you >> jpmorgan is paying a big price for failing to sound the alarm about bernie madoff's uponsy scheme, agreeing to pay $2.6 billion to settle cases involving the madoff fraud that dipped investors of billions. some investors will receive $1.7 million that jpmorgan is failing for failing to file a suspicious activity report about bernie madoff. here is what the u.s. attorney said about the bank. >> jpmorgan as an institution failed and failed miserably. in part because of that failure, for decades bernie madoff was able to launder billions in popzy proceeds, essentially through a single set of accounts at jpmorgan. >> as part of the settlement jpmorgan admitted it violated laws requiring it to monitor customer activity. the bank recognised it could have done a better job and is improving its practices. victims of bernie madoff's fraud lost $17 billion and a court-appointed trustee recovered half of it. >> judith and her husband inteffed over $1 million and recovered $1 million. it's been five years, how do you feel about it? >> i have moved beyond. we settled our claim a year and a hal

. >> in the first interview since bernie madoff's arrest, his wife ruth... >> i trusted him. >> and son andrew... >> that's who i am. my name is madoff. and i'll live with that for the rest of my life. >> speak out about crime, guilt, suicide... >> mr. madoff, what do you have to say for yourself? >> and the day bernie admitted to committing the largest financial fraud in history. >> and he said, "i have a confession to make. i've been running a ponzi scheme." [ticking] >> do you think you could pull off this scam today? >> given the same security measures? >> yep. >> easily. piece of cake. >> sam eshaghoff's scam was getting paid thousands of dollars to take the s.a.t. test for other students. he did it at least 16 times, scoring in the 97th percentile of the country. >> i would call him an academic gun for hire. that's what he was. >> welcome to 60 minutes on cnbc. i'm bob simon. in this edition, we examine two very different kinds of fraud. bernie madoff's wife and surviving son break their silence about wall street's most infamous criminal. and later, we visit a high school con man

some how he was protected. >> how did you decide to invest with berni madoff? >> we had an unusual situation. my mother had invested many years ago through friends, and she, my dad had passed away, and we were really helping her. she was beginning, she was quite senior but totally with it and quite a good investor, and she had checked him out, and she decided to stay. we were looking at helping her. we put money into her account to give her more to live on, and we felt it was a safer investment of just trading stocks which she had been doing, successfully, i'm afraid. >> you heard people veh of the victims they should have done more to check it out. >> i don't know how much more because mother really was very good. my dad had even been a limited partner in a brokerage firm, and she was very good at that. she had checked it, and she had files going back talking about how he had run the nasdaq, and he was an expert with the sec. i don't know what more you could do as an order citizen. not a wealthy one who had all kind of advisers. >> as you followed this over th

all this in the wake of rod gues >>> a big price for failing to sound the alarm about bernie madoff's ponzi scheme. $2.6 billion to settle various criminal and civil cases involving the madoff fraud that bilked investors of billions of dollars. some of the victims will receive part of the 1.7 billion that j.p. morgan is paying to the department of justice for failing to file a suspicious activity record about madoff's trades. here is what u.s. attorney prique barara said about the bank. >> j.p. morgan as an institution failed and failed miserablmiser because of that failure, in part, for decades, bernie mad off was able to launder billions of dollars of ponzi proceeds essentially through a single set of accounts at j.p. morgan. >> as part of the settlement, j.p. morgan is admitting it violated laws requiring it to monitor customer activity for money laundering. a j.p. morgan recommend presentative said they realize they could have done a better job and is improving practices. victims lost $17,000,000,000. a court appointed trustee has recovered about half of it. victims included judd

nos executives are going to gaol, and it seems like a miscarriage of justice, especially for the bernie madoff victims, the investors who lost their life savings, they are doubly punished by seeing jpmorgan, madoff's banker, is getting off relatively scott free. >> are you surprised by that? did you expect individuals would face charges for not alerting authorities. >> you know, initially i did. when madoff was arrested i thought for sure, you know, whichever institution turns out to be the one sloshing his money back and forth would be held accountable, and individuals held accountable because right now some of madoff's co-worker are on trial in manhattan. these are clerical workers, staffers with him 20-25 years. i was very surprised to see that instead of individuals going to gaol, essentially the bank got what is called a deferred prosecution agreement. that means they have to behave for two more years or bad things will happen. >> when you say this, you say there are people like clerical workers and staffers on trial. people with a lot more money are not on trial. what is your take on tha

morgan -- bernie madoff. and that will cost an.ts you do more with your smart from camera. shares of apple or down the dollar. the security company, it was a charles pick as well, dow little bit today, but it had a recently. twitter is in the news after getting a downgrade, the stock down 5%, down to 65. pandora, a surge in net hours and that stock is up to%. next, while the deep freeze cribs the nation, are you shopping, online perhaps? back in a moment. he has the most common kind... ...it's not caused by a heart valve problem. dad, it says your ib puts yo at 5 tes greater risk of a stroke. buit looks likeke my wamaybe we shouldd ask your doctor about pradaxa. a clinical trial, pradaxa® (dabigatran etexilate mesylate)... ...w pron superior to warfarin at reducg th riskf stke. and or dietary restrictions. no regular blood tests hey thanks for calling my doctor. sure. pradaxa is not for people wi artificial heart valves. don't stop taking pradaxa without talking to your doctor. stopping increases your risk of stroke. ask your docto

the settlement and fine were announced five years after bernie madoff's scheme collapsed around him andestors worldwide. jeffrey brown picks up the details about those connections. >> at the time that madoff's crimes were unveiled, jpmorgan's name was not publicly connected with the case in any significant way but federal prosecutors said today the bank new something was wrong well before the ponsy scheme collapsed. u.s. attorney spelled out some of that history at a press conference this afternoon. >> today's charges have been filed because in that regard, j.p. morgan as an institution failed and failed miserably. in part because of that failure, for decades, bernie madoff was able to launder billions of dollars in ponzi proceeds, essentially through a single set of accounts at jpmorgan, as far back as 1998, a bank fund manager concluded that the returns were possibly "too good to be true" and that there were too many red flags. >> patricia hurtado has been covering this for bloomberg news and was at the prosecutor's press conference today and joins me now. thank you for joining us. le

the bank of course was bernie madoff's primary bank for more than two decades and the cost to unwind all this, approaching $2.6 billion. we should point out that's a little less than two weeks' revenue for jpmorgan. nonetheless, $1.7 billion to the justice department, $350 million to the chief regulator of the office of the comptroller of the currency in the treasury and about $543 million to private litigants, chief among them irving picard, the bankruptcy trustee who sued jpmorgan back in 2010 alleging that the bank was at the very heart of the madoff fraud. the bank has denied that, but nonetheless, a lot of the allegations in picard's suit are central to the agreement that's being announced today. jpmorgan is saying that it did not knowingly aid the fraud but nonetheless, it's promising best in class compliance systems, saying we recognize we could have done a better job pulling together various pieces of information and concerns about madoff from different parts of the bank over time. those new compliance systems are not really a choice for jpmorgan. this is all part of what's k

. >> jpmorgan had concerns that bernie madoff -- >> internally? >> internally. returns are too good to be true and all this good stuff. he failed to escalate that to the proper regulatory authorities by filing a report. >> other required to under the law? banks have to have a very hefty bank compliance program. in failing to do that, it cost them $1.7 billion. according to the southern district, who announced it is going to be going to bernie madoff's victims. we don't have specific details. >> there is incriminating evidence, e-mails that established the wrongdoing that the government alleges. the key thing -- >> in this key thing in this case is that they signed a deferred prosecution agreement but which means that they neglected to prosecute. several banks have done this and this is jpmorgan's second deferred prosecution agreement. this is a big deal for them, because admitting to criminal charges not a lot of banks do , that. >> the former finance chief testified that bernie madoff's former workers asked for payment in diamonds. incredible. billion plan to e

morgan didn't do when it learned of bernie madoff's ponzi scheme. plus, the head of the u.n.'od program, the group on the front lines of the fight against hunger, in areas crippled by violence. >> in the central african republic there are 100,000 people in and around the airport itself, in bi.

it could be close to settlement over the role in bernie madoff's ponzi scheme. >>> serving economic successrs impress, but china's service sector growth slows to a two-year low on news of china's equities. >>> we just have some reports of another skiing accident, not as serious as that of michael schumaker, but it does affect angela merkel, who apparently was skiing and therefore has canceled some meetings, this is according to a spokesman for the german leader. she has canceled meetings because of a skiing accident in which she has been injured. no further details at this moment. >>> john malone is on the acquisition trail again. the media mogul is setting his sights on siriusxm. courtney trregan is here with more. >> good morning. john malone is offering to buy out the minority shareholders in satellite radio provider sirius xm holders. they would pay for the 48% of sirius it doesn't own. just 3% above sirius' closing price on friday. liberty became the largest shareholder in 2009 after extending the $530 million to avoid sirius going into bankruptcy. it became a majority owner last janua

morgan chase agreed to pay $1.7 billion to avoid criminal prosecution in connection with bernie madoff'ss say that chase madoff's main bank failed to report evidence of his massive fraud. the money will go to madoff's investors who lost $18 billion. we will be right back. but with copd making it hard to breathe, i thought those days might be over. so my doctor prescribed symbicort. it helps significantly improve my lung function starting within five minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. with symbicort, today i'm breathing better. and that means...fish on! [ female announcer ] symbicort is for copd including chronic bronchitis and emphysema. it should not be taken more than twice a day. symbicort contains formoterol. medicines like formoterol increase the risk of death from asthma problems. symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. tell your doctor if you have a heart condition ÷s or high blésood pressure before taking it. [ man ] with copd, i thought i'd miss our family tradition. now symbicort significant

jpmorgan had concerns that bernie madoff -- >> internally? >> internally.d concerns that he was up to these things. under and a monday laundering -- anti-money laundering relations they have to have heavy regulations. in failing to do this it cost them $1.7 million. according to the southern district, who announced it is going to be going to bernie tims.f's that owns -- vicit >> there is incriminating evidence, e-mails that established the wrongdoing that the government alleges. isthe key thing in this days that they signed a deferred prosecution agreement but which means that they neglected to prosecute. second jpmorgan's deferred resignation agreement. this is a big deal for them, because they aren't bidding to committal charges, not a lot of banks do that. >> the former finance chief testified that dc- bernie mado's former workers ask for payment in diamonds. they cleared a pulmonary vote in the senate this morning. the bill would reinstate jobless benefits that expire december 20 for another three months. congress voted today because they failed to act

morgan did aid and abet bernie madoff, where is the person that did that aiding and abetting.y aren't they charging one named person. the reason why they're not? j.p. morgan maybe as an institution didn't do anything worse than what the securities and exchange commission did, which is -- couldn't find -- bernie madoff -- they had evidence he did wrong and they did nothing. >> we'll get into that later. you're right. one thing i'm asking, these funds that willingly -- i know j.p. -- they're not the only ones dos do you think that makes them think, let's go for a bill more. looking into companies -- >> here's the thing. i think jp morgan is an interesting -- almost a book because they're a big bank, stuff goes wrong there. are they a criminal institution as some people on the left suggest? i don't think so. i could tell you a lot of bad stuff goes on in other places, but it is an interesting koa incident whentime jamie diamond started opening his mouth, they went after him, and in this highly regulated environment the feds can put you out of business. they were worried about --

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 t

jpmorgan chase of course was bernie madoff's primary banker for more than 20 years. that investor money, close to $20 billion, went into a single chase account. u.s. banking laws require banks to know their customers, particularly a major depositor like bernie madoff, and to report suspicious activity. there is plenty of evidence some at the bank did have suspicion. for example, an e-mail from john hogan, then chief risk officer, who says he was just told in this e-mail the head of fixed income at the time, that there is a well-known cloud over the head of madoff and his returns are speculated to be part of a ponzi scheme. he adds i think we owe it to ourselves to investigate further. hogan went on sabbatical last year. zames is chief operating officer. that e-mail is dated june 15th, 2007, a year and a half before the scheme collapsed. it came out in a lawsuit against the bank by the trustee. it's not clear how much the bank did to actually investigate further, as hogan suggested. officially, jpmorgan still says its employees acted in good faith. the tune could chan

. $2.6 billion in settlements were paid by jpmorgan with ties to the bernie madoff ponzi scheme. ending 3 years streak of earnings. wells fargo reported record end of your profits. the numbers were all stirred by a one-time gain. after the bell, general motors announced a $.30 per share quarterly stock dividend, the first since july, 2008. yesterday, the financial officers said investors should expect this. those are the top headlines. >> thank you. this afternoon, charter communications held a conference call reacting to time warner cable's rejection of charter's $61 billion takeover bid. paul sweeney listened to the call and joins me now with details. what did you hear on that call? >> we heard the team make the case that time warner had seriously under managed time warner assets over the last half decade. the charter management team is in a position to really take those assets and really maximize the value of those assets. charter is trying to make the case for shareholders that assets would be in a much better position being managed by charter. >> what about charter? do you t

dropping 1300 points and keeping an eye on jp morgan chase, definitely profits are facing it in a bernie madoffe. charter number 4 cable company offered money for time warner and now they are going directly to shareholders instead of working with time warner's board of directors. >>> a thief right here in the bay area and where it was sold and concerns about its safety. >>> a utility company, they have seen their recent bills nearly double. hey, i remember you.ttle debbie? you should. i'm you. except i always had a nutty bar with my lunch. ooooh. little debbie nutty bars. so delicious. you know they've got them down the street. your love for little debbie is something you never outgrow. don't you have a meeting or something? yes. yes, i do. uncle go one,two,one,two,one [uncle]thistwo,one.cotch,okay? [niece]okay! [uncle]okay? [niece]one,two three,four,five,six,seven,eight! [uncle laughing] okay,we go the other way,okay? [niece]one,two,three,four,five, six,seven! [uncle laughs]there's ten spaces,you want to try again? [uncle]yeah? . >>> welcome back, 15% of the people back in the state are cleare

. ♪ stuart: all right, we start with breaking news on bernie madoff.eart attack in federal prison. reportedly happened in december and he is recovering. he is 75, suffering from stage for kidney disease. serving 150 years for defrauding investors out of multi-billions of dollars in that ponzi scheme. he was arrested december 12, 2008. a cold blast in the northeast. look at the windchill. it is cold, it is supposed to last until the weekend. more than a foot of snow fell in some places. driving really tough for some people. $5 billion, that is how much the economy supposedly lost during the last polar vortex. charles payne, sandra smith with us. it is a very small number in the context of a $15 trillion economy. the cold weather had no impact on the economy. >> i would disagree with that. if you cannot get your employees to shop at work, i don't care what the number is, that is painful to small business. i'm looking at the streets of new york city right now, you can barely get around in a taxicab. it can be hard to bounce back. i say that is a fairly de

. >>> jpmorgan has agreed to pay billions over concerns over bernie madoff ponzi scheme.the world's largest bank will pay $1.7 billion to the justice department. and $350 million for civil charges. the prosecutors say every penny will help to repay the thousands of victims of the $17 billion fraud. the bank suspected madoff of fraud but never told the authorities. bernie madoff is serving a 150 year prison sentence. >>> a practice has returned to los angeles, it's cooled patient dumping. security cameras were signaled in the area, and patient dumping has started to slow down. hospitals are trying to figure out how to get recorded. brian is in los angeles, so brian, what is the city going to do to stop this from happening? >> well, it's very difficult, richelle. they don't have the ability to watch the streets 24 hours a day. we're here in the heart of l.a.'s skid row. there are hundreds and hundreds of homeless people here. basically, in order to prosecute this, they need someone who happened to complain or witnessed it, or some of the security cameras that were recorded.

charles: they admitted they knew about bernie madoff. the ceo or the guy who runs that department. charles: the assumption that somebody, some ceo with offices in 40 countries is going to check off every quarter. and they were clean. this is ammunition, ultimately could hurt -- it could hurt anyone. this is the kind of thing that could hurt companies. if the forces of capitalism when they will -- cheryl: look at the financial sector. for 2013-12-11 top performing sector every year they still can make it out of this mess. charles: the fed is buying all of this stock and get money from zero% interest. cheryl: we could be here all day. thank you very much. dennis: shunning trends thats, a once feared food and dr. manny alvarez will talk about this delicious firm trend. cheryl: workaholics listen up, powering down may be the best way to boost your mental health. ♪ [ male announcer ] this m has an accomplished research and analytical group at his disposal. ♪ but even more pressive is how he puts it to wk for his clients. ♪ morning. morning. t

tomorrow could be the day jpmorgan final lly closes the books on the bernie madoff ponzi scheme. e government is expected to settle for $2 million. jpmorgan is accused of obstructing regulators investigating madoff. meanwhile ralph nader is looking for help from carl icahn. he is a shareholder in sirius-xm radio. he made an appeal for icahn to get more money for shareholders. meanwhile college football's title game is tonight. florida state versus auburn. it is the last of its kind, though. next year college football will go to a playoff instead of determining the two teams for the title games based on polls and computer rankings. >> and the big story, many in our audience are concerned about tonight, the weather. record cold across a huge part of the country. it's called a polar vortex. jetblue cancelling flights until tomorrow afternoon. larry, it could get below zero in the new york area. >> just real quick, a polar vortex, how would you say that in lay terms? what does that mean? >> it means it's going to be real cold and it's moving across the country so buckle up and bundle

it's a tough name to live with. >> it sure is. >> in the first interview since bernie madoff's arrest> and son andrew... >> that's who i am. my name is madoff. and i'll live with that for the rest of my life. >> speak out about crime, guilt, suicide... >> mr. madoff, what do you have to say for yourself? >> and the day bernie admitted to committing the largest financial fraud in history. >> and he said, "i have a confession to make. i've been running a ponzi scheme." [ticking]

nobody is liking bernie madoff. >> here's the difference. thought about this. madoff was 100% a completely scam from start to finish. clearly, the wolf of wall street, as he said, and i don't know exactly what the split is. but the vast majority of what he did was legitimate. the bit that wasn't was extremely bad -- >> i don't know that it was the vast majority. but what he did was stealing money. it wasn't insider trading or mortgage securitization fraud. it might as well have been bank robbery. he was stealing other people's money. >> okay. you've made your feelings clear. he did is he me i had to sell a pen. carl lewis, leigh, ben ferguson. great panel. gold medal superstar like you, carl, on a panel. what a moment for this show. thank you all very much. >>> coming up, meredith vieira is headed for sochi. i want to know what she thinks about the security threats to the games, because she'll be right in the middle of it. that's coming next. ♪ female announcer: female announcer: get beautyrest, posturepedic, even tempur-pedic mattress sets, at low clearance pri

that $2 billion fine against jpmorgan in the bernie madoff case, we get word from the "wall street journal", officials at jpmorgan are to be excluded from these penalties. they're not going to be levied agaiist individuals. it will be levied against the entire company, which means stockholders once again will have to pay for the crimes of the misdeeds of some others. again, jason, let me go back to jason on this, are you concern at all at regulatory overreach, whether it is on issues of financial miscreants or whatever it happens to be? >> look this, is a fine line. obviously you're always concerned about any sort of regulatory overreach stretching in and really hampering business's ability to conduct normal operations but at the same time, this is a double-edged sword. you need to have a reasonable amount of oversight. you need penalties for things done incorrectly. you need some repercussions otherwise you allow. david:tory give me, for interrupting, jason, don't they seem to a applied, i will throw this lincoln, haphazard with the particularly what happened with jpmorgan. okay, hold on

so we know now if there was any doubt before that in order for bernie madoff to pull off his massive t going for so long, he needed jpmorgan chase. they were madoff's banker for more than 20 years. the bank was in a position to know all but if it did, it didn't tell. no matter the bank has been in regulators' sights almost since madoff confessed. they are agreeing to one of the largest penalties ever for violating u.s. banking laws and they will have to make major reforms to head off criminal prosecution. but no individuals charged which preet bharara defends. >> this is about an institutional failure. the statement of fact recites in great detail some of the roles various individuals played in connection with the overall systemic failure but the interests of justice here, you have to look at every case individually. >> the overall cost to the bank a little less than two weeks' revenue. they will pay $1.7 billion to the justice department, $350 million to the treasury office of the comptroller of the currency and half a billion to settle private suits, including the one by bankruptcy

jpmorgan chase agreed to pay $1.7 billion to the victims of bernie madoff's multibillion dollar ponzit resolves allegations that the bank failed to provide warnings about madoff's profductivities. >>> things like losing weight and saving money or harder to follow but what about that it can improve the relations with those you love and even yourselves. that's part of the new book "forgiveness." readers are encouraged to embrace a new way of thinking and fueling through the power of forgiveness. you are also the host of "fix my life" on the own network. great to see you. >> thank you. >> 21 days it takes. why 21? >> we want to retrain the mind and really this book isn't so much about doing the work to forgive them. it's about changing the way you think. it's about forgiving thoughts and judgments and beliefs that keep you stuck in the memory of whatever the experience was that needs to be forgiven. >> what's the first key acceptance, shall we say, in getting to that point that you just described. what do we need to do first? >> become willing to see it differently. to feel differently a

we learned the bank will pay $1.7 billion to settle claims related to bernie madoff's ponzi scheme.ake a look at the stock right now, we've within monitoring it -- been monitoring it, but unfortunately, jp hover began right now not having a good day. i'll bring you that board in just a moment. also we're looking at some big stories coming out of washington right now. there's jpmorgan, down 64 cents, but as you can see, it's come back a little bit at least for the intraday. and one of the financials of the year, one of the strongest names for all of 2013. and now we're watching d.c. there's a battle right now over whether to extend unemployment benefits. that battle clearrng a major hurdle today. the senate voting 60-37 to limit debate on that measure. and at the same time, senate republicans said they would try to make sure the estimated $6.4 billion price tag would not be added to the deficit. well, now for more on what's happening in our markets, let's get to our floor show. traders at the new york stock exchange, the cme group and, of course, the knew hex. and, teddy, we had talk

morgan chase close to the deal in that bernie madoff case, allegedly turning a blind eye while workingwith madoff during the enormous ponzi scheme. >>> a record for boeing, the airplane maker saying it delivered 648 jet liners in 2014. this is the most ever in one year. most are the dreamliners. a large part of the internet is becoming a black market and technology that is readily available is helping users get to it and remain anonymous. john hendren takes a look at the hidden internet. ftc. >> reporter: there is a pleas place on the internet so deep, so dark, so utterly anonymous it has become a black market for crime. >> you have everything there, hits for hire, you can kill people, you can buy drugs you can buy people, there is everything that we in society say shouldn't exist in civilized society is there. if it's not there ask for it and somebody might provide it. >> reporter: for a price, you can offer up false i.d.ness, real u.s. citizen ship and murder for hire. >> you can pay a assassin, for $6,000 plus. >> just don't ask him to videotape it. this killer has standards. there

jpmorgan will reportedly pay $2 billion to settle charges it failed to warn about bernie madoff's ponzi scheme. jpmorgan was madoff's primary bank for years. reports say the bulk of the fine go to his victims. >>> the market saw the first negative start to the year since 2008. the big focus will be friday's u.s. jobs report. look for data today on services sector and factory orders. betty? >> thank you, courtney. >>> this crop circle, check it out, in california, managed to confuse and mystify the curious, but actually a ruse by the company novidia to show off a new processor making its debut at ces. >>> just ahead, nfl action and how silence can actually cost you. >>> plus, taking the scare out of catching air. that's next. >>> well, coming up this morning on "today," the squadron behind marine one. a rare inside look at the exclusive handpicked team responsible for flying the president of the united states. >>> all right. let's get to some sports action. it was just five degrees at kickoff and felt like minus ten with the windchill. but somehow the fans didn't seem to mind. yeah, they

. >> the jp morgan chase is said to be close to a deal in the berni madoff case. >>> t-mobile is writing big check to verizon. the deal is worth more than $3 billion. the money will be spent on some of what is called the spectrum licenses owned by verizon. it will cover 150 million people in several major cities including new york, los angeles, washington, d.c. >> today and now declaring unconditional war on poverty. >> lbj declaring his war on poverty. >>> and it's not just a fashion statement, this new pair of gloves will make it safer for you to ride your bike. >> welcome back to al jazeera america. i'm del walters. here are today's headlines. the supreme court entering the gay marriage debate. jusin utah same-sex marriage bee legal when a judge struck down a voter approved ban. last week the attorney general asking the supreme court to spend that ruling now the supreme court blocking any new same sex unions in utah while the federal court conditions that issue. >>> some of the priorities in washington, d.c. include a bill to raise the federal minimum raise, the possible extension of

jpmorgan failed miserably when it came to bernie madoff's trade. i talk to one of his victims, and a man that cashes in on a thirst for

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the nation's largest bank has struck a deal with federal prosecutors in the bernie madoff ponzi schemeremember. it has been five years ago since that explosive scandal that madoff had carried out one of the biggest investment scams in history. jpmorgan chase will pay $1.7 billion to settle criminal charges accusing it of ignoring warning signs. it is the largest penalty of a bank in the nation. i know that was difficult to follow but i apologize for that. in short, jpmorgan is going to pay out $1.7 billion to victims of bernie madoff for its part in this scheme. we're trying to figure out what part jpmorgan played in all of this? >> they were his banker for 20 years, a banker to a man that took money from charities, from celebrities, from mom and pop investors and had the largest ponzi scheme in history happening right there under the nose of jpmorgan chase, the biggest, most sophisticated bank pretty much anywhere in the world. that's what happened here. this investigation found there were red flags missed over and over again within jpmorgan chase that could have prevented that. they

. $2 billion this time for the feds over whether they ignored what was going on with bernie madoff's funds. so it looks like jpmorgan are going to settle on this. that will bring the total to about $20 billion that they've paid out for both regulators and federal prosecutors to settle problems that are still a hang joer from the banking crisis. let me move on from that. here's a fascinating story. do you know what holacracy is? it's the hot new management trend for 2014 if you believe zappos. they're introducing this flat management system. this is a unit of amazon. this is a way of getting your staff more focused on single projects. all i want to know is who gets the washroom key to the executive floor and do you get a chance, everybody, to sit on the boss's swively chair. i don't know if that happens in a flat management structure. >> there's no like this? like this? >> yeah. the ceo relinquishes his title and then becomes just another employee. that's what zappos think is going to do it for them in 2014, brian. >> tony, always been a little bit ahead of the curve. we'll see what h

. ♪ this magic moment ♪ lori: some breaking news and jpmorgan, the settlement over the bernie madoff peter barnes at washington with the latest details for us. peter: that is a very latest for us. after paying for the victims, the office of the comptroller currency is penalizing jpmorgan chase for $350 million related to violations involving the affair for violations of the bank secrecy act just received a press release confirming this information. according to the release "the penalty was based in part on on jpmorgan negligence to report suspicious u.s. law enforcement and regulators diligence and risk assessments and independent testing. in total penalties for jpmorgan chase in settling the made off affair north of $2 billion. lori: penalties piling up. thank you for the latest. as we do every 15 minutes, we checked the market for you. checking the call on the new york stock exchange. checking the tech winners today. nicole: look at google today. and you high today, deutsche bank adding it for 2014 must have stock. in addition to the fact we continue to see strong growth here for a

morganbank chase agreed to pay $1.7 billion ,o the ends of bernie madoff and the bank was accused ofailing to carry out its legal obligations while he built the massive this rotting of investors. >> he was behind one of the biggest frauds in history. 65 billion dollars of investor money was lost after bernie collapse. a seeming pillar, his empire was built on a scam. hadl his arrest in 2008, he taken money in from clients and used to pay others. in the end, there was nothing left. for 150 years. today, authorities punished his main bank, jpmorgan, for their failures. >> jpmorgan failed to carry out their legal obligations. today, jpmorgan finds itself criminally charged. internal messages and e-mails between j.p. morgan staff about concerns about his in 1998, 1 said it was possibly too good to be true. another said, the more i think about it, the more nervous i am. broughte were concerns to u.k. watchdogs but not their counterparts in the u.s.. later, he was exposed. man lost all of his savings and took his own life. his son told me how he felt about the news of the jpmorgan fine. >>

j-p morgan chase is paying the price for essentially ignoring numerous warning signs of bernie madoff's ponzi scheme. the bank's agreed to pay a two point six billion dollar penalty for failing to alert authorities of suspicious bank activity.this includes a record 1 point seven billion dollar payout to the justice department.in 2007 and 2008, the bank's own computer system raised red flags about madoff but bank employees qqqq say the ring led to 24-million dollars in fraudulent disability payments.hundreds more may be arrested as the case continues. a senate bill to extend unemployment benefits for the long-term unemployed advanced tuesday, with the support of a half-dozen senate republicans. the bill would extend benefits for three-months at a cost of six-billion dollars.it still has to clear a final vote in the senate, along with a vote in the house. president obama told a crowd yesterday -- that extending the benefits helps keep americans financially secure, despite changes in the economy. "it provides that extra bit of security so that losing youre job doesn't mean losing your hous

the sec was warned about bernie madoff for a decade or so and did not do anything about it, and that situation where you could have shorted ernie made off, and the sec would have madoff,shorted bernie "wethe sec would have said,"w do not want to look like we are being led by the nose." it is a great challenge for them to be sifting through it, but it is no doubt that every trade regulator in the country knows that bill ackerman --ac -- ackman is shorting. >> you have chosen to pick on butin one of your articles, i want to talk about somebody else. sheila bair. 2006 until 2011, you had bank getting quoted in places like politico, saying how angered that they were that she was taking the directorship of a bank called santander. she did write a book in which she had all sorts of things to say about the revolving door and that regulators should not be going to work for banks. >> rather than the right of center. -- the private sector. >> a lifelong ban. she wants a vacation too. >> and you had a lot of the do- gooders who said, "she let us down, and now, we feel victimized." least those wh

morgan chase has reached a $2 billion settlement in the bernie madoff case. the bank ignored warning signs that madoff was running a ponzi scheme. a portion of the $2 billion will be set aside for madoff's victims. >>> meanwhile, a historic vote set to take place in the senate today. janet yell len en is expected t become the first woman to chair the federal reserve. if confirmed, he woushe would s ben bernanke. >>> at&t paying up to lure customers. at&t is offering t-mobile users up to $450 in credit to switch providers. analysts call it a preemptive strike. they say t-mobile is planning a similar announcement this week. >>> and launching a preemptive strike on airplane boarding chaos. a new study shows that airlines could cut board lg time by boarding passengers based on the number of carry ons, rather than where they're seated. large carriers like delta could save up to $10 million a year in time savings. >>> frozen appears to be the theme outside and inside movie theaters this weekend. disney's animation retook the box office top spot this week end. paran

. >>> bernie madoff, the man who orchestrated a multi-million-dollar mortgage scheme suffered a heartin prison. he e-mailed the network to say he was hospitalized land month but is back serving his 150-year sentence. he also suffers from stage 4 kidney disease but is not undergoing dialysis. >>> and an oakland raiders cheerleader claims the team is not playing fair and now she's suing. they're not paying the raiderettes enough or on time. she claims they only would get paid at the end of the season and their pay worked out to less than $5 an hour and they could be benched for gaining as little as five pounds. the team had no comment. >> all right. thanks a lot wendy. >>> coming up in sports, we'll go under the helmet with richard sherman and hear what one of the nfl's most talked about players is saying about his critics. accomplishing even little things can become major victories. i'm phil mickelson, pro golfer. when i was diagnosed with psoriatic arthritis, my rheumatologist prescribed enbrel for my pain and stiffness, and to help stop joint damage. [ male announcer ] enbrel may low

expected rates of return of 10% or more, that's bernie madoff territory. >> and to rick on this, hold on a second, rick, what is wrong with having public sector unions deal with 401(k)s like the rest of us do? >> actually, i think you know i don't have a big problem with that. i do think that we're being a little naive when we try to blame everything and put all of the problems of the cities on the backs of the public unions. there are other issues. >> but that's the single biggest, i would say, wouldn't you, sabrina? >> yeah. i think it clearly these numbers suggest that and one of the big things we're forgetting the other side of the equation which are the taxpayers. tax payers are supporting this and theye not seeing this kind of benefits in their own retirent packages. i think we need to remember as much as we want to help the public sector employees there's other hard working americans who also want to benefit from their hard work. >> john, taxation without representation, people want to have this thing cleaned up. >> yeah. they want to and i think we've got to say maybe a few ci

. >>> jpmorgan will reportedly pay $2 billion for failure to warn about bernie madoff's scheme. the bulk of the fine will go to madoff's victims. >>> futures are lower as the markets come off a negative week and start to the new year. the big focus for investors will be friday's u.s. job reports. veronica, back to you. >> courtney, thanks. >>> some stories making news this morning. iraqi troops are battling for two key cities. fallujah and ramadi. at least 34 people were killed in fighting on friday. u.s. secretary of state john kerry said they would help. >>> dennis rodman has arrived in pyongyang with a dozen basketball stars to be played on north korean leader kim jong-un's birthday. he calls the trip basketball diplomacy. >>> and we learned over the weekend that 50s and 60s rock icon phil everly died on friday. they sang such hits as "wake up little susie ", "bye-bye love," and "all i have to do is dream." >>> two republicans publicly attacking one another. we'll have details next. >>> could this martial arts movie man be the next governor of arizona. you're watching "first

. >>> jpmorgan chase will pay for bernie madoff's crime.will shell out more than $2 billion for charges on the madoff ponzi scheme. jpmorgan was the largest bank used. this is the largest forfeiture of bank in u.s. history. >>> asian stocks got a boost from the decline in the u.s. deficits. tokyo's nikkei rose 2%. hong kong's hang seng added 1%. >>> the new year slump on wall street has ended. the wall street had dropped for three straight sessions, but on tuesday the dow jumped 105 points while the nasdaq added 39 points. >>> fireworks at the big consumer tech conference in las vegas. john legere was escorted out by security after a photo appeared on twitter. >>> get ready for what some are calling a cheesepocalypse. velveeta says there may be a shortage. there is a shortage of the orange/yellow product. they say the demand is high this time of year as people gear up for the super bowl. so far it's short term. anne-marie, say it isn't so. >> i think it has more do with the deep freeze that everybody is sort of under, right? what do you wan