a visa transaction as a credit or signature transaction.the merchant cannot route. it is visa'rs rules that set up this whole problem. this rule allows those sorts of rules to stay in place, if you look at footnotes 160 and 165 there will only be one signature option under this rule. for each transaction, it is always going to be visa, mastercard discover. whatever that signature network is. the rule, basically memorializes that. judge williams, we would be very happy if cross routing were prohibited, any pin network could process a signature transaction. we do not believe that is the case. in 2.5 years of litigation the first time that representation was made by the board was and that reply -- was ubin their reply brief in this court. we think this is a post hot rationalization -- we think this is a post hoc rationalization and we are not comfortable. if cross routing were allowed if a pin network could in any circumstance route a signature transaction, it would be fine. it would meet the statutory requirements. we do not think it does and

the transaction has to be processed as a visa transaction as a credit or a signature transaction. the her chant can't route in that circumstance. it's very much visa's rule that set up the whole problem. 165 of the final rule. the board recognizes under the rule there's only for each transaction. it's always going to be visa and mastercard. it's going to be discover. whatever that signature network is the rule pacifically memorializes that. we don't believe it's the case. the first time the representation was made by the board was in the reply brief in this court. we're not comfortable relying on it. if it were true that cross routing were allowed. if, you know, pin next couldn't in fact -- could in fact route a signature transaction one would be fine with us. it would in fact the statutory requirement. we don't this it does. the issue here doesn't provide for that, your honor. our position is that network and issuer and restrictions are part of this rule but it's the network and issuers that are restricting. the choice for the merchant. anymore questions, your honor? at the same

gold man and assistant superintendent lee, this is not an easy transaction, it is a complicated transaction and it looks at a number of properties, but i think that the bottom line is that this is a transaction where both parties benefit. and i think that that is one of the things that we do here in san francisco well. and we look for sort of the good in the transaction and clearly, this provides the benefits to both the school district and to the mission of my office, which is to create the additional affordable housing and so on behalf of the mayor's office, i truly want to thank you for your consideration of this, and clearly, we feel that this is a wonderful transaction and we look forward to working with you to close this transaction. and also, to collaborate with the district in the future, on any endeavor that you may have, whether it be the workforce, employee housing or the other transactions and the real estate transaction and the ovalles of the mayors is here it provide assistance in any way that we can, to support, the district and to support affordable housing, so thank you. >>

and i did teach myself as to how to analyze transactions and how do you. fight terrorist financing but the stuff h.s.b.c. was doing was not not very covert but when you went to your seniors when you went to your bosses and said hey guys i'm kind of clearing all these dubious transactions that could be linked to terrorists and drug cartels what did they say no average you're hallucinating doing any of that or did they say we know but you have to kind of shut up about it what was their reaction. well i there's an internal e-mail that the f.b.i. has and the cia has and sort of the united states congress when i went and i met with them about a month ago. called compliance error and i'm more happy to send an e-mail to you i still have it and it's compliance our e-mail is an e-mail from for me to management explaining how these debt collectors are approving funds that are going into gaza and they're going to hamas. what i was told was that hamas is not a terrorist organization now there are some people out there who believe that hamas is not a terrorist organiza

book which is the public ledger details of the transactions up to date and that's what i want to. bring to that ledger so you're. going to quickly go beyond. i'm going to run and second. it's going to time we generally. i can feel it i just feel my mind feels mining my mind i thought this is the equity conversion i simply thought about currency and now exists in some kind of cyber dimension but let's talk about people's discussion about crypto and it's becoming quite huge of course because bitcoin become a multibillion dollar industry and it's spawning all kinds of startups and venture capital there's a question about all these old callings where do they fit into the universe as creating multiple alter coins is dilute the whole bit calling crypto experience what are your thoughts i think. introduce people to their kind i think. people that wouldn't decline in a critical and saying ok what coin joke you know i don't know how to pronounce the venice. i believe her daughter maybe dog but ok so so this is a very it's a sixty million dollar capitalism capitalization of a crypto coin an

of every transaction goes to some you know german friends living the good life on your artwork sucker first well let's roll back the tape and look at that german war ship that was coming down here they were probably investigating their little investment in the royal mile now that you know a course the u.k. government left two point eight billion pounds on the table that is six times more than the bedroom tax which is throwing old people out to the street very severely disabled people out into the street people have committed suicide based on this and that's kristallnacht right there the government in the bedroom tax let's throw the british people out onto the street and it's open season to commit violence against our own people that's kristallnacht that's always morning cameron's kristallnacht tom perkins so it's not tom perkins the fact that you have to spend thirty thousand on a hooker davos this year is not does not does not mean you're suffering if you're in the bedroom tax you're thrown in the street you're starving to death because you've been scapegoated by you birkin's you're

his mind you know rhythm is the mathematics that underlie that pretty confirms all the transaction so you've got to hashing methodology is better in some great people that are different well it's different in the most current up to date one so you show up to five six which is what the previous generation of hushing function so both is tried and tested. and they're all the tykes one against so we decided that he's a new one this year which is said it's been selected off to five years of rigorous competition so we decided. and we also fought about trying to launch a cryptic when in a way it's really and the utilizes parameters that is the. only beneficial to the developers don't you guys are from bristol university there's be a hotbed of this type of technology also have the bristol pound and other alternative cars yeah so if you get your point here with this mining that goes on. there's a point now where people are using is very expensive mining breaks yes mine coal in which is they actually mining is the word used to solve these mathematical problems at least as the coins into the com

how do you feel about those big transactions being handled at the bureau level? >> guest: i think as a general matter if a proposed transaction involves a novel question of fact or law, that it's important for the full commission to weigh in on it. the neurotechnical reason is under our rules, the commission has to weigh in on it. but i think more generally, it is important for all the commissioners to be on the record as to the agency's evaluation of a transaction. i think it gives the decision more legitimacy if the public can know that all commissioners who have been, after all, nominated by the president, confirmed by the senate and who are accountable to congress have to make their policy views known. but in this particular case, if there isn't a novel question involved, then -- as a matter of principle, i think, it's appropriate to be handled on the bureau level. >> we reported that the belo order was originally circulated as a commission report. the sinclair merger is still sitting out there. should that be handled at the bureau level or by the full commis

i will say as a general matter to the extent of the sinclair transaction or any transaction that involves a novel question or a challenging question, the commissioner will ultimately be accountable for it. >> a report attacked the sharing arrangements that are involved in those transactions. there is a way to get around the fcc rules. do you think the commission to change those rules or are they going to change soon? >> i personally do not believe that the agreements pose a threat to consumers or are anti-competitive. they have significant competitive value especially at smaller but market -- at smaller market. wichita,t cities like a shared agreement might be the best way for a news operation to consolidate some of the upfront costs of maintaining an operation and focusing on what they really want to cover which is local news. we have seen evidence of it. companies to pour money into a doppler radar, for example, were a company was able to save millions of dollars which is then poured into a public safety communications feature. fcc tries is that the to attack a problem that does not exi

if you don't have the money to cover a transaction, this will just cut off the transaction. now there is a couple of things. paper check don't apply to this, and recurring payments don't apply but basically as you're throwing your debit card around, if you opt out, boom. if the money is not in your account it's not going to go through. that's just smart. also set up notifications if you're approaching a certain threshold in your checking account. let's say that you get down to the last $70, $50, you get a text in e-mail saying you're running low in the well and you should stop spending. all you have to do is be proactive, go to the bank and set it up. finally be smart about your money. if you don't have it, don't spend it. >> is is it like the banks like the airplanes, everything comes with a fee, and if you don't know about it, too bad. that's the way business is done these days. >> i hate to be so cynical to say yes, but yes, that's the way it is. banks have figured out fee revenue makes up the lyon share of the money coming in, not just overdraft charges but all the fees

transaction? is that an electronic ink transfer that has to go anywhere? >> the way the transaction works, it is converted to u.s. dollars and in our system we converted to a normal sale. it's similar to a cash transaction or credit card transaction. tax or rooml sales tax all caps paid in a regular course of business areas -- course of business. >> derek, are there any financial benefits to taking bitcoin? does it just cost less? >> for us, it is transaction fee free. there is a modest transaction fee when you convert back to dollars, but the fees are far less than credit card fees. so, there is an advantage from that sense. thealso the advantage of fact that revenues are going up. >> all right, want to thank you very much. thank you. the -- derekfrom stevens, from the golden gate hotel in casino and las vegas. i will talk to an academy award- winning snow maker on the big business of making flakes. ♪ >> brooklyn real estate. booming. yes. homes were up for the third quarter at a median sales pri

and goldman sachs and the problems that they had with transactions and marking them correctly peter you see is the auditors of both a.i.g. and goldman sachs and all of the auditors play important roles you know auditing government agencies like the fed were deloitte is in charge like the treasury where k.p.n. g. is in charge and the tarp program which peter b. a c. and ernst and young got lucrative contracts after the crisis to try to help clean up now can you give me a specific example of the types of transaction issues you're referring to. well let's look for example goldman's. enough global peter b. a c. was fully aware of weaknesses in their systems and weaknesses in their ability to control the transactions that corazon started doing he really pushed that company way beyond its core way beyond the kinds of things that it was really in business for but investing in sovereign debt and peter you see never raised any kind of concern about the weak internal controls or the we corporate governance corps and was trading on behalf of the company while also being chairman and c.e.o. and one

and bringing the entire transaction back. that would be the only concern. >> so ultimately as is you are okay with it? >> yes. as long as we can bring the agreement at the same time we are bringing the rest of the transaction. >> okay. the answer to any city attorney, any dispute over that? >> no. we are saying to amend it to the agreement. >> okay. at this point let's open up to public comment. is there any additional public comment? seeing none, public comment is closed. >> let me just clarify, i know kevin and others know how urgent it is to develop projects and especially for housing trust fund to really kick start the development of much much needing affordable housing. you are saying you are okay with the budget analyst to recommend that we amend this as suggested to be contingent on moa to be on final agreement with that. you are okay with that? >> yes. we understand we need to get amended language to miss young very quickly. all right. can i have a motion to make the budget analyst. can we take those without oppositio

all of the records of the transaction are in the ledger that is part and parcel with every single transaction and it becomes what you call a smart currency but i want to just talk a little bit about something you just said you mentioned that these are derivatives but they are real derivatives real derivatives that are derived their value from something of true value and we talked about this in the first half of the show in other words in the case of the current derivative market the value it derives from other derivatives so you have an enormous ponzi scheme there is no more gold in the equation anymore derivatives are. for owing to other derivatives but this generation of derivatives that you're talking about what you're introducing would be deriving their value from big going to going to as unimpeachable intrinsic value correct correct you know i there's a lot of discussion because i know whether it has any value a lot of people say it's just bits and bytes you know there's a lot of misunderstanding i approached bitcoin actually late to the game but i did it as a true student no preconceive

and that will apply it to any transaction as of the date they adopted the fpm. i think the better course is not to apply it until the final report and has been adopted. >> if the vhs is enacted but the other isn't -- does that address your concern? >> without a firm record on the question, i would not want to pre-judge what the appropriate course is. >> commissioner, sports blackouts -- will we see more? >> i hope not. it causes aggravation to the consumers and i hope the fcc moves with dispatch in the proceeding you mentioned where we proposed to get rid of the rule. >> does that to have to go through congress or can you do that administratively? >> there is steps the fcc can take administratively and we are in the process of doing that. >> you made a proposal about 911 calls from motels -- why? >> it struck me that this was a gap in our public safety communication. that it was screaming out for public awareness. i saw the story on twitter actually. someone gave me a notice about the issue on twitter and i read the story and couldn't believe this 9-year-old gir

this bill by streamlining transactions will free up s.e.c. resources to protect the public against public markets and passive investors. as baby boomers age, there's a tremendous transfer of wealth and streamlining that will occur over the next generation. as my colleague so aptly said it is estimated that over $10 trillion of privately owned businesses will be sold or closed as baby boomers retire. jobs are preserved and created when existing businesses are acquired by entrepreneurs or other companies. in main street, typically, business brokers pay -- play a vital role in facilitating these private business americaners and acquisitions and this measure will encourage such growth. helping small businesses is not a partisan issue. we all benefit when small businesses grow and flourish. i continue to look forward to working with my colleagues on beth sides of the aisle to make strategic and beneficial policy decisions that will be smart regulations to strengthen our economy and create jobs. i urge my colleagues to vote yes on h.r. 2274. and i

the credit card fund and transactions roughly break even. critical for people to keep money in the system. paypal has grown tremendously, more than we could've expected over the last decade. if you look at the funding mix, which is the percentage of transactions that are funded, that has not kept up. there are a lot of different ways that paypal could improve that. you can offer check writing on paypal accounts, direct deposit. you could pay interest on accounts which is something we actually did and it is a feature that ebay recently took away. >> let's talk about that. what kind of innovation do you think has been at paypal says going under the ebay umbrella? >> it is easier to point out some of the features they have taken away. this is something that we worked on and we were paying the highest rate of the interest in the industry through our money market interest on paypal balances. i don't know what it deprecated that. it might be a regulatory reason. the last thing ebay wants is to be regulated i -- like a bank. i think there needs to

our business officer joe grasoy and we meet every week and discuss issues of real property and transactions so there is a continued on going presence regarding leveraging surplus property, generating revenue for the district and trying to make the best possible business decisions we can for some of the finest -- actually property portfolio in san francisco. so to go to the first slide, and i don't know if he's going to call it up on the tv screen, on the projector. can you do that? >> [inaudible] >> okay. so san francisco for those of you that are not familiar -- i know supervisor kim certainly is very familiar. we have over 155 of the finest real estate in our portfolio in san francisco. over 9 million square feet, thousands of classrooms. once upon a time we served over 90,000 students and today we serve about 55,000 but the number of programs and things going on in our schools has expanded exponentially. there is a perception in the community and in the city that we have lots and lots of empty buildings, and the reality is that's simply not true. currently there are only three sites with

the credit card funded transactions roughly break even.ritical for people to keep money in the system. paypal has grown tremendously, more than we expected, over the last decade. but if you look at the funding mix, which is the percentage of transactions funded in a low- cost way, that has not kept up. i think there are a lot of different ways that paypal could improve that. you can offer check writing on paypal accounts. you can offer direct deposit to paypal accounts. and you can pay interest on paypal accounts, which is something we actually did. it is a future that ebay took away. >> let's talk about that. what kind of innovation do you think there has been a paypal since going under the ebay umbrella? i referred to -- we were paying the highest rate of interest in the industry on paypal balances. reason. be a regulatory the last thing ebay once is to be regulated. i think there would be more regulatory flexibility of paypal was spun out into its own entity. >> it certainly things that -- seems that the last thing ebay once is to spin

gerri: this is a really complicated string of transactions just for a simple credit card transaction. so what part of the transaction are they screwing up? gimmick they need to protect their networks better. this is nothing new. a lot of these breaches will keep going o and you'll hear more than just six other retailers coming forward. they have to do a better job to protect consumers information into a plot up a better fireball. they have that technology and they can do that. gerri: you have to reassure cards, bank of america, a jpmorgan chase thomas to the group, i assume that is a cost to the bank? >> yes. we have to reissue cards to protect the consumer for credit unions that want to protect their account information and personal information so sometimes a new card is the best way to do that. that cou cost anywhere between five or $10 per account the plastic cost many the postage, a printing and the labor. gerri: who would pay for the of chip and pin technology? >> the retailers as well as the financial institution. other retailers claim we ought to go to chip and pin but those wh

personal information is not shared at any point in the transaction. you also mention a moment ago that you are very much for fraud protection, and not just fraud protection, but fraud the dedication. can you tell us about that? >> we were talking before the break, looking at it in preventative, it is understanding behaviors, where consumers are, the type of funding instruments they are using. when he think about where fraud detection started, it is really the basics. where are they at, where is the ip address? nowinformation that is captured is much more sophisticated. the social networks, the mobile devices, geolocation. that can provide a tremendous amount of additional information to help us to tax fraudulent activity. the important part is is being able to turn it off. >> and it is, as we talk about a lot, or an arms race. you are getting stronger, but the bad guys are also evolving and getting stronger. >> frequently criminals are getting more sophisticated and more intelligent. we have to figure out how consumers and merchants and paypal and oth

as director up dike said, this is a start of a complicated transaction. we are using this parcel plus additional funds to acquire 1950 mission and 1101 connecticut. both are transactions of this property or acquisitions of property which will come back to the board of supervisors. the department would have no objection if

these large transnational transactions.ow big of a deal is it that ibm is selling this piece to china? >> it is who wants it. who is able to make money off of this business. it leads you to believe that the cloud is taking over. probably not as much of an option. it does not appear to be anything that will raise the national security concerns. can they come back to the united hates with these things? we regulate where servers come from. >> very well said. when you look at the financial transaction, you do this better than me. what did you see? what is the distinction about what we see this morning? >> it speaks volumes. they already have this relationship. the due diligence went quicker than i would have with another company. there are security issues they might not have seen otherwise. it is interesting that leno though it's getting into servers. they are still playing catch-up in the bid to move away from hardware. tom, i know michael dell also talked about hardware. why is it so important to dell's business? >> the produ

once i find a wallet, it is easy to make a transaction.create one here. >> you can do it from your phone and from a bank account. then you actually buy various things. you use bitcoin for an increasing number of different kinds of transactions. >> once you have created a wallet, you can spend your bitcoins anywhere in the world. i earn my income on bitcoin. i travel with it and rent apartments all over the world. >> do you only buy things in bitcoin or do you convert your bitcoins into regular dollars? there are some places that probably only take cash or other forms of non-bitcoin currency. >> i can go 99% of my life using bitcoin for transactions. for a parking ticket, i probably have to take out my credit card. we have created a wallet and you want to make sure you get your password correctly. i will send some bitcoins over to this wallet. you take a picture of the key and it is really easy to send it. this happens basically anywhere in the world all the time. >> here is one of my questions when you are signing up which is so easy and g

every transaction can be traced back to the original transaction. melissa: what does right mean?> someone going to the bar and paying in bitcoin, wife, girlfriend, anyone who who wanto know what he is buying will not see the purchase on credit card bill, saying what are you buying, why are you at the bar. melissa: what about the government, do they know you're spending money. >> do the government know you are spending money? you are treating it as foreign cure currency. you have to file of course a return on capital gains. melissa: u.s. attorney here in new york disagrees with almost everything he just said. it seems more and more companies are looking into the legitimacy of bitcoin but this arrest plays right into the concerns many have about the currency. greg mcbride, bankrate.com chief financial analyst. james freeman with "the wall street journal." richard rob is securities attorney. i want to start with you, richard. let's talk about this case in particular. he is accuses of basically everything i asked him. his currency was being used on silk road to buy fake eye december.

in this sample account transaction charges cause the account to beoverdrawn triggering $35. when the bank reorders from the highest to the lowest, the checking account is depleted, now with no money each new transaction triggers another fee. instead of $35 the total is $140. the bank has boosted its fees by 300%. we asked several banks to tell us why they reorder from highest to lowest. most did not respond. p&c deferred to the american banking association which said that: >> many big financial institutions have been sued for unfair and fruaudulent business transactions. 14 banks, including bank of america and jpmorgan settled to the tune of $800 million. none of the banks admitted to wrongdoing. a lot of banks stopped doing this. they say they serve the right to change terms and conditions of the account at any time. while they have stopped doing it now. they can start at a later date. >> one bank confirmed that it processes transactions from the highest to lowest amounts, adding: >> congress woman from new york wants to make banks more accountable and cosponsored a bill th

how does the transaction actually happened?osit money from your bank and that goes directly into the wallet? >> it is true you can create a bank account with bitcoin. when you want to buy bitcoins, you can go to exchange or go directly to a company. there is ways of buying them fundly too but i will this wallet with my cell phone to conceal quickly it is to make a transaction. my password is not right here. i will pull one up here. once i find a wallet, it is easy to make a transaction. i will create one here. >> you can do it from your phone and from a bank account. then you actually by various things. if you use bitcoin for an increasing number of different kinds of transactions. >> once you have created a wallet, you can spend your bitcoins anywhere in the world. i earn my income and bitcoin. i travel with it and rent apartments all over the world. >> do you only buy things in bitcoin or do you convert your bitcoins into regular dollars? there are some places that probably only take cash or other bitcoin currency. 99% of my

cutting waste and charging a small commission on the transaction. another company, daily table, wants to make money on the fact that most grocery stores can only sell perfect-looking fruits and vegetables. the company wants to sell bruised and oversized produce at discounted prices. back in west virginia, just 15 miles from the va medical center, a local farmer cam pabb has found a way to make money and reduce the amount of food going into landfills. on his farm he grows crops and raises livestock. but also built a thriving composting business. the va medical center pays him to pick up leftover food scraps every two weeks. he trucks this to his compost heap where it supplements over other nick waste that will decompose over time. >> we're converting waste into a usable product that grows another crop. in other words, what you saw put in there was some sort of crop. now once processed into compost, then we'll grow other crops. >> reporter: he uses the nutrient-rich compost in place of commercial fertilizer, saving him $50,000 a year. >> it's part of

we sample transactions and analytically test accounts. we do not 100 percent test every transact action. we would be here a long time. we also form puc compliance and to the contract and to a level that could have a material effect of a financial statement and lastly on the financial statement and compliance based on our audit result. their we do issue two reports for each enterprise. first is an independent audit report on the financial statement of which is tied indicated we did issue an unmodified or clean opinion for all three enterprises and we also issue a report on the compliance for government auditing standards. this is also a complete opinion for all three enterprises and we reported no deficiencies or instances of non-compliance. next in regard to the puc's significant accounting policies, these are described in note two of the financial statements of each of the three enterprises. we assure these policies are in accordance with the general accepted accounting principals consistent with standards. there were two effective for 2

a derivative to exploit the market better or who can frontrunner frontrunners sales and stock transactions on the high frequency trading network but in terms of consumer innovation very little has happened in the last fifty years speaking of u.s. treasury secretary jack lew recently said that bitcoin gives individuals a place to hide and allow for the funding of terrorist activities what's your response especially in light of the two new york executives who were just charged with conspiracy to commit many money laundering excuse me by selling over one million dollars in bitcoins to the black market website so prone well a big one to. actually offers a scale of anonymity to full disclosure of identity on bitcoin it's actually harder to do strong anonymity whereas it's easier to do strong transparency one of the things we've seen on the big queen network has the ability for charities and her public responsibility organizations or publicly accountable organizations to operate an open set of accounts and open books where everyone can see exactly what's going on so if you want you can use bitco

the new service promising a safer transaction. >>> solar powered and smart than ever. we look at the future of cars from the consumer electronics show in las vegas. >> and new cast, new digs, what else is different about the latest san francisco addition of the real world? and what ever happened to the original house mates? kpix5 high deaf doppler tracking rain fall in the state of california. how can that happen? there's a front heading our way. find out which one day is looking kind of wet. that's coming up. ,,,,,,,,,,,, w a bay area startup i >>> you never really know what to expect after meeting up with strangers. now a bay area startup is offering a body guard for hire to come along during those meetings. the company rents out body guards to craigslist users for $15 to oversee the transactions. it will cost you $25 if you want the guard to test out the product. the company owner says he has been robbed before during craigslist transactions. >> we want them to dispel any kind of conflict, make sure nothing goes wrong. >> the service is for small transactions like s

when this started these fees averaged $0.44 per transaction.t that in 2011, at $0.21 per o transaction, retailers sued the fed saying it had improperly interpreted the law and said the swiped fees should have been capped at $0.12 per transaction. this all adds up considering there are nearly 50 billion of these debit card transactions the year now and the banks use to take in $16 billion a year in revenue from swiped fees, now they are taking in about half that and they are siding with the fed because they don't want to see the retailers for >> even lower. retailers won the first round of this plate in district court last year agreeing with retailers that the fed misinterpreted the law, the fed appealed and today lawyers for retailers were asking the appeals court to uphold the district court decision. questions from the three judge panel were tough on the retailers's arguments and supportive of the fed which they had discretion setting these fees. this could go to the supreme court. connell: big money story, thank you for personalizing that wi