before the bell on o thursday jpmorgan chase reports.ow it is forecast to have earned $1.21 can clers a share, analysts expect google to make $1.86 a share. back to you. >> thanks very much. kristie lu stout in hong kong. >>> baby ja my call delivered weighing 16

jpmorgan chase will be the first of the big banks to report on thursday. results from top tech player google are also expected thursday. also this week, investors will eye fresh economic data, starting with may's trade deficit on tuesday. also tuesday, minutes from the federal reserve's june meeting. wednesday, fed chairman ben bernanke delivers his biannual testimony to congress. retail sales and june's producer price index comes out thursday. and june's consumer price index is released friday. >>> elsewhere, precision cast parts says it has agreed to buy primus international for $900 million in cash. >>> reuters reports there's an emergency meeting in europe this morning over the debt crisis. they're now possibly spreading to italy. the region's third largest economy. friday italian stocks and bonds tumbled in a massive sell-off. >>> and finally, according to a new survey of college students and graduates, health insurance is the new love potion. 90% of surveyed students and 93% of recent grads said knowing a potential partner has health insurance would

. >>> jpmorgan chase rose reporting higher than expected profit. the only s&p financial to close higher. after hours google shot up 12% on earnings that blew past expectations. conoco phillips rose after the country's third largest oil company said it would split in two. one the oil producer, the other a refiner. >>> billionaire investor carl icahn offered to buy clorox for about $10.2 billion. with a reported stake of just over 9%, he's already the company's largest holder. >>> and yesterday anglo australian firm bhp bill laton said it's buying petro hawk energy for a little more than $12 billion. >>> and finally after one casey anthony juror reportedly sought thousands for an interview, a florida lawmaker has proposed making it a felony for jurors to profit from civic service. >>> the blue jays and the yankees, hope for the nfl and the first day of the british open. >>> plus being a good athlete doesn't necessarily mean you'll be a good golfer. your early morning sports headlines are straight ahead. >>> with no rain in the forecast, nice to be ou

jpmorgan chase and google both slated to deliver earnings tomorrow, slightly higher.after the bell yum brands rose on better than expected profit and a boosted outlook. after closing, despite posting healthy results, marriott international fell. >>> finally, according to a national survey, when it comes to summer work attire, flip-flops are the number one don't. with mini skirts coming in second, followed by strapless tops. good advice for you there. >>> the u.s. women's hopeful march toward world cup soccer glory, a late goal in the second half against france gives them a lift they'll take all the way to the finals. early morning sports headlines are straight ahead. >>> and once again, the heat is going to build in the middle of the country. this is the least thing they need. your forecast is coming up. you're watching "early today." >>> good morning. if you're just waking up, this is "early today." in sports, america's world cup women's team has definitely won over the nation. suddenly, people that didn't know a free kick from a corner kick a few days ago can't wait

. >> jpmorgan and big pharma. >> special interests.y stand in the pockets of a lot of democrats and a lot of republicans who would agree with our rhetoric. saying, yes, dylan, yes, peter, yes krystal, yes, yes. we need to reform the banks, reform -- banks want 40% of my money a bunch from caterpillar, et cetera. any way to have the debate without the strangle hold of the banks and trading pirates? >> i don't think so. in my view, the most important, the most fundamental issue what we really need to deal with is campaign finance reform. i think you're right. americans understand the problems. to this point awake more than ever but feel powerless. what can we do? even the president himself all he says is, call your member of congress. if you're just putting in a call and you're not the one writing a check, guess how much that call means? >> how much? >> very, very little. >> in the uk, campaign finance in the ucht k, cost $50 million for all parties and happens over a month. that's it. talking this time about it's going to be a billion d

this time it came on the back of strong results of jpmorgan. google came out after the market and after hours trading. google is shooting up by around 10%. we will see how markets react to that here as well. there was positive economic data. we saw fall and weekly jobless claims and a rise in retail sales for the u.s. here in japan the main factor which has pushed the nikkei below the level that broke above last week has been the stronger yen. having a look at that, currently at the lower 79 levels and around the upper 111 to lower 112 levels against the euro, so far during tokyo's stock trading hours. the nikkei is below 10,000 for three straight trading sessions and monday will be a public holiday hoar in japan. we will see the reaction on tuesday. for now, a bit of a mixed picture. the nikkei in the positive. >> see you again on tuesday. thanks a lot that was the tokyo stock exchange. we are one step away from seeing the world's largest alliance for trading stocks and other financial products. paradors of the new york stock exchange announce

rockefeller and jay gould and jpmorgan. he is a player, a big player. he has bags of money.stuffed the ballot box. its factories are shown bolting away at full tilt because he has some tax -- somehow gotten favors. but not just that, he has an open back in his lap. he had studied at to find out how to fool people. opposite him are the young labor -- is the young laborer with nothing to do in his factories. the idle on the wall is falling down, so how do you counter balance that? >> on the opposite side, on the right to the meat -- the entrance to the main reading room you have the figure of government. it is knowledge-based democracy. so there, the figure of government has an open book in her lap. she is informed. and everything is in balance. she is a respectable figure. and on the right is the figure of a young voter with books under his arm. he is going to cast his ballot having informed himself and there is an officer with grain and she is separating the wheat from the chaff of elected officials. and holding a balance scale, when you cannot speak with. the final is gover

alcoa the first to report profits today with google and jpmorgan chase slated for later on in the weeklast week stocks managed to stay on the upside despite friday's dismal jobs report. the dow gained 0.5 and the nasdaq more than 1.5%. >>> expect gas prices to pull a u-turn. according to the lundberg survey the national average is $3.62 a gallon, down a penny in the past two weeks but they're up recently in many areas. gas is following the price of crude which has risen in recent weeks despite the government's tapping of the oil reserves. many analysts now believe we're once again headed toward $4 a gallon. >>> at the movies "transformers 2" ruled again, the sequel "dark of the moon" took in $47 million in ticket sales to take the top spot for the second week in a row and cemented its place as 2011's biggest hit so far, behind "trance transformers" "horrible bosses" second place and "zookeepers" coming in third. >>> united airlines nominated thomas stiker this weekend, flown more than 10 million miles on the carrier, that's enough to circle the earth 400 times. it took him 29 years and

rockefeller and jay gould and jpmorgan. he is a big player. he has bags of money.has stuffed the ballot box. his factories are belching away, going full tilt, because somehow he has gotten favors. there is the money. he is holding it. not just that, he has an open book. he has studied at to figure out how to fool government. opposite him is a poor young laborer with nothing to do. his factories are idle. the wall is falling down. how do you counterbalance that? on the opposite side, on the right of the entrance to the main reading room, you have a figure of good government. it is accomplished through knowledge-based democracy. there, the figure of government has an open book in her lap. she is informed. everything is in balance. she is a very respectable figure versus the one before. on the right is a figure of a young voter with books under his arm. he is going to cast his ballot, having reformed himself. opposite is a young woman holding and are not with golden grain pouring out of it. she is separating the wheat from the chaff in the selection of elected officia

by one estimate according to jpmorgan by some $100 billion a year. interest rates over the long term might go up by three quarters of a percentage point. it doesn't stop there. all interest rates basically in our system are benchmarked off the treasuries. the borrowing costs for states, for municipalities, for municipal bond issuers like school districts, water districts, universities, they would go up as well. moody's says it may be $130 billion worth of municipal bonds would lose their aaa credit rating if uncle sam loses his. and finally, consumers like you and me. because those interest rates are benchmarked against the treasury. if treasury rates go up, mortgage rates are likely to go up. consumer lending rates are likely to go up and so are rates on businesses. less borrowing, less spending, a slower economy could be the result, and higher unemployment, brian. >> as we say in washington, that's real money. it's why such a high stakes game. tyler matheson, as always, thanks. >>> again, much more of our day spent here behind the scenes in the pri

jpmorgan chase came in better than expected. things with you doesn't mean we wouldn't pay attention in days to come. we have put ourselves in the same category as italy, spain, portugal other euro zones facing the same kind of pressure. >> you work in international business a lot. we don't know -- we are talking about stocks and equities and things like that. what happened after lehman brothers collapsed was a freeze of the debt market. a freeze of the ability to get credit. that is almost more serious than whether stock markets are going up and down? >> well, no question about it. we're not talking about that kind of a situation here. i mean, that was a much more catastrophic idea than what is happening here. >> right. >> again, i want to emphasize the fact that nobody really believes that the united states is going to miss this deadline. however, it puts that uncertainty back into the conversation. >> right. >> that people can't seem to get it together quick enough to agree on something. >> right. >> that is sustainable and th

you know, i think of glaxosmithkline and jpmorgan chase and those that have stringent security issues. again, microsoft has programs in terms of the government security program where we proactively share security information with our governments around the united states here. so it is paramount to us. it's a piller of our organization in terms of a poor competency, of all of design of our products. and we have decades of experience of helping customers around the globe with the highest needs of security and privacy. >> ok. back to the phones, then. more questions. >> hi. is this going to allow to you reduce head count with i.t.? >> it will allow us to have better service given the fact that our head count is recusing in the city. san francisco, i'm sure like seattle and other cities, experiences a head count reduction every fiscal year that i've been here for the three years i've been here. i haven't associated any head count to this project. really what we're trying to do is continuing to provide good, if not better services than we provided before. given the fact we had fewer staff

we will get second quarter reports from alcoa, jpmorgan chase, citigroup and google among others. >>>uesday's last month meeting open market committee will be released. and on wednesday, federal reserve chairman ben bernanke will testify before the house services financial committee on economic issues. >>> the retail sales for the month of june will be reported, a and the producer price index is also out. the ppi of course tracks inflation at the wholesale level. friday we'll get the consumer price index, which measures inflation at the consumer level. >>> finally, a one-stop shop that is all business. the newest wall street location of drug store chain duane reed opened in the former home of the bank of manhattan trust, just down the street here from federal hall. the 22,000-square-foot store was specially designed for the financial district. it offers spa services, an onsite doctor, a sushi bar, even a stock ticker to keep local professionals plugged in while running errands. parent company walgreen's indicated this could be a model for future community-specific drug stores. >>> and

jpmorgan chase beat expectations for revenues and profits as did city group and google. profits were in line with expectations. >>> a huge and risky battle being played out in washington right now as the country teeters on the brink of not being able to pay bills. the fight over raising the debt ceiling and deficit cuts to go along with it. what it could mean to your money and markets. joining us now, jonathan thomas, ceo of american century investments and michelle girard, rbs senior economist. thank you very much for joining us. great to see you both. >> thanks for having us, maria. >> let me ask you, jonathan. you are running a major investment firm and here we have the headlines, s&p discussing whether or not to downgrade, moody's threatening to cut america's credit rating as the fight goes on. how does that impact your decision making and where to allocate money and where to investigate? >> obviously one of the things it has done is the whole debt ceiling issue has captured the attention of the united states and the investors. what it's doing is raising people's awa

jpmorgan gave a loan commitment mobile, whichy team mobi- is a problem. >> one of the things that this report recommends is that we move to balance our trade in five years. we need to balance our trade. the administration has set a goal of doubling exports. imports are increasing faster than exports. when you have a negative export figure, that is a drag on your economy. we have amassed a net export figures year after year. warren buffett advocated that the united states needs to adopt policies to balance its trade. people always hear china loans so much of our treasury. we are dependent on it. where does china get the money to own so much of our treasuries? we gave it to them to run these massive trade deficits year after year. when the dollars come into china, the chinese government issues bonds to set up what you want. they buy our treasuries. they get income from a high treasuries. it is a crazy thing for this country to let go of. we are a another day older and deeper in debt. we have to change the trends here. when kennedy said we are going to get to the millan, nobody knew how t

then before the bell on thursday, jpmorgan chase will report that its forecast had earned a share in the second quarter and google reports after the bell on thursday. analysts expect earnings of about 786 a share. then we look over to friday, july 15th, the result of banking stress tests are due in europe. more than 90 banks are involved here. now, this gauges the reaction to possible market shocks. and the point of these stress tests is to identify weakness in the financial sector, and previous stress tests had been criticized for not being stringent enough. charles? >> okay. well, let's get a preview of the week ahead on the global markets. joining me from the hague, chief economist and head of ing investment management. what do you think is going to be the most important thing if you like, certainly at the start of this week? will it continue to be that shocker of a new york/u.s. new farm payroll reports? >> i think the dynamics are resulting in -- focusing on that, whether it's the european sovereign crisis or debt ceiling, that's dominant for the first day, next day for probably

financial and technology shares were among the biggest losers on monday, bank of america, citigroup, jpmorgan chase and wells fargo all closed roughly 3.5 to 5.5% lower, so really this is touching off fears of a broader financial crisis and don't let's forget the whole situation of the biggest slowdown in the world economy since the 1930s started with the financial crisis and now the worry is with he might go there again. at the close of the play there were triple digit losses for the dow, nasdaq, each closed roughly 2%. painful, pauline. >> let's look at the stock market futures and trading session in the u.s., it's right across the board as well, here's where the u.s. futures stand in premarket action the dow poised to open down by almost 1%, about the same amount for the nasdaq. the nasdaq ended monday's session down 2%, so that's not good news there. also the s&p 500 poised to start the session on tuesday down by 1.25%. we're seeing investors fleeing equities and just piling into treasuries, so let's brace ourselves for wall street when it opens in just a couple of hours from now. charles

we have seen top ceos from jpmorgan demanding a resolution. their concern is not with default, but as it drags out, the threat of the credit rating gets more urgent and realistic. you could get a situation where it happens before a default. are you concerned about that? >> well, we are certainly concerned about a potential downgrade. it's why we have been pushing to get it resolved. the house of representatives refuses to do anything other than 100% of what they want. until that happens, we can't get something through congress. you are right about the ceos. it's small businesses on main street. they are concerned about this. it's creating tremendous uncertainty. it has to be resolved. this is serious business. all the games happening are so damaging. >> that has president responded yet? >> people all across the white house have been in touch with ceos around the country. he's trying to push congress as quickly as they can. we are sitting here waiting hour after hour for the bill in the senate. it's holding this up. it's critical for the republ

strong earnings report for last quarter include google thanks to more internet ads and major banks jpmorgan chase and citigroup. this year the all-star game is in phoenix where the average temperature is 107 degrees. don't worry about the players or the fans. chase field is air conditioned. >>> warner brothers closes out hollywood magic as final movie in the boy wizard series opens in theaters on friday. get your business news on cnbc. >> our political analyst will join us in just a few minutes to talk about the debt crisis. you can get all of your business and tech news before the bell weekdays on "today in the bay" which starts at 4:30 in the morning. >>> one of san francisco's most beloved theaters is closing. we see the struggle of the single screen theaters. >> reporter: they are the architecture tombstone when the single screen was king. the rhetoric movie house has always been the funky cousin of those grand movie palaces from its quirky prefilm reminding patrons to clean up after themselves to padded benches and a mix of movies. >> i showed 5,000 fingers of dr. t. and deadman and mo

and jpmorgan, village to large banks that did. how did allison do it? allison happens to be a ayn rand fanatic. in 18 to five when he became ceo, yes to shoot a policy of having the sole executive group read atlas shrugged. he treated a statement of mission, purpose and values. i have a copy of it here. this is a remarkable book that i'm proud to say this is described to me by john. speaking of inscribed by john, after i'm done there is going to be a book signing of my book at the laissez-faire booze and john allison who is he will be speaking at 10:30 on the financial crisis. if you would like to have not only the author of the book at the main subject of the book sign the book, we'd be happy to do it for you and john is a wonderful turning man. i bechard has been a best-selling book, but there's 30,000 employees right now in over 25 years, who knows how many hundreds of thousands of copies have been produced. this book embodies the famous speech at the end of atlas europe. this is basically a summary of object it is on on how to apply a business. all

jpmorgan posts higher second quarter profits and we look ahead of the bell, we will have some unemployment numbers coming up that could send the market in either direction as you can see. all three here in the u.s. posting slight gains yesterday. >>> the number of homes taken back by lenders is down 30% from this time last year, but not necessarily good news. instead, most banks are taking more time to foreclosure on homes -- foreclose on homes because they are still working through foreclosure documentation problems that surfaced last fall. analysts say that could delay the recovery in the housing markets until 2016. >>> time now 5:20. will the alameda county grand jury published a report criticizing oakland's building services division. the grand jury decided to investigate the building services division after getting several complaints from property owners about excessive fees and liens as well as abusive treatment by inspectors. the grand jury report says and i'm quoting the grand jury is appalled by the actions of the city of oakland's building services division and its impact on prop

so the an etf that invests with a five year authority, 3% yield, great credit, jpmorgan, goldman, sachswant to go to u.s. treasury debt because people will run to the certainty of strong corporate debt. >> in fairness, that hasn't given much of a return. you're just talking about safety. if you close into barclays, that's safe. >> that's safe. if treasuries go down and interest rates go up, people will want to own corporate bonds instead of treasury bonds. and what you want is you want high quality corporates and you didn't want to go too long term because who knows what inflation will be in ten years. so this is a five year high quality -- >> because that's what the government's bonds are right now. you're recommending the eft for gold, gld. by the way, up 30% over the course of a year, but an etf is easy to buy and sell. >> and gold is still not adjusts for inflation. it's lower than it was in 1980. people won't want to own only dollars and euros if you're a chinese and just came into a lot of money. you'll want some of your money in values because currencies are being debased. >> tha

the ceos of goldman sachs, bank of america and jpmorgan chags among others urging action on this debtouse the ceos wrote in part a default on our nation's obligations or a downgrade of america's credit rating would be a tremendous blow to business and investor confidence. therefore, dramatically worsening our nation's already difficult economic circumstances. a check on business before the bell now with cnbc's simon hobbs, live at the new york stock exchange. good morning, simon. what's going on down there? >> it's not a good morning, i'm afraid. with the last few minutes in addition to all the other problems we've had, shocking, i rarely use that word, shocking gdp data come through. we thought in the second quarter growth of 1.8%. we had a growth of 1.3%. >> wow. >> unfortunately, more importantly, we thought we had growth of 1.9% in the second quarter. in fact, growth of 0.4%. the consumer spending angle has basically -- the consumer has basically stopped growing their spending. the rise in the second quarter was just 9.1%. a lot of it has to do with prices, a lot of it stemming fr

largest was jpmorgan. at first it announced it would pay $2 billion but it ended up paying $56 billion to settle claims by active duty military personnel. the justice department officials also condemned the actions of the bank of america. this is what they said in a quote, the bank failed to protect and respect the rights of our servicemembers, fail to comply with clearly mandated procedures and foreclosed against homeowners who are valiantly serving our nation. i want to tank a professor warren and holly petraeus who have been working hard on this issue at the bureau. since these are so much more widespread than originally thought however, i believe a conference for investigation by this committee is needed and with that i yield to mr. quigley for the balance of my time. >> thank you, thank you mr. chairman and professor warren. with due respect i fear that this hearing is focused on issues which detract from the obvious task at hand, helping professor warren and others in our attempts to avoid another ec

i asked the chairman to invite jpmorgan to testify about their illegal foreclosures against service members, but they declined. to refuse to provide even a single response of document, not a single syllable, i asked the chairman note, but he declined. instead of conducting a bipartisan investigation to help service members and other homeowners, this committee has not trained its eyes and sites on the professor. who is trying to protect these very same families. so they may have, in his words, their day in court, so they may not have to face financial ruin. ironically, it seems the biggest criticism of the professor is that she is being somehow too hard on these mortgage banks. professor warren has now been summoned to testify before the committee not once but twice. they have demanded that she produced a massive range of documents, all while the mortgage banks are given a pass. so let me with my original question, whose side are the on? the side of service members, risking their lives and their safety? or are we going to side with other homeowners and their families or on the side of the ba

bill daley made $900,000 at jpmorgan. but you know what?ally put a price on that. get who gets the top salary, kyra? >> who? >> come on. >> president obama, $400,000 a year. >> i thought you were trying to throw me on some odd statistic a year. >> he makes, what, $400,000 or something a year? >> exactly. $400,000. he also makes millions in part from his book royalty. but yes, he gets the top salary. i wasn't trying to trick you. it's a holiday. >> okay. i just wanted to make sure. i thought, i don't know if it if i want to go with the obvious. >>> after seven weeks of testimony, some very dramatic testimony, the casey anthony trial is wrapping up. the jury is expecting to get the case today. son niehausny is following the r us. has the end -- is it expected today? >> it is expected today. the prosecution is in its rebuttal argument phase and that's because the prosecution, kyra, gets the last word. the burden of proof is on the prosecution. so, certainly, you're looking at a picture of linda drain-burdick. she is giving her rebuttal argumen

the firms with bank of america and goldman sacks and jpmorgan chase and others sent a letter to congresste house, urging them to hurry up and warning of the grave consequences of inaction. robert nichols is ceo of the financial services forum. >> if borrowing costs go up, people who have loans for education and auto is their house are more expensive. as borrowing costs go up all across the u.s. economy, that will erode growth and equate to less jobs. >> the dow jones industrial average had five consecutive declines. the dollar has been losing ground against all of the major trading partners and home mortgage rates are starting to creep up. the possibility of a u.s. credit downgrade is not good for business. good year's chairman and ceo said concerns over prevailing issues were having a discernible impact among customers. >> we need a balanced plan that reduce the deficits and brings down our national debt. >> we are starting to see companies build up their cash reserves. we are starting to see companies trying to access more lines of credit. keep in mind that it isn't debt that puts comp

i did it in these remarks, but it's a fact that when the federal reserve is formed, jpmorgan and we can't have back for the five largest institutions at that time controlled assets of 5% of gdp. i'm not so worried about that. but now it's over 60%. they are more important than other. and i have seen size of their political should be sure it's whatever them in a very significant cellulose into them. there is a day because i've seen that where i find whoever it is they do i.t. or what you have to say and they are willing to listen if your point is cogent and you can demonstrate it. in fact, one of the reasons we put out a way paper on how to do this was they say well, it's nice, but how do you do a? was try to say here's how it works. we talked to them one at a time. and if you think about it, if it's in the best interest of the economic system of the united states and a growing of ethnicities and creation of wealth, robots across the country and you make that point, the research they are doing, then it becomes a more powerful argument itself. and i think there's a lot of businesses that ar

some of the biggest banks in the country, jpmorgan, goldman sachs, bank of america warning that and pressuring house and congress to reach a deal on the debt ceiling say the consequences would be quote very grave. yesterday the financial stocks traded considerably lower. the pressure on the ceos, pressure on the shareholders. so we'll see whether we announce it right now. 14 points in the early minutes of trading. so a guy goes fishing and he decides to ride the back of a shark. i'm not making this up. he even had his buddy recorded the moment of courage. or stupidity. here is the shark cowboy without a saddle. he says he rode it 15 feet. turns out it was a baskin shark, one of the largest in the ocean. why did he do it? >> it came right up next to the boats. i have the utmost respect for the ocean and all its creatures. would i never harm a shark. i felt very comfortable with him around the boat. we didn't try to scare it off. we weren't trying to harm it. i had to get in and swim with the shark. it had to be done. i live, breathe, eat, dream shark and tuna fish. that many my life. d that's m

of a downgrade, and jpmorgan chase says a downgrade could cut out of the economy $100 billion, in economicity, alisyn, and that is why you are hearing companies like ge, ford and eaton corporation are saying, look, we have to sit tight and make sure we protect our liquidity, our cash on a balance sheet, alisyn. alisyn: you know, the default and the downgrade are two separate things and if a deal is reached on the debt ceiling, before august 2nd, we still could be downgraded, would they then loosen up some of the liquidity. >> that is an important question, because they are two separate things, and you are right to ask whether or not this is an excuses. we have seen the behavior of companies in the past, they kind of lock up and they do what they can to basically protect their balance sheets. so, it seems to, according to the indications, we are getting out of deutsche bank as well who talk to cfos, too, they'll continue until they see an impasse stopped in washington, d.c., back to you, alisyn. alisyn: liz macdonald from fox business network, thanks. we are asking you what you think, go to

jpmorgan is saying you could see 4% on the 10-year note. that still is historically low. a wait-and-see. jon: i think a lot of people are pretty ticked what is going on in washington right now and if mortgage rates go up, credit card rates go up as a result of all this people will be fuming. >> not good for the housing market. you may see one quarter go into negative territory in terms of gdp growth. that would be bad. we saw that in 2000 and 2001. jon: elizabeth mcdonald. >> delighted. thank you. jenna: outrage over decision to block federal health care benefits for 9/11 responders and residents near ground zero who now have cancer. they were exposed to the dust and chemicals released from the twin towers collapse. the feds say there is not enough evidence to show a link to cancer. rick leventhal has the more on the ruling. >> reporter: cancer is the leading cause of death among 9/11 first-responders. roughly 23% of people nationally die of cancer but more than half of first-responders who side since 9/11, died from related illness. seems pretty clear, right? we're talki

jpmorgan first paid $2 million but then faced -- paid $56 million. justice department officials also condemned the actions of bank of america. here is what they said. the bank fails to protect the rights of our service members. some players have been working hard at this issue. since these illegal actions are so much more widespread than originally thought, i believe a comprehensive investigation is needed. with that i yield to mr. quickly for the balance of my time. >> we have a catastrophe caused in large part by unregulated agreed. the greatest economic downturn since the depression caused by the lack of regulation versus concern about what an agency should do or something that does not go in effect until something later this month. we recognize the real concern not fair, which is what we have gone to her, but we still experience, and how to face them, rather than extraordinary concerns about an agency that has not really done anything yet to challenge those. this agency needs vigilant oversight. we should not obstruct the agency to the intent of

rock of -- rockefeller and jpmorgan. he is a big player. he stuffed the ballot box.is factories are sean -- shown going full tilt. he has the money. he has an open book. he has figured out how to fold government. opposite him is a poor young laborer. the wall is falling down. how do you counter balance that? on the opposite side on the right of the entrance to the main reading room, you have a figure of good government. it is knowledge based democracy. the figure of government has an open book in her lap. everything is in balance and she is a very respectable figure. on the right is a figure of a young voter with the books under his arm. he is going to cast his ballot having reformed himself. opposite is a young woman holding and turn -- an urn. this figure of government is holding a balanced scale. the final mural is government at its best produces peace and prosperity, arts, literature, all these things can flourish. >> passed the murals is the main reading room. one of the many places that people can come to read and to research. an elaborate system of retrievals

the most respected bankers have said it, jpmorgan chase, the default would be catastrophic. investors have said it. bill gross, one of the world's largest fund managers send us a warning yesterday. he said, quote, there should be no question at all, the debt ceiling must be raised and not be held hostage by budget negotiations. don't mess with the debt ceiling in washington is what bill gross said. ben bernanke, appointed by president bush as chairman of the frv said default would be a major crisis that would send shockwaves to the world financial markets. yesterday he said failure to avert default would mean huge financial calamity. even other republicans have said it. this is what speaker boehner said in april, quote, not raising the debt limit would be serious, very serious. implications for the worldwide economy and jobs here in america, end of quote. and perhaps the most telling of all, all three rating agencies have already sent warning shots across our bow. last night moody cautioned us america's a.a.a. rating, triple a rating, was already under review for downgrade.

jpmorgan in its disclosures reports how much collateral it would have been forced on its debtors positions, up to six nodule downgrades. through the first quarter of 2006. goldman sachs are doing this since the last quarter of 2007. aig, until august of 2008, had only stated its collateral, likely collateral for one notch downgrade. no one in the system actually knew what would be the collateral cause that aig would have to meet if there were a multi-notch downgrade. they were too and have billion dollars dollars of cash. they were -- they were fine for one notch. when it went from one notch to a multi-notch downgrade, the collateral follows ashlee $20 billion. this is the kind of things i was referring to where we could no more even in a market transfer and see standpoint about these entities that we don't know. [inaudible] >> i believe in 2002 pnc and aig were called offsides on and off balance sheet transaction, and pnc got an m.o.u. from i believe the fed and/or occ. these are like precursors to the big aig trade. so there were ways to figure it out but was but who, with significant? s

incidents of military members, typically abroad, who have been foreclosed on, we're talking about jpmorgan who has foreclosed on 4,000 active duty members of the military, has made $200 million in refunds and has paid a $56 million fine. wells fargo, that has admitted to 55,000. now, back in january i joined -- asked a number of colleagues to join in a letter to mr. bernanke and also to john walsh, the acting comptroller of the currency, asking them to audit these very banks. i have not yet heard from any of them. >> just want to let you know, this hearing continues live online at c-span.org. here on c-span, we're going to break away for our live house coverage. they're coming back in momentarily to continue debate on the 2012 energy and water projects bill. the fifth appropriations bill the house has dealt with so far. a number of amendment votes ahead and more amendments to be considered this afternoon as well. also in washington today, we are covering ben bernanke, the federal reserve chair. he's testifying before the senate banking committee. that's under way now live on c-span3. this

institute, dm: from the derivatives trading clearing corporation and also shani brummer shani from jpmorgan securities. and we learned about some of that potential consequences of various decisions that we might make in the congress regarding our approach to the debt ceiling. the members who were present were free to ask questions and i would say that it was a lively discussion. so we will take your questions and if you have questions for anyone advice, just direct them to the appropriate number and we'll all together. >> one of the perception that this meeting the purpose of it is people who work on wall street to credit ratings can tell members of congress who might not believe it or be on board not to mess up the debt limit bill matter what happens if it have to be raised. >> we had a dispassionate and objective discussion from a diverse set of points of view about what the potential consequences might be. check the related if the debt ceiling is not raised by august 2nd. and also, potential implications of the long-term approach that we take as well to this issue. clearly the markets ar

a couple weeks ago, jpmorgan ceo jamie dimon asked fed chair ben bernanke whether regulators understand the full impact of sort of the forthcoming regulatory environment. and it is a common criticism from some quarters people say well, overregulation making us less able to compete. is there any validity to that concern, that criticism? >> well, i think going back to capital, i think at that we have done a lot of cost benefit analysis already and overwhelming weight of the literature shows that, 10% i've been calling for is actually moderate range of what studies would justify based on cost benefit analysis concerning payoffs in terms of system stability in terms of reducing severity of the next crisis with out impact on lending cost. i think some of this extend more from the inner play of the derivatives regulation, the volcker rule, and i think on that score that is going to be more of a phased-in approach and perhaps with the, under the auspice of the fsoc, financial stability oversight council we could do analysis of interrelationship of these rules. that is not to say we shouldn't m

the most respected bankers have said it, jpmorgan chase, jamie diamond said default would be catastrophic. investors have said it. bill gross sent us the warning yesterday. he said, quote, there should be no question at all. the debt ceiling must be raised and not be held hostage by budget negotiations. don't mess with the debt ceiling, washington, is what bill gross said. economist have said it, ben bern -- bernanke has said default would be a major crisis that would send shock waves through the world financial markets. yesterday he said failure to avert default would mean huge financial calamity. even other republicans have said it. this is what speaker boehner said in april. quote, not raising the debt limit would be serious. very serious. implications for the worldwide economy and jobs here in america end of quote. perhaps most telling of all, all three rating agencies have already sent warning shots across. last night, moody cautioned us that america's aaa, triple a rating, was already on review for downgrades. never in the history of the country has that happen. being reviewed to do