really offsets
place in Germany is gonna be wonderful opportunity for you you are going to be
able to
ASEAN here Matt AB see for the first time Alex perrine
on CNBC the first question I have is wow how did that CNBC invited Alex perrine
into the building
I mean did not check his idea or something like this is a it's not like
they let amid but
I this is this is I
what's so shocking about it is how these people are just looking at him like
I planet are you from expressing a strange ideas
I we all posit as we go with comments on Mike's will be live so
here it is this is the some I don't know what show it is but I think they're all
the same bits with Maria Bartiromo the most part aroma
yeah here we go oh man busy week JPMorgan mascot yeah
absolutely at stocks down over 1 percent this week Amy diamond looking to and
government probes
into its selling a potentially shoddy mortgage securities
news at the justice department yesterday working out the particulars
on a possible $11 billion dollar settlement on both federal and state
levels
so why is the firm getting so much heat from regulators
salon journalist Alex perrine is with this issue I like this why is the firm
getting so much heat from regular W
the big is a massive international crime syndicates
big butts like yes they just they took a i think a
you know a wheel of fortune they say who we gonna just randomly
talk to you today timing is the reason
and he's doing it more harm than good JP Morgan fortunes definite Donald did not
disagree more
I hear we are talking about this Alex out to first
legal problems aside JP Morgan remains one of the best if not the best
performing
major bitch in the world yeah you believe the leader of that banks should
should step down I think any time you're looking at the greatest fine in the
history of Wall Street regulation
it's really worth asking is this guy should discuss status of an any other
industry I can make another effort he managed to restaurant and I got the
biggest health department fine in the history of restaurants known to be like
have there was something there are many
oh yeah I believe we gonna case a even before this fine
a JP Morgan Chase in the last three years
has paid 16 billion dollars
in cock and feet and fees associated with litigation
and regulatory requirements which is one-third
up its net over that time so even before this settlement what are the biggest
settlement
in the history have I'm I love have the financial services a maiden
it in poison the entire Gulf Mexico but great right
yet that would one out of every three dollars if they made was was going to
pay their their legal expenses for regulatory violations
yeah but has Maria Bartiromo lo said it matter
every goal problems aside I
legal problems aside why why should this guy go
yeah so who
has the qualifications better than Jamie Donna Karan JP morgan et
in your queue I i mean i think the bank might be too big and too complicated to
the point to corrupt for anyone to run but I've we can just get almost anyone
else a shot
and see if they could do that to corrupt is I'm a bit hyperbolic perhaps a
I
absolutely not at that he obviously got attention with its
article we got your attention is preposterous the stock setup
touching a 10-year high at the cash-generating machine
sure there I that they've had their regulatory issues but he's looking to
settle them accidentally
at this point which is everything you want to the CEO's an absurd
suggested this is i mean just is just amazing like they just keep saying like
know aside from the regulatory
you know sort of the law breaking think this is what they're still making money
rated in what they're specifically talking about in this in this instance
as the London whale episode
you know Yahoo partner that were this is this the CEO
not being aware up six billion dollars in losses happening in his own company
yeah can you think of any other industry where where the top guy wouldn't be
aware
love other this gigantic psycho love loss is happening at his firm
and that being a qualification for that's absurd
Matt that's absurd its II purple a fleet I
threads hyperbolic absurd
picked up by me up maybe we should pose the question did this Jamie diameter
want to go
I mean given everything that's been going on around this company it seems
like he's taking a rose
from all sides up almost every week
at this point maybe doesn't want it anymore it is within a year he couldn't
be there i who knows
I hiding out in denver I'm behind the one involving a media
the Rose music because it's %uh yeah his baby time it might be just like the
slings and arrows
I he may not even want to do this anymore and then we'll all be like that
but try you know he's expressed a desire to stick around for quite some time
the only thing that's going to have him leave is the borders shareholders
up basically after showing in the door and
you know despite a suggestions that he simply because
they're paying a fine you know time no no major shareholders are calling for
his departure
shots just talked about the financial strength JP Morgan I
at this point to me even with all of these losses the company continues to
churn out
no tens of billions of dollars in earnings and hundreds of billions of
dollars in revenue
I'm how do you criticize that I well
I think a lot of their earnings and revenue we've seen come from really
shady dealings that they've been
outcome or they have earned I'm three shady dealings all right now I'm a
bribery
in China hiring that I you can never get some things that you can't prove
while the nepotism hiring the children from the Chinese official who is not
something I just how you know they've been charged
they have been charged but it's a fact that in the new everyone knows about it
I could be a major
for the higher have a Jefferson County Alabama
where we're JP Morgan Chase I love essentially bribed the local county
commissioner and the taking
a a deadly a series of deadly swap deals that
ok have left the city of Birmingham in bankruptcy for the next
generation are they were fined $750 million dollars for that that's just one
the going toward that sixteen million dollars billion dollars in fines
I moving legal problems aside I
with but that's another bribery case against this is a go you can't prove
broke ground on actually they didn't want to just go to just one bribery case
right yeah anymore I love guardian for Chase I mean the London whale episode
was was a huge ones too
%ah money laundering they just got thing for that it has a3
I
home but see I give me a minute I'll
Ono remember some more I manipulating electricity mo %um let's do it but
that's right they just got tougher for Michigan in california they just paid
huge fight 310 million dollars up from manipulating at the electricity markets
foreclosure regularity cell right when they were they were part of that
settlement there the credit card fee settlement
they were they were part of the overdraft fee settlement are also part
of a fine so that's just six
break I 6f 7f
it's not only got up to six or seven okay
leaving six or seven legal problems aside
%uh the magnetar case we can forget about that okay so wat that a one where
they helped create a
no no I had fun creative born to lose portfolio love
Avaya love me you know bad mortgage backed securities is exactly the same
installments abt Africa's case
I just hope that Timmy times not hearing I this is gonna be released on a promise
party officials under the spreadsheet on which is connected to deal they were
trying to do in China hiring Pakistani things that are not actual fact on this
program because anyway goodnight goodnight
yeah I think you're getting see this I mean it's not until the new york times
it's not
old air times ok I
11 wat Saket did you get your
eight or nine things that they've been fine from where to put up from the times
not tell you
I you read it in a newspaper I guess
I guess we shoulda gotten from another source lawyer a reputable wait a second
let's see if we can get our larry cudlow on the phone and see what he says about
I for the children have connected people know I'm sorry not a crime you don't
want to thank you Donna
that the point what a quarter-point Maria make switching 20 psi to perform
to the bank I mean
shareholders have no reason to want this guy to leave
I 18 percent here today he is considered to be one of the most respected CEO's
on the street sometimes in some forms even mentioned as a possible
Treasury Secretary somewhere down the line defeat so chooses that is so last
I mean why would shoulders what this gotta go I think that let me just answer
here
I am felix Salmon address this I am
he said the shareholder perspective is the only one that matters
according to them except of course it isn't JPMorgan's ballot she chose assets
a 2.4 trillion in liabilities a 2.2 trillion
leaving two hundred billion in total stock are a holder equity
I in terms of the balance sheet the only matter about
8.6 percent in terms of the systemic important to JP Morgan to the nation's
whole
its shareholders might I even matter even though he's a PR nightmare for the
bank if you look outside
over the financial media if you look outside of CNBC
like every time taking organs been in the headlines for the last year it's
been four
terrible news and some bad PR for the bank and I think it may be there is a
bubble you can be in which you've never hear anything negative about them and
you hear
be the smartest guy in Wall Street like out in the rest to the world it's
nothing but bad PR from
diamond and for JP Morgan def what about that I made
yeah it's a little like a witch hunt frankly
I not talking about the charges and there's
you know numbers are those that existed she saying it's a witch hunt and they're
talking about charges
charges that have actually happened and had settlements that have
already been concluded a illegal activity that's already been admitted to
I I was not not the same as trying to find out if someone's a witch
and seeing if they float in water yeah how is that not the same
def what about that I me it feels like
you know this this a feels a little like a witch hunt frankly
because they're constantly you know talking about judge charges and there's
you know numbers that are mindboggling in terms of settlements I'm that's sorta
what sets the tone for for these negative our house
absolutely that's how I feel right about the fact that it's been a PR nightmare
and
the line and whalers a complete and total embarrassment
I sell or the you know the regulatory issues
are a big deal but they're trying to address them
I but that's hardly a reason to wanna fire your CEO
are nicely about you know they're doing it today be
ninety-nine percent other job that they're supposed to do which is running
the institution
as effectively as he had ninety-nine percent unbelievable
I mean look yeah what did the argument they're making is the same one that
everybody made on wall street. I know after after the crash which is
as long as they're making money then you know these guys are fine but the problem
is
they didn't make money they were all they all went bust in 2008 they would
they did
even chase would be dead on its feet without masses
intervention by the by the fed by the looting leaving
leaving that aside leaving a the the okra
la breaking and the bail out the side I
as they ran into the way this is just the second quarter but
yeah but the second quarter net income was six and a half billion dollars
%uh just for the three-month period compared to net income of five billion
in the second quarter of 2012
I just trying to figure out from a shareholder's perspective
who would be doing a meat do you have guys do is go to anyone
their business model is based on getting boatloads of money
from the Fed for nothing right I
literally at zero again loan money at zero had zero and then they're loaning
it out to us
by DA fresh breeze rates and in some cases they're actually
taking money from the Fed its ear when lending it back to the US government at
three or four percent or whatever it is
find me the person who can screw up that business model
I mean that some it's almost impossible to lose money when you had when you're
getting money for free in your lending it out interest
been figured out how do you do that I mean you go down to the post office in
dialogue I
someone's gotta figure out all those details I guess so
from british a chimpanzee could do this you know you need to tell you you have
to figure out how to get the money they are and then it's like
where the stamps I gotta write an essay end
but there's a lot more to it matter obviously the new year is living
James I'm a credit for buyout the who do you think is equipped to
trial I already said I don't think anyone is equipped to run a bank that
taken back complex but I really think that this guy's track record at this
point means that you just go with anyone else is available
I look it's been a rough week there all day
of yeah sure I would do it I could you just bought a gun or in the London whale
well but yeah
it's almost ridiculous even have this conversation I yeah if the guy has a
great track record of making money for
JP Morgan not atm and the bank in a way that has been good for the economy as a
whole or in a way that has
avoided these massive fines and numerous charges I
cave JP Morgan were not among the
thanks that actually %uh a alleviated things during the 2008 financial hey
what he did I meant was that I already talked to cut investors
they unloaded at something new or talk to God investors at how they got through
that with the brilliant risk-taking for the risk avoidance strategy that is not
how they got here:
right now they got it all it's ridiculous just not true it's just not
true you you know
really really another way that I think the fact here
that thanks so much for joining credits for you I
unbelievable Marie Murray is the best I mean she's
said well with stunning is that even if I accept your premise that we gonna
leave the legal stuff aside and leave the
term the sort of all the fines aside in leave the
the wells I see a set all that aside
I am if they're making money what difference does it make just added to
dove like
isn't there supposed to be some social function for these banks isn't that why
we we bail them out
isn't that why we they I mean isn't that the whole point
this is not why we have regulations must be some social function for these people
other than original in cells
well they don't think that way I mean that's not the way you think on wall
street. I mean
be you would be anathema for thinking that way
but dinner she's I guess it's not as easy to redo my application she's not
even vote
you know I i think your to Alex's point
he's not even doing a good job at that i mean you know this is this company
did again in the position the too big to fail position that it's an words
essentially backed by the United States government and
and and bankrolled by a literally bottomless well
love free money from the federal reserve um
anybody could do that job I and all you only have to do to do it
little bit better is to prevent gigantic disasters like you know leading
a trader in London you know triple down on a bet that's already lost a billion
dollars if I mean that's the point right
and we say they're too big to fail they are literally too big to fail there's
only one other option
that is 6 seed rather just I
if they can't fail they can't fail it
it's amazing unbelievable