valukas says the s.e.c. new that lehman was being less than truthful when it said that it had enough assets to survive the crisis. but that and other damaging information was never disclosed to investors who continued to pump billions of dollars into the firm. >> should it have been disclosed? >> absolutely. >> isn't the government, the s.e.c. in this case, the people who were supposed to protect the investors... >> yes. >> aren't they charged with informing investors? >> yes. >> why didn't they do it? >> they may not have had the expertise necessary to understand the material they were receiving. they were getting the material. whether they understood it is another question. >> the very fact that government regulators were inside the company with access to its books and records would complicate any prosecution of lehman officials. until january 2012, david kotz was the s.e.c.'s inspector general. over the previous four years, he'd issued more than 100 reports about major deficiencies in the way the s.e.c. di

the s.e.c. has declined to comment. the other twist here is that while we're learning here from dow jones that the s.e.c. is apparently investigating here, one of the attorneys apparently consulted in this whole process from the outset by pershing square was robert kutzami, a former s.e.c. enforcement chief, who you would believe would have signed off on this process of being able to acquire a large stake in allergan knowing that a joint bid for that company would subsequently be coming. so that's the latest now. and that makes it even more of r an interesting story. the khuzami angle, a gentleman inside the securities and exchange commission as it related to their enforcement division. it's a story we'll continue to follow. the s.e.c. at this hour to cnbc has declined to comment. but that story is one we'll keep our eyes on for certain. we'll be back to you as we get any more developments on it. >> scott, thank you very much. a very controversial double-team as you point out there. >>> moving on, check out the major u.s

. >> the s.e.c. rules only impact which one of these. >> the s.e.c.rules only impact the mutual funds. the money market mutual funds. two provisions. one that looks at the institutional money market fund and that's looking at the underlying value of this fund. normally it's pegged to $1 a share and they want to make sure people understand what it's truly worth and they'll have a floating value now for these funds. >> and they'll trade like mutual fund? >> exactly. >> that's a very big consideration because this whole perceived risk idea is part of what is breaking the buck idea is about and a run on the bank and that's what they're worried about. a run on these funds. they don't want people to stampede out. >> that's part of the reason the government had to get involved. people did do a run opt banks and when it got broken people started pulling out their money and the government stepped in and said -- we'll cover you. >> so taking these withdrawals is another provision of the rule and that's looking at all money market mutual fund making restrictions

why weren't re talking about the s.e.c. in the middle of this instead of a drebt lawsuit? lawsuit will have the effect if heard and perhaps even successful of actually being heard and done prior to when valeant might be able to succeed in its takeover, where it as if there was any s.e.c. action on this, long after allergan was already a part of valeant. >> and research and facts? >> had an opportunity to read the complaint and say this, it reads really fun. it's a fun read. i didn't bring it all down but will try and tweet it out. you'll enjoy it. >> weekend reading? >> between a billionaire hedge fund manager and valeant. good stuff. well done. >> david faber, thank you, a complicated situation. >>> watching the markets trading lower after the dow fell more than 300 points in trading yesterday. bob pisani is on the floor with the latest. a slew of economic data. some positive. some sap the market was right for a pullback. what do you hear? >> a lot of people waiting for the european market to close because a lot of people feel europe is a major part of the problem. look a

and it's something that, as we know, the s.e.c. ooking at very carefully. >> and robert, you've been covering deals for decades. what do you think when you saw this lawsuit? >> what's interesting is ackman and the allergen folks clearly expected this would come under scrutiny, and what they said from the outset, and we had them on "squawk box," and they said, look, as long as there was a contract, that said, basically, we're investing under the premise that you're going to make the same, we're going to be a partner in that deal. as long as there is an open contract explicitly saying it's a condition of this deal, it's not insider trading. and there are a lot of investors that are going to wait to see whether this clears the courts. if it does, there's going to be a lot of people that are going to mimic this, but you can bet that ackman and his folks had some very good lawyers look at this and write those contracts carefully to avoid it. so, i don't know that this is going to succeed, but maybe they were wrong in this analysis. >> ma

the so-called big five made up of the s.e.c., the pacific 12, the acc, big 10, and big twelve, well,to make their own rules regarding issues affecting athletes and competition. the endorsement needs to pass a 60-day veto period. >>> and then there's this, metaworld peace, formerly known as ron artest is changing his name again, this time to the panda's friend. okay sounds more like a phrase than a name but who is keeping score? he'll also begin playing for the chinese basketball association all of which has pandas rejoicing across the globe. >>> closing arguments from the defense in the oscar pistorius trial on at this very moment. details just ahead. no problem. you want to save money on rv insurance? no problem. you want to save money on motorcycle insurance? no problem. you want to find a place to park all these things? fuggedaboud it. this is new york. hey little guy, wake up! aw, come off it mate! geico. saving people money on more than just car insurance. just you...with the when gray creeps in do you lose it all? not you. new touch of gray mustache and beard reduces gray witho

. >> this is one of the big kearns of the s.e.c. during twitter's ipo process, because the numbers are yoursed to calculate advertising fees. how can you charge potential platform partners base and fake accounts that aren't interacting with you? an important number and one the s.e.c. raised kearns about. it you're twitter, be careful. >> short but an interesting read. >> not fake bots. they're bots. >> real, too, people? >>> europe lp close in about 90 seconds. >> carl, extending losses. people worried about a convoy coming from moscow towards were ukraine. recently cutting the losses back. the big news, a plunge in german investors sentiment revealed today. it went as an index from 27.1 right the way down to 8.6. of course, don't forget german gdp released thursday could show contraction. even within german industry, now getting some quite clear comments that things will get worse as a result of what's happening with the east are and also with russia. henkel came through with results and the ceo -- it's a huge consumer products comp

the big ten, you might have one or two great players and the s.e.c. school football you have 15, 20, or 0 to choose from. but i think urban meyer is changing the model a little bit and raising the bar without a doubt and mark d'antoni as well. >> we have been focusing on the s.e.c. and big ten. s.e.c. has a channel now dedicated to the s.e.c. there is already a pac-12. oregon and ucla loaded with great players. heisman candidates, maybe in both schools. >> well, it's funny you bring that up, because nobody ever talks about the pac-12. we make a point on "college gameday" talking a lot about the pac-12 but still that east coast bias. people focus on the s.e.c. and even the big ten and big 12. people don't watch the pac-12. it's harder. they are making strides. larry scott their new commissioner is trying to get people to realize they play great football but they are this close to overtaking the s.e.c. in my mind as the top conference in the country. >> tell us a little bit about this one kid miles jack who plays for ucla. >> throwback. he played lineba

and the big tone meets the s.e.c. as the badges of wisconsin battle it out with the slr lsu tigers. this will be a test. fredricka, i don't even know if i have a voice after today. because these guys are keeping it loud. >> yeah! >> wait, wait, wait, wait. one, two, three, roll tide! >> roll tide! >> one, two, three, go mountaine mountaineers. >> go, mountaineers. >> back to you, fred, i lost it. >> we'll get you some hot water, a little hot tea out there. i know it's like 90 degrees out there, but your throat needs it. >>> coming up, a story of survival. you'll meet the unlikeliest of drug addicts and find out she overcame her addiction. ♪ from safety, to fuel economy, to quality, today's chevrolet has it all. and it's a good time to see for yourself. this labor day, check out great lease offers on chevy's award-winning, fuel efficient lineup. just announced, get additional $500 bonus to lease this 2014 chevy malibu lt for around $189 per month. find new roads at your local chevy dealer. ♪ so nice, so ni-i-i-ce ♪ sweet, sweet st. thomas nice ♪ so nice, so ni-i-i-ce ♪ st. croix, ful

i think it's much more likely that the s.e.c. les after the fact because we have other guys like carl icahn saying this sounds pretty interesting and pretty smart. we may think of doing something like that. >> between this and herbalife, job security, ackman lawyer. >> unclear whether the s.e.c. from an administrative perspective can change the law straight up. you might actually need congress might actually have to enact the law -- >> when congress stops insider trading themselves. >> right. >> by the way -- >> we should clarify just the most important because we talk about insider trading. insider trading unto itself is traditionally a criminal act. this is not that. this is a civil issue and to the extent any rules have been violated, and we don't know if they have been, it is strictly a civil act. >> also rules, the insider trading rules are very vague. they're very difficult to prove. >> this isn't 10-b-5. this is 14-e-3. >> did you really throw out the 14-e-3? >> that's hot. >> i wasn't excited until just now. >> all right.

. >> you need the s.e.c. >> adam smith said that markets fail. arkets fail because of monopoly, pollution, they fail because of public dpoods like the need for a police force, they also fail because of what economists called asymmetric information. i can exploit you because i coerce you with the tip of a gun or use insider information and use it to moyemy own gain. that's why we need the government as well as a well-functioning safety net for the poor. absolutely. >> but how do we get good public policy when congress is under the thumb of the big donors who contribute to their election on their reelection? >> for one thing i don't want to make it so stark. it's not true that every member of congress is under the thumb of businessmen or capitalists or public secretary unions. i know a lot of people in congress who are very serious about their independence, number one. number two, it's in the hands of citizens to demand a representative government. we can get this. the problem that we have is that we have a little bit of a conspiracy between the rig

earlier i told you the s.e.c. had declined to comment.uare has put out a statement which i do have here. but i can tell you that i just got off the phone with bill ackman himself. he confirmed that neither pershing square or valeant took any steps towards a tinder offer before buying allergan stock. that would be prohibited under the law. you could not propose a tinder offer or take any steps whatsoever towards a tinder offer and then acquire the stock. so he tells me neither pershing square or valeant took a tinder offer before buying the stock. it was only after allergan rejected our three offers that we decided to launch an exchange offer. ackman speaking with me, confirming what this statement from pershing square says. now, valeant has made a comment saying, we are confident the trading was completely lawful as our reply to allergan's frivolous lawsuit will make clear. va valeant are also referring to the allergan lawsuit of earlier in the week or last week, accusing pershing square and valeant of insider trading. so that's the lates

. >> jim: all those years, the s.e.c. on cbs. mcgloin has his target. ng in for the touchdown. brice butler. >> phil: mcgloin looked sharp every time i watched him play, good footwork, hops around, gets rid of the footbquall icker. made a few good throws where he got nothing out of them, throwing the ball with more power and, of course, the second year under greg olson, offensive coordinator, he has this offense up and down, shows when he goes in. >> jim: brice butler looking good. >> phil: he can catch your eye just the way he looks. >> jim: two-point try went to -- incomplete. >> phil: criner unable to catch it. rolle broke up passes, been everywhere, he solidified his spot and his place on this football team, no doubt. >> jim: exchanges words with trent edwards who came into the league had through the buffalo bills by way of stanford. happy day fo eddie lacy. >> phil: it certainly is, preseason, better player than he was last year, i like the hat. >> jim: i like it. >> phil: they issue these to all the players in the nfl. every team has them. so when

. >> jim: all those years, the s.e.c. on cbs. mcgloin has his target. ng in for the touchdown. brice butler. >> phil: mcgloin looked sharp every time i watched him play, good footwork, hops around, gets rid of the football quicker. made a few good throws where he got nothing out of them, throwing the ball with more power and, of course, the second year under greg olson, offensive coordinator, he has this offense up and down, shows when he goes in. >> jim: brice butler looking good. >> phil: he can catch your eye just the way he looks. >> jim: two-point try went to incomplete. >> phil: it. rolle broke up passes, been everywhere, he solidified his spot and his place on this football team, no >> jim: exchanges words with trent edwards who came into the league had through the buffalo bills by way of stanford. happy day for eddie lacy. >> phil: it certainly is, preseason, better player than he was last year, i like the hat. >> jim: i like it. >> phil: they issue these to all the players in the nfl. every team has them. so when they walk around during training

last week, the s.e.c. proposed rules to keep the companies from bidding together. sprint, which is controlled by japan's softbank was replaced with telecom entrepreneur marcel who has no wireless network experience. sprint, down by a whooping 15%. t-mobile u.s. down by 7.3 and deutsche telekom shares, a parent company, down by 3%. reports say t-mobile will reject a takeover bid from iliad today. allen moore joins me on set. just in calm of hours, deals worth $100 billion have fallen through in the united states. does that worry you in terms of risk sentiment? >> no, it doesn't. this year we've seen a large increase in m&a. 89d obviously, these two are for different reasons. the rules in the u.s. are a lot different than elsewhere regarding m&a. >> do you think that valuations in the stock markets are simply too high because many of these deals are simply falling through. >> a lot of markets have gone up a long way in the short-term. and over the long-term, markets move in line with earnings. earnings going

the deal is expected to get approval from the justice department and the s.e.c. me during the first quarter of next year. >>> and as we head into break, why not leave you with a look at the s&p 500. breaking through that 2000 mark yesterday. where is it heading today? what does it indicate to you, incidentally? can it keep going? has it gone too far too fast? does it mean anything specific? are markets going to move higher in the u.s. and lower here in europe? let us know. share your thoughts. find us on e-mail, worldwide az cnbc.com. @cnbcwex on twitter. >>> hi, everybody. welcome back. i'm louisa bojesen. threatening to pass the 2000 level. >>> amazon buying twitch for $1 billion. >>> and warren buffett is helping burger king to lower up, reportedly financing its deal with tim horton's. >>> stephane pedrazzi is outside the pallis for us. we were discussing earlier what governmental changes mean. recap some of the main points for viewers just joining us. >> it's more than just a conflict between the prime minister and the economy minister. it's more -- we're expe

now the s.e.c. or f.c.c. or some government agency is investigating. who is high now? he tape. ♪ >> all right, it was the fcc that's investigating. i think this is money well pent, right? >> i don't know. one man's twerking is another man's first amendment right. first of all, the nbc knew what they were getting. it's miley cyrus, she's very raunchy. she was doing this concert that she did on tv featuring huge bananas and twerking with abe lincoln and dancing joints. when you watch it, you want to put on rubber gloves and a surgical mask and take a shower afterwards. they knew what they were getting. >> the fcc fines that miley cyrus did something on television, what happens to them? >> i don't know. >> how would you punish them? >> we should keep watching the video over and over again. here's the obscenity here. how boring risky behavior has become. this is their idea of edginess. if she wants to be edgy, grow up, put on some pants. she seems like she's always dressed for the operating table. >> but in this case, they seem like they are picking on miley cyrus. they onl

they're trying to gain credibility here in the united states, trying to win over investors, and the s.e.c you'll want to look like you're putting the cakcamkibosh on counterfeits. >> gray market is when a retailer gets stuff and sells it. ali baba is saying we'll get rid of all the gray market stuff if you join their high end place. it's definitely a use the market force. basically pay up and open up a store or other people will sell their stuff. i'm not sure of the legality, but it's certainly very strong army. >> it's interesting fto see tha when they do open up these stores, it completely wipes out the other vendors. they had a graphic that said armani, ralph lauren, gucci, they saw the number of unauthorized secondhand svvendo go up. >> they actually take them out. that's the point the article was making. >> comes down to customer experience. no matter which way, if you need to get it surfaced, if there is a warranty involved, you want to get that through some of the great marketers. and that will hurt ali baba if too much are up for too long. >> simply alli baba's interests as well.

sam was the co-defensive player of the year in the s.e.c., he showed a glimpse why against new orleansshing the game with one tackle and one hit on the quarterback. the rams fell short to the saints 26-24. >>> and on the diamond, the nationals will look to bounce back after a late 7-6 loss to the braves. tanner o'rourke will be on the mound tonight, first pitch at 7:10. hope your saturday is a good one. >>> well washington wizards star john wall plans to make this saturday a good one for a group of d.c. kids. he's going to host the back-to-school squad. 250 kids will all get new backpacks and t-shirts, pencils, composition books, courtesy of wall and a few sponsors, the photo is from yesterday when he held a similar event in his hometown of raleigh, north carolina. the kids walking away with all the fun supplies and an autographed picture of the star as well. they just love that. it's nice to see him give back. >>> that does it for news4 today. we'll head back to the news room. we'll bring you your fresh trading-in or selling your car, truck or suv? webuyanycar.com takes the hassle out

didn't think they were getting film production for the price of $73,000, which is what they fold the s.e.c. they were bribing him. he's now going to go to prison for 25 years because he got caught for taking a bribe and covering it up. he's pled guilty to helping them do it. but what about them? who was in charge of the ron paul campaign when this was happening? who done it? this man is the campaign manager now for senate minot leader mitch mcconnell. he's the top republican in the senate. he will become senate majority leader if he succeeds in his plan for republicans to take over the senate this fall. his campaign manager is jessie benton. jessie benton at the time was bribing people for their endorsements in iowa in 2011, at that time he was in charge of the ron paul for president campaign. that october before the iowa caucuses, this is the e-mail from the kent sorenson camp laying out kent sorenson's demands how much he wanted to be paid to switch his endorsement to ron paul. here's the reply saying he really wanted to get kent sorenson on board. the following month, december 26, a ron

now the s.e.c. or f.c.c. or some government agency is investigating. who is high now? ♪ >> all right, it was the fcc that's investigating. i think this is money well pent, right? >> i don't know. one man's twerking is another man's first amendment right. first of all, the nbc knew what they were getting. it's miley cyrus, she's very raunchy. she was doing this concert that she did on tv featuring huge bananas and twerking with abe lincoln and dancing joints. when you watch it, you want to put on rubber gloves and a surgical mask and take a shower afterwards. they knew what they were getting. >> the fcc fines that miley cyrus did something on television, what happens to them? >> i don't know. >> how would you punish them? >> we should keep watching the video over and over again. here's the obscenity here. how boring risky behavior has become. this is their idea of edginess. if she wants to be edgy, grow up, put on some pants. she seems like she's always dressed for the operating table. >> but in this case, they seem like they are picking on miley cyrus. they only got fo

the specifics of the complaint, basically say, again, not the s.e.c. brought this complaint nor, of course, the doj in any way. simply allergan on behalf of its shareholders saying bill ackman along with valeant new or had material information about a coming tender offer from valeant and tlmp viherefore violated in trading. while in possession of non-public information about about upcoming tender offer. if you recall, of course whshs valeant's first offer was made, it was not a tender offer. but in their complaint, allergan says it that while that may have been the case it really was not more than sleight of hand. valeant and ackman preparing a tender offer doing all the things you would do in anticipation of a tender offer down the road, which is now in place. so they are, again, alleging insider trading on the part of mr. ackman. as, and along with valeant. as for mr. ackman, that's in the complaint, worth a read, no doubt about it. mr. ackman, you've interviewed him many times, scott. in fact, discussed this very subject with him, because when it fi

everybody wants to get in and the company even though it's still communicating with the s.e.c. o dot is and cross ts, there's a sense that the company just didn't want the hubris of bringing long-only fund managers in boston and baltimore back from vacations. something they would forget easily? having to do that? just to buy in on this deal? i don't know. >> i don't no if we can count it volatility. 16, 17? come on. >> true. a major indicator. ideally, around 11 or 12. had it last week until the end of the week. hoping for that again in september. >> yeah, interesting when it finally comes. >>> meantime, get to the cme group. rick santelli with "the santelli exchange." rick? >> hi, carl. as i look at the board i see the stock market is at least referenced by the dow, popped up towards 74, positive on the day. and while that went on, of course a huge sell-off pushing yields up to 22338. ints tra-of-tra day, down to a 234 yield. the question everybody's asks, were we see a 2% on tens? many think it's possible. i'm in that camp. last may we went from 160 to 260 as i talk and earlie

relief from a lot of claims, mortgage backed securities, klaclatteralized, an set up from justice and the s.e.callenging effort to get a lot of different federal agencies and some states attorneys general together to get a blanket settlement so the bank were realize the peace premium. something to be said to shareholders, we have put this behind us. >> people will hear this and say, wait, sir. bank of america was not at the heart of this issue. countrywide and merrill lynch may have been at the heart of this issue. why should bank of america shareholders pay the price for mistakes made at countrywide and merrill link? especially when merrill lynch was pushes into the hands of bank of america? >> you can make those arguments. they have. not successful in court. >> how are they not valid? >> different deals differently. we don't absorb the liability. in other cases they got a cheaper price because they didn't make that sort of a deal. each of these is a different deal, and the fact is bank of america itself putting aside countrywide and merrill lynch was also in the business of pooling and market

you think about it, it's the first game of the college season, first game on the s.e.c. annel, first time south carolina/texas a&m has ever played. this one, the hype is every bit as much and as important as the game i will suggest to you. some great -- great teams. >> johnny who? the aggies won that game, by the way, 52-28. perry spent the early part of the week in new hampshire. speaking of new hampshire, guess who was there? ohio senator rob portman dipping his toe in the presidential waters. the "columbus dispatch" reports he is being urged to launch an exploratory committee for 2016. by the way, he's up for re-election in 2016 as well. bobby jindal and ted cruz have been crisscrossing iowa but announced they're planning a trip to new hampshire next month. eight prominent republicans have made or announced plans to make multiple stops in iowa, new hampshire and south carolina. been kind of busy these days but august usually is that before a presidential campaign starts. joining me now are nbc senior political reporter perry bacon. susan page and chris cillizza. welcom

berkshire reporting portfolio updates for the s.e.c. let's get to kate kelly. >> buffett announced a number of new or increased stakes yesterday as part of a rash of quarterly investment filings with charter communications being the biggest mover. berkshire took a 2.3 million stake in the company. berkshire raised its stakes in a handful of prior holdings, including verizon and gm. berkshire reduced its holdings in directv, where it sold about 11 million shares and conco philips, where it sold off 9.7 million shares. allergan, the drugmaker that has become a battleground in recent months abdomen it is pursued by a hostile bid. now other institutions are piling in, including blue mountain, paulson, viking, york and saralond. finally, carl icahn making news with an activist filing on the media company gannett. and arguing that the company is undervalued and should be split up. unsurprisingly, since some of icahn's activist targets have performance so well, it spiked higher this morning. >> what surprises you the most? >> gannett is interes

that is on the s.e.c. ich debuts today on espn. >> 9:00 tonight. >> that's right. >> stars a are aligned. >>> still ahead the democrats make a big bet to the tune of 9 million bucks but will it be money well spent? >>> a campaign under way to elect the dude. thousands of montana voters petition to get jeff bridges to run for the united states senate. we will have his response straight ahead. [ female announcer ] we help make secure financial tomorrows a reality for over 19 million people. [ mom ] with life insurance, we're not just insuring our lives... we're helping protect his. [ female announcer ] everyone has a moment when tomorrow becomes real. transamerica. transform tomorrow. [ female announcer ] aveeno® daily moisturizing lotion has active naturals® oat with five vital nutrients. [ aniston ] because beautiful skin goes with everything. aveeno®. naturally beautiful results™. >>> israeli and hamas are marking the longest cease-fire since their latest conflict began more than a month ago. overnight bot

the indictment had to be sealed for a week so the s.e.c. uld work behind the scenes to avoid upheaval in the markets. and then once the case went to the fifth circuit, the fifth circuit affirmed without a problem, affirmed the conviction. finally, the supreme court took the case, actually took it pretty quickly, by all standards, and reversed it 9-0 because anderson did not have fair warning that its conduct was criminal. witness tampering was not the appropriate statute to use and their conduct was not criminal at the time and the jury instructions, justice rehnquist wrote for the unanimous court, he said it was shocking how little culpability the instructions required. they had removed all elements of criminal intent from the jury instructions. the prosecutor primarily responsible for the arthur anderson indictment and conviction is now the head of the criminal division of our department of justice. her name is leslie caldwell. the co-prosecutor in the case, andrew weissman became deputy director of the fbi. he went back on his days from t

. >>> the s.e.c. has reportedly launched a probe into alternative mutual funds. e typically use investment strategies similar to hedge funds and command higher fees. "the wall street journal" says the targets firm black stone bank of new york melon and pimco. they're examining the liquidity of the funds and how they use leverage. banks are rt rodly lobbying the fed to delay the volcker rule by up to seven years. the provision would require banks to sell investments in private equity and venture capital funds. it bans them from making speculative betts with their own money. "the wall street journal" says a delay of the rule would impact large banks such as goldman sachs, jpmorgan and morgan stanley. >>> still to come on this show, interest in comic books has never been higher thanks to super hero movies and the monster success of conventions such as comic conin san diego. we get a pulse check on the industry. >>> welcome back to the show. let's have a look at how u.s. futures are doing early on this morning. they're looking quite perky. the s&p 500 taking fair valu

kwulting services to clients subject to applicable safeguards has long been permitted by the rules of the s.e.c, the pcaob and the aicpa. pwc's tax and audit service to caterpillar complied with these independent standards. pwc assessed its independence on a quarterly and yearly basis and disclosed to caterpillar's audit kwom any relationship that bore on our independence. pwc's provision of tax services to caterpillar as our audit client was entirely appropriate. chairman levin, and members of the subcommittee, thank you for the opportunity to testify about pwc's tax services with respect to caterpillar. we firmly believed then and firmly believe today the tax service wes provided and the positions that caterpillar took in that regard complied with the law and were entirely appropriate. like wise, we believe that our tax and audit engagement satisfied both the letter and spirit of the independence rules that govern our practice. we'd be happy to answer any questions you may have. thank you so much. what h we understand you're giving the statement or all three? >> that's correct. >> thank you f

of the pack 12, ohio state of the big 10, alabama of the s.e.c. and oklahoma of the big 12 might soon be free to pay players a few thousand dollars in addition to free tuition. ncaa president said: >> the ncaa has been facing mounting pressure to address the rights of student athletes, including the right to share in the millions of revenue dollars the athletes help generate. >> anybody who looks at the big time college football cable channels, all of the basketball schools with their nike contracts, or the ncaa tournament itself can't help but conclude that this is a big business. >> intensifying the pressure has been exbasketball star's lawsuit seeking compensation for the use of players' names, image hours likenesses and attempts led by northwestern football players to have players recognized at employees to they may unionize. >> it reassembles a dictatorship, the ncaa places rules and regulations on these students without negotiation. >> from here, the ncaa difficulties one schools have to vote on autonomy amid criticism that it widens the gaps

the only thing outstanding is a civil case between cohen and the s.e.c. ich is yet to be settled and the u.s. attorney says investigations are continuing. one note, i've just got ain't hold of internal e-mail from steve cohen talking to employees about the move and he says it's mutual and amicable. he says 2008 financial crisis and 2010 aftershocks tested us and we were rocked by revelation of insider trading by former employees. describes this as having been the toughest chapter in the firm's history. steve cohen, you rarely hear from directly. >> all right. kate, thank you so much. kate kelly with latest there. >> shrinking firm. best to run as a family organization, stay out of the crosshairs. no one wants the crosshair of the government justice department. people a. at home have to recognize the justice department calls, it's like, there goes my life. >> yeah. >> it's like -- >> if e.f. hutton calls, people listen. remember that. >>> coming up, rupert murdoch sounding off on twitter about google. wait until you see what he tweeted. we'll fill you in. >

what the details are, but it's thought to be along similar lines to a case he settled in 2010, with the s.e.c in regards to the idea that he misled investigators about the risks embedded in the company due to subprime mortgages among other things, tyler and kelly. he settled that in 2010, for just shy of $70 million. but this would be a new and a justice department suit, at that. >> yes, it would. kate kelly, thank you, for now. as we continue to follow that story. in the meantime, other news with our bertha coombs and a quick market flash, bertha. >> hertz coming off lows, dow jones reporting that carl icahn has reported an 8.5% stake in the rental car company. he says the stock is undervalued and may seek representation on the board. and we know what happens seek h well off the lows now down just over 5% after reporting disappointed earnings. kelly? >> bertha, thank you. now iowa, one of a dozen races that will determine whether republicans or democrats control the u.s. senate for the last two years of president obama's term. and race between republican joni and democratic bruce braley is d

none was bigger than the matchup of ranked s.e.c. foes texas a&m and south carolina. he first time since the defar tur of partner johnny manziel and his former backup did just fine. kenny hill breaks manziel's record with 511passing yards, and the ages snapped south carolina's 18-game home-winning streak with a convincing 52-28 victory. >>> meanwhile manziel playing with the pros. the rookie quarterback getting some work in during cleveland's final preseason game. and johnny football displaying the skills that made him a star at a&m. he throws a touchdown pass and rushes for 55 yards in a 33-13 win over chicago. but it will be some time before we see him play again. manziel did not win the browns' starting quarterback job. >>> and american teen cici bellis is out of the u.s. open. on tuesday the 15-year-old became the youngest player to win a match at the open since 1996 but last night she fell to serena diaz in three sets. >>> when we return, happily ever after. angelina jolie and brad pitt get their own hollywood ending and tie the knot in a secret ceremony. at kohl'

>> yeah, well, i think that's largely in the s.e.c.'s hands, bob. kind of bow out of those conversations. i think it's other people's turn now to have a shot at the debate. i think we were an active participant in that dialogue. i think we've been pretty clear about what we thought should change. and it's not about turning the playing field uneven in a different direction. it's just leveling the playing field and making it, you know, equally challenging for anybody, for everybody. but i think we've got to bring confidence back to the markets, and i'm confident that as i step out, i feel like we're on the cusp of having action taken around a lot of the conversations that we've had. >> and the criticism that's coming up against the exchanges -- >> can i ask a question? >> kevin, go ahead. >> duncan, i want to ask you a question on behalf of the younger generation of investors who are watching this incredible institution, but i brought my 17-year-old son with me to watch our panel work last month. his name is trevor. and he sat and watched it all, saw

thing -- by the way, this is the advice i've given to new cftc colleagues and my friends over at the s.e.cnd confirmed by the senate for these jobs, never think about being renominated. you will do the best job -- >> but are they thinking about their job in the private sector in forget about the renomination. but this idea that while you are making policy that affects these industries, you're potentially also drafting your resume to go out to those same industries. >> yeah. well, it was the same answer actually. because thinking about being renominated also means you're thinking about those that you might work for in the future. that you want to -- you don't want anybody coming in as an 800-pound gorilla and say don't renominate eamon javers, he's not a good guy. so you want to be careful. i think if anything, i don't think i've been too careful in calling them like i see they will. sometimes that's hurt me but i think i've been consistent and i'm pleased about that. >> bart, one final question. were you were leaving the cftc you gave a sort of dispiriting, but i thought extremely candid,

number 21 texas a&m routed them on the new s.e.c. network. o fear, gamecock fans, your team has a chance to play for the championships. why? because we have the playoffs. four teams will vie for the chance to play in the championship game, meaning one loss no longer dooms a team's chances. but there is a lot of downs between now and then. sports columnist for "the huffington post" and friend of the show jordan schultz joins us now to talk a little bit about college football and what to expect this season. first and foremost, ladies and gentlemen, there is a lot of questions about whether texas a&m can replace john myjohnny m. how great did he look? i think he'll have a better college career than johnny manziel. it's ambitious. but i want to talk to you about the playoffs. this is the first year that we're no longer going to go by this horrifically terrible formula known as the bcs, which caused a lot of controversy about who the top two teams were in college football. now there's going to be a playoff of the top four teams using a selection co

. >> citigroup facing restrictions on sales of hedge fund investments following a deal with the s.e.cthe bank reportedly sending hedge fund firms letters telling them it can't sell investments in hedge funds and private equity funds to clients at this point. and another company facing a security breach this time it hit a venture capital firm, kleiner perkins that famous california firm and detectives out there are investigating the theft may put some valuable financial data at risk. >> that's surprising. you would expect kleiner perkins to -- they're so tech savvy you would think they would be on top of everything on top. >> that is weird. >> all right when we come back, "squawk box" takes flight. airline stocks soaring to record highs riding on low oil prices and strong consumer demand. we'll put the best investing opportunities in the sector up on the board right after this. and then speaking of travel, las vegas welcoming its first new resort in five years. the big bet of one legendary hotel owner still ahead. ♪ ♪ over 1.2 billion eyeballs are on us during the two weeks at wimbledo

>> yes, sir, these are the 65 schools that are members of the five largest revenue conferences, the s.e.c., the big 12, the big 10, the pac-12, and the a.c.c. >> would you agree with me in my final first round question? that college sports has long forgotten the word amateurism? i'm talking particularly about the 120 major -- but you know, there's a lot more than that, that it's just a business? and the more money you can make, i mean, west virginia university signed on to the big 12, which guarantees one thing and one thing only. that means that most of the people of west virginia who are not high income or even moderate income cannot go to any games out in the southwest, but west virginia university sure makes a ton of money from it. how do you respond to that? is that right, is that fair, is that progressive? >> if i may, senator, there's two questions that are being asked there. the first is, do i believe that the 120 or so dominant schools, fbs schools, perhaps to whom you're referring, have abandoned the concept of amateurism? i would say, no, they have not. i certainly agree with y