is that fair, stewart kohl? >> it is, judy. we collect money from pension funds and endowments for colleges and foundations and the like and firms like the riverside company invest that into, as josh says, mostly healthy companies with the objective of making those companies a bigger and better over an extended period of time so that companies become more valuable so that they can be sold then eventually for a higher price which allows us to generate attractive returns for those colleges, universities, foundations and the like. >> woodruff: but you agree it's mostly healthy companies that are invested in? >> yes, there's a subset, a segment of private eck we they focuses on troubled companies, companies that are struggling. i have a lot of respect for those firms. that's hard work and it's not something that the riverside company does but it is a small but important part of private equity. >> woodruff: josh kosman, you're critical of the way most, if not all private equity operates. why? >> most. and i have a lot of respect for

we have our own debate about that with stewart kohl. he's the co-c.e.o. of the riverside company, a private equity firm that manages more than $3 billion in assets. and josh kosman, the author of the book, "the buyout of america: how private equity is destroying jobs and killing the american economy." we thank you both for being with us. josh kosman, just so that we understand what we're talking about here, how big a role does private equity play in the u.s. economy? >> private equity firms own companies employing about one out of every ten americans. so they are hugely important. they're america's biggest employers and up until recently they've been largely ignored. and, judy, just one thing that i need to jump in and say, i think it's a fallacy and it's what the mitt romney defenders are trying to throw up in the air that private equity firms buy troubled companies. they're almost always buying profitable businesses, not troubled businesses. >> woodruff: well, that will be part of the question that i ask stewart kohl now. because let's have a basic unde

." >> tonight i talk to jon stewart about superpacs without coordinating with him! this is "the kohle report!" thank you, audience, please, please sit down. (laughter) nation, so much to get to tonight, but first i am calling on the superpac. i cannot coordinate with them, i can't communicate directly, but i can speak out as a citizen talking to you and i'm calling on them not to run vicious character assassination ads adst impugn and borderline slander any candidate if in any way those ads could be traced back to me. (laughter) >> jon: what did he say? it's so obtuse. i just wish we could communicate directly and clearly. it's so frustrating. i wonder, is "american idol" on? ♪ i got the moves like jagger, i got the moves like jagger... ♪ (cheers and applause). >> jon: i tell you what, dog, if you're going to try christina, you've got to bring it. hey, what's on b.e.t.? >> nothing's on b.e.t.! >> jon: fine! not working! get rid of this eve and everything. i just... i feel like i've got to call the lawyer for my superpac. >> not before i call the lawyer for the exploratory committee.

lost ground in recent years to rivals such as macy's and kohl's and plans to change its store layout and bring in new brands like martha stewartng now, first lady michelle obama is ask youing the need for a healthy diet. these are live pictures from florida are where the first lady is touring the largest hispanic owned food company in the u.s. the first lady is on a nationwide campaign for nutrition awareness. we told you yesterday she was introducing new healthier guidelines for school lunches around the country. >>> your time is 8:44. other top stories, san francisco sheriff ross mirkarimi has a new lawyer to defend him against domestic violence charges. late yesterday, defense attorney robert waggener announced he is parting ways with mirkarimi, but did not say why. lydia stiglich is taking over as mirkarimi's lawyer. >>> in berkeley, fire overnight damaged two downtown restaurants. it happened on kittridge street about 9:30 last night. no one was hurt. the cause of the fire is still being investigated. >>> and today state regulators are expected to approve some new rules to encourage more production of zero emission cars.