. >> all right, breaking news, we want to go to kate kelly. kate? >> thank you, melissa.e understand that the u.s. department of justice is in the advanced stages of a probe into the so-called london whale traders formally working with jpmorgan. these are the folks who were involved with the london whale debacle that lead to $6 billion in losses for jpmorgan in its chief investment office. in an attempt to sort of hedge exposure that they had as a bank through a series of complex credit trades that went terribly awry. the d.o.j. is looking at questions if they mismarked intentionally and ultimately hid losses. all of which could be the basis for a securities fraud claim of the criminal nature. and they've been investigating for some time. jpmorgan acknowledged that the d.o.j., among other investigators were looking for documents and other information in association of the credit losses that occurred last year. we knew that much. this takes it to another level to note there are individuals who are being targeted here in london, former jpmorgan traders involved in the losse

it's always big news when david tepper makes a call on the markets, so let's bring in kate kelly with exclusive information on where the hedge fund titan thinks stocks could go. kate, we've been waiting for this. >> well, i'm looking forward to telling you about it, scott. i'm told by someone familiar with his thinking that tepper remains extremely bullish on the markets and thinks the s&p could see a rise of 20% or more by the end of this year. the market seems largely comfortable with the current picture both in europe and in congress, he believes. and unless there's an unexpected leg down in the european economy, tepper doesn't see much more than short-term volatility getting in the way of these equity markets right now. if anything, i'm told, he is surprised that the year-to-date hasn't actually been stronger. the key to tepper's outlook, i'm told, is the real economy looks good. he's expected gdp growth to be 2% for the current quarter and sees cash on the sidelines. moreover, he does not believe the expected rotation of institutional assets such as pension fund assets from fixed

to t let's go to kate kelly with reporting that the d.o.j. is in advanced investigation into a probe. kate? >> jpmorgan disclosed that it was being looked at by the d.o.j. in connection with the london whale losses, but we're hearing that that investigation on the part of the d.o.j. is now in an advanced stage and they are honing in on the london whale traders who were over in europe and putting together the trades that made up this synthetic credit portfolio that got jpmorgan into so much trouble, $6 billion in losses. we understand that issues at play here are the marking of those positions, brought to light last week in a senate hearing and has been brought to light by jpmorgan's own internal research. and the question if there was securities fraud committed in the marking of those books and an attempt to hide losses. these individuals are no longer with the firm. they've been talked about a lot in the context of what went wrong here and i'm sure they'll continue to be. but the department of justice is looking closely at their behavior to s

kate kelly, what's on your radar. >> a bailout in cyprus and potential bond market sell-off?>> i'm jon fortt. i'm going to talk t-mobile's no-contract plans. i'll give you a hint, apple does not need to work. robert? ivities i'm going to talk about the world's most expensive personhouse. it comes with its own pool and waterslide, 500 feet above land. if you've got $330 million, wee tell you where to buy it. julia? >> we're sigh the big money stream into media, but not just traditional players. coming up we'll lay out the battlelines. >>> the island nation of cyprus. let's get to michelle caruso-cabrera on the ground with proof positive that your money is not always safe in a bank account. michelle? >> no, absolutely not, simon. within just the last hour, the minister of finance in this country and also head of the center bank wrapped up a meeting with reporters, where they explained the situation with the banks. they're very confident they will reopen on thursday with lax capital controls. they weren't specific about the withdrawal limit b. but they do seem to think it will f

kate kelly. kate? >> reporter: thank you so much, melissa. after a nine-month investigation, the senate permanent subcommittee on investigations has come out swinging against both jpmorgan and the derivatives industry broadly, saying that the bank amped up risky positions in its cheap investment office, had a paucity of risk and financial controls, and that it dodged regulators, leading to a slew of misstatements to both investors and the office of the controller of the currency, among other parties, before of course jpmorgan ultimately swallowed about $6 billion in losses as part of its now infamous london whale trade last year. in a briefing with reporters earlier today, senator carl levin took to tax both jpmorgan and the derivatives industry in which the bank is a huge player, arguing that the systemic risks are significant and need to be addressed through a tough implementation of the volcker rule. which are not regulated properly for the economy. he also said there is a lot of evidence that

our kate kelly is live on the hill, and i was struck, kate, by how much finger pointing by ms. drew and others in the testimony this morning and the q&a session. >> yes, sue. it is a real finger pointing session all of the way around. senator carl lechb is up there by himself at this point. he was originally with john mccain and one other, and they have left so it is essentially a one-man cross-examination of a number of witnesses current and former jpmorgan executives, and there is a lot of buck passing going on and a lot of things to the effect of i said what i knew to be true at the time, be but in hindsight, i was wrong. listen to doug bronstein who was at the wheel of the scandal regarding such a thing in regards to his comments on an april 13th earnings call last year. >> senator, the obligation on the call and the only thing i was thinking of was reporting based on what i knew at the time, the information as accura accurately as i could. in hindsight, senator, the positions and the portfolio did not act as a hedge. it changed dramatically. we misunderstood the risks. we

kate kelly, kpix 5. >> the have a ball now holds tournaments in sunnyvale and danville with more than.com, click the "connect" button at the top of the page and then down to jefferson award. >>> paul, many of us last night went to sleep listening to the rain and wind and now we are getting a little break but more to come, right? >> the sounds of winter will return tomorrow. that wind was howling. >> it was. >> big time. >> and the debris in your yard is the evidence that, yes, it did happen if you slept through it. good for you. i couldn't. here's a peek at the radar right now. we are getting a break. there is nothing on the radar. we dealt with scattered showers earlier this morning when the lawrence had the forecast you. when lawrence is back tomorrow morning, that's when things get active again. here's a peek outside. that's a beautiful view from the dublin camera looking toward the 580 corridor. temperatures falling. livermore down to 51. concord 51. santa rosa 51. san jose 53. let us take you to the nation's capital to the white house, where it snowed in washington, d.c. today. i

kate kelly has the story.. >> let's not get overly concerned, but it's something to keep in that mind. no doubt it's a agreed run for u.s. bonds and paper so pricey even credit card vet advance -- take a look at some of these charts, showing the riskier stuff is flying like collateralized loan obligations have skyrocketed in popularity in just the past year, especially in assets like leveraged loans. the euphoria is making some big money managers nervous, and they're hedging for a potential falloff that could potential cause widespread pain. one area of vulnerable could be retires, and pension funds, for example, which really favored fixed-income investments, according to research from merrill lunch among others. some of forays into commodities have not worked well, not shown yield, and equities to many of these managers have felt simply too risky, perhaps until now. with the s&p up more than 9% year old to day and potentially closes, market participants are asking when will they rotate into stocks in an effor

as kate kelly reports, this week's jefferson award winner does it all out of his own garage after workn't that long ago that putting practice with his family would have been unthinkable for bob hammer. at 29 years old, he was diagnosed with testicular cancer. his daughter shana was just one. after 26 rounds of chemotherapy, having more children seemed impossible. >> i had about a 20% chance to live at that time. >> reporter: but bob did survive and three years later, he and his wife, kim, celebrated the birth of their son, josh. much of the credit he gives to the doctors he met through the livestrong foundation. >> the end result is we conceived our son josh naturally a year and a half later. i wanted to find a way to give something back. >> reporter: when bob beat his cancer, he wanted to do something to pay it forward. so he started a golf tournament, hoping to raise $2500 to fight cancer. eight years later, his have a ball golf tournaments have raised over $1.3 million. >> i would spend every night for three years, learning google, for one, learning how to find somebody's e-mail add

. >> kudos to both jim cramer and to kate kelly because kate kelly was the one telling us, breaking thethe refinery buy. then you look at cramer's pick and lcc, u.s. air, with the merger, making them the largest carrier. >> cramer, whether it was a week or two ago, recommending airline stocks for the first time in maybe ever. but certainly for a long time. >> well, we're going to talk about home builders later. i would much rather own airlines than home builders -- >> i'll debate that tomorrow. >> the valuation is pricing in at a low point. >> we have to fire up a good debate on that one. let's do the biggest pops and drops in mid day trading. adobe is up 4%. >> they gave you some great projection. they're doing everything right awe adobe. i think it's in front of itself, judge. great opportunity. >> what's happening with chesapeake energy? this is dropping 2%. >> chesapeake has had a real struggle ever since the earnings numbers. i think it's one to stay away from even though icon has been offed off and on for a while. >> anadarko is getting a pop. >> yeah. this could be the biggest ev

kate kelly. >>> no secret the dow is trading at record highs.he question, how much higher can it go and how should you play it. to mandy drury now. >> dow 15,000. that's what we want to know today, will it reach that level this year. i want to start with you, rich. the last leg of the rally has not had a clear catalyst. is this momentum we're seeing here? >> mandy, that's part of the equation. let's look at money managers. according to a private firm, at cambridge mass, they're saying manage manager the last week pulled $4.2 billion out of commodity funds and a lot of that was in precious metals and other markets, dropping those markets. that cash then has to go somewhere. we believe that a little bit is going into your dow, breaking out, making new highs. s&p and treasuries. they're all kind of moving along together. today we're breaking out of the dow here, above 14,130, close above this level and i think the momentum potentially continues. so i think this say bit of a sector rotation. if you look at the chart from back in november, we rallied

kate kelly has the lowlights of that hearing, as it were. kate? >> very well put, bill.his hearing is still going on. we're more than five hours into it, and subcommittee head carl levin is still putting folks on the grill. in this case, it's a group of three regulators from the office of the controller of the currency, controller himself thomas curry, as well as examiner scott waterhouse, who had the direct relationship with jpmorgan's chief investment office at the time of the london whale debacle. interesting words from waterhouse on a somewhat heated exchange that he was present for with ceo jpmorgan jamie dimon. dimon thought that some e-mails going on a daily basis from the occ were essentially extraneous information with a level of detail they didn't need, according to waterhouse. let's listen to how he put it. >> early in the conversation, he was pressing me as the to, why would you need this information. what good is it? what do you use it for? i don't think you need this amount of detail. you can still do your supervision without it. >> for what it's worth, tho

cnbc's kate kelly is here with that story.e're talking about big market players and the way they're viewing the market right now. >> that's right, scott. interesting hearing the debate i did in terms of equities and economic factors. let's take a look at credit because just like the equity market, bonds have been on a tear so far this year and recent years. with credit market veterans telling me most europe and u.s. paper is simply too expensive to bother with. some major players actually think the euphoria is going too far, like brian kelly in stocks, and we could be headed for a pretty big correction within the next year or two. take a look at data from deallogic and get the 2007 feeling as well. issuance of leverage loans at its highest level in five years. same is true of high-yield bonds. remember clos, at its highest since 2008 and up more than twofold year over year in 2012. new york fed chief bill dudley in a speech yesterday spoke about frothy activity in these areas. a level of complacency about ultra low interest ra

kate kelly joins us with a special guest. >> sheryl sandberg has an interesting message rooted in staics about the lack of women in top positions. she highlights only 14% of top jobs are held by women globally. kathleen kelly who runs queen anne's gate, the hedge fund, is an exception to that. she's had a storied career in finance starting with a few years at the new york fed and going on to work or paul tudor jones and starting her own fund last year. >> thanks for having me. >> give me your reaction to sandberg's call to arms. she's arguing that women take themselves out of the running even before the hurdles with work/life balance or other issues that come up. have you found that to be true in your own career or have you seen examples of it? obviously you have ultimately been on a fast track. >> i don't think that -- certainly there's occurrences where women are taking themselves out of the running. but i think it's great that she's taking a strong statement on this. and i think there are certain things -- it's not an easy problem to fix otherwise we would have fixed bit now. but t

on my board today, cnbc's kate kelly. she covers high finance.all street insiders and high rolling world of hedge funds. kay la covers wall street and big deals. robert frank covers big money, big power, and yes, big spending too. also today, henry blodget, he is with business insider, but he is moonlighting here on "power lunch" today. welcome to all of you. you is a you it in the open, theme of the hour, one tough week. there you see them on the wall. we're talking ackman, mason, johnson and washington, just for starters. we start with groupon's founder and ceo, andrew mason. fired. no question about it. the stock's been a stinker. down 75% in a year. but up, 8% today now that he is out. henry, i'll go to you first. he has left the building. >> with a graceful letter, took full responsibility. said hey, i'm just resigning for family reasons. no, just kidding, i was fired. he should have been fired. it was time. but i think people are very too quick to jump on him and say he did a terrible job. groupon is still an amazing success story. although

i don't know if you heard it, i just bet kate kelly gold in a year will be below 1500 an ounce.ys i'm insane, who do you think is right. >> i think you're both insane to take the bet. i don't think anybody has a clue where gold will be. look, it's clear gold has become in her words sort of a commodity fatigue trade. people are tired of it, it's gone up a whole lot. i think at this point the fundamentals haven't changed a whole lot. right now we're seeing the substitution trade for the hot young asset class called stocks from what we understand they don't go down anymore. >> what happened? for the longest time they were going in lock step, right? both gold and stocks moving in lock step, moving like a risk asset. where was the divergence and why? >> i think what happened was end of qe3 and quantitative easing becoming more prevalent, more visible. people are beginning to say the reason i bought gold is because of all the additional liquidity the federal reserve systems around the globe are putting into the system. and that's beginning -- the sort of rate of change is beginning to

. >>> kate kelly is here with a story and an interesting one with that. >> dan loeb is cooking with gass year with 6% through february and one of his bigges s wins of late, agreed to be purchased by liberty global in a $16 billion deal. that deal was announced on february 5th sending virgin media shares up 18% on heavy volume. since then, however, virgin has been trading in a tight range. and even if you got in the cheapest point after february 5th, hard to see how you could have made a few more percentage points if you bought it later in the month. declined to comment on the fund's timing why it chose its position, but we knew from the last filing it didn't own virgin media on december 31st. the february letter lists it as one of the fund's biggest winners suggesting strongly that the chief bought shares before february 5th. traders tell me there was buzz about the deal a few days prior, but for all we know it was old-fashioned due diligence. >> thanks for bringing the story to us. >> you're very welcome. and we hope to get more in the quarterly letter which will be out in a few weeks.

specifically private equity names and kate kelly got the lowdown on the private equity stocks. eeing a renaissance for names like fortress investment group, kkr and blackstone with massive rises relative to the stock market. take a look at fortress and kkr in particular. kkr has gone up 33% in the last four months and fortress a whopping 67%, but the biggest names occurred this calendar year. and we've seen a huge upsurge? 2013. one is the portfolio investments these companies made in their own books before the financial crisis may now be coming to their so-called harvesting period where of course, ipos and other liquidity events allow the private equity firms to cash out and hopefully at a profit and that leads to dividends known as distribution in the business that add to the value of owning equity. >> in general it's a play on the improving stock market in general. as long as there's liquidity on the market and for new issuance, the sponsors should do well as their rationale. still, it's a win to win business. take a look at last year. it's about half of what it was during th

kate kelly is on the hill with the latest on this. >> thanks so much.aring just got under way and we're hearing an overview of senator levin in terms of what his investigation found. we got a hold of the prepared statements that we're likely to hear from former ceo ina drew who just arrived a bit ago. >> i was and i remain deeply disappointed and saddened that such significant losses occurred in the business unit i oversaw and a unit i managed diligently for many years. it involves regular ups and downs i had never before experienced a situation like this one, though i did not and do not believe i bore personal responsibility for the losses, it goes on to explain why she thought it was best for her to leave the firm and that ceo jamie dimon reluctantly accepted her resignation and they were dealing with this synthetic credit portfolio that was at issue and led to more than $6 billion in losses were mostly fired. i think they spray had one person leave under different terms. >> but anyway, carl, it's likely to be an interesting day and we'll be hearing i

in other news on jpmorgan, kate kelly reports that the justice department is in advanced stages of a criminal investigation into the bank's so-called london whale traders. they're looking into whether traders intentionally mismarked positions and hid losses. we've talked about this right when it was happening because it's such a -- you don't even know what the real -- on an ill liquid investment, you're not sure where the marks really are. it's so arbitrary. it's very hard to prove. >> civil, yes. criminal? much harder. >> this could lead to a securities fraud claim by the government. >> also, bank of america's ceo brian moynihan will reportedly need to hold shares likely worth $1 million for at least a year after he retires. this is a change under a new compensation policy there. the bank instituted that change after investor pressure. the policy requires some other top executives to keep a minimum number of shares of the bank at least until they retire. previously, moynahan only needed to hold the stock in the company. meantime, other top executives did not have a holding period re

kate kelly at hq. >>> retirement communities are not just for your grandparents anymore. are so low. diana olick has the details on that. hey. >> you're right. it's all about the prices. incredible deals on condos and a full service community with all kinds of activities and amenities. okay, so most of your neighbors are over 70 but why not? that's just what's going on at century village in boca raton, florida, one of the largest retirement communities in the nature. >> over the past 6 to 12 months because prices have been so attractive we see a very big influx of the younger retirees and soon to be retirees. people are looking at this in term of their long-term future and they want to take advantage of a low prices now. >> so from the height of the housing boom in 2006 to the bottom in 2011, home prices in boca raton fell 53%. that's according to zillow.com. now they're heading up again. now, while you have to be 55 to live there, you can buy at any age. so, that's why the average age of buyers in the past year has dropped from the mid 70s to the low 60s. while the commu

kate kelly at headquarters. >>> to rick santelli in chicago, has some more on what we're talking about> absolutely. thank you very much, carl. i would like to welcome chuck biderman from trim tabs on, frequent guest. welcome, chuck. >> how are you doing, rick? >> good. i really respect your intellect, you write some great pieces, you're a smart guy. so if we're sitting around at a table, and you had some relatives and some of my relatives that aren't really market savvy and watching everything developing, regarding equities, what advice would you give them? should they jump in, stay in if they are in, should they do anything different? most americans aren't into business have third parties doing a lot of their investing. give me your thoughts on all of those. >> as long as they invest -- the investment public continues to be drugged by free money being given by the fed, prices -- stocks will go up, and so if you want equity exposure, if you want to play the game and hopefully can get out before the last -- the music stops, i would buy portfolio shrinking their floats. 100 companies are

kelly's court takes a look at the case. [ kate ] many women may not be absorbing the calcium they takethey could because they don't take it with food. switch to citracal maximum plus d. it's the only calcium supplement that can be taken with or without food. my doctor recommends citracal maximum. it's all about absorption. and you'll dump your old mop. but don't worry, he'll find someone else. ♪ who's that lady? ♪ who's that lady? ♪ sexy lady ♪ who's that lady? [ female announcer ] used mops can grow bacteria. swiffer wetjet starts with a clean p every time, and its antibacterial cleaner kills bacteria mops can spread around. swiffer gives cleaning a whole new meaning. ♪ lovely lady >> one eye opening story about the media and the middle east. it started last november when this gripping photo from the the gaza strip made international headlines. it showed a palestinian father cradling his dead baby with a caption saying the infant died after an israeli air strike. now, a month long investigation by the united nations has it turned up-- turned up a very different chain of events. yester

my clients, the nitty gritty of the styling work, you see me with minka kelly on tonight's show, rusheta jones and i work with katei, with j. brand, we go all over the place, and of course more with me and my boyfriend gary ginetti, you've been with for 12 years. >> he's funny. >> he's great, really good. >> when you watch the oscars do you sit there and judge, judge, judge? >> yes and no. i am friendly with the majority of the stylists that are in los angeles and we see each other all week long so we definitely, you know, go like -- >> people hated that dress anne hathaway. she can wear a paper bag and look fantastic. >> anne hathaway won the oscar for best supporting actress and the fact her dress is overshadowing the fact she gave a great performance is upsetting. my wish is everybody just release anne hathaway and let her enjoy. >> what is it? >> get over it. as opposed to feeding into it and -- guess what? get over it. >> twitter jail is a tough thing to break out of. >> did you work as a stylist as a model do people judge you every time you show up? >> models are allowed to show up in bad clothing and the st