one of the things that j.p. morgan did is they took over these are the kinds of deals that j.p. morgan does with the government so they took over was while had forty billion of equity they wrote down about thirty one billion of that and then j.p. morgan only paid one point nine billion dollars for the company immediately it wrote the equity by two billion dollars then it said this deal going to be immediately a creative to earnings in the tune of two point five billion dollars a year this is five years ago so here's the deal that they got for one point five bill one point nine they get two billion immediately in terms of equity and then they have over the last five years twelve point five billion dollars that they're earning and here's the kicker j.p. morgan is actually now suing the f.b.i. see. because of the funds that were left in receivership there are about two point nine million dollars left in the sea which if they want a portion of that money also i mean. that's a great deal. this isn't from the onion these are and this is what i'm hearing this sounds ridiculous and i mea

economy then j.p. morgan is making vaccine and there are big ones but to what are they attributing the need for such cuts i'll tell you coming right up and finally edward harrison joins me in today's big deal to discuss the long believe of mt gox and what it means for the future a bit clearer now let's get the show on the road. with . j.p. morgan the largest bank in the u.s. by assets is reducing both its headcount and its target profitability for twenty fourteen now j.p. morgan said it expects its total headcount to fall by five thousand to two hundred sixty thousand people the bank announced the changes saying that creating a business model which can deal with new regulations is cutting into the firm's profits however j.p.n. is confident that it can win in this new environment and it is up to nearly profit target from twenty four to twenty seven billion with a b billion dollars now mariana lake explained that the bank would achieve these targets by optimizing its retail banks in other words subtracting the

j.p. morganan had helped banks in trouble before. he wasne of the w men with the resources and reputationo do it. but when barney got to morgan's headquarters here at his library... morgan wouldn't even see him. for barney, disaster was now inescapable. rumors took on a life of their own. monday, the runs on the knickerbocker began. panicked depositors withdrew their savings. tuesday at noon, the knickerbocker's cash was gone. the panic spread to other banks until 246 banks across the country closed, their customers out of luck. j.p. morgan, realizing the entire system was threatened, not to mention his holdings, finally stepped in to endhe panic of 1907. under his leadership, a large reserve nd was put together. then, facing appeals from banks, trust companies, and brokerage rms, morgan met with a group of bankers in his library. together they often worked through the night. it's said that at one point, morgan locked them in while they argued over which firms to save. morgan played solitaire at

regulators out there that are really doing anything now a year ago or saw a so you thought that j.p. morgan was going to set blith masters up for a huge fall where are we on that own as you can see you know the g.p. morgan decided to sell the department of commodities but to go back to your proof to the previous you know or this polluted bankers exit through a regulator is a was that in french and there are all into them bed so who do you know it's more practical to understand with you know what's going on. i say so to put this in french terms blith masters was invited into a menasha trois of fraud between regulators bankers and politicians i understand and maybe stephanie flanders just for the last spice now let's talk about the french economy there was a day of rage at the end of january which saw a nearly twenty thousand take to the streets against holland they were chanting and along economic slogans what were they angry about given the economic numbers pierre . well i was there or you know i was covering the strike the one the broke him out a couple of days ago saying that in two thous

j.p. morgan's chief executive jamie dimon himself said that that horn is quote a terrible store of value and could be replicated over and over yes big fish and autos argue that digital money could provide a way to dispense with transaction fees and penalties charges by banks so of course mr diamond wouldn't be a fan banks want their fees they have no interest in embracing knew he was forms of payment and why what they it makes no sense for them but here's the thing why would we as consumers not want to embrace fielitz payment systems even this gal who believes first generation anything should be viewed with scraps skepticism and a healthy dose of doubt things that new queen card thing looks pretty radical i want to get one so count me in on the side of this new deal this form of banking that awaits us i welcome it with open arms. when the technology bubble burst serious corporate malfeasance was uncovered everyone was shocked at the spectacle so executives at companies like enron and worldcom ended up behind bars and u.s. lawmakers got religion about fraud and passed the sarbanes oxley act o

j.p. morgan the largest bank in the u.s. by assets is reducing both its headcount and its target profitability for twenty fourteen now j.p. morgan said it expects its total headcount to fall by five thousand to two hundred sixty thousand people the bank announced the changes saying that creating a business model which can deal with new regulations is cutting into the firm's profits however j.p.n. is confident that it can win in this new environment and is up to nearly profit target from twenty four to twenty seven billion with a b billion dollars now c.f.o. mariana lake explained that the bank would achieve these targets by optimizing its retail banks in other words subtracting the number of humans and adding to the number of machines now check out these before and after slides are kind of interesting now the one on the left the picture that's of a traditional bank branch and the one on the right is a branch of the future you can see the obvious drop in the need for basic human skill and for rendering on the right you know t

chase is accustomed to now is that thirteen billion dollars settlement that j.p. morgan worked out with the way back in november the federal government that is it caught the attention of both washington and wall street now the landmark settlement stemmed from ak accusations that the bank overstated the quality of its mortgage securities sold before the financial crisis however a lawsuit filed on monday by the nonprofit group better markets has challenge the constitutionality of the deal in the complaint better markets argue that the justice department violated the constitutional principle of separation of power when it unilaterally struck the deal without a judge's blessing better markets is seeking to have a judge approve an injunction that would abolish the deal unless the justice department provides a quote ample and detailed records so such courts may review all the facts and all the circumstances and one washington shenanigans slated to go ahead with the realities of the little drama the passing of a clean debt limit bill who knew now republican leaders in the house

us i checked j.p. morgan was a banker but he's in there saying that. one of the big issues at the moment is a cultural subsidy scheme called royce pledging with the government has bought royce at a horror price and then sells it on and it's interesting to see all these billionaires complaining about it. when they were in why is that interesting otherwise billionaires complain all the time you know j.p. morgan goldman sachs involved and all outside of detroit they're warehousing aluminum and other metals and creating a whole totally distorted market and basic entities we know that goldman sachs totally overthrew crease with flooding the country with bad debt and now picking off assets for a penny of the dollar so why would this be the same in thailand as just a bunch of bankers they find thailand as ripe to be exploited in this way and this is what it seems like part and parcel of this growing phenomenon not just about food prices first because on one hand when food prices get to a certain level people revolt and riot roughly forty percent of disposable

complimentary to a financial activity now at the time that this was pushed it was first pushed by j.p. morgan and they said in congressional testimony they compared this complimentary financial activity to something like american express which which publishes the travel and leisure magazine it would just be something like that just complementing each other well we're saying this relationship between banks and heavy industry for a while in the oil industry so the oil industry which is capital intensive they borrow lots and lots of money and to the point where the u.s. dollar for example is collateralized by oil you know story in one nine hundred seventy s. when the u.s. went off the gold standard they went on the petro dollar you see that the dollar the u.s. dollar is now backed by oil that's emerging really of heavy industry and currency manipulation and wall street debt creation but what does goldman sachs met pieces talking about is really the financialization of every single aspect of all industry into nothing more than a way for banks to crank out more every complicated financial widgets

this are goldman sachs morgan stanley and j.p. morgan chase and he says regarding the oil industry for example this is just how deep the tentacles go but banks aren't just buying stuff they're buying whole industrial processes they're buying oil that's so on the ground the tankers that move it across the sea the refineries that turn it into fuel and the pipelines that bring it to your home then just for kicks they're also betting on the timing and efficiency of these same industrial processes in the financial markets buying and selling oil stocks on the stock exchange or oil futures on the futures markets swaps on the swaps market excedrin so there's a whole sale merger of banks and heavy industry they control the entire process much like oh we saw that back in the fifty's sixty's and seventy's did it way with communism also control the entire process right i mean it is a command and control state run corrupt fascist dictatorship for stuff i mean that's a given but what it does to the economy as a whole and the ecology as a whole remembe

chase is accustomed to now is that thirteen billion dollars settlement that j.p. morgan worked out with the fed way back in november the federal government that is it caught the attention of both washington and wall street now the landmark settlement stemmed from ak accusations that the bank overstated the quality of its mortgage securities sold before the financial crisis however a lawsuit filed on monday by the nonprofit group better markets has challenged the cost.

chase is accustomed to now is that thirteen billion dollars settlement that j.p. morgan worked out with the fed way back in november the federal government that is it caught the attention of both washington and wall street now the landmark settlement stemmed from ak accusations that the banks overstated the quality of the mortgage securities sold before the financial crisis however a lawsuit filed on monday by the nonprofit group better markets has challenge the constitutionality of the deal in the complaint better markets argue that the justice department violated the constitutional principle of separation of power when it unilaterally struck the deal without a judge's blessing better markets is seeking to have a judge approve an injunction that would have balazs the deal and.

can talk about herbalife forever but i think people make a port of it so i want to turn now to j.p. morgan who get bored of it now we recently learned that the bank c.e.o. jamie dimon received a whopping seventy four percent raise this year and take it home now a total of twenty million dollars that's up from the eleven point five million he got the year before now mind you this is the same year the very same year that j.p. morgan was fined over twenty billion dollars by the justice department and i want to read you this quote mad tell you the wrote an article in rolling stone saying quote the biggest news to me was how brutal an indictment jamie's raise was on the obama holder justice department which continues to profoundly misunderstand the mindset of the finance villains they claim to be regulating now here's the question sam do you think matt tavi is exaggerating or is there some merit to his argument. actually he's being quite nice just as the problem is turned into tax collectors you commit a crime you don't do time there's no conscience crime without consequences all you do is you

place in fact jamie dimon he just took on twenty million dollars for a job well done this year at j.p. morgan my new same year that he raised had to pay billions tens of billions of dollars to the justice department of justice will let you decide. author and investment banker criswell and has been critical of the us his response to the housing crisis now while the housing bubble was ongoing he was uncomfortable with the money and debt used to build the american dream but now that we're in a tepid recovery chris believes of big problem keeping us from a more robust recovery is household debt specifically the debt from residential mortgages he wrote all about this in his book titled inflated now i'm keen to hear chris's views on housing mortgages jobs and all the rest of the stuff chris welcome to boom bust it's so good to have you here now i want to start off by asking do you know i've just spent the past few minutes talking about how the irish banking executives they're being held accountable for their actions during the housing bubble now in the u.s. the f.b.i. warned of an epidemic an epide

c is the auditor of j.p. morgan which was the major banker to an of global and of global they couldn't be completely unaware of what was going on and of the transactions that might have caused problems same thing with ai g. and goldman sachs and the problems that they had with transactions and marking them correctly peter b.c. is the auditor of both a i.g. and goldman sachs and all of the auditors play important roles you know auditing government agencies like the fad we're below it is in charge like the treasury where k.p.n. g. is in charge and the tarp program which peter you see and ernst and young got lucrative contracts after the crisis to try to help clean up now can you give me a specific example of the types of transaction issues you're referring to. well let's look for example goldman. and global peter b. a c. was fully aware of weaknesses in their systems and weaknesses in their ability to control the transactions that corps and started doing he really pushed that company way beyond its core way beyond the