s with misleading statements such as goldman-sachs, j.p. morgan, citigroup to the mutual fund complexes that loaded their funds up with riskier mortgage assets than they disclosed to their investors, morgan, keegan, schwabb and other companies. we've been active across the board. we have a specialized unit to handle these cases, and we're vigorous across the platform. some of the concern sometimes is reflected in comments that one or more of these folks in jail, criminal authority. i area. they are or are the firms the biggest e at big executives certainly some of company issuer side in countrywide, new century, and those companies, we charged c.e.o.'s, c.f.o.'s, senior corporate officers. in the investment banks, it's a little different because the cases that we've charged in this area is the issuance of a particular c.d.o. that was misleading. those kinds of transactions often don't get vetted in the executive suite, right? some information does. when you're talking about company earnings reports and disclosures and prospectuses to advisors, tho

and the senate and s&p also saw paul sutton did. half to j.p. morgan chase seattle apologize and capital this morning for trading losses that for he will announce the steps that are in place to alleviate any future losses. >>darya: is a new survey suggests china which is seen as the world's leading economic power. this is from a research center that did a survey. 41 percent of people interviewed ranked china as the number one economy while 40 percent of the u.s. on top. the survey also says that china's image has grown more negative of the past year. >>darya: right now we're live on the scene of an apartment fire in redwood city. he can see the fire torture this apartment. we have word that this is a suspicious fire. and we will have the latest in a couple of minutes. we're also keeping our eyes on the weather. the fog is back. offs thing in >>darya: you can see why the governor of colorado has declared a state of disaster as the crews are fighting in giant wildfire says they will have millions in federal funding open up as well as the use of the feder

s were ruined by law and surely merrill lynch j.p. morgan goldman sachs the skills they really need to be successful and rape not just consumers customers investors but countries entire countries as a result goldman sachs was instrumental in raping greece. surely. the guy who did this administrator that was forging these professor professors signatures his last name is sue this is that a greek last name and yeah it sounds like one of the ordinary what are you going to write ok the guy went to rowan and reservations. scumbags everywhere. good job he's worked at he's doing is teaching the bankers look you can't just say i can't you can't say i want to be a thief but i'm not going to steal those gold away if you're going to have a financial teaches guys try fiction where the best ok rod law love and all right let's move on to find out that's the curriculum that helps you get ahead and on wall street for real let's let's move on because just last year u.s. president barack obama announced a national robotic initiative to invest seventy million d

s f dot com/mornings. $2 billion a drop in the bucket j.p. morgan chase counts its losses.rett joins us from cbs money watch out com >>> j.p. morgan chase ceo may have to make more apologies the new york times reports instead of the $2 billion the firm lost it is more like $9 billion now that the firm has been unwinding its hedging positions. the ceo admitted they took risky bets there was not enough oversight and heads that role, but not the top dog. shareholders should not happy the shares are down 3%. looking at the economy it the first quarter was the saint louis growth 1.9% and that followed up a prior revision. employment continues to be an issue, labor department reports weekly jobless claims stuck at 386,000, it fell this past week that came after a large upward revision. it hangs around 386,000. it is too high to suggest job growth. your pet deals with its debt crisis. the health-care ruling from the supreme court the dow or the dow is lower by 98 points the nasdaq down by 24 the s&p down by eight. >>> jason brooks for kcbs money watch >>> a quick look at weather w

s fortress balance sheet because if you haven't heard jamie diamond was on the hill testifying about j.p. morgan's multibillion dollar trading loss so we infiltrated the capitol building to bring you the real story from inside the lion's den now don't worry we did construct a full body protective shield that repels cronyism and dirty deals from reaching me you know i tried to enter through a revolving door so it's not raise any eyebrows but hey alas there wasn't one maybe that's only for the politician we will give you the real lowdown though and we were also trying to figure out if we'd seen this dog and pony show before we found this . this is what i'm telling you what i'm exposing. to you with grace and everybody this is my. we wish we saw a repeat of the valachi mafia hearings in the nineteen sixty's where the country really got some insight into the workings of organized crime not the case today with jamie dimon nonetheless we talked to marketplace's heidi moore on capitol hill fresh from the hearings on what did come out of it a value plus one wondering if banker bonus arbitrage is upon us w

s largest bank could put the entire u.s. financial system at risk this way. >> j.p. morgan enjoyed the strong reputation for effective risk management, something, obviously, went very wrong. >> and out-of-control strategy was -- to no risk controls. >> reporter: simon said the bank made a number of changes to ensure losses of this magnitude don't happen again, including leadership changes and the strategy to oversee risky trade. >> and my conviction is that we will emerge as stronger, smarter, and better company. >> and diamond said the bank is conducting its own internal investigation. two of the top financial regulators are looking into this incident. >>> leon panetta is criticizing the first round of changes made in the military proposed budget. they agreed last sum or a nearly $500 billion reduction in defense spending over a decade. he testified that current versions of the defense budget would force him to find money to maintain old weapons, aircraft, and ships and to hollow out the force. >> there is no free lunch here. every overhead cost retained will have to be of

j.p. morgan chase, for example, is up 2% and bank of america is up .5%. taking a live look at the big board, the dow is up 5. nasdaq is up 17. s5. this rally for banks comes even though one of the world's major credit union has downgraded the major u.s. and european banks. moodies dropped the ratings for j.p. morgan, citi group, bank of america, goldman sachs. they are concerned about banks with significant market businesses. but back in, it had warned it was considering baking -- making these moves. >>> 8:45. new this morning -- 17 people were killed in afghanistan after a standoff with the taliban at a hotel. late last night, taliban insurgents stormed a lakeside hotel near kabul. they had machine guns, rocket propelled grenades and explosions. more fighting between syrian government soldiers and rebels has left a city in ruins. this has been the sight of crashes. women and children have been huddled in dark basements. they are saying no part of the city is. >>> time now 8:45. we'll bridge you up to date on some of the other top stories we're following for you right right now. back home a marijuana glow operation was going o

j.p. morgan might have created incentives for excessive risk? >> i don't agree with what you said about wall street. i think there s are a lot of people you can trust on wall street. there are people you can trust and where and when anyone blankets a whole industry with the same thing, i think we make a mistake. it is like when people like all of congress. i don't like it is fair. we try to have a culture at the company where people have long term careers. they're not paid just because of profits. their pay because they're good managers and recruit and retain and they're open-minded and independent on risk committees. they participate in the company and mentor younger people. that is what we do. it is not just financial results that draws people compensation at j.p. morgan. no one in this area had formulas. it's possible that a lot of it was driven by money. that should be no great surprise that some people are driven by money but some people are not. >> next question -- do you feel there is a problem with wall street's culture? >> i think there might be a problem with some people on wall street. wall street, for t

j.p. morgan get away with this coming out of this trade. last are more banks going to be getting the green light to do this kind of a thing well if other bank c.e.o.'s think they're jamie dimon i'd love to see that happen because he did come into this with a five year long halo around him that he was you know the best bank c.e.o. and you know several of the more adoring senators mentioned that to him. there was there was a lot of love for jamie i can't think of other bank c.e.o.'s who could do that who could pull that off he had you know some social capital to spend going into that room but the question is are they doing it then let's try to figure out what the root causes are of what j.p. morgan was trying to do does it speak to a problem of derivatives that it's more difficult to exit existing positions it's easier to try to hedge them in an add on to offset but then you add more complexity and risk exactly and that's if you're being rational right there's also the emotional aspect of i made this giant bed i put you know hundreds of billions of dollars on it i can accept that i was wrong to the tune of one hundred billions of hundreds of billions

j.p. morgan chase bank c.e.o. jamie dimon back on the capitol hill. >> how do you come forward and say the regulators should have known what one of best c.e.o.'sdustry did not know. >> if you made the small and medium size business loans you would not has beener. all you are in favor of exempting these trades from any regulations. the transparency is part of the thing you would be exempted from, no legal requirement for transparency other than that, and i am disappointed. >> if this impacted your shareholders why do you continue to take that position? >> so, not an easy day for jamie dimon, and democratic congressman from massachusetts among lawmakers asking the tough questions, and, congressman, when all is said and done, the firm had $2 billion bad trade and someone made money on the other end. you guys are overseeing $1 trillion spending mess. who is the bigger criminal? >> i don't think there is a criminal involved in. i don't know about anyone else i am interested in whether this particular situation has anything we can learn of this bank, all other banks or the system as a whole. >>neil: but is there a financial law in place that would h

s&p 500 up by 8%. if you were to point to any weakness here, it is just a handful of stocks. j.p. morgang, given that huge rally in banks. that number from yesterday in the new york times, not to be believed in terms of $billion from the potential lost there but the mark set paying attention, i guess. >> weird that losers are down because of big macro concerns, even though the rest of the market is up. very strange day. david, have a great vacation. >> weekend. i'll be back monday, tuesday of next week. mega gone. but i will be thinking about vacation, carl. >> if you are just joining us, here is what you might have missed earlier on. >> welcome to hour three of "squawk on the street." here is what is happening so far. >> the uncertainty is now over. it is the law of the land. so let's make sure the law of the land is in everyone's best interest. >> why hold a vote that you know has no chance of repealing healthcare reform now? >> i think frankly it would be negligent if we didn't hold one. >> spending numbers, very close to expectations. goose egg, unchajed on spending. >> stocks said t