now the s.e.c. is literally being handcuffed, really, by what it can and cannot do because of conflicts of interest. i'm picturing the entire s.e.c., why that's undermining enforcement and maybe going to cost you some money next. we'll look at that very important. >> and will dow component dissly fuel the legs of this rally? that news after the bell and ceo bob iger is here live and breaking down the numbers live in a first on cnbc interview. that's today live at 4:20 p.m. eastern. but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. >>> conflicts of interest are already handcuffing s.e.c. commissioners from ru

with respect to the s.e.c.'s resources. the s.e.c.derstaffed, undermanned for a long time, and dodd/frank has exacerbated that situation. >> i've never met a chairman or a former chairman of the s.e.c. that said, you know, we're fine. we've got enough money. >> but i think in this case they really have been really desperate for resources. >> so we hear, again. >> thanks, harvey. >> thanks, harvey, very much. >> always good to see you. in the final stretch for the week. 20 minutes before the closing bell sounds on wall street. hey, looks like we're going to do it. >> think we will? >> up about 105. >> that's to end positive for the week. we're in the green for the week right now. by the way, did you see, the dow has been positive every single friday this year so far. >> wow. fridays are good. >> this very resilient market despite all the sky is falling warnings due to hit in a week from now. why is wall street ignoring those dire predictions? sxwlnd a huge event overseas that can impact our investments. michelle caruso-cabrera here wit

the s.e.c. has a reputation for missing deadlines. ey've worked really hard, the staff, to get this, the proposed rules done, but it's really a political game and it comes down to what the commissioners want to put on their plate and when they want to do that. >> julie, i wanted to ask you because you start companies, you advise companies. when it starts, do you think it's a group way to get money? >> it can be a very effective way of getting money. it's a way of demock rah advertising access to capital and amplifying something that's happening in silicon valley which is kind of angel investing process or what we often call friends and family where you kind of recruit people in your network who believe in you because when you're starting a company, it's really about you and your idea, so it's about people investing in you. so this allows access to this broader market of people. so where you cannot only amplify through family -- >> is there any downside? we know there are worries that a lot of own vesters might be fooled into giving mon

the plot thickens. pogo also reports that when obama's first s.e.c. piro, pushed for reform of the money markets business, it was opposed by the two republicans on the commission and one democrat, luis aguilar, who used to be an executive vice president with the money management firm invesco. he came out against schapiro's plan shortly after a meeting with invesco officials. coincidence? aguilar told pogo there's no connection. sure. when president george w. bush was in the white house and named chris cox to run the s.e.c., we screamed like bloody murder because cox had been a partner at a huge global law firm whose client list included deutsche bank and goldman sachs. now obama's pushing his choices through the same revolving door. it's called "regulatory capture." the takeover of government agencies by the very corporations they're supposed to keep an eye on to protect everyone's investments and pensions against abuses of private power. what next? well, stay tuned. in the next few weeks, mary jo white will sit for her confirmation hearing before a co

>> the s.e.c. mputer systems and ability to northern the vast quantity of data that has its availability to them and we're talking about real-time monitoring of market and the trading activity. so the s.e.c. can get out ahead of any problems as they come up. >> we'll see what happens. robert, thanks for entrepreneur site. interesting. robert heim. when we come back we'll get some final thoughts on the markets. icahn and wapner coming up live at the top of the hour. get ready for round two. we're back in a minute. [ whirring ] [ creaking ] [ male announcer ] trophies and awards lift you up. but they can also hold you back. unless you ask, what's next? [ zapping ] [ clang ] this is the next level of performance. the next level of innovation. the next rx. the f sport. this is the pursuit of perfection. because what you don'tu know can hurt you.rance. what if you didn't know that weeping willows have invasive roots? what if you didn't know that a trampoline... could affect your liability? and what if yo

the s.e.c. ed to come up with regulations to put this provision into effect by the end of last year. they missed their deadline and we still don't know exactly when they'll be done. sherwood nooes is the co-founder of crowd fund capital advisors that advises businesses, private equity groups and more about the ins and outs of crowd funding and eric and julie are back with us. great to see you, sherwood. >> great to see you, j.j. thanks for having me. >> a deadline has been missed, other deadlines have been missed. does it seem like this will be done by the end of 2013? >> well, we're hopeful that it will be done by the end of 2013. mary shah peer ro was never quite a fan of the jobs act or crowd funding in particular, and now that we have a new commissioner coming in, we think that it's going to cause a little bit of a delay. we know that the proposed rules are there so our goal assen industry -- as an industry is to show up in washington, d.c., meet with mary joe white and help her get these goa

tigation >> reporter: scott, we've learned the s.e.c. is lookingtt into a number of tradesking i surrounding the heinz sale, but one trade in particular investigators are calling "highly suspicious." the day before the takeover of heinz was announced, an unknown investor bought more than 250,000 options, granting the right to buy heinz stock at $65 a share through june.hr when the deal was unveiled, the stock jumped to $72 a share, and2 that $90,000 investment madevestment from a swiss-based account soared in value to more than $1.8 million. >> this was substantial trading in a very large block by an account that the s.e.c. alleges had never traded heinz before.nz >> reporter: michael mann, achael former s.e.c. attorney, says the commission was right to file an emergency action to freeze the account. >> as a result, if the person whose account this was wants their profits, they're going to t need to come here to get them or otherwise to defend the case if that freeze is ever going to be lifted. >> reporter: the s.e.c. has beenr: the crack

the s.e.c. in a goldman sachs account after spotting options behavior ahead of the heinz deal it considered suspicious. in a complaint against unknown traders in new york federal court the s.e.c. charges that one or more people with a single account purchased about 2500 heinz june calls with a $65 strike price the day before the deal causing call volume to surge to more than four times its normal level that day. after the $72.50 per share heinz buyout was announced, the stock, of course, surged creating an estimated $1.8 million profit for those traders. the s.e.c. moved fast on this one for fear the assets might be removed. in that sense it's similar to a case settled last fall with a hong kong investment firm over charges with insider trading. the agency is trying to get tougher on insider trading here and abroad. when there is a risk of flight for the money they have to move fast. >> they do. kate, thanks for that. more classic carl on cnbc today when he called into the halftime report and re

as you know, the act required the s.e.c. to undertake the largest and most complex rule making agenda in the history of the agency. we have made substantial progress writing a huge volume of new rules mandated by the act. we have proposed or adopted over 80% of the more than 90 required rules and we have finalized almost all of the studies and reports congress directed us to write. since the law's enactment our staff has worked closely with other regulatory agencies and has carefully reviewed the thousands of comments we received to ensure that we not only get the rules done but that we get them done right. and i am committed to doing both. indeed, as long as i serve as chairman i will continue to push the agency forward to implement dodd/frank. while my written testimony describes in greater detail what we have achieved i wanted to touch briefly on just a few of the items. today as a result of new rules jointly adopted with the cftc, systemic risk information is now being periodically reported by registered investment advise

>> now the s.e.c. chair echoed the views of fellow regulators that trials are costly and time-consuming and settlements can achieve their goals, but senator warren wasn't buying it. >> there are district attorneys and u.s. attorneys who are out there every day squeezing ordinary citizens on sometimes very thin ground and taking them to trial in order to take an example, as they put it. i'm really concerned that too big to fail has become too big for trial. that just seems wrong to me. >> now republicans on the committee held back from what had been expected to be criticism of too many dodd/frank rules and the power of the new consumer financial protection bureau, an agency ironically warren herself might have head federal not for republican opposition. maria? >> in many ways our next guests -- thanks, half. on. . >> barney frank is the co-author of the dodd/frank banking bill and joins us now in a cnbc exclusive exclusive. what do you think of her debut on the banking committee? >> i think it's expected

the s.e.c. said they used a swiss-based account with goldman sachs. in one-day that $90,000 investment soared to $1.8 billion. >>> "the new york times" is finally getting around to selling the "boston globe." the company made the announcement yesterday. analysts had expected the sale for years and will allow the times to focus on its core brand and expand its digital platform. it's e estimated the globe could be sold for as much as $175 million. >>> and sony is betting its video gaming future on the play station 4. the company unveiled the new device yesterday, only they didn't actually show it or say how much it will coast. sony said it will be the most personalized gaming experience on the market. the ps 4 should be in stores by the holidays, anne-marie. >> looks like it's a guessing game is what they're playing. thanks very much. ines ferre in new york. >>> well, coming up on this morning's news, blast investigation. we're learning more about what sparked that deadly explosion in kansas city as crews race to search for more victims. this is the "cbs

a massive upsurge in volume on the day before and presumably the s.e.c., maria, is trying to figure outas behind that. they have filed a suit of that nature. >> all right, kate. thank you so much. kate kelly. just as the individual investor is coming off of the sidelines could stories like this send them running for cover once again? what does the retail investor need to know. joining me is mart martiac, and derrick kinny. good to see you guys. thanks for joining us. >> my pleasure, thank you. >> what does this mean for the individual investor? mean, how do you be sure you? hear stories like this. well, there could have been activity before the warren buffett acquisition. what's going on? >> interestingly that you ask. most of my clients asked me this week if i had any inclination or understanding what have happened. clearly when there's a speak in the call options trading, it makes you wonder what's going on most of the time it's coincidental, however, the s.e.c. may know something that most us don't know, but i don't think it affects the individual trader. high net worth, ultra high n

the s.e.c. settled with a company. no conclusions have been drawn there. traders in 2008 netted some $4.8 million in profits on leaks that anheuser-busch was being targeted. the source of the leaks, a sales trader whose wife was doing p.r. at the time for bud. when software giant sap -- that was in a day before the $8.8 billion was announced. going back to the heady private equity days of '06 and '07, it seemed no deal was without the trading tarnish. they saw suspicious trading preannouncement. it's always the big deals. scholars discovered the higher the price tag, the more financiers and lawyers and bankers, more insiders meant more insider trading. but it should get out to the journalist before the traders, right? >> the natural person to go to on this is j.j. and the options activity that can give you the clues on what's happening behind the scenes, so to speak. >> you see it a lot where there's zero open interest, a thousand contracts traded and the next day there's an announcement. the firms who have the other side, do they get anything back from the

we know the s.e.c. me unusual options trading in heinz on webs, the day before the deal was announced. more specifically, this relates to out of the money call owes heinz which made traders allegedly $1.7 million in profit pes we know it was a goldman sachs account in zurich and goldman sakes says it is working together with the s.e.c. >> is there any reason the u.s. shouldn't expect the swiss to kwom kw079 in providing additional details on this? >> not really. the two have been working together very, very well. in fact, i would think the u.s. authorities have the swiss authorities on speed dial because of the issues. >> good point. how many times have we seen this over the last couple of years? carolin, good to see you this morning. >>> the race is on as the italian elections heat up. stay tuned to find out how grillo is giving the other candidates a run for their money. ♪ ♪ ♪ [ male announcer ] what's the point of an epa estimated 42 miles per gallon if the miles aren't interesting? the lexus ct hybri

the nasdaq and s.e.c. dealing with extremely important legal issues surrounding last year's facebook ipo. for details on that and the rest of the news let's go to bertha coombs live at cnbc world headquarters. good morning. >> good morning. i hope there is nojar-jar binks. the markets rebounding nicely recovering from the day's losses. the nasdaq had its second best day of the year so far. we don't have major economic news. we are getting earnings from time warner, waiting on visa at news corp. the dow rising to 13,979. the nasdaq added 40 to 4171. the nasdaq reportedly in settlement talks with the s.e.c. over the botched facebook ipo last year. the wall street journal said a deal would likely include a $5 million fine or 1% of what market makers and brokers say they lost pause of technical glitches during facebook's ipo lost may. nasdaq offered to pay firms $62 million. but they think they lost $500 million there. they are not ready to take that offer. breaking news. the post office is reportedly cutting s

as you know, the act required the s.e.c. o undertake the largest and most complex rule making agenda in the history of the agency. we have made substantial progress writing a huge volume of new rules mandated by the act. we have proposed or adopted over 80% of the more than 90 required rules and we have finalized almost all of the studies and reports congress directed us to write. since the law's enactment our staff has worked closely with other regulatory agencies and has carefully reviewed the thousands of comments we received to ensure that we not only get the rules done but that we get them done right. and i am committed to doing both. indeed, as long as i serve as chairman i will continue to push the agency forward to implement dodd/frank. while my written testimony describes in greater detail what we have achieved i wanted to touch briefly on just a few of the items. today as a result of new rules jointly adopted with the cftc, systemic risk information is now being periodically reported by registered investment adviser

s staff november report reporting the impact of the s.e.c.' measures to strengthen money market funds. they also talked a little bit about the stage of where they are in the process of designating companies under dodd/frank as significant, that, they say, they will not do until a final determination has been made for each company so that's the news here on new treasury secretary jack lew. back to you. >> and the reason there were no come race to record the swearing-in was because? >> reporter: well, that's a very good question. the white house press corps asked jay carney why that was, and he said, you know, basically it was just a ceremony, but some of the folks pointed out that in fact when secretary geithner was sworn in they did allow cameras in there and the president made some news in some of his comments there and a lot of folks in the press corps said they would liked to have been able to seen this one. >> that was not the photo op that the president wanted out there. >> thanks, eamon. >> 15 minutes before the closing bell sounds today

mindful that it's the s.e.c. at has civil enforcement jurisdiction involving conduct in the capital markets. .here, it's the department of justice bringing a civil case and the s.e.c. not bringing a case as part of this mix of cases. and that's really somewhat surprising. also somewhat interesting is almost the midnight filing. so we haven't had a chance to read the complaint. this will be interesting to see how this actually has been styled and presented because this ultimately, then, is about civil monetary penalties. it's not about somebody going to jail and it's not about an injunction and a violation of the security laws. >> so, jacob, just so you know, in the morning b as i was doing the reader on the story, i skipped over the word illegal behavior because i saw it was a civil suit. are they alleging illegal behavior here? and why if it's illegal, is it civil and not criminal? >> i don't believe they will allege illegal behavior, but when we're talking about criminal, it has to be established by an affirmati

actually, in july, the s.e.c., she was commissioner at the s.e.c., had taken a banker to court on a civil case. it was thrown out. he was mid-level. the jury says we don't want these mid-level guys. on a remarkable note, they said it should be executives who are being held to account. it was remarkable that she couldn't even come up with the one trial that they had gone forward with. >> your thoughts, david cay, on the justice department. have they done their job? >> no, absolutely not. you know, last year, bill black, the regulator who was responsible for a thousand felony convictions of high-level people in the s&l crisis was supposed to testify in congress. he came to washington, and the morning of the testimony they said they didn't want to hear him. the importance of elizabeth warren is she is going to be in a position to ask the questions that haven't been asked. as martin said, simple questions. >> here is senator warren as she explained the impact of bringing cases to trial during the hearing. >> there are district attorneys and u.s. attorneys who are out there every day squeezing

you are going to do hard jail time they're going to carry on doing it now there was a time when the s.e.c. in the d.o.j. working together in partnership were a real force to be reckoned with some years ago i mean that's been changed because you know the american regulates and it breaks my heart to say this have been watered down in the same way that we've been able to down ok the day i j it has decided this week to go hard after r.b.s. they're not going after city bank and i going after anybody else as a because the da saya british taxpayer owns this bank and it's unlikely to protect paying the eight hundred million dollar fine so here and other situation the people of britain are so easy. the fraud and to have financially terrorize that america has got them paying for the live war scandal eight hundred million dollars to come out of r.b.s. which is owned by the public well i don't think it's first of all i don't think i don't buy into this this idea that it's somehow a big conspiracy on the behalf of the we get americans just to pick on the brits i don't buy into that it's ok the fact of

you are going to do hard jail time they're going to carry on doing it now there was a time when the s.e.c. in the d.o.j. working together in partnership were a real force to be reckoned with some years ago i mean that's been changed because you know the american regulates the need breaks my heart to say this have been watered down in the same way that we've been able to down ok so the d.o.j. has decided this week to go hard after r.b.s. they're not going after citibank and i going after anybody else as a because the da cya british taxpayer owns this bank and it's unlikely to protect the paying the eight hundred million dollars fine so here and other situation the people of britain are so easy to defraud and to have financially terrorize that america has got them paying for the lives or scandal eight hundred million dollars to come out of r.b.s. which is owned by the public well i don't think it's first of all i don't think i don't buy into this this idea that it's somehow a big conspiracy on the behalf of the we get americans just to pick on the brits i don't buy into that it's ok the fac

so we are all sort of waiting when the s.e.c. regulations for the jobs act. >> let's move to the next question, this is about recruiting new employees. >> we are growing very fast and ne having difficulty finding the young talented employee. how can i recruit the young talented employee to my small company? >> we did a poll out to a lot of people and asked them what are your biggest problems right now. i was expecting to hear funding, cash is an issue. what i heard from so many is finding talented people. and i thought in this job market you're having trouble finding talented people? but i hear it across the board. what's going on? why can't we find people? >> i think part of it is trying to find the people where they are and reach them as opposed to thinking about traditional job boards or things of that sort. so the kind of business that you have i think really demands you to think about marketing your business and seeking those job seekers in different ways. craigslist alone or things like that isn't good enough if you're tryi

the s.e.c. tails on herbalife's books and operations after they itself asked for a meeting. it will be interesting to hear more about the back-and-forth that went into that. >> presumably once they've completed that, we might get statements from the other players this afternoon. >> possibly. we'll see. absolutely. ackman and icahn in particular and to a lesser extent dan loeb has used cnbc as a pulpit to share their views, which has been interesting and enjoyable. who knows what will happen today. we'll get more details at 11:00. i would bet the hedge fund managers will be on the call and i'll bring you the update. >> kate, we'll let you get set up for that. >>> the cyber threat is growing. a number of corporations reporting they have been the target of hackers. apple, chrysler, burger king among them. mcafee is out with new cyber threats reports today. the chief technology officer for mcafee joins us now. great to speak with you. >> thanks for having me. >> not surprisingly, mobile platforms are

the reason that they dumped it in sixty four was because it was generating so much more money than the s.e.c. cost to run some bright person congress said let's get rid of this and it was you know a tenth of one percent on every stock transaction and it's kept the stock market kind of moving nice an easy but now we've got these guys who are making a fortune doing a million trades a microsecond and it's destabilized our system i'm curious your take on it's not big. and of it first of all you're talking about taxing without any profit you're talking about just taxing to be in a market it's the equivalent of a sales tax what is the equivalent of a sales tax but to use a market any time you start to tax a market you start you can start to manipulate the market you know is there is a way that it isn't i mean we're paying for that market i understand well the market in some we all suffered when that market crash we did but you're talking about a transactional tax that in my opinion has the potential in the aggregate to to hinder that market i mean i believe in the free market i don't think you att

and 2000 complaints of the s.e.c. staffers leaving the s.e.c. e oftentimes wall street and some within 48 hours after leaving the s.e.c. and how is that for a revolving door? i know that mika is not there, but mountain dew is rolling out a new beverage called kick star start. it is not a soda, but a juice with a little extra dose of caffeine, for the kids who are not jacked up enough on the sugared cereal. >> and you know what else happened in 1971? >> what? >> the zeppelin classic "stairway to heaven." >> and the first mccar cartney album. 1970. >> another day. >> wrbrian sullivan, thank you much. "morning joe" is back in a moment. i'm a conservative investor. but that doesn't mean i don't want to make money. i love making money. i try to be smart with my investments. i also try to keep my costs down. what's your plan? ishares. low cost and tax efficient. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, c

>> michelle the s.e.c. has two months to bring civil charges against s.a.c.ital or to seek an extension of another six months. s.e.c. presented interesting evidence suggesting they did not do insider trading and equity swap they had in place during july of 2008 would have erased any profits in a pharmaceutical stock. the s.a.c. responded to an s.e.c. wells notice from november with details on the swap trade that may have blunted its economic interest in wyatt and ilanfeld in 2008. details emerged in a story earlier in "the new york times" and may have a favorable impact on investors' view of the fund. enforcement officials can still bring an insider trading case even if no profits were made but the lack of profits could put a dent in the story of i agreedy hedge fund that has up until now very much been in play. with a key deadline tomorrow for investor first quarter redemptions the timing for s.a.c. on these revelations has been good. we'll see what the impact of that is as of tomorrow, as investors weigh both the financial and the legal implications of stay

the response was a series of regularities from the s.e.c., the occ and other agencies providing excusesy haven't brought any of the big wall street banks to trial in recent history. senator warren was less than pleased with their response. >> i'm really concerned that too big to fail has become too big for trial. that just seems wrong to me. [ applause ] >> john: i would have gone with too big to bail out but it works. joining me now to discuss this and many other issues are host of the week in blackness in the morning, l. joy williams. former senior adviser to president clinton and former president of equality matters richard socarides. host of the podcast employee of the month, catie lazarus. thanks for joining us. thanks for coming back and one newby. this youtube clip of senator warren being tough on the bank regulators has had over a million views. l. joy are people this starved to see a politician finally going after the big banks? >> i think people are this starved to see banks in general take some responsibility for what they caused in our economy. and so far in the foreclosure

if the s.e.c. or the u.s. regulators come hard on the swiss, they're ka partnership ewe late. >> the swiss will? >> yeah. they've been under the gun so much in the last five or ten years, banking secretessy has loosened up. >> but it's not going to be pressure on goldman. it's going to be pressure on the swiss. >> it will come through the s.e.c. and if they need to push hard enough, they'll find out from the origin of that. >> apparently goldman sachs has hired lawyers to defend itself, to effectively defend the anonymous -- >> they have to. >> they're in a bad situation. why would you allow yourself to get that that position where you're making trades that -- >> but ultimately the company is going to prevail over an individual. >> it is official, the senate has confirmed jack lew as the new treasury secretary. senators backed the former white house chief of staff by a vote of 71-26. all 53 democrats voted in favor and that's probably not much of a surprise. >> also, sears quart ily results crossing wires just

. >>> the nasdaq is reportedly in settlement talks with the s.e.c. over facebook's botched ipo. nal says a deal would likely include a $5 million fine. market makers and brokers say they lost upwards of $500 million because of the technical glitches during facebook's ipo last may. nasdaq offered to pay $62 million. as you can imagine, a lot of them feel that they should get a bit more than that. back to you. >> just a little bit. bertha coombs. thank you. >>> new study shows ha many workers are spending most of their time on the computer not doing work. the study shows that when employees are on the web as much as 80% of the time, they're doing cyber loafing. employees are shopping online, on facebook, or watching cat videos on you-tube. monitoring usage is effective but it lowers worker's morale. what are you supposed to do. improve productivity. you can't be wasting 80% of your day. >> jobs that require us to be on facebook, on twitter, on tweet deck and all the other things out there. it's an interesting time we live in. >> tough. tough to be the boss sometimes. >>> let's turn

i wouldn't expect that any increase will come until they're just about out of the s.e.c. proxy. and between now and then, i would expect that maybe the buying group could make some statements that, you know, they think their offer is fair here and might get people a little concerned and it could weaken a little. >> to me, it seems very reminiscence of the j. crew situation. they had mickey drexler in the group. same here, michael dell. you have to have him in your group or you probably wouldn't want to do it. the end of the day, though, i -- i think -- do you know what -- if enough shareholders want appraisal rights, would they sue in delaware? is that something they could possibly do here? >> i don't think appraisal rights will be the way this one could go. i think if you go through the numbers, the dell group needs a majority of the remaining shareholders owned outside of the dell group. so, he owns -- that group owns 17%. he needs about 42% of the vote and there's already about 17% against, so, he needs 65% of the -- all the remaining shareholders to approve the deal.