Jpmorgan shareholder, its the fine print. What concessions, what did jpmorgan concede it did wrong, and if it did concede it did something very bad agreed to fraud that it was culpable this some way, that the bank itself not just Washington Mutual which it inherited, not just bear stearns which is part of this deal, but jpmorgan itself which sold a lot of bad mortgages, if it did say i did something really bad, this is going to be a hit to shareholders, and i dont think theyre taking this into account right now if we look at a stock chart, shares of jpmorgan were up marginally. But long term is what you have to look for here, its whether they really did concede they did something wrong in this settlement, and that language is not out. Now, is this a done deal . Yes, it is. Eric schneiderman, the attorney general, just front ran the department of justice. Why does he have the authority to do it . Hes head of president obamas Mortgage Task force designed to hold banks accountable for mortgage fraud during the runup to the financial crisis. So he came out and basically front ran the announcement on the Justice Department. I dont think were going to get a press conference coming out of attorney general holder out of this. I think well see a statement, we definitely will see some paperwork, and thats the key thing. Every investor has to look at this because if they conceded to something really bad, its going to be a problem for shareholders. We should point out last week when i first reported this deal was essentially done, just waiting for the Justice Department to announce it, jpmorgan felt its concessions werent that onerous. Well have to see. I think people will be arguing about that for a while and see how many lawsuits come as a result of this. But, you know, one of the major sort of hurdles for jpmorgan was getting this deal done and moving on to the next settlement, which therell be a few more, and it looks like imminently were going to get the announcement to make this official. The key is, read that document if youre a shareholder. It could be good, or it could be really bad. Guys, back to you. And you know what . I could also say if you look simply at the chart, jpmorgan is just a few pennies below shares are up today. Liz i wouldnt say this is smacking them exactly by just under about a half a percent or just over half a percent, but i believe its 56. 93 that is the 52week high for this stock. So right now it could mean a few clearer skies, charlie, for jpmorgan. Its up about 37 over the past year. Charlie, interrupt us if you get anything more on this. Look at that language. Liz indeed. And we shall the minute its out. As we all look for signs that the markets are now recovering and that maybe situations like what we just talked about with jpmorgan are now in the rearview mirror, were looking at the Housing Market. Its continued to stabilize after the bubble burst which, of course, nearly brought down the entire financial market. Does the secret to stable sietion of the american stabilization of the American Dream lie in retaining the walls of governmentsubsidized mortgages . Here at the cmes Global FinancialLeadership Conference in a fox business exclusive, is this afternoons keynote speaker. Hes known as one of the worlds greatest capitalists with a scientific mind, Mike Milliken of the milliken institute. Thank you for joining us. Great to be with you, liz. Liz while we were talking in advance of this jpmorgan settlement, you, of course, are no stranger to settlements and issues, you said wait a minute, those mortgagebacked securities back then were aaa rated, so nobody knew at the time that they were certainly not of high quality. But looking at this settlement of 13 billion i dont know if i would say nobody knew. Liz some did, obviously. Looking at this settlement, what makes you, what goes through your mind about jpmorgan . Do you think their troubles are behind them now . I think theyre a great company, jpmorgan, and i think theyve made the decision to move forward and with the great leadership they have, i think theyll be very successful. Liz lets look forward to what perhaps brought us down in the first place, and that was a very sick Housing Market which at the time looked like a healthy bubble. It was anything but. You still believe theres a major problem, and that pertains to the governments involvement in mortgages. Can you talk about how you see this . I think it really starts, liz, with the concept of what is the American Dream that you just spoke about . To me, the American Dream is an opportunity to succeed based on your ability. Not who your parents were, not where you went to school, not your religion, not your race, the chance to succeed. And when i switched from science to finance and made that decision in the mid 1960s, it was really then i to capital as a right no different than where you could sit on a bus or go to school or where you could go to a restaurant to eat. It was a civil right. And that, to me, is the American Dream. To me, the person dream is not to be able to buy the largest house with the most leverage you can. And i think this has been the risk over the last three decades. By providing incentives at the federal level, subsidizing Interest Rates, making nonrecourse mortgages, no call protection, weve induced the middle class and the lower middle class to move into houses they probably cannot afford. And as a result today, the United States has close to the lowest Median Income of any developed country in the world. Liz and you think thats in part because of fannie mae and freddie mac helping people buy homes . Its not just fannie mae and ginnie maes and fha, youd have to put that in also liz sure. Its that the government is willing to provide kind of an indirect subsidy. When the United States government wants to borrow, for 30 years they have to give you call protection. When an individual with a fico score of under 600 wants to go to borrow, with support they dont have to provide any call protection. And so the structure has induced people to believe that the way to accumulate wealth is to buy a house. Now, if you look over a long period of time, the price of a omahas gone up 50 of the time and gone down 50 of the time. Were here at the cme conference where theyve reduced transaction costs and hedging to less than onetenth of 1 . But if you want to sell your house, it could cost you 10 between the brokage commissions, fixing it up, etc. So unfortunately today, period yang net worth in america is around 45,000. Its about 20 below greece. Liz thats crazy, i mean, 20 below greece, but what is the answer . By simply making sure or removing the Government Support of propping up a Housing Market and propping up Home Ownership . Well, i dont i think the Government Support was really important over last three, four years to try to get us out of what we got into. So today Financial Markets and the Commercial End would finance if the government stepped away, and i think in many other areas youd get financed without the government. Might be half a percent more, might be a percent more. But i think if the government looked at what are our priorities, the indirect subsidy that the federal government has provided could have been much better provided in education and health care. So if the government decides how to allocate its money, the future of a city, a state, our country is based really on the productivity of our people and the education levels and their skill set. Liz which brings us to education. You know, the u. S. Spends a huge amount of gdp, 7. 3 , on public education, and yet were falling behind, mike. You look at any of the metrics. U. S. Students are barely making the grade. Is the answer throwing her money at the problem . The answer is not throwing more money because when you look at the correlation of performance of schools and how much they spend, it isnt necessarily correlated. But you have to remember if we go back to housing, in 11 Asian Countries today they spend as much the middle class of their own money on supplemental education of their children as they do on housing and transportation. The American People are spending 25 times as much money in the middle class on their house and their car as a supplemental education of their children. Education in asia is a consumer product, not just a state product. And we need to encourage our families and individuals to understand that the future be of their family the future of their family lies in the education of their children, not the size of their house. Liz okay, i agree, but parents are leveraging themselves just to send their kids to college. I mean, youve seen the student debt limits, thats terrifying. Well, i think we want to step back. First, the highest rate of return on education is early child Care Education. So a dollar invested in a 5yearold by the time youre 22, you have to invest 5 to get the same result. If you go to china, they spend substantially more on early child Care Education than they do on college. And, yes, were going to have to find a way to deliver college at substantially lower prices. But if you start with early child Care Education, you find that, for example, that probably a 70 accuracy rate you could decide who to hire when theyre 5 years old. [laughter] okay . And so this is the key. We need to start with a Strong Foundation in education. Liz and finally, weve got a minute left here, youve talked about education, youve talked about getting government out of housing and picking out those retaining walls, obesity. Specifically, obesity. Youve made a lot of splash in the Health Care World by looking at things like prostate cancer, now youre turning your attention to this issue. Well, theres three parts of health care. First part is prevention and wellness. And about six years ago we published a report called an unhealthy america. The United States is the heaviest country in the world. And this has only curred over a 20year period. And between absenteeism and out of pocket medical costs, the change in weight in america in the 22 years cost the country 1 trillion a year. So if americans can just weigh what we weighed in 91, we could have 1 trillion a year benefit to our society. Liz can you imagine . The other side of the equation is, obviously, treatment where 90 of the money is spent and then cure. So our faster Cures Foundation in washington and others is very focused on how can we accelerate solutions. But unfortunately, the United States has been reducing its investment in research because of this enormous cost due to the change in weight in america. Liz Mike Milliken of the milliken institute. Theyre doing amazing work at the institute and always have. Thank you so much. Great to be here, and were going to find out financial incentives for all these problems. Liz financial incentives, okay. Money yeah, its called bribing the kids. No, its not bribing the kids. [laughter] liz mike, thank you so much. Great of you, Mike Milliken. Coming up in the next hour on after the bell, we continue talking education with a man whos completely overhauled it simply by putting little lesssons up on youtube. Sal khan quit his job as a very wealthy Hedge Fund Manager to create khan academy. How many of your kids have gone on this, right . He did it in the hopes of fixing the u. S. Educational system. Now bill and Melinda Gates are onboard, eric schmidt of google, a lot of people giving money, and he has some big ideas that may make a few waves. Closing bell ringing in 43 minutes as the feds launching an investigation into tesla model s sedans. Were taking you to california to find out whether cadillacs new electric car could be teslas most formidable challenger. Wait until you see it. And here at the cme annual global Leadership Conference, im speaking with terry duffy. Its a fox business exclusive. Its his first interview since the news broke friday that the cme had a cyber intrusion. He is the man in charge of the worlds large futures Trading Platform. Ill ask him everything about the feds expected taper to that recent cyber attack. Stay tuned. vo you are a business pro. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrft. vo meeeow, business pro. Meeeow. Go national. Go like a pro. You can fill that box and pay one flat rate. I didnt know the coal thing was real. Its very real. David rivera. Rivera, david. [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. [ male announcer ] fedex one rate. When you do what io, iyou think about risk. I dont like the ups and downs of the market, but i cant just sit on my cash. I want to be prepared for the long haul. Ishares minimum votility etfs. Investments designed for a smoother ride. Find out why 9 out of 10 large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus, which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. And this park is the inside of your body. See the ecial psylliumiber in metamucil actually gels to trap some carb to help maintain healthy blood sugar levels. Metucil. 3 amazing benefits in 1 super fiber. Liz to the power mover of the hour, best buy. The consumer lek Electronics Retailer delivered, okay, improved quarterly results, but look at shares, slumping 10 . Why the mess . Well, best buy warned that a, quote, competitive environment could hurt the companys Gross Margins in the fourth quarter. What does this mean . Well, the walmarts of the world are cutting their prices for door buster activity leading up to thanksgiving. Best buys trying to compete with all rivals on price, but they know how difficult that is going to be right now. Okay, heres whats difficult. Starting a car company and not having a single problem . No ones ever done that, so its no surprise that, of course, teslas had a few problems. But just as this happens and theyve had a few car fires, the competition is heating up in the electric car race as General Motors introduces the cadillac elr. Now, this is cadillacs very First Electric car. Is it impressive enough to lure buyers away from the tesla it car, the model s . Joining us now from california as the l. A. Auto show gears up is our own jeff flock, right there, santa monica. On pch, go for it, jeff. Reporter oh, you know this so well. Im on ocean avenue at the moment, we took the elr out on the pch, and, you know, ive test driven now both the tesla and the electric cadillac. Weve got pictures, i think, of both test drives, and ive got to tell you the bottom line is theyre both good cars. Tesla, i think, is in for a battle on this. The difference, of course, is the elr is not all electric, it has got that gas backup engine which some people like, other environmentalists say i dont want a gas engine at all in my car. If you look at the cost of the vehicle, if you look at the range of the vehicle, the charging capabilities, actually, the tesla comes out on top in this a lot of those categories. And, you know, thats just the reality of it. They really have been ground breaking. But gm is making up ground very fast on this, and ill tell you, it comes down i think, liz you mentioned at the outset this battery fires issue. Gm points out they have had no battery fires with all of the vehicles theyve got out on the road in terms of the electric volts. They did have an issue, you know, when they start they tested them, they did a crash test, and they did have a little bit of a problem there, but nothing since then. And they have a lot of armor around those batteries. Tesla does not have the batterypacked armored as well. That may be something, if youre really concerned about safety, that may be something that gives gm some traction in addition to the fact its a beautiful car. We took a lovely ride with pam fletcher whos the Vice President at gm, and its a great car. I think it stacks up to the tesla. We will see if the people embrace it as well, but it could be huge for both companys stock. If the tesla has real competition, that could depress them. If gm begins to tap into that marketplace, they could be sailing too. Very important launch. Liz yeah. And, you know, looking at down just about a percent be here, but General Motors has come firing back, and some younger folks are buying these cadillacs. So this is sort of the beginning of the great new way, perhaps, with electric vehicles. The competitions always good. Weve got that closing bell ringing in about 39 minutes. Fed chairman ben bernanke getting ready to deliver a major speech about two huge issues for investors. Were telling you exactly what those issues are and what mr. Bernanke is like to say, because fed policy moves the markets and your money. It will be just one of the topics in my exclusive interview with terry duffy,cme annual Global FinancialLeadership Conference in naples, florida. Such a parade of