dauvit charney had an abrupt fall from grace this past week after the very company that he founded back in one thousand nine hundred eight decided that enough was enough and that he had to go now worried that mr charney had become a liability the american apparel board ousted him from his role as chairman and c.e.o. during his tenure at american apparel charney was known for his questionable behavior in a center personality former employees confirmed to the web site gawker which posted this video that you're seeing right now just today that it is indeed mr charney dancing around naked in front of his employees professional now for years now the forty five year old chinese salacious behavior has become the stuff of tabloid headlines and founded almost twenty years ago american apparel has pushed the boundaries of sexuality with their provocative clothing and suggestive advertising that's mentioned chinese sexually charged presence both in and out of the office oh and journeys time at american apparel has also been marked by several sexual harassment lawsuits from former employees i want

charney had an abrupt fall from grace this past week after the very company that he founded back in one thousand nine hundred eighty eight decided that enough was enough and that he had to go now worried that mr charney had become a liability the american apparel board ousted him from his role as chairman and c.e.o. during his tenure at american apparel charney was known for his questionable behavior and a centric personality former employees confirmed to the web site gawker which posted this video that you're seeing right now just today that it is indeed mr charney dancing around naked in front of his employer professional now for years now the forty five year old chinese salacious behavior has become the stuff of tabloid headlines and founded almost twenty years ago american apparel has pushed the boundaries of sexuality with their provocative clothing and suggestive advertising that's mentioned chinese sexually charged presence both in and out of the office oh and chinese time at american apparel has also been marked by several sexual harassment lawsuits from former employees i want

during his tenure at american apparel charney was known for his questionable behavior and a center of personality former employees confirmed to the web site gawker which posted this video that you're seeing right now just today that it is indeed mr charney dancing around naked in front of his employer professional now for years now the forty five year old chinese salacious behavior has become the stuff of tabloid headlines and founded almost twenty years ago american apparel has pushed the boundaries of sexuality with their provocative clothing and suggestive advertising that's mentioned chinese sexually charged presence both in and out of the office oh and chinese time at american apparel has also been marked by several sexual harassment lawsuits from former employees i want time charney was facing seven seven different sexual harassment cases from female stuff and or models now after the decision to dismiss johnnie was made american apparel's new co-chair alan meyer released the following statement of charney created american apparel but the company has grown much larger than one in

charney had an abrupt fall from grace this past week after the very company that he founded back in one thousand nine hundred eighty eight decided that enough was enough and that he had to go now worried that mr charney had become a liability the american apparel board ousted him from his role as chairman and c.e.o. during his tenure at american apparel charney was known for his questionable behavior and a centric personality former employees confirmed to the web site gawker which posted this video that you're seeing right now just today that it is indeed mr charney dancing around naked in front of his employer professional now for years now the forty five year old chinese salacious behavior has become the stuff of tabloid headlines and founded almost twenty years ago american apparel has pushed the boundaries of sexuality with their provocative clothing in. suggestive advertising that's mentioned chinese sexually charged presence both in and out of the office oh and chinese time at american apparel has also been marked by several sexual harassment lawsuits from former employees i want

nine hundred eighty eight decided that enough was enough and that he had to go now worried that mr charney had become a liability the american apparel board ousted him from his role as chairman and c.e.o. during his tenure at american apparel charney was known for his questionable behavior and a centric personality former employees confirmed to the web site gawker which posted this video that you're seeing right now just today that it is indeed mr charney dancing around naked in front of his employer professional now for years now the forty five year old chinese salacious behavior. has become the stuff of tabloid headlines and founded almost twenty years ago american apparel has pushed the boundaries of sexuality with their provocative clothing and suggestive advertising that's mentioned chinese sexually charged presence both in and out of the office oh and journeys time at american apparel has also been marked by several sexual harassment lawsuits from former employees i want time charney was facing seven seven different sexual harassment cases from female stuff and or models now after th

same inappropriate behavior like mr charney was so bottom line the board did make the right decision but with that said i do hope that american apparel continues to sell fantastic ones is which i am a huge fan of and pretty cheap yoga pants. that . the federal open market committee meeting this week did not lead to any significant changes in policy and that's kind of what we're expecting now the federal reserve will continue to taper its quantitative easing program and have made some adjustments in growth and employment projections but it's still unclear when the fed will decide to hike the federal funds rate so it seems content to just let things as they are but doug casey doug casey believe that the fed's monetary manipulations will lead to a meltdown casey is a staunch free market advocate a bestselling author and the chairman of casey research now casey recently released a documentary called meltdown america and i asked him what led to the making of this film here's what he had to say. my opinion is that. in two thousand and seven we entered a gigantic financial hurricane which c

charney's lawyer says he will, quote, fight like hell against the allegations. for his part, charney says he'll even take a lie detector test. what in the world is going on here? cnn's jason carroll is here with more and cnn business reporter alison kosick here as well. the crux of these allegations, jason, and you know this man because you've interviewed him, you interviewed him back in 2011, what's the crux of this allegation? >> basically this time around, the company isn't saying specifically what's going on. the last time back in 2011 you remember he was sued by five former employees who basically said charney sexually harassed them, one of them a former model who says he coerced her into taking provocative pictures at his home. dov charney told me he denied those allegations, saying these women were coerced into saying these things and they were out for money. first listen to what he told me back in 2011. >> the way i feel about this situation is, there's something disingenuous about the claims. first of all, they're fake. second of all, these claimants ar

others reported charney had company meetings and interviews in his underwear. his firing comes as american apparel stocks continue to fall. >>> in san francisco, filming has begun for the upcoming netflix television series. during yesterday's first day of filming, motorcycles raced back and forth through city streets. the science fiction show, created by the same writers as "the matrix" is about eight people from all over the world who have psychic powers that allow them to communicate with each other. over the next three weeks, crews will film in various locations throughout the city. you're looking right now at one of netflix's other hit shows, "house of cards." netflix has been on a roll with all sorts of proprietary shows coming out in recent months. >> there have been some good ones to binge watch. >>> a major cosmetics companies helping you try on its makeup without ever even entering the store. they've released its app on the ipad. it will scan your face and put the products on your image so you can feel what you look like with maybe some different cosme

it's now a 70-cent stock. >> right. >> so, all the other stuff around dov charney, his crazy antics, right? he's driven the company's stock into the ground. >> right. >> that alone. >> so, why fire him for the things that they're talking about? why not just fire him because the performance at the company has been horrendous for the last three years? >> that's what i'm saying, the board is foolish for not saying, hey, the stock stinks -- >> not working. >> this was his job and thank you and take care. >> courtney? >> i agree, and they probably should have let him go for a variety of reasons earlier than he did, but he holds 27% of the company. that does make it a little bit hard. it's hard for an entire board to stand up against the person who founded company, but the company is a shell of what it was at one point. >> what happens here to the company? >> there's a big fight and i think it's hard to own a stock of the company where the board's in a huge fight with the founder. i think the same about lulu. it's been a great company up until now. it's had issues for the last year and a h

he is not necessarily prepared to support charney. he'd said he does not have all of the facts behind the ouster. timeey could have a tough in this fight against the board. he says that he might sue the board, that his ouster was not proper. there are still a lot of steps to be taken. >> do we know more about what happened? >> we talked on friday about charney's controversial history of various lawsuits, all of which have been dismissed or settled, most filling with sexual harassment of some kind. -- dealing with sexual harassment of some kind. it sounds like there was some investigation into his conduct on the part of charney having to do more refinancing. western misappropriation of funds? did he let family members use company paid hotel members -- rooms inappropriately? and there is the question of retaliation. he may have retaliated against one of the women who have sued him by allowing a subordinate or he directly allowing pictures of this woman to be released as a form of retaliation. it seems that that may be the crux of the is

charney has 30 days before his termination becomes final. for "cbs this morning," ben tracy, los angeles. pcharney but he declined any o further comment on this story. >>> an olympic swimmer is spark nug fan this morning. she spoke in public wednesday for the first time since that crash. the six-time gold medalist says she remembers very little except when the doctor told her to prepare for the worst. >> it was one of those things when i looked aet my husband and basically said, i love you, good-bye, and to do that and to be here now and to be with him is the most amazing thing, so, yes, this injury sucks and, yes, things hurt, but i'm alive and i'm so thankful to be alive. >> oh. she says she plans to paint her wheelchair purple because she wants to rock it out. you feel for her, don't you. because she had said to her husband, listen, go on with your life, date over people. that was hard to say but then to survive and say i'm alive and i'm here. >> she's a great olympian and her colleagues and friends say she has a tough mental spirit. >> i

american apparel known for provocative photos and ads, some taken by charney himself. charges include wrongly using company funds and leaking nude photos of a former employee that was suing him. american apparel has lost nearly $270 million in the last four years. for more on this, charles payne. we know you are an expert in business, not in the antics of dov charney. >> i've watched these antics though for years. this is not a new story. think that's why it's news. because why did it take so long? why did it have to come to this? you realize last week when they finally made the announcement the stock was up 22% in one day to 78 cents. in 2007 this was almost a $15 stock. it was the hottest name in retail. this guy ran it like a fivdom. it is a shame some of the things alleged against him and that it took this much before the board finally took action. >> so many people watching right now, whether it is their kids or grandkids, they own american apparel stuff. it is, and was, so popular. so how does this work in the inner workings that somebody who that is this many se

charney has 30 days before his termination becomes final. for "cbs this morning," ben tracy, los angeles. >>> we reached out directly to pcharney but he declined any further comment on this story. >>> an olympic swimmer is spark nug fan this morning. she spoke in public wednesday for the first time since that crash. the six-time gold medalist says she remembers very little except when the doctor told her to prepare for the worst. >> it was one of those things when i looked aet my husband and basically said i love you, good-bye, and to do that and to be here now and to be with him is the most amazing thing, so yes, this injury sucks and, yes, things hurt, but i'm alive and i'm so thankful to be alive. >> oh. she says she plans to paint her wheelchair purple because she wants to rock it out. you feel for her, don't you. because she had said to her husband, listen, go on with your life, date over people. that was hard to say but then to survive and say i'm alive and i'm here. >> she's a great olympian and her colleagues and friends say she has

board members voted to oust charney pending a 30 day review. in a statement, the board said his firing is part of an ongoing investigation into alleged misconduct. charney has been the subject of several lawsuits alleging inappropriate sexual conduct with female employees. charney's admitted to having sexual relationships with workers. but says they were consensual. executive vice president and c- f-o john luttrell has been named interim c-e-o. does zoan are at the wheel to prove beyond reasonable doubt that my client did anything appear it pass. they have no evidence of contraries of the stalling is really appreciated. >>: it's been really hard and started to get a little bit better but my anxiety when i think about it is been hard for my kids they miss out a lot of stuff. a result of the truth, so we'll go back sh. bring home roy! they are hoping to fuind him safe . heat shields are compromised. we have multiple failures. what's that alarm? fuel cell two is down. i'm going to have to guide her in manually. this is very exciting. but i'm at my

doug charney was fired. if he fights as some have suggested he might do we are prepared. this is 2012. they would not characterize the type of problem here. whether it had anything to do with the lawsuits, but mayer did tell me it had nothing to do with the company's performance. charney called the allegations baseless and said at that time the company was turning around. >> if he had asked me we are not going to bankrupt. being somewhat different. i cherish that characteristic and many people that work for me and i think that we need people that act differently in society or we are going to be in big trouble. i'm a thinker and i'm proud of that. his dismissal could trigger a defutd defau default. the company believes he could avoid lion capitol. as for the possibility of chapter 11, it is so remote i would not consider it a possibility. mayor said it was a very difficult decision. it was a long meeting. and his commitment was difficult to the company but he had to go. ♪ my americana p apparel under wear ♪ >> i listen to good music. >> it is called she looks so perfec

american apparel is asking lenders to waive a default that would be triggered by charney's departure. pitched thehaw second no-hitter of the baseball season. josh beckettmate who tossed a no-hitter on may 25 against philadelphia. the 15 strikeouts are the most by any left-hander in baseball history in a no-hitter. that is a look at the top stories we are following this hour. >> we are going to continue with our political roundtable in washington. douglas holtz-eakin, white house onrespondent phil mattingly capitol hill where the house election is taking place, and on the phone from miami, chief political strategist at atomic research, spent many years analyzing the impact that washington policy has on investors. phil, outline for us what the election sequencing is like and how long it is likely to take and what the twists and turns are as best we can predict them. >> we will start with what we already know is about to happen. kevin mccarthy is in the room right out voting for him versus raul labrador as majority leader. once that occurs, then the vote moves into who will face kevin mc

through his lawyer, charney calls the charges baseless. he owns a 27% stake in american apparel and reports say he has no plans to sell it. both of these founders are holding on tight and not going down without a fight. back to you. >> thanks so much, courtney. >>> now, staying in the sector, the website of online fashion retailer asos is back up and running, this after a fire at one of its warehouses forced it to suspend operations over the weekend. in a statement, asos said initial estimates show that about 20% of its total stock had been compromised in the fire. however, the firm assures it is fully insured for the loss and that none of the technology or structure of the building has been affected by the fire. the stock has had losses after opening nearly 3% lower, but as you can see, it's been a pretty tough three months after that profit warning, down just shy of 50% in the last three months. >>> concerns about inflated home prices in canada haven't abated. the country's central bank says the probability of a sharp correction in house

dov charney is not going away quietly. the american apparel founder and former ceo is fighting his termination. the board fired him after years of sexual harassment allegations along with accusations of misusing funds. let's look at how american apparel is dealing with this crisis. pr expert joining us, he has advised some of the world's highest profile campaigns, including the financial crisis and the gulf oil spill. let's break it down for a moment. we have known that dov is a bit of a -- >> not even going there. >> unusual, unorthodox. no appropriate words come to my mind. does he need, does that matter? do american apparel customers care that the ceo is naked dancing on the internet? >> i don't think they did care at one point, about 10 or 12 years ago, it was cool. now it is not cool. how has the market in responding? you have a number of things happening. you have the ceo behaving badly. of the last 17 quarters that have not been profitable. you have to find your new market position, how do we compete with other comp

. >>> new details about the firing of american apparel ceo dov charney, termination letter published by buzzfeed. it acups charney of refusing to take part in sexual harassment training, making deing torogatory remarks to employees and the board says it has had trouble attracting investors because of that man's bad behavior. for a quick look at markets, turn to courtney reagan, live at cnbc world headquarters. good morning courtney. >> good morning, scott. futures are higher after stocks lost steam tuesday, closing at lows of the session partly on concerns again about the crisis in iraq. dow had its biggest point drop in more than a month. data today on demand for big ticket durable goods and a final look at first quarter gdp. economy expected to have contracted more than previously thought. but it is largely chalked up to the impact of severe winter weather which is past us. dow falling 119 points. the nasdaq also down 18 to 4350. >> thank you much. >>> 5:17. >> congress looking for your take on driverless cars. at 11:00 this morning members of congress will hold a live facebook cha

again, dov charney, now ousted, looking to obtain 10% of stake in the company he founded. he already has a 27 % stake. if the deal happens, that gives him over a third of all outstanding shares. interesting headlines from american apparel. over to you. >> always interesting to follow. dom, thanks. let's get to the tweets there. we love answering them. fear trader says looking to sell the july z irgsillow, i don't s going down. what do you say? >> the stock seems to be moving at a 45 degree angle. the options are relatively expensive as well, sell the 125s for two bucks. that's nice. what's not nice, though, the stock traded just about 120 or lower earlier this month. this is a stock. so just prepare yourself. this is a stock that can really move. these are the types of trades i like. you might want to consider a put spread. >> what was the quote on the stock? unstoppable? >> we notice this in april and may with the peers getting slayed. it was fantastic. >> you stand by that? >> yes. >> final call from the options pits, dan? >> thank you. i think there's a tough outlook he

>> tell you, jane, whether it's mcafee or charney -- >> who says business news is boring? these people are amazing, interesting, complex individuals. >> jane wells, thanks for bringing us that. interesting story over at american apparel. >>> 9-othe president will deliva statement at the white house. when that happens we'll bring it to you live. >>> over to kayla tausche, a look what's coming up next on "squawk alley." >> t-mobile john ledger breaking down another wall for customers. will it move the needle? we'll discuss that, and blackberry ceo, close to breaking even. don't call it a comeback yet. >>> finally what did the public think of amazon in 195? nearly 20 years ago? throwback thursday. back in time, up next on "squawk alley." ♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. hurry, before this opportunity cools off. ♪ means keeping seven billion ctransactions flowing.g, and when weather hits, it's data mayhem.

again, dov charney, founder of american apparel now ousted, looking to obtain 10% of stake in the company he founded. he already has a 27 % stake. if the deal happens, that gives him over a third of all outstanding shares. interesting headlines from american apparel. back over to you. >> always interesting to follow. dom, thanks. let's get to the tweets there. we love answering them. fear trader asks, looking to sell the july zillow, i don't see it going down. mike, what do you say? >> the stock seems to be moving at a 45 degree angle. that's helpful. the options are relatively expensive as well, sell the 125s for two bucks. that's nice. what's not nice, though, is the fact that this stock traded just about 120 or lower earlier this month. this is a stock. so just prepare yourself. this is a stock that can really move. these are the types of trades i like. you might want to consider a put spread. >> what was the quote on the stock? an unstoppable stock? a stock of steel? >> we notice this in april and may with the peers getting slayed. it was fantastic. >> you stand by that? >> yes. >> fi

doug charney how to an abrupt fall from grace this past week after the very company that he founded back in one thousand nine hundred eighty eight decided that enough was enough.

apparently there was an investigation into misconduct, possibly sexual, on the part of charney by the part of the company. whatever it revealed let american apparel to move and it moved relatively quickly because over andill be taking he has much more of a traditional sort of retail background. he was with old navy. he is a much different figure then charney who is a native of montrÉal and ended up dropping out of college and is a self-starter and someone with a very colorful history. >> he is very outspoken. he is an outspoken ceo. i remember in 2005, the infamous profile of him where he fondled himself in front of the reporter and she described it where he was very open about having sexual relationships with employees and did not see anything wrong with that. if you see the ads for american apparel, many times they are scantily clad and they have this 1970's pornography divide. e.vib he takes many of those photos and casts of photos himself and he has modeled in some of these ads for american apparel. history.tely has his there have been other instances where employees have filed h

. ♪ charney is out as the chief executive of american apparel. the question isn't why he is ousted but why it took so long. lindsey rupp has the details. he is the founder of the company with a colorful and controversial record. what finally pushed the board to oust him? >> that is the big question. the new chair says that it wasn't because of the company performance. it was purely a misconduct issue. some people in the industry, his coworkers think he is a been a , others think he is a loose cannon that never should have led a public company. >> looks -- let's talk about american apparel three what makes it distinctive other than its products are made in the united states in los angeles? >> one of the problems are lack of diphtheria she asian. it is struggling right now. it is a hard time to be a teen retailer. american apparel has to go. >> the margins have to be thin as well. >> they are struggling on that front. >> what about the controversy of advertising and the various comments that he has made public over the last couple of years. >> he h

. ♪ >> dov charney is out as the chief executive of american apparel. the question isn't why he is ousted but why it took so long. lindsey rupp has the details. he is the founder of the company with a colorful and controversial record. what finally pushed the board to oust him? >> that is the big question. the new chair says that it wasn't because of the company performance. it was purely a misconduct issue. some people in the industry, his coworkers think he is a been a visionary, others think he is a loose cannon that never should have led a public company. >> let's talk about american apparel three what makes it distinctive other than its products are made in the united states in los angeles? >> one of the problems are lack of differentiation. it is struggling right now. it is a hard time to be a teen retailer. american apparel has to go. >> the margins have to be thin as well. >> they are struggling on that front. >> what about the controversy of advertising and the various comments that he has made public over the last couple of years. >> he has be

charney has been making headlines for alleged bad behavior for years. we sat down with american apparel board member to see what took so long to fire him. >> we heard the stories, we read the newspapers. we knew about the allegations. as a board, we can't operate on the basis of rumors and allegations. we had suspicions, but not very good reason until a few months ago. >> you can see more at cnnmoney.com. >>> happening now, record rain. major flooding, dangerous winds and it is not over, yet. indra petersons is tracking the storms, coming up after the break. like, the one the bank sees? [ male voice ] sheesh, i feel like i'm being interrogated over here. [ male voice ] she's onto us. dump her. [ pay phone rings ] hello? oh, man. that never gets old. no, it does not. [ female announcer ] not all credit report sites are equal. experian.com members get personalized help and a real credit report. join now at experian.com with enrollment in experian credit tracker. join now at experian.com ♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off t

but the allegations that i acted improperly at any time are completely fiction. >> charney remains the largest shareholder. mayer said while yesterday's meeting to fire him was very long, but it was not a melodramatic meeting. "he did not want to do anything to harm the company." he said if ch hadarney, fights we are prepared. >> just another twist in the saga. thank you, jane. >>> it is your last chance to tell us what you think the app that calls you out with an audio "yo" to your phone. is it the next great social media idea or the definitive size of a bubble. your best tweets when we come back. and i loved every minute of it. but then you grow up and there's no going back. but it's okay, it's just a new kind of adventure. and really, who wants to look backwards when you can look forward? you are gonna need a wingman. and with my cash back, you are money. forget him. my airline miles will take your game worldwide. what i'm really looking for is -- i got two words for you -- re-wards. ♪ there's got to be better cards than this. [ male announcer ] there's a better way with creditcar

. >>> and clothing maker american apparel is kicking out its scandal-plagued ceo doug charney. the board voted to remove him because of alleged misconduct. no details were given as to what that includes. >>> former army colleagues bowe bergdahl had their say on capitol hill at a hearing. they slammed the former p.o.w. and the prisoner exchange that brought him home. his ex-roommate blamed bergdahl for his own capture saying if the soldier had not deserted, he would never have been taken but in texas, bergdahl is staying quiet for now. as far as we know, he hasn't asked to see or speak with his parents. ed latvandera is follow the story. i found that so interesting but a lot of the psychologists said that is a dramatic step. it can take a long time for someone in bowe bergdahl's situation to be ready for that. >> it is fascinating. we've been talking to the medical psychologists that are a part of this team helping out in the reintegration process with bowe bergdahl. they say family is integral to the reintegration process that they're very much needed but at the same time the i

the bored says the decision to remove dov charney stems from alleged misconduct. he has been at the center of numerous sexual harassment lawsuits. >>> two gay fathers are fighting the state of texas because it is refusing to acknowledge them as dads. jason hannah and joe rigs have twin newborn baby boys. each dad biologically fathered the twins. a judge denied their petition to put their names on their children's birth certificates. the judge also denied to cross-adopt each other's boys. they're afraid if something happens to one father, the other won't be able to keep the husband's biological child. joining me now is one of those dads, jason hannah and gabriel plow, executive director of the family council. thank you for your time. >> thank you. >> take me through the process, i know you and joe decide that you want -- i'm so sorry. jason, you and joe decide you want to have a child together, you want to father two beautiful babies. you get your dream. did it ever cross your mind during those nine months of waiting to meet your own children that you would be in t

. >> some ways we should have started with the bar really low with charney. what he did was so outrage just. melissa: we'll get to that in a second. >> what is the worst thing this guy said? if we're holding him accountable. melissa: the pants were see-through because they were rubbing together. instead of blame being product, bruce, i will get your take, you know what, not everybody belongs in these pants. >> i is right. melissa: is that good or bad marketing, bruce. >> this is terrible. if he was selling something else, fine. we heard people say stupid things. most consumers don't care about the ceo. when you sell products to women and ceo is clearly misogynistic with the comments. >> come on. >> that is just stupid. >> miss songy nist? i can think of 40,000 more misogynists. melissa: they're not trying to sell women's pants. >> maybe you know the guy. the journal reporter might know him. i don't know know him. you don't know him. he might be a complete deviant pervert. however, that is, that statement itself -- >> not only that. >> there are certain men wh

the casual clothing retailer says that allegations of misconduct by dov charney -- american apparel has been learning mone -- losing money and the ceo's dismissal may trigger the fault. >> what does american apparel do? >> it sells 1970's, 1980's cotton shirts, the throwback look. >> it is like a rainbow of t-shirts. you can get the same t-shirt in one of seven different colors. -- 27 different colors. >> chimeric dollars. -- primary colors. >they are known for their racy advertisements. >> really? >> leggings -- >> leggings? lululemon? i don't think so. to nouriident biden al-maliki, attacking an oil refinery and -- an attack on an oil refinery and civil war beckons. ofte an image yesterday congress and congressional leadership with the president in the oval office. is there any consensus in washington on an action plan on iraq? >> there really isn't, tom. what you know from the white house now, they have been fairly public with the fact that they are not ready to take specific actions. the big problem right now i'm if there is one thing everybody can agree on, it is that prime ministe

the firm's largest outside investor says he expects journey -- mark his firing and charney to fight his firing and that could be a prelude to a sale. i don't think we have heard the i really down. >> he is not the kind of guy to go gently into the night. >> coming up, what do investors know that we don't? we will see why the money is pouring in. ♪ >> live from bloomberg headquarters in new york, this is market makers and stephanie ruhle. >> good morning once again. i am erik schatzker. >> and i am alix steel in for stephanie ruhle. she is missing a really fun show today. >> she is indeed. we are going to talk about hedge funds. returns a relapse for years, not so great, even if you don't to the s&p 500. our friend is here. he is a former hedge fund manager, now a professor at columbia's business school. also with us is the founder of a global consultant for the hedge fund industry. gentlemen, welcome. of theet something out way. hedge funds are not supposed to outperform the s&p 500. people make that comparison anyway. are they trying to outperform? >> the most recent study done, the

the euro has been on the defensive, as well, as has the pound since charney didn't really give the sterling bulls what they wanted at the testimony yesterday. all right. now, a few corporate stories we are keeping an eye on this morning. portugal's second lifted bank after a lender announced a capital high. the stock initially dropped by as much as 8% after announcing a capital increase of up to 2.25 billion shares have bounced back.. another volatile trading session for another european lender, this time, bmps, has been down by more than 20% in today's trade, less than two weeks after the bank's problematic issue. and we are talking about this one in the headlines. gdf suez down almost 3%. the french government sold a stake in the energy group. they made 1.5 billion in the sale in order to help fight the alstom acquisition. it now owns 33.6% of gdf sue easy. aker solution revealing total has canceled a $250 million contract. the stock down heavily by more than 6%. let's take a look at the credit markets, especially the u.s. ten-year. yielding just under 2.6%. remember, the theme was very c

it says that it will talk with its lenders, and a regulatory filing in april said that charney has been caught up in several legal cases asserting claims of sexual harassment, assault and battery. first the nation through the internet defamation and other related claims. >> that was a boring story. you obviously know a lot more about -- what's the real story here? >> there have been allegations for years. >> yes. >> that he has been involved with employees. >> okay. >> that he has taken pictures. he's invited people to his home. i'm not saying -- >> "the post" has been running -- >> there have been allegations for a very long time. >> you're still dancing around. all bosses have involvement in some way with employees. you're talking about some -- >> some other type of involvement. >> and they took pictures of us here all the time. be more specific. >> you've seen the ads for american apparel. they're very suggestive, could i just suggest. >> suggest of? >> s-e-x. >> s-e-x. >> the new tesla car models, aren't they? >> year. >> all right. we've got to go. we'll talk to larry more when we

now that major story of american apparel, the troersial founder and ceo don charney ousted for cause. it's the strangest ceo i've called. he's called himself strange. he said "i should be locked up, i am my own worst enemy." he has the sex-infused advertising around the company that bothered parents. he's had multiple accusations of sexual harassment. in one claim against him it said he conducts his meetings in his underwear, interviews in his underwear, numerous relationships with people who work for him. >> is there a rule against it? is that wrong? >> we've asked to you stop before. >> and chris, under threat of legal action has stopped. >> i'm mocked because i can't believe this company waited so long. >> they've backed him up many times but this time the board says -- >> the last straw. >> some people are saying last straw might be the fact the company is falling apart. the stock $15 a share. the board is backing the $15 a share and $1 a share, losing too much money. it has a lot of work to sur vuf and one of the board members saying it's time for him to go. >> i was in the loss