the s.e.c. to perform cost benefit analysis efore finalizing any major rule. it also prevents the implementation of the rule if the benefits do not outweigh the costs. throughout this bill the american taxpayer will be protected from needless regulations that would impede economic growth without providing effective consumer protections. in other words, mr. speaker, we are here to ensure that the s.e.c. provides balance with the rules and regulations that are in a major context when it issues these rules on the marketplace. in january of 2011, president obama signed an executive order directing all nonindependent agencies such as the department of energy, the department of education, and others to abide by the same rules that we are providing for today in h.r. 1062. however, because it is an independent agency the s.e.c. is not required to follow the president's rules. the legislation before us today creates parity, an opportunity for congress to work with an agency and other nonindependent agenci

the s.e.c. to no avail. or all those little busts from satellite firms allegedly connected to s.a.c. capital. how do you vaccinate yourself from this? first, some can't be stopped, no matter what happens. there will always be frauls and if you're able to avoid it, great. you can't gain fraud. second, there will always be down markets. i can't protect you from an economic collapse and what it would do to the stock market, the credit crunch, recession of 2007, 2009. the recession only caused you to lose less. maybe the great destruction of wealth, let's just say nothing can protect you if you own stocks. but what i can do is offer you some simple rules tonight that will let you have more confidence in the stock market. even if you think portions of it are rigged or beyond your comprehension. and the first rule, know what you own. i know it sounds simple. of course, everyone thinks they know what they own. how does this protect you from the myriad ways, people, machines can abuse you. first, if you

they have been long in the s.e.c.'s history of disclosure that deal with the board and things like that. >> suarez: professor jackson, can your petition survive that test? involving whether or not these amounts are material? >> absolutely it can. with all due respect to the commissioner, the executive compensation rules that require disclosure of relatively small amounts for large public companies were only really expanded in 1992, many decades after thurgood marshall wrote the opinion he's describing. the fact is the s.e.c. has plenary discretion to determine what is material. what they said very consistently over the years with respect to executive compensation, with respect to decisions where directors have a financial interest in the transaction, with respect to disclosures about the director's oversight of risk, all of these disclosures have been held by the s.e.c. to be material because it's clear that investors are interested in this information and in the case of political spending, it could not be more clear t

i asked him what if anything the s.e.c. was planning to do this year concerning the very hot topic, high frequency trading. >> i don't think there's a consensus view on the commission. again, this is where the data competes. we have one set of data showing the markets are more efficient than ever. on the other side, we see these numbers, 60%, participation by high frequency trading strategies. it makes you wonder. >> so you can smell how ambivalent the s.e.c. is about this. guys, the important thing is they're not sure what, if anything, they should be doing. that's the sense that i got. they hear the public feels sometimes they're being disadvantaged. but they also see very low trading commissions. you can trade 10,000 shares of ibm for 7.95. get it done quickly. there's not a lot of complaints. s.e.c. is going to continue to investigate this. my sense is they're not going to take any major action against high frequency traders this year. >> just putting them on notice. >> let them know we're watching. i think if there's hi

>> who say that the compliance that s.e.c. has put in place is tops in the industry and there's no reason to cross a line. >> rose: he's got too much to risk. >> he's got too much to risk. he's worth $10 billion. >> rose: so therefore he would not do this? >> what's the point of gaming the system or crossing into the black from the gray in order to make an extra $2 million in the trade or even an extra $100 million. >> were all these -- the things that he's accused of, are most of them -- they occurred after he said he got religion -- he didn't say that but after he brought in a compliance team? >> clearly. >> rose: >> he's not accused of anything yet. the closest one is a guy named matthew martoma who has been indicted on charges of the largest insider trade in history $276 million. >> rose: been dieted. >> he has been dieted so he's pleading not guilty but he has been dieted and he had 20-minute conversation with steve doe coe hen before and nobody knows what happened in this 20-minute conversation where he convinced co-then

the s.e.c. write regulations is nearly 19 months after the jobs act was signed into law and it's in fact five months before the due date of the s.e.c.'s reoccurring review of a renewed regulation a. so regulation a is a very interesting provision within securities regulation. it's sensible and philosophically sound extension that should help millions of small and moderate-sized businesses but it's actually unused by all small businesses. now, the jobs act language includes raising the cap on egulation a securities offerings from $5 million to $50 million, but the act also requires that we have meaningful regulatory improvements to regulation a so it can in fact be utilized by small businesses as it was intended. stakeholders and academics have testified that regulation a should be a covered security or the s.e.c. should radically simplify rega's registration and qualifications. if small businesses are to ever use and utilize this well-intentioned exemption again. . to prove it matters look at th

in today's case, the s.e.c. d nasdaq executives were aware of the problems, but opened trading in facebook stock anyway, causing 30,000 orders to be held up. the resulting volatility affecting both facebook and zynga shares, the s.e.c. said. and in an open letter today, nasdaq ceo bob grifeld acknowledged that the volume of ipos was carried out without issue, and writes that while the firm, quote, prepared extensively for the facebook ipo, including thorough tests of our own systems with member firms, the challenges we encountered that day were unprecedented. greifeld says the exchange should complete all the s.e.c.'s compliance requirements by the end of this year. maria? >> that was quite a day, kayla. i know you agree. thank you so much, kayla tausche. >>> meanwhile, facebook facing another headache, actually. major advertisers including nissan uk and financial services company nationwide pulled their ads from the site after some of them appeared next to questionable content related to abusing women. facebook

the s.e.c. will embrace your plan? >> well, i talked to mary jo white before she was confirmed about this. she confirmed me this is very important. it's time for the s.e.c. to act, time for them to act and break this system of the issuer of these products paying the rating agency and choosing them to rate the product. the s.e.c. has to do this now. >> sir, before you go, i do want to get your thoughts on this it growing irs scandal. nobody obviously is defending the irs. but do you think the tea party deserves tax-exempt status? forget the tea party. do you have any concerns about all the political groups out there that are taking tax exempt status for being, quote unquote, educational? >> well, this is the issue. it just should be done in a completely nonpartisan way. but these are -- these 501c-4s, in order to be tax exempt, in order for people to give them money and also not be disclosed who they are, the 501c-4 has to spend at least 50% plus $1 on actual social welfare. so some of these organ

maybe the first tipoff should have been the s.e.c. workers caught downloading porn. most still kept their jobs. not that there's anything wrong with that. like the official at this center of this irs storm, resing to answer questions and getting put on paid leave. and a key state department player in the benghazi mess getting a white house nomination for a promotion. we're not saying all government workers are bad bad government l on the job at your expen, that's a bad people. >> charlie gas parrino. charles is off today. megan, what do you make of this? >> this leviathan, this monstrosity we call government, there is zero accountability. lois lerner takes the fifth and essentially acknowledges that there was maybe some criminal acivity that goes on. in the greatest sidestep of all-time, the first senior administration official to testify about this irs mess, deputy treasury secretary neil wol en, when they were being sworn in, he took a ste to his left so he would not be in the money shot with the other irs officials. >> i got to go. >> independent investigator. oh,

it would have an independent board appointed by the s.e.c. that becomes self-regulating. the initial credit rating of each structured financial product to a rating agency. depending on and defined by their expertise, their capacity, and, after a while, their track record. and this would restore trust to the system. because it would be pay for performance, not pay to play. and, look, this has not changed. and this is what caused the meltdown. because, as your viewers know, once they ran out of subprime mortgages, then they did bets on those and bets on bets and bets on bets. and that created the house of cards that -- that collapsed. >> so let me -- >> yes, go ahead. >> let me ask you about the support. how widespread really is support for this given that just last summer you had cal pers, california public teachers union and calsters saying they don't support it. they're not supporting this amendment. it's not the right model. >> well, we've just had a report issued by the s.e.c., a study, that took about 2 1/2 years to come out, that was mandated by my amendment as it was

the largest fine in the history of the s.e.c. er cohen wrote a check to the government, he bought himself a picasso worth $150 million and a $60 million house in the hamptons. his second. but now, the investigation is getting very close to cohen himself. journalists bethany mclean and brian burrow tell the story of cohen and s.a.c. capital in the june issue of "vanity fair." a tale laced with details of coded emails and whispered phone calls all in the pursuit of illegal gains. do this day, cohen denies any wrongdoing, but burrow and mclean speculate he could be the next to fall and depict cohen as the fed's version of moby dick, steve cohen isn't just another hedge fund billionaire, he is the hedge fund billionaire. doughy and clerk-like, cohen is the gatsby of our age, a middle-class kid from long island who caught the gambling bug, fleecing his high school pals in all-night poker games and now worth an estimated $10 billion. but as the walls around him begin to crumble, thus far cohen has been able to escape. in the piece a hed

i was at the s.e.c. for 20 years. i looked at the bloomberg terminals.m the day i started i was on the bloomberg terminals. especially pre-internet when you didn't have access to pricing and trading information and volume information. the basic information like that. you needed that bloomberg terminal. i think there is truth to what you're saying, people need this. if they seek the truth and find out what actually happened and it turns out it's something more minimal like log-in information and it doesn't seem to be, again, that much into the personal space of these traders, i think they'll move on. i think customers should also reach out to bloomberg this morning and say, what's going on? what sort of information are you tracking and what sort of safeguards do you have in place to make sure that that information isn't improperly used by anyone, not just by the reporters but by anyone. >> john, thank you very much for joining us today. we appreciate your time. >>> at this point there's no evidence that that little camera -- i mean, what you're doing, for

the s.e.c. said the breach was made possible because iss doesn't have sufficient controls in place to prevent this from happening. the iss a very significant and well-known proxy adviser settling the charges by paying a $300,000 fine and retaining an independent compliance consultant. scott, back to you. >> mary, thanks so much. mary thompson with that news. >>> watching the markets, as i said. it's worth note that the dow jones industrial average is now positive. it's up seven points. you see it's a mixed market. it has been quite a volatile market from the get-go today from the steep sell-off we saw in asia throughout europe to the way we open here. certainly looked like it was going to be a fairly ugly day on the street. definitely volatile as stocks react to the fed, what a fed might do with the policy effort going forward. certainly jittery. but our traders for the hour are pete and stephanie and anthony and joe is going to be on in just a moment. pete, let's talk about this comeback. it is

they have issued a statement later in the day asking the s.e.c. to transition into basically reinstating the liquidity replenishment points that the nje used to have, but as of right now, those last 30 minutes could be a volatile one and very heavy with the volume. >> courtney, thank you. when there is a rebalancing, there is a buying and selling of stock in a particular index and that's why we get the volume and the volatility. let's talk about today's market action with these gentleman. it's ken mahoney, david sieberg from keown and company, brian evans from bond street wealth management, and andrew wilkinson, from miller tabak. good to see you all. thanks for joining us today. so ken mahoney, we didn't get sell in may and go away, but could we get a june swoon if this picks up here? >> i think the path of least resistance is that stocks go higher. at the end of the day, you have a lot of must be managers are experiencing performance anxiety. and i'm not referring to what you see on the tv commercials, but you have averages up 13, 14%. many of th

why the s.e.c.is investigating a chicago brokerage. >> there is a new industry that's been created in washington, one i actually hadn't heard of until a year ago. the political intelligence industry. you know, lobbyists are paid usually to try and influence what the government does. increasingly, they have a sideline in selling information to traders, to wall street traders. and that is problematic. senator charles grassley trying to put a spotlight on this. you know, we used to call this journalism. the political intelligence world has an advantage that journalists don't have in getting information. and that is that they can make campaign contributions. that makes all the difference. >> well, when we talk about this, adam, it's really -- it's like a millisecond of timing. the funny thing is, though, that this article reminded me of trading places 1983, a movie a lot of us grew up on. the fact the duke brothers were trying to get the orange crop report just a little bit in advance. jen, you know thi

the s.e.c. says hnasdaq is getting fined for not understanding its decisions. >>> following in the footsteps of city leaders, he's proposing the county adopt a similar minimum wage hike for workers in its unincorporated areas. the minimum wage went to $10 this past march but only covers workers that border the city with different wage levels. staff will review the proposal and report back to the government operations committee in august. >>> it's a reality for many homes. a study released says moms are now the primary breadwinners in 40% of u.s. households. that's up fourfold from 1960 when it was only 11%. more than 5 million of those moms are married and take home more money than their husbands. 9 million are single moms. the public has mixed feelings about women working outside the home. about 67% says it has made it easier for families to live comfortable. 74% say it makes it harder for parents to raise their children. >>> the 86 scrips national spelling bee is under way, and for the first ti

maybe the first tipoff should have been the s.e.c. workers caught downloading porn. is center of this irs storm, resing to answer questions and getting put on paid leave. and a key state department player in the benghazi mess getting a white house nomination for a promotion. we're not saying all government

the s.e.c. didn't want this. they're going to have a new program that comes into effect in august that will put circuit breakers in effect throughout the trading day. let's hope it happens quicker than that. guys, back to you. >> indeed. thanks, bob. let's talk about this incredible 24-hour period for the markets in our closing bell exchange. michael farr, cnbc contributor from farr miller in washington, david kudlow from mainstay capital management, joe tanias, and warren myers who works on the floor here with dme securities. let's start with you on this crazy trade. obviously, we were following the lead from what happened in asia overnight and europe this morning, but we've come back today. what happened? >> you know, i look at it this way. the fed minutes that were released yesterday, i think, was a test by the fed to see what would happen if they hinted they might to tighten a little sooner than people anticipated. and we had a sell-off, and europe and japan got the brunt of that sell-off with a little bit of

london wailes did not make a the s.e.c. look good so they're making their own reputation at the expense of jpmorgan. >> is regulators trying to rebuild their own reputation by cracking down to demand things and put him in the spotlight? >> not just him but every year they make an example of. and. melissa: that is true of. it was goldman sachs now it has changed to j.p. morgan. >> also big america when they didn't get approval of the capital plan then last year we saw this third get a slap on the wrist than they had to regup a submit again. so what they're really wanting to do is maintain control to make sure the risk-management continue to get better with the issue that the bar will raise. melissa: is that part of it? there is another part to talk with a senior executive flying enduros. "the new york times" says it was a scheme that transform power plants into power centers that sounds fantastic but there was some wrongdoing. jpmorgan put out a statement that says they strongly dispute the executive in question had acted ina

today settlement with the s.e.c. is the biggest penalty ever for a stock exchange. the s.e.c. used disruptions, made it difficult to buy and sell. this was a year ago. it was such a disaster. that facebook ipo which was supposed to be available to everyone, common people, we're all supposed to be able to buy a piece of that, i think a lot of people are missing this stock market rally buzz they mistrust wall street in part because of that debacle of facebook ipo. no comment from the nasdaq. >>> a new study says one group benefits the most from tax breaks. who do you think it is, john? >> the rich people. >> it is. the cbo looked at the ten biggest tax breaks. $163,000 enjoys half of those breaks. they get it from mortgage interest deduction, lower rates on capital gains, at the low end households making less than $50,000 claim about 8% of tax breaks. that's new breakdown from the congressional budget office. >> so unfortunately unsurprising, i have to say. >>> one thing you need to know about our money? >> in some housing markets sellers are calling the shots. a new century 21 s

that we've seen at hss, at the fcc, at the s.e.c. d now here in the senate. >> joining me right now, sahil kapor for "talking point memo" and michael scherer, white house correspondent for "time" magazine. tell me the chances. let's do the bottom line politics. what are the chances that harry reid, democratic votes, to change the senate rules to the president can at least get his cabinet members agreed to by the senate with 50 votes if they control the presidency or 51 if they don't? >> i think majority leader harry reid is going to face a significant amount of pressure to move forward with the nuclear option if republicans block these three nominees. >> okay. speak the language -- don't use nuclear option. okay? what are we talking about? getting rid of the filibuster, majority vote, you mean? >> right. so using an option that lets the majority leader change the rules of the senate with bare majority. usually it takes a two-thirds majority. >> and push that through by majority vote? >> exactly. >> under the principle that the senate

and we've seen the s.e.c. wrestling with this and regulating chinese-owned intent 'tis. g the reach of american regulators into china in a weird way that a lot of us haven't really foreseen and the implications of that are going to be drawn out. >> lots of angles to this story and everybody has their own opinion, but great debate, guys. eamon, michelle, peter, thank you very much. >> thank you. >>> up next, black market cronut. ♪ [ engine revs ] ♪ [ male announcer ] just when you thought you had experienced performance, a new ride comes along and changes everything. ♪ the 2013 lexus gs, with a dynamically tuned suspension and adjustable drive modes. because the ultimate expression of power is control. this is the pursuit of perfection. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ [ whirring ] [ dog barks ] i want to tr

also said to be nominating tom wheeler to head the s.e.c. wed in april. the purchasing managers index came in at 50.6 in april, below estimates and down from 50.9 in march, that slowdown was led by a job in export. coming up next, much more from the president of the council on foreign relations, richard haass with a new book out. we'll talk about why he thinks the biggest threat from abroad may be in our own backyard. and fed policy makers wrapping up a two-day meeting today. investors will be listening for clues as for when the fed's money policy will end. and a lot more when we return. [ penélope ] i found the best cafe in the world. nespresso. where there is an espresso to match my every mood. ♪ where just one touch creates the perfect coffee. where every cappuccino and latte is made at home. and where i can have exactly what i desire. ♪ nespresso. what else? ♪ we replaced people with a machine.r, what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally.

the irs. a lot of americans, you know, haven't paid any attention to hhs, s.e.c. and fcc. ey know what the irs is. and now what you've got is an administration that based on the ig's report at the irs, engaged in shutting up, if you will, quieting the voices, discriminating against, conservative groups who would criticize the administration. this is a huge, huge story. >> and they also lied about it, sir. i mean, when you look at it, all of the leaders, all of the leaders, whether miller or schulman or lerner, they knew over a year ago and testified before congress they disobedidnw thing and filtered into washington, d.c. i guess i would like to hear your reaction today, attorney general holder said that department of justice, aka, the fbi, i guess, is going to investigate the irs. in your judgment, is that sufficient, or do we need a special prosecutor or a special council to investigate the irs? >> well, that's fine. but the real investigation, the one you know will be objective, the one that the american public will pay attention to, will be the congressional investigati

the s.e.c. has filed actions. the department of justice will be following along. >> that's the big question. doj which we have not seen anything out of -- >> i think you should expect to see something soon out of doj and the banks probably didn't expect us to file a lawsuit. >> clearly they didn't. if they did, they probably would have stopped. >> probably would have been a little more cooperative. it is time for accountability. the american people -- the banks don't give you a buy if you forget and lose their documents. they don't deserve anything else. >> new york attorney general eric schneiderman, thank you for coming on. >> thanks, chris. >>> right back with click 3. when you vote for flo, we'll have discounts. ice-cream discounts. multi-cookie discounts. pizza loyalty discounts! [ kids chanting "flo!" ] i also have some great ideas on car insurance. [ silence ] finding you discounts since back in the day. call or click today. i like her. >>> if there is a bill proposing new taxes, chances are grover norquist

the s.e.c. has filed actions. department of justice will be following along. >> that's the big question. doj which we have not seen anything out of -- >> i think you should expect to see something soon out of doj and the banks probably didn't expect us to file a lawsuit. >> clearly they didn't. if they did, they probably would have stopped. >> probably would have been a little more cooperative. it is time for accountability. the american people -- the banks don't give you a buy if you forget and lose their documents. they don't deserve anything else. >> new york attorney general eric schneiderman, thank you for coming on. >> thanks, chris. >>> right back with click 3. i don't make any decisions about who to hire without going to angie's list first. you'll find reviews on home repair to healthcare written by people just like you. with angie's list, i know who to call, and i know the results will be fantastic. angie's list -- reviews you can trust. thto fight chronic. osteoarthritis pain. to fight chronic low back pa

he picked to be the first head of the s.e.c. man who had been deeply engaged in the industry and whoic a knowledged he had been engaged in the practices that were being banned. he was picket precisely because he would be effective in stopping them. he said, i know all the tricks, and his name, by the way, was joseph p. kennedy. >> i think you look at that standards, the four largest banks, holding 7.8 trillion, and we talked about too big to fail. i think that's a terrifying prospect. in fares they got bigger, because the federal government asked them to. it was the bush administration that said to jpmorgan chase, please don't let them fail, that had cause a problem, take them over. secondly, the critical statistic here is not whether they're big, but how well regulated they are. they are much better capitalized than they were before. finally, and this is it is most important point, we changed the law so the federal government cannot now provide aid to these institutions if they are in trouble and keep them alive. sarah palin was

is the culture of intimidation that we've seen at the irs, that we've seen at hhs, at the fcc, at the s.e.cere in the senate. >> joining right now congressional correspondent for talking points memo and michael sheer. tell me the chances. let's do the bottom line politics. what are the chances that harry reid, democratic votes, to change the senate rules so the president can get his cabinet members agreed to by the senate with 50 votes with the control of presidency or 51 if they don't? >> i think majority leader harry reid is going to face a significant amount of pressure to face forward with -- >> speak the language -- don't use nuclear option. what are we talking about? getting rid of the ma sdwrort vote, you mean? >> right. so using an option that let's the majority change the rules of the senate with a bare majority. usually it takes a two-thirds majority. >> and push that through by majority vote? >> exactly. >> under the principle that the senate rules could be changed by majority vote or it's a new senate or what would be his rationale for being able to do that without breaking the

late they are week a bill that would repeal the 2010 health care law and an s.e.c. bill to require the securities and exchange commission to acquire a cost benefit analysis before implementing now regulations. looking at our primetime schedule on the c-span networks, here on c-span, following the house, reaction to the justice department's decision, you heard about, allegedly, the alleged targeting of political groups by the i.r.s. on c-span2, a hearing on a rule that would provide cable groups to provide certain subscription so people pay for channels they actually watch. nd a proposal to lower the level from . to .5. and now, the senate judiciary immigration bill, you can follow it live on c-span3 or online. earlier on the house side, republicans who opposed the immigration bill they talked about the portion of the bill that allows undocumented immigrants to apply for citizenship. his is half an hour. >> good morning, appreciate you being here. we ordered up a nice day for an outdoor press conference so we could look at the capitol in the background and talk about

as we speak, the american petroleum institute is suing the s.e.c. to stop that from happening. >> rose: they do not want it. >> so ask yourself why. why would that be? and -- because daylight is everything. it's a revolution, i would say, of transparency and it's happening across all sectors and this year's g-8 it will be a theme for david cameron, the prime minister is going to really push on this. >> rose: what have you come to appreciate or not about capitalism and the private sect and the kinds of things that you are obsessed by and on a mission to change? >> capitalism i mean, creative capitalism has probably pulled more people out of poverty than any other ideology. but it needs to be reimagined for the times. it hasn't caught up. it's a big, powerful sort of neanderthal force and i think, you know, we -- we cannot underestimate the role of commerce and -- but i think -- i think it has to catch up with the age. growth, by the way, in the developing world will be a huge driver for our growth. i've had meetings recently -- >> rose: growth in the

icahn and southeastern management telling us the board they want at dell, according to a filing with the s.e.cappears that icahn and southeastern each now nominating directors. as for icahn, he wants icahn on the board. remember, he sits on a range of boards including starfire, cvr energy and tropicana. in addition to himself, icahn wants what looks to be a range of venture capitalists, officers at icahn capital among others. in addition, southeastern nominates six persons, taken together looks mostly like tech consultants and lawyers. back to you. >> thank you very much, josh lipton. this is unusual on carl's part as josh mentioned, he serves on a few boards. cvr is the last board he took an active role and served on the board for. let's say you're sitting on a board. what's your move? >> if you have a tight stop on this thing, i think you can still play dell from the long side here. i'm not speaking to the business necessarily. i know the stock has sold off. we obviously had it 14.25 a little while ago. i think you can own it within an extraordinarily tight stop, understanding that this coul

and i hope all other standing committees in the senate who have jurisdiction over the f.c.c., the s.e.c., h.h.s., and of course the i.r.s. will on a bipartisan basis get to the bottom of this and find out here it leads. >> for an administration that promised to be the most transparent in history, the obama administration has a credibility gap that's growing at an alarming rate. we now know that there were senior administration officials that knew about the bullying of conservative-leaning organizations. "the washington post" is reporting that confidential information in those conservative organizations were released to propublica. if you look at all these various things that the leaders have mentioned, whether it's fast and furious or benghazi or the s.e.c. or the f.c.c., you go right down the list, this is administration that's playing really fast and loose with the rules and should be a concern for all americans. and just as a personal example of this, last month i sent a letter to the e.p.a. because the obama administration had released the information on 80,000 farmers and ranchers