knight capital group asked the securities and exchange commission for special help. exchange rules set strict limits on when trades can be reversed. in knight's case, the rules say trades made by mistake that are more than 30% off of the real market price can be undone. knight wanted more trades busted, but regulators said no. the message was clear. once you make a trade, unless something has gone incredibly wrong. your word is your bond. you make a trade, you are expected to live up to it. people familiar with the matter say regulators are sending a clear message to investors: the rules on erroneous trades are meant to provide markets with certainty and they worked in this case. another message: firms need to have incentives to be careful and what happened to knight is a big incentive. >> right now i think that every i.t. manager is going to his boss and saying, "give me a bigger budget so i make sure this isn't going to happen here." >> reporter: but that does not reassure critics who fear wall street firms have created computer systems they can't control. >> it is

sense of security by calling the work that they do or it's the same thing happens with regulators the regulators are undermanned and under resourced take the securities and exchange commission for instance there are only four thousand people including maintenance workers at the securities and exchange commission there are thirty five to thirty eight thousand cops in new york and white collar crime and financial regulation requires a large enormous amount of resources and is much much tougher to investigate than regular blue collar blue collar crime crimes of violence and the regulators just simply don't have the manpower to effectively police the capital markets of the united states so therefore the gentleman that built the broken earlier is correct there is a false sense of security that's given to the investors but it's fact that they're regulators presence and there's also that is what it is pressing. ok so let's we have regulators and auditors i guess what i'm most concerned is in these situations where you have customers that have their money in segregated funds where it's getting tapped into where that's never supposed to happen or where you have too big to fail firms

claims," valukas means there is sufficient evidence for the justice department or the securities and exchange commissions against top lehman executives, including c.e.o. richard fuld, for overseeing and certifying misleading financial statements, and against lehman's accountant, ernst and young, for failing to challenge lehman's numbers. >> valukas: they'd fudged the numbers. they would move what turned out to be approximately $50 billion of assets from the united states to the united kingdom just before they printed their financial statements. and a week or so after the financial statements had been distributed to the public, the $50 billion would reappear here in the united states, back on the books in the united states. >> kroft: and then, the next financial statement, they would move it overseas again and file the report, and then move it back? >> valukas: right. >> kroft: it sounds like a shell game. >> valukas: it was a shell game. it was a gimmick. >> kroft: lehman misused an accounting trick called "repo 105" to temporarily remove the $50 billion from its ledgers to make it look as though it was

. >>> the securities and exchange commission chair woman is reviewing the rules that ban remarks about the company's prospects around the time of facebook's ipo. many sued that they obscured the weakened growth forecast ahead of the listing. facebook stock lost half of its value. >>> bart shut down a main entrance to the powell street station. a closure that will last three years. it is by the apple store. it is part of the subway construction project. passengers will have to go to the fourth and market street entrance. signs will be posted during the closure. >>> while forecasters are busy tracking tropical storm isaac, the red cross says more bay area volunteers are heading there. the american red cross says 11 more volunteers are leaving for alabama, louisiana and mississippi to set up shelters. people who live around new orleans spent today getting ready for the storms. the tropical storm isaac is in the center of the gulf of mexico and our chief meteorologist bill martin says tropical storm isaac will strengthen before it comes ashore as early as tomorrow. >> most likely strengthe

the securities and exchange commission alleges murray made $235,000 in illegal profits by acting on insiderormation. he settled with the courts agreed to pay the charges, but not admitting or denying the allegations. the former oriole was honored last week with a statute. for the first time this season, the baltimore ravens got to play a preseason game. we cannot legally show you the highlights just yet. the detroit lions are leading the ravens 20-9. johnson is the star of the game, 111 yards and a touchdown. the nation's oldest newspaper geared toward african-americans is celebrating a milestone. publishers released its 120 anniversary edition. so war veteran john murphy senior founded the afro-american newspaper on august 13, 1892. it was used to fight civil in justice and promote positive images of african-americans. >> when you step back and really start to digest the actual coverage, the events, and many began to realize that it is not just history. it is a chronicling of the entire black community for the 20th century. >> among the most decorated contributors, langston hughes. a warni

. >> reporter: the securities and exchange commission and the big board are investigating what caused the glitch, knight capital blamed a "technology issue." it even went so far as to tell its clients to, "route listed orders away." traders here at the big board say it led to chaos at the open. >> one or two stocks i guess you can write it off to just an anomaly, but at some point it just seemed like there was way too many similarities between the patterns in how these stocks were trading across the floor, that there was just something that wasn't right that was happening. >> reporter: the problems at knight capital led to trading halts in five big board stocks. molycorp, corelogic, kronos worldwide, china cord blood, and trinity industries were halted in early trading, after big spikes in volume. they eventually resumed trading and went on to normal closes. knight capital stock plunged almost 33% or $3.39 to $6.94 a share on that trading glitch, and composite volume on the stock surged to over 60 million shares. floor traders call it another black eye for wall street. >> when investo

under the settlement reached with the justice department, the securities and exchange commission the rk attorney general's office and the new york state insurance department a.i.g. acknowledged that it had deceived the investing public and regulators. further from the "new york times." mr. greenberg who was removed by a.i.g.'s board last ma march remains under investigation by the securities exchange commission. greenberg settled with the sec for $15 million. and a judge in written opinion found evidence to deceive investors originated with greenberg. they even covered greenberg settlement saying, ex-a.i.g. greenberg settles fraud charges with the sec. so mr. langone factors matter. these cases were absolutely correct, important and went to the heart of the type of corporate fraud that nearly destroyed our economy. now langone also made noise about fabrication of evidence. >> there is a case recently heard, of court of appeals in new york state where the judge is allowing the case of a docket to go forward because the judge says there is indications that spitzer and his staff fabricat

securities and exchange commission. google will also restructure one-third of motorola locations worldwide by closing or merging around 30 facilities. google says the payroll cut is aimed at refocussing the company on more profitable smartphone and tablet businesses. motorola has long been mired in the red. google's over $12 billion acquisition in may marked its first attempt at producing hardware. the move was also seen as a way for the company to obtain motorola mobility's approximately 17,000 patents. >>> some creditors of bankrupt japanese chipmaker elpida memory are submitting to court their own business restructuring plan. elpida is japan's sole manufacturers of dra memory chips. it filed for bankruptc protection earlier this year. in july, elpida board members decided to rebuild under leading u.s. chipmaker micron technology. however, some of elpida's creditors are not happy with the plan. they announced on tuesday they'll file competing restructuring proposals with the court. the creditors, including foreign inve

the securities and exchange commission says wells fargo did not do enough research or inform the customers just how risky those investments were. >>> pennsylvania's controversial voter id law will be in place for this november election. a judge tonight ruled he would not halt the measure. that law penned by state republicans will force voters to show a valid photo id. democrats argue the legislation will make it harder for the elderly, disabled, poor and young adults to vote. >>> speaking of the campaign, mitt romney now accusing president obama of waging a campaign based on division and hatred making the comment on cbs this morning. president obama's called mitt romney up hinged, but the president did not respond directly as he was wrapping up his bus tour through a key battleground state. >> reporter: first lady michelle obama joined the president on the third and final day of his bus tour through iowa. >> president barack obama. >> reporter: president obama told supporters in the battle ground state he will protect the middle class. >> four years ago i promised to cut middle class taxes

. >> reporter: the securities and exchange commission, the top stock watch-dog, today called wednesday's trading problems with knight capital "unacceptable." the s.e.c. will convene a roundtable meeting in the coming weeks. for it's part, knight worked to regain investor and customer confidence. it's share price continued to see big price swings, gaining 58% on very heavy volume today. knight has to have a certain amount of money available to it in order to do what it does, match buyers and sellers in the market. and the company reportedly arranged a short term line of credit today to stay in business. at least one big customer is returning. t.d. ameritrade today said it will resume routing trades to knight capital. the online brokerage was one of several customers that stopped doing business with knight after the company experienced troubles with a trading software update wednesday morning. >> tom: long before wednesday's trading glitch, trading volumes indicated retail investors have all but left wall street. all next week on "n.b.r.", we'll take a closer look at what's happened to inv

the securities and exchange commission says wells fargo didn't do enough research or inform the cups hers of the arrive -- customers of the risks involved. getting a little payback there. >> thanks, jess. >>> our time right now is 4:42. coming up, there's a new high- tech threat targeting mobile phone users. >> it's called mishing. we'll show you how you can avoid becoming a victim in this. plus, we'll take a look the at question of the morning. we'll be right back. >>> good morning. welcome back to 9news now. coming up on 4:45 this thursday morning. of course that means we're looking forward to the weekend. you say a front will be ahead of us going towards the front. >> we'll be on the northern side of the front which means the cooler side of the front. the only question mark we have is if the front doesn't get far enough south, will it throw a few more clouds and shower our way over the weekend. we're talking about temperatures potentially only in the low 80s for highs as opposed to the 90s. i think that's a pretty fair trade-off. no issues whatsoever weather wise. humidity levels

meanwhile the new york stock exchange says it's talking to a securities and exchange commission to settles it broke the rules. some complaints may have been given private data a split second faster than public. >>> an english bank is accused of using its american offices to launder $250 billion for iran. regulators claim standard chartered bank left the u.s. open to financial terrorism. the bank denies it. >>> as expected, knight capital cheated death monday getting a $400 million infusion. its ceo tells cnbc he doesn't know how last week's crippling software glitch happened. >>> the founder of best buy wants to buy it himself offering more than $8 million to take the chain private. >>> when the iphone first came out one of the hot features was that built in app for youtube videos. now apple says the app will no longer be a standard feature on iphones and ipads. >>> kv pharmaceutical filed for chapter 11 bankruptcy after struggling to hold on to its share of profits from a drug that helps prevent premature babies. >>> green mountain coffee is being blamed for lower earnings at another com

increase in trading right after the bell was unusual so they contacted folks at the securities and exchange commission to look into what was happening and then market regulators were called into action but by the time the regulators figured out the source of these massive nonsensical trades the damage had already been done in just forty five minutes of trading that wednesday morning knight capital lost more than four hundred million dollars and had it not been for a cash loan a few days later the entire firm would have gone bankrupt destroyed by a forty five minute trading debacle so you would think some trader at the firm would lose his job over making these boneheaded trades right yeah except these bad trades weren't made by a person they were made by a machine sea knight capital is chalking up the massive trading loss to a software glitch that caused computers belonging to the firm to go rogue to spin off a multitude of bad trades that would have taken the entire firm down that day had regulators not shut down trading forty five and forty five minutes into the mess. thing about wall street nowadays

securities and exchange commission as a regulator of registered investment advisors who manage about forty trillion dollars congress is considering the move as a cheaper alternative to increasing resources for the f.c.c. since eight hundred seventy seven million dollar budget is paid by the brokers it regulates and. the article puts in to you know compares forty three million dollars in two thousand and ten in fines by finra the s.e.c. one billion and five so you see what that cover of austerity is causing even further of a spiral of deflationary collapse literally they're playing with fire the present revolve discovering the guys on t.v. with the long blonde hair like bar killed. someone for your book. all right stay sober thanks so much for being on the cars report thank you max don't go away much more coming your way. couldn't take three. more charges. arrangement three. three. three. the old freeboard video for your media project a free media oh don carty dot com. more news today violence is once again flared up. these are the images the world has been seeing from the streets of

for example one of the higher salaries that you could get at the securities and exchange commission if you were almost the senior head of the head of enforcement about one hundred sixty thousand dollars a year that by the way is what a starving warrior will get if she graduates from harvard law school one of the prominent firms so the lower of money is certainly there but the permission is problem. currying favor with that future employer or advantage in your knowledge of how the agency works for that future employer certainly is is a problem that is a problem for public policy cannot i'm going to have more about that how this revolving door does affect public policy well. we see it focused mostly on the on the banking business and there are are two dynamics that have led to was in effect regulatory capture and if i can just step back for a second the wall street crash of two thousand and eight happened in part because our laws were deficient but almost as much because the regulators using the laws that existed were not zealous enough why weren't these that was enough and the true poss

securities and exchange commission as a regulator of registered investment advisors who manage about forty trillion dollars congress is considering the move as a cheaper alternative to increasing resources for the s.e.c. since eight hundred seventy seven million dollar budget is paid by the brokers it regulates and you know and the article puts in to you know compares forty three million dollars in two thousand and ten in fines by finra the s.e.c. one billion five so you see what that cover of austerity is causing even further of a spiral of deflationary collapse absolutely they're playing with fire the present revolt is coming and the guys on t.v. with the long blonde hair like bar killed. diamond for your bar. server thank so much for being on the cause report thank you max don't go away much more coming your way. see good leverage or kirby was able to build the world's most sophisticated robot which on fortunately doesn't give a darn about anything tunes mission to teach creation why it should care about humans. this is why you should care what you're only on the r.-g. dot com. mi

security guard's mother and grandmother have to say. >>> a hall of fame college football coach is charged with unares a ponzi scheme and cheating investors. today the securities and exchange commission sued former coach jim donen. court documents claim he raised $80 million for what he claimed was a liquidation business, but he only used $12 million to buy merchandise. authorities say the rest was used to pay returns to other investors. the s.e.c. says he recruited investors using contacts he made as a coach and espn commutator. >>> florida a & m is pushing for a settlement. robert champion died last november. authorities say he was beating to death during a hazing rituals. 11 members are facing charges, while two are charged with misdemeanors. they have ought pleaded not guilty. champion's family sued claiming university officials did not take enough action to start hazing at the film. >>> prince philip is expected to remain in the hospital for now. the palace says he's responding well, but probably needs a few more days in the hospital. this is his third hospital stay in the past eight months. the 91-year-old prince was hospitalized in june for blade ser infection. in decent he un

securities and exchange commission for says not right now. is not making any changes to money-market fund regulations not because it doesn't want to but philip angellides is with her on this and we are asking why he is calling wall street unrepentant and and reform. you see us, at the start of the day. on the company phone list that's a few names longer. you see us bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy. lending more so companies and communities can expand, grow stronger and get back to work. everyday you see all of us serving you, around the country, around the corner. us bank. liz: 34 minutes left we are at or very close to session highs. dow jones industrials charging ahead. a lot of this has to do with headlines out of europe. whether they could institute bans in which spanish or italian bonds which may get into trouble where they would jump in and bring them -- and working for the markets. you have the s&p up eight at 14-10. we were worried whether we

. >>> a filing with the securities and exchange commission spent yahoo stock tumbling.ares of yahoo fell 3.2% in trading to $15.50. >>> the labor department said the number of jobless claims dropped, down by 6,000. they predicted the number would rise by 5,000 and say it indicates a trend of modest hiring. on wall street today, the dow is down 10 to 13,165. the nasdaq is up 7 at 3,018. the s&p is up 0.58 at 1,402. >>> we don't think he was checking in but an unlikely guest visited a resort. you can see the bear wandering at the rosort -- resort. he isn't the first to be an unwanted guest. three weeks ago a bear was found in a kitchen and another found eating popcorn. officials are blaming the current drought for the unexpected bear appearances. >>> a ktvu investigation turns up an alarming trend at nursing homes. what is happening more often here than at other nursing homes nationwide. >> temperatures soared today, coming up, the hottest day of the weekend and the next significant cooling trend that will bring relief to the bay area. cçrrú >>> a ktvu investigation found

this comes after they paid half a billion in a settlement with the securities and exchange commission over charges that it misled investors about subprime mortgages. but at this point, there is no criminal case. mike emanuel is like in washington, dc. any reaction from the senators that started this? >>reporter: some, and carl levin, and is republican accused goldman sachs of misleading congress and say they used abusive practices to gain. senator coburn did not comment but senator levin said they did immense harm to clients and helped create the crisis that nearly plunged us into a second-grade decision. whether the decision is a product of weak laws or weak enforcement, goldman sach's actions were deceptive and immoral but the justice department did not think it had enough to meet the burden of proof. >>trace: what is goldman saying? >>reporter: a spokesman said "we are pleased that this matter is behind us." at the white house, spokesman carney did not give us much. i have to rough you to the justice department. i have not spoken to the president about this. he is very focused on t

the securities and exchange commission are loaded with goldman people or want to be goldman people. >nail goldman or morgan stanley or ubs they know that job is not going to be -- >> bob: is there any way we can bust the guys? >> eric: change the rules. change the rule. if you are a regulator, you can't go to work for the banks. vice versa. >> bob: can we break goldman satchs apart? >> andrea: obama ran on. this cleaning up wall street. it's his justice department that said we are not going to do anything. his s.e.c. says we are not going to do anything. >> bob: you are not getting an argument from me. they should have been in jail a long time ago. >> greg: gibson is a small business. getting nailed for $300,000. they can't handle that. goldman sacks can handal anything. >> kimberly: worst justice department ever. >> andrea: no one is giving them anything to handle. we let them get away with it. we get stuck with the bill and bad mortgages. coming up, congress, congres congressman alan west is fighting back after an attack ad airs showing him punching an elderly white woman. >> where