morgan's trading loss that multibillion dollar trading loss those are j.p. morgan's main regulators now meanwhile it was two other regulators we heard from on capitol hill today that as easy and this the f.t.c. on derivatives reform and of course j.p. morgan was a large focus of the hearing now officials said investigations of j.p. morgan are under way at both of their agencies fittingly news comes out that j.p. morgan has hired a former s.e.c. enforcement chief to assist the firm and probes of its loss on credit derivatives trading according to reports how fitting this just all is one insists he was big circle to talk more about it william k. black is here he's associate professor of economics and law at the university of missouri kansas city and it's really so great to talk to you because you are the expert on all of these regulatory issues which just never seem to make sense when we have something like a hearing on the hill today first of all thanks so much for being on the show. thank you ok so professor black today we hear on the hill the f.c.c. and a c

morgan and now we have j.p. morgan chase again in the senate with the irony it all just came coming back around and one of the things of course we've seen from this is a push or a question about if more regulation is necessary or if this is exhibit a for the volcker rule and when we come back you have some very interesting insight into how that is impacting smaller firms the not too big to fail firms the not jamie diamond of the world the not j.p. morgan's and our viewers are not going to want to miss it so everybody stay tuned we'll have more bob english contributing editor for zero hedge and economic policy journal dot com also still ahead while the g. eight leaders were all business about job growth or maybe it seems the business of employment is changing we give you our three cents and nine to five families change but first your closing market numbers. drives the world the fear mongering used by politicians who makes decisions to break through it's already been made who can you trust no one who is you view w

morgan through getting credit from j.p. morgan which you know as you mentioned these banks provide because they have all this cheap money they provided to all their customers and the whole thing morphs into this huge snowball of derivatives that keep going down and down and down but it does break down we broke down in lehman brothers and it broke down of bear stearns where the essentially the hedge funds a banker j.p. morgan i think was one of the biggest beneficiaries of attacking bear stearns yes with short sales they acquire those assets for pennies on the dollar and we see this kind of using financial instruments as weapons yet now they're being so my question is j.p. morgan have used weapons to acquire assets on the cheap and they've used goldman's use of agrees to acquire greek assets on the cheap i'm just saying isn't there somebody out there with the kohona to take on j.p. morgan why can't they attack morgan to take that stock down to zero you know it could be a desk at citibank you know that there could be an insti

morgan because j.p. morgan is a very big bank it's the largest bank by assets the question is what if it's twenty billion dollars and what if there are four or five more trades like this that are so big that need to be unwound what if there is an other exoticness risk like a crisis in europe or something that compounds the issue so in this situation does j.p. morgan have capital buffers that are appropriate. well they claim yes supposedly the regulators claim yes the question that arises out of the regulators allow this kind of thing to go on in the first place and how do they get into this box i think the answer the real answer is nobody knows jamie diamond may not know that's the scary part is that i'm not convinced that he actually knows what he's got within his own bank imagine that the best banker in the whole world doesn't know what's and all the little black boxes that you say may be lurking i guess the question bigger picture is what this says to you about regulation the need for regulation or mo

morgan's trading loss that multibillion dollar trading loss those are j.p. morgan's main regulators now meanwhile it was two other regulators we heard from on capitol hill today the as easy and as the f.t.c. on derivatives reform and of course j.p. morgan was a large focus of the hearing now officials said investigations of j.p. morgan are under way at both of their agencies fittingly news comes out that j.p. morgan has hired a former s.e.c. enforcement chief to assist the firm and probes of its loss on credit derivatives trading according to reports how fitting this just all is one insists he was big circle to talk more about it william k. black is here he's associate professor of economics and law at the university of missouri kansas city and it's really so great to talk to you because you are the expert on all of these regulatory issues which just never seem to make sense when we have something like a hearing on the hill today first of all thanks so much for being on the show. thank you ok so professor black today we hear on the hill the f.c.c. and a c f

morgan and now we have j.p. morgan chase again in the senate with the irony it all just came coming back around and one of the things of course we've seen from this is a push or a question about if more regulation is necessary or if this is exhibit a for the volcker rule and when we come back you have some very interesting insight into how that is impacting smaller firms the not too big to fail firms the not jamie diamond of the world the not j.p. morgan's and our viewers are not going to want to miss it so everybody stay tuned we'll have more bob english contributing editor for zero hedge and economic policy journal dot com also still ahead while the g. eight leaders were all business about job growth or maybe it seems the business of employment is changing we'll give you our three cents and nine to five families change but first your closing market numbers. drives the world the fear mongering used by politicians who makes decisions to break through that sort of to be made who can you trust no one who is you wh

morgan? >> it's hard to make a positive out of this for j.p. morgan. i'd say a company's management that really knows how to handle what's obviously negative news. they got it out in the open. they're on the confers call right now. when the news first broke the stock was down to 6%. it's rallied to being down about 3%. remember this stock was $45, $46. it's pulled back 15%, 20% already. there is value in j.p. morgan. when the dust settles here i am looking at the stock. i am long a very small position. >> i'm long with you, i completely disagree with that. j.p. morgan is not telling us they're out of the position. they're telling us it's a bad position that's losing money. it's a volatile market and we still have the position. the fact that they still have the position doesn't give me any comfort as a shareholder or any incentive to step in and buy more. >> you'd have to have some level. >> absolutely not. not knowing at this point if they still have the position. that's the problem. >> value's not a catalyst. this is a new risk. valuation is not a cat

morgan first i want to talk about the nature of this position from what i understand j.p. morgan was effectively long corporate debt but they did so by going short on credit protection on that debt so it's kind of like a double short if you will so what is the advantage of structuring a trade like this and is it mainly to hide risk and expand leverage because of course the average person is just going to glaze over talking about this so it's kind of get to you know the bigger picture here. we need to find the same for all of this was done i mean i know i find this enthralling heidi i just don't know how many you know average folks actually do and i think that it's an important lesson to not be lost on anybody. exactly so for those who don't find it is riveting as we do the basic idea here is indeed that they wanted to short a short which would mean going along ok so it's a very complicated they used an index to do it we can all basically understand the idea of the index and it had really strong corporate bonds like fannie mae freddie mac. c.v.s. that kind of thing so in or

morgan stock up on fire out of j.p. morgan stock up. i like that i go there well dan for if this guy had his house burgles by j.p. morgan chase also kept copies of important documents inside the house and they were also taken experts said in case of a fire or burglary by j.p. morgan chase it's a good idea to have copies of important documents in a digital form or a safety deposit box but this is something you and i have also talked about not only could j.p. morgan chase lloyd blankfein and jamie diamond type guys steal your stuff but you know you need gold silver are diamonds and in your co it's time to start thinking about that because this is the blitzkrieg coming these are the guys taking your stuff and there's nobody there to protect you right so they steal all your stuff and then they'll sell you insurance to pretty good protection against them spree stealing all your stuff is j.p. morgan bankrupt the community gomery alabama and then everyone's on the street and then they process all of the machinery behind food stamps so they try

morgan stock no problem for all of j.p. morgan stock up. i like that i go there well dan for if this guy had his house burgles by j.p. morgan chase also kept copies of important documents inside the house and they were also taken experts said in case of a fire or burglary by j.p. morgan chase it's a good idea to have copies of important documents in a digital form or a safety deposit box but this is something you and i have also talked about not only could j.p. morgan chase lloyd blankfein and jamie diamond type guys steal your stuff but you know you need gold silver artwork diamonds and in your co it's time to start thinking about that because this is the blitzkrieg coming these are the guys taking your stuff and there's nobody there to protect you right so they steal all your stuff and then they'll sell you insurance to prevent protection against them spree stealing all your stuff it's kind of like j.p. morgan bankruptcy a community like gomery alabama and then everyone's on the street and then they process all of the machinery behind foo

morgan stock no problem of j.p. morgan stock up. i like that i go there well dan for if this guy had his house burgles by j.p. morgan chase also kept copies of important documents inside the house and they were also taken experts said in case of a fire or burglary by j.p. morgan chase it's a good idea to have copies of important documents in a digital form or a safety deposit box but this is something you and i have also talked about not only could j.p. morgan chase lloyd blankfein and jamie diamond type guys steal your stuff but you know you need gold silver artwork diamonds and in your co it's time to start thinking about that because this is the blitzkrieg coming these are the guys taking your stuff and there's nobody there to protect you right so they steal all your stuff and then they'll sell you insurance to prevent protection against them spree stealing all your stuff is j.p. morgan bankrupt the community gomery alabama and then everyone's on the street and then they process all of the machinery behind food stamps so they try

morgan stock put on fire by j.p. morgan stock up. i like that i go there well dan for if this guy had his house burbles by j.p. morgan chase also kept copies of important documents inside the house and they were also taken experts said in case of a fire or burglary by j.p. morgan chase it's a good idea to have copies of important documents in the digital form or a safety deposit box but this is something you and i have also talked about not only could j.p. morgan chase lloyd blankfein and jamie diamond type guys steal your stuff but you know you need gold silver are diamonds in your co it's time to start thinking about that because this is the blitzkrieg coming these are the guys taking your stuff and there's nobody there to protect you right so they steal all your stuff and then they'll sell you insurance to prevent protection against them stealing all your stuff is j.p. morgan bankrupt or community gomery alabama and then everyone's on the street and then they process all of the machinery behind food stamps so they try to hedge the

morgan and other banks have made many times. >> anybody inside j.p. morgan should have said "hang on a second, do we want to become the entire market? we've become so big we're swamping everything else." it distorts prices and creates risks. you have to ask why did no one spot that. >> rose: we continue with clay christensen. a harvard business school professor and author of a new book called "how will you measure your life." >> what you really need to understand is what causes these things to happen. what causes that company to be successful and if you are in a different situation will the same or different result happen? and so trying to understand what causes happiness just as what causes success in the business world that's what we're about. >> rose: we conclude this evening with charles simonyi. he is a software programmer who helped develop word, became a philanthropist and a space traveler. >> i don't think any of us would have thought that in the first decade of the 21st century private individuals could go to space and participate in space mi

morgan stock up on fire and j.p. morgan stock up. i like that i go there well dan for if this guy had his house burgles by j.p. morgan chase also kept copies of important documents inside the house and they were also taken experts said in case of a fire or burglary by j.p. morgan chase it's a good idea to have copies of important documents in the digital form or a safety deposit box but this is something you and i have also talked about not only could j.p. morgan chase lloyd blankfein and jamie diamond type guys steal your stuff but you know you need gold silver artwork diamonds and in your co it's time to start thinking about that because this is the blitzkrieg coming these are the guys taking your stuff and there's nobody there to protect you right so they steal all your stuff and then they'll sell you insurance to pretty good protection against them spree stealing all your stuff is j.p. morgan bankruptcy a community like gomery alabama and then everyone's on the street and then they process all of the machinery behind food stamps

morgan story how j.p. morgan's hedge blew up in one easy chart now the chart that they show basically we're just going to say it's showing delta collapse and you see that downward slope there that's j.p. morgan was losing money during that because the first major drop right there you see that's from q.e. one so every time the fed dumped money into the markets it was actually costing j.p. morgan a lot of money and they had to take on more hedges to zero hedge right well greed and avarice were likely strong drivers that blindfold a brutal excel in his colleagues to the fact that they were getting too big and that the position was out of control every means fact that it was a combination of the fed e.c.b. actions to squelch the stomach risk entirely and a total reliance on models that is now bleeding to every other credit index and just as we said leading to increased losses at j.p. morgan. hedge they call ahead to avoid compliance with the law yeah but the important thing here max is this is collateral damag

on j.p. morgan to say wait a minute there's something wrong here and keep in mind they're clearing for this firm and they know what the firm was doing right and i want to get to the bigger picture here because because the conclusion you draw from these kind of two factors that the trustee can't get money from the third parties also creditors are protected by the safe harbor law you come to this conclusion which is the. is this as a result of these two defenses working in tandem today financial institutions can aid frauds such as made off at m.f. global to mention just a few without being brought to task in civil proceedings and once the perpetrator of the fraud bio's for bankruptcy the individual victims often are left without any means of seeking redress and the bad actors among management and other customers literally walk away so i guess i purchased want you to explain how you believe financial institutions have aided frauds in these cases well if you're the bank that's financing a broker

we begin tonight with j.p. morgan. investors dumped the bank's shares today, reacting to that surprising revelation of a big trading bet gone wrong. j.p. morgan stock plunged 10%. that sell off hung over wall street today. the dow lost 34 points, the nasdaq was almost unchanged and the s&p fell more than 4.5 points. erika miller has a closer look at the potential fallout for j.p. morgan. >> reporter: j.p. morgan's $2 billion trading loss may bring back memories of the 2008 financial crisis. but this time, most analysts think the damage will be contained. the situation today is quite different than 2008, when most big banks were massively overleveraged and had far less reserves. for that reason, there's less risk to the banking system. let's be clear: a $2 billion loss is nothing to sneeze at, but it's less than 1% of last year's pre-tax profit. so the embarrassment will likely last longer than the damage to its balance sheet. >> it's a financial hit and it's a reputational hit. the financial hit is about $2 billion and

morgan first i want to talk about the nature of this position from what i understand j.p. morgan was effectively long corporate debt but they did so by going short on credit protection on that debt so it's kind of like a double short if you will so what is the advantage of structuring a trade like this and is it mainly to hide risk and expand leverage because of course the average person is just going to glaze over talking about this so it's kind of get to you know the bigger picture here. we need to find this i'm throwing this was done everyone is writing and i find this enthralling heidi i just don't know how many you know average folks actually do and i think that it's an important lesson to not be lost on anybody. exactly so for those who don't find it is riveting as we do the basic idea here is indeed that they wanted to short a short which would mean going along ok so it's a very complicated they used an index to do it we can all basically understand the idea of the index and it had really strong corporate bonds like fannie mae freddie mac. c.b.s. that kind of thing

morgan and other banks have made many times. >> anybody inside j.p. morgan should have said "hang on a second, do we want to become the entire market? we've become so big we're swpingverything else." it distorts prices and creates risks. you have to ask why did no one spot that. >> rose: we continue with clay christensen. a harvard business school professor and author of a new book called "how will you measure your life." >> what you really need to understand is what causes these things to happen. what causes that company to be successful and if you are in a different situation will the same or different result happen? and so trying to understand what causes happiness just as what causes success in the business world that's what we're about. >> rose: we conclude this evening with charles simonyi. he is a software programmer who helped develop word, became a philanthropist and a space traveler. >> i don't think any of us would have thought that in the first decade of the 21st century private individuals could go to space and participate in space missio

morgan first i want to talk about the nature of this position from what i understand j.p. morgan was effectively long corporate debt but they did so by going short on credit protection on that debt so it's kind of like a double short if you will so what is the advantage of structuring a trade like this and is it mainly to hide risk and expand leverage because of course the average person is just going to glaze over talking about this so it's kind of get to you know the bigger picture here. we need to find the same for all of this was done i mean it is lighting and i find those enthralling heidi i just don't know how many you know average folks actually do and i think that it's an important lesson to not be lost on anybody. exactly so for those who don't find it is riveting as we do the basic idea here is indeed that they wanted to short a short which would mean going along ok so it's a very complicated they used an index to do it we can all basically understand the idea of the index and it had really strong corporate bonds like fannie mae freddie mac. . that kind of thing

morgan stock could end up on fire and j.p. morgan stock up. i like that i go there well dan for if this guy had his house burgles by j.p. morgan chase also kept copies of important documents inside the house and they were also taken experts said in case of a fire or burglary by j.p. morgan chase it's a good idea to have copies of important documents in a digital form or a safety deposit box but this is something you and i have also talked about not only could j.p. morgan chase lloyd blankfein and jamie diamond type guys steal your stuff but you know you need gold silver are diamonds in your co it's time to start thinking about that because this is the blitzkrieg coming these are the guys taking your stuff and there's nobody there to protect you right so they steal all your stuff and then they'll sell you insurance to prevent protection against them stealing all your stuff it's kind of like j.p. morgan bankrupt the community gomery alabama and then everyone's on the street and then they process all of the machinery behind food stamps so they tr

are investigating j.p. morgan. what do you expect they're going to find? >> that, i leave up to the regulators and the investigators. from my perspective on behalf of the 700,000 pensioners ultimately the taxpayers, we have to exercise fiduciary responsibilities. when we see a loss of this magnitude which will affect our shares and perhaps more importantly, if the practices don't change because the claw back provisions are not followed through upon or are hollow, then we might see another loss in the future. >> susie: does that mean there's a chance you might sell your stake in the near future? >> as long term investmentors our city pension funds don't have a real option of selling our shares. what we do is work with major fund managers. we don't pick and choose individual stocks which is more reason why we need to exercise fiduciary responsibility to ensure that decision making within big company that is we own and the corporate governance structure is for the long term benefit of all shareholders. >> susie: besides j.p. morgan retail sales. budged in apr

morgan stock up on fire out of j.p. morgan stock up. i like that i go there well dan for if this guy had his house by j.p. morgan chase also kept copies of important documents inside the house and they were also taken experts said in case of a fire or burglary by j.p. morgan chase it's a good idea to have copies of important documents in the digital form or a safety deposit box but this is something you and i have also talked about not only could j.p. morgan chase lloyd blankfein and jamie diamond type guys steal your stuff but you know you need gold silver artwork diamonds and in your co it's time to start thinking about that because this is the blitzkrieg coming these are the guys taking your stuff and there's nobody there to protect you right so they steal all your stuff and then they'll sell you insurance to pretty good protection against them spree stealing all your stuff is j.p. morgan bankruptcy or community gomery alabama and then everyone's on the street and then they process all of the machinery behind food stamps so they try

on j.p. morgan to say wait a minute there's something wrong here and keep in mind they're clearing for this firm and they know what the firm was doing right and i want to get to the bigger picture here because because the conclusion you draw from these kind of two factors that the trustee can't get money from that's their parties also creditors are protected by the safe harbor law you come to this conclusion which is the. is this as a result of these two defenses working in tandem today financial institutions can aid frauds such as made off at m.f. global to mention just a few without being brought to task in civil proceedings and once the perpetrator of the fraud files for bankruptcy the individual victims often are left without any means of seeking redress and the bad actors among management and other customers literally walk away so i guess i purchased want you to explain how you believe financial institutions have aided frauds in these cases well if you're the bank that's financing a brok

on j.p. morgan to say wait a minute there's something wrong here and keep in mind they're clearing for this firm and they know what the firm was doing right and i want to get to the bigger picture here because because the conclusion you draw from these kind of two factors that the trustee can't get money from that's their own parties also creditors are protected by the safe harbor law you come to this conclusion which is the. is this as a result of these two defenses working in tandem today financial institutions can aid frauds such as made off at m.f. global to mention just a few without being brought to task in civil proceedings and once the perpetrator of the fraud filed for bankruptcy the individual victims often are left without any means of seeking redress and the bad actors among management and other customers literally walk away so i guess i first just want you to explain how you believe financial institutions have aided frauds in these cases well if you're the bank that's financing y

morgan c.e.o. jamie dimon could tell us a thing or two about only if you're j.p. morgan you're not going to talk about that when you say lose two billion dollars trading with depositors money or excuse me hedging as jamie dimon refers to it now if you're jamie dimon you're going to try to play this off as normal danke business but as our guest you're records asked in a recent op ed what purpose was served no new loans were created no new jobs were created absolutely nothing of value to society was derived from this trade at best it was a form of gambling for the whale and it's call exe next time they should just go to vegas and skip the drama now he goes further saying that jamie dimon should resign from the bank altogether he is here to talk about it jim rickard senior managing director at tangent capital partners joins us now he's also author of the bestselling book currency wars the making of the next global crisis and we are always so happy and honored when you're in d.c. and where we get graced with your presence so first thanks so much for being on the show

morgan c.e.o. jamie dimon could tell us a thing or two about only if you're j.p. morgan you're not going to talk about that when you say lose two billion dollars trading with depositors money or excuse me hedging as jamie dimon refers to it you know if you're jamie dimon you're going to try to play this off as normal business but as our guest your records asked in a recent op ed what purpose was served no new loans were created no new jobs were created absolutely nothing of value to society was derived from this trade at best it was a form of gambling for the whale and as call exe next time they should just go to vegas and skip the drama now he goes further saying that jamie dimon should resign from the bank altogether he is here to talk about it jim rickard senior managing director at tangent capital partners joins us now he's also author of the bestselling book currency wars the making of the next global crisis and we are always so happy and honored when you're in d.c. and where we get graced with your presence so first thanks so much for being on the show today

we don't have any regulatory oversight of j.p. morgan chase, national association, the bank. we will, i think at some point when they register as a swap dealer later this year but they're not currently registered as a swap dealer. we have oversight of future commissions merchant but that doesn't -- >> are you saying no man's land, nothing, that there is things that have not crystalized in a regulatory fashion yet over such a big bank? >> the bank is over seen by bank regulators, but under dodd-frank the market regulators, we will stand up and oversee swap dealing activity in a bangor an affiliate of a bank and securities based swap dealing activity but you're right, currently the american public is not protected in that way. >> were any of the trades conducted through j.p. morgan's future commission merchant? >> not that i am aware of. it may be upon further review we'll find but today the knowledge is no. >> thank you, mr. chairman. >> senator menendez. >> thank you, mr. chairman. at the last hearing the committee had on mf bloebl i asked the mf global trustees, from free an

morgan c.e.o. jamie dimon could tell us a thing or two about only if you're j.p. morgan you're not going to talk about that when you say lose two billion dollars trading with depositors money or excuse me hedging as jamie dimon refers to it you know if you're jamie dimon you're going to try to play this off as normal danke business but as our guest you're records asked in a recent op ed what purpose was served no new loans were created no new jobs were created absolutely nothing of value to society was derived from this trade at best it was a form of gambling for the whale and it's call exe next time they should just go to vegas and skip the drama now he goes further saying that jamie dimon should resign from the bank altogether he is here to talk about it jim rickard senior managing director at tangent capital partners joins us now he's also author of the bestselling book currency wars the making of the next global crisis and we are always so happy and honored when you're in d.c. and where we get graced with your presence so first thanks so much for being on the

she covers j.p. morgan and banking for bloomberg news. she joins us from tampa, where the j.p. morgan annual shareholder meeting kicks off tomorrow. dawn, thanks for joining us. explain a little more for us, ina drew, how central a role she played in all of this. and are our departures expected? >> she didn't necessarily have a central role in conducting the trades or the positions that the bank had, that lost all the money. but she was the person that oversaw this office. the office in london that was so problematic for j.p. morgan reported up to drew. apparently drew had no idea what was going on or how bad things were. in fact, when the bank first started discovering how bad the losses were, she initially argued to try to keep the hedge on so that the bank could maybe see if it could wait it out a little bit. but that was based on wrong information because the lond often office just wasn't giving her all of the facts. >> warner: what about the people who actually ran the london office, who were conducting these trades including the so-called london whale, the trader who actu

the head of j.p. morgan, jamie diamond, faced j.p. morgan shareholders on tuesday and survived. positions as chairman and ceo intact, as well as a $23 million bonus. j.p. morgan, however, is not in the clear. both the sec, the securities and exchange commission, and the fbi have launched probes. question, is obama right? if the vocal rule were already in effect, would it have prevented j.p. morgan's $2.3 billion loss, pat buchanan? >> i think it might have, because i understand jamie diamond set up this office in london and failed to oversee it, and the losses are as you mentioned $3 billion. but they may go to 5 billion. i think what needs to be done, john, and this is an example of it, is we got to go back to what teddy roosevelt did with oil. some banks that are too big to fail should be broken up into smaller banks, secondsly the banks where we guarantee deposits and bankers and we come in and bail them out, they should be restricted in what they can do. as for the bucaneers that go out there and want abet on the -- derivatives and the rest of it, they ought to be allowed to

she covers j.p. morgan and banking for bloomberg news. she joins us from tampa, where the j.p. morgan annual shareholder meeting kicks off tomorrow. dawn, thanks for joining us. explain a little more for us, ina drew, how central a role she played in all of this. and are our departures expected? >> she didn't necessarily have a central role in conducting the trades or the positions that the bank had, that lost all the money. but she was the person that oversaw this office. the office in london that was so problematic r j.p. morgan reported up to drew. apparently drew had no idea what was going on or how bad things were. in fact, when the bank first started discovering how bad the losses were, she initially argued to try to keep the hedge on so that the bank could maybe see if it could wait it out a little bit. but that was based on wrong information because the lond often office just wasn't giving her all of the facts. >> warner: what about the people who actually ran the london office, who were conducting these trades including the so-called london whale, the trader who actual

she covers j.p. morgan and banking for bloomberg news. she joins us from tampa, where the j.p. morgan annual shareholder meeting kicks off tomorrow. dawn, thanks for joining us. explain a little more for us, ina drew, how central a role she played in all of this. and are our departures expected? >> she didn't necessarily have a central role in conducting the trades or the positions that the bank had, that lost all the money. but she was the person that oversaw this office. the office in london that was so problematic for j.p. morgan reported up to drew. apparently drew had no idea what was going on or how bad things were. in fact, when the bank first started discovering how bad the losses were, she initially argued to try to keep the hedge on so that the bank could maybe see if it could wait it out a little bit. but that was based on wrong information because the lond often office just wasn't giving her all of the facts. >> warner: what about e people who actually ran the london office, who were conducting these trades including the so-called london whale, the trader who actual

morgan stock is worth if you're buying j.p. morgan stock a suicide mission just blow your brains out a lot cheaper well of course it's possible to have a lobbyist were exaggerating their findings to make the impact of the rule to look more severe than it would be predicting dire scenarios is common in letters opposing the financial overhaul in fact the footnotes accompanying the exposure study did flag areas of imprecision as a result exposures under the new rules may turn out to be much lower than lobbyists say and implementing the rules that would therefore not be disruptive now that the fed did the stress test and fifteen of the nineteen of the banks passed in an extreme scenario even while still maintaining their dividends so. how is that possible and this is what the lobbyist group for the banks is arguing that they need to see this for real from the fed one of four of them failed this stress test well one hundred percent of the banks in the united states failed the stress test for two thousand and eight so who are these f