j.p. morgan chase up more than 5 percent. at last check. and now to gerri willis anchoring the willis report on the fox business network. a costly mistake for j.p. morgan chase but, wow, the stock is soaring with the rest of the market. >>gerri: costly mistake and huge embarrassment. the market has decided that j.p. morgan chase put this behind them and they have really good information in that earnings report. first of all, loan demand is higher. also, profits from retail. up. doing better. the fundamentals of the business are looking better and which problem with the london office is going away, and what is more they fired almost everyone in that london office, too. so those folks are not around. >>trace: it does not appear j.p. morgan chase is going easy on the employees involved in this $5.5 billion trading situation. >>gerri: they are doing "claw backs," taking back pay from the people and it could be millions. it will not be like the billions they lost in the trades but what they are hoping to do is send a signal that you cannot get aw

j.p. morgan chase. >> that as word comes that investment losses were deeper than the first report. brooks is here to crunch the numbers >> ugly numbers for j.p. morgan chase. they said not long ago they lost $2 billion in a huge blunder. today they saw its it said was $4.4 billion. the ceo is trying to persuade shareholders and wall street that the worst is behind them and that they will try to gain back millions of dollars of compensation from the executives who were behind all of this. despite that loss, j.p. morgan chase did still top earnings expectations and its shares are up by 4%. wells fargo also reporting earnings for the, up 18% to $4.4 billion. there ceo says they see stabilization in the housing market. wells fargo had a record number of mortgage applications. inflation is still not a story which is good news for the fed. the price indexes only up a 10th of a percent. inflation has been flat. wholesale prices up only 0.7%. the dow and the s and p have been on six consecutive losing streaks. so far so good today. the dow is up, nasdaq and s&p are up. wells fargo and j.p.

j.p. morgan chase and the role of

j.p. morgan chase and the role of government regulators in monitoring the banking industry. >> brown: miles o'brien has the story of an austin, texas, neighborhood that uses "smart grid" technology to track and control its energy consumption. >> the fishers have two solar volume dayic power system, sophisticated digital metres and state of the art thermostats that allow them to fine-tune their indoor climate here orion line when they're away. >> we >> woodruff: we update the presidential campaign as the candidates trade shots over outsourcing jobs. >> brown: mark shields and michael gerson analyze the week's news. >> woodruff: and we close with a report from south sudan about a flood of refugees fleeing the violence, only to encounter grim

j.p. morgan chase. welcome, susan. >> i got to put on my glasses. good morning. california is a state with many opportunities for growth. the people, facilities needed to serve to businesses as well. we are creating many jobs, including construction to build a brand shows, vendors to provide services, and employees to help our customers with financial needs. we are honored to sponsor today's event, and it is my pleasure to introduce him. jim is the managing director and chief economist for j.p. morgan chase and works closely with our investment banking and government relations groups. in addition to publishing independent research on the economy and financial markets, his views are widely cited in the media. he is a frequent commentator on economic policy issues. he received his undergraduate degree from the university of illinois and holds a ph.d. in economics from northwestern university. today he will provide a national overview and update us on what to expect as we go forward in 2012. goo[applause] >> good morning, san francisco. i love visiting san francisco

j.p. morgan chase, are also under investigation in the libor scandal. much more information about both of these banking stories was released today. dawn kopecki has been poring through it for bloomberg news and joins me now. >> dawn, let's start with jpmorgan chase. we already knew about some of these losses. what did we learn today about how they were actually even bigger much bigger than first reported. >> well, we learned today that jay me diamon knew that the bank had already amassed close to 800 million in loss from this position in the first quarter when he called this attemptest in a teapot. he knew at that time that they had already had 800 million in losses and that the position could grow by another 250 million or so at that time. something the bank never disclose to investors, something they totally downplayed at the time. we also learned that the loss in this quarter, the company worked really hard to try to close it out. they want to put it behind them. they want to say that this is no longer a problem. so they try to really close out that

j.p. morgan chase says its $2 billion blunder is way more serious than they originally thought. the bank's bad trade appears to have cost the company $5.8 billion. ceo says he fired the managers in charge of the trade and he is taking back two years worth of their pay from each of them. >> admitted the problem and making systems changes. time will tell if they are doing the right things. >> the bad trade could cost the company another $1.7 billion in future losses. but after all of this, j.p. morgan chase made a profit of $5 billion last quarter. >>> consider this show, better late than never. tonight the city of gaithersburg held its july 4 celebration at the montgomery county fair grounds. a few days late, but the party got rained out. tonight, there was fun music and july 4th fireworks on friday the 13th. >>> still ahead on 9news. a health alert that could help you or your family members lose weight. we'll show you how and why to start a food journal. plus, moms and dads be glad your kid doesn't aspire to this professional sport. the dirty details coming up next. stay with us

j.p. morgan chase says a giant trading blunder was much worse than first reported. >> allison has the details and the fallout for the bank and its traders. >> a bad trade at j.p. morgan chase cost the bank $5.8 billion so far this year. that is nearly triple the $2 billion the bank first disclosed. the ceo said that he fired the managers in charge of that trade and the company is taking back two years worth of pay from each of them. >> admitted the problems to making systems changes. so they say they are doing all the right things. time will tell if they are. >> the trading loss came from the bank's london office, which was supposed to be balancing risk, but the portfolio got too complex. when j.p. morgan started investigating the loss, the chief executive dismissed it. he now admits the blunder has staken the company to its core. we don't take it lightly, diamond told analysts, but we do think it's an isolated event. even with the giant loss, j.p. morgan made a profit of $5 billion in the last quarter. as the news hit wall street, it listed financial stocks and analysts point out j.p. morgan

j.p. morgan chase c.e.o. jamie dimon came down to testify a few weeks back we shouldn't expect too many tough questions about this latest financial scandal then again and treasury secretary tim geithner knew what was going on when he was head of the federal reserve bank in new york you might actually get some answers after all if there's one thing republicans love more than protecting wall street it's embarrassing the obama administration but here is the big picture for years after wall street crash our economy then made off with trillions of dollars in bailout money leaving the middle class. to suffer the effects of a great depression here we are again in the middle of another wall street scandal and just like the last candle it looks like there might have been collusion between the banks regulators and governments as witnessed by the tea party phenomenon at least before it was hijacked by billionaires and more recently by the occupy movement faith in the american economic system is shattered today so what e

j.p. morgan chase faces questioning from wall street analysts. >> news of a possible pilot shortage. paula faris has the details in the report. >> good morning. tapping "america's money" wells fargo will pay $175 million to settle charges. there were claims that tens of thousands of black and hispanic borrowers paid higher interest rates because of the color of their skin. growing questions for the head of j.p. morgan chase, the ceo will face analysts this morning after reporting trading losses in the billions. a new airline industry shows possible pilot shortages. almost half a million new pilots will be needed in the next 20 years. it is raising concerns airlines could hire less qualified pilots. digg found a buyer. they turn down google's offer of $200 million. i am paula faris. ( telephone rings ) hi, honey. how's the camping trip? well, kids had fun, but i think i slept on a rock. what are you doing? having coffee. ah, sounds good! i thought you'd say that. ah. ♪ the best part of wakin' up... ♪ you're the best! wake up to the mountain grown aroma of folgers. ♪ ... is folgers in

j.p. morgan chase, which easily beat initial forecasts. this comes even as the country's biggest bank now says losses from their recently reported trading blunder are nearly triple the original estimates. >> two months after the ceo said this about the trading blunder at j.p. morgan chase -- >> we made a terrible, egregious mistake -- that he is saying it is even worse than it first appeared. he disclosed the losses are nearly triple the original estimate of $2 billion but said the bank remains strong. >> we do not like making light of this error, but we do think it is a singular event. >> he said managers tied to it had been dismissed without severance pay. plus, the bank planned to revoke two years' worth of pay from each of those executives in a procedure called a claw back. they include them woman who once oversaw the division that made the bad trades. she will be forfeiting $20 million in compensation. some analysts wonder what compensation -- what dimon should face. >> we made a mistake. i am responsible. the buck stops with me. >> h

j.p. morgan chase said that they lost $4.4 billion.id it was $2 billion. the bank has significantly reduce the risk involved with that kind of trade pin they will no longer trade derivatives which is what was behind the loss. even with that loss the banks still made by the end dollars in the corner pit >> jamie diamond said the falling. >>darya: there are hundreds of people in san jose that of wind up to get the chance to get a backpack in san will tran is there. a's want to tell you what he needs to do if you need help for the school supplies pit >>will: if you need backpacked then you need to physically come down here at sacred heart. we got at the intersection where we can show both sides. this is wrapped around the corner pit there are approximately 350 people here and some people got here as early as 1030 last night. they're going to hit start citing people up about an hour from now he will not be getting the backpack today. they will be putting your name on a list ricky had. in some at a back pack they will have pencils paper as

j.p. morgan chase. that is nearly three times the amount it originally estimated. the ceo of j.p. morgan chase thinks that the loss has been mostly contained but he did fire the managers involved in the trading blunder. >> ltd. the problem and are making changes. time will tell if they really are. >> someone has made a profit. there's another side to this trade. we just don't know who that is. >> investors appear relieved. jp morgan has been most of this mess behind it. the stock is up 6% with strong earnings launching a rally, the dow jumped 204 points today snapping a six day slump. the nasdaq and s&p may double digit gains. >> product arrived in pieces and those pieces did not fit. the ordeal that one man's face after he did not get what he expected and the one thing that customer should always ask for. >> everyone wants to wear as little as possible when it is hot. >> the heat brings more business to this nudist resort. ,, you ready buddy? you're probably not getting called up to the majors. but your fence? that's pro. finish like a pro with cabot wood stains. cabot...that's pr

j.p. morgan chased announce that their trading loss was $4.4 billion. this after the bank debt and assets of 2 billion. the cbo says the bank has significantly reduce the risk involved in the trade by a trader known as the london well. he says they will no longer trade derivatives. they may have lost 4.4 billion on that trade but they still made 5 billion and profit for the quarter. we are watching wall street way for the opening bell. u.s. stock futures are pointing higher this morning following good earnings from j.p. morgan and chased despite the big loss for that trade. global markets are also higher this morning. china reported a slowdown in economic growth. >> mark: dow futures are up 40 points right now we have had six losing days in a row. >> darya: we will be back with more in just a couple of minutes, then just take a live look outside on this friday morning the golden gate bridge is looking a lot like it has all week. we will be right back. >> mark: will come back we're watching the wildfire that is raging to the east of apple facts. police a

j.p. morgan chase says its $2 billion trading loss actually is much worse. go live to wall street to find out how investors are reacting. >>> 50 days until cal football starts and you will find out if the new stadium is close to being ready. man: there's a cattle guard, take a right. do you have any idea where you're going ? wherever the wind takes me. this is so off course. nature can surprise you sometimes... next time, you drive. next time, signal your turn. ...that's why we got a subaru. love wherever the road takes you. the dow is rising nicely this morning and a big bank is leading the market sharply higher. j.p. morgan searching for% on a strong earnings report and they played a huge trading loss that the more significant than the first report. and taking a live report, the dow up 158 and nasdaq up 27, snp up 14. >>> j.p. morgan chase says its loss for trading errors is $5.8 billion which is three times it's original estimate. we have the recent dismissal of top managers and what's being done to prevent this from happening again. >> good morning. let'

j.p. morgan chase said it lost on the bad trade is bombing. the bank lost $5.8 billion, and that is almost triple the $2 billion estimate given back in may. j.p. morgan chase said an internal investigation has called into question the values that traders placed on certain bets and that the traders may have been trying to hide the losses. >>> happy friday to everyone. you know what? weather-wise, no complaints -- . >> yeah, friday the 13th. >> next on jinxwise about the weather. >> that is good. >> it felt good out there. what are we looking at into the evening? >> high, shawn and maureen. it is a lucky day for us. for starters, it's fairly day. -- gray. last friday, it's 100 degrees and today, the highest temperature is 100 degrees. you know, it looks like it wants to rain out there and that probably won't, maybe it's a spotty shower here and there and that looks like a lot of that is holding off until tomorrow and we get you started with a look at the sentinel radar and there are a couple of sprinkles. they're not really showing up that well.

j.p. morgan chase billions of dollars. the company's ceo jamie dimon now says the bad bet cost the bank about $5.8 billion this year. that's almost three times the original estimate. dimon says the bank closed the division responsible for the trade and got rid of the managers tied to it. despite the loss, j.p. morgan chase still earned $5 billion last quarter. >>> that new report from j.p. morgan gave stocks a rally on wall street. the dow jones industrial average snapped a six-day losing streak to pick up 204 points today. the nasdaq gained 42 and the s&p 500 closed 22 points higher. >>> the penn state community is reeling today in the wake of yesterday's big report about the jerry sandusky sex abuse scandal. nbc's michael isikoff takes a look at the issues facing the school from state college. >> the fallout from thursday's scathing internal report from former fbi director louie freeh are rippling through penn state community. the flood of lawsuits by the victims of jerry sandusky, armed with new ammunition that top univ

j.p. morgan chase stock up 6% on a better than expected earnings report. they made $5 billion in the last quarter, despite an embarrassing trading blunder. they lost $6 billion because of a strategic mistake in their london office. all managers in gault had been fired and ordered to give back two years of compensation. the news having a big impact on wall street, the dow up for the first time in over a week, and in a big way. 187 points. >> in the middle east there has been another massacre of civilians in syria. can tie regime activists say that government forces shelled a farming village yesterday before armed thugs move in, killing dozens of people. it is not clear exactly how many as activist provide varying numbers. but is one of the deadliest episodes since the uprising did >> a man from redwood city was buried at golden gate national cemetery, he and six fellow marines died in 1944 when their plane crashed on a remote island in the south pacific. their remains were finally found back in 2007 and were identified, finally, through dna. coming up, maki

j.p. morgan chase managed to weather the banking crisis but now facing a barrage of problems including the multibillion dollar trading loss at may be a lot bigger that everybody was pretending. just how much j.p. morgan khais really in? should customers be concerned. brenda butner, anchor of "bulls and bears". let's divide the scandals into three parts. part number one, scandal number one, did the bank manipulate energy markets in california and midwest thus driving up prices for consumers. next friday the 13th is the magical date the federal judge has said cough up the documents or else. >> the documents are interesting. they say no, we didn't do anything wrong with the bids. but the regulateders are looking at them to see if they artificially used higher prices at the wholesale level and then pass along to consumers. there is about $13 million involved here. they say it's an attorney thing. they want from the head of the global commodity trading group. that is very high up and could explode into something if something is found in the e-mails. >> gregg: attorney-client privilege only prot

j.p. morgan chase is now the focus of a federal investigation. yesterday the bank said that losses from risky trades totalled nearly $6 billion. that's about three times more than j.p. morgan initially reported. now investigators want to know if traders hid the size of the losses after the banks said an internal probe found reason for suspicion. >>> i'm going to talk with a diver who had an up-close and personal encounter with a great white. and he said he would actually get in those waters again. he's not scared at all. in fact, he was back in the water today. he will join us to talk about his great adventure. being a did of communications company by continuing to help you do more and focus on the things that matter to you. a living, breathing intelligence teaching data how to do more for business. [ beeping ] in here, data knows what to do. because the network finds it and tailors it across all the right points, automating all the right actions, to bring all the right results. [ whirring and beeping ] it's the at&t network -- doing more with dat

j.p. morgan chase says its giant trading blunder was much more serious than first reported. they originally said that a bad trade cost it $2 billion but now it says that number is actually closer to $6 billion. the company ceo fired managers in charge of that trade and now the company is taking back two years worth of their pay. >> paid to the problem, they're making systems changes and they say they're doing the right things but time will tell >> someone has made a profit, there is another side to this but we don't know who that is >> even with that giant loss, they made a profit of $5 billion in the last quarter. that news launched a stock market rally giving the dow the best day this month. the dow jumped 204 points. j.p. morgan surged 6%, the biggest gain by far. if president obama and mitt romney agree on anything it is this, each of thinks his opponent is a liar. the latest war of words on the campaign trail. >> president obama is firing up supporters in one of the key 2012 battlegrounds. >> it is good to be back in virginia >> at a rally in virginia beach he called ou

j.p. morgan chase reporting a gain of 3.6%.we're one hour into trading we do have a fairly significant rally at least after what has not been a great week. head to chicago and get more on the market's moves and for that we're joined by lincoln ellis, managing director of strategic financial group and joins us from the cme. what's your take here? j.p. morgan did seem to lend a positive tone one would expect and wells fargo, okay as well, i guess. >> i think if you continue to see some recovery and some resurgence in the financials, at least that stability at quarter over quarter making money ex any exo gl onneous factors it does put a floor you should under it and if we can continue to repair the balance sheet of the banks, it is positive for the broader market as we go forward into the rest of 2012. >> what about china gdp? is that lending a positive tone here or there is continuing concerns. we heard an earlier guest talk about electricity consumption being flat to potentially down. how important is that in terms of what we're

j.p. morgan chase c.e.o. jamie diamond has bought the bank's stock worth seventeen million dollars he hopes this will convince investors that the worst of the crisis is over j.p. morgan has lost around seven billion dollars last year but managed to post a five billion dollars profit in the second quarter and let's not check out the european currency to see how it's reacting to all the bad news and what we're seeing there is that it's actually losing value although ever so slightly to the u.s. dollar and it's a hit an eleven year low against the japanese yen that's after spain's valencia region has asked madrid for something natural help fueling worries that the european price is actually deepening the russian ruble this hour is losing value to the major currencies and looking at the russian markets the situation is pretty dire there is a. well in my success chatting around one percent the r.t.s. is more than one and a half percent following in asia's footsteps and busters are basically leaving the risky assets

j.p. morgan chase released earnings numbers on friday, closely watched because of t massi trading losses the bank suffered. according to chairman anand ceo jamie dimon, t losses are pegged at 4.4 billion and could grow by another 1.7 billion. the company is cutting its earnings because of the trades, in the second quarter it did earn 4.96 billion, ahead of analysts expectations. the bank taking back salary and bonuses for those involved in the supervising of that bad trade. shares rose early on friday. j.p. morgan says the balancece sheet remains strong, calling it a ortress balance sheet. europepe and the fiscal cliff. the federal reserve's open rket committee releasing the opening minutetes, and didn't sd light on possible moves in terms of stimulus. they may need to take action if the economy loses momentum, the. >>> american airlines opening their checkbook, expecting to spend 14.7 billion onon jetss m by boeing, the planes will be drivened beginning next year. >>> well, another earning season is here, will it lead to a sweet surprise for the markets? joining me now is jack ablin, jack i

j.p. morgan chase c.e.o. jamie dimon has bought the bank's stock worth about seventeen million dollars he hopes this will convince investors that the worst of the crisis is over for j.p. morgan has lost about seven billion dollars last year but it managed to post a five billion dollars profit in the second quarter of this year now let's see how the european currency is reacting to all the news coming from europe and it's trading fly too negative to the u.s. dollar this hour and it has had an eleven you a low against the japanese yen that's after spain's of the lens the region has asked madrid for financial aid that's obviously fueling concerns that the europe. crisis is deepening and the russian ruble on the opening is trading lower against the major currencies notes let's now see how the russian markets opened and we're seeing losses there in fact major losses considering that the r.t.s. is already down more than one and a half percent within the first twenty minutes of trade funds investing in russia lost ar

j.p. morgan chase. >> the u.s. federal reserve acknowledged it heard anecdoteal evidence and suggested reforms from regulators in the uk. is it appropriate for the federal reserve to essentially pass the buck to the british colleagues? >> they can pass the buck to the british colleagues, but they're responsible for regulating the u.s. banks. we don't know for certain u.s. banks were complicit. but it's a team sport. one bank can't manipulate. 16 banks were involved. >> tom: you have to know how libor is put together. it's a dalele survey of banks themselves and how much their borrowing costs are, and it's reported by the banks themselves in london. so the federal reserve can say it's an issue in london. there's trillions of dollars typed to t but it's industry practice. what's at stake here is the practice in london. >> the u.s. boofrngs have entered into hundreds of trillions dollars of contracts. if they're conspiring to fix libor rates which is what is alleged and what barclays admilted to, they've defrauded cus

j.p. morgan chase have come to a settlement. >>darya: let's take a look at from paramount tam camp. it is a beautiful shot. will be right back. [ male announcer ] now at your neighborhood subway: dinner...is...served. tonight, take it easy and enjoy your favorite soup, salad and hot, hearty sub. like the toasty big hot pastrami melt. get to your local subway for some dinnertime deliciousness tonight. subway. eat fresh. >>mark: here is a video of great white whale attack it see world. he had a puncture injuries. there were safety violations issued against the park. this the video has just been released. >>darya: the percentage of california voters that struggle to pay for health care snatchings in five years. take a look at the results of the field poll. >>mark: there is a quick break as the kron 4 morning news continues. man: we need a good night's sleep. woman: which means a little heat to keep us warm. and a good dose of support for my back. some over-the-top comfort couldn't hurt. and our perfect dream factory's been built. you're feeling sleepy already? nighty-night. [giggling]

j.p. morgan chase, as well as the largest bank in canada. royal bank of canada are already enmeshed in it, and they are the subject of an antitrust suit that's going on right now as well as regulatory investigations. >> susie: so how serious is this whole situation? how much are the banks at risk when the news and the investigations, you know, come out with some findings? >> l i think they're very much at risk. as far as the dollar amount, we don't really know. these stocks have all had very good share price appreciation in the last week. so clearly, the market isn't really worried yet about them. but it could pose to be a very big problem down the road. for barclays it was almost a half billion dollar fine. >> susie: could there be management shake-up as a result of this at american bank, any big american bank? >> it's much too early to even think about management shake-ups yet. we don't be which way the antitrust trial will go, or which way the investigations will go. i can't even think about that. >> susie: let's turn to another issue tod

j.p. morgan chase said today that high-risk investment that went bad cost the bank a lot more than $2 billion c.e.o. jamie dimon first reported. j.p. mortar gone said losses are up to $5.8 billion and could top $7 billion. but dimon said today the worst appears to be over. j.p. morgan stock soared 6%. $200 million in customer money has vanished from an iowa brokerage firm called p.f.g. best. the c.e.o. was arrested today, accused of making false statements to regulators. russell wasendorf senior is now being called the midwest madoff. after a ribbon cutting ceremony if 2009, russell wasendorf senior proudly showed off his new headquarters to iowa's congressional delegation, including senator chuck grassley. but the gates are now locked. wasendorf was arrested today after regulators discovered $200 million in missing customer money. on monday, wasendorf attempted suicide in his car in the company parking lot, leaving a note that said "i have committed fraud." >> i felt that cedar falls is a great place to have a business. >> reporter: wasendorf had moved his firm to cedar falls, iowa, to chica