morgan j.p. morgan made the statement you know we're going to leave but be sure that the vatican has still have an account open and this is just you know like some noise from you know the vatican is not in j.p. morgan i don't trust and i think that by nestor is interested in their gold and silver right and so let's return to buy the masters for a second because the london desk of j.p. morgan has been hemorrhaging money spinning out of control they want for that two billion dollar loss that jamie dimon referred to as an asymmetric hedge which of course is an oxymoron you can't have an asymmetric hedge either hedge or you have a directional benefit but you. and have an estimate treat people out well clearly a french idiomatic expression i'm not familiar with however. pierre. there are some estimates that this two billion dollar hole is now it's a four billion six billion i for seen estimates it's twenty billion is it just another lehman brothers is it going to zero on the stock well i have the feel

morgan j.p. morgan misstatement you know we're going to leave but be sure that diverts going has still have an on the killed opened this is just you know like some noise from you know the vatican is not in j.p. morgan i don't trust and i think that but investor is interested in their gold and silver right and so let's return to buy the masters for a second because the london desk of j.p. morgan has been hemorrhaging money spinning out of control they want for that two billion dollar loss that jamie dimon referred to as an asymmetric hedge which of course is an oxymoron you can't have an asymmetric hedge either hedged or you have a directional benefit but you can have an estimate treaty put well clearly a french idiomatic expression i'm not familiar with however. pierre. there are some estimates that this two billion dollars hole is now it's a four billion six billion i for seen as. it's twenty billion is it just another lehman brothers is it going to zero on the stock well i have the feeling that

morgan j.p. morgan made the statement you know we're going to leave but be sure that diverts going has still have an account opened this is just you know like some noise from you know the vatican is not in j.p. morgan i don't trust and i think that by nestor is interested in their gold and silver right and so let's return to buy the masters for a second because the london desk of j.p. morgan has been hemorrhaging money spinning out of control they want for that two billion dollar loss that jamie dimon referred to as an asymmetric hedge which of course is an oxymoron you can't have an asymmetric hedge either heads or you have a directional benefit but you can have an estimate. but clearly a french idiomatic expression i'm not familiar with however. pierre. there are some estimates that this two billion dollars hole is now it's a four billion six billion eye for seen as. it's twenty billion is it just another lehman brothers is it going to zero on the stock well i have the feeling that's my intuiti

morgan j.p. morgan misstatement you know we're going to leave but be sure that diverts going has still have an account opened this is just you know like some noise from you know the vatican is not in j.p. morgan i don't trust and i think that by nestor is interested in their gold and silver right and so let's return to buy the masters for a second because the london desk of j.p. morgan has been hemorrhaging money spinning out of control they want for that two billion dollar loss that jamie diamond referred to as an asymmetric hedge which of course is an oxymoron you can't have an asymmetric hedge either heads or you have a directional bit but you can have an estimate treaty but. clearly a french idiomatic expression i'm not familiar with however. pierre. there are some estimates that this two billion dollars hole is now it's a four billion six billion eye for seen estimates it's twenty billion it's just another lehman brothers is it going to zero on the stock well i have the feeling that's my int

morgan j.p. morgan misstatement you know we're going to leave but be sure that the vatican has still have an undercount open and this is just you know like some noise from you know the vatican is not in j.p. morgan i don't trust and i think that by nestor is interested in their gold and silver right and so let's return to buy the masters for a second because the london desk of j.p. morgan has been hemorrhaging money spinning out of control they want for that two billion dollar loss that jamie dimon referred to as an asymmetric hedge which of course is an oxymoron you can't have an asymmetric hedge either heads or you have a directional bit but you can have an estimate treaty put well clearly a french idiomatic expression i'm not familiar with however. pierre. there are some estimates that this two billion dollars hole is now it's a four billion six billion i for seen estimates it's twenty billion is it just another lehman brothers is it going to zero on the stock well i have the feeling that's my

morgan j.p. morgan misstatement you know we're going to leave but be sure that the vatican has still have an account open this is just you know like some noise from you know the vatican is not in j.p. morgan i don't trust and i think that by nestor is interested in their gold and silver right and so let's return to buy the masters for a second because the london desk of j.p. morgan has been hemorrhaging money spinning out of control they want for that two billion dollar loss that jamie dimon referred to as an asymmetric hedge which of course is an oxymoron you can't have an asymmetric hedge either heads or you have a directional benefit but you can have an estimate treat people out but clearly a french idiomatic expression i'm not familiar with however. pierre. there are some estimates that this two billion dollars hole is now it's a four billion six billion i for seen estimates it's twenty billion is it just another lehman brothers is it going to zero on the stock well i have the feeling that's

morgan j.p. morgan made the statement you know we're going to leave but be sure that diverts going has still have an account opened this is just you know like some noise from you know the vatican is not in j.p. morgan i don't trust and i think that by nestor is interested in their gold and silver right and so let's return to buy the masters for a second because the london desk of j.p. morgan has been hemorrhaging money and spinning out of control they want for that two billion dollar loss that jamie dimon referred to as asymmetric head which of course is an oxymoron you can't have an asymmetric hedge either heads or you have a directional benefit but you. and have an estimate treat people it was clearly a french idiomatic expression i'm not familiar with however. pierre. there are some estimates that this two billion dollar hole is now it's of four billion six billion i've heard seen estimates it's twenty billion is it just another lehman brothers is it going to zero on the stock well i have the

morgan j.p. morgan made the statement you know we're going to leave but be sure that the vatican has still have an account opened this is just you know like some noise from you know the vatican is not in j.p. morgan i don't trust and i think that by nestor is interested in their gold and silver right and so let's return to buy the masters for a second because the london desk of j.p. morgan has been hemorrhaging money spinning out of control they want for that two billion dollar loss that jamie dimon referred to as an asymmetric hedge which of course is an oxymoron you can't have an asymmetric hedge either heads or you have a directional benefit but you. didn't have an estimate treaty part but clearly a french idiomatic expression i'm not familiar with however. pierre. there are some estimates that this two billion dollar hole is now it's a four billion six billion i for seen estimates it's twenty billion is it just another lehman brothers is it going to zero on the stock well i have the feeling t

morgan j.p. morgan misstatement you know we're going to leave but be sure that the vatican has still have an undercount open and this is just you know like some noise from you know the vatican is not in j.p. morgan i don't trust and i think that by nestor is interested in their gold and silver right and so let's return to buy the masters for a second because the london desk of j.p. morgan has been hemorrhaging money spinning out of control they want for that two billion dollar laws. that jamie dimon referred to as an asymmetric hedge which of course is an oxymoron you can't have an asymmetric hedge either hedge or you have a directional benefit but you can have an estimate treat people out well clearly a french idiomatic expression i'm not familiar with however. pierre. there are some estimates that this two billion dollars hole is now it's a four billion six billion eye for seen estimates it's twenty billion is it just another lehman brothers is it going to zero on the stock well i have the feel

morgan j.p. morgan misstatement you know we're going to leave but be sure that diverts going has still have an undercount open and this is just you know like some noise from you know the vatican is not in j.p. morgan i don't trust and i think that by nestor is interested in their gold and silver right and so let's return to buy the masters for a second because the london desk of j.p. morgan has been hemorrhaging money spinning out of control they want for that two billion dollar laws. that jamie dimon referred to as an asymmetric head which of course is an oxymoron you can't have an asymmetric hedge either hedge or you have a directional bit but you can have an estimate treaty put us on clearly a french idiomatic expression i'm not familiar with however. pierre. there are some estimates that this two billion dollars hole is now it's a four billion six billion that for seen estimates it's twenty billion it's just another lehman brothers is it going to zero on the stock well i have the feeling that

morgan j.p. morgan made the statement you know we're going to leave but be sure that the vatican has still have an account open and this is just you know like some noise from you know the vatican is not in j.p. morgan i don't trust and i think that by nestor is interested in their gold and silver right and so let's return to buy the masters for a second because the london desk of j.p. morgan has been hemorrhaging money spinning out of control they want for that two billion dollar laws. that jamie dimon referred to as an asymmetric head which of course is an oxymoron you can't have an asymmetric hedge either heads or you have a directional bennett but you can have an estimate treat people it was clearly a french idiomatic expression i'm not familiar with however. pierre. there are some estimates that this two billion dollar hole is now it's a four billion six billion eye for seen estimates it's twenty billion is it just another lehman brothers is it going to zero on the stock well i have the feeli

morgan j.p. morgan misstatement you know we're going to leave but be sure the device going has still have an on the count open and this is just you know like some noise from you know the vatican is not in j.p. morgan i don't trust and i think that by nestor is interested in their gold and silver right and so let's return to buy the masters for a second because the london desk of j.p. morgan has been hemorrhaging money spinning out of control they want for that two billion dollar loss that jamie dimon referred to as an asymmetric hedge which of course is an oxymoron you can't have an asymmetric hedge either hedged or you have a directional benefit but you can have an estimate treaty put well clearly a french idiomatic expression i'm not familiar with however. pierre. there are some estimates that this two billion dollar hole is now it's a four billion six billion eye for. seen estimates it's twenty billion is it just another lehman brothers is it going to zero on the stock well i have the feeling

morgan j.p. morgan made the statement you know we're going to leave but be sure that the vatican has still have an account open and this is just you know like some noise from you know the vatican is not in j.p. morgan i don't trust and i think that by nestor is interested in their gold and silver right and so let's return to buy the masters for a second because the london desk of j.p. morgan has been hemorrhaging money spinning out of control they want for that two billion dollar loss that jamie dimon referred to as asymmetric head which of course is an oxymoron you can't have an asymmetric hedge either heads or you have a directional benefit but you can have an estimate. but clearly a french idiomatic expression i'm not familiar with however. pierre. there are some estimates that this two billion dollar hole is now it's a four billion six billion eye for. seen estimates it's twenty billion is it just another lehman brothers is it going to zero on the stock well i have the feeling that's my intui

morgan j.p. morgan made the statement you know we're going to leave but be sure that the vatican has still have an account opened this is just you know like some noise from you know the vatican is not in j.p. morgan i don't trust and i think that by nestor is interested in their gold and silver right and so let's return to buy the masters for a second because the london desk of j.p. morgan has been hemorrhaging money and spinning out of control they want for that two billion dollar laws. that jamie dimon referred to as an asymmetric head which of course is an oxymoron you can't have an asymmetric hedge either heads or you have a directional bit but you can have an estimate treat people it was clearly a french idiomatic expression i'm not familiar with however. pierre. there are some estimates that this two billion dollar hole is now it's of four billion six billion i've heard seen estimates it's twenty billion is it just another lehman brothers is it going to zero on the stock well i have the fee

morgan j.p. morgan made the statement you know we're going to leave but be sure that the vatican has still have an account open and this is just you know like some noise from you know the vatican is not in j.p. morgan i don't trust and i think that by nestor is interested in their gold and silver right and so let's return to buy the masters for a second because the london desk of j.p. morgan has been hemorrhaging money spinning out of control they want for that two billion dollar loss that jamie dimon referred to as asymmetric head which of course is an oxymoron you can't have an asymmetric hedge either heads or you have a directional benefit but you can have an estimate treat people out well clearly a french idiomatic expression i'm not familiar with however. pierre. there are some estimates that this two billion dollars hole is now it's a four billion six billion eye for seen estimates it's twenty billion is it just another lehman brothers is it going to zero on the stock well i have the feelin

morgan can use that to the disadvantage of j.p. morgan. in fact, i think it's pretty well established that part of this open disclosure and discussion has allow the a lot of those and it's precipitated some of those losses, but -- so, it's not necessary for him to disclose proprietary information and if you read the articles you will see they're managing this and the independent people have said that, but the loss could be 6 billion, but that's just an estimate. it could be 2 billion, it could be -- some have estimated it could be less than that. >> thank you, mr. chairman. >> start the clock. >> and you'll be doing your quarterlies very shortly. the next question we can ask is profits for the quarter, but we'll wait on that one, too. >> there will be profits in the quarter. >> and that was the point i was trying to head toward that at least as an institution it's not happy, it's shareholders' money, but not devastating? >> not devastating. not fun, either. >> and this is actually more of an offshoot having read some of the senate testimon

morgan profitably for a few years out of j.p. morgan who do you put in there ken lewis. and i'm an old. you know so that's i mean there is a reason here that people are looking at the scale of the loss the money itself j.p. morgan can handle i mean it makes us raise some questions but they can handle that but then look at the issue of leadership into the future we are at the brink of a global economic crisis right now europe is in trouble china is in trouble if we're going to try to remove the head of a major bank let's think about who's going to do a better job and that's what's protecting them right now they're so much on certainty that who has the time for a job search. here that cleanest dirty shirt applies to bank c.e.o.'s as much as two currencies but coming up still ahead why don't we have more disclosure from anyway too big to fail banks or the mob we'll have more from my interview with capital from capitol hill heidi moore she'll answer that but first your closing market numbers. old. technology innovation all the latest developments around russia we've got the

morgan can use that to the disadvantage of j.p. morgan. i think it's pretty well established and that this open disclosure and discussion has precipitated some of those losses. so, it's not necessary for him to disclose proprietary information, but i think if you read any of these articles you see that they're managing these. they said the loss could be 6 billion, but it's just an estimate. it could be 2 billion and some have estimated that, and you'll be doing your quarterlies shortly. the second questiones of going to ask is profit for the quarter and we'll just wait on that one, too. >> but there will be profits in the quarter and that was the point i was trying to head toward is that at least as an institution this is not happy. it's shareholders' money, but not devastating. >> not fun, either. >> and this is actually more of an offshoot having read some of the senate testimony. i want to get my head around something that's looking down the financial and the fixed income and the banking community. we're all operating in an environment

morgan profitably for a few years out of j.p. morgan would you put in there ken lewis. i don't know i mean you know so that's i mean there's a reason here that people are looking at the scale of the loss the money itself j.p. morgan can handle i mean it makes us raise some questions but they can handle that but then look at the issue of leadership into the future we are at the brink of a global economic crisis right now europe is in trouble china is in trouble if we're going to try to remove the head of a major bank let's think about who's going to do a better job and that's what's protecting him right now there's so much on certainty that who has the time for a job search. here that cleanest dirty shirt applies to a bank c.e.o.'s as much as two currencies that coming up still ahead why don't we have more disclosure from anyway too big to fail banks or the mob will have more from my interview with capital from capitol hill heidi moore she'll answer that but first your closing market numbers. you know sometimes you see a story and it seems so. please you think you unders

morgan profitably for a few years out of j.p. morgan would you put in there ken lewis. i mean you know so that's i mean there is a reason here that people are looking at the scale of the loss the money itself j.p. morgan can handle i mean it makes us raise some questions but they can handle that but then look at the issue of leadership into the future we are at the brink of a global economic crisis right now europe is in trouble china is in trouble if we're going to try to remove the head of a major bank let's think about who's going to do a better job and that's what's protecting him right now there so much on certainty that who has the time for a job search. here that cleanest dirty shirt applies to a bank c.e.o.'s as much as two currencies that coming up still ahead why don't we have more disclosure from anyway too big to fail banks or the mob will have more from my interview with capital from capitol hill heidi moore she'll answer that but first your closing market numbers. well. technology innovation all the developments around russia we've got the future earth cov

morgan profitably for a few years out of j.p. morgan would you put in there ken lewis i know you know so that's i mean there is a reason here that people are looking at the scale of the loss the money itself j.p. morgan can handle i mean it makes us raise some questions but they can handle that but then look at the issue of leadership into the future we are at the brink of a global economic crisis right now europe is in trouble china is in trouble if we're going to try to remove the head of a major bank let's think about who's going to do a better job and that's what's protecting him right now there's so much on certainty that who has the time for a job search. here that cleanest dirty shirt applies to a bank c.e.o.'s as much as two currencies that coming up still ahead why don't we have more disclosure from anyway too big to fail banks or the mob will have more from my interview with capital from capitol hill heidi moore she'll answer that but first your closing market numbers. what drives the world the fear mongering used by. a

morgan profitably for a few years out of j.p. morgan would you put him there unless i know you you know so that's i mean there is a reason here that people are looking at the scale of the loss the money itself j.p. morgan can handle i mean it makes us raise some questions but they can handle that but then look at the issue of leadership into the future we are at the brink of a global economic crisis right now europe is in trouble china is in trouble if we're going to try to remove the head of a major bank let's think about who's going to do a better job and that's what's protecting them right now they're so much on certainty that who has the time for a job search. here that cleanest dirty shirt applies to bank c.e.o.'s as much as two currencies but coming up still ahead who do we have more disclosure from anyway too big to fail banks or the mob we'll have more from my interview with capital from capitol hill heidi moore she'll answer that but first your closing market numbers. it's technology innovations all the developments arou

i'm preparing to discuss recent losses in a portfolio held by j.p. morgan chase -- mr. chairman, can we get him to pull the mike closer. >> chief investment losses. these losses consider attention and while reviewing the facts i will do everything i can to the extent possible. j.p. morgan chase's six lines of business and provide a financial array of small and large businesses, governments and not for profits. >> these include deposit accounts and loans, credit cards, and mortgages and capital market's advice and mutual funds and other investments. let me start by explaining what the chief investment office does. like many banks, we have more deposits than loans. at quarter end, we held approximately $1.1 trillion in deposits and 700 billion in loans. cio along with the treasury unit invests excess cash that includes treasurys, agencies and mortgage-backed securities and corporate debt and other domestic and overseas assets. it also serves as an important vehicle for managing assets and liabilities of the consolidated company. in short, the bulk of c.o.'s responsibiliti

morgan -- at j.p. morgan this begs the question that these trillion dollar megadeaths banks are too big to fail. they are too big to manage them to big to regulate the of the occ's position is they don't subscribe to the view that big is bad. as long as occ continues to insist that large banks are essential to our economy, they are responsible for their inability to properly examine and supervise these mega bags. i appreciate you working to improve your oversight but i heard the same promise last year from different management. could the occ have done differently. you need to identify what mistakes were made, by whom those mistakes were made and of j.p. morgan can hold its senior executives accountable which bay appear in part to be doing, which expect nothing less from the people that work for you. thank you. >> senator schumer. >> thank you, mr. chairman and the witnesses. one of the obvious issues raised by j.p. morgan trading losses is the role of risk management at banks, especially large bank. i

morgan dips into cookie jar to offset london whale losses yes you know j.p. morgan lost all that money right there there we are in london do you see the london whale see. hopping through the background right munching on the plankton of fraud the krill of accounting miss leisure domain he's right here with all the other big time financial crooks in london stacey this is where they break this is where they live then they're so happy with the fraud they're committed in the city of london that in the olympic event for the summer for olympic pulling a using fraudulent polls and exuberance fantastic well to remind people what happened with j.p. morgan is they made a giant huge bet on the corporate credit default swap market they cornered the market and they were the only guys there along everybody else took the other side against them they're attacking attacking attacking they're still attacking but j.p. morgan chase and company has sold an estimated twenty five billion dollars of profitable securities and an effort to prop up earnings after suffering trading losse

morgan dips into cookie jar to offset london whale losses yes you know j.p. morgan lost all that money right there there we are in london do you see the london whale hopping through the background right munching on the plankton of fraud the krill of accounting miss leisure domain is right here with all the other big time financial crooks in london stacey this is where they break this is where they live then they're so happy with the fraud they're committed in the city of london that the olympic event for the summer for olympic pulling a using fraudulent polls as it should was fantastic well to remind people what happened with j.p. morgan is they made a giant huge bet on the corporate credit default swap market they cornered the market and they were the only guys there along everybody else took the other side against them they're attacking attacking attacking they're still attacking but j.p. morgan chase the company has sold an estimated twenty five billion dollars of profitable securities and an effort to prop up earnings after suffering trading losses tied t

morgan it was assumed j.p. morgan could deal with losses of around $80 billion and still be adequately capitalized. is that correct? >> we would be adequately capitalized, but i would not be the person sitting in front of you right now. [laughter] >> we are great believers in stress test we were put through a severe stress test. 20% unemployment, a crisis in europe, and markets as bad as what we saw during the bid and brothers crisis, and we came through with flying colors. -- with lehman brothers, and we came through with flying colors. we want to make sure we have adequate capital and liquidity so much to the extent that you would never question j.p. morgan. we believe we have that kind of capital. >> your current tier one capital is approximately one of the $28 billion? >> approximately, yes. >> i would like to conclude with a discussion of the volcker rule. some have said it is not possible to distinguish between proprietary trading desk and hedging. clearly, that is what the volcker rule contemplates and i

j.p. morgan's c.e.o. explains, doesn't defend, the bank's multi-billion dollar loss. >> susie: i'm susie gharib. we're half way through 2012; we'll look at the market outlook for the rest of the year. >> tom: then the housing market may still be weak but home renovations are making a comeback. what's driving the re-modeling and can it continue? >> susie: that and more tonight on "n.b.r." >> susie: it was an isolated incident and it won't happen again. that's what jamie dimon told lawmakers on capitol hill today about j.p. morgan's massive trading loss. he said the bank's traders got complacent, but added j.p. morgan would be solidly profitable in the second quarter. darren gersh reports. >> reporter: the high profile hearing began with protests. >> stop foreclosures now. stop foreclosures now. >> reporter: and then it turned to explanations and apologies. dimon blamed his bank's big trading losses on poor internal oversight and a switch to a new risk management model. >> this portfolio morphed into someth

morgan and get to the auditors because by the way of one j.p. morgan share the same one we will have much more after the break with francine mckenna author of the blog the auditor. also still ahead survival less are prepping for more than just the end of the world they're going to be on t.v. we'll give you our three cents on the grand prize a new reality show is offering them but first your closing market numbers. you. welcome back we're talking about massive risk taking and the leverage expansion that leads to firms going bankrupt or losing a lot of money stealing from customers in some cases just the retina as an systemic only important or does detrimental disaster as institution depending on how you look at it in the case of j.p. morgan we're talking to francine mccann as she is the accounting watchdog author of blog the auditors columnist for forbes american bankers she's talking about how this all is allowed to go down and how the regulators are not catching it so one other factor here that we haven't touched on yet is the auditors it's har

morgan dips into cookie jar to offset london whale losses yes you know j.p. morgan lost all that money right there there we are in london do you see the london whale hopping through the background right munching on the plankton of fraud the krill of accounting miss leisure domain is right here with all the other big time financial cooks in london stacey this is where they breed this is where they live there and they're so happy with the fraud they're committed in the city of london that the olympic event for the summer for olympic pulling a using fraudulent polls as it should was fantastic well to remind people what happened with j.p. morgan is they made a giant huge bet on the corporate credit default swap market they cornered the market and they were the only guys there along everybody else took the other side against them they're attacking attacking attacking they're still attacking but j.p. morgan chase and company has sold an estimated twenty five billion dollars of profitable securities and an effort to prop up earnings after suffering trading losses ti

that's what i believe. >> if j.p. morgan fails, who picks up the tag. >> in if j.p. morgan fails i don't think we will pick up a tag but we have 190 billion of he can it i and i don't think there is any chance we will fail. if we did, any losses the government would bear should go back to be charged to the banks just like f dic today is charged back to banks. j.p. morgan is going to spend $5 billion to the fdic to pay for the failure of other banks. i think it is important the american taxpayer doesn't pay for that. >> i thought you were done. sorry. the liquidation authority would step in and bear the brunt of j.p. morgan's loss should you fail, right? that's the way dodd-frank is? >> boastly borne by equity and unsecured debt. they may provide temporary funds to keep the company functioning in the short run. >> is it fair to say that j.p. morgan could have losses of half a trillion dollars or a trillion dollars. >> not unless the earth is hit by the moon. >> okay. why don't we go to your trades that brought you the 2 trillion, i am sorry, the 2 billion, $5 billion

j.p. morgan has been doing banking in europe for 75 years. j.p. morgan himself used to love italy and would go there. we have exposure to italian companies that you cannot get out of tomorrow. if the board of directors said you don't want exposure, there's one way to do it and that would be to do portfolio hedging which would accomplish part or all of that. you said to buy individual name, it would be impossible. >> i think the american people would want to know that when this happened, when you first got wind of this $2 billion loss, what was your initial reaction? >> when i fully realized it, i told our people that everything is going to happen from coming down to washington to questionable for roll and we have heard other bankers and the causes commotion inside the country, soul-searching. i said to let's admit our mistakes and fix this. we have to make changes and will be a tough time for us. however, it did not -- it should not distract -- distract us from serving clients. we have 82 offices and we will do everything to serve the client right

j.p. morgan chase is one of the biggest banker to banks. the history of j.p. morgan was to bank banks. i think some of them can. i can't go through each one. they have different business models. each one should do what they need to do for their own business. >> let me ask you this, as a result of this, should one of the things we do now, should banking entities like chase morgan bank, j.p. morgan bank be allowed by our regulators to hedge only on positions specific basis as opposed to on an aggregate or portfolio basis? >> if i were the regulator i would allow prort folio aggregate. i want to give one example. j.p. morgan himself used to love italy and would go there. we have exposures to italian companies that you can't get out of tomorrow. if you were on my board of directors and said i don't want italian exposure. there's only one way to do it and that would be to do port foreyellow hedging. if you said do it by individual name, it would be impossible. >> mr. dimon, i think the american people would want to know when this happened, when you first got wind o

j.p. morgan's c.e.o. explains, doesn't defend, the bank's multi-billion dollar loss. >> susie: i'm susie gharib. we're half way through 2012; we'll look at the market outlook for the rest of the year. >> tom: then the housing market may still be weak but home renovations are making a comeback. what's driving the re-modeling and can it continue? >> susie: that and more tonight on "n.b.r." >> susie: it was an isolated incident and it won't happen again. that's what jamie dimon told lawmakers on capitol hiltoday about j.p. morgan's maive trading loss. he said the bank's traders got complacent, but added j.p. morgan would be solidly profitable in the second quarter. darren gersh reports. >> reporter: the high profile hearing began with protests. >> stop foreclosures now. stop foreclosures now. >> reporter: and then it turned to explanations and apologies. dimon blamed his bank's big trading losses on poor internal oversight and a switch to a new risk management model. >> this portfolio morphed into something

morgan dips into cookie jar to offset london whale losses yes you know j.p. morgan lost all that money right there there we are in london do you see the london whale. hopping through the background right munching on the plankton of fraud the krill of accounting miss leisure domain he's right here with all the other big time financial crooks in london stacey this is where they breed this is where they live then they're so happy with the fraud they're committed in the city of london that the olympic event for the summer for olympic pulling a using fraudulent polls as it should was fantastic well to remind people what happened with j.p. morgan is they made a giant huge bet on the corporate credit default swap market they cornered the market and they were the only guys there along everybody else took the other side against them they're attacking attacking attacking they're still attacking but j.p. morgan chase and company has sold an estimated twenty five billion dollars of profitable securities and an effort to prop up earnings after suffering trading losses tie

i'm preparing to discuss recent losses in a portfolio held by j.p. morgan chase -- mr. chairman, can we get him to pull the mike closer. >> chief investment losses. these losses have generated curveball attention. and while reviewing the facts i will do everything i can to the extent possible. j.p. morgan chase's six lines of business and provide a financial array of small and large businesses, governments and not for profits. >> these include deposit accounts and loans, credit cards, and mortgages and capital market's advice and mutual funds and other investments. let me start by explaining what the chief investment office does. like many banks, we have more deposits than loans. at quarter end, we held approximately $1.1 trillion in deposits and 700 billion in loans. cio along with the treasury unit invests excess cash that includes treasurys, agencies and mortgage-backed securities and corporate debt and other domestic and overseas assets. it also serves as an important vehicle for managing assets and liabilities of the consolidated company. in short, the bulk of c.o.

morgan and get to the auditors because by the way i'm a full blown j.p. morgan share the same one we will have much more after the break with francine mckenna author of the blog the auditor. also still ahead survival lists are prepping for more than just the end of the world they're going to be on t.v. we'll give you our three cents on the grand prize a new reality show is offering them but first your closing market numbers. a new. technology innovation all the developments around. the future however. welcome back we're talking about massive risk taking and the leverage expansion that leads to firms going bankrupt or losing a lot of money stealing from customers in some cases just the right as in it's a systemic only important or did you know detrimental disaster as institution depending on how you look at it in the case of j.p. morgan we're talking to francine mccann as she is the accounting watchdog author of blog the auditors columnist for forbes american bankers she's talking about how this all is allowed to go down and how the regulators are not catc

j.p. morgan is not. there is a lrt as you know, earlier in the week in the new york times that loss related to the london wlal could approach some $9 billion. our own reporting from our own kate kelly, andrew say. it n a big way j.p. morgan is not. take a look at board right there. a big story. gains of 2.5 to 3% for most of the biggest banks in this country yet j.p. morgan on a day when stocks are having tremendously big day, that j.p. morgan isn't doing anything, pete. what does this say to you? >> for whatever reason it has some sort of leg. john, i know you want jump in, go ahead. >> i was going to say, judge, you just nailed it though. a doubling of losses by nyt story versus what kate kelly and sorkin reported. so who is right? i think sorkin and kate kelly are right. so if you have weakness you buy j.p. morgan. that's why it is weak. there is this fork in the head. if it is on the high end the stock should be lower. >> anthony, you want it comment? >> i was going to say, i think it is window selli

morgan i guarantee you that within six months her bank will be bigger than j.p. morgan because she would have an august bank and she's five years old and any five year old can open a modest bank but jamie diamond is a fifty year old shmona who opens a crooked bank who's a believe with the devil and the bomb administration and he runs nothing but a share of bank you just give any competition any five year old give it give give a gold fish baking license and they'll attract more deposits then this out right criminal diamond so the top u.s. banks received an implicit subsidy of seventy six billion dollars last year j.p. morgan's share of the subsidy is fourteen billion dollars a year which is about seventy seven percent of its net income for the past four quarters so they're almost entire income comes from this one subsidy but seventy seven percent is due to this one subsidy doesn't call it all the other subsidies widely applauded this guy jamie diamond the fact that he can walk and chew gum at the same time the fact that he is not walked is not you know tripping ov

morgan dips into cookie jar to offset london whale losses yes you know j.p. morgan lost all that money right there there we are in london do you see the london whale hopping through the background right munching on the plankton of fraud the krill of accounting miss leisure domain is right here with all the other big time financial crooks in london stacey this is where they breed this is where they live then they're so happy with the fraud they're committed in the city of london that the olympic event for the summer for olympic pulling a using fraudulent polls as it should was fantastic well to remind people what happened with j.p. morgan is they made a giant huge bet on the corporate credit default swap market they cornered the market and they were the only guys there along everybody else took the other side against them they're attacking attacking attacking they're still attacking but j.p. morgan chase and company has sold an estimated twenty five billion dollars of profitable securities and an effort to prop up earnings after suffering trading losses tied t

morgan dips into cookie jar to offset london whale losses yes you know j.p. morgan lost all that money right there there we are in london do you see the london whale hopping through the background right munching on the plankton of fraud the krill of accounting miss leisure demand is right here with all the other big time for. crooks in london stacey this is where they breed this is where they live then they're so happy with the fraud they're committed in the city of london that in the olympic event for the summer for a limpid pulling a using fraudulent polls i think severus fantastic well to remind people what happened with j.p. morgan is they made a giant huge bet on the corporate credit default swap market they cornered the market and they were the only guys there along everybody else took the other side against them they're attacking attacking attacking they're still attacking but j.p. morgan chase and company has sold an estimated twenty five billion dollars of profitable securities and an effort to prop up earnings after suffering trading losses tied to

morgan and get to the auditors by the way and j.p. morgan share the same one we will have much more after the break francine mckenna author of the blog the auditor. also still ahead survival less are prepping for more than just the end of the world they're going to be on t.v. we'll give you our three cents on the grand prize a new reality show is offering up but first your closing market numbers. with. science technology innovation all the moves developments around russia we've got those huge earth covered. thank you. welcome back we're talking about massive risk taking and the leverage expansion that leads to firms going bankrupt or losing a lot of money stealing from customers in some cases just the right now as in a systemic only important or does detrimental disaster is institution depending on how you look at it in the case of j.p. morgan we're talking to francine mccann as she is the accounting watchdog author of blog the auditors columnist for forbes american banker she's talking about how this all is allowed to go down and how

morgan all along and then came along. to go along with that maybe that's true j.p. morgan is the biggest bank in the country in my view it has an implicit guarantee of the government because i think that if it was a real danger the government would have to step in if there was some kind of credit crisis that was instigated as a result so hey maybe j.p. morgan is a safe haven because at the end of the day it's got the biggest line to the government is it's the biggest bank that you could spur steve is too big to fail so in that way maybe it is. i am no further backwards here i was really now well let's continue the last week we had our financial check out because he was in front of the senate banking committee and it was just it was embarrassing right these guys were not grilling jamie dimon if anything some of them were grovelling in front of him they were asking him for his advice what kind of regulations should the instituted in saying that you know sometimes the banks do better than the government does when it comes to keeping track of their money and it was just

morgan i guarantee that within six months her bank will be bigger than j.p. morgan because she would have an august bank and she's five years old and a five year old can open honest bank but jamie diamond is a fifty year old china who opens a crooked bank who's a believe with the double and the bomb administration and he runs i think what a share bank you just give any competition any five year old give it give give give a gold fish baking license and they'll attract more deposits then this out right criminal diamond so the top u.s. banks received an implicit subsidy of seventy six billion dollars last year j.p. morgan share of the subsidy is fourteen billion dollars a year which is about seventy seven percent of its net income for the past four quarters so they're almost entire income comes from this one subsidy but seventy seven percent is due to this one subsidy doesn't call it all the other subsidies wildly applauding this guy jamie diamond the fact that he can walk and chew gum at the same time the fact that he is not walked is not you know tripping over

morgan all along and then came along. to go along with that maybe that's true j.p. morgan is the biggest bank in the country in my view it has an implicit guarantee of the government because i think that if it was a real danger the government would have to step in if there was some kind of credit crisis that was instigated as a result so hey maybe j.p. morgan is a safe haven because at the end of the day it's got the biggest line to the government is it's the biggest bank that you could see perceive as too big to fail so in that way maybe it is. i are no further backwards here i was really now well let's continue so i've gotten to the last week we had our financial check out because he was in front of the senate banking committee and it was just it was embarrassing these guys were not grilling jamie dimon if anything some of them were grovelling in front of him and they were asking him for his advice what kind of regulations for the instituted in saying that you know sometimes the banks do better than the government does when it comes to keeping track of their money

morgan all along and then came along. to go along with that maybe that's true j.p. morgan is the biggest bank in the country in my view it has an implicit guarantee of the government because i think that if it was a real danger the government would have to step in if there was some kind of credit crisis that was instigated as a result so hey maybe j.p. morgan is a safe haven because at the end of the day it's got the biggest line to the government is it's the biggest bank that you could see perceive as too big to fail so in that way maybe it is. i i as her backwards in her world really now well let's get to these i've gotten the last week we had our financial check out because he was in front of the senate banking committee and it was just it was embarrassing right these guys were not grilling jamie dimon if anything some of them were grovelling in front of him and they were asking him for his advice on what kind of regulations for the instituted in saying that you know sometimes the banks do better than the government does when it comes to keeping track of their mo