hey, you mf, you're too loud," or "you're not playing enough," and i would not look up.they'd come out of the engineer room and punch me on the shoulder and say, "i am talking to you, mf," and i'd say, "oh, i thought my name was buddy." [laughter] within six weeks i was answering. they would just say that, i'd say, "that's me. [laughter] but leonard chess, they was very creative. i have heard a lot what they done to their artists, and i do not think chess was the only thing doing it. you had another record company out of texas named duke, with don robey, and i think elvis would have lived a little longer if he hadn't found out that the colonel was making more money than him. but willie mabon and all these great guys was cutting for chess. all of them give up citizenship, started living in europe, and they was still mad at leonard after he had died. i was in helsinki and eddie boyd was talking just like you and i, and i said, "man, you mad at a dead man. you cannot hurt him now." i said, "you can go back there and kick the grave, he's not going to feel it." [laughter] i s

because that, if you cannot tell me that they could not find a case against certification of the financial statements, having something to do with mfhave sarbanes-oxley? >> this is a lay person's question, but they said no criminal charges. so sarbanes-oxley, if you found something guilty in sarbanes-oxley is that a violation of securities law or the basis for criminal charges? >> i'm not a lawyer. i went to business school not law school. i believe the intent of sarbanes-oxley, when it was put into effect, when it became law to certify the financial statements as a result of many of the thing that happened, enron, tyco, worldcom the plan would be criminal charges would follow if you were the ceo or cfo you signed the certificate if -- certification. >> had they signed? the whole thing fell apart. they had the audit. >> now we're talking about a timing issue. if you remember what happened, melissa you probably remember. they did that big junk bond offering. i don't have the data right in front of me. it was in august of last summer when they priced that, was it a $400 million junk bond deal. i don't have the exact date. but, simon,

certainly james giddens, and we welcome you back to the committee and appreciate your efforts serving as a trusee for the securities investment prection act liquidation of mf global. in an that role, you have charged in part with the task of retrieving lost funds for customers. and we know mr. giddens covered ternationally recognized leading expert on brokerage firm liquid nations. welcome back tothe committee. the final panelist is ira bodenstein. mr. bodenstein is serving as the chapter 7 trustee for the financial group and we welcome you to the committee and to the position. mr. ira is also a member of the law firm based in chicago coming and previously u.s. attorney general janet reno selected mr. ira to serve as the united states trustee for the northern district of illino and the state of wisconsin. we appreciate you joining us on the short notice and we look forward to orking with you. so, we will now turn and ask german gensler for his opening remarks and a understand you are asking for five minutes of testimony and we certainly welcome any written testimony as well and then we will open it to questions. chairman gensler. >> good morning chairwoman

subfive you are fewer the co-founder of this group. the commodity customer coalition mf global situation, do you think the self-regulatory model are still viable given these recent events? >> i think so in the sense that i don't like it matters whether, whether the regulator is paid privately are paid by the government. i think that what both of these failures show is that there will be future failures. the system is human and therefore it's going to be reached by other humans, so to our minds it's not to look for ways to make it more difficult in a sense the sense of finding new technologies to stop fraud, but it's really the backstop of insurance. the only thing that really effectively addresses what market participants are seeing which is regardless of who is in charge, they can't be assured that their funds are going to be there when the music stops. >> would you be in favor of a proposal by ms. klemme, we will call it the sub or plan. [laughter] >> i see happen to know a little bit more about it. >> it's called step-by-step. dotted a full gallop. >> on the surface a

i had this question for you, chairman gensler. since the collapse of mf global hysteria fingering question on a lot of people's minds come to something like this. are there any of their friends out there that are going to go bust? .think -- dodd-frank regulation required a whistleblower access and this is officially put in place last year nearly. so my question since the opening of the whistleblowers office at cftc, have complaints been made about inappropriate activities are going on at any future firms? if so, how many active cases does the whistleblower office that are looking into claims of impropriety? do you think that the cuts are not mapped to raise awareness in the futures industry that the whistleblower office exists and what the function in the office is supposed to be to encourage people to come forth? >> i thank you for your support because it's an import in office. it has been set at. there's a fund set aside with money. with this settlement and libel are case with barclays, the fund will be up to the full maximum congress made of $100 milli

this because i'm in the industry like you, they've almost done it to themselves every time you turn around. mf global, bernie madeoff, shame on the industry for doing it to themselves and causing this negative mood out there. >> what do they do? >> i agree with you. the question you just asked is the question. what does the industry do? when does it change? my greatest worry on the answer to that it only changes when the market goes up. my worry is people won't be on the train and they'll get on the train when they probably should be getting off the train. >> as usual, the retail investor always jumps in right at the top when it just falls over. >> that's my anxiety. if people were making money in the market, even if it was rigged, i think they'd probably feel better. >> thank you. i'll see you later about the market up 90 points. would you say you are fleeing stocks? go to yahoo!.com to vote. >>> how do you play stocks nearing a 4 1/2 year high, right in context, you have to have some privileges on this. what do i do with equities at a 4 1/2 year high? >> 4 1/2 year high is a big deal. that h

feel you should continue to have that, if you continue to feel that way, what changes are you making to make sure mf global doesn't happen again. they went bankrupt. now pleading not guilty to 31 pounds after he left a note saying i am guilty, i did it. >> we were not the oversight. for mf global, we were. the new policy in place, so 25% of segregated funds are to be moved, the cfo and the ceo are to sign off on it. liz: they have done that? >> a new rule coming out with a national futures organization the ability to look into the account commission the customer segregated funds are there. one of the other things we have deployed. liz: it will not be like sending a note to show how much they have? >> that is what exposed them. i did not go to electronic notices, they could still be going out. liz: let me go back to jon corzine. in the past is that it looks like a crime was committed, we were nefarious at mf global. investigators appear not to be able to find anything right now. >> testified and watche in washa couple of weeks ago and right before me was the trustee for mf global, he was asked a very

and mf global failure, you sat in the same loom with russell who is now at the center of the alleged fraud, and he said that it was sacred to keep customer money -- not to commingle, and now he's learned he was ripping off customers. >> yeah. that's what took a lot of people -- it really stunned a lot of people, particularly me. i interviewed him many times and he was a trusted member of the futures industry. i k it goes back to what we were talking about earlier. there needs to be more oversight, and hopefully that's what we'll be seeing. >> tom: looking at investor trust in the futures market tonight. it's diane eastabrook reporting for the cme group in chicago. thanks, diane. >> susie: when it comes to confidence in the markets, tonight's commentator says market makers, like knight capital have a great responsibility. here's joseph cotterill, editor at the financial times. >> is it so terrifying that you should gut your 401(k) of stocks? you could say that the market itself absorbed knights problem trades pretty well last week. those weird prices died down after that wild half-hou

certainly james giddens, and we welcome you back to the committee and appreciate your efforts serving as a trustee for the securities investment protection act liquidation of mf global. in an that role, you have charged in part with the task of retrieving lost funds for customers. and we know mr. giddens covered internationally recognized leading expert on brokerage firm liquid nations. welcome back to the committee. the final panelist is ira bodenstein. mr. bodenstein is serving as the chapter 7 trustee for the financial group and we welcome you to the committee and to the position. mr. ira is also a member of the law firm based in chicago coming and previously u.s. attorney general janet reno selected mr. ira to serve as the united states trustee for the northern district of illinois and the state of wisconsin. we appreciate you joining us on the short notice and we look forward to working with you. so, we will now turn and ask german gensler for his opening remarks and a understand you are asking for five minutes of testimony and we certainly welcome any written testimony as well and then we will open it to questions. chairman gensler. >> good morning chai

. >>> would you invest in jon corzine? the ex-mfl head may be looking to start a new hedge fund and there's some who think if he does, he could make money. anthony scaramucci, friend to the show, joins us on the "fast" line. we know this because of a "new york times" article. do you know firsthand whether jon is in fact raising money for a hedge fund, and why would you invest with him, if he is? >> first of all, thanks for calling me a noted person, mel can a. >> you're notable, yes, you are. >> i'm obviously an unnoted person, but as it relays to jon, he is a terrific guy, and i think we have a culture now because of social media and the media in general where we lynch people first and then we ask questions later, and that sound bite that you guys just showed i think was actually accurate. he probably -- was definitely a screwup. we can hold him responsible at the top of the company and ceo, but i think the department of justice and others really do feel that nothing criminal happened there, and i think that's in line with jon's ch

and you know, the light well, there is an issue between the 3 '9" -- i could tell you from experience in designing 500 mf plus dental offices every square inch in precious to make sure that the serving community in the way that the doctor wants to serve them and make sure he can provide the best care for the children that need it. every square inch is precious. we just hope that you can -- that the compromise can be reached so that the project can proceed because it is a very big need in the community. i can tell you from experience on just the community side because we deal with a lot of nonprojects. we sponsor some. we help them when we can. it's unbelievable how much people are under served and have a project move forward that can help the community locally can be tremendous. again, i just wanted to say the more we cut the building down it's really going to impact the ability for the doctor to serve the community. thank you. >> any other speakers in favor? >> good everyoning, commissioners. my name is joseph langer. i've been serving this community berkley and marin in the capacity of a rabbi for 37 y

i think in this instance, i made ten phone calls to guys that were ex-mf customers. what do youat sticks in your mind? automatic ten said the same thing. they want to see jon corzine in jail. not my words. their words. does that answer your question? >> that answers the question. when you hear it from rick, as i heard, i hear it every day, you hear it the way it is. rick, thanks. i'm going to be in chicago and have good fun. >> september, big fun. >> melissa and simon, back to you. i want to mention that with some research out today, goldman sachs, talking about many of the hedge funds underperforming s&p 500 dramatically. david kostin will be joining us and will be talking specifically the hedge funds that are underperforming, what will they try to do to catch up the rest of the year? programming tease note there. >> interesting. gary, for the moment, and rick, thank you very much. let's go to market flash. >> simon, we are looking at insurer financial ticker gmw. shares rising nearly 3.5%. dow joins reporting the company is working behind the scenes to find a new ceo and imple

you know, every nation wants a strong dollar theoretically but a weaker dollar of course, helps your+++= global what happened there and commodities traders, some really got burned by what happened with mfbal. are you surprised there haven't been any indictments there and should there be? >> well, i am a little surprised because that was a, that was something that, should not have happened. it, didn't happen in futures in over 150 years and suddenly it happens in a moment in time when a company is in need of money and uses segregated funds that was just terrible and but, i must say that dodd-frank wouldn't, wouldn't have helped that. this was a, an individual company doing something wrong and i guess it's like, you know, when you, you commit a crime, and anyone can do that. nothing can stop the person from committing a crime. david: yeah. by the way, quickly, how is terry duffy, your successor been doing? >> he is doing great. and you know, our business is down a little bit in volume as is everybody's business because the economy is kind of weak. and, it is no secret to anybody that that produces volume when, when you have a strong economy and the reverse is true when you have a weak on

you believe this one? jon corzine, the former head of new broupt mf global is reportedly contemplating a hedge fund startupcould bepull it off because washington went soft on one of its own? my observation on that next. by. you get knock-your-socks-off tools, simple one-click orders, real-time paper trading to hone your skills, plus anytime you need it support. ♪ stocks, options, futures, and forex. get your trading on track. thinkorswim by td ameritrade. trade commission free for 60 days, plus get up to $600 when you open an account. plus get up to $600 so i test... a lot. do you test with this? freestyle lite test strips? i don't see... beep! wow! that didn't take much blood. yeah, and the unique zipwik tab targets the blood and pulls it in. so easy. yep. freestyle lite needs just a third the blood of onetouch ultra. really? so testing is one less thing i have to worry about today. great. call or click today and get strips and a meter free. test easy. >>> finally tonight, my observation on the hypocrisy in washington. news today that we'll likely not hear any charges against mf global and jon corzine who

subfive you are fewer the co-founder of this group. the commodity customer coalition mf global situation, do you think the self-regulatory model are still viable given these recent events? >> i think so in the sense that i don't like it matters whether, whether the regulator is paid privately are paid by the government. i think that what both of these failures show is that there will be future failures. the system is human and therefore it's going to be reached by other humans, so to our minds it's not to look for ways to make it more difficult in a sense the sense of finding new technologies to stop fraud, but it's really the backstop of insurance. the only thing that really effectively addresses what market participants are seeing which is regardless of who is in charge, they can't be assured that their funds are going to be there when the music stops. >> would you be in favor of a proposal by ms. klemme, we will call it the sub or plan. [laughter] >> i see happen to know a little bit more about it. >> it's called step-by-step. dotted a full gallop. >> on the surface a

you very much. >>> "the new york times" reporting this morning that former mf global ceo jon corzine likely will not face charges. rick santelli as you know watching this from the very beginning and interested to hear your thoughts when you read this type of headline, ricky. >> yeah. you talk about being afraid and getting surprised on halloween. that was just a horrible, horrible scenario. halloween of last year. and as i look back and talk to traders, they're so disappointed. they're so upset. but yet, they're not in a state of despair. james catulis doing this pro bono that represents literal ll thousands of mf customers said he is not, n-o-t not going to give up on pursuing a criminal indictment in court. i think down here right or wrong that what comes out is two fold. if you think about it in a cross benefit analysis it seems to cost companies a lot with absolutely zero benefit and at a time discussing the blanks of dodd-frank and hits to the heart of the matter. always fighting the last war. always doing too much with regard to writing these and they never seem to accomplish what they're supp

former firm mf global lost but would you invest in jon corzine with a hedge fund?und somebody that kabt wait to do just that. >> you probably heard of a study finding women lack confidence with investing. a guest says women are just as good if not better at investing than men. we look forward to seeing you for "closing bell" here at the new york stock exchange at the top of the hour. see you then. have a good weekend. >> i love a good old gender fight. thank you. >>> molycorp is smacked around the chops and really pique's herb's interest. >> you should see this. off 11% or so. on monday, morgan stanley resumed coverage of molycorp with an overweight rating and then lo and behold the rare earth miner announced it raised $480 million in stock and note offerings by morgan stanley. they tell me the timing of those deals and the analyst recommendations is just a coincidence. in reality, the stock falling since upgrade. it was whacked even further today on the announcement of the deal which included the sale of stock at a discount to yesterday's price. adding insult to i

look at mf global, nothing corzine should be in jail or at least under indictment. thank you for watching tonight. great to be with you. we look forward to seeing you tomorrow. ♪ lou: good evening, everybody. republicans unsuccessfully pleading with congressman todd to drop out of the senate race in missouri for the good of the party. his insensitive and inappropriate comments on rape and abortion have party leaders concerned negative backlash could hit candidates up to the romney-ryan presidential ticket. also tonight, two unwelcomed guests on schedule to collide with the appearance of the republican national convention in tampa, florida. one of them much more partisan than the other. also, reports of fighting between the obama campaign team and the white house. new york times best selling author, the amateur, joins us, and president obama today bragging about all his administration has done for education, but the numbers tell a different story, and we'll examine them in "chalk talk." toddacheen apologizing for his ill-informed comments on rape and abortion, but also remaini

mf global. james, last week when word came out department of justice basically didn't see any cream, i call yourime and fraud were committed. can you expand on that? >> sure, rick. according to the trustees' report, mf global was routinely using customer funds to fund intraday as far back as august months before the bankruptcy. that's a violation of the commodities exchange act. once their credit rating was downgraded, they just outright took those funds and wired them to jpmorgan to meet house calls, also a violation of the commodity exchange act. it's a felony and penalty of ten years in prison for the offense. >> the department justice doesn't see it that way. and everything we've talked about we've discussed add in finite um. is there a lot of differ. >> no, you read the note. he talks about the fact he had the choice between going out of business and cheating. he decided to cheat for 20 years and steal customer money. sure, he put it in his own account. mf global, same decision, do we go to business or cheat. they cheated, broke the law, took customer funds to meet margin calls. >> edith o

the remains of mf global told a senate committee he's confident customers of the failed securities firm will eventually get all their money back. and finally, what does $100 million buy youn manhattan real estate? a three-level octagon shamed penthouse. it also includes the name of the most expensive apartment on the market. >> well, controversy continues to swirl around chick-fil-a. supporters have called for a boycott of the atlanta based company and today a national chick-fil-a appreciation day is being held for the chain's supporters. >> reporter: it started when the president and ceo reiterated his company's strong religious beliefs to a baptist journal saying "we are very much supportive of family, the biblical definition of a family unit. we are married to our first wives, we give god thanks for that." >> i would like to tell him i am also married to my first wife. >> reporter: those comments outraged supporters of gay and lesbian organizations throughout the nation who have called for a boycott of the chains. >> i'll miss the sandwiches but i can't support those organizations. >> it's become a hot topic in some of the largest cities. >> boston is an open city tha

mf global. chief intelligence correspondent catherine herridge is live in washington with more. catherine. >> reporter: thank you, megyn and good afternoon. a short time ago we were told that the justice department and the u.s. attorney's office for the southern district of new york, that is the office directly handling the case will have no comment on the report that was first carried in "the new york times" that this criminal investigation by the justice department into mf global may conclude without any criminal charges against the key players. this investigation is now in its 10th month and has gathered evidence that apparently reports no pattern of strong controls but rather poor risk controls and systemic disorganization n. recent testimony on capitol hill the former chief of the firm as you mentioned senior democrat former new jersey governor and former senator john corzine claimed he was in the dark about the problems. >> as the chief executive officer of mf global, and i say this with all sincerity, i truly apologize to all those affected. i want to be clear, i never gave any instruction to misuse custo

this whole enterprise, if you divide it by every woman, child, man in this country comes out to the be the cost of the movie. i know i some on -- i know i speak on behalf of all mf i colleagues, that's a movie i want to see. >> reporter: it's being described as somewhat like a hollywood movie and in true hollywood fashion, the stars have come out. >> i'm trying to change the inner city i came from. >> reporter: this singer wrote a song "reach for the stars." astronaut leland melvin says actors, singers and stars can help with nasa's mission. >> the obama administration talked about trying to get humans to the martian surface. i think we have to do it as one collective. as entertainers, as ball players, private sector, government all working together to make it happen. >> reporter: but scientists say it will be years or decades before man walks on the red surface of mars. teresa garcia, cbs news, pasadena, california. >>> coming up at 5:45, howard will discuss the curiosity landing with researchers at nasa's goddard space flight center. we're all very curious about that and we'll be looking forward to that interview. >> very excited about this. very cool. they sa

and you should know jon corzine probably won't face criminal charges for overseeing mf global, whichhout any particularly convincing explanation as to where it went. the federal investigation into the bankrupt firm is winding down with no prosecutions expected, and get this according to "the new york times," "mr. corzine, a bid to rebuild his image and engage his passion for trading, weighing whether to start a hedge fund. according to people with knowledge of his plans. "post bailout wall street is the definitive that there are no second acts in american lives. there are more second than you can count. if every mesh in america voted, president obama would breeze to re-election. according to a survey, the president leads governor romney by a stunning margin of 43-14 of the nearly 40% of meshes that are eligible to vote but are unlikely to do so. you should know that among this constituency of the politically disengaged, the president has a 55% favorability rating compared to 35% unfavorability. you should know that the republican party understand very well that the smaller the electo

you and good morning. according to a report first carried in the "new york times" that criminal investigation by the justice department into mf global may conclude without any criminal charges against those key players. the investigation is now in its/10 month and gathered evidence that according to the published reports show a pattern of poor risk controls and systemic disorganization rather than fraud in recent statements the former chief the firm, a senior democrat, former new jersey governor and former senator jon corzine claimed that he was in the dark about the problems. >> as the chief executive officer of mf global, and i say this with all sincerity, i truly apologize to all those affected. i want to be clear. i never gave any instruction to misuse customer funds. i never intended anyone at mf global to misuse customer funds. >> reporter: in an e-mail before the collapse of mf global corzine was far more upbeat about its future writing to employees in 2011, quote, let's be an example how to do it right and play a leadership role in restoring confidence in our industry. but during the september 8th hearing lawmakers qu

mf global which we'll talk about soon. yet that trust still stays there. >> again, you don't have to be necessarily distrust them but you have what their motives are and their motives are profit and not to serve the interests of the american people and that's why you needed to have those types of conditions and that's why we're still in the problem we have today. >> i want to thank neil barofsky. an inside account of how wall street bailed out main street. the standoff at the ecuadorian embassy in london with julian assange when we come back. yeah, we found that wonderful thing. and you smiled. and threw it. and i decided i would never, ever leave it anywhere. because that wonderful, bouncy, roll-around thing... had made you play. and that... had made you smile. [ announcer ] beneful. play. it's good for you. >>> high stakes standoff continue this morning with british police still surrounding ecuad ecuador's embassy in london and ecuador still refusing to turn over assange. it has huge possible ramifications not just for international relations but the future of government transparency. the problem for assange started back i

do you then run into a conflict of interest. this is something it ran into at mf global.ing trades. potentially pulling credit lines which of course we should say we don't know whether that's happening right now and joyce wouldn't comment yesterday. he had an interesting answer. he said my general counsel wouldn't want me to answer that. that causes a little bit of a question to couldn't. company be lending and bidding. how does that work and certainly we should get an answer very shortly. >> kay lashing thank you very much. >> by the way we'll talk to one of knight's competitors in the next hour. ron kruszewski. >> a ceo house call. we'll faulk big pharma. cigna's ceo will be talking health care and a lot more when we return. [ female announcer ] e-trade was founded on the simple belief that bringing you better technology helps make you a better investor. with our revolutionary e-trade 360 dashboard you see exactly where your money is and what it's doing live. our e-trade pro platform offers powerful functionality that's still so usable you'll actually use it. and our mo

you did. second point today, in the papers, yesterday and today, mf investors, yes, nine months ago, so let'smonths, a rebirth of optimism, for many of the investors. because the papers, many of the articles say they're going to get all of their money back. which was perfectly timed with the hearing in front of the senate ag, nutrition and forestry committee that's going on right now. talking to mr. defensele e gens what went wrong. and last but not least, the library of congress named a favorite book of mine as one of the 88 books that shaped america. and yes of course, i'm talking about ayn rand's "atlas shrugged." she started writing it in 1946. wasn't published until 1957. she had a person called the undertaker that was editing it on the fly. and that person happened to be yes, allen greenspan. and before it was called "atlas shrugged" it had other titles, like "the strike" but they changed it. i advocate that everybody read the book. why? because you're leaving through it as i speak, back to you. >>> mary tom shoon has a market flash. >>> masterkard reporting better-than-expected earning

across the midwest and with mf across the country that there's been a wake-up call, a slap in the face we do something and why i propose the program today. >> all right. thank youery much, commissioner. we appreciate it. rick, thank you for having him in and leading the charge there. we really appreciate it. fascinating conversation. sue? >> it sure was, ty. absolutely was. >>> ahead on "power lunch" and the yahoo! finance poll, we asked you where you stand on the u.s. economy. we'll give you results coming up next. plus, brand enforcement at the olympics with new laws to make ambush marketing a crime. before the break, a quick look at the official london olympic sponsors are trading right now. coca-cola down and a gain in dow chemical and pan sasonic is up. ♪ ♪ i want to go ♪ i want to win [ breathes deeply ] ♪ this is where the dream begins ♪ ♪ i want to grow ♪ i want to try ♪ i can almost touch the sky [ male announcer ] even the planet has an olympic dream. dow is proud to support that dream by helping provide greener, more sustainable solutions from the olympic village to the stadium. solutionism. the new optimism.™ ♪ this dream >>> all right. now to today

mf the obama administration. here comes senator john thune. >> thank you.n is, do you think you could take him one-on-one? and i say really don't know i've never seen him pay but i can tellyou this: president obama would be easy to defend, because you know he is always going to go to his left. [cheers and applause] like many americans, i've been blessed by the hard work and sacrifice of those who have come before. you see, it was back in 1906 that two norweigan brothers came to this count in sear of the american dream. when they reached the shores of america, the only english wordsr they knew were the words apple pie and coffee. which evidently they had plenty on the trip over. the immigration officials at ellis island7oo determined their name which was spelled gjelsvik was too difficult to spell and pronounce. so they asked them to change it. the two brothers pinged the name of the farm where they worked in norway which was calle the thuarm. and so nick lie became nick thune. my grandfather. with their new country -- cheer dhary with their new country and