June 13 - Summary of business headlines: Global worries erase stock gains; JPMorgan CEO stands up to lawmakers; Data shows U.S. economy slows further in May; OPEC debates production cut. Conway G. Gittens reports.
Wall Street could not maintain an upbeat tone as worries about the global economy creep in. The Dow, S&P 500 and Nasdaq each fell less than a full percent lower on the day. Most of the attention was on Jamie Dimon. The head of JPMorgan Chase defended practices at the nation's largest bank. An apology for a lapse in risk that did not prevent a multi-billion dollar trading loss, quickly followed up by a message to the Senate Banking Committee: more regulation will not cure everything. SOUNDBITE: JAMIE DIMON, CEO, JPMORGAN CHASE (ENGLISH) SAYING: "We have to get rid of anything that looks like 'too big to fail'. We have to allow our big institutions to fail. It's part of the health of the system and we shouldn't prop them up. We have to allow them to fail and I'd go one step further, you want to be sure that they could fail and not damage the American economy and American public." The defense of his company seemed to go over well with shareholders. Take notice: a spring swoon could be turning into an early summer lull. U.S. producer prices dropped the most in three years and retail sales fell for a second straight month in May. The only bright spots: apparel, furniture, and cars. Consumers are cautious, even with falling gasoline prices, says Michael Londrigan of L-I-M College. SOUNDBITE: MICHAEL LONDGRIGAN, CHAIRMAN OF FASHION MERCHANDISING, LIM COLLEGE (ENGLISH) SAYING: "Prices at the pump has dropped 40 cents since April 6, that money I think is being spent more on necessities, housing and food as opposed to going back into the economy as retail sales." OPEC members gathering for a meeting want to cut oil production before a collapse in prices, but they have to convince Saudi Arabia to get on board. A drop in demand is largely behind a $30 drop in crude prices since March. Europe is a big factor in that weaker demand as the economic effects of the debt crisis spread. Most of the major European stock markets finished slightly to the downside. Conway Gittens, Reuters