tv MSNBC Live MSNBC May 18, 2012 8:00am-9:00am PDT
anticipated stocks to ever hit wall street is making that splashy trading debut. any second now, facebook stock will begin trading on the nasdaq and just an hour and a half after one of the newest and youngest billionaires rang the nasdaq's opening bell from facebook headquarters in california, the frenzy overfacebook reaching a fevered pitch instantly transforming stakeholders into billionaires and creating more than, get this, 1,000 new millionaires among the company's 3,000 employees. even at what seems like an affordable $38 a share, the chances are you are not going to be able to get your handle on that stock, for right now. john ford is live at the cnbc bureau in san jose, california. and evelyn russly of "the new york times" joins us from new york. great to have you both here. john, as we talk about the ipo, it raised $16 billion but the stock now starting trading this morning at 11 a.m. an hour and a half after the markets officially opened. why that 90-minute delay?
>> well, the demand for this is really off the charts. what we're hearing is investors, retail investors, everyday folks like you and me, want in on this more than they have on anything else. so, it takes a while to line up and get into anything. it's going to take a while to line up and get into this stock. >> as we remind everyone about facebook and the fact it's only been around for eight years, in that time we've seen this website move from the dorm room experiment to the juggernaut worthy of the aaron sorkin epic with the movie they pthe mind o investors and why they're looking at this and drooling, basically, about what facebook means? >> absolutely. the growth of facebook has been nom. i remember being in college and getting e-mails from friends at harvard saying, join this site, my friend mark started it. now $4 billion in revenue, owning social media category.
every few years or so silicon valley sends to produce kind of a category-defining company. for social media, that really has been facebook. there's still a lot of question marks. i think in the coming months we'll see investors wrestle with the questions about big advertisers and whether or not there's going to be more companies like gm pulling advertising from facebook. if they can just build their brand without having to pay facebook. still a lot of questions but there is so much promise around social media and what it means for the web that we'll probably see the stock go very, very high. >> as evelyn brings up about the promise of the social media websites, certain companies that would be considered to be within the same zip code as facebook, that have gone public recently, like pandora, zynga, how does facebook stand apart from them or does it? >> is it-t stands way apart from them because it's so huge. this is a company -- this is a service that's got 901 million users, active users at last
count. we just haven't seen anything like that. you know, i was thinking back on when is the last time we saw an ipo that had this much hype, this much interest. thought back to google, when google went public, a lot of people knew what it was but they didn't understand the juggernaut it was going to be. at this point facebook is already the biggest site on the internet. the fact it's going public is just a big cultural moment as well as being a huge financial moment. >> just to tell everybody, real fast, i want to jump it because we're hearing it's going to start trading 11:05. they're pushing it back minute by minute. evelyn, you wanted to say? >> i wanted to say that another point about what makes facebook special, you could say, is that it's so personal, right? when doing. went public, people used it for search. facebook is intertwined with our lives. we post messages, our photographs on there. that's probably why you're seeing so much deman from the retail side because a lot of people understand this brand. they use it probably every day. they assume, well f i'm spending three hours on facebook, a lot
of other people must be as well. >> ipd to ask you, as i brought up in the intro, they raised $16 billion in its ipo. the company made this huge acquisition recently with instagram. can we expect facebook to start gobbling up more companies, increasing its girth, so to speak? >> instagram was an anomaly. they made acquisitions in the past but never went that big. i think you'll see a mix where they'll lean on their prior strategy, which was doing a lot of -- buying companies for their talent and then buying a few here and there strategically where it makes sense, like on mobile. >> let's talk about the man behind all of this, mark zuckerberg. he's the 29th richest person on the planet. if that wasn't enough, he controls more than half of the voting stock for facebook. so, in the expectation of the business, the cyber community, silicon valley, what do people expect from him in the few months ahead, the years then to come?
>> well, i think people expect him to remain really focused on just building out the product. there's been interesting watching facebook, especially over the past few years. he's had this kind of battle in values between investors and his agenda for the company. other companies who wanted to acquire facebook and his agenda for the company and his real push has been, i want to maintain control, not so that i can be on the list of the richest people in the world, but so that i can be sure that this service and this company becomes what i want it to be. that's going to get that much tougher for him in just a few seconds when this stock starts trading because everybody's going to have a different measure to judge whether facebook is doing well or not. there are going to be people invested in this financially, not just emotional with their facebook profiles. he'll have to balance all that. that's tough for a 28-year-old guy to do. >> explain to us the mod fick or span of what we're seeing about where the stock is expected to start trading.
some are saying maybe at 42. then that would be below expectation. but it was originally going to be below that. isn't that above expectation? i think it's confusing to people where it's going to hit. >> it is really confusing. $38 was the price where they said, hey, this is where we expect that it could start trading. then when all those orders come in, there's a lot of demand in there. where it opens up could be anywhere. i mean, it could be at this $42, $43 level. it could push up a lot higher. from there it's an option. what are people willing to pay versus what are people willing to sell it for. with all of these investors coming in who might not have a sense of exactly what they're paying for, they know they want a piece of it, you could see a lot of exuberance. i'm seeing bets on twit ter could go to $50 quickly. >> according to some people who are close to underwriters, in those discussions as to how to price it, there was a lot of talk about maybe between $45 to
$55 is where it would be trading in the coming months. so, i think, though, those expectations are actually quite muted when you think about how many people are going to try to get into this. we could see the stock easily getting to $50, in my opinion. >> jon, explain to all of us as we explain about people getting in and doing so on the ground floor, while it's going public, it's not truly public. you know, john q. doe and jane doe, they can't get on in right now unless they have a lot of cash to come to the table with. >> exactly. a good friend of mine who's got a good amount of money was approached by someone at morgan stanley who said, hey, i can get you this number of shares. he could get in early because, hey, he's got a lot of money. he's got a relationship with this bank that has some shares. they want to let him get a piece of it. but the rest of us who don't have those kinds of relationships have to wait until this starts trading publicly. and who knows what the price will be. it will just be based on demand, what people are willing to pay. our deal is not as good as
people like my friend who have a lot of money and people who got in on this years ago and invested in it. they're going to make a whole lot of money as soon as this starts trading. >> i want to talk about google and a lot of people have talked about the hindsight being 20/20 they missed out on that model when it went public and they're using that as the reason why they want to be involved in the public -- the ground floor, that is, of facebook. those two don't add up if we look at the long-term projections of what those companies can do and the profits they can turn, correct? evelyn,dy lose --dy lose you? can you hear me? looks like we lost evelyn. jon, let me phrase that question to you about the fact that so many people had regrets about not getting in with google and using that as a reason, hindsight being 20/20 to want to be in with facebook.
but the two business models don't match up, do they? >> they don't. keep in mind, when google went public, it was at about a quarter of the total value, the total company price that facebook is going public. and google's model is different from facebook. how google makes money, you do a search. if you're looking for bathroom towels, information on bathroom towels, they'll show you an ad on bathroom towels. they know if you're searching for it, you probably want to buy it. facebook a bit different. they know who your friends are, they know your interests, so then they try to show you graphical based on that stuff. their business model, how they make money, is really going to have to grow and evolve over time. there's a lot of uncertainty over exactly how that's going to happen. a lot of people expect this stock to have ups and downs because people getting into it understand why they like facebook, but they don't necessarily understand how facebook makes money. so, if they hear some bad news, maybe they'll sell. if they hear good news, maybe
they'll buy. that could mean a lot of ups and downs in the stock price over the next few months. >> when they talk about the fact this will most likely lead to expansion in hiring within facebook itself, what do they need to do to stay ahead of themselves and stay competitive? again, widely revered new kid on the block but people will expect big thins of them because of this price. >> well, they actually have to be really careful about hiring. they have about 3,000 employees right now. that's not a lot by, you know, $100 billion company standards. part of the reason for that is focus. with some types of companies, manufacturing companies, when you're building stuff, if you hire more people, you can build more stuff. if you're an internet company, if you're making software, not necessarily the case. there's a saying here around silicon valley, if you get nine women, you can't have a baby in one month. the same goes with software programmers. hiring more programmers doesn't necessarily mean that you get
something done faster. you just need the right few people to do it. so, facebook really needs to focus on making sure it gets and keeps the right people. doesn't try to grow too fast. do too many things too quickly because we've seen companies stumble had they try to do too much. >> jon, i'm go to bring in my power political panel. i want to get their opinion on what we're waiting and watching here with facebook this morning. i have susan with me, former democratic governor of ohio, ted strickland as well as perry bacon. guys, thanks for being so patient. as we watch this together. we're in it to win it, as we see what facebook is going to bring us. susan, i want to start with you. we're watching this. i know you're a social media maven of certain areas. maybe that's a big title for you. what do you think when you see this? as we were hearing from jon and evelyn, the fact that this is basically for the big donors so far, the 1% that can get in on what is the bounty of facebook. >> right. it just goes to the discussion
that we've been having through the political arena of having two sets of rules. it seems like if you have a lot of money, you can get in early and make even more money than if you want to try and buy it as the regular person on the street and you're not able to make the same profit. i mean, that's how it translates into the political world. >> governor, when you hear about the speculation of where it's going to start and the big expectations of the company itself, do you think it sounds worth it? >> well, it sounds like a different world from many of the people that i know here in ohio who are just struggling to, you know, get by, maybe have a $30,000 a year job of some kind, that helps them keep body and soul together. and to hear about someone making billions of dollars as a 27-year-old, having apparently established this company initially in a room at harvard university. in fact, i was in cambridge recently and someone pointed up to one of the dormitory rooms and said, that's where facebook
was created. i don't know if that's the case, but this is a young man who obviously is going to be very, very rich. and a lot of other people are going to be very, very rich. but for the most -- most of the people that i know, it's like a different world. >> perry, what about you, what do you think? is it worth it? >> it probably is. i do think facebook is different than the companies on wall street who have failed, asked for government bailouts. facebook is creating a product people find useful, usable, use it in their everyday lives, created businesses around it. it has changed society in a lot of positive ways as well, even though people who buy the stock today are in the 1%. >> perry, i want to go out on a limb. did you have facebook in college? did you have the edu address and you were one of the first people in on the ground floor that had facebook? >> i was not one of the stock, i was not involved in creating it. we didn't have facebook in college when i was there -- >> i knew it. i knew it. i was writing sue is san
messages. how old do you think perry is? i didn't want to go out there and fall flat on my face. i knew it. we're a good team here. we'll take a quick break on msnbc and be back with much more, talk to our political power panel about what's taking place on the campaign trail and what's taking place auto wall street today. [ male announcer ] considering all your mouth goes through, do you really think brushing is enough to keep it clean? while brushing misses germs in 75% of your mouth, listerine cleans virtually your entire mouth. so take your oral health to a whole new level. listerine... power to your mouth. with features like scanning a barcode to get detailed stock quotes to voice recognition. e-trade leads the way in wherever, whenever investing. download the ultimate in mobile investing apps, free, at e-trade. ♪ power surge, let it blow your mind. [ male announcer ] for fruits, veggies and natural green tea energy... new v8 v-fusion plus energy.
welcome back. as we continue breaking news coverage this morning of what's taking place on wall street as the nasdaq is about to welcome facebook as one of the contenders there. we're waiting for it to join the other companies publicly traded. however, there has been a slow start to it this morning. again, the nasdaq opened at 9:30. they were going to have facebook start at 11 a.m. because they were trying to deal with the flood of interest that was going to be coming its way.
now here we are at 11:17 and it hasn't started to trade yet. cnbc's john fortt joins me as well as evelyn, and keeping me on track. we'll have our political power panel back in the conversation here in a second. jon, i want to start with you. explain why we're seeing the delay here. people are getting impatient, especially those excited to see this go at 11 a.m. >> i wish i could explain why the delay is happening. but i'm seeing my colleagues the cnbc wondering, cracking jokes, maybe they want 11 a.m. pacific time. but this demand is off the charts. this is important for more than facebook. i want to mention here, what we've seen over the past couple years is ordinary investors, mom and pop, not really wanting to be in the stock market, but this one stock is driving so much interest, you have to wonder if people are going to get in just to get a piece of facebook.
now, you have to hope they're not terribly disappointed in how it trades. this is important not just for facebook but the stock market in general. >> we'll ask you to stand by and come back to this conversation. we'll move on to our political power panel for this morning. the head of the gop super pac blamed for a proposal to relive the reverend wright controversy. the head of ending spending action fund called the defeat of barack hussein obama, a bad idea in the world of bad ideas. >> we didn't commission anything based on reverend wright. mr. ricketts or his family would do anything. >> td ameritrade founder and super pac founder james ricketts denounced the proposal as did the gop presumptive nominee mitt romney. >> i want to make it clear. i repudiate that effort. i think it's the wrong course for a pac or a campaign. i hope that our campaigns can
respectively be about the future. >> all right. welcome back to today's political power panel, larry bacon, ted strickland, former democratic governor of ohio and the wonderful susan, msnbc contributor, republican strategist and founder of del persio strategies. brian baker defending joe rickets and his families this morning. >> the ricketts family is an open and welcoming family and committed to open and honest dialogue. a family of diverse political interests, incredibly generous. it's hurtful and unfair to the ricketts family to have anybody suggest they would want to pursue anything like this. it's unfair. >> are you learning about the ricketts family were unfairly pulled into this fray or
throwing fred davis under the bus? >> it's likely the proposal very detailed, in the story it was preapproved and looked at by the ricketts family, something out of context. it seems like they are -- of course, everyone is trying to throw somebody under the bus in a situation where no one likes what came out. mitt romney condemned it. every republican i heard condemned it. it's good for mitt romney to get this issue off the table because i don't think he wanted to discuss it but i'm not surprised people are trying to distance themselves from this at all. >> according to abc news, one of the top mccain advisers made this mention of fred davis. basically fred davis is this gop media guru who pitched this attack ad against the president. so the top mccain adviser has gone on the record saying he requires round the clock adult supervision. susan, romney last night spoke out against this campaign. this is something he's trying to distance himself from. take a listen. >> i would like to see this campaign focus on the economy,
on getting people back to work, on seeing rising incomes and a growing prosperity, particularly for those in the middle class of america. >> is this is a problem for mitt romney where he has friends that turn into foes in a certain respect that shift the conversation away from, again, where he'd like to keep it, which is on his strong suit, economy, jobs? >> well, as republican strategist or just a campaign strategist, citizens united scare me, besides we could talk about the money issue, putting that aside is that you have a lot of other people who can step on your own message. so, the romney campaign and barack obama for president campaign are going to have their own messages. and third-parties are going to step on them. when you can't control what somebody else is doing, it can work to your detriment. so, while you have all these independent groups out there, a lot of times they will be hurting the candidate. >> governor, i want to ask you about this. susan brings up a great point. is there something to be said about the company romney and
republicans keep? you're basically a reflection of them and that means that you will be a reflection of them when they start with their super pac ads. >> well, i congratulate mr. romney for rejecting this approach. but the fact is that a few months ago mr. romney was bringing up the reverend wright on the hannity show. so, the fact is, thomas, what this shows is the destructive effects of the citizens united decision. i think it was one of the most destructive decisions ever to come out of the supreme court. it is endangering our democracy, i believe, because it's giving power to a few people who are super wealthy and they can control the agenda of this country. we are moving, in my judgment, from a democracy to a mplutocray where wealthy people can spend multiple millions of dollars and
spread hate or venom or whatever they choose to spread. i'm glad this situation has been brought to light and rejected by the romney campaign. there's a lot of nastiness out there, really nasty people, nasty individuals, with whole lots of money. and it's endangering our system, our political system, i believe. >> our political power panel for this friday morning. thanks to all three of you. i appreciate it. history delayed as we watch what's taking place on wall street today. one of the biggest ipos in the world still not off the ground in terms of trading on the nasdaq. we keep our eye on that nasdaq board. what's taking place outside as they have gathered to see where facebook will hit the ground running. people are getting impatient. we'll try to figure out what the holdup is. plus, some senators are going after facebook's co-founder. wait until you hear this one.
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welcome back, everybody. we continue to follow the breaking news this morning about facebook joining others on the nasdaq, starting public trading this morning. scheduled to start at 11 a.m. but now it's almost 11:28 and they haven't begun yet. we have jon fortt joining us from cnbc bureau in california. have you learned any more about the delay, why they haven't shown up, or is this trying to be fashionably late for facebook at the nasdaq? >> no, they're not trying to do this. this is actually some egg on the face of wall street. one of my colleagues has said one of the issues here is that the nasdaq and wall street trying to avoid the sort of moment that they had a few weeks ago where a stock went up quickly, down quickly, gave people whiplash because the ordering systems were not prepared to deal with the traffic and what people wanted.
a headline from the wall street journal coming out saying they're trying to deal with people changing and canceling orders ahead of time because there are so many orders coming in. part of what we're dealing here -- imagine there was only one theater showing "the avengers" over the past week and everyone was trying to get in the narrow doors and waving their tickets around. they're trying to make sure there's not the equivalent of a stock market riot here as people try to get into the stock. they're having some trouble getting it started. >> jon, we'll keep you on standby and jump back with you as as soon as we see movement there and it makes history, joining the nasdaq. we want to find out what number it jumps in. lawyers connected to the trayvon martin case are reacting to the massive trove of evidence released by the florida state prosecutor's office. the release includes this last known video of the 17-year-old inside a sanford 7-eleven. an autopsy results revealed martin had traces of thc in his system, the active ingredient in marijuana. the 183-page document dump
includes photos of george zimmerman's injuries, which the police report shows consisted of a bloody nose and cuts on his head. we've also learned that sanford police concluded zimmerman could have avoided the encounter if he'd waited in his vehicle, as instructed, listening to how zimmerman's lawyer and the martin family attorney reacted to this conclusion. we heard them on the "today" show this morning. >> if he wouldn't have profiled trayvon martin and pursued him and confronted him, he wouldn't be in jail and more importantly trayvon martin would be living today. >> in every life event or experience, we can go back to one of the premises and say, had it not happened, had he not been going to the target store, had trayvon martin not been in the neighborhood, had he not got out of his car, we have to deal with what did happen and try to explain that away properly and in a courtroom. >> want to bring in kejts kofi, former federal prosecutor for the state of florida. i'm getting word, and we want to continue with this, but facebook has made its debut on the nasdaq. so, we'll get the numbers on
that in just a second and see exactly where it jumped in. you can see it going right now at $42.54, bouncing around there. we will go back to that. kejts, this is very important, though, about these documents that have been released in the trayvon martin/george zimmerman ordeal. zimmerman's attorney says that he's now received half of the evidence in the case against his client. there are several photos that are now being made public, showing injuries to zimmerman's nose and his head. also one witness account that claims martin was on top of zimmerman, quote, throwing punches, mma or mixed martial arts style. what do you think this makes for zimmerman's claim that he was in a fight for his life when he shot and killed trayvon martin? >> a lot of the evidence we're seeing is not going to make it any easier for the prosecution to overcome the claim of self-defense, especially it's becoming very clear that george zimmerman had some real injuries. on the other hand, there are so many things up in the air.
some of the question marks, some of the contradictions can always help the defense, as we know the prosecution has to prove guilt beyond a reasonable doubt. here's what we haven't seen in any of these recent waves of evidence. the statements george zimmerman made himself to the police authorities. the apparently videotaped reenactment george zimmerman provided to police. because what i think you'll see at the end of the day is that is there are some serious questions that the police have about the accuracy and the truthfulness of what george zimmerman was saying. and that, in fact, george zimmerman, i think the prosecutors clearly believe, went after trayvon martin. and they think that when george zimmerman gets on the stand some day to give his self-defense testimony, that the prosecution's going to be able to prove that in critical respects, he was lying. and if somebody is a defendant and gets on the witness stand, sometimes it becomes a one-witness trial. nothing else matters. and if the jury doesn't believe george zimmerman, they might very well end up convicting him.
>> kendall, the autopsy showing trayvon martin had traces of thc in his system. this is not a surprise because it has been reported he was suspended from school for having a baggy of marijuana residue. also thc can stay in your system for up to 90 days, i believe, so it doesn't mean he was on drugs that evening. how do you think this is going to impact the case against zimmerman? >> the traces are irrelevant. legally, there is nothing about whatever george zimmerman did or didn't do that was based upon his thinking that trayvon martin had been ingesting mayor wan that some previous time. i don't think it will be allowed to come before a jury. what's going to be critical is finding out who actually started the physical fight. it seems likely the jury will think zimmerman may have confronted martin first. the verbals aren't the key thing. it could be critically important to know who threw the first pinch. if somebody hits somebody else, that's a crime.
if george zimmerman threw the first punch, he does not have a right, having committed a crime, to invoke the stand your ground law for purposes of self-defense. big issues, critical issues, and right now more question marks than answers. >> kendall coffey, former federal prosecutor for the state of florida. we appreciate it. we to want go back now to breaking news, the developing story we're watching this morning about facebook finally showing up on the nasdaq. we want to go back to cnbc's jon fortt. break it down for us. where did it make its debut and how is it looking now? >> well, it was scheduled to open up at $38. it is above that. as we can see on the screen now, it's trading just above $40. that's a decent pop, just under 7%. we'll see where it goes from here. they finally managed to get the trading started after all that demand and they had trouble for more than 20 minutes actually getting the trading started. now it is started. now, hey, you know, buckle your seat belts. it's going to be a wild ride.
not only are people who want in on this stock but hedge funds and all sorts of people who want to take advantage of the retail investors, mom and pop, everyday people who want in on this stock, who are going to try to bet against those folks. it will be quite a ride from here. >> wild indeed with a lot of people watching to see how it's going to go. we'll continue to follow that story. jon fortt, thanks so much. we'll tell you how things go with facebook throughout this hour and its trading now on nasdaq finally. plus, some senators are going after facebook's co-founder. we'll explain why. and then world leaders are going to started their huddle at camp david tonight to tackle the euro crisis that are threatening banks overseas. i'm going to talk to vice president biden's former economic ver jarod bernstein about their strategy to provide a worldwide domino effect. the wheat in every mini-wheat has gotta be just right. perfect golden color. rich in fiber. my dad taught me, and i taught my son out there.
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you the breaking news we're following this morning. now welcoming facebook to the nasdaq and seeing that it's up by five right now after entering public trading around $38. you can see it there fluctuating right at $40. it's a big welcome to the public world of trading. it means big money for those at facebook and the social network's ipo has made the ceo mark zuckerberg a superly rich man. he's now worth $19 billion. that makes him richer than the founders of google, who took their company public a few years ago. the 28-year-old zuckerberg still has a long way to go before he gets as rich as bill gates or larry ellison of oracle. mark zuckerberg isn't the only person getting rich on the ipo. eduardo saverin congratulated zuckerberg for his steadfast resolution. he did that on facebook. his worth is $4 billion but the
taxes on that fortune have saverin in hot water with two top congressman. one joins us now, bob casey, a democrat from pennsylvania. you and chuck schumer say when saverin renounced his american citizenship and then moved to singapore, he skipped out on millions of dollars in taxes. as we have this information from bloomberg, the analysis, they're estimating saverin saved about $67 million in capital gains taxes. what do you say went wrong here and how are you trying to look to make sure this doesn't happen again? >> well, what we're trying to do here is to say very plainly that if someone leaves the country, that's what the word expateriate means to avoid substantial taxes, that's a determination the irs will make, that we can impose a tax of 30%, a capital gains tax on future investment earnings. in the future they'll have to pay taxes, whether it's
mr. saverin or anybody else, because they've had all the benefits of living in the united states and they've made a lot of money here. and if they give up their passport and leave the country, they should -- they should have to -- they should are to pay a tax. it's the right thing to do. and i would hope people who leave the country in that way and do it for tax purposes would understand why we're doing this. >> senator, how do you explain to people that would look at this and be like, wow, this is, you know, really against capitalism and the free market and this is sour grapes on the part of what's taking place on capitol hill when you see a success story like facebook and then an american citizen, free will, leaves the country, decides to move to singapore and renounce his american status? explain to people how this doesn't look like sour grapes. >> it's not at all. what's happening -- in this case mr. saverin decided to go to singapore and now he can have
future gains and not -- and not pay any taxes under the current system. we need to hold him accountable for the decision he made to reject the united states and to have the benefit of that revenue. a lot of people out there are hurting right now. and a lot of priorities. we've got to make sure we invest in. we should not allow someone who made a decision to reject the united states and still want to -- want to get their gains tax free. a lot of people make money in this country. and they pay their taxes. very rich people have to pay a lot of taxes. mr. saverin should be governed by the same set of rules. not his own rules where he claimed in one story yesterday that he was a global citizen. he didn't even consider himself a citizen of the united states. i think we know he was a citizen. he's rejected that. and i think this tax is very fair. >> regardless, he'll be a very wealthy man either way you cut it. pennsylvania senator bob casey. thanks for your time this
morning. keeping an eye on the nasdaq after facebook launched there this morning, roughly about 20 minutes ago. you can see that it's up by five points right now, trading at over $40. it entered the marketplace at $38. the other big story we're keeping an eye on this hour, developing news out of north carolina, the corruption trial of former presidential candidate john edwards. right now jury deliberations are under way. jurors are weighing nearly four weeks of testimony and the evidence to decide if edwards knowingly violated campaign finance laws by using more than $900,000 from wealthy donors to hide his pregnant mistress during his run for the white house in 2008. if convicted on all six counts, edwards faces a maximum sentence of 30 years in prison. nbc legal analyst joins me now from outside the courtroom. hampton, as we talk about the lawyers here for john edwards, they say his client's campaign was never required by the ftc to report the payments as that of campaign contributions. so, how daunting is that burden
of proof in a case like this? >> reporter: oh, it's been the government's stiffest challenge throughout this trial to show not just a knowing violation by john edwards but willful violation. he had to know the law. he had to know it was violating it. it was the centerpiece of the defense's closing arguments, not only did john edwards think payments to a mistress could be a campaign contribution but his compliance person and former federal elections commission chairman never considered money for a mistress to be a campaign contribution. >> as we understand it, the jury is scheduled to meet until 5:00 tonight. the judge is going to be checking on them then to see if they're close. if they're close, they'll be given extended period of time to see if they can come to a conclusion today. from what you've seen in this courtroom and the way the prosecution laid out its case, the way the defense wrapped its case up in three days, do you expect a quick return from the jury?
>> reporter: i think this jury having seen a packed courtroom, having seen all the national media attention, may be reluctant, particularly to reach a guilty verdict the same day they got the case. it may look like it might be, given the complexity of this case, a rush to judgment. i think a not guilty verdict, there's a possibility we could see it today. i think it's most likely we'll see a verdict after the weekend, monday or tuesday next week. there's never been a case like this. have you six counts, multiple questions under some of the counts. this is not an easy case to decide. >> again, it was not televised but yet we have all the details from inside the courtroom as if it were. hampton, great to see you this morning. thank you. we appreciate it. unexpected bloc of voters is coming to president obama's defense for same-sex marriage.
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welcome back, everybody. eight hours from now, president obama will stand outside the doors of camp david to welcome seven other world leaders from the most powerful economies in the world. the advance of the big g-8 summit, france's new president arriving at the white house a short time ago, the eurozone as we have been reporting for a while now in crisis, expected to be topic number one this weekend. but an hour ago, president obama spoke in washington about another g-8 priority, world hunger. >> tomorrow at the g-8, we're going to devote a special session to this challenge. we're launching a major new partnership to reduce hunger and lift tens of millions of people from poverty. >> want to bring in now and say good morning to jarod bernstein, msnbc and cnbc krint contributo former adviser to joe biden, fellow on budget and policies. as we talk about what's taking
place across europe, of course a lot of attention and eyes on greece as their pulling cash out of the bank and there's fear the country, the greek people that is pulling their cash out, is going to fall out of the eurozone and its currency. spain is facing its own banking crisis. out of the eurozone. the worldwide fears of this snowball effect. how crucial is it the leaders find common ground and take solid action this weekend especially when they take into account how president hole lande of france got elected on a socialist platform? >> i think it's extremely important. if i may wax psychocal for half a seconds, it's said that neurotic behavior is when you keep doing the same thing over and over again and expect a different result. at this point, it's pretty clear to most of the people in that room that the harsh austerity measures practiced by.of the countries kind of led by germany have not only failed but they're having the opposite effect that we need. instead of helping countries
come out from under their indebtsness, they're pushing them further into recession and making it worse. what needs to come out of here is a real pact around growth. >> when we talk about obviously what this means for america, what's your best guess the consequence here in the u.s. if the eurozone continues in the free fall that we've seen? >> my estimates for real gdp growth this year have already shaved about a quarter to a half a point off of our growth. that means instead of growing at say 2.58%, we'd grow at 2%. that's not trivlal but it's not the difference between growth and recession. however, i've kind of shifted to what's called a downside risk meaning if greece leaves and things really get chaotic, especially if it redo you understand to larger economies like spain and italy, it could be worse. i don't think we're looking at the u.s. pushed back into recession, but it's going to be ugly. >> jared bernstein, msnbc and
cnbc contributor. so after a rocky start, facebook's stock is now live. the stock price not trading at the highs investors had expected. it opened at 38. you can see right there it's at 3809 bouncing back and forth. the trading volume has been surging up to 150 million shares, about 15 minutes after its debut. the website born in the dorm room now a worldwide network of almost 1 billion people. we'll be right back right here on msnbc. olaf's pizza palace gets the most rewards of any small business credit card! pizza!!!!! [ garth ] olaf's small business earns 2% cash back on every purchase, every day! put it on my spark card! [ high-pitched ] nice doin' business with you! [ garth ] why settle for less? great businesses deserve the most rewards! awesome!!! [ male announcer ] the spark business card from capital one. choose unlimited rewards with 2% cash back or double miles on every purchase, every day! what's in your wallet? woman: what do you mean, homeowners insurance
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all right. so facebook did it, it made tats highly anticipated debut this morning on the nasdaq. mark zuckerberg opening the nasdaq this morning around 9:30. the stogs o stock was expected to start trading publicly at 11:00 a.m., but there was a pushback for the trading volume. didn't get started till about 11:30. coming to the marketplace at $38. right now it's trading above that price. now it's to the public domain.
that's going to wrap things up for me today. have a great weekend everybody. i'm going to see you back here on monday 11:00 a.m. eastern. we'll watch for that big ruling on the health care law from the supreme court and until then, follow me on. now with alex wagner coming up next and they're going to be talking about the wonder boy himself, mark zuckerberg. ♪ surf's up everybody get your boards and your wetsuits ♪ free-credit-score-dot-com's gonna direct you ♪ ♪ to check your credit score before it gets too late ♪
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