jamie diamond. >> you're obviously renowned, likely so, i think as being one of the most, you know, one of the best ceos in the country for financial institutions. it is a blip on the radar screen. >> i really appreciate you voluntarily coming in to talk with us. it is important that we talk about things happening in the industry. i think it will advise us, help us as we look forward and hopefully it will contribute to best practice scenario in the industry and i appreciate your emphasis on continuous quality improvement. we can hardly sit in judgment of your losing $2 billion. we lose twice that every day here in washington. plan to continue to do that every day. it is comforting to know even with the $2 billion loss in trade last year -- >> bill: this is tea party guy. >> had a $19 billion profit. >> you made the statement the answer isn't more regulation. it's smarter stronger regulation. and i absolutely strongly agree with that. >> bill: unbelievable! and one senator even said now what would yo

structure this is this is gambling jamie diamond now answers to the senate banking committee on capitol hill where we've already seen regulators paraded before him in recent weeks we are assessing the adequacy of risk management throughout the bank with little in the way of revelations the reason of course is that both you and abuse treasury and the federal reserve are so heavily allied with the interest of the largest banks in the world systemically dangerous institutions and as far as the interests of this senate panel keep in mind when jamie dimon addresses the leaders german johnson ranking member shelby he's talking to lawmakers who can think j.p. morgan is top campaign contributor number one and number two that's according to the center for responsive politics. so as far is too big to fail wales london and otherwise we may still have no assurance they won't be coming seemingly . again some time soon. so that brings you up to speed to today now more reasons for that view i expressed at the end the whole issue with this trade and the volcker rule is the question of if this was a pro

s fortress balance sheet because if you haven't heard jamie diamond was on the hill testifying about j.p. morgan's multibillion dollar trading loss so we infiltrated the capitol building to bring you the real story from inside the lion's den now don't worry we did construct a full body protective shield that repels cronyism and dirty deals from reaching me you know i tried to enter through a revolving door so it's not raise any eyebrows but hey alas there wasn't one maybe that's only for the politician we will give you the real lowdown though and we were also trying to figure out if we'd seen this dog and pony show before we found this . this is what i'm telling you what i'm exposing. to you with grace and everybody this is my. we wish we saw a repeat of the valachi mafia hearings in the nineteen sixty's where the country really got some insight into the workings of organized crime not the case today with jamie dimon nonetheless we talked to marketplace's heidi moore on capitol hill fresh from the hearings on what did come out of it a value plus one wondering if banker bonus arbitrag

now in order to report consistently higher earnings what jamie diamond does is on his balance sheet he has the official numbers he reports to regulators and then off the balance sheet he has one group of trades that are to. i in case of one outcome and an opposite group of trades tied to an opposite outcome and at the end of the quarter depending on which is profitable and which is not he recognizes those traits at the exclusion of the other traits it's fraud it's similar to lehman brothers repo one hundred one scam or one o five scam it's something we did on wall street for many years called a look back trade and he practices it in the multi-billion dollar multi-trillion dollar level he's a fraudster and the fact he's allowed to continue doing this is a shock going to shame well max one thing we hear over and over is that crash j.p. morgan by silver cannot work because they are whales they are too big they are connected to the federal reserve bank here they are they have had to sell twenty five billion dollars in securities in order to make up one billion in gains they really made

touted as a major breakthrough in intelligence about the mob well that wasn't what we got with jamie diamond day you know what can i say a girl can dream that's not what we saw but first let's back up to quickly recap on how we got here. it's been a little more than a month since the beast revealed its true nature publicly that was j.p. morgan's now infamous london whale weighing in with at least a two billion dollar loss. before disappearing back into the vast murky waters of the largest bank in the united states only to rear its head again in the form of p.r. spin so banks you can make loans or invest the money in securities you have a huge security portfolio were big bank in fact the securities before it does have an unrealized gain of eight billion dollars but in how we manage that portfolio we did lose two billion dollars trading fishy euphemisms amidst a sea of criticism over the risk taken by a taxpayer backed too big to fail bank and its chief executive he's responsible for this the buck stops here but this isn't for naseem business or creating jobs or building plan equipment or fina

>> like he said, everyone was focused on jamie diamond. there were olot of softball questions and he did a good job in a lot of ways. underlying that when the banks were trying to rally here, retailers were having a hard time going back to what tim just said about the retail sales numbers. when you see names, there were a couple of weeks ago 5%. underarmor, names people are looking for for growth. you see some of the names like tiffany and coach. >> dan mentioned some of the high end retailers. terrible days today. i wonder if you get concern. >> i think, there is some fear. but also remember the high end multiple stocks, they are high. they don't -- yeah. they have less room for error. i don't know that macy's should be in that. macy's customer, which is the bulk of their business, is really not so much the high end. i like to be in the targets and ral materials of the world. they were down today but not a bad day for both. >> let's string together data points. you pointed out whole foods. these are estimates but for these stocks with hig

jamie diamond earlier this month said the bank sold corporate bonds and other securities pocketing one billion dollar in gains that will help offset more than two billion dollars in losses as a result the bank will not have to report as big an earnings hit for the second quarter well yeah exactly this let me explain how it works with j.p. morgan and the banks on wall street it's all about reporting consistent earnings and some growth in earnings consistently over every quarter for a number of years in a row this gets the stock price higher it gets the multiple higher it increases the value of the options tied to the stock price which end up in the pockets of the executives like jamie diamond now in order to report consistently higher earnings what jamie dimon does is on his balance sheet he has the official numbers he reports to regulators and then off the balance sheet he has one group of trades that are to. i in case of one outcome and an opposite group of trades tied to an opposite outcome and at the end of the quarter depending on which is profitable and which is not he recognizes

and he looked at jamie diamond sitting in front of congress in front of the senate and he called him this he said this so you think we've got to yours. it's a system part when you think about the stumble that a loser in by the way let me say something he agrees with me there is a myth being pushed by m.s.m. b. c. by c. and b. c. max that somehow the elites have failed by jamie diamond having having to go to this show trial in which his innocence is proclaimed that somehow he has failed that he's stupid the fact that the eurozone is collapsing a euro zone devised by unelected alif that the fact that it's collapse and that somehow they're losing they failed no no no no it used to be that in order to communicate inside information to congress yeah to go through back channels now diamond can go in front of congress and tell them outright his in plans for insider information and market manipulation he knows that's the only basis of growth in the american economy is fraud and he is the ground point of overthrowing and i don't see where cramer comes off calling him a loser he is a magnifice

turn to some other of the least dangerous interrogator's financial interrogators in the world so jamie diamond appeared before the house financial services committee and the headline before he appeared diamond faces harsher and crazier house crowd in second round the house hearing will take more time but won't be nearly as controlled as diamond faces more than sixty lawmakers most of whom are up for reelection in november and motivated to capture local headlines so i can take jamie down jamie dimon down in two senses basically just say show us the collateral on your books that supports your multi-trillion dollar balance sheet and of course will be incapable of producing the collateral because it's all been hypothecated or re hypothecated there is no tier one capital at j.p. morgan there is no there there there is no foundation there is no supply and demand there is flow there is a fraud flow flow of fraud which they value that one hundred forty billion or so. dollars in the marketplace but there's no collateral that doesn't exist at j.p. morgan and there of you know jamie diamonds on canada ou

and jamie diamond then gets to lord it over them saying here maybe i will give you a food stamp card maybe j.p. morgan won't this month right so the subsidies that morgan gets are roughly equivalent to the food stamp program yes and but in america turn on fox news who are they hating on who's the one that are the welfare queens you know what if those fifty million people all how bout solves that would be a really interesting zombie apocalypse imagine a fifty million bats solve zombies made a march on j.p. morgan speculators book the employer along this is that well just to confirm this we look at moody's remember they downgraded fifteen the top banks around the world j.p. morgan trading loss drove three level stand alone cut however according to moody's max j.p. morgan benefited from the assumption that there is a very high likelihood the u.s. government would back the banks bond holders and creditors if it defaulted on its debt according to moody's statement. without the implied federal backing j.p. morgan's long term deposit rating would have been three levels lower and its senior

down jamie diamond down in two senses basically just say show us the collateral on your books that supports your multi-trillion dollar balance sheet and of course we'll be incapable of producing the collateral because it's all been hypothecated or re hypothecated there is no tier one capital at j.p. morgan there is no there there there is no foundation there is no supply and demand there is slow there is a fraud flow flow and fraud which they value that one hundred forty billion or so. dollars in the marketplace but there's no collateral that doesn't exist at j.p. morgan and they're up you know jamie diamonds on canada our other countries job owning other leaders that they should reduce their capital requirements on their books now that should not be should be the other way around the rest of the world to be attempting to impose minimum capital requirements on j.p. morgan because right now the good the the book value of the company as reggie middleton has said on the show a few times is a less than a zero. max

speculator and then finally max so here to keep it saying print more money to cover up all our jamie diamond mistake sell off our you know income producing assets to pay off all of jingly diamonds mistakes c f t c chief criticizes swaps bill post j.p. morgan so the nation's top commodities regulator that the united states might they said he was gay. third about legislation under consideration in the house that would exempt derivatives transactions made by offshore branches of a u.s. bank from regulation required by the dot frank act the bill introduced by representative scott garrett republican of new jersey would exclude from the crisis reform statute derivatives transactions between a london branch of a u.s. bank and offshore entities right once again at the end of the quarter when jamie diamond aims to manufacture a loss to reach into that pool of off balance sheet offshore derivatives trading what the now lobbying to be exempt from any kind of reporting standards call that loss out of magical thin air of derivatives dark exchanges and dark pools it winds up on his balance sheet suddenly

jamie diamond explaining how j.p. morgan chase lost more than two or billion dollars attorney general eric holder facing new fire from republicans over the fast and furious botched gun sting programs president obama and mitt romney trade barbs over who understands the economic suffering of americans more caramel of a kid not being greedy and saying your traditional ice cream sundae was special election for the seat once held by the injured congresswoman gabrielle giffords rush is defending its sale of arms to the syrian government but then accusing the u.s. of arming the other side shellie zimmerman is accused of lying about the couple's finances during his april bail hearing eighteen month old is objective from the get away cars those teenagers trying to escape officials following a robbery have you seen one of those sort of freaky looking. apnea masks well there's a new study that suggests they might cure more than just sleeping problems prosecutors lay the groundwork in an already damaging case against the accused

let's move on because we have the solution for jamie diamond we have the answer to the easy treatment he gets on the hill check out our youtube friend r.g.b. anarchies latest video here it is look at that is it's lloyd blankfein jamie diamond's friend and to me cheery bringing in someone else with the big guns who is none other than zeus ok so some greek throwbacks here and zeus really socks that to lloyd blankfein one and for all so dimitri doing his part. i'm really proud to divide against the bankers i'm proud to been involved the takedown of jamie dimon and also later the video they take of paul krugman the aliens take him out because he thought that the aliens were going to actually save us with this whole like plan of our you know if they're going to do some crazy you know spending policy well they took up paul krugman they took out his crazy ideas so i want to know when i want to when i'm going to take out someone. dimitri you can't thinking about al gore i just offered to salt i'm too soft or soft the reality it's not actually i don't have something we don't you go ahead shann

jamie diamond to testify on his bank's massive three billion dollar loss last month rather than asking tough questions about how something like this could happen just how reliable our banking system is and whether or not this proves the new financial regulations are needed most senators on the committee decided it was a great venue to kiss diamonds ring here are a few examples you're obviously renowned rightfully so i think is me one of the most you know one of the best c.e.o.'s in the country for financial institutions you miss this it's a blip on the radar schrank i really appreciate you voluntarily coming in to talk with us some it is important we talk about things happening in the industry it'll i think advise was help us and them. as we look forward and hopefully it'll contribute to best practice scenario in the industry and i appreciate your input on a continuous quality improvement it's comforting to know that even with a two million dollars two billion dollar loss in a trade last year your company still i think had a night team billion dollar profit you made the statement the a

viewers came up with to distinguish between a head and a proprietary trade once and for all since jamie diamond says he can't that more of your feedback let's get to today's capital account. all right let's quickly recap what we're looking at this weekend with greek elections now you could say that the political parties in greece have fallen into two categories those in favor of the two hundred forty billion euro bailout loan of course to extreme austerity measures and those against it now here are the major players were looking at sunday's series the party led by alexis tsipras this is one of their rallies there he is ok he's running on a staunch anti austerity platform he stated publicly that he believes greece will not be pushed out of the euro even if they break with the austerity measures tied to the bailout on the other side we have new democracy leader antonio is some of us now he's campaigned on a platform to keep greece in the euro zone but he's been walking a tightrope of promising fiscal adjustments to ease the pain associated with the memorandum now on june first is the last date op

is another great example because jamie diamond in the group of people he represents particularly after citizens united are basically going to pick the next senate the next congress this is why the democrats haven't been stabbed is one of the reasons why the democrats haven't been standing up to them so you have a guy now who's bank has committed numerous crimes but so many that it's had to get a billions of dollars in fines getting a cake walk through a senate hearing committee because he owns them or what's a bargain started laughing when you did you think that they were tough on jamie dimon yesterday because i can't look at you with a straight of eight years if you honestly believe that of course of course they're pretty light headed they barely understand the issues but let's be clear that part of the reason tell us how to regulate that would give us advice and this is in this kind of capture this kind of regulatory capture happens all the time but let's be clear that if you want to prevent incumbents from remaining in office and beginning to you know we're not the largest of the ov

. >> bill: we'll talk a little bit more about jamie diamond when we come back. and see what you think about mitt romney at the main street cafe. 1-866-55-press. >> announcer: radio meets television. the "bill press show." show host stephanie miller rounds out current's morning news block. >>we're hogging all the sexy on our side. hello! the airplanes are going to get from one part of the country to the other without any air traffic controllers. i mean this is ridiculous and mitt romney ought to know better. i stand with our public employees and cops and firefighters and their teachers?

we should push the retirement age back seventy and you have jamie diamond pushing the simpson bowles plan that basically does the same thing up in front of a group of senators only two of whom haven't received campaign money from jamie diamond then how can you avoid thinking that these guys are really calling the shots in the neither party is really standing up to them well i mean it's interesting that you would bring this example up i think it's a great example and it works very well with the point that i want to make which is that when we're talking about citizens united and money and politics we're talking about the. trying to convince other folks of their own perspective they're not funding candidates they're just trying to get their own message out now there's a different thing from when you're giving contributions to a particular congressman so i would say that it's a good thing when you enable people to not have to give money to a congressman to get your message out and that's one of the nice things about citizens united but what do you think i mean the imam like sheldon adels

morgan and jamie diamond in whether or not jamie diamond's transgressions were really all that bad considering it was just two billion or ten billion or fifteen billion of them got such a huge balance sheet and why are we making such a big fuss over this never did these so-called journalist oversee n.b.c. mention the fact that they are in fact embedded that's right they're there to defend the interest of the bankers not to challenge the interest of the bankers now and this is a report not only are we here to challenge the interest of the bankers but we add another spin and it goes like this jamie diamond is an inveterate loser he's a compulsive gambler all ik it's not a question of how much penalty should suffer for the crimes just committed but how do we trade the crimes he's going to commit in the next couple of months we know he's going to commit crimes there's no laws against committing crimes he's got a huge balance sheet to throw out of the bonfire of his criminal mentalities so all we have to do is figure out how to position our portfolio to benefit from jamie's next crimes because they

executive cufflinks well if you missed it here they are ok jamie diamond wearing not his heart on his sleeve but the president's seal you know i guess it only makes sense i suppose as he had lawmakers wrapped around his finger just bring it all together moving on richard back and since we did that some financial education for jamie dimon and jamie dimon it was on his twitter feed if we could bring it up he showed us to distinguish between a proprietary trade and had a obviously it's joe but jamie diamond it's how he seems to see it at least and finally over three greg maddux said the only thing more sickening then watching the pandering by the politicians and the stonewalling by diamond was the coverage by the mainstream media thank you lauren and capital account the whole team i should add for the only honest coverage of the hearing that i saw well thank you for seeing it that way we worked really hard to bring you it there you can see his comment there now there was also an interesting review or a bit of commentary on this network and i wanted to bring up a passage that actually my