To fall. Interestingly, not putting much downward pressure on the stock market. Also, Commodity Futures Trading Commission head timothy mass 5 2k joins us after announcing the settlement with the banks. There are some smoking gun chat room messages you have to see on this story which has some wondering why the penalties announced were not greater. Well get into that and more with Timothy Massad coming up momentarily. Two earnings are out in an hour. Cisco and jcpenney. Well bring you the numbers that could move both stocks and overall market, second they hit the tape and the best analysis on the street that all starts right after the closing bell. At t is halting buildout of fiber optics in about 100 cities in what so far is the most apparent Chilling Effect of the president s call this week to clamp down and regulate the internet. This as reports say that the fcc chair may defy the president s call for Net Neutrality citing the agencys independence. This story is a lot of moving parts and pieces. It continues to develop. Well have the latest for you. Very important story coming up. Lets take a look at the market. Dow off 23. Been in the red most of the session today. The s ps off about 4. Nasdaq positive. Yesterday we saw the major indexes in the red until pretty much, bill, the closing bell turning positive adding a point to each one and went out out a record highs. We have an hour to go. European influence this morning a big one, as well, to the downside. Liz ann saunders with us. We have keith fitzgerald. Jack barusian. And welcome back Rick Santelli out veterans day holiday in chicago, as well. Liz ann, that catalyst, what is it do you think . What is it that the market is waiting to happen next that will move us either up or down in a meaningful way here . You cited the things behind us. You could get a few good earnings reports and maybe a prelook at Fourth Quarter earnings and earnings need to be a driver for the market and probably gotten as much valuation expansion in the near term that we will get. I would say from a policy perspecti perspective. There was hope riding on a less divided congress and whether maybe something can get done and i think Corporate Tax reform might be some of the nearer term catalysts. Will we get that or just talk again . What about keystone . Rick, if i could ask you, i dont know how closely youre following this but looks like Mary Landrieu trying to push it and maybe contributed to brent below the 80 mark. Are you chuckling . What . What . It just shows you how wonderful harry reid and the senate are. How many times could they have brought that bill to the floor . How many . For years. And when does he bring it to the floor . In the hopes of keeping Mary Landrieu in congress. I dont know. I guess im cynical. I personally dont think its what do you think the market would look like this if it passes . Wait a minute. I think many Market Participants see it for what it is. Its a pliolitical maneuver and wont address. I dont think it had to do with the activity. The feeling is that it will pass. I dont think with this congress. I think with the next one. I think they just want Mary Landrieu to have a positive vote. I dont think it will pass the senate. Jack, what do you think . Politics is about the only thing you and rick agree on. I think i have a different spin. I think its good for the market. Last weeks election was a mandate, a statement. All of a sudden you heard the president talking about a repatriation of capital overseas. Dont be surprised to see the headlines, i mean, Corporate Tax reform. A real tax policy. A real Energy Policy. All these things are very bullish. I mean, look. The next couple of years could end up being the best of all possible worlds for investors. I always thought gridlock was good, jack. Piece by piece, for the keystone in particular, i mean, what do you think is going on in the oil space. Does it have to do with that project finally getting the green light and how much of an impact will it have . Jack . Oh, im sorry. You know what . I think that its a big impact and more importantly, what youre going do see is some of these agencies that have been used as henchmen, the epa, it goes by the wayside and then get the real cap x and get back to where we should be and that is Energy Independence as a headline and as an Energy Policy. Thats something that we have missed out on. Keith fitzgerald, you have been encouraged of the earnings reports so far and rumblings to see more stock buybacks at this point. But, i mean, cant corporations think of Better Things to do with all that cash . Especially at these valuations right now. Like some cap x. Build something, buy something, get earnings on the tape somewhere. Buybacks speak to corporate mentali mentality. If they think they have a good deal, they use it for their own you weres. I think thats a positive sign. Their cost of capital is relatively low. I dont want to see them dive diverting earnings to do it. Fair point. Jack, i want to go back to something. You were saying well have an Energy Policy in this country. We have clearly done all right not having one for the last couple of years and couldnt ask for a better outcome if you had no idea who was in the white house and the policy and the congress than today. Think about it, kelly. Imagine where we would be with a congress that was actually progrowth, proenergy and, in fact, we didnt have the problems, you know, a few years back. Theres a school of thought that says that energy would be considerably less or more importantly not going up as much as it did. What we did was empowered the putins of the world taking oil over 100 a barrel. Whos we . Is we the financial industry . Because to some extent it was everybody buying the commodity argument to push it up in the first point. It was an ancillary effect of the lack of congress action. Its the belief of the oil industry, for that matter. Hidden secret. They havent said much because they like the fact that oils over 100. But the reality is its not good for the every day american. Hey, jack. Isnt it more than that, though . Jack, its not only that its some point maybe well be allowed to export energy and anybody who think this iss a bad thing study what happened opening up agriculture to exports in this country. But the bigger story is the people in power, the last six years, even longer in some cases, depending on the states, are anti anything fossil fuel. Absolutely. Theres a lot going on here. Without question. Rick, youre right on, rick. You know what . See, thats why i said what i said earlier. The epa, the nlrb, used as henchmen instead of the vanguard and the oversight of whats going on with the greatest expansion in our own backyard here in the midwest. Liz ann, if you havent figured out, you have to step in. Like a big family dinner here. You have to step up if you want to be heard. Lets ask you a schwab view of energy right now. Do you see much lower energy, oil specifically prices . You dont see much in the way of inflation down the road. Is that because you expect energy to continue lower . We think and we have had this view for a couple of years now. Super cycle ended in 2011. Super cycles dont end going into an upside v but a period of flatter trends and volatility and clearly on the downside of that in energy and probably more downside. Theres value in the stocks. The concern is that does it become a value trap . We think that the primary reason is on the supply side. Not to mention the strength in the dollar. Not really a demand story. But when you look at emerging markets in particular, that are doing a tremendous job and sort of reining in inflation pressure. The increased supply by the yooits. All of those i think conspire to keep a lid on oil prices here. Liz ann, one thing i see people considering maybe for a trade, maybe longer term is getting into the Precious Metals and gold in particular popping up and this wouldnt seem like the best opportunity for gold. Do you have a view on that . I think fundamentally, not a great environment for gold right now but come down such an extraordinary amount and because its a more tradeable vehicle right now, sentiment conditions tend to work at extremes. You have to sentiment at a pessimistic extreme probably provides a near term pop and you saw gold do well in the real tumultuous phase and if we go through phases like that again i think gold is that shortterm safe haven. Im not so sure about the longterm fundamentals behind gold, though. Thats im totally with liz on that and depends on the perspective. Shortterm trader, one thing. Nimble and in and out. Diversifier, looking for shed risk, dampen volatility, gold at any price is an important component in the portfolio. Used to be an optional component. Now i think mandatory. Rick, what do you talk about on gold . You know what . I agree long term gold should be in portfolios but im more enamored with silver at these levels. Absolutely. Good point here. You think theyre ready for a bounce . Yeah. I think silver in particular. You know, its got the best of every world. But theres so many good industrial uses and gives you an added insurance. All right. Thank you. You know what . One other thing. Jack . You want to be owning these Precious Metals in dollars or other things other than dollars. Yen . Yen, euro. You do not want to own them in dollars. Own them. Thats the point. Thanks, everybody, for being here. Great to see you this afternoon. See you later. Dows trying to turn positive. Only off about ten points. The s p slightly lower. The nasdaq holding on to a gain here. Alibaba doing well today. All right. The worlds biggest banks ponying up 4. 3 billion in fines for attempting to manipulate the Foreign Exchange market. Chairman of the cftc leading the charge in this case gives us his first interview since taking over this summer. This was a big deal for Timothy Massad. Thats in a moment here. Good ending for two window washers dang frlg the new trade center blocks from where we are. Well show you the dramatic rescue later. If you missed it, dont go anywhere. Were back in two. Ameriprise asked people a simple question in retirement, will you outlive your money . Uhhh. No, that cant happen. Thats the thing, you dont know how long it has to last. Everyone has retirement questions. So ameriprise created the exclusive. Confident retirement approach. Now you and your ameripise advisor can get the real answers you need. Well, knowing gives you confidence. Start building your confident retirement today. Today could be the day. The day we give you hope. Relief. A cure. Today, we believe every life deserves worldclass care. As one of the top four hospitals in the nation, over 100,000 people from around the world come to Cleveland Clinic for care each year. And were ready for you with a Second Opinion or a sameday appointment today today today and everyday. Call today, for an appointment today. Female narrator the mattress price wars are on the mattress price wars are on at sleep train. We challenged the manufacturers to offer even lower prices. Now its posturepedic versus beautyrest with big savings of up to 400 off. Serta icomfort and tempurpedic go headtohead with three years interestfree financing. Plus, free sameday delivery, setup, and removal of your old set. When brands compete, you save. Mattress price wars are on now at sleep train. Your ticket to a better nights sleep as youve probably heard by now, handful of biggest banks paying over 4 billion in fines on charges that they tried to manipulate the Foreign Exchange rates colluded in this regard. Kayla has the incredible story for us. Bill, an investigation spanned more than a year and a half does appear to be nearing at least some sort of an end in the first of whats expected to be many settlements regarding this issue. In all, overnight six banks paying nearly 4. 4 billion to settle claims that dozens upon dozens of traders gathered in chat rooms to game the market and benefit positions that they were holding. The majority of the action taking place during a oneminute window 4 00 p. M. And a snapshot of the market gets taken and a conversation sampled saiding, come on, fix it at 07. And then saying congratulations the each other, quote, nice job. I sold a lot up there. Because they see 5 trillion of currency change hands each day and hard to characterize the effect on any economy except to say as the ctfcs head said this morning it is profound. The settlement includes five u. S. And european banks. The occs three u. S. Banks. Jpmorgan and citigroup with the most costly payouts just above billion dollars for each of those institutions. Now, as i said, thats still more to come. Barclays for one firm elected not to sign any of todays settlements and there are still ongoing investigations by the Federal Reserve and the Justice Department that could result, bill and kelly, in criminal charges. Back the you. All right. Kayla, thank you very much for that update. More on this story, lets bring in a key player in all of this, the brand new chairman of the Commodity Futures Trading CommissionTimothy Massad joining us exclusively. Good to see you. Thank you for having me. How could i mean, the sweep, the scope of the collusion is breath taking thinking about it. The number of companies involved, traders involved. How is it possible it went on as long as it did without regulators finding out about it earlier . It is terrible it went on and particularly staggering is that some of the banks doing this while the cftc an others were looking into libor and bringing actions. There was a manipulation of the market which is then made illegal, obviously. And orders on that, yes. Failed to include other benchmarks no. I would say regulators failed to include. We started looking at these things. Takes a while to uncover this. You have to collect the evidence. Go through that. We did a painstaking investigation. But, you know, its the fact that the banks werent on top of this, supervising their own people, were allowing this to happen which is a real shame. These benchmarks are incredibly important to the economy. So many things rely on them and to have some of the largest banks in the world attempting to manipulate it is unconscionable. Details have been coming out and people raising eyebrows thinking you perhaps lowballed the whole settlement. You might have been able to get more. You should have pushled for more. The doj and fed are still working on their own investigations. What do you say to people who say, frankly, this could and should have been tougher . I cant comment on what other agencies are doing. We thought this was a very good settlement. Theyre very stiff penalties and asking the banks, requiring to baengs to take remedial measures to prevent it from happening again. And we have gotten those in place. They have agreed to do that. Thats whats extremely important. Why havent the doj and fed settled . I dont know what the status is. Whether theyre investigating. Tough talk to them. Why is it so piecemeal . How do you mean . We settled with five major banks that have been involved in this. They all settled at once. Thats quite different than what happened in libor. I think shes getting at why arent you working with the doj and the fed on this . We work with all regulators but they make their own decisions. I dont determine what they do. We were we were on top of this, looking at this for sometime. We coordinated the timing with the fta and occ. Is it a question of resources . In the sense that were very stretched in terms of our resources. We need more resources to go after more things, more bad behavior. Thats always a challenge. How much more . Well, you know, look. Theres lots of things that wed like to look at, look into. Robust enforcement is important. Spoofing, for example. We have new authority to go after spoofing where people enter orders that they really dont mean to complete. And then pull it back. To move the market. Thats a resource intensive investigation because you must look at a lot of order data and voluminous and a huge Information Technology challenge. If we had more resources, we could do more on that. Mary jo white is trying to get xaenls to admit guilt on cases like this. Now head of the scc s. That a drive of yours, as well . We are getting this neither admitting nor denying and the worstcase scenarios in some cases some of the guys colluding on this the punishment for them is their bonus is capped at 200 of their annual salary. Thats hardly a penalty for this kind of activity. Well, i guess what i would say to that is this. We have 1. 5 billion in fines to us from 5 banks. Fca almost equivalent amount. Plus remedial measures. I think its very important that we got this now so that we can remedy this market. The question of admissions of guilt, you know, sometimes we get that. Sometimes we dont. Settlements often dont get that. Thats just the nature of shouldnt you, though . If you were able to get more admissions of guilt, you know, the penalties that these Companies End up paying just im trying the aggregate is cost of business. Nobody goes to jail. Nobodys thrown out. They continue to do their we cant send people to jail. Thats up to doj. I understand. We work with them. Im trying to fix the markets, ensure integrity of the markets. Getting a settlement like this today and get the kind of changes we want, i think thats a lot more valuable than taking two or three or four more years that it might take potentially to get something stronger. You always have to make those hard choices. I think we were right in doing what we did today and try to fix this mess. By the way, this also raises the investigation has raised some further concerns about other manipulations that might have been going on. Sy versa one that came up this morning. Can you comment on that . I dont comment on anything in terms of things we might be investigating or things that we are investigating. What i will say is this. Benchmarks are extremely important. They have been an important focus for us. Look at libor. Look now that whats coming out of in ter