the man of jpmorgan explains the big time screw up. why jamie dimon warns something has got to be done about the economy before november. you'll hear everything, but first this. the russians are turning the table on the united states today. this is him on the left side of your screen. today he is accusing washington of arming the syrian rebels. the united states saying no way. the secretary of state hillary clinton slammed the russians over syria once again. she accused moscow of supplying helicopters to the syrian government. they were accused of torturing children. joining us from washington, chris lawrence. what's going on?

this back and forth between the united states. this is getting serious. >> reporter: very serious. the accusations are really flying back and forth now. when you look at some of the what's coming out of the state department in the pentagon, the russians may be getting mixed messages from the u.s. government. take a listen. >> our question remains how can the russians conscious their continued military sales to syria. >> russia has been extraordinarily helpful. we're grateful for the assistance they offer with respect to logistics routes in and out of northern afghanistan. >> reporter: what he is talking about there is the northern distribution network. what that means is afghanistan is landlocked. on one side you have country like iran. very limited options to get food and supplies in there. a lot of that comes through this very winding route and smack dab

at the center of it all is russia and a lot of former soviet states. n nato is depending on that. they supply the afghan forces for their defense. that's why you may be hearing a more muted tone coming out of the pentagon as opposed to the accusations flying from the state department. >> syria's rebels are getting weapons. they are getting arms from somewhere. washington says it's not us. where are they coming from? >> reporter: washington is saying they have been supplying the rebels in syria, but with nonlethal aid. things like communication equipment. things like that help them. it's continuing tho send attack helicopters in arms to syria's

regi regime. we know syria's had a relationship with russia for quite some time. that's no surprise. what the u.s. is now saying is that those supplies continue even after this crackdown. they are accusing russia of still sending the weapons to syria. >> chris lawrence at the pentagon, appreciate it. the head of jpmorgan is in the hot seat after billions of losses in his company. one industry observer will talk to me about dimon. he's going to join me live about what happened behind the scenes and casey anthony's first interview. don't miss that. the medicare debate continues in washington...

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jamie dimon apologized in front of the senate hearing. says the banks massive loss can be blamed on insufficient risk controls. i don't know about you, we thought we would get a little help to understand how $2 billion gets loss before someone pulls the plug. joining me is the author of it takes a village behind the bonuses, bailouts and back room deals. she worked on wall street before becoming an author. first your take on this testimony. >> thanks. the testimony showed a lot of prosturing around the notion of regulations and what should be a more systemic type of regulation. on those answers, jamie dimon was trying to help the people,

the senators that wanted to have less regulation on the institution and on the industry. the problem with that is the $2 billion loss, which i should point out doesn't matter in the scheme of jpmorgan chase's balance sheet. they made $19 billion last year. he said they made more before they knew they lost it. >> it's just such a minor chunk of change. have we just become so accust accustomed to big losses that people shrug this off? i'm just curious. it feels like there's dirth when it comes to outrage. >> it could have been bigger. it can be bigger. the game can be bigger. the fact that the risk is being taken and taken because this

institution and other ones like it has the benefit of a lot of our money of deposits underlying the risks that they take. that's the problem. if it's a good day or bad trading day, that should scare us. a $9 billion win or $2 billion loss back to back is scary. >> let me play a little exchange. take a look. >> when i mentioned the anti-american thing i was talking about between dodd-frank and basal. the american banks can't have preferred stocks like foreign banks can do. >> did you not specifically say as part of your un-american comment that the requirement for banks to hold more money was un-american? >> i did not. >> well, you know, i'd be happy

to look that the again. i think you might want to review that. what your bank has been lobbying extensively against is the very types of protections that at the end of the day can guarantee that the american taxpayer doesn't become responsible. >> to your point there talking about the american taxpayer. jamie dimon says times are tough. tough for american banks. you agree? >> meamerican banks have had a tremendous amount of support. we have moneys in deposit accounts and savings accounts are getting no interest. even the ones that can save aren't getting anything on it. banks can take the capital and deposits and make the risky bets. in order to compete globally. his definition is to have as few regulations as possible on the u.s. banking system so it can do

what it wants to globally which puts not

the very first interview with casey anthony ever since she was cleared of killing her daughter. anthony just dropped out of sight when he was acquitted of murder. that was last july. her 2-year-old daughter disappeared in 2008. her body was found months later. casey anthony stayed quiet for so long. she decided to break her silence. >> i said what are the misconceptions you think about. there's several misconceptions. obviously, i didn't kill my daughter. she said that firmly. there's nothing i've been more proud of. there's no one i loved more than

my daughter. she's my greatest accomplishment. >> piers morgan joining me live. i got a lot of questions for you. first being how did you land this interview? >> it was very unexpected. i was interviewing her lawyer. he had been booked a few days before. he came into my office here and he began talking to me about how the interview might go out. i said is there any chance she could call in. is that a remote possibility. he said not on air. i can get her on the phone for you right now. >> you said, yes. >> yeah. i thought it was a extraordinary moment. i wasn't expecting it. he called her on his cell phone. he put her on speaker after she clarified she was happy to talk with me. i had this bizarre ten-minute interview in which i was able to fire off a few questions and get rather fascinating answers. >> what surprised you the most

in this ten minutes? >> i think the fact that she was quiet self-aware of how her reputation was and how she had come over in some of the interviews we have seen in the court case. she said back at those interviews she said it was horrible for her. she know she has a terrible reputation. i'd already said to her you're one of the most hated people in america. she said it's been a nightmare. it's been like being in prison even show she was acquitted of killing her daughter. she said she was ashamed in many ways of the person she was. it was a recognition by her that even though she had been acquitted of killing her daughter and protested that she didn't kill her daughter but she still behaved in way that shamed her particularly lying to police for over a month. >> did she say why she did? she was convicted of lying? >> she said i've got the quotes here. we took notes in the interview.

i didn't trust lauren then. i didn't give him the benefit of the doubt, which is part of the reason they didn't give me the benefit of the doubt. she conceded she had lied. she was found guilty of that. she regretted that. it was a sense of self-awareness. i got a sense of somebody that is treaded time. she's in this secret location. she rarely goes out because of the security fears. lots of threat on her life. she watches tv. >> reading the hunger games. >> i thought it was a very strange thing to be reading given what happened to her. it's a popular book. the whole experience was strange. one minute i'm talking to her lawyer and without any warning i'm talking to everyone in the world's media has been trying to

talk to her. >> i'm sure you wanted to roll on the video whethinterview whe video or audio. did they say you can talk to her but nothing is reported? >> yeah. they made it clear from the very is that right would not be broadcastable. we didn't record it. we made a note. it was on loud speaker on the cell phone. i think it's case of testing the water. she wanted to communicate a few things. she was very exercised about what she called sort of media myths about her. this was quite interesting that she saw no distinction in the rumor mill about her between the national inquirer and as she put it the exact quote was, the reputable media people. she felt lots of untrue rumors were allowed to spin.

she said i've never been an quote, unquote party girl. i don't drink now. i've probably had a handful of beers. i've never done drugs part from a bit of marijuana. i'm not 500 pounds. her lawyer said she's near 120 pounds and she said she's not making gazillions of dollars or trying to sell myself. she said i don't give a expletive about money. she was angry about stuff that's being published. >> i was to ask about her tone. did she sound nervous to you? was she nervous, timid, loud? what one question did you not get in? >> i had about ten minutes then the lawyer cut off the conversation. he had been watching this show, my show, and he felt comfortable with her talking to me. obviously, i was keen to getting

a proper interview on camera at later date. i got a feeling she wanted to say something and she wanted an outlet to say it. she didn't want to make money. we don't pay for skbinterviews cnn. i think she felt it would be a more credible conversation with a news organization that wasn't paying her. >> we thank you. we want to remind everyone don't forget to catch the interview with jimmy fallon. thank you. it's been two months since artist thomas kincaid's death. the focus is turned away from his paintings and on the his handwriting. millions now are at stake. [ male announcer ] count the number of buttons

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: jury deliberations are about to begin in case against a retired texas firefighter accused of killing a popular gym teacher over a loud party. he was trying to get them tone it down. he made a video of the encounter and it was played in court. >> won't y'all turn that down, please. >> who are you? >> i live over here. turn it down. >> don't go hollering at me. >> i'm hollering because you can't hear me. i told you repeatedly to turn it down. >> i hear you screaming. >> won't you turn that garbage down. some of us are trying to sleep. >> the situation escalated when the partiers confronted him as he called 911. >> it's about to get out of hand, sir. help me. please help me, sir. my life is in danger now. he's going to go in the house and be more than equal than me.

now, i'm standing my ground here. now these people are going to try to kill me. i'm going to just tell them to stay back. they are drunk. >> hear that gunshot. three men were shot. this man, teacher, kelly died. the final witness in the trial was his widow. she broke down when prosecutor's showed her a picture. prosecutor's call rodriguez a neighborhood bully. he made a split decision under defending himself under texas's version of stand your ground. new york, the city's training program targets human traffickers. it's not for police. it's for cab drivers. a big moment going down inside the white house. we're going to go there live, next. [ male announcer ] this is genco services --

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big moment happening right now at the white house and an unprecedented sex trafficking law targeting cab drivers. time to play reporter roulette. i want to begin at the white house with athena jones. how often does this go to nonu.s. citizens? >> reporter: it's not that common. it's the highest civilian honor that america gives. tony blare got it. nelson mandela was awarded in 2002. it's for people that made a lasting impact whether in politics or world peace or the arts and certainly he fits the bill there. he was prime minister twice. back in 1994 as foreign

minister, he got the nobel peace prize for his work for middle east peace talks. you remember back in may, hechs not at that ceremony when the president handed out the awards this year. he's getting his own special dinner tonight to get the award. he did say that paris had done more for the cause of peace in the middle east than anybody alive. >> thank you. next, we're talking to you because i know advocates are speaking ut on this new law that target cab drivers that participate in sex trafficking. >> reporter: every year thousands of young men and women are brought to new york against their will and become part of sex trafficking. the key part is transportation.

they pay them to bring them to various locations. city council passing legislation to target drivers and delivery drivers who are using the women and the men for sex trafficking. new york city council speaker explains on the need for legislation. >> i'm not going sit around, 4,000 children plus countless men and women be braugts here against their will, forced into prostitution and do nothing about it. the advocates working with us also have shown us facts as has the district attorney and the attorney general, that part of the ring in new york city around trafficking are taxi driver, delivery car drivers. who would have thought they are in on it. >> reporter: in a few weeks the mayor will sign the legislation and it will become law. there will be criminal prosecution for those drivers and civil penalties, fines and loss of their licenses and also, new york city will now mandate

that cab drivers take a sexual trafficking course, watch a video to spot potential people involved in this. the legislation was softened so that drivers will not be allowed to just target and single out passengers who are innocent if they think they may be involved in sex trafficking. >> good. i'm glad they are tracking down. thank you so much. he's accused of murdering his own people responsible for body, shelling, torture of children. should the u.s. take the president of syria out? one man says it's not that farfetched.

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i know you all have seen his work. it's in about one in every 20 homes in america. i'm talking about thomas kinkaide. he left an estranged wife, a girlfriend and a fortune. two women are now fighting it out in court. sunny hostin is on the case. what do the ladies want and what's the basis for the girlfriend's claim? >> the girlfriend wants money. she wants a home. she wants money and she wants control over his estate which is about $66.3 million. a significant estate. the basis is she says he gave it to her. he wrote two notes. one in december of 2011.

another one in november 2011. in one note she says that he gave her $10 million in cash and this wonderful and beautiful estate in california. in the second note she says he gave her 10 million to establish the thomas kinkaide museum. we're showing pictures of the note. you can see the handwriting. >> it's not so great. he was painter but maybe not so much when it came to the pen manship. part of the issue is proving these came from him. >> that's right. that's going to be an issue. my understanding is this is all going to be hashed out in court whether or not these notes will constitute a will. whether or not he wrote them. his wife, while estranged, she says this woman is a gold digger

and she is really disputing the validity of those notes, the alleged will. she says that this woman is trying to take away the estate from thomas kinkaide's rightful heir. we'll see this. we'll hear more about it. everyone knows about him. >> let me move onto case number two. there's a strange twist in the trial of jeffrey stern. the lawyer who is plotting with his mistress to kill his socialite wife, not just once, three times. what's the deal now? >> he did have an affair. they are no longer together.

she admitted to hiring a hitman. she took a plea. she's in jail awaiting trial and awaiting his trial so she can testify against him. she wrote a note to another female inmate trying to put a hit on her former lover. she offered $20,000 for his death. what does that mean for the case? he denies being involved in this murder for hire plot. some people say this is the death nail for his case. i don't agree with that. we have to figure out if this was a murder for hire note. whether the note has been fabricated or not. perhaps they did this together and she's angry with him and trying to put a hit out on him. i think it's too soon to say this is game over for jeffrey stern's case, but an interesting twist. i think it will be helpful. >> comes down to the notes in

this cases. sunny hostin. thank you so much. assad accused of slaughtering syria's women and children. is it possible the u.s. can just take him out? my next guest says that's not that radical. blan oh, i like it! [ garth ] sven's small business earns 2% cash back on every purchase, every day! woo-hoo!!! so that's ten security gators, right? put them on my spark card! why settle for less? testing hot tar... great businesses deserve the most rewards! [ male announcer ] the spark business card from capital one. choose unlimited rewards with 2% cash back or double miles on every purchase, every day! what's in your wallet? here's your invoice. ...more talk on social security... ...but washington isn't talking to the american people. [ female announcer ] when it comes to the future of medicare and social security, you've earned the right to know. ♪ ...so what does it mean for you and your family? [ female announcer ] you've earned the facts. ♪

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assd full scale torture is now accusing the leader over the toture. calls for action continue around the world. how about this? should the united states kill assad? maybe america should try to kill bashar al-assad. peter, what are you saying here? >> useful to do the thought experiment. i can think of good reasons we shouldn't.

someone in his own clique might take power. >> hang on a second. i read the whole thing. you devote this entire piece to building a case to justify an assassination. we're going to get into some of that here in a moment. >> i felt there were good reasons not to do it. what i wanted to do is use this to look at the ethics of humanitarian warfare. >> obviously, i read this, multiple people on my team read this. one thing i have to take at task is one of your facts. you write, quote, there's an executive order against assassinating heads of state but we don't abide by it.

our ban on assassinations began after the deaths in part because of the deaths of those two men. we decided that was a bad, bad idea. why go on that now? >> it was issued in '76 by ford. >> i give a couple more examples that were recent against that. our war in libya we were not upset to see that war end. it was in 2003 far after the executive order. we specifically tried to start the war by killing hussein. >> what about the issue of retaliation? let's say we do kill assad, what

does syria do to us? we wouldn't appreciate it if they did it to us. they lack the power. is it okay to kill assad because question? >> no. my point was, to raise the question of why we would be concerned about retaliation but not the concern about retaliation in the case of, let's, say, bombing in order to try to overthrow assad. in both cases seem to me the fear of retaliation is quite low. syria is not in a position to retaliate for humanitarian bombing. >> this is ultimately the point you get to toward the end of your piece which is, if the u.s. were to kill assad, what does that get it? you write it might not do so good. kill assad and some brother,

cousin or other general might take over where he left off. the conclusion of your article is what? don't bother killing him. >> why it's publicly acceptable in america to wage humanitarian war in syria, in which we would drop bombs on assad soldiers but not acceptable to discuss killing him. seems to me there's a contradiction there. >> i tweeted your piece and i got a mixed reaction. >> a very bad idea. those people that think it's a bad idea think that military intervention is bad idea. what interests it seems to me the people that would be opposed to this but supportive of military intervention. that's the position i don't understand. >> thank you. >> thank you. jamie dimon called a crook

today as the head of jpmorgan apologizes, he also sends warng about the economy.

when jpmorgan ceo headed to capitol hill today, he warned the senate banking committee that congress needs to act soon to avoid a fiscal cliff. here he was. >> it may not wait until december 31st. markets and businesses may take action before that that create a

slowdown bad thing. >> erin burnett, good to see you. how are we to take that? translate that for me. is it a threat? is it a warning? >> it's sort of a little bit of both, brooke. part of what he's saying is with all of these deadlines happening at the end of the year, for companies with payroll taxes, there's all kinds of things not knowing what tax rates are, you have to go ahead and program things in in advance. if you don't know what it's going to be or the bush tax cuts tax rates are going in at the end of the year, what it means is companies will be hesitant to hire, they won't know the rules. in part it's just a warning but also threatening and basically saying do your job so that doesn't happen. i have to say, brooke, that was classical jamie dimon style. he is there about one thing and he turns the tables and lectures congress about something else. >> i noticed that. but i guess you know, when he's talking about wall street business, what specifically does he want from washington?

>> what jamie has said repeatedly that he wants is a sort of a grand bargain. and i've interviewed him a lot over the years. jamie dimon is someone who for much of his life at length democratic, people talked about him being treasury secretary under obama. it's unclear given what's happened on financial reform and dimon's pushback on that, whether that's still the case. but what i think he's really looking for is a grand bargain sort of a deal where they know the rules and feel like the situation's being dealt with. the downgrade that happened to the debt of the u.s. is a really big issue on wall street and really can royal markets. that's what most all of wall street wants happening again. >> what was that two januarys ago? that didn't fully come through. >> right. everyone keeping saying do it, but they can't get the votes together. he's in the group, please, that's a thing that needs to get done. >> what about the term he used, fiscal cliff, what is the

feeling overall on wall street? they agree? >> they absolutely agree. as you know, it's not just the bush tax cuts, it's the extension of unemployment benefits that goes away, it's the need to raise the debt ceiling at the end of the year, it's the payroll tax cut that will go away. all of these things are going to happen at the end of the year. they refer to it as a cliff, brooke, because it's a sense that if all of these things happen at once, really, people's tax rates go up, that could send the economy back into a recession, really send us plunging off that cliff. ben bernanke was using the word the other day. that's what they're talking about and want to avoid. of course the great irony is to avoid it at this point to extend the tax cuts means more spending. >> uh-huh. well, i know you're going to be all of this. you have interviewed jamie dimon many times in the past. we'll look forward to you at 7:00. >> thanks, brooke. >> and the pressure on president obama to free convicted israeli spy is mounting. will the white house grant him

clemency? wolf blitzer is in "the situation room." >> the israeli president, shimon peres is getting ready to go to the white house. he's receiving the presidential medal of freedom. at the same time he has already said he will ask president obama to provide clemency to jonathan pollard, the former civilian naval intelligence analyst serving a life sentence for spying for israel. other presidents have been asked similar requests from israeli leaders including president bill clinton. he's been in jail now for about 25 years, jonathan pollard. so we've assembled a panel to assess what's going on in "the situation room." one congressman, democrat of new york has teamed up with conservative republican chris smith of new jersey. they're circulating a letter to the president saying go ahead and release pollard, 25 years is enough. we've got elliot eng l in the situation room, the former u.s.

attorney in washington, d.c. who is the chief prosecutor of jonathan pollard, and bill hollow, he worked with george tenant when tenant told bill clinton if you release pollard, i will resign in protest. so we're going to discuss what's going on. it will be a good thorough discussion on a very sensitive subject right now that will come up at the white house in the next few hours. >> wolf, we'll look forward to it. see you in five minutes. thank you. day three here in the trial that many blame for damaging the name, the reputation of penn state. hear what allegedly happened to one victim, an alleged victim, after he rejected sandusky's advances. we're live outside the courthouse. [ creaking ] [ male announcer ] trophies and awards lift you up.

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three more accusers testified today against former penn state football coach jerry sandusky. one alleged victim identified as number ten testified that sandusky sexually abused him, threatened him and then apologized and professed his

love for him. jean, i know you were in there for accuser number seven. what did he say? >> you know, this young man, he's 25 years old now. and he testified much like the others have testified. there are three places where these take place, in the car, at the showers at the penn state university's coach's locker room, and also in jerry sandusky home while his wife is there. and this accuser said that he's in the car and he's in the front seat. jerry sandusky puts his hand on his thigh and works his way up the pants. and he said he would just move over to the side of the car as hard as he could to get away from him. at the home he would be going to bed, jerry sandusky would come and give him a hug, cuddle with him and he would struggle to get away and say i have to go to sleep. and in the showers he said at

least it happened once that jerry would come and try to lather him with soap and he would just break away and go to another shower. well, this young man suddenly didn't get the tickets to the football game anymore, he testified. and he didn't know what he did wrong. he thought he did something very, very wrong. hard cross-examination on him though. >> in 30 seconds you have jerry sandusky listening to this testimony. is he shaking his head throughout or what? >> no. but when his defense attorney said you didn't say any of this to the grand jury, in fact you said he never touched you without clothes on and never touched you inappropriately. jerry sandusky seemed very satisfied as the jury left for the break at that point. sandusky looked at every single juror as they left the room. >> jean, we just got news as you've been talking to me here outside the courtroom that the judge has said the prosecution will rest by friday. by friday. jean, we appreciate it outside that courthouse in pennsylvania. thank you for being with me the last two hours. i'll be right back here

tomorrow. i'm brooke baldwin. in the meantime, let's go to washington to wolf blitze eblit. "the situation room" gib begins right now. a superstar who could do no wrong apologizing to congress after his firm lost billions on a bad bet. does he now think the megabanks need more regulation? president obama can't stop talking about president clinton. can he somehow ride clinton's old coat tails to a victory in november? and one of america's most valuable assets is its image around the world. there are now some surprising results in a new global survey about the united states and president obama. and a lot of it is not pretty. i'm wolf blitzer. you're in "the situation room".