cupcakes. >> there's like 300 cupcakes over there. it will be a parade from the newsroom. >> doc? >> cx. lot of call buying. >> dow down 43 points. "power lunch" picks up the ball. see you tomorrow. "power lunch" and the second half of the trading day start right now. >> happy birthday, anthony. be grateful you're not flying, at least not this afternoon. what a mess. if you are a business traveler, and you're in the airways this week, you are probably going to face delays. the airlines are sorting out schedules after a very, very tough week and now more weather problems on the way. record low temperatures hitting the midwest, dipping down into the south and moving east. big time. the government closes in on a deal. there's the man, there's the bank involved. jpmorgan's relationship with bernie madoff. it's all about that.

what did the bankers know, when did they know it and what is their responsibility and liability. and a closer look at the unespecialun especial employment picture, looking at what may become a crisis. millions of americans lose the extended benefits but millions more are expected to be impacted this year. by the loss of the benefits. do the jobs these workers need even exist? first, let's check in with sue at the new york stock exchange. >> we have a lot going on today in "power lunch." if you're just tuning in, let's get you up to date on the markets. the dow jones industrial average down 43 points at 16,426 and change. the s & p 500 and nasdaq down 20 points, the biggest percentage downsized index right now. as for the gold market, after a volatile week last week, we're up two bucks. most of the metals markets hanging flat right now. in terms of interest rates,

after bumping up against 3% last week, the ten year right now was traded last on the yield 2.95% and brent crude last traded on the upside by about five cents. the bigger story for businesses and business people is the weather. it is absolutely freezing in parts of the country, so cold in minnesota, in fact, that the governor has canceled all public schools statewide. 50 below zero with the wind chill. milwaukee, wisconsin, also canceling public school classes today as well. in indianapolis, this morning, the mayor issued a decree banning cars except for emergency vehicles, from driving. it has been lightened a little as we go into the afternoon. airline travel clearly still messed up from last week. then there was the skidding plane at jfk over the weekend. and this terrible blast of cold. it's getting colder right outside the nyse after a balmy morning relatively speaking.

it is extremely cold at o'hare. how might all this impact business travelers and everybody else this week? >> reporter: the lines keep growing at o'hare. most of the people behind me, this is a customer service line behind me, people who are waiting to rebook flights with american airlines, most of these people say they have been canceled twice, sometimes three times, a few times we have had people say i have had four flights canceled. the real story at this hour, what's happening with jetblue. jetblue has just announced it is curbing its schedules to the three new york airports, jfk, laguardia and newark, as well as to its hub into boston. they will draw down the schedule until 5:00 p.m. this afternoon, then cancel all flights until 10:00 tomorrow morning, then bring the flights back up through 3:00 tomorrow afternoon. 48% of jetblue flights have been canceled today and again, it will partially resume flying to new york city and boston starting at 10:00 a.m. tomorrow morning. take a look at shares of jetblue intraday, down 3.5%. earlier today we said listen, we won't see much of an impact on the airline stocks. we are starting to see that

impact. airlines have canceled more than 3700 flights today, delayed more than 8400, and as you take a look at the airline index, yes, it's up 50% in the last year but today, it is down 1% and as we mentioned earlier, we didn't see much of an impact on the airlines but now we are starting to as a lot of people are saying what's going to be the financial fallout from all of these cancellations that we have seen over the last couple days and no doubt will see over the next couple of days. back to you. >> i know there are a lot of people behind you. could you get your cameraman to give us some perspective on how many people are in that customer service line behind you? >> reporter: you're in for a treat. it's a little bit cramped here -- >> i know, i'm sorry about that. >> reporter: this goes down here at least another 50 feet. it goes down at least another 50 feet, then we will walk back this way. most of these people here, they have been here over the last couple days, staying at hotels and coming back. it goes down another 200 feet.

that's how long the line is. that's just at american. it's the same thing over at terminal one for united, really for all of the airlines here. the problem is what we're seeing here at o'hare is that the extreme cold has caused them basically to cancel the regional flights in because the ramp workers cannot be out there as long. equipment is not working as fast, especially refueling equipment, and the regional flights, those are the ones they are canceling first. they have dropped all of them for both american and united. the main line flights, they are trying to get those out but for a lot of these people, they're not going to be able to get on a flight until tomorrow or the next day. that's being optimistic. >> it will be cold for a couple of days and some of the crews that were flying those planes got marooned in other cities and can't get in, either. it's a complicated mess. phil, thanks a million. appreciate it. how about that cold? let's get to the forecast and here's the weather channel's alex wilson. >> we are talking about frigid temperatures across the northern

plains, midwest. that cold extending all the way down towards the gulf coast and into parts of florida, so a lot of the u.s. dealing with this arctic blast. wind chill advisories posted all the way to the south, getting into parts of louisiana, alabama, mississippi, even florida. orlando under wind chill advisories. wind chill warnings from minneapolis, chicago, into parts of western p.a. and new york. today's highs, minus 11 green bay, minus 9 in chicago. by tomorrow, you can see call it victory but it's still very cold. we have temperatures in single digits from minneapolis, indianapolis and cleveland. ten in chicago. as we look towards the south, another spot we will be talking about serious cold, 25 in atlanta today, 10 in nashville. by tomorrow, 20s for nashville, atlanta and charlotte. very cold into the south. even jacksonville, florida, only around 40 for a high. today in the northeast, we have 40s and 50s. you're thinking not bad. tomorrow that blast sets in. 14, new york. 19, boston. 17, philadelphia. we will rebound to the 20s on

wednesday, but still, at least through the middle part of the week we are talking about very cold, dangerous cold temperatures. >> alex, thank you very much. appreciate it. let's go where it's warmer for a market flash. >> jose bank shares continue to hover near session highs. the board of directors issued a statement about its ongoing battle with men's warehouse. men's warehouse issued a tender for jose bank, and says it's evaluating all options and recommends that shareholders do not tender shares until they can make a recommendation. the board says they will make such a recommendation on or before january 17th. back to you. as interest rates rise, you will see right now a one-month chart of the ten-year bond. there it is, the yield coming down just a bit today.

it is expected to pick up, as it has for much of 2013. will investors switch from dividend stocks to growth focused choices in this new year? seema mody has been doing research into this. what did you find? >> investors are already shifting from high yielding dividend stocks to growth stocks. however, as rates pick up and the economy accelerates, shed the extremes of high yield or high growth and find a hybrid of the two. we went looking for stocks with strong earnings growth and also paid a solid dividend and found quite a few in the financial sector. bank united, wells fargo, you say bank corp have seen earnings grow over the last three quarters and offer a dividend deal that is higher than the s&p 500 high of 2%. other attractive stocks are in the tech space. cisco has seen earnings grow over the past year and is sitting on $50 billion of cash

plus analysts say recovery in emerging markets could help it outperform in 2014 and it has consistently increased its dividend payout over the last three years. analysts saying growing concerns over data breaches could see companies allocating more capital towards security which could boost the bottom line. investing in hybrid stocks is most appealing to money managers who are not willing to take on a whole lot of risk and because of that, experts say that's why returns will most likely lag those of growth only funds. >> interesting, sort of a parlay there, dividends and growth. thank you very much. with the new year comes new predictions for the s&p. what are the big calls on the s&p by some of wall street's top strategists? let's run down a trio of them. one believes we are just now entering the middle of the rally and says s&p 500, 1,950.

david coston at goldman sachs says the linchpin of its market forecast is growth on all three cylinders, the economy, sales and earnings. he predicts 1,900 on the s&p for 2014. so you have one at 1,950, one at 1,900 in the middle and one at 1, 1,950. >> we have two leading strategists with us. let's see where they think the market is headed. sam wardell from pioneer investments, scott clemens on the floor at nyse is a little more cautious. welcome, gentlemen. we had a spectacular previous year. do you think we will see the same kinds of gains or what

makes you continue to feel bullish about the market? >> i would love to see another 25 or 30 but i don't think we are going to. but if we look at the economy, the economy is fine. fiscal austerity is tapering away. balance sheets are in pretty good shape. consumer demand looks like it's picking up. we should see some decent earnings growth this year. i think this is a good formula for a high single digit return. >> how do you feel about things, scott? you have been a little more cautious. >> i remain a little more cautious. what worries me, there is precious little room for error in this marketplace, after the rally we had last year, 30% up in stocks. most of that, two-thirds of that was driven by higher and higher valuations. 17 times earnings, it's hard to count on that propelling the market. i think i agree with some of the others that it does come down to earnings growth, but in an economy where nominal gdp is still bouncing long at 4% or 5%, it's hard to see earnings and therefore the market doing much

better than that in 2014. >> what about that, sam? what about real earnings growth? >> well, i agree, this has been the last couple of years, it's really been all about cost cutting. there has been very, very little top line growth. this should be a little bit better, but we're still not ebullient on the earnings growth prospect. where i might at the margin be less cautious than scott, those price earnings multiples, let's agree with 17 times, compared to bond yields, that doesn't look extended to us. that still does seem to be a favorable valuation. >> you were nodding your head in agreement. >> i take the other side of that picture. i think that doesn't say to me that equities are fairly valued. it says to me that bonds are terribly expensive. >> i see. okay. >> relevant to very low interest rates, yes, the s&p looks fine. >> if you have to put money to work in this market, do you favor growth or -- how are you playing it? >> we're looking for the kind of companies that deliver recurring

revenue streams, where the balance sheets are in very good shape. keep in mind, this is likely to be an environment in which interest rates are rising. may be disagreement about the pace of it. heavily indebted companies, that's a hard wind to sail into. >> thank you both. appreciate it. sam and scott, good to see you. jobs and office space, chickens and eggs, diana and steve. you heard about the fight for unemployment benefits ending for 1.3 million americans. that number may ultimately turn out to be much greater, deepening some economic troubles. and those kinds of statistics are already having an effect. >> yeah, they are having a big impact on one key part of the real estate sector and that is office space. much more "power lunch" in two minutes. speeds of a transmissionalt connected to more standard horsepower than its german competitors. and that is the moment that driving the lexus gs will shift your perception. this is the pursuit of perfection.

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having the internet at home means she has to go no further than the kitchen table to do her homework. now, more than one million americans have been connected at home. it makes it so much better to do homework, when you're at home. welcome to what's next. comcastnbcuniversal. welcome back to "power lunch." check out the medical device makers today. those stocks are among the best performers in the s&p 500. the best performing stock is st. jude medical which is up on an upgrade over morgan stanley to an overweight from a prior equal weight. morgan stanley upgraded shares of boston scientific to that same overweight rating. medtronic gaining ground after announcing it bought privately held tyrx which specializes in combination drugs and medical devices. keep an eye on the entire industry in today's trades. back over to you. >> absolutely, thank you. we're also watching shares of yahoo! in today's trading session which are down

two-thirds of a percent right now. the web search giant says some advertisements on its european websites last week spread malicious software, potentially infecting thousands of users. yahoo! says it has removed those bad ads. ty, up to you. a key procedural vote on extending unemployment benefits for 1.3 million americans, it is expected to fail in the senate this evening, but the unemployment crisis and for some, it is indeed a crisis, is likely to get much worse in the year ahead. our senior economics reporter steve liesman is here. what happens to the 1.3 million americans and the others that will be affected? >> i would like to extend the universe. it's more than 1.3 million people. i will get to what happens to them in just a second. 1.3 million americans are affected immediately. by march, the estimate is 2.6 million as their own benefits run out, they will have no extended unemployment benefits and 3.6 million by the end of

2014. a variety of things can happen to them. they could find work, become a member of the employed. they could remain unemployed, means they're still looking for work, or become a discouraged or marginally attached worker, essentially dropping out of the work force. the democrats say these claims need to be extended because it keeps people looking for work. you cannot get jobless insurance unless you're looking for work. keeps them attached to the work force. also acts as a spending stimulus. some word out there, some estimates out there that you could have a reduction in growth of .2% to .4% from getting rid of that. the republicans say claims drive up wages and drive down the number of jobs opening. ending claims they say will reduce unemployment. >> does it reduce it because the people flip off the rolls of people actively looking for work? >> they say once you get rid of the claims people are more motivated to find work. let me give you exhibit a in the republican or conservative camp. that's north carolina. north carolina ended its emergency benefits in july. you can see what happened there to employment. while the decline in the labor

force remained on the same track that it was on, this is what a lot of conservatives are talking to, showing there's a positive effect. >> are there jobs for long-term unemployed? >> it is still a very tough job market. when we look at the number of job openings per unemployed, we have gone down from a high of 6.9% to 3%. what you see in this chart, the bottom of where we are now is the top of where we were in 2003. >> where do most of these long term unemployed live? i assume in the big states? >> in the big states. here's the list we just got from the government here. california, 232,000, new york, 125,000. pennsylvania, illinois, new jersey and texas round out the top six. what's interesting about that, tyler, those six account for 50% of the 1.3 million. >> very interesting look at this. it's not just 1.3 million. that's really the headline here. >> it would go up as people lose their existing benefits provided by the state, there would be no federal emergency program. >> steve liesman, thank you very much. now to diana olick.

i suspect this means a less than great outlook for office space as there are fewer jobs. >> you hit the nail on the head. if companies aren't hiring white collar workers, they are not going to need more office space. that is the issue facing that sector. things are improving overall but largely in the most coveted locations. when you look nationally, the numbers are kind of less than impressive. the office vacancy rate was unchanged in the last quarter of 2013 at 16.9%, and is down very slightly from 17.1% a year ago. that annual drop in vacancies in 2013 was not nearly as strong as the drop in 2012 and why? again, because most of the employment growth in 2013 came from low paying, low skill jobs that don't use office space. but more office stock is coming online as q-4 saw a huge jump in completions. in fact, the quarterly average for 2013 was up 108% from a year ago and it is being absorbed, that is, there is high demand

for it. researchers say this clearly shows the ongoing use of pre-leasing that is required by lenders of construction and development financing, that's that tight lending, but it also shows tenants prefer new inventory. basically, that means that until high wage, high skilled job recovery accelerates, we are going to see slack demand for existing office space but solid demand for new stock and new york city by the way, reclaimed the title of tightest office market, took it from d.c. because d.c. is continuing to deal with all the budget issues. sue? >> understandably so. thank you very much. we have a tale of two ceos ahead for you. facebook's marc zuckerberg finding a recipe for success at facebook but washington executive and redskins owner dan snyder, who once showed so much promise, is struggling. what's mark doing right and dan doing right, and what can we learn from them? that's next. and cashing in before the big ipo. how many tech employees are

saying show me the money right now? josh knows and has that story. hey, josh. >> some just can't wait for that ipo. see what they're doing to cash in right now, that's next on "power lunch." aflac! aflac! got 'em. ♪ yeah, he's clean, boss. now listen to me, duck. i have an associate that met with, uh, an unfortunate accident. while he's been incapacitated, somebody's been paying him cash. now, is this your doing? aflac? now, if i met with some such accident, would aflac pay me? ♪ nice. this is your stop. [ male announcer ] find out what aflac can do for you and your family... aflac? [ male announcer ] ...at aflac.com. ♪

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dow but stocks in general are off to the worst start we've seen since 2008. the major averages struggling in the first full trading week of the year. we have a lot of data, possibly janet yellen's confirmation this afternoon. there's a lot for the market to digest. bob pisani is here to talk about it. >> the dow was up 50 points and within ten minutes of being on the air, ten minutes i was on air for the open, we just drifted lower. take a look at the s&p 500. we're struggling now, essentially three days on the down side. that hasn't happened since 2005. bond yields drop as the ism services came in weaker than expected and it kept dropping. the markets didn't immediately react to that but there you see right after 10:00, those numbers coming in. people asking me what's wrong with the stock market, bob. i'm not sure there is a lot wrong with it. if you want some reasons, the china data was weaker the last several days, the ism services and the manufacturing numbers. the u.s. data has been choppy. the services number for today for ism and the december auto

sales were nothing to write home about. then the cold weather has been impacting the economy. hope you have been listening to phil out there talking about the fact that the storm cancellations have cost the airlines a lot in terms of last minute bookings. there is one obvious one. cold weather keeps continuing, you will have people writing papers about how it's impacting economic news in december. elsewhere, you can see the impact to our u.s. markets. xme, that's metals and mining stocks, that's down weaker. kol is another china issue as well. finally, some of the big momentum names that have been out there in the early part of the year like biotech are notably weak here today. so i really, i think overall we should watch several things. very choppy u.s. economic data, choppy china, and the impact of this cold weather on the economy. >> you are absolutely right. that brings us to interest rates, which we want to talk about right now, because bob mentioned that ism data which did kind of take the bond yield to the down side a little bit

earlier this morning. right now, let's check where bond yields are. on the ten year note, the yield is 2.952%. it's kind of holding steady there. keep in mind, there is still perhaps more important data or more weighty data coming later this week. that's what the bond market is waiting for. they also want the yellen confirmation vote to come in, so that is settled. so there's a little bit of uncertainty and volume is also a little thin because some people can't get into work because of the bad conditions out there. very unusual trading lately in the bond market. you're up to date on that. now let's go uptown to the nasdaq. losing streak continues there as well. sheila dharmarajan is following the movers for us. >> the nasdaq is continuing its losing streak in 2014. we are down here for a third day in a row. in fact, we are now down about half a percent so outpacing the declines of the s&p 500 and also the dow. one of the big reasons we are seeing such declines in the nasdaq has to do with biotech.

goldman sachs coming out with a big report today downgrading the entire biotech sector and also specifically lowering their ratings on both companies, one of which had one of the biggest impacts on the decline today. want to mention apple. it's an interesting one to watch. it did open in the red but is back into green so back above the 50 day moving average. traders telling me this is an important one to watch. back to you. >> when we talk about twitter, just for a second, there is a lot of chatter about twitter down here on the floor and comparing it to facebook. jim weighed in on this this morning, but are the people you're talking to saying that basically twitter is overvalued compared to something like a facebook by almost every metric, or do they disagree with that? >> no, most people, i say look, twitter has had such an incredible run over the past year since it went public. it just went a little too far, too fast.

finally, as we are in the new year, people are waking up and realizing that. as for facebook, it is higher today. in fact, only about one of the 20 nasdaq 100 stocks that are in the green. a lot of people saying twitter's pain today is facebook's gain. remember, in that report that morgan stanley had downgrading the stock, they specifically said facebook's online advertising, the growth in that could be a hindrance to twitter. we are seeing that trade play out a little today. >> thanks a million. see you later. uptown to dominic chu. >> take a look at what's happening with the two solar panel stocks. first solar falling as the stock is downgraded to a sell rating from a buy saying the company has virtually no exposure to that rapidly growing rooftop solar market. different story for solar city. rising after goldman added it to its conviction buy list saying it's well positioned to capitalize on that solar rooftop market. so in essence, what you have here is goldman sachs coming out with a pairs trade. they are saying sell off one

solar company, first solar, take the proceeds, reinvest them into solar city. it's one way to play what's happening in solar. you can see the stocks, one reacting very much in kind and solar city up on this news. back to you. to gold right now which is closing. sharon epperson is tracking the action. >> gold prices are closing basically flat on the session at 1238 an ounce but we have seen quite a lot of action in gold. earlier this morning we saw what some traders are calling a flash crash as it dipped some $30 in a matter of seconds. it triggered what the cme group caused a pause in trading for ten seconds. all trades still stand. we saw the dip from 1245 an ounce all the way down to 1212 an ounce. some traders are saying fundamentally perhaps it was due to that better than expected factory order data, ism data. others are saying they don't know if it was the big fund liquidation or not but we are still looking into the issue and

seeing reaction as well in the gld market. we saw a big dip there but prices have steadied in that market as well. back to you. >> keep us posted. as tech companies prepare to go public, some employees are looking for ways to cash in before that big event. josh lipton is in san jose. josh? >> reporter: working at a hot startup like snap chat, listen, that can mean millions for employees if the company goes public or sell out, but many companies are choosing to stay private longer, so what do employees do if they need cash? well, they can go to the secondary market or a marketplace where investors can buy shares of private companies. a research firm gave cnbc data showing just how big this market really is. secondary market transactions surged 51% in 2013 to more than $12 billion. second market, that's a company which provides a trading platform for alternative

investments, has doubled the number of transactions on its platform year over year. now, that company did receive some criticism for inflating facebook's valuation ahead of its ipo, but second markets' head of sales tells cnbc that the company has now changed its model and now works closely with companies, and they determine the price and buyers of its shares. rising demand for the secondary market also due in part to the jobs act signed into law in april of 2012. remember the jobs act expanded from 500 to 2,000 the number of share holders a private company could have without also being forced to disclose financial information like a public company. this industry does have its critics, of course. they question how much investors really understand about the private companies in which they are committing capital. still, there are a lot of workers at startups looking to turn that paper money into real money they can use to pay back, loan or buy that new house. back to you. >> josh, i'll pick it up. 2013 was a very good year

for facebook and its founder, mark zuckerberg. the stock rebounded from its ipo mess in 2012. so what is zuckerberg doing right that by contrast, washington redskins owner dan snyder seems to be getting wrong? his team which is a very big business posting another losing season. take a look at this "the washington post" headline today. daniel snyder, redskins owner, still struggles to find formula for success. by contrast, a very kind article about mr. zuckerberg in today's "wall street journal." joining us, mike wise, sports columnist at "the washington post" and jeff sonnenfeld from the yale school of management. i know neither of these guys. i'm not a facebook user but have been a redskins fan since i was 5 years old and would love nothing more for the redskins to win. the articles in the papers, mike, point today in the

"journal" and in yours yesterday, point to the differences between these two guys, but if you look beneath the surface, they seem to be very, very similar types who have reacted differently. both young billionaires, both stubborn at times, both mercurial. mike, pick it up. >> i guess the big difference is i see more of an adapt to change to i guess modern times and thinking on mark zuckerberg's part than daniel snyder's. there's a great passage in the "wall street journal" article in which zuckerberg walks into the room after all these losses and the stock sliding and he looks at his facebook engineers and says why don't we put ads in the middle of the page, use it as a news feed. they look at him like really, you think so? dan snyder's problem is he only sells his past. he sells nostalgia. he sells his brand name. i think one of the most telling stats of all time is he actually

spent more time going to native american indian reservations this year than he did going to away football games, because he wants to keep his name so badly. it blows me away that one person could be so forward-thinking and the other would be so caught in the past. >> jeff, a couple of questions here. one could make the case that what mr. snyder has to deal with is a trickier situation and a trickier problem to solve in some ways than mr. zuckerberg faced. in other words, mr. zuckerberg had to figure out how to make money off of mobile devices. turn some engineers loose on it, go and get solution. in mr. snyder's case, it's a difficult thing to assemble, manage and make a team that's going to be competitive. i don't mean to make excuses for mr. snyder but i'm taking the other side of the argument. what do you see? >> i actually would reverse that. i don't want to minimize either one of their jobs and by the way, i do think mike did an excellent job on this. he nailed it. i wouldn't be a great

sportswriter but he would be a great management professor. tyler, you teed it up well. i think the zuckerberg challenge was the tougher one. he has the burning platform of public ownership, the public scrutiny, of course they both face, but the control that snyder has is a luxury compared to the kinds of pressures i think legal, financial, and technological in terms of the obsolescence issues. basically zuckerberg had a model that the time they went public, he realized was becoming obsolete. it took a kick in the pants to realize the mobile revolution, to realize what ad revenue was meaning. tyler, it's often been said that experience is the best teacher, and those of us who are teachers hate that expression, but you can take a look at both these guys, one of them has learned from experience, one of them hasn't. experience was not the best teacher. for 15 years, seasons in a row, snyder is making the same mistakes with that volatility. how many times do you get kicked in the rear end by a donkey and not learn?

>> i take your point, and mike, let me turn back to you, mr. zuckerberg had a public company to deal with. mr. snyder has basically -- can rule by fiat and it seems in your article that that was one of his achilles heels here, that he didn't take advice, that he ruled by declaration or by fiat and in fact, blamed subordinates for letting him make decisions that later turned out to be bad. >> yeah, tyler, i think that's one way to summarize it. that's what came out of it is that this is a person who doesn't delegate as well as he thinks he does. i'll be the first to say, he's changed. this is a guy who basically, one of the youngest billionaires in the history of mankind along with mr. zuckerberg. at 34, he had an nfl team. i don't know what you were doing at 34, i was still trying to figure out my life.

>> mike, if i could suggest here, the only thing is every year he announces he's changed. he had some major failures and -- >> this is true. >> -- every time he has failures in his earlier businesses, he could wipe the slate clean and start over. here, he can't. >> what's the definition of insanity? doing the same thing over and over again and thinking -- expecting different results? >> right. >> zuckerberg's got mentors. he has people he can learn from. there's nobody's counsel that snyder keeps. nobody trusts him, he doesn't trust anybody else. you look at don graham, they put strong people on there. >> i think there's something to be said, i remember this very well when i was covering patrick ewing for the new york knicks years ago, he said to me the difference between you and some other people i work with in this world is you'll tell me what i need to hear, not what i want to hear. daniel snyder needs to surround himself with more people that tells him what he needs to hear

rather than what he wants to hear. >> that's where we have to leave it. >> of the 300 people working with him five years ago, there are not too many of them left. >> interesting studies in character and management in today's "journal" compared with yesterday's "washington post" on dan snyder. mike, jeff, thank you very much. sue, down to you. >> that was a great conversation, guys. jpmorgan and bernie madoff. kayla tausche is on the banking beat. >> what did jpmorgan know and when did they know it? will there be criminal charges? we will talk about it after this break. in my world, wall isn't a street. return on investment isn't the only return i'm looking forward to. and my parachute definitely isn't golden. [ male announcer ] for some, every dollar is earned with sweat, sacrifice, courage, which is why usaa is honored to help our members with everything from investing for retirement

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next is every second of nbcuniversal's coverage 0f the 2014 olympic winter games. it's connecting over one million low-income americans to broadband internet at home. it's a place named one america's most veteran friendly employers. next is information and entertainment in ways you never thought possible. welcome to what's next. comcastnbcuniversal. welcome back to "power lunch." check out pandora, the stock is surging after hours increased by 13% over the same time last year. its total share of listing -- radio listing rose to 8.6% in december from 8.4% in november. it also benefited from rollout of its in-car app efforts. pandora is now available in 9 of the 10 best-selling vehicles in the u.s. tyler? jpmorgan chase reportedly close to a $2 billion settlement with federal authorities as it

resolves suspicions that the bank ignored signs of bernie madoff's ponzi scheme. kayla tausche has been covering the story for us. what do you know? >> for about two decades, jpmorgan was the bank of record to madoff and his investors. federal authorities for years have been investigating whether the bank turned a blind eye when red flags were raised about madoff's investments which about five years ago, were revealed to be a ponzi scheme. the bank is expected to settle as soon as this week over those charges with both federal prosecutors and industry regulator, the office of the comptroller of the currency. the tally close to $2 billion. the "new york times" reports a portion of that will go to madoff investors but the majority is expected to go to regulators and the price tag pushes the bank's legal tab just in the last 12 months to over $20 billion. most notably, it paid $13 billion to federal regulators for its mortgage practices leading up to the crisis, $4.5 billion to private investors who bought those mortgage securities, $1 billion for the london whale and other fees for

improper marketing of consumer products. it still faces nearly a dozen other investigations but slowly and surely, they are starting to clean up some of the messes and hope to do so before earnings on the 14th. >> put that $20 billion into the context of what jpmorgan brings in in revenues, brings in in profits. >> roughly a quarter of revenues. >> equal to one quarter of its revenues? >> right. which is fairly interesting. >> real money, but a quarter of one quarter -- a quarter of a year's revenue. >> the issues didn't appear overnight. they have been socking away money per quarter into their reserves to be able to pay for these days when they come. they did take a big loss last quarter, if you remember, because they all of a sudden had that $13 billion charge from federal authorities on mortgages so it is extremely expensive for them. investors just want to see this end. >> let's bring in scott cohn, who has been following this story since the inception, actually spoke with madoff not that long ago. this whole idea of reaching a settlement with jpmorgan, raises

the question of how can a bank be guilty, even though they're not going to prosecute them criminally, but no individuals be charged? >> it's a really good question. a lot of people are asking it. >> people do these things. >> exactly. and look at what they are -- what they're likely to be accused of. what they have been accused of in civil cases already. not only just kind of turning a blind eye, but also selling structured products based on madoff's returns. and there are e-mails, internal e-mails, we will show you some of them next hour, the talk about what they know and when they knew it, and yet it does not appear based on everything we know that any individuals will be charged or implicated in the announcement which we think is now going to happen as soon as tomorrow. >> when you spoke to madoff in early 2013, he said i have information that would make it very clear that the banks knew about this all along. do you get the sense that he's been participating in this

investigation? how does that work? >> if you talk to him, he also told us last month that he was sharing information with the comptroller of the currency, that's the regulator involved here. the people who have been following this more closely, people like the trustee, say that's a lot of madoff talk. but it is true, we confirmed that madoff did reach out to the occ, did offer them some information. it's something that they followed particularly as they were looking at whether jpmorgan impeded the investigation, and that could be an element of what we hear about in this announcement. >> very interesting and it raises all kinds of dilemmas, legally, ethically and so forth. thank you very much. sue, down to you. >> gun makers are constantly coming under fire over who they sell arms to. one american gun maker has taken a stand. we have that coming up next. plus, michael jordan was king on the basketball court, but what about real estate? that's kind of a different matter, right, robert? >> it certainly is.

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angela merkel fracturing her pelvis in a cross country skiing accident in switzerland. her spokesman says that merkel wasn't skiing fast at the time. several of her upcoming meetings have been canceled and for now, she will work from home. well, he was a master of the slam dunk on the basketball court, but real estate is quite a different game, as we all know. robert frank has the drama surrounding michael jordan's mansion. >> it is a different game indeed. the famous number 23 can't seem to unload his chicago mansion. michael jordan's estate in highland park went on the market in february of 2012 for $29 million. a year later the price was cut to $21 million. with no buyers, he decided to

try an auction. concierge auctions planned to bring down the hammer in november but postponed, saying they wanted to give buyers more time. the auction was set again for december, but it flopped. no one was willing to pay the minimum which is estimated at around $13 million. now it is back on the market for $16 million. what's the problem? after all, this is a plush estate with 7.9 acres, 56,000 square feet of living space and of course, a regulation size nba court that michael jordan played on. but it's all about location. most homes in this area of highland park sell for between $1 million to $5 million. so even at $16 million, it's an outlier in terms of price. brokers tell me people in the midwest don't really pay for star power so the jordan name, not really commanding a big premium here. finally, it's an issue of taste, as one broker told me. how many people need an indoor basketball court and doors from the playboy mansion? back to you. >> i'm not going to comment on

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welcome back. power rundown time. sue is here or actually, there, along with bob pisani at the new york stock exchange. let's talk first about the revolving door between d.c. and wall street, or money. it continues now with former fcc chair julius janikowski joining the u.s. buyout team for carlye group. is this trend something that we ought to be worried about in any way? >> there are rules that prevent them doing certain things for certain periods of time. unfortunately, i just think it's an aspect of this system. he was with the fcc in the '90s, then went to private business and was close to the obama administration. he wrote some important working papers for them in their election back four or five years

ago and now is at the fcc and leaving again. i don't know what you can do about it particularly other than keep pointing out that it's occurring. >> i think there's a distinction, at least in my mind, between moving into a direct lobbying capacity and something like this, where the individual is going to be part of a deal team at the carlye group. >> i would agree with you on that. i think that's a very good distinction to make. mr. genokowski is going to carlye to use the expertise he gained at the fcc where he was instrumental in expanded broadband and telecommunications in kind of the hottest areas and carlye wants to use his expertise to fortify their business in terms of seeking out deals and things like that. >> i don't mean to be naive and suggest they don't value his connections within the government and his ability to help navigate some regulatory, perhaps legislative areas, but i draw some distinction there. let's move on to ethics versus

profits. a small utah gun manufacturer has now turned down a potentially lucrative $15 million deal to supply pakistan with precision rifles. the company says they fear that their weapons might be used against u.s. troops. sue, this to me sounds like a case where someone's made a principled stand, at least it appears so, to say that some money is not worth making. >> that's absolutely right. basically, the ceo was quoted as saying listen, there is such a thing as a lucrative deal but you have to live by your morals and ethics and have to have a good gut feeling about this, and he did not have a good feeling about it. it's a smaller company and they are approved to sell weapons to pakistan, and he turned it down. >> i want to move to the next topic here. a new option on the 2015 corvette is a built-in dash cam, like a go-pro that lets you record and then share your driving skills with anyone you want. is this the wave of the future? quick thought, bob. >> the important thing is it's

got -- cameras and audio equipment so you can talk, curse while you're missing the steering wheel, and record yourself. for a corvette it works. for everything else, it's ludicrous. >> let's move on here. jetblue stock taking a hit as the airline braces for this major cold snap, canceling flights enmasse. was that move the right call? "street signs" is on the case in two minutes. as we wrap things up, the markets getting a little better. down about 13 points on the dow jones industrial average. so ally bank has a raise your rate cd

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it is cold in winter. that's not news. but minus 40 degrees, that is news and it's having a huge impact all over america on business, the economy and travel. hello, everybody. your top story, the weather. breaking records everywhere. it is turning nightmare into nightmare at the nation's airports. it is literally so cold that planes can't fly. jetblue saying it will shut down its new york and boston operations by tonight. tens of thousands of stranded passengers also have the government to blame. we will talk about it. >> there's a lot to talk about. in the meantime, let's go straight to boston's logan airport. another of