>> let me ask you this, mr. morgan. as a result of this, should one of the things we do now, should banking entities like chase morgan bank, jpmorgan be allowed to hedge on specific bases as opposed to on an aggregate or portfolio basis? >> if i were the regulator, i would allow portfolio aggregate. i'm going to give you one example. several people mentioned europe. jpmorgan is doing banking in europe for 75 years. he used to love italy and would go there. we have exposure to italian companies that you can't get out tomorrow. there's only one way to do it.

if you said do it by individual name, it would be impossible. >> i think the american people would want to know, when this happened, when you first got wind of this $2 billion loss, what was your initial reaction? >> when i fully realized it, i told our people that everything is going to happen from coming down to washington to questioning volcer. we heard other bankers, it causes a lot of commotion inside the company, soul searching, but my attitude is we made our mistakes, fixed them. let's put our jersey on and fix them. however, it does affect it, but it shouldn't distract us from the mission of serving clients. we have 82 chase offices. and we'll do all the things we have to do to serve the clients right. i don't want this detracting

from what all the 262,000 people do every day. >> right. and i can't let you leave without this question. the fundamental question going forward is the whole issue of too big to fail. how do you feel about that? especially since you are the biggest of the biggest. >> our goal is not to be the biggest, it's to be the best. everyone agrees we have to get rid of that in any incarnation. >> you said get rid of too big to fail. >> we have to eliminate too big to fail, allowing the bank to fail in a way that doesn't damage the american economy and the taxpayer never pays. >> thank you. two more minutes and we'll conclude our hearing. >> we'll go through a little calendar here. on april 6th, bloomberg had an

article. you're familiar with that article. and i think the wall street journal had an article that same day. and then are you aware the regulator ls came into your shop on april 9th and expressed concerns about this article and the trades? >> i'm aware -- i don't know if they came or we called them. i believe some of our people spoke to regulators and described what they thought about it. >> it's reported on tuesday, april 10th, that particular position lost $300 million. subsequently on the the next tuesday and wednesday with smaller losses. were you familiar with those? >> yes. so then on april 13th, then you made a statement that it's no big deal, it's just a tempest in a teapot. was that an accurate reflection of it? >> it's totally accurate of what i believed at the time.

that day was the first trading day after the article. so part of that was expected. several believed that, reported it back to me. on april 13th i believed it. it was obviously was a nis take. i deeply regret having said it. >> i understand. i think the concern i had was that was a couple of days after the $300 million pop. that's a pretty big pop even in your organization, isn't it? >> we stress test it. some of the stress reports, i may have seen them. but it can't be that much worse. i have a very profitable

quarter. you have to put things in relative size. is it fair to say you've had 50 meetings. >> 50 what? >> meetings. meeting with people, talking on the phone about this. is it fair to say you're amenable to talking with various people about these things and other things associated with your business and probably you meet with congresspersons and talk to them about these issues? >> i talk to people if appropriate. >> if appropriate, do you meet with congress people? >> on occasion, yes. >> i ask because i want to talk to you about a concept that's near and dear to my heart. we've been talking about too big to fail. i want to talk about a concept i've called too small to live

off. in houston, texas, we have janitors. they are paid $8.35 an hour. i know this is very small compared to what we've been talking about. i think you made $19 billion in 2011. is that right? >> yes. >> and your fourth highest paid person made about $14 million in 2011. i won't mention a name. but there's a reason for picking the fourth highest. with persons making this kind of money. and by the way, i salute you for it. i'm a capitalist. i commend people for making the money that they make within the rules, of course. what i want to talk to you about is this. $47,000 is -- that's working full time and living below the

poverty line. i would like to meet with you and talk to you about two small to live off. i'll pay my way. i won't use congressional funds. i'll do it in a place that you like. can you and i meet and talk about too small to live off? >> yes, we can. >> i'll talk to you after the meeting. >> i'm going to miss the vote. >> thank you. >> this concludes the hearing. the chair thanks our panelist for his testimony. the hearing record will be held open for 30 minutes. remember to submit written questions to both witnesses in the responses in the record. this hearing is adjourned, thank you.

let's take you live to the state department as they prepare to release the 2012 human trafficking report. secretary clinton will talk about the steps taken to bring human traffickers to justice, identify victims and begin implementing anti-trafficking measures. live coverage here on c-span 3. >> welcome, it's wonderful to have you all here. i want to welcome will smith and jada pinkett-smith for being here with us. thank you for being here.

every year this event brings committed leaders and activists from across the anti-trafficking movement and the enthusiasm that's surrounding. it shows us the momentum we have built and the struggle against modern slavery. i am the undersecretary for civilian security democracy and human rights. my office oversees the bureaus that help countries and governments create just societies. societies that are grounded and democratic principles that guarantee respect for human rights and that apply the rule of law. whether helping to strengthen human systems or denouncing human rights abuses or helping build strong law enforcement capacities, or combatting

trafficking impersons. we're aiming to help countries protect the individual citizens of their countries. trafficking challenges are one of the problems that we have, and it is also the one area that deals with one of our most fundamental values. that is the basic freedom and dignity of every individual. trafficking also tears at the heart of society. it rips families apart. it devastates communities. it holds people back from becoming full participants in the own processes and economies. it challenges the abilities of countries to build strong justice systems and transparent governments. that's why fighting modern slavery is a priority for the united states. in that fight, we partner with governments around the world to improve and increase the prosecution of this crime, to

prevent the crime from spreading, and to protect those individuals who are victimized by it. while governments bear the responsibility of protecting their individual citizens, this fight depends on a broader partnership as well. without the efforts of civil society, the faith community, the private sector, we would not be able to advance, and we would not be able to see the advances the report highlights. the report that we are issuing today guides our work. it represents the very best knowledge and information on the state of modern slavery in the world today. it shows the fruit of partnerships around the world. it shows the strides that we've made and protecting individuals and it shows how far we yet still have to go to assure the basic human rights. i want to thank everyone who has

worked this last year to compile these reports. from the ngos that submit this information to the governments that provide us with data, from the diplomats in our overseas missions to the staff of the office of monitor and combatting traffic and persons who are here today, and today really is the culmination of tireless work over many months that they have taken on. and for that reason it's really my pleasure and my privilege to introduce my colleague who runs the office and who has shepherded and given leadership to the process, our ambassador at large to monitor combat and trafficking. [ cheers and applause ]

>> thank you, madame undersecretary for the introduction and for your leadership here at the state department. bringing so many issues together under the label of civilian security over the last year has allowed room here in the state department and across the u.s. government for constructive collaborations. whether we're dealing with human rights, war crimes, counter terrorism or as today, human trafficking. because building democracy, growing economies, unleashing the full potential of the individu individual, these things don't just happen. they start with people. around the world we've heard the people. the voices calling out for democracy, for greater opportunity. we recognize that sound. it's the sound of hope. and traffickers ensnare their victims by exploiting that hope. especially the hope of the

vulnerable. come with me. i'll help you start a modeling career. pay me $10,000, i'll get you that job. i love you. i'll take care of you. just do this for us. as long as the trafficking and persons report is needed, we will find in the pages account after account of traffickers pedalling false hope, but that's not all that we find in the pages of this report. because every year that passes, those false hopes are overtaken more and more by real hope. >> the real hope that the modern abolitionist movement provides. and just as trafficking takes many forms. the way that we fight slavery today, the way that we provide hope is growing. it's growing more diverse and innovative. and so are the people who are stepping up. we see it in the private sector, where corporate leaders are using their business skills.

they're hearing from consumers who don't want to buy things tainted by modern slavery. leaders like ceo tom mozetta. when he read a report about slavery he wasn't just shocked. he acted. the first was to the company he used until that day to source calamari. the second was an open letter to all of his customers telling him that his brand was his family. his family name. and he would not taint it or his customers with slavery in his supply chain. we're inspired by his principle to stand. we see it among activists like jada pinkett-smith and her family. when her daughter willow began asking about the subjects, she didn't explain it away as something that happens over there, she got to work. she's launching a new website to serve as a resource for victims and survivors, and an

information hub for those who seek to learn more about the crime. jada, we thank you. we see it in people's day-to-day lives, like when abram was watching cnn one day. he saw the story of a young boy castrated because he refused to take part in a begging ring. he wasn't just horrified by the reality of modern slavery. he did something. he got in touch with the boy's family and paid for him to come to the united states for surgery. if i can take a moment of personal privilege, we see it in the men and women who contribute to this report. in our regional bureaus here in washington. and especially the reports in political affairs team of the office of modern combatting persons. we thank you for your rigor, your commitment, and the zeal

with which you attack this problem. and we see it ultimately in the victims, in the survivors. whether they choose to become activists or whether they choose to lead a life of quiet anonymity. when you log on the to slaveryfootprint.org, and i hope you do, and it asks you how many slaves work for you, remember that those victims are not statistics. it will give you a number. but these people are not numbers. they are people with hopes, with dreams, with courage. and with names. remember their thams. it's their courage that challenge us to deliver on this promise. this promise of freedom. and it's my pleasure to introduce someone who has never turned away from that. from the start of the effort

when most people didn't want to talk to this day when we recommit ourselves to a vision of a world without slavery. ladies and gentlemen, the secretary of state. >> thank you. thank you all very much. and i am delighted to see a standing room only crowd here in the benjamin franklin room for this very important annual event. i welcome all of you here to the state department, and i want to begin by thanking the ambassador and his team for all the hard work that goes into this report. and the passion that they bring to the fight against modern

slavery. i would like lou for you and your team to either stand or wave your hand if you're already standing. could we have everyone from -- thank you. i so appreciate what you do every day. not just when we roll out the report, and i'm very proud to be your colleague. i also want to welcome our heros whose work is making a big difference. you'll hear more about each one individually as we recognize them. i want to personally thank them. they do are mind us that one person's commitment and passion. one person's experience and the courage to share that experience

with the world and have a huge impagt. i'm delighted to welcome all of our heros here today. thank you. [ applause ] and i will join lou in thanking jada pinkett-smith and will for being here. and through you, your daughter, because as lou said it was their daughter who brought this issue to jada's attention, and i am so pleased that she has taken on this cause, and we look forward to working with you. in the united states today we are celebrating what's called june-teenth. that's freedom day. the date in 1865 when a union

officer stood on a balcony in galveston, texas, and read general order number three, which declared all slaves are free. it was one of many moments in history when a courageous leader tipped the balance and made the world more free and more just. but the end of legal slavery in the united states and in other countries around the world has not unfortunately meant the end of slavery. today it's estimated as many as 27 million people around the world are victims of modern slavery. what we sometimes call trafficking impersons. as lou said, i've worked on the issue now for more than a dozen

years. and when we started, we called it trafficking. and we were particularly concerned about what we saw as an explosion of the exploitation of people, most especially women, who were being, quote, trafficked into the sex trade and other forms of servitude. but i think labeling this for what it is, slavery, has brought it to another dimension. trafficking, people wondering if i was talking about road safety. what we needed to do to improve transportation systems. slavery there's no mistaking what it means, what it does. and these victims are women and

men, girls and boys, the stories remine of us what kind of inhumane treatment we are capable of as humans. some lure our country to promises of a good job or opportunities for their family. others can be exploited right where they grew up, where they now live. whatever their background, they are living, breathing reminders that the work to eradicate slavery remains unfinished. slavery may have changed, but our commitment to ending it has not. and the deeply unjust treatment it provides has not either. now the united states is not alone in this fight.

governments have rallied around the three ps of fighting modern slavery. prevention, prosecution and protection. and this report, which is being issued today, gives a clear and honest assessment of where all of us are making progress on our commitments and where we are either standing still or even sliding backwards. it takes a hard look at every government in the world, including our own, because when i became secretary of state, i said when we are going to be issuing reports on human trafficking, on human rights that talk about other countries, we're also going to be examining what we're doing. because i think it's important that we hold ourselves to the same standard as everyone else.

this year's report tells us that we are making a lot of progress. 29 countries were upgraded from a lower tier to a higher one. which means with @ governments are taking the right steps. this could mean simply laying out a road map of steps they will take to respond. but this issue and the progress we made are about much more than statistics on prosecutions and vulnerable populations. it's about what is happening in the lives of the girls and women i recently met in calcutta. i visit a few months ago and was able to meet with some extraordinary women and girls, who were getting their lives back after suffering unspeakable abuses. one young girl, full of life,

came up and asked me if i wanted to see her perform some karate moves, and i said of course. and the way she stood up so straight and confident, the pride and accomplishment in her eyes was so inspiring. this is a child who had been born in a brothel to a young mother who has been forced and sold into prostitution. but when her mother finally es typed and took her daughter with her, they were out of harm's way and finally able to make choices for themselves. now, i don't know what's going to happen to that young girl whose image i see in my mind in the years and decade ahead. i know with a little help her life can be so much better than her mothers.

it's what we need to try to do for all victims and survivors. that's why in this year's report we are especially focused on the third "p." victim protection. and in these pages you'll find a lot of proven practices and innovative approaches to protecting victims. what kind of psychological support might a victim need? how should immigration laws work to protect migrant victims? how can labor inspectors learn to recognize the warning signs of traffickers? and what can you and all of us try to do to help? when i worked with them i met several young women from the united states who had been inspired by reading about and

watching and going online and learning about what was happening in the efforts to rescue and protect victims, and they were there in calcutta, working with organizes, ngos in the faith community, to do their part. so thgs a moment for people to ask themselves not just what government can do to end modern slavery, but what can i do? what can we do together? ultimately this report reminds of human cost. traffickers prey on the hopes and dreams of those seeking a better life. and our goal should be to put the hopes and dreams back within reach. whether getting a good job to send money hope to support a family. trying to get an education for oneself or one's children.

or per suing new opportunities that may lead to a better life. we need to ensure all survivors move past what they endured and to make the most of their potential. i'm very pleased that every year we have the chance to honor people who have made such a contribution in this modern struggle against modern slavery. and i'm also pleased that this is a high priority for president obama and the obama administration. it's something that is not just political and not just a policy, but very personal and very deep. you might have seen over the weekend a long story about mrs. obama's roots, going back to the time of our own period of slavery, and the family that