it demonstrated money markets are susceptible to runs and can be a source of financial instability with serious implications for the broader economy. this is a new tactic we're seeing in washington now with the fsoc, which was created by da dodd frank. now able to step in and pick up where the sec left off. it gives the council the authority to address risks to the financial stability if an agency failed to do so. so maria, interesting move here by treasury secretary tim geithner. back to you. >> all right. thank you so much. i want to bring you to breaking news on research in motion. r.i.m. stock on the move. the company reports a loss of 27 cents a share versus an expectation of a loss of 46 cents a chashare. the company

. >>> the fog that the sec kitchen of this nonprofit must be beautiful delicious and nourishing. if these people were fighting for the lives. greta there's nothing more powerful than eating this way and realizing that you actually feel better. >>> she is founder and executive director of this committee project the fibrils nine nonprofit delivers healthy organic mills to 80 patients and families better life-threatening illnesses. delivering free meals every week in sonoma and marin counties she's been diagnosed with a terminal case of leukemia but she says the meals have kept her alive caitiff >>> the food business and yes it is in you or vegetables and you learn how to a higher quality of food. >>> the idea for a group after kaplan the krutch teacher friend's daughter how to cook six years ago. they made meals for three families dealing with serious illnesses. the experiment produced the perfect ingredients for this. >>> became of the simple idea that kids of the kitchen and cook for people that are sec. >>> today it has its own kitchen and served 900 families 130,000 meals. >>>

pressure air begins to escape under the tubes forcing the craft upwards the top two is divided into five secs. to make sure the craft continues to function even in the case of puncture. unlike with other types. is ready to go at any moment. thanks in the skanks. greatly improve its gliding characteristics it can move over water. with the same amount of. main edge over the more conventional kind of. by maintaining contact with the surface we have achieved excellent maneuverability as well as steady motion. that's important because handling is a big deal for craft that hover so there's minimal if any contact to. be significantly trickier than in other types of transport for the help of. the captains on board to effectively decrease the air pressure under the right and left side which allows one side to drag in that direction. higher above the water surface and there's another craft. floating effortlessly above the sea plate help show that size doesn't always matter and that these small flyers also have a role to play in maritime aviation. but if this plane was designed to be operated . under an

tracy: is the sec backing away from indecency complaints?ck its enforcement of indecency charges after a series of courts slated down. dennis kneale covering the story. does this mean we have more tolerance? dennis: the sec has set a retreat in a faltering work done in decency. doubt in congress and the court that was wide or constitutional. the sec saying it will stop pursuing 1.5 million indecency complaints and focus only on the worst. the agency backing down after the justice department dropped a lawsuit against fox broadcasting. a blurry pixilated peak of nudity on a reality show almost a decade ago. a decade since cracking down on four major broadcast as basic cable got racier. like fox's fedex channel. long on profanity and fleeting flashy images that sec regulations only the big four broadcasters and local stations. sometimes too ridiculous degree. they have investigated a complaint filed against the cartoon series the simpsons fora seen in a strip club. the decade long war began with the wardrobe malfunction at the superbowl in 2004

he has a death grip and it last about a sec. >> this is obviously not your typical mud that you findkyard on a rainy day. >> this is serious -- >> this is construction mud. it's think and nasty. it's like quick sand. they try to dig out the other side. >> why don't they just scoop him. they come up from behind, very gently, and he gets a right back to savety. >> yes, and look the mud just comes right off. >> you know what this probably sounded like? >> that's it for the rtm top ten countdown. thank you for spending time with us, have an awesome weekend and we'll see you monday. ♪ about the dangers of smoking. gradually, tobacco took not just my health, but my dreams. [ inhales deeply ] think about what tobacco is taking from you. quit now, before it's too late. [ inhales ] [ coughs ] >> maury: on "maury" -- fall ne. when the results come in, someone is going to pay. >> eddie is here on a mission. >> what if you are dead wrong? >> to prove vanessa has been lying to his son and her baby is not related to him, his son or anyone in their family. >> maury: your son loves that girl. >> sho

bond underwriter jp morgan settled with the sec, paying the county $25 million and the sec and a.k alleged to have bribed friends of jefferson county commissioners. >> there was definitely malfeasance in the whole use of the swaps et cetera. >> but the president and ceo of assured guarantee which reinsured. so sewer bonds says the sins of wall street and corrupt politicians shouldn't let jefferson county off the hook. >> i didn't vote for that project, they did. >> what really steams federico is that they killed a deal that would have avoided bankruptcy. bond holders offered to forgive a billion dollars of the sewer debt if state lawmakers allowed the county to raise taxes to pay the rest. now, assured guarantee has to pay up. we should work together. >> at a certain point when you can't meet your financial obligations and the settlement that we had was getting farther he away instead of closer to us we had no choice. >> is it a cautionary tale for other counties across the country? >> absolutely is. you have got to live within your means. >> welcome back. lou dobbs from the fox b