Fiveday losing streak since december. Now over to kayla who has todays headlines. Goldman sachs technical error caused erroneous options trades yesterday. Many trades may be erased but it could cost upwards of 100 million. They do not face material loss or risk from the issue. Maury tomhr Mary Thompson will join us with more. Jpmorgan is reportedly close to naming two new directors with finance and Risk Management experti expertise. The bank identified the candidates but the board has not yet voted on them. The decision is likely to come next month. Two directors stepped down earlier this summer. Facebook wants to get more people online. It is called internet. Org. The goal is to make Internet Access available to the twothirds of the world who are not yet connected. The groups plans include developing cheaper smartphones and using mobile data more efficiently. Joe . Thank you, kayla. What is 75 of twothirds of the world that the nsa could then watch . What is 75 of twothirds. If we had two thirds of the world connected and we could watch were not going to miss anything, are we . Well talk about that story later. Especially in our executive edge. I wanted to ask you quickly, kayla, how is your memory . Is it good . Was it a quarter was it one quarter where Goldman Sachs didnt have a losing day in the enron account, a quarter or a year . A quarter. A quarter. I dont think anyone has done it in a full year. How many days are in a quarter . Like 90, but not trading days. They make money mostly. 100 million. Lloyd was at dinner last night with they had an 800 bottle of wine instead of 1500 bottle of wine, which is why scott cohn is here, which is why eric holder is after these guys. Attorney general eric holder says that he expects to announce what he calls significant matters related to the 2008 financial crisis. He made his comments in an interview with the wall street journal. Senior correspondent skcott coh is here to tell us what holder may be referring to. There will be no fast and furious subpoenas or irs subpoenas to himself on this. This is different stuff were talking about here. He didnt say hes not going to do that. Well just have to wait and see. This was enough to really got me up early. This is a red letter day for you, to get the crooks. We looked into it a little bit. It turns out holder wasnt signaling any specific cases, but he gave the interview to pushback on this idea that with the fiveyear statute of limitations on securities fraud coming up, time might be running out on the dodgj. Anybody who inflicted damage on the Financial Markets should not be out of the belief that they are out of trouble because of the passage of time. If any institution is banking on waiting things out, they have to think again. The statute of limitations can be as long as ten years and even in the case of securities fraud there are ways to stop the clock. But ive been told there is a push from high levels in the Justice Department to get these cases done already, for his part, holder told the journal he expects to be there to announce the significant matters, hell be in office and it is believed holder has been planning to step down by the end of the year, though he didnt go any hints on that. That means were looking in the coming months. But holder said most of the firms are too big to jail. Is this a change of course to have said that in the spring and now to be saying were going to bring significant charges against a lot of these institutions . That was tape out of context. He was talking about the fact there are consequences to charging these firms and there are and something they look at. But they have been looking at these cases and the tricky part is making these cases stick. Theyre very complicated cases, have to convince a jury beyond a reasonable doubt and there are smart lawyers open the other side on wall street that did a lot of disclosure when the deals were being done and it is very hard to poke through it. How many people are in the house . You said any individual has to if you had a pal, how many would that would that be 500 . The people who left office he did not mention enablers or i dont know if he was asked about it. I want to understand two things. Do we think hes going to go after firms on any type of firmwide basis, and do we think there are individuals that are still in the cross hairs that we thought were off the list and when i say off the list, dick fold, anybody at Lehman Brothers i thought was off the list, are they on the list . Stan oneil, angela mazillo, anyone at countrywide, bear stearns. You can make the list, but most people, the expectation was, game over. Heres the issue, and they ran up against this back in 2009, first of the financial cases that blew up in their faces. They sued two Bear Stearns Hedge Fund managers. You dont have necessarily the cooperating witnesses to work your way up to the ceo. And thats been a problem. Not just that it sort of took the wind out of the Justice Department sales, but the fact that defendants or potential defendants were emboldened. Maybe i dont have to plead guilty. Maybe i can wait this out. It is go to be difficult to get the guys at the top. And are those cases over, meaning i read pieces, i talked to people who suggested months ago, if not years ago, that some of those cases around the high profile people, that they stopped investigating. They made a determine tlgs is no case to bring. Is this a suggestion that there is Something Else going on that we dont know about . It is kind of a suggestion. The idea of getting to the top is very difficult. And, yet there is this push that i know for a fact in the Justice Department to bring this all to a conclusion. It has been five years. How much of this is a stunt, were at the fiveyear mark, unlikely perhaps even based on what he said youre going to see i thought maybe what you would see is on september 15th, you know, they decide theyre going to arrest five people just for the show of it or at least in terms of the timing of it, but even that suggested forget about september 15th, forget about this, were still pushing away and we have in some cases up to ten years to do this. There is a lot of symbolism with september 15th. Five years since lehman went bankrupt. Theyre not bound by a statute of limitations in all crimes, but you got to wonder if there is will we see a perp walk that day . Ill try to be around. I dont know of anything in particular. You have signed us up for a washington, d. C. Show to go down there on the anniversary of that, to talk to barney frank and talk to barney frank and chris stein, right . Is there going to be enough material for andrew to write a sequel is the bigger question. Yes. Thank you. Sequel for what . Too big to fail. Too big to fail. Is that the okay. You need to mention it, if youre going to bring it up, you need to mention it. We reported this and others did yesterday, leslie called welcalledwell will be nominated to be the head of the criminal division. Shes been in private practice for the last seven, eight years. And so she knows a thing or two about public pressure to bring indictments. Youre coming back, i just heard, we can wrap this up. Were going to come back. Were going to hammer this thing. Do you think holder has been watching a lot of american greed . Lets hope so. A lot of people do. Thats where you see a lot of you must think, you know, look at whats going on. I havent done anything. When i what struck me today, wolves arent the scariest thing on wall street. You know that stupid movie with leonardo dicaprio, like a hemorrhoid on history. It was a bunch of people that basically would be robbing banks if they werent at this bucket shop. The lowest, like, lowest form of life. But the usa today says this is business as usual on wall street. These arent the guys you need to worry about. The real guys are the ones that youre talking about at the goldmans and the jpmorgans, these guys are small but theyre putting the guy that ran Stratton Oakmont together with the big investment banks. Which is where we are right now. Dont you worry the public does that . I do. I think thats where we are. Thats the optics of the whole situation. I think thats what holder is responding to, it is right in the cover of the whoever did the story, it says right in the top that the temperature in the country for something to get done is what is spurring him to do it, which probably isnt the best reason for an attorney general to take action. And im not sure that is, but theyre conscious of it. Any prosecutor you talk to, they know whats going on, they know what the talk is, but they will tell you, we go the temperature of the irs scandal must be much lower because he doesnt seem real like anything needs to be done there. Or at least not doing an interview about it. Exactly. Maybe in five years. All right. All right. Thanks for that, scott. See you back next hour. An earnings story were watching today. Lowes reporting earnings of 88 cents a share. Revenues topping expectations and it also raised its fullyear forecast, comes a day after home depot reported blockbuster earnings moved the dow up in the premarket. Lowes is seeing some of the same reaction today. Up just about 1. 5 in the mash et yesterday. Thats a chart from yesterdays market close that were looking at. Unclear how it is trading in the premarket. But it is topping estimates by 9 Cents Per Share. That is lowes ticker low. Mash ets this morning, we saw the futures are indicated lower. And yesterday we said 30 points, 30, 40 points of upward indication, early in the day, is not enough to guarantee a higher close for the average. Once again, it was unable to hold on to those and did close down. I think some of the other averages were up. So there were things in the dow that didnt help. Today, were looking at the dow down 22 points. Everyone says that the fomc minutes could indicate whether september or december for the tapering. Lets look at oil boards. We have 104. 82. Some people are surprised were still over 100 given the economy is not going other people wondered why were not happening with what is happening in egypt. They arent a big oil producer, but they could shut down one of the canals over there, which one . The suez, right . It was a state of emergency. They didnt shut it down, but oil rose even when it was just tensions were raised there. Really interesting for me looking at the journal yesterday, said back the generals. Today, bolton, back the generals and next to that story, abrams, cut off aid. We dont seem to know what to do. It is the you see the deaths and youre just there is no way youre going to be able to say anything positive about the guys that are in force now. You worry about Muslim Brotherhood and whether you would eventually have another antiamerican theocracy in the least, which is the last what do you do . It is a minefield, is it not . Where are you on this . Im wondering. I want your opinion on everything. She asks me if i read too big to fail. I live too big to fail on a daily basis. Im aware. What do you do with this . I dont know. I dont know. That was a huge buildup . I know. If i went one way and then when you watch the news, it is an unfortunate you hate to see it. Then i watch someone that was fairly reasonable representing the government over there, and said, yeah, we have fired into crowds but were firing at people in the crowds that have already i dont know whether thats true. Regardless of where you stand on it, it is clear that washington needs to be more vocal on it, more than the president calling in from marriage wmarth Marthas Vineyard saying, im aware of the situation in egypt. Guys yelling at him, were on the tee, lets go. Hurry up. What are you doing over there, barack . Youre on the phone again . Youre up sorry. Lets go to we could go across the pond for a moment, time for the Global Market report. Carolin roth is standing by in london. Carolin . Good morning to you, guys. We are in a bit of a Holding Pattern ahead of the fomc minutes and seeing european markets pulling back just a little bit. Were off by around. 3 off the session lows. We did have a couple of earnings reports which will come to just a little bit. Let me show you the markets one by one. The ftse definitely an underperformer, off by. 75 . Keep in mind about the stocks, hsbc trading today, the xetra dax is up by. 25 . Back to the earnings. We had two beermakers in europe report numbers and both were a little bit below expectations. But the share Price Performance is divergent. Carlsberg in denmark up by almost. 9 . Again, numbers were hit by weakness in russia and western europe and the outlook that the company gave us, that was fairly bleak as well. It is saying that the uptick in uf europe is going to be very, very slow. Heineken off by 3 . Net profit in the Second Quarter dropped by 16 and the company gave us an extremely muted outlook. So were seeing a lot of pressure in those shares. Finally, a quick check of the forex markets where the dollar is gaining a little bit of ground against the euro and the yen. Sterling dollar at 1. 5687. Euro dollar back below the 134 level. And dollar yen sitting at 97. 44. Back over to you guys. Carolin, you doing what are you doing, Climate Change week . Is that what youre doing over there in europe this week . Is that something that is happening . Absolutely. We have really exciting theme weeks. Last week was that was crime, Financial Crime and this week it is the green week. Yeah, green week. I saw something very unsettling that some climate warmers now are predicting cold, wet, hot, dry summers as a result of this of what were seeing happening. Hopefully youll be conferring that a little bit. Thats last thing we need, cold, wet, hot, dry summers. Thank you, carolin. I dont know what that means. Exactly. To the u. S. Markets. Joining us, keith springer, president of springer Financial Advisers and john lonski. Why are you laughing . Trying to get a rise out of people. Whoo did you hear the joke about this . No. Never mind. Lonski, where are you on the fomc Meeting Minutes . The fed is going to taper. Does it really matter much whether or not they announce it in september or at the end of october . I dont think so. Doesnt matter . It seems to matter. I think the 65 chance theyll go ahead and announce tapering the september 18th meeting and the market has priced that in quite a bit thus far. I wouldnt be surprised if as that as the tapering approaches, the announcement we see the tenyear treasury yield make a run for 3 if not a little bit higher, which i think is not going to hold. I think thats a bit excessive given the fact that this remains the weakest economic recovery since the second world war. Thats a word nobody likes. Do you think the world is going to take over in terms of setting Interest Rates higher regardless of what the fed does . Yeah, good chance that is going to happen. They lose control or will it be an orderly way . I think early on theyre going to perhaps overdo it on the upside, but were eventually going to see an adverse reaction in the United States by the Housing Market, equity market and what not and that will bring bond yields back down to a range that might prove you mean initially the rates will overshoot and it will look like theyre losing control, but will come back to earth. Right, precisely. A painful process. More volatility, well have wider credit spreads, problems with the Housing Market. That leaves a lot of volatility. I dont think the fed does taper. It was a shot across the bow a couple of months ago. I think the economy no tape nerg november or december . I think theyll be forced not to. I think it was a shot across the bow. Had it coming across as being responsible. Doesnt want to be irresponsible. Hes leaving. He wants to say, im about ready to do it, but also a student of the depression. And he knows full well 1937. And doesnt want to relive 1937. Hes going to wait for, you know, hell go the side of caution. I would imagine very strong economic numbers are going to force him to taper and we wont get that. The economy is going to slow, continue to slow. We have seen earnings come down, earnings expectations coming down a bit. I dont think hell have the room to do it. I think you want to say, hey, look, im in charge, ready to do it if we need to. Until then, when . Not for a couple of years. I dont think so. I think the demographics push it out a number of years. I think individual investors need to be very, very careful, because so many of them take so much risk. So many are just long roll of the dice and dont want to do that. I dont think he tapers anytime soon. He wants to give the impression he will. And in fact i dont i dont think theyre going to do it. I dont think they can do it. When do you see slowing . Profits are coming down definitely. Gdp is expected to continue going up. Where exactly do you see the metrics not adding up to this . Gdp of 2 to 3 is not enough. You pull back the stimulus, you go back to 1 or below. The big thing for me is deflation. Theyre scared to death of deflation. I think they really want that 2 inflation rate. We barely saw it with Consumer Prices last couple of weeks ago. I think theyre scared to death of a japanese style inflation situation. Theyre afraid of pulling it back. Not so much a slowdown on the economy. It is lack of inflation or negative deflation is what scares them the most. Thats the real reason they dont taper. You were saying, doesnt really matter. What have you been watching the rupee . India is apparently thousands of miles away, right . You have emerging markets that are moving on the prospect of a possible taper at some point in the future. How can you say it doesnt matter september or december when the entire world seems to be tapering has to come to an end. Were you surprised you were seeing flux in the emerging market . I think it is overdone. It is an exaggerated response to an end to tapering. I dont know why theyre so fearful this is about to come to an end. At one point, when quantitative easing was in full flex, we were looking at a junk bond yield of less than 5 . And if thats not speculative behavior what is . Perhaps it i