Market Nosedives; Corzine's Firm Fails; Immigration Status
BURNETT: Two hundred-seventy, that is the millions of dollars that Yahoo! is paying to buy Interclick. The company they are hoping will help them, well, do better with ads. Yahoo! investing in advertising, it's a huge business. They have had a lot of problems at that company; $76.6 billion is how many dollars will be spent on interactive marketing in 2016. That is more than double what is being spent this year. And that's just on what you do online. OK, well, that may be good news for advertisers. But it has been bad news for a lot of people today. It was a terrible day on Wall Street. The markets nosedive affecting the half or more percent of American homes who own stocks. The Dow down nearly 300 points, S&P; and Nasdaq down about three percent. Now if you look at the two-day Dow total it's even worse close to 600 points lower in the past 48 hours. And that's on top of the best October since the early '90s, why? Greece, that is who is to blame. The world economy is held hostage by Greece and Greece is going back and forth and back and forth over a bailout deal and it's done and then it's not done and now they're going to vote on it and it's a disaster. And judging by tomorrow's headlines in Europe it is a disaster. The "Daily Mail", "Greece in Meltdown", "The Guardian", "Germany and France Battle to Save the Euro". Peter Costa is a New York Stock Exchange floor trader. Peter, you were there today.</s>PETER COSTA, MANAGING DIRECTOR, EMPIRE EXECUTIONS: Yes.</s>BURNETT: Never thought you'd be held hostage by --</s>COSTA: Yes, me, right --</s>BURNETT: -- Greek prime minister said he's going to have a vote or not have a vote and every half an hour you go through a roller coaster.</s>COSTA: But you know it's strange, Erin, because you have these people, this country is sinking in quick sand. Two countries, major countries are throwing them life savers, including you know, people are trying to get them out of this hole that they are in and they refuse to take that help. You know, they can't do it on their own. And I think that's where this contagion just, you know, spreads from that point. They can't get out of it. They are being offered a lifeline and they refuse to take it. So you know yesterday they were taking it. This morning they're not taking it. This is a real whipsaw market because of that.</s>BURNETT: All right. Well Peter Costa, thank you very much. We're going to keep following this with Peter because it is a whipsaw for all of America's portfolios. And another part of the problem for markets tonight is something that happened to a financial institution. The FBI investigating failed financial firm MF Global after the company said it couldn't account for $600 million of its customers' money. Now MF Global would maybe be a small headline, but for this man. If he's not familiar to you, he may be when I remind you who he was. Jon Corzine, former New York -- New Jersey governor and former Goldman Sachs CEO. And there is Jon Corzine. Leigh Gallagher is assistant managing editor for "Fortune" magazine. William Cohan is author of "Money & Power: How Goldman Sachs Came to Rule the World". Jon Corzine, this is a spectacular blemish on a man who ran Goldman Sachs, got out at the right time. Governor, senator --</s>WILLIAM COHAN, AUTHOR, "MONEY & POWER": Not voluntarily.</s>BURNETT: Right. Well, that's true.</s>COHAN: Right.</s>BURNETT: And so what can you tell us about this fall?</s>COHAN: It's a spectacular fall from grace. And if he were involved in the disappearance of this money or the using of the customer funds to shore up, you know, MF as it was falling apart, that would be a very, very serious situation. As it is, this was meant to be, Erin, a redemption for Jon Corzine --</s>BURNETT: Right.</s>COHAN: -- back on Wall Street. Back with the land of the giants of Wall Street after he got booted out of Goldman Sachs in 1999 and he's been absent from Wall Street all that time. He comes back to MF. This is supposed to be his chance to make a big mark again, and look what happened. It did not happen because he did not learn the lessons of 2008, unfortunately.</s>BURNETT: And Leigh, Jon Corzine though is still an incredibly wealthy man. I mean I know you've run the numbers, but when he left Goldman Sachs he was worth $400 million and he is still worth a couple hundred million.</s>LEIGH GALLAGHER, FORTUNE MAGAZINE: Yes, he's worth whatever -- less whatever he spent to run for governor a couple of times. But -- and his wealth in MF Global was almost nothing compared to that, even though it was generous.</s>BURNETT: Right.</s>GALLAGHER: But this is really significant. In addition to the reasons Bill said, this was if he, in fact, did take this money to cover up the firm's trades, which were risky bets, proprietary trading. He tried to turn MF Global into a proprietary trading firm. If he used clients' money to do that, that -- he may be the one person that ends up being criminally prosecuted out of the whole financial crisis. We haven't seen that yet --</s>BURNETT: Yes.</s>GALLAGHER: -- it hasn't been possible.</s>UNIDENTIFIED FEMALE: Being greedy --</s>UNIDENTIFIED FEMALE: Goes to jail --</s>GALLAGHER: Well I'm just suggesting. I mean --</s>BURNETT: Yes, exactly --</s>UNIDENTIFIED FEMALE: No one has yet.</s>COHAN: We're a long way from that because you know --</s>BURNETT: Right. Well we are --</s>UNIDENTIFIED FEMALE: We don't know whether he knew --</s>GALLAGHER: This is supposition. But here's the thing. Up until now, I mean being greedy is not illegal. Going after easy money is not illegal. That's why no one has been successfully prosecuted.</s>BURNETT: Right.</s>GALLAGHER: But these allegations that he might have used money to cover trades, that's a big deal even for a small firm as Bill said.</s>GALLAGHER: So --</s>BURNETT: And quickly, Bill, this raises the question more broadly. We've had all this financial reform and now here we go again.</s>BURNETT: Unbelievable.</s>COHAN: Well I mean as I said, no -- I mean we have these laws, Dodd/Frank. We have a Volcker rule that's supposed to be implemented. But in fact, no one has apparently learned anything. For Jon Corzine not to have learned the critical lesson of 2008 --</s>GALLAGHER: But he wasn't there. It's almost like he didn't have a seat at the table in 2008 so now he's reliving it.</s>BURNETT: Our rules are not yet sufficient it appears.</s>BURNETT: All right, well Leigh, Bill, thanks to both of you. We appreciate it. Well in a letter today, the U.S. Department of Justice asked Alabama school districts to prove they are following the law when it comes to giving children equal access, regardless of immigration. Nick Valencia is following the story for us. Nick, of course this was -- comes on the back of the heels of basically schools being asked to verify whether children were legal or illegal. What information is the DOJ asking the state for?</s>NICK VALENCIA, CNN ASSIGNMENT EDITOR: That's right, Erin. This is just the latest clash between the federal government and states that have designed laws to step up enforcement against illegal immigration. On Tuesday, Civil Rights Division for the Department of Justice issuing a letter to the state of Alabama school districts asking them to prove that they are not denying access for public education to students that have an immigrant status. Among the things they are asking for in this letter is a list of students by ethnicity, by racial breakdown. Also they want to know how many students have officially withdrawn from the Alabama school district. And one last thing, Erin, they are asking for is a list of all students that have enrolled or are part of English language training programs -- Erin.</s>BURNETT: And they're going to -- that's what they are going to give in those numbers tomorrow? That's your expectation? We'll get all of that?</s>VALENCIA: Well tomorrow there's a list coming out from the Alabama State Department of Education. It's very different from what the DOJ is asking the school districts to comply.</s>BURNETT: OK.</s>VALENCIA: I want to make this clear. The letter from the DOJ was sent specifically to the school districts, not to the Department of Education, which is very peculiar. We were on the phone earlier today with the spokesman for the State Department of Education, Michael Sibley (ph). He's saying tomorrow the numbers that are going to come out essentially do comply with what DOJ is asking for without really being asked --</s>BURNETT: Right.</s>VALENCIA: What they're saying is that they're going to release numbers, average daily membership numbers. Now these lists may not really give a good look at what the DOJ is asking for. Because as they mentioned the State Department of Education mentions that students of immigrant parents often don't officially withdraw from schools, Erin.</s>BURNETT: Right.</s>VALENCIA: They're often just -- they leave without going through that official process. What Michael Sibley with the State Department did say, however is that we've had one rule and one rule only since the beginning of this debate. We will comply with the law. Students of all kinds are welcome in Alabama schools. No matter what their ethnicity, no matter what their ethnicity is.</s>BURNETT: All right, well Nick thank you very much. All eyes around the country are on this obviously having big implications on employment, especially in the agricultural sector in Alabama too. Well there's been more legal trouble for Casey Anthony. A woman claims that Anthony defamed her during her trial. We're going to take you there and then that emergency landing in Poland, a flight that originated in Newark. Captain Sullenberger is here for his take on the latest miracle landing. Look at the video -- you'll see it was. And we're introducing a new segment tonight. You will not want to miss "The Camel Report".