and about 45 minutes, maria bartiromo on the facebook ipo and j.p. morgan trading loss. joseph white will talk about the googled driver-less cars >> good morning, friday, may 25, 2012. you're watching "washington journal" on the start of this memorial day holiday weekend. many tributes to fallen heroes will take place including events

on memorial day. the annual rolling thunder motorcycle rally in washington, commemorating vietnam veterans. a lot going on in nation's capital to honor veterans and those who died in service if. in our final segment we will look at current statistics about veterans in american society. how they are fearing versus the rest of the company -- country on issues like joblessness. tonight there will be a debate that in milwaukee concerning the milwaukee a recall election. six officials are undergoing a rissole proces -- recall process. some say it has become a proxy battle for the national election. we will talk about the wisconsin recall election this morning and get your thoughts on it.

the wisconsin recall election and your thoughts about what the messages are on the national level as well. as we get started, we have a special line set aside for wisconsin viewers today. 628-0184. or you can send us a tweet a message on facebook or you can send us an e-mail. to get started on the recall election and the issues and what they might mean for the fall elections. let's listen to governor scott walker, the republican governor who is the subject of a recall effort. he made a trip to fox news last night. let's listen to some of what he said. >> it's not just for wisconsin. it's for the country. it's about courage. if they of fermi on the vote, it

sends a powerful message not only around wisconsin but around the country that voters are serious when they said they want leaders waitinwilling to take on the powerful special interests and put the power back in the hands of taxpayers. that's the whole reason we have had millions of dollars coming in in the spring and then in supreme court race and in the recall process against me. the special interests in washington don't want the taxpayers involved. who is in charge? is it the taxpayers or special- interest groups? host: his opponent in the recall election is the democratic mayor of milwaukee, tom barrett. >> scott walker is plane trip tricks with job numbers because he did not like the real ones. >> and just like the tricks he

is blank showing e-mails showing taxpayer dollars used for walker's campaign. he is in deep trouble if he received any of the e-mails. walker refused to tell us what he said to the prosecutors. does wisconsin not deserve the truth before the election? host: a local newspaper has two major articles there this morning. here it is -- this ties into the election. we will learn how. on the line is patrick, a reporter for the milwaukee journal sentinel. one has the recall race turned into? what is it all about the stage of the game? guest: it started with collective bargaining.

there's no way they could have gotten nearly 1 million signatures to recall the governor if he had not gone after collective bargaining for public workers last year. that is an issue that's very important to public workers and to the union's nationally. the average voter it might be less important. in some ways the race comes down to the typical things when the economy is not good. it's all about the economy. host: how with the economy doing? guest: the monthly jobs data has shown wisconsin was the worst in the nation last year. it lost 34,000 jobs. governor walker has questioned the data and rushed the release of some data that usually comes out from the federal government that normally would not come out until three weeks after the elections, which shows wisconsin gained 34,000 jobs last year.

that data is generally better respected because it is an actual job count rather than a survey or estimate. webber, it was put out three weeks early and you cannot compare it to national numbers because the bureau of labor statistics has not put them out. even if you use the better numbers from governor walker, that is pretty anemic growth. it is not on pace to meet its promise to create 250,000 jobs in a full your years, but it is positive territory. host: talk to viewers around the country about the interest by interest groups and public officials on both sides of the aisle. guest: the recall movement started a year ago. they could not recall governor walker right away. you have to wait until someone has been in office a year in wisconsin. we saw in nine recalls last

year. six republicans and three democrats. more money than we had ever seen spent on legislative races. huge portions of. it from out of of the national unions were heavily involved as well as conservative groups that raised money nationally. those groups tend to have to disclose less of their funding. so where they get the money is not clear. in this race we have seen a lot of money, much of. it from out of of there's a heavy republican tilt in this portion of the spending. governor walker talks a lot about the national unions and outside special interests spending money in wisconsin. he has raised a record amount of money. two thirds of it from outside wisconsin, much of it -- very large donations.

$250,000 from casino mogul sheldon adelson, who had supported a super pac for newt gingrich. we saw quite a bit of labor money this week go into labor groups going for tom barrett. wisconsin are voters reacting? guest: we have never seen this kind of spending in a race for governor. it surpassed the record of spending before the primary and there still a month ago. the air waves are blanketed with ads. political professionals seem to think the advertising is not as persuasive as it usually is in the governor's race because people have already made up their minds. this electorate is very divided. half the state loves scott walker and sees him as a tough

guy and who has made the tough decisions and done what he thought was right to get the states where it is. half of the state hates him, thinks that he has done an attack on people, not being fair to the common people. people have their minds made up. both sides agree it will all be about turnout. early voting started this week. it appears so far that turnout will be quite high. that is where we see. it see host: thanks so much. a big debate between the governor and his challenger to night. c-span will have that live beginning at 9:00 p.m. eastern. patrick, thank you. we have an interesting couple weeks ahead in your state. guest: thanks for having me. host: you have heard some of what's happening in the state. many have been following this and the issues surrounding it.

and it translates into what's been happening in other states such as ohio. we begin with new york city. peter is a democrat. caller: thank you for c-span. this is the same old republican nonsense. this governor deserve to get the boot for good in my opinion. can you imagine, it's an outrage not to allow for collective bargaining and unions. i don't hear the outrage. unions and shore worker safety. they have for decades. maybe 70 or 100 years. unions insured worker dignity and a living wage. to try to roll back the rights of collective bargaining and for the people of not just the state but of the country, for them not to be outraged and not looking to protect the little guy, which

is what unions do. the same republican nonsense. americans ought to be outraged. this man ought to be put out for good. host: that was peter in new york. on twitter -- next is lancaster, virginia. john, an independent. caller: lancaster, pennsylvania. the summary that fellow gave was pretty good. it is a microcosm for the country in that republicans will say anything to get elected. all politicians give you a somewhat of a line. the 2010 elections it was jobs, jobs, jobs. republicans haven't done nothing to do that. walker ran on everything other than getting rid of unions and

collective bargaining. there was a wisconsin representative on last week on c-span that said there was all sorts of outside money coming in through the democrats. walker with outside money has outspent the democrats 25-1. so that's lots of outside money. the key will be like the 2010 elections, democrats and independents have to show up. we basically blew it by not showing up for the 2010. we got the tea party crazy. hopefully, the people in wisconsin will turn out in droves to get rid of this guy. host: banks. james is an independent in greenville, north carolina. -- thanks. caller: good morning. the caller was on point.

walker is all about busting up unions. if they can eliminate all unions, it makes it easy for republicans to win permanently, not just for this year. they would become a redstate. -- red state. this guy is outspending the democrats. he has been doing this. his opponent, 50-48. i have confidence that the ground work will work. if they eliminate all unions, how can the democrats ever win elections? host: thank you. t.j. on twitter writes -- next is a call from chicago, kathleen is a democrat. good morning.

caller: good morning. first, i don't blame governor scott walker for doing what he did. everybody knew what he was. he was a union buster and he was a republican. i blame the people in wisconsin. the president went around the country almost begging people not to give the keys back to the republicans. they were so angry and had all those signs in the streets calling the president all kinds of names. i guess they thought they were hurting the president. republicans lied about jobs. haveknew dathey did not any jobs. but the people let the republicans could win them. they went to the polls and voted for them in november. -- the people let the republicans hoodwink them.

some of the people crying now were the tea party. the people will put this man out of office. they will go out in droves. i hope it sends a message you cannot trust republicans. host: kathleen, chicago. and on twitter -- let's check in with our facebook crowd and see what they are posting. beginning with richard smith, who writes -- julie washington posts --

next is a call from colorado. this is heather on our republican line. good morning. caller: thank you. you can call me an old rhino because i'm not a tea party person. like the republican party does not want me anymore. i have to think about where i will go next. it's not about union busters for this man. it is also about privatizing everything. when you privatize things, you have to scale down the work force and you have low wages and no benefits. you also have the voucher situation with education in wisconsin. they want the vouchers so the wealthy can send their kids to private schools and religious

can have their religious teaching at the expense of public schools. he put stimulus money in its coffers to bring down the state debt. we want to know how they will not come up with other ways to step down the election. i would not trust the people in control. good luck, wisconsin. host: banks. next is recalling from florida, an independent. good morning. caller: good morning. the reason i'm calling is i am sitting in my living room listening to everybody talking about the evil republican party, but it was fdr that was against unions. he was a union man, but i don't think state, local, and federal employees like teachers, firemen, police officers if

should be in the union's. that is what he stood for. host: explain your reasoning. why should not public-sector employees be unionized? caller: the public are the ones to elect our officials to be in office. over the years they have had different contracts and a different? benefits to the public employees that we cannot get or have any say over. as long as they're giving things to firemen and police and so on, if you are getting something for nothing, you're not going to take it away from anybody. fdr was a strong union man, as i am, but i think unions belong in the private sector and not the public sector. the public sector, their pensions and retirement are a lot greater than ours are. if i worked 40 years for one company and after 40 years i guarantee i don't get the same retirement that a 30-year county

man would get in florida. people should go back and look at what fdr said about public unions. host: thank you. kathleen responded to the facebook comment about the union's being toast. here's what she writes -- next is a call from milwaukee. lee, a democrat. how does it seemed to you? are you bombarded with advertisements? caller: yes, but not as much as some people. i do get some. i do follow it very closely and i am. so am i am against this governor and one he has done to the state. he has divided the state unbelievably. we have never had such a thing happen here before.

when he campaigned for governor he never campaigned on the union busting. he never mentioned that and he threw that out after he was elected. that is why we have these huge protests at our capital. we had 100,000 people. if you saw pictures of it, it was just amazing. people were so angry. he keeps claiming that he did campaign on that and he never did. this guy can look you right in a guy and he will lie. i've seen him do this and try to come off like he is so sincere. he calls himself an eagle scout and he is the son of the minister. he keeps bringing this up and it turns my stomach to listen to such stuff coming from this man's mouth. host: she is one of the voters involved in this recall race set

for june 5. we are talking about this today particularly because more money has been going into the state. recent polls have put governor walter no. democratic governors putting more money into the election there, that announcement yesterday. the two candidates are debating tonight. it's a good day to talk about all this. you are looking at an advanced read of the new york times sunday magazine. our wisconsin caller talks about this is never happened in their state like this. if we will put the headline back on the screen again. how did wisconsin become the most divisive place in america? this is written about in "politico" in mike allen's colorado. -- in mike allen's column.

that is an advanced read on wisconsin, which is our subject matter this morning. jacksonville, north carolina, steve is a republican. good morning. caller: good morning. i think that's what rick said in florida and get the mail on the head. they are talking about dividing wisconsin because scott walker

is trying to rein in the union's. there is 11% of the folks that live in wisconsin are union public workers. 89% are republicans, independents, and democrats if that are paying outrageous salaries. if it's not just wisconsin. this will happen all over the u.s. 10% or 11% unionized in the public workforce and their salaries and benefits are out of control and you can make a reasonable changes and bring them in line. it's not dividing wisconsin. its 11% of their population, public workers. how about 89% paying their salaries and taxes? it's crazy. host: tony on twitter -- let's go back to facebook for couple more comments.

next is a call from asheville, north carolina, terry, an independent. good morning. caller: good morning. the gentleman from north carolina and the guy from florida got it right. collective bargaining rights for public sector unions, the thing is they don't negotiate their pensions or their salaries with the taxpayers. they negotiate it with the politicians.

in north carolina we have all kinds of chevrolet dealerships. the union guys are still making $75 an hour, getting full pensions, benefits. they can probably retire at 55. that's while we bail them out at gm. i see a big problem with that. i can look at an empty dealership that we had before barack obama came to town. host: thanks for your call. and this story online from the journal sentinel --

governor nikki haley is traveling to wisconsin next week to campaign for walker. and there are lengthy stories about the june 5 recall race. tom barrett announced thursday the national association of police organizations, which represents more than 240,000 officers, support him. outside groups increased their support for tom barrett by $1.5 million. the democratic organization if it contributed $900,000 this week to the greater wisconsin political. front that is a national interest in the wisconsin race. next is lansing, michigan. julia is a democrat. you are on.

caller: thanks for taking my call. i would like to understand, is it our money that they spent -- with all the money the unions spend, why don't they put their money together and open up their own businesses? choose to put their money that they use it politically into their pension funds? why do the taxpayers get them to negotiate for their health benefits and their pension? i will withhold my taxes so you don't get paid unless i negotiate, as a taxpayer. i think those other two guys had it right. if it is ridiculous how the

unions want to pummel the rest of us, but they don't want to turn their money into themselves so they can make themselves better. why don't you pull your money together and open up your own car dealership? the question and the answer is it is too scary, but too risky. and they would have to battle their own union members for their wages. i think that's good. host: thank you. later in the program we will have a discussion with you about the advancing technology for self-driving cars. quite a change that would be all of us. that's in about an hour or so. and on facebook --

next is a call from salt lake city, utah. good morning to joe. caller: good morning. i would like to weigh in on this. either you have a classic example of what's going on in the country -- you have a stand- up guy like walker who is trying to rein in the budget in his state. all these entitlement people, these union liberals, they say we have a right to have all this money, we have a right to have all these benefits. they don't care if the bankrupt their state.

typical union attitude. what they don't realize is all these union companies are moving to the southeast, moving to other parts of the country to get away from that type of attitude to cut costs. whether they like it or not, the world is a customer now. going beyond the teachers, you can go to teachers in other parts of the country that would be just glad to have a job. this is the attitude of those people in wisconsin. i know them well. i used to go there every week. they think they are better than everybody. this is the same problem with all that northeast corridor. they have a right to this type of thing. all these liberals around the country, including obama, they think we have a right to an entitlement society. host: thank you.

lots of people on the line, so let's move on to twitter. robert writes -- also, we have a few e-mails on this. let's take a look. bill in california writes -- bob in venice, florida --

those are his thoughts in venice, florida. next is a call from chicago. good morning, doris. caller: good morning. i was just going to say the same thing that you just read. this is a referendum on the citizens united decision passed by the corrupt roberts court. the spending for republicans is 25-1. this spending is thanks to the coen brothers and the corporate shield called alex. they are the ones doing this. if they can get rid of all unions, they have free rein. koch nks to the coen br brothers. and the person who spoke about fdr's early views on the union,

they need to go to google and read about the enabling act of 1934 and the need to speak about hitler banning unions and opposition parties. he threw the leaders in jail. you should read. thank you. host: scott walker is not the only official facing a recall. let's look at the list of names that include the lieutenant governor and the state senator and another state senator and two other state senators all facing recall. the election is june 5. we're talking about the issues in that state and the larger issues involved with this for our nation. next is river falls, wisconsin, kelly is an independent.

caller: good morning, susan. i have watched this closely. governor walker went to get rid of the unions for the reason trying to drive up campaign funds for the democratic party. it is a tactic and it is legitimate. i would not be surprised if other parties might not use the same thing if they were in power. so i think that's the reason. my wife was a worker affected by. unions have never been so interested in her until scott walker got elected. -- my wife as a worker has been affected by this. my other concern is we have power plants that the state owns that the governor would like to sell to the koch brothers at a pennies on the dollar price. he appointed a mining commission to study the mining. when they were due to come out with their findings, he dismantled them and tried to

push through giving away mining rights to the brothers as well. i think it is an issue of economics that is concerned. i'm not a fan of scott walker, but i think the democrats putting forth tom barrett, they could not do any better than the same old song and dance, so i say we should not have a recall, that we should suffer the consequences of our election. host: how? are you going? are you going to how vote? caller: i am sitting this one out. host: democratic and republican governors groups are getting involved in this campaign. this is what was released wednesday in support for governor scott walker. >> we are providing facts. no opinions, just the facts.

no opinions, just the facts. host: we would like to show you another one. this is by the greater wisconsin committee. that is a left-of-center organization and critical of governor walker on his job performance. >> under scott walker, wisconsin is dead last in the nation in creating jobs. >> behind every other state. >> dead last in the country. >> we are still losing jobs. those are the facts confirmed by independent sources. take a look. walker cannot defend his failed record, so he has decided to produce his own job numbers. cutting education and job training to pay for billions in corporate tax breaks. >> is there is not working. >> where are the jobs?

>> we are still that last and we have to vote to change that -- we are still dead last. host: get involved in our discussion. we will show you some other stores in the newspaper briefly. we have been talking about student loans a lot. the student loan legislation has stalled for now. the senate rejected dueling republican and democratic plans -- also, in the papers, in the new york times --

also, prosecutors suspended a 2008 trial of a senator. they founded to the prosecutors involved in a botched 2008 corruption trial of senator ted stevens engaged in reckless misconduct but stopped 40 of firing the men -- and one more. the gsa figure behind the $800,000 loss vegas event leaves the agency. jeffrey neely, which saw him testify before congress. he took the fifth on capitol hill. and one more. the big change continues in the

newspaper industry. new orleans is the first major city not to have a daily newspaper. i'm reading it on the paper as i say that. molly is calling from california. good morning. caller: yes, the woman who called on the republican line progressbegan to spew of talking points, i would like to mollify her statements by using her own words. scott walker wants to privatize

everything and he wants to cut benefits and cut government jobs and that's right. the private sector only spends money they have. we don't have the option of taxing only their money in order to further our agendas. as far as walker, god bless him and god bless america. host: mali from california. itter --inbeck' on tw here's historical notes from our producers. governor barker would be the first to be recalled -- governor walker would be the first

governor to be recalled in our history. now to a democrat on the line. caller: i cannot believe so many delusional republicans there are. john kasich is in ohio where i am and is being investigated by the fbi for bribery, for promising people jobs in exchange for power. now you have scott walker in wisconsin who deliberately went after teachers and firefighters, the people we trust with our lives and our children. these people think we don't pay them enough. and the guys that said they think they are better than us, these people put their lives on the line for us. we trust them every day. we certainly don't pay them as much as the politicians. republicans, get it together. fighting against obama is not a

good enough excuse to fight against teachers, politicians, and police officers. we need to support the people who serve us and take care of us. host: thanks so much. running out of time. we had the voice of scott walker earlier. let's listen now to a union voice, richard trumka from earlier this month. >> i think that we will take out scott walker because he has had billions of dollars from big oil interest, they brought things in and he is still very unpopular. he is permanently unpopular because he attacked workers rather than creating jobs that he told the population is going to do if he was elected. host: just a few more minutes for calls. next is springfield, illinois. good morning to lyell, a

republican. -- lyle. caller: the lady that spoke about the policeman and the firemen, it shows so many people make comments and don't know what they are talking about. the police and firemen are exempt from the laws that the past per the governor. the thing i want to point out is that unions are a good thing, but they fail to recognize union leaders are in business for themselves and not for their people. in illinois, we have the teachers and unions and they have never once said anything to a republican or democratic- controlled legislature about paying their fair share of what the teachers' pension is supposed to be. the state is supposed to match

the teachers' pension. they have not done it for about 40 years. now we are going to start having a financial crisis. so here's a place where they want to tout the unions, but the union is not doing what it should have done. it should have taken the legislature to task, whether they be republican or democrat, and say you have to do this. now we have a real financial crisis in our teachers' pension. thank you. it host: charles writes on twitter -- next is a call from washington, d.c., anthony is a democrat. good morning. caller: good morning. what some people don't realize is 30 years ago the private sector used to have the business model for the country. we have basically since then

ship jobs overseas and the public sector has become the business model. what the gentleman said a while ago how the union workers are for themselves, everybody out here is pretty much for themselves. what we need to do is bring jobs back to this country and make the private sector be the business model again. but there's nothing wrong with the public sector making the money they are making or getting the benefits they are getting. the private sector needs to do a better job. thank you. host: next is columbus, ohio. john, independent, good morning. caller: how are you? i worked all my life non-union. i got disabled in september of 2005. they fired me the next day. that's why i can see people need unions. i have no money at all.

i have been flat broke. i cannot do nothing. i don't have social security. i think i would go with trying to keep the unions if you want a good economy. host: you will be the last voice. what's coming up in a couple minutes on the program, maria bartiromo will be our guest. we will talk about the state of the economy and wall street. we have a lot of big stories coming out recently, including j.p. morgan, facebook ipo, and we will talk about washington regulation of the markets and what effect that has had. later on, joseph white will be with us from detroit to tell us about new technology on the horizon for self-driving cars. and how would you like to take that to work in the morning and read your newspaper? final segment will look at. american at we will be right

back. -- our final segment will be looking at american veterans. >> there's an extra day of "book tv" this holiday weekend. aaron burr, a different side of the new york politician and vice-president, saturday night said 8:30 eastern. and the former director for asian affairs at the national security council on the impossible state, north korea. >> the dialogue on human rights is a ridiculous dialogue because you can tell them you need to improve your human rights of situation and their response will be, well, the united states has human-rights problems, too. that is not a comparable discussion it. >> that is saturday night at 10:00. also this weekend, operation red

wing, from his book about a navy seal at war. that's sunday night at 10:00. >> t welcome to old cowtown museum, wichita, kansas. [gunshots] >> today the mayor will talk a little about the problem we're having in the city with taxicabs. hang on for that. >> june 2 and june 3, "booktv and american history tv explore the heritage and literary culture of of wichita, kansas. >> a modest looking paper binding, but it contains an alphabetical list of the members of the senate and house of representatives done in 1831.

i believe this was issued only for the members' immediate use only, as it says. there were not supposed to lend this out, because it would tell you exactly where everybody lives, so you could go and point them if you did not like them. >> june 2 and june 3 on c-span 2 and c-span 3. washington journal continues. host: on your screen this friday morning is maria bartiromo. she has been covering wall street and the financial markets for quite a long time. she is the host and editor of wall street journal report." guest: good morning. host: in the paper this morning,

"the whole deepens for the euro zone." and in another, "europe plans for the worst." how will all this affect the u.s. and financial markets? guest: the european debt crisis has been front and center for global markets. what is happening in europe and the perception of it is affecting markets here. earlier this week we had a comment from the former greek prime minister who said considerations are under way for the country to leave the euro. that completely upset the u.s. markets, because the euro dropped in value and the u.s. stock market followed along with it. just any headlines or expectations of what may happen in terms of the euro breaking up is affecting global markets and the u.s. market in particular. second, europe is our largest

trading partner. as we see their economy deteriorated amid all this debt in various countries, we are seeing a slowdown in business. our exports going there and vice versa. so the u.s. is certainly impacted on a fundamental level by the weakness in europe. then there is the market disruption, the uncertainty as far as it who . is who. u.s. banks and european banks hold some of that debt in europe in some regard. when we see markets get disrupted and we see volatility, with the those bank stocks trade lower. the valuations in a number of european banks are down sharply because people are not sure where the exposure is in this very connected world. host: i want to give you our numbers to call to join in the conversation about the u.s. economy and about washington regulation in the wake of the 2008 meltdown and what effect it

has had on the financial markets and the banking system, if any. maria has been covering all of that. you can also tweet us and we have an e-mail address so you can be involved. we are talking about the banks, so let's move on to the j.p. morgan story. it's on the front page of the wall street journal again. let me read a little bit of this to our audience if they have not seen it yet.

so, it may be too soon to draw lessons, but what consensus opinion is developing on the street about what happened? guest: i think people believe they made aggressive steps with their own money and some of those ballots failed at -- bets failed. it was a stupid mistake. overall, people are looking at the trading loss at j.p. morgan and saying we did not realize the chief investment officer at j.p. morgan was being as aggressive as it was in terms of their own money. the good news is this is not deposit money. this is not taxpayer money. this is excess cash at j.p. morgan investing for j.p. morgan bank. the so-called london whale, the aggressive trader behind the trades, was way too aggressive.

you heard that from jamie dimon, who called it stupidity and excessive use of the firm's cash. as a result, the stock has lost a considerable amount of value. talking about a $2 billion mistake. some people say the losses could go higher. even $5 billion. the market value loss into a mortgage is $30 billion since this was revealed. so the firm is doing damage control right now. these were risky bets taken in the chief investment officer of j.p. morgan with j.p. morgan money. host: washington has taken an interest in this. jamie dimon called to testify before congress. is there a role for washington in what j.p. morgan does with its own money? guest: the broader issue is looking at the kind of risk that is being taken at j.p. morgan

and other major banks. it opens up a new can of worms and a new debate as far as whether or not we need more regulation at the bank's. on the one side, did you morgan will say what i just said and that is this is the bank's money, not impacting taxpayers, not impacting the broad public, so this is a j.p. morgan affair. , on the other given what we all have just been through in 2008 in the financial crisis and how we all know how interconnected the banking system is around the world and how one mistake can bring down the entire industry like we saw with aig and with so many banks in 2008, the other side would say this is clearly evidence that this bank, and the entire system, needs regulation and more oversight to ensure risky bets are not taken to possibly jeopardize the entire financial system. this is not going to jeopardize the entire financial system, but

it is a broader issue about the regulatory environment. jamie dimon stuck his neck out over the last year and was very vocal about regulators should relax, that it is to mucho regulation and we are trying to conduct business, this is too much bureaucracy. now he's sort of has egg on his face. the issue with proprietary trading and in many cases that is what this was, is the fact that the bank is making risky bets with its own money, but the regulators say at some point it is depositors' money. so this was not depositor money. it was not proprietary trading. what i have difficulty understanding is how regulators will actually defined proprietary trading. i have a hard time actually seeing the volcker rule being implemented in its current form, because if you look at a situation where let's say i am

j.p. morgan or a particular bank and i get a call from a customer who says i have 1 million shares of abc to unload, me as their bank, i have to do business on behalf of my client, so i need to sell that million shares of whatever stock that is. of course i am not going to unload all that stock in one showing. if i do, i'd really don't hold the stock market, i impact the market, the stock falls and it's a big sell-off and impact the entire market. so i will pick my spots as a bank. i have to get on the other side of that trade because that's my customer. want to sell 1 million shares. so i have to buy back 1 million shares and sit on it and figure out when i am going to sell it at the best price. for price. the question at the end of the day is, is that proprietary trading? am i trading from my own account

or am i acting on behalf of my customer, which is the normal business if of these institutions? that is very hard to define. if you cannot define what proprietary trading is, how would you implement it? that's being debated now appear that's why the vocal rule becomes cloudy. host: this gives us the kind of flavor of what washington is asking regarding j.p. morgan. here is a clip from a senate hearing. mary schapiro was before the committee as a democratic senator from new jersey, bob menendez, asking her who was to blame for the $2 billion loss. >> with reference to what happens at j.p. morgan where the huge losses there took place, have you determined to is responsible for that? >> no.

because we did not regulate the london branch of j.p. morgan .ank, tha our focus is on the quality of their risk disclosure and specific disclosures as a public company. when they talked about all the risks they faced as a business, and they talk about potential losses under their model, we are focused on the accuracy and timeliness of that disclosure. host: maria bartiromo let me ask you not so much to respond to that but to talk about the securities and exchange commission after dodd-frank. how have they changed their focus? what are american citizens getting from that oversight agency in the wake of a financial meltdown? guest: we are still watching the changes and anticipating changes. the issue with the securities and exchange commission is it does not appear that the sec has the firepower -- of firepower.

they need a much bigger beefing up of staff and much bigger and power meant to take on the kinds of things that is taking on under this new regulatory environment, because it is giving the sec much more oversight on top of hedge funds, private equity, the major financial institutions. it has not necessarily beefed up their own people. they need to have a stronger oversight of what is going on post-2008 and they don't necessarily have the people and place that understand the complexities to look to all the cases under their purview. host: our viewers are ready to

go and loss of twitter comments. geraldine is a republican from pennsylvania. good morning. caller: good morning. i have heard there are countries buying oil in either gold or their own currency. is this going to lead to currency wars? guest: the biggest effect on the dollar has been the implications for the euro and that is also impact in the commodities markets. all the happenings this week in europe have impacted the euro and sent the dollar higher. people will view the dollar as the safest bet in a risky market. we are not clear when it comes to a risky euro.

portugal, italy, spain may follow suit and that remains to be seen. i do not think that what happened. depends on the exit by greece. if that were to happen in an orderly fashion, i think the markets will stay stable. this country has the enormous debt that it has. the dollar is viewed as a safe haven. c these headlines pertaining to oil and gold. -- we see these headlines pertain to oil and gold. host: tony is an independent. caller: good morning. forget my voice.

i have a gunshot to my throat. there is nothing wrong with capitalism. there is up the wrong with people who have access to capitalism. they are greedy. the stock market has been down since 2000. nobody is making any money except people who are trading in and out of the stock market. when will we be able to create the atmosphere -- to prepare the market for higher levels? i have been a fan since 2000. the information -- i have a gunshot wound to the throat.

i am turning my life around. i was on the wrong side. people are reaping the benefits of the stock market. maria, i like you. you are forthright. keep up the good work. guest: thank you so much, tony. you hit on trust and confidence . u.s. when the market will encourage stability -- you asked when the market will encourage stability. the market dropped precipitously as a couple of years ago in a short period of time. things like the jpmorgan losses were people are confused and to the facebook ipo, the retail

investor feels gypped. they feel they are not getting a fair share. it will be tough for the retail investor to come back in with real confidence that the market is not rigged against them. they need to be the right policemen to send messages out that when there is wrongdoing, there will be consequences and they are watching things and overseeing and at the ready. they have to ensure that the rules aren't placed and clear enough for people to understand that it is a fair market for the retail investor as well as the big guy or gal. we're waiting for that.

when you do not get an execution statement on your shares of facebook this week until 2:00 p.m. the day the company goes public and the stock didn't open until 11:30 in the morning, you're scratching your head and wonder, "why am i not getting a fair shake"? the sec is trying to change market structure to assure that the flash crash does not happen again. we have not seen enough evidence that the market has changed enough and that the rule making is in place to ensure that people have that confidence to return. that's why you're seeing on volume numbers so low. people are more interested in protecting their money and

getting any kind of return. they are afraid and concern about the market structure. host: mary is a democrat. caller: thank you so much. you help me understand the economy. i watched the bill on hearings in 2008 and i learned a lot -- i watched the bailout hearings. normally people did not have objections to banks privatizing their profits. there is a problem when people are forced to bail them out. maybe c-span has done a program on this where they go through the banks, what they borrowed at what interest rate and

specifically how much each bank has paid the fed back at what interest rate. you talked about trust and confidence. i have seen professor william black on several programs in regard to a lack of prosecution of those who normally committed crimes during this process. he talked about during the savings and loan scandal and their work 10,000 prosecutorial refer roles and 1000 people prosecuted. then this guy who wrote "predator nation" has talked about the lack of prosecutions. host: i will jump in.

there are two issues. guest: how much the banks have paid back, that is public information. most of the banks have paid back the money they were given and the government has made money on most of those transactions. we're waiting for the closure of the aig situation. we know the government is ending its ownership at some point but that has yet to be concluded. much of the money has been paid back or has begun to be paid back and there is a schedule in place. all that information is public information. in terms of the second question -- host: dealing with prosecution. guest: this is one of the big

issues. enter cuomo -- andrew cuomo said people will go back into the water when they know the shark is dead. people will return to the market when they know the coast is clear, those people who created the problem have been justified, have been given the consequence. we have not seen a significant number of prosecutions and there are a handful of cases in terms of mortgages in some corners of financial services. we have not seen prosecutions in terms of big fish or any heads roll, if you will. t a very difficult to prove fraud -- it is very difficult to prove fraud over stupidity.

it has been difficult to prove that these people committed fraud willingly as opposed to or stupidstupid tbet call on housing. this is part of the frustration with the masses. they feel, "the rug just came out from under me. who is to blame and where is the person? how come i'm seeing my wealth disappear and nobody is being prosecuted for it?" that's why you have fingerpointing across the board on wall street. that holds a lot of value, what andrew cuomo said.

the regulators need to get back on that. there are guardrails in place and this will be policed. we do not know why people have not been prosecuted. pay. let's talk about ceo we have a tweet. the associated press has a big story on average ceo pay higher than before the meltdown.

host: in the wake of the dodd- frank, efforts being mounted and

we're seeing some protests. where does the issue of ceo pay stand? guest: i think the public has spoken. the numbers are mind-boggling. in some cases you're peeling back the onion and looking at the specific perks. i think we should have pay for performance. if a ceo performs well, then they see get paid whatever the agreement is. when you are seeing an individual perform poorly, there should be consequences for that. i am not one who believes that government should be regulating the pay of individuals. we have a system in place. in some cases, that system has

failed. the board of directors have not done their fair share of what is needed. an independent voice to insure that things are being done fairly. fight for the constituents and the employee's and the shareholders. assure the leadership team is being compensated in a practical and a rational way. some of these numbers are mind- boggling when you list the number of people that one individual is making more than all those people in government. it is up to the structure that we have in place, but somebody has to be policing that those people are doing their jobs. the boards of directors were in the pockets of the ceo's. there were okaying whenever the

ceo wanted. should the head of the company have both roles? is that too much power? it probably should be split up. you had checks and balances in place so the ceo is performing well if they are supposed to get such lavish perks. i think that is going too far, frankly. host: jake from florida. caller: good morning, girls. this role of the government does not make much sense to me. wall street and main street spend billions of dollars to buy votes. you have corporations that make

billions of dollars in profit and pay no taxes. they basically are never going to change. thank you. host: is john a republican from a detroit -- this is john. caller: good morning. would you say that dodd-frank is an amendment of what was glass-steagall? the sec chairman -- as people reporting to congress as they do periodically, i believe under oath, clearly misstated the well being of those institutions.

if you could comment. you are a wonderful for the country for people that view your network. >> thank you so much. i think dodd-frank is trying to get deeper into specific trading and oversight all of the various operations of the large financial institutions to ensure that there is not risk gone wild and ultimately will impact taxpayers in a broad and significant way. i would not say it is a mimic of glass-steagall. they look at things like the oversight of how money is being managed and how these firms are handling their operations that could ultimately be impacting

depositors and be impacting taxpayers. in terms of the legislation right now, we're still seeing the rules being written as we speak. that has created in some ways a new level of uncertainty for corporate america. we're not seeing decisions being made in terms of allocating capital and hiring new people or creating new jobs because these firms are saying, i cannot put new heads on the payroll -- which includes salary for those people -- without knowing how my business will change. i was talking to the head of a.i.g. about six months ago and i said, are you going to be considered one of the systemically important institutions, which would create

a whole new regulatory oversight panel watching a.i.g.?" he said, we do not know. if you're in his shoes, you will say, i'm not sure who i am answering to. i'm not sure if i am being considered systemically important. so i'll hold off with any big spending or holding off hiring or allocating significant amounts of capital in terms of investment and research and development until i have a clearer idea of where we are. as we wait for dodd-frank to be implemented, this is a time when companies are sitting on the record amount of cash. they could be putting that money to work in this economy but they are not because of the unknowns

and uncertainty. we need to have the rules clearly stated. that is where we are right now. this takes time unfortunately. these rules are still being written, to his extraordinary -- which is extraordinary. 30% of dodd-frank has been written and implemented. there is a long way to go. host: we have a comment from darrell. this is michael. you are on the air. caller: big fan of the show.

why is jamie dimon part of the fed? one is turned on regulated derivative markets -- why is there an unregulated derivatives market? host: jamie dimon having a seat on the new york fed. guest: he has had a seat on the new york fed for some time. you do what some people on the fed that are engaging in business to offer practical ideas and practical issues pertaining to what is going on in the world. in terms of the sec, not having

enough people in place to understand the complexities of this market is a real issue. i am not uncomfortable with banking managers on the board of the federal reserve. i think it creates an opportunity to talk about practical things. "this is how this rule making will impact my company and other companies." i'm not necessarily on comfortable with him having a seat on the board. jeffrey immelt is on the board as well, running general election. in some cases it is helpful having them comment and incorporate ideas into the rule making landscape. host: this is ron from pontiac.

caller: i have enjoyed you for years. i piggyback in on a previous call. if you could give a quick definition of glass-steagall and the uptick rule and tell us if that would make the sec's job easier and be able to preserve our banking system and the markets and avoid undue influences. guest: glass-steagall was put in place to ensure that banks that are handling the deposit money would not be engaging in riskier activities. so getting together a bank any securities firm was prohibited because of this very reason --

not to put that kind of risk and making risky bets and not putting depositors' money at risk. looking at banks as if, "let's ensure that these banks are safe and to ensure the depositor money is not impacted." as things change, banking supermarkets, the argument was made that this is a positive to have financial supermarkets where at one firm can do so many things because when you have weakness or upset in one part of the firm, a stronger part of the firm will offset the weakness and it is fine. we saw the meltdown in 2008 of some of these large institutions, that became up for debate. now there is a call to go back to the glass-steagall and go back to the idea that banks

should be banks operating as deposit institutions and securities investment banks should be something different. that is where we are in terms of debating whether or not these should be separated once again. when you look at j.p. morgan and the $2 billion loss, even though it did not affect shareholders and taxpayers except their stock dropped, it is raising this debate again. i suspect we will get a have the reaction to this. we will get a reaction from the sec and the oversight of more regulation. and of much better guard rails in place. we will see how this plays out. that was the aimed initially of glass-steagall. we're talking about a long time

and things change. consolidation happens. new products came out. a new investor class. globalization. summing things change in this industry to ultimately treat this idea that maybe we should be doing financial supermarkets, until of course the next crisis occurs. the sec is looking at all of this including changes in market structure like the uptick rule and like things to avoid the flash crash, to ensure that investors feel like there are guardrails in place to ensure that investors and depositors are not impacted. we don't have resolution on this yet. government is trying to make the case that more regulation -- i do not think more regulation is

as effective as better regulation. i was astounded during the 2008 crisis to learn that a.i.g. had 400 regulators. are you telling me that 400 regulators missed the fact that this firm had taken on an enormous amount of risk and potentially take down the global system? it is not necessarily more regulators and more regulations that we need, but the regulation to be strong and effective and the regulators to not be asleep at the wheel and to allow some of these bankers to take risks gone wild. host: one of our viewers has a definitive opinion. this is richard from florida. good morning.

caller: good morning. the banks that supposedly take back their loans, they did pay back 30%, but that money did not go to pay off the treasury bills finance the loan. it went to the general fund. that money is still out there just added to the debt. our economy is pretty much on life support. the federal reserve is printing money to monetize the debt. we have a president who does not believe in capitalism. he cannot and stated that publicly, that capitalism is basically failed. he seems to have a fascist

formal policies that he is putting forth. business and corporations are probably owned and publicly controlled. richard host:, thank you so much -- host: richard, thank you so much. guest: i do not think capitalism has failed. things do not always go in a straight line. you have to recognize where the holes are. at the end of the day, i think free markets work. look at facebook. the stock opened at $42 and plummets from there. it is well below the issue price.

markets correct themselves. people say facebook was wildly overvalued. compare that to a company like apple that is actually producing products, real earnings, real revenue. facebook might be at the end of the date a fantastic company that soars at some point. but markets correct it and markets got things into line. it was valued at $100 billion, but people realized this is not where it should be. i believe that free markets work. i believe you are going to have ups and downs, busts and booms. capitalism and free markets are messy.

i would not agree that capitalism has failed. host: as similar theme from facebook. maria bartiromo, thank you for spending part of your friday morning. have a good weekend. guest: thank you. host: we will be learning about self-driving cars. later, we look at america's veterans. we will be right back. [video clip] >> a better understanding of who

she was. there have been a lot of books. many people don't have the information. i happen to a been there. i knew her. >> clint hill. >> how humorous and athletic shoe was at times and our intelligence she was out rum boxes she was -- rambunctious she was. she put me to the tests sometimes. >> more with clint hill this sunday night at 8:00 p.m. >> actors join vets.

>> i said, what is it? you're giving me everything to jump with. >> he said we're jumping into ireland, aren't we? >> said, what does that have to do with me? >> how much do you weigh? "138 pounds." "how tall are you?" we do not want to go looking for you in spain. >> which wilson, william taft -- the legacy of the 1912 election. >> december 7, 1941, a date

which will live in infamy. >> tour the pearl harbor visitor center. three days of american history to become this holiday weekend on c-span3. >> "washington journal" continues. >> on your screen is our next guest, joseph white, and he joins us from detroit. we got word that there was a google self-driving car, and there you see it right there. we went down with cameras because we were curious. self-ncept behind a driving.

guest: if you buy a luxury car or it reasonably well-equipped bmw or audi, these cars have technology that automates driving like cruise control, lane departure warning which is a radar that looks side to side and seize if you're tripping out of your lane -- and sees if you are drifting out of your lane. take that several steps forward. you have a car that can see around it with sensors. systems are already on board cars.

you into grade debt and build it up -- you integrate and build it up. steer when necessary, see obstacles around it. it is not that big of a leap to get to a partial version of that. google has a car that will basically come when you whistle. in a way, that is where google is going. google looks at this as a great big data problem, an artificial intelligence problem.

they view this as a worthwhile thing to figure out for internal purposes and commercial purposes. host: we like to talk to about the topic of self-driving cars. two states allow self-driving vehicles to traverse their roads. advances in technology are needed. acceptance by consumers that you would in fact want to be behind the wheel of play self-driving car -- behind the wheel of a self-driving car. the american automakers -- are they investing any money in this? guest: the auto companies were

working on this before google was working on this. there are several different streams of research and intellectual energy that are going into this issue. the defense department has been working on the problem or the question of how to have vehicles that can basically drive themselves for a number of years. state-sponsored public contests where they have invited engineers to design and develop vehicles.t piloting that is one line of attack. most ofense department's it is fairly obvious. they want to have vehicles to operate without putting soldiers at risk. the vehicle can go to a dangerous area without putting a person at risk.

the auto industry has been working on these technologies that allow the car to see and respond to the environment around it. the auto industry will be cautious about taking the driver totally out of the loop of responsibility. step by step in an incremental way, the auto industry has been working on integrating these technologies -- steering, braking, greater vision, cruise control -- and a billy them into a system where all these working parts work together. now you have the high-tech world with google, and not just google. google is coming out and talking to their folks and the project

leaders on this as kind of an artificial intelligence data problem. they did not want to become an automotive hardware maker. that's not what they do. they do the software to enable the data -- all the information about where you are. google has a large franchise in satellite imagery and location. they want to figure, how do we integrate all of that? they believe there is a lot commercial applications. cars but maybe not just cars. everybody is coming at this and a slightly different angle. host: first comment is by twitter.

until all cars are self-driven, would be dangerous to integrate the technologies? guest: you do not want to have a car that is fully automated and that is struck by cars driven by cuban beings that are not behaving logically. maybe they are texting or reading a hamburger. the problem is designing an automated car that can respond rapidly to an unpredictable events -- a deer running across the road or a bad driver is cutting you off. the card is to be safe or safer than a human-driven car in order for it to work. that is a problem. i think you'll see this technology being phased in in a limited way over time.

audi and some other carmakers are looking at traffic jam assist where you can automate the part of your commute where you're sitting in traffic that is idling along at 25 or 30 miles an hour. if you had a cruise control system and a properly designed system to keep it in your lane, the car could drive itself through that. i think that is how you will see how this rolls out. that is the kind of question that technology has answered yet. caller: good morning. i was wondering what the economic implication would be because i could see there are millions of people who are depending on driving motor vehicles to make their living.

what would happen if we have a totally automated society where there were no longer be drivers? what would happen to all of these people? i could see the military would want to have it and maybe people with disabilities. just before you can produce something magically does not mean that you should. guest: look, businesses that hire people to drive vehicles around in predictable loops -- delivery vehicles -- google has people driving in these streetcars to gather data in their street view services. that's the kind of thing that this is would look at.

"can we take people out of the seats of these cars and not have to worry about having a real live person doing this kind of rote milk route kind of work?" the caller has touched on an important social economic aspect of this. i find it is businesses that often adopt these kinds of advanced technologies because they can make them pay where an individual consumer maybe does not see the value. ast: here's a description of self-driving world in "forbed magazine."

host: a future vision of a world with self-drive cars. we're talking with joseph white about this. good morning, rick. caller: happy friday. i like to drive. my father died of a heart attack. the idea of having a system that would keep somebody while they are fighting a court attack or narcoleptic or a case where somebody is driving a dui or

something like that, the car can understand the situation and keep them out of trouble, so to speak. hats off to google for thinking outside of the box. that's part of the great american innovation going in this country. host: one thing to wish strike anybody is the american's long obsession with cars, ever since the car industry grew in detroit. how do you envision a culture change that americans might not drive cars that have their own personal it tied up in them and might join rental car pools. that seems like a culture shift. guest: that would be a big business shift for the car

industry. most of us do not need to buy high-performance luxury sedans. that is an emotional choice. the auto industry makes money selling those. they don't make a lot of money selling $15,000 commuter pods. there is a risk of driving in the emotion out of owning a car and driving a car. that is one thing. the other thing is reality. traffic congestion is just a curse. you spend hours of your life rolling along a "freeway" at 40, 45 miles an hour.

it is not exciting. the consumer could be offered the opportunity to basically take is boring task and turn it over to a machine. i think the car makers are trying to get their heads around how to market this as a luxury convenience. you can engage your automatic chauffeur, but you can put it back in me mode and take off down the road and have a fun experience that they like to market. a quick comment about the point a car monitoring your health. this is part of the package in terms of the technology that is being researched.

there are some cars that have technology that can in a basic white monitor your condition. if your head drops, they will know something is wrong and they can slow the car down. this is one of the goals of the technology, to have a car that can monitor your health and monitor whether you had too much to drink and shut down until you are sober again. host: shane is a republican in maine? are you there? next up is david. caller: i have something i observed on television. i saw on television that the

pentagon is paying for experiments, but they can learn on their own. this smacks of the movie "i robot." there's the possibility of liability. if the cartel somebody the person is liable -- if the car kills somebody, the person is liable. guest: then be addressed the liability issue first and. that is the big hurdle for the technologists and the companies that are working in this field. i have talked to a couple of experts about this. from a policy perspective, there has been relatively little talk about this and no conclusion.

from a business perspective -- if the premise of the technology is that it is could because it improves safety, it cuts out the driver error, or reduces drivger error, the machines are pretty safe at this point. the drivers of the problem. the insurance companies need to be convinced that automating a car will make them safer. the manufacturers will be where it that they will be sued. the cost for that risk what to be priced into the car. the consumer my neck of the benefits of lower insurance rates until years later.

"it is true if the automated cars are much safer." there's a lot of work to be done on this for a truly automated car to becoming a viable consumer product. i think itawyer, but is highly unlikely that the auto industry will be able to field a product that says, i am an automated car and i will keep the safer and that's why you should buy me. the legal system will sue manufacturers because the manufacturer has the money. that is a big problem in how to manage and priced the rest. it is in the indices stage of being worked out by the legal

profession and by policy makers. britton asksall br -- guest: yes. almost for certain. there is going to be a manual override. i talk to people in the auto industry about this. they have lived in this world of liability for some time. these systems will have to be such that you have an override in a situation where something out of the ordinary or unpredictable happens and requires human intervention. it will be a while before machines are able to process unpredictable events quite as

rapidly as a human being might. host: our twitter community is having a lot of fun with this. here's one example. host: here is another. we're talking with joseph white from the charred about the concept cars that are self- driving. rose is a democrat in memphis, tennessee. caller: hi. thank you for taking my call. i have talked about this for about 20 years. a computer-integrated and a broadband system and you could

order your car and go online and order a car and have it pulled up in your driveway and it will be programmed to take you to where you want to go. this would be owned by -- you would not own a car. you would call a car when you needed one. it would take road rage out of the picture. have a nice day. host: here's another liability question. guest: i do not think so. that's the problem. if you are on the road and have a one- or two-ton vehicle, it

will be a long time before an insurance company would say these things are perfect and they do deliver on the promise that some people have put out there that we could reduce accidents by 80% or more by automating driving and taking a human beings out of the driving process. it will be years and years and years after the introduction of these technologies before people are comfortable with believing that the technology is that good. i suspect there will be a lag between you buying your first self-driving car and the insurance. can i make a quick point about

the earlier caller who had a vision of a car that is connected to the infrastructure and you could call for it and it would come? she is exactly right. that is one vision of how this could work. the roads, traffic lights, and the restaurants and the businesses around the highway would communicate with these cars, which have these locations sensors going all the time and you would have two-way communication and you could separate car-sharing service and signal for the car to coming get you and go off down the road. that is the vision that people are working on. host: another comment on twitter.

joseph white talking to us about self-driving cars. caller: i am a scientist geek, 75 years old. i think it is time we combine the car that we're making in india, compressed-air car. it will reduce air carbon footprint. -- it will reduce our current footprint. it is supposed to come out shortly. we should get that car with your technology on our market. technology on our market.