. >>> shares of jp morgan rose 1.5% today. jamie dimon's tenure and performance come for a vote next year when they decide whether or not to separate the dual role as chairman and executive. he has been criticized for huge losses following trades raising concerns about oversight. according to a report in the wall street ju"wall street jourf it was separated he would consider leaving the bank. if he does leave jp morgan stock could get slammed. shares could fall by 10% or about $20 billion. is jamie dimon the man? what does this say about his performance since he became ceo in 2005? >> jamie dimon under his helm, the stock price has performed better than any other bank ceo. jamie dimon has made investors money. my report talks bet the market value of the company could decline by $20 billion if jamie dimon stepped down as ceo. you would lose somebody who has made investors a lot of money. the other reason is i don't see a clear successor at jp morgan. jamie dimon is very valuable, s to valuable. that is the important point the b

traders and money managers are closely watching today's jp morgan chase shareholder meeting. among them matt shapiro of mws capital---good to have you on the show this morning. > >thanks angie. > >matt, why is it that wall street is so in love with jamie dimon? > > jp morgan, despite the six billion dollar london loss is a money machine and jamie dimon and his great management of the company is really responsible. but of course some of the looseness that created all the profits also created the loss and with some of the insitutional shareholder services wanting to split his role, he doesn't want any of it but i think we're gonna broler something where he gracefully exits over the next year and it's going to be even better for the stock. > > what is the stock telling us right now and especially about this upcoming meeting? > >i think the stock could hit 60. and you heard it here first. its pe is really low and last week we talked about the financials being an attractive sector that hasn't really run up yet and boom---what happens the next day? they're up about 2% and that tren

>> jp morgan's jamie dimon. shareholders vote on whether he could keep the job. >> and apple's tim cook arguing over the tax code and facing tough questions about his big pile of overseas cash. all that and more tonight on "nightly business report" for monday, may 20th. >>> good evening, everyone. our top story tonight is yahoo, the granddaddy of internet search, older, if not bigger than google, is paying more than $1 billion for tumblr, a website that brings thousands of blogs and hundreds of millions of young users together every month. and those younger eyeballs, along with the money they could bring but haven't yet may be what yahoo's ceo marissa mayer is really after. john ford has more now on yahoo's big bet on tumblr. >> reporter: david karp is 26, a high school dropout, and now he's mega-rich. that's because karp is founder of tumblr, the blogging site yahoo just bought for $1.1 billion in cash. >> this isn't a get rich quick scenario. karp has been working on tumblr for years. >> reporter: since she ar

jp morgan caught in swirl of regulatory woes.gulators accusing jpm of regulating energy trading. schemes that transformed money losing power plants into profit centers. we have the co-author with me here. also reporting on the story separately. i i'm going to start with you. i seems as though things have turned recently. they're under a lot more scrutiny than they were before and jamie dimon seems to have lost some of his luster. >> i think you have lost a lot of regulatory actions that have emerged in the aftermath of the multibillion dollar trading loss that the bank experienced last may or announced last may. >> uh-huh. >> since then we have seen a number of agencies investigate the bank. i think at least eight federal agencies are currently investigating the bank and it's for a range of potential violations from, you know, the way that the bank collects its credit card debts to now the latest development in the allegations of manipulating the energy market. >> right. >> kay la? >> it's considering. the energy angle to the sto

federal regulators are chasing potential power-trading trouble at jp morgan chase. the new york times reports investigators are looking at what they call "manipulative schemes" used by the big bank to turn money- losing power plants into powerful profit centers. the scandal allegedly involves bad energy trades in california and michigan. also, a federal energy regulatory investigator reportedly found a top jp morgan exec falsely denied knowing about a similar scandal among energy traders in houston. the bank denies that the executive lied. the new leader of the sec is calling for safeguards against hack attacks. in her first formal speech as chairman, mary jo white was asked about the recent mini market crash april 23rd triggered by a fake tweet. white says it raises questions about high-speed trading and the sec is monitoring the market. she adds the agency is working on a larger role in the global financial system but is not strongly focused on reforming money funds. congressman eric cantor wants legislation that places new restrictions on the sec. consumers call

then there's jamie dimon, ceo of jp morgan chase, who will fight to keep his postion as chairman at an upcoming shareholder meeting. investors and regulators are criticizing his handling of a $6-billion loss. now the state of california has just filed a lawsuit against jp morgan alleging unlawful debt collection involing robo- signing. the sec is banning a former star on wall street from working with clients. philip falcone, who ran harbinger capital, is agreeing to a 2-year ban from doing business as an investment adviser. he will also pay an $18-million fine. however, he will not admit nor deny accusations that he misused client money. among them, he allegdly manipulated the price of high-yield bonds. it was the headline that shocked wall street this week. attorneys for former enron president jeffrey skilling have struck up a deal with the justice department. upon approval, skilling's prison sentence could be shortened by 10 years. enron's collapse led to financial turmoil for former employees & investors. the justice department says skilling's deal allows victims to collect more tha

jp morgan shareholders are going to vote next tuesday on whether to split the chairman and ceo roles. >> while sources say the number is still below a majority, that could still change in the meantime. you can see them in yellow. and they typically wait until the end of the line to cast their votes. there is a big portion of passive shareholders that automatically cast their votes along with what iss recommends. is it roughly 25% all over have all been watching the situation with keen interest saying it could happen to jp morgan it can happen anywhere. >> more than a majority to split the role? and can you imagine circumstances where the board would say we disregard that, he stays. >> they have that option. but at that point if the momentum is going in that direction, it does make the board look bad to evaluate any sort of update whether it's bulking up the risk or whatever. he was approved with 58.6% of the vote by shareholders. we're going to go ahead and have to replace you. >> thank you very much. there are growing calls for the resignation for attorney general eric holder. plus,

jp morgan's return was second only to wells far go. stock hitting a five-year high outpacing its peers. right now you can see it's up about 56% in the last year. these are all arrows. one representative the bank has outperformed its peers. after a controversial 11 day black out. sources say the new york city pension funds are the only sponsor to sign the confiden confidentiality agreement. >> what is your instinct? last year it was 40% voted to split the rolls? >> i think that everyone thought at the beginning of this proposal in february when it first came out that because there was 40% voting in favor, that was before the occ again said we don't have trust in management so there are a lot of issues facing the bank. the last was above 40% but less than a majority. >> and it's non-binding. >> but if it gets to a critical mass -- >> the board would be under serious pressure. >> will have to do something about it. >> we will get the results in about a day's time. let's go down to sue. >> thanks. on this record breaking day, jim joins the

different cases and contexts to respond to the needs of the particular situation and in the case of jp morgan, the company has performed in a stellar fashion. and while it did have a very unfortunate trading event last year, the disastrous trading event. the key is how it responds and how its leadership responds. i think it has generally gotten good remarks. rsh let me take the question and turn it inside out. is splitting the role ever really harmful? what's wrong with it? if there is not somebody sitting in that position already as chair and ceo, then it's very possible that having two separate individuals hold hold those positions could make sense. so the idea to have changeha fo change sake is not necessarily fair to the individual involved and it certainly does not help the dynamic on the board level. >> we have seen so many changes out of washington that were supposed to help make the board stronger and yet still from individual investors you hear a lot. what is your assessment? >> i think there are two points. the latest regulations have been help f helpful the ceo is also chaired and

that's happening at jp morgan. aren't there real problems at this bank? >> well, absolutely.got 250,000 employees. as they say, well over $2 trillion in assets, and to assume everything goes at that bank smoothly would go that way i think is poly anish. i think, however, to assume that all of the sudden eight agencies of the united states government statement plus a bunch of state and agencies are going to sue it at the same time suggest, i think, concerted actions by someone, say, go after the bank. >> right. this is where i think you are on strong ground. i pined about this in the "new york post" and fox business, in context, it's not that great considering all the regulatory scrutiny of him. one of the best things i think you put in the note today, which i thought was fascinating, a great point, only 27 million of the 3 #.78 billion in shares that's outstanding of jp morgan is owned by management. the rest of the shares owned by the public. in effect, the obama administration, eric sniderman, hairing's, all -- harris, all the left wing groups, pension funds, unions go afte

jamie dimon gets a big vote of confidence from jp morgan's shareholders. only 32.2% voted to strip dimon of his chairmanship of the bank. it is one of his two titles. he is also the ceo. after what have come to be known as the "london whale" trading losses last year, totaling $6 billion, some had argued the chairmanship role should go to an outsider. "if he had lost his chairmanship and gotten an independent chairman, that would've been a huge broadcast to the entire industry that too big to fail, too big to jail issues are coming back. but basically what this says is investors have pretty much forgotten about the catastrophes we've been through and the game plays on now." a proposal to split the job in two got 40% of shareholder votes at last year's annual meeting. in oklahoma, damage is being assessed from one of the worst tornados to rip through the u.s. in years. in its first survey, the national weather service says winds clocked in at more than 200 miles per hour, indicative of an ef-5 tornado. at least 24 people were killed in the storm's path, incl

jp morgan chase offers more than 100 mutual funds that charge anywhere from less than 0.5% to more than.5% annually. i want to get your reaction to an example that jack bogle gave us, and that is that if you invest over a 50-year investing lifetime in a mutual fund making 7% a year on average, but you're paying 2% in fee for that, that that 2% will erode something like... two-thirds of your gains. >> so the lower fees relative to any given investment will always result in a higher accumulation. >> smith: but is his example correct? i mean, it's shocking that you would be giving up two-thirds of your... >> so i don't know the math behind the example that you're citing. >> smith: but does it sound correct to you? >> it sounds... it sounds high. >> smith: it had sounded high to me as well. so i took bogle's advice, found a compounding calculator online, and used a simple example in order to isolate the effect of fees. take an account with a $100,000 balance and reduce it by 2% a year. at the end of 50 years, that 2% annual charge would subtract $63,000 from your account, a loss of 63%, lea

it depends on how largely they look at the trading loss that jp morgan had and how that impacted the company. >> you get a lead director in there. >> jamie dimon under fire. there are others. >> the energy giant has, which is the middle of a battle with elliot management. elliot nominated five new directors expecting that their guidance will end the chronic underperformance. hess is countering saying they want to sell the company off in parts. >> it would split the role of the ceo and sherman. >> it is acknowledging the problems. they are stalking at it saying it's not going to change. this is certainly a meeting to watch. >> the top of the corporate ladder looks shakeyer these days. >> these are non-binding, aren't they? >> you can take them under advisory. >> and she has, for example, . >> you always nod them in. >> this man's belief that dell may not be as bad off as most people think. that there is really true value there. no one surprised the pc market. >> well, we also asked him about wh what. >> i asked him, should michael dell be fired. >> he's not going to be running the com

jp morgan said it endorses dimon. billionaire warren buffett also offered his support for dimon this week. health insurance company cigna is setting up health exchanges in 5 states ahead of the requirements under health care reform. starting october 1st, cigna will sell health insurance in arizona, colorado, florida, tennessee and texas. next year, under the affordable care act, all states will be required to sell healthcare through exchnages so americans have competitive choices. cigna's ceo tells reuters setting up the exchanges won't likely be a top- or bottom-line driver. meals on wheels is facing a crisis. the government-funded program, which sends meals and company to about 25 million americans, will encounter a budget drop. sequester cuts have reduced meals' budget by about $38 million. the white house estimates 4 million fewer meals will be delivered. the organization itself estimates about 19 million will be affected. it's not just college tuition that is going up. financial aid is at record levels as well. t

jp morgan, wells fargo, bank of america and citigroup reportedly have provided $51 billion in aid to more than a half-million people. however, a consumer advocates group says much of the relief is from banks cleaning up balance sheets with short sales that forgive the debt of homeowners. higher demand is forcing u.s. automakers to shift summer production plans. general motors, ford and chrysler are reducing traditional two-week production breaks down to only one week. automakers hope the changes will help them meet the added demand, as consumers have started buying more cars and pick-up trucks. in an update to investors, the president of boeing says the dreamliner fix should be complete by next week. ray conner says work is done on 90% of the jets. the lithium ion batteries onboard sparked fires, which lead to the faa grounding the 787s in january. production of the dreamliner is said to be gaining momentum. boeing expects to have built 60 by the end of the year. sony reportedly will entertain the idea of an ipo at its shareholder meeting today. sony is being pressured to spin off it

brown and david vitter requiring banks with more than a half-trillion dollars in assets, such as jp morgan chase, citigroup, b of a and others, to hold capital reserves of 15% - a much higher standard than exists today. a hedge fund founder is using tough talk to keep employees in line. cnbc reports sac capital founder steve cohen told investors the hedge fund would impose compensation clawbacks on employees who break rules with stock trades. cohen says it's to "deter conduct that threatens the integrity of the firm." sac has been the subject of insider trading investigations. intel's new leader may switch things up a bit. company veteran brian krzanich takes on the ceo role in two weeks, after paul otellini retires. krzanich is expected to steer the company in a new direction. analysts say he may turn over some production facilities to other chip-makers, as the industry switches from pcs to tablets and mobile phones. intel is first in the pc market, but has been slower to enter the mobile world. warren buffett has some encouraging words for working women. in an essay out this week, mr. bu

companies - including apple - have about $1.7 billion in other countries, according to a report by jp morgan. cook wants that money to go toward u.s. job creation, research and development. also on the agenda in dc this week, the house is expected to vote on a bill allowing construction of the northern section of the keystone pipeline. republicans believe it will create jobs. the bill overrides the need for a presidential permit according to thehill.com. president obama stands opposed to the keystone xl pipeline, which would carry tar sands oil from canada to the gulf, because it could harm the enviroment. on friday, the president told a crowd at an equipment company in baltimore he's using a "presidential memorandum" to cut through red tape for his infrastructure projects. "i want to put people back to work improving our roads, our bridges, our airports." the president says he will continue to try to work with both parties to get progress out of congress. relaxed rules on fracking are causing a bigger divide between the obama administration and environmental groups. the u.s. department of t

we had a large investment recently by jp morgan chase into our loan fund. we are looking for businesses that are looking to put in more energy-efficient equipment or retrofit or remove toxins from processed here we have been lending to drive cleaners that are giving you more environmentally friendly products, truck drivers putting in new exhaust systems. finally, just to give you kind of a scale of what we do, mark mentioned the sba right guaranteed 275 loans in a year. we expected to 50 or 60 in san francisco this year, and more like 250 or 300 throughout the bay area. if you are hearing something interesting and you want to talk, the dominant in the purple suit has been handing me question cards out. >> i am the ne community federal community union. we are like a bank except we are nonprofit. we are 501 c 14. we are insured up to 250,000. we build credit. what we do a lot is one-on-one counseling. we are also a part of the bank of san francisco, so we do pay their lending -- payday lending. we help people build up their credit before helping them to get a

goldman sacks and jp morgan say they are still waiting for a response from bloomberg. six questions bloomburg has yet to answer. including one executive's new win and whether now appropriate changes have been made. >> the biggest question is how the information will be used. >> there is no money in this next story. it is all heart and very heartwarming. take a look at this. this is 9-year-old ela inia adams throwing out the first pitch. she was told she was chosen by the uso because her dad had been in afghanistan for two years. the big surprise as you can see right here, her dad had come home and his first stop was to catch that first pitch. sometimes there is really crying in baseball. certainly has me welling up with tears today. >> that is a beautiful little thing. a lot of things baseball gets wrong but it's moments like that that make baseball really a beautiful american game and make them very relevant indeed. >> no crying on the hill today but it was close. >> the research firm clsa upgrades gm to buy on improving sales prospects. more power to you in two minut

illegal practices she says jp morgan chase is committing. >> no dars cars, no back ups. why is caltrans spending hundreds of millions here when it can be helping us like this? it's an abc 7 news investigation. >> we need that here in the bay area. >> that is this edition of abc 7 news at 6:00. >> from all of us here have a terrific evening. this is the "jeopardy!" college championship. here are today's contestants -- a sophomore from azusa pacific university, from lakeside, california... ...a senior at stanford university, from carolina beach, north carolina... ...and a junior from bowdoin college, from charlotte, north carolina... and now here is the host of "jeopardy!" -- alex trebek! thank you, johnny. and welcome, ladies and gentlemen. well, nice to see a california connection or a possible rivalry today with bill and jack here. and cindy may benefit from that rivalry. let's find out now in this half-hour. here comes the jeopardy! round for the three of you. and here come the categories. first off... of course it's may. we know that. each correct response ends in the

that's just shy of jp morgan chase, bank of america, citigroup and wells fargo's profits combined. senate banking committee democrats like elizabeth warren criticized the margin saying in part the fact that the government is now expected to profit $51 billion off student loans this year, more than the annual profit of any fortune 500 company and five time the profit of google is just plain wrong. i paid 8.25% of my loans and then put them on 0% credit cards and kept rotating until i tad it off. yeah, i did go to school, barnicle. thanks very much. >>> let's go to business. the banks will score a major victory with trillions of dollars on the line. later this morning, federal regulators walk back the proposal to weaken the dominance of several banks in the derivative market. big banks control is seen as the largest contributing factors of the financial crisis and yet just five banks still krl more than 90% of the entire market. for more on this and the rest of the day' headlines, let's go to charn cho. this is like a $700 trillion deal here. give us some details. >> brian, good morn

jp morgan is a great example and i want to know more. >> he strikes me as the news equivalent of frontkay. if i understand this, they looked at unique user ids. no small things. that could be the federal reserve. that could be the federal government. that could be the trading floor. that's got to be stopped. they should not have access to unique user ids. until he does, you guys are not going to be safe. you are not going to be safe. >> i agree with you 100%. i'm just saying that i wasn't particularly surprised about this. >> how much different is it than actual twitter hack? >> all right, men, thank you very much. >> the twitter hack does not get into the kinds of trading details and information details. bloomberg -- >> it's different. >> it's similar but doesn't go to the heart of the issue. my friend has not ruled that out. he has not slammed that door. >> a story we will continue to follow, obviously. today on the big data download does the scandal highlight the need that double as news organization? you can see it today. >> he is with us with his wisdom. >> waiting patiently. >> i

jp morgan looks very cheap. one of the cheapest bank stocks out there. looking for income. they raised their dividend 50%. again, very high quality industry leaders. what you don't want to be doing is trading down into junk at this point. >> three of the company senior executives asking to appear before a grand jury. the three executives and chief compliance officer as well as its head of trading. this is all part of an insider trade i trading. already nine current or former employees have been charged. as for today's news about those three officers receiving subpoenas, sac declined comment. >> can i jump in? do we know yeah or nay whether mr. cohen has received a subpoena? >> there was talk of it last week. >> larry ckudlow is in the hous. if that wasn't enough, we have danica patrick coming up ahead of her big race this weekend in charlotte. power lunch is back in 2. [ male announcer ] what?! investors could lose tens of thousands of dollars in hidden fees on their 401(k)s?! go to e-trade and roll over your old 401(k)s to a new e-trade retirement account. none of them cha

illegal practices she says jp morgan chase is committing. >> no dars cars, no back ups.rans spending hundreds of millions here when it can be helping us like this? it's an abc 7 news investigation. >> we need that here in the bay area. >> that is this edition of abc 7 news at 6:00. >> from all of us here have a terrific evening. in new york city's war on crime, the worst criminal offenders are pursued by the detectives of the major case squad. these are their stories. 185, 190, 195...

the cio losses were really an aberration but jp morgan has florished and never had a loss. >> appreciate it. up next on street signs, japan's market is on fire. but do you care? should you care? we will let you know. >> could homeownership actually be a bad thing for jobs? later on in the show, in a really long time. we are looking at the great gatsby gamble when we return. [ male announcer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade. >> a quick look at the markets for you. a little bit of a breather out there. we're on our third straight weekly gain. the two biggest gainers are tech names. down there in the bottom, reading to what you like. it may be a strong story for the companies and maybe globally resourcefully related. >> the bull market in bonds likel

look at jp morgan when they found all the types of stuff that were going on there. that had huge implications for that bank. we're told that the checking and supervision is rigorous. surely some things have changed. >> the question comes down to whether or not the rules of the game have changed. the question is is the game still being played? one of the things i come to this is when i originally started writing about corporate fraud was back in 1988. i kept going for 20 years and i am still going in the end, what you have got is different ways of cheating emerge. different ways of making money when, you know, it's there to be made. one of the things about wall street is if you say know, you don't get your million dollars. if you say yes, you do. people are going to keep saying yes that deal is going work. yes that stock is going to come up. >> the reaction here today was astonishment. why have you got this guy on the television in i will take the analysis from you. thank you for your time. the last day of trading here on main. the bond market has swooned. that's rea

jp morgan chase and ceo jamie diamond gets to find out if he if he gets to keep both jobs.voted to split both positions. the vote could be viewed as a vote of no confidence. >>> there are plans of a union city teacher who molested students and what they are saying about a list and how it reportedly was used. >>> when he was heating up, how long is he expected to be out of rotation . . >>> welcome back, disturbing new details about a union city teacher accused of molesting his students. the contra costa times reports one victim told police he had acutest girl list and investigators say how he used arts and crafted projects to keep girls on the list inside during recess and how he is inappropriately touching them. he is due back in court, january 5th -- june 5th. >>> the boy was with his mother riding his bike in across walk on roan -- roaner cross expressway. he did not realize edit the boy. he returned to the scene after being flagged down and the boy was not seriously hurt. it has burned done down. -- burned down. police are calling mcphee a person of interest. he was deta

know, it was reflecting on the luncheon today and remarking at ted's expression of our gratitude to jp morganr sponsoring the lunch. it reflects a kinder gentler wall street that they would sponsor a lunch for the head of goldman sachs. [ laughter ] >> i know it's a big group. but no one tell jamie that i'm eating his lunch. it gets him very upset. so that's -- [ applause ] we will rely on the honor system. >> let's talk about the u.s. economy. >> it's a good place to start. with so much else the picture is pretty mixed. on the one hand, we have seen some improvements. that has got to be admitted. in addition, although unacceptably high, is at a four-year low. the housing market shows some signs of recovery. durable goods orders have been increasing. what are the indicators that you're watching most closely about its expectations for tomorrow? >> i think most people think that not without ris or try to. but i think we're going in the right direction. there is a lot of great factors. i can't really -- i can explain anything that has already happened but if you gave me the set of circumstances

>> because when you look at the big picture and you look at the jp morgan stock since the beginning of 2008, it's the fourth best performing stock. it's up about 9 or 10%. bank of america and citigroup are down over 70%. yes they made an error with the trading with the whale and he's admitted that. he didn't handle it very well. the regulators have corrected the situation. there is no proof that it will make the stock any better. >> pnc right? >> pnc and for the risk on investors it would be citigroup. if you want a growth, citigroup to us is the real turn around story. >> thank you very much. coming up. >> see how they are benefitting from a sad stat. [ male announcer ] with wells fargo advisors envision planning process, it's easy to follow the progress you're making toward all your financial goals. a quick glance, and you can see if you're on track. when the conversation turns to knowing where you stand, turn to us. wells fargo advisors. so you want to protect your place from burglars? buy a lock. buy a dog. mow the lawn. get a sign. hang curtains. plant something thorny. buy anothe

. >>> the california attorney general filed a lawsuit against jp morgan chase.t card holdards in california. between 2008 and 2011 they filed thousands of debt collection lawsuits every month using practices that violate california law. it included robo signing documents. >>> welcome to san francisco's big day. a look at the massive project and the unique name given to one of the machines. >> and a human head discovered at a recycling center and one thing that will help in the investigation. ./ú =/v8s q [ male announcer ] at montrose pet hospital, anarchy meets order. working with at&t, doctors set up a broadband solution to handle data and a mobility app to stay connected with their business. so they can run the office... even when they're not in the office. where do you want to take your business? call us. we can show you how at&t solutions can help you do what you do... even better. ♪ >>> today be get a look at a monster machine that is key to san francisco's big digs. mail mail and leaders -- mayor ed lee and leaders trooped out. it will link san francisco w

what happens to the stock if the jp morgan boss loses his chairman title tomorrow? but first, the top story. stocks may be at record high but one group is missing in action. commodities. the worst performing asset class year to date. so our question today, can this space turn around any time soon and what your best plays? we're trading. how about it, joe? this thing going to turn around any time soon? >> i think part of the complex turned around. silver which was down and made a fresh low earlier this morning, that's higher. gold is not broken below the april 16th low down to 13.21. crude oil seems to be the place of opportunity, i'm long july futures right now. when you wake up in the morning and see gold down and silver down significantly and oil is higher, it kind of makes you wonder there's some fundamentally strong about energy over the last month. i think that's validated by the price action. >> baker, can we get any pick-up to the level, near the level we have seen in some of these leading sectors? do commodities play along? silver's lowest level since 2010.

jp morgan would be more vulnerable than a variety of other companies in the market place.ure, everybody is affected if the credit market started to affect the equity markets, but be with strong companies rather than weak ones and finance is an intreg -- integral part of the functioning. on the other hand, the valley would be there strong. david: jamie dimon and the dividend. what about japan? good companies there, too, and, in fact, when we saw the 7% pull back last week, there were buyers going in. >> yeah a nice bounce, 1.2% bounce recently. i think you got to stay with the u.s. when i think you buy some of the companies. i mean, look at europe here last year. they were completely falling apart. greece completely dire as well as italy, and, you know, the u.s. was one of the best performer equity markets because it seems to be the most sheltered riiht now. avoid japan and look and stay within the u.s. and stay with the good companies you guys mentioned. liz: you know, you look at all that's happenedded, and there's still no flight to the old sort of corners of quality lik

liz: jp morgan shareholders are splitting dimon's duties, will this help or hurt the company? hurt companies that undergo the split? a new study examinedded 309 companies that split ceo and chairman responsibilities. ryan carry out the research for indiana university's kelly school of business joining me now in a fox business exclusive. let's get to it. what did you find here? everybody wants to know if it makes a difference. >> well, in pure academic fashion, of course, the answer is it depends. liz: uh-huh, ha-ha! >> what it depends on, fist of all, thank you for having me. liz: of course. >> what it depends on is how the firm is performing when they go through a separation, so we conducted this study collecting data on 300 firms between 2002-2006 that underwent a ceo board chair sprangs with two interesting things. one is that the only type of separation that impacts performance is a demotion separation where the ceo remains the same, but a new independent chair is brought in. the other types were you keep the chair position, but bring in a new ceo, don't matter. the demoti

jp morgan's jamie dimon holds on to his grip as chairman ask ceo. -- and ceo. what will it mean for the stock in the future? our guest breaks down exactly how much you're paying for the jamie dimon premium. and open chat. the bloomberg terminal snooping scandal brings goldman sachs and thomson reuters together to find a new way of secure communicating. let the competition begin. "countdown to the closing bell" starts right now. ♪ ♪ liz: good afternoon, everybody, i'm liz claman. it's the last hour of trading. listen, we've got several developing stories we need to tell you about. first up, embattled herbalife trading higher as the company at the heart of that battle between bill actman of pershing square capital and carl icahn, trading at herbalife was briefly halted this afternoon pending news that herbalife has announced the hiring of new auditor pricewaterhousecoopers. their previous auditor, kpmg, they were out one. they had to jettison kpmg. right now the stock is getting the nod. look at herbalife jumping about four and two-thirds percent. we're going to

and jp morgan under fire, an exodus of high profile departures and a slew of federal investigations. and is the ceo jamie diamond losing his midas touch? >> that's top of the hour. we've been talking about the big day on s&p 500. so where do we go from here? let's go to the floor of stock stock. steve grasso of stewart frankel joins us. i bet you and most of the guys down there had to be taken by surprise with that number this morning. >> yes, to a certain extent. but it didn't really -- it almost didn't matter. so, you know, everyone's been buying this market. it had to be a terrible, terrible number for it to really matter in the marketplace. we were bumping up against 1600 since april 11th. once you bump up and then breakthrough, the rest everyone has to dive into the pool. >> there is reason it would and could be terrible, right? given what last month's number was. given what adp was earlier. there is certainly more reason to think it was a disappointment. now you have the market that the s&p 500 at least hitting 1600, the do yw hitting 15,000. what is the next important number t

we saw just a year ago right now jp morgan chase and the london whale those banks are taking on big,isks as we saw with the scandal, big financial institutions out there rigging the market on interest rates so it is not as if the big financial institutions said, hey, we admit it. we get it. we understand and are backing up. we dial down the risks. instead we're caught in this back and forth. too big to fail and taking on risks and sucking up profits. leaving the american taxpayer on the hook if something goes wrong. i think that is fundamentally wrong. we've got to fight back against it. >> senator, i want to definitely have you back to talk more about wall street. before you go i want your thoughts on being a massachusetts senator, having represented boston. the house held its first hearing on boston today and we know the boston police were not informed of the russian, the russian government flagging tamerlan tsarnaev. does that concern you? >> of course it does. you know, this is what we have to do whenever there is a tragedy. we have to go back and look and see if there was someth

>>jp morgan reported a 47% increase in income for the 4th quarter.bank of america said they hope to raise dividends. >> narrator: meanwhile, a freelance journalist and blogger named teri buhl was sipping cocktails in connecticut. >> i was actually at a fundraiser in greenwich, and i met a man running for congress. and he told me about a documentary filmmaker, nick verbitsky, who had been collecting a lot of interviews from bear stearns employees. >> so i go out and i find a borrower, and i lend this borrower $100,000... >> i actually had a friend who put me in touch with a couple of people who ended up in the film-- people that worked at emc mortgage, which is bear's mortgage conduit, is really the factory floor of their entire mortgage operation. >> the problem with due diligence is it's very costly. >> we went through about three to four hours of multiple whistleblower tape detailing a massive fraud at the highest level inside of bear stearns against its own clients. >> narrator: buhl wrote a story for the atlantic monthly's website featuring two b