jp morgan chase reached a tentative deal with the justice department on friday. it finalized an agreement that was hashed out for months, that would settle a longstanding issue of toxic mortgages leading up to the crash, but it would not keep them from being held for criminal liability. could jp morgan be held for wrongdoing. $4 billion of the settlement would go to the federal housing finance agency for mortgage back security sales. $4 billion would go to helping struggling homeowners and another $5 billion would pay fines. formerly known as washington's darling, jp morgan's payout is the biggest action to date and may set the stage for more deals with other banks involved in the mortgage securities meltdown. the american government seized two mortgage giants fannie mae and freddie mac and let lehman brothers collapse in the largest corporate bankruptcy in history. it brought about recession that saw massive job losses, wage stagnation, since then the government has set up programs to help main street's financially wounded. in february 2012 a national mortgage s

jamie diamond from jp morgan chase.told investors any liability related to the assets will come with us. he praised his company for by setting aside a d.l. 28 billion rainy day settlement fund and guess what? it's raining (bleep). looks to me like this government settlement is $15 billion less than what diamond thought it might be. the only way this settlement could get sweeter is it if it was tax deductible. >> it could be down to $9 billion. >> because the majority of deal is expected to be tax deductible. >> son of a bitch n. this confirms what i said settlements for malfeasance and donations do breast cancer charities are equal in the eyes of the law. the passion and drive from so many cnbc and financial analysts goes solely in one direction and not in the direction you normally associate with journalism. here is maria reacting. >> i think any time you are looking at the greatest fine in wall street regulation it's worth asking should this guy stay in his job. >> the company continues to churn out tens of billions i

this is the latest of many settlements for jp morgan.n july the government announced the bank would pay $410 million to the federal regulatory commission, for manipulating electricity prices in california and the midwest. last month jp morgan agreed to pay $1 million to u.s. and british regulators, admitting that the traders acted recklessly. the same day regulators ordered jp morgan to pay more than $3 million to customers hurt by illegal debt collection. wednesday the bank agreed to pay $100 million to the comodd dis futures trading commission for the london whale deals. now the $13 billion penalty for selling bad mortgage bonds to investors. that's $14,730 million since july. jp morgan could face criminal charges for mortgage bonds and an investigation over practices in asia. it's one of several banks being sued for rigging interest rates charged to other banks. >> after a summer of destructive wildfires australia is battling dozens of their own, burning near sydney in the blue mountains. hundreds of firefighters are working to contai

is jp morgan still a buy or is bank of america a better one? legal problems are pretty much behind it. >> jpm has certainly been hurt worse, so it strikes me as jpm and the analogy that i would use is goldman sachs. both jpm and goldman sachs were the leading banks and as the leading banks unfortunately, you're the one who gets shot at by the regulators. in terms of regulation, the issue is to make sure wall street finds out who is in control. that's very much what is going on here. yes, yes, there were -- there were problems in terms of the mortgage backed business, but, you know, jpm the well-run firm is the one being focused here. >> talk to us a little bit about the changing sort of environment in which banks are doing business today. interest rates have been rising. the other bank that came out with numbers today, wells fargo, the largest mortgage organize nay tore, with chase, how is that changing their business? when you look into their segments, fixed income, commodities and currencies, that wasn't doing that well, trading wasn't doing

you're also seeing, for jp morgan, this resolved a number of investigations, but this resolved about five different investigations against jp morgan, one of which was an actual lawsuit from the federal housing finance agency. that was for losses that fannie and freddie incurred on bad loans that they bought from jp morgan, from bear stearns, from washington mutual that they bought from those two entities during the crisis. so you're seeing a very dramatic and very tough stance in washington against bankers in general. >> so part of that is defined as $4 billion released for consumers. what's that mean? >> we're not quite sure how that's going to be structured yet. what we do know for sure -- well, what we're trying to figure out, really, actually, is how it affects bondholders. because the people who lost money on these investigations are the bondholders. but it doesn't look as good if the u.s. government gets money back for billionaires like bill gross at pemco. so what we believe they've done is they've structured some sort of mortgage release, maybe principal reduction, maybe inte

is jp morgan still a buy or is bank of america a better one? legal problems are pretty much behind it. >> jpm has certainly been hurt worse, so it strikes me as jpm and the analogy that i would use is goldman sachs. both jpm and goldman sachs were the leading banks and as the leading banks unfortunately, you're the one who gets shot at by the regulators. in terms of regulation, the issue is to make sure wall street finds out who is in control. that's very much what is going on here. yes, yes, there were -- there were problems in terms of the mortgage backed business, but, you know, jpm the well-run firm is the one being focused here. >> talk to us a little bit about the changing sort of environment in which banks are doing business today. interest rates have been rising. the other bank that came out with numbers today, wells fargo, the largest mortgage organize nay tore, with chase, how is that changing their business? when you look into their segments, fixed income, commodities and currencies, that wasn't doing that well, trading wasn't doing

the jp morgan global pmi index is at a 27 month high. you look at things like the baltic freight index---more freights circulating. and so i actually think that the economy is getting quite a bit better. and the thing with the u.s. is that actually credit is starting to circulate now, which has been the missing ingredient from the fed pumping all the money in the system. it's now actually appearing as if it's starting to circulate. > >so who's looking for that credit? small businesses typically? > >small businesses. you also have people---individuals looking for credit. a mortgage company---i believe it was ellie may---actually did a survey and they showed that in august of 2013, 30% of residential mortgage applicants who were successful actually had a fico score of less than 700. contrast that with august of 2012, where it was only 15%. and so credit is easing. and that's actually a decent thing for an economy looking to move forward. > >you've done a lot of research. you're recognized nationally for your analysis of the participation r

and jp morgan strike being a mo. the hefty fine the bank may have to pay. ♪ ♪ news stories?re it on the stream. >> social media isn't an after-thought, it drives discussion across america. >> al jazeera america's social media community, on tv and online. >> this is your outlet for those conversations. >> post, upload and interact. >> every night share undiscovered stories. >> while you were asleep, news was happening. >> here are the stories we're following. >> find out what happened and what to expect. >> international outrage. >> a day of political posturing. >> every morning from 6 to 10am al jazeera america brings you more us and global news than any other american news channel. >> tell us exactly what is behind this story. >> from more sources around the world. >> the situation has intensified here at the boarder. >> start every morning, every day, 6am to 10 eastern with al jazeera america. >>> a suicide bomb attack in southern russia that killed six people is adding to concerns about security at the upcoming olympics. a separate test organization taking responsibility

this is the latest of many settlements by jp morgan. in july the bank was announced to by $410 million to the federal energy which commission for manipulating electricity prices in california and the midwest. last month they agreed to pay $1 billion to regulators, traders acting recklessly in the london oil scandal and jp morgan was ordered to pay $300 million to customers hurt by illegal credit card debt collection. on wednesday the bank agreed to by $100 million to the commodities commission for the london deal. and the $13 billion penalty for selling bad mortgage bonds to invest juniors. it's close to $14 billion since july. they could face criminal charges over mortgage bonds and an investigation over practices in asia. >> let's break-in in john prior. he's been covering the settlement. when you hear about all of the fines adding up, you hear critics say the government has not done enough to crackdown on these banks. is this finally enough is this. >> well, that is the big question. the concern raised from the settlement and the one

jp morgan set aside an additional $9 billion for legal fees. lot of money, i don't know if it makes things better. the final retribution is when the housing market feels the last ripple from that bubble burst. that's our show for today. next time we'll show you wea wearable technology. i'm ali velshi, thank you for joining pu joining us. >>> hello, and welcome to the news hour. i'm in doha with the top stories. families celebrate in lebanon as nine hostages are freed by syrian rebels after more than a year. >> all the people, the citizens have the right to say what they feel. >> police mountain maldives explain why they stopped a rerun of the presidential election. >>> we follow the volunteer firefighters on the front lines

jp morgan set aside an additional $9 billion for legal fees. a lot of money, i don't know if it makes things better. the final retribution is when the housing market feels the last ripple from that bubble burst. that's our show for today. next time we'll show you wea wearable technology. i'm ali velshi, thank you for joining pujoining us. >> hi, i'm lisa fletcher and you're in "the stream." is diversity the key to keeping america competitive in science and engineering? our digital producer is here, and he's bringing all of your live feedback into the program. america was the first and only country to put a machine on the moon, and now people are concerned we're behind

jp morgan will survive. jamie dimon is safe, he has support of his board. he was there running the show -- >> the board he chairs. >> that's right. they have said we're comfortable and we're going to take this hit and go on. the stock hasn't suffered that much. it seems like the kind of deal where the feds can claim victory and bank can say, we did our penance and we're moving on. >> does it impact other companies? >> what usually happens is companies have moved on to some other kind of game or gimmick by now. we're talking about practices that were going on in 2006, 2007. everybody has learned let's not do that anymore and focus on something else. >> let's go back to washington for a second. part of what i think happens when we see the brinksmanship and tactics, part of the goal is obstruction and a smokescreen meant to distract from other things. part of the things that happened in the shutdown in the debt default dance, now quester sequester has become normalized because the democrats felt the fire is other here, we can't deal with that and sequester --

jp morgan misleded of the quality of the housing crisis. the government first wanted $6 billion from jp morgan chase but again the settlement was $4 billion. >>> the decision about criminal charges and reactions from the victim's attorneys. >>> we are in the south bay for a high school football game of the week, it is a real cross town arrival, it is this game, coming up. >>> the one direction that's trending over the next few days. >>> los angeles's high ride building broke out today. heavy smokes and flames on the 11th floor. at least two people were taken o the hospital. the la times report the 1951 building does not fall of state's violation. >>> we are learning of more people becoming ill of salmonella. the sentence for disease control says the out break has sicken 338 people. 40 people has been hospitalized. a consumer group has written to the acc and asking the agencies to step up for protection and protecting consumers. >>> no criminal charge force the firefighter who ran over the survive of asiana crash at sfo. >> reporter: a sad a

what is coming down the pike for jp morgan. this doesn't wipe away the criminal liability. >> they have looked for high profile financial. >> and the summer, the department of justice would decide on crisis from 2008. and they are looking into the conduct of banks. and the source from the toxic negotiations and said that jp morgan chase will likely coptwith the bank and the employees. and before i let you go. and rich joining us by phone. and fdn. and could other banks be next as they look at the size of this one. >> we heard completely about consumer advocates and they have not announced anything like this and we have watched it. >> rich, thank you for joining us by phone. and i want to go quickly back to what we started with. and capture today x. fox news channel is covering the manhunt for the two convicted killers in the state of florida. and just moments before we go to air, we found they were found in a florida motel. their own family members were helping them but they were released based on bogus paper work. there is not

what do you make of this moment last week negotiating on a major settlement for jp morgan and now you're here to talk about a political matter. awkward timing? >> not for me. >> reporter: for the white house? >> i doubt it. >> reporter: jamie diamond about the significance of this moment, obviously wearing a bunch of different hats in different capacities today in a political deal making and obviously, what that speaks to the fact the white house needs these guys, they need wall street to spread the message, particularly among a potentially receptive audience to say the debt ceiling is not something we want to see anybody messing with here in washington, guys? >> well, you know, fist of all, from jamie diamond, he's a class act and real professional and handled that interestingly. it is ironic wall street bankers and president obama have not had a great relationship and now they do have this -- they become new allies. i mean, looking down the way, what role can they play in these current negotiations and to help the president and the country? >> reporter: look, it's a coalition of the wi

why would jp morgan agree to that? >> jp morgan tries thoord wrap it together and put a nice bow on it. the justice department wouldn't let them agree to a deferred prosecution agreement about the criminal charges. >> that's probably because it lends the suggestion they bought their way out of the problem, right? >> i think the justice department wants to show that it can be tougher than it has been in the past. they must believe, i believe the california u.s. attorneys, believe they have evidence whether e-mails or documents to show there might be in fact criminal behavior. we have to see october. that's what is driving the justice department to take a tough line on this. >> is most of this about companies jp morgan bought during the crisis that came about in 2008? >> this is a great point. what jamie dimon and jp morgan executives have us believe that this was a result of buying bear staerns in 2008. i'm hearing the majority of this may be from jp morgan chase's own behavior itself. they've been trying to have people

this is stuff that jp morgan did not do. they were asked to buy bear sterns and washington mutual in a financial croisis. and i know this for a fact because paulson told me this. >> i come on. why not fight it? >> here's why they are doing. it jamie diamond went from the greatest banker of all time and to a critic of the obama administration. you don't have to be a conspiratorist. he ramped up the critique that's when the hammer came down on him. he opened himself up by down playing a loss in london. but it is all victimist and bad for the american political system. >> let me bring ed on it. you think it smells bad here? >> yeah, over the weekend, charlie did a great job of reporting. this wall street is scared. we had the red scare on wall street, they are all scared of what the administration if you speak out publicly against them. why is it 13 billion and not 18 billion or 4 billion. >> it might be 26 billion when we are done. people forget eric holder is throwing a bone to the ambulance chaser community. he is forcing a

wells fargo and jp morgan say home loan applications have been on the downward slide for nearly 6 months.

bank jp morgan will pay a record $13 billion fine to settle bad mortgage securities. it was linked in part to the 2008 financial crisis. >> firefighters in australia attacking some of the worst bushfires are worried that changing weather will make their job more difficult. more than 200 homes have been destroyed in the worst-hit area. >> led poisoning affects thousands every year, particularly children. the wortion world health organization says there are ways to reduce the rick. led exposure is to contribute to hundreds of thousands of cases of children with intellectual conditions. children are at the highest risk, particularly the young and poor. we have this from nigeria's zamfara state where hundreds of children are affected by lead poisoning. >> this is a 4-year-old girl with lead poisoning. she's among many who regularly come to this clinic for treatment. her mother has lost two children already. >> translation: she has seizures and has a fever. every time it gets worse. memories of my two dead children come back. i'm afraid of losing fatima as well. all five c

i own it, as well. >> how about jp morgan? this has been obviously, a very troubled company, at least as far as its legal costs are concerned. are you -- would you be comfortable owning that one? >> i am comfortable to use that word, and i do own it, and it's a little reverse from where we just talked about a second ago, tyler with apple. this one, the stock has actually done reasonable well given the headlines, the $13 billion going to the government, et cetera, et cetera. the stock has been well because the market believes here the management can get through this and i think it is the class name and the class management in the industry. >> what about chevron, mike? it's up 11% year to date. i know it's not in your portfolio but would you buy, sale or hold it? >> if i had to do one of the three, i would buy. i own exxon mobile. huge on managements that perform well over a long period of time and exxon mobile's management has done extremely well and i expect them to continue to do so. i would own exxon rather than chevron. >>

jp morgan and more wilml market

remember that complicated story about jp morgan take over washington mutual and bear sterns? watch it become a lot less complicated. >> somebody needed to do something to prevent a systemic breathdown -- breakdown and jp morgan took over those banks just like wells fargo -- >> can you just say is that a good thing or a bad thing? [laughter] >> jon: and make it snappy, nerd! [laughter] we don't have all day. well, actually we do literally have all day 24 hours 7 days a week. but still good or bad! and wear a tie! [laughter] now watch wolf blitzer. take an analyst making a nuanced argument about the balance in this country between liberty and security. watch blitzer take this cat to j school. >> after 9/11 i think the american people gave the executive branch extraordinary leeway to sort of keep. >> is that good or sphwhad. >> think ultimately it's a good thing. >> jon: it's just not -- good or sphwhad can't believe this dude let himself get blitzed so quickly. let's michel bachman show you how it's done in the timely affordable care act. >> let's go through the points tell me

jp morgan and more wilml market the bonds. potential investors are already asking a lot of questions. >> we want to look at the operations. this is a -- again, its a new asset class and so we want to make sure that the sponsor that has, you know, invested the equity is going to be able to check rent, rerent these properties in a fairly short time period and be efficient about operations. >> reporter: investors want to know how committed the sponsors are to this asset class. will they sell the homes to other investors or hold on for the long haul and where are these homes? are they in good local markets with good economies and good jobs? in other words, will the tenants be able to keep paying rent? >> i believe they have done well but i think it's a little -- it takes a little more develop the coming. >> reporter: with investors pouring $20 billion into single family rentals in the past few years, there is no doubt wall street will look to cash in. the hope is they will also look back at the last run on a clifr new investment p

according to the journal jp morgan has an agreement signed with the fdic where it bought the savings and loans and got protection from any future liabilities. >>> and reports that the most profitable hedge fund is going to plead guilty. patricia is here with the details. >> it is definitely a case of oh how the mighty may fall. according to the wall street journey as part of the settlement with federal prosecutors, capital advisers will plead guilty to securities fraud, and pay the largest penalty ever for insider training $1.2 billion. federal prosecutors brought criminal charges against the firm in july describing it as, quote, a magnate for market cheaters, e-mails indicating the top executives including it's founders steve cohen failed to stop alleged insider training. six employees have pleaded guilty to insider training and one is serving two and a half years in prison. two other men are set to stand trial. now stephen cohen has not been charged with criminal activity, but the journal said he'll remain under investigation. ali? >> a lot of people may not know of sc capital viso

. >> jp morgan and the justice department have tentatively agreed to a d.l. 13 billion settlement. >>13 billion settlement with the government to settle for bad loans. >> they say jp morgan willingly misled people by backing lisky mortgages. >> jon: risky mortgages. it seems like when tom cruise was in that movie and they packaged the loans with a sultry derive actives trader. i remember her. that's why so many traders work in a button down and underpants. $13 billion what lucky bastards are getting a

jp morgan chase has agreed to pay $5.9 million to settle claims about risky mortgage securities.n was accused of misleading the two agencies about the real value of the mortgage securities before the crash. this deal is separate from a still unresolved issue with the justice department that could cost jp morgan another 13 billion dollars. >>> and wall street ended the week with gains. the nasdaq added 41. positive earnings from amazon and microsoft led stocks higher. >>> an incredible story about a bay area athlete makes toilet makes -- athlete makes it to the big screen. >> a livermore man has his name in >>> returning now to our breaking news. s.w.a.t. teams have surrounded a house in a sacramento suburb of roseville tonight. they're looking for a man who is believed armed and dangerous. >> a man is believed to be inside after injurying an officer and injurying three others. >> reporter: in the past half an hour, we've been seeing a little bit of movement down farther down the block toward those bright lights. that is where this scene is. where this suspected gunman is inside a

jp morgan chase has agreed to pay $5.9 million to settle claims about risky mortgage securities.jp morgan was accused of misleading the two agencies about the real value of the mortgage securities before the crash. this deal is separate from a still unresolved issue with the justice department that could cost jp morgan another 13 billion dollars. >>> and wall street ended the week with gains. the nasdaq added 41. positive earnings from amazon and microsoft led stocks higher. >>> an incredible story about a bay area athlete makes toilet makes -- athlete makes it to the big screen. >> a livermore man has his name in lights, the inspiring story next. >>> and a s.w.a.t. team has surrounded -- >>> returning now to our breaking news. s.w.a.t. teams have surrounded a house in a sacramento suburb of roseville tonight. they're looking for a man who is believed armed and dangerous. >> a man is believed to be inside after injurying an officer and injurying three others. >> reporter: in the past half an hour, we've been seeing a little bit of movement down farther down the block toward those

. >>> major snag in the proposed 13 billion-dollar settlement between the justice department and jp morgan dow joins says the massive deal may be falling apart over the inclusion of possible criminal charges against the bank and over liabilityi issues about wht bares responsibility for bad loans tied to washington mutual, jp morgan chase or the fdic. they acquired that struggling lender, washington mutual during the financial crisis from the fdic which federally insures. >>> sears wants to spin off some successful businesses. they are considering splitting the retail and catalog business and auto centers outlets into separately tradedç companies a close some department stores. the plan shares of sears holding shot up 12% to $33 $62. >>> millions may have to keep health insurance plans even if they don't like them and they had to explain why. 3 . >>> today's kick off of the federal reserve's policy meeting of interest rates will be one of the last ones with ben bernanke as chairmen. janet yellen nominated by president obama to be the next head of the fed is expected to have the confirmatio

it's jp morgan's first loss since jamie dimon took the ceo post in 2005. the stock fell slightly to $52 at friday's close. meanwhile,wells fargo had higher profits in the 3rd quarter, but weak revenue. the bank blames stalling mortgage lending and speculation about fed tapering on its bond- buying program. wells fargo closed down 12% at $41. if our postal service is seen as a dying dinosaur, britain's mail service is a dynamic diamond in the rough. the royal mail on friday opened on the london stock exchange and shares were quickly gobbled up. the opening share price off 330 pence, or about 5 dollars 27 cents was bid up for a nearly 40 percent gain for the day. shares closed at 455 pence, or 7 dollars 27 cents. opposition politicians accuse the government of setting too low a price for the inconic institution. it was the country's largest privitization in years. other former state owned companies are british telecom, british airways and bp. retail sales grew modestly in september, but missed estimates. same-store sales were up 4 percent, slightly lower tha

we know that jp morgan and wells fargo reporting on friday. what are you expecting from them not only about the third quarter, but what they might say about the outlook? >> what is interesting, two different scenarios for jp morgan looking for a decline above 14% and the other hand, wells fargo looking for growth of 11% this quarter. the estimate for wells fargo hasn't really moved that much. so, you know, again, the financial sector expected to be a better one this quarter, and we'll keep an eye out for what guidance those companies are giving, particularly wells fargo for mortgage refinancing and the mortgage market. >> john, thank you very much. john butters, senior earnings analyst. >>> and still ahead on "nightly business report", a shot in the arm, despite the glitches in the health care exchanges, will the increased number of insured patients help the long-term prognosis of hospitals and stocks? that's coming up but first, how the international stocks performed today. >>> new york state has released figures on the number of people signi