j.p. morgan's inner circles max j.p. morgan offers a peek into trading magic circle just daily is not going to be popular wall street's trading brotherhood the head of j.p. morgan's investment bank has broken a code of silence by revealing how much the firm rakes in as a market maker staley has as he put it opened the commo know by revealing that interest rate swaps came at top at twelve thousand dollars a pop trading loans are asset backed bonds brought in ten thousand dollars a time these amounts reflect illiquidity or the fact that trades are tailor made for clients and in both cases leaving the middle man with extra risk they only need one point five cents for executing a trade of a stock so if a client wanted to buy a stock and make no money but they made up to twelve thousand dollars for an interest rate swap they open the komodo diamond up as cologne. there's a penpal worth going to tell you should be oh my god well yeah this is just a riveted of course i was an option trader on wall street i know that you could ju

global to j.p. morgan would be one of those five lines you know it's doesn't intervene and simple and there are a number of things he came out when when this first started he was prepping the media to assume more customers have to share customers have to get used to the idea that the. funds might not come out first which i'm almost out of time i just have a minute the question becomes why because this is an argument that happens with regulation all the time which is that it starts out small and then there's all of this confusion piled onto it loopholes makes it too confusing for people to understand and at the end of the day that serves the wall street players because no one can understand it but that is do you see this is similar i do here's the bottom line that isn't being discussed global is worth more to certain cities dead than it was alive and before we go who are those entities in your view i can't name this man oh come on give us one or two few morgan obviously there are a number of these if you lo

j.p. morgan's accounts the money arrived with j.p. organ within fifteen minutes and you speak of that mark excuse me for laughing at this because there's one aspect you need to get of this the money that was transferred is transferred from a four disaggregated account ok in our industry a segregated account is radioactive you do not touch a segregated account and transfer money into transfer money out of a segregated account everyone that i talk to in our industry knows that so first off not only are they transfer. it's money in a second but it's been done in the most sankoh sacked area so entirely in my opinion on believable it's not to be believed and then for that to be approved in a matter of a seconds no if someone were sitting in a desk a compliance officer with any kind of training and they saw money coming out of a segregated account that would generate alarm bells alarm bells they would be talking to a number of different people you do not make that transfer in my opinion in one sec it doesn't happen right so basically j.p. mo

doing the bidding of j.p. morgan essentially i don't want to too far and i want to be a conspiracy theorist baronet i don't either ok well we're building a case here let me preface it by saying there has been some significant really questionable activities by certain regulators and i've run into great regulators in this process i've run into great congressmen through this process but there was a case where the f.c.c. apparently with held critical disclosure documents and allowed m.f. global to float a three hundred million dollar bond offering now the reason these documents that they withheld were critical is because i don't know if that john corps apparently had set the straight up so all the risk was associated with these segregated accounts and all the reward went over to london where obviously we know the regulations might be a little different they're very different so are you saying the f.c.c. purposely. i don't i can report the facts the facts are the these documents were received by the f.c.c. on may thirty f

there may be some j.p. morgan goldman sachs involvement based on the information i have in front of me a goldman sachs is a minor player in the entire m.f. global scan on what's to be uncovered with m.f. global is much larger than what's already been uncovered so in my opinion based on what i have seen and this is subjective it's really a j.p. morgan story but remember in lehman brothers j.p. morgan essentially took seven billion dollars out of the carcass of lehman brothers that was lehman brothers j.p. morgan. is now doing is taking money from farmers and retirees so here's my question to you if they're going to be able to take money from farmers and retirees whose next is a bank account nox can they do this to individual savers with a checking account you know could they flip the rules around so they also want someone when they could wake up and boom the money out of their checking account is gone i don't know just asking some questions where's the national outrage because if you look at a group like occupy wal

here j.p. morgan claims number one for government debt after jefferson county so j.p. morgan has emerged from the worst financial crisis since the one nine hundred thirty s. as the most profitable u.s. bank has parlayed crisis era loans to cities and states and a willingness to outbid other firms and local government bond auctions into becoming the top underwriter of municipal debt last year this is a turnaround they say for j.p. morgan's municipal bond department which has been marred by its involvement into the biggest scandals in the history of u.s. public finance a so-called pay to play scheme in jefferson county alabama that contributed to the biggest ever u.s. misapplied bankruptcy and a federal probe that uncovered bid rigging of municipal bond investment products well. you can maybe twenty or thirty. it's an assembly line. yes but i know you're talking to josh brown of who wrote backstage wall street and he talks about the bucket shops of the nineteen eighty's and ninety's who got put out of business once they were caught defrauding customers so why is it that j

global was stolen twice first by course i next by j.p. morgan this was twisted to hide the involvement of powerful figures the strong ties to the political system and multinational corporations operating out of new york and the city of london as richard dreyfus said in the movie jaws well this is not a boat accident now remember the response from richard dreyfus was to the corpse of the first victim of top. and to the public to the tourists coming to amity it was a boating accident that had killed this woman and will of course when he saw this the body he said this is not a boating accident and we see the same thing in the financial markets now is regulators and politicians seeking office to keep on telling us it was just a boating accident was just a little accident a few dreamed that it was blew up accidentally there is no predator involved here there's no violence the equivalent is they keep saying it's a liquidity problem there's a problem of liquidity we need to keep stoking the banks with more liquidity they don't mention that it's not a l

all goldman sachs' the earnings from j.p. morgan two point eight billion from the commodity pits in twenty eleven guess how much goldman sachs was one point six billion what's the difference in earnings how much more did morgan earn one point two billion where do you know that number from the m.f. global scandal so long point two billion of course as we started this is missing one point two billion that was transferred apparently to j.p. morgan yeah absolutely j.p. morgan stole one point two billion from the m.f. global clients and this is the exact amount that they are claiming that they've made the head of goldman sachs over on their desk of death apparently there's this real love of girl life masters is competing against isabelle he lets who is the goldman sachs head of commodities trading and isabel according to the life masters can't cope with our superior platform in industry connections a certain dark mistress something universe has been heard to say if you are the queen you don't make markets you own the markets and everyone

before blows up if silver gets over fifty the idea j.p. morgan stock is worth zero that's worth my works tells me what is what do you see on that front david morgan. ok well i'm not to pick an argument max i first of all everything he said i agree with secondly i mean they're totally insolvent or totally broke right now i mean they are absolutely insolvent so how do you blow up a bank that's totally blown itself up already it's just no one seems to realize it other than those that follow it work like yours but what will happen if it goes above fifty or one hundred or whatever in my thinking it'll just be another too big to fail to print more funny money and try to cover it over but i don't think that i think that's very relevant of what a pension will happen i think more importantly is it doesn't have to get to that crisis thing for people to wake up and the whole financial system to crumble in other areas i mean this whole idea that you can have debt much of a short position is ludicrous i'm actually ok with hedge you know i mean all of my coin

j.p. morgan c.e.o. jamie diamond find yet another way to cash in on attention as a drama queen or king i guess soundings gets a friend on regulation wall lashing out at us the us media will tell you what we think let's get to the day's capital. the u.s. commodity futures trading commission is having roundtable talks they wanted today gone tomorrow to talk about how to protect customer money in the aftermath of the n.f.l. o'boyle collapse you know remember the eighth largest bankruptcy in the u.s. where they are still looking for a reported one point six billion dollars in missing customer money the firm run by former goldman sachs c.e.o. senator also new jersey governor john corazon well james good to less is our guest he's a lawyer representing eight thousand and that's global customers in the bankruptcy proceedings pro bono mind you so he tells me and he has told me that any new u.s. regulations won't be very effective as long as firms can just skirt skirt u.s. regulators by going through the u

john corzine directed some customer money into a company account at j.p. morgan chase to cover a shortfall. at the time, j.p. morgan asked for assurances the moneyas m.f. global's to use. roe wants the subcommittee to question bank witnesses about why it kept the money when it suspected it might belong to customers. >> if you knew there was a problem with the transfer and they refused to swear to you that this wasn't customer money, why do you still have it because, very clearly, it is customer money. >> reporter: roe says, to date, members of his coalition have received about three-quarters of their money back. he's still optimistic they will eventually be made whole. diane eastabrook, "nightly business report," chicago. >> susie: home prices in most of the nation's major cities dropped for the fifth straight month in january, a sign the modest sales increases seen recently have yet to boost prices. the s&p case-schiller index found the average home sold in january lost eight-tenths of its value from december. prices in 17 of the 20 cities the index tracks fell

j.p. morgan chase volunteered to appear for us. other institutions are understandably reluctant to testify because of the time and resources it takes to ensure the testimony is accurate and complete. j.p. morgan chase and their cooperation is very much appreciated. mf global was the eighth largest bankruptcy in the nations history. but that is not what makes its failure no were they. firms of all sizes fail every day. for every award there is a corresponding risk. that is part of the free market. however, a $1.6 billion loss of customer money is not a risk that should exist in an effectively regulated market. i hope that this hearing will bring closer understanding what went wrong and where that money is. thank you to our witnesses. let me say this. our investigation -- everyone testifying on this panel has a good reputation. they have a good background. they are respected in the industry, so as i think has been said before, this is not -- this hearing is to find out what happened. not to appease

they were already on the no no no debit they were on a close watch because j.p. morgan very well if they had run out of money and why and they asked for the comfort level yesterday j.p. morgan said it's an extremely rare occurrence to ask for that letter they knew that money was not money that they should be touching to pay back the j.p. morgan credit on your question from day one of the all of us had very strong suspicions and nothing's happened since then that our money is a cheapie more than you know we were going to get it back however is to break through the safe harbor provisions of the bankruptcy code because they've already grabbed the collateral and you can do that if you show that some sort of criminality took place and there's criminality of all different flavors and varieties that we throw all through this situation and remember j.p. morgan had its hands all over m.f. global as the largest creditor also the underwriter of m.f. global's revolving credit facility their custody and it goes on and just a reminder he mentioned we hypothecation how major of a part

chase the chase bank and j.p. morgan has taken out money to make good on a trade because of a margin call i mean it's that will so in that case i want to bring up a story that i spoke about earlier this week with anthony ran down which is that we have this twenty five billion dollars massive settlement between the federal government between forty nine of the states and it was the biggest settlement in history and this is supposed to make i guess americans feel better about all of those robo signing foreclosures and then it turns out that about five billion of that are going to actually pay out in cash and the other twenty billion also you know do you think about those with mortgage backed securities invested it turns out the banks are probably just going to take the money from them yeah i think it's a crappy deal for the owners that aren't there if you don't think about this is that i mean i think that that's bad i think it's a bad settlement but i think that m.f. global case is just a ruse. really glaring case out right

j.p. morgan and ben bernanke you on that sunday night would have slashed interest rates on a sunday by seventy five basis points you showed up at the bundesbank let's turn to this little clip here undercover you're talking to a buddhist bank executive little did i know that i'm a very day burst terms of collapse interest rates have been slashed and goal was skyrocketing you know waiting to see somebody have to go to school. been told that they're now in lockdown there's a crisis. like the red alert they're afraid to talking to anybody because of such. in the school market. it's quite remarkable really you know we made the case that maybe they should be talking to the press. they were told we were told the situation is much too sensitive. situations like. this fear is that the banking system itself is comparable. to submission. you know you do. you don't know it's coming what's coming next yeah that was a shocker then they revealed that most of their gold sixty percent of the gold of germany is he

just came out which had a chance to look at it but apparently he he pulled money and put it into j.p. morgan during during and after the financial crisis for about two years and he didn't take care to make sure that those accounts were segregated in other words j.p. morgan would have been able to use that money for their own positions or whatever it is so i think i think this is this is really interesting for getting more of these probes and i think it also speaks to the whole thing about the mainstream media who are these people who have always contributors i don't manage someone else's money i don't pyramid. some of the guys cash so you know their capital account does just write a note to you viewers you should be aware of when you're watching these other channels and also why does the money always go back to j.p. morgan why are they always involved in any of these money trails with m.f. global with this guy yet they're never a punishment like you gambino family they're like they're how do you like the top family i think they like goldman sachs is more like a specialty little especially op

fund accounts to meet an overdraft and one of the brokerages j.p. morgan chase accounts in london this is big news we'll talk about it let's get to today's capital account. so as i just said we have gotten news bloomberg news obtained a memo drafted by congressional investors that according to an e-mail a sent by a firm executive at m.f. global jon made that direct order to transfer customer funds to the tune of two hundred million dollars to j.p. morgan in london before the firm went bankrupt this should be a game changer we'll talk about it with our guests but now let's get to ben bernanke it's been a busy week in the spotlight for the federal reserve chairman today ben bernanke he spoke at the opening of a fed conference in washington with other central bankers this rounds out a week where he gave two lectures in his college class the first ever taught by a sitting bed chairman live stream for everyone to see not just the students they got the spot there now you could call it class or you could call it indoctrination or an attempt to rewrite history or

throughout the process and he's done it mainstream media interview rounds being critical of j.p. morgan throughout the process and he told us that he was told by at least one mainstream media channel that they had received a call from j.p. morgan who said we're going to pull our ads you can't have this guy on does that jive with with real stories that you've heard in real examples because i thought i found that pretty darn right and shocking. i think it does but you know most people in the media have what i would call a built in radar they know how to push an issue they know where the line is and how not to step over it so a lot of the censorship that takes place is really self-censorship it's inforced maybe by their bosses you really by someone from the outside calling and it's not really done so blatantly but i wouldn't be surprised if it was there was just a report yesterday that there will be no criminal investigation of m.f. global they can't quote find the evidence you know how much a billion dollars has disappeared they can't find a what actually happened to it so it's unlikely t

made that direct order to transfer customer funds to the tune of two hundred million dollars to j.p. morgan in london before the firm went bankrupt this should be a game changer we'll talk about it with our guests but now let's get to ben bernanke it's been a busy week in the spotlight for the federal reserve chairman today ben bernanke you spoke at the opening of a fed conference in washington with other central bankers this rounds out a week where he gave two lectures in his college class the first ever talk by a sitting fed chairman live streams for everyone to see not just the students they got the spot there now you could call it class or you could call it indoctrination or an attempt to rewrite history or a p.r. offensive in the face of criticism regardless it's friday so we have some time we took some time to look at his lesson plan with more scrutiny and yesterday he tackled the issue of the housing bubble and the debate over the role of the fed's loose monetary policy in creating it so here is professor bernie accompanied by his power point slides making his main point and excuse t

be aware of when you're watching these other channels also why does the money always go back to j.p. morgan why are they always involved in any of these money trails with m.f. global with this guy yet they're never punished gambino family they're like they're happy they're like a top family i think that they like goldman sachs is more like a special little especially operation like i am of called was like the big honcho ok so i mean them of course sorry j.p. morgan so i'm not surprised what they did with. customer accounts and customer money so ok while we're on the media some of our viewers i actually noticed and so did dimitri we noticed that they wanted to hear our opinion on the whole coney story of course the documentary that was this huge viral sensation created by the invisible children group about just a colony of uganda became viral less than two days jon stewart may have taken the words right out of our mouths when it comes to the mainstream media response. we have seen and been following for years we've been strong for years our work in central africa for years is somebody who as

j.p. morgan private bank. thanks for joining us. >> absolutely, always a pleasure, susie. >> susie: so as we just said, investors are waiting on the fed, are you expecting any new policy moves coming out of that meeting tomorrow? >> i don't think so the economy is doing okay. so i think the fed should and probably will stand pat. and wait to see what unfolds. >> you know, investors are also waiting to hear from the fed about those bank stress tests, that should be coming out at some point this week. do you expect any surprises there? >> well, i think the market has been focused on this as you mentioned earlier. and no, i don't think there will be very many surmises. the fed is on the case. which means that investors can at least have a little bit of less concern if the fed's doing their worrying for them about the way things might unfold, then investors perhaps perhaps can worry a little bit less. >> are you investing in any of the big banks. >> well, we invest on a more sector neutral basis. and