who is at the s.e.c. is in charge of making sure investigations are done properly and leads are followed up on? >> i would say the heads of the enforcement division are responsible for that >> now, and i -- i agree with you, but didn't we have inspector generals of the department during this period of time? where were they? >> there was an inspector general that came in prior to me. >> where were they? >> i mean, we had a 16-year period here from 1992 to 2008. where was the inspector general? >> there was never a complaint brought to the inspector jenal's attention. the office was not aware of any issue. in fact, the office of inspector general can't go out and do a poncey scheme investigation. >> you have reviewed this and in the 16 years, there was in the one complaint at the inspector general's office about what madoff was doing. >> that's correct. that's critically important. let me ask you one last question. isn't it something to consider that -- that an effective and objective audit of madoff's would

the s.e.c. shandled the investigation into bernie madoff, calling it a number of m missed students. a new book called "too good to be true: the rise and fall of bernie madoff," joining us in just a moment is the author. first an update from c-span radio. >> the labor department says new jobless claims fell slightly last week while the number of people receiving unemployment benefits rose. a weaker performance than economists had expected. and according to the associated press, job market recovery will be long and bumpy. >> more on the don't ask, don't tell policy on gays in the military. dick durbin says they have little time for this issue. representative barney frank and openly gay member of congress, says there is a better shot next year to overturn the ban. >> global post, an international news website, reports that the united states agency for international development has opened an investigation into aelzs that its funds for construction in afghanistan are ending up in the hands of the tali

the s.e.c.'tally arbitrary and capricious. rakoff's right to hold the deal up for that reason. he is also right to ask the question that we've asked on this show. why should bank of america shareholders, in which my charitable trust is one of them, get dinged by this fine rather than the people who put the bonus deal together? i don't see the sense in that. bank of america shareholders are the ones who got hurt by the 3.6 billion in bonuses. why should they be the ones to be punished here? they're the victims. i realize corporations are set up for the liability to go to the shareholders. there's not much unfederal judge can do about that. but i'm glad he stopped the deal for this reason alone. but here's what makes no sense to me at all. this is what outrages me beyond belief. it's that rakoff con cloouz the real traftty here was the reliance on the lawyers by bank of america and merrill. if the companies relied on lawyers, he says, why not go after the lawyers? as far as i'm concerned, this insa

the s.e.c. thinks they're fine. pro shares of the company i think is responsible for the bulk of the bad ultrashort sector efts. from what i can tell, the efts nearly took us to the brink. because the worst of them, being the ultrashort financial pro shares, i think it did immense damage to the banks. therefore, i think it may have cost taxpayers billions of dollars in bailout money. pro shares needs to atone. they're just trying to make money. it's fully s.e.c. they shouldn't have been approved. it's the s.e.c.'s job to approve these things. everybody is going to try to slip something through. they've got to stop it. most people think these short ef efts is a way to hedge against the sector. the longer-term is sector is a measure of the volatility of the index. that could make you no one money in a period of the financials. it got hammered. these things exist and unfortunately can allow day traders to take advantage of stocks, giving them the ability to bang an entire sector down quickly. great for bear raiders. tha

captioning sponsored by wpbt >> paul: the s.e.c. admits it failed to protect investors from bernie madoff and the biggest ponzi scheme in history. the comments come as a taped madoff phone call surfaces. with the swindler bragging about how easy it is to fool regulators. >> susie: president obama ignites fresh debate over health care reform. tonight we talk with health care expert steven ullman about the realities of getting reform passed this year. >> paul: after four years at the helm of morgan stanley c.e.o. john mack announced today he's stepping down. but he isn't going very far. >> susie: reviving the family business with whacky commercials. tonight our signature series "all in the family" introduces us to the smithe brothers of walter e smithe furniture. >> paul: i'm paul kangas. >> susie: and i'm susie gharib. this is "nightly business report" for thursday, september 10th. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. thank you. 7//& >

. >> did the s.e.c. bring with them people who might have sophisticated knowledge to provide advice or direction or any type of assistance? >> we weren't aware of that happening in the course of these investigations and examinations. when question -- we spoke to people from the outside, they said they would be willing to look at that. we wanted to encourage private sector folks to explain to the s.e.c. individuals how to go about and conduct this due diligence. >> the investigations occurred over this 16-year period. that is an extensive length of time with many, many folks involved. soy don't direct this toward any one individual, but we did have from 2005 and 2008 christopher cox who had this management philosophy of light-touch regulation. was there any sort of equivalent in the investigative branch of being sort of "light-touch" investigators for fear of inappropriately interfering with firms? so on and so forth? >> i didn't find that was happening with the madoff examinations and investigations. >> i

they must be destroyed by the s.e.c. their the sec and they put salt on them, provably kosher, so they never come back. the uptick rule can't work if they get extra leverage for shorting stocks. which is another reason why the etf's need to to go. crackdown on the the real law breakers please. not just clearing your docket like when you slapped you're fine on bank of america. that was slapped down by a good federal judge. but the bad guys should be the one who is pay not the shareholders. especially in a case like this, where the bad guys took the none from the shareholders that warrant supposed to. stop trying to clear the docket. they need to take their eye off the prize where, the investigation shows us the prize front running was the wrong one. it was a ponzi scheme and they were looking for something else. front running? that was the greatest ponzi scheme in history. they approved any rule change to level the playing field to make it equal. it's an sec that gave bank of america executives a $33 million slap on the wr

he's now heard on tape in 2005 talking to executives about how to get around the s.e.c. more with the details. >> you can hear them, too, online. how do you deal with these s.e.c. guys? just laugh them off. he knows how they work. this tape is from 2005. madoff still in his hey day, but the s.e.c. wants to ask his biggest investors, fairfield greenwich, so he gets on the phone with two executives to get their stories straight. >> obviously, this never took place. >> it was subpoenaed by the massachusetts secretary of state which just reached a settlement. this tape was exhibit one. madoff tells the executives whatever you do, don't tell them you have anything in writing. no that he was worried at all. these s.e.c. guys, he says they're pushovers, most will be working on wall street within a couple of years. so this was in december, the holiday season of 2005. at one point, he puts the call on hold for another call, some charity asking for money. he says if i get another solicitation for charity, i'll kill myself. we have the full tape on cnbc.com. >> and it's worth a lis

the s.e.c., in tapes released by the massachusetts secretary of state. here's chief investigation tifr correspondent brian ross. >> reporter: in this phone call in 2005, madoff can be heard carefully coaching a witness who is about to be interviewed by the s.e.c. >> obviously, first of all, this conversation never took place. >> reporter: madoff advised the witness, the s.e.c. lawyers could be outsmarted. >> you don't have to be too brilliant with these guys because, you don't have to be. >> you have madoff as it were, talking about how inept the s.e.c. was, he was talking about how to fool them. >> they ask you a zillion different questions, and we laugh, and we say, are you writing a book? they work for five years at the commission, and then they become a cpliance manager at a hedge fund now. nobody wants to stay there forever. >> reporter: is s.e.c. inspector general found madoff could have and should have been stopped 16 years and billions of dollars ago. the s.e.c. today offered an apology,

i have seen the s.e.c. products leak any of the ultra etf traversies out that have abused individual investors because this system is so unfist skatd that it didn't understand how these ultra etfs work. it still doesn't. boy is this s.e.c. unsfis indicated. this is the organization that didn't have anyone on staff who understood how madoff reportedly was making his money trading options, because if it had, the s.e.c. would have known he was lying immediately as the option market doesn't work neglect like the way that madoff told them it did. madoff had to be laughing every time he met with anyone from the s.e.c. both have contributed to the market meltdown, and ultimately ended up cost taxpayers hundreds of billions of dollars in bailout money. s.e.c.'s fault. this is an s.e.c. that gave bank of america executives a slap on the wrist to be paid by the shareholders for hiding $3.6 billion in bonuses. they're digging the shareholders for that money when it should have been right to the executives? i don't get

. >>> coming up, a new report, how many times the s.e.c. had the chance to catch billionaire swindler bernie madoff and blew it through their own incompetence. has anything changed that will prevent another bernie madoff from slipping through their fingers? >>> also ahead, the michael jackson memorial cost, california, millions of dollars who pays for that? who picks up the tab? tonight's ceremony at forest lawn cemetery. >>> and new insights on senator kennedy's feelings on chappaquiddick in his auto biography. we will have that ahead on "it's the economy" on msnbc. i never thought i would have a heart attack, but i did. you need to talk to your doctor about aspirin. you need to be your own advocate. be sure to talk to your doctor before you begin an aspirin regimen. you take care of your kids, now it's time to take care of yourself. okay. you were right. these healthy choice fresh mixer thingys, they taste fresh... say it again! say it like, "mmmm, these healthy choice fresh mixers taste freshh!!" they taste fresh... wait. what are you doi

the s.e.c. >> obviously, first of all, this conversation never took place. >> reporter: madoff advised the witness, the s.e.c. lawyers could easily be outsmarted. >> you don't have to be too brilliant with these guys because you don't have to be. >> you have madoff, as it were, basically talking about how inept the s.e.c. is, because he's talking how to fool them and how to do it. >> reporter: the s.e.c. inspector general found that madoff could have been stopped 16 years and billions of dollars ago. the s.e.c. offered an apology and a promise to do better. >> we apologize to the madoff investors and to the american public for not fulfilling our mission. there's no doubt about that. but the best thing we can do to make that meaningful, is to make sure we do better going forward. >> you have a lot of excuses. but no really results. and the same people are basically there. heads should roll. you should start all over. >> reporter: brian ross, abc news, new york. >>> a bolivian national says a divi

the s.e.c. says there was no kind of inappropriate influence by members of the madoff family. you might recall that mr. madoff's niece shana madoff had a romantic involvement with an employee at the s.e.c. at the time who later became her husband but the s.e.c. basically saying the agency wasn't influenced at all by that relationship. they say madoff kept two sets of books and one of them was on his person at all time. one that he also kept on a private computer. lastly, that madoff trades were not verified by a third party. the s.e.c. went in there and all they had to do was go to the depository trust corporation to ask for records as to whether or not mr. madoff was actually doing these trades. instead they asked mr. madoff for the records which he gave. of course which were false. here's some other headlines. there was a complaint to -- made to the s.e.c. that one investor said there was a co-mingling of funds from an ultra wealthy late investor with mr. madoff and madoff's firm. and that also

thexaminers and he knew how to keep them off e track that would expose the ponzi schem >> reporr: the s.e.c. has cleaned house. the new head of thenforcement divion, robert khuzami, promises to do better. >> simply sted, we failed in our fundamental ssion to protect investors, we must contue vigorously to reform the way we operate >> reporter: the agency sa has beefed up aff training, now quires 3rd party verificatio of trades and has revamp the way it handl tips. former s.e.c. attorney job frenkel worriethe agency is alady going too far to clean up its image. >> i he seen that and my coeages have seen that the agencys acting in a heavy nded, bordering on improper mann in how its moving some of these cases very quily. >> reporter: t s.e.c. says the doff mistakes shouldn't mar the 75 year historof the agency. but clearlit already has. some lmakers are considering beefing uphe agencies budget, but someay fundamental chges, not more money are what's needed. stephanie dhue, "nightly business report", waington. >> paul: we're no loer on the brink economic disaster. but treasury sectary timothy i

we had the nasd and the s.e.c. e exchange goes public, now we have finra, which is the coming of the new york stock exchange and asb. should that all be part of the s.e.c. and put more resources into the s.e.c. so there's one example. there's been a lot of talk about the cftc, and should it be part of the s.e.c. i know there are a lot of issues. i don't quite understand all of it. but that should be considered.. the other thing i would like to see, it seems to me there needs to be some change in the rating agencies. for the street to go out and pay to get ratings on complicated securities and then turn around and sell them to investors, that's probably worked all right, but i would rather see a system where investors pay for the ratings. maybe that should be discussed. >> the mentality of the investor, do you see it strong right now? >> i think there's a lot of cash on the sidelines. and investors think they've missed a big piece of this. they're trying to figure out when do they enter the market. and i do think inv

now the s.e.c. is preparing to go to trial and preparing to do it vigorously, they say, in a statement just out. this case would go to trial now on february 1st. and the next thing that will happen, according to a schedule that bank of america and the s.e.c. have both agreed on-s that bank of america will have to file a response to the s.e.c.'s complaint. later this week, september 25th. so on friday they will have to respond to it. and then this case would be set to go to trial. and what a trial that would be. on february 1st. on whether bank of america misled investors about the losses at merrill lynch, the bonuses that were to be paid out ahead of the merger closing. that trial would take place on february 1st, and the s.e.c. says it's going forward, in their words, vigorously. melissa? >> all right, scott. karen, you wanted to get in here? >> well, i just think the s.e.c. has such egg on their face over the settlement being thrown out as well as a number of missteps they've made. so i think they

maachusetts state regulators released a tape of phone call madoff made,ragging about how ea it was to scam the s.e.c. stephanie dhue repor. >> reporter: madoff kn how to work theecurities and exchange commission. in a phone call from decber 2005, madoff cched the chief risk officer of thfairfield greenwicfund about how to handle t s.e.c. before an interview with agency examins. >> we run thugh this all the me, these guys come in to do books and records examinion and they a a zillion different questions, and we look at em sometimes and we laugh a say what are you guys writing a book. these guys, theyork for five years at t commission, then they become compliance manager at a hedge fund no or they go work at proprietary tradg desk, nobody wants tstay there foreve >> rorter: the s.e.c. fielded six complaints and compled three examand two investigations over 16 yrs. but in all that timeinspectors never verified any of madoff trades through ahird party, instd trusting his word. spector general david kotz says the agency so never investiged whether madoff was running a ponzi scheme. >> he used his knowled

the s.e.c. t i'm not the soc -- the s.e.c. real mouth, full. it's a power share. it's the power shares db, crude oil, double short etn. and the symbol here is dto, dave, tom, over. like should be over. this one's what's called an exchange-traded note -- how did they come up with this garbage? it works -- it's like an etf only it works like a bond, not a stock. which means it's exposed to the credit risk of the company that issued it, invesco. that's probably just the tip of the iceberg. that's the first problem. you can't hold it for more than one day or volatility will start eating into your returns. or making your losses into bigger losses. but i think it has additional problems, too. the fund tracks a basket of futures contracts to bet against oil prices and it's got a big target pain on the back of its head by the regulators. so the regulators might decide to increase position limits or impose restrictions on the number of future contracts. a fund can own. and now it really damage you if you

it's on the road in the s.e.c. it's coming off a four-hour game against south carolina and his dad's got a big smile and just looking at the clock like all of the georgia people are, his dad, charles, looking on. hoping that that 2:10 evaporat evaporatinevaporates pretty quickly for arkansas. we predicted 48-45, we didn't quite get it, did we? we undercut georgia's ability to score, i guess. dennis johnson back deep. he is a game-changer, though, if you give him a little bit of an avenue. already one touchdown return on a kick this year. this one high and really short. taken at the 29 yard line and again, good field position as seth got a good return. >> on abc, texas and texas tech, going back and forth, taylor potts, to we sehorns on move, t put the thing away. we hit five-minute mark. remember, all-weather delay in auburn, west virginia starting fourth quarter on espn2 and don't forget, college football final after spoer"sportscenter" tonight. >> brad: 2:05 remaining. ryan mallett, in the pocket, some pressure ag

the s.e.c. ys it's going to vigorously pursue its lawsuit against the bank and will meet a new deadline monday, which is also probing the deal. a senior bank executive will be meeting with the chair to see if the bank can meet the committee's needs while protecting the bank's attorney-client privilage. it's up 25% this year. some big investors saying the bank will repay the t.a.r.p. money. of course yesterday, the bank did take one step to loosen its ties from the government, paying $425 million for a government guarantee of risky assets, but never officially signed off on by the bank. >> there was so much into this story, but the s.e.c. says now they're going to vigorously prosecute, but only because the judge said he aided the deal. they were penalizing the shareholder. >> i guess you have to wonder at this point if the s.e.c. would actually pursue charges against the executive. could be a possibility. >> i'm sorry. i just feel like we are so looking backward here, guys. and yet, merrill lynch

it's not just an indication of how sufficient the s.e.c. is. it's talking about or it reveals how much parity we have. let's not forget. the same georgia team that went out to stillwater and lost to oklahoma state. we have usc losing to washington. i mean all of -- and tennessee staying in there for awhile with florida. apart from florida, who even had a little bit of trouble today at home against tennessee, can we say that there's any one team in this country that is absolutely dominant especially when we're looking at texas tonight down 3-0 against texas tech. who is that team in the country right now? >> again, a reminder -- >> are they that dominant. >> point well taken. >> thank you. georgia, that game, a reminder going on over at espn. we're trying to get you ready for an 8:49 kickoff. as you can see plenty of hot air here to keep you company. kick off at 8:49. er: "it looks like nothing else on the road right now," proclaims "gq" magazine. did you see that? the interior "positively oozes class," raves "car magazine." "slick and sensuous,"

. >> and how the economists and so on, and the s.e.c. ways attracted young people right out of college for the examination function and they are no match for anyone who is sophisticated and who is also intending to commit a fraud. is it a problem where they want the jobs in practice so they are just not as hard on people that are delinquent as they should be. >> i don't think so. the s.e.c. throughout the history has been an incredibly tough agency. people have complained that it's been too tough. this is obviously not part of that. but that is the reputation that the s.e.c. has always enjoyed. what i think really it amounts to is that this cannot be done on a government compliance or examination program. i recommended that we adopt a new approach in which every portfolio manager, like a madoff, would have to be examined, either yearly or every other year by. >> after proposing it and to pursue and and this is as embarrassing for federal agents. >> this is as embarrassing as it gets and they were not tough in this instance but what i am s

now, do i know right now that the s.e.c.'s ready to charge him or they've concluded they're going to charge him? no, i don't know that. i can just tell you that it was kind of interesting that i reported that last week and this happens now. they are clearly saying that -- the backstory at least according to people close to lewis is this. he went on vacation, spent a couple weeks on vacation, came back, thought about it, thought about all the stuff that was going on, obviously talked to his family, and decided that enough's enough, he's got the board in place, he's retained part of -- they want to repay part of the tarp money by the end of the year. apparently, they repaid some other government program. from what i understand they've exited the government loan guarantee program. whatever that is. i'm not quite sure. banks have been bailed out so many times it's hard to figure out exactly what they owe the government. but the tarp i know they haven't paid back and they plan on paying it back by the end of the year. and that thi

however, if the s.e.c. reet's top cop, the securities and exchange commission although they haven't acted like that in the last ten or 15 years, if it is a charge by s.e.c., they are reopening their investigation. judge raykoff said it hurt shareholders and lewis may be in the renewed s.e.c. investigation, if he gets charged by the s.e.c. that is when you'll see ken lewis in all likelihood according to people at b of a, you will see him resign. how far are we away from that? quite a while on both cases. cuomo's office is deposing directors. that will take time. the other question is, maria, i know this is something you have looked at a lot, is this fair? i will say this. i have been fairly critical of ken lewis. i will tell you this, in the midst of that insanity of last year, if you think a disclosure might be a little off, if you think that there wasn't pressure put on ken lewis to do the deal because if you didn't do the merrill lynch deal the global financial system would have come to a halt. i really do

he's coaching a potential witness on how to trick the s.e.c. doff starts out quote, obviously, first of all, this conversation never took place. and you just got hear the rest of it. >> plus could terrorists really buy nuclear bombs on the black market and sneak them no an american city? just how realistic threat is that on the eve of september 11th we're looking in to frontal boundary of loose nukes. >> we begin the hour with an in depth look at the president's speech, the politic, the policy, what it really means and what's really at stake. president obama had two big objectives last night trying to convince you that his plan is the best way to fix our broken health care system and the end stalemate in congress. he extend an olive branch to his rivals but said if you don't want to roll up your sleeves and get to work get out of the way. >> this is the plan i'm proposing. it's a plan that incorporates ideas for many of the people in this room tonight, democrats and republicans. i will continue to seek common ground in the weeks ahead, but know

green, freshman of the year in the s.e.c. offensively last season, he's a big-timer there, number 8. now it's cox, in shotgun with three wideouts. they keep it on the ground and samuel to the 24. jerico nelson on the tackle. defensively for arc, you'll see it on top of your screen. wendtle davis of captain of the defense had a big play and malcolm shep hard, defensive lineman we talked about. >> todd: we talked about challenge for georgigeorgia's d, pressure on ryan mallett. the challenge for arkansas' defense and front in particular, is to hold up against the run, they gave up yards rushing last year. >> brad: looks like a passing situation for the georgia bulldogs on second and eight, they'll flip it out, wide receiver screen to green. and he tried to hurdle a guy to get down close to the 20 yard line. they're going to spot him out at about the 22. let's look at ga good's impact players. there is one of them already. he's caught a couple of balls on this drive. rennie curran, you'll never see a better one, playing linebacker

madoff was able to swindle billions of dollars from investors over the course of 16 years without the s.e.c. ever detecting the fraud. the former inspector general admits the s.e.c. did receive complaints that raised red flags, but there was never a full investigation. current s.e.c. officials pledge to the committee today they will fix the problems that led to madoff frau new audiotapes surfaced. in them, bernie madoff can be heard coaching someone on how to fool the s.e.c. >> you don't have to be too brilliant with these guys. you don't have to be, you are not supposed to have that knowledge. you wind up saying something which is either wrong or, you know, just not something you have to do. >> madoff is now serving 150 years in prison. >>> still ahead on news4 at 4:00, a rescue team is called into help when a precious family pet wanders where it shouldn't be. >>> are you ready for football? the season kicks off tonight here on nbc 4. we'll have a preview. >>> welcome back. veronica johnson here. we have thicker cloud cover out there now. take a look outside. this is our skycam. overcast s

we needed more aggressive voices at the s.e.c., fec, the occ. this welter of federal agencies, people who came to wall street and said, wait a minute. that leverage is crazy. and it's kind of odd because everybody derided leverage in public but in private participated to the hilt. you look back at these deals and say, this is crazy. we needed wiser voices on wall street. this was sort of a disease that got into the bloodstream and the dna of wall street leadership. now, there were some who disagreed with it, who said, wait a minute, guys. we can't afford this. the more traditional old-fashioned investment banker said, wait a minute. this doesn't wok. >> warren buffett or -- >> yes. i love warren buffett. we all do. i think he always was a voice of modulation. we needed more of that and frankly less of the sort of hot dog, cowboy mentality that leveraged everything up, sent it out so that people would structure deals without retaining any of the ownership. if you want a technical answer, all of the securitization that was done, where you had the

he says, and i'm quoting here, "you don't have to be brilliant to fool the s.e.c.." transcript emerged as part of a settlement massachusetts reached this week with a hedge fund which fed investors to madoff. the trouble here, joe, is that you really -- i don't know if you have to be brilliant to fool the s.e.c., but it certainly can be done on the billion dollar level. that's what bernard madoff did. we will basically be hearing a lot more about how he conducted that scheme as this whole thing unfolds and the s.e.c. continues its investigation. back over to you. >> i guess it helps if you're willing to go to prison for a long, long, long, long time. >> reporter: i don't know if anyone sets out to go to prison for a long, long time. but unfortunately, the s.e.c. really had the wool pulled over its eyes on numerous counts. that's what we've heard as this whole thing has unraveled. >> didk you, rebecca anthu,yo rebecca jarvis. >>> ws 4 tcaayod isayng looki a jobs for you. sthooe'er jeob fare' at the corner. f ns corner. th is happening today from 10:00 a.m. to 3:00 p.m.

what happened here with less oversight from the s.e.c. and with mistakes that were made both in the private sector at places like bear stearns and others, was the system crashed. so if we had a different s.e.c., it might have made a difference? perhaps. if we had moved on the risks exposure of fannie mae and freddie mac, would it have made a difference? perhaps. but the main thing is, we were -- we had private institutions that were too heavily leveraged that were basically generating growth and income for themselves, and of turnover trans actions ha had no benefit for the underlying economy. >> should the deficit be a bigger priority then? >> i think yes, but the deficit will be a big priority, but it is very important that we not do what is now almost universally conceded that president roosevelt made a mistake when he started to bring the deficit down in 1937 before the economy had fully recovered. so what happened was, you couldn't really bring the deficit down because there wasn't enough revenue coming in. there was too much of a slow

all eyes will be on the key note addresses from fdic chair slowly that bare, chair of the s.e.c., mary schapiro and director of the nec, larry summers. that's your global stock watch. >>> coming up next, flirting with 0,000 again, the dow snapping a three-day winning streak last night sxa happy ending to the week now looks unlikely as futures trend downward. can we reach the ben mark level by the end of the month? stay tuned for a strategy discussion. these days every penny counts with everything you buy. every head. every bite. every gallon. every shoe. every book. every cereal. well, maybe not every cereal. but every stem. every stitch. every tune. every toy. pretty much everything you buy can help your savings account grow because keep the change from bank of america rounds up every debit card purchase to the next dollar and transfers the difference from your checking to savings account. it's one of the many ways we make saving money in tough times a whole lot easier. >>> welcome back to "worldwide exchange." the wall street journal reports that the u.s. federal reserve is proposing

the senate banking committee has the s.e.c. and neither wants to give up jurisdiction. my suggestion is let's form a special joint subcommittee of the two and merge the agencies. that would be a way to finesse the political problem and get to the right policy results. >> and the last time we spoke, you said that it's a mistake to give the federal reserve more power, right? >> i think it is a mistake to make the federal reserve the primary regulator of all systemically risky institutions. we can't identify all of them in advance, and the fed would be overwhelmed with trying to regulate so many different institutions. the fed should figure out and monitor what problems are, and then they should work with the existing functional regulators to cure that problem. that's a much more sensible approach. and it does not involve giving the fed so much power that congress wouldn't let it happen. >> well, what about this consumer financial protection agency? good idea? >> i think like a lot of things it's partially a good idea and partially a bad idea. the way it's written would hav

saban discusses the verbal battle between lane kiffin and urban myer and today's fall doubt between the s.e.c. coaches. yankees clinch a postseason berth and mark reynolds snaps his own strikeout record. >> well, "sportscenter" at this hour, the braves report bobby cox will retire falling 20910 season. cox agreed to a one-year extension after which he would be a consultant for the team. >> hi everybody. welcome to "sportscenter." larry king later on. you got the suspenders? >> not so much. works for you though. first though very interesting weekend at quarterback. >> when michael vick was signed by the eagles, you wondered how it would turn out. you can only imagine how michael vick must feel right now. this afternoon vick out at practice for the first time knowing that this weekend he is eligible to play at the chiefs. situation up in the air as donovan mcnabb continues to heal from that fractured rib. >> donovan will not practice this afternoon. he is making progress and we will see how he does as we go through this week. he is able to throw. not with great velocity or length, but he has th

the s.e.c. had the play and guess what? they forgot to enforce it. to me, that's part of this story and it goes along with too big to fail. right? you leverage it up, who's going to deal with those issue? >> that's right. more of the same isn't going to cut it. you could double the size of the s.e.c. and produce the same results. which is why we need to resist the temptation to just add more layers rather than getting at the heart of fixing the current regulatory system. >> so what's the first fix that you would do then, david, if you want to fix rather than layer up? >> we'd put 23 recommendations on the table earlier this year. credit a better management structure. streamline the divisions, give them more technology, turn around the incentive. it's to give an answer, even if it's no. i think you could create much more effective, nimble regulators. >> let them fail. isn't that the real vaccine to stop this from happening? you have to watch somebody go down and be broke and be afraid it's going to happen to you. >> it's like sending a ceo to jail for

the s.e.c.ing calls from charities and it's just annoying to him. listen. >> i'm sorry. any more solicitations for charity, i'm going to kill myself. >> he didn't kill himself, he just stole billions of dollars from a number of charities. this was fairfield greenwich, the biggest madoff feeder fund, preparing to answer questions from the s.e.c. in 2005 about the relationship with madoff. the s.e.c. was getting a little suspicious finally, and madoff said don't worry about it, i have these s.e.c. guys figured out. we deal with them all the time. >> it's a fishing expedition. >> right. >> that's what they do. okay. so, you know, they typically, you know, we run through this all the time. the guys come in to do books and records examination and they -- they whatchamacallit, you know, they ask a zillion different guess and we look at them sometimes and we laugh and we say are you guys writing a book. >> it was three years to the day from that phone call that madoff admitted to the scheme. the inspec

. >> bob: this auburn team 5-7 last year. 2-6 in the s.e.c. ut 4-0 in the season. >> mark: boy, in and out of the happens of starks. dot to help your quarterback out a little built. welcome, everyone, to the s.e.c. on espn college football prime time. a game that you've seen auburn come back from being down early a couple touchdowns. this one is complete. came right back to starks. starks pushed out of bounds shy of the 40 yard line. smith a high-school all american. >> bob: ball game. fourth downing and about three, west virginia obviously has to convert right here. >> mark: tough spot for the true freshman to come in. >> referee: please start the game clock. >> bob: with two teams i'm sure we don't have more mishaps. >> mark: fourth and three. needs to convert. picked off. josh bynes with the interception. another mountaineer turnover. great push. this crowd is wet. probably don't smell great but they are enjoying the heck out of it. the push by the defensive line. steps up in the pock just gets engulfed in the sixth turnover of the night and

the s.e.c., joe, had you a resolving door going on because you didn't have adequate regulations aboutistration and one of the things going to tamron's question that we need to stop. even -- >> i wish i had the time to respond! i wish so badly i wish i had the time to respond! >> joe, i wish you did but, julian has dominated. i can't let you talk any longer, julian, okay? you're taking up joe's side and point well taken and maybe we'll have joe on so he can have his official response to julian's comments but great one-sided conversation there, julian. thank you both. >>> is a killer on the loose at yale university? investigators are searching for clues after a body turned up with annie le was last seen. >>> gulf coast residents pause to make the anniversary of one year since the beating of hurricane ike. >>> prime time with jay leno. live in los angeles an hour ahead of jay leno's big debut. so i don't necessarily believe that anything is going to work but i was like, hey, this actually works. (announcer) only rogaine foam is shown to regrow hair in 85% of guys. i'll check it out and i

it's one of many investigations that the s.e.c. botched in the madoff probe. now back to the hearings. >> by the administration so can you enlighten -- >> i would be happy to walk you through again like i do in the substantial reports the fed and the financial stability oversight board has provided. i would be happy to do it, but i don't think what you're saying is fair. the virtue of these programs are you can see directly, not just how much money we're spending, where we're spending it, but what is actually happening to borrowing conditions. i'll give you an example. one of the most important things we did with the fed was this program called the term asset back lending facility. i'm be very brief. designed to provide a backstop of support to the lending markets critical for small businesses, for auto loan finance, credit card receivables, et cetera, and you can see in detailed evidence how much issuance has come with this program, what's happened to the cost of issuance, how much has been directly funded by these programs. >> mr. secretary, what you're aski

he was out there kind of coaching people along the way about what not to tell or how to deal with the s.e.c.. >> which is pretty good. legal advice if you're not bernie madoff. >> yeah, exactly. >> interesting. we'll continue to follow sthory. cnn's christine romans along with me on the set. thank you, christine. >>> later this morning, we'll expect to hear the call go out again for south carolina governor mark sanford to resign. cnn has learned a group of state republicans is expected to seek a party resolution during a conference call set up for 5:00 today. now, the governor says he's staying. all of this follows sanford's admission in june of an extramarital affair with an argentinian woman. >>> let's get you over to the hurricane headquarters now. rob marciano joining us to give us the very latest with what is going on, swirling and whirling. what's the latest, rob? good morning. >> let's talk, fred, heidi. hurricane fred yesterday became a major storm, the second one of the season. and also became the first -- the strongest storm ever recorded that far east and that far south in the at

particularly with the recent settlement with the s.e.c. over options dating issues. they are one of the largest players in the business on a nationwide scale and, like i said, we like the -- there are small businesses inside them. we think there are a lot of good things to talk about with unh, even though you may have some pressures today, given the speech last night. >> hey, malcolm, this is christine. jobless claims trade deficit data are out today. will they have much of an impact or will it be health care driving trade today? >> well, we think it will probably be health care driving trading. it's always interesting to see what comes out of the jobs data. if you get a dramatically better or worse number than -- i suppose the market would take a clue from that. but we think the focus will be health care, health care, health care and will be for some time as we go through the next few weeks and months with the issues going through, working there way through in washington. >> and malcolm, right now, we're sitting one-third of the way through november and so far, this

the fourth. that over on espn and s.e.c.pdate, alabama wins big, dan mullen gets his first win in the s.e.c. >> mark: all right, brown hands it off to devine. did well to get a short gain on the play. picked up one and, boy, what a crazy day this has been so far. started off with the torrential downpour right around the time we were supposed to kick oil off, maybe 15 minutes before kickoff and tried to empty out the stadium. told the fans they had evacuate. ted a couple of lightning spottings and they brought the times back out and west virginia came out like a couple of bolts of lightning and put points on the board early but auburn rallying late in the first half of play with ten points in the second period. tied now at 27 apiece. >> bob: i believe that's tone quo coleman. they told us yesterday, ted roof, we met with antonio. their best player but their best leader. cake back for a fifth year. see gene chizik. this guy is as respected. probably the most respected player along with cody burns. a lot of inner turmoil and co

we needed more aggressive voices at the s.e.c., ftc, the occ.s welter of federal agencies, people who came to wall street and said, wait a minute. that leverage is crazy. and it's kind of odd because everybody derided leverage in public but in private participated to the hilt. you look back at these deals and say, this is crazy. we needed regulators who said it. we needed wiser voices on wall street. this was sort of a disease that got into the bloodstream and the dna of wall street leadership. now, there were some who who spectacular who disagreed with it. who said, wait a minute, guys. we can't afford this. the more traditional old-fashioned investment banker said, wait a minute. this doesn't wok. >> warren buffett or -- >> yes. i love warren buffett. we all do. he also invested in some of these vehicles that have the leverage. but i think he always was a voice of modulation. we needed more of that and frankly less of the sort of hot dog, cowboy mentality that leveraged everything up, sent it out so that people would structure deals without re

the s.e.c. votesing nancy to propose a ban on that terrible thing known as flash trading. >> that's pretty good. >> these are orders that stock exchanges sent to a select group of traders right before reviewing them publicly. >> you know all about that. >> yeah, we do. and i know the firm that is the best at this that makes the most money and everything. who shall remain nameless. the practice who -- >> voldimore. >> i thought you thought goldman. giving an unfair advantage to those with lightning fast computer trading software. so, you know, you get enough computer software and you can make about a percentage point a day, i guess. no, i don't think it's that much. the s.e.c. proposal will be put out for public comments. >> the flip side is it's supposed to create more liquidity in the markets. >> people argue both ways for it. >> meantime, the s.e.c. is approving new disclosure rules for credit rating firms. the agency will be able tody close more of the rating's history. and banks will have to

on monday, a federal judge rejected the bank's 3 million settlement with the s.e.c. or the matter and ordered a tri. >> paul: it was upup and away from the sta on wall street day as investors welcomed th tame news on inftion. a stroer than expected 8/10 percenrise in august industrial production gave stocks additional rength. so by no, the dow posted a 77 int gain. the rge fed upon itself thanks tohort covering and buyers fearful of missing morgains. and with that, stos ended at their best levels ofhe year. the dow jones gained 1080 at 9791.71. the nasdaq jumped 30.51 to 2133.15. the p 500 gained 16.13 to 1068.76. in theond market, the 10 year note fell 8/32 to 108/32 putting the yid at 3.47%. >> susie: it is not an anniversary to celebte. one year agooday, the government stepped ito bail out a.i.g. the insurance gianwas on the verge collapse after lehman brotrs went bankrupt. congss appointed a financial isis inquiry commission to find out what happed. as we contin our special series, "lessonsrom lehman," darren gersh spo with phil angelides,he man leading that commi

the s.e.c. is holding a public round table today to discuss new regulations for the lending market. this includes reinstating the so-called upparticular rule where investors can only short a stock after it rises or ticks higher. short selling has been blamed for worsening the investment crisis. but others say short selling enhances liquidity in the market. >> coming up here on "worldwide exchange," stocks are snapping a three-day losing streak thanks to a nuri of m&a. we're still a little lower in europe. plus, deflation deepens in gentleman opinion. we'll he assess whether the government will need to launch fresh stimulus measures to boost domestic demand and investor attention turns to third quarter earnings. are we underestimating how productive have become? how you could start saving. >>> hello. welcome back. you are watching global exchange here on cnbc, "worldwide exchange," or global exchange if i change the name of it. we are now all put in little tiny boxes because we're a global show. w

. >> bob: this auburn team 5-7 last year. 2-6 in the s.e.c. o jump out 4-0 in the season. >> mark: boy, in and out of the happens of starks. dot to help your quarterback out a little built. welcome, everyone, to the s.e.c. on espn college football prime time. a game that you've seen auburn come back from being down early a couple touchdowns. this one is complete. came right back to starks. starks pushed out of bounds shy of the 40 yard line. smith a high-school all american. >> bob: ball game. fourth downing and about three, west virginia obviously has to convert right here. >> mark: tough spot for the true freshman to come in. >> referee: please start the game clock. >> bob: with two teams i'm sure we don't have more mishaps. >> mark: fourth and three. needs to convert. picked off. josh bynes with the interception. another mountaineer turnover. great push. this crowd is wet. probably don't smell great but they are enjoying the heck out of it. the push by the defensive line. steps up in the pock just gets engulfed in the sixth turnover of the n