we'll talk to tom kline, for sandusky victim number five and maryland governor martin o'malley and teri branstad and bob mcdonnell also here. we're going to talk to former u.s. olympian, dara torres, it's friday the 13th and "starting point" begins right now. welcome, everybody, breaking news to start "starting point" this morning, a story developing as well. jp morgan chase is releases earnings and disclosing they lost $5 billion in a monumental trading blunder. we're digging through the numbers. christine romans will update you on what that earnings report means straight ahead. also, more controversy over the uniforms for the united states olympic team. when they walk no london's olympic stadium, they are going to be wearing ralph lauren, red,

white and blue ensemble made entirely in china. lawmakers are outraged for outsourcing the clothing. alina cho joins us with more on that. >> there's rare bipartisan backlash on capitol hill about this. good morning, everything in the uniform from the beret to the blazer and shoes made in china. they are made by american designer ralph lauren as soledad said and they are just for the opening and closing ceremonies, recently i got an opportunity to look at the olympic gear with david lauren, ralph lauren's son and executive vice president of the company. he said they are focused on making olympians look good. >> you're meeting athletes and walking in the first olympics, many have never worn a tie or jacket or been on television before. we want the american team and athletes to really look like

ambassadors. >> but the chinese manufacturing has lawmakers furious, kirsten gillibrand and steve israel sent a letter to the chairman of the u.s. olympic committee asking that the committee only source uniforms from the united states in the future. is that possible? opening ceremony less than a month away. sherrod brown suggested the usoc get their uniforms from hugo boss in his home state of ohio. and harry reid was so mad, he wanted to destroy uniforms. >> i am so upset that i think the olympic committee should be ashamed of themselves. i think they should be embarrassed and should take all of the uniforms and put them in a big pile and burn them and start all over again. >> the u.s. olympic committee released a statement earlier this week which says, unlike most olympic teams around the world the u.s. olympic team is privately funded and we're

grateful for the support of our sponsors. we're proud of our partnership with ralph lauren, an iconic american committee and excited to watch america's finest athletes compete at the upcoming games in london. and ralph lauren, we reached out for comment. they told me they are not giving any statement about this, soledad. i was e-mailing with someone inside the company at ralph lauren, when i first told the person i was doing the story, the person said, is the story also focusing on the other olympic sponsors who do not manufacturer in the usa? when i said this is a story about ralph lauren and its uniforms being made in china, this person added so an athletes winning a medal not wearing products from the usa is okay? ralph lauren does not make the products for the athletes while competing or on the paodium. >> and that's going to be nike, they make in the united states

and overseas as well. >> when i was with david lauren, they very kindly made me this shirt with my name on the back, which was very nice. if you do look at the tag here closely, at the bottom there it does say made in china. naturally everyone is shocked and upset about this. the question is, with opening ceremonies on july 29th, can anything be done about it. >> what can be done about it at this late stage. >> alina, thanks, we're going to talk with nanette lepore, she does 98% of her manufacturing work in the united states. we'll talk to her later this morning. and back to our breaking news, we were talking about jp morgan and the q-1 and q-2

earnings reports. christine, walk me through what we're hearing? >> we know jp morgan in the second quarter logged a $4.4 billion trading loss and the company is saying if its first quarter, this is the numbers all right in the books. they've got to revise that too, there was $459 million less profit in first quarter because of that trading loss as well. a big gauge of the size of the trading loss, 4.4 billion is what they are logging in the second quarter and have to take 500 million in the first quarter as well. i'm going to continue to go through these numbers and jm morgan chase ceo jamie dimon is going to meet and that could last some two hours. he has to sit there and explain to angry -- analysts who are going to be reporting as pretty angry shareholders about why these losses happened. >> all right, christine, thanks. before i let you go, i want to

ask you a question, how does this number compare to what people were predicting? at first we heard a number that was significantly lower but i think it was yesterday robert reich guessed something like $5 billion, he's obviously very close. is this more than people thought, less than people thought? >> it's not the worst case scenario but much more than they originally said. when this first het the headlines it was a $2 billion loss and that was a very big, bad failure of risk management. now it's almost $5 billion. so quite frankly, that shows you just how big this thing is. last year the company made $19 billion in the whole year and now it's lost almost $5 billion, $4.4 billion in this quarter because of the loss. that shows you -- we'll continue to go through and i'll give you other headlines as well to keep you up to speed. outrage and shame at penn state this morning after a scathing report by the former director of the fbi. the school's reputation stained

and legacy of its late beloved football coach shattered. investigators concluding joe paterno and top university officials empowered a child predator. the outreach spreading so quickly there are calls to tear down a statue outside beaver stadium. susan candiotti live from philadelphia. can we expect more criminal charges in the wake of this report? >> reporter: hi, christine, that remains to be seen but state investigators are continuing to comb through evidence. some of that evidence coming from louis freeh's report, including the e-mails, some of them we reported to you exclusively of a couple of weeks ago. louis freeh calling the e-mails the most important part of his investigation. the freeh report making it very cheer that children were victim iszed at penn state because officials did nothing to stop jerry sandusky from raping and

molesting so many children over the kourts of at least 15 years. legendary coach joe paterno, part of a culture of secrecy at penn state, trying to protect the image of the school, trying to protect its football program. attorneys for curley and schultz, already charged with lying to a grand jury and failing to report child abuse, their attorneys are saying this freeh report is incomplete and they will vind indicated at trial. there are other investigations going on, including one by the u.s. department of education, as well as the ncaa. it's possible that the football program could face a suspension depending on what the ncaa eventually determines. now the board of trustees for penn state did not escape unscathed. they were criticized for a complete failure of oversight

and board says it promises that this will never happen again. again, they are staging a public meeting later today. christine? >> all right, susan candiotti. we're sitting down with tom kline, the attorney for one of the sex abuse victims. the president claiming the biggest mistake of his first term was putting policy over story telling, he's been criticized for not keeping the nation informed about the direction he's going in and he believes the criticism is valid. >> the mistake of my first term -- couple of years was thinking that this job was just about getting the policy right. and that's important. but the nature of this office is also to tell a story to the

american people that gives them a sense of unity and purpose and optimism, especially during tough times. >> mitt romney quick to jump on the president's remarks suggesting he's out of touch if he believes million of americans have lost their homes and jobs and livelihood because he failed to tell a good story. soledad? >> we're going to talk about that more this morning. thank you for the update. let's get back to the controversy over the olympic states -- united states olympic -- i need more coffee, we're going to talk with nanette lepore, a strong advocate for american manufacturing for years. her own line created in new york city is manufactured here in new york city as well. it's nice to have you with us. we appreciate it. what do you think of this entire controversy. we were talking and i was following you on twitter, hearing what you were saying about it. what makes you so mad? >> well, i'm just for five years

now we've been trying to raise awareness about these factories in new york city, that they exist and factories around the country, that they exist and we can manufacturer here. and the factories need work in order to survive. and we need these factories in order to ensure the future of american fashion. so i mean, this would have been a great opportunity to show off american manufacturing ability and be proud of our country's e resour resources, it's an unfortunate turn of events. >> we were chatting about this on the panel yesterday, i wouldn't say i was outraged but kind of outraged and ran it by our panelists and their response was, everything is made in china, anyway. i'll play a clip of how that went and we'll talk on the other side. oh, we don't have a clip of that. but that's how it went and i was surprised and the sense was hey, listen, 98% of clothing that's manufactured is manufactured overseas anyway, what's the big deal? it's all left the u.s.

>> that's a misconception because there are hundreds of us smaller designers and some larger designers still manufacturing in america. we know that's not true. and also it's like, oh, so let's just let it all go. what kind of attitude is that? because they think that so much of it is made over there, why not let the whole thing go? that's not how it should be. we need to protect and create jobs and to work towards, you know, building back our manufacturing because that's the base of our country and our industry. >> the u.s. olympic committee had a statement that they put out and it said this, unlike most olympic teams around the world, the u.s. olympic team is privately funded and we're grateful for the support of our sponsors. we're proud of our relationship with ralph lauren, an iconic american company. that doesn't answer the conversation swirling around there but they did say, listen, we get this stuff given to us by our sponsors, do you think it

would be better -- would you be willing to donate to the olympic team and make them american clothes, by an american designer, done in american factories? >> absolutely. there would be so many factories that would be thrilled just to get the opportunity because they know it could lead to more work. so not only would designers be willing to work and to participate even if it meant free of charge, but factories and cutting rooms and you know, pattern makers would all love the opportunity. >> harry reid says burn the clothes, is there anything that can be done this fast before the olympic games? >> you would be surprised what you can manufacturer in new york city in two weeks' time, however, i think it's a bit extreme and i don't know if that's the right route. >> i kind of agree with you on that. nannette lepore, thanks for joining us, we appreciate your insight and your clothing which is beautiful. people are really up in arms about this today. congressman steve israel will join us live.

he too is outrage that the uniforms are made in china and taking matters into his own hands. we'll talk about what he's doing. 12-time olympic medal winner dara torres is going to talk to us. ahead on "starting point," digging deeper into the jm morgan chase earnings, whether investors will pay for the billion dollar mistakes. our get real, how much do congressional staffers make? guess what, depends on whether you're a man or woman. guess who makes less? you're watching quts starting point and we're back in just a moment. male spirit present.trong it's the priceline negotiator. >>what? >>sorry. he wants you to know about priceline's new express deals. it's a faster way to get a great hotel deal without bidding.

pick one with a pool, a gym, a great guest rating. >>and save big. >>thanks negotiator. wherever you are. ya, no. he's over here. >>in the refrigerator? the lines, the cost, the hassle. ♪ express yourself [ female announcer ] why not try coffee-mate? with over 25 delicious flavors for a fraction of the cost of the coffee house. add your flavor, with coffee-mate, from nestle. [ female announcer ] the gold standard in anti-aging. roc® retinol. found in roc® retinol correxion deep wrinkle night cream. it's clinically proven to give 10 years back to the look of skin. now for maximum results... the power of roc® retinol is intensified with a serum

to create retinol correxion® max. it's proven to be 4x better at smoothing lines and deep wrinkles than professional treatments. new roc® retinol correxion® max. nothing's better than gold. new roc® retinol correxion® max. you see us, at the start of the day. on the company phone list that's a few names longer. you see us bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy.

lending more so companies and communities can expand, grow stronger and get back to work. everyday you see all of us serving you, around the country, around the corner. us bank. developing story, jp morgan chase releasing its earnings, they lost $4.4 billion related to the risky trade. that trade now valued at $4.4 billion hit, although the company still made money in the quarter. the banks say the internal

review shows it has to review the first report filed and profit was cut by $459 million because of this division where the rogue trade happened. jamie dimon will answer questions about the banks earnings. futures trading higher and china's growth slowed to the lowest level in three years, markets are up on speculation the chinese government will move to boost growth with some sort of stimulus. the u.s. growing less than 2% for perspective. thanks for the update. we'll keep following that this morning. governors across the country are gathering today in williamsburg, virginia, the 104th annual meeting of the national governors association. another key topic will be the health care law's medicaid expansion. democratic governor, martin

o'malley will be there and he joins us this morning. thanks for talking with us. i know jobs is going to be a big topic. >> thank you. >> let's start with jobs, your state has an unemployment number better than many at 6.8%. when you look at states across the nation, seven out of ten of the best recovering states are run by republican, three out of ten run by democrats and it's been a big talking point obviously for the gop. do you think the governors deserve all of the credit for how states do? >> no, but i think they each have a responsibility to move their states forward to great jobs opportunity and make their economies expand. we're all in this together. the states that have been able to come through this recession virtually without any sort of blip are those states that have the greatest amount of minerals, soledad. for the rest of us, we have to make tough decisions in order to create new opportunities and jobs in a fast and changing

economy. maryland was ranked number one in entrepreneurship. we had the changes to make investments in education and infrastructure and innovation to create new jobs and opportunities. you know what, tse are the things that work for our parents and grandparents, we need to restore the balance that allows our country to do the same from coast to coast. >> let's talk about president obama, looking back on his last years in office, talking to cbs news, he said, his mistake had been he put policy ahead of messaging about the policy to the american people. here's what he said. >> the mistake of my first term -- couple of years was thinking that this job was just about getting the policy right. and that's important but you know, the nature of this office

is also to tell a story to the american people that gives them a sense of unity and purpose and optimism, especially during tough times. >> do you think that's ue? would you agree with his assessment that telling the story to give people optimism and hope is the strategy and that's where he missed the boat? >> well, i think the president is a very strong, good and many ways a very humble man he's able to enter into that sort of interinspection, i do think this, there's no greater priority than getting our economy moving. one of the opportunities we now have with the affirmation of the supreme court of the health care, obama care, the affordable care act is to tell the story of why this is so important in order to get our economy moving. i mean, over the last decade businesses saw the -- what they are paying for health care rise

113%. we pay more of our gdp toward health care cost then we do towards taxes. biszs have more money to invest in businesses to create jobs, that makes our economy go. to a large degree, i think all of us failed to explain the importance of the affordable care act in terms of bringing down spiraling health care costs to invest in job creation. that's a pretty accurate observation by the president. >> i think a lot of republican governors like bob mcdonnell of your neighboring state of virginia, who will talk to us later this morning, has said he's on the fence when it comes to medicaid exnsion. if he decides to decline, would there be an impact on your state since you're neighbors? >> i'm glad he's saying now he's on the fence. a lot of republican governors had a knee jerk reaction they weren't doing anything that would help the president get anything done, whether it's on jobs or college affordability or

whether it's on health care. if he's on the fence, that's a good sign. for our part, we wanted to be an early implementer in the affordable care act because that gives our businesses a jump start. rising costs of health care every year, then what they are paying in other expenses, then that will be a competitive disadvantage, i would think for virginia if they are slow to come to this. for our sake, we've made the choices necessary to have the health exchange pass our legislature, to be able to bring down especially uncompensated care and see this is going to be a net positive not only for the state budget for the foreseeable future but a positive for job creation for small businesses and innovation. we wants to be an early implementer i'm glad he's moved from being totally opposed to

just on the fence. >> nice to see you, sir, thanks for joining us. >> thank you, soledad. >> more players from the national governors association meeting will be talking with us as i mentioned. bob mcdonnell, and we'll run those comments from governor o'malley by him. iowa's governor terry branstad will be my guest as well. no surprise i think that women earn less than men, but when you hear how much less female staffers make compared to male staffers, it's going to shock you. our "starting point" team heading in, celeste headily and marc lamont hill and will cain and video killed the radio star by the bugles comes from steve r ronzion. it's viewer appreciation day. you don't like the song?

>> i won the radio. >> doesn't mean it personally. we're back in a moment. [ lane ] your anti-wrinkle cream is gone. but what about your wrinkles. neutrogena® rapid wrinkle repair. it has the fastest retinol formula available. it's clinically proven to visibly reduce wrinkles in just one week. "why wait if you don't have to." rapid wrinkle repair. neutrogena®. recommended most by dermatologists.

it's friday! my friday is a really long friday. our team this morning, marc lamont hill, professor at columbia university. how are you? why are you not smiling when they take your shot. >> how's that? >> better. >> on the radio, hence what you were make talking about, radio star make sense. will cain, a good dear friend of

mine at theblaze.com. >>ow sweet. >> trying to help a man out. i think this is kind of crazy, new survey in the national journal finds a large gap of salary between male and female staffers. one reason is disparity. if you kind of crunch the numbers, it's shocking, on average, a female republican house staffers make $10,000 less and female democratic staff members make about $1500 less than their male co-workers, 84 cents on the dollar. i think that's a stunning number. for the senate, it's actually pretty similar, about 10,000 on the republican side and little higher on the democratic side, about $5,000 difference. >> there it is, republicans are massagists and sexists. >> i think everybody is, is how i read this.

>> i don't know how you can excuse it, they are of lower rank? that's another problem. >> i can explain it. >> it's important point. it's not apples to apples. >> why isn't it apples to apples, don't we have equality in the number of people in high level jobs. >> there are more women liberals than conservative making it much more possible that women would be in congressional offices and democratic offices rising ranks to higher offices. >> that would make no sense when i pull out the senate figures, thank you, mr. cain, good try. it would say there is certainly -- i think what we're pointing out, two problems, you have this wage difference but then you also have clearly not enough women in high levels because if there were, they would balance out those numbers. >> i'm telling you why there's not women in the high levels. women are much more often statistically prone to being liberal than conservative. >> the democratic senate numbers

would be different, wouldn't be a $5 thoir$5,000 difference, wh explaining to you, mr. cain. >> dz going to be a good friday, i'm taking you out, man. >> we're trying to be reasonable. >> every day. >> i know i'm right. >> you're not. but -- >> we're going to keep talking about it in the commercial break. everybody else has to go to commercial. we're going to talk about penn state. did you read that report? >> yes. >> scathing report. and essentially says it's a top school officials including legendary coach joe paterno were responsible for the cover-up of crimes of a child predator. could there be new charges? an attorney of one of the victims will join us next. wall street watching jp morgan chase announcing how big its trading loss really was? we'll crunch those numbers straight ahead. we're back right after this. get our crispiest carrots and our snappiest peas

all freshly steamed in just minutes. steam bags from lean cuisine. be culinary chic. er is different but centurylink is committed to being a different kind of communications company by continuing to help you do more and focus on the things that matter to you.

an accident doesn't have to slow you down. with better car replacement available only with liberty mutual auto insurance, if your car's totaled, we give you the money for a car one model year newer. to learn more, visit us today. responsibility. what's your policy? welcome to hotels.com. summer road trip, huh? as the hotel experts, finding you the perfect place is all we do. this summer, save up to 30%, plus get up to $100 on us. welcome to hotels.com.

welcome back, we're following breaking news, we know how big the famous trading loss, $4.4 billion, looking at the second quarter. still made money, that company, almost $5 billion in the three months. jp morgan chase is doing a phone conversation in new york answering the questions about the bank's earnings. christine romans has more. >> the room will close down at 10:00, so you can see jamie dimon says they are going to

look at the good and bad and ugly, that lost $4.4 billion related to the rogue trade. the company made a lot of money in quarter. in just those three months, made $5 billion. without the loss it would have made more. also, they are restarting the first quarter. that means a public company has to give -- open its books to the sec and investors and they put it in the record books for the first quarter but now they have to go back and redo it. that's a big deal. they don't take it lightly but that's also related to the big trading loss and jp morgan ceo jamie dimon said in the first couple minutes, he said they are doing no more synthetic credit trading, no more fancy derivative stuff, not doing that out of the london office anymore. >> christine, thanks for that. let's get to alina is what i was trying to say. hey there. >> good morning, a landslide

taking out three homes and knocking trees down look toothpicks in less than a minute. emergency officials are meeting today to decide how long to look for anyone w might still be trapped. four people are unaccounted for. one witness found the ground rumble and saw the homes slide down and plunge into a lake and it happened in 45 seconds. the slaughter in syria spiraling out of control. government opposition groups says 287 were killed across the country yesterday, including 220 in the hama province, making thursday the deadliest day in syria since the opposition uprising began 16 months ago. it's already a long, hot summer, farmgers suffering through the worst drought conditions in decades. according to the data center, 61% of the continuous u.s. is experiencing some form of drought. more than 1,000 counties in 26 states have been designated natural disaster areas.

officials say the past 12 months have been the warmest since they began keeping records way back in 1895. wow. let's get a quick check on the weather. alexandra steele in for rob today. >> today is what the doctor ordered. we will see lines of showers and storms, big delays expected at the areas today because of thunderstorms. already 20 minute delays in houston, storms in houston, atlanta, charlotte, vegas, salt lake city, low clouds slowing things down in san francisco. here's the big picture weatherwise. all of the showers coming up from the south. the same front that dropped the 100 degree temperatures. it is still there bringing showers and storms to the southeast. warm in the northeast but in the southwest that monsoonal moisture coming in. we will see rain there as well as pretty steamy temperatures. for tomorrow, you'll notice look at the showers in the southeast. the difference is this front finally moves to the north. what that means is rain now

getting as far north as virginia and washington and even up into pennsylvania for tomorrow. and as we head towards sunday it makes its way farther north, same soggy scenario in the southwest and even into the northwest. alina. >> the rain we need. >> we're going to see it. >> las vegas neighborhood held hostage by loose chimps. police getting a call that two chimps were on a rampage and attacking cars, police say they escaped from a nearby home. they were pets. authorities were forced to shoot and kill one of them and tranquilize the other. that chimp was returned to the owner. these pictures from the owner ace facebook page but authorities are looking into whether the person is even lie sengsed to have a chimp. i think the message is soledad, don't own a chimp. >> unless you're a zoo. i think that's the takeaway. president obama is campaigning in virginia today, it's a key battleground state come

november. the recent poll shows the president has a slight lead over mitt romney at 47% to 42%. and starting today the states also playing host to the national governor's association 104th annual meeting. one man who will be center stage is virginia's governor bob mcdonnell, the chair of the republican governors association. thanks for joining me once again. let me ask you a question -- >> thanks, soledad. >> great to have you. your statement unemployment figures are very good, 5.6% is the last number i've read. president obama, when i look at the polls and we showed them, he's leading in polling in your statement. do you think it's likely the president will take the state of virginia coming the election? >> no. and i say that -- >> i'm looking at the polls while you say that but i'm looking at the polls, they say yes. >> there's only one that matters and it's not today, it's four months from now. and that's much better position than about four months ago. romney was down eight points and

i think more more people examine the failed leadership and impact of the regulatory policies in virginia and compare that with mitt romney's ideas, i think it gets better for romney. i won by 18 points after obama and what i'm hearing on the ground from business people and just the independent voter is this jobless record of 41 months over 8% and crushing national debt, are the things that are driving people towards mitt romney. i think it gets better every month for romney. >> if it's jobs, jobs, jobs and your unemployment number is 5.6% which is a number lots of states would love to have, do you get credit or doesn't the president get credit for that. >> the cnbc poll shows that 12 out of the 15 states with best business climates have republican governors. i would say if it was something president obama was doing, you'd

see that all over the place and you don't. what you see is unemployment over 8.2% almost going on 42 months. this president's policies of regulation, taxation and outsourcing jobs, being hostile to the free enterprise system is not working. in states like mine, on a bipartisan basis, putting policies in place, we've driven the unemployment rate down. i think it's what the governors doing making a lot of different. he's actually hurting us on energy and regulation, making harder for businesses to grow. >> you're holding a press conference later today, a welcome president obama to virginia press conference. >> i am. >> why? i know something is up when you're doing that, clearly. >> that's pretty sneaky you figured that out. always glad to have the commander in chief here. in virginia. but there are some stark contrasts between what he stands for and mitt romney and we're

going to talk about those, particularly on jobs and energy. when i look at what's hurt my state over the last couple of years with this president's policies that have been overburdensome, to a person, the energy industry and we're trying to be the energy capital of the east coast saying these policies, epa policies and anti-business, anti-energy growth and traditional energy sources is hurting our state, i want people to know about it. the entrepreneurs and small business people are also very concerned about the policies that he's got. so we're going to talk about that and i want people to know mitt romney is the best guy for business. >> we were talking a few minutes ago to governor o'malley and i asked him about whether or not -- what your position was on the medicaid expansion. so originally i know you had said you were against it and i think you're moving on that a little bit. has that changed? are you now on the fence? >> no, we haven't said anything. in fact there's some republican

governors already said we're not doing it. medicaid is busting every budget, democrat and republican across the country. 1600% growth in virginia over the last three decades, this is a little bit of a curveball in that opinion to say it's essentially now optional. it's a $2.2 billion entitlement expansion plan. >> what are you going to do? >> i sent a letter to the president with 30 questions telling us, tell us the answers on how this is going to work. you're telling us you're going to pay 90% of it. we're not buying a pig in the poke, it's breaking the budget in virginia. you've run us up $5 trillion in debt during the presidency, how will you pay for it and keep your word? the things you told us in '08 you haven't done how are you going to pay by running us off a cliff. >> governor o'malley says if he don't do the kpangs that will put you a competitive

disadvantage, that his state will be in better shape than you will be. >> well, governor o'malley ought to look at the numbers, businesses and people are fleeing maryland for virginia because he's raising taxes on everything that moves. i don't think i'm not worried about competing with maryland or any other state. we have a lot to offer in virginia. expanding coverage for people at a reasonable cost and expanding scope of practice and other things and driving down the cost of health care is a shared goal. what we don't want to do is do it in this way where it's all about more government programs and doing it in a way that you expand medicaid without reform is irresponsible. president obama said that in 2009. he told his own democratic caucus that and that's what he expects us to do. it's a broken system and putting more dollars into it in a way that doesn't create some responsibility and kpetiveness and transparency, isn't going to work. the bottom line is, i've seen a

letter to the president on behalf of 29 governors, we're going to see how it gives it in terms of how it's going to work then we can make a responsible decision. >> nice to see you, sir, thanks for talking to us, appreciate it. >> okay, soledad, have a good day. >> we'll talk to terry branstad, he says he's not going to be expanding medicaid in his state. we'll talk to him about that. the hall of shame, the scathing report that blames top penn state officials including legendary football coach joe paterno for hiding child sex abuse. tom kline is an attorney for victim number five and will be weighing in next. [ male announcer ] this is the at&t network.

a living, breathing intelligence helping business, do more business. in here, opportunities are created and protected. gonna need more wool! demand is instantly recognized and securely acted on across the company. around the world. turning a new trend, into a global phenomenon. it's the at&t network -- securing a world of new opportunities. ♪

there's fallout from the scathing report on penn state's handling of the sex abuse scandal. that louis freeh report is just, wow. anybody who has a chance to read the original of it, it's worth reading and raises questions about the university's liability and certainly the possibility of more charges against the officials involved, only two of the four named are currently

facing criminal charged, tim curley and gary schultz, graham spanier and joe paterno are accused of cover-up. paterno obviously died in january. and sally jenkins with the "washington post" was the last person to interview joe paterno and said he is a liar in response to those findings. now the school's football program could also be facing consequences. let's get right to tom kline, the attorney for victim number five in the case against jerry sandusky. it's nice tsee you, thank you for being with us. now it's clear in this louis freeh report that all of these adults, including some who i named and many more, knew back in 1998 that something was very, very wrong with what was going on with jerry sandusky and did nothing. three yes later your client would also be a victim. what did you think of this louis freeh report? >> well, mr. freeh appears to be

making a subtle recommendations to the law enforcement authorities. he uses words like cover-up and he says that the conduct was and it appears to me that he is sending a signal that more should probably be done to look at this. the 1998 information is truly revealing. the 2001 incident now has to be viewed in the context of 1998 knowledge. knowledge where there's a note. i scoured this of course yesterday. and there's a note that literally says, coach is anxious to know. so mr. paterno was right in the middle of this. and in 2001, these men collectively, the four of them, did clearly the wrong thing. in 1998, ok, they did the wrong thing. but in 2001, in the face of the

1998 investigation that they already had and knowledge that they knew, this was a downright wrong and of course mr. freeh called them on it yesterday in scathing terms. i represent a young man -- >> tell me about that. i was going to ask you. tell me about this young man who you represent. has he been following this closely? what does he think of this report? obviously, he is the 1991 case, meaning three years later -- sorry, forgive me, 2001 case. three years after the 1999 case. if someone had done something then, maybe he would not have been a victim. have you talked to him about that? what has he said? >> sure. this has been a difficult ordeal. this investigation led to his doorstep with a knock on the door by the state police, literally. he then found himself in a grand jury room. he then found himself in the middle of a very public spectacle, a criminal trial. he is very interested, of

course, in everything and the outcome here. and now he sees, and of course i his lawyer see such a colossal, monumental failure at the very top of the university. my client is dramatic evidence. he was assaulted in august of 2001. my word. in february of 2001, we now know that the president of the university, the athletic director, vice president, and, yes, a coach of the team, all knew about mr. sandusky not in 2001. this wasn't a wake-up call. this was a re-wake-up call for them. not to tell authorities even in 2001. the word scandal comes to mind for good reason. >> tom klein is the attorney for sandusky vtim number five. thank you for being with us, sir. we appreciate it. >> nice to be here. it's interesting in our conversation yesterday with ken

feinberg, we talked about how much is it worth, the amount of money that penn state is going to have to pay. >> the amount of money. >> yeah. what is someone's childhood worth? >> it's immeasurable. >> and that's just the people who we know of. >> i'm sure they'll offer compensation in exchange for agreeing not to further sue. >> and what does the number come down to at the end of the day? it's going to be huge. toobin was talking about wheelbarrows full of money. >> absolutely. still ahead this morning on "starting point," growing outrage over the u.s. olympic uniforms made in china. one lawmaker, harry reid, saying we ought to burn them. steve israel will weigh in with us next. how do the athletes feel about it? is it a big deal? we'll talk with 12-time olympic medallist dara torres. she has now retired. plus, it's a sport that made harry potter famous. gryffindor, slitherin coming together to make an olympic pitch of their own. do you believe this? >> no. >> i agree.

you're watching "starting point." it's just silly. usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection, and because usaa's commitment to serve the military, veterans and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. to your kids' wet skin. neutrogena® wet skin kids. ordinary sunblock drips and whitens. neutrogena® wet skin cuts through water. forms a broad spectrum barrier for full strength sun protection. wet skin. neutrogena®. delivering mail, medicine and packages. yet the house is considering a bill to close thousands of offices, slash service and layoff over 100,000 workers. the postal service is recording financial losses, but not for reasons you might think. the problem ? a burden no other agency or company bears.

a 2006 law that drains $5 billion a year from post office revenue while the postal service is forced to overpay billions more into federal accounts. house bill 2309 is not the answer. the lines, the cost, the hassle. ♪ express yourself [ female announcer ] why not try coffee-mate? with over 25 delicious fvors for a fraction of the cost of the coffee house. add your flavor, with coffee-mate, from nestle.

♪ i've got to be cool ♪ relax ♪ get hip ♪ get on my track ♪ take a back seat

♪ hitchhike >> queen. "crazy little thing." another viewer. i can't read it. >> wayne's world. >> 1988. must be via twitter. somewhere, harry potter creator jk rowling is smiling. quidditch is being played for real, kind of sort of, around the world. just weeks before the london olympics, some of the teams are putting on an exhibition of a sport that they hope one day could make it into the games but never will. take a look. >> no. >> brooms up! >> moving up. >> that's a goal! >> quidditch was a fictitious sport in the harry potter books. originally it's played on brooms flying high through the air. >> i love it. it's different from other sports. >> i feel more comfortable running with a broom now than without one. >> it involves a lot of magic. the real version is often called muggle quidditch. in the harry potter books, a

muggle is a nonmagical person. this is a good time and a good place to show the world this new sport. >> nice shot. >> i think a lot of people discount quidditch because they think it's just a bunch of nerds on broom sticks but it's really an extremely athletic sport. the olympics are striving to create an atmosphere of, you know, athletes and competition, there's no better sport than quidditch. >> you have four balls in play. >> the last player on each team is the seeker. they have to chase the snitch. in real life, it's a very swift runner who has a velcro tail attached to the back of his shorts. the seeker has to pull it out to get an extra 30 points for their team and the game. >> i think it's brilliant. it's really funny to watch. i didn't realize it's so rough and tough. it's great. >> i think it's a real sport.

i'm going to join when i go to university, yeah. >> you do not have to be a harry potter fan to enjoy quidditch. a lot of our players have never even read the books. >> i just liked it. >> in gold tights. that sport will never be an olympic sport. he said i feel more comfortable running with a broom than without. >> well, good for him. >> what? that's a lie. >> i'd like to point out that harry potter not fm england. he is not real. he does not exist. >> people just like to run around with brooms between our legs. yes. >> you have too much free time today. still ahead this morning on "starting point," we are following that breaking news from jp morgan chase revealing just how big that trading loss really was. we'll tell you what that number means for you and for your 401(k) coming up next. [ mrs. hutchison ] friday night has always been all fun and games

here at the hutchison household. but one dark stormy evening... there were two things i could tell: she needed a good meal and a good family. so we gave her what our other cats love, purina cat chow complete. it's the best because it has something for all of our cats! and after a couple of weeks she was healthy, happy, and definitely part of the family. we're so lucky that lucy picked us. [ female announcer ] purina cat chow complete. always there for you. [ female announcer ] purina cat chow complete. would you mind if to be i go ahead of you?omer. instead we had someone go ahead of him and win fifty thousand dollars. congratulations you are our one millionth customer. people don't like to miss out on money that should have been theirs. that's why at ally we have the raise your rate 2-year cd. you can get a one-time rate increase if our two-year rate goes up. if your bank makes you miss out, you need an ally. ally bank. no nonsense. just people sense.

welcome back. our "starting point" this morning, we are talking billions of dollars. jpmorgan chase releases its second quarter earnings after that big trading blunder. we'll tell you what that means for your money. also, seeing red. listen. >> put them in a big pile and burn them and start all over again. >> yeah. harry reid is not kidding. lawmakers fuming that team usa will be decked out in uniforms made in china. states in crisis. the nation's governors getting together to talk about critical issues like health care and jobs. will anything get done at their meeting? we'll look at that.

and one man's trash is another man's instrument. a unique brand of rock. we'll have congressman steve israel, democrat from new york. republican governor terry branstad from iowa. u.s. olympian and author dara torres will join us. and the garbage-men band. all ahead. it's friday the 13th. this is why i'm fumbling every word. ♪ >> that's a good choice. >> that is. keep playing that. >> whose choice is that? oh, it's another viewer. >> nice. >> it's viewer request friday. >> nice. >> this is nas. we had him on the other day as a guest. "count your blessings." thank you. professor and music czar approves. >> i've been appointed. >> celeste headley also is here.

do youant to self appoint while we're here? think about it. don't answer right away. and will cain, columnist for theblaze.com. he is also self appointed to all kinds of things. >> he is the beard czar. [ laughter ] >> you're getting just hammered about that beard. that scraggly little beard you've got. >> keep your mean comments about will's beard coming on twitter. >> we don't like mean comments. >> just the beard. >> you know what i think about the beard. >> i like the beard. >> you lie. on to the news of the day, christine romans. >> yeah, she does have the news. >> jpmorgan chase out with its earnings. we now know the rogue trading loss at that company amounts to $5.8 billion so far this year. losses in the first quarter and the second quarter. that is far higher than the $2 billion ceo jamie dimon

estimated back in may. even before that, remember, he said it was a tempest in a tea pot, soledad. it wasn't. it's now $5.8 billion. that's where that loss is, soledad. >> all right, christine. thank you for that. i appreciate it. let's talk about the growing outrage over the u.s. olympic team's uniforms when they walk into london's olympic stadium in two weeks. they'll be wearing a ralph lauren red, white, and blue ensemble made entirely in china. lawmakers are criticizing the outfit. harry reid says the uniforms should be destroyed. listen. >> i am so upset that i think the olympic committee should be ashamed of themselves. i think they should be embarrassed. i think they should take all the uniforms, put them in a big pile and burn them, and start all over again. >> another angry lawmaker is congressman steve israel. he and fellow new york senator kristin gilibrand sent a letter to the chairman of the ioc saying this. as american fans cheer for our olympians, we should also be

dheering for the american manufacturers and laborers reflected in the red, white, and blue on their uniforms. we look forward to seeing all of our uniforms saying made in america at the 2014 winter olympics in russia. congressman steve israel is our guest this morning. from this letter, it sounds like you're already looking toward 2014. do you think it's not possible to make any changes? harry reid suggesting burning the whole thing. >> well, the letter is our minimal request. we actually believe this is the country that landed a man on the moon. we should be able to manufacture clothing for our olympic athletes in london next month. you know, you can go to rochester. you can go to buffalo. you can go to ohio. there are companies and people waiting to make those uniforms. and we can have the job done and have those uniforms shipped in time for the olympics in august. >> you know, when you look at the actual numbers, though, i think by some math, 98% of clothing manufacturing is done overseas. why are you so mad about it when clearly ralph lauren, who is the

designer, who has volunteered and is a sponsor for this, clearly makes his clothes overseas in china? what's the big deal, i think some would say. >> well, this is a big deal. made in america is not just a label. it is an economic solution. this is a $1 billion divestment from manufacturing jobs in the united states to manufacturing jobs in china. and i think it's fundamentally wrong. we've got 600,000 vacant manufacturing positions in the united states right now. outsourcing this job to china just doesn't make sense, soledad. these are our olympic athletes. look, the olympic committee and all americans appreciate the hard work, the dedication, and the skill of our athletes. they are inspiring. but i think the olympic committee should appreciate the hard work, the dedication, and the skill of american manufacturers, which are not only inspiring, but in a demand economy need that contract. need the ability to make those products and enable our athletes to march into the olympic stadium in those products.

>> congressman, this is will cain. listen, this seems to be -- there looks to be bipartisan outrage on this issue. both republicans and democrats seem to think there's something worthy of outrage here. but as soledad points out, we manufacture so many clothes overseas. it seems to me you're asking the olympic committee and ralph lauren designing the clothes for them to do something economically irrational out of patriotism. in the end, i guess i see it as -- is there a little bit of political demagoguery going on here? burn the clothes? >> we're not asking them to do this simply out of american patriotism, although this is a matter of pride. we are asking them do this as a matter of economic strategy. there's this kind of myth out there that america has lost its ability to manufacture clothing, and therefore that's why 98% of clothing is manufactured offshore. it is a myth. we have 14 million people unemployed. and we are taking a billion dollars away from those people, and transferring that to china. it is just bad economics. it's not only injurious to our

pride, it's injurious to our economy. >> i talked to the designer nannette la poor a little earlier and here is what she said. >> there would be so many factories that would be thrilled just to get the opportunity because they know it would lead to more work. so not only would designers be willing to work and to participate even if it meant free of charge, but factories and cutting rooms and, you know, pattern makers, they would all love the opportunity. >> she basically said, listen, you'd be surprised how quickly you can turn stuff around, especially in a new york manufacturing floor, clothing floor. is this something that you're going to continue to try to push to see if you actually could clothe the olympic athletes in something other than ralph lauren made in china? >> well, i tell you, anytime you can get john boehner and nancy pelosi to agree on something, do it. there is bipartisan support for pushing the olympic committee to reverse this sdhigz. one of my favorite movies in the world, "field of dreams," if you

build it they will come. we can make sure when our olympics go to the researches they will go to the olympics not just representing america's pride, but wearing american products. >> nice to see you, sir. thank you for being with us. we'll talk to 12-time olympic medallist dara torres. she'll weigh in on the controversy and talk about her career ending. she is now retired officially. >> i was rooting for her. but first, christine romans. got your name right this time, i'm glad to say. >> good morning. a 14-year cover-up. shock, sadness, rage, and happy valley this morning after a report by former fbi director louis freeh said joe paterno and officials at penn state failed jerry sandusky's victims and hid critical facts. coming up, we ask the lawyer for victim number five what the report means. >> my client is dramatic evidence. he was assaulted in august of 2001. my word. in february of 2001, we now know

that the president of the university, the athletic director, vice president, and, yes, a coach of the team, all knew about mr. sandusky. not in 2001. this wasn't a wake-up call. this was a re-wake-up call for them. >> many now calling for the school to take down paterno's statue outside of the stadium. the president's claim that the biggest mistake of his first term putting policy over story telling. he believes that criticism is valid. >> the mistake of my first couple of years was thinking that this job was just about getting the policy right. and that's important. but, you know, the nature of

this office is also to tell a story to the american people that gives them a sense of unity and purpose and optimism, especially during tough times. >> mitt romney quick to jump on the president's remarks, suggesting he is out of touch if he believes that millions of americans have lost their homes, their jobs, and their live heho lyhood because he failed to tell a good story. investigators now saying they found no explosives on a delta plane. that plane returned to kennedy airport in new york because of a security scare about an hour into the flight. it was on its way to spain. passengers were evacuated while the nypd bomb squad searched the plane with dogs. authorities say it was turned around after a passenger found drinking straws with wiring stuffed inside them in the bathroom. soledad? >> that's scary. all right, christine. thank you. still ahead on "starting

point," the line drawn at the meeting of the nations governors this weekend. how it could affect health care for the uninsured. we'll talk to terry branstad straight ahead. and today's tough call, two chimps on a rampage. one ends up shot and killed. the other gets to go own. do you think the owner should get her chimpanzee back? and why does she have the chimpanzee anyway? and we leave you with this viewer request. from monique evans from facebook. thank you, monique. she knows a little gospel. she knew we'd get that on. you can see the entire play list every morning on our website, cnn.com/startingpoint. [ female announcer ] the coffee house. the lines, the cost, the hassle. ♪ express yourself [ female announcer ] why not try coffee-mate?

with over 25 delicious flavors for a fraction of the cost of the coffee house. add your flavor, with coffee-mate, from nestle. ♪ ♪ [ male announcer ] you've been years in the making. and there are many years ahead.

join the millions of members who've chosen an aarp medicare supplement insurance plan insured by unitedhealthcare insurance company. go long.

♪ smile, smile >> i love kirk franklin. is is from @rfrey816. thank you. he knows i like that one too. the nations governors begin their 104th annual meeting this morning. they'll focus on several important issues, including medicaid expansion. so far the governors have been split along party lines. seven republicans say they won't expand medicare in their state. florida, iowa, kansas, louisiana, nebraska, and wisconsin. terry branstad is the governor from iowa. thank you for talking with us, sir. we appreciate it. your state's unemployment is low, 5.1%, i believe. republicans have been very public in touting that seven out of 10 states with the best job

rates are run by republicans. do you think that the governors get the credit for that or shouldn't president obama get the credit for that? >> well, all you have to do is look at the state of illinois right next door. they are a basket case, and they raised taxes. they have the biggest public debt of any state. they have the most unfunded liabilities on their pension system and they are $4 billion behind in paying their bills on time. surrounded by states like indiana, michigan, wisconsin, and iowa,ll getting our financial house in order, reducing the tax and regulatory burden. there's a big contrast. you can look at california as well. $17 billion in debt. they are following the obama plan. it doesn't work. you can't borrow your way to prosperity. the federal government has a $16 trillion national debt. 40% of the money they are spending is borrowed money. there is no way this can be sustained. we need a change. >> and some people say the change is not to go into austerity plans. the change is to actually invest

money, get job creation going, and sort of reboot the economy. why is that not a good change? >> well, that's what we republican governors have done. we've done both. we've reduced the size of government, and we've also invested in things that are going to create jobs. like stem. science technology engineering and math. you need to do both. but you need to unleash the private sector by reducing the tax burden. this federal government has the highest corporate tax in the world. we penalize people who create jobs. and the president goes all over the country threatening the very people that we need to create jobs with more taxes and regulations. we've seen what the epa has done to the coal industry. we see what the labor department tried to do to farm labor. you know, we can't afford all these regulatory burdens. and that's one of the reasons why a lot of private sector money is on the sidelines instead of investing and creating jobs and growing the american economy. but you see in states where you have governors that are dng

the right things, their unemployment is going down. they are revitalizing the economy. and we need a president that's going to be in tune with us and working with us instead of working against us. >> yesterday, when i was talking to steny hoyer, he said there were 30-plus jobs bills in front of congress that can't move forward because of republicans. >> well, it's just the opposite. the use has passed all kinds of jobs bills, and the senate refuses to even take them up. the senate hasn't even passed a budget the last three years. and every year, they are racking up $1 trillion plus national debt. you know, this has got to stop. we don't want to be the next greece. we want to do like canada has done. canada has reduced their taxes. when i was governor before, we got all kinds of companies to move from canada to iowa. but now the canadian dollar is as strong as the american dollar. their financial institutions are healthier, and their taxes are lower. just look to the north. they have done things right.

we are doing things wrong. we need new leadership. >> terry branstad, nice to see you, sir. thank you for your time. we appreciate it. >> you bet. thank you. >> you know, i'd love to ask you guys a quick question, and that is this. it was once called little laboratories of democracy. when you hear that they seven of the top 10 states are run by republicans, what is the reason for that? >> let me ask you something. how can we criticize the presidential administration for high unemployment but then go to the states that have low unemployment and say that the governors are responsible for that and not the president? >> you can't compare apples to apples. >> well, if he doesn't get the credit for low unemployment in iowa, he doesn't get the blame for high unemployment in illinois. >> what's the common denominator? what's the difference? what's going right in iowa and texas? >> we heard from governor o'malley. he believes that states that

have more minerals correlates to how well they do. some states do well because historically they have more minerals, et cetera. and by the way, four years ago, they may have had a different governor. you'd have to do an entire assessment of that. i think it's an easy thing to say, and a little bit -- >> it's not complex. >> not complex, will. still ahead, we'll talk about animals attacks. two chimpanzees on the loose in vegas, went on a rampage. one was shot and killed. but the owner is expected to get the other one back today. it's today's "tough call." we'll talk about that. and don't forget you can watch us on your mobile phone while you're at work. don't do any work. just watch us on your mobile phone while you're at work. go to cnn.com/tv. we're back in a moment. ♪ i want to grow ♪ i want to try ♪ i can almost touch the sky [ male announcer ] even the planet has an olympic dream. dow is proud to support that dream

by helping provide greener, more sustainable solutions from the olympic village to the stadium. solutionism. the new optimism.™ ♪ this dream in here, every powerful collaboration is backed by an equally powerful and secure cloud. that cloud is in the network, so it can deliver all the power of the network itself. bringing people together to develop the best ideas -- and providing the apps and computing power to make new ideas real. it's the cloud from at&t. with new ways to work together, business works better. ♪

i'm barack obama, and i approved pioneeinbthis message.e.ss jobs with new ways to work together, business works better. according to ford, the works fuel saver package could terally pay for itself. jim twitchel is this true? yes it's true. how is this possible? proper tire inflation, by using proper grades of oil, your car runs more efficiently, saves gas. you could be doing this right now? yes i could, mike. i'm slowing you down? yes you are. my bad. the works fuel saver package. just $29.95 or less after rebate. only at your ford dealer. so, to sum up, you take care of that, you take care of these, you save a bunch of this. that works.

dle breaking news now. jpmorgan executives say the traders responsible for the $5.8 billion trading loss no longer work at that bank, and they could lose up to two years worth of their past pay in a punishment known as clawbacks. u.s. futures trading higher this year. china's growth down for the first time in three years. and there is speculation that the chinese government will move to some kind of stimulus. mortgage rates fell to historic lows once again this week. freddie mac says the average rate on a 30-year loan fell to 3.56%. that's the lowest since long-term mortgages began trading in the 1950s. so buy a house but don't fly. the price of airline tickets has risen 13% compared to a year

ago. airlines have been cutting flights and raising fares as a reaction to oil prices that skyrocketed. >> should i buy a house or should i fly? if only it were that simple. talk about your apples and oranges. >> and try to have some money left over. >> christine, thank you. today's "tough call," escaped chimpanzee back in its las vegas -- you're already deciding? >> there's nothing tough about this call. >> ok. so the two chimps, for people who don't know, escaped from their pen and went on a rampage, attacked cars. they were very worried because people came out to see the commotion. a lot of kids there. they had to shoot and kill one. the other was tranquilized and turned back over to the owner, who apparently had the appropriate permits. i don't know. >> there shouldn't be an appropriate permit. in this particular case, this poor chimp, who was probably terrified, many witnesses said they looked scared, and the reason that the female was only tranquilized is because she was not aggressivement but the chimp paid for this.

the chimp paid for the irresponsibility of owning a wild animal in a residential area. why is that legal? >> why are people so obsessed? what are you laughing at? why are people so obsessed with owning chimps? >> they watched "every which way but loose" and think they have clyde. >> you're showing your age. >> i'm not familiar with that reference, sir. but it's always weird people who then want to personalize their relationship with the chimp beyond pet owner. the woman in connecticut was like dating a chimp before. >> you can't date a chimp. >> not literally, but it was in human clothes. she was very comfortable with them. and then when chimps attacked, everyone is surprised. >> how about the guy who had the lion or tiger in his manhattan apartment? >> there should be no permit for that. >> i'm going to agree. not a tough call. >> leave them in the zoo. >> but the owner got the chimpanzee back. >> or in the wild. >> if not to add your comments to any of our stories, send us a quick video, roughly 20 seconds. and when i say 20 seconds, i

mean 20 seconds. don't go long, will cain. if you want to point out anything about the show, we'll include it in our final "end point." send it to cnn.com/startingpoint. >> there's a concerted effort to silence me today. >> i have been picking on you today, and i want to sincerely apologi apologize. >> there was nothing sincere about that apology. >> he sincerely accepts your apology. >> it's just the beard, the quidditch. it has gone off the rails today. still ahead on "starting point," a stunning crash. this is amazing. watch this car. >> oh, my. >> oh, my gosh. is the driver ok? >> caught on surveillance. the car goes airborne. the driver did survive. but how? we'll talk about that straight ahead. plus, 12-time olympic medallist dara tor ses retiring from swimming after she just missed out on her sixth olympic games.

she'll join us live to talk about her career. and let's talk about this manufacturing of the olympic clothi clothing story. this is "lollipop boy." you're watching "starting point." we're back in a moment. >> i like it. >> really? >> yeah. yep. the longer you stay with us, the more you save. and when you switch from another company to us, we even reward you for the time you spent there. genius. yeah, genius. you guys must have your own loyalty program, right? well, we have something. show her, tom. huh? you should see november! oh, yeah? giving you more. now that's progressive.

call or click today.

♪ >> welcome back to "starting point." just a few moments, this band, the garbage-men band, will be playing for us. they make their musical instruments out of recycled material. this song is called "green onions." they'll play for us straight ahead. nice job, guys. look forward to chatting with you in just a little bit.

maybe that should be our theme song. can i have that? all right. we'll talk about that later. lawmakers are criticizing the u.s. olympic committee and ralph lauren as well over u.s. -- team usa's opening ceremonies uniforms. they were all made in china. olympic swimmer dara torres is one of the many athletes who have worn ralph lauren's outfits before. she strutted in wearing his uniforms at the beijing olympics in 2008. 45 years old, one of the fiercest competitors in the sport. setting three olympic world records. her domination in the sport might be over as she recently announced her retirement as she came in fourth at the 2012 olympic trials. thank you for talking with us. it was so close. you were so, so close. we were all rooting for you. you and i are the same age. i was really rooting for you. let's talk for a minute about the team uniforms and then we'll get to your career. do you think it matters? you've worn ralph lauren before.

there's a big hoopla over whether the uniforms should be made in china. do you think it's a big deal or not? >> you know, we all want to see the global economy do well. but here in the u.s., the economy is not too good either. so, you know, wearing the u.s. uniform, going out there and representing the united states, it would be nice it was actually made in the united states. >> nick simmons, who competes in the 100 meters and is in london, he sent a tweet saying that our ralph lauren outfits for the olympic opening ceremonies were made in china. so, uh, thanks, china. #patriotism. do you think that athletes should weigh in or should they be focused on what they are trying to do? >> sometimes a distraction is ok. you know, i think athletes are fine to voice their opinions on what they feel. they are the ones who are going to be using and wearing the uniforms out there. and, look, ralph lauren did a great job of creating them. they look fabulous. i have seen them already. but it would have been nice if they were made in the usa. >> i have to ask you about what hope solo has been saying about the olympic village.

do you hear these comments? oh, my gosh, wow. she says this. >> i know nothing about that stuff. >> hmm. you're denying it before i even read her comment. here is her comment. from "the daily news." athletes are extremists. when they are train, it's laser focus. when you go out for a drink, it's 20 drinks. with a once in a lifetime experience, you want to build memories, whether it's sexual, partying, or on the field. she says literally people were coupling and having sex everywhere. is that true? even in the olympic village? >> isn't that like what they say, what happens in the village stays in the village? >> i'll take that as a yes. we can move to the next question. it must be kind of true. you could not be -- >> well, sometimes it's tough because the swimming events happen at the beginning. and everyone is pretty much laser focused. and getting ready for the events. and as a swim team and the teams i have been on, we're really, really set on what we're doing

and our goals. but once the swimming is over, yeah, the athletes tend to go out, and we have our curfews we have to abide by. we go out and have fun and make sure we are quiet enough for the other athletes who still have to compete. but it's not to say that little things don't happen here and there. you're in a village with the hottest athletes in the world and the most competitive. and they are top athletes in their sports. so some things are bound to happen here and there. >> so that's a yes. ok. wow. >> i'm just saying it may happen. >> it was a long yes, but it was a yes. let's talk about your career. you're retiring. you're 45 years old. and i have to tell you, to watch you get back in the pool, it was three weeks after you had had your daughter. and you got out there and you won. there were, you know, moms everywhere who were just cheering for you. and just for the fact that you accomplished that. how does it feel to be officially retiring now? >> you know, first of all, i appreciate all the support. you know, the fans have been wonderful. my family, friends, everyone's been great.

i thought i had a pretty decent shot of making the team. it wasn't as 100% as it was in 2008. so i knew i had my work cut out for me. i had lots of obstacles. i had major knee reconstructive surgery. my coach passed away a little over a year ago. so there were a lot of ups and downs. but i went out there and gave it everything i had. and the great thing, even though i didn't make it, i know that i left no stones unturned. there is nothing else i could have done. i gave it my best shot. and i think what people don't understand is the people i did at these olympic trials was faster than the olympic trials in '88, '92, and 2000. so it wasn't that bad. >> so why retire? it sounds like you're 45 and you're faster. maybe you missed it by .9 of a second. but you certainly -- if you're faster, and you're 45, maybe that doesn't make sense to retire. >> well, i'm also on the brink of menopause. so, you know, i -- >> girl, call me. >> you know, yeah. exactly.

so not quite there yet. but my recovery isn't as good as it used to be. and it really took everything i had just to swim this event three times. and to miss it by .09, it was tough. but it's really time for me to move on. and let the young kids, you know, have their glory. >> well, we are so, so proud of you. dara torres is a former u.s. olympian. now retired. and also the author of a book "gold medal fitness" a revolutionary five-week program which you're guaranteed to have her body after five weeks. it's amazing. >> wait, wait. that's not what i said. >> it's what i said. >> you have to remember i do it for a living. >> you didn't say it. it's what i'm saying for you. dara, thanks for talking with us. >> thanks, soledad. >> you bet. >> you're getting here in all kinds of trouble today. >> i am. now christine has a look at our headlines. we now know that the rogue trading los at jpmorgan chase amounts to $5.8 billion so far this year, far higher than the $2 billion ceo jamie dimon

estimated in may. jpmorgan executives say the aders responsible for the loss no longer work there and could use up to two years of their pay. important to note, jpmorgan chase still made $5 billion in profit for the second quarter. george zimmerman may have a little hero complex, but he is not a racist. that's what a florida homicide investigator told federal agents after the shooting death of trayvon martin. evidence released yesterday says that the investigator says that zimmerman shot martin because of his attire and previous burglaries in the community and not because of his skin color. scientists at the university of texas have taken a unique approach to studying autism, using discarded baby teeth to look for clues to the mysterious disorder. the teeth are ground up and made into a liquid and gas for a process that can reveal pesticides and medicines the child was exposed to in the womb and as they grew.

blowing through the light and going airborne. a spectacular crash caught on red light cam at an intersection in new jersey. from the front and the rear, a car speeding through a red light is clipped by a cab and sent spinning through the air. according to a blog, the 29-year-old driver sustained minor injuries and was arrested for dwi but no one else was hurt. mercifully, no one else was hurt. wow. >> i have to tell you, wow, wow. i can watch that forever. christine, thank you. still ahead this morning on "starting point," vp chatter. a former cabinet member getting tons of buzz this morning. but is she interested in being mitt romney's running mate? we'll talk about that. and they recycle and they rock out. the garbage men band is going to jam for us on instruments they literally made out of trash. you're watching "starting point." back in a moment. er is different

but centurylink is committed to being a different kind of communications company by continuing to help you do more and focus on the things that matter to you.

welcome back to "starting point." we've got a live look at new powerful flooding from heavy rains. taking a look at some of these

pictures right now. we have taped eaaerials this morning from the flooding in harris county, texas. we'll tell you about all of that when we come back. iowa senator chuck grassry wants government safety officials to look at sudden acceleration in toyota vehicles. he says whistle blowers have come forward saying that the agency's investigation may have been flawed. toyotas have had nearly 10,000 cases of suddenacceleration. bad things happen in threes? well, today is the third friday the 13th in 2012, the most that can occur in a single calendar year. three in one year. and those three fridays, january 13, april 13, and july 13 are 13 weeks apart. >> oh, my gosh. >> let's go home right now. see you later. >> what does it all mean? all right. thank you, christine. a new story from the drudge report says that condoleezza rice is a top choice for mitt romney's running mate, creating

lots of political chatter. but my guess is she's not interested. i interviewed here just a few weeks ago, and when i asked her that very question, was she still interested in being in politics and maybe the vp, she could not have said no faster. and we always ask elected officials who come through that. but i would say her no was more solid and definitive than almost every other no we've gotten. she didn't do the, well, you know, i believe in serving my country. if i'm asked, i would. she said something very funny too. she said the difference between being the secretary of state and not being secretary of state, she said, is when you read the paper you're like, huh, this is interesting. [ laughter ] >> she was hilarious. >> yeah. >> it would be a terrible pick for mitt romney. >> well, it's not confirmed. this is just guessing. >> it's just a rumor at this point. but remember, she is pro choice, is she not? >> she is. >> and mitt romney has said he will not choose --

>> the last thing he needs is more liberalism. >> did you just call mitt romney a liberal? >> yes, we noticed that. >> only because it irritates conservatives. >> because it irritates will. >> well, by conservatives, i mean will. >> is this pick on will day? >> that's every day for me. >> so you don't think this rumor would be true? >> no. >> will? >> i think she's fascinating and intelligent. i think it's not true. i think that she is pro choice is an absolute deal killer. >> i think mitt romney needs a white man from the south that's ultra conservative. anything else would sink him. >> i think we have seen a concerted effort by the obama campaign over the last month to really define mitt romney in a certain way. but i think his advantage will be if he can pull it off not being defined, by being bland. if he can put a vp choice that doubles down on that, i think bland is the thing to be. >> old white conservative man. >> rob portman is not old. >> not portman. but i'd go older and more conservative. >> i like condi. it would be great if it were

true. >> condoleezza rice is very funny. she has a great sense of humor. >> she's smart. plays the piano beautifully. >> people all call her condi. people don't often call her dr. rice. and i refer to her as condi, and she said she loves it, it's ok. >> she is an awesome person. >> she really is. still ahead this morning on "starting point," we'll introduce you to a new band called the garbage-man band. five high schoolers, with instruments they literally made out of stuff they pulled from the trash. that's still ahead.

>> many children drop out of school because they don't have school uniforms and textbooks. i realized that the only way that kliptown could change is through education. i'm helping to educate the children so that they can change their town together. >> yes. >> we help the children by paying for their school books, school uniforms. our main focus is our tutoring program that we run four days a week. as young people are born and raised here, we know the challenges of this community. we also do a number of activities. we've got to come together for fun while we also come together for academics. >> this program gave me a chance to go to university. they paid for my fees. that's why i come back and help out here. a little can go a long way.

>> math and science and english. >> i did not go to university. but when you're able to help them, i feel excited. >> i am going to be an accountant. >> i'm going to be a lawyer. >> and i am going to be a nurse. >> yes. >> the work that you're doing here is bringing change. >> announcer: cnn heroes is brought to you by the johnson & johnson campaign for nursing's future. nominate a special person at cnnheroes.com for the chance to give your hero the recognition they deserve. [ both ] ♪ emma, emma bo-bemma ♪ banana-fana-fo-femma ♪ fee-fi-fo-femma ♪ em-ma very good sweety, how do you feel? good. yeah? you did a really good job, okay? [ female announcer ] to nurses everywhere,

thank you, from johnson & johnson.

♪ >> this band literally is a group of high school students who started their own band made from recycled household items. they made a guitar from a cereal box, a yardstick neck, toothpick frets. the drum is a trash can lid. traditional percussion instruments using leftover glass bottles. here is the band. guys, i appreciate you being with us. jack berry. >> that's me. >> hey, jack.

harrison. right there. ali gray. >> that is me. >> austin siegel. and did i get everybody? nice to have you guys with us. we certainly appreciate it. so how did you get the idea of starting a band but using all recycled materials? when i first heard this, i thought they are not going to be very good, but you guys are really, really good. >> it was a couple of years ago actually. jack made a guitar out of a cereal box because he had nothing else lying around his house. so he automatically defaulted to that for some reason. so he brought it to school, and he showed it to everyone in the eighth grade, i think. he showed to everybody, and everybody loved it. so one day when he was at my house, i suggested we make an entire band made out of similar materials. >> walk me through jack's guitar. >> the box is a cheerios box. the neck is made from a yardstick. the frets made from toothpicks. and this bar is a toothbrush. >> and i know the message is not

just that you can create a band, but really that there is a messagfor other people. >> we want to show people there is more to recycling than just throwing your things in the bin. you can reuse things to make beautiful music. >> do you perform? >> yes. we have mostly played locally in sarasota, florida. but we wanted to come to new york city to play in times square and some bigger audiences too. >> how did you get the funding for that? i would imagine bringing a band has got to be kind of expensive. >> the people in our town were really great. they help out with donating money and that sort of stuff. so that was a massive help. and we'd like to thank all of those people that helped us. >> we saved up our tips from our tip jar and also had a kick starter project online. >> what's your favorite kind of music to play? you have been playing some rock for us today. but could i request -- i like r&b and gospel actually. you could work on that and come back next year. >> we like to play things that everyone knows. popular songs from the '60s, stuff like that. that's our favorite too.

>> look at that saxophone. >> yeah. what's that made out of? oh, my goodness. i didn't even notice that. >> it's made from my fisher price corn popper toy. and the way it works, it has this pvc pipe with holes in it. when harrison covers different parts of it, it makes the pipe a different length which changes the note. and the reed is made from a balloo and we just added a microphone made from an ipod ear bud. >> welcome to new york. we're excited to have you. and the folks at times square are going to love you guys. jack and harrison and ali and evan and austin, thank you for being with us. >> thank you. >> garbage-men band with us this morning. they are awesome. >> so cool. >> "end point" is up next. we're back in a moment. [ female announcer ] great taste is always in style

with lean cuisine steam bags. get our crispiest carrots and our snappiest peas all freshly steamed in just minutes. steam bags from lean cuisine. be culinary chic.

and deposits at the same time. for paying your friend back for lunch...from your tablet. for 26 paydays triggered with a single tap. for checking your line, then checking your portfolio. for making atms and branches appear out of thin air. simple to use websites, tools, and apps. for making your financial life a little bit easier. ♪ home of the brave. ♪ it's where fear goes unwelcomed... ♪ and certain men... find a way to rise above. this is the land of giants. ♪ guts. glory. ram.

somebody didn't book with travelocity, with 24/7 customer support to help move them to the pool daddy promised! look at me, i'm swimming! somebody, get her a pony! [ female announcer ] the travelocity guarantee. from the price to the room to the trip you'll never roam alone. my "end point," cnn.com/startingpoint. if you want to contribute, feel free to tape something for us and send it to us. just email it, 20 seconds or less please. anything over 20 seconds we can't put it on. same for you folks. 30 seconds. we can't -- all right. who wants to start today? >> i'll start because i want to talk about friday the 13th.

before people get spooked out, unless you really suffer from triskaidekaphobia, the fear of the number 13, this just shows us how stats can be twisted any way because 13 is actually a very lucky number if you are a numeroligist, live in italy. very lucky. >> no hotel floor has 13. >> but that's just a silly superstition. >> what you got? >> these kids who are ark mas a incredibly talented, and a reminder of what happens when we support the arts and support music. in we need to invest in young people everywhere. >> i thought they were terrific and great musicians as well. >> so articulate and calm. >> i'm going to revisit dara torres real quick. she has retired a couple of times. there's a chance she comes back. olympics at 49. i can tell you this. my wife was a collegiate swimmer.