Lexus

Lexus once again topped the chart. The maker averaged just 73 problems per 100 vehicles included in the survey.

The quality of the cars rolling out of U.S. dealer showrooms has reached the highest level ever, according to a new study by J.D. Power and Associates. 

“This is, without doubt, the best level of quality we’ve ever seen,” said Dave Sargent, vice president of global automotive at J.D. Power.

But while traditional problems like squeaks, rattles and electrical glitches have become increasingly uncommon, owners are registering a growing number of complaints about their high-tech audio, entertainment and navigation systems. Younger buyers -- those under 35 -- are about twice as likely as older buyers to complain about tech issues

Sargent described the challenge of building in more technology -- without quality issues as "the battleground of the future" among manufacturers.

Power’s 2012 Initial Quality Survey shows a nearly 5 percent improvement compared with last year’s results on the number of problems owners experienced with their vehicles. Of the 34 brands ranked by the IQS, 26 improved their 2011 results, only five showed declines. Of 185 different models that were on the market during both years, 65 percent improved their quality scores in 2012.

Lexus, the perennial leader in initial quality, topped the chart again. The automaker averaged just 73 problems per 100 vehicles included in the survey – 73 PP100 in J.D. Power-speak – or less than one reported problem for every vehicle Lexus sold.  But Porsche and Jaguar were close behind, tied for second. That’s particularly significant since Jaguar “literally leapfrogged” from 20^th place last year, said Rafi Festekjian, JDPA’s Director of Automotive Research.

Historically, brands that land in the upper quartile of the IQS have a significantly higher loyalty rate – measured by repeat buyers – than those who have more quality problems.  And Power data suggest that quality and reliability is still the single most important factor in determining what vehicle to buy for 59 percent of American motorists.

“The good news is that the industry has made major improvements,” said Festekjian. He said the sharp increase in quality scores was all the more impressive considering manufacturers have “had to keep their eyes on the ball” even as their plants were running significant overtime to keep up with demand in the fast-recovering U.S. automotive market.

Now in its 26^th year, the IQS actually covers two distinctly different sorts of potential problems. There are the classic defects and malfunctions, anything from a faulty turn signal to an engine failure, and there are the design-related problems. These can include such issues as poorly designed cupholders or a balky navigation system.

By traditional measures, there are fewer defects than ever. But there’s been a sharp 45 percent increase in problems related to audio, entertainment and navigation systems since 2006, according to Festekjian. Wind noise issues were traditionally the most common complaint fielded by the IQS. “Now, we’re seeing that hands-free systems not recognizing commands has become the number one reported problem,” he noted.

The problem is compounded because more cars come with hands-free systems of one sort or another – more than 80 percent of the vehicles covered by the 2012 IQS.

That underscores the challenge facing automakers like Ford. The second-largest of the domestic manufacturers has drawn in plenty of new customers with its Sync infotainment system. But problems programming the technology let Ford slip sharply in the 2011 IQS and it hasn’t fully recovered yet. Ford showed only a slight improvement in its score in the 2012 study, but slumped to well below the industry average of 102 problems per 100 with a brand score of 118 pp100.

Japanese makers in general topped the list, with seven of the 15 brands scoring above industry average. Detroit had four brands in that group, led by Cadillac with a score of 80 PP100. European makers had the remaining four above-average brands.

Two microcar brands, Fiat and Smart, lagged at the other end of the scale, with 151 problems per 100 vehicles. British Mini fared only slightly better with 139 PP100. 

But even the weaker brands generally showed some improvement over their 2011 scores, noted Festekjian.  He also pointed out that the old industry axiom that smart shoppers should wait until a vehicle is on the market for at least a year isn’t necessarily true anymore.

A number of all-new or completely redesigned vehicles actually did better than the models they replaced, including the Audi A6 and A7 lines, the Toyota Yaris, the Honda CR-V and the Mercedes M-Class.

“It’s a testament to how manufacturers are listening to the voice of the consumer and then embed that across the board from product planning to manufacturing to the dealer,” he said.

In terms of individual market segments, Ford and Lexus each led in three, for the Expedition, Taurus and Mustang and for the ES350, LS and RX, respectively.  Nissan, Infiniti and Toyota each led in two segments.

The Porsche 911, meanwhile, not only topped the ranks of premium sporty cars but had the single best score of any vehicle since J.D. Power redesigned the IQS in 2006.  The iconic sports car averaged just 44 PP100 in a study where the lower the score the better.

The annual quality study also singles out the highest-quality assembly plants and the Platinum Plant award was given to Honda’s Suzuka 3 assembly line in Japan, which produces the maker’s CR-Z crossover and Fit subcompact models. 

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Federal Reserve Board Chairman Ben Bernanke speaks at a press conference Wednesday.

Rather than doing nothing, the Federal Reserve decided Wednesday to do as little as it possibly could.

The Fed’s decision to extend its “Operation Twist” economic stimulus program represents the path of least resistance for a central bank contemplating a raft of economic troubles, including a financial crisis in Europe and a weakening U.S. economy, analysts say.

At the conclusion of its two-day policy meeting, the Fed said it will prolong the program until the end of the year. The $400 billion program was launched last fall and was due to expire later this month. The extension adds another $267 billion, according to the Fed.

At a press conference Wednesday afternoon, Fed Chairman Ben Bernanke said that there has been a great deal of new developments since the Fed’s last meeting in April and that a lot of the incoming data were “disappointing.” He added that while the step the Fed has taken is substantive, further quantitative easing is still on the table, if needed.

When pressed by reporters why the Fed hadn’t done more to stimulate the economy, particularly in light of the Fed’s reduction of its growth outlook Wednesday, Bernanke said additional asset purchases “would be something we would consider if we need to take further steps to help the economy.”

Many analysts had expected the Fed to announce something to signal to the markets that it is willing to provide further support to the economy. In its policy statement the Fed didn't adjust interest rates, but said that growth in employment has slowed recently and unemployment remains elevated.

The “Operation Twist” program adjusts the composition of the government bonds held by the Fed by swapping short-term assets for longer-term assets. The idea is to push down long-term interest rates, making it easier for businesses and consumers to get credit, supporting the recovery.

Operation Twist is likely to have a limited impact on the economy at this point, analysts say. The Fed had been painted into a corner last week, however, when the stock market rallied strongly on the expectation that central banks around the world would provide more stimulus in the event of a Greek exit from the eurozone following a crucial election last weekend.

Related: Fed extends 'Operation Twist,' says hiring has slowed

“This is the minimum the market would accept,” said J.J. Kinahan, TD Ameritrade’s chief derivatives strategist. He said the Greek election, which eased fears of an imminent financial disaster in the eurozone by handing victory to a party that supports Greece staying in the currency union, meant the Fed didn’t have to do anything more radical to boost the economy.

“They had to do something, and by extending Operation Twist they’ve given the markets confidence that they are ever watchful,” he said. “They maintained the status quo in a way that the market would be comfortable with.”

“And to their credit they kept their power dry,” he continued. “It’s not like this Greek election has solved the problems in Europe. They kept themselves in a position of reacting in case of worse news from Spain or Italy.”

Recent reports, including two straight months of weak job growth, suggest economic growth is slowing again after a tepid recovery. The Fed reiterated its plan Wednesday to hold down rates until late 2014 to sustain the recovery, and in testimony earlier this month Bernanke said the Fed is ready to act if needed.

Others had hoped for something stronger from the Fed, such as another massive bond-buying program known as “quantitative easing,” or QE, in which the Fed essentially prints money to buy long-term mortgage or Treasury bonds.

That would be controversial because past efforts have had a questionable success rate, and it brings with it the risk of inflation down the road because it increases the money supply. Also, economists say the Fed is likely to want to keep something in its arsenal in case the economic outlook worsens over the summer.

The Fed is likely to want to hold some of its arsenal in reserve. Earlier this month, Bernanke told Congress it must take decisive steps to repair U.S. policies on taxes and government spending, noting that tax increases and government spending cuts that are supposed to start in 2013 -- also known as the “fiscal cliff” -- could push America into recession if they are not addressed.

“It’s still a bit early, but as we move forward in the year we do anticipate seeing some effects,” Bernanke told reporters Wednesday. The effects will hurt employment in many localities and states and affect the pace of growth in the overall economy, leading to slower economic growth, he added.

The ongoing financial crisis in Europe is another potential problem for the U.S. economy, Bernanke said.

“We are hoping that European policymakers will take the additional steps they need to take to stabilize the situation but we are prepared in case things get worse to protect the U.S. economy and the U.S. financial system,” he said.

With major events in Europe looming, including a European Union summit in late June and a meeting of the European Central Bank in early July, the Fed is likely to want to keep something up its sleeve, said former Fed governor Larry Meyer.

“If things get really bad, then I believe we will see coordinated central bank action, and I think the Fed wants to be able to do as much as possible, consistent with what other central banks are doing,” Meyer said.

Peter Fisher, head of investment manager BlackRock’s global fixed income portfolio worth $1.2 trillion, said it would have been better for the Fed to hold fire Wednesday.

“I don’t think either twist or balance sheet expansion has much more room to be effective here,” he told CNBC. “If they keep taking long-term treasuries out of the market, they’re denying the banking system the best collateral in the banking system, and that doesn’t provide credit.”

“Monetary policy works though changing our expectations, so they’ve got o shock us; do something we don’t expect,” he said.

Randall Kroszner, a professor at The University of Chicago’s Booth School of Business and a former Fed governor, told CNBC that the Operation Twist asset-purchase program is likely to have a limited impact on the economy, and particularly on housing -- the biggest drag on the recovery.

“I think the Fed has done almost all it possibly can do,” Kroszner said. “It really has to be other polices that try to get the housing market moving.”

In a statement Wednesday, the Fed shaved its forecast for economic growth in 2012, projecting that the economy would grow at a range of 1.9 percent to 2.4 percent, down from an April projection of 2.4 percent to 2.9 percent. It also cut forecasts for 2013 and 2014.

As for unemployment, the Fed said it now expects the jobless rate to stick around 8 percent for the rest of this year.

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Confronted with a stumbling U.S. recovery and a financial crisis in Europe, the Federal Reserve decided Wednesday that it would extend a program known as "Operation Twist" aimed at pushing down long-term interest rates and boosting the economy.

The Fed said in a statement that while the economy has been expanding modestly throughout the year, growth in employment has slowed recently and unemployment remains elevated.

It said it expects economic growth to continue to grow moderately over coming quarters and then to pick up gradually. "Consequently, the Committee anticipates that the unemployment rate will decline only slowly toward levels that it judges to be consistent with its dual mandate," the statement said. It shaved its forecast for economic growth in 2012, projecting that GDP would grow at a 2.4 percent rate max rather than the 2.9 percent pace it predicted in April.

As for unemployment, it now expects the jobless rate to stick around the 8.0 to 8.2 percent range, from 8.2 percent now and its April projection of around 7.8 to 8.0 percent.

The Fed also voted to keep interest rates unchanged at historic lows at least until the end of 2014.

Its assessment of the economy appeared slightly more negative than its previous outlook in April. For example, it pointed out that the pace of household spending seems to have slowed and that the housing sector remains depressed, despite some recent signs of improvement.

It also took pains to mention the situation in Europe, where eurozone officials are struggling to contain a debt crisis that threatens to engulf the continent and slow economies throughout the world, including the U.S. "Furthermore, strains in global financial markets continue to pose significant downside risks to the economic outlook," the Fed said in its statement.

Given all that, the Fed said it would continue through the end of year to sell short-term securities and buy longer-term bonds to push down long-term interest rates. That strategy, known popularly as Operation Twist, originally was meant to end soon.

The Fed did not decide to provide the economy with what some felt would be stronger medicine by performing another massive round of bond buying, known as quantitative easing, and expanding its portfolio of assets. But Federal Reserve Chairman Ben Bernanke said in a news conference that the Fed was ready to do more to help the economy, if needed.

Story: Federal Reserve takes path of least resistance

"The Fed move to extend the Operation Twist program is conservative and wary. The central bank is signaling its concern for the economic future, both American and European, without unduly damaging the present by weakening the dollar," Worldwide Markets Chief Market Strategist Joseph Trevisani told Reuters.

A survey of chief executives shows fewer large U.S. companies plan to hire or boost spending in the next six months, reflecting a weaker U.S. economy.

The Business Roundtable says 36 percent of its CEO members plan to add workers over the next six months. That's down from 42 percent when the survey was last taken three months ago.

Jim McNerney, the group's chairman and CEO of The Boeing Co., blamed the dip in sentiment on "concern over increasingly persistent obstacles to a stronger recovery." Those include uncertainty over potential U.S. tax increases and spending cuts early next year and Europe's financial crisis.

Only 43 percent say they plan to step up spending on machinery, computers and other large goods, down from 48 percent. Most CEOs still expect sales to increase in the next six months.

Overall, the CEO Outlook survey index fell to 89.1 in the second quarter, down from 96.9 in the first three months of the year. Any reading above 50 indicates growth.

The gloomier outlook follows a sharp pullback in hiring over the past two months, which has raised concerns that the economy is slumping after a fast start. Job growth averaged only 73,000 in April and May, after average gains of 226,000 per month in the first three months of the year. The unemployment rate rose to 8.2 percent in May from 8.1 percent.

McNerney said that companies are delaying hiring, and even laying off workers, in anticipation of what many economists call the "fiscal cliff" that looms at the end of this year. Several large tax cuts are scheduled to expire and big spending cuts, including in defense, are set to take effect Jan. 1.

While President Barack Obama and lawmakers say they will delay the onset of the changes, McNerney said companies can't be sure. Last year, Congress and the White House agreed only at the last minute to raise the government's borrowing limit and stave off a possible default.

"We have yet to regain faith that the process will deal with it," McNerney said.

As a result, "we don't know how corporations, or individuals, or capital will be taxed," he said. "That is having an impact on the results you see here."

Boeing and many other aerospace companies with government contracts are holding back on hiring and are cutting jobs in anticipation of the spending cuts, he added. 

Europe: The big worry
Europe's woes are of far more concern than slowing growth in China, McNerney said. About a quarter of U.S. exports go to Europe, Roundtable officials said.

"The European situation could decelerate quickly," McNerney told reporters on a conference call. "We hope it doesn't, but I think it has a greater possibility to decelerate quickly, whereas China is more a matter of having 6 percent growth as opposed to 9 percent growth for a while."

Europe's sovereign debt crisis stands as one of the greatest current risks to the world economy. While investors breathed a sigh of relief after this weekend's elections in Greece, which lowered the risk that the heavily indebted country would pull out of the euro currency bloc, concerns are now rising that Spain, the zone's fourth-largest economy, would need an international bailout.

Political deadlock in Washington ahead of the November elections also worries U.S. CEOs, particularly those in the defense industry bracing for $500 billion in automatic additional spending cuts later this year if Congress fails to reach an agreement on other savings and revenues.

That and uncertainty on how U.S. tax policies could change in the coming months has CEOs wary of hiring or committing to large new capital investments, McNerney said.

"Companies are holding back," he said.

CEOs cut their forecast of overall growth in the U.S. economy and now look for a 2.1 percent rise in gross domestic product, versus the 2.3 percent forecast in March.

The survey of 164 CEOs was conducted from May 17 through June 8. Business Roundtable member companies generate $6 trillion in annual revenues and employ more than 14 million people.

The Associated Press and Reuters contributed to this report.

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John Gress / AP

Starbucks is planning to open its first tea shop, under its Tazo Brand.

Starbucks Corp. is planning to open its first Tazo tea shop this fall, in yet another move to expand beyond its ubiquitous coffee shops.

The Seattle-based cafe chain says the store will open near its headquarters and will include a tea bar where customers can blend their own tea mixes with the help of a store worker the company is calling a "tea partner."

The store will offer more than 80 varieties of loose-leaf tea, tea lattes and iced teas, as well as packaged chocolates, infused sugars and honeys. Pastries and other food will also be served, as in the company's coffee shops. It will not be branded with Starbucks' "green dot" logo.

It's just the latest move by Starbucks to expand beyond its 17,000 flagship cafes around the world. Earlier this year, for example, the company announced plans to open its first Evolution Fresh Inc. juice store.

Starbucks also plans to start selling a single-cup coffee machine this fall that lets people brew lattes and other drinks at home. The company already offers other single-cup options, including K-cups that are compatible with the Keurig systems made by Green Mountain Coffee Roasters Inc.

Starbucks doesn't yet have any plans for additional Tazo tea shops. But the company notes that Tazo is a $1.4 billion brand that it's looking to grow, as it has done with coffee.

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LOS CABOS, Mexico -- The scene at the just-concluded Group of 20 summit held in this seaside resort would have been unthinkable a decade ago: Hundreds of dignitaries gathered in opulent Mexican hotels and convention halls to hammer out an economic bailout for Europe. Meanwhile, the leaders of Brazil and China kicked in tens of billions of dollars to the International Monetary Fund to rescue downtrodden Spain and Greece.

Although the gathering didn't produce a solution for the ailing euro zone, it did outline the globe's new balance of power. Developing countries projected optimism and wealth over the summit's two days, while European and U.S. leaders struggled just to stay solvent.

A lot has clearly changed since the 1990s, when Asian and Latin American economies were slogging through recessions while Washington-based power brokers ordered up the very kind of austerity-minded prescriptions now sparking street protests in Europe.

Even during recent economic crises in the U.S. and Europe, China has been posting annual growth rates topping 8 percent. Countries with booming Chinese trade, such as Argentina and Ethiopia, have similarly seen their economies thrive. China's economy surpassed Japan's over the past year to become the world's second biggest; Brazil's overtook the U.K.'s to take sixth place.

"It is a different picture and reflects the fact that (developing) economies are not only the largest and fastest growing economies but are among the biggest economies in the world," said Uri Dadush, director of the international economics program at the Carnegie Endowment for International Peace. "Clearly, neither the Americans nor the Europeans are in any position to tell the biggest economies what to do."

Mexican President Felipe Calderon cut to the point while speaking to reporters Tuesday afternoon as he noted developing world contributions to the IMF for a possible European bailout. Although the countries still have lower standards of living, their economies are growing and many have amassed large foreign reserves.

China had pledged $43 billion to the fund, while India, Mexico, Brazil and Russia each chipped in $10 billion. The United States, Calderon drily noted, was not giving a single penny, due to "serious restrictions of a legal and political nature." In other words, coughing up billions to save Europe was impossible for deadlocked U.S. politicians, especially in an election year and as the country struggled with its own budget deficits, economic analysts said.

University of Maryland economist Phillip Swagel, a former Treasury Department official in the George W. Bush administration, said developing countries' new economic power was already translating into growing political might.

In fact, the BRICS countries representing Brazil, Russia, India, China and South Africa were the ones making demands on Europe during the summit, saying they should be given a bigger role in the governance of the IMF if they were going to send billions to the fund. Europeans have traditionally led the organization since its founding nearly seven decades ago.

"With their resources comes a greater say," Swagel said. "It's a big change. We were once telling Asian counties what to do."

The power shift was clear in the air-conditioned hallways and balmy outdoor lounges of the G-20 where dignitaries and reporters mingled.

News crews from Ethiopia and China filled press conferences, while Brazilian and Russian leaders drew the most attention. Humbled European heads of state stepped before TV cameras to thank China for helping out while promising that their countries would do better.

Heloisa Castro, a Washington-based reporter for the Brazilian network Record TV, said Brazilians were energized by their new prominence, after so many decades of suffering dreadful busts and booms. Still, she said, they had no right to preach solutions to Europe, a point President Dilma Rousseff made to an international gaggle of reporters Tuesday.

Preventing European and U.S. turmoil from dragging down Brazil was the order of the day, Castro said, as economic growth in some developing countries has slowed sharply this year.

"I think it's very curious that now, we who have been through all these IMF adjustment programs in the past with their draconian conditions, we now are seeing European countries go through the same thing," Castro said. "But if the economies in Europe and the U.S. go down, we all suffer. We can't only live with the BRICS countries."

TODAY real estate contributor Barbara Corcoran provides an insider's look at some of the celebrity homes currently on the market, including Jim Carrey's Malibu mansion and Sandra Bullock's Austin, Texas, getaway.

Also, in more down to earth real estate news, Corcoran looks at what home buyers can get for $400,000 around the U.S.

Procter & Gamble sent a shudder through the retail world Wednesday.

The world's largest maker of household products -- from Gillette razors to Tide laundry detergent -- cut its growth forecast, telling investors that slower-than-expected growth in the developed world is to blame.

“The revisions to the Company’s fourth quarter outlook are primarily driven by slower-than-anticipated, top-line growth from slower-than- expected market growth rates and market share softness in developed regions and negative impacts from foreign exchange rate changes,” P&G said in a statement.

P&G’s share price fell nearly 4 percent to just below $60 in morning trading.

The household products maker said a stronger U.S. dollar and higher commodity costs were also holding back growth. P&G also said it has struggled to grow operating profit for the past three years.

P&G is currently in the early stages of a $10 billion restructuring.

Appearing at an investor conference in Paris, P&G’s Chief Executive Bob McDonald said the company would now modify its strategy and focus on big markets and new products. He also said growth in developed markets, which makes up 60 percent of sales, has fallen sharply.

“We have seen sequential deterioration in the rates of market growth in both the U.S. and Europe, and there has been a slowdown in the rate of market growth in China,” McDonald told the conference.

Joseph Altobello, an analyst at Oppenheimer who covers P&G, said it’s possible that the board may consider a replacement for McDonald at some point if the situation worsens for P&G.

“I think clearly in this type of environment patience may run thin at some point,” he told CNBC.

Another issue facing P&G specifically is softness in market share. P&G has recently found itself out-innovated by rivals such as L’Oreal and Energizer, Altobello said.

P&G’s guidance matters because consumer spending accounts for about two-thirds of economic activity in the U.S.

Reuters contributed to this report.

For a complete list of the latest market movers click here.

Jeff Haynes / AFP/Getty Images file

Could Carroll Shelby have created the latest round of mischief that is keeping him from finding final rest?

Carroll Shelby was never one to shy away from a good ol’ Texas brawl, but few expected controversy to follow him to the grave.

Yet, more than a month after his death and weeks after a West Coast memorial service that brought celebrities like Jay Leno and scores of Shelby owners out for a celebration of his life’s work, the legendary racer and raconteur’s remains are still being held in a Dallas morgue.

The problem is a family feud pitting his sixth and last wife Cleo Shelby against his three children.  Each side claims to hold documents allowing them to dispose of Carroll Shelby’s body.

The one-time chicken farmer and Navy flight instructor became a force to be reckoned with, both on and off the track, after leaving military service in World War II.  By 1959 he had won the grueling 24 Hours of Le Mans endurance race but his career behind the wheel was cut short when an old heart ailment that had left him bedridden as a child returned. 

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Shelby ran his last few races with a nitroglycerine tablet under his tongue. Then, at 37, rather than abandon the world of motorsports, he started teaching performance driving and launched his own specialty car company.  A half-century later, even a Shelby Cobra needing some work might fetch a million dollars or more at auction.

Shelby later formed a long-running alliance with automotive executive Lee Iacocca, first at Ford, where the tall Texan lent his expertise and name to high-performance versions of the Mustang, then following Iacocca to Chrysler.  In recent years, Shelby returned to Ford, again planting his name on the maker’s most powerful Mustang ever, the Shelby GT500, while also running his own tuner car company near Las Vegas.

But Shelby was never far from controversy in his business dealings, especially when he claimed to have found “incomplete” chasses for dozens of the ‘60s-era Cobras and started selling “completed” models soon after.  It soon turned out they were being built from scratch and were relabeled “continuation” Cobras. 

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“Carroll always gave me a big hug whenever he’d see me, but I’d always check for my wallet after” recalls one Detroit executive with a twinkle, asking not to be identified by name impugning the deceased.

Could Carroll Shelby have created the latest round of mischief that is keeping him from finding final rest?  While widow Cleo Shelby insists she was given the power of attorney by her late husband two years ago, the three Shelby children insist they have signed papers directing them to have their father’s body cremated.  It supposedly calls for Carroll Shelby’s ashes to be divided up among sons Patrick and Michael, daughter Sharon, and a burial plot in East Texas.

“There’s just a lack of closure in a situation where he did have a nice, long life,” Patrick Shelby told The Associated Press. “He’s got relatives down in East Texas, and we’re just not able to get this chapter closed. And I’m not really sure what the reasoning is.” 

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For her part, Shelby’s widow calls the cremation document a forgery and hints at what could become an even more bitter, drawn-out battle, insisting that in his final months of life, one of Shelby’s sons “arranged to exclude” her from being at her husband’s side as much as possible.

The two sides have taken their dispute to a Dallas County court, temporarily leaving Shelby’s body under the control of the medical examiner’s office because some of the claims made in the dispute potentially falls within Texas criminal law.

Attorneys for the two sides aren’t discussing where things stand and, for the moment, there’s been no hearing scheduled.  

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 JPMorgan Chase’s Chief Executive Jamie Dimon appeared before lawmakers on Capitol Hill again Tuesday, saying his bank was upfront with investors about its multibillion-dollar trading loss.

“We disclosed what we knew when we knew it,” Dimon told the House Financial Services Committee in his second appearance in a week before lawmakers to explain the failed hedging strategy at his bank that saw it lose billions.

Dimon acknowledged that JPMorgan in January changed a “value-at-risk” model for the trading portfolio in question. Also known as VAR, value-at-risk measures the expected losses in a portfolio over a given time period.

JPMorgan did not disclose the change until May 10, when Dimon also revealed that the trading portfolio had produced at least $2 billion in losses.

Dimon told lawmakers Wednesday that he believed risk controls “were properly being done.”

Asked by one lawmaker what he thought when he first learned of the losses, Dimon said:

“When we fully realized it, I told my people everything’s going to happen, including coming down here to Washington,” he said, but determined that he should remedy the situation.

“I said let’s put our jerseys on and fix this,” he said, adding that he aims to do the right thing for the bank’s customers.

“I don’t want this to detract from all that our 260,000 people do every day,” he said.

The Securities and Exchange Commission, the Commodity Futures Trading Commission and the FBI are looking into the bank’s multibillion-dollar loss. The bank is expected to give a full update on losses resulting from the trade when it reports its second-quarter earnings July 13.

Dimon’s testimony comes on the heels of his appearance last Wednesday before the Senate Banking Committee. He was expected to receive a frosty reception. Instead, Dimon was treated cordially by most of members of the senators on the committee.

Members of the House Financial Services Committee went harder at Dimon, asking him repeatedly to defend the size of JPMorgan, the nation's largest U.S. bank by assets.

Dimon responded that JPMorgan is “not too big to fail,” adding that he doesn’t think there’s “any chance we’re going to fail.”

The SEC is looking into whether JPMorgan misled investors in its April earnings statements by not disclosing its change to VAR. the change potentially masked the riskiness of the trading portfolio in question.

Reuters contributed to this report.

 NEW YORK -- Weakening economies that roiled markets last year also took their toll on the world's rich, though faster-growing Asia for the first time had more millionaires than North America, according to a study released on Tuesday.

A new report said the global personal wealth of people with $1 million and more to invest fell in 2011 for the second time in four years, reflecting the euro zone crisis and economic sluggishness in developed markets. But several emerging markets also felt pain, as the number of millionaires in India and Hong Kong fell by almost one-fifth.

And with Europe's debt crisis still in full throttle, the outlook for wealth creation in 2012 remains dim, according to Capgemini and RBC Wealth Management's latest world wealth report.

The world's population of millionaires grew by 0.8 percent to a record 11 million, according to the report, yet their collective wealth fell by 1.7 percent to $42 trillion. Every region except the Middle East saw declines in wealth. It was the first global drop in millionaire wealth since the 2008 financial crisis, when the ranks of the wealthy fell by 15 percent and their wealth contracted by 20 percent.

Families with $30 million or more to invest saw their combined wealth fall 4.9 percent and their ranks shrink by 2.5 percent to 100,000 people. This decrease reflects their holdings in higher-risk and less liquid investments like hedge funds, private equity and real estate.

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Sinking stocks, slowing exports and slumping currencies hit some countries especially hard. India saw its ranks of millionaires fall by 27,500, or 18 percent to 125,500 last year, reflecting a one-third decline in stock market values and a weakening rupee. Hong Kong's millionaire population fell by 17.4 percent as euro zone woes weighed on its own growth.

Last year was the first time India's wealthy declined in population since 2008, when their ranks fell by 32 percent amid falling stock prices and lower global demand for goods and services, according to Capgemini.

"It was a challenging environment for our clients," George Lewis, global head of wealth management at Royal Bank of Canada, said in an interview.

The Toronto banking giant, one of the world's 10 largest wealth managers, took over sponsorship of the widely watched report last month from Bank of America's U.S. brokerage unit Merrill Lynch.

Lewis noted the number of high net worth individuals rose even as overall wealth decreased.

"It at least suggests there continues to be upward mobility and the ability to generate wealth around the world," he said.

China's population of those with at least $1 million to invest rose by 5.2 percent to 562,400 last year. Japan's millionaires increased by 4.8 percent.

Last year was tough on investors, who were buffeted by a tsunami in Japan, a downgrade of U.S. sovereign debt, political unrest in the Middle East and North Africa, and waning confidence in governments struggling to stimulate growth. And weakness in developed markets slowed growth in export economies in Asia and Latin America.

Poland and Singapore, though far apart on the globe, both suffered from the euro zone crisis. Poland, as foreign investment fell, saw its number of millionaires fall 7.8 percent while those in Singapore dropped 7.3 percent, reflecting lower demand for exports.

In 2009 and 2010, people worldwide with at least $1 million to invest saw their combined wealth surge by double digits.

Capgemini's report tracks financial assets but excludes an individual's primary residence, collectibles, consumables and consumer durables.

Millionaire wealth in the United States and Canada in 2011 fell 2.3 percent to $11.4 trillion -- still the wealthiest region by this measure -- though it had 1.1 percent fewer millionaires, slipping by about 39,000 to a total of 3.35 million.

Strong economic growth in China and other markets increased the ranks of millionaires across the Asia-Pacific region by 1.6 percent to a total of 3.37 million, as Asia vaulted past North America as home to the most millionaires.

Even so, overall wealth in the Asia-Pacific region slipped 1.1 percent to $10.7 trillion, as key markets such as Hong Kong and India lost ground.

"The economic slowdown, some debt challenges and indices that dropped 30 percent in 2011 were major factors that drove the decline in India," William Sullivan, global head of market intelligence at Capgemini, said at a New York press briefing Tuesday.

On the other hand, he said, India's wealth has the potential for rebounding quickly, just as it did in 2009.

"We are expecting that if not in 2012, that certainly by 2013 India combined with China will continue to drive that strong growth from the Asia-Pacific region," he said.

Surprisingly, Europe increased its millionaire ranks by 1.1 percent last year, for a total of 3.2 million, while combined wealth fell 1.1 percent to $10.1 trillion. The report also said Europeans invest more of their wealth overseas, reducing their exposure to domestic markets.

The outlier in terms of wealth was the Middle East, where civil unrest that shook up equity markets worldwide led to surging oil prices and 3.1 percent economic growth. The region's millionaire ranks rose 2.7 percent to 450,000, and that group increased its wealth by 0.7 percent to $1.7 trillion.

The report cautioned that 2012 so far has remained challenging for investors. Concerns about China's growth rate, signs of further contraction in mature markets and the uncertainty stemming from elections and financial policy decisions also may weigh on 2012 performance, he said.

"Repeated flare-ups are likely to keep markets on edge," said Jean Lassignardie, a vice president at Capgemini Global Financial Services.

The report, now in its 16th year, does not delve into asset-allocation decisions made by wealthy investors as it has in the past, because that data was based on interviews with Merrill Lynch advisers.

Merrill Lynch, the original bank sponsor of the survey, is in talks to sell its non-U.S. wealth management business with Geneva's Julius Baer Gruppe AG, people familiar with the situation told Reuters Tuesday.

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Rounded walls and warm tones fill the home's great room.

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The home has corrals, pens and barns.

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