sec. johnson: thank you very much, thank you. thank you. good on you. most honored, thank you. we'll get through dinner. thank you. i'm very honored. hello, boris. fmr. sec. johnson: good evening, arthur. mr. brooks: i was under stress because you had votes in the parliament and you had to come this morning. we were watching your flight across the atlantic. fmr. sec. johnson: the votes wouldn't have kept me away, and i'm absolutely thrilled to be here at the american enterprise. you could have knocked me down with a feather when i got the news i was getting the irving kristol award, and i haven't been so surprised since i was 25 and i got a letter from monash university mellman, saying i was going to be a professor of european thought. it was a case of mistaken identity. [laughter] fmr. sec. johnson: that's what i'm here tonight. but this is a very, very important institution. i followed the work of aei scholars and of people associated with this body for many, many years. you have been in

sec. trachtenberg: we do not have a missile defense system capable of defending against the arsenal, nor has it been our policy to do that. the russians have a tremendous number of nuclear weapons systems. reasons,riety of we have not pursued an active defense against a full range of russian strategic weapons. we prefer to rely on our deterrence capability when it comes to russia. >> at this point, we do not have any specific actions we are taking in response to what they are doing as opposed to a deterrence? sec. trachtenberg: we do believe that proceeding with the nuclear modernization program we have by modernizing all three legs of andnuclear triad, land, sea air base components, is critical in order to continue the deterrent effect that we rely on. >> as the country continues to face threats from around the , i think we should not take any action that is quick to hinder our own missile defense systems. we need to always remain in charge of our own missile defense, not russia or anyone

the sec is in horrible position.n't want to destroy tesla or take out america's greatest ceo active now since steve jobs. great reporting by david, seems like there was a reasonable settlement there elon is principles, sec wants to have things buttoned up. my guess is they're probably talking because you have to. you can't take america's greatest ceo out of the game and america has to think what's in the best interest of steak holders. his in -- stakeholders >> even if you believe exactly what you just said, the conundrum becomes now that elon musk was the one that didn't accept the settlement, if you're the sec, you can't back down from where you are today the settlement is going to be no better than on the table yesterday. almost inherently has to be worse. >> i don't know if i agree with that i think both parties have so much at stake that you can't let this go on forever and the great paradox and irony here, pick whichever term you like better, is that the funding secured tweet did any damage, doesn't seem to hav

sec. pompeo: what secretary kerry has done is unprecedented. this is a former secretary of state engaged with the world's largest state sponsor of terror, according to him, you don't have to take my word for it. these are his answers. he was telling them to wait out this administration. you can't find president for this in u.s. history. secretary kerry ought not to engage in that kind of behavior. it is inconsistent with what foreign policy in the united states is as directed by this president. it is beyond inappropriate for him to be engaged with this. i saw him in munich. at the security conference, he was there with secretary moneys and wendy sherman. i am confident that they met counterparts, the one kid asked secretary kerry is my recollection is accurate. i was not in the meeting. i'm reasonably confident that he was not there in support of u.s. policy with respect to the islamic republic of iran. this week, they fired rockets towards the united states embassy in baghdad. they took a

lauren: confident in musk, sec reached settlement but musk lawyers told sec said they weren't interested in moving forward with the agreement. shares to have company plunged almost 12% in after hours and those losses continue this morning, take a look at this ahead of the opening bell, 27544 quote for tesla, down 10 and a half percent. tracee: joining us misty morris, double duty. >> good morning, thanks for having me. what count final decision by musk rather than set it will charges? >> what's i think is going behind the scenes, the lawsuit, the sec is removing musk, say he cannot serve as ceo of a company. my guess is in those settlement negotiations the sec was negotiating that point specifically maybe with a time frame and that's one of the more common issues that the sec pursues, you cannot be the head of the company for 2 years, my guess is musk was not having said and said he would rather roll the dice in a lawsuit. tracee: do you think there's a chance if there to be a settlement. what happens if musk agrees to sec before trial or likely that he could be banned from running the c

really the emphasis is on sec. if you are a shareholder of tesla, there is enough in these implications -- less the fine, he's got the money -- it is a question of, can he continued to serve as an officer of this publicly traded company? to shoretesla's board up management. we talked about whether there was a coo search. in the past, they looked at people like sheryl sandberg. do you accelerate, or do you renew this search for coo ? we were told recently they were not looking for a coo. but when the job of the ceo is on the line, when you're looking at a ban on him serving, you need to strengthen the bench. there is a lot of management turmoil right now at tesla. a lot of senior people have hit the exit. they really need to bring some stability to this company while the sec case gets revved up, while the doj figures out what to do. you pointed out, the stock in play trading fell -- in late trading fell 11%. haidi: tom, thank you. still ahead, catching up. we look at how surging commodity prices could mark a diverge

sec saying musk knew or was wreckless.ty clear suggestion that he was very much in the wrong. >> we have been discussing the fact that this is a civil suit that musk is the person named in it, not the company itself >> i think it is highly significant because it deals with a ceo that apparently went outside bounds of pro pryty and may have acted more to influence stock price than to inform investors. that is not permissible under the securities laws. >> but how are they going to be able to prove that in other words he had come out afterwards and said he had been having discussions and maybe there was more there is that what this is going to come down to whether there was a deal on the table that he had been discussing with his investors? >> no. i think what it comes down to is that he said financing for this proposed transaction had been quote secured closed quote secured in that context meant that there was a legal right basically to call upon the financing should the transaction go forward he subsequently made it clear t

sec. pompeo: good afternoon, everyone. before i get started, i want to let our fellow americans know who are affected by hurricane florence that our prayers are with them. i understand there may well have been loss of life. our heart goes out to them. thanks, too, to all of the first responders, military, civilian and the like, who are doing such good work. the federal government's help is there, and we still continue to encourage every american who's in the threatened path to listen to government officials and take heed to their words. we're also aware that there's a typhoon in the pacific ocean right now which will take a toll on our friends in the philippines. our prayers are with them as well. state department teams are are ready to deliver the appropriate help to the region at the right time. as you all know, on wednesday president trump signed an executive order that made clear that our administration will not tolerate foreign interference in our democratic processes. elections are t

sec. pompeo:w it is in the orks. we hope everything.t together and ikes sense before terribly long. laura: president trump attacks the credibility of the woman accusing his supreme court nominee of sexual assault as negotiation continues as to whether christine blasey ford will testify to congress. plus, he fed the island of puerto rico after hurricane maria. tonight, josÉ andres tells us how he mobilized an army chefs. viewers onome to our public television in america and around the globe. a second summit between president trump and kim jong-un is in the works, according to u.s. secretary of state mike pompeo, who told the bbc todayl he wavel to pyongyang soon if things fall into place.er this comes a summit this week between north anda south ko which kim jong-un said he was committed to do -- denuclearization. secretary pompeo spoke to our state department correspondent barbara plett-usher. bautara: let's talk aboorth korea. there have been developments this week. kim jong-un said he is

hi, bob. >> hi, melissa the sec is warning investors about the hazards of investing in pot this time in a statement with remarkable similarities to its warnings on crypto, the sec has told investors to be wary o investing in the marijuana business warning fraudsters may spread false and misleading information and may try to use media coverage of marijuana legalization to promote investment scams they urge investors to look out for unlicensed, unregistered sellers and guaranteed returns be wary of that. this is remarkably similar to investing in bit koirn and other cryptos. in a letter the sec released in january, cryptos offered substantially less investor protections than traditional securities markets and there was greater opportunity for fraud and manipulation a separate alert from 2017 warned ico investors to be wary of guaranteed high returns and unlicensed sellers and this is exactly the language they used to warn against pot scams. the two found similar because they go to the very reason the sec exists in 1933, congress passed a law that securities act to protect investors bec

other analysts and former sec lawyers told us that at the speed of which the sec moved here when theyat subpoena was quite fast and meant that clearly had another open inquiry or open investigation that we believe could be related to model three production. so what about the bigger picture of what the sec is interested in? we reported that the sec's enforcement attorneys out of san francisco were already looking into some of the company statements about production goals and performance metrics, even before mr. musk's tweet. what happens though is, once the investigation gets going, it's kind of like a black box. we ultimately don't really know where things are going to go. it is common that there's a lot of back-and-forth between the attorneys for the company and the attorneys for mr. musk, and the agencies, they will be requesting lots of documents, lots of information. eventually if the sec does decide to go somewhere with this, we will get a better idea, but it could be months or years away. emily: i know you will keep us posted. that does it for this edition of "bloomberg technolo

>> it looks like a pretty good deal for him given the sec complaint.hink their complaint is well drafted. in a casen and clear of fraud. it distracted well as a foundation for a criminal indictment. the fact he pulled out of this, it seems like it was something he should have taken. brad: let's look at it closely. what's with the implications be a big -- b of a criminal indictment? the sec's complaint is clear that there were numerous violations of purposefully omitting information, misleading statements to investors, and he fully did it. that is a criminal violation. i found it interesting that they file this in the southern district of new york. the investigation is ongoing in the san francisco office. the action was brought in new york which is a much more preferred forum for fraud cases. it also works in tandem with the district of new york in bringing the companion criminal cases. attorneye deputy u.s. former director of enforcement. there's indications with the ongoing criminal investigation, that often times when the criminal investigation begin

lieses -- his fate partially in the hands of the sec.ors may be buterned about elon musk, some say the probe about taking tesla private is unlikely to lead to his ouster. here to tell us more, our guest from washington, d.c. what does the agency have the power to do and what is it likely to do? greg what we know so far is the sec has not acknowledged that it is investigating tesla. we have reported there is a pro looking into elon musk's tweets early last week. the sec has power to do fininging from individuals or companies up to the ultimate guilty, some type of temporary or permanent ban from serving as a director or executive in a company. we understand just talking to people who pay attention to these types of cases, what we know so far, it doesn't seem that that's the kind of direction the sec might go. all that said, we don't know where this will go. this is a pro that the sec has not even acknowledged. that thet seem likely sec would go there because as you mentioned, shareholders would bear the ultimate bright and there's no sugg

i do not believe that from reading the sec's complaint. his muscular right that all the way through a trial or is he going to pay and step down? normally the sec is longer so if there willing to give him oh one year maybe he be smart to take that. liz: the stock down 14 and it - [inaudible conversations] >> i don't know why he did not take the deal. liz: ego sometimes, maybe. interruptus again if you get anything more. he's working the phones as you can see. we 49 minutes before the closing bell on the dow right now is called the s&p is down just a third of a point so it really watching not a bad quarter but the dow is on its track for the worst week since the end of last quarter. it's not been a great week but the great winners over the last quarter taking the top spot we see that jumpy 21 and a half percent. apple this is been an overall and fantastic investment of 21%. pfizer, let's mirror it. 21% to the upside. intel, chevron and dupont but they're not having a bad day. intel loses 5% for the month, chevron down the present, to part do

more on the sec going after elon musk.loomberg. ♪ caroline: live from the world headquarters in new york, i am caroline hyde. of how theapshot u.s. stocks closed today. we are flat on the quarter. joe: the question is, "what'd you miss?" caroline: facebook takes a turn for the worse. they discovered a certain -- security breach that hit nearly 50 million account. there is of a euro crisis, italian assets come under pressure after a budget deficit target was set to threatens financial stability. sec is going after elon musk for his tweet about having funding to take the company private. must also called a stir in may with a bizarre call taunting wall street analysts in favor of different questionnaires. >> we will go to youtube. these questions are so dry. it's something we will solve within a month. next. if people are concerned, they should not by our stock. i'm not here to convince you to buy our stock. are you guys going to let porsche be due to market with their supercharger? >> ask questions that are not boring. carol

to tesla, and the sec in the first place would like to protect investors.nd if they get rid of elon musk there might be a negative for the stock price, as we have learned. the sec put it pretty fair deal on the table, but at the very last second elon musk decided not to go for it. and that caused wall street, the stock at the end of the day lost almost 14% on value, but it is still possible a deal could be reached between elon musk and the sec. >> and the latest trouble at facebook, how is the market responded to news of another massive data breach at facebook? reporter: initially it was a shocker and the stock dropped by 3.5%. one of the critics of facebook, has been for quite some time, that they are collecting ever more data about are not necessarily able to really protect those. what we have heard so far is that obviously, in this particular case, no credit-card information was stolen. so that's at least a little bit of good news. and the stock could recover at the end of trading, at the end of the day. facebook is done by about 2.5%, but those have bee

he believes the sec actions are unjustified.rkin and hired steven best who was mark cuban's lead defense counsel against charges of insider trading involving mr. cuban. let's get inside now from thomas gorman who served at the sec for many years and henry, ceo and editor in chief and founder of business insider gentlemen, welcome henry, let me begin with you because famously, you had your own run ins with the sec so you know the discomfort that being the subject of an sec investigation can bring. was elon musk correct in walking away from a settlement >> i don't know if he's correct. i have to say he read the sec complaint and it is very persuasive elon musk says other evidence that would make it not, if there is, okay want to keep an open mind to that i am just mystified. not a mark cuban situation elon musk is the ceo of what was a $50 billion super high profile public company you want to get this behind you as quickly as possible for the company's sake, not just your own personal would not have required him to step down as ce

tesla off 14% as the sec sues elon musk. new designer from hiatus to shakeup high-fashion. saint laurentr show his newl collection in the most anticipated show up fashion week. chris, how does lvmh plan to grow silly? this is part of a bigger plan, isn't it? ehris: they want to grow selen to be two or three times its size of the next five years. they want to get into e-commerce, which they have not been in so much. they want to get into menswear and classic licensing, like fragrances. at thee: i was looking twitter feed, and it looks like eddie is guzzling champagne out of the bottle. chris: this is the moment for him. caroline: talk about social media, because the previous designer had shunned social media, but now they will have to embrace it? chris: phoebe philo, the designer for 10 years, was about the precious, beautiful celine woman, and lvmh wants to be a brand for more people. men, for one, and accessories that are for a wider variety of people. when is also a price point people are not willing to spend money online.

liz: tesla ceo elon musk sued by the sec.ng musk misled investors in a tweet by saying he secured funding to go private. now musk has hired a high-powered attorney. we're taking that on next. this isn't just any moving day. this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. . liz: welcome back. tesla ceo elon musk hiring a high-powered attorney after musk was sued by the sec, alleging musk misled invests who are he tweeted he secured funding to take tesla private. he hasn't. tesla lost $15 billion in market value about, a quarter of market cap since that facebook tweet that elon musk sent out in august. let's bring in

i don't think this is at all common for the sec. caroline: what do you think was the most apt issue for the sec? was at the price point or the fact that he had funding secured? to readar be it from me the mind of the sec, but from what we hear, it sounds like it was the funding secured which he proceeded, in his own way, through later tweets to indicate it was not secured. that would seem to be problematic. the other part was that he was taking it -- thinking about taking a private. iunding secured was not a " think i have funding secured." joe: the main theme for tesla shareholders is, ok, there is a lot of distractions, but how are the cars doing? are they getting them out of the door? what is the latest reporting on operation that tesla holding up amid this distraction? jamie: as surprising and counterintuitive as it is, it seems the operations are going quite well. still a little unorthodox. it's not like when toyota has a great month, but they are making a lot more vehicles than people had projected and analysts have projected.

sued by the sec. there was a big deal with boeing beating lockheed martin for $19.2 billion in a deal with 29%. aerospace down by one of the underperformers in the region. nejra: thank you so much. just a note for you out there watching japanese markets. the nikkei is set for a 27 year high as japanese stocks have been gaining this month. let's get back to our top story. the italian government has set next year's deficit target at 2.4% of output. let's turn to our guest, chief economist in managing director at g plus economics. happy friday. let's talk about the line in the sand. i was asking peter dixon of commerzbank, where is the line of the sand where we get a rally or selloff? we have a number of 2.4%. >> there are three stories here. it is very captivating. the short-term focus is very much on the deficit target. what we have to see is how this budget debate default in beutel in parliament -- t-wolves in the italian parliament -- devolved in the italian parliament. that has created that friction

sec was looking at the tesla before all of this.ooking into his some of his pronouncements about building hundreds of thousands of cars and coming up well short of those. mosque is known for making these -- musk is known for making these bold pronouncements and not executing on those big, bold predictions. shery: do we have any other information about the nature of the charge or what it might be? craig: it is too early to answer those questions. they have gone to the company to ask for more information and try to get -- i think they are in the process of getting their arms around why elon musk claimed what he claims, going beyond the statements he has made subsequently about the saudi public investment fund and so forth. that was the justification to givenoint that musk has for his claims. amanda: good to have you with us, craig. as a u.k. continues to work to negotiate a deal with eu for brexit, it is looking for that formal date. liam fox remains confident that a deal will get done. >> i think we have seen the movements in recent

the sec says.. musk grossly mislead shareholders in an august 7th tweetsteven peikin/co-director of the secs enforcement divisionmusk's tweets were false and misleading. in the tweet.. musk said this.. "am considering taking tesla private at 420-dollars per share. funding secured."tesla has been publically traded since 2010...going private means current shareholders would have a chance to sell their stocks at a higher price..but the sec says.. there's no evidence that was set to happen.stephanie avakian/securities and exchange commissionat the time he made these statements, musk had not secured funding for the proposed transaction. to the contrary we alleged he had not even discussed key deal terms including price with any potential source of funding within hours of the tweet.. tesla trading was halted.. but musk's claim had already driven stock prices up.steven peikin/co-director of the secs enforcement divisionat the end of the trading day on august 7th, tesla stock closed at $379 per share, up mo

that is what the sec is calling for.fficer of a public company. and that will leave the company. and that will leave the company ina company. and that will leave the company in a bad way. tesla is absolutely elon musk. he is a genius although a flawed genius, he's driven his incredible space business forward when people said it wouldn't work, he has guided tesla to a dominant position in electric cars, it is hard to imagine it without him although the board would be wise to find some adult supervision, find somebody who can take the reins and say, be careful. a twitter nanny! i think rory should do it! he would keep elon in line, definitely! let's move on. time is running out to save the north american free trade agreement. president trump famously called it the ‘worst deal in history‘ — blaming it for the loss of millions of us jobs and vowing to shake it up. he has already got mexico to agree to new terms. but there‘s been little progress with the third partner, canada — amid reports he refused to meet prime ministerju

[applause] sec.sta: i remember one the president was running for office and folks set 3% couldn't be done. 3% wasn't done. 4.2% was done. [applause] sec. acosta: and the federal reserve has estimates for the third quarter, and its estimating that it will be even stronger. [applause] sec. acosta: and yesterday, the department of labor reported that initial jobless claims are quite literally lower than they've ever been in my lifetime. [applause] sec. acosta: we've seen decreases in unemployment rate to 3.8%. and for the first time since we've been tracking this data, we are now in an economy where we have more open jobs than we have people looking for jobs. that's incredible. [applause] sec. acosta: and tax cuts have resulted in millions of americans workers. we seem pay increases and bonuses. so today's actions by president trump is designed to make it easier for americans to channel some of that rich, economic opportunity. not just into today, but into savings for their future. the president has ask

he could beat the sec in the southern district of new york or the sec almost never looses i think if the board of directors was doing its job here they would be pushing hard they sat on the sidelines as a bystander over the last six months they should be siltitting down d telling him it is time to settle with the sec it means he is still in control. it would allow him to have a stable future. the company needs to raise capital. they may want to sell equity it is hard to sell equity if you don't know who the ceo will be in the future. we are keeping things in suspense i can't think of anything more dangerous. >> it was sort of the point cramer made. you're coming at this from an interesting perspective. you guys drafted the sec rule on social media tweeting when it comes to stock prices which sort of allows him to do what he does, did you ever imagine we would be here so soon? >> right it is an interesting point i think that the key difference is when we came out with that we were trying to make clear how it is possible for a ceo or company to use social media to put ou information ab

the doj and the sec are very careful. overtime.eople are looking for a quick resolution, but it is a process that has just begun. julie: what is the latest in terms of the board support for elon musk? dana: the board supports elon musk. anyone who thinks otherwise does not understand who this board is. the board is made up of close friends and venture capitalists. this idea that there's some kind of corporate governance of foot, it is not really happening. unless large shareholders start pressuring the why, this board will not move on him during they have made their support heard very clear in your list statements. he has the support of the board. he seems to have support of investors for the most part. is there something that changes if there is criminal liability here somewhere? we have to cross that bridge when we come to it. if he is wrought on criminal charges, i would imagine that would be a big concern to investors. but we are not at that point. it is speculative to say anything otherwise. julie: in the meantime, where are w

and the sec is going to want a really serious explanation of what happened.t what is going on in the china daily today, and china refusing claims by the us president that the company, country had undermined his party's prospects in upcoming elections by taking out effectively advertorials ina taking out effectively advertorials in a newspaper in iowa. what do you make of that? well, it isjust... we saw on the tuesday that it was iran that got the full brunt of president trump and wednesday we saw him as the first time chairman of the united nations, a few platitudes, and he went what right between the eyes. and the bbc's filming and others of the chinese delegation getting together, absolutely shellshocked. i know they have issues with each other over trade and trump has... serious issues. president trump, in fairness to him, it is not balanced, the trade, but putting sanctions on people is not going to help. but to come in, as you say, through some spurious advert and suddenly say we think you are interfering with our mid—term elections, wow. that is a very

stock got hammered because elon musk, the founder chairman and ceo turned down the settlement that the secffered for his extremely ill advised tweet about taking the company private at $420 a chair. now they're throwing the book at him. no wonder the stock plummeted 14% later. facebook the most hated company in silicon valley, revealed there had been a security breach one that allowed hackers to take over 50 million accounts this is the kind of thing that makes shareholders worry that facebook needs to spend more on security because it hasn't been spending enough. when that splits, the stock comes down with it that's why you saw a 2.6 decline today. join the action alerts club. it's become quite a distraction to the process of making money nevertheless, despite the ugliness from tesla and facebook it had a pretty great quarter. what's the game plan for the next week? monday night we hear from one of our favorite new companies, stitch fix we're in san francisco where everyone is talking about disrupti disruption, well stitch fix is acting as your digital personal shopper. one look at the we

romaine: how common is it for the doj to overlap with the sec investigations early?mas: very typically the department of justice will take a look at something paralleling the sec. sometimes they will let them go forward and develop the case first and take a look later. sometimes they will start at roughly the same time. first andsec started reportedly gathered documents and interviewed people. my understanding is that the doj did not make their request until about one month ago. they followed a little bit behind but not much. joe: theoretically, what would be the bar for something that would cause the doj to ramp up the investigation or bring charges down the road? what would be the kind of thing they would have to discover looking into the company? thomas: what we're talking about here with the department of justice is a criminal violation of the federal securities laws. any section of the federal security laws can become a criminal charge by adding the component of willfulness which is fairly high. what the doj would be looking for is the harsh types of intentional

the sec is basically saying hey, you didn't have this locked in.a: tim, thank you for weighing in. we saw this coming, we reacted this way as soon as the tweet came out on this program, tim hagen, thank you. coming up price to win, boeing snagging a billion dollar contract, we will tell you about it when we come back. i'm sitting down with ceo of delta airlines edward bastian is here. ♪ ♪ ♪ this is the angel oak. some say the oldest living thing east of the mississippi. it's weathered countless storms. battered, but never broken, it stands for the resilience within us all. .. each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. maria: thanks for joining us. i am maria bartiroma and it is friday, september

the sec says.. musk grossly mislead shareholders in an august 7th tweetsteven peikin/co-director of the secs enforcement divisionmusk's tweets were false and misleading. in the tweet.. musk said this.. "am considering taking tesla private at 420-dollars. funding secured."tesla has been publically traded since 2010...going private means current shareholders would have a chance to sell their stocks at a higher price..the sec says.. that tweet drove up stock prices.steven peikin/co- director of the secs enforcement divisionat the end of the trading day on august 7th, tesla stock closed at $379 per share, up more than 6% from its price just prior to the initial tweet.the sec lawusit alleges that musk lied to shareholders..because according to the commission.. there is no evidence that musk had secured the funding to go private at that dollar amount. stephanie avakian/securities and exchange commissionat the time he made these statements, musk had not secured funding for the proposed transaction. to the

and next, elon musk is under pressure with the sec suing him for misleading investors.iers in asia. rishaad: join us, we will have a tv , you can send us instant messaging on our shows, that is tv on the bloomberg terminal. ♪ ♪ rishaad: teslas board says they have full confidence in their ceo, despite the sec accusing him of making misleading and fabricating statements about taking the company private. yvonne: the regulator is also working on track to fun some at to serve as an officer of the company. we speak to our media editor to talk about a little bit more about this. we have seen the study decline in has less shares, close to 12% down today, given elon musk's importance to tesla. some say that he is priced into the stock. how much more could it fall? >> that is right, this is not a company priced on its earnings, it is priced on sentiments toward elon musk and it is plunging given the sec action. what we do have come a as we look at the history of the shares early this month, they fell as low as $263, trading now there after hours, but in april, they were

it is personal with the sec and elon musk, but not with investor losses. do they pressure tesla to sell and what would the amount be? erik: you are exactly right. the big bucks will be in investor lawsuits. there are already been some files including a class-action from one of the shorts who really got burned here that will be big danger. those lawsuits are class actions and against tesla the company is just against musk. other than the fear that the value will plummet if he is tossed out. david: how long would that take? give us a sense. are we talking years or how long will there be a court ruling saying, mr. musk, you can no longer be ceo? erik: i don't think it will take years. this is not like the antitrust cases where you have to dig up economic spurts and do surveys and tons of boring stuff. a lot of the stuff is on the record. chart about good the stock prices. i think they can move to try out quickly. the only thing they have is what was going on with the fund that supposedly was going to finance it. company, perhaps a more normal company, the boa

the sec's action is unjustified. stocks fell more than 13% after the news in afterhours trading. that translates to about $9 billion in market value disappearing and just musk's stake alone down $1 billion. ebay is offering wireless service if you buy a secondhand phone on their website. you can get a prepaid plan as an additional option in the items listing. 0 days of unlimited wireless through red pocket mobile for $29 with an option to upgrade to annual plans. marcus and laura, what is more interesting to you, losing $1 billion in a day or getting a cell phone plan on the internet? >> billion dollars is a really bad day at the office. >> thanks, eric. >>> new for you this morning, we all know that sharp objects and liquids are not allowed on airplanes but marijuana. if you ask lax they're saying that packing pot is okay. now travelers can bring small amounts with them, but stow khan busine cannabis at your own risk. pot possession is a federal crime so tsa agents could turn you over to local authorities and the pot policy at other airports may differ. >> 4:43 right now. >>> vi

. >> thank you all, when we come back the sec suing over now famous tweet about taking tesla privated it mean for unconventional ceo in the future with electric car company next. ♪. >> the securities exchange commission suing tesla coo elon musk for fraud alleging he misled shareholders with tweet saying he secured funding to take his company private sec also seeking to bar musk from serving as officer or director of any publicly traded company ening reign at company he helped found 15 years ago ago redact with dan henninger kim, kim did -- musk deserve the sanctions from s. >> i don't think so this is overkill to certain degree by government did he make a mess of things yes, but i think what is lacking here is any proof that he was intentionally trying to mislead investors or he was trying to hurt short sellers or manipulate the stock price ought to be the bar, by the way, if i wasso government taking action against elon musk tesla would i rather see them takeaway subsidies companies get. >> we have gone round with musk on that he doesn't like subsidies but his exorcise use them tha

. >> thank you all, when we come back the sec suing over now famous tweet about taking tesla privateconventional ceo in the future with dear foremothers, your society was led by a woman, who governed thousands... commanded armies... yielded to no one. when i found you in my dna, i learned where my strength comes from. my name is courtney mckinney, and this is my ancestrydna story. now with 2 times more geographic detail than other dna tests. order your kit at ancestrydna.com >> the securities exchange commission suing tesla coo elon musk for fraud alleging he misled shareholders with tweet saying he secured funding to take his company private sec also seeking to bar musk from serving as officer or director of any publicly traded company ening reign at company he helped found 15 years ago ago redact with dan henninger kim, kim did -- musk deserve the sanctions from s. >> i don't think so this is overkill to certain degree by government did he make a mess of things yes, but i think what is lacking here is any proof that he was intentionally trying to mislead investors or he was trying

a week before that the sec sent out those subpoenas.in about six to eight weeks the sec wrapped up an investigation that included taking depositions, sending a wells notice where you give the target a chance to say, don't charge me. and filing the paperwork. that is extremely fast. that means they believed they have got this guy nailed and they think it is an open-and-shut case on this one issue. remember there is another outstanding issue whether the company was misleading investors about the timing of its various products, its various cars whether they come out on time but on this thing i think they have him nailed. this is the stuff we broke today here at fox business first to report that elon musk was offered a time-limited ban from the securities industry. i heard it was two years, where he would not be ceo or chairman of tesla for two years. someone else would have to come in. he could potentially end that arrangement, something that happened with her insider trading stuff. he turned it down. and he turned around and hired two agg

getting back to tesla, sec is, indeed, suing elon musk for fraud, who is here theresa goody, former sec theresa, musk was offered a settlement, he rejected it. now, he's going to battle, he's going war with the sec. to me that spells big trouble for him, what say you? >> i think so too and from my understanding he was offered a pretty sweet deal given complaint that the sec has launched against him, he didn't have to admit and couldn't deny the allegations but he didn't have to admit them and there was a nominal fee, he could be the ceo but not the chairman for a couple of years that was the pretty sweet deal that he let go and he still has the possibility of criminal charges looming over him so -- stuart: i remember the case of jordan belford, he rejected a settlement and as he rejected it the sec went after him big time, is there a parallel here? >> i think so. the sec has increased charges against him. now they are barring from him director or an officer of a public company indefinitely is what the sec is going for now. so that's a lot harsher than original settlement that he was off

for the dojcommon to run a parallel investigation to the sec. the doj would look at whether any criminal fraud laws were broken which would require some criminal or intent to deceive investors. a lot of times these things can take several months to play out. if anything is found, you get into the next stage of, what evidence is there, who knew what , potential fines for the company. if there was anything found. one issue is how broad this investigation could go. tesla said today they have received queries from the justice department and were hoping they could answer all of their questions, and that this will go away. yet, we have seen in the past month the chief accountant for tesla abruptly resigned. that is not just something the sec will be asking about but the doj would want to know the story. emily: a number of departures from tesla. max, do you think this new criminal investigation will have an impact on tesla operations which are already under pressure? will it have an impact on buyers? max: the core tesla fans will not be dissuaded by th

paul: sec suing elon musk for fraud over now famous tweet about taking tesla private.could mean for the unconventional ceo and his future with the electric car company next. paul: security exchange commission suing tesla elon musk for fraud this week alleging that he mislead shareholders with august tweet saying he secured funding taking electric car company private and seeking to bar musk from serving as director from any publicly-traded company effectively ending reign at his company he helped fund 15 years ago, dan henninger, kim strassel and mary anastasia o'grady, kim, did musk deserve this sanction suit from the sec? >> no, i don't think so, this is overkill to a certain degree by the government. look, did he make a mess of things, yes, but i think what's lacking here is any fruit that he was intentionally trying to mislead investors or he was trying to hurt short sellers or manipulate stock price which ought to be the bar of this. by the way, if i was going to see government take any action against elon musk i would take subsidies accounts these days. [laughter]

the sec makes it clear he didn't talk to anyone.p to its eyeballs. werethe south africans doing it on the hidden condition that he built a large plant in south africa, and i don't think the company can afford to do that, nor is it the proper place for tesla to build its cars in a world filled with trade war's right now. so i think they are not in a situation where it is feasible to raise the billions of dollars necessary to take this company private. tom: thank you so much. listening to all of this, barry eichengreen of berkeley. it speaks to innovation in american manufacturing excellence. the president screams about finding an american switzerland, almost, where we nostalgically go back to what we work. you've said for years we won't do that. how dire is it we lose our exceptionalism in manufacturing processes? >> i don't think it is all about manufacturing anymore. >> you said that for a long time. productive's,ut well-paying service sector jobs, and we have to pay people for them. people are going to have to work with artificial

. >> thank you all, when we come back the sec suing over now famous tweet about taking tesla privatenventional ceo in the future with i'm ken jacobus, i'm the owner of good start packaging. we distribute environmentally-friendly packaging for restaurants. and we've grown substantially. so i switched to the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. that's right, $36,000. which i used to offer health insurance to my employees. my unlimited 2% cash back is more than just a perk, it's our healthcare. can i say it? what's in your wallet? >> the securities exchange commission suing tesla coo elon musk for fraud alleging he misled shareholders with tweet saying he secured funding to take his company private sec also seeking to bar musk from serving as officer or director of any publicly traded company ening reign at company he helped found 15 years ago ago redact with dan henninger kim, kim did -- musk deserve the sanctions from s. >> i don't think so this is overkill to certain degree by government did

elon musk suttles with the sec. it is a holiday quiet start in asia. markets are closed in hong kong and for the rest of the week will be closed in china for the national golden week holiday. trade here in australia on account of labor day. let's look at how the day shaping up across the rest of the region. let's get over to sophie in hong kong. sophie: futures pointed to a mixed start as they take off a new quarter in the region. new zealand stocks under pressure at the start of october. off by a third of a percent. with hong kong and china closed monday, will not gotcha -- get much reaction from the mainland. when it comes to what is happening in japan, we see futures nudging higher ahead of the third quarter. corporate sentiment may have hit a ceiling. also this week, investors will be watching for the first follow-through from the boj on its plans to cut super long bond buying. we will see if there is any reaction to the closure of rail and air travel, because of a typhoon brought tokyo to a standstill. in korea, they could start off october on a s

i mean, the sec has to send a message.ust to, you know, put that out. his board didn't even know about it. paul: no, his board didn't the know about it, turns out he didn't have secured funding, dan. >> well, you know, there's an old saying you pays your money and you take the your chances, and i think that's what a lot of investors are doing with tesla. they think this guy's a genius, all right this and he probably is in many respects. as another old saying is, he's like all the other nuts except he was right. [laughter] look, this is a publicly-held company. the sec has got to enforce its regulations. perhaps they should create a separate category of company where investors can say we're investing in this guy, we don't care what he does, we want to get rich. that's not the same as investing in procter & gamble or apple. paul: but the former ceo of theranos, elizabeth holmes, she's been indicted for fraud, and she was only ten years as a director and officer. elon musk, if he succeeded, would get banned for life. >> this

the sec says.. musk grossly mislead shareholders in an august 7th tweetsteven peikin/co-director of the secs enforcement divisionmusk's tweets were false and misleading. in the tweet.. musk said this.. "am considering taking tesla private at 420-dollars per share. funding secured."tesla has been publically traded since 2010...going private means current shareholders would have a chance to sell their stocks at a higher price..but the sec says.. there's no evidence that was set to happen.stephanie avakian/securities and exchange commissionat the time he made these statements, musk had not secured funding for the proposed transaction. to the contrary we alleged he had not even discussed key deal terms including price with any potential source of funding within hours of the tweet.. tesla trading of the tweet.. within hours within hours of the tweet.. tesla trading was halted.. but musk's claim had already driven stock prices up. steven peikin/co-director of the secs enforcement division at the end of th

the sec says musk never had any discussions without side investors.k called the suit unjustified. in a statement he wrote, i have always taken action in the best interest of truth, transparency and investors. >>> new figures released today show last winter's flu season was the worst in decades. 80,000 americans died including 108 childr 180 children and 900,000 hospitalized. they recommend flu shots for ssn popation hs and older. was vaccinated last season. we're going to be right back. >> announcer: this portion is sponsored by principal. investment, retirement, insurance. >>> all right. that is the cbs evening news for tonight. much more about this historic day on our 24-hour streaming news service cbsn. first thing tomorrow on "cbs this morning." i'm jeff glor in washington. we leave you now with some of the most memorable images from this day. good night. >>> on the broadcast here under oath, christine blasey ford says she is 100% sure she was sexually assaulted by brett kavanagh. and under oath, the supreme court nominee says he never sexually as