and a fellow named tom lamont, the acting chair of the morgan bank at the time, his real chair, jack morgan, was gal vanitying around the elsewhere. gathered five other bankers together, the most powerful families of bankers running the most powerful banks on wall street, saying we need to do something to save the markets. and they decided with just 20 minutes to throw in $25 million each into a buying pool, tell one of your guys to buy a lot of stock and basically buy themselves, try to boost the market falling around them. i just found that really fascinating, this idea this big six banks. and i noticed today we have six banks and i looked back in time just cursory analysis and there were six banks 100 years ago in the panic of 1097, and they were all largely the same banks. the first part of the century, the same families, now similar legacies. but i started to say, what is that relationship? i was fascinated in other works i had done with the political association of bankers, so i decided to look at the history of the period and look at the real relationships between six bankers,

bank p. dot dot and it seems more beneficial level. j.p. morgan said you need to do this somewhat privately and nelson was hit on madison avenue. he was in new york discussing things with bankers and lived in new york as well and he got hit on 60th street by this madison avenue car he needed to have his meeting at the estate and rhode island. now he's in new york and they have a club membership at the jekyll island club off the coast of georgia and sponsored which is something i found out myself after i went to jekyll island they sponsored this again to work together in secrecy to bash out of this idea. now the sort of cloak and dagger stuff i think it's a little bit exaggerated. i mean it wasn't like you have covered up thhavepaparazzi stard to jekyll island it is really at the time it was off of the coast. you couldn't get there. you certainly couldn't drive their. so it was a pretty secure place already. and that is where they bash out of the plant. and at the end of bashing out the plan, nelson is going to go back to washington to present it t

allies for the war related arsenals and so forth so there was already a strong alignment between the morgan bank and the white house, very regular and very much an idea of the money that's needed to go into the effort was going to be consolidated through the private bank. and then of course where the individuals across the country were asked to invest in america and so forth and that helped them go because they have more customers after them and then the second world war, they sort of tried to do the same thing. there were some different people at the homes of the major banks and at this point, he really stepped into the forefront because of his relationship with fdr and the chase bank as well as citibank there was a relationship with the vice chairman with morgenthau who is thwasthe treasury secretary undr and world war ii vet allowed to these institutions to continue the private financing of the war but also a much larger blanket approach to getting individuals to buy the war bonds and to take out accounts of the banks of the same time so that is the way that they sort of combined helping in t

them in later toe brittany and 29 by themselves and a fellow named tom lamont, acting chair of the morgan bank at the time, his real chair, jack morgan is gallivanting around the world elsewhere gathered by other bankers together. the most powerful families of bankers running the most powerful banks on wall street tuesday we need to do some aim to save these markets. they decided with 20 minutes to turn $25 million into a buying pool, saw one of their guys to buy a lot of stock in basically by themselves try to boost this market that was falling all around them. i found that fascinating. the idea of these pigs experience. i noticed today while we have six thanks i looks back and time and there is expense 100 years ago in 1907 and they were all marginally the same banks are the first century from the same families. now similar legacies. but i started to say what is that relationship? i was fascinated in other works i've done that the political association and others. i decided to look at these are fat. in the real relationships between six tankers, whoever the most important one was at any poin

the tide back from the morgan bank went to the panic of 1907. actually even before that.at one point in time jpmorgan had more money than the treasury department. and in the late 1890s there actually were too many crises at the time. real people, like normal sort of people in the street, main street didn't really have as much invested in the market, they were just impacted by them. today we both have money pensions, deposits invested in them, and we are impacted by them. but at the time there were some panics in the 1890s. the government called upon jpmorgan to help. but the panic of 1907 was a situation in which teddy roosevelt who became president of the united states before that was friends with the morgans. and when he was going about talking about trust busting other industries, he didn't bust the banks. the reason he didn't the banks was because he trusted and supported and was socially involved with jpmorgan and other sort of big bankers of the time. and in addition to that when the panic happened in 1907, there was a trust company called the knickerbocker trust co

or whether jcpenney morgan chase or bank of america all the employers are funding this with the nonprofitsyou for a moment every year i'll tried to do this and third time i get a little bit better just recall for the next thirty seconds who helped you get our first job oftentimes we only think about that we realize someone helped you those are the times when you look at 70 thousand youth of san francisco that will never forget the moment that someone helped them get they're first job and lout them to get the skills and turn from an interview they have their head down to how can i help our company be more expensive with my skills those are transitional periods of time like eric said and their transitional for our city i want to signal to the next generation of youth your future is here in the city and the best jobs exist in the city of san francisco and we're going to link you up to present you in the best way and allow you and your family to succeed so think about that for a moment who helped you get our first job because oftentimes you're goingo

or whether jcpenney morgan chase or bank of america all the employers are funding this with the nonprofits. i want to ask you for a moment every year i'll tried to do this and third time i get a little bit better just recall for the next thirty seconds who helped you get our first job oftentimes we only think about that we realize someone helped you those are the times

>> there are more conservative banks than morgan stanley. in the last five years they revamped their business. the other side of the company, the traditional investment bank, they eliminated the proprietary trading. prime brokerage is back where it was several years ago. you know, if you just take the wealth management side, you have pure plays there that can trade at 12, 14 times pe. if you look at tangible book value, they traded almost above tangible book value. >> who is now going to be even more under the thumb and have regulatory pressure and do you agree that ubs has followed the morgan stanley model? >> ubs was early in getting the memo from regulators. we saw barclay's. better late than never. citigroup has gone some of the way. bank of america, i want them to do more. i was at their meeting last week. >> they have more regulatory pressure coming? >> i think this regulatory pressure, you have it in different ways. you have the regulatory find. you saw eric holder come out saying banks are not too big to prosecute. we'll see what happ

jp morgan is amoung 3 banks charged with rigging the euro market. hsbc, credit agricole, and jp morgan chase are all accused by the european commission. jp morgan says the charges are without merit. hsbc intends a vigorous defense while credit agricole is studying the allegations. on tuesday, jp morgan shareholders approved pay packages for the bank's top executives. including jamie dimon who says he is staying put for the next 5 years at chase. the banks legal fines top $20 billion. medtronic's earnings are taking a hit due to a long running patent fight. shares tripped 2% yesterday. the medical device maker said it will pay a one time $750 million settlement to edward lifesciences, followed by annual royalty payments of 40 to 60 million dollars through 2022. the two companies which have been engaged in a nearly 6 year long dispute over a heart valve patent. president obama is striking up conversations with corporations about investing in america. tuesday, 11 executives from companies that have opened new plants and are creating jobs in the u.s. met

european union official advisory come down hard on three big banks, including jp morgan, for colludingmanipulate prices on financial products tied to a key london-based interest rate. jp morgan, hsbc, and french bank credit agricol face billions in fines if convicted of price -- fixing prices on derivatives linked to the so-called libor rate. >>> finally tonight, what will the u.s. military look like in 25 years? with the pentagon working with smaller budgets every year, will we see a smaller military force? in an industry that focuses more on computers and drones. jane wells takes a look at the future of defense. >> reporter: in 25 years u.s. military forces will have fewer men. >> we can throw it. >> reporter: more machines. it's one of the many trends which frank kendall must fund now. he is the man at the pentagon with the checkbook. sdroo i'm worried about our pipeline of new products. >> reporter: he says due to budget cuts, much of what we will see in 25 years is upgraded versions of what we have now. there will be some new programs for cyber defense, and he hopes to find money

banks right now. let's see. credit suisse, morgan stanley, -- anyway. banks could receive about equal share of the economics. anbaba is providing incentive fee for those banks to work in favor of alibaba as opposed to their institutional [indiscernible] they can get the more money? >> they can get the more money. one third more of the total fee will go toward the performance the which incentivizes them to keep up the hard work during the ipo process. this is something that is more common in hong kong than the u.s. it is a baby have chosen to do to make sure that they are bankers -- their bankers are working in favor of them. >> yahoo! has 22 point three baba.t -- 22.2% of ali they're going to receive the shares. do they have to sell them? what happens to that stock? >> we are told yahoo! will sell on top of its stake in alibaba. it looks like on the filing and from what our sources are telling us, they will sell shares to the ipo and use the proceeds according to filing for general working purposes. that could be anything from expanding headcount to acro

banks are far more straight jacketed than they are. a meaningful return for you the shareholder on anything other than fees will be forgone for the foreseeable. like the j.p. morganr the bank of america bond portfolio. the demons of the past haunt the banks for more than we realize and when you read stress test you might want to thank him for recognizing that someone this h to cheek the greed or at least grade it or flaunt the institutions that don't get that the world has changed. the whole sector is held back thanks to thor e er rrors of th players. >> coming up. >> gluten free food. >> you heard about gluten-free diets. is this fad just a flash in the pan? tonight cramer talks with one of the biggest brand bess hind the craze to see if you can make bread. we're moving our company to new york state. the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no ta

morgan bank and then a few years later when they ran out of suckers they introduced in the t.p. pay to go to countries around asia and say look. as part of doing trade with you we're going to protect you against the you know china down the the enemy and yesterday was the good guys you get but you had to quit pro quo is you've got to take all of our terrible derivatives if you go take all the hollywood movies and owners copyright laws that go against free speech and go against the constitution and that's that's the deal and because in no way are we ever going to reform the banks from ever staying within their means and doing business in a way that's not outside of all known practices good practices as a relates to banking because the banks have a gun to read i'm appeasing the banks i'm an idiot i'm barack obama join me in my quest to be irrelevant well this is what yes that's what i'm saying is that they're stoking war between japan and china and or so that the u.s. says to pan you won't sign this deal you had your protectionist sign our deal otherwise you're going to go to war w

morgan stanley, bank of america, we've got a lot of big banks.azard and rothschild, what is going on? why do we see citi, the barclays of the world higher up? do a lot ofuse they business. goldman sachs is almost always at the top. they have a huge and in a effort. a lot of banks give loans. they say i will be one of your advisors on this, including me as your advisor even though i am here because i'm lending you money. >> do you think we will see more of this? what is the realistic trend? toi think it will continue trend toward more clients to firms like ours that are independent and have no products to sell. we are not trying to sell you anything. we're trying to help you get the best deal. >> a little more old-fashioned, more like a lawyer. quickly, i know we'll have more time, but to me ask you about what is going on in m&a right now. we are seeing a lot of deal activity. why is that? >> it has been a six-year drought in terms of m&a. crisis andinancial cash has been there, all of those reasons he should have been picking up, finally it is. p

morgan bank of america among others were forced to shell out millions of dollars to settle the allegations. look it's one thing for young americans to be lured into the military with the promise of a world class education for practically no money down but to then burden these young soldiers with tens of thousands of dollars and loans that could take the rest of their lives to pay off is criminal. in two thousand and twelve internet hacker and tory a stroll andrew better known as we was charged with conspiracy of the one thousand nine hundred six computer fraud and abuse act and was sentenced to forty one months in prison it was all for exposing a flaw with an eighteen thousand public server which led to the scraping of information for thousands of i pad users but felt an emotion to appeal the sentence last month the u.s. third circuit court of appeals has overturned the verdict on weaves case because it was tried in the wrong jurisdiction the short time behind bars however has made we've even more outspoken than before regarding egregious overreach of the computer fraud abuse act persecute

it's completely fair to call jp morgan chase an unethical bank and they're currently under atag by the public for selling faulty backed securities. in october they agreed the pay a $13 billion fine to the federal government, the largest fine in the history of the banking industry. the government is still still leaving the door opened. here come the privatizers. government is terrible. jp morgan chase and americans for prosperity need to leave detroit alone. eleskted officials should make the decision not private companies and super pacs. it's the new america. this is what it is. this is how they would run every city if they could. americans for prosperity responded with this statement. detroit sits on billions in assets from its water department to its airport to its artwork. the city ought to leverage those assets for the benefit of all of its creditors including it's pencers instead of seek a bailout from taxpayers. sitting on these assets while asking the taxpayer for more money is unfair and irresponsible. so what we have here, folks, is the we89iest of the wealthy who decide to ju

there's a big upheaval in the market, why isn't goldman sachs, i mean, one of the lead investment banks, morgan them, specifically goldman sachs, why aren't they coming out and saying, telling the world what it thinks? it opines about everything. goldman sachs -- liz: and your sources are saying -- >> and these are sources inside these banks are saying they're doing it for one reason and one reason only, there's ipos in the pipeline, specifically alibaba, and -- liz: because if i'm jack ma who runs alibaba and i see, wait a minute, goldman was the lead underwriter and now it's dumping on twitter just six months -- >> or it's dumping on the sector, be cautious with the sector which most normal people would be -- liz: then i'm not going to have goldman be my underwriter. >> and that conflict of interest was supposed to be eliminated because you had separate departments and chinese walls -- liz: so the message to our viewers is what? >> watch fox business, and we'll flesh this out every time. [laughter] i mean, don't trust your banker. ask your broker about this, like who's the underwriter on thes

angie, major banks are reducing risk in russia as the conflict continues. bloomberg reports - jp morgan lowered its exposure by 13 percent from 20-13. bank of america cut its risk by 22 percent and citigroup by 9 percent. all 3 banks are monitoring the situation because future sanctions could hurt business lending in russia. citigroup faces more trouble south of the border... federal prosecutors, the sec and mexico's banking commission have launched an extrordinary review into possbile fraud at banamex. the wall street journal reports... the fbi is considering possible criminal violations. it revolves around citi's $400 million dollar loss at banamex in a business deal with a mexico oil supply company. general motors appears ready to settle more than 300 claims tied to its defective ignition switches. friday a bankruptcy judge told lawyers for the automaker he welcomes avoiding a "monstrous battle". the new york times reports.. g-m has started preliminary talks to settle claims alleging wrongful death or personal injury. the paper also says a there's a possiblity of a compensation fund

morgan gave a similar warning as banks continued to struggle with low volatility. >>> and last month,he bank disclosed a calculation error that forced bank of america to suspend its stock buyback and dividends. the error left the bank with $4 billion less in capital than previously thought. the revised plan is smaller than the original, and the fed has 75 days to review it. >> federal officials reviewing the taper of the monetary stimulus necessary, what is less clear is exactly how the central bank will decide to control interest rates when the time is right to let them rise. steve liesman takes a look at the fed's exit strategy and the tools available to policymakers. >> let's take a look inside the federal reserve's tool box it will use to regulate interest rates, the main tool, the fed fund rate is not doing to work. during the easing the fed bought all the security and put all the cash out into the system. in order to control interest rates the fed has to control the amount of money in the system. what else does it have? it has this big thing? really an axe. effectively, the fede

of this method of high to although transaction reordering and today 14 banks including bank of america and jp morganchase have settled to the tune of $800 million. however none of the banks have admitted to any wrongdoing. >> a lot of banks have stopped doing this because of litigation, but in their disclosure agreement they all say we reserve the right to change the terms and conditions of these--of this account at any time. while they've stopped doing it now they could start doing it again at a later date. >> reporter: one bank sun trust did confirm with us that it still processes transactions from the highest to lowest amount, adding that it didn't charge overdraft fees for any items below $5. congresswoman carol maloney from new york on the left wants to make banks more accountable and it a would require more transparency from the bank. >> what i've seen is oftentimes a consumer will make three, four, five six small purchases and end up with $300, $500 in over draft fees. then they are trapped with interest rates that they have to pay off. it keeps them in a cycle of poverty. it's a lesson jacqu

they partnered with big banks, particularly j.p. morgan chase and -- well, blackstone and jp morgan chase partnered and the northwestern homes for rent partnered with goldman and they issued a new security called the rental back secured. not going to get into the whole security issue but if you remember mortgage backed securities that was the process of bundling mortgages, selling them off to investors around the world. some of those mortgages being good mortgages, some of them mortgages being total toxic junk mortgages. when families started defaulting on their papers because these were utterly unpayable loops, well, that's when the whole system collapsed. now we have a new financial product called the rental backed security but rather than secure tieing the entire mortgage on your home, they're essentially using the rental stream, paid by rent can families to pay back the bond. and there's a lot of debate right now happening about this process. so what i wanted to drill it down to, stick to my promise this won't be a financial talk. want

some of the biggest banks were counterparties from the derivative contracts, realistic contrast, all of the different businesses lehman was engaged in. morganscotland, credit suisse. they could not hold hard to as hasssets easily funded. to really review bankruptcy claims. these are incredibly complicated claims and they rely on bankruptcy judges to make decisions that may be fickle. prices, for asset example real estate. in 2009, that was not as clear that as it might seem in retrospect. the hedge fund could come in and bush -- it off your books, and it is an incredible trade or them. these are liquid pieces of securities. hedge funds are in a better position to make good or dabble on that. >> to give you an example of how good a trade this has been, the inman brothers entity europe, the claims were originally priced at $.25 an hour. 100 $.50 on the dollar. >> how long will the gift keep giving? it is an incredible story and you cannot make this up. >> lehman has been a trade that keeps on giving. >> especially now. you going to get these kinds of returns? double-digit returns on an ongoing basis. i think that tells it all. thank you for t

holders werehe banks like morgan stanley, but they did not the debt -- want the debt, so they sold ittheir competitors. it isat has changed, so not thanks again hedge funds, but it is a great trade. sadly for a lot of the banks that sold, it is not as good for them. the positione in would likely be training with another hedge fund at this point? >> probably. a lot of the holders are hedge funds, they want to open trading throughout the years, and are about 20 hedge funds that were part of this bankruptcy. >> anything that has really stood out? >> lehman brothers europe has been a good subsidiary. there've been some that have gone from initially trading at $.20 on the dollar, two raider than 100 cents on the dollar -- to greater than 100 cents on the dollar. >> really. amazing. thank you so much. >> we are approaching 26th at the hour, so it is time for on the markets. one particular stock, green mountain is soaring about nine percent after coke boosted its stake in the company to 16%. they are now the largest the one hand you have them desperate for some kind of business that might re

gerri: you may be owed money some of the biggest banks like j.p. morgan a wells fargo are messing up on payouts with mortgages. the average size of the settlement check to homeowners over the botched mortgages is a hundred $57.51. but told% have not even been cashed could you be in line with the money? editor of the national review, a good to see you. where does this money come from? >> it is such a mess there are other words you could use but the banks were supposed to go back to figure out how many mortgages they've messed up with inappropriate these are not modifying when they should have. that process is taking so long it is so complicated the banks and the federal government said forget it said they agreed to a payout of $10 billion and 4 billion to go to homeowners that were somehow mistreated but they don't know who specifically they are. gerri: they do know the properties through the loans were for but the lack of information is deadening with no surprise giving many is nearly impossible. what would you feed you thank you are owed money? >> if the

the banks we have seen in trouble, including jp morgan, which has paid off fines, is us bank.es have nothing to do with the financial crisis. if people are still wanting to ion, these cases do not necessarily match up. >> and know you are in a difficult position. let mr. holland said is critical. is this a shakedown? >> we will have to see. we have to see what happens to these two banskks. see how they operate. >> people have described the approach on jp morgan as a shakedown. >> it does make sense. jpmorgan got in a lot of trouble for a lot of things. there were a lot of issues spread out there. the criticism is, of course, that money comes out of shareholder value. it does not deter future bad behavior. what does it take to get banks to fall in line with how shareholders want them to operate? and how the public wants them to participate? >> when do we have a resolution? when do i get to start talking about this? >> probably a couple of weeks. >> not two years/ ? [audio deleted] >> yeah. fingers crossed. >> he wanted this behind them as soon as possible. >> is brady dugan's j

morgan stanley had one, twitter, bank of america. you never know, scott. maybe this is the turn or maybe not. back over to you. >> dom, thanks. the question is, has twitter bottomed? 29 and change. jim cramer's price target, i think, was 29. has the stock bottomed? critical question. >> i think it has, the way i'm trading it has. i'm using the recent low. i bought the stock yesterday. using the recent low at my out point. i don't think it rolls over back to that level. if it does, momentum names start rolling over, i'll be out of the position at a small loss. as i stated last week on twitter, i believe the company will be around long term. so i think they will figure out how to monetize this platform that they have, and i think the stock's been oversold, too much of a downside. >> josh brown, the bank of america analyst who lifted the sell rating today has been one of the few analysts who's gotten it right for the most part for a while here. >> yeah. i like murph's trade. i think -- i think 30 bucks, you put in the stop-loss, you're risking basically $2. y

they are said to have removed morgan stanley as lead underwriter after learning the bank helped tyson makes the offer. two days ago pilgrim's pride made their own bid. ford said it is recalling 1.1 million sport utility vehicles to fix sensor electronic flaws. 915,000er recall covers ford escapes. that is a look at your top headlines. back to you. foods.s begin with tyson it's offer to buy hillshire brands trumps a competing bid from pilgrim's pride. joining me, chris leonard, the author of "the meat racket." akshay, i want to begin with you. what are the strategic benefits for tyson's to make a bid for hillshire brands. me on.k you for having it makes sense for tyson for a couple of reasons. they are diversified proteins manufactured. they produce chicken and pork products. those are raw materials for hillshire. there'll be some cost synergies they are. tyson under new management recently has embarked on a value added growth strategy. they want to build their brand and business. shire,ing he'lill it furthers that agenda. this management team which took over five years ago has cleaned