settlement with goldman sachs. our guest tonight has an unique perspective; he ran that agency in the late 1980s. joining us from chicago is david ruder, law professor at northwestern university and former s.e.c. chairman. professor ruder, welcome to "nightly business report." professor ruder, welcome to "nightly business report". hello, professor ruder? >> yes, can you hear me? hello? can't hear me? >> gharib: yes, i can hear you now. as you heard, the s.e.c. said today that this goldman sachs settlement sends a powerful message that other firms that violate fair business practices will pay a heavy price. do you think goldman sachs is paying a heavy price? >> i think goldman sachs is paying a heavy price since it was only one transaction that was covered by this settlement. goldman sachs is still in the position of having to worry about s.e.c. enforcement regarding its prior practices and of course s.e.c. possible enforcement if it fails to conform with the settlement. >> gharib: and the reaction from some other p

was exposed, 900 pages of documents about goldman sachs -- i'm writing a book about goldman sachs. the chance of me ever getting 900 pages of internal documents about goldman sachs would have been nil, so thanks to carl levin's committee we got those documents and it shows a lot of things that are really unpleasant including profane emails and bad behavior and goldman released love emails with a girlfriend -- it shows about the poor ethic on wall street and that's i think what the american public is reacting negatively to. >> charlie: i'll come back to that point. why did the s.e.c. make this deal? >> it came out hours after the monumental financial regulation package was pushed through congress. the s.e.c. needed shock and awe, it was laid low after the madoff debacle, they needed to go out and kneecap someone. they took on the biggest. if you're going to do it would you go after b of a or citi, some players laid low by tarp? no, you go after goldman from the signaling perspective. take the obverse of that, what happens come christmas time and you are sitting at the sorkin dinner

failure would have cost goldman sachs documents show yes apparently goldman sachs was forced to reveal who they allegedly insure themselves against in a i.g. collapse it turns out according to christopher whalen managing director at institutional risk analytics this illustrates that goldman version of reality is not entirely accurate they did have exposure to a i.g. and that is what drove their behavior in the bailout i'm sure one day we'll hear the equivalent of the sumner redstone audio files the telephone messages we'll hear the same from lloyd blankfein we're not going to kill the markets we're just going to need your money this is because when hank paulson went for congress and demanded seven hundred billion dollars as part of that amazing extortion racket where he threatened martial law in america unless congress gave him seven billion dollars for goldman sachs goldman sachs of the time said well we don't need the money because ridge now it turns out they weren't heads and he was operating as an extortionist for goldman his buddies and he is operating for the banks and not in beh

failure would have cost goldman sachs documents show yes apparently goldman sachs was forced to reveal who they allegedly insure themselves against in a i.g. collapse it turns out according to christopher whalen managing director of institutional risk analytics this illustrates that goldman version of reality is not entirely accurate they did have exposure to a i.g. and that is what drove their behavior in the bailout i'm sure one day we'll hear the equivalent of the sumner redstone audio files the telephone messages we'll hear the same from lloyd blankfein we're not going to kill the markets we're just going to need your money this is because of hank paulson one before congress and demanded seven hundred billion dollars as part of that amazing extortion racket where he threatened martial law in america unless congress gave him seven billion dollars for goldman sachs goldman sachs of the time said well we don't need the money because we're ahead now it turns out they weren't hedge and he was operating as an extortionist for goldman his body and he is operating for the banks and not in

cost goldman sachs documents show yes apparently goldman sachs was forced. to reveal who they allegedly insure themselves against in a i.g. collapse it turns out according to christopher whalen managing director at institutional risk analytics this illustrates that goldman version of reality is not entirely accurate they did have exposure to a id and that is what drove their behavior in the bailouts i'm sure one day we'll hear the equivalent of the sumner redstone audio files the telephone messages we'll hear the same from lloyd blankfein we're not going to kill the markets we're just going to need your money this is because of hank paulson went before congress and demanded seven hundred billion dollars as part of that amazing extortion racket very threatened martial law in america unless congress gave him seven billion dollars for goldman sachs goldman sachs at the time said well we don't need the money because ridge now it turns out they weren't heads and he was operating as an extortionist for goldman his buddies and he is operating for the banks and not

cost goldman sachs documents show yes apparently goldman sachs was forced to reveal who they allegedly insure themselves against in a i.g. collapse it turns out according to christopher whalen managing director at institutional risk analytics this illustrates that goldman version of reality is not entirely accurate they did have exposure to a i.g. and that is what drove their behavior in the bailout i'm sure one day we'll hear the equivalent of the sumner redstone audio files the telephone messages we'll hear the same from lloyd blankfein we're not going to kill the markets we're just don't need your money this is because of hank paulson went before congress and demanded seven hundred billion dollars as part of that amazing extortion racket where he threatened martial law in america unless congress gave him seven billion dollars for goldman sachs goldman sachs of the time said well we don't need the money because ridge now it turns out they weren't heads and he was operating as an extortionist for goldman his body and he is operating for the banks and not in behalf of the american peop

so a conservative is a goldman sachs this fire. and saying this film about themselves is only for internal distribution in the star is lloyd blankfein goldman sachs is in the next headline as well and a id failure would have cost goldman sachs documents show yes apparently goldman sachs was forced to reveal who they allegedly insure themselves against in a i.g. collapse it turns out according to christopher whalen managing director at institutional risk analytics this illustrates that goldman version of reality is not entirely accurate they did have exposure to a id and that is what drove their behavior in the bailout i'm sure one day we'll hear the equivalent of the sumner redstone audio files the telephone messages we'll hear the same from lloyd blankfein we're not going to kill the markets we're just don't need your money this is because of hank paulson went for congress and demanded seven hundred billion dollars as part of that amazing extortion racket where he threaten martial law in america unless congress gave him seven bill

as well in a id failure would have cost goldman sachs documents show yes apparently goldman sachs was forced to reveal who they allegedly insure themselves against in a i.g. collapse it turns out according to christopher whalen managing director at institutional risk analytics this illustrates that goldman version of reality is not entirely accurate they did have exposure to a id and that is what drove their behavior in the bailout i'm sure one day we'll hear the equivalent of the sumner redstone audio files the telephone messages we'll hear the same from lloyd blankfein we're not going to kill the markets we're just going to need your money this is because of hank paulson went before congress and demanded seven hundred billion dollars as part of that amazing extortion racket where he threatened martial law in america unless congress gave him seven billion dollars for goldman sachs goldman sachs of the time said well we don't need the money because we're ahead now it turns out they weren't hedge and he was operating as an extortionist for goldman his buddies and he is operating for th

have cost goldman sachs document. show yes apparently goldman sachs was forced to reveal who they allegedly insured themselves against in a i.g. collapse it turns out according to christopher whalen managing director at institutional risk analytics this illustrates that goldman version of reality is not entirely accurate they did have exposure to a i.g. and that is what drove their behavior in the bailout i'm sure one day we'll hear the equivalent of the sumner redstone audio files the telephone messages we'll hear the same from lloyd blankfein we're not going to kill the markets we're just don't need your money this is because when hank paulson went before congress and demanded seven hundred billion dollars as part of that amazing extortion racket where he threatened martial law in america unless congress gave him seven billion dollars for goldman sachs goldman sachs of the time said well we don't need the money because ridge now it turns out they weren't heads and he was operating as an extortionist for goldman his

failure would have cost goldman sachs documents show yes apparently goldman sachs was forced to reveal who they allegedly insure themselves against in a i.g. collapse it turns out according to christopher whalen managing director at institutional risk analytics this illustrates that goldman version of reality is not entirely accurate they did have exposure to a id and that is what drove their behavior in the bailout i'm sure one day we'll hear the equivalent of the sumner redstone audio files the telephone messages we'll hear the same from lloyd blankfein we're not going to kill the markets we're just going to need your money this is because i'm hank paulson went before congress and demanded seven hundred billion dollars as part of that amazing extortion racket very threatened martial law in america unless congress gave him seven billion dollars for goldman sachs goldman sachs of the time said well we don't need the money because ridge now it turns out they weren't heads and he was operating as an extortionist for goldman his buddies and he is operating for the banks and not in behalf

sachs in fact access the next headline europe freezes out goldman sachs so according to data from deal logic greece spain france and italy have all denied the bank a leading role in their sovereign bond sales so greece which used goldman in a bond sale this year is practically at war with the bank the press is acting as if it's a mystery like why suddenly is europe having no problem selling their debt but before you had goldman sachs was the primary dealer and yet they were betting against their own client just like in america the deal seems to be better against your children but against the future still from the future steal from your population and apparently when you remove that element of the equation your economy grows like a real free market right i mean you've got a war on terror and it's interpreted in two different ways in the united states are going after men in caves that are probably long sense departed and in europe they're getting rid of the real terrorists goldman sachs and as a result their economies are now doing much better certainly they're able to sell their debt ea

sachs in fact max us next headline europe freezes out goldman sachs so according to data from deal logic greece spain france and italy have all denied the bank a leading role in their sovereign bond sales so greece which used goldman in a bond sale this year is practically at war with the bank the press is acting as if it's a mystery like why suddenly is europe having no problem selling their debt but before you had goldman sachs was the primary dealer and yet they were betting against their own client just like in america the deal seems to be bet against your children bet against the future still from the future steal from your population and apparently when you remove that element of the equation your economy grows like a real free market right i mean you've got a war on terror and it's interpreted in two different ways in the united states or going after men in caves that are probably long sense departed and in europe they're getting rid of the real terrorists goldman sachs and as a result their economies are now doing much better certainly they're able to sell their debt easier now s

sachs in fact access the next headline europe freezes out goldman sachs so according to data from deal logic greece spain france and italy have all denied the bank a leading role in their sovereign bond sales so greece which used goldman in a bond sale this year is practically at war with the bank the press is acting as if it's a mystery like why suddenly is europe having no problem selling their debt but before you had goldman sachs was the primary dealer and yet they were betting against their own client just like in america the deal seems to be better against your children but against the future still from the future steal from your population and apparently when you remove that element of the equation your economy grows like a real free market right i mean you've got a war on terror and it's interpreted in two different ways in the united states or going after men in caves that are probably long sense departed and in europe they're getting rid of the real terrorists goldman sachs and as a result their economies are now doing much better certainly they're able to sell their debt eas

so you had a real change at goldman sachs. goldman sachs tends to, you know, when they run into difficulties, they tend to change the top management team. i think mr. blankfein's days could be numbered only because they'll try to put a good face forward and the public backlash of wall street and goldman sachs still might linger. and they might use that card to move forward. >> brown: now lawrence mcdonald, what do you expect next going forward? i mean do we look for the sec to bring some cases against other companies for similar practices or was this sort of the top of the wave here? >> there is no question, goldman sachs was actually a third-tier player in these kind of synthetic cdos. other firms were much more active. and i think you'll see things there in terms gfing after the other firms on these toxic products. but more interestingly, i can give you-- i can break some news tonight. behind the scenes i think the big fish that the sec wants is lehman brothers. lehman brothers bankruptcy is ten times the size of enron. it's

sachs in fact access the next headline europe freezes out goldman sachs so according to data from deal logic greece spain france and italy have all denied the bank a leading role in their sovereign bonds sales so greece which used goldman in a bond sale this year is practically at war with the bank the press is acting as if it's a mystery like why suddenly is europe having no problem selling their debt but before you had goldman sachs was the primary dealer and yet they were betting against their own client just like in america the deal seems to be bet against your children bet against the future still from the future steal from your population and apparently when you remove that element of the equation your economy grows like a real free market right i mean you've got a war on terror and it's interpreted in two different ways in the united states are going after men in caves that are probably long sense departed and in europe they're getting rid of the real terrorists goldman sachs and as a result their economies are now doing much better certainly they're able to sell their debt easi

sachs in fact maks us the next headline europe freezes out goldman sachs so according to data from deal logic greece spain france and italy have all denied the bank a leading role in their sovereign bond sales so greece which used goldman in a bond sale this year is practically at war with the bank the press is acting as if it's a mystery like why suddenly is europe having no problem selling their debt but before you had goldman sachs was the primary dealer and yet they were betting against their own client just like in america the deal seems to be bet against your children bet against the future still from the future steal from your population and apparently when you remove that element of the equation your economy grows like a real free market right i mean you've got a war on terror and it's interpreted in two different ways in the united states are going after men in caves that are probably long sense departed and in europe they're getting rid of the real terrorists goldman sachs and as a result their economies are now doing much better certainly they're able to sell their debt easie

forty two to kick out goldman sachs in fact access the next headline europe freezes out goldman sachs so according to data from deal logic greece spain france and italy have all denied the bank a leading role in their sovereign bonds sales so greece which used goldman in a bond sale this year is practically at war with the bank the press is acting as if it's a mystery like why suddenly is europe having no problem selling their debt but before you had goldman sachs was the primary dealer and yet they were betting against their own client just like in america the deal seems to be bet against your children bet against the future still from the future steal from your population and apparently when you remove that element of the equation your economy grows like a real free market right i mean you've got a war on terror and it's interpreted in two different ways in the united states are going after men in caves that are probably long sense departed and in europe they're getting rid of the real terrorists goldman sachs and as a result their economies are now doing much better certainly they'

sachs in fact access the next headline europe freezes out goldman sachs so according to data from deal logic greece spain france and italy have all denied the bank a leading role in their sovereign bond sales so greece which used goldman in a bond sale this year is practically at war with the bank the press is acting as if it's a mystery like why suddenly is europe having no problem selling their debt but before you had goldman sachs was the primary dealer and yet they were betting against their own client just like in america the deal seems to be bet against your children bet against the future still from the future steal from your population and apparently when you remove that element of the equation your economy grows like a real free market right i mean you've got a war on terror and it's interpreted in two different ways in the united states are going after men in caves that are probably long sense departed and in europe they're getting rid of the real terrorists goldman sachs and as a result their economies are now doing much better certainly they're able to sell their debt easie

forty two to kick out goldman sachs in fact max us the next headline europe freezes out goldman sachs so according to data from deal logic greece spain france and italy have all denied the bank a leading role in their sovereign bonds sales so greece which used goldman in a bond sale this year is practically at war with the bank the press is acting as if it's a mystery like why suddenly is europe having no problem selling their debt but before you had goldman sachs was the primary dealer and yet they were betting against their own client just like in america the deal seems to be betting against your children but against the future still from the future steal from your population and apparently when you remove that element of the equation your economy grows like a real free market right i mean you've got a war on terror and it's interpreted in two different ways in the united states or going after men in caves that are probably long sense departed and in europe they're getting rid of the real terrorists goldman sachs and as a result their economies are now doing much better certainly th

goldman sachs has not been the only disappointment so far. ibm and texas instruments have been under expectation, so this all soured the mood here on the floor, and stocks went down under 6000 points. >> let's get a look at how stock markets ended the tuesday session. similar for the euro index. new york and wall street, the dow in late trading, 10,230 right now and our currency versus the euro down just a tad, 28.86 u.s. cents. not making the grade. sources say germany has failed europe's bank stress test. tuesday, reports emerged that the real estate company owned by the german government is not healthy enough to withstand another crisis. >> germany's real estate company invested nearly 8 billion euros in greek bonds, and they say that is why it will not pass the eu stress test. 91 banks have undergone the test, and many are in germany. they are tested on their ab ility to withstand stocsk with at least a 6% capital ratio. early, only 4% was considered sufficient. it is unclear how much will be required to stay afloat, because risky securit

sachs got off easy, that this is a small fine for a company as big at goldman sachs. i wanted to give you a chance to respond. >> there are people who comment it is too high or two little, but it is the largest financial penalty against any institution in the history of the f.c.c. it is a $550 million penalty all together, which even if you're a company with a very large balance sheet or income statement, is a significant sum of money. and, third, the fact of the matter is they made $15 million on this deal and are paying a $550 million penalty. so market cap increases may come and go, and stock price come and go, but those are the real metrics. >> but this case went to the heart of some of the behavior that people say was responsible for the mortgage meltdown, the way mortgage products were packaged and sold on wall street. the fine amounts to by some measures, 14 days of profit. so is that the right level given how central this was to what went on in the mortgage markets? >> well, the penalty that was assessed here was not a referendum on the entire mortgage crisis.

goldman sachs reported a profit of $13.39 billion. company shares increased by 5% after news of the settlement. >> wow. hit me again. that is two days profit. once again, the banks went. is that uncertainty for you? >> that is why they settled parent this is so they would get this out of the way. what they can't get out of the way is that there remains a criminal investigation. i doubt there will be charged. it is still there. >> let me go to tom donahue's point, the guy from the chamber of commerce. how much of this begins to stifle the recklessness you need to have a free enterprise system? >> there is an amount of and prevention. intervention. the president has sold this as we will not have any more meltdowns or bailouts. it gives the fed and the treasury unilateral power without any congressional approval to step and to take over a bank or large institution. only the very large ones, the largest institutions have an implicit guarantee. if you lend to a large institution, you will get the money back. >it is not true of the land too

sachs employees with those words and the words they cannot pronounce on there and goldman is just following the lead here of j.p. morgan and citigroup which have also banned cusswords in their company e-mails we know arts shouldn't this be standard practice if you're a professional company and i have an even better idea actually all of you goldman employees how about you just don't create those crappy deals in the first place then you won't have to send e-mails laughing about the people that are about to lose all their money and that's why goldman sachs and their band of using cuss words in e-mails well all of that combined makes them tonight's tool time winner. well one day after a judge stopped arizona from enforcing key provisions of s.b. ten seventy protesters to send it on the state hundreds of demonstrators opposed to the state's hardline stance on illegal immigration took to the streets denouncing the controversial law as racist and gauging acts of civil disobedience the protesters some of whom gathered well before dawn march to various venues including the federal courthouse where t

goldman sachs agreed to pay $550 million to the u.s. financial markets regulator, the sec. the sec is dropping its fraud lawsuit against goldman. the government claims that goldman sold securities that were meant to fail. that is a tactic that contributed to the financial crisis. goldman is not admitting or denying any responsibility. >> there were three months of testimony against the investment bank revealing embarrassing details. just before the house and bubble burst, goldman sachs was advising clients to invest in real estate funds that contained bad debt. in doing so, goldman covered up the risks. clients lost 800 million year rose 3 toeuros. -- euros. >> this is a stark reminder there will be a heavy price to be paid. full disclosure, honest treatment, and fair dealing. those principles do not change, regardless of how complex the product or how sophisticated the investor. >> part of the fine will be divided among injured clients. ikb will get 150 million euros. about 77 million will go to the royal bank of scotland. goldman must pay back about 12 million in commissi

also tonight, a record fine for goldman sachs. the financial giant will pay more than half a billion dollars to settle charges it defrauded investors with securities designed to fail. f.d.a. health experts reject the first new prescription drug for weight loss in more than a decade, but there are more in the pipeline. and she's making baseball history-- she and her knuckleball. captioning sponsored by cbs from cbs news world headquarters in new york, this is the "cbs evening news" with katie couric. >> couric: good evening, everyone. it has to be the most beautiful sight we've seen the gulf of mexico in three long months. not a drop of oil coming out of that b.p. well for the first time since the rig exploded. but this is not the end of the crisis. now the waiting begins to see if the cap over the well can withstand the pressure of the gushing oil. and even if it does, this is not a permanent fix. that won't come until the relief wells are completed and the damaged well is plugged. but president obama called it a positive sign and

investment bank goldman sachs has settled fraud charges, but it came at a record cost. ines matsuyama has the details in a look of the latest market-moving headlines. >> thank you very much, catherine. >>> goldman sachs has agreed to pay $550 million in fines to settle fraud charges by the u.s. securities and exchange commission. the s.e.c. announced the agreement on thursday. the government watchdog filed a lawsuit against the wall street firm in april. the regulator claims goldman sachs sold subprime loan products without providing crucial information to investors. the company acknowledged its marketing materials for the product had incomplete information. the penalty is the largest to be ever paid by financial institutions. $250 million from the fine's total amount will be used to compensate investors. the s.e.c. said the settlement was a stark lesson to wall street firms to provide information properly or pay a heavy price. >>> meanwhile, second quarter profit at jpmorgan chase has surged 76% to nearly $4.8 billion. the boost comes from the bank's consumer divisions

sachs is what's advancing their economies. presses acting as if it's a mystery like why suddenly is europe having no problem selling their debt but before you had goldman sachs was the primary dealer and yet they were betting against their own client just like in america the deal seems to be better against your children bet against the future steal from the future steal from your population and apparently when you remove that element of the equation your economy grows like a real free market right i mean you've got a war on terror and it's interpreted in two different ways in the united states or going after men in caves that are probably long sense departed and in europe they're getting rid of the real terrorists goldman sachs and as a result their economies are now doing much better. and you can watch the cars reporting just ten minutes from now here on t.v. time now for the business update with daniel. well it's a business the results of european bank stress tests to friday evening have been looming over the markets the tes

goldman sachs was accused of defrauding investors. the penalty is the largest ever against a wall street fund and it's equal to 14 days worth of goldman sachs earnings. that settlement helped wall street overcome a slump but not enough to help the stocks downturn. >>> we are learning more about a deadly incident at a san jose apartment complex. details on a suspect and an update on the condition of winston one of the suspects. >>> a lettuce recall to report to you. we'll tell you which brand is in question tonight. >>> we're learning more about a deadly incident. the suspect is bobby turner. investigators say he could face charges as early as tomorrow. the incident unfolded last night at the complex. witnesses say turner stabbed one woman and then shot and kill another, 48-year-old verna lisa collins who came to the aid of the first victim. >>> prosecutors today charged a san jose man with murder in the death of a 15-year-old girl. bernadino cubas is being held without bail. his arrangement is now scheduled for two weeks from today. a

goldman sachs was accused of defrauding investors. the penalty is the largest ever against a wall street fund and it's equal to 14 days worth of goldman sachs earnings. that settlement helped wall street overcome a slump but not enough to help the stocks downturn. >>> we are learning more about a deadly incident at a san jose apartment complex. details on a suspect and an update on the condition of ♪ keep feeling fascination ♪ passion burning ♪ love is so strong ♪ saving money. and like baseball people love their stats. i started bringing my lunch to work -- 50 bucks a week in my pocket. here's a good one: state farm insures 40 million drivers. more than geico and progressive combined. i saved because i'm accident-free. of course, with so many ways to save including discounts of up to 40%, having that many customers shouldn't be a surprise. so ask a neighbor about state farm, then call an agent at 1-800-state-farm or go online. >>> we're learning more about a deadly incident. the suspect is bobby turner. investigators say he c

goldman sachs wasn't entirely right. it did have to be saved in the end. but it was less wrong than bear stearns or lehman brothers so now there's sort of a temptation to beat up on the guys who were right. i would prefer to look at the math and say we should be angry with the people who were flatout wrong, who didn't do their jobs at assessing risk properly. that's why we got into the mess. so my view of hedge funds on the whole is they didn't get it wrong. they didn't need taxpayer injections in money so we should basically be embracing them and trying to encourage more risk to be manage by hedge funds because risks won't go away. currencies will go up and down. interest rates will go up and down, there will be complicated decisions about how you allocate savings in a complex economy. so finance is going to be risky. finance is a system of complex promises about the future which is itself unknowable. so there will be bubbles and crisis and problems. but the point is which kind of financial vehicle is the least bad at absorbing this risk and my answer is

goldman sachs made the call on us of $1.8 billion. they then we were surprised at the magnitude of the call. surprised at the lack of increment talt to the call. it went from nothing to $1.8 billion. obviously, my job is not to trust goldman sachs' numbers but to verify. we received their numbers. we went out and asked other major participants in the market for pricing on the same instruments or similar instruments, and we received wide variances from the goldman numbers. and goldman's numbers were always lower than the others. >> and i should remark in this chronology they are lower all the way through. >> yes, sir. and so my team, i instruct my team to assert basically the contractual rights that we had, which is the review of the marks and the calls that they are making, along with others, and as you point oud, chairman, the call rapidly declined. it went in the, as you pointed out, 1.8 billion, at the end of july 1.6 billion. it became very rapidly. it then moved to 1.2 billion. and within another ten days. but by the time, if my

later investors had a change of heart, focusing on goldman sachs' future. shares ended up over 2%. traders also ignored worse than expected june housing starts data, focusing instead on applications for building permits, a measure of future activity, which unexpectedly rose. beaten but still standing, construction-related businesses all performed strongly. today look for apple to drive the markets. after the bell, apple blew past expectations, thanks largely to its hot-selling ipad tablets and new iphones. earnings news was not good yesterday. ibm fell a day after reporting quarterly revenues that missed estimates and was the dow's top drag. texas instruments also fell after missing revenue expectations. >>> also johnson & johnson's earnings came in below expectations. the company blames several recent recalls of popular nonprescription medicines and announced those recalls are the subject of a federal criminal investigation. >>> after the bell, yahoo! dropped sharply after weak advertising led the internet company to miss net revenue expectations. >>> as expected, bp announced it'

morgan chase, bank of america and goldman sachs. none of the banks rescinded those payments. feinberg says he didn't think he had the authority to demand the money back. >> at the time these payments were made, as ill-advised as they may have been, they were not in violation of a statute, they didn't violate any regulation, of the treasury or the s.e.c. or anybody else, at the time they were made, it was bad judgement, 11 of the 17 companies had already paid the money back with interest. i thought to trigger that phrase would cause additional problems for these companies that would be unfair. >> reporter: feinberg's report is prompting a new round of calls on capitol hill for bailed-out banks to repay the bonuses. damon silvers is with the afl-cio and sits on the tarp oversight board. he says feinberg didn't hit hard enough the big issue, whether it's fair for executives to get big payouts when things go bad. >> i think that both from a policy perspective and in terms what the public wants in terns of accountability is that we need to be a little more blunt. >> reporter: fein

goldman sachs is paying $550 million for fraud charges. $3550 million is just about two weeks of net income for goldman. >> and just hours before that was announced, congress gave final approval to legislation imposing the stiffest restrictions on banks and wall street firms since the great depression. law will clamp down on lending practices and expand consumer protections on things like mortgages and credit cards. president obama is expected to sign the bill next week. >>> for the first time city leaders in concord are formally considering the possibility of taking ownership of parts of concord naval weapons station. federal government wants to auction off the land to the highest bidder but now the obama administration it would rather sell closed down bases at cities at a discount if they can create jobs on the site. media partner reports that the city council is now considering how to add that land to the city's general plan and possibly develop job centers near the bart station. >> still ahead. money scope headlines in the bloomberg business report. >> so far it's a tight race bu

. >>> earnings plunged at goldman sachs for the may to june period. that came as they paid a huge fine to regulators and market turmoil depressed returns for the trading division. goldman sachs said on tuesday that its net profit fell over 80% in the last quarter from a year earlier to slightly above $610 million. the drop was partly due to the payment of a $550 million fine to the securities and exchange commission earlier this month. the payment was to settle fraud charges over sales of subprime loan products. the british government also levied a $600 million tax on goldman, among others, for paying large bonuses to its employees. lower earnings for the trading division were also a factor as european fiscal problems caused turmoil in the stock and bond markets. >>> tokyo stocks traded within a range on wednesday morning. the nikkei 225 ended the morning session at 9,321 points, up 0.2%, or 21 ticks. the index opened higher as investors took their cue from an overnight rally in new york. nearly lly 500.4 in the benchm also gave a reason to bargain hu

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