domestic abuse two times. he was abusive. she was trying to get away. >> i hear you. justice is on the way, viewpoint with eliot spitzer. >> good evening, i'm eliot spitzer. this is viewpoint. jp morgan chase ceo jamie dimon is practicing damage control following the $2 billion loss last week. with every agency investigating jp morgan chase, why is dimon still on the board. the nation's biggest bank took action over the weekend. two london traders involved in the loss said to be leaving, and

ina drew resigned today. mere window dressing if you ask me. and jamie dimon weakened critical aspects of the frank dodd bill. don't be fooled by what he said on "meet the press"." >> sec should look at this. that's their jobs. they'll come to their own conclusion. we have supported 70% of dodd. we support too baggy to fail. we want the government to be age to take down a bank like jp morgan. i think a lot of dodd frank will accomplish that purpose. >> don't be fooled. he fought against the important stuff. his overall success while admitting it's trading failure would cost more than money. >> the company is going to earn a lot of money this quarter. we made a terrible egregious mistake.

there is no excuse for it. we hurt ourselves and our credibility, we'll pay the price for that. >> to senator carl levin the cries will be closing the loophole the banking industry created to allow jp morgan to make it's risky trade. >> the question is whether we'll tick to the law as written which would prevent us were bailing out banks again. they will lose their battle in washington to weaken the rule. that is the real price. >> others may also pay a price for failure both to fully regulate the banks and punish the bankers who took down the economy in 2008, including president obama. who you may recall had nothing but praise for morgan and it's democratic ceo three years ago. >> there are a lot of banks pretty good managed, jp morgan one of them. the ceo should not be punished for doing a pretty good job managing an enormous portfolio.

>> and, in fact, the president had kind words again to say about jamie dimon, and more. i'm joined by jimmy dennis kelleher. he knows this stuff inside out. also economy reporter ben white and columnist dan gross, author of "better stronger faster:the myth of american decline." i read a part of it this week, you'll be glad to know. let me ask you, are these banks simply too big to manage. they're rife with conflicts of interest. can anybody run them and shouldn't we just break them up? >> i think it's proof positive that they can't be run and managed when supposedly the

greatest banker in the world has no idea what is going on in one of the biggest profit centers in his bank. i think the debate is over whether it's too big to manage, or is it too big to fail. the question is do you break them up? do you regulate them? do you play the cat and mouse game when you try to regulate them? >> we haven't done none of that meaningfully so far. you made a fascinating point earlier in the day. the profits that came out of the very section of the bank that made these trades were 25% of the bank's profit from last year. what does that mean to you in germs of what jamie dimon what was going on there. >> bloomberg broke a story with how jamie dimon transformed the chief investment offense from a relatively safe, low-risk hedging and personally transformed it into a hedge fund where he turned it into a profit center.

a lot of the trading guys, they happened to end up there. >> you know this stuff inside out. tell me if i got this right. i'll translate for real people. what he did was turn this little piece of the bank into a hedge fund with the bank's own money. >> that's exactly right. >> stuff that would have been prohibited under the dodd frank. >> that's right. the problem is you don't fire one or two people down the road. jamie dimon's fingerprints are all over this operation. when you have 120% of the profit, you better believe that jamie dimon was paying attention. >> what do you do? you have this bad stuff a couple of years after we thought we done something about it. deja vu all over again? >> it seems to be. you run into problems for president obama, who said he was going to get tough on wall

street crackdown on wall street, regular well wall street, and then you wake up with jp morgan losing $2 billion. i think it's interesting that president went on "the view" and said jamie dimon was the best banker. that's not what people want to hear. they want to hear what are you doing to make sure this doesn't happen over and over again and the banks are losing our savings. >> dan, you're the optimist. the title of your book makes me happier just reading it. i want to go out and buy a balloon. >> in london they trade those balloons. >> i'm not going to be buying anything in london these days based on how they perform in the long run. this $2 billion is not a big number in the balance sheet of chase, but it's reflective of what's going on in the company that's president bush,. >> the shareholders should be

anger. and in london they've been voting ceos out over high compensation and poor performance. jp morgan's stock is the same place that it was in 1997. shareholders should be getting angry, not just the regulators. what we need to do is transform some of the insensitives. jp morgan is not just cammibling with their shareholders money. they're gambling with the depositors money and our money. the fdic ensures their deposits. back in '08, '09, they said from the financial industry you go issue debt and we'll guarantee it because they had a tough time selling it. jp morgan issued a 10s of billions of debt, and they have not yet refinances that. apart from the free money they're getting from the fed they are using our guarantee and our money in effect to do these sorts of things. i think this should shut them up

once and for all when we say don't go gamble, don't place bets on redifficulttives and don't run an offshore hedge fund without cash. >> let me summarize this. they can issue debt, borrow for less. they have an advantage over all their competitors. they're using our money to take big risks. if the risks come in, they take the upside. if they lose we bail them out. this is not capitalism the way i learned t which is why there are a lot of bankers who oppose it. there are bankers out there who say we're at the competitive disadvantage and this isn't fair. >> absolutely. size in this world gives you greater advantage. the answer would be to save jp morgan you wan to be as big as you are? you have higher capital standards instead of putting aside $8 for every $100 you have in debt. you want to be this big, you put down $12 or $15.

you're amazing so much stuff we'll have to come to your question like in '08 and '09. it's the most costly it is for you to be big. >> dennis, let me come back to you. there is something called the safe act which would cap the size of the banks in percentage to deposit and gdp and technical stuff we don't need to get into. would this have legs, they would be manageable in theory because they would be smaller. >> it should be done. others.i support it, and others should support it too. the lawyers and lobbyists have locked down the regulators. they're swing from the fences with their own money back stopped by the the american taxpayer. the reason why it's happening is there are no rules in place.

>> the reason why there are no rules in place it has kept franked dodd from being implemented. i think it's going to be aired on "the view," i think tomorrow. let's get that on air for a moment. >> jp morgan is one of the best managed banks there is. jamie dimon, the head of it, is one of the smartest bankers we have, and they still lost $2 billion and counting. precisely because they were making bets in these derivative markets, but this is why we passed wall street reform. >> let me give you an alternative statement the president could have made. they tried toe viscerate, destroy and read the loopholes that lost $2 billion of your money. if they don't indict somebody by next week, he's fired. why didn't we hear anything like that ever from this administration. >> he can't say it. when they're doing the dodd frank bill in congress, they did

invoke the rule. they didn't say what proprietary trade. nobody knows what goes on there, and there was not a bright line written into the rule that says you cannot take these giant bets. >> a lot was left to the regulators, but one thing that is clear and that's the volcker rule. he's too well egg connected. keep in mind, eliot, on april 13th when he said there was no problem here to may 10th when there was a $2 billion problem here. 850 million shares of jp morgan traded that month. there is a violation of securities laws. eric holder is not going to

investigate jp morgan and jamie dimon the way it should be done. we need independent counsel to look into what happened. >> dan, let me come back to you. you're any brilliant economic voice, but a political question. is there going to be an enormous problem for the administration if they don't investigate. there are 1,000 theories of violations, lawyers are going to be sharks with blood in the water. does eric holder have to say we have a serious problem and make someone look at it. >> i think this is complicated. jamie dimon was obama's go-to banker and some of what went on in '08 and '09, obama said i'm going to call jamie. remember when he was out in chicago, he's a known democrat. you see him still kind of love-bombing him. bankers have very thin skin. and something else is going on here, president obama today or yesterday was at a fundraiser of

the apartment of someone from the blackstone group. all this famous falling out of wall street and obama and the broken promises and this and that this is still a very important source of campaign cash, and he's right in the thick of it. do in the think that romney owns wall street as a fundraising source. some how whether it's in his rhetoric, i think that's part of thecal clues that is going on. >> they'll hedge on their politics if they can't do it on the street they'll never stop doing that. but what you said, dan that is exactly right. there is no real poppism populism in this case. he could have said it a thousand times and the contrast in my mind when fdr was president and he met with the bankers, he said i'm holding the pitch fork, and if you don't begin what needs to be done to reform this economy

i'm going to use it. president obama said i'm the only thing standing between you and the pitchforks, a very fundamentally different emotional standpoint. >> both you and dan made the case why there has to be an independent investigation, not one that pushes it past the investigation, but an independent investigation that is done within a very short time frame, 90 days, let the american people know what is happening. >> too many lawyers around this table, it can be done and back quickly if you have the backbone. dan, should jamie dimon be on the board of the new york fed? >> no, and this goes back in the late 20s when charles mitchell and other people of the big new york banks of the board of the new york fed and stopped them from doing things that could pierce that bubble back then, the new york fed needs a regime change. >> so you're going to stage a coup, is that it? >> it's called the last spring.

>> you know, it's a concept of interest that would not be tolerated anywhere. it's absurd that the biggest banks of this country control how they are he's going to be regulated in this country. that's absurd. >> banks can regulate themselves and can be seen serving the public interest and regulating themselves. we see them getting in this trouble time and time again. he needs to be off the board. >> one of the grand ironies is the board has looked at a, b c directors, the c director is supposed to represent the public. one of those board members runs the new york city partnership which is nothing but a voice for the investment bank. it is the height of irony conflict of interest rife in this thing the failed regulatory body out there, it has been since the daytime geithner has been there. all right many thanks for

coming on the program tonight. >> thank you. >> thank you. >> thank you. >> the lest wing hates welfare. senator bernie saunders talks about the tax money we pay to oil, coal and gas companies later on viewpoint. the only way we're going to solve the world's great vexing problems.

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the vote. and those the campaign largely centered on local public spending there is a lesson to be learned from the re-election of the social democratic leader, a new force in german politics "p" while merkel's campaign focused on budget tear restraint and fear mongering of the deficit kraft understood that hysteria would not work. she brought a policy that would not punish children and reduce investment in education. false short-term hysterical does not work. measures in france, england and greece, the dominoes keep falling in europe. mitt romney should take heed. >>the guys in the middle class the guys in the lower end got screwed again.

>>i think you know which one we're talking about. the overwhelming majority of the country says"tax the rich, don't go to war." >>just wanted to clarify that.

♪ chase has tried to hard to seem the good banker, so charming, so

gracious, yet all the while he has been lobbying, pushing and weeding aim semblance of reform on wall street. he sugared off the cataclysm of 2008 as just something that happened like the weather. no reason for structural reform. well, now we have reasons, at least $2 billion of them. and it's clear that chase has had this dissorted incentives that have ruined other big companies. in addition to all that dimon sits on the board of the new york federal reserve bank. the very organization that is supposed to oversee his bank. the organization that regulates what his bank does. the group that he thinks should relax the rules for thinks kind of gambling. so here is a modest solution. dimon should resign from the new york fed board immediately acknowledging that he can't be on the board while also lobbying it, and that he doesn't control risk in his own organization so well. this conflict of interest is so obvious that it defies all

rationalization. for a decade the new york fed has staled to pick up on the significant wall street threats. and maybe that's because the board has the very voices that helped cause the failure. occupy wall street coo seen focus on this a tangible on jebtive to capture so many of the structural flaws in our banking system. it's bad enough that the bankers themselves controlled the new york fed board for so long. what is more appalling is that they still do. as elizabeth warren and i are demanding, along with many others. dimon should resign. these my view.

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tequila lime tacos. [ man ] delicious! [ male announcer ] it's festival of shrimp! for $12.99 try any two shrimp creations like new barbeque glazed shrimp. offer ends soon. we're servers at red lobster. and we sea food differently. >> the happy index is up. higher than it's been in year. but don't tell the folks who are unit employed or whose homes are being foreclosed on. never mind that, we've never been this happy although i'm not sure i buy it.

let's bring in dr. robbie ludwig. there is a poll done by gallup as legitimate of a group you get, that says we're happier than we've been in years when all the headlines are bad. >> my first thought was did they interview anybody in new york city because who is happy here? and i wondered if there was some political stint component to it. we're always having information in the news recession people are doing better yet many people are still out of work. when it comes to happiness i'm suspicious. first of all, who is happy all of the time? it's a very hard motion to measure. >> you're in the business of trying to get inside people's thoughts and more serious moments. do people when they're even on their couch do they tell you if they're happy or sad doctor do you have to discern that and measure it in other ways. >> i think they do.

my patients have to be encouraged to talk about when things are right, they have to use that to talk about things that are wrong. but there is also a sense of anxiety. they are feeling good and then something is going to happen-- >> things are so bad we're happy because it can't get worse. but when things are good, we think it's going to get worse. >> sometimes people's values change. somebody lose as job or their finances aren't what they want it to be. they restructure what their value system is, and maybe they turn to support networks, and they feel more supported by those that they love or they decide to pursue something that they always wanted to-- >> you're talking about a small slice of society. it could be big numerically, but we're talking about a poll that says we're all happy. from the season, the flowers are blooming? >> i've seen there are are studies that there are more suicide in

the spring. but people are more happier when it's light. they're happier when they're connected socially. when they feel challenged. when they're hopeful, and in some cases when they're more spiritually and less materialistic and competitive. >> so ten things that do not apply to new york. >> nobody is happy here, we know that. through is also a genetic set point to happiness. you can interview someone who is very wealthy and successful, and they're the most miserable person in the world. why their genetics. >> i do have a hard time believing you can measure happiness throughout the society. but we have been through a cataclysm. the nation went through a stress recession foreclosures, loss of employment, self of debt. as we're starting to come through it there is a sense of

resurgence. >> i got through something that i never thought i could get through. i'm resilient. i'm hopeful, and i i have what it takes to get through the dark thames. but basically nobody is happy throughout the day. it's really a place you aim to visit for often than not. >> can i go out on a limit and say people who watch more cable are happier. >> there is a study that people who watch television are happier happier. >> and cable news in particular. >> i think more people are taking more anti-depressant medication. >> you're now talking as a serious doctor. there is an increased prescription of-- >> yes, it used to be you have to be majorly depressed but once prozac entered the mix more

people could take anti-depressants and did because we don't like to feel negative and that would help them feel brighter than darker. >> and we're-- >> we don't want to feel bad. if someone were to ask you how happy are you, i'm feeling great, but how true is that. >> i think you found the better theory, who is lying to those pollsters. when someone asks you how happy you are, you're not going to pour out your guts to them. >> no. >> psycho therapist, robbie, thank you for being here. we'll go to the war room with jennifer granholm. we're always here at current tv. thanks for watching.