even picard's camp says madoff's story isn't true. they put out a statement today: >> he is at the inner circle of financial hell, and i think he wants other people surrounding him to share the guilt and culpability. he's a man who got to rationalize the suicide of his child. >> reporter: in the interview, madoff said he never asked to attend his son's funeral because it would have created a media circus. he also said no members of his family knew anything about his massive fraud. katie? >> couric: jim axelrod, thanks so much. meanwhile for a company in the book business, it's the saddest chapter of all: chapter 11. boarders filed today for bankruptcy. it will close 200 of its more than 600 stores, and 6,000 employees could lose their jobs. one reason for borders' troubles: it was slow to jump on the e-book wave. here's anthony mason. >> reporter: at printing presses like this one in pennsylvania, the e-book is the enemy. >> e-books this year affected our business maybe 8% to 10%. >> reporter: dave lee says his company is printing 50

fred wilpon and madoff became personal close friends. in the times interview, madoff said that wilpon didn't know about the scheme. but in a lawsuit asking for a $1 billion, the trustee has revealed e-mails from wilpon's own advisers that they had warned him about madoff for years. at mets spring training today, his son jeff said that the family denies the allegations. >> we're going to fight it. we're going to be victorious in the end. >> his strongest comments were reserved for the media coverage of the suicide last december of his son mark. which he labeled disgraceful. he's not quoted in the article as saying he felt any responsibility for what happened to mark. >>> brian ross has been covering it since the very beginning. >>> in tiny bahrain, crowds demanded more jobs. and an end to the 200-year-old monarchy. protesters digging in, they say, for the long haul. in what has become bahrain's version of tahrir square. and that's where we find miguel marquez. >> reporter: diane, pearl square here in manama, demonstrators have gathered th

they had hedge funds that looked at madoff something they owned. the head of that fund said to the willpon cats family who owns the said we don't know how he's going to make money. we'll take a pass. this is the fund they owned. so you ask yourself should there have been red flags raised and should they have gone to bernie madoff and asked them what was going on and they didn't. this is sophisticated businessmen. >> charlie: do you know anybody who saw it and said this doesn't make sense. >> some major banks pulled out portions of their money, advised clients not to invest there. >> charlie: because it doesn't ring true. >> it doesn't ring true. there were others who wouldn't put money in or advised cliects to put in money because they looked at it and said he won't explain the secret formula he has and we can't figure it out and we don't think it's safe. in the lawsuit against j.p. morgan there are e-mails from some people inside saying this isn't right, i'm concerned about this. there are suggestions of fraud here. but as you say the sec had thes

the trustee recovering madoff's assets sued chase, saying the bank ignored warning signs on madoff's accounts there. chase say it didn't break the law, and wasn't required to investigate those accounts. still ahead, tonight's "street critique" has some lessons on investing in small and speculative stocks. hilary kramer of gamechangerstocks.com. >> susie: big merger news here at the new york stock exchange involving the big board itself. the n.y.s.e. says it's in serious talks with germany's stock exchange, the deutsche bourse. no agreement yet, but if they do a deal deutsche would buy the n.y.s.e., creating the biggest stock exchange in the world. reportedly, the n.y.s.e.'s duncan niederauer would be the c.e.o. of the powerhouse and reto francioni, the head of the deutsche exchange, would be chairman. joining us now with more, michael wong, financial services analyst at morningstar. hi, michael. >> hello, susie. >> susie: so does this combination make sense? why would these two giants want to do this deal? >> the merger pending potential merger makes sense, exchange mergers always ma

madoff's calls and e-mails are now monitored. and according to "the times," he appears thinner, frail, and burdened by the sadness from his son's suicide just before christmas. the media coverage of which, he calls, quote, disgraceful. in "the times" interview, madoff does admit his guilt, adding th crimes.use his crimes. brian ross will have much more on this later today on "good morning america." >>> the colombia military has seized a sophisticated drug trafficking submarine. and they say it was able to carry cocaine from colombia to mexico. there were no drugs onboard. but authorities believe it was ready to be loaded. they did find some weapons onboard. but so far, no one has been arrested. >>> one of the sons of north korean leader, kim jong-il, has reportedly been seen in public for the first time in five years. of all places, at an eric clapton concert in singapore. the 29-year-old second son of the reclusive leader was wearing a black t-shirt. he was surrounded by plainclothes security guards who were trying to block came

we will hear from a madoff victim. one of the thousands of people madoff is not talking about. >>> in that caramel color in your favorite cola may be a cancer-causer. we will hear the latest charges in the soda wars. this is "the early show" on cbs. how are you getting to a happier place? running there? dancing there? how about eating soup to get there? campbell's soups fill you with good nutrition, farm-grown ingredients, and can help you keep a healthy weight. campbell's. it's amazing what soup can do. that's why there's lubriderm® daily moisture. it contains the same nutrients naturally found in healthy skin. skin absorbs it better and it lasts for 24 hours. later gator. lubriderm. your moisture matched. we're all striving for it. purina cat chow helps you nurture it in your cat with a full family of excellent nutrition and helpful resources. purina cat chow. share a better life. >>>welcome back. can you imagine losing $5 million to bernie madoff's ponzi scheme? >> so many people had put their life savings, they ha

did the wilpon family benefit from the madoff fraud? will the owners have to pony up a billion to settle or just a strong-arm shake down by the trustee in the lawyer calls the lawsuit baseless, absurd, character assassination saying they would not have dealt for one minute with someone they thought might have been engaged in fraud. still you the mets are seeking a new partner to raise capital, if needed. >> i think if you ask most new york mets' fans and i have to say i count myself as one, the best scenario would be the wilpons making a graceful exit. >> reporter: as for the team on the field, optimists point out the texas rangers spent last year going through bankruptcy and ended up in the world series. when the mets open their season on april 1st they will be tied for first place. mike taibbi, nbc news, new york. >>> and when we come back here tonight, tributes to ronald reagan on his 100th birthday. >>> ronald reagan was born on this day 100 years ago. and in california today, the 40th president was honored by those who loved him an

. >>> also coming up, madoff points a finger. apple wants your app money, and has coca-cola's secret formula been cracked? your business headlines are straight ahead. >>> plus, if you found lady gaga's grammy egg arrival stunt too much, wait until you hear her latest claims about the egg. >>> coming up, an embarrassing moment for the grizzlies o.j. mayo, and a record-setting night for steve nash and dwyane wade. you're watching "early today." >>> good morning, and welcome back to "early today." i'm lynn berry. here are some of your top headlines this morning. american and mexican officials are working together to investigate the shooting of two u.s. immigration and custom enforcement agents in northern mexico yesterday. one agent was killed and another wounded when they were stopped at an armed checkpoint or road block of some kind. mexico condemned the shooting and expressed solidarity with the u.s. and the agent's family. >>> former cuban president fidel castro made a rare appearance yesterday. speaking at a havana book fair. i

if the big banks knew, then why didn't madoff's own family know about this? his family who is close to the situation has been accused of knowing, but hasn't been found to be knowing. >> this is the first time he has spoken in two years. he is serving this 150-year prison term. like you said he contradicts himself quite a bit so why should anyone believe what he is saying now? >> that is a hallmark of any kind of case against this -- ni banks. if it's all about allegations and what he is saying, then has contradicted himself already and how are we to believe him about that? one point to make, however, we talked about this a few weeks ago, jpmorgan is facing a lawsuit because of exchanged e-mails and allegations that people were aware that this was going on at the bank. >> for the victims, if, in fact, if anything that he is saying is now true, what does this mean for them as far as a recovery potentially? >> well, if it is true and if there is found to be knowing at the major banks, then they probably will pay a role in paying back some of victims but that is

have known of possible fraud at madoff's investment advisory business". citi said it will vigorously defend itself against the trustee's claims. tom, as you know, citi's not the only big bank picard is targeting. he has also sued j.p. morgan chase and bank of america's merrill lynch unit. and both of those stocks were also down sharply today. >> there wasn't much that was not down sharply today. all of the 10 major s&p stock sectors were in negative territory by the closing bell. let's go ahead and get folks updated with tonight's "market focus." >> tom: stock investors were greeted with a stiff sell-off after the long president's day weekend. stock prices dropped, volatility jumped, and bond interest rates fell as prices rose. let's start with today's trading of the s&p 500. we spent the entire day in negative territory as stock prices continued falling through the afternoon. since december 1, the index has seen an almost uninterrupted bull run, representing a 14% jump before today's sell-off. today's drop in stocks brought with it a pop in fear. the chi

i have to begin with the news from bernie madoff overnight. saying the banks had to know about his fraud. i know he had credibility problems. but it seems like the trustee is going down this road, as well. do you believe it? >> i don't know who knew what. what i do know is bernie did it. bernie destroyed an awful lot of human beings. his own family. it's tragic. no less tragic than other families. what he did broke the law. knowing he was going to do it. he knew in the end it had to end terribly for a lot of people. people trusted him. and they shouldn't have. i knew the guy casually 30 years ago, 20 years ago. the s.e.c. put together a study of the marketplace. i was at solomon brothers and goldman sachs was there. bernie was there. and then i hadn't heard about him. >> you didn't suspect anything back then? >> he was a nice guy back then. and i hadn't heard his name for 20 years. >> if you're getting those returns, you know something's going on, right? you're a sophisticated investor. >> anybody who thinks they can beat the market long-term,

. >> the swindle bernie madoff is making against the bank he did business with. >> closed captioning brought to you by mancini sleepworld. >> good morning. the deal merging new york and frankfort stock exchanges is based on hurdles. they will determine if it jeopardizes national security. more homeowners are making their mortgage payments on time. delinquencies fell. coke is still secret. a show claims to have found the formula in an old newspaper. it may have been a precursor to the famous formula. i'm vinita nair. >> a mortuary director accused of cheating several families is scheduled to be arraigned in court today. darrell washington ran funerals by washington in the bayview district. washington is accused of preselling funerals to the living, then spending the money and having nothing left for the customers bills when they died. looking for one of washington's employees, donald raul lings of fairfield. they closed down for other violations. >> disgraced fund manager bernie madoff says he couldn't have run his huge ponzi scheme align. madoff said banks and hedge funds fleeced vic

. >> bernie madoff interview. inside information he gave the "new york times" and the bay area attorney in on the secret. >> and when you donate to charity in a retailer who gets a write off? you or the store? 7 on your side is coming up. >> and final night of the ibm challenge. a comomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomomom

madoff did not names the banks and hedge funds but told the "times" they had to know. but the attitude was, if you're doing something wrong, we don't want to know. madoff says in prison interviews he helped irvin picard the trustee appointed to help recover some $20 billion in profits for the scam's innocent vict victims. he said he gave piccard, quote, information i knew would be instrumental from recovering assets from those people come police in the the mess i put myself into. picard filed lawsuits on behalf of madoff victims seeking hundreds of millions in allegedly illicit profits from jpmorganchase and from the owners of the new york mets. both denied ever suspecting fraud. >> even if you don't know specifically, if there are signs and you ignored them you are held libel -- liable. >> reporter: the scheme victimized thousands of investors including mentors, friends and strangers hoping to recover something. even before his trial and before he went to prison he became a pariah. >> what's lost as we talk about hundreds of millions and billions of dollars are the sm

the trustee overseeing the liquidation of bernie madoff's business claims j.p. morgan chase likely knew about the ponzi scheme for years, but did nothing about it. he's suing for over $6 billion, and says the bank collected billions in fees on madoff's accounts. the suit was filed in december but only unsealed today. chase had fought to keep it confidential. the bank denies the allegations. it says, "j.p. morgan did not know about or in any way become a party to the fraud orchestrated by bernard madoff" >> realistically, there is no other source to get this many people for that cost. >> tom: still ahead, why careerbuilder keeps spending millions of dollars to advertise during the super bowl, and what it gets in return. egypt's beleaguered president hosni mubarak says he's fed up and ready to step down, but he fears doing that would result in more chaos in his country. even as he spoke, the fight for egypt's future went on in the streets of cairo. violence between pro- and anti- mubarak demonstrators continued for a second day. meantime, a top western think tank

we haven't forgot about madoff. but the problem is, as some people have forgot in 1998, a whistle blower first went to the s.e.c. on madoff and they did nothing, repeatedly individuals went to the s.e.c. on madoff and did nothing. we can pass all the regulations through dodd-frank we want to pass. madoff went to jail because he was a criminal. he violated the law and you don't need 20 laws in place to punish a person for one act. we did it. dodd-frank goes far beyond that. it's 243 new regulations on the pipeline, 243. it's scary. now, the s.e.c. has failed in many ways. . many heard me talk about market to market principals. that means when the lender makes a loan they have to mark the value on their books of what the product is worth at current market value. for example, if five years ago a piece of property is worth $20 million they lend $15 million. today it's worth only $12 million, well the s.e.c. says we should lend no more than $8 million. now the loan is performing, mean the property is current on its payme

concerned more about protecting its own investment in madoff's funds. they are looking for $6.4 million from jpmorgan chase. >>> the super bowl could be a big boom. despite the icy weather, the game could post records for sales of tickets and merchandise generating a bigger impact for north texas than any previous host. price water is predicting a 200,000 bunch of people to descend on the game to spend $202 million. scott, that tops $195 million spent in '07 in florida. >> fair enough. looking forward to it. thank you, nicole. >>> dog walkers, baby strollers and bicyclists, everyone has a story about some near miss accident on bay area walking trails. but is it time for the police to step in? "today in the east bay's" vicky nguyen looks at accidents on popular trails and what can be done about them. >> reporter: one minute she was on a leisurely stroll with her dog. >> i didn't see it coming. >> reporter: the next -- >> i heard from behind the biker yell, lookout. then i turned around. >> reporter: by then it was too late for george finch. the cyclist s

. >>> bernie madoff is talking again. in an interview with new york magazine, the convicted wall street swindler calls new financial reforms a joke and again blames big banks and hedge funds and even his own clients for failing to question his bogus returns. madoff also said keeping the billion-dollar scheme a secret was a nightmare and revealed his wife has not spoken to him since the suicide of their son in november. she is angry, he says, i destroyed our family. madoff is serving 150 years in a north carolina prison after being convicted of fraud charges in 2009. >>> and there is no end in sight to the runup in oil prices. the cost for crude oil topped $99 a barrel this morning in asia due to the ongoing turmoil. oil production in libya has been cut in half while other nations have pledged to increase output analysts are worried the unrest could spread. meantime, gas prices have jumped 18 cents in a week to a nationwide average of $3.35 a gallon. that is the highest ever for this time year. >>> that's your moneywatch.

the dow lost 41 points, while the nasdaq gave back nearly 13. >>> bernie madoff is breaking his silence. in his first interview since his 2008 arrest, the former ponzi king told "the new york times" that wall street banks and hedge funds, quote, had to know about the scheme long before it collapsed. he also insisted his friends, family and clients never knew anything about his crimes. madoff is serving a 150-year sentence in a north carolina prison for bilking investors out of more than $65 billion. >>> americans continued getting their household finances in order last month. credit card companies posted the lowest rates of default and late payments in two years. that's a strong sign consumers had a better handle on paying their holiday bills. but, because the card companies aren't making as much from late charges, they are increasingly jacking up rates for everyone to get their money up front. >>> starbucks may soon be coming to a hotel near you. the coffee chain will provide disposable filter packs of single serve coffee for a half a million hotels. starbucks is looking for ways to in

bernie madoff breaks his silence behind bars. >>> i was furious and hurt. i felt as if they were calling me a liar. >> the blame game. was it a wild swing or a faulty gaming product that shattered this tv? ,, rocket scientists! you gave us the space age... but your savings accounts are stuck in the stone age! earn more commodore with interestplus savings at capitalone.com. that's new school banking, baby! [ laughs ] instead of earning zilch, your savings will be earning three times the national average. three times more? roger that! go online and sign up at capitalone.com. what's in your wallet?! you to rush out and but a car this weekend. it's an unusual arrangement with the city's auto >>> concord wants you to rush out and buy a car this weekend. it's an unusual arrangement with the city's auto dealers. ann notarangelo with what is behind the kind of hard sell here. anne?? >> reporter: here's the offer. if you buy a car in concord through monday, then a portion of the sales will go to the mount diablo unified school district athletic and music program but

. >>> bernie madoff is talking again. in an interview with new york magazine, the convicted wall street swindler calls new york financial reforms a joke, and again blames big banks and hedge funds, and even his own clients for failing to question his bogus returns. madoff also said keeping the billion dollar scheme a secret was a nightmare. and revealed his wife has not spoken to him since the suicide of heir than in november. she's angry, he says, i destroyed our family. madoff's serving 150 years in a north carolina prison. after being convicted of fraud charges in 2009. >>> well, no end in sight to the run-up in oil prices. the cost for crude topped $99 a barrel this morning in asia. due to the ongoing turmoil, oil production in libya has been cut in half. while other nations have pledged to increase output, analysts are worried the unrest could spread. meantime, gas prices have jumped 18 cents in a week to a national average of $3.29 a gallon. that is the highest ever for this time of year. >>> warren buffett is bulli

government a giant ponzi scheme bernie madoff the man who ran the largest ponzi even in history says so in a new series of interviews with new york magazine steve fishman after calling fishman collect from prison where he's serving one hundred fifty years of sentencing it seems like made off on him to get a few things off his chest personally he says that he's a good person and he can't believe that nobody wants to hear about all the good things he did as a successful businessman despite the fact that he also is now known as the world's worst swindler when it comes to wall street at banks government regulations he likes to spread the blame again calling out the banks that he worked with saying if they had to know that there were problems saying that it's unbelievable that no one from goldman sachs has any criminal convictions after the financial crash at which point he also called the new regulatory reform of wall street a joke and called the entire government a ponzi scheme with a good person quote is a little bit questionable when it comes to wall street and the government is he ri

. >>> when the lid came off bernard madoff's ponzi scheme there was plenty of shock and disbelief. well, maybe not. which of america's largest banks was warned about bernard madoff some 18 months before the gig was up. >>> the increasingly bloody clashes in the streets of cairo. apparently one fashion designer thinks it is a good opportunity to advertise its new spring clothing line. ,,,, da dan: i had a biopsy and i had high-risk prostate cancer. i was depressed. i was shocked. sometimes cancer makes you feel very lonely. the doctors can do their best to cure the cancer, but it takes all of the other stuff to make you a whole person again. i've been given a second chance. announcer: at sutter health, our story is you. for more stories, visit sutterhealth.org. [ woman ] the first time i smoked, i was 13.g breaths ] i was in a hurry to grow up and wanted to look cool. big tobacco knew it, and they preyed on me. i'm here to tell you that big tobacco hasn't changed. they continue to profit... by selling kids the same lies... to get them to use... the same deadly products. don't be big

disgraced fund street manager bernie madoff is talking for the first time since his conviction and one of the biggest ponzi schemes in history. some of the biggest banks and hedge funds were complicit in his scheme but would not say way institutions were involved. they are suing j. p. morgan chase in an attempt to get some money back from the investors he defrauded out of billions. the bank denies doing anything wrong. madoff is serving a life sentence. >> a teacher suspended for her profanity-laced blocking says she was telling the truth about students unwilling to work hard at school. natalie monroe who's eight months' pregnant was suspended with pay after students say she discovered a blog that show wrote like a diary to her friends. things like saying i hate your kid were tongue-in-cheek. >> i mean, it was not meant for everybody to see, but if it's gonna get out there, maybe it will start a conversation that needs to happen. >> do you want to continue teaching? >> yes. >> at that particular school? >> i have no plans for a career change so i will we'll see what happens. >> that wa

disgraced fund street manager bernie madoff is talking for the first time since his conviction and one of the biggest ponzi schemes in history. some of the biggest banks and hedge funds were complicit in his scheme but would not say way institutions were involved. they are suing j. p. morgan chase in an attempt to get some money back from the investors he defrauded out of billions. the bank denies doing anything wrong. madoff is serving a life sentence. >> a teacher suspended for her profanity-laced blocking says she was telling the truth about students unwilling to work hard at school. natalie monroe who's eight months' pregnant was suspended with pay after students say she discovered a blog that show wrote like a diary to her friends. things like saying i hate your kid were tongue-in-cheek. >> i mean, it was not meant for everybody to see, but if it's gonna get out there, maybe it will start a conversation that needs to happen. >> do you want to continue teaching? >> yes. >> at that particular school? >> i have no plans for a career change so i will we'll see what happens. >> that wa

. >>> all new, the man who sternny madoff is speaking out for the fir first, the banks he choosing a will book based on the scandal. he did not mention specific banks or funds. he also claims his family had no idea about the fraud. his son committed suicide. madoff acknowledged guilt but there's nothing he's ever done. >>> new, united airlines is voluntarily grounding 96 of its 757 aircraft because the maintenance checks were not completed. united tells us tonight the problems could last into tomorrow. so it's a good idea to check your flight status if you're flying united tomorrow. >>> here's a twist. social networking with a sinister twist. up next, why mexican gang members googling. >> they have a good chance of koj an offer. bring home a baby or get your money back. the bay area baby and thumbs up, up high in the mountains. jeff? >> yeah, finally looking like winter here. vind more on that as we continue to track this. ♪ [ female announcer ] starbucks via is planted the same... ♪ ...harvested the same... ♪ ...and roasted the same as our other premium coffees. it only makes

. >>> the jobs outlook and ben bernie madoff are back in the news. >> reporter: hong kong's hang seng was closed for the holiday while in japan, the nikkei gained more than 1%. wall street tries to finish out the week on a high note. retail sales helped push stocks higher, the nasdaq added four. wall street's focus today, the labor department's january jobs report. it's expected to show the economy add 145,000 jobs last month, but that is barely enough to keep up with the population growth. the unemployment rate is forecast to edge up to 9.5%. fed chair ben bernanke warns the job growth this year will not be strong enough to drive down unemployment quickly saying it could take several years before the labor department returns to pre- recession levels. bomb shell allegations that jp morganchase knew what ponzi king bernie madoff was up to and did nothing about it. emails show that executives knew of the fraud. and ford is expected to recall 280,000 trucks here in the united states to fix a door problem. the recall affects f-150 trucks from the 2009 and 2010 model years. the door handle

. >>> and we find ruth madoff in hiding, bernie madoff's wife, her new life. >>> then, world outrage over the brutal sexual assault on the "60 minutes" correspondent. >> i'm lara logan. >> the latest on her condition. >>> plus -- >> walk away. >> real-life super heroes. the nationwide phenomenon. >> this is my business. >>> now, "inside edition weekend." >> after speaking gibberish on air a reporter explains. >> wait until you see her reaction when she watches that report. i'm paul boyd. >> i'm diane mcinerney. we are finally hearing from the correspondent whose live grammy report went terribly awry. she had so much difficulty speaking there were concerns that she had a stroke live on the air. >> but in her first interview she has a different medical explanation, and she cringes as she watches the report for the first time. >> i was terrified. i was scared,

bernie madoff breaks his silence. why he says the banks had to know about his ponzi scheme before he was caught. >> and the winner is... how history was made at the world's biggest dog show. it's all coming up next. ,,,,,,,, ♪ i thought it was over here... ♪ [car horn honks] our outback always gets us there... ... sometimes it just takes us a little longer to get back. ♪ shouldn't be hard work or cost more money. now there's simple nutrition, only at safeway. green tags throughout the store call out what matters most to you. ♪ there are 22 different nutritional benefits highlighted. ♪ and with our low prices, now safeway makes bringing home the right choices easier than ever. that's simple nutrition. ♪ that's ingredients for life. safeway. first interview since his 2008 arrest. >>> good morning. here's a live look at chopper 5 over the bay bridge toll plaza where the metering lights were just turned on so traffic is just beginning to stack up. we are following several hot spots this morning including the c

ma madoff had a cloud over -- madoff had a cloud over his head. the bank said the documents are taken out of context. they deny any wrong doing. >>> a young man makes a passionate plea. why the son of lesbian parents is drawing national attention. >> it makes you start seeing stuff that is not there. it's weird but scary. >> talking about a new legal street drug. the long-term effects users suffer. >>> good morning, westbound highway 4 traffic looking pretty good. steve and i will be back with traffic and weather in a few minutes. >>> good morning, we have a little bit of fog. after that it will be sunny to mostly sunny. it's not going to stop temperatures from getting into the 60s. >>> the reward offer is increasing for the monterey county man accused of mutilating thousands of puppies. he's accused of cropping the ears of puppies. now they are nacritessing their reward for -- now they are increasing their reward for his capture. >>> crime in east bay city of pittsburgh is on the way down. there were 40 fewer serious crimes. using fbi statistics

bernie madoff is breaking his silence. in an interview with the "new york times," his first since his arrest two years ago, the former ponzi king takes a shot at wall street. he says banks and hedge funds, quote, had to know about his scheme long before it collapsed. he also insists he acted alone, that his friends, family and clients were completely in the dark. he is serving a 150-year sentence for bilking investors out of $65 billion. >>> so maybe it's happened to you a surprise charge you find on your phone bill. well it could be a case of cramming. on the consumerwatch, this morning, julie watts with some good news about those sneaky fees. >> reporter: every time dan franklin opens an at&t bill he gets a knot in his stomach. >> because i know there's going to be that charge on there. >> reporter: $4.95 from a company called usbi. it first popped up on his phone bill three years ago and now it shows up like clockwork. >> they say it's for a long distance service. >> reporter: a service he says he never ordered. so ever

. >>> convicted swindler bernard madoff has granted his first jailhouse interview. madoff telling the "new york times" he never thought the collapse of his ponzi scheme would cause the sort of destruction it did to his family, and he also said that various banks and hedge funds, quote, had to know about his fraud. and their attitude was iyou're doing something wrong, we don't want to know about it. >>> the federal reserve says the economy is taking up steam in minutes from the fed's last meeting. officials were slightly more optimistic than in the past, but said they would not change their plans to continue buying $600 billion in bonds. >>> and china now has the world's second largest economy, surpassing japan in total size of the gross domestic product. the united states stills that world's largest economy. >>> martin feldstein has advised presidents from reagan to obama, and currently teaches at harvard. he is one of the smartest guys in the room. he joins us now to talk economics. marty, great to see you again. thanks for being with us. >> nice to be with you, ma

. >>> jpmorgan chase were at the center of bernard madoff's massive fraud and complicit in it. that's according to a lawsuit unsealed thursday. the trustee tried to claim money for madoff victims, claims bank executives kept doing business with him, despite suspecting he was running a ponzi scheme. jpmorgan calls the lawsuit meritless. >>> verizon has stopped taking iphone preorders less than 24 hours after it started. anyone who wants to buy the phone will now have to wait until wednesday to order it. "usa today's" ed baig already has one. he says the combination of the iphone with verizon's network is a big hit. >> the key differentiator is the network. verizon versus at&t. i didn't experience any dropped calls testing the iphone in northern new jersey and here in new york city. >> the cell phone wars begin. you can read ed's full review at usatoday.com. >>> some journalists in cairo threaten with death. >>> plus, the invite list for the white house super bowl party. ♪ special k protein shakes -- ♪ a truly great-tasting breakfast shake. with 10 grams of protein and 5 gram

. >> plus, bernie madoff breaks his silence from behind bars. what he says the banks really knew about his ponzi schemes. >>> every time i go to get my phone bill, there's an additional charge from usbi. >> the hidden charge crammed onto phone bills and how you can stop it coming up. two agents were shot yes >>> u.s. and mexican officials are investigating a deadly attack on u.s. immigration officials. two agents shot yesterday when they were stopped at what appeared to be a military checkpoint in northern mexico. after the agents stopped someone opened fire on them. one u.s. immigration and customs enforcement agent was killed. agents are watching over his home now in texas. the other was wounded. >>> northern australia is being hit with a cyclone two weeks after a much stronger one struck there. cyclone carlos has knocked down trees and power lines causing flooding, as well. emergency services rescued several people from cars that stalled in floodwaters. schools, airports and the government buildings were all closed. >>> bernie madoff has give

the suit was filed by a trustee working for madoff's victims. it said the mets made $300 million in false profits from his ponzi scheme. the trustee is also suing j.p. morgan-chase. court documents released thursday said the bank had multiple warnings about madoff. both the bank and the mets owners denied the allegations. those are some of the day's major stories. now, back to judy. >> woodruff: we return now to egypt, and the difficult diplomatic challenge the u.s. faces there. to examine that, we're joined by michele dunne, a former specialist on middle east affairs at the state department and on the national security council staff. she is now senior associate at the carnegie endowment for international peace and editor of the online journal, "the arab reform bulletin." marc lynch, director of the middle east studies program at george washington university. he also writes a blog about the middle east for foreignpolicy.com. and hisham melhem, washington bureau chief for al arabiya tv, an arab language satellite news channel. thank you all for b

the suit was filed by a trustee working for madoff's victims. it said the mets made $300 million in false profits from his ponzi scheme. the trustee is also suing j.p. morgan-chase. court documents released thursday said the bank had multiple warnings about madoff. both the bank and the mets owners denied the allegations. those are some of the day's major stories. now, back to judy. >> woodruff: we return now to egypt, and the difficult diplomatic challenge the u.s. faces there. to examine at, we're inedy michele dunne, a former specialist on middle east affairs at the state department and on the national security council staff. she is now senior associate at the carnegie endowment for international peace and editor of the online journal, "the arab reform bulletin." marc lynch, director of the middle east studies program at george washington university. he also writes a blog about the middle east for foreignpolicy.com. and hisham melhem, washington bureau chief for al arabiya tv, an arab language satellite news channel. thank you all for being h

. >>> bernard madoff isn't naming names but he is saying banks and hedge funds had to know about his schemes to take billions of dollars from investigators. he says the investigatement companies he -- he says investment companies he did business with did not look closely at his information. madoff is in north carolina prison. >>> checking at the numbers it looks like they will be okay on the opening. take a look at the dow, nasdaq, and s & p they all dropped. dow starts at 12, 226. borders filed for bankruptcy not a surprise. they will be closing one-third of their stores. >> wow. okay. >>> time now 5:23. she was held against her will at a warehouse and forced into prostitution. for the first time a bay area woman tells her your story. this is a story you will see only on channel 2. >>> a horrifying attack on a veteran reporter covering the historic event in egypt. >>> good morning, right now traffic is moving along okay on westbound 24. we will tell you more about this straight ahead. >>> we do have good news. the front is moving through. it will turn showery in nature. later today

. >>> disgraced financier bernie madoff is pointing fingers in his first interview since the collapse of his ponzi scheme. he tells "the new york times" many banks and hedge funds were, quote, complicit in his scheme and he says they had a willful blindness between discrepancies between his regulatory filings and other available information. he also claims his family didn't know about his ponzi scheme. >>> well, your next trip to the mall or grocery store could take a bigger bite out of the budget. changing weather patterns, floods, and droughts around the world, are affecting prices right here at home. david wright rings up the details. >> reporter: those distant calamities in the news are having an impact on prices at home. droughts in china, a heat wave in russia, near biblical floods in australia have sent wheat prices soaring, 67% over last year. here in the u.s., floods in the midwest mean corn prices have jumped, nearly 60% in a year. >> we've had extremely strange weather patterns the world over where many crops have been destroyed and we've actually seen a hit to the supply o