. >> susie: the bankptcy countdown is on for c.i. tonight. the nation's lding small business lenr is poised to fail. now that uncle sam h put away his checkbook. coming up, what c.i.t.'s faire could mean to small business that depend on it. >> paul: j.p. morg chase ecks in with record second arter revenues. analysis of the resultand a eview of what's ahead for the financial ctor in the second half. >> susie: google continu to search outrofits. the company poed a near 20% rise in seco quarter earnings. but the gianweb search engine isn't fing on all cylinders. we'll expln. >> paul: i'm paul ngas. >> susie: and m susie gharib. is is "nightly business report" for thursday, july 1 "nightly business rert" is made ssible by: this program was madpossible by ctributions to your pbs station from viers like you. thank you. 7/ >> susie: good evening, everyone. hank plson was back in the spotlight onapitol hill today, but it wast the kind of homecoming he expected. testifying bore a house committee, the formetreasury secrary was grilled on his role ibank

. >> suzan: tell me about this c.i. deal. how importt was it tod, do you think, in continuing is overall potive tone that 've been seeing in stocks? >> oh, i think it was really important. c.i.t. hasbout a milon customers in ameri. and so fincing from c.i.t. is really important partularly as you said a moment ago to smaller businessesll across america. >> suzanne: not only the c.i.t. deal but beer than excted earnings were ao out ere again. they have been for the last week or so. helping to sort of set this ce tone for the maet. when you talk about earnings, yore not really talking aboutrofits beingetter th expected. you say we should focus on revenue. tell me why revenue is so important to this story right now. >> sure thing. i want to s both earngs and revens but paicularly revenu, saeltz revenues, very important he, because take the first quaer. ke last quarter. companies beaton earngs timates but their revenues fell short of wall street expectatio. how d do tt? how did they beat on earnings? unfortunately it was cutng by

is no thgovernment has decided that c.i. is not important enough to the financial system toave and the mpany is expected to file for bankruptcy as sooas tomorrow. thatould mean big trouble for hundredsf thousands of small to medium sized firms that depend on i.t. for loans. c.i.t.s the nation's largest supplier of facting, a lifeline of the retail indtry. if c.t. goes under, the national retail federation's mallory duncan ss shoppers will fl the impact. >> if suppliers cannot provi merchaise, then that means that t retail shelves are esntially empty. you walk into a retail stor now, you'll see there isery little merchandise. but we know that with the christmas season cominup, it's imrtant that that merchandise there to help the economy g back on ack. >> rorter: but many small nks say don't worry, ty can pick up the ack if c.i.t. goes under. chricole at the independent community bankers associion says his mbers are chomping at the bit. >> i tnk most needs will be met. i think there y be a transitioneriod. there may be a perio

fit of all, thee was the news over th past week tat the c.i.. had the ecret program, that lee --leon panetta, the c..a. director, learned about itnd when he heard abt it went tocapitol hillnd held emergency meetings and said i caneled this program and you hen't been told bout it for eight years. gwen: maybe he sould have reought in retrospect. >> a lot of drama. and that part of it of course adding to the dramawas that at the earl period vice president cheney advisedhe agency not to notfy congres as it came out, and we'e still tryi to learn the parameters of this program, but i seemed like it was a progm to assassinate senior al qaeda leaders wherever they may be around theglobe. of course, as w know nd as it has been repoed for years, the gency hasbeen killing a qaeda lders. they jut haven't been doingit with humans. they'vbeen doing it with drones flying oer pakistan. there are still qstions about what exactly ts program was all bout. and it w announced today that the hoe intelligence committe is going to be examining this program and others s

small to mid size business lender, c.i.l receive financing from a group of bondholde bondholders. details of the plan are expected to be announced later today. it will include holders. and microsoft will likely report the first annual sales dip in its history as a public company this week. the tech company will report their earnings on thursday, and investigators only hope the company can prevent enough optimistic out look going forward to maintain the momentum that has been able to push shares up 63%. and companies are on quite a tear. and investigators were able to talk with windows 7. and there could be a lot to listen to in the writing and reading in between the lines. we will hear from microsoft on thursday. >>> if you have been putting off your summer vacation plans until now, you may be in luck. many hotels, resorts and airlines are offering deepest discounts in 13 years hoping to drum up late summer business. can you fly to many cities around the country for less than $100 round trip. you have to wait until m mid-au

i think ere is a feeling certainly at the c.i. that that ijust wrong. anthat it is increasingly a probleif you feel that you're working n for the present but to tryto keep members of congress coortable >> ifill: wt's the distinction beeen -managing and oversight? >> well, that's good estion. the ci.a. is an executive a of the preside and operates to do things that, b their nature, need to be hidden. in some cases they need to be denied if you ca do it oply you do itthrough anothe agency. we often forget that the c.i.a. exists really to systematically viote the laws ofther countries. >> ifill: but no our own aws. >> but no our own laws but i do think that on question as we think about the stakes... theistakes that the c.a. made a the they tellabout thisr that, an abiding question f me is do we have the kindof intelligen agency need in a wodike this, that is dangerous? how is c.i.a. performance being aected by these investigations, by the thrts of prosecutio my sensis that this is tough time for the c.i.a. and that perfoance is suffering. >> ifll: the oba

from drones but this wld be up close and personal, with a handgun or sething like that, perhapwith a c.i. operative, perhaps with a local ally cruited for the purpose or paidor the purpose. but this program in all eight years never got beyond the planning and training ste. we're told that no one was ever killed under this program. >> rose: tel me what wrong with this. >> a l of folks, incding mocrats who were iefed on it think nothing's wrong with this. >> rose: but what do we now think is wrong with it? >> well, i think the focusas really been on wheer congress. the debate has been whetherongress shoulhave en told. >> rose:his is just a disclosure question, not so ch that this was an el program? >> there's some complicions with it. at least accordingto... there one report about it in the brish press, the guardian newspaper whichsuggests that the c.i.a.as planning to keep secret fm allied countries thathey were going to operate hit uads within these countrie so i crees some diplomatic problems certain. and i ink that mht have been one question. >> rose: during thclinton administration th

>> c.i., absolutely. the whole alphabet soup. you ow, episodically are there things that uld be done better? always. so the question f me is is wh i came in as the secrety homelansecurity is wl, at's our value addedto that? why should the taxpayers pay for us to be involved in intelligence gathering and shing? and i think our valuedded is really that important linkage with stas, counties, cits, tribes, territori. anso what we are working on now is to really make that a very robu connectio not just for exchging formation, but also analysis ba and forth. and there's a lot of wk to do there. >>ose: new york city gets lots of credit in tms of the things that i read written by indepeent journalists but what they have done as a local organization in terms of combating terrorismand the commissionerere, commissioner kelly sends people allver the world. he sent people iediately after mbai to look intoumbai in order to provide som kind of information that t city of new yo could benefit fm. >> that's right. >> rose: and you coordinate... it

. >> rose: c.i., f.i., everybody else. n.a.? >> c.a., absolutely. the whole alphabet soup. yoknow, episodically are there things thacould be done better? always. so the questionor me is is en i came in as the secrary of homeld security isell, what's our value added to that? why should the taxpayers pay f us to be involved in intelligence gathering and aring? and i thin our value added is really tha important linkage with stes, countie, cies, tribes, territoes. d so what we are working on now is to really make that a very rost connectn. not just for exanging information, but also analysis ck and forth. and there's a lot ofork to do there. >> rose: new york city gets lots of credit inerms of the things that i read written by indendent journalists bu what they have done as a loc organization in terms of combating terrorism and the commission here, commissioner kelly sends pele all over the world. he sent peoplemmediately after mumbai to look into mumbai in order to provide se kind of information thathe city of new rk could benefitrom. >> that's right. >> rose: and you coordina

c.i. tichlt t. billion in additional financing. >>> starbucks is opening a pilot neighborhood cafe in seattle next week that features nighttime hours, live entertainment, beer and wine. it will be called 15th avenue coffee and tea and it takes the name for the street address. it will sell products without the starbucks logo. starbucks says it may open other cafes in other cities, depending on the success and popularity. interesting concept. back to you. >> we'll see how it does. courtney reagan, thanks so much. have a great day. >> reporter: thank you. >> we are always looking for jobs for you. the rappahannock area community services board is looking for a jail and detention center supervisor. the position would specialize in mental health and substance abuse. applicants should have master's degree in behavioral sciences. to apply, visit the rappahannock area community service's board website. you can also find jobs on our website. visit nbcwashington.com and search jobs 4 you. >> let's get another