charles: jonathan is getting a waiver on a facebook account and they won't be snooping on him today. you guys are the best. love you. have a great weekend and we will ch >> i am adam shapiro and here is what is money to night. the government trade wreck may be close to an end but will anybody be left spee in the? and lawmakers climb to potential deal but if you think you have a good that maybe the men behind in all new study th who made neyoday? justhen you thought the n should -- could not shine and thbrighter polling away expectations again. en if they say it's not, %-adam: straight to the

showwn ocapitol hill but saidn a way yohave not seen before that means the winners and losers for a house republicans ofred a new proposal to endthe shutdown and raise the debt ceiling that we're at a breaking point a w poll shows 60 percent of americans would fire every single member of congress you almost he to lau at at how ridiculoustseems that we're even at this point. so why not make a game of it? to the treasury and the international monetary fund and editor of "the wl street journal" editorial pagetheseuys know their stuff. thank you.

we will break this down in the who wind up paying 310 million buthe appral rating 24% for the grand old party they have a favoble reviewf the g.o.p.. is it salvaged fro this? >>. >> i take it in context. thg.o.p. loses but i don't want to move too far ahead but i don't see anyinners with this wole esode but we will take get one a time. >> they take the bgest poling hit there is a chapter they could win the next battle? >> the short term election? >> they could get reform out

of the negotiations or politically they reveal the esident has no intention to reform anything. adam: so space out if they prefer a democrat-controlled congress to agovernment - republican? of this is accurate win or lose? >> i think the republicans have a hard time losing the house in 24. these dramaticetiations end episodes ever got was the agreement is reached. remember the last time we had a debt ceiling crisis got a sequester that cut spending by $1 trillion over 10 year the ly reliable cut we have got. adam: to use the they gain control of both houses? >> no ifhey gain control both hous then erything

is on them it is there fault but i dn't see them winning a house spinet they have been suffering the hero version but not the winner. >> so the president's approval h remained stle since the shutdown actually going up two points since last month. whatappens when the president passed to negotiate on entitlements? >> does the prest win or lose? >> i think he loses becse most people do once entiement reformnd one the pconditions is that entitlemts are on the table but my guess is the only trade out there is the

democrats would lo to see the quester lifted and in exchange they may give up some restrictnn on the growth of entitlemes that remains to be seen but it will remain interesting we will get some hints about th if we see that the vice president bided is allowed into theoombut that has not yet happened. adam: bu can the president get the left-wing to buy into j.d. when the entitlement reform? >> i think he is a loser and part of that will street journal nbc poll of majority the country now sayshe pushes his owngenda instead of doinn what is right for the country i think at is a loss if you lose me than 50 percent of the pele but will he get entitlemenreform? a lot of times it is portrayed ps2 win over the

left wing but ink the problem is mr. obama he goes to off the record tenders they think they can to deal but i don't seetwere any indication he is seat - showing a willingness for reform. adam: theouse speaker boehner? win or lose? >> i think ultimately he is a winner he has been a loser up to now and tuesday and but he has shown great forbearance and patience d people those he is in a tightpot with an unruly house to move ahead a if he can get thh preside to the table to talk about entitlement riffle -- reforms in to talk about the debt cling crisis and tax reform that would be an excellent idea that hooks good. >> he makes theest of a

very tough suation of the derates of his own part. >> he could isolate can't it notasy toeep the coalition together but just as you wondered as the guy into thisess will he still be speaker butow people are thinking yes he . adam: picking up the pace the u.s. economy? >> it is a wind. when theovernment is not issuing of regulationsith 11 days of ahutdown tha is a win. adam: james? what do yyu think? >> i have to disagree'' we willee is growth is close at zero partly because of all of theruptions and uncertainty from this

episeut subsequently if we should getome in tenement reform or tax form now with high probability but then ultimately the econonomy wins. adam: finally the citizens. winner lose? >> again if we get some movement to an taliban reform the american people win ything to process of congress is broken and this does not help the american people and does not build their confidence and makes the u.s. grnment looks silly in the eyes of the world that does not help the erican people. >> an elsie the president going for significanrefo adam: we appreciate both i did not mean to diminish the importance of what is going

on withthe win or lose but i think people have been listening to the debate back andorth adauseam and we thank you.lighten it up. he may think se states a sitting prtyut the ma is here to grips the numrs from libya to egypt is the u.s. sliding the mideast berndt while lawkers do berndt while lawkers do get out in

♪ grew up in a small town and when the rain uld fall down ♪ ♪ i would pray ♪ i'll spad my wings and i'll learn how to fly ♪ i'll do what it takes till i touch the sky ♪ ♪ i gotta take a risk, take a chance, make a change, and break away ♪

adam you know, whe your taxe aree find out where your state ranks by that tax foundation is the tax territories from coast to coast we have an economist from the x fountion thank youfor printing those numbers and now expinin them theres good news south dakota in nevada and wyoming top the place to avoid s.

whatre t factors that make tho the toplimate states? >> one of the good characteristics is the top-10 is states that go thout one of the major tax categories in wyoming and south dakota they go whout corporate or individual income taxes and that is a burden that they don't face. adam: but in florida they have high property tax. >> you are ght so we adjust for the differences and agreed to by the categoriesnto five different tax categories corporate, individual, the sales, property and unemploymentnsurance and aside a wait and compare the rates across states. florida is number five high property taxes but still no taxes on wages which is a good place to do business. adam: at the bottom is the

people's republic of new york a and new jsey. what makes them so trouesome? >> with this index is not just how much is collected by a state there is other rerts that will show those numbers but this is a study of the state track - tax taxation of income or maybe a states have special credits for particular businesses engaged in activity they deem a favorable in theork and new jersey they have a narrower tax base and a high tax rate on business activi. adam: give me an example of double taxation in new york state capitol in come taxed once through the corporate income tax then taxed again individually paid out in vidends. th stes that go without individual taxes have

preferential rates of capital investment they will noe hurtful economically -- economically adam: is the a sliver of good lightning? >> this week goverr cuomo has announced there will be a blue ribbon pin tax relief commission that is formed. my a advce is anything that is favorable could bog them ahead of new jersey. >> once this older gets their tee i am not so sure is texas is no longer in the to10 places f t climate. what did they dorong? >> governor perrhas been treling thcountry to talk to mayor lint most recently did not fare very

well how it is a great place fobusiness. but they have bn overtaken by indiana. they have been cutting the corporattax rat year over year it will be a 6.5 and individual is a flat rate of 3.4% but texas still has issues in the business tax code with aistortion gross receip margin tax i is applied all levels of business tnsaction so it is a great place in terms of not having taxes owage and come but until they clean up the marg and. adam: a quick question. about 20 states, are the majority of those do they contribu more to the federal government ofaxes or take more than they contribute on avage? >> what they give the most

is the inme levels this is with therogressivy of the income tax code. we did not look at that. these are just taxes ashey ply to busisses. adam: this is an issue like aces in mississippi and alabama they take far more than they contribute but that is another discussion. re we are number 50 maybe we will get our act together thank you for joing us. libya is unraveling in syria is an absolute mess and we st guarded. is the budget debacle making the turmoil grow in the mideast? jpmorgan host the first er quarterly loss under leadership and will jamie died in the force to break apart the bank? a question of lot of

adamturning our attention and overseas impacting our ability to deal with the escalating problem in the middle east. with somali raidsnd increasing violence is in iraq. with a foreign affairs in check overseas here to wait on the questn is mike baker former cia covert operations officer. does affect u.s. government has been shut down necessarily mean foreign operations are not funded? >> not in t short term.

a lot have as much impact on the tactical readinesss then sequestration but put yourself in the mind of the operators or the military am working on accomplishing the mission. you justave to worry abo home. you know, what to worry about the roof leaking or a the hot water heater because you have to accompli the mission weatr picking up the high vae detainee 70 thing that distracts is a bad thing. now imagine you're in the field word about the hot water heater buif your wife can pay the bills because of the shutdowns of that is where it has an impact.

adam: as a teenager i was fortunate to live overseas during a presidential election i uld see how people view the united ates there is great joy but i imagine now it is the revee. if people our hot style during thedysfunction is that a plus? >> they have a certain amount of glee and smugness. the with the credibility of russia or china or iran those o are at odds with r interests. in with this cynical view of how dysfunctional we are there is a rather word for it to. people are watchinghis very aggressive and al qaeda is looking as well.

am: katy mcfarland h been our guest issueut a recent trip to egypt b for the generals in powero stay in power they do not understandwhy the u.s. is cutting assistance to egypt could it be our best interest to do this? >> this just shows the dysfunctn the forgn policy. for several years they specialize in sending in consistent msages that is bad for farm policy. the capybara he was not a great guy but we deal with unsavory characters every better do that for our own. adam: and they were stable and at pace then we tosssin under theus pretty quick.

then they realized tte muslim brotherhood was not all goodns en people caot in greater numbers to get rid of mor instead of mubarak but they saw what haened to they lose that continuing ability to say you have o backs. >> that opens the door f the russians. >> absolutely. >> to every corner of the globe money is flying around first to china those that did mtt it has commit bor violations. but its it is bringing that factory in with the company policy. the goverent decided to privatize royal mail and investors cn not getting enough of the stock that at

least britain's government part of the shares. theyade an additional 1.$1 billion on he sale. and then judge may have shot do the sova tax but that don't stop the mayor in mexico its president i is proposing and $0.8 per liter tax on soda to combat obesity in bloomberg said they donated an unprecedente amount to back those efforts. the mexicansnow the people of its salt on top of sa? has jamie died in been beaten? hitting the bottom line isn't the first of the too big to fail banks break up under its ow terms? who made money today? who is turni the lights

out on their competition?

. ♪ >> are we watching the downfall, and of t chairman and ceo? the bank posted its very first quarter loss of almost a decade this morning when it reported earnings. they took a hit, almost 400 million, including the sky highost of legal bills. obviously stemming from a slew of lawsuits allows some of which they still have to settle. experts now last the of this could be the first to big to fail bank to break upon its own. major "money" business. with me now, director at the cato instute and charlie gasparino who covers the banks for us and the inside discussions and posed a question about a month ago, with the board of directors at jpmorgan che ever do a calculation to determine it would be more

profitable to split apa and have the investment bank go back being no access to the federal reserve wind up and separate and have a commercial bank be a separate entity. is that goi to take place? i don't think we will see the the commodi, student lending. some of the non-core, even though these business generate a lot of reven, things that are being spun offecause there are more politically toxic. the conibutio is ait smaller, so i don't think we're at the point where we expect to have the investment bank spun off looking for a source of revenue, they're not going to let that big of a pce go away3 anytime soon. adam: but regulators are breathing down the neck. most of the lawsuits are battling. illel things they're trying to negotiate stem from their

acquisitions of bear stearns after the government essentially beg to jamie dimon to take over as wells washington mutua so a failure of the government to come afterhem? >> it certainly shows the way it this was done the wro wwy. barclays, yes, they have a lot of pblems, but the problems by and large don't come from that position. if they had brought them out of bankruptcy they would not have been able to buy these plane. 100 percent i agree it is a sens of the government asks you to come in and give assistance. let's not dismisshat kaytoo certnly drove a hard bargain. it certainly did some due diligence. obviously not enough. i a greek. there is a extent to which there were asked to hp and now they're being punished.

ad: there was terribl. when the u.k. authorities rejected the deal bore the financial collapse shareholders could be cheering. with morgan cha revenueell at the bank in the quarter that will not turn any time soon. mortgage originations are falling. our banks going too go forward n a cnging economic climate? >> it will be tough. making it very difficult law commercial banks side. it will take energy ofhe small-business market. it wl take creditardarket. it is really hard to see how

jpmorgan it grows the commercial bank in a way that makes up for this revenue. as the fundamental reason why i am skeptical that would get rid of the investment bk is hard to see with a commercial bank will deliver revenue. adam: it does not mean it will be spent for future ligation and legal issues. alreadypent 9 billion are 7 million after taxes. >> i mean than $9 millio alone, obviously it is just a massive amount of moneyo pay legal fe. many of which were f companies that were acquired ratr than actions they made themselves. i tnk 23 is conservative. i think that they will probably have legal fees that come in, but at this point and i think jamie dimon is making the right cision in terms of let's make sure we have enough money aside to take care of the losses. of course we are not talking about the expen side.

there probablypinning at least a billion, 2 billion a year, dodd-fnk compliance, hiring dozens of ople to the work with new capital rules, the new resolution rules. again, you have seen pressure. it is hd to see h they grow revenue. adam: a yes or no question. it is a softball. this jamie dimon surviver not? >> most othe problems now people are attributing to the purchase of bear stearns, what move, wasn't unusual, you can complain about doiligence, when i think he's getting a bit of a ps. adam: areou a lawyer? -2 a yes and no question. >> i'm an economist. my years of being on capitol hill. adam: appreciate your answers because ttey're more valuable when they are not yes and no. ank you very much. now that we know janet yellen ll take theop spot at the federal reserve, tom sullivan as a few thoughts on what you can pect. >> t new head of the federal reserve would syssem is to be

confirmed. the guessing ge supsedly began. supposedly because he is a newcomer. prior to m alan greenspan, chaian from 18 years. th criticism was that he held interest rates too low for t long and paraded the housing stock market bubble the pop and 2008. what does bernanke do? e captain even ower. the bubbles to keep on going. wall street loves it. will we really need is the medicine we don't want to te. artificial propping up the economy. if y would do eight fairly slowlynd carefully it mht work. unlesshe surprises all o us shwill keep expanding the

artificial economy untilt pops. adam: be sure to watch t tom sullivan show this weekend. you can get it on saturday and sunday right here on the fox business network. coming up on "money," franchise friday. its function is not just running rampant in the sea what do you do if your employees start acting ke, i don't know, our lawmakers on capitol hill. don't kid yourself. it is bound to happen. two members of our franchise family will tell us howou can handle it. at the e

♪ adam: its "franchise friday." what a week has been with the government gridlock. things j won't get done if people cant get along and work together. in light of that we wanted to e how our franchise favorites would handle similar situations in their own stores. no one in congress is taking responsibility.

is it as easy to push problems to decide when you are the face of the french as? with me now, subway franchise owner. let me start with you. did you ever think owning a franchise they might have to deal with sexual harassment ises or the kind of issues that can arise? >> actuay i just found out about a certain insuran policy that was suggested i take out. i never had an insurance poly before, o i just lrned about it. we justook it o last weekend i was asg john in the green room, never heard about this and he was explaining a little bit about i it is a good idea to have. adam: totally blown away by ts because it never would have occurred to me, i would need to protect mysf. >> typically what i would advise is take aegalcounsel and is some type of umbrella insurance.

adam: out the use circumvented? >> i have not seen any myself. but i have heard stories of peopleexual hassment, cases small-ale, slut touch things like bickering in how you handle that. the documented, fire people. all different tes am: your previous business, i'm sure you have people who bicker. the truth,he truth, the truth you anaze both sides,ou y and say let's work itut, never. yet to be very diplomatic about it. if you can't then you have to make a decision, do i let those people go or make it work out

between things. you can't let one person go because then you goursf into hht water. good thing you have the insurance. have you had situations where two employees get in a fight over so much becau of that sentenne? >> not abo the food portion and rationing, but definitel. what we do ually is said one person down iividlly, said person be down, both sides of the story, convene with management. what is a tennis. adam: it never wou have occurred to o document. you have not even of bins -- the permits. coratulations. >> the construction departments. >> document everything. >> you shod have everything documented. an incident with any type of employ.

keep in the file because that will be your backbone if you actually need. >> wha you can do in additn as a business owner is set cameras in the store. that goes back sixonths to year. take, you can look at that. adam: you have legal fees, an surance come not the permitting. and thenou have to put cameras in the store. so quick advic is this the kind of thing y can circumvt and the hiring process >> well, the on going to the cameras now. certain cameras that will be more up-to-date. you can actually see something that goes on. this way if you are not there and you don't catcit it is the best thing. >> is screening, the background check and you can avoii possible

problems. it all starts wth a hiring. adam: and the franchise comes with a code of business responsibility. >> up toward with people telling you x, y, z. am: the key for a dry yes. this permits and on time. it will be exciting when you open now bening kidsacross the country. kraut funding is not just for siness start-ups and more. teachers are turning to the concept to help stock up on school supplies. fox news correspondent has the details for us. how common is this becoming? >> it is becoming quite common. scol has only jus begun and teachers all across the u.s. have ponied up a lot of their own personal cash for things like paper, pen noooks. cording to the national schl supply and equipmentssociation

, tchers been nearly $1,000 per year of tteir own money o a glass from suppes. now strangers and more numbers are showing a donatio is there a crowd funding website designed specifically for teachers, nors jews. this is a nonprofit organization started by a fmer new york city teacher who created the websit where teachers post which lists coal projects. . >> we vet and validate the project fore posting to the publ sight. when a project is funded, w do not giv the teacher cash. we fulfil the project. ift is a field trip, we a paying the museum and bus company directl. purchasing the bucks. >> and t get the ball rolling best anonymously donatedo the firs you projects as quickly created a buzz oneachers. a little white lie, but it definitely paid off since 2000 they raised more than

$200 million, the mark they crossed just last night remics a private dollars in corporate sponsorship. me pple there were a bit apprehensive about posting needs online efforts, but once supply started coming in the students' reaction setting off. >> you feel a little tentative about putting such a big project up. so eensive, but you know tha e person is not funny man. people from all across the country are contributing, even a dollar, $5, $10. it alldds up in your project is funded before you know. >> cities across the country are recognizing the need for additional funds. philadelphia is launching the philadphia edution supply fund. finitely picking up steam. adam: it is a great thing bbuse it is helpi kids tionwide. i get this kind of -- those o us old enough to remember, and i don't think that you would be. all of these kidsre misng -- missing out o the joy of eographs did those. -he reded it would come to you. you're not old enough. >> i have heard of it.

adam: you have heard of it. it is a xerox world. thanks. next on "money", starbucks ceo isn step nunumber thr of this week plan to e the government shut down. why? is aoffee house. wille start leaving a bitter taste in amounts of his customers and investors? stick around for "spare change." you nev have too much "moy"ks

♪ adam: it is time for a little friday fun with "spare change." today were joined by jo ling kent and jared guy randolph. have you been watchi what is going on at starbucks? that company islsoicking on

the goverent shut dow. starbucks took out as the -- ads in major papers promoting three. it pushes for lmakers to compromise on the budget and reopen the government. free coffee. encouraging lawmakers to come together. and ifhat was not enoh, one washington d.c. starbucks is collecting cash for furloughed workers. some may say it is nice for starbucks ceo howar schultz ys show his support, but critics argue he should stay out of politics and stick to making ffee. >> this is something he has done before, 2011, but to bickering. it will be a liitle bit less effective because last time the city will affect the politicians more directly, but we a talking about it. a great advertisement for @%arbucks. it makes people feel good about starbucks which is corporate.

cotantly being fought. thiss good for us. >>o discover they're using the dive from the crushed red beetles and south america. we interviewed. what are you doing? >> he keeps saying thate does not want to be involved in politics. if you look at it, starbucks seems to be the cultural at the center of what is happening socially, and it is a marketing ploy that is working for tm and relates to what a lot of their consumers and the u.s. population feels about what is happening with the u.s. government. we wanted to fix the problem. this is a way for him to initia the fact that we are concerned and aware of what is happening. >> a lot of ceos have been speaking out. youano to business roundtable.3 major ce in thunited states saying getr act together, congress. see echoing what is peers are doing? >> see also seems to set a precedent.

he has done this with campaign finance reform and now he has moved on to the government. there is a french praise which comes to mind basically saying with power you are supposed to ve a certain amount of social construcand a certain amount of socl responsibility. politicians are obviously not concerned about that. he is taking this uriginated eak out and say that socially we need to go ahead and fix the problems that e happening. adam: jo lingent. >> it is a huge, easy opportunity. he certainly has an interest in this town es not want tthrow his power aroun, but it is easy for him to come out a do this an generous and good will for the company in the brand. adam: final question very quickly. starbucks are duggan announced? >> srbucks. >> i have to say that been done ads. adam: i'm with you. not to be rude, but take a shot of this guy's come. what do you bench? >> a lot. am: all right. appreciate you both being here.

up nextt who made "money" today. heays there is no "money" to be made in solar power. disguises made nearly 200 million because of it. e answers right after this. you canever have too much "money." ♪

♪ adam whether it's on wa street and main street, here is to make a five today, anyone who owns solar city. along with the chairman whose good luck streak just won't let up. it is specs installations of solar panels to almost double xt year. it credits homeowners and their ability to of lease solar panels. the news sent the stock skyrocketing a whopping 23%. he made $1,804,000,000.

must b nice. also making "money", everyone who own spirit airlines. the note thrills a fee-happy carrier saw a big surge in traffic for september, up nearly 29%, alsoiking a look. that sent the stock soaring nearly 15 percent scoring an all-time high. meanwhile, losing money, the vatican is recalling more than 6,000 medal commemorating the first year ofrae's strained. typo. they misspelled jesus on the metal ded says less this, l-e-s-uss. reportedly up in arms. that is all we have. i know make the jokes. readhat they wrrte. huckabee may "money" today. be sure to tune in again. every weeken evebody, and "the willis report"sext.

♪ buying, thank you for watching tonight. we'll seeou tomorrow. >> how incentive and cold can you get? >> that is what iear if a challenge a welre program. >> we're talking about people that we ought to be rushing to try to help the needy did benefit credit cards, edt cards. ♪ john: free stufforictims. bill o'reiy. >> no matter what the evidence, no matter what facts are presented, the liberal line will be the same if society's fault. john: she blames her parents for bad attitude. the back street boy's neck rter blames his drug binges on paris hi