jp morgan will pay a settlement for failing to alert about the file. >> jp morgan as an institution failed and failed miserably. in part because of that failure for decades berni madoff was able to launder billions of dollars essentially through a single set of accounts at jp morgan. >> now as part of the settlement jp morgan is admitting it violated laws to monitor activities for money loppeddering. it said it could have done a better job and is improving it's practices. estimates of madoff victims lost $17 billion. judith joins me now to explain how shwhat she's learned. it's been five years, how do you feel about this? >> i've moved beyond. we sold our claim a year and a half ago, i took my name off all the websites. just said that's it. it's over. >> you know, i so want to tell my viewers what they can do to avoid getting into the situation you got into. what can we tell them? >> nothing. as far as i'm concerned we haven't changed the laws. we're chasing, thanks to the trustee and some of the law people what's happening, but i think its happening every day. we read about another ponzi

. >>> more now on jp morgan chase and wells fargo. both banks posted quarterly earnings that beat analysts forecasts. jp morgan's net income would have been higher if the bank didn't have to pay billions in legal fees and settlements for past wrong doings. profits at wells fargo were a record $5.4 billion on the modest beat of a dor per share. even though mortgage lending was cut in half cue due to rising interest rates, interest income from a boost in customer deposits rose sharply. the bank's chief financial officer is optimistic about the future. >> what we're seeing is good growth reflecting an improving economy and our ability to go ahead and take share from many of our competitors. >> despite the upbeat comments, shares of wells fargo and jp morgan were both relatively flat today. now, tomorrow we hear from bank of america and then later this week citi group, goldman sachs and morgan stanley. >>> here to give us a more analysis on those bank earnings and a look ahead to next week is fred cannon, director of bank research at the

jp morgan gets hit with a $1.7 billion fine. but will the penalty change banker behavior. >> regaining its fizz. why the bulls are piling into shares of coke after a flat performance last year. all that and more on "nightly business report" for tuesday, january 7th. >>> good evening, everyone. bitter cold temperatures across the country in all 50 states, even hawaii, forced millions of americans into hibernation today. freezing temperatures with below 0 wind chills shut down many companies, stopped trains, grounded planes and caused power outages for thousands of homes and businesses weather experts say the dramatic drop in temperatures today, as much as 15 degrees below zero in some sections of the midwest, may be the coldest day in the u.s. in almost 20 years. it's a phenomenon they call the polar vortex. one beneficiary of this deep freeze, natural gas. for the second day in a row, demand hit a record. prices pulled back late today on hopes the cold snap will soon end. jackie deangeles has more. >> reporter: yeah. it's cold o

jp morgan shave said it was largely due to the takeover of bear-sterns years earlier. and then there was the crime settlement recording the berni madeff ponzi scheme. despite the uproar the bank stock price rose 33% last year as the company reported profits of nearly $18 billion. and with no clear susser in line critics say dimon's job seems secure. >> if i was a shareholder looking at these compensation i would be outraged. in essence, here's a ceo whose just got paid $20 million, and as a shareholder collectively we've just paid out $20 billion in financial settlements. >> but so far shareholders have proven as long as dimon delivers his job is safe. mary snow, al jazeera america. >> today on twitter and facebook we've been asking you after paying $20 billion in fines jp morgan chase is giving jamie dimon a raise, should he get it? >> sure they should. it's the keel of the lifetime, they'll write most of it off and still come out ahead. >> tell us what you think or leave us a comment on facebook. walmart is laying off 2300 workers at sam's club, eliminating middle ma

i love goldman sachs, i love jp morgan, i love the entire financial sector so if you wanted to play it just on a macro basis, you can go into the etf or the xlf, but really goldman and jp morgan is what i'm watching. > >what would your play be on the consumer and consumer spending just for everyday goods? > >the economic news has been pretty good. i like the consumer staples industry. i like the procter and gambles of the world. i like coca-cola quite frankly. these consumer staple stocks---the ones that have just not really outshined the market but have just trended and stood through the marketplace as rates got incredibly low---these are also going to shine this year. > >will the sun shine on alternative energy stocks this year---such as solar panel stocks? > >i do like it and i think there is going to be so much more money spent on r &d in these stocks and there are two in particular that i like. first solar and then a company out of china called csun--china sunergy. > >moving on to sectors that you would stay away from in 2014.

jp morgan had the money, they could afford to pay it.ersely affect the operations in the future. >> it's a great reminder to be successful. >> and do well, because the government will come after you. >> when you go after somebody in such a strong way and you put them out of business, it's not a good thing for the country. if you put jp morgan or equivalent business out of business, that's not good business. >> is there any way they could do it where they didn't indemnify them for the bad behavior of the companies they acquired? did they get enough buying those troubled companies for making up for taking on all their liabili liabilities? >> i think in the future when you have problems like this, an organization like jp morgan is asked to take over for the federal government, they will probably get indemnification. you can't have subsequent regulators coming along saying that. life is unfair as we all know. this was probably not the fairest case of the government regulating a financial institution. no doubt jp morgan would not have bought,

the news on jp morgan. they have agreed to billions that they knew obvious warning signs to the bernie made us ponzi scheme and failed to report them to authorities. what the allegations amount to a much jp morgan has admitted. >> it looks like jpmorgan had concerns that bernie made off was running internally. they were saying the returns are too good to be too. all that good stuff. they failed to escalate that you proper regulatory authorities. >> are they required too? >> yes. all banks have to have a very have the they compliance program. >> know your clients. >> in failing to do that, it cost them $1.7 billion. >> the money is going where? >> according to the southern district, it will be going to madoff victims. we do not have any details on that right now. commented ongan this at all? they said this is jamie dimon just wanting to start 2014 with a clean slate eared they may not be as culpable as it sounds. we cannot go through the ringer anymore. we have arty pay the 13 billion fine at the end of last

we are still going to talk about jp morgan. how long has this been going on? had a pretty busy year in 2013. they had close to $16 billion for various wrongdoings. we're starting off the new year with a $2.6 billion fine for issues related to madoff. >> what did they admit to if anything? >> j.p. morgan has deferred prosecution agreement. they admitted to and were able to skirt criminal charges even though they are guilty of criminal wrongdoing. for failing to filesystem issues activity reports and failing to flag people. they knew there were returns that were too good to be true. they do not run it up the flagpole or alert the proper authorities. in the end they had to pay two -- $2.6 billion. >> is there a breach of fiduciary responsibility? >> absolutely. it is failing to comply with the bank secrecy act, failure to comply to laundering controls. a lot of this is control space. >> it is real money. >> there is mortgage investigations for the whole party. another gaggle of billions. >> 1.1. for the whale. >> it is always curious to see how these get gerryman

we are still going to talk about jp morgan. how long has this been going on?ey had a pretty busy year in 2013. they had close to $16 billion for various wrongdoings. we're starting off the new year with a $2.6 billion fine for issues related to madoff. >> what did they admit to if anything? >> j.p. morgan has deferred prosecution agreement. they admitted to and were able to skirt criminal charges even though they are guilty of criminal wrongdoing. for failing to filesystem issues activity reports and failing to flag people. were returnsre that were too good to be true. they do not run it up the flagpole or alert the proper authorities. in the end they had to pay two point $6 billion. >> is there a breach of fiduciary responsibility? >> absolutely. it is failing to comply with the bank secrecy act, failure to comply to laundering controls. this is control space. >> it is real money. >> there is mortgage investigations for the whole party. another gaggle of billions. >> 1.1. see howways curious to these get gerrymandered. in this case you had the bank supposedly

obviously jp morgan, citigroup, bank of america has the headlines.glomerate, supermarket big box banks. but my major bank holdings are in northern trust and us bank corp. they are a little smaller, a little under the radar and i think they have a little bit more profits. none of these banks had the huge write downs or the legal fees of the financial crisis so you have a little bit more clarity. i think they appeal to slightly more conservative investors that don't want to be in the headlines. >>let's break it down. what do you expect performance wise from northern trust? >>it's coming out with earnings next week. the stock hit an all time high around 61. what happens when interest rates short term start to go up that plays actually right into northern trust's hands because it's the second largest custody bank after bank of new york mellon in the united states. so that's one of the big factors about why i like it as an investment. >>what do you expect from us bank corp? what do you see in the charts? >>again, us bank corp has hit a high. all the banks

he's chief investment officer with jp morgan private bank. richard welcome. happy new year suessy asked if the economy is improving why are stocks tumbling? >> two separate issues, developed markets in the u.s. you've got to put into perspective the sprint that we saw last year in markets. i think people are more tired than nervous. they're processing the direction. but steve touched on this in terms of the adp data tax you're seeing stronger labor markets, stronger growth. people are trying to get their heads around what happens in valuation. but we saw a very constructive outlook for u.s. markets. >> so you're actually positive for this year and next year, 2015. what drives that? and what is going to be the telltale signs? >> sure. when we came into last year we sent a note out to clients. we said it was the year of rational exuberance. markets were cheap. people were hesitant. they were fearful of less tail risk. you saw a lot of people very concerned about the world erupting and going down again. what happened because of it? you watch people very begrudgi

how is jp morgan still a bank? and how is jamie dimon still the ceo?> well, jamie dimon is very popular in wall street. his bank put aside $23 billion just to pay different -- they expect settlements of about a dozen investigations that are still on going. so on wall street they view his profitability. that's the mark by which he is judged. and jp morgan if you put aside the settlements is a highly profitable bank, the biggest bank in america. that is how he keeps his job. >> let's take out the intense admiration on wall street for jamie dimon. what about in our halls of justice? >> well, he has had to come into the justice department, very rare. you see the attorney general brought in jp morgan ceo dimen to do face-to-face negotiations in recent months. i think one of the things that keeps coming back is the last time the big banks that failed in 2008 was lehman brothers. a lot of people in government don't want to see that repeated. they don't want to see the chaos that that caused in the u.s. economy and global economy. so you have the real fix that

that's after jp morgan's profits fell 16% last year. also agreed to pay out nearly $20 billion to settle legal claims from government agencies and private investors. diamond's pay restores most of the 11 1/2 million dollars that was cut when his salary was halved in 2012. directors imposed the cut after the bank lost six and a quarter billion dollars on a controversial trade. >>> bart nay or is a former chief investigate or for the u.s. banking committee: >> the directors unfortunately are not the independent people that we want them to be. they are not necessarily the winners of america's, you know, best talented director. they are recruited by boards and carefully groomed to make sure they are not the type to ask tough questions, so after jamie diamond fails to manage well this 4 trillion-dollar company witness booed i the london whale more apparently not obeying the rules, witness the biggest fine that any company has ever paid in united states, $13 billion in one fell swoop in $20 billion overall and yet the board decides, okay, we

this is a huge loss for jp morgan, but since no one running the bank will go to prison or face fines, some might think this is an enormous win for the bank. once upon time the government imprisoned people who caused debacle to the financial industry. thing enron. but wall street is too eager to profit off risky behavior that could ultimately hurt the public and we're learning that the price for that behavior is falling on banks and their shareholders not individuals who may ultimately have been at fault. >>> obamacare has more people getting covered. that may push healthcare prices higher. i'll show you how to push them back down. i'm ali velshi. >> welcome to al jazeera america. i'm thomas drayton, here are the top stories we are following this hour. a u.s. military helicopter crash in the u.k. claimed four lives during a training mission. the incident happened near the east coast of norfolk. authorities are investigating. >> the first batch of deadly chemical weapons left syria. it was loaded on a danishship and will be destroyed aboard a specially designed american vessel. >> syria

jp morgan chase admits paying penalties for bad behavior-- pinched profits.the bank reported a 7% slump in earnings.and has spent nearly $20 billion in settlements this year. however, jpm still managed to exceed revenue exceptations for the quarter.wells fargo's 4th quarter earnings increased 10%. the results included signs a drop in mortgage refi's could hurt. still, wells came in with a record $21.9 billion dollars, outsizing jp morgan's $17.9 billlion. making wells fargo the most profitable bank in 2013 even though its much smaller than chase. japan airlines reports a maintenance crew discovered smoke coming from the main battery on one its boeing 7-8-7 dreamliners yesterday, two hours before the plane was due to fly from tokyo to bangkok. the jet was temprorily grounded. boeing says it may have involved the venting of a single battery cell giving off fumes. it has been about a year since airlines began having issues with the dreamliner's lithium- ion battery. tesla is recalling car chargers.the electric car maker says it's cars are safe for the road. but

>>based on the past we look at wells fargo, jp morgan, and bank of america. i expect them to blow the doors off and it would be hard to imagine they couldn't based on that they're getting free money and giving it back for the full in credit so i expect earnings to be very good. the real question i have is where is the growth coming from? although they're cutting costs and making money, they really aren't growing. >>and finally, what are you doing with this market? >>i've had this market range from 18,20 which we hit on monday to 1850 which we hit yesterday. i think we're going to stay in this range until we hear from the fed next week. >>thank you todd. >>have a great day. bank of america did indeed make money hand over fist in the 4th quarter.the bank turned a profit of $3.44 billion vs $732 million in the same quarter last year -- when it paid for an $11 billion settlement with fannie mae.after years of litigation that followed the financial crisis.bank of america appears to have found stronger footing especially in the area of wealth management.this mornin

he's now making upwards of $20 million a year, and that's despite the fact that jp morgan chase last year their ne net woh dropped. a lot of people are looking at that board and wondering what on earth are they thinking. the board is probably thinking j.p. morgan helped increase our stock price. it's a huge terrible. we'll talk more about it "real money." >> parking your car illegally could get a ticket faster than you think, especially in rome where some folks are using activity for call out drivers who violate the law. wait until you see some of these pictures. marie is following this story for us. >> rome has some of the worst congestion in the world with cars and scooters parked everywhere. the police started a twitter handle where people can send in pictures of illegally parked cars. >> look at that. >> this is parked diein diagonan the median. and this person said this car is parked on the sidewalk every single day right in front of a tree there. this one, it looks like it's a showcase. he's parked right on the sidewalk here. and this one if you want to squeeze in between the pe

jp morgan is exiting its prepaid card business, saying it is too risky. the bank offered the cards with cash and treasury services to companies and governments. last month hundreds of thousands of cardholders were warned their information may have been hacked. jp morgan has been trying to simplify operations after regulators found deficiencies in its risk controls. u.s. banks continue to pump up the profits despite paying billions for breaking laws. bloomberg news finds 6 firms combined paid more than $18 billion for claims of breaking rules. at the same time however, bank incomes shot up 21% to $74 billion. that amount is only rivaled by 2006 when major banks reaped $84 billion. banks are making money through the stock market, cost cutting and a declines in bad loans. in her first comments since being confirmed as the next chairman of the federal reserve, janet yellen told time magazine that she's hopeful that this year, gdp will reach three percent, that inflation will move back, closer to two percent and that she expects further recovery in the housing

not true. >>> jp morgan and mr. madoff, we have news.at the bank ignored signs of bernie madoff's ponzi scheme. it could also involve a deferred prosecution agreement. >> does the s.e.c. have any money to sue them for totally ignoring? everybody knew he was doing a covered call strategy. right? he had $60 billion -- >> i would it a strategy -- >> he claimed. he claimed to be doing a covered call strategy. >> yes. >> the volume of covered calls that needed to be written in a day, it didn't exist. for anyone not to know it was going on. what is kind of sickening probably it was a big klein the for a lot of different financial firms who had to have an idea something was happening and they liked having the client. >> the jp morgan situation was particularly -- >> egregious? >> i don't know if it was egregious. >> allegedly. >> there were people inside the firm that had an idea. they're e-mailing each other and taking their money in certain cases out of the fund because of anxiety about it. >> the s.e.c. should have known that. do they have m

it's jp morgan. just like it's not the government on a five-year behavior leash. it's jp morgan.reed to what amounts to a five-year probation. i kid you not, that it can avoid even steeper criminal indictments if it behaves for the next five years and does what the government says. i'm not here to say whether that is right or even fair, but here's what's not right and not remotely fair. the government avoiding any such probation at all. where is its probation for bad behavior? for ignoring wanton activity, for cops asleep on the job or doing got knows what else on the job infor fcc regulators too busy watching porn to catch this guy, bernie, that would be us, and pay not a dime for its own puthethic performance. how is it that government that makes a fine mess of its books can lecture anyone on how they keep their books. how is it washington which throws good money at bad, and by the way, it's our money, can go after firms for what they do with their money. how is it fannie mae and freddie mac get a pass on the housing crisis they created and banks have to pay fines to them and n

we have the big news, jp morgan is paying 1.3 million from the bernie made off case. >>> and this isction from the janet yellen and she is the first woman to hold a top job in one of a few to head any countries in the bank. she will step up as the second term expires and yellen previously served as the san francisco reserve bank. >>> doctors say a san jose police officer who was on the job is facing along recovery. he broke 10 ribs and reason city hall budget cuts have led to problems and the san jose police a association is fighting back. >> this is going too far in spite of the fact that we are losing to other agencies and this is not the time to nickle and dime people. >> we have dozens and dozens who are receiving premium pay they are not earning while on duty and that becomes a problem for us. >> the new hazard pay policy took affect in june several months before officer hernandez was hurt. >>> and a man left the bank before the teller could not read his note. it happened at the wells fargo bank. she went to herman engineer when she couldn't tell what that note said, while she w

his salary has surged despite jp morgan todaying $30 billion in legal settlements. and google, the e-mail service used by hundreds around the world, google plus and youtube also appeared sluggish users in the u.s. u.k. and india from effected. it now seems to be up and running normally. mackintosh turned 30 years old today. here is creator steve jobs introducing it. >> now we've done a lot of talking about mackintosh recently, but today for the first time i would like mackintosh to speak for itself. >> hello, i'm mackintosh. it sure is great to get out that have bag. >> the first sold for $2,500. before computers were priced at $10,000 a piece. over the years the mac evolve evolveddite a bit. it went full color in 1987 and the first portable computer came around 1989 weighing in at 16 pounds. new trouble for dennis rodman. why the feds are now investigating his trip to north korea. and the alleged gang rape of a 20-year-old woman in india as punishment for a love affair that is raising a lot of questions about the safety of women in that country. every day, someone

180 point, s&p 500 is getting to that 1800 mark after dropping 1300 points and keeping an eye on jp morganse, definitely profits are facing it in a bernie madoff case. charter number 4 cable company offered money for time warner and now they are going directly to shareholders instead of working with time warner's board of directors. >>> a thief right here in the bay area and where it was sold and concerns about its safety. >>> a utility company, they have seen their recent bills nearly double. hey, i remember you.ttle debbie? you should. i'm you. except i always had a nutty bar with my lunch. ooooh. little debbie nutty bars. so delicious. you know they've got them down the street. your love for little debbie is something you never outgrow. don't you have a meeting or something? yes. yes, i do. uncle go one,two,one,two,one [uncle]thistwo,one.cotch,okay? [niece]okay! [uncle]okay? [niece]one,two three,four,five,six,seven,eight! [uncle laughing] okay,we go the other way,okay? [niece]one,two,three,four,five, six,seven! [uncle laughs]there's ten spaces,you want to try again? [uncle]yeah? . >>> w

jp morgan will pay out $1.7 billion.t's the madoff scandal. $1.7 billion. >> that's a lot of money. he was the wall street scam artist who will die in prison. he basically destroyed the lives of investors who put money with him just before the financial crisis exploded. this was the guy that started to unravel the whole empire was a fake. he had never been trading. he had been doing business with legitimate banks, hedge funds, mutual funds around the world. no one knew he was a total scam. now jp morgan one of those banks that did business with bernie madoff agreeing to pay $1.7 billion to settle the claims. >> does that mean jp morgan knew or turned a blind eye? >> i don't know when the settlement says or if they'd add hit wrong doing. usually when you settle you don't admit wrong doing. what we know in hindsight as we've unravelled the madoff scam is that people should have known all the way. there was a whistle blower who went to the scc and said here's my madoff document, he's how he's scamming people, a total fraud.

and jp morgan paid big today in the berni madeoff ponzi scheme. and we'll have a look at the latest and greatest gadgets, and we'll have a look at mobile technology. back in a moment. >> a jazeera america is the only news channel that brings you live news at the top of every hour >> here are the headlines at this hour breaking news... sports... business... weather... live news...every hour, on the hour only on al jazeera america >> so we want to include you in on a massive protest in lebanon in the ongoing violence. it's happening online with a single, powerful hashtag. it started when a teenager was killed in a car bomb attack targeting a prominent politician. >> it all started with the before and after picture. this is mohammed, 16 years old. he's in the red hoodie with his friends. they took this picture on december 27th. they were celebrating the end of their school semester. and this is the after picture. it is graphic. after a car bomb explosion nearby. that is mohammed's body. he died. what followed is a vigil and after that a protest. call

the suit alleges bank of america, jp morgan chase and hsbc have collected $50 billion in undisclosed fees every year, accused of conspireing to collect hidden fees. san francisco attorney says consumers are never told about the fees. the money comes out of their payment. he pointed to a recent general office study that disclosed how the system works. this example a consumer charged $100 to the credit card. >> consumer bank takes $100 from the consumer. he then, this bank keeps $two. sends remainder through the system. the merchant bank keeps some, giving remainder to the merchant. that is paid for by the consumer. >> we reached out to all four banks, bank of america and hsbc had no comment. capitol one and chase did not get back to us in time for the broadcast. coming up tonight at 6:00 talking to the tiburon consumer filing the lawsuit. >> thank you. hundreds of jobs are available. many of them are guaranteed to oakland residents. finishing touches on the remodelled foot hill shopping center. ross and foods co are some of the stores that will open. after meeting with groups the busi

number two, he referred specifically to jp morgan, which had a record breaking fine of $13 billion. >heck of a pay raise. >> and they are continuing to conduct business as they see fit is how jp morgan sees it. the attorney general would say, not only do we get this money out of them, we did not as we have in the past, we did not release them from all of their claims. so we got this fine and we still are proceeding with a potential criminal investigation. >> did you get any sense what he might be alluding to there? >> specifically as to what company? no. >> wide ranging interview. you also covered voting rights in the interview and covered drones. what did you find to be the most surprising part? >> i thought on voting rights it was quite significant that we renew the voting rights act in congress, he was very clear it was important to him to say that a lot of what we see around so-called election integrity and voter i.d. is not legitimate. he is in charge of a doj pursuing those cases and he wants and we're going to hear from the president on voting we expect tomorrow night that atto

lender in america reported a 60% drop compared to the previous year while the number two lender, jp morgan chase reported the a 54% drop for the same period. there may be rising rates or it could be glimmer of hope for home buyers out there. it may get easier for many people to lock in a loan going forward. already we've seen lenders begin to relax loan standards. it's not much just a little bit. the national average fico score used to assess a home buyer's ability to pay back a loan, it's down 21 points from the previous year's average soar. all of this should have implications for consumer lender. who else to discuss that than sheila bayer, now the share of systemic risk council at pew charitable trusts. i asked her if looser spending standards are a good thing. >> i don't know if it should all be about credit scores. we should look at the ability to repay. do you have a good credit history. this is reflected by the credit score and other factors. do you have a bit of a down payment. i think that's important. so there are a variety of underwriting parks that banks traditionally looked at

. >> jp morgan chase is set to pay $2 billion for the role in the bernny madoff scheme and most going to the victims. the justice is saying that chase turned a blind eye to his accounting. no tax deductions for the penalties. >> it is close to three years since the massive earthquake hitting japan and three years later the country is dealing with the lasting effects. we have more on the story. >> a life long rancher and farming is his life. >> there was a huge shaking. i rushed out into the parking lot of the store. and there heard reports of a 3 meter sue namny. i was worried about the cattle and i rushed back here. >> that is where he heard about the troubles at the nuclear power plant just miles from the home. he lived close enough to see it. >> on the 15th of march there were explosions to the reactors and this is it, i'm done for. >> the multiple explosions blanketed his farm and wide areas of the land with radio active particles and after seeing the farms abandoned he couldn't bring himself to leave. most of the people fled in waves. leaving ghost towns in their way. we ventured

. >> the jp morgan chase is said to be close to a deal in the berni madoff case. >>> t-mobile is writing big check to verizon. the deal is worth more than $3 billion. the money will be spent on some of what is called the spectrum licenses owned by verizon. it will cover 150 million people in several major cities including new york, los angeles, washington, d.c. >> today and now declaring unconditional war on poverty. >> lbj declaring his war on poverty. >>> and it's not just a fashion statement, this new pair of gloves will make it safer for you to ride your bike. >> welcome back to al jazeera america. i'm del walters. here are today's headlines. the supreme court entering the gay marriage debate. jusin utah same-sex marriage bee legal when a judge struck down a voter approved ban. last week the attorney general asking the supreme court to spend that ruling now the supreme court blocking any new same sex unions in utah while the federal court conditions that issue. >>> some of the priorities in washington, d.c. include a bill to raise the federal minimum raise, the possible extension of

and jp morgan and a few others took a different approach. >> did you get frustrated by jp morgan and it made consumers mad that were caught in the middle of the holiday shopping season, they were traveling and issues came up and they couldn't use their cards. backlash comes to target. >> we're accountable and responsible for that. it's not up to us to decide what policies are correct for any financial institution. >> there's a lot of confusion out there with consumers, i this i, when you hear numbers like 40 million and 70 million and maybe you add those up and get to 110 million, how many people have seen fraudulent activity on their accounts to this point? i know about five people personally. >> i can't speak to what the other cards have seen. we have seen almost no fraud len the activity on our target red cart. i come back to the priority is on the guest. every guest, whether a red card holder or nonred card holder will have zero liability and the free credit monitoring. we want to make sure it's crystal clear, regardless of where you shop or what card you have -- >> almost zero o

because of this high to low transaction reordering, and today 14 banks including bank of america and jp morgan has settled to the tune of $8 million. >> a lot of banks have stop doing this because of litigation. but in their disclosure agreements they all say we reserve the right to changes the terms and conditions of these accounts at any time. while they stopped doing it now, they can start doing it again at a later date. >> one bank did confirm that it still processes transactions from the highest to lowest amount. adding offer that it didn't charge overdraft fees for any items below $5. congresswoman carol maloney on the left wants to make banks more accountable and is cosponsoring a bill that would require more transparency from the banks and regulate the overdraft fees they charge. >> i've seen oftentimes a consumer will make three, four, five, six small purchases and end up with $300 to $500 in overdraft fees. this is unfair. then they're trapped with interest rates that they have to pay off that keeps them in a cycle of poverty. >> it's a lesson jacqueline has learned all too well. >>

jp morgan reported a 54% drop. it could be rising rates, we don't know.ven though rates are inching up it may be easier for people to lock in a loan going forward. we've seen lenders relax loan standards modestly. the national average fico score or credit score used by a lenders ability to pay back inched lower in 2013. in december the average score dropped to 727 according to a mortgage software firm. that's down from the priest years' average score. banks are looking to lend, and banks are loosening up. this all had have you had big implications for consumer lending. who better to discuss that then sheila baird. she led the banks' regulatory agency through the financial meltdown and the biggest wave of bank failures since the savings and loans crisis in the 1980's. sheila, good to see you again. thank you for being with us. >> reporter: thank you. >> you need a lower credit score to secure a better rate. i'm puzzled if that's good, how low it should get. it got low and we got ourselves in a financial crisis. what is the weak spot for that sort of thing?

we have jp morgan, citibank, wells fargoall the major banks reporting results.rall will be driving the earnings growth in q4. 20% earnings growth for the finance sector as a whole, 6.3% for the s&p 500. if you strip out finance the growth for the s&p drops to about half of the overall rate---about 3.5%. a big reason for that is easy comparisons. the 4th quarter of 2012 was kind of a low point for the finance sector. bank of america particularly has very easy comparisons. >>easy comparisons and easy money. the federal reserve is helping so interest rates are low and then the banks are turning around and making money in the stock market as well which is going higher. they are in a win-win, golden years kind of situation. >>it is. that's a fair point. and on top of that, they are releasing some of the reserves they held back for bad times and now that credit quality is improving they are releasing those reserves and that's juicing their profitability as well. so overall it's a good earnings environment for banks but on the negative side, loan growth is kind of anem

earning season is back with big financial, jp morgan chase, wells fargo, bank of america, goldman sachs city, reporting quarterly results and industrial general electric. mun da monday, the biggest car show in the united states returns to detroit. tuesday, retail sales for november are due. friday, the housing starts for month of december are out. also on friday, the first lady michele obama, celebrating her 50th birthday. happy birthday to mrs. obama. finally not your imagination. your boss is happier than you. those in charge at the office they like it. that is according to a study out this week from pew research center. 75% of self identified managers say they're very satisfied with their current job compares with less than half of the workers. the happiness gap translates to home and money as well. more bosses than workers satisfied with their family and financial situation. turns out it really is good to be king. that's the show for today. thank you for joining us. next week, rolling along in detroit. we'll see the latest and greatest from america's biggest auto show. make sure you

holder rejects that pointing to the the tentative $13 billion settlement with jp morgan chase. the attorney general is also addressing new marijuana regulations--- for banks. eric holder confirms the obama administration is preparing new regulations allowing banks to do buisness with "legal" marijuana sellers. under the current law, banks risk the threat of charges of drug racketeering. california could soon join the ban the plastic bag bandwagon. after three unsuccesfull attempts to pass legislation there, new amendements to the bill were added including financial incentives for plastic manufacturers. silicon valley is doing some damage control. the area's rapid growth is blamed for the skyrocketing cost of living in san francisco. it all started with a transit controversy. tech companies, including google caused outrage when the companies' private employee shuttles, disrupted traffic by using municipal stops. city officials placed new regulations on those buses last week. tomorrow...industry leaders in silicon valley will launch a "goodwill campaign" that the la times reports

street journal says banks under scrutiny are barclays, citigroup, deutesche bank, goldman sachs, jp morganchase, morgan stanley, royal bank of scotland and ubs. official answers regarding boeing's 7-8-7 dreamliner troubles are due in march.details of last january's battery fire aboard a japan airlines dreamliner will be made available at the end of march.the national transportation safety board will also release its review of last year's boston dreamliner fire, this fall. fewer feet marched into stores for holiday shopping this year.according to shopper trak... foot traffic at malls and stores was down 14% compared to last year. however, shoppers spent more money this year... overall sales were up 2.7% in november and december. the survey also finds that black friday was the strongest sales day of the season as consumers turned out in droves for rock bottom deals. for jcpenney -- the devil is in the lack of details. shares of the retailer fell 10% yesterday after a brief review of holiday sales numbers was not enough to "cheer" investors. j-c-p says it is "pleased" with it's holiday perfor

to be specific, i still like jp morgan, wells fargo. i like owens corning. i do believe we're still in the baby steps of the housing recovery and overall recovery in the united states and those will be the direct beneficiary of any kind of recovery that we continue to have. >>i have to ask you the flipside of this. what are you steering clear from? >>that's easy. i'm staying away from emerging markets right now. i know there's a lot of emerging markets but when you consider tapering going away, when you consider the risk of capital outflows, i'll wait a year. let somebody else take the risk right now. >>larry shover, thank you so much for joining us. >>you're welcome. with janet yellen now confirmed by the senate as ben bernanke's successor, her historic term as the first woman to chair the federal reserce will begin next month.she faces the delicate balancing act of managing the fed's retreat from the treasury and mortgage bond market while also trying to keep long-term intrest rates low and the economy growing.as if that's not enough, yellen takes charge o

it founded capital wurngs bank of america and jp morgan chase accounted for about 55% of all complaints between november 2011 and september last year. billing disputes said interest rates for the chief complaints. >>> a federal judge says $765 million may not be enough to cover nfl players who suffered concussions. the judge issued a preliminary rejection of the $765 million settlement between the league and players. they would cover nearly 20,000 players for the next 65 years, but the judge said she is concerned about retired players who may not yet have been diagnosed with concussion problems. >>> as the an fran 49ers gear up far their championship game in seattle on sunday, some fans are also getting ready to head north. talks with some of the 49er faithfuls making that trip to seattle. >> for fans, the question is not if you watch the game but where. >> i hope there's a line around the block of people waiting to get in and that we have to turn away everybody because we're so full. >> this is too good to pass up. >> but some say you just have to be there. >> the fact that they hate u