we'll ask mike mayo in just a moment. for many, nexium helps relieve heartburn symptoms caused by acid reflux disease. osteoposis-related bone fractur and w magnesium levels have bn seenith nexium. possible side effects include headache, diarrhea, and abdominal pain. other serious stomach conditions may still exist. talk to your doctor about nexium. >>> financials are among the leading sectors on the s&p. mike mayor is a bank analyst for clsa and an affiliate of agricoal and just named most powerful people in finance and the only analyst to have made it on that list. good to have you on post 9. >> thanks. >> sounds like a large part of your argument is it's been long enough to have these laws not tied down, and not pinned down and not written, write? that's the problem. >> i say no more excuses. let's get on with it. it's been two years for dodd-frank and if you're regulators and let's get the laws written and eliminate some of the uncertainy and if you're the banks no more excuses also. at some point you have to play the

mike mayo, bank analyst. he's also the author of "exile on wall street." our friend rob cox, the america's editor at reuters breaking views. michael, what do you make of the breathtaking events over the last 24 hours? >> i think the ceo transition is ludicrous. to have the ceo and c.o.o. step down at the same time with zero transition and to have this change one day after they report earnings. just yesterday i was asking vikram pandit questions. we were all asking him questions about the long-term strategy. one day later, he's out the door. something's not right. i think this poor transition of the ceo is a microcosm of the poor corporate governance at citigroup under the vikram pandit reign. >> mike, i want to ask you what you think is going on here, but let me get anton in first. you're a shareholder of citi? >> i am, indeed. >> what's your next move? how do you see it? >> i'm going continue to hold. i think michael o'neil has a long history of creating valued companies he's been with. i think the transition here is important. michael corbat is very well

. >> i think of mike mayo or something and how he set out -- he was closed out of citigroup meetings. at least he gets push back from certain banking institutions that he would write negatively about. so he can be great, but probably wouldn't be in the top three. >> well, he can still do well. he wouldn't necessarily do well in terms of providing corporate access. corporate access is just one of many things that investors are looking for from their analysts. >> i guess investors aren't necessarily taking the, i don't know, the -- >> they're make their own decisions. >> in their systems like one, two, three, i remember there were like four things that they would measure near term, long term, whether it outperforms the segment, how safe the dividend was, all that. you don't look back to see if they're dead wrong on everything. >> no, for what we do, we're in the doing that at all, we're not analyzing the quality of the stock opinions. >> so it means nothing? >> it does mean something. it means analysts, their industry knowledge, their expert tease, the relationship they have with compan

the ceo of jersey mike's is here to talk jobs and expansion. hold the mayo or at least make it low fat as the second hour of "squawk box" starts right now. >> good morning. welcome to "squawk box" here on cnbc. i'm andrew ross sorkin along with joe kernen. becky's on vacation. >> i don't know the name of that band. >> japan roid. >> you're like so much coomer than you look when it comes to music. >> i'm what? cooler than i look? >> when if comes to music. if i saw you on the street, i would not think that you knew all these -- go ahead and read. you've hurt me. so i'm old is that what you're saying? >> just read the futures, sorkin. >> i love you. i just want you to know. >> i've got a walkman on my walker. >> take a look at the futures this morning. we should get a squawker moment as we're doing this. the dow looks like it would open down about 27 points, the s&p would be off, as would the nasdaq. on the headlines this morning, a dispute between new york state and federal regulators over money laundering. officials are upset with the state's d

mike emanuel, thank you. jenna: fox business alert on a hot issue concerning china. a lot is made of china owning debt in our country, but now there's a big debate over whether china mayo thousands of american investors trillions of dollars. joining us now, fox business network's peter barnes. peter, you're not one of those investors, are you? >> reporter: no, i'm not, jenna, but i've been digging deep into this very interesting story. china issued government bonds before world war ii, but it defaulted on them after japan invaded china in 1937. now with america's debt to china topping a trillion dollars, a group of american investors is demanding china pay up claiming its holdings are worth billions today, maybe even trillions too. >> come to the table. negotiate an amicable resolve of this issue. pay your bills, pay your debts just as we, the american people and the u.s. government, pay ours. >> reporter: it's a very complex legal and foreign policy controversy that's been dragging on for decades. when china issued the bonds, it said they'd be honored by successor g

still to come, mike mayo. we'll talk to him in a few moms. and in the next half hour, a former >>> jamie dimon set to testify today on his firm's $2 billion plus trading lost. it will take place at 10:00 a.m. eastern time on capitol hill. our guest host is make mayo, banking analyst and author of "exile wall street." my question is every bad business model or every bad risk taken by a company bank or otherwise, is that congress's problem? >> well, to put this in con tech, $2 billion lost is not a big number at jpmorgan when you have $2 trillion in assets. if you want to talk about proprietary risk in the banking industry, you know what that number is? $13 trillion. >> congress could get really busy if they started monitoring all 13 trillion of every move that a bank makes, right? >> and you know how much money jpmorgan has lost over the last three years per each quarter, $5 billion. you know how they lost that? the old fashioned way by making loans. $2 billion or $5 billion, that's not significant to me. what is significant two others more th

among our special guests, mike mayo will be with us. sally krawcheck and richard shelby that will be an interesting program. >>> in other corporate news, general motors is holding its annual meeting. the company's ceo says gm only succeeded in changing its culture 20%, 25% from before the bankruptcy. dan ackerson will tell phil l libeau more about that at 8:30. >>> and berkshire hathaway offering to buy rescap's mortgage unit and a portfolio of loans put up for auction. >>> a few stocks question watch, texas instruments is narrowing its forecast for second quarter earnin earnings. demand for chips held up despite global economic uncertainties. >>> vehicle navigation systemsmaker tomtom striking a deal to license its maps to apple. the company looking to tap into demand for cheap or free navigation software for smartphones and tablets. shares in the dutch firm rising sharply in early morning trading. >> can i talk about that story? >> the apple story or the tomtom? >> i don't know if you saw all the mapping guys got killed yesterday in t

. >> do they know there's a guy by the name of mike mayo? >> i wonder. >> he has lost his mind, bloomberg. the soda thing is -- >> i saw his comments yesterday. the point me that was a good one is people thought he was crazy when he was leading the way on cigarettes. and the ban on smoking. which now there's no way people would touch that. >> god help us. i liked some of the commentary from the right of center pundits that when you know you're going to pay for everything eventually, then this is when you'll start doing all this and the idea that you eventually have to eat broccoli, that's what scalia said about the mandate, that that's not that far off. >> even democrats aren't getting behind bloomberg on this. they're saying -- >> it's crazy. but before i did the big slurpee, the big gulp, you would not be allowed to smoke anywhere in manhattan. wouldn't you just outlaw cigarettes before you outlawed a large size drink? >> it still seems like a strange way to do it. why not just tax it and at that time tax money and put it back in. >> and i

it's our wellness for life program, with online access to mayo clinic. see the difference at avivausa.com. i've been crisscrossing the gulf i can tell you, down here,. people measure commitment by what's getting done. i'm mike utsler, and it's my job to make sure we keep making progress in the gulf. the twenty billion dollars bp committed has helped fund economic and environmental recovery. another fourteen billion dollars has been spent on response and cleanup. long-term, bp's made a five hundred million dollar commitment to the gulf of mexico research initiative... to support ten years of independent scientific research on the environment. results will continue to be shared with the public. and we're making sure people know that the gulf is open for business - the beaches are beautiful, the seafood is delicious. last year, many areas even reported record tourism seasons. the progress continues, but that doesn't mean our job is done. bp's still here, and we're still committed to seeing this through. >> alisyn: five of the nation's largest banks paying o

mike mayo, what would you tell jamie dimon to say here? he won't exactly be among friends. >> or not say. >> well, i would say that the issue here is a crack in the business model. i mean, if you have this crack, what other cracks are there? the whole premise behind these big banks, behind the financial conglomerate model is you have a strong infrastructure that centralized and integrated. in the case of what just happened, that's not the case so fully at jpmorgan. the regulators probably missed this too. i can't imagine that this loss was any stress test done by the fed. >> well, you know, he needs to, perhaps as you did put things in perspective. the size of the loss relative to the size of their balance sheet, and let's face it, it's not illegal to lose money. when you place bets such as they did with these. head banks do it all the time and they lose money all the time. just not to the size they do here. bob pisani? >> a very good point. he has to hoe a very fine line. he has to look contrite. he has been doing a good job of doing that

listen to a question from mike mayo last night. >> would this be a jp morgan specific issue? >> i don't know. just because we're stupid doesn't mean everybody else was. i have no other what other people are doing. >> dimon's assembled people, one he called an agregous mistake. on last night's call, dimon would pity single out one person. but losses were purely excootsed and badly monitored trades. jp morgan says a trader nicknamed the whale for his outsider trades and his boss, ina drew who runs the chief investment office are still with the firm. or does the company's chief financial officer, doug bronstein bare some blame. >> we're very confidentble with our exposures and feel very good about the operations of that business. >> comfortable, maybe. but people close to the back in lieu of losses on the trade. now this morning, foe cussing on the analysts and how it might impact overall profits as the bank overhauls its risk management structure. but the bank increases rivals. big bank crithices who say the firm should be paired back or shut down, likely to become more vocal i

an exclusive interview with mike mayo. good to see you. >> how you doing. >> you can't real the whole report but give us some quick reasons you why downgraded j.p. morgan, which nearly every analyst that comes on says it is best in class. if there is one safe place, it is j.p. morgan. you are doubling, two notches, from outperform to underperform. why? >> count me as one of those analysts. i was one of those last year that said buy j.p. morgan. but i'm negative on the banking industry. i think the first quarter is as good as it gets. economic growth is decelerating. i just think they are more expensive than some other banks out there. >> sounds like that is true of the entire banking sector, not just j.p. morgan. >> to some degree it is true about the entire banking sector but it is also especially true about j.p. morgan. market activity not as strong as the first quarter. you have the mortgage business that's not likely to hold on for too many more quarters the way it was in the first quarter and you had this halo effect

also, addressing mike mayo's call, a note that was out the other day about breaking up the bank to unlock value, he said he doesn't think breaking it up at this point wouldn't make it more valuable. lastly, when addressing the stock price, he said he doesn't mind where it is right now, in large part because again, he wants to buy back some of the stock. >> we'll be watching that. mary thompson, thank you very much. mary thompson at jpmorgan today. gold prices climbing to three-month highs as the euro and the stock market gained ground today. stoked by an upcoming european bank move to offer cheap money to companies starved of investment capital. we'll likely see the ltro program announced tomorrow. gold prices settling up at $1,787 an ounce. still talking about $106 a barrel oil. experts say it could lead to demand instruction which led some investors to take money off the table. get ready for another round of ipad mania. ipad expected to unveil the next generation in san francisco next week. word on the streets, the new ipad will have a quad core processor. wall street certainly welcomed