scott cohn is in new york with more details. good morning, scott. >> good morning, carl.ow, jpmorgan was bernie madoff's primary bank for more than 20 years and now the bank is learning the true cost of con sorting with the biggest ponzi schemer of all time. $1.7 billion to the justice department. the vast majority of that will go to madoff victims. and in addition to that, about 300, $350 million to regulators including the office of the controller of the currency and then another about $500 million and change to private litigants. 325 of that going to irving pickard, the trustee who sooud madoff in 2010, sued jpmorgan, that is, alleging the bank was co come police is it. they sued them for many more times than that. that will go away and more money will go towards the victims. as part of all of this and the settlement that's going to be announced today by the u.s. attorney here in new york is what's known as a deferred prosecution agreement. so charges will be filed against the bank. two counts of violating the bank's secrecy act but they will not be prosecuted as long

scott cohn is joining us. what can you tell us? >> a trying day as in chris christie is really trying. this is not over yet. the office that chris christie once held is seeing if there are any legal investigations and the jersey legislature is all over this. the port authority who ordered the lane closings took the fifth. the extraordinary news conference, he said he's sorry, really, really, really sorry. >> i believe that all of the people who were affected by this conduct deserve this apology and that's why i'm giving it to them. i also need to apologize to them as governor of the state to understand the true nature of this problem sooner than i did. >> but he wasn't done. them choppering up to ft. lee to personally apologize to the mayor. they met behind closed doors for 45 minutes. >> did you apologize to the people of ft. lee? >> of course. i did that this afternoon and i'm also here to apologize to the people of ft. lee. it's a terrible thing and we are going to work to regain their trust. >> chris christie still in business

our scott cohn is on site. is scott ready? >> yes. >> was that the governor there arriving?>> reporter: he should be here shortly. he, as you saw, landed at the high school. >> is he going to get a red carpet treatment from the mayor? >> reporter: well, it's interesting. you know, in the last few minutes, they've set up a whole bunch of barricades. here's the governor coming to ft. lee to apologize for blocking traffic, and he has to make sure he doesn't block a lot of traffic as he comes here to apologize. but they've definitely -- they've definitely made some room. there was a lot of feverish advanced work going on ahead of this. and it looks like now that there will be a summit of sorts here at the burrow hall of ft. lee with the governor apologizing to the mayor who originally said don't come, hold off. it appears now that he had a change of heart. they're going to at least temporarily, i would think, bury the hatchet. but this investigation is going to go on with a whole lot of questions about how it is that this happened without the governor's knowledge, as he claimed

scott cohn working the story out for you out front of city hall in fort lee, new jersey, a couple miles down the road whfr where we sit. >> governor chris christie is going out of his way to personally apologize for the closings on the george washington bridge that reeked so much havoc here in fort lee and this part of new jersey as well as manhattan. he will come here after his two-hour news conference to be personally appaologize to the mayor. here's what the governor said about that this morning. >> listen, i don't know him. i can't be offended and i'm not offended. if he wants to meet with me today, i'm happy to meet with me. if he doesn't want to meet with me today, i'm got going to go up to fort lee. i feel it's important for me to be on the ground there and to apologize to folks. >> talking about the mayor that said the governor should delay his visit, shouldn't come. thanks but no thanks. here's what he had to say. >> i would ask the governor, fort lee can be granted one request. one request through all of this. we would ask that he delay his visit here today. we have some other

. >> scott cohn, thank you very much. we'll be back for more as it happens. >>> another developing story, and another big case for the u.s. attorney's office. sac jury selection in the case against former sac trader matthew martoma begins today. kate kelly is live in new york. >> reporter: so we're on a break from jury selection right now at the courthouse behind me, 40 center street. this morning folks gathered in the morning and began filling out questionnaires to kind of weed out people that might not be appropriate for the jury. at 3:00 p.m. today, lawyers for both sides of the case will reconvene to start going through those questionnaires. but the selection process will really begin in earnest tomorrow morning starting at 9:30, i'm told. we're unlikely to see opening arguments in this case until probably midday or afternoon on tuesday at the earliest. meanwhile, matthew martoma and his wife rosemary arriving in court earlier today, looking stoic, looking prepared for this battle. it's a very tough case against him t

. >> let's bring in scott cohn, who has been following this story since the inception, actually spokego. this whole idea of reaching a settlement with jpmorgan, raises the question of how can a bank be guilty, even though they're not going to prosecute them criminally, but no individuals be charged? >> it's a really good question. a lot of people are asking it. >> people do these things. >> exactly. and look at what they are -- what they're likely to be accused of. what they have been accused of in civil cases already. not only just kind of turning a blind eye, but also selling structured products based on madoff's returns. and there are e-mails, internal e-mails, we will show you some of them next hour, the talk about what they know and when they knew it, and yet it does not appear based on everything we know that any individuals will be charged or implicated in the announcement which we think is now going to happen as soon as tomorrow. >> when you spoke to madoff in early 2013, he said i have information that would make it very clear that the banks knew about this all along. do you

john harwood and scott cohn have been following the s.e.c.'s technology initiatives.hn. what did the s.e.c. want to use the money for, and why did they lose it? >> the reason they want the money is because they know that they are undermanned, undergunning for the job that they've got in front of them which has gotten bigger since dodd-frank, so technology was designed to streamline some of their operations as they oversee american companies and that runs squarely into the idealogical divide in washington and the practical divide over how big or small government should be. republicans have been pushing to limit the size of government. they don't like regulation as much as democrats do and therefore, you ended up with a compromise where democrats managed to get republicans to drop some idealogical provisions that would have prevented the s.e.c. from doing certain things in regulation, and in return, republicans agreed or insisted on some cut in the funding for that modernization program. >> so it was basically a horse trading over what can be regulated, what can't, and

our scott cohn back at hq. >>> dow's down 28. let's get to bob pisani on the floor.erybody. earnings holding up things, norfolk, united technology doing okay. ibm is the real link. ibm down about eight bucks, put up the chart on ibm and there you see down seven. that's 50 points in the dow. the dow would be positive if it wasn't for ibm. it's been a rough quarter and very rough guidance for ibm. i'll put up the full screen and show you very simply what the problem is with ibm. they've been trying to become a services and software business. how's that going? here's how it's going. global tech services, this is the biggest segment, they run the data centers and the cloud business. down 4% on the revenues. year over year. global business services that's the consulting business, that's they are trying to grow that, only up 1%. software which is the biggest margins and you get 90% margins in software and it's only up 3% and hardware down 26%. very graphically you can see the issue here for ibm. number one we have hardware declining. put up the next full screen. tough emer

>> a case you know well, scott, scott cohn back at hq. >>> for a little over a week people in coloradothe demand is so high, we could be facing a pot shortage. jane wells heard about it and raced to denver to get the real story. good morning, jane. >> reporter: they are calling it reefer sadness. the first store that opened, everyone knew that pot would be popular, but perhaps they didn't expect it to be this popular. you are looking at video from new year's today at 3-d cannabis center. long lines. it was crazy. they actually had to shut down two days this week to restock and over at the river rockwellness center where they sell medical marijuana they are not going to sell rec creational pot until next month. >> colorado is running out of pot, that might be the headline, but as you see around us there's a lot more behind us. it will take a while while for the supply to meet up with the demand. it might be three or four years. >> reporter: really? >> it is a question of infrastructure. we need to build green houses. we have to build indoor grow rooms. it's a very expensive proposition.

scott cohn, what do you have for us?ment in this historic bankruptcy case. michigan's governor rick snyder has unveiled a $350 million what he calls a settlement that would possibly do away with a lot of the issues in this bankruptcy case and really move it forward. this would be on top of more than $300 million that's already been pledged by a number of foundations, and all of this designed to go to the retirees who otherwise would face severe cuts to their pensions. the governor says this is a settlement, not a bail out. it would still require legislative approval but a lot of parties in the case have been waiting for the state to step up. the state still has some $3.5 billion in unfunded pension obligations obligations, but this would go a long way toward it, still requiring legislative approval. a lot of forces on either side suggesting some conditions attached to this money including the governor says ind penependent management of the pension funds. we're continuing to follow it. governor rick snyder still speaking

. >>> our scott cohn reports that no individuals will be implicated in the expected $2 billion settlementy. >>> it's time for more economic and political predictions for 2014 from byron wien, the vice chairman of blackstone advisory partners. i want to get to number three. the strength of the u.s. economy relative to europe and japan will allow the dollar to strength strengthen. >> right. >> how solid are you on that. >> very solid. >> that's going to happen because. >> because the u.s. economy will grow at better than 3%. >> that's not a surprise. that's not one where you can say i wanted to go against the grain. i think than consensus. >> 2.5 to 3 is definitely consensus 3 plus -- >> he's say exceeding. >> he says 1.25 against the euro. >> i want par. that should be at par. >> it probably should be. >> a couple other ones, shinzo abe keeps printing money like crazy and the nikkei rises in a major way. >> right. but then there is a correction. because they are increasing the sales tax from 5% to 8%. there is a peaking in the work force and the population is aging. i think japan could hav

madoff has claimed banks turned a blind eye at what he was up to, telling our scott cohn early last yearle doubt that the information i could provide could clearly demonstrate the vital role the major banks played in carrying out my froud including the role of handling the accounts of my major customers. this is not the only issue for jpmorgan. it's paid some $20 billion to settle these lawsuits. the costliest relating to its mortgage products in the financial crisis, but also, faulty oversight, improper marketing on credit card products and nearly a dozen ongoing investigation from hiring in china to potential energy market manipulation. the list goes on and on. the bank would like to get this latest payment out of the way. that tabs place on tuesday, january 14th, so we have a line in the sand and we'll see if we get that in the next week. >> thank you very much. >> well, it was a perfect storm. of winter weather this week and from feet of snow to freezing rain, frigid temperatures and i can tell you firsthand that somebody who went to and from south florida, it reeked havoc on the air