Postal Service Cancels Saturday Mail; Facebook IPO Fine

Aaron Task analyzes the morning business headlines.
3:00 | 02/06/13

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Transcript for Postal Service Cancels Saturday Mail; Facebook IPO Fine
Your latest in business and finance. BBC news. And watch -- live coverage. And ringing the bell this morning for -- cascade. Makers would product reviews of building materials and the company -- celebrating. Its IPO. -- from the lumber yards this morning to open up. Trading today Wednesday February 6. Everyone of them Cutler in New York breaking news this Wednesday morning the Postal Service is discontinuing -- delivery of mail on Saturdays. Joining me now. To discuss the change along with some of the business headlines this Wednesday morning Aaron task editor in chief -- Yahoo! finance also the host the daily -- -- Wednesday morning TO must start with that announcement of the Postal Service -- it's gonna continue to deliver packages on Saturday. Not -- though is this a move by the post office that is going to stop the blood loss there or isn't just that one more step in this painful death. Well and good morning and I think it's a little bit of both I mean they're saying -- -- they're gonna save 25 million dollars. -- by stopping this but they're losing sixteen billion dollars a year. So it will stop the -- a little bit but it's not gonna stop the bleeding and that's that the sad reality. Is it this an -- there's there's a debate about this. Has the post office been mismanaged or as -- simply just spend not able to adapt the sign of the of the times email automatic bill pay. Read our I would say both -- means you know clearly email on automatic bill today. The -- itself has lessened the demand for males there's about 25% met less mail now than there was five years ago. But they've also been mismanaged. So there's less volume but they haven't really changed the price mean I know people complain when the price of logistic postage stamp goes up -- you just did and -- of a penny. And compared to the rest of the world we have it pretty cheap when it comes to our Postal Service and to meet a fact you can send a letter across the street. For the same price you can -- to Hawaii makes no sense at all from a business perspective. Well -- well and other business on that what about FedEx -- UPS they -- the John Bennett makes and catch up this change. We'll look at means that that's exactly -- FedEx and UPS they charge you more if you want better service the post office -- -- -- and should do the same and if you want. You know overnight guarantee delivery from -- it costs more then he's sending it for three days in the post office has those kind of services -- but only for packages. They should consider something similar similar kind of tiered structure for regular postage I personally would pay more. And I think a lot of Americans would pay more to to maintain that continuity of service that we get from the post office. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- A sub prime mortgage investments now from what we know how strong of a case is this against S and -- Well I think it's very strong and -- the Justice Department. Went ahead with the case. And they only brought against S&P they did not bring anything comparable against Moody's or Fitch. Which are in the same business and S&P and essentially -- the same toxic securities as triple -- or their version of AAA. I'm so in the -- they have some damning emails from S&P executives. Or lower level big executives I should get -- going back to 2003 where they're saying hey. The model that we're using just doesn't make sense of -- stuff for -- Tripoli -- in triple a you know the question and I don't know the answer this is do they have. The top executives of the company. Responding saying yeah we know it doesn't make sense but we wanna do it anyway that's really going to be the smoking gun and those are going back to 2003 so what is BS and what is -- some he's best defense. Well as it is best offense and output air quotes from best right that they stay behind the First Amendment they obviously say that there are expressing an opinion. On -- security and there there's no guarantee that they're gonna be right and they're just using other their best and now assisted make -- determination. That's historically they've they've hidden -- I'll say hidden behind First Amendment essentially claimed that there they did the same thing that journalists do you. My response that is always journalists never make the kind of money -- S&P and Moody's made you know when the good times are good. And what's different about these structures securities. Is S&P. Essentially colluded with the banks with Wall Street to say -- how we structure. These -- so they'll get your AAA rating. That's that's a whole different ball game that's not what that this is historically been line. -- in the in the NASDAQ. Is in talks to pay a fine of about five million dollars. Our offer that botched FaceBook IPO five million dollars in the grand scheme as things seems relatively small is -- a symbolic gesture. -- Duncan I think you can remove the relatively it is -- on its. It's tiny and it's it's really had forgotten about -- -- you've argued that the people got here was the biggest auction in the history of the world. And the NASDAQ screwed it up. And you know five million dollars -- a lot more money was lost by people not knowing what there were. Whether they were getting filled or not whether or -- they'd bought the stock or not. And it was it was a huge black guy for the NASDAQ for sure is the market satisfied with any kind of safeguards that are put in place since that happened. I'm gonna go we know. I mean -- are reassuring. It looked in a note did you know no technology is full proof and you know there was the -- IPO which was a smaller deal a couple months before -- that also was botched partially because of problems with bats but. You know the more technology the more layers we add on here than them the more there is a risk that sums that go wrong somewhere along the food chain in the -- cascades down. -- and we are we live in a world that is the communication. And people expect to be able to -- very quickly if not instantly. And we anything breaks down it takes -- a long time to figure out where the problem is and get stuff and get the machines running again. -- -- -- trading places when they get those machines are -- and get mr. backing here you know that's kind of what happens in an I suspect we will see stuff like that again. I think it also inevitably there were actually traders on the lower facial traits that -- on these beings involved -- your site -- changes that happen next so Dell is gonna go private now Michael Dell. Buying back his own company for elected 24 point four billion dollars or something like that HP is now coming out with a response to this kind of a move -- for a long time those to have been head to head -- Obviously they've each been facing their own problems recently what's HP's and about -- private. -- this is pretty awesome these people at a state yesterday and and this is a partial -- saying you know they'll faces a very tough road ahead. They are facing quote an extended period of uncertainty and transition which is not going to be good for its customers. And HP plans to take full advantage and uses a very aggressive stance by while he. And you know I think it for them because -- the last couple years they've been spending a lot of time on the defensive -- with their own internal problems. And now they see an opportunity to take more market share we -- as you say major rival and they're going for it so. I say good for them but it they -- took off the gloves here for sure what do they have some concrete strategies are coming out with what how -- -- -- -- other. Pick up that market share. Well HB and he basically HP is saying look the company's going into a transition fees and you don't know what's -- be on -- sales -- but we HP ourselves forces here. -- -- the customer we're gonna serve all you have to worry that we're not going to be here tomorrow and there may be some truth to that -- -- you know companies -- -- private. Typically there are layoffs I don't know if that's going to be the case it -- but -- their lives and -- your customer Abdel. And your -- your means salesperson goes away. You might think you do what you really want is still do business -- this company. One last look at it out of corporate let's go air and the Dow down about fifties six points thirteen 1924. -- -- from Yahoo! finance. -- thanks so much have a great day. -- --

This transcript has been automatically generated and may not be 100% accurate.

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