one, not even dimon could hope to spot.orgivable offense. is the money good? given the facts and cleanup and results the only judgment that matters now is if the stock is a buy or a sell. after what we heard today, the stock's clearly gotten too cheap versus the fundamentals. the answer's pretty darn clear. jpmorgan, it's a buy. stick with cramer. [singing] hoveround takes me where i wanna go... where will it send me... one call to hoveround and you'll be singing too! pick up the phone and call hoveround, the premier power chair. hoveround makes it easier than any other power chair. hoveround is more maneuverable to get you through the tightest doors and hallways. more reliable. hoveround employees build your chair, deliver your chair, and will service your chair for as long as you own your chair. most importantly, 9 out of 10 people got their hoveround for little or no cost. call now for your free dvd and information kit. you don't really have to give up living, because you don't have your legs. hoveround replaced the legs

this unit remited to jamie dimon. this was basicalty a large out of control bank within a huge bank. and -- >> tom: the magnitude. this strategy generated $2 billion in profit over the previous four years before this year. deposit money wasn't lost, and you know this, defenders say the trading loss was not all that material, considering the bank still is able to report a profit today. >> well, that's ridiculous. now look at what you just said, that this unit reported 2 billion in profit over several years. now they have $5.8 billion in losses year to date. the losss are climbing. the losses swap the profits they reported previously, which shows you how outside this trade was relative to the size of this unit, and this unit itself is a large bank within a tremendously big bank. now this is one silo, one unit that blew up at j.p. morgan, and j.p. morgan has trouble elsewhere. the way to look at this isn't in the context of the size of j.p. morgan, but the size of this unit. >> now in terms of the profit that is j.p. mor

one, not even dimon could hope to spot.s and cleanup and results the only judgment that matters now is if the stock is a buy or a sell. the stock's clearly gotten too cheap versus the fundamentals. the answer's pretty darn clear. jpmorgan, it's a buy. stick with cramer. s new york st. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com. a living, breathing intelligence helping business, do more business. in here, opportunities are created and protected. gonna need more wool! demand is instantly recognized and securely acted on across the company. around the world. turning a new trend, into a global phenomenon. it's the at&t network -- securing a world of new opportunities. ♪ >>> all right, guys.

to me, bad thing, but jamie dimon did use the word accident. you get all of these things like accident and that's different from fraud which is different from bid marks not within. >> and the optics of the situation are quite good for jamie dimon and j.p. morgan. they restated the first quarter. they have thrown out the numbers for the clawbacks, so all of it is the next earnings conference call, are we going to be talking about this? >> i don't think so. >> we may be touching on it a bit, but we're not going to be focused on it. we won't literally have hundreds of pages of different presentations having to do with it as opposed to just focusing on the numbers them. when you look at the big picture in terms of banking and in terms of j pflt morgan, i know we have it if we can get to it. loan loss reserves continue to come down. i like to look back at this. it does give you a sense where we were in the crisis and where we have been going. another $2 billion in release from loan loss reserves mostly in mortgages and credit cards but that's where

jamie dimon is showing us they're putting them in practice. they're serious and they may restrain bankers doing this in the future. >> so is this better or worse for jamie dimon? >> i don't know. it strikes me as kind of throwing the lower level guys under the bus. the clawbacks on the books since ten years ago and maybe what we're learning here is what something from the british, namely the guys at the top have to give something back. >> for the moment, back to you at hq. >> thank you. >>> clawbacks the right move or not? ask republican congresswoman which grilled jamie dimon about the loss. congresswoman, nice to have you back with us. >> thank you. >> are the clawbacks proposed or put in to place at jpmorgan sufficient in your view? >> well, i think at this point at least the most involved actors are having their compensation clawed back and i think that's a good thing. the purpose of the clawback i think to demonstrate to the industry that the behavior has l have consequences and hit you in the pocketbook so i think that's effective becaus

one, not even dimon could hope to spot.given the facts and cleanup and results the only judgment that matters now is if the stock is a buy or a sell. the stock's clearly gotten too cheap versus the fundamentals. the answer's pretty darn clear. jpmorgan, it's a buy. stick with cramer. sweetie, you have to scrub it first. no you don't, honey. yes, you do! don't! i've washed a few cupcake tins in my day... oh, so you're a tin expert now. is that... whoa nelly! hi, kitchen counselor here. he's actually right... with cascade complete. see cascade complete pacs work like thousands of micro-scrubbing brushes to help power away tough foods even in corners and edges. so, i was right, right? i've gotta run. more households use cascade dishwashing detergent than any other brand. >>> all right, guys. we need to hear something good from china. if we get something good from china on sunday, we're going to come in and we're going to continue this rally. but if we don't we're going to be back in euro land, despite whatever we hear from the

one, not even dimon o'could hope to spot.ven the facts and cleanup and results the only judgment that matters now is if the stock is a buy or a sell. the stock's clearly gotten too cheap versus the fundamentals. the answer's pretty darn clear. jpmorgan, it's a buy. stick with cramer. this is new york state. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com. >>> seconds away on a special edition of "the kudlow report," the markets make a big play for a sign of life in the economy. 204 points up. but does this rally really have legs? also,

." >> coming up, is dimon forever? should the jpmorgan chief lose his job after the firm's $4.4 billion trading loss? or is he as good as it gets when it comes to bank ceos. the debate is straight ahead. eliot spitzer runs in on the recent rash of wall street scandals and how he plans to fight allegations that he pressed charges against hank greenberg for personal reasons. plus, life in the fast lane. maria takes a lap with the ceo of nascar. it's all ahead on the "closing bell." tdd# 1-800-345-2550 resistance, breakouts, tdd# 1-800-345-2550 a few other tricks that i'll keep to myself. tdd# 1-800-345-2550 that's how i trade. tdd# 1-800-345-2550 and i do it all with charles schwab, tdd# 1-800-345-2550 because their streetsmart edge platform tdd# 1-800-345-2550 helps me trade quickly, intuitively. tdd# 1-800-345-2550 staying on top of the market is key! tdd# 1-800-345-2550 and the momentum tool, tdd# 1-800-345-2550 it lets me do it at a glance, tdd# 1-800-345-2550 so when things shift, i'm ready. tdd# 1-800-345-2550 then

but jamie dimon said they could get bigger by another $1.7 billion. keep in mind just because the trades were discovered and announced to everybody, you know, they can't just suddenly be stopped. so what has to happen is the bank still has to unwind some of the trades. many of which were very complex, and that takes time. but get this. even with the trading losses that were announced today, the bank still beat expectations, reporting a $5 billion profit in the second quarter. it's taken in $9.9 billion in total profit so far this year. also the bank says the chief investment office where the losses came from will no longer trade these complex derivatives. here is something that makes the announcement interesting. these releases normally come during a very short conference call, but jamie dimon is sitting down at headquarters here in new york right now. he has extended the meeting to two hours. you know, it looks like dimon knows he has lots of explaining to do to get that investment confidence back and let people know that the bank does have things un

morgan automaton as mechanisms that he has a direct line to what jamie dimon is like mary works for j.p. morgan he's on the board of directors why would anyone listen to this bag of course and law as well in fact they state max mr blair's intervention is likely to prove controversial because of his commercial interest since leaving downing street five years ago he's an advisor to j.p. morgan a u.s. investment bank and to zurich a swiss financial firm and its clients including several governments which are said to deliver an annual income of about twenty million pounds right so yes twenty million pounds to use the office of the prime minister of britain to soft pedal on bank reforms because he himself is a recalcitrant bank prostitute who is on the receiving end of bribes graft blood for oil do i need to go on he's a trifecta of fraud he's rigged the media he rigged elections any rigged markets this guy needs to be arrested well let's talk about crime and punishment to the other bankers there's thousands of them they're operating all over the place the system is corrupt we could get rid

and jamie dimon's house front and center. all eyes on jpmorgan chase as investors are awaiting news on clawbacks. and it's what some are calling for, but will clawbacks have unintended consequences that will impact the bottom line. we have it covered straight ahead "closing bell." how are we settling down? dow industrials are down a quarter of a percent. volume on the light side. the nasdaq gave up 21.75. a sea of red, and red is what we will see for the first week of july if this streak continues. westwood holdings mark freeman says the focus should be on fundamentals. colorfulty on europe and other issues is not coming soon. we also have jeff cox. thank you for being on the program and joining us. >> great to be with you. >> mark, you're expecting pretty tough markets? >> look, i think as you lie highlighted several times, especially on the macro front, they're waiting for resolution on the european debt crisis, the fiscal cliff, or waiting for higher rates. they're waiting for things that will not be resolved in the near t

we've been monitoring the call with jamie dimon.e to the investigation at jpmorgan and just to clarify, where things are, the bank is not clear to the bank what took place was criminal. they do believe those marks were "aggressi "aggressive" and the question of course is going to be were those marks within a band that is appropriate, we talked about 15% on either end, is that a criminal issue. >> in the liquid market. and they were the market at that point. >> and the second question were these trades hidden or how they were arriving at these numbers was that being hidden from upper management? there are still questions, the bank not clearly coming out and saying this is criminal but suggesting that the marks clearly were aggressive. >> let's say you got a synthetic derivative and it's hard to get within 20% in a liquid market of where it is. say it was off by 80%, if it was, if you were off by 80% deliberately, then would it be criminal? sarbanes-oxley or anything which said you're responsible for the veracity of these numbers, and

jamie dimon dismissed the report about a week later.h after that it turns out that the company has a $2 billion loss from the position. jamie apologizes. the cio who oversaw that unit, ina drew, retired just four days later. within a week, stock buybacks were halted at the firm. and, of course, more recently, we've heard jamie dimon testifying before senate on the matter and reports that losses could be as much as $9 billion. that, of course, is what we're waiting to hear from the company when it reports earnings later this morning. and we'll have a more detailed preview just after the break. ddd#1 >>> welcome back to >>> welcome back to "worldwide e exchan exchange." >>> china grows at the slowest pace in three years, but data that's mostly in line with expectations. >>> italy looks to sell up to 6 billion euros in debt. >>> spanish banks are still in dire straits as they take up 30% of all gross ecb cash in june. another sign lenders are still struggling to get access to funding. >>> and jpmorgan reports second quarter results this mo

what does dimon think of sandy wile's break up the bank comment? we'll find out. >>> investors going cold on global growth concerns. is it a buying opportunity? we'll find out after the break. sometimes investing opportunities are hard to spot. you have to dig a little. fidelity's etf market tracker shows you the big picture on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend. i'm stephen hett of fidelity investments. the etf market tracker is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea. this is new york state. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can

>> you can trust jamie dimon. look at the way he handled this.oks like a one-time situation to me. and you can try to expand it in so many different ways. but jamie dimon showed how to run a bank and how to handle a controversy, in my opinion. so with the stock here at $36, if we get the clarity on the stock repurchase, i think you can get back into this. he says he's going to do it. i think the worst is out on jpm. >> joe, jump in quickly. >> bought it this morning. you have to skate to where the puck is going. the puck is going to the fact that this is past for jpmorgan. >> bizarre hockey analogy. >>> google in the green, but not really participating in today's broader market rally. just this morning, a neutral rating was put on the country citing increased competition as a major possible headwind. james dix is the analyst on the call. he joins me now. your report, 98 pages long. i did not read the entire thing. but i hoped i got the gist. i'm a little confused by your call, though. are you saying, avoid buying the stock and just hold fit y-- i

problem with jamie dimon has on this side though is these lovely little accounting tricks that they get right so let's say the numbers are huge let's say really is nine billion dollars when it come time to book the trade this is not a hedging trade max and that's what i think everyone needs to understand j.p. morgan actually disclosed that in their financial statements that they filed with the f.c.c. this is a for profit trade so what that means is at the end of each month they get to book where the trade is that they know what the number is right now they don't have to tell shareholders though till the end of the quarter ok so you know this can be whatever the trade is in that moment that they're going to book well we don't know what the real losses until they unwind the trade they have to sell everything right and so on top of that think about this if say the numbers are really bad and they go and they have to book five billion dollars and the revenue is only three point five billion dollars which is what analysts are estimating right now for the second quarter j.p. morgan could g

ceo jamie dimon told amists this has shaken the company to the core. traders if london managed the -- in london managed botched portfolio and were supposed to be protecting the company against risk but the strategy backfired. dimon said the managers have been dismissed without severance pay and also plans to take back two years worth of compensation from each of the executives. that includes the bank's former chief investment officer dough. jp morgan had one of the best reputations in the banking business and now working hard to repair the image. dimon told analysts we are not making light of the error but we think it's an isolated event. the company made a profit of $5 billion in the last quarter even with the losses, that was down from a year ago but still beat wall street's expectations. alison harmelin, cbs news, new york. >> that better than expected profits have boosted the stock this morning trading. >>> coming up next, anny has the weekend forecast. >> jc we've got cloudy conditions out here. we could see some sprinkles maybe a shower. but with

jamie dimon really came out wanting to try to be as transparent as possible i guess more and talk about how this affects you know people not on wall street. how does it affect people not on wall street well let's see how does jamie dimon get to take on so much leverage that his trading operations that his bank can take these massive outsized risks will the more depositors you have the larger deposit bank you have the more leverage you take on so the more average folks to put their money into the commercial banking side of j.p. morgan a very simplified version the more risky bets they are enabled to take so there is one piece of it the other piece of it is why can j.p. morgan put so much risk on the line so much money on the line in risky derivatives portfolios that they maybe shouldn't even be taking well what's going to happen if the bank does implode what's going to happen if a five billion loss was suddenly a ten billion dollar loss a twenty billion dollars loss something that really did threaten this bank which is which is huge obviously so a few billion dollars really doesn't threa

of the entire globe maybe jamie dimon is trying to send a signal he's shaken to the core he's that he is being is there really in this more big new jamie bell i mean i'm being probed by aliens say i bring it took it to the moon for the fraud of trauma. you know they could develop like a fraud a chronic beam you know beam it down on the balance sheets of deutsche bank. try to somehow solve their balance sheet issues of course deutsche bank is insolvent society generale b. and b. that if you were to freeze in time and look at their balance sheet or any given day you'd find they have absolutely no collateral j.p. morgan's balance sheet is no collateral one hundred sixty billion dollars goose egg there's nothing there it's all smoke and mirrors jamie diamond is being probed by aliens trying to sell his company's debt to some arriving spaceship floating around planet earth and this guy here. or you just described it sees the ellens over area fifty one while they just take area fifty one public on nasdaq they could probably take a public for more than facebook unequally fallacious nonsensic

how much pressure on bob dimon, the ceo as he faces the parliamentary grilling?> reporter: it is coming on wednesday, it is taking heat off bob dimon saying the buck stops with him. there is a great deal of pressure on the ceo because he's very much the public face of barclays, he's the man that said the payment of remorse and apology is over. now he finds himself apologizing all over again. so hope that's it for the responsibility for this business over at barclays is probably a little bit optimistic to be honest but we will hear more from bob dimon and the way he's trying to paint this on wednesday when we get that addressed to the select committee. several other elements we should bear in mind, who else will be implicated, which other financial institutions will be implicated. we will have to watch as the probe widens who else is involved and also the possibility of criminal charges as well, they're going to be examining files and there could be possible criminal charges and the political fallout, too, over the weekend, david cameron said he's ordering an inde

and c-e-- jamie dimon says it might get even bigger-- almost $2 billion dollars bigger. has to unwind some of the trades-- and that can take time and oney.but believe it or not-- the hhge morgan still managed to beat - exppctattons with a $5 billion dollar profit in the second quarter.and even though stock wws pummelld after the announcement of big trrding for the year.the bank says the chief investment office-- where the losses came from-- will no longer trade invooled could lose their salaries from the last two years-- plus their jobs. dimon actually sat down with analysts for a lengthy meeting to discuss the heavy losses. this is all music to wall street's ears.investors new bigglosses were coming.they wanted to see the bank pddressing the problem-- and getting back on track.i'm alisonnkosik in new yorr. -----end-----cnn.script----- coming up... the boss... cut off. off.music nats nats why one of bruceessringsteen's shows was cut short this weekee. peekenddfire tears through a randallstown aparttent complex. the damage done and the residents left homeless. homeeess. t

dimon's acknowledged that. they made serious mistakes. the reason their stock went up today is twofold. one, markets like certainty. now there's a number. secondly, the bank still has a healthy balance sheet. that's very different than libor. libor is terrible. it's a serious crisis. it's like fixing the points spread on the super bowl. that is quite different than mistakes or bad trades at banks and we need to keep them separate. >> all right, thanks -- final word, steve. >> the reason it's a crisis, it makes people think that the -- all of these markets are being manipulated. >> that's right. >> that's another thing i find very troubling. folks, that's not the case in most cases. i think in libor that was the case. manipulation going on here. >> we all agree, we need a lot more transparency. what about gasoline prices or everything else? thanks, we appreciate it. >>> still "outfront," mitt romney gives an afternoon of surprise interviews. in tv, we could watch them all, so i watched every single one of them, and he was sweating. >>> and

do you think you'll be successful in this bid to get jamie dimon off of the fed? >> i think it depends how large the losses are. people are talking about perhaps 5 billion today before a week interest ou ago they thought it was $2 billion. to have the new york fed as a primary leader in that investigation while mr. dimon sits on the board of directors of the new york fed is extremely uncomfortable. i don't think there's anywhere else in corpate america or non-corporate america with that kind of position relationship, appearance of a potential conflict of interest will be tolerated. >> they will say that the fed has a mandate to have business people on the board and that they want business people on the board to actually weigh in but you're saying it's because of specific jpmorgan trading laws and that's who's investigating it? >> that's correct. it does specify some bankers should be on the board. that's an interesting question. we should discuss whether or not going forward that's a good idea. at the moment it doesn't say you should remain on the board if various

does that mean the jamie dimon premium, if you will, returns to this stock? >> i think it will depend on what their underlying fundamentals are. and in their quarter, if you x out the london whale, the quarter was pretty good, in terms of deposit growth of 6%, investment banking fees were better than expected. mortgage results were strong. loan growth at 1%, 5%, year over year. so i think there are some things you can point to that are encouraging. i think these guys, usb and wells fargo are the three banks to own in this environment. >> grasso, you've been unwilling to say you were ready to buy one of the big banks. you've thrown out the regionals you like. what about jpm here? >> if you look t it an a purely technical basis, it's below a significant retracement to its recent highs. for me, the door is still up to a $30 or $31 print. we're significantly above that if you look at it on a percentage basis. i'd rather wait until the smoke clears, especially if european issues gain more traction. going forward, i'd rather stay clear of that. i'd still rather be

dimon is being very open about this. he said, quote, this has shaken our company to the core, and he says traders involved in trading losses are no longer with the company. now, you want to know how it effects the bottom line, it is held in a lot of everyday investments. total dollar value of jpmorgan shares is more than $60 million. largest amounts in three van guard funds. even with a 16% slide in shares since the loss came out, since we learned about this loss may 10th, shares are up 4.5% for the year. while you may not be where you were may 9th before we got the news, you could still be making money on jpmorgan shares. >> not a bad thing. a lot of people don't realize they have chase in mutual funds. not a lot of people pay attention to what's exactly in there. >> they will now. >> they sure wil alison, they will. thanks so much. jpmorgan lost in market capitalization. >>> of all the times live in iraq, what went through your mind. >> this is the geographic south pole. ♪ ( whirring and crackling sounds ) man: assembl

or have aliens kidnapped jamie dimon and probe him is that your solution for everything where there's more debt than then can ever be paid back there's no economic output scenario that would pay back that debt the debt is growing as as as a cancer you know i mean it just of cancer justifies itself doesn't it cancer if you asked camps or whether or not it was cancer would say no i'm doing god's work you know if you ask rust rust are you an essential systemic ingredient of this car and the rust would say yes i'm rust i keep this car together i'm what makes this car you can ask jamie diamond illegitimate jamie diamond just like you can ask an answer to whether or not it's a legitimate inside the body of a healthy individual these are parasite parasites i think that they are you know good doing god's work and some of them do do god's work but not to the extent where you've got a parasite like jamie diamond swallowing the entire global economy whole of ninety trillion in derivatives there's bigger than the entire g.d.p. of the entire globe maybe jamie dimon is trying to send a signal he's