how are these companies, let's talk about j.p. morgan. here's a company that had their annual investor day last week. it caught my attention today. it banged up against that previous high. it got within pennies this morning. 5980. when you looked at that stock, it pulled in. it had a monster week, after the lows on monday. here you are, i actually think if you think about how the european banks traded. euro bank index down 2% on the low of the day. i think that will come home to the u.s. j.p. morgan does not have a lot of exposure over eastern europe and russia. its more about volatility is not price anything here at u.s. stocks. this is one of the reasons i want to look out. we will have stress tests the next two weeks, j.p. morgan will report their q1, which we know will be bad. if the i don't think is mercury, i think we have an opportunity where it's cheap. so you are bearish. >> this is near term. this is a great company firing on all cylinders. i want to take advantage of i think poor technical set upand options. i look at the april

listen, j.p. morgan does not have a lot of exposure over eastern europe and russia. it's more about the broader contacts, volatility is not pricing anything here in the u.s. stocks. i want to look at stress tests in the next two weeks and j.p. morgue isn't going to look at their q 1 qui we know is going to look bad. if the outpushing is murky, i think you have an opportunity to make bearish bets. >> so are you a bears. what is yours? >> this is a term, it's a rocky term. i think of a poor technical setup and cheap options. i look at the april 11th weekly puts. that's the morning that they report their earnings. you could buy the april 11th weekly put for the 59 put for $1.45, about 2.25% for the stock price. you break even t. downside, what i would do right here if you get one big move like we had past monday you will have a cheaper spread put on. have you the potential for geopolitical risk. >> why do you think the c-car or stress test will be a bad event for j.p. morgan? do you think that's true? that's what dan thinks. >> i think it's the potential to add volatili

big disappointment after the announcement yesterday was.git we own citigroup and j.p. morgan.hat we heard is that the fed is not happy. it is disappointing news, but at sector,as a bank in the i am not disappointed. when you start to talk about the fed raising rates, that should play into the banking sector. i would hold. >> citigroup and bank of america? >> and j.p. morgan. we hold them. >> what is the read across for you for europe? >> for europe? for bvanks? last two, all in the weeks we have seen some resurgence in terms of stocks doing well. europe is very much a story about inflation. whether deflation will take hold. for thernight rate down last two years. the inflection number is 2%, which is where the concern comes from. now we are chatting about negative deposit rates or asset buying. it is an interesting story. >> there is the problem with the banks that we -- we are not clear with regulation. 8 italian banks are preparing to of stock.lion euros would you be buying any of those? >> i am not looking at european banks. i am doing it through ebs secto rs. apart from bn

european head of strategy at j.p. morgan asset management. stay with us, we will be asking you more about some of the top x. -- of the top picks. a fixed gain in european car sit -- a big gain in european car sales. stay right here with us, we are "on the move." ♪ >> welcome back. i am francine lacqua here in london. this is "on the move" here in london. this is a stock that is definitely on the move. it is one of the biggest gainers in the last 12 months. uk's largest online only fashion retailer. the fx story playing more into these earnings, but also they basically specifically said this is because of the australian dollar and the russian ruble. moves thisre to fx stock farther down. shares are gaining even as the company reports a four-year profit. jonathan ferro has been looking at the copper crunch. does this all have to do a china? >> yeah. it has been exposed to china and the copper prices. net income, not much better, either. revenue down 11.4% margins lower , too. not brilliant, but no one expected it to be. it actually beat estimat

he is a global market strategist with j.p. morganet management and helps manage more than $1.6 trillion. we started the show off with you saying you would be very cautious in russia because we do not know what is going on. you have to be sure that the company you invest in is growing. ryan had this great interview and he was very bullish. almost too bullish. is that the sense that you got? they say the recession is not going to happen. there is always the risk. >> the thing that is appealing to me is that there is a difference between macro and micro. what you have to do as an investor is determine if the valuation -- forget about an index for a second, but an individual security, if the stock was down because something changed in their business structure or be -- or because the entire index is under pressure. investors have to differentiate between a company's specifics. he has a captive audience. half of the russian population signed up for their service. one thing we were talking about before, if you are a consumer and you come on

citigroup, j.p. morgan follow-up in the first quarter on this frigid day from the york city. good morning, "bloomberg surveillance." ♪ 20 out of 22, dow futures up 183. me, scarlet with fu, top headlines. >> japanese salaries are up for the first time in two years. 1/10 of one percent in january. it is not much, but they will take it. pentagon's proposed budget calls for 25 billion less than what was forecast a year ago. the department had to come up with budget to put in place last year. a record-setting night for , dropping 61 points , 124 to 107. rice. the heat are hated globally, but i like the way that they play. i am a big dwyane wade fan. if you have the chance to sit courtside and watched lebron big. lay, he is so >> what is the distinctive feature? >> e is a freak. he is huge and he is fast. >> he has short guy speed even though he is huge? >> with that shot, look at that. mr. jaynes is on the other end of the court putting it in. >> the motor show held in switzerland was kicked off today where the

every kind of possible allegation was being leveled at j.p. morgan. i would love to hear more about that, do you think it was sort of, the regulators sensed weakness and went after them or were they a big bank with a lot of operations that spawned problems? >> i think they made plenty of mistakes. the actions were more than justified but it did seem like there was a particular focus on them. that's how it struck me. that's how it struck a lot of people. i think that regulators and others who enforce our rules need to be mindful of the kind of signals they send if they decide to, well, we're worried about one of these guys getting in too much trouble, we'll go after the one with the deepest pockets because they can stand it, if that's how you manage your regulatory philosophy, you give disincentive to banks to be strong, which you don't want. i do think it's something that regulators as well as the justice department and others who are charged with enforcing our laws need to be mindful of. i don't quibble with any of the suits. everything -- they had g

it took a powerful banker, j.p. morgan, to end the 1907 panic. should an entire country be dependent on an individual's whim? a central bank, a lender of last resort, seemed a better solution. just before christmas of 1913, president wilson signed the federal reserve act. it created a federal reserve system. though its real operating powers resided in 12 regionalanks, its official headquarters was in washington, d.c. merritt sherman, active with the fed since 1926, describes one of its early tools to regulate banking activity-- the discount rate. that was the first tool used when the fed was created, the discount rate being the rate that is charged to member banks when they need to come in to get additional reserves. and it is raised to restrain their borrowing, lowered to encourage their borrowing. through world war i, through the roaring twenties, most bankers believed the system was safe and went about their business. then one day, it all came tumbling down. october 24, 1929, the greatest stock market crash in history marked the beginning of y

there are 20 banks including j.p. morgan and they can proceed. forhese are also benchmarks things like mortgage securities and 30 year mortgages. fight to many of these benchmarks as well. >> it impacts not only the big boys but mom and pop on main street as well. an issue on this particular lawsuit the violence could be added to it. losses from short positions on euro/yen contracts. libor euro/yen. it is complicated. there was widespread fraud in these markets. the banks have declined to comment. >> there was a story that broke here in hong kong other offices. people familiar with the matter are telling the commission havest corruption conducted a search of the office. the racks story here is that u.s. investigator authorities are looking at hiring practices at jpmorgan and potentially other banks here in asia. there is allegation here by the u.s. authorities. run afoul ase jpmorgan such increase the business. this investigation is coming in over the weekend. >> the spokesperson declining to comment. thank you. better than expected earnings from

let's get back with adrian miller, it chief market strategist at j.p. morgan. indian rupee we are seeing current accounts narrow. we're seeing strong demand for emerging market bond. we're starting to see to mystic liquidity improved in both india and indonesia. the equity markets are responding to that. we also arguably have a positive political driver. we have the nomination of to cali in indonesia. with the prospect of a change of government in india. >> the prospect of change of government is extraordinary. a lot of people are expecting reform. they're almost pricing it in. >> we think the move initially in market related to the current count stress is diminishing. now what we're beginning to see is a rotation in domestic cyclicals which i think is a better way of indicating whether people are pricing in a change of government. we think it is a very early stage. we let that not so much with the story every form. are after iss getting things done. it is the practical approach. it is reform of the current mode of operation. it is being more effective of gover

the consequences to j.p. morgan and the others that brought this?u the deserve, your investors drive your success when you are selling them ideas, no matter what. if you go too far, you are in trouble. >> buyer beware? think everyone has to look at these things based on their own knowledge and background. people who sell securities are trying to sell a concept, a business model. you have to look through it and say doesn't make sense or not? >> if you look at a ten-year average of the first-day pop on and ipo, it is around 12%. >> that is a critical point, what does that signify? >> there is excitement. look at the number of ipos that have been shrinking. there is demand issues that have to be factored in. perspective with that in place, this is not good news for the underwriter. these use of cash and all companies that have great currency to make acquisitions. about the use of cash and how they are hoarding cash. when they deploy some of it to make a $19 billion acquisition of whatsapp, they get vilified. >> you cannot keep wall street happy. when t

to think that goldman sachs and j.p. morgann these institutions are going to fund a regulator and will get meaningful oversight. >> they have a $2 billion portfolio that they invest in wall street. >> the cops on the beat or using the analogy of a wall street casino, they're the eye in the sky. they have money allocated to different tables, different parts of the market. this is just screaming with conflicts of interest. >> how do we break this chain because it does not seem that there is anyone who wants to step up to the plate and stop this. >> you need public pressure which is the reason i wrote my book. to think we will change this within the halls of congress in my opinion is ridiculous. so the stuff needs to get into the public arena. that is why appreciate you having me on to raise these issues and expose these conflicts of interest. you're talking -- >> can we get enough public pressure? >> we can. i will tell you how. you expose the real corruption and that is what is going on. none other than harry markopolis. he defi

. >> denna goldman sachs and j.p. morgan i get their initial plans approved?nd bank ofachs america. jpmorgan did fine. goldman sachs and bank of america asked the fed to return a certain amount of capital to shareholders in the fed said no, that is too much, but we will give you a mullah goal and let you have another bite of the apple. on the second attempt, they did fine. the question no one ultimately, is for shareholders to answer. the shareholders of citigroup are disappointed. take a look at the stock price. >> michael corbett is disappointed. >> michael o'neill, the chairman of the board, has to be disappointed. >> vikram and is smiling. >> i am not sure if he is smiling, but we might as well put that question to paul miller, a former federal reserve bank examiner, and he is sitting here with us right in new york city, a real privilege. characterized it for people. are we getting it right here? is this a shocker, a black eye for mr. corbett? >> he has only been there for -- >> he has not been there that long. >> but the problems go way back to 2005, 2006

as long as they can avoidas t executives going to jail, not j.p. morgane to pay billiony more in finds as long as not one of its executives

i had to go of my paper statement and convince j.p. morgan chase at the time it was bank one to let me have access to the line of credit when all the records were down. batman had a paper statement i could not done it. that is one thing. keep copies of your stockbroker statements, your bank accounts and so forth because of the whole system is down for weaker ten days for 14 days how you pay your mortgage, have you pay your bills? that's one solid individual piece of a vise. another one is keep more than two days of food in your pantry and today's of water. if the electric grid were hacked and taken down it might take a week, ten days, longer if or a serious attack. keep a little food on supply on hand. the only nation that we live in a just-in-time society. the only nation in the world that does not have access to food or water beyond just adair to the of the pops stop working. i'm not talking about being crazy in moving into the basement of the problem. by the way, it's less and less crazy all the time, but i'm not talking about that. attack

at the j.p. morgan morgan private bank, we quantified the benefits of estate planning.y that just uses four basic strategies can increase the wealth they give to their families by 22% or setting your investment by the portfolio would have to outperform the benchmark for 25 years just to keep up with the families that get the basic estate planning. >> you can increase the amount of money that is available for you and your family if you follow some guidelines? you don't have to worry about whether the market goes up or down. this is do the paperwork, spend the time, you will be rewarded later on. one is you have to organize and understand what your assets are. >> know when your assets and how they will be taxed is really important. people have financial assets, they have mutual funds, they have a home. there are certain assets that are surprises and i would like people to be aware of two assets that are taxed in a way they don't expect. one is life insurance. when you have a life insurance policy, you have the beneficiary. the beneficiary receives that money and everyone

yet another banker jumps from a j.p. morganheadquarters building at this time in hong kong on february nineteenth a trader at birth. grew up in manhattan threw himself in front of the long island railroad train on march eleventh and now kenneth blondel makes eight and there's also been a handful of other financial professionals whose deaths this year have been very mysterious and haven't technically been ruled a suicide yet but all the hallmarks and now conspiracy theories trying to tie them all together are blowing up on line but i don't think there's anything mysterious going on here i saw it coming sixty years ago it's not that i'm some especially pression fortune teller i was just stating the obvious the current path of these bankers greed high stakes gambling and the knowledge that they were screwing their neighbors would also really be too hard to live with for any human so now it's time for another prediction of the obvious that the financial system still continues to be built of smoke and mirrors and greed and it's comp

as long as they can avoidas t executives going to jail, not j.p. morgane to pay billiony more in finds as long as not one of its executives hav has to war for dignity of a perp weak.and p >perp walk. t >> and not the president, and not hillary clinton, regrets those deaths in benghazi butinto said what difference does iteo make, now trying to find out what happened, not chris christie, who said this how chrh woulwholebuck stops with him inw jersey but he had it, not thel t irs that regrets some rogue agency targeting conservative groups but has yet togents investigate why they did.te retail ceos who blame weather for a bad quarter but never credit the sun for a good one, and republicans who blame cre democrats for spending like crazy but drop the ball everyme time they had a clan to stophach them, and democrats, blaming republicans for blocking more money for infrastructure buty fr refuse to account for tens of millions -- billions that tax inyers have already paid them for. and fat people who sue ph-pbgds because themcdonald's because te fat. and stupid

nine hundred ninety nine long known as the graham reilly act that's where it all started goldman j.p. morgan morgan stanley and other wall street giants have started gobbling up commodities everywhere copper gold ten nickel you name it and i can promise you this they control it and what's worse they also control the businesses needed to ship needed to transport and store those commodities for all the talk politicians in washington make about cracking down on corruption they've allowed a giant cartel to form right under their noses and you and me and all americans are paying for that cartel joining me now for more on this is peter moos a one of the fine lawyers and law and i'm going to tell you this peter glass steagall was paid you know it paid the price of glass steagall when we lost it it was put in place because of the u.s. saw decades of wall street banks devising so many ways to put our economy at risk that america arguably would have been in a perpetual state of depression what's your take on what you're saying with this new new commodities scam to tell you what pappa a the act that wa

j.p. morgan's balance remember lehman brothers famously did the repo one hundred five scandal where they took the debts and they put it next door to the bank they didn't tell the regulators about the regulators would leave they put it back in the lehman books well that's right and it was fraud because they pretended to sell it to someone else but to believe they were still responsible for citigroup all of those off balance sheet vehicles came rolling back when the investors didn't want them anymore and suddenly they had to put capital into neat them right so that was the definition of the fraud is that they were what the definition between a sale was not a sale was so the house or go into the minutia of the details it's a republic that's right and it's not really a cell but it's maybe it's. well this guy's maybe holding in the collateral right there where we talk about this in our book we get into the ancient in a season so this louis brandeis the great supreme court justice who really define this and in the mid one nine hundred twenty s. nobody thinks about this anymore but we're going to ta

this guy has one thousand three hundred twenty eight perfect trading days when goldman sachs and j.p. morgan had perfect trading quarter after trading quarter after trading quarter where is the mockery their markets are supposed to be so predictable the ever these guys who have. one hundred percent pure perfect trading days and i think the comparison to condemn own is a good one and that if you look at the news from there you see the people are involved in a psychopathic cult worship of a psychopath and they're in the street crying oh we love you we love you here in america you got beneath the goombah he's stealing billions and people on the street we love you we will be love you can jungle i mean when you google and it's the same kind of cold in north korea they worship hatred of america and wall street they worship a sure of democracy hatred of the common person hatred of egalitarianism hatred of fair markets hatred of free markets so vinnie he's a hate monger and he's made a billion dollars promoting hate and as than kim jong un is a good example you know when the. you know when the fly h

detroit would you have been worried about interest rates rising no no especially near a banker j.p. morgan or christmas or merrill lynch and you know that the fed is engineering the lower interest rates that's right how can you and in any sane person sell ahead. against higher rates well that's exactly right near school districts in cities and towns all of whom have been victimized in this way so was ben bernanke any doubt down here yet mark carney bank of england well it is it isn't my speaking you know you know hyperbolically if i say that they are also involved in this fraud you know they're doing what they're supposed to do which is print money to make up for the stupid things that the private sector do it early should that be communicated these people that they're buying into fraudulent products the fed does have a responsibility here because if you put on their other hat as a supervisor of big banks the question is do you want your big banks to take the reputational risk of getting involved in transactions that are clearly fraudulent and where they could be subject to attack by for e

say j.p. morgan gets special exemptions to do special tricks around commodities trading.tion i have is an easy one. you know, why do they get these special loopholes? if you have this administration come in after bush and say we are going to be tougher, wouldn't that be an easy place into the year of executive action for barack obama than an easy place to start? >> that would be an easy place to start. you go back to washington and the title of the book is "seven sins of wall street." i have a lot of -- find a lot of fault with washington. if the federal reserve which is supposed to be looking after the big banks or supervising them, they really -- practical reserve has let the big banks get away with whatever they wanted to do in the last few years. that's where you should start. that's where you should look. >> it is a great book. really every citizen should read it and be outraged by what is going on. thank you so much. >> thanks. >> up next, i told you so. did you hear who got the last number one seed? i have one word for you. we have our brock et cetera filled out an

a life estate is a jam we've got we're still on the board of the new york fed as well as our in j.p. morgan no he's not he was he was but they well he was set up that way it was set up to be an appendage of the banks and a conflict i think yes thanks so much so ok so puerto rico is part of that system and potentially they're sitting on a lot of. crap that's going to blow up well they don't have enough income to service or debt that's the simple. way of looking because i can't because in them out again referring to my days on wall street you know actually bonds the people that's right and they're rated by moody's and fitch and they get double their aaa and that the interest rates are commensurate with the rating and one of the bonds municipal bonds people would buy as a puerto rico will be six percent or as you know you whatever and so a lot of retail people out of retail brokers of the real retail market buying these tax free or tax advantaged puerto rico bonds as a result this island of puerto rico has a huge amount of debt now right they do much like the united states they have been putti

. >> 3d printing, upgraded over at j.p. morgan. >> one of these toxic areas, scott. today's a great example. upgrade has the stock moving slightly to the upside. i think you stay away. i know josh had gotten more bearish after a nice run in these 3d printers. i don't think it's time to jump into these names. i think the stock's pulled back a little bit, but a 125 target is probably a little rich right now. >> i'm with pete on that. i agree with him. stratus has slowly emerged to be the best name in the group, better than 3d. a lot has to do with their visibility. >> you thought 3d was the best in the world. >> both have done well. this one owns makerbot, which is the consumer name most people are familiar with that are into this kind of thing. but i agree with pete really bad reaction to a very positive call. i would avoid it. >> scott, that will be a competitive area soon, i think. hewlett packard's going to jump in there. look at cisco, whomever, intel getting into the mobile space, a lot of these names late to the party doesn't mean they can't be a part of it. i t

look at j.p. morgan hitting highs, we've seen certain hitting highs -- what are the favorite sectors you see right now based upon what you're looking at? because you're talking about taking off some of that risk. >> so we're still focused on the same sectors, financial, technologies and industrials. but let me talk about the -- >> not energy. >> energy's an interesting long-term fundamental story because it has the potential to be one of the most important drivers of economic growth here in this country, job growth in this country. so that's kind of separate. neutral in the near-term, but a long-term very solid fundamental story. and i think a lot of the discussion has been around rolling out of momentum names. and is that the end of this run? >> right. >> and i think it might be the end of the run there. but we saw when markets bottomed, defensives did really well first, right? then we went into the momentum names as economic growth looked like it was going to pick up. and now i think you're going to se

the globalwitz, strategist at j.p. morgan asset management.e will have more on the rare earth elements trading that drives the high-tech world. more on that when we come back. >> welcome back, i am an edwards. for more coverage, check out our video channel. with get back to john. -- raret china eyes earth exchange in china begin trading. they are the components driving many of today's technologies. from smart phones to car batteries. aircraft,o industry, the industry goes on. i won't try to name any of these elements. i will tell you they are very important. rare not in terms of supply, sensen the -- rare in the it is difficult to find them and concentrated mass. 90% of the production comes from one place -- china. you can see how important manufacturing is on these elements. they are bringing them to the exchange, like you can buy copper on the london exchange. it will be in mongolia and begins trading today. >> is the first time you were able to buy it on exchange? >> what is crucial is they are trying to bring a little free market disciplin

equity strategist at j.p. morganis call is he sees global growth stabilizing, thereby his call on the s&p is that it will game by double digits before year-end. let's start with you on that. you are and have been for quite some time a pretty big bowl on the markets. what gives you the confidence? >> when we look at what really matters for the next few years, it will be corporate balance sheets. companies have a lot of cash. they have been cautious. needlessly cautious. it results in a situation where stock has to be replaced. we have a cap spend cycle coming. when i look at consumers, hugely important to the economy, record well from all the appreciation of stocks and housing. doneeleveraging cycle is and banks are finally beginning to use lending standards, which have been unusually restrictive for the last 10 years. tells you they are starting to ease? >> we can see it in measured data. if you look at data from fannie and freddie, leicester, the average score for an approval loan was down 13 points. fromwhere its a

j.p. morgan's corporate and investment bank.ing up, if you want to buy lingerie but hate going to the story, there is an app for that. join me next -- then, it is a battle of brains versus the leaders. we will meet a cellular -- a sailor planning to be the wealthiest sailors using only his education. quite a race. stay in the loop. ♪ >> a manziel awkward shopping for his life and department stores. where'd you turn if you are a woman who hates to get measured and shopping for intimate apparel? she found the answer. she took her experience for her husband. an app that allows women to try --s at home and lingerie most brands do not even offer a rate this -- this range of sizes, including half sizes. heidi joins me now. good morning. a fascinating story. the biggest standout to me is i take a picture of my iphone, of myself in a mere in a tank top, and you can tell me what broadsides i am. how could you possibly do that? class computer vision algorithms. the iphone itself is a standard unit of measure. what our technology is able t

a settlement, on the one hand, but also the capital return from bank of america and j.p. morgani want to go back to brad stone in san francisco. we were talking about oculus, the $2 billion being spent on this virtual-reality company. you tested this out and had to sit down while you did it because it was not known whether you might have a reaction? >> historically the problem with virtual reality is that when you are doing one thing in the real world and another in the virtual world, you get disoriented. previous systems, nintendo had one in the 1990's that really gave me a headache. people actually got sick. that has been a big technical challenge for oculus. they think they have solved it, but when doing these demos in the spaceship game, you sit down in real life and the cockpit. had something called project morpheus that they demonstrated last week, where you are standing up in the real world and they show a shark tank simulation where you stand up in the real world. there are all sorts of cases where there might be a discrepancy and we will see if some people really have a

partnership with american airlines, ending the reciprocal frequent flyer program. , -- aep an eye on jdl j.p. morganference early this morning. >> we are back with jeff blau. he was on our program about a year ago talking about a battle he is waging against a father-son team that runs that ownsth reit, office properties around the world. that fight is moving toward a resolution with a shareholder vote slated or 10 days from now to oust the board of trustees. billionaire sam zell joined in this fight with jeff and will take over as chairman if the vote is successful. jeff blau back with us. like success. the stock, for instance, has gone up quite a bit since he entered the fray. >> remember, we got involved about a year ago. >> you talk about it on our program. >> the very first week. you asked back then whether we suddenly became activist shareholders. the answer is, no. this is not really something we do but what we saw as an opportunity. we saw undervalued real estate within a corporate structure that did not make any sense to us. we started buying stock about about 27d today it is $.50 and really

years,e past five goldman sachs, j.p. morgan, they have dominated the top spots.pmorgan was earning the most, driven a lot by their bond underwriting deals. and you saw goldman sachs and morgan stanley -- those three have really dominated. they all have strong mergers and acquisitions businesses, and for jpmorgan, they have strong bond underwriting. the secret to is getting these deals for a bank like yours? >> first, let's respond a little bit. financial sponsors, which is a better term than private equity, financial sponsors have been very active for a long time, including in the past year. more of the activity has been on the sell side because prices have been high, and they have been selling, as leon black said, everything that was not nailed down, and very successfully so. they have done well in that regard. they have been active. the converse of that is with prices high it is difficult on the buy side, and you have not seen a lot of buy side activity by historical standards by the financial sponsors, and i think it will continue to be spotty this year in tha

we saw this last year with goldman sachs and j.p. morgan.bviously, we are further down the line and everybody is hoping people are used to this process. invest a citi had to number of its japanese assets several years ago. what comes next? >> it is difficult to say. i think they're still running down the non-core business. i don't think there's anything that sticks out that they said they don't want, but i think there'll be a reassessment as racing in so many banks across the globe who thought they got to the shape they wanted to be in. a lot of them are being hurt, citi included, are the much lower making investment. -- banking investment. >> i think this goes to the heart --larry kantor with us as well. larry, you are knee deep in this. is this -- is his solution or rbs or hsbc, they just have to go hire more people to help with these processes? >> just to be clear, what they mean by internal processes, from what i can see, the banks have some leeway here in terms of how they conduct the test. the fed set certain parameters and says extrem

and j.p. morgan and silver price manipulation here in london correct not here in london so that's a u.s. based investigation which which nothing ever happened with. but london by market association has gone through a pretty close scrutiny through the andrew maguire reveals etc what's the status on that and i didn't know had there was any scrutiny so i think the point is that there hasn't been any scrutiny and that feeds into that second layer of this subject so one is about the day to day profiteering to do the fix which is what the focus is on at the moment but. the but the biggest story is the point which i think is really interesting is that it just appears to me that what's going on with the fix and the investigation into it might be something truly remarkable which is that the european parliament and the european legislative branch for once and time unintentionally is doing something to benefit the average person in the free market and the reason i say that is because there are there are princip

j.p. morgan so basically they got rid of forward guidance they did it here as well and well forward quantitative guidance they've now adopted a new term of qualitative guidance so they have i mean stocks take dive after fed moves so investors were trying to come to grips with this new phrase of qualitative guidance what was it means and the fed did away with its prior guidance which was quantitative threshold based on the nation's jobless rate the fed had been using a six point five percent unemployment rate as its threshold to start the process or at least kick off the debate about raising rates however with the jobless rate at six point seven percent and the rate itself as a flawed measure of the actual health of the job market the fed opted to phase out the numerical threshold so it's called qualitative guidance. well the markets are addicted to cheap money and you know the fed under tillett of greenspan bernanke they would rate lower interest rates in response to various crises and they have

j.p. morgan correct and others they're saying they don't have the gall to say they have x. x. x.they don't have the gold on the central bank certainly don't have the gold they said they supposed thirty thousand pounds i don't think they have off even less i mean every everybody in the gold market knows that the fed has not had an audit since eisenhower's days of their gold and it's in asia. it's in asia because what happened especially when gold fell last year which is i'm sure you've been through this before when gold fell last year this is manipulated the fall of the gold price so that the bullion banks could fill up their holes what happened instead is that because normally everything that wm banks when they've bought buy and sell the gold stays with them the bond the seller is will those with them central banks you know the a.t.f. that cetera as it happened now all. the chinese bought all the goal of actually it became available and russia and russia let me have this quick political front it seems like on the geo political equation you've got now russia china are kind of sign