shaka, cybersecurity, that's absolutely one of the new security challenges on which we need to focus much, much more in the coming years. we are in the process in nato's strengthening cyberdefense. first step has been to strengthen the defense of our roommate on knotwork and we need that because i'm a regular basis, we are attacked, which shouldn't be a surprise. so far we've been very successful in defending our systems. so that is the first step. next of course we will also have to consider whether and if so how we can develop a capacity that can come to the health of individual allies that are subject to attacks. some allies may have the deed to defend themselves against attacks or other allies would appreciate it shall have been nato capability and a rapid reaction team that can assist upon request if needed. so these are some of the elements in the work that is being prepared and not these cybersecurity is also an issue on which we need the strong cooperation with partners across the globe because cybersecurity is a cross-border issue and should be dealt with also in partnership

a a few moments senators examined efforts by the federal government and private industry to enhance cybersecurity. al capone, the gangster's main business was to supply a legal alcohol became an important cultural figure in the 1920s. they were very violent of course. gangs that organize with other gangs and other gangsters and the blood ran in the streets of chicago, detroit, new york philadelphiaand philadelphia pittsburgh and other major cities across the east and the midwest. by 1925 when he is only 26 years old he gets into the business that generated $60 million annually which is equivalent to about 400 or $500 million today. his payroll included 1000 gunmen who killed at least 250 competitors of his in chicago and he was a complicated fellow. a family man several children faithful to his wife, at least that is what people heard and believed. he hosted annual block parties where he lived in chicago. he was the consumer. he wore it 11-carat diamond rings. he liked to buy and consume rich wine and excellent food not just excellent italian food but french food as well. and also seemed like a g

but today the cybersecurity attacks there are human targets. we at show that in the apt one report in the that the pla recruiting english-speaking people so they can send the e-mails. .. it's just an imbalance in the expertise required. another reason there's simply no repercussions to hack into u.s. infrastructure and certain safe harbors for safe havens such as china, russia, north korea, iran. these are countries that can have our resources with impunity in repercussions. we also have a lack of resources than i could go on. in short, technology vastly outpaces our ability and willingness to secure it. so what are companies doing about it? essentially have noticed two things. they are doing some actually talking to knowledge in hiring the expertise to defend. senator come you mentioned willing to oppose china. in my experience, most of the private sector take us seriously when it had a preacher in china to do everything on the technical front to bolster safeguards and if you're not willing this is a public nation is to it happens based on the

because cybersecurity is a cross-border issue and should be dealt with in, also in partnerships with like-minded countries. now, you asked me about syria. why is it that nato doesn't have any intention to intervene militarily in syria? and, actually, very often i get that question because people refer to the very successful nato operation in libya, and then they ask me why couldn't you do the same in syria? but i have to say there is a very clear difference between libya and syria. in libya we operated on the basis of a clear united nations mandate to protect the civilian population against attack. and we got active support from countries in the region. none of these conditions are fulfilled in syria. syria is a much more complex society, and i do believe that an external military intervention might have unpredictable regional repercussions. this is the reason why i do believe that the right way forward is a political solution. having said that, i fully share your frustration. it's absolutely outrageous what we're witnessing in syria. and this is the reason why it is, indeed, a matte

. >> host: up let's talk about her up there to cybersecurity hearings before congress. can you talk about the takeaways from their? are you happy with the president's executive order focusing on critical infrastructure? >> guest: it is better than where he started a year or so ago. you know, i think he came a long way. i will tell you, tony, this is the biggest thing that america faces, cybersecurity attacks. we heard that across the panel. i think they all agree that this is a very serious problem for the country. that is where i think mike rogers has done a perfect job as being a member of her subcommittee. he is her intelligent. i asked about the supply chain vulnerability workgroup. there were several over the years to bring members together and dive deep on these issues. mobility is a big issue for america and our security. i think that they will develop a lot of good information for the subcommittee on us. going forward, i think that it is a matter of trying to figure out how do you determine whether it is a vulnerability, perhaps with a specific piece of equipmen

cybersecurity is a growing concern here in washington. just this afternoon, senator chuck schumer wrote federal regulators as they consider softbank's bid for sprint, which softbank which proposes acquire sprint as well as its spectrum is a japanese company with alleged ties to china, the country currently the leading source of cyber breeches. this after a new report suggest that is the government considered allowing private companies to hack back at hackers if other steps fail to reduce intellectual property theft. opponents say allowing companies to hakobyanners allows them to fun restrained internet attacks. they say the private sector ssould focus on defense, and government play offense. as upcoming cybersecurity special, we spoke with former cia director michael hayden. he says the u.s. is putting hacker countries on notice. >> we'll respond to the effect based on effects of the attack, not the means of the attack. that is pretty stark statement, all right? if you cause great physical harm and destruction by taking down critical netw

plans, then that would help hackers defeat your cybersecurity plans in some way. sorry about the motorcycle here. we had, was that motorcycle week we have in washington? this was this weekend though. so there's still -- david: some of the hogs sounded like a little putt putt or whether it was lawnmower or motorcycle. thanks very much, rich. >> you got it. liz: a little disappointing economic data hitting markets today. i don't know if you if we're heading for a slow down but jeff cleveland weighs in. david: he is the best. the national weather service extending its tornado warning. this is central oklahoma. you're looking at live shots right now. we haven't seen any twisters the way we did last week but we are really on guard right now because of what happened obviously. this is central oklahoma. there is also some flood warnings in miss -- missouri as well. this remains in effect until 9 p.m. liz: look at that. david: looks though there are some beginnings of a twister there at least very strong wind there we'll keep you updated. in fact let's stay on this pictur

cybersecurity implications. tell us about that. >> well, there's several. the chairman made a very excellent point looking at the dances in the connectivity of vehicles and the opportunity for mischief that can go well beyond pure mission. that can mean an impact on life possibly if it is something severe happens. this is what we do know. at this point right now there has never been an unauthorized accessing of a vehicle that is currently on the road today. from our research at this point you would actually come a person would need physical access to a vehicle in order to get control of a particular vehicle functions. however, recognizing the future there will be opportunities where there will be a chance for software linkages and internet downloads into vehicles. for that we have a very rigorous program looking at cybersecurity issues in terms of reliability, looking at the proper standards of encryption and that we sort of deal with certificate packages and all those other issues, that we don't want to behind the eight ball on this and we are relying upon

hagel says sub cybersecurity wie a topic for next week's meeting. >>> the winter olympics next february have now olympic-sized reports of corruption to deal with. a former russian deputy prime minister-turned kremlin critic claims $30 billion were stolen from the games. the accused are businessmen and officials close to president vladimir putin. the alleged corruption and cost overruns have quadrupled the games' cost estimate to a total of $50 billion now. the head of the russian olympic committee says he's confident russian prosecutors and auditors are keeping an eye on costs. >>> well, the white house is dismissing the idea of appointing a special prosecutor to investigate the irs. deputy press secretary josh ernest says there's already enough people reviewing the embattled agency. the uproar surrounds tax be officials allegedly singling out conservative groups for extra scrutiny when they applied for nonprofit status. but according to a new quinnipiac poll, three in four say they want a special prosecutor to find out what happened there. >>> when it comes to the national spelling bee

i understand the threat of cybersecurity. one of the businesses that i have been involved in is experiencing 3.8 billion cyberincidents a month. that is three times what it was three years ago. the complexity of those incidents is 50 times greater than it was three years ago. so i fully appreciate what we are up against here. if i am confirmed, i will work closely with our ita and the full commerce department to make sure that we do help develop a cyberframework as we have in touch with as well as a close working relationship with the business sector to make sure that we are addressing the cybersecurity. >> thank you. i had a very good talk with the chairman of the appropriate committee handling cybersecurity in the house. we have had lots of conflict over here about what is voluntarily the standard and you have to meet a certain standard and all of those kinds of things. as he spoke, i said every word that you decide to me, i agree with. i have never met him before. but i think for the first time, i think that we see a real

we begin this evening with a look at cybersecurity and china. joining us david sanger of "the new york times", david martin of cbs news and former fbi deputy director philip mudd. >> i think the most important message that its president's probably going to have is that cyberissues, whether it's cybersecurity, cyberespionage, whether or not it's possible to come to some kind of an agreement between the united states and china, how to limit the use of these weapons, that these have moved it from the periphery of the u.s. china relationship where they really were even a year or two ago. and they have now moved to the center. >> rose: we conclude way conversation dow not want to miss it is with sir ken robinson, not only is he the person who has been voted number one among all the ted talks, he's also written a book for you called finding your element, how to discover your talents and passions and transform your life. >> if you look at the odds of you being here at all, then really strikes me as sad that people settle for so little along the way. i

there were those two cybersecurity hearings before energy and commerce on tuesday. talk a little bit about the takeaways from there. are you happy with what you heard about the president's executive order focused on critical infrastructure? >> guest: well, you know, it's better than where he started a year or so ago where he was just against this and all. i think he came a long way. i tell you, tony, this is the biggest threat america faces is cybersecurity threat. and we heard that across the panel, even panelists who had a little disagreement about what you do about it, i think they all agree this is a very serious problem for the country. and so that's where i think mike rogers has done a terrific job as chairman of the permanent subcommittee on intelligence and a member of our subcommittee. i asked him to chair a terrorist supply chain work group to bring members together and dive deep on these issues. that vulnerability is a big issue for america and for our security, and i think they'll develop a lot of good information for the full subcommittee on it. but goi

one is cybersecurity and the other is technological and modernization in ordering you to receive data and do the job we ask you to do. then you have personnel. from what i gather, your personnel is a highly talented one because it requires people with business and accounting and other technical skills. am i correct in that? >> the vast majority of our folks are very professional in dealing with different aspects of it. >> okay, so it's not on the person answering the phone who has to know everything about everything, and turbotax is sometimes not as turbo as we would like it to be. and the people who actually have to do all of this, so how is the morale? very talented businesspeople. i would think that they are highly desirable in the private sector. >> yes, i am quite sure that morale is not what we would like it to be an employee that will not be getting the opportunity that they might have expected. that we have an incredibly highly dedicated workforce and i would like to think they are dedicated to public service. so while morale is not what i would like it to be, we are dedicated

now cybersecurity is a big problem. the lone wolf terrorists that we're talking about like these two brothers. that wasn't a problem on 9/11. now it is a problem. so the government has to keep ahead and not behind. it can't look at what happened yesterday and preparing for the last event. it has to look at what might the next event be. we have to continue to do that. my hope is this hearing is a good step. congress has been very good in this particular area in a sense it has not been partisan. republicans and democrats have been together. >> you think that will continue? >> i think it's got to. national security is the most important responsibility government has to keep us safe and to do that that's not a republican or democratic priority. that's something everybody has to work together on and hopefully they will. >> congressman, do you worry about that whether partisanship will interfere with progress here? >> you have to worry about it just because of the general polarization in washington today. but at the end of th

cybersecurity is one of the leading issues about europe. a comprehensive strategy involving industry and government must be established and carried out. further fuel test of a new generation security system is needed to ensure that the platform remains secure while maintaining the privacy of all users. one the systems are developed, we need automotive consumer to embrace them. we need attractive device widely deployed. clearly a further wave of technology called development will occur in vehicle automation then the benefit will reach will be on safety. the scale of the transportation is important. the united states is a opportunity to leap ahead in mobility technology supporting improved way of life, and new mobility industry. an industrial ecosystem with new jobs will be created by the amative and information technology industries. there will be many winners across different businesses and consumers. how do we prepare for and sustain the transformation? a critical requirement is for all vehicles manual or automated to be connected during a

>> this is our cybersecurity aspect. afghanistan under hit the rules in this didn't even come close to a requirement supposed to protect my patience. i'm very keen about the privacy with american citizens are entitled by our constitution. i don't want people to be detained without being charged. i have a wrath of making sure the government is an arms length away. so these are the issues we find ourselves in. i also said that friend paul in the senate chamber when he was having a filibuster to have the conversation from the administration. it is one of those who need to have a conversation about to mobile to see some of that by the congress passing the 20 top faa modernization of type to see how they can articulate them but you can do with it. and what are the rules that govern not. >> dissent is the constitution is to be touched on for figuring this out. these obviously our technologies that are the framers of the constitution could not even have dreamt of. do we even have an adequate framework for thinking about that as

with us now is partner and co-chair of cybersecurity at venable llp, jamie barnett, also former chief of the sec's oakland -- homeland security division. it's astonishing, 26,000 transactions in two operations over a matter of hours. in new york alone, they hit 30:00 a.m. machines in ten hours. are you surprised at the sophistication of this? >> absolutely. i think everybody would be surprised by it or it would have been anticipated. while it was carried off in a very concise and well-orchestrated plan, it reads like a detective novel or oceans 11 movie. the more alarming part of it is that it actually played out over several months of planning with the actions done in december and then again in february, and so it raises a new bar of concern with regard to what cybercriminals internationally can do. >> greg: i want to put on the screen how they did it in bullet point form. there's two red flags there they hacked into the credit card processing companies, two of them. eliminated withdrawal limits, created access codes. encoded stolen data on magnetic strip cards and then had the cash

that would mean securing cybersecurity for yahoo! and google. is each company, your bank, but should they be made responsible? and what happens if they fail in responsibility? what happens if a defense company loses critical data? we have not worked all this out in inappropriate ways. the division between homeland security, responsible for defense a homeland, and infrastructure, and d.o.t., with the nsa and cyber attack command for the military side. the problem is you don't have the resources, the manpower, sophistication on the department of homeland security side. they're loath to spend money on cybersecurity if they cannot show it really provides value. how much insurance? you buy for the one insurance even as a result, you get a tax. -- attacks. host: arlington, virginia, independent. caller: i'm in the technology business since 1996. you are trying to scare american people a little with this cybersecurity. the issue is american corporations by outsourcing our jobs give all the documents how to produce goods to china. it's not like china ne

. >>> cybersecurity officials say somebody's been hacking into the computer networks running u.s. energy companies. they believe the hackers are backed by the iranian government. the hackers have been able to break into networks and potentially take over oil and gas pipelines. china based hackers targeted intellectual property and spy agencies. officials say targeting the oil and gas infrastructure could cause more damage. >>> coming up, the trendy new drink that isn't really a new drink. why doctors say you should just stay away from it. >>> an >>> you're looking live at disany world. d disney parks will be open 24 hours straight starting this morning. disneyland here in california will open at 6:00 this morning through 6:00 tomorrow morning. many people camped out overnight. guests will get to take part in some special movie events and get their hands on limited merchandise. disney is the parent company of nbc 7. >>> one bay area man has a new way to has a new way to show his sweetheart. he created a special engagement ring for his fiancee that lights up when he's around. the 36

david: the volatile cybersecurity bitcoin is grabbing everyone's attention on a day when the dow hit 15,056. we can't emphasize that enough. heavyweights like berkshire hathaway's charlie monger and microsoft chairman bill gates have also been interested in but from very different perspectives. here is what they told liz bit yesterday. >> i think it is rat poison. i regard it as deeply flaky. >> i think it is a technical tour de force but that is an area where governments are going to maintain a dominant role. david: different views. lori: that is what makes a market. so it is now about to grab the attention of the commodities, or already grabbed attention of commodities future exchange commission is considering whether the cybersecurity may fall under the u.s. regulator's purview. adam shapiro joins us. >> to keep this simple. there are two issues when you talk about regulating bitcoin to keep in mind. regulating bitcoin as simple currency. if i want to buy the dress from you, here is bitcoin kind of thing. don't worry, i don't wear dresses that is an example. we're not talking abou

that would mean securing cybersecurity for yahoo! and google. bank, butmpany, your should they be made responsible? and what happens if they fail in responsibility? what happens if a defense company loses critical data? we have not worked all this out in inappropriate ways. the division between homeland security, responsible for defense a homeland, and infrastructure, and d.o.t., with the nsa and cyber attack command for the military side. the problem is you don't have the resources, the manpower, sophistication on the department of homeland security side. they're loath to spend money on cybersecurity if they cannot show it really provides value. how much insurance? you buy for the one insurance even as a result, you get a tax. -- attacks. host: arlington, virginia, independent. caller: i'm in the technology business since 1996. you are trying to scare american people a little with this cybersecurity. the issue is american corporations by outsourcing our jobs give all the documents how to produce goods to china. it's not like china needs to spy

>> well, the bottom line is is the cybersecurity concerns that are being expressed in the u.s. and elsewhere are very, very real. but all of the telecom venders, regardless of where they're headquartered, are global companies that rely on global supply chains, so they're all subject to global vulnerabilities. >> but this is not about supply chains. this is about espionage. this is, as senator schumer said, his concern was about the proximity of huawei, your company, to the chinese government, and the potential influence it could exert and the accessibility that the chinese government would have to information should these sprint deals go through just without any conditions, they would have access to the backbone of sprint's network here in the united states. i mean, you can understand the optics that are the concern here for the u.s. government over national security issues, don't you? >> for those that are being intellectually honest, and this is well-understood in the industry, whether you're huawei or erickson or nokia siemens or a algtel lieu senath or cisco, you're all glo

we begin this evening with a look at cybersecurity and china. joining us david sger of "theew york mes", david mart ofcb news and former fbi deputy director philip mudd. >> i think the most important message that its president's probably going to have is that cyberissues, whether it's cybersecurity, cyberespionage, whether or not it's possible to come to some kind of an agreement between the united states and china, how to limit the use of these weapons, that these have moved it from the periphery of the u.s. china relationship where they really were even a year or two ago. and they have now moved to the center. >> rose: we conclude way convertion dow not want to mi it is with siren robinson, not only is he the

it to cybersecurity hearings before energy and commerce. talk about the takeaways from that breed are you happy with -- talk have heard about the takeaways from that. are you happy? i think he came along way. tell you, this is the biggest threat america faces. cyber security threats. we have heard that across the panel. even panelist who had disagreements with what you do about it, they agree that this is a very serious problem for the country. that is where i think mike rogers has done a terrific job as chairman of the committee on intelligence. i asked him. finding vulnerability is a big deal for america and our security. i think they will develop a lot of good information for it. it going forward i think it is a matter of trying to figure out how to you determine whether there is a vulnerability on a specific piece of the claimant or line of equipment, how'd you you communicate that? who makes those decisions? , some of out there these organizations that have been talked about our price leaders in the marketplace. if you're out there try

i understand the threat of cybersecurity. it of the businesses have been involved in experiences 3.8 billion cyber incidents a month. that is three times what it experienced three years ago, and the complexity of those incidents is 50 times greater than it was three years ago. i fully appreciate what we are up against here. if i am confirmed, i will work ita, theith nist, full commerce department to make sure we help develop a cyber develop aas well as close working relationship with the business sector to make sure we are addressing these cyber security threats. >> thank you. i would say to my friend, senator thune, i had a good talk with the chairman of the appropriate committee handling cybersecurity in the house, and we have had lots of conflict over here about what is voluntary, who sets the standard, or you have to meet a certain standard, all this thing. as he spoke i said, every word that you have just said to me. i agree with. i have never met him before. it is going to meet, but i think for the first time we see a r

our next guest has vast experience in cybersecurity. he is the former chief information for the u.s. intelligence community and president of the meyer rose group. so, general, this is a big report in the "new york times" and "the new york times" quoting two unnamed senior officials say that the targets of these latest hackings have been some major energy companies but they don't know who's behind the hackings. who do you think, who would you look at first in this situation? >> well i think the usual cast of characters are the same. whether you're talking about hacking or you're talking about other elements of working against the united states. and, it is fairly certain it is coming from the middle east but you can just about bet that where it appears to come from is not exactly where it is originally coming from. jenna: what does that mean? >> that means they usually try and hide so that it buys them more and more time because once you figure out you have attribution, that may not help you deal with the immediate cyber element but it wi

the real question of corporations is who is responsible for cybersecurity? do we leave it up to the company. the service providers. each company. should they be made responsible? what happens if they fail the responsibility. if the bank gets hacked. what happens what happens if a defense company loses critical data. we haven't worked it out in an appropriate way. the division wean homeland security responsible for defense of the homeland and infrastructure and dod with the nsa sphornl the military side of it. the problem is you don't have the resources, manpower, sophistication, on the department of homeland security side. companies are -- to spend money on cybersecurity if they can't show it provides value. how much insurance do you really buy with [inaudible] as a result you have to get out of here. >> host: alex, arlington, virginia. independent caller. >> caller: yes. [inaudible] i'm in the technology business since '*eu69. you try to scare the american people with cybersecurity the issue is american corporation by outsourcing on the jobs give all the do

it relates to cybersecurity. it is embarrassing, i think, for congress because for four years now, all the defense and intelligence people have declared it the greatest national threat to our security, not al qaeda, not others, but cybersecurity, coming from computers. we made computers in the mid- 1990's, and now we use them, and now they are threatening us. we are trying to put together a bill. there are three committees that have jurisdiction. we are one of them. the department of commerce plays a key role in a wide range of cyber security efforts, including setting international standards. you will be conducting technical research and working with his assist to improve risk management. in fact, nist is leading the effort with the approval of all parties so far, because not many people know nist, it is an extraordinary place. they are leading the effort to develop a framework with industry to protect our most critical infrastructure from cyber attack. that is a tricky subject -- critical infrastructure. if con

what's the relationship of china in terms of cybersecurity with this region that we're talking about now? >> actually, i think that the chinese industry's in the region themselves are dealing with the manifestation of cyber crime and cyber attacks as well, and mostly the financial sector, energy sector, and anyone doing businesses with the governments in the regime are being targeted by sophisticated attacks not focused oven denying service to you, but really penetrating your system and stealing sense tifer assets and data. >> what do we take from it, we as americans in terms of how we think about traveling or how we think about doing business, interacting, or how we think about our own threat here? what's the ramifications for us? >> the ramifications for us are two-fold, one of which is investing in latin america, operations, we have to beef up the cyber security posture there now. at the same time, the traditional organized crime gapings and syndicates that are manifest manifestations in the u.s., respect the fact they use cyber capabilities for money laundering and counterintelli

this quickly that's going to to actually change the way that international relations work in terms of cybersecurity and things we really telling about the way congress works it's a very interesting there so much that is going on right now unfortunately we're going to have to end the conversation there we don't even have to talk about the quantum internet but i'll refer people to r.t. dot com for the latest on that r.t. producer and you're blake and founder of the s.s. . joining us from l.a. thank you. well war as we know it has changed it wasn't the type of change that pulled the rug out from under your feet and left you lang on the ground wondering what the hell just happened it was a gradual and elusive war that is actually being conducted in the shadows troops on the ground have given way to drone strikes the cia is now not only an intelligence gathering service any more overt orders have made way for those wars fought in the shadows and out of the consciousness of the public it is a trend that escalated during the george w. bush administration and actually continued into the obama presidency an

in the meantime, cybersecurity and internet privacy getting major attention this week. linkedin just rolled out a number of changes to its user agreement informing its more than 200 million members through a notice on the site, and then they gave specific clarity, listen to this, on one point that came to some as a shock. the professional networking web site's new user agreement states -- here it is written out -- even if it's legal where you are located, user may not create profiles or provide content that promotes escort services or prostitution. bummer. >> oh, drag. liz: apparently, yes, prostitution -- [laughter] was a professional skill you could get endorsed for on linkedin. but no more. this clause is now blocked completely. linkedin had already banned advertising, quote, unlawful services. however, prostitution and escort services fall into a legally gray category, 'cuz it is legal in other countries and in certain parts of nevada. okay, so we found that fascinating, right? so no more. over. stock market on fire today, as we just mentioned, hitting session highs

jamie is a partner and co-chair of cybersecurity at a major u.s. law firm and also a former rear admiral in the navy. it's no secret the chinese have been hacking us for a long time. this seems to be a much wider campaign of espionage and likely more dangerous. >> absolutely unprecedented. the list you mention there is appalling. it endangers u.s. missions and u.s. troops. >> trace: is it -- the fact the pentagon can't counter this, is that the problem? which seems a little scary. talk about chinese getting some of our vital information. you know north korea is right on the edge of going off the cliff, and now you have reports there's a possible the pentagon can't counter this. >> you know, interestingly, our military systems are pretty well protected. they haven't always been but we have learned and protected them. what the chinese did some response is start attacking the periphery, the contractors and even the subcontractors we depend on for these various systems, and they have been fairly successful. all of these folks are very careful. they hav

. >>> cybersecurity officials say somebody's been hacking into the computer networks of american energy companies. "the wall street journal" reports the hackers have been able to break over networks that could potentially take control of oil and gas pipelines. while chinese have targeted spy actsies, officials say targeting the oil and gas infrastructure could cause more damage. >>> ahead, the overnight offer disney is making to people who visit its theme parks. >>> and a trendy new drink that isn't really a drink. why doctors say stay away from this one. >>> and coming up in our 6:00 hour, get ready to pay more cell >>> good morning. it's 5:53 and you're looking live at disney world in florida. you see all those people there? well, disney parks will be open for 24 hours straight starting this morning. parkgoers have been filing into disney world getting a jump on the long lines. disneyland here in california will open in about six minutes and stay open through 6:00 tomorrow morning. guests will get to take part in some special movie events and will get their hands on limited edition me

in recent years we've seen threats arise in the areas of home mortgages, financial fraud, cybersecurity and, of course, terrorism. but it won't stop their big i believe that new, unimagined threats will challenge the fbi and all of us in the future. to remain effective i believe it's imperative that the bureau had the inherent capability to retool and refocused to address these threats. without a plan to address these threats, the fbi will continue to lurch from crisis to crisis, whic s want to happen. in the past the bureau has received additional resources from congress precisely because it has not been agile enough to refocus its efforts internally. th effectivew to address such pressing issues. the fbi request for 2014 is, madam chairman says $8.3 billion. director mueller, while the budget request targets a number of new initiatives and maintains core missions, i believe it lacks focus on how the bureau will address future, unexpected threats that i just mentioned. recognizing the world in which we live and the tough fiscal climate, i'm concerned that the budget priorities reflecte

the white house says cybersecurity is going to be very much on the agenda, but analysts tell fox business that the private sector as got to do more to protect themselves because diplomacy and government's defense efforts are limited, just not enough. the idea to tix is is from the huntsman report recommending u.s. businesses invest in their own cyberdefense systems allowing them to monitor their networks in realtime, so not just regular i.t., but more than that, technology that could freeze someone's computer if they access stolen documents. aggressive, those. think about it, if you're a company upping that, this could be negatively affecting your business to china. david: could affect our security. worried about a lot of things there. thank you very much. >> thank you. liz: if an index gives a stock the boot, that's a bad thing, right? well, it could be the time for investors to buy the stock. companies out performing their replacements and the names you and your portfolio can't afford to miss. david: also, the housing recovery under way in the u.s., but somebody who says if you look to

reporters on air force one today, reacting to the story, white house spokesman jay carney said that cybersecurity is a key concern for the united states. it will be a topic of discussion when president obama meets with chinese president xi jinping in june. you can reverse engineer them, and find ways to defeat them and find out ways to build your own equivalent of this high military technology. >> thank you, eamon. >> you bet. >>> the death of a prominent private wealth manager at a major fund is shaking investors' confidence, because there are reports of missing money. that's straight ahead on "power lunch." >>> plus the golden state is back in the black. california actually reporting a budget surplus you know it was $60 billion in the red just three years ago. with more states getting their fiscal house in order are muni bonds better than previously thought? we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'

our cybersecurity analyst explains how it went done. let's start with how it happened. how did they do it? can you make me -- i'm a layman, can you make me understand this? >> it looks like they broke into a couple banks overseas, were able to get some form of administrative rights over a variety of different accounts, which allowed them to increase the amount of withdrawal that could occur at an atm machine. from there they took those -- the account numbers and burnt the atm card pins -- i'm sorry -- the numbers on to blank atm cards and had the pins as well via the break-in and they were able to coordinate dozens of people in dozens of countries at the same time early in february, mid-february to make withdrawals all at the same time to at the tune of million0s dollars. >> they had seven guys walking around manhattan, new york, with backpacks, just taking money out of atms with these cards, and stashing it in the backpack and just walking on to the next atmment it was like that? >> it was just like that. but not just in new york. it was being done all over the world.

>> cybersecurity is a major threat and it will be with us going forward. there are bad forces out there always tried to get a step ahead of any protections that are put into place. the first thing we have to do is to make sure we have the kind of coordination where the threats are well understood and communicated, where there is collaboration with the industry and with the regulators and the industry. my first weeks l.a. office, i wanted to make it clear that we needed them to step forward to be a part of that process. the feeling that the executive orders that the president issued last year, he got about as far as we could go with administrative authority to put forward the tools to deal with this. it would be very helpful to get legislation to make it even more likely that firms would do the kind of cooperative work that is needed to be as vigilant as we can possibly be. one thing i'm particularly concerned about as large institutions have the capacity to do more on their own than smaller institutions do. i think we have to be very concerned that the ris

former joint chiefs chair mike mullen also cochaired that benghazi inquiry said cybersecurity is a huge challenge. >> there's nowhere i go that i don't talk about. i think it's the most severe threat we have,tial to our way of life. i have been on the inside, fought it and seen it, so i have some understanding. we're in decent shape on the military side, okay on the government side a long way to go on what i call the dot-com world. they could save a lot of money on their car insurance by switching to geico...they may even make you their best man. may i have the rings please? ah, helzberg diamonds. nice choice, mate. ...and now in the presence of these guests we join this loving couple. oh dear... geico. 15 minutes could save you 15% or more on car insurance. a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms. but if you have arthritis, staying active can be difficult. prescription celebrex can help relieve arthritis pain so your body can stay in motion. because just one 200mg celebrex a day can prov

i've put a lot of my own time into cybersecurity issues since i've been at treasury and before because i think it's on that very short list of really dangerous things that could happen on our watch or right after. it's emerging as a bigger and bigger risk, and every time i'm out in my office or in the country talking to business people, it's on their minds, and i think it's on individuals' minds because of the individual identity theft as well. you know, one of the things that i'm committed to doing is making sure that we don't just solve the problem we see today and say we're done. we have to stay on it because the threats evolve, and they change, and it's not like you get to check the box and say, we did that. there's a new way of life that we just have to stay on, and it's one of the reasons why we also need to have the resources to stay on top of it, because that takes putting people on these issues. i've met with bank representatives a couple of times already to discuss what can we do to help them big and small. the big institutions, i think you're right, are focusing a lot of res

this is the cybersecurity company who tracks down whodunit. he is coming up in a fox business exclusive. he testified in washington today you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] liz: today, the senate held a hearing on how the government and businesses can protect themselves from all the cyberthreats that have been hitting many different corporation

.-- [inaudible] cybersecurity, that's absolutely one of the new security challenges on which we need to focus much, much more in the coming years. we're in the process in nato of strengthening cyber, our cyber defens first step has been to strengthen the defense of our own nato networks, and we need that because on a regular basis we are attacked which shouldn't be a surprise. so far we have been very successful in defending our systems. so that's the first step. next, of course, we will also have to consider whether and, if so, how we can develop a capacity hack come to -- that can come to the help of individual allies that are subject to attacks. some allies may have the capacity to defend themselves against such cyber attacks. other allies would appreciate to have a nato capability, a kind of a rapid reaction team that can assist upon request if needed. so these are some of the elements in the work that is, that has been prepared. and, obviously, cybersecurity is also an issue with which, on which we need strong cooperation with partners, partners across the globe. because cyberse

jonathan mayor is a graduate student in computer science and law at stanford university where he is a cybersecurity fellow at the center for international security cooperation and a junior affiliate scholar, and caid is at the aclu of massachusetts where she quarterbacks the -- [inaudible] and defending core first and fourth amendments and due process rights. is i wanted to kick off this discussion by describing one of the major surveillance battles that we've been facing over the last few years, and it's a story that's particularly close to my heart which is the story of mark klein. mark klein was a 64-year-old retired at&t technician who came out publicly including coming to my organization with schematics, plans, detailed blueprints from at&t's folsom street facilities in san francisco. and these plans showcased a secret room based in at&t's facilities. it was locked on the inside. we've actually seen picktures of it -- pictures of it. and inside this room was a fiber optic splitter that created a copy of the internet communications of americans and sent it to the national security agency. caid,

but the one thing that's affecting the room that we're in today, every single day, is cybersecurity threats. the intellectual property that this floor is based on, the trading of equities and around the world, for the value of u.s. companies, is being ripped off every single day by nation states like china, in an unprecedent wade. >> what are they doing? >> well, they have their military and intelligence, trained professionals, whose job it is to steal intellectual property, to break into company networks, steal those blueprints, take it back to places like china, to repurpose it to compete against them. and we've seen it over and over and over again. i will eveventure to guess thaty company that's registered to trade here today has been hacked and somebody's trying to steal their intellectual property. and i mean every single one. >> somebody told me, you know, banks face this issue 400,000 times a day. >> yeah. >> efforts to hack their system. so, real quick, why is it always china? why does everyone say it's china? >> well, other countries have the capabilities and non-nation actors, lik

coming up next hour here president obama will talk cybersecurity with china's president next week and former homeland security secretary tom ridge says the president needs to get tough with the chinese. tracy byrnes, ashley webster's guest next hour right here on fox business. don't miss it. i want to make things more secure. [ whirring ] [ dog barks ] i want to treat mo dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do. even better. ♪ ashley: good afternoon, everybody, i'm ashley webster. tracy: i'm tracy byrnes. stocks kick off summer with a rally as consumer confidence soars. how long will it be before the fed throws cold water on this party? ashley: meantime the cyber threat. chinese hackers reportedly gaining access to our most critical weapons systems. we'll talk to former homeland securit

the group free press organized the event and included a member of the aclu and the cybersecurity specialists. from april, the this is about an hour and 15 minutes. >> i am extremely pleased to have a very distinguished group of panelists who actually none of -- many have flown in from different parts of the country. it's a particularly interesting group today because we have technologists. we have researchers. we have got an activist and we have a lawyer so we have what i think of as the perfect spectrum of digital rights defenders sitting in one room today. talking very frankly about their thoughts on government surveillance, what the problems are so what you and i should be trying to do about it and whether or not there is even anything we can do about it. i'm hoping to sort of move back and forth between government surveillance issues and privacy issues as far as consumer and corporate collection of data. so as this moves along feel free to write your questions down. i'm going to go through and introduce people and then we are just going to jump into it. panels have long introductory rema

one, cybersecurity, the other technological and modernization in order you to receive data and to do the job we ask you to do. then you have personnel. and from what i gather your personnel is a highly talented one, because requires people with business, accounting, and other pretty technical skills am i correct in that? >> the vast majority of our folks are very professional in terms of knowing the tax law and dealing with different aspects of it, yes. >> first of all, the person answering the phone has to know everything about everything, because who knows what they get. and turbotax is sometimes not as turbo as we would like it. and then to the people who actually have to do all the back-office work. what do you say and so how is them a row with sequester? these are people very talented business sector. and i would say highly desirable in the private sector. >> i would, i'm quite sure morale is not what any of us would like it to be as a federal employee generally, and as an irs employee that has taken some time off it will not be getting you know the promotional opportunity that

and when i think is most encouraging is that nato has concentrated on the new challenges of cybersecurity and the like. yet there is a general view that last season's thing. the usa turning in on itself has, to some next bend best to some extent, downgraded nato. to what extent is the united states now less interested in europe? my second question, pooling and sharing and the european enthusiasm for that, my question , in research institutions close to nato, has any research been done into how much taxpayer money is being used for the upkeep of old buildings, old equipment, defense infrastructure which is now obsolete? i think there, might the more enthusiasm for pooling and sharing. but my question is -- can you tell me, is there any research into this? to do research on how much public money is wasted in this way? >> thank you, chair. i would like to thank the nato secretary-general for setting out his position clearly. i would like to thank the secretary general for his comments, brief sustained comments that were very powerful words. he spoke of the need for europe to make a greater i