tied to the london whale case. preet bharara. the sheriff on wall street and also u.s. currently taking questions and answers from the media. the first question we believe was has anyone been arrested? apparently no one has been arrested yet, but the maximum that these true traders would get would be five years. let's listen in. >> well, i think the people you said at the beginning which is the document speaks for itself. as i said, the investigation remains open. the allegations in the complaint do speak for themselves, and i'm not going to get into who did what first, but i think as people know in the world that there were a lot of press reports about what was going on within the bank almost as soon as it happened and that everyone jumped ton quickly. mr. canales made the point about the s.e.c. and the same is true for the fbi and u.s. attorney's office. yeah. [ inaudible question ] >> yeah, again, i'm not going to talk about what else may happen in connection with this case. mr. canales can talk about this from the s.e.c. perfective. these are the charges we brought

and according to quote sources the london whale himself will not face u.s. charges so why the possible john corazon redux the media was repeatedly used as a tool to float the idea that would walk free and now we have this london whale story that doesn't have nearly the grassroots movement that and the global did but members of congress don't like angry phone calls or answering them and in bed bob togs fakey time staffer former assistant treasury secretary paul craig roberts and i profiled purdue pharma and here's one thing our prime interest. despite massive the u.s. is now able to borrow it record low rates thanks in part to quantitative easing it is a world of this information and misinformation in which facts are fiction and abstract theories are substituted for empirical reality not unlike the movie the matrix in which an entire population lives in an alternate reality now those are the thoughts and words of paul craig roberts who i spoke with earlier he is the author of the failure of laissez faire capitalism and former assistant secretary of the us tre

this time over the firm's massive london whale again. possible arrest looming.l they lose fait face the bag giant? is this a scratch? we will have a very interesting discussion about this with top banking experts. and speaking of legal troubles, saic capital hedge fund bracing for a mass exodus of investors. forget about employees. talking to a money manager, the last time we had him on he said he was keeping his mind with the firm. is he staying on that path or is he getting ready to pull out? we will ask him live. my mantra? trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men axiron is not for use in wen or anyonyounger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregna and children should avoid contact where axiron is applied as unexpected signs ofpuben or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell

as part of their investigation into the so-called london whale losses which have topped $6 billion. bc u.s. prosecutors are seeking the extradition of javier martin who worked in the bank's london office and was the trader's direct supervisor. the other person is julian grout who was a junior trader. reports say grout was responsible for recording the prices of positions on the books for jpmorgan's chief investment office. the timing of the arrests and extradition are reportedly unclear, and lawyers for martin and grout aren't commenting. cnbc has learned both are being represented by london law firm kingsley & naipley. he is cooperating with authorities and isn't expected to be charged, but his cooperation is essential to any arrest. now, the london whale losses have sparked multiple civil and criminal investigations as well as several congressional hearings. about a dozen jpmorgan employees have changed jobs, and some include i including ina drew have left. ceo jamie dimon saw his 2012 bonus kit by jpmorgan and a shareholder proposal to strip dimon of his dual role as chairman and

breaking news in the jpmorgan "london whale" case.re about to lay out criminal charges against two former traders that could be going to prison for 25 years each. we'll bring you the news conference live in just moments. >> finance expert josh rosner is here to break down the case. plus why he said the tide is totally turning against the banks. >>> the latest on the deadly crash of a ups airbus jet in alabama. investigators are racing to find out what brought it down. ashley: first stocks hitting session lows in the last half hour. time for stocks. let's go straight to lauren simonetti on floor of the nyse as we do every 15 minutes. we're off 110 points on the dow. >> certainly it is lower. the markets took another leg down. the low of the session is 15, 315 on federal reserve governor, bullard saying fed has to hit the 2% inflation target it set and with those comments the markets took another leg down. we have two stocks today, one a winner and one a loser. jc pane any, put out -- macy's is down, one of the biggest losers on the s&p

york stock exchange he eventually chose or help to choose the new york fed itself and it is the london whale simply john chorus line a slash m.f. global readouts two stories are being floated in the media today the first by bloomberg regards j.p. morgan which is negotiating with regulators over the derivatives debacle that cost the farm over six billion dollars according to quote people mr diamond's firm will likely get off with only a fine. and according to sources the london will himself will not face u.s. charges so why the possible john corazon redux the media was repeatedly used as a tool to float the idea that course would walk free and now we have this london whale story that doesn't have nearly the grassroots movement that a global did but members of congress don't like angry phone calls or answering them and in bed bob togs fakey time staffer former assistant treasury secretary paul craig roberts and i profiled purdue pharma and here's what they hear prime minister . despite massive the u.s. is now able to borrow at record low rates thanks in part to quantitative easing it is a worl

now the london whale is reportedly no longer the focus of the doj's investigation. >>> also a favorable weekly jobs report helps stock break a three-day losing streak. karen, good morning. >> good morning, brian, let's get to some more stories. the latest industry stats show that the west and the sun belt ask where the most increases are happening year after year. if you look at the top ten cds with the biggest increases, the sacramento area, if you bought a year ago, you would be sitting on a paper profit of 39%. elsewhere, t-mobile has released some data about new subscribers. the bulk of them were actually the very valuable contract subscribers. about a year ago -- this is a massive turn around. it's managed to do that on the back of offering less complicated contracts. there's enormous frustration about these two-year locking periods and also expensive data contracts, and t-mobile has been able to offer something different and that's why the customers are coming in the door. >> it's amazing how much household income goes to phones and data plans. back to school is in full swing, so

over london whale prices.ce may be having to admit guilt. >>> global demand for oil from opec countries is expected to climb this year according to the international energy agency. it increased its demand forecast for opec oil to 29.8 million barrels a day, a rise of 200,000. the iae warns that disruptions in iraq and libya will reduce the group's output in the coming months. the latest report, they say america's shale boom is protecting the world from steep prices. m nymex and brent slightly sharper today. julia, how is oil and gasoline prices? we have seen massive drawdowns on inventories in the united states, which has boosted the wti. how is that playing into the sort of economic forecasting and the fed's thoughts? >> well, i mean, i think we had a little bit of a bump up in energy prices. but really basically for the u.s. consumer energy prices have been bumping around, but basically flat over the last few years. the energy boom in the u.s. has really put an effective cap on energy prices here. so, yeah,

. >>> next on "money," two former jpmorgan traders are charged in the "london whale" scandal.ho should pick up the tab for white-collar crimes? we get an all-star panel to weigh in on that one. >>> "who made money today?" it was a rough day on markets but these guys are not playing the blues tonight. a hedge fund giant gave them one grand deal and we'll tell you why. stick around. "piles of money" coming right up. ♪ my mantra? trust your instincts to make the call. to treat my low testosterone, my docr and i went with axiron, the only underarm low t treatment. axiron can restore t levels to norm in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increa

iksil is called the london whale because he was based in jp morgan's london office and put on monster-sized trading positions. the justice deparmtment and sec are still investigating the bank, but the whale trader is said to no longer be the focus. things are looking up in the u.s. according to bruce flatt. he's the ceo of brookfield asset management and is often refered to as the warren buffett of canada. brookfield already has $100 billion in u.s. assets, and flatt tells cnbc there continues to be a lot of investment opportunity in america. flatt says he's bullish on the u.s. because housing, retail and manufacturing are all making a comeback, and he sees possibilities in the shale gas revolution. flatt also mentioned he's looking for value plays in europe and emerging markets. it's always fascinating to know how billionaires are investing *their money. insider monkey reveals warren buffett and others are buying shares of davita. the company owns kidney dialysis centers. billionairs are also bullish on sirius satellite radio company verisign. another popular stock with 1-percenters is an

reports say javier martin artajo supervised bruno iksil the trader known as the london whale.iksil put on large trading bets that cost jp morgan more than $billion dollars. spanish police say martin artajo turned himself in. he's charged with hiding the bank's lossess. and remains free in spain while the u.s. requests his extradition which could take months. activist investor daniel loeb has a collector's eye for stocks. loeb's third point hedge fund revealed this week it has a 5.7% stake in auction house sotheby's. the stock rose 3% on the news. loeb, who's ranked among the top 200-art collectors in the world by art news magazine, says he plans to engage in a dialogue with sotheby's board. rival auctioneer christies is revamping itself to conduct business in the digital age. he's been known to acquire a large stake in a company, and then fight to make changes in the boardroom. the summer heat is helping some crops around the nation.. while causing others to whither away.. jack scoville of price futures group joins us this morning... what's the latest on corn prices.? prices a

adam: this means that there could be others chargedn the "london whale" case or is this the end of it there e other investigations. federal reserve. u.s. banking authority in the u.k. both traders were based in london. the u.k. financial conduct authority is also looking into this. so the investigation isn't over. we should point out that martin-artajo is a spanish citizen. julien grout is a french citizen. the question will they turn themselves in to investigators here in the united states. prosecutors are hopeful that will happen but d defense will they mount? will they cut a deal or say look, this was approved by our superiors. that could open up a whole can of worms. that i not good news for jpmorgan chase. adam: you bring up a great point a can of worms. >> yeah. adam: two gentlemen they have to prosecute if guilty and two gentlemen might have broken the law and cost the bank roughly 6 or $7 billion. versus investments banks, commercial banks, ratings agency, freddie mac an fannie mae which cost the entire economy cost us 7 trillion and good that the government is on top of it. >

when you look at the london whale, you think of stupidity.f a trading mistake with their own money, but fraud? >> right. an that's what's troubling. >> yeah. >> and i think the point i'm trying to make here is that the s.e.c. should be looking to punish more of the bad actors and not just the corporate entities, because the end of the day, it's the shareholders that will suffer the pain of a multimillion-dollar or $100 million fine in this case. and was just very important to point out, in a situation like this where they are going to require, as is the new policy, an admission of liability, that is going to open the floodgates potentially to civil litigation on this very matter that would not have otherwise occurred had this new policy not been enforced. >> that's absolutely right. that's probably the most important point here, andrew, because once jpmorgan says, yes, we admit wrongdoing in the london whale trading case, that opens the floodgates in terms of further lawsuits. why would they do that when we all know this was a stupid mistake,

york stock exchange he eventually chose or hope to choose the new york fed itself and it is the london whale simply john kors minus slash m.f. global redux two stories are being floated in the media today the first by bloomberg regards j.p. morgan which is negotiating with regulators over the derivatives debacle that cost the farm over six billion dollars according to quote people mr diamond's firm will likely get off with only a fine or a slot and according to sources the london will himself will not face u.s. charges so why the possible john corazon redux the media was repeatedly used as a tool to float the idea that would walk free and now we have this london whale story that doesn't have nearly the grassroots movement that a global did but good members of congress don't like angry phone calls or answering them and of bed bob hogs fake former assistant treasury secretary paul craig roberts and i profiled purdue pharma and here's what's in your prime interest.

morgan's london whale nor was it j.p. morgan's derivatives book its manipulation of the energy markets or its bogus mortgage backed securities this was a whole different ball of wet wipes and lard this was. burke tell us more stacey yes max this is fat bergen it was lurking in the sewage system here we're going to use this as a metaphor for the global fat burger fraud going on around the world so first let's look at this thing that was in the sewage system here blimey it's slimy meat fat bird london sixteen point five ton confluence of wet wipes in lard the thirty three thousand pound berg came from modest beginnings flush wet wipes and food waste created from brits pouring grease and fatty foods damage drene fat bird creation is a vicious cycle thames water media relations manager simon evidence told henry gibraltar of cities fact clings to wipes wipes cling to the fat oh right it's big as two of these huge london buses and they noticed it because the water in the toilet started backing up so this is analogous to the deb

morgan who is the london whale struthers is the that's the bubble that they've created based on so years occur you hear the old loot is either going to get all that money and they're going to replace it on their balance sheet and there's going to be going to exclude you from wall street because you have a good start oh sure the phone up the stocks you were going are sixty billion and money it's a perfectly sound institution there's nothing risky about j.p. morgan's balance sheet is very sound you can tell just by looking at the bell there's no risk here there's no problems there. that's well so these bank lobbyists have been of course they own the congress now this is by the way one of the reasons why teddy roosevelt went after the trust. he thought they had too much power over politicians and he also thought the wealth and income gap was very dangerous and he was afraid of revolution so this is why he went after these trusts and bust them up we have a very remarkably similar situation now in america with the wealth and income gap just as bad whether or not i doubt they'll be revolution

a news conference bringing charges against two former jpmorgan traders tied to the london whale chaseera, known as the chief of wall street, about to take the stage. we'll bring that to you live. bob pisani and kate kell and herb greenberg and possible binsy as well. thanks for joining

knows how many trillions are quadrillions and liabilities but they also lost nine billion on the london whale in the course of weeks so here are these they're complaining that two hundred of these credit unions have more than a billion dollars in assets j.p. morgan is proud treated very strictly it's a credit the cold was a very secure side and then they took some other mortgage backed securities in the bank of short sold some silver and then they want to the fed and they go so no credit for that so you have to add on a new piece here and this is just the morning and later the london whale struthers the the bubble of the rain is based on so use a crude you hear the old loot is either going to get all that money and they're going to replace it on their balance sheet and there's just a gunman because you for wall street because you have a good store goes through the phone up to stocks you were going to sixty billion and money it's a perfectly sound institution there's nothing risky about j.p. morgan's balance sheet is very sound you can tell just by looking at the bellows there's no risk here t

morgan's latest the london whale struthers is the that's the bubble that they've really is based on so use a crude you hear this rollout is either going to get all that money and they're going to replace it on their balance sheet and there's going to be going to be because you for wall street if this is your go to the phone of the stocks you're going to sixty billion and money it's a perfectly sound institution there's nothing risky about j.p. morgan's balance sheet is very sound you can tell just by looking at the bell shape there is no risk here there's no problems there. that's well so these bank lobbyists have been of course they own the congress now this is by the way one of the reasons why teddy roosevelt went after the trusts he thought they had too much power over politicians and he also thought the wealth and income gap was very dangerous and he was afraid of revolution so this is why he went after these trusts and bust them up we have a very remarkably similar situation now in america with the wealth and income gap just as bad whether or not i doubt they'll be revolution just

knows how many trillions are quadrillions and liabilities but they also lost nine billion on the london whale in the course of weeks so here are these they're complaining that two hundred of these credit unions have more than a billion dollars in assets j.p. morgan's balance sheet is basically it's a credit the cold thank you very very security guys and then they took some other mortgage backed securities and they make it short so some children and then they went to the fed and they got so no credit for that so you have to add on a new piece here and this is just the mortgage lenders the london whale brothers the the bubble that they've rated based on so years occur you hear the old loot is either going to get all that money and they're going to replace it on their balance sheet and there's going to be done really because she's from wall street fredricka this is our groceries the phone up to the store actually we're going to sixty. billion and money and it's a perfectly sound institution there's nothing risky about j.p. morgan's balance sheet is very sound you can tell just by looking at the

york stock exchange he eventually chose or help to choose the new york fed itself and it is the london whale simply john chorus line a slash m.f. global redux two stories are being floated in the media today the first by bloomberg regards j.p. morgan which is negotiating with regulators over the derivatives debacle that cost the farm over six billion dollars according to quote people mr diamond's firm will likely get off with only a fine or a slot and according to sources the london will himself will not face u.s. charges so why the possible john corazon redux the media was repeatedly used as a tool to float the idea that would walk free and now we have this london whale story.

this would be the london whale losses. remember the 6.2 and growing.eral billion dollars in losses. well, according to an article that will come out from the "wall street journal," these are just the headlines crossing right now, the sec civil side of this wants jpmorgan chase to admit wrongdoing in any london whale settlement. now this would be a departure what we usually see from the sec. usually banks get a slap on the wrist. they neither admit nor deny any guilt and then they pay a fee. this would be different. they would have to admit to wrongdoing, not necessarily criminal wrongdoing but some kind of negligence. they're seeking more admissions according to the article of wrongdoing in civil settlements. and officials believe that jpmorgan chase would be a good candidate for an admission in this kind of situation. now earlier today we learned that the london whale trader, bruno ixel, will face no charges related to the $6.2 billion trading loss. i believe it has risen to about 9 billion in total losses for the bank. he is cooperating with the gove

kate kelly, what are you hearing on the jpmorgan london whale case? >> mandy, the man who was given the nickname the london whale in connection with jpmorgan's losses will not be prosecuted by the department of justice in terms of losses, potential mismarking or hiding of profits in 2011. he's reached a non-prosecution agreement with the department of justice from what i'm told and the staff of the securities and exchange commission, the staff of the cftc are going to recommend to the full commission that he not be charged civilly, either. he's been cooperating with investigators as part of the jpmorgan london whale investigation that's been going on for about the past year. we are expecting a likelihood of arrest of some involved in the trade as early as tomorrow, and more details, of course, on that and we do know for sure that bruno iksall will not be charged. >> clearly it pays to cooperate. >> thanks for joining us. >> coming up next, the cbs/time warner blackout is one retailer's gain. we'll tell you who it is and a tv built for two, and we'll d

the sec is now making an unprecedented move over the london whale debacle.s the sec doing all this right now and are they picking on jamie dimon? perhaps because he doesn't like a lot of what is happening right now? former sec chairman harvey pitt weighing in on whether or not the sec is being used as a political tool. that's next. ♪ lori: all right. as we close out the week here, let's show you the market drivers. stocks dropped from last week's record highs as all three major indexes post their worst week since june the s&p snapped a seven week winning streak while the dow closed the week lower for the first time in six weeks. >>> telecom and utilities were the worst-performing sectors. >>> oil on the other hand climbing for the first time in six days after china's industrial production rose more than forecast. china is the second largest oil-consuming country and crude rose 2 1/2% to close at $105.97 per barrel. >>> gold rising for the third session in a row to post weekly gains. the precious metal climbed $1.70 an ounce. to close at $1313.40 an ounce, da

chase employees in connection with the massive 6 billion-dollar trading loss orchestrated with the london whale. the two traders who were both based in london are accused of false flying records to conceal the size of the bank's losses. here is part of what the u.s. attorney of southern district of new york had to say about the charges he filed today, and the impact on investors. >> the defendants deliberately and repeatedly lied about assets on the books to cover up massive losses that mounted months after month ps at the beginning of 2012. those lies misled investors, regulators, and the public and they constituted federal crimes. >> a tragic day for ups. a large ups cargo plane crashed and burst into flames killing the pilot and co-pilot this morning. nobody on the ground was injured. no december streistress calls w the cause is under investigation. >>> the political turmoil erupted into violent and deadly confrontations between military police officers and supporters of the ousted president mohamed morsi overnight. a nighttime curfew is imposed. the latest on the bloody protest now from cai

the london whale, something nobody wants to see. kind of crisis, these regulators ability like teenage drivers and overcorrect into head-on traffic. we shouldn't be looking at clamping down on our financial markets just because we're fearful of another crisis. we do need regulation. but again, we need it to prevent criminal activity. >> i see something even more sinister here. jamie dimon was very up front about his criticisms of new laws, about the government overreach. he was one of the few ceos to stand up and say enough is enough. and i see this as punishment by regulators. >> no. i think if that was the standard by which the government was deciding who ought to be investigated and who ought to be looked at -- >> then the irs wouldn't be doing what they were doing either, right? >> you would see a lot more people on wall street being investigated for different things. what happened in the financial crisis brought our economy to its knees. yes, some of this stuff ought to be investigated. yes, we've got to do a deep dive into mak

this is what preet said during the london whale news conference.his. >> capitalism works best when its captains do not lie and cheat. capitalism works best when its biggest beneficiaries play by the same rules as everyone else. and that is why prosecutors need to be even more aggressive, regulators need to be even more vigilant. and as i have been saying for some years now, companies themselves need to pay closer attention to the cultures that they create. >> there you are. he's talking about the cultures that are created in various banks and investment companies out there. >> what i am telling you is that i believe the 7,000 banks that were out there, that did no wrong, had a very positive culture. 20 different. so you're going to punish the 7,000 who did no wrong? i don't understand even the comment by this person. >> what about too big to fail? what about too big to fail, dick? what about those banks deemed systemically important and they're too big to fail? those are the same actors there in 2008. >> well, let me say this. when we started our c

the department of justice is naming names as it levels criminal charges in the jpmorgan chase "london whale" trading scandal. the bad bets caused the bank to lose 6 billion dollars last year. federal prosecutors and the sec accuse a former managing director and a former trader of conspiracy and wire fraud. the u.s. attorney for manhattan alleges the suspects mislead investors, regulators and the public. the s-e-c's civil complaint states the traders "brazenly accumulated a massive position in derivatives, then lied to cover up their losses when the market turned against them." jpmorgan chase is not commenting on the new charges. now onto an update on the attempt by lawmakers to breakup the banks. senators elizabeth warren and john mccain are leading the charge to re- instate a section of the glass- steagall act that would seperate traditional banking from investment banking..politico reports lawmakers in at least 18 states have introduced legislation calling on congress to break up the banking business.some members of the tea party don't want government involved with bank rules. citigroup i

people who lived in the uk, worked in the uk, and, in fact, what they're being accused of, the london whale ceo was a london-based operation. >> there has been any wrongdoing here, it's clearly been on our patch. what ought to happen in a perfect world is the prosecutors should be working together but where they would say, look, this needs to be prosecuted here. if there is wrongdoing, prosecute here. the -- as you mentioned, the funny thing here, not funny, but the odd thing is one of the people involved is a french citizen who i believe is now back in france, there is no way on earth france will extradite. they do not extradite their own citizens to america. they have a slightly more grown-up approach to the whole thing than we appear to. >> so, david, to defend the u.s.' position, not taking sides, but i just want to get to the two sides of the story here, could you argue that the uk authorities, the uk police simply is behind the curve? >> definitely. >> in terms of cracking down on financial crime. >> absolutely. i have written about this in many newspaper articles. nature an hye natur

penalties as a part of a global settlement over huge trading losses last year in the so-called london whales scandal. today, word the government's consumer financial protection burro is expected to fine the bank $80 million for selling a credit card identity theft protection service that didn't deliver on promises to >>> another big fine, this one against a huge casino operator, las vegas sands agreeing to pay more than $47 million to settle a federal investigation after it failed to stop money laundering when a gambler with known links to drug trafficking made millions in money transfers through gameling operations. >>> colleges everywhere are back in session this week and tonight, nig"nightly business report" looks at new and creative ways people are paying for school and making that college education really pay off. in the first of three reports this week, marry thompson tells us how some schools are letting students get credits at cut-rate prices. >> reporter: there is no mook you but mooks are massively open online courses are a small but growing presence like san jose state university.

charges have been brought up in the jpmorgan chase london whale investigation. manhattan u.s. attorney has brought conspiracy and wire fraud charges against two former traders known for outside derivatives bets that led to a $6 billion loss for jpmorgan last year. >> regulators need to be more vigilant. as i have been saying for some years now companies themselves need to pay closer attention to the cultures that they create. >> and elsewhere an airline delay, justice department filed suit to block the proposed merger of u.s. airways and american airlines citing concern of reduced industry capacity. the proposed merger would create the world's largest airline with more than $48 billion in annual revenue. >>> barry knapp, head of u.s. equity at barclays. zachary contractorabal president of river twice research and reuters and the atlantic, good did see you, thanks for joining us. what a week, triple-digit losses, a couple of rough days. biggest sell-off in the market since june. do you think this is the beginning of a correction a lot of people have been calling for, or a buyin

are they vulnerable after what they've been through lately with london whale and so forth? >> it's not a question of vulnerability. it's a question of what facts are coming to light and what information do different parts of the government have at any particular time. there is no grand plan. i speak not based on knowledge of these particular investigations, but having been a prosecutor for 11 years. that's simply not how investigations unfold. >> but we all know that they don't want jpmorgan to be so big. i mean, are the benefits of being big slowly being removed as a result of all of these hits? too big to fail. is that the big issue here? would you like to see jpmorgan broken up? >> i have no view about the matter, but i think the point is, who is the "they"? if the they is the government at large, different parts of the government don't necessarily speak to other parts of the government, and coordinate a plan to destroy a particular institution. that is not how -- based on my experience -- the united states attorney's office for the southern district of new york function