j. p. morgan, but none of the other banks. tell us your analysis on that. >> basically what we like about j. p. morgan is diversified, each of the businesses appears to be well managed, despite the losses you refer to in the credit card business. and i think it's one of the banks that will be, its best position given its capital base, the fact that it's repaid the tarp money to take advantage of this current environment and make another assisted acquisition sometime later this year or during 2010, given the fact that its washington mutual acquisition is fairly close to being fully integrated. >> susie: can you give us your disclosure on j. p. morgan, do you own the stock or does the firm have any relationship? >> i did do not and they do not. >> susie: you her our report been c. i. t., we were looking at the impact on small businesses if the c. i. t. can't come up with the financing. but what would be the impact on the financial system? everybody always talks about systemic risk. what's the risk here? >> i think the digs purely

j. p morgan. wh you add up what we' hearso far, howould you characterize the financial health of the banki stem, from these two outfs? >>ell, there certainly t revenue sidef the equation whic remained qte strong in the seconduarter, got a lile weaker in t third quarter as thing slowedown. but the fixed income markets and equity markets have been relatively healthy. >> susie: weave some bank reports coming up, w have bank of america tomorrow, also citi tomorrow annext wed lls fargo. what suld we expect those firms to report? >> wl, tomorrow's report bank oamerica and citi also both have strong capital markets, so we're liky to see those to be ratively strong on those lines in bk of america case they added abt 13 billion to their reserve i each of the last t quarters, so thr operating resultwill be a little weaker, they had somewhat higher credit cos an their peers. wells should he a strong quarter on themortgage frt next wednesday. >> susie: how aboutciti? >> we're looking forheir quarter to be on

j. p. morgan, but none of the other banks. te us your analysis on that. >> basally what we like abouj. p. mgan is diversified, each of the business appears to be well managed, despite the lses you refer to in the credit rd business. and think it's onef the banks that will be, its best posion given its capal se, the fact that it's reid the tarp money to take advaage of thi curnt environmt and make another assisted acquisition sometime later this year during 2010 given the fact that its washington mutl acquisitio is fairly close to being fully integrated >> susie: can y give us your disclosure oj. p.organ, do you own the sto or does the firm have any rationship? >> i did do not anthey do not. >> susie: you her o report been c.. t.,e wereooking at the impact on small businesses if t c. i. t. n't come up with the financing. but wh would be thempact the financial system? everybody alwa talks about systemic risk. what's the risk here? >> i think the ds purely o at basis ihink was correct. c. i. t. does not present a systemic risk to t financial system. you're going to have some hurting retail

the group includes merrill lynch, citigroup, goldman sachs and j-p morgan. meantime, the top guy at bank of america says his industry deserves some...but not all of the blame for the meltdown. an economic bubble like the one we just experienced could not happen without some participation by many of the nation's banks. but, i believe the criticism has been overdone. in fact, much of the excess credit that drove the bubble did not originate with commercial banks. instead, lewis says it came from shadow banks such as investment banks, hedge funds and others. bank of america did buy one of those "shadow bankers"...merrill lynch late last year. southwest airlines looks to expand its operation by outbidding a rival company to buy bankrupt frontier airlines. southwest says it would pay almost 114 million for frontier airlines - hoping to open the door for further discussions on a deal. it's the latest development in an industry that is hanging on by a thread as this recession drags on shares of many weaker airline companies - like us airways, united.. and american

j. p. morganncing before the bell this morning and all eyes are on this financial company to report. jamie diamond, of course, has led day lot of the strength behind that company, buying a lot of big assets during the recession. so that will be a very telling sign as to whether or not this rally will continue. as said, goldman sachs set the bar very, very high. so j. p. morgan has to live up to the expectations of the investor out there who thinks things are looking pretty good so far so we've got that out before the bell today. one of their stock, i was going to bring up was american express. that was a hot stock in yesterday's trading session, steve. it rallied more than 11%. the company announced that default on credit cards grew less than expected in the second quarter and basically that just paints a little bit better of a picture for the american consumer out there as far as falling behind on credit card payments. maybe things are not as bad as feared in that quarter. so there were quite a f

j. p. morgannk of america, wells fargo and citigroup say they are not going to accept those ious leaving california in even worse shape. this is only the second time that california has done this since the depression. all of those banks by the way got multibillion dollar bailouts from the government. >>> still not great but a better day on the market. but oil is the big story on the street. chris cotter joins us from new york and fox business network. royal really driving the market hese days, chris. >> a remarkable slide here, steve. i mean you talk about down 16% during this current six-day losing streak for crude and yesterday, again, it was a big player in the market. you had inventories coming out that basically said the acued inventories are down a little bit but gasoline inventories are way up so you are talking about refiners not need as much crude to refine because the end user, there is already plenty of supply there. so crude was down another 2.79 yesterday closing at about $60. we are

j. p. morgan on the big banking front. that is what drove the market last week. we got pretty good economic data on housing. that is what got us up 7% last week. this week, it will go back to earning as well. we've got hall burton, texas instruments today, mcdonald's, microsoft, caterpillar later into the week. >> talk about cit group and what this mines, being able to reach a deal here -- what this means. >> cit group one of the large of the small business lenders in the country. it look like the bond hold ares have stepped up and put in about $3 billion centrally preventing cit from having to file for bankruptcy protection. you have about a million small businesses that rely on cit for credit. a lot of them are retailer. this is the second biggest season here. back to school, mid-july to mid- september so they needed to have that red its available mostly for their suppliers to be able to get them goods an -- and services. we think cit will be able to move on. the other thing to keep in mind, is is sort of a change in attitude from washington. first time we have

j. p. morgan chase, glomed a 25 gill r billion dollar bail out. they lead the rivals in pay outs.the bonus pool hit $8. (700) 000-0000. this in saying this is the best of times. where are the jobs? host: gory on the republican line. caller: good morning. i guess my point is this. until we can find out exactly who these emyear ees are whatscale, what is the reason, we need to let it go. it is a large amount of money and it does not look good. it fuels a fire we don't need right now. host: an arlt kel reporting that president obama's half sister will be moving to washington. good reaction from the bank bonuses. caller: paul son was the secretary of treasury. when obama came in to say we want regulations on who these banks are paying out, everyone called him a socialist. now, in front of the paper this $100 million is paid out. when he tried put that in place and regulate some of the banking, everyone is running around calming him a socialist. now you see this big headline. sometimes it is damage you do, damage you don't. host: thank you clunker deals frozen. and in the los angeles t