securities and exchange commission and the commodity futures trading commission both nominated by president trump to jobs and confirmed by the united states senate last year have been facing some challenges how are they doing public citizens partly nailers will they get it and conservative t.v. and radio host steve balls are helpless or out in the global investor confidence which has dropped like a stone this year all that ahead but first we get a few at. the shanghai stock market has entered bear territory the shanghai composite index is now at a two year low having fallen by one point five percent in wednesday's trading at more than twenty percent since a high in january markets across asia also fell the gravitational pull from the shanghai exchanges fall with the hang seng down the percent the shans and composite index also fell by one point eight percent as did exchanges in australia and south korea the bearish turn in asian markets has erased an estimated one point six trillion dollars in value on paper at least according to the south china morning post telecoms have been particularly

now an oversite hearing with the chair of the securities and exchange commission jay clayton. he appeared before the house security and was asked about several issues, including updates to the voka rule. the process for initial offerings or ipos. and the potential use of block chain technology to protect financial data. this is two hours and 45 minutes. . >> final word. members are asked to take their seats. without objection, the chair is authorized to start recess of the committee at any time. and all members will have five legislative days within which to submit extraneous materials to the chair for inclusion in the record. the hearing is entitled oversight of the chair commission and i'll recognize myself to give an opening statement. i think we all know that the scc has a well established 3 part mission to include investment protection, maintenance of fair, orderly and efficient market, and the promotion of capital formation. unfortunately in the recent past, this latter aspect of the mission has received short trip. that's why i'm very grateful to chairman clayton for his

in may, the security and exchange commission, barred two eb-5 companies from selling securities after it was discovered the company's president and manager fraudulently raised $22.5 million in eb-5 capital from chinese investors. according to the security and exchange commission, these two companies were supposed to use to raise money for the development of a condominium complex. instead the company's president and his wife stole more than $12 million in order to purchase homes for themselves. finally and also in may, two maryland residents were charged with defrauding 31 immigrant investors and using money intended to create jobs after hurricane katrina. for personal gain. he indictment delames the -- claims that the duel contracted with new orleans to get an investment fund but instead use the money to buy themselves vacation and rental property. several months ago, my staff was briefed by officials from the department of fraud detection and national security director ate for a cb-5 assessment. unsurprisingly, the report found that the program is susceptible to ponzi schemes and fin

securities and exchange commission and the commodity futures trading commission both nominated by president trump to jobs and confirmed by the united states senate last year have been facing some challenges how are they doing public citizens bartlett nailers will take us through it and conservative t.v. and radio host steve ball very helpless sort out in global investor confidence which has dropped like a stone this year all that ahead but first we get a few at. the shanghai stock market has entered bear territory the shanghai composite index is now at a two year low having fallen by one point five percent.

federal reserve board, the federal deposit insurance corporation, and the commodity futures trading commission, and the securities and exchange commission, issued a proposal that appears to give banks a pass and allows them to continue what congress clearly wanted to stop. now the s.e.c.'s analysis of the proposed rule says "we recognize that the proposed amendment would increase moral hazard risk related to proprietary trading, while allowing dealers to take positions that are economically equivalent to positions they could taken in the absence oh it have 2013 final rule." so i'm wondering why the s.e.c. would be supporting changing to the volcker rule that will increase moral hazard risk. i'm also concerned about the s.e.c.'s regulation based interest. congress specifically gave the s.e.c. the authority to impose a fiduciary standard for brokers. but the s.e.c.'s proposal does not do that. so i going to urge chairman clayton to ensure that the s.e.c.'s final rules protect investors and retirement save herbs from unscrupulous actors. mr. chairman, it's been reported that you have a plan to advance the package of capital mark

wednesday the f.d.i.c did it the next day your agency did it this morning as the security and the securities and exchange commission is scheduled to do it tomorrow i should say the control of the currency also did it last wednesday those are the five ok and what should we be looking for if people want to comment for example on this whether or not they agree with you and i are in sync on this one but people have other views how do they comment what do they do they have to get the proposal first right get the proposal the easiest way is regulation it'll open a search page and you can mention the volcker rule it actually hasn't appeared in the federal register yet it'll be several days maybe even a week before that happens and it should be self-evident of where the where you can comment and needless to say the government officially welcomes comment public citizen members comment and we reach out to our members and more than one hundred thousand commented last time in the rule that remember that you proposed and we certainly welcome that this should not be a rule that's fashioned and opined on simply by banks this is t

the securities and exchange commission sued holmes and the company process petition she settled in march of this year. stay with abc 7 news at abc7news.com for the latest developments in the straej case. download the app to get updates sent to your phone as soon as new developments break. >>> it was an unwelcome sight for people living in one napa county neighborhood this morning. they walked outside to find cars had been trashed. it happened in american canyon, a city north of vallejo. our news anchor eric thomas is live with more. eric. >> reporter: we're on hallmark lane in american canyon. this car window is not rolled down because it's a sunny warm day. this window is gone. shot out overnight. let's show you another one. there were several cars along hallmark lane this toyota same thing window is not down because of the heat. it's down because the window was blown out. now, there seemed to be no rhyme or reason to the vandalism and the people responsible for it weren't particularly choosey. >> popular they're doing it for fun. >> but his family isn't lasting and neither is anybody e

securities and exchange commission and the commodity futures trading commission both nominated by president trump two jobs and confirmed by the united states senate have been facing some challenges how are they doing public citizens partly nailers will they get through it and conservative t.v. and radio host steve malzberg helpless or out in global investor confidence which has dropped like a stone this year all that ahead but first we get a few at. the shanghai stock market has entered bear territory the shanghai composite index is now at a two year low having fallen by one point five percent in wednesday's trading at more than twenty percent since a high in january markets across asia also fell the gravitational pull from the shanghai exchanges fall with the hang seng down the percent the shans and composite index also fell by one point eight percent.

all of this three months after ies was sued by the secur and exchange commission for what it called massiveud. i today'ictment accuses holmes of engaging in a multimillion dollar sfreme to d investors. at its peak, they had a value of $9 billion and claimed to have a revolutionary system that would chan blood testing industry. that claim, though, has since been widely called into question. >>> a court has approvedells fargo's $142 million class action the agreement compensates customers who were part of the bank's fe account scandal the money will go to anyone that claims an account was opened without theironnt. wells fargo calls it a significant step fward for the bank. >>> and citigroup agreed toay $100 million for charging a benchmark interest rate. the suit filed by 42 state attorneys general alleged citi manipulated the rate as a way to increase its profit at the expense of investors. s to price everyt from credit cards to mortgages. >>> ay, take yourself back one year ago. it was then that amazon said it would buy whole foods. the announcement sent a chillh throhe sector, pressuring g

administration is tossing out regulations here's a new one beginning this year the securities and exchange commission will begin requiring public companies to disclose and compare their c.e.o.'s pay with median employee pay according to research published in the wall street journal those surveyed think the ideal ratio top to bottom from the big boss to the assembly line is seven to one the actual number is three hundred to one and those polled say they could shun companies where the top dog is paid so much more than its employees and they could favor companies where wages are more equitable consumers are also sensitive to gender pay inequality consumers who are democrats are more passionate about it and republicans tend to be indifferent what's the big picture on income inequality let's ask our teams mr business boom bust host part chilton welcome good to be here fantastic to be here i used to manage a union shop a radio station here in washington where everybody got the same pay raise every contract but in many workplaces individual product to vittie is rewarded with structured incentives if you can

the border us says securities and exchange commission chairman j. clayton speaking at a conference in new york said companies raising money through digital token sales shouldn't have any illusions that the government will treat them differently than firms participating in traditional stock offerings he added that the market deserves close attention because the f.c.c. has already seen examples of fraudsters fleeing the country after persuading u.s. investors to back their i.c.a.o. is nine billion and i say oh so far in twenty eighteen any idiot who tries to court cross a border with cash more than ten thousand is stupid because it's just going to be stolen by just saying if they wanted to get over the border done successfully they should have gone h.s.b.c. master of the art you know they have a special boxes they created for the mexican drug lords. billions of dollars and that i don't even allegedly because you know the british people make you say allegedly before everything regulators but in fact h.s.b.c. has admitted it they admitted it to eric hol

federal reserve board, the federal deposit insurance corporation, and the commodity futures trading commission and the securities and exchange commission issued a proposal that appears to give ranks a pass and allow them to continue on what congress clearly wanted to stop. the sec analysis of the proposed rules said, "we recognize that proposed amendment would increase moral hazard risk related to proprietary trading by allowing dealers to take positions that are economically equivalent to decisions they could have taken in the absence of the 2013 vital rules. the secwondering why would be supporting changes to the volcker rule that will increase moral hazard risk. i am concerned about the sec's regulation based interests. the proposal does not do that. i am urging that the final rules protect investors and savers from unscrupulous actors. it has been reported that you have a plan to advance a package of capital markets ills to the house for. you and i have not talked about this, i have not been consulted on what might be included in such a package. based on some of the bills, the committee has marked up to date, i remain co

but in march the securities and exchange commission called it an elaborate year's long.ud holmes persuaded investors to sink hundred of millions of dollars into her company. "wa street journal" investigative reporter broke that story. he has a new book out chcling the company's collapse called "bad blood, secrets and lives in a silicon valley startup." good to have you here. >> thanks for having me. he what was the game-changing technology that company was pitching? >> so elizabeth claim to have invented technology that could run the full range of laboratory ytests, which iou speak to experts can range from a few hundred tests to a few thousands, from a drop of blood or two nicked from the fingeran d to return results to doctors and patients very quickly and at fraction of the cost of other laboratories. this would have been game-changing technology because no one had been able to run that many tests off a tiny sample of blood. >> and it was rolutionary because down the line eventually walgreen's and safe way signed on as well and became clients. your book though raised

the us securities and exchange commission decided to investigate toshiba in 2016 after the firm was involveda $1.3bn accounting scandal a year earlier. the taxi hailing company uber goes to court in london today hoping to win an appeal to keep its licence to operate in the city. last year, the transport regulator tfl refused to renew uber‘s licence because of concerns about public safety and security. the compa ny‘s approach to reporting criminal offences and how its drivers were getting medical certificates were cited for refusing permission to operate in london. china has freed up billions of dollars in its banking system to cushion the blow of a slowing economy and a possible trade war china's central bank cuts the amount of cash reserves banks need to hold — it will free up over 100 billion dollars for commercial banks to lend to boost spending. monica miller is in singapore. how far do you think this move will go to help it? they have got to try something. this volatile economy that we are in in this environment, china is trying to add a cushion for the months ahead. there is a 5.5 mont

wednesday the f.d.i.c did it the next day your agency did it this morning as the securities securities and exchange commission is scheduled to do it tomorrow i should say that control of the currency also did it last wednesday those are the five ok and what should we be looking for if people want to comment for example on this whether or not they agree with you and i are in sync on this one but people have other views how do they comment what do they do they have to get the proposal first right get the proposal the easiest way is regulations and it'll open a search page and you can mention the volcker rule it actually hasn't appeared in the federal register yet it'll be several days maybe even a week before that happens and it should be self-evident of where the where you can comment and needless to say the government officially welcomes comment public citizen members comment and we reach out to our members and more than one hundred thousand commented last time in the rule that remember that you propose and we certainly welcome that.

says securities and exchange commission chairman j. clayton speaking at a conference in new york said companies raising money through digital token sales shouldn't have any illusions that the government will treat them differently than firms participating in traditional stock offerings he added that the market deserves close attention because the f.c.c. has already seen examples of fraudsters fleeing the country after persuading u.s. investors to back their i.c.a.o. is nine billion and i.c.a.o. so far and twenty eighteen any idiot who tries to court cross a border with cash more than ten thousand is stupid because this is going to be. just and saying if they wanted to get. over the border done successfully they should have gone h.s.b.c. master the art you know they have a special box boxes they created for the mexican drug lords. billions of dollars and i don't even allegedly because you know the british people make you say allegedly before everything regulators but in fact h.s.b.c. has admitted it they admitted it to eric holder and t

says securities and exchange commission chairman j. clayton speaking at a conference in new york said companies raising money through digital token sales shouldn't have any illusions that the government will treat them differently than firms participating in traditional stock offerings he added that the market deserves close attention because the f.c.c. has already seen examples of fraudsters fleeing the country after persuading u.s. investors to back their i.c.a.o. is nine billion and i say oh so far and twenty eighteen any idiot who tries to court cross the border with cash more than ten thousand is stupid because it's just going to be stolen by just saying if they wanted to get. over the border done successfully they should have gone h.s.b.c. master the art you know they have a special boxes they created for the mexican drug lords. billions of dollars and that i don't even allegedly because you know the british people make you say allegedly before everything regulators but in fact h.s.b.c. has admitted it they admitted it to eric ho

the f.d.i.c did that the next day your agency did it this morning as the securities securities and exchange commission is scheduled to do it tomorrow i should say that control of the currency also did it last wednesday those are the five ok and what should we be looking for if people want to comment for example on this whether or not they agree with you and i are in sync on this one but people have other views how do they comment what are they doing.

. >> earlier today the chair of the securities and exchange commission testify before an oversight hearing on capitol hill. he was asked about updates to the vocal rule, the process for initial public offerings, and the potential uses of technology to protect financial data. this hearing runs about two hours 45 minutes. >> members are asked to take their seats. the chair is authorized to declare a recess at any time. all members will have five legislative days to submit extraneous material for inclusion. i now recognize myself for 3 1/2 minutes to get an opening statement. i think we all know the sec has a well-established three part mission. unfortunately in the recent past the latter aspect of the mission has received a short trip. i am very grateful to chairman clayton for his leadership and devoting more time and attention to the capital formation mention -- mission. although our economy is clearly red-hot today there are recent signs we must confront. number one, as recently as 2016 entrepreneurship, the provision of startups reached a 40 year low. we know that ipos have been on a sli

i c o's alone william head man the director of the division of corp finance at the securities and exchange commission gave a smart new want speech yesterday which was the fourteenth of june declaring the ether the cryptocurrency of the if they are network is not a security and so is not subject to the requirements of us securities law he said quote putting aside the fund raising that accompanied the creation of either based on my understanding of the present state of either the a theory network and its decentralized structure current offers and sales of ether or not securities transactions and as with bitcoin applying the disclosure regime of the federal securities laws to current transactions an ether would seem to add little value but so as you say showing their hands of they're completely pliable when it comes to plying the securities laws of thirty three thirty four so they are now you know bendable that is a testament to how many people on wall street are participating in either you know this guy who made two hundred million dollars trading and there are no grab novogratz right g.'s a wall stree

the chair of the securities and exchange commission testifies tomorrow. he's before the house financial services committee. our life kovrnl begins at 10:00 a.m. eastern, online at cspan.org and on the free a p pp. >>> the cspan bus is is in alaska this week forhe 38tstop . we're in juneau with the help of gci. >> we're thrilled that cspan, one of f the long time programming partners, has chosen to visit alaska trt first time in 22 years. as part of its tour. so big shoutout to span. so for decades, gci has offered cspan to our customers because we believe in the network mission to open to unfiltered trusteded media resource and gci proudly supports cspan's effort to help inform and educate the nation on policy, politics, history and current events. now gci and the cable companies around the nation make cspan possible. there's no government mandate, no public funding. no advertising. cspan is truly a public service funded through fees paid by gci and other companies. it calls itself cable's gift to america and now, thanks to our long standing partnership wi

and then the securities and exchange commission said you're actually selling the security and you reason registered, the how wie test applied to a ico, people putting their money in intend to make money, it's very clearly a security something that's just a technology, blockchain in general, we'll actually see decentralized apps coming along that's going to create another wave of how i don't how to classify this. >> judge, the s.e.c. has made that comment now, for instance, exchanges, coin base, genesis -- >> are they investment firms >> well, does the s.e.c. and/or finra or finsin. >> that's who they think is regulating them because they've called themselves commodities. i think it's interesting that the irs treats it so clandestine. let me make this point, it's collectible. it's not a security, you actually have to pay for it as if you sold a classic car. >> or a comic book >> rerlgt regulators are goingy this is a security i think there's got to be some harmonization. >> the only ones taking solace in this is the looming side sales. these are bagels the technology is great, but there's

security and exchange commission on civil enforcement actions and with the fbi and department of justice on criminal actions. one recent example. this february, we terminated the status of a regional center for failing to promote economic growth. through uscis, doj and fbi collaboration, two people were charged with a scheme to defraud investors. they were indicted on eight counts, including wire fraud. we collaborate with ice on eb-5 investigations and have an agreement to expand access to the holdings and services of the financial crimes enforcement network. we are working more closely with partners across the intelligence community. this helps fill gaps in law enforcement databases when we conduct vetting. we look out for potential terrorists and spies, and technology thieves. we continue to ratchet up efforts to improve administration and address owner ability. we have hired additional fraud detection and national security officers to conduct eb-5 site thi visits, we have expanded national security checks to cover regional centers and individuals participating. restructuring eb-5 off

and rejected a pardon of michael manyn, under the urging of of wall street and the securities and exchange commissions run by arthur levin. vonnie: it is interesting to know if it would make a difference or if it would impact him because he has been going about his life. erik: it would make a difference because he has been seeking this ever since he left prison in 1993. he has hoped for a pardon because he was accused and ultimately convicted in a guilty plea of crimes that he maintains he did not commit. it would make a difference to him on a personal level at least. vonnie: what was he most responsible for? you say the modern capital structure, but really everything -- there waso this a lot of his financial innovation involved in all of these products. erik: he did not create the cd oh, so you cannot pin that on michael milken. but he did create, prior to the emergence of the junk-bond as a financing tool, that is what milken is responsible for. the use of the high-yield bond as a financing tool -- there was very little in between. now there are multiple layers in the capital structure. subordinate

of various folks in the intelligence community and not too transparent, unlike the securities and exchange commissionpartsare several moving committees. very quickly, i would note former president obama used it twice in his entire eight-year term. president trump has already used it twice in just his first two years. david: we just heard about the correlation. let's talk about the causation. was going on the stock market right now? the correlation would suggest that stocks were trading off of idiosyncratic factors. that would suggest it is more of a macro issue. -- thely the element elephant in the room is the rumored announcement that the administrative going to put up walls in terms of foreigners investing. i am not sure the treasury secretary's tweet is supposed to be good news, saying we don't just not what china's money come up we don't when anyone else's either. then you referred to harley davidson kumal which i think is an interesting sort of beacon. if you -- davidson, which i think is an interesting sort of begin. you got this image of these guys riding harleys" to the inauguration. one of t

the securities and exchange commission then sued holmes and the company. she settled in march of this year. a theron oz story crossed over to pop culture as well bad blood secrets and lies in silicon valley start up published in may and there is a mf with jennifer lawrence set to play elizabeth holmes. stay with abc 7 news and abc 7 news.com for the latest developments in this case. be sure to they had the app to get the updates sent to your phone as soon as new developments break. >>> two young women at the south bay facing criminal charges accused of having sex with several minors. talia sisco and tina are accused of having unlawful sexual intercourse with 15 and 16-year-old business. tina was working as a teacher. carlos saucedo is live outside the courthouse with the details. carlos. >> reporter: well detectiving working this case have been able to identify three victims but say there is a fourth possible victim. and more victims could come forward. these are the so-called best friends facing multiple charges of unlawful sex with minors. 24-year-old ta

this time, the security and exchange commission says e bank took advantage of its brokerage clients holdingket-linked investments. that's a type of bond meant to be held until maturity. but officials say the bank improperly pushed clients to sell early, so it could rack up extra fees. wells fargo is now on the hook for a four-million-dollar fine, plus returning the ill-gotten profits. in the past, the bank admitted to opening fake accounts... charging car buyers for insurance they didn't need... and charging homebuyers for mortgage fees they didn't deserve. still ahead at 8 a warning tonight for families...after rattle snakes were found in one of their why one quarter of americans are not taking summer vacation this year. and next. a mother goes to the pharmacy to pick up medication...only to be denied. why the pharmacist refused to sell the legal drug. (vicki) a woman in arizona says a pharmacist denied her a medication to end a pregnancy...because of his own religious beliefs. nicole arteaga went to walgreens to pick up the misoprostol... she had no problem dropping off the prescription -

. >> the securities and exchange commission, the office of the comptroller of the currency.t's an alphabet soup of agencies. they all have to submit their proposal for public comments. this is a particularly controversial rule. they will give banks, investor advocates, anti-wall street people like elizabeth warren months to weigh in on this. we might not see a final rule until the end of the year or potentially into 2019. >> let's go to china because it is a very big day for the country with more than 200 mainland stocks making their very long-awaited debut on msci's emerging markets indexes. this move will open up the secondary equity market to investors. >> what is the feeling like there? >> certainly in places like shanghai, there is enthusiasm from investors that we have been talking to about this. beyond china, we have heard from the likes of jamie dimon saying he thinks that despite the moves being relatively limited, it will help to educate people about chinese stocks. we spoke to james gorman yesterday, who said this is positive and would closely or more closely inte

congressman, the most highly paid federal employees are in fdic, the securities and exchange commission, national credit union administration and the comptroller conservancy. when you say $100,000, some of those people in those agencies are making 200,000 a year. the other thing you may not know is that those agencies bargain pay without a specific authorization from the congress to do so. >> okay, several months ago back in january i worked with chairman metals and others trying to write a letter trying to request information from various agencies on official time. it took months and months and months, over five months and then when we finally got a response, it was so difficult to compile staff and countless hours to get the information in a way that it could be remotely understandable. we are still going through it. do any agencies really keep track of official time usage to your knowledge? >> some agencies have as part of the time and attendance system the employees go into their system and put their hours. if you are union steward or official, one of the blocks is official time. >>

securities and exchange commission, at least from my point of view a better decision in that they declaredhat the administrative law judges who are appointed judges not article 3 judge, judges confirmed by the senate by hired by executive branch have to be appointed by president or one of his senior deputy department heads. >> yeah, exactly. i mean, this was -- this was a victory against the administrative state, the judges are often appointed by managers inside agencies like the sec, but those judges have huge financial authority over private citizens who come before them in cases brought by agencies like the sec. there was no real political accountability there and if you're going to be brought before a judge, the judge ought to be accountable politically to someone and this judgment will help a lot with that. >> and jason, the last case, carpenter, cell phone wiretaps now, cell phone, what the supreme court said, 5-4 that law enforcement people are going to have to get a warrant to be able to get certain cell phone records. >> yes, and it's going to tie the hands of law enforcement a li

securities and exchange commission, at least from my point of view a better decision in that they declaredthe administrative law judges who are appointed judges not article 3 judge, judges confirmed by the senate by hired by executive branch have to be appointed by president or one of his senior deputy department heads. >> yeah, exactly. i mean, this was -- this was a victory against the administrative state, the judges are often appointed by managers inside agencies like the sec, but those judges have huge financial authority over private citizens who come before them in cases brought by agencies like the sec. there was no real political accountability there and if you're going to be brought before a judge, the judge ought to be accountable politically to someone and this judgment will help a lot with that. >> and jason, the last case, carpenter, cell phone wiretaps now, cell phone, what the supreme court said, 5-4 that law enforcement people are going to have to get a warrant to be able to get certain cell phone records. >> yes, and it's going to tie the hands of law enforcement a little