>> good morning. thank you so much for joining us. i am heather childers. >> i am fatty apatty ann brown. it is monday may 14th. thank you for watching "fox friends first. >> the trading blunder at our nations largest bangs. three of the heist ranking executives at jp more january chase are stepping down later today. one of the heist ranking women on wall street she is a 30-year-old veteran of jp morgan who served as a chief investment officer. joining us live from washington

with more details on this is kelly wright. hi, kelly. >> good morning to you. heads will begin to role as you mentioned at jp morgan. the company's $2 billion loss could begin as early as today. as the fallout continues jp morgan ceo is trying to control the damage acknowledging the company's loss but stating everyone in business makes mistakes. diamond says jshg p morg-- jp mn has done nothing wrong. >> we know they were sloppy and know we were wrong. regulators should look at something like this. we are open to regulators and they will come to their own conclusion. we plan to fix it learn from it and be a better company when it is done. >> dimon supports 70 percent of the dodd that's the 2010 law that is passed for banks. there is a need for congress to

exercise more regulatory control. >> i think what it points out is there are no rules of the road for hedging order ri tives. this needs to happen. the bill provide for it but it hasn't taken place. i have considered it an enormous loss in a high profile very good investment bank. >> republican senator says the regulations already in place should have caught it before the loss ever happened. i think there needs to be over sight investigation to find out what exactly happened rand why the president's signature financial services reform bill didn't do anything to stop it. >> that investigation in congress will also continue.

republicans can't less regulation democrats more. that patsy ann lea-- patty brings us to our bra on this debate. democrats say we need more regulations while republicans oppose it. senator carl levin had this to say yesterday on meet the press. >> they are going to decide by july whether or not we are going to have strong regulations as the law requires or whether or not those regulations are going to be end run by massive lobbying efforts from wall street to weaken the regulations to put in a huge loophole into the regulations which would allow the kind of risky bet to be made which the law says should not be made. we wrote a law. it was the rules of the times. th we wrote the language in the bill. we prohibit the bets that were

made here. we define hedging. that is reducing risks not increasing risks. as you heard from mr. diomo itself it was not a risk reducing activity they were engaged in, it increased their risk. we have to be careful the regulators are not undermine by this huge effort to weaken the rule by putting in a huge loophole which is called portfolio hedging. >> oo should banks be regulated? >> send your comments over. you can compete them to us or shoot us an e-mail to friends first at foxnews.com. we will read them later in the show. >> now it is time for your 5 at 5. no trace of a missing fbi agent from california. 35-year-old steven i've vens was

last seen at his home in burbank thursday night. a massive search combing through the vertigo mountains and los angeles county over the weekend turning up no clues in his disappearance. his hand gun was also missing from his home. he is not a threat to the public but believe he may be suicidal. defense is scheduled to start this morning in the former contender's corruption trial. he faces 6 felony charges is accused of conspiracy making false statements and violating campaign contribution laws. a federal judge presiding turned down the motion to dismiss charges against him. >> there's a major change coming soon to the skies over many cities. fo today the faa is expected to announce how they will help law enforcement to implement many unknown drones. they released a list of 53

places in 20 states that will authorize loans. there will be privacy safety and national security concerns that will have drones in the u.s. airspace. they announce it will be a momentous smimilestone in ameri history. >> jerry brown is laying out details later today on his state's revised spending plan. he said over the weekend the california budget shortfall ballooned to $16 billion that's up from 9.2 million back in january. he said cuss would have to come fr -- cuts would have to come from schools. >> maybe they can borrow tax money. two weeks into the run the avenger no longer facing competition from movies in this country stind it is looking to secure its place as one of the top movies of all times. already the film has taken into a billion dollars worldwide in the u.s. the film has taken in $773 million.

103 million that have total was taken in this past weekend. those are your 5 at 5 headlines. >> it is time now to look who is talking. >> this morning another big talker called for criminal charges to be brought against a person who laked classified information about the recently foiled underwear bomb plot. >> he said these actions are serious and put people's lives the ace t risk. >> this week is serious. this week essentially was first of all the operation was closely held. it was fta homeland security and tsa. it jeopardizes our ability to relate to other countries for other countries to help us and it gives a tip-off to aqap to be more careful about who they use as their couriers as their

bombers. so the leak really did endanger sources and methods and the leak i think have to be prosecuted. if puts people's lives at risk and causes the operation to be cut short before it gets all of the information it could have gotten and sends a signal to countries that didn't work for us to be trusted to keep a see receipt. >> time for the first degree weather update with maria molina. you need the umbrella as we head into tomorrow. we have a change in the weather pattern. i hope everybody enjoys the beautiful weather from the northeast to the weather in the weekend. a frontal boundary is headed in and firing up showers early this

morning. further off to the south north carolina where we have the yellow shading. you can see that across eastern kentucky. it will be a slow go we will see some of the big airports because of the rain amounts it will be heavier as we head to tomorrow across parts of new york city and philadelphia where we have some of the bigger airport hugs. as we head west ward early today across southwest potential turns severe today. we are talking large hail damaging wind gusts and isolated tornadoes possible across southwestern portions of texas. not a huge outbreak expected. you will see severe weather in place through out the day today. we will keep you posted through out the day.

temperatures right now not too bad across the eastern part of the country near normal 67 as we head out the door in new york city. pleasant 65 in dc and 70 savannah georgia and temperatures remain near where they are supposed to be at this time of the year across parts of texas. across the west you guys it is extremely warm out there well above average record setting temperatures out there. 104 for the high temperatures today. we have several excessive heat warnings because of how hot it is out here. there's not a lot of humidity. there is a dry heat. we are not talking about big concerns as far as heat index values but it's hot out here. >> maria molina, thanks. >> uncelting news for job seekers out there. what they are saying about the economy for the years.

this one an artistic student denied the diploma. why is the high school refusing to let him graduate? we will have the details coming up.

>> some quick headlines now. columbia will be the focus of a congressional hearing next week. secret service director mark sullivan and acting inspector charles edwards are expected to testify. they will be asked if there were any warning signs of this type of behavior and what will be

done to make sure it never happens again. one student remains in critical condition and three others hospitalized after a tragic accident in new zealand. three boston university students died after their van drifted off the road and flipped over. a vig till was held for them over the weekend. now to stories you can bank on this morning. there is new information on yahoo's scott thompson. you may remember he just stepped down as ceo. joining us from the fox business network is lauren simonetti. he has only been ceo for months over the weekend he is stepping down two things to tell you about. number won the resume he said he had a fake computer signs degree which he did not have. he told the board of directors he has thyroid cancer. >> what's going on with greece and how are they reacting.

>> we don't want another round of elections but looks like that is what we are getting. a new coalition is being formed but the left party doesn't want to keep it together they don't want any terms of that bailout which means huge awusterity and spending cuts. these are also economically weak. no spending cuts no austerity. >> bringing it back home. what about the jobs picture here? >> not too good. they typically do a survey of top economists. they find they are more pessimistic than optimistic about economic growth. they won't budge this year and they have a long way to go to bring down the unemployment rate below 1.8 percent. >> see you tomorrow. it is now 16 after the top of the hour. a husband of a 9-11 victim wants

to save the life of those terrorists being tried at gitmo. we will have the details for you. >> this autistic student will have his diploma denied. his grades were good enough. why is he not being allowed to graduate? a quick check of the prices at the pump. national average 3.20 a gallon.

>> quick headlines. taliban denying association of a peace negotiator. the close advisor to president karzai and senior officials was shot in broad daylight outside of kabul yesterday. a gruesome discovery in mexico. 49 bodies found dumped along the highway. they were found near the border. cops say it appears to be the latest karnage in the drug cartels. >> autistic teenager is in a fight. they are blocking him from getting his diploma. his family blames a lack of communication and compassion. >> the 17-year-old high school senior won't be walking.

>> i won't be able to really graduate. i can walk but i can't graduate. >> so here's the story. his grades were good enough mostly a's and b's. he failed the state required math graduation exam five times over. essatis tick. the state allows for students with disabilities to a apply for a special waiver for cases like this. the state education can throw out the test scores and allow a student can graduate denied the waiver for reasons his family says they haven't been told about. >> it hurts my heart because he is -- he is such a good person. and for him not to graduate and be able to pursue his dreams is really just an injustice. >> the state department changed the law that says all seniors must pass these tests in order to graduate.

these changes don't go in effect until next school year after it is too late for coffer. according to state regulations last year 6 percent of students failed that particular math exam. >> a terrifying ordeal for a girl who was home alone and was face to face with an intruder. >> a day after her reveal an 11-year-old victim was getting back to normal playing with friends in her backyard. this is her call to 911. oo >> it happened moment after she was faced with an incruder in her home.

>> she describes the suspect had a black hand gun. >> the 6th grader didn't stop until reaching a neighbor's home where she called for help. >> thank goodness she had the intuition to just run. had she not done that i don't know that she would be safe right now. >> police quickly flooded the area but the suspect seemingly vanished. >> kind of scary especially when you have little kids at home and you don't know what's going on. >> the girls gave police a pretty detailed description of the suspect. a man with darker skin 6 feet tall with long hair and grades wearing dark sunglasses and a dark baseball cap. this is video of a man with an eerily similar description robbing a store a week earlier.

this unknown suspect last wednesday. >> hopefully wait a couple more times somebody is going to recognize him contact detectives we will floel up on it and put one person. one kid is all we need. >> dignitarietectives are sayins the same guy. they have a good idea who he is. when they catch him cops will be asking him about it. >> ideally we would like to put him behind bars as soon as possible. >> scary. that was scott mckain reporting. police have not made any arrests. >> coming up a widow of a 911 victim meets with ksm's lawyers. he wants to testify on behalf of the terror mastermind. this woman went from occupying wall street to occupying her own business. her story from protester to capitalist next on fox and friends first.

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>> welcome back. >> i am patty ann brown. >> i am heather childers. we begin this morning with a fox business alert. >> heads are rolling this morning in the weight of a staggering $2 million scandal of jp morgan chase. three of the heist ranking executives stepping down as early as today. topping the list one of the most powerful women on wall street. she was one of jp morgan's chief investment officer. what it might mean to you is personal finance expert kierra givens. >> the numbers are astounding 2 million in losses. potential another 2 billion in losses. it happened in 6 weeks. another huge huge number. jp morgan won big bets. unfortunately it didn't work out. they were too heavily exposed. >> is there a need for more

regulations? >> my take is no. you need the big banks. it is a global economy. more regulation is not going to stop this type of thing. are you going to have the banks waiting for these issues to happen. jp morgan the largest banks out there we take notice of it. >> everybody wondering is their own bank account safe? >> they have a trillion in the accounts. as long as it is insured you can check the ratings and reviews of the bank. not to worry too much. this is just something that has happened to jp morgan it's a big number but it is as dimon said self-inflict self-inflicted. jp morgan an investment option for some people. what are we expecting to see on wall street now? >> obviously took a big height

on friday down 9 percent. >> other analysts saying this is just a flip sounds like a lot of money. for jp morgan not really. >> consume ires get disgusted when they see this sort of thing. they are still profitable. relative to the big banks. when you see these types of stories they get disgusted and angry and mad at the big banks and move to the smaller regional banks and to the credit unions. >> what is next? >> we won't see another shoe drop hopefully. the number is 2 billion in six weeks. that could get larger and there could be more talk about regulation more talk about breaking the big bank all to be continued. thank as always. time now for the 5 at 5:30. five top stories making news at

this hour. the husband of a woman killed in 9-11 is trying to save the mastermind of khalid shaikh mohammed. >> according to this morning's new york post he is offering to testify to keep ksm and co conspirators to keep him from death. >> washington, d.c. honoring and remembering officers who have given the ultimate sacrifice. ♪ amazing grace >> the names of 362 law enforcement officers who died in the line of duty including 163 who died this past year formally added to the national law enforcement officer's memorial. thousands of loved ones attending a candlelight vigil

and memorial. >> it is kind of overwhelming how much support and love the officers have here. >> it is a horrible feeling. they don't co they>> there are 960 names on the monument. >> they are battling wildfires across arizona. 340 people were forced to leave their homes. they are 4 miles away from 300 acres burning in the bradshaw mountains. they are pulling in air power to help douse the flames with water. no word on the cause of the flames sparked over the weekend. tracy foster got her big break when an executive at a financial services firm befriended her at the park last october. helped get her job. less than two months ago the new yorker who has a ph.d. in

biomedical science started her own business called action bio med.com. she says she is still an activist but also a scientist. >> film director tim burton takes a dive. he is standing with actor johnny depp and burton falls backwards off the stage just as a staff member runs to catch him. burton bounces back just as quickly as he fell. the two continued on with their press event. they are premiering dark shadows. >> i want to see that movie. >> don't leave the house without getting your first degree weather update. maria molina has an update with hurricane season starting. >> thgood morning. talking about hurricane season already starting tomorrow may 15th. we are actually seeing some activity showers and storms firing up with possibility of becoming something. we are going to keep a close eye

on it with 60 percent chance of that system becoming some kind of tropical depression or storm. otherwise we are talking about a fire danger across the southwest. we just mentioned at the 5 at 5:30 there was a weekend across arizona and unfortunately it is still hot out there. still looking at gusting winds 20 to 30 or 40 miles an hour at the time. had a beautiful mother's day weekend. northeast down into florida. we have a frontal boundary that will be pushing eastward that will be firing up rainfall. philadelphia travel should not be a issue. may see a shower but heavier stuff going on today and

tomorrow. southeast fine 8:00 a.m. this morning. 66 degrees and temperatures across the eastern third of the country today should be near where they should be this time of year. heading back across eastern tennessee and northwestern california. grab the umbrella. you will need it today. as you head off across texas showers early today and some of the storms could turn severe large heal damaging wind gusts and isolated tornadoes will be possible. no severe outbreak, later on this afternoon high temperatures 69 degrees at new york city 67 in dc. >> the rock and roll hall of famers who ran through like green onions has died.

>> oo donald duck done. booker k and the mg's passed aw away. >> teen idol has joined the fox tv reality series as the 4th and final judge. lavato is to join him and brittany spears when they start in november. sophia has one special man in her life. her 16-year-old son and he posted this special tribute on youtube for mother's day. >> the best part of her she is still the same. she hasn't changed. she had her career and she

managed to raise me at the same time. >> you are a mom. hopefully you had time to be with her. >> sports stories making headlines at this hour. matt kutcher winning the player's championship by two strokes this weekend. two under 70 to finish at 13 under par. he was his 4th on the pga tour. the biggest title he sell crated with his wife, two sons and his mom. >> lebron james picking up his third nbc trophy. he won against the pacers in the eastern conference semifinal r series. he had 15 rebounds. final score pacers 95-86. madrid opening championship this weekend but the real prize came after when federer was presented with will smith's suit

from men in black 3. the fresh prince is in europe doing press for the premiere of the movie. >> another one i want to see. 39 after the top of the hour. president obama in a new york state of mind. he will be attending an lgbt fundraiser in new york city. we will have a live report coming up. >> one college graduate not only picking up their diploma but also getting a diamond. it is a two for one.

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wnyw th wnywty hernandez has more. >> good morning. it is a safe bet the president going to touch on gay marriage several times during his visit to new york city. it is a jam packed schedule beginning here at columbia university women's college and barnard college. he going to give the commencement speech before about 600 graduating women and some in the district of columbia as well. we unusual speech. he asked to give the commencement speech at the school. he is going to discuss on the same-sex marriage last week.

he will save tape an episode of "the view that will be herriair tomorrow. then a fundraiser in the chelsea neighborhood of new york city for an lgbt fundraiser and latino fund rarzs ricky martin will be hosting that event as well. he is focusing on same-sex marriage through out his visit. news week will have a cover up coming at the end of may with him on the cover calling him the first gay president. certainly an issue very much on the minds of new yorkers and the rest of the country right now. a big topic for commencement speeches. the subject same-sex marriage. >> that is the latest from here in the upper manhattan section. >> thiern dez live in m -- tai hernandez live in manhattan thanks. >> we span the globe and see

what stories are making headlines overseas for you. a plane crashes into a mountain in the himalayas while trying to land at an airport. initial investigations. alleged nuclear testing. officials tracking the nuclear program has provided information leading to this computer rendering of an explosive chamber. they have not denied the existence of such a device. a special event by the queen as she arrived to celebrate the 250 state and commonwealth visit she has made during her reign. hundreds of horses an performers take part in the jubilee. >> time now 46 past the hour. coming up we showed you the cover of news week. it is raising some eyebrows in washington this morning.

we are live in the nation's capital with the fallout. >> it is your last chance to enter our question of the baydan the wake of the jp morgan chase scandal. should there be more regulations or are there already too many? >> first let's check in with ryan kilmeade to see what's coming up on "fox & friends". >> still working on the show. we are going to have donald trump and dana perino coming on. plus, oh, yeah, we are going to meet a guy, one man who brought an unlimited lifetime airline pass now american airline wants the pass back and finally did you know your high heels and vitamins could be killing you? fox and friends is just minutes away. figure out the rest of the show. have a good time last night? happy mother's day.

>> over due library books from a 4-year-old. little katelyn they were due back to the area last ok labibry officials after several attempts to get them back the police made a courtesy call to the child's home. being a daredevil is in this man's blood. nick walinda of the famous family practicing on the tight

rope he will use when he walks above the niagara falls. >> the president's stance on same-sex marriage was a hot topic on the campaign trail and on the sunday talk shows. how will it play out for voters. joining us live from washington is kelly wright. what they are schedule to do do today is give a commencement speech what many people are still reacting to comments on gay marriage. the president revealing from a personal point of view he supports gay marriage. the president has been get age lot of attention for his supp t support. look at the cover of news week magazine. the president seems to be getting a lot of support from fellow democrats. >> i don't think it's a flip flop. there is no political cal cue louse in this.

if he is going to do it from a political point of view it doesn't make any sense. it also happened to me. >> over the weekend mitt romney delivered the commencement address talking to the largest evangelical audience yet sharing common values and expressing sport for traditional marriage. >> marriage is between money man and one woman. >> the issue continues to be debated and some believe obama is giving governor romney is possible advantage in the general election. >> i don't think the president did a political cal cue louse to do this. if you look at the states north carolina a key swing state ohio they have an amendment. 16 of the key swing states 10 of

them have marriage amendments. these haven't just kind of barely eeked across the line. >> here's something else to keep in mind "washington post" abc news rolling poll says 59 percent of african americans are opposed to gay marriage. a gallop poll says 50 percent of republicans make them less likely to vote for the president in november. analysts say it may be the swing state >> earlier in the show we told you about the continuing fallout from the $2 billion scandal at jp morgan chase. three of the heist ranking executives will be stepping down as early as today. we want to hear what you think. do banks need more regulations? >> here are comments to some of your responses. tracy says who regulates the regulators? we have massive banking regulations in place and it only serves to cost consumers and let

jp shenanigans take place. >> plenty aregulations are on te books. adding more regulations is not fixing the problem. >> we have regulations on banks and consumers. investors and consumers need to accept responsibility. thank you to everyone who responded. keep the comments coming in. the time right now 55 after the hour. a diploma and diamonds not a bad way to end your college career. >> very nice. >> now for your word of the day all scrambled up. your morning scramble. can you figure out that word? stick around after the break we will be right back. with the spark cash card from capital one, olaf's pizza palace gets the most rewards of any small business credit card! pizza!!!!! [ garth ] olaf's small business earns 2% cash back on every purchase, every day!

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of how a shipping giant can befriend a forest may seem like the stuff of fairy tales. but if you take away the faces on the trees... take away the pixie dust. take away the singing animals, and the storybook narrator... [ man ] you're left with more electric trucks. more recycled shipping materials... and a growing number of lower emissions planes... which still makes for a pretty enchanted tale. ♪ la la la [ man ] whoops, forgot one... [ male announcer ] sustainable solutions. fedex. solutions that matter. >> it is now 58 after the top of the hour. and here are some stories making headlines right now.

a thief taking 54 years to fess up. 72-year-old -- the 72-year-old man finally confessing that he stole some prized hydrangeas from a park in tennessee. he swiped them because he was short on cash and needed a mother's day gift. here's some good news. he not only came forward but presented the park with the same plants that he stole. >> and a marijuana coffee shop across the netherlands banning tourists from consuming marijuana the country is famous for. the ruling comes from an attempt to slow the drug regulated crime that has become prevalent across the country. and finally, an unforgettable graduation day at american university. sarah cooper getting the surprise of a lifetime when her boyfriend sam miller also a graduate got down on one knee and proposed and you can see she definitely said yes. >> stole the thunder a little bit from the other graduates but it's still fun. >> congratulations. >> time to get scrambled up.