but j.p. morganchase is the most powerful bank in the world and in the united states so the fact that winthrop coverage pushed the bank to be split up in the 30s because i' on the one hand you want to take over his competitors had sort of be the guide and have the banks that did that and have the government backing. but it worked. j.p. morgan chase exists today. they were out of doing food drives and raise money in congress after world war ii to help the chinese that were impoverished and so forth, said there was a different mentality of what you could do for the country as well as balancing what you want them to do in terms of your own power. it's nothing remotely like that. you can't imagine jamie diamond running the food drives to help anyone. so it is a different form of patriotism versus nonexisting now. and als also but not demanded fm the presidency. then there was this idea of high will do this for you and all of you do this for me this will be good for the country. and now there isn't even a

and j.p. morgan said you know, you need to do this somewhere someone privately only after nelson aldrich was hit by a car on madison avenue. he was in new york and discussing things with bankers. his son did in new york as well, and he got hit on 60th street by this madison ave. horse. he didn't plan to have a big meeting at his estate in rhode island, but now he's in new york and he's with bankers and morgan has a club membership at the jekyll island club off the coast of georgia and really sponsored, which is something i found out when i went, they sponsored this again to work at the secrecy to bash out this idea of the fed. now the sort of cloak and dagger stuff i think is a little bit exaggerated. i mean it wasn't like you have paparazzi sort of flying in them. and it is generally at the time it was off of coast. you couldn't really get their. they would come in to make sure they couldn't even dock near the island. so that is really the plan. and at the end of them bashing out of this plan he's g

j.p. morgan chase is investing more than $100 million in the struggling motor city, struggling with $18 billion in unfunded debt. scott cohen has more. >> reporter: there is no question detroit needs the money, the largest u.s. city ever to declare bankruptcy, riddled with blight and even basic services. >> we want to see detroit do well, that is why we're here. >> reporter: chase will invest $100 million over five years, removing blight, funding community development loans, small businesses and worker training, even helping pay for a new light rail line. detroit may be bankrupt but for the first time in decades there may be cause for optimism. slowly but surely, officials have put together what is being called a grand bargain, more than $800 million from private foundations, individual contributions and the state of michigan to shore up the city's plan and art investment. j.p. morgan is on top of that. 100 milli$100 million is a tiny that brought in billions last year, it is roughly equivalent t

c,ench credit agricole, hsb and j.p. morgan chase.he european commission charges them with rigging a key benchmark known as eurobor. the rate is used to set interest rates on financial products worth trillions of euros, including car loans and mortgages. the commission says the lenders have to answer allegations they colluded to boost trading products -- profits. >> if confirmed, such behavior would be a breach of our antitrust rules that prohibit cartels. we would look at all the arguments before taking any final decision. hsbc say they and will defend themselves vigorously against charges. agricole says it wants to take a closer look before they decide what to do next. if found guilty, they could face fines of up to 10% of annual revenue. it is a story to watch. another story we have been watching for you. russia has failed to reach an agreement on tuesday that would see it supply gas to china. there were question hopes of reaching a deal during a visit by president putin to shanghai, but a spokesman for the prime minister says ther

and shares of aruba reporting estimates topping consensus, analysts at j.p. morganaid the gross margins were below estimates and the firm reiterated its underweight rating on that stock. aruba down to $17.89. >>> shares of ctc therapeutic fell after they recommended the conditional marketing of the md disease. that lets people with the disease get treatment, the stock surged to $23.30. >>> and google reporting a deal to buy sky box imaging for a million, sky box specializes in recording landscape pictures and video. shares of google were up to 563.80. >>> and our market expecting noise and volatility. he is don wardell. good to have you with us, you expect volatility to pick up? it has been very, very low over the last month? >> well, i guess the important thing to know, like you said, fundamentals will get you from point a to b. there are always going to be bumps in the road like we experienced in the past few months with the polar vortex, and striking fear with mark participants. >> you have a couple of stocks you believe will do well that you just described. you

j.p. morganave a similar warning as banks continued to struggle with low volatility. >>> and last month, the bank disclosed a calculation error that forced bank of america to suspend its stock buyback and dividends. the error left the bank with $4 billion less in capital than previously thought. the revised plan is smaller than the original, and the fed has 75 days to review it. >> federal officials reviewing the taper of the monetary stimulus necessary, what is less clear is exactly how the central bank will decide to control interest rates when the time is right to let them rise. steve liesman takes a look at the fed's exit strategy and the tools available to policymakers. >> let's take a look inside the federal reserve's tool box it will use to regulate interest rates, the main tool, the fed fund rate is not doing to work. during the easing the fed bought all the security and put all the cash out into the system. in order to control interest rates the fed has to control the amount of money in

. >> j.p. morgan chase was another blue chip decliner today shares fell 2.5% after a late friday regulatory firing and the bond and stock trading revenue to drop 20%. the bank won preliminary approval from a federal judge to settle claims for $280 million over misleading investors about the the risks of billions of dollars worth of mortgage-backed securities that later went bad. >> despite that deal the justice department announced it's pursuing a criminal investigation into some of the world's biggest banks for their roles in the financial crisis saying no bank is too big to jail. in a video release, attorney general eric holder says he's personally monitoring ongoing investigations into big financial institutions and he's resolved to see those probes through. >> there is no such thing as too big to jail. some have used that phrase to describe the theory that certain financial institutions, even if they engage in criminal misconduct should be considered immune from prosecution due to their sheer size

j.p. morgan asset management joined us and she sounded up -- she summed it up. >> the bank of england may well be the first major central bank to raise interest rates. >> joining us now for his take is the global head of equity trading strategy over at citigroup. stephanie was saying the whole world will be looking at what carney does. we are on a divergent path in terms of where central banks are. how important is today? it should be important. he started by talking about -- today will be a good opportunity for him to backtrack from that a little bit. he is putting it on the table to make the market more comfortable with it. but look att avoid dollar-sterling and euros-sterling. they are racing ahead. it is what threatens the bank of england the most. .> the market needs to price in floating.ns have been >> that is quite aggressive. >> at the same time, we have to keep in mind is the reason they can do that is because things are doing better. the u.s. did not put a date on right increases. just

they partnered with big banks, particularly j.p. morgan chase and -- well, blackstone and jp morgan chase partnered and the northwestern homes for rent partnered with goldman and they issued a new security called the rental back secured. not going to get into the whole security issue but if you remember mortgage backed securities that was the process of bundling mortgages, selling them off to investors around the world. some of those mortgages being good mortgages, some of them mortgages being total toxic junk mortgages. when families started defaulting on their papers because these were utterly unpayable loops, well, that's when the whole system collapsed. now we have a new financial product called the rental backed security but rather than secure tieing the entire mortgage on your home, they're essentially using the rental stream, paid by rent can families to pay back the bond. and there's a lot of debate right now happening about this process. so what i wanted to drill it down to, stick to my promise this won't be a financial talk. want

global market strategist at j.p. morgan. his call involves the fed.ed will disappear from the market later this year. what do you mean by that? if you have been listening to janet yellen and ben bernanke, these asset purchases are not going to last forever. yesterday, when yellen was interviewed, she made it clear that the pace of economic growth is improving. things are getting better. that warrants into doing tapering. i suspect they will be done with asset purchases by the end of this year. >> do you expect interest rates will rise? >> interest rates are on a gradual path higher. the first few months of the year surprised everyone. we had disappointing data and geopolitical risks. i do actually think interest rates are going to keep moving higher. once they are done with these purchases is a matter of time before they start -- before they start tightening monetary policy. been lookingn has at how long-term bond yields have been doing. we havee pointed out, seen the geopolitical risk push yields down and down and down, particularly on a longer end.

i am joined by david kelly of j.p. morgan funds and mike mckee.our sense of the health of u.s. markets? far the u.s. market has been in a holding pattern. that is partly because of confusion about the bond market. it is also because of bad economic data and the first quarter. the economy is definitely strengthening. holding patterns do not last forever so you would still be a little overweight equities and underweight fixed income. >> why is the bond market rallying? >> it is a broken signal, like a busted tail light. this is not about geopolitical worries because the vix is low. it is not about inflation worries, people expect inflation. it is not about the economy. and remember when you look at in terms of high-frequency, housing, autos, the economy is picking up. it is a mismatch between the bond market supply and demand. issuing $500 billion worth of treasury last year compared to one $.5 trillion of treasuries two years ago. more than half the treasuries are owned by central banks here and abroad. there are a lot of pension funds buying bonds

david leibovitz is a global market strategist for j.p. morgan asset management which oversees $1.5 trillion in assets. what are you doing with your one and a half trillion at the moment? >> i think there's a lot of uncertainty in the market right now. that is why we haven't seen a market go anywhere so far this year. when you consider opportunities for long-term investors, we like emerging markets. the have become extremely cheap over the past couple of months. we think over the next few months we may see the next opportunity present itself in the debt market. >> we have seen so much merger and acquisition activity, would you read into that that shareholders don't see this as value creating activity, and not something that is going to give the global economy a leg up? how you interpret a lack of reaction? >> at think with respect to m&a, we have not seen a lack of reaction. companies involved in these transactions action outperform the s&p 500. we want to see actual value creation rather than just doing it because everyone else is doing it. >> a

actually we came out of the financial crisis and we have banks that are too big or to fail i mean j.p. morganown as you know washington mutual now which was the largest bank in california and they own you know bear stearns and so j.p. morgan for instance has become this monstrous an itty that now we truly is way too big to fail it's impossible to lead an entity like j.p. morgan fail what should the u.s. government of done with say citigroup bank of america and all the other big guys in two thousand and two thousand and one you think what's the alternative. yeah it's really tricky i mean it's hard to go back and criticize a lot of what was done because i think that a lot of it has turned out a lot more successfully than people probably thought but i think that there's still some skepticism of how good this is over the long term and and i think that when we look back at the crisis i still think there's an argument to be made that the government could have come in with some guarantees in for instance the deposit system and allowed some of these other entities to fail rather than you know rolling

if that j.p. morgan you hear about this. here is the thing. i believe she is underpaid because of the conditions given to her. she will not get $68 million upfront. neil: but more than half is stipulated just for her to stay there not to be the numbers but just breathing. >> it is not up front but over the of course, over the years that she is there. if you paid me $60 million you know, what i would do for this network? you would see me on leashed. [laughter] [laughter] she is very good. >> but this is more your speed what about $15 an hour it would boost the price of real-estate it is up to the hilt but come on. the city council must be economics people. once you start raising minimum wage they don't realize there is people who was out of work only because of the goods and services. neil: they love it to. >> economics 101 raise the minimum wage more people are out of work to. >> if the industry wants to pay you what you are worth that is what the industry should do. fiasco me to hire someone to pay them $15 an hour i should hire someone with

j.p. morgan which i can't believe will have its hornldous a quarter as last time.l be no cheering here. u.s. bank corps and wells fargo, the bank the best exposure. i don't want to split hairs. the whole group is so cheap that a sector could rally 5 to 10% from here and still be inexpensive. stick with cramer. k with cramer. ♪ do you know what this means? the greater the curvature, the bigger the difference. [sci-fi tractor beam sound] ...sucked me right in... it's beautiful. gotta admit one thing... ...can't beat the view. ♪ introducing the world's first curved ultra high definition television from samsung. >>> when sales force record and went down and then up, that was the signal. check out workday. there is always a bull market somewhere. i'm jim cramer and i will see you tomorrow! flying high with jack utsick. this former pilot's living a $300-million dream. he's one of the top concert promoters in the world. >> jack utsick presents the rolling stones, jack utsick presents madonna, jack utsick presents elton john. it looked legitimate. it looked profitable. >>

like the j.p. morgan or the bank of america bond portfolio.he demons of the past haunt the banks for more than we realize and when you read stress test you might want to thank him for recognizing that someone this h to cheek the greed or at least grade it or flaunt the institutions that don't get that the world has changed. the whole sector is held back thanks to thor e er rrors of th players. >> coming up. >> gluten free food. >> you heard about gluten-free diets. is this fad just a flash in the pan? tonight cramer talks with one of the biggest brand bess hind the craze to see if you can make bread. we're moving our company to new york state. the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next busi

j.p. morgan's clients god investigation showed up that has many of j.p. morgan clients benefited from blais operations in palestine where he was effectively lobbying for oil and gas interests ok you mentioned that the mainstream media gave him somewhat positive review but this this is the behind what i call the c.n.n. curtain where those who are benefiting from this will listen to that and it'll validate their actions but the other that's majority of the globe now realizes that if you see tony blair enter your neighborhood you know what's the express and friends about the buddha i don't want to say it on that either so it would be cut but i would say look it up i want to see the buddha on the road just substitute if you see tony blair on the road you know what i'm getting at ok now what is this phrase that you have in a recent piece capitalisms unspoken holocaust. what is it well i mean i mention this in the piece about sony play which is you know he kind of a he kind of gives forth this this in this idea of this global economy which of capitalism which ha

and goldman sachs has been a top performer in the dow jones industrial average today and we saw j.p. morgan doing well all the financials are doing on the question is whether or not this is bottomed out because it really has as a group under performed. we have seen new highs on the dow jones industrial average and other averages-- industries however not seen that financials carried many of them are still in negative territory. what we need for a rally to continue is for that financials to continue to participate. liz: tom riley, another dollar added, another dollar and 58 cents added to crude oil prices. let's talk about inventory number three in let's talk about what we see charging this market with a lot of electricity. >> we were trading about 11 last week and now 105 this week. we are almost there and i think we will get there by friday to read i think with a long weekend coming up i thank you will see with no one wanting to go home short of this we can. we had inventories that were bullish for the price of oil and i think it will continue to see us rally through probably the next three

gerri: you may be owed money some of the biggest banks like j.p. morgan a wells fargo are messing up on payouts with mortgages. the average size of the settlement check to homeowners over the botched mortgages is a hundred $57.51. but told% have not even been cashed could you be in line with the money? editor of the national review, a good to see you. where does this money come from? >> it is such a mess there are other words you could use but the banks were supposed to go back to figure out how many mortgages they've messed up with inappropriate these are not modifying when they should have. that process is taking so long it is so complicated the banks and the federal government said forget it said they agreed to a payout of $10 billion and 4 billion to go to homeowners that were somehow mistreated but they don't know who specifically they are. gerri: they do know the properties through the loans were for but the lack of information is deadening with no surprise giving many is nearly impossible. what would you feed you thank you are owed money? >> if the

you bank is one of the biggest derivatives wielding banks in the world second probably only to j.p. morgan they are insolvent it's not a liquidity issue it's an insolvency issue and the only way they can keep the zombie banks afloat and to keep eric pickles waddling around saying this stupid is fricken think of any politician or twenty fourteen i mean that's something to say the stupidest thing about a politician in twenty fourteen that includes cameron i was born for raj nick clegg and eric pickles you win the award you won the big golden. ring award so here's a quote from the article which shows you also that these the so-called masters of our financial universe are way dumber than those in guyana who just refuse to pay any attention to these pastors equals the demand for bit a time says that many of wall street's highest profile brokers and investors see him as holding rare insight and how the fed will react in months and years that shows management are rare in science and in the case of the manson murders up there in the hollywood hills just ask roman polanski roman poet you know they'

has the second biggest the biggest there ever is book in the world second only way bigger than j.p. morgan but it's shape you know it's a bank if you look at the balance sheet would you walk away saying hey this bank is insolvent or b. this bank is not insolvent the problem is comes down to mark to market versus mark to modify a modern art if it is an insolvent i wouldn't buy the stock i would be short the stock if i were to take a position if you are in the market the liability is on doing your practice balance and you'd find a bank that's insolvent so why are we absolutely would but that's not what j.p. morgan same thing that's the problem with the regulators the regulators have to go in they can't mark to fantasy anymore they've got to say we're going to mark to market and that's what mark carney could do he could be a revolutionary and say look we're not going to accept this anymore but they're going to come up with some ridiculous stress test with a bar that's about this high off the ground and what are they going to accomplish i mean it's the same thing that the e.c.b. accomplished w

j.p. morgan bank and then a few years later when they ran out of suckers they introduced in the t.p. pay to go to countries around asia and say look. as part of doing trade with you we're going to protect you against the you know china down the the enemy and yesterday was the good guys you get but you had to quit pro quo is you've got to take all of our terrible derivatives if you go take all the hollywood movies and owners copyright laws that go against free speech and go against the constitution and that's that's the deal and because in no way are we ever going to reform the banks from ever staying within their means and doing business in a way that's not outside of all known practices good practices as a relates to banking because the banks have a gun to read i'm appeasing the banks i'm an idiot i'm barack obama join me in my quest to be irrelevant well this is what yes that's what i'm saying is that they're stoking war between japan and china and or so that the u.s. says to pan you won't sign

these things and then the regulars are supposed to check these things and tell us somehow that j.p. morganchase at the time when maybe other companies would go down as well would go down through bankruptcy without harming us and what they submitted to the answer is there is no way in the world that is what happened so they would say yo see read my lo more bailout. >> in other words if you let them drive 90 miles per hour, so the point is not all of these regulations are effectively useful. there are things to do and they are not that complicated. >> the dodd frank act is the bullshit. it's true. you can drive through anything despite every complaint that's coming from the banking system and the millions of the lobbyists and lawyers and people that are expounding upon it. >> i read that and it is literally like six pages of exceptions. it's ridiculous. and of the living well. after world war ii and after the period before that when he went off the gold standard something the bankers wanted at the time because of the reform that divided the regulation from the deposits whenever it is easier

j.p. morgan reportedly been arrested in hong kong by the territory's anti-corruption agency. bang bang, left the bank in march. he has been the focus of a u.s. banking operation whether they violated the u.s. foreign corrupt practices act. >> i'm surprised that would be a criminal violation in thoin. whatever this is, it would be a civil violation in the united states. you wouldn't go to jail for this? >> although, the new leadership in china has been very, very, trying to really root out. >> in chicago you become mayor. >> then governor. >> no question. >> then you'd go to jail. >> fortunately or unfortunately for him, the e-mails he wrote are the ugliest of all the stuff. it's the worst formula. >> the worst one is the ceo of everbright, wants his kid to be hired. he says, we should hire this kid. it will help us get the business. that's basically. >> mayor daily said once if you can't help your kid, who can you help? >> yeah. >> that was the first one. >> the real mayor daily. >> family first.

balance it you'd find a bank that's insolvent so why are we absolutely would but that's not what j.p. morgan sampling rate that's the problem with the regulators the regulators have to go in they can't go out mark to fantasy anymore they've got to say we're going to mark to market and that's what mark carney could do he could be a revolutionary and say look we're not going to accept this anymore but they're going to come up with some ridiculous stress test with a bar that's about this high off the ground and what are they going to accomplish i mean it's the same thing that the e.c.b. accomplish with their stress test when they came out with it in europe and dexia went bankrupt after passing their two weeks after passing their stress test what lessons were learned is what i want to ask from the credit crisis we're back to where we were only the debt is worse and it's much bigger and this is higher only this time it's different but it's not different in the way that people think the way that is different is the banks have run out of bullets and now all they do is tall they are going about doin

we have seen this happen with deutsche bank, goldman sachs, j.p. morgan. the easter neither admit nor deny. now they are forcing the admission. if it hurts them for couple of what maybe, but after -- is jpmorgan up to, almost $20 billion in fines? it hasn't hurt them. going forward, this will be very quickly forgotten. wall street people are notorious for remembering almost nothing. >> you have to remember the nature of the crime, and for the , anstor class, by and large institution that maybe went over the line in saving taxes is not considered to be a hanging offense. -- aay disagree with that crime is a crime is a crime -- >> but it is a different crime from hsbc, which was the bank of choice for terrorists and drug lords. >> what does this mean for bnp paribas and the potential settlement? >> you have to look at it individually. you also have percolating with that the issue of the french government, and we have heard rumblings that it has gotten involved in the process and say that we will make sure our institutions get fairly. same has been true when

cases of fraud there will be a situation some person that purports to be the vice vie presidents of j.p. morgan chase or wells fargo in fact it's always like a 23-year-old kid that they just hired that was given this title and he says i attest that i have had personal knowledge of this loan from the beginning. they file the affidavit to the court and in reality that kid a sign of thousand of those documents that day and he doesn't have any personal knowledge of anything, that's fraud but nobody ever does anything about that. it's kind of like the movie the untouchables where sean connery says it's not like we don't know where that liquor is. it's just the question of whether we are going to arrest the people for bringing it in or not and he goes into the office arrests then. restitution and street cases is almost 100%. again, not to go on about the welfare thing but if you get caught for welfare fraud and it's an 800-dollar case you will pay $800 minimum. that's how much the restitution is going to be. i had one man under the california three strikes provision he was sentenced to life in jail f

j.p. morgan jamie dimon has a warning for companies like a spokane google who want to get into the online banking and moneys ending services. jamie dimon says there is no way google wants to be a regulated bank like mine. google already has laws while facebook is seeking regular all --l by let's use users store and exchange money on its site. according to eric holder, there is no such thing as too big to jail. in a videonts came yesterday pushing back against the theory that certain financial institutions, even if conduct,ge in criminal are immune from prosecution given their size and influence on the economy. banks have been able to avoid prosecution by paying large fines. that approach seems likely to change with the comments. sam has more. years sinceen six the financial crisis and a lot of people wonder why no bank has been brought up on any criminal charges. this is a tricky thing. if the government were to label --ajor financials to soon financial institution as a criminal enterprise, it wo

j.p. morgan chase and morgan stanley to a lesser degree. bank of america to a lesser degree.merican banks rarely better positioned. >> is this. call to senator shelby being out on the white house friday like moment?ember that we have the courage to do this. we clear the markets. >> i am not sure. the truth is, by relating the banks, by pouring the capital we'vehe banks quickly benefited our banks. no question getting around that. whether that benefits the american people or something else. >> why our regulator still convinced raising capital is the best way to shield the bank from financial stocks? , awhen asset values decrease two percent decrease in the asset value wiped out equity count. by having more equity, it will take a bigger decrease in the asset value to wipe it out. i personally do not think it matters much. it should be more about accountability for your actions. make sure you have skin in the game for what you do. >> apple could buy deutsche bank. bank's.al deutsche you do not like the banks. why is that? what is great about america is weakened vote with our poc