j.p. morgan chase staring out at you from the frame so j.p. morgan chase of course this is in response to their latest revelations that they've basically signed an non-prosecution agreement and paid a fine of about two billion dollars for their role and looking the other way from the made up scandal that made a fraud right well enron which was a huge accounting scandal then enabled by arthur andersen who was their accounts about the time they were parking eighty to ninety billion dollars off their balance sheet until such time as the ponzi scheme that was enron blew up and the stock went to zero and jeff skilling and others went to jail and i believe just going to be let out of jail early because as part of the corruption that we're talking about the judicial system is corrupted by these bankers as well now flash forward to j.p. morgan what do they have off their balance sheet on these special purpose entity accounts not eighty billion but ninety trillion ninety trillion in derivatives they have more off the balance sheet in derivatives than th

j.p. morgan, you have to ask yourself if this bank is unmanageable, how did it conceivably get to a can ir. >> 495 companies are not making as much money. lou: if the other companies in fortune 500 could go to fed di discount window, avail themselves of all of the advantages given to our nancial system to these banks, we're looking as aost of funds on average for these epstitution institutions that is low in most cases they are securetizing their risk, and sitting back and clipping coupons rather than putting capital at risk. as was the intents, the presumed intent of regulators and leaders who gave them access to such capital in 2008 financial crisis. >> flip it, it was not the government that of giving money to j.p. morgan, it was j.p. morgan who was bailing out the government. they bailed out washington. u: that is fair. but, of course, at the insist stan of hank paulson, theyid en uend up taking money. my view given there is so much public capital at risk, they are beneficiars of such public capital, whether that of federal government or reserve we have a strong and i think compelling

. >> you just heard judith say she approves of the madoff settlement with j.p. morgan chase. you bring up the point that awful these settlement whether it's about the london whale or madoff are shareholders paying. it's not bank executives. >> in a company like facebook or twitter or microsoft, you have venture capitalists who own 40, 50% of the company. in the big banks in the united states, less than one-half of 1% of the shares are owned by insiders. 991/2 %. stock in these companies are directly or indirectly owned by you and me. the net effect of that is that the person who is being fined is you or me. what did we do wrong? nothing. who is not being find kerry kelling jer wasn't fined the guy at countrywide, angelo maz illa isn't fined. why are they penalizing you and i for something we didn't do and not penalizing the people who did the things that were incorrect. >> who says money can't buy you friends? companies are making big bucks off selling them to you. >> story and more as "real money" continues. keep it right here. i'm phil tores. coming up this week on techknow.

if you think for one second it's the executives at j.p. morgan who are responsible for the crimes, you are so dead wrong. they won't pay a red cent. those executives will probably still get their big golden parachutes. it's the innocent shareholders who will pay. many of you. those with absolutely nothing to do with the crimes. they are the ones who will have to pony up the $1.7 billion. justice? no, it's disgraceful. worse, it's business as usual, nothing unusual about it and that's my off-the-record comment tonight. if you have an important story or issue you think i should take off the record go to gretawire.com and tell us about it. so now you know what i think about j.p. morgan's settlement with the department of justice. bernie grimm and ted williams. ted, first to you. >> i'm horrified by this. what you are finding in this is that madoff can go to jail. corporations, you know, they don't commit crimes. the employees of a corporation commit crimes. just think about it the head of j.p. morgan, set back and say, look, i will pay a one, 7 bill

speculation the political power of these for us remains intact which is amazing because even you take a forum like j.p. morgan almost every week it pays you fines on. actions of financial fraud illegality but this is week after week after week it shows that it was. often are under it wasn't doing anything illegal because it's paid so many fights it's done so much more on death and yet it's still so politically influential and not just that one but wall street as a whole so i'm not at all satisfied our system in the united states is a quite corrupted political system corrupted because our politicians need to work together to spend our total billions of dollars on their campaigns every two years cycle now would major and two year cycle at the federal level of the united states maybe six or seven or eight billion dollars well if we're the politicians getting that money they're getting it from rich people and from big companies and they're not getting it for free oh they're getting it because they're listening to the rich and to the corporations not to the needs of the average person in the population let's talk

speculation the political power of these for arms remains intact which is amazing because even you take a forum like j.p. morgan almost every week it pays you fines on. actions of financial fraud illegality but this is week after week after week it shows that it was. often are under or was it doing anything illegal because it's paid so many fines it's done so much more death and yet it's still so politically influential and not just that one but wall street as a whole so i'm not at all satisfied our system in the united states is a quite corrupted political system a corrupted because our politicians were getting spammed our total billions of dollars on their campaigns every two years cycles now would major and two year cycle at the federal level of the united states maybe six or seven or eight billion dollars well where the politicians getting that money they're getting it from rich people and from big companies and they're not getting it for free oh they're getting it because they're listening to the rich and to the corporations not to the needs of the average person of the population let's talk about tax evas

j.p. morgan itself mentions this in the latest chart j.p. morgan presents quote the era of central bank driven equity rallies and if you look at this chart they themselves j.p. morgan points out operation twist then drag the speech then even omics and every single time they say woohoo it drives the stock market higher and who are they doing it for for the likes of j.p. morgan well this brings up a point that we've mentioned before is that in these economies driven by central banks they don't need workers they don't need taxes from the workers to fund the government or to fund the zombie banks. so workers are treated poorly they are sensually cast aside people or have the feeling as though they're being abandoned because they are being abandoned because these bankers don't need them they don't need their taxes they don't need their wages they just go to the central banks to print money for free so all the policy set around the bankers bankers are king and the american economy and the british economy that's absolutely correct that is run by a beggar class and of course you know going back a hundred years ago this would be called beggar thy neig

you are with t mobile trader app. from td ameritrade. ♪ stuart: the brunt -- the business with j.p. morgan cost an. technology rules, apple just bought a company that makes application that lets you do more with your smart from camera. shares of apple or down the dollar. the security company, it was a charles pick as well, dow little bit today, but it had a recently. twitter is in the news after getting a downgrade, the stock down 5%, down to 65. pandora, a surge in net hours and that stock is up to%. next, while the deep freeze cribs the nation, are you shopping, online perhaps? back in a moment. he has the most common kind... ...it's not caused by a heart valve problem. dad, it says your ib puts yo at 5 tes greater risk of a stroke. buit looks likeke my wamaybe we shouldd ask your doctor about pradaxa. a clinical trial, pradaxa® (dabigatran etexilate mesylate)... ...w pron superior to warfarin at reducg th riskf stke. and or dietary restrictions. no regular blood tests hey thanks for calling my doctor. sure. pradaxa is not for people wi artificial heart valves. don't stop taking pradaxa

j.p. morgan chase. they still have some other probes going on. youhave this constant threat of stories about what is the latest thing in this chinese hiring probe. >> it is unusual for the most part. i think these things happen. j.p. morgan has managed several of these over the last 12 months. they are still operating. their stock price is pretty steady. it does seem to be business as usual. i think it is a case of if that ever shifts. >> the stock is up nearly 30%. i want to leave it there. thank you very much. my thanks to jonathan mile. always a pleasure. the weather is extreme. some detailsu about some new ways to get from a to b next. ♪ >> it is day two of the so- called polar vortex that has been gripping much of the united states. many cities and towns have been combating icy road conditions. might befinding beets actually a better option. beet juice has been used to save money and proves more environmentally friendly than road salt that has been used throughout the united states. more abouterstand the business of using beet juice the snow is

sure i mean you know j.p. morgan i mean they didn't find like crazy to even the last couple weeks standard chartered bank that's operating here bank of america i mean they have you know they've had numerous accounts with drug cartels i mean all of the big banks are involved in this in some way now now with the argument can be raised well then put my mouth my own devil's advocate the argument can be raised that how can these banks always prevent terrorist financing and the thing is that there's no one hundred ten percent system that can always prevent it but what's what's happening now is is is a culture that's being cultivated in facilitated to be geared towards profiting off of financing terrorism and drug cartels so they can make more money so their stock will go up that's the that's the problem so it's on a few isolated incidents it's a whole culture of this iraq that this whole case with h.s.b.c. left you emotionally drained financially devastated how are you now how are you doing. now i'm doing great and i start

j.p. morgan chase. they still have some other probes going on. youve this constant threat of stories about what is the latest thing in this chinese hiring probe. >> it is unusual for the most part. i think these things happen. j.p. morgan has managed several of these over the last 12 months. they are still operating. their stock price is pretty steady. it does seem to be business as usual. i think it is a case of if that ever shifts. >> the stock is up nearly 30%. i want to leave it there. thank you very much. my thanks to jonathan mile. always a pleasure. the weather is extreme. let's give you some details about some new ways to get from a to b next. ♪ >> this is "taking stock errico i'm -- "taking stock." i am pimm fox. it is day two of the so-called polar vortex that has been gripping much of the united states. many cities and towns have been combating icy road conditions. they are finding beets might be actually a better option. beet juice has been used to save money and proves more environmentally friendly than road salt that has been used throu

j.p. morgan itself mentions this in the latest chart j.p. morgan presents quote the era of central bank driven equity rallies and if you look at this chart they themselves j.p. morgan points out operation twist then drag the speech then even omics and every single time i say woohoo it drives the stock market higher and who are they doing it for for the likes of j.p. morgan well this brings up a point that we've mentioned before is that in these economies driven by structural banks they don't need workers they don't need taxes from the workers to fund the government or to fund the zombie banks so workers are treated poorly they are socially. cast aside people who have the feeling as though they're being abandoned because they are being abandoned because these bankers don't need them they don't need their taxes they don't need their wages they just go to the central banks to print money for free so all the policies set around the bankers bankers are king and the american economy and the british economy that's absolutely correct that is run by a beggar class and of course you know going back a hundred years ago this would be called beggar thy ne

j.p. mowing began will pay. charlie rote about this in "circle of friends" and the circle continues. >> you have to ask why is j.p. morgannding them the money now? >> why ills j.p. morgan -- >> after paying 13 billion and more. we did some reporting at the fox business network and found out j.p. morgan's board was worried last year that the feds would break them up. not break up all the banks, just them, based on all this regulatory stuff. why did the stuff occur? the feds would say they broke a lot of laws, a lot of problems. i would say, it's an interesting sort of coincidence that after jamie diamond, the ceo of j.p. morgan chase started attacking the obama administration, on economic and regulatory policy, all of a sudden these investigations start popping up. >> you have to wonder. quid pro quo or tit-for-tat. >> they did some things wrong. >> what about where they -- five years to be on good behavior or more -- >> called a deferred prosecution. that means they can stay in business and have to agree not do bad stuff. here's the reality. this part is weird. if j.p. morgan did aid and abet bernie madoff, where is the

. >> do you think that the ceo of j.p. morgan has that understanding? should he be replaced? >> i'm waiting for him to demonstrate. >> but he hasn't so far? >> not so far. he has had a long time. >> the administration plans to name stanley fischer as the vice chairman of the fed reserve. is this a good choice or not? >> i want to be hopeful. this is a hard time right now for the federal reserve. this economy is not recovered the way it should coming out of this recession. what we are seeing is that the fed reserve has limited tools. in a world in which congress is willing to act, and world in which congress is not cutting back on spending or shutting down the government costing the economy millions of dollars, congress is supposed to do its part. right now the fed has limited tools of monetary policy. it keeps playing and working with the one tool. >> you like yellen. >> i want to be hopeful. >> what grade would professor warren give ben bernanke? >> it is a mixed grade for me. ben bernanke did a lot to stabilize the market, but he kept the focus on the largest financial inst

. >> any chance you will have a pizza named after j.p. morgan? hink i can come up with something. >> any specialties? you come from a call and very background? >> i've always been interested in the food service industry, but no background, so to speak. i am from new haven, connecticut where i think pizza is a mecca for me. i've always had a passion for it. i love the mashed potato bacon. >> mashed potato bacon pizza? have you ever heard of such a thing? >> i have not heard of such a thing. >> i have a feeling that scott already has his order placed. thank you very much. scott geller and my thanks also to matt michael, owner of rolling in dough pizza. has joinedbeats apple, spotify, pandora, indie music streaming services party. i will give you the details. the fun continues with the mosteeper for sundance's exclusive parties. i will tell you i companies such as hbo trust him to put together the guest was. ♪ beats launched its own music streaming service. it is called eads music. music.s it joins a crowded field. joining me from san francisco to di

numbers for the settlements that are greatly exaggerated now for them or some of the you know in some of the recent j.p. morgan settlement which has been now they've had some other more recent ones but you get of that you know they are calling one of the recent ones thirteen billion in fact that was nine billion in cash and nearly half of that was with was with f h f a the regulator for fannie and freddie and those were charges they were they were not going to escape so it was made as if it was a settlement of liability they had anyhow it was made to sound as if it was incremental as it was fines or some other additional punishment when in fact from j.p. morgan's perspective it was just oh just write a check now and get it over with rather than keep having to announce every quarter that we're bleeding from the from these fannie and freddie related charges right now in a bipartisan effort to kind of shine some light on the exact details of the wrongdoing of the banks senators was a bit worn and tom coburn they've gotten together on the truth in settlements act what are they trying to accomplish any of what do y

numbers for the settlements that are greatly exaggerated now for the more some of the you know in some of the recent j.p. morgan settlement which has been now they've had some other more recent ones but you get that you know they are calling one of the recent ones thirteen billion in fact that was nine billion in cash and nearly half of that was with was with f h f a the regulator for fannie and freddie and those were charges they were they were not going to escape so it was made as if it was a settlement of liability they had anyhow it was made to sound as if it was incremental as it was fines or some other additional punishment when in fact from j.p. morgan's perspective it was just oh just write a check now and get it over with rather than keep having to announce every quarter that we're bleeding from the from these fannie and freddie related charges right now in a bipartisan effort to kind of shine some light on the exact details of the wrongdoing of the banks senators was a bit worn and tom coburn and they've gotten together on the truth in settlements act what are they trying to accomplish any of what do

purpose because they're crooks but if you use colored coins you cannot do naked short selling so goldman sachs goes out of business j.p. morgan has got a three billion ounces short of solar that would be blown to smithereens they will be able to gauge the wholesale fraud anymore they actually there's another function being deployed right now a company called open transactions and they started working with gold and gold digital gold but here they now turn to bitcoin and open transactions will no company whether it's pay pal or j.p. morgan to goldman sachs for example will be able to go in and change the the number of shares and the amount of money they have on deposit so we'll get rid of the accounting and they count in fraud as well because it won't you won't be able to cook the books using open transactions on the block chain won't take another example basil three accord which is supposed to be the master agreement from capitol minimum capital requirements for banks that just came out and said that we're going to make it easier you don't keep so much capital on your books because that's the collateral you use all your books

you for hosting us. we are out of the j.p. morganonference, the healthcare conference in san francisco, and like you said, this is like the super bowl of biotech going on right now. effectively, anyone in the world in healthcare is in san francisco this week. >> you are talking about thousands of individuals, trying to make deals, trying to learn things. what would they learn if they asked you, ptc therapeutics, about your treatment for muscular dystrophy? what is it? >> it is one of the orphan genetic diseases, one of these devastating diseases that affects young boys. this is one of the main focuses of our lead asset, where these boys who cannot otherwise produce a specific protein, our drug is potentially a therapy that will help change the course of these diseases for these boys by effectively enabling them to produce the protein that they can't otherwise produce. >> what classifies a drug as an orphan drug? >> an orphan drug is for an orphan disease, and orphan is defined as a prevalence of less than 200,000 potential patients.

you. >> woodruff: j.p. morganse agreed today to pay more than $2 and a-half billion dollars to settle criminal charges in the bernie madoff fraud. bank ignored warning signs that federal authorities charged the bank ignored warning signs that madoff was running a huge ponzi scheme. we'll get full details right after the news summary. on wall street today, stocks finally had the first "up" day of the new year. the dow jones industrial average gained more than 105 points to close at almost 16,531. the nasdaq rose 39 points to close at 4,153. a bill to restore long-term unemployment benefits took its first step forward in the senate today. half a dozen republicans joined democrats to begin formal debate. republicans also called for spending cuts to pay for the bill. we'll have a full report on today's action later in the program. in iraq, the government claimed it struck a key blow at al qaeda militants holding two cities. the military said this video showed an air strike on an operations center just outside ramadi.

j.p. morgan. nicole: good news with the profit they incurred. 58.35 on j.p. morgan trading near 2000 levels, back in 2000. so that's good news there. and as youeen paying out big time. 2.6 billion to settle government and private claims and over 20 billion to settle assorted legal claims and wells fargo slightly lower this morning and let's see where it is this second. they had a 11% rise in the fourth quarter profit and did cut thousands of jobs, 45.32. stuart: did i make a mistake, j.p. morgan? >> no, the hit to j.p. morgan's earnings for the madoff situation, 1.1 billion. 2.6 billion total and took a 1.1 bill hit in this quarter. stuart: next stock is gamestop. we had a guest put put it on death watch. cue the organ music, and the stock is struggling all right. it's down 15% back to 38 on gamestop. let's move away from the market towards the broader economy. only 74,000 new jobs created in december. the unemployment rate dropped to 6.7%. here comes goldman sachs today saying that that number, that that unemployment rate will fall even more, it will come down more by the end of this year because there's a whole bunch of more people who are

well here you mentioned that they're the drug running all the crime and the breaking the law repeatedly by the likes of j.p. morgan h.s.b.c. and barclays in r.b.s. and deutsche bank in. general all of them right well benefits street birmingham documentary criticized so there's been this channel four documentary here where they look at it in particular in the first episode the street in birmingham well these people are on benefits and the most shocking bit and people of the tabloid sort that would be outraged they noticed that it featured interviews with people who admitted cultivating drugs and stealing just like all are banks admitted to libel or raiding which is stealing because stealing because stealing. look if david cameron is going to point to the big four bags in this country as say that they perform a vital function that they're beyond the law that they provide liquidity that their market makers that they're funding my reelection campaign and they are role models they just be as a she is a role model according to david cameron george osborne barclays lloyds and r.b.s. if they are role models of r.b.s. just

leeward rationales like because science or because reasons you might not go to a party because tired america losing empire because lazy j.p. morgan paying yet another multi billion dollar fine because a criminal yet another wedding party getting thrown because us about the department of justice losing faith and values big guy because concern for all the n.s.a. spying on every single person on earth because just because stacy yes mag's well we're first going to speak about this because concern troll. the department of justice has lost faith in the value of bitcoin so you know they hold dread pirate roberts while out of bitcoin were something like one hundred twenty five million pounds in total between the two but they say that apparently the millions of dollars in between seized by the f.b.i. from ross albrecht and the first silk road currently stored in a set of online wallets appears to be on the move a source in the u.s. justice department said that authorities have access to the obrecht cache and may be selling it off for less volatile currencies in the next few weeks this is exactly how they run fed policy is that they don't