oversight in regulation of banks and securities is done by the federal government, whether it's the s.e.c. or enforcement by the department of justice at the federal level. the banks have lobbied for a long time to be pre-empbted from any state regulation and would prefer to deal with one regulator and frankly they've had friends in congress, i think, that have allowed them to escape the kind of regulation that might have slowed -- i wouldn't say it would have stopped -- but slowed the fallout we now see from the home loan crisis. i would say the attorney's general, particularly in massachusetts, we work at the local level. we started to see in '06 and '06 foreclosure rescue schemes and then we brand the lawsuit that said, when you sell something to somebody that you know or should have known will fail. because you're going to make a fee on it that's an unfair and deceptive act. that's the basis of our proceeding in going after this on a consumer basis. we don't regulate banks by and large but we certainly see the progress that unregulated banks and mortgage companies do and i think what

can imagine in five hundred thirty pages now david outlined by the financial activist group occupy the s.e.c. which wrote a three hundred twenty five page letter to the agency in charge of regulating wall street which is what the f.c.c. is now to set this all up one of the loopholes in this volcker rule comes in the form of a market making provision let's remember market making for a second here's lloyd blankfein talking about it when charlie rose asked him if goldman investment advisors had ever bought securities from the firm sold them to clients and then bet against those same securities and no plane finds pregnant pause. i have to explain to you this is this is a problem as a market maker we are making dining and selling a thousand times a minute. probably that's what it's worth. probably we're just market makers now another one of the provisions has to do with hedge funds the volcker rule supposed to make it so banks can't own had funds let's remember why ok here are some headlines from the financial crisis days b.m.p. perry freezes funds as loan losses royal markets these were their in

people who have been disenfranchised by this well because there are so many surrender monkeys like the s.e.c. and like the participants and bubbles around the world by the way we have some cheeky monkeys in the news anonymous hacks greek ministry website demands i.m.f. withdrawal threatens it will wipe away all citizen debts here's an image from the greek justice ministry website and that dialogue there the text is read some of it from anonymous to the occupying government of greece we demand your resignation immediately and elections we demand not a cent is paid to money lender friends of yours we demand the immediate withdrawal of the i.m.f. from greece even you have not seen the full wrath of anonymous for each article of a bill that would shame the vote we will shut the system and delete in line revenue debts of greek citizens right and one of the rating agencies just do they just downgraded greek debt what jamie dimon do is a price tag for being inconvenienced by occupy wall street he stole a billion dollars of m.f. global so you know i mean there's no nothing to stop the people in char

two years ago the s.e.c. s ensuring greater liquidity, higher credit quality, shorter duration. these were the january 2010 new rules adopted by all money market funds. and in my view the commission is fighting the last war in some respects. i think the changes made in 2010 were very sufficient to ensuring that money funds are very safe. >> all right. fantastic. how about the proposals regarding increased transparency? i realize i'm being a little wonky here with respect to what fund companies or advisors charge for the management of 401ks. >> tyler, we're all about transparency with respect to 401k plans. we disclose all of the terms and costs and expenses and dollar and cent form. we're fine with the rules for disclosure and transparency with respect to 401k plans. we wish we had more time, but we're all about it, transparency. we're pretty much already there, frankly. >> let's get off of the trade dee issues and talk about the bread and butter of the markets. how do you assess the u.s. market at these level

facebook has chosen morgan stanley to be the underwriters and they are expected to fire paperwork with the s.e.c. later today. sources tell us they plan to raise $5 billion with this sale, though it could be more. bloomberg spoke with eric jackson and he thinks facebook is overhyped. >> this is a very overpriced company. facebook at $100 billion at those kinds of revenues would be 25 times revenues. that just doesn't happen. linkedin was about 11 times revenues. even google, which obviously was a very hot i.p.o. in 2004 was only 15 times revenues patriot missile just -- i just don't understand people rushing in to buy at 25 times. >> there is no question that facebook, of course, one of the biggest i.p.o.s of the year. how does a hawaiian vacation sound to you? united is expanding its service in dulles to take you there. more coming up in the next hour. i'm linda bell reporting for abc 7 news. back to you. sign us up. >> exactly. >> it will be worth it. >> we're looking at 55 warm degrees on this wednesday. >> still to come here on "good morning washington," tense moments at the occupy d.c. camp

survived winning 73-64 and clinching the s.e.c. title. >>> after gyp supsetting baylor the road, kansas beat number one missouri away from home. >>> seton hall improved its chances to make the tournament for the first time since 2006. stunning number 9 georgetown shooting 61% for the game. jordan theodore 5 for 5 from downtown, career high 29. seton hall dominated ninth ranked georgetown. 73-55. >>> nba looks like gregg popovich didn't care about extending their 11-game win streak. he said the veterans need add -- needed a rest. portland took advantage and blew san antonio out. jamal crawford scored 20. it snaps the spurs' 11-game win streak. >>> lebron james has perfected the long distance alley-oop. sweet connection with dwyane wade. miami winning seventh straight. that's your early look at sports on "early today." i'm fred roggin. >>> adele lifts more than just trophies at last night's britain awards. your early morning entertainment headlines are straight ahead. >>> plus, just call him the crooner in chief. coming up, president

they were talking december of 2011 the s.e.c. finally said, mr. and mrs. at fannie mae and freddie mac we will charge you with fraud because you lied to the american taxpayer and the regulators how much subprime and bad loan exposure you had and it took two years for them to figure out to bring it to light. >>neil: but we had the $26 billion plan of president where the banks pay, essentially, for, rewarding people who were roboed out of their homes fannie mae and freddie mac make up 80 percent or nine percent of the mortgages including the vast majority of the ones that are underwater, they were not part of this. why was that? >>guest: neil, it is hard to say. it goes back to some of the things going on in washington that are not privy to the public, but, you make a good point about the different friends of public sector lending like fannie mae and freddie mac, there is becoming more of an tight among private investors, people that want to helped to homeowners and do this type of private financing but the problem is there is high interest rates there which

amazon disclosed the amount for unpaid transaction taxes in a filing with the s.e.c. the transaction tax, similar to a sales tax, covered amazon orders placed in the state between 2006 to 2010. amazon says it plans to fight attempts by arizona to collect. >> tom: if you have a 401(k) retirement plan, some rule changes today by the department of labor could affect you. plan providers will have to disclose administration and other costs to employers. this would allow companies to shop around. another change would make it easier for employees to use their 401(k) accounts to buy annuity investments. the rules go into effect july 1. >> susie: as we mentioned, the labor department issues the january employment report tomorrow morning. most economists expect american businesses added 150,000 jobs. tonight's commentator says he's hearing good news from the nation's businesses. he's mark zandi, chief economist at moody's analytics. >> here is an intrepid forecast: the unemployment rate will be below 8% by year's end. while still disappointing-- anything over 5.5% means there ar

and the council, working with the s.e.c. and cftc, is going to undertake a broader review of what other changes may be necessary to strengthen those protections further. so you look across these areas, you can see we're making considerable progress in implementing the reform. we're taking the time necessary to get the substance right, providing extensive opportunity and time for public comment and input, and working closely with relevant agencies here and around the world to improve the prospects that we've put in place, a common set of actions and safeguards. the broad direction of these reforms is clear, and as we finalize the remaining elements, we'll be able to provide businesses and investors and consumers with more clarity and more certainty. i emphasize that, because it's important to know that those who are working to slow the pace of reform will only increase uncertainty, and they will damage our efforts to try to get the rest of the world to adopt a level playing field based on this framework of reform. now, as we

financial services where we have responsibility for determining at least initially the appropriation for the s.e.c., the cftc, treasury department, while you're not subject to our subcommittee's jurisdiction, i can't speak for mr. durbin, i would indicate to you a desire, a willingness to have conversations with you about the appropriations process through the federal reserve and your funding, if you're willing to visit with me. >> be glad to visit with you and have our staff come and speak to your staff and make sure you need to know everything about what we're doing. >> thank you. >> thank you. >>. >> the rule was completed in january but i just want to state my understanding is that when people seek to transfer money internationally, this rule says they need to be told up front how much money is going to actually arrive. in other words, no hidden fees. you see the full impact of the exchange rate that's being assigned to it. and in addition, if the money doesn't arrive, or if the money that arrives is different than what the person was told, there's a way to fix that. is that the essence of thi

the deal between the s.e.c. and ralph cioffi and matthew tannin came the same day a trial was to begin. combined, the men will pay $1 million in fines. cioffi will be barred from the securities industry for three years, tannin for two. neither admit guilt. both were acquitted in 2009 of criminal charges that they misled investors. >> susie: the recent uptick in >> susie: the recent uptick in job creation is welcome news, but tonight's commentator says problems in the labor market still run deep. he's glen hubbard, dean of columbia university's graduate school of business. >> the employment situation for january set forth many high fives in washington, but there's a problem with america's job machine. instead of momentum, at the pace of job growth over the past two years, it will take us two more years just to get back to the number of jobs we had in december 2007. but, of course, we have more people now who could be looking for work. the ratio of employment to population has dropped about five percentage points s

but what's going on with that stock, i would call the s.e.c. say investigate it. >> one last check of seagate, up 14%. we could check western digital as well. western digital was the one that had more exposure to thailand. seagate did not have as much exposure to thailand. but it is benefiting from the tight supply, pushing prices higher. >> the direct deals to suppliers, average selling prices for disk drives go down, down, down. i once owned 4% of western digital and i got to tell you, they missed quarter after quarter after quarter because average selling price s godown. union pacific is my favorite, once again hitting a high. you cannot hate this economy with the transports on fire. you cannot hate the world's economy with china getting the pmi it did last night. >> and india, the fastest pace in eight months. that was a strong pmi. >> international 65% of citigroup's business -- i go back to the banks, they're a trade, not an investment. caterpillar is an investment. >> carl, you have bob? >> yeah, watching seagate but also whirlpool. >> i'

facebook has filed papers with the s.e.c. for a second quarter ipo. jon fortt has more. john? reporter: yes, the blockbuster filing from facebook is out. here are some of the really interesting numbers that you can find in here. revenue, $3.7 billion. net income $1 billion even for a 2011. but here are some other things that we didn't know before about facebook, like where are the users? geographically. well, just 21% of them are in the u.s. and canada. also, facebook has operations, including data centers, in 20 countries. now over to bertha. >> thank you very much, jon. >>> defense secretary leon panetta announced late today that the u.s. will change its combat role in afghanistan. it's going to shift to a train and assist strategy by the middle of next year. >>> in and in port said, egypt, 70 people killed, a thousand injured when a soccer match between two fierce rivals turned violent. this hour police are still unable to quell the stampede. >>> american airlines trying to work its way out of bankruptcy is looking to cut 13,000 jobs as well as terminate its workers' pensio

according to the s.e.c. ling, facebook earned a billion dollars last year, virtually all of it from advertising. john blackstone tells us facebook's goal is to become the go-to place to find everything. >> reporter: to understand why facebook has become so valuable to investors, meet emily castor from california, walter vatieri from italy and tatjana a antin-- friends because of facebook. >> it's a foundation of every social interaction we have. >> reporter: facebook? >> it is. >> reporter: they were brought together by zimride, an internet site that organizes car pools but it was brought together by facebook. >> it was comforting to see tatjana had hundreds of friends on facebook. she looked like she was friendly. >> reporter: so you rented a car? >> yes, we rented a car and hit the road. >> reporter: zimride's cofounder john zimmer says like many internet startups his company depends on facebook to get customers. >> when you log into our service and we require facebook and you log into services that require

more details once we get the f-1 filing, which is that document facebook is expected to file with the s.e.c. as early as this afternoon. >> julia, thanks so much. bob is also at facebook headquarters this morning. bob, what are the chances the average joe can get in from the ground floor? >> reporter: well, it should be noted this would be the sixth largest ipo ever, assuming that facebook raises what is suspected to be the $5 billion to $10 billion in cash. typically when you have an ipo as hot and this popular, 90% of those initial shares generally go to institutional investors leaving the 10% for you and me, unless facebook decides to change the rules. there is speculation that the social media giant might do that. that there might be a surprise in today's expected filing. some are wondering if facebook my insert language or some provision that would allow 800 million users to get in on the action on the ground floor when the stock goes public. do you think it would be a good investment? >> oh, yeah. no doubt about this company. >> reporter: do you think it has staying power? >> when you

later, john jenkins, the s.e.c.'s leading scorer. he had 22 points. gators came back a little bit. y fakes a shot, goes through the lane. these are long highlights for a game you don't care about. i'm showing them anyway. thanks to the hot hand of john jenkins vanderbilt holds on. wins 77-67 with one game left in the regular season. vanderbilt plays tennessee on saturday. they play kentucky on sunday. coming up at the top of the hour on "morning joe" sweeps the night. did he do anything to calm his critics or are republicans still waiting for a savior to rise from the streets? we'll discuss that in a few minutes. when we come back here we'll huddle up around the water cooler to hear a dumb story for the ages. when trying to open a bank account with a fake i.d., do not use a photograph of one of the most famous movie stars on the planet. "way too early" coming back. [ female announcer ] if whole grain isn't the first ingredient in your breakfast cereal, what is? now, in every box of general mills big g cereal, there's more whole grain than any other ingredient. that's why it's listed

one is leading up to the primary a number of them requested changes in filing deadlines to the s.e.c., which means it prevented people from seeing donations until the 31st of january after a number of primaries and caucuses had already taken place. that's one reason s.e.c. disclosures have been carefully watched because this money hadn't been disclosed until now. >> ifill: when we are we going to find out about the money spent since january 31? >> we know about that spending. it's just they number of the primaries took place before we found out about it. the other thing that people are distressed about with these superpacs is a number of them are nonprofit affiliates, and those nonprofitprofits are not t to the disclosure rules. >> ifill: what about the karl rove group, that's $51 million. it's not spent necessarily targeted to a particular candidate. >> oh, but they are upon they're just doing it in the congressional districts right now. once the g.o.p. figures out who they're going to get behind, half of that money from crossroads, at least what we understand, are going to go in ads

the first time a clear, fiduciary responsibility to the people we serve removing any doubt that the s.e.c. and tfct are empowered to investigate cases of insider trading of nonpublic information that we have access to through our jobs. we are entrusted with a profound responsibility to the american people to look out for their best interest, not our own financial interests. let's show the people here that we have come together to do the right thing. today we're taking the first step showing them we are worthy of their trust. i urge all our colleagues to support this important bill. >> thank you for your leadership on this issue. it's extraordinary when we start the week off with a vote of 93-2. that's unusual in the united states senate when it comes to a motion onto proceed on bipartisan support. i'm glad we're going to bring this matter to a close after 20 more amendments considered all of which announced by the majority leader on the floor. all of them may not require roll call for those looking at watches and calendars. i think what it gets down to is very basic here. some of us start

the s.e.c. provided some guidance on how to report both their exposures and their hedges to the market, to the public. so a let of progress is being made there. having said that, a major financial accident in europe, the main effects on our banks would not be be so much direct exposure but through general contagion, flight from risk taking, loss of faith in the financial system, economic stress and so on. so i think there is a significant risk even though we've done what we can to make sure banks are managing their direct exposures to banks and sovereigns in europe. >> we're obviously very integrated. about 2% of our gdp is in the form of exports to europe. so europe has a significant slowdown. we will feel that. our companies are highly integrated. you know, you think of companies like, you know, ford and gm which produce, you know, in europe as well as in the united states. however, we do think that if europe has a mild downturn, which is what they are currently forecasting, and if the financia

if they go to the s.e.c. and the s.e.c. they have to tip off the company about this enforcement action. so how does that square with individual rights, individual accountable and all these things that we thought we support? >> can i zoom out for one second? because there's a story you tell in the beginning of the book that's really haunted me and stuck with me. it's something that maybe people know about and i didn't know about. there's a famous massacre you talk about during the nazi era, i believe it happened in poland, right? >> mm-hmm. >> tell that story, because it's really shaken me, actually, to hear this story. >> it's an extraordinary story of one of the most brutal massacre in a very, very brutal war. and it took place in poland. it was an italian that was taken to a village and ordered to round up every jew in the village, approximately 1,800 people, and take them into a forest and systemically murder them. >> with guns, but killing all day long, actually. >> yes. now, we hear that story and we think, okay, in su

recent months reportedly firms have moved to reduce their exposure to european banks but nonetheless the s.e.c. is now reacting and there are reportedly close to a proposal to regulate the money market fund industry a two point seven trillion dollar industry i know know me that it's easy for us to be cynical rightfully so over these kind of regulations and we're not fortune tellers but i'm just curious if you think that this could be a step in the right direction. well this is the one thing one of the things that the s. and c. has has said or proposed that actually makes some kind of a sense to make sure that the money market industry that is. not supported by the government although it had to be supported by the federal reserve in the treasury department back when lehman was falling apart and people were extract in their funds quite quickly and there was sort of a run on money market funds and they wanted to stop that run so they basically backstopped or or guaranteed for certain losses which they then took away a couple years after that so what's being proposed in the i.c.c. is a combination

the exchanges and the s.e.c. e technological fire power to keep up with high frequency traders because they have different economic incentives. and so you have to get the market structure competitive. maybe one central order book where everybody competes. a good friend of mine on the board of directors has said why not go to five cent ticks? does it make a difference between five cents and a penny when you do market executions? it's things like that they need to look at not finding, taxing, you know, they got to get rid of -- >> bringing it to the crux of the matter let's boil it down to something we can all understand. in the 80s it was like shooting fish in the barrel. >> yes it was. >> i know high frequency trading entities in this city that three or four years ago the minute they went from regular trading high frequency haven't had a losing quarter. >> right. >> if you are a trader and not taking risks because you're not losing money it doesn't seem fair. >> it's not a question of fairness but of risk reward.

times not you know a broader look at things and there's this report too from the new york times that the s.e.c. actually has been giving waivers to all of these big big firms that committed fraud three hundred fifty intense as over the last decade but before we go because i just have a minute left i want to ask you about this ron paul story there's an analysis in bloomberg saying that he could be getting the clout he needs to within the republican party bring a lot more attention to the issue of the fed and possibly push for that bigger audit that he wanted or changing the fed's mandate from a dual mandate to you know just the one issue of price stability do you think that we could and should be looking at these measures from the fed. well i have no problem with the of fed audit i mean we saw the fed basically handed out twenty nine trillion in low interest stories zero interest loans to the financial sector was that necessary we see the fed doing these massive multiplayer hundred billion forex swaps with the e.c.b. and other foreign central banks i got no problem with that the elimination of

where is the s.e.c.? >> maybe it caught somebody's attention. on last week because of the size. >> crazy. >> they tried to come up with a much larger offering a year ago, because the market is still not particularly crazy about delevering stories. >> it was magnitudes of order higher. >> why don't we just act as if it's a small cap and fool everybody? >>> we want to move on to brian battle. at the cme, what are you watching this morning? >> it seems like there's a spring winding. we've been trading headlines for months. greeks vurp the europeans, euro versus the yen, so we're waiting for something to break. so we're watching definitely ben bernanke's speech. he's going to have to say they have to hold rates low, and yet the stock market seems to trade at a high. so we're going to see if he says anything surprising there, and of course we'll watch and see if the greeks can get an agreement, but more importantly, can they follow through with it? they haven't done what they said they're going to do. we have to see if there's something to lock them i

member of occupy the s.e.c. obviously as is caitlin klein who's also a former derivatives trader so ladies you know we heard some of your key arguments about what's wrong with this legislation as it stands let's hear what the banks are saying because they're saying that despite all of these problems and loopholes that this will reduce liquidity which basically means it would increase financial volatility they're saying big picture this would hurt the entire financial system it would hurt the economy my question to you was why would it reduce liquidity couldn't new companies come in and provide the services that the banks now have a monopoly over. well i think that's a big part of our argument and that's one of the things that we cite in our letter is that there was actually an anti-competitive lawsuit that was filed by a company called interview that was way back in like the late ninety's and they actually tried to make the bond market electronic and they were essentially scepter out of that market and they trie

>>gerri: banks are in trouble with the s.e.c. them not pay the ultimate price we got done with the $25 billion settle over robo signing and some states are not using the money for those with trouble with the mortgages but to fund the government. people are not getting the money. that is my point. >>shepard: remember for years we had bad news on the economy and now we have good news about the economy, i like it. >>gerri: revisions to g.d.p. fourth quarter, going up, not down. bad news? they are saying that housing prices went down in december by 4 percent. i was dog about this yesterday with a huge rally expert and she says that is only 20 cities, it is not the whole country, it is the big cities, so you see those numbers you get worried, relax. >>shepard: that sounds right. thank you, gerri part of the best team in business, on the willis report kicking off the new all business prime time on fox business network at 8:00 eastern, 7:00 on oxford. now a everyoning what over the most widely redescribed groups of drugs in all the count

>> we're regulated by the s.e.c. and fnra. the rules are written many, many years ago, a lot of them updated right now to make this a more robust market. ultimately it comes down to trust and transparency. we require every company that trades on second market to disclose financials to the buyers and sellers. we think it's really important for this market to succeed. >> i'll ask you about the legislation crafted in washington in a second. but first let me get to facebook. they're valuing it at $100 billion. pac as the company prepares to go public, how does that impact what's happening here? because you've been trading facebook for how long now? >> three years. >> three years, and you're doing weekly auctions. >> weekly auctions. and other ipos, we've stopped right before the company actually did their public offering. >> are you expecting that to dry up when it goes public? >> we're already working with a whole slew of the next, maybe not the facebooks, but certainly fast growing exciting technology companies. if you think abou

now, according to the s.e.c., a company that has more than 500 shareholders must report financial resultsd costala says that's far from the company's best interests right now. we've learned exclusively that no twitter employee can sell more than 20% of his or her shares, and for those who have been with the company before it exploded, that's create a lot of tension. insiders say there's frustration within the ranks and the stock restriction forbidding early employees from selling shares in a robust, private market is one of the main reasons top talent is heading out the door. a dozen key employees along with senior executives have left the company in the last year, which we all know is never a good sign. back to you. >> that laurie segalll from "cnn money" reporting. twitter may not want large quantities of its own stock changing hands, but there's already plenty of incentive for shareholders to sell what they own. the company's valuation keeps going up, hitting a total of $8 billion when it last engaged in a major round of fund-raising. for a private company still in its infancy, as you

meanwhile facebook is set to file with the s.e.c. today to sell stock on the open market. while trading wouldn't start for another three to four months the initial public offering could value the social network between 75 and 100 billion dollars. the breast cancer awareness group susan g.komen for the cure is cutting ties to planned parenthood. komen will stop providing money for breast cancer examinations partly because of a new policy against funding organizations under investigation. a house republican launched an inquiry to see if planned parenthood uses public money to fund abortions. some say komen caved in to political pressure. >>> a phone call to rose kennedy from lyndon johnson has been released. he called to offer condolences as he flew from dallas back to andrews air force base on november 22, 1963. >> i wish to god there was something that i could do and i wanted to tell you that we were grieving with you. >> thank you very much. i know you loved jack and he loved you. >> the nearly 50-year-old exchange was part of a recording recently donated to the national