15th. bill, that is truly frighting. what makes people want to do that? bill: will look great in hd. perfect thing to watch from here on television. martha: frightening. bill: have at it. mid-june. martha: "happening now" is right now. have a freight day everybody. jenna: keep your feet planted firmly on the floor. fox news alert. several wildfires threatening homes in arizona. total of five fires burning since this weekend. one of the largest, the sunflower fire already charring some four square miles inside a national forest. mandatory evacuations ordered as crews rush to get it under control. we have a live report from arizona coming up. jon: more fallout from jpmorgan's $2 billion debacle. one bigwig already stepping down. more heads could roll. the dow sliding today with new questions about regulating big banks.

jenna: some new images raising a whole lot of questions about iran. exclusive pictures obtained by the ap might show a secret chamber inside one of its reported nuclear facilities. we'll have more on this coming up. jon: what is a good 28th birthday present? how about 100 billion ipo? how facebook's 28-year-old ceo will celebrate his big birthday week. it is all "happening now.". jon: there is brand new fallout from a multibillion-dollar blunder at jpmorgan chase. makes you feel better about your monday morning, doesn't it? good morning, i'm john squat. jenna: i'm not sure about that. at. jon: at least if you didn't make the bad trades. jenna: everyone makes mistakes. you hope they're not a couple billion dollars worth. i'm jenna lee.

the big bank's chief investment officer retiring today. more top executives are expected to step down. there are shockwaves reverberating from capitol hill to wall street. you see where the dow is now. not everything going on in the markets today has to do with jpmorgan. we'll get to some of that a little later on in the show. when it comes to jpmorgan, shares are down another 2% today. the news comes just days after jpmorgan chase announced it lost a staggering two billion dollars in that bad trade jon was talking about. that is sparking new calls for federal oversight of the big banks. jamie dimon, the ceo of jpmorgan chase, admits the company simply took on too much risk. >> this is a stupid thing that, you know, that we should never have done but we're still going to earn a lot of money this quarter it isn't like the company is jeopardized. we hurt ourselves and our credibility yes, we have to fully expect and pay the price. jenna: he is out in front of this. peter barnes with the fox

business network and joins us now. peter what does this really tell us? and what are you hearing about the state of our banks today? is this just a jpmorgan issue or should we take a look at the entire financial sector? >> reporter: there are some consumer advocates are concerned if jpmorgan can screw this up and maybe other banks not as well-managed might screw it up as well. so there are lots of questions about the entire banking sector this morning and over the weekend and going forward. right now, it just seems to be a one-off. it seems to be a problem just at jpmorgan chase. it made a bad bet. jamie dimon saying it was you know, a bad judgment here on a macro economic bet on the global economy. and so, but regulators are all looking at this right now, jenna and watching it very closely. jenna: i wonder what the response would be, peter, if you ask some of the regulators in washington how they regulate stupid, right? that is what jamie dimon is

calling this. this is a stupid mistake. is this a mistake that could have been regulated at all, peter? >> reporter: that's the big question because right now the federal reserve is finishing up the so-called volcker rule which was part of all that financial regulation reform back in 2010, that dodd-frank legislation, and they're struggling with the issue over what is a speculative bet in the financial markets and what is legitimate hedging of a portfolio. jamie dimon says that this mistake was the result of legitimate hedging and result, regulators do not need to impose even tougher rules over the banks but consumer advocates and some politicians are saying no. this is, this was a speculative bet and we need very tough rules to make sure that it does not hurt these banks. that the taxpayers don't have to come back and bail them out and that, this protects the banking system and the economy going forward. jenna: let's talk a little more about that speculative

bet. because the bet was, peter, on an economic recovery. that is the way they were positioning this big bet. so what does that tell us about the economy overall if it was a bet on the economy recovering and that bet didn't come to fruition? >> well, actually looks like it was a bet on top of a previous bet on direction of the economy that they were trying to correct, according to some reporting over the weekend. but, the banks says listen, we own securities basically, debt in major corporations that have business around the world. it appears they might have been trying to hedge the risk problems in europe which have developed over the last several weeks. you know, we've seen a lot of problems out of europe and it is in a recession but then it looked like perhaps the original bet on a recovery was going wrong and they were trying to come in behind it and, with the recession in europe try to fix it. it is unclear.

they have not announced the details. we should get more details as the quarter continues. jenna: will be interesting to see when we do understand what happened here, peter. the confusion leads to a lot more anxieties what is going on with the economy. >> look at markets today. jenna: absolutely. has a hot to do with europe to your point. we'll be talking a lot about it. peter barnes with fox business. >> reporter: thai. jon: let's talk about another big money case. john edwards' defense attorneys set to call their first witnesses today as the lawyers lay out their case that edwards did not knowingly use campaign contributions to cover up his affair with rielle hunter. question whether edwards or hunter might take the stand. jonathan serrie outside the courthouse in greensboro, north carolina. how likely is it that one of them might testify? >> reporter: first looking at edwards, calling your own client to testify always has some risk for the defense. but remember, john edwards is a skilled trial lawyer

who made a career of convincing juries to come on his side for a very difficult decisions often. so you may see the defense wanting to use his persuasive skills, not just as a lawyer but also as a politician to present his case directly to the jury as only john edwards can. now, rielle hunter is more of a wildcard. her duringrmer associates trial testimony as a loose cannon. someone they were always worried about what she might say publicly. the prosecution never called her to testify. she may be even more of a liability for the defense because she brings up memories of the affair and all the pain it inflicted on john edwards' cancer-stricken life elizabeth. jon: i guess the witness list includes former campaign election officials as well. what are they expected to talk about? >> reporter: yeah in fact on the stand was laura haggard, who is a former cfo for the edwards campaign.

she started talking about all the money that was going into the funds that were helping to keep edwards' mistress hidden. she at the time had said that it was not considered a campaign contribution. the prosecution objected to this and so now they have taken a break and the judge is going to decide whether this testimony can be presented to the jury or whether this is something that needs to be left up to the jury. this opinion that the money involved was not a campaign contribution. these witnesses are really trying to shift the focus from the morality of the affair to the legality of the cover-up that followed. we got a hint of this strategy on friday when defense lawyer abby loul lowell unsuccessfully that the case should be dismissed. lowell said quote, no one is going to deny that mr. edwards lied and lied and lied and lied. then the government is going to say, see, he lied and i i'll say, yes, he lied. >> they have to as part of

the defense embrace the lie in front of this jury or multiple lies and at the same time say but that's not what he is charged with. he is not charged with having an affair. he is not charged with lying about having a fair. he is not charged about lying about having a baby. he is not charged with being a liar. he is charged with campaign expense laws. >> this money allegedly went to rielle hunter arguing the money represents private funds, not campaign contributions and that they were intended to protect john edwards' wife from finding out about the affair, not protecting his campaign. and again laura haggard, this former cfo of the campaign, was about to testify that she did not regard these contributions as campaign expenses but right now this argument going on between the defense and prosecution, whether she's allowed to say that for the jury or whether this is an opinion that the jury

needs to come up with for or against on its own. jon? jon: jury has a lot to sort out. that's for sure. jonathan serrie, thank you. >> reporter: indeed. jenna: new questions about what congress is really doing on capitol hill. members are turning out a whole bunch of bills but some are now saying those bills are about generating fund-raising pitches and campaign attack ads than actually helping the country. jon: what is congress doing or not doing? plus a suspicious diagram taken inside a test chamber at one of iran's military sites. it is now fueling fears about a possible nuclear bomb threat from that nation. jenna: plus facebook founder mark zuckerberg celebrating a special birthday today and what a present he is getting as facebook prepares to go public. we'll have the details on that coming up. down here, folks measure commitment

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jon: congress is hard at work churning out plenty of bills but very few of them will become law this election year. both parties accused of crafting legislation just to make the other side look bad come november's election. with democrats and republicans both focused on fighting for control of congress, can they actually get anything done before november? let's talk about it with tom beavin the executive editor at "real clear politics".com. or reel clear politics i should say. tom, thanks for being with us. >> thanks, jon exlet's pretend you want to get important things done in this country. you could produce legislation that would protect women from violence. keep student loan rates low. you could build road and bridges. those are all bills pending before this congress but virtually none of them has a

chance of passing. isn't that true? >> that's true. and to your, your intro, it's because both parties are, we're in an election year and it all boiled down to sort of posturing. beyond that, take the student loan bill, for example. the house voted for that bill but voted to fund it by cutting spending, cutting a piece of obama's health care legislation which no democrat supported. you had a bill in the senate, the senate wrote that bill and they supported funding of student loans by raising taxes which no republicans are going to support. they're viewed as poison pills to either party. so you have a lot of that going on as well. nothing will get done in this congress. irony after the election is over, the lame-duck congress will have to take up not just smaller bills like this but huge, huge issues like taxes and entitlement spending. all that stuff will have to be done between, you know, november and the new year when the new congress gets sworn in. jon: the last time around in

2010 when we had congressional elections we had a huge wave of incoming republicans especially those with tea party support. they were elect if i havely elected to cut spending and reduce the deficit, right? >> that's right. what we have going on we have two parties with drastically different visions for government and that shows up not only in the legislation but also in, again, the tea party freshman, they feel like they were elected to stop president obama and the democrats agenda and not to compromise on their principles. so you have two parties that are at loggerheads and right now because the democrats feel like they have a shot at retaking house, only need 25 seats and because republicans feel they have a shot retaking the senate, only need about five or six seats it is all about trying to posture and position themselves for possibly winning in november and obviously you have the presidential race looming over everything. jon: doesn't this happen each time around? i mean every four years or maybe every two years? >> sure.

in election years, that's typically the way it gets done or the way things happen but it does seem to be somewhat acute because of, i think the first part of obama's administration republicans sort of felt like with stimulus which very few of them voted for, health care legislation which no republicans voted for they really feel like the well has been poisoned. i think two parties in addition to having different views they really don't like or trust each other. they portray each other as having impuning each other's motives for what they're trying to do and calling each other nasty names. you have congress sitting at about 15% approval rating. they have been down at that level for a while which, basically relgates them to having support of only family and friends at this point. jon: doesn't the advantage go to the democrats hear because the president can.his finger at congress and say that is do-nothing dysfunctional organization? >> from the president's perspective yes he can point to the house. democrats in the senate

don't like this argument very much either because they're part of congress and obama is portraying them as part of the problem. he can try to portray republicans in the house that way. on the other hand republicans can portray democrats leading the senate, point to the fact harry reid and democrats are supposed to be leading have not passed a budget in over three years. this issue will cut both ways. you will see both sides angling as best they can to make the arguments come november. some say --. jon: some say gridlock is good thing because the government can't get in the way. tom beavin from "real clear politics". thank you. >> thank you, jon. jenna: to arizona the battle against growing wildfires there. the most dangerous is the gladiator fire which doubled in size overnight. it already destroyed one home and a small town is in the danger zone. alexis vance, fox affiliate, kfaz, is stationed the 0 miles west of phoenix. what is the latest to the

ground right now? >> reporter: well the town is called crown king. like you said it is about 90 miles northwest of phoenix and the latest from the ground you can see it, it is windy here. fire crews are starting to move in 8:00 a.m. arizona time which is about now. there is targeted time to move in to really fight this fire. they will deal with these winds, 30 to 40 mile-an-hour winds. as you know fighting fires that doesn't help. conditions are very dry. you're looking live at this smoke and flames are coming so close to the homes here. one home already destroyed. a couple of buildings. this town is an old mining town so we do get a lot of visitors and tourists here. they have all been evacuated. about 250 people live here full-time. and those are the people where some have gone but some have chosen to stay behind in their homes and wait it out. and it is really a risk because you're seeing how close the fire, how close

the smoke is coming to these homes and like you said, already one home has been destroyed and it is, i mean 100 yards away from a lot of other homes some there is a huge risk here this morning. fire crews back out there. they got back out there. they watched all night t doubled in size from 300 acres to 600 acres. they started fighting it again this morning. jenna: we'll continue to watch the developing story. alexis vance, from kfaz. thanks for joining us today. more on the fires in arizona as we get them. jon: the winds causing problems there. there is dangerous weather on tap for folks in sever parts -- several parts. country. extreme heat, heavy rains and possible tornados. we're tracking it all in the fox weather center. we'll give you the very latest. fresh concerns about iran and its nuclear ambitions. the associated press focusing on a new image surfacing

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jenna: big news is breaking. secrets of iran's nuclear program revealed in picture now according to a new report by the associated press. the ap is releasing a rendering, a rendering what a an informant describes as sort of a secret chamber used to test triggers of nuclear explosions. it comes out just before world powers will sit down for the next round of iranian nuclear negotiations. we wanted to take a closer look at this with jim walsh, an international security expert as mit's international studies program. a lot with this associated press report, jim but how significant is this? >> it relates to what has happened in the past. i think everyone agrees,

u.s. intelligence, foreign intelligence and iae, international atomic energy agency all say prior to 2003 iran had a weapons program. they were violating the nuclear non-proliferation treaty. then the u.s. intelligence community believes in 2003 the supreme leader put a halt to that and stopped it. but nevertheless there are facilities and other sorts of activities that may have continued in a ad hoc manner. this is one of the things the iaea is trying to figure out. was this facility used in the past in support of a weapons program? jenna: you're saying it could be facility once used or no longer being used or still potentially be an active facility? that is a point of discretion we probably needed more clarity on? >> yeah, absolutely. i think the most people think that program has stopped. iaea --. jenna: do you? >> yes i do. i do. i think when the supreme leader speaks the government pays attention and the evidence here is very strong that the supreme leader issued that order in 2003.

there are reports and iaea are trying to investigate to see if anything happened since then but in the main i think they had a program. they were in violation. i think they stopped it. what they have continued with is an enrichment program which is the focus of the other set of international talks taking place this week. international community whether there is a bomb program or not they don't want iran to continue with enrichment. bring everybody up-to-date on the timeline coming together. we have a meeting happening in vienna with nuclear officials and iranian officials. that is precursor to a bigger meeting next week to the 6-party talks in baghdad. what they will do about the nuclear program. we talked a lot about sanctions, jim. june will be very important time this year about whether or not the sanctions two forward. where are we now with iran? >> well, i think, deputy's meeting that you referred to happening this week is going to be critical. before iran would have a meeting and u.s., or whoever would have a meeting once a year and they wouldn't two

anywhere and under the bright spotlights of tv no one could really compromise. now they're meeting. the deputies are meeting. they're trying to get down to the nitty-gritty to set up a meeting at the end. month. if there is progress there i think some of those sanctions will not be put in place. if those meetings fall apart or don't go anywhere or if the iaea meetings fall apart and don't go anywhere i you will see a new tough round of sanctions. jenna: we'll talk to you next week when we can do full analysis of that. nice as always to see you jim. thank you very much. >> thank you. jon: get some candles ready, because facebook chief executive, mark zuckerberg turns 28 years old today. gee, practically washed up. the start of what could be the social network's biggest week ever. julie banderas has the story. >> reporter: i remember our 28 birthdays probably not much like this guy's. jon: yeah. >> reporter: is not 30 years old believe it or not. his net worth is about to

reach $100 billion. facebook ceo mark zuckerberg is celebrating his 28th birthday as one of the richest. you can own a piece of his fortune. the company is expected to be selling stock very first time and trade on the nasdaq stock market on friday which could make this the social network's biggest week ever. the ipo could value facebook at nearly $100 billion. that is worth more than powerhouse companies like disney, ford and kraft foods by the way. at just 28 years old zuckerberg is exactly half the age of the average s&p 500 ceo and with eight years on the job, tenure as ceo is longer than average tenure of a leader of a little more than seven years. once facebook starts selling stock, the young executive will feel pressures of running a public company. will be expected to please stakeholders like wall street firms, hedge funds and pension funds who will pressure him to keep

growing. he started facebook.com while he was at harvard in early 2004. today more than 900 million people log in once a month, making facebook the world's definitive social network. jon, are you on facebook? jon: sort of? >> you're not a huge fan. neither i am i. with you on that one. jon: was on it a while. >> i like to stalk people. jon: i will take my page down. >> that is good thing. jon: julie banderas. thanks, julie. >> reporter: see you. jenna: social network, a lot of online tools being used in the race for the white house in 2012 of we're back to some interesting ads. jon: oh, boy. jenna: they're coming out today. the economy is playing a key role as the rnc goes after the president on the deficit and president's re-election team goes after governor romney about his business background. the gloves are off. we'll take a fair and balanced look at these approaches. a new twist as a florida

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for an agent, call the number that appears on your screen. jon: opening statements are underway in the murder trial of a florida man. prosecutors say adam kaufman strangled his wife back in 2007 and lied about it claiming she fell and hit her neck on a magazine rack in the bathroom. his defense team initially said they would argue that lena kaufman died from a bad reaction to a spray tan that caused her to faint. now they're expected to change their argument in court. phil keating live in miami with more on all that. phil, the prosecutor's opening statement basically is ridiculing the husband's claims? >> reporter: all of the defense claims that have evolved over the past several years. this case, this death, of lilly kaufman goes back to 2007. the miami-dade medical examiner waited a year-and-a-half before concluding that the evidence suggested mechanical

strangulation and then, the aventura police department charged adam kaufman with second-degree murder. but in the opening statement the prosecutor for the state presented photographs of lilly kaufman's neck and her eyeballs saying all of that indicated that she had been strangled and that she had some defensive wounds underneath one of her fingernails. now the defense claims that she fainted in the bathroom while adam kaufman is sleeping in bed. he comes up and finds her apparently either hitting her neck onto the toilet rim or the magazine rack. >> or if you believe the version where she was on the toilet and slump forward into the magazine rack neither version is we'll possible under the laws of fist sigs. because under the laws of physics you can in the generate enough force to cause those neck injuries. >> reporter: key evidence

for the state here is that the cops that arrived on the scene say that they heard a clicking sound and the hood of adam kaufman's car was warm despite the fact he claimed he was home sleeping all night long. jon: and the defense wants a mistrial here already? >> reporter: right off the bat. they called for a mistrial saying the opening statement by the state basically put the burden of proof on the defense unconstitutionally but the judge allowed for editorializing in that opening statement. we're now in the middle of the defense opening statement as we can see. adam kaufman sitting there, in the defense table dressed in a very fine sharp, blue suit. his twin brothers behind him. that is another thing that his attorneys are pointing out that, rookie cops bungled this case because they at times confused which brother was whom and they're saying this was absolutely not a homicide nor a murder.

>> you're going to hear that a rookie homicide detective handling his very first alleged homicide case, with a small aventura police department, with no supervision, completely bungled this case. >> reporter: right now they're in a quick five-minute recess. we'll tell you this. the defense will be calling the victim's parents. so the two people who's son-in-law is accused of killing their daughter does not believe he had motive nor do they believe he killed their daughter. jon? jon: wow, that will be a fascinating one to watch. keep us updated. phil keating in florida, thank you. jenna: well the economy is the top issue in the race for the white house and now some brand new campaign ads from both sides. rnc is going after the president and what it calls

years of broken promises. take a listen. >> i'm not going to quit until we find every single dime of waste and misspent money. i promise you that. there is simply too much debt on america's credit card. i'm running to pay down our debt in a way that is balanced and responsible. jenna: this is the president's re-election team goes after governor romney's business background. take a listen to this. >> bain capital walked away with a lot of money they made off this plant. we view mitt romney as a job destroyer. >> to get up on national tv and brag about making jobs when he has destroyed thousands of people's careers, lifetimes, just destroyed people. >> he is running for president and if he is going to unare the country the way he ran our business i wouldn't want him there. he is so out of touch with the average person in this country. jenna: this is just the beginning. we have a couple more months to go with all this. gretchen hamel, executive

director of public notice and former spokeswoman for the house republican conference. marjorie omo. democratic spokesman and head of momentum analysis. welcome to both of you today. >> thank you, jenna. jenna: that is the latest we've seen from the president's team when it comes to mitt romney. it is vaguely reminiscent when we saw during the republican primary with this attack on his business experience. why go back there? why would the president team go back to what we've seen in the republican primary? >> well, voters are going to start making up their mind, general election voters as opposed to republican primary voters. they're starting to tune in and starting to learn what mitt romney is all about. they will continue to make that decision. these things about his record are very relevant. it shows his record. it shows he has on the wrong side of working families. it sets up the contrast for who has got a better plan for the next four years. and i think it's completely relevant and makes good politics.

jenna: gretchen, what do you think about it? at the same time we're seeing romney, to marjorie's point having to talk to the general election voters. he had practice defending all of this but what else does he need to do? what does he need to be prepared for here? >> well, mitt romney needs to do the introduction to who he is to the american public and start defining him. he does not need to let the obama campaign define him. that's what they're trying to do with this ad. they're trying to define him in his past, what he has done and trying to claim he is out of touch. he needs to fight back on that but also needs to be talking about the issues that matter most to americans. a lot of people will see this as an attack. if he starts to talk about issues people care about when it comes to the economy, comes to government spending people will listen. they want someone to give them a solution right now. if he can show them the solution he will win them over. jenna: let me ask you both a question what is happening in europe right now. that's still a major factor. the president talked a lot, margie, what is happening in

greece and how that could potentially affect the economy. there is an editorial written in the@lampb tick how greece could sink the election. he can not fashion behind the scenes negotiations or construct a new government in athens even though his presidency may hang in the balance. what is the best plan of at attack for the president on something that could really affect the american economy. >> there is this is funny this is part of the mitt romney ad he always been supportive of a balance la approached in terms of dealing with the economic method he inherited. republicans walked away from a grand bargain that would have addressed both revenue increases and cuts in government spending. so i think that when it comes to how voters will view obama how he handles the different crises and rather than look at, blame him for factors out of his control. that is certainly how voters

view how he handled the economic mess that was here when he started. and now we have seen 26 straight months of private sector job growth. not an increase in public sector jobs the way you've seen in greece. and $4.25 million, 4.25 million new private sector jobs. jenna: margie stated some of the facts. gretchen, i have to run. what will mitt romney say there has been private sector job growth and looks better than what it did. >> the labor force is at a 30-year low. there were less people working than years ago. that is problem for him. when it comes to greece, greece's debt compared to the economy is 160%. america is at 100%. when is it going to stop? when you talk about this balanced approach, europe didn't take a balanced approach. in fact most nations are spending now more than they were before the financial collapse in 2008. they tried to tax their way out of it and it didn't work. jenna: we'll see which way it goes as we continue to

watch what happens with the economy here. nice to have you. thank you very much. >> thank you. >> thank you. jon: some developments involving that famed marching 100 band from florida a&m university. the school's president, james ammons, says he is suspending the entire band program that has entertained so many millions of people on television and elsewhere, suspending it until 2013. as you know, one of the bandleaders was, was beaten to death in what appears to be a hazing incident. it has led to an incredible turmoil around the florida a&m marching band. the bandleader, the band director has decided to retire. and we won't be seeing famu marching band on the field until 2013 at the very earliest. we'll keep you updated on anymore developments in that case. the media making a big deal of president obama's

support of same-sex marriage. it even landed him on the cover of "newsweek." the magazine calls him, quote, the first gay president. we'll break down the coverage coming up in our "fox news watch" segment.

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♪ i'm back, back in the new york groove ♪ [ male announcer ] the nation's largest 4g network. covering 2,000 more 4g cities and towns than verin. rethink possible. jenna: this just in. there's been a lot of talk what will happen with the united states postal service and we're just hearing from the postmaster agenda 600 urban and suburban post offices considered to be closed down will stay open at least for now. this follows announcement last week also from the postmaster general or the spokesman from the u.s. postal service that they were going to keep open rural post offices but just with shorter hours. there is lot of discussion about what d.c. should do if anything to help the post office. and the national postal service. we're still waiting to hear any recent lugz -- resolution on that. for now the 600 urban and suburban host offices and satellite stations that were proposed to close down are

going to stay open. we'll keep you updated more on this. jon: brand new stories coming up next hour. spy drones used in the war zone, now they could be coming to the skies over your neighborhood. is that a little unsettling? we're live with the story. also baseball great roger clemens getting some bad news at his perjury trial. what the judge just ruled. how it could affect the case against him. we'll go in depth. plus developments in the search for a missing fbi agent. the hunt is taking on new urgency. we'll tell you why coming up. jenna: severe weather across parts of the nation today. extreme heat sparking dangerous fires in some areas. other areas we have storms dropping heavy rain. maria molina live in the fox news extreme weather center with more on this. ma. rea? >> good to see you. we're having severe weather across the u.s. and one of the storm sims will impact us here in new york city and rest of the northeast down into florida. this is relatively weak

funnel system. it has a lot of moisture in spots especially right around the central appalachians. that is where we see heavy downpours. flash flooding will be a concern. we have heavy rain coming down across portions of virginia and western portions of north carolina. we'll keep you posted on this. this could also bring travel delays along the big i-95 cities. as we travel westward we have storms in texas and eastern new mexico. some have possibility to turn severe with large hail and damaging winds possible. we'll keep an eye on it. jenna: maria, thank you very much. jon: check this out. record high of 86 degrees effort weekend and now this. it is snowing in sarajevo. meteorologists there predicted a rapid change in the weather but few expected nearly a foot of snow. the region just suffered an unusually tough winter. frigid temperatures blamed for deaths of especially

elderly people. jenna: but 86 degrees a few days ago. jon: that is shocking. jenna: wardrobe challenges there. you can't put away winter coats. jon: yeah. jenna: there is a new chapter in the john edwards trial today. his lawyers are beginning to lay out their case. we'll look what to expect from the first witnesses for the defense. also a new push to get kids biking to school. the number of kids doing it dropping significantly over the last few decades. we'll tell you what is being done to turn it all around. [ male announcer ] what's in your energy drink?

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jon: pay attention. may is national bike month and there is a big push to get kids riding their bikes more. a recent department of transportation survey find the number of students riding to school has dropped 35% since 1969. some see biking as a way that could help fight

america's obesity epidemic. and yet some schools are actually banning children from riding their bike to school. can you believe that? talk about it with peter flax, editor-in-chief of bicycling magazine. you practice what you preach. you ride to school with your kid? >> i have a 7-year-old named lucas. he and i do bike to school couple times a week. like a lot of people we live pretty far from home. so we often drive to my office and bike from there. it is a great way to start the day. jon: why has the number of kids biking to school, why has it dropped so precipitously? i did it when i was a kid. >> there are a lot of cultural reasons. people are afraid the streets aren't as safe. there is a lot of suburban sprawl. a lot of schools now moved out, in the middle of town and they're located on big tracks out a few miles out of town. so it is further to school and more miles. kids are addicted to videogames. there are a lot of forces conspiring but i think the

big thing parents are just nervous to let their kids do what they themselves did when they were kids. jon: and why is that? has there been any psychological research done into that? because i mean when, i was a kid, we didn't have helmets. we didn't have all the safety features and yet i rode everywhere? >> yeah. it is a troubling trend. the facts are that the there is less violent crime than there was 20 years ago. you know the streets aren't more dangerous. jon: they are not? >> they are not. they are not. but you know, people, just have, to where they're more concerned about our kids these days than we used to be. we're more protective of them. a lot of this will be parents just having confidence to let kids do what they did themselves. jon: there are schools that actual banned kids from riding to school? >> we have a big story in our june issue, investigative piece about a family in saratoga springs, new york, 12-year-old biked to school with his mom they were detained and told at the maple avenue middle school that biking or

walking to school is not legal. literally if you live across the street from the school you can't walk or ride there. jon: i wish we had more time. i know you have great suggestions in the magazine, bicycling magazine how parents can get their kids on the bike. >> sure. jon: great fitness. good for independence too. peter, bicycling, thank you. >> good to be here. jenna: trial of former presidential candidate john edwards continues and now it is the defense team's turn to present its case. we have a live report from outside the courthouse minutes away. horrific story south of the border. dozens of headless bodies dumped into the middle of a mexican highway. the latest surge of violence there ahead call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

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jenna: fox news alert, brand-new fallout from those huge losses at jpmorgan chase very much in the headlines today. we are glad you are with us, everybody, i'm jenna lee. jon: i'm jon scott. a brand-new hour of "happening now." we are glad you could be with us. the bank's chief investment

officer stepped down this morning. more resignations could follow. the securities and exchange commission now investigating as we get new reports the firm's losses could actually top $4 billion. jenna: double the amount. that's what we are hearing today. charlie gasparino fox business network is joining us now, doing a lot of reporting on this story. potentially $4 billion in losses? >> i don't think that is necessarily news. what we've been reporting on the fox business network all along is the estimates are just estimates. jaime diamond has said it could get larger. what you're hearing now is how much larger it could get. it could get smaller too. the minute i hear two i always assume four. the market assumes four. these are reporters doing their jobs and estimating exactly how much in the worst case scenario it may be. jenna: worst case scenario may be $4 billion. we were seeing video of jaime

diamond on the screen. >> reporter: $4 billion is probably one quarter of what jpmorgan will earn this year. jenna: would that in any scenario threaten the financial system in any way? >> reporter: no, no, no. i think the bigger problem is not whether this threatens the financial system, the bigger issue is does this prove -- remember this came out of the you pwhrao blue, no one new, jamie diamond is a sharp guy and an honest time. i've interviewed him many times, i've known him since he and i did not have gray hair. you have to to ask yourself how does the best risk manager on wall street become shocked with a fairly sizable loss? how does that happen? there's been a lot of talk before this about whether the banks are too big. i've written a lot about it. and that is where this comes down to. this bank is too big to manage as is. citigroup, bank of america and

many of the others. jenna: break up the banks, how would we do that? >> reporter: it's not easy obviously. whenever you say something like this. barney frank the formal head of the house financial services committee would say, how do you do it? i would say you can break them up. you can separate their investment banking from their commercial banking, it's not going to be easy. that is a good way to do it in a free market sense. we have a mega institution essentially backed by the taxpayer. they are never going to let something as big as jpmorgan go under. why is that? not just because they control so much risk in the world they have over a trillion dollars in customer tkphos its. those tkphos its they have to make them up in total. most people don't have $250,000 in a bank. they have a succession of $50,000 bank accounts that they'll have to make up. that money is not in the bank it's gone. is the federal government going to lend out or pony up taxpayer

money to the tune of a trillion dollars to cover that immediately? so you don't do that, you try to keep it alive and that is bad. jenna: quick final question. jaime diamond has said it's a stupid mistake, really stupid mistake. how do you regulate stupid even if it's in a smaller bank? >> reporter: my point is this. you're never going to regulate ste stupid. here is -- by the way, regulators never catch this stuff. regulators are bad at regulation. here is what the taxpayer should be worried about. how do we make these mistakes smaller? you make them smaller by not having such tremendous financial institutions. these things are bigger than countries. i mean jaime diamond controls a balance sheet probably as big as trans. this is -- we are at a point now where it's kind of absurd that we have banks this big, this powerful, this systemic to the

global economy and ours. the only way to deal with this. it may not be easy, it may be messy, you have to protect the american packs tears, yo taxpayers. the fed is the chief regular hraeurt, camped out in their offices every day and they missed this. you want to trust them on something else? jenna: a good question. one to leave our viewers with today, charlie. than that you very much. see you on the fox business network. jon: new developments to tell but in the john edwards corruption trial. his lawyers presenting their case now. as we hear from the first witnesses, there are new questions today on whether the disgraced former presidential candidate will take the stand. arguments going on on whether to ahh law the testimony of the former edwards campaign chief financial officer. jonathan serrie live in greensboro, north carolina. again, what are the chances that john edwards might testify in his own defense? >> reporter: there are always

risks when you put your own client on the stand in his own defense, but john edwards was a successful trial lawyer for many, many years, convincing many juries of some difficult decisions in his favor, so it's entirely possible that you may see his defense team wanting to put john edwards on the stand to talk directly to the jury, presenting his case, in his own words. but one former federal prosecutor tells us that while we are likely to hear from john edwards, it is unlikely that his mistress, reille hunter will take the stand, and here is why. >> i think that bringing her back into the room brings in the wrong message in front of this jury. she is the reason that john edwards is in this mess, at least in part, other than john's own responsibility. it evokes the memory of elizabeth edwards and all the tawdry, sorted things in this case. >> reporter: reille hunter was on the prosecution's witness

list. they never called her to testify. and it may be just the same for the defense, jon. jon: what is the defense team doing right now? >> reporter: right now they are arguing over whether they can allow testimony from that former campaign cfo, laura haggard is pre beared to tell th prepared to tell the jury that she did not consider all this money that they are arguing over, that she did not consider that money to be a campaign expense to keep reille hunter in hiding. the prosecution objected saying this was an opinion and the jury needs to come up with its own inch interpreter taeugts with the facts. the defense argues if the judge withholds this type of testimony from the trial she has basically removed her case that the expensive cover up of john edwards affair was personal and not political. we got a taste of this defense strategy on friday when edwards lawyer argued, quote, mr. edwards could have expenses for a baby if he had a campaign, or if he didn't have a

campaign. mr. edwards would hide an affair if he was or wasn't a candidate. in other words, the defense strategy to argue that these expenses were not political, but personal. jon. jon: jonathan serrie, thank you. coming up, our legal panel discusses the trial, and whether edwards' testimony could help or hurt his own case. jenna: in the meantime, a desperate search underway now for an f.b.i. agent missing in the rugged mountains of southern california. more than one hundred f.b.i. investigators are looking for their colleague, special agent stephen evins, a man described as possibly suicidal but certainly there is more to this story. laura ingle is live with more. >> reporter: there is still no sign of 35-year-old stephen ivens. he was last seen at his home in burbank thursday evening where he lived with his wife and young child. police believe he left on foot and may have a handgun that is unaccounted for at his home. burbank police say that he has

been a special agent with the f.b.i.'s los angeles division for the past three years specializing in national security. investigators say they can't get into details, but they believe he could cause harm to himself. >> we have special concerns, given his apparent inch phra nation to potentially commit suicide. >> there is no evidence of foul playwright now. that's why we still have a robust effort to locate him. >> reporter: an f.b.i. spokesperson tells fox today ivens was under no disciplinary action at the bureau and never has been. they sent skepb scent dogs towards the mountains. this is west of the san gabriel mountains surrounded by homes and urban development and is a hot spot for bikers and mountain climbers. they are working off several tips they received over the weekend from local hikers and neighbors. he's six feet tall, 160 pounds

with brown eyes, has a receding hairline and wears prescription glasses. if you have any information you are urged to call the numbers on the screen. the search is the largest the city of burbank has seen in the last 20 years. it goes on today. we'll bring you developments as we get them here in the newsroom. jenna: you wonder what made him run to begin with. there is a missing part to that story. we'll continue to watch it. thank you. jon: a major announcement expected today from the faa on plans to license domestic drones to law enforcement agencies. last month the faa released a list of dozens of sites to be authorized for launches right here in the u.s. will your privacy potentially be compromised? catherine herridge live in washington with more on that. >> reporter: it's described as a first case where an unmanned drone was used to arrest and american citizen on u.s. soil. it i involved a 16-hour standoff at a north dakota farm over six

cattle that wandered onto this man's property. the man said was subjected to guerilla tactics. a s.w.a.t. team reportedly borrowed a drone from homeland security to make sure it was safe to arrest him. with the faa making that decision today on broadening the use of drones domestically advocates say they can be used in cases like this as a force multiplier for law enforcement. >> they are not going to be used for constant surveillance. typically they can stay in the air for 30 minutes. they will only be used for specific missions. >> reporter: they are synonymous with drones in afghanistan and iraq. that's raising questions about data retention and whether there is probable cause in many of these cases to turn the surveillance onto american citizens. >> our founding fathers had no idea that there would be remote

controlled drones with television monitors that can feedback live data instantaneously, but if they had they would have darn sure made sure that these things were subject to the fourth amendment to protect an individual's privacy. >> reporter: congressman barton along with democrat congressman markee wrote to the faa last month over privacy concerns, specifically that it will be used in conjunction with license plate data, facial analysis, which comes down to a drone state. jenna: drones have been used along the border. one of the stories today that we'll take a closer look at south of the border is this. dozen of headless bodies dumped on a highway south of the texas and state line. a live report on a horrifying escalation of mexico's drug violence coming up. plus, key testimony today in the

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jenna: welcome back, everyone. a gruesome discovery giving us a new look at mexico's brutal drug war. 49 mutilated and decapitated bodies found scattered on a highway in mexico. more on this from william la jeunesse live in los angeles. >> reporter: jenna as unbelievable as it is for mexico the scene is not uncommon. the victims are a casualty of an escalating fight between the sinaloa cartel and the zeta cartel over the profitable drug smuggling routes into the u.s. this one the aoubg ra tiff i35

corone35 coroner through houston. their hands, feet and heads were cut off making identification nearly impossible. typically in mexico the victims are killed in one place and dumped for maximum effect elsewhere. in this case the zetas taking credit with the letters spray-painted in black, 100% zeta. the message is we won't be intimidated as the larger sinaloa cartel attempts to take over their area. it was ten days ago that police found 23 bodies, many hanging from a bridge decapitate ned the same area, and a few months ago the sinaloas had dumped 96 bodies in a public square, alongside roads in this tit or tat war of receipt pwaougs. while some of them are in the cartel themselves also, they can be immigrants who are slaughtered when they refuse to join the group or carry narcotics. this comes six weeks before

mexico's presidential election and the violence has hurt chances of the sitting president from winning, but all these candidates for the july 1st election say, jenna that they will continue the government's campaign against the cartels. jenna: an important election. we'll see if it goats any better as we continue to watch this story. thank you. jon: president obama's decision to personally support same-sex marriage getting all kind of attention last week. now analysts are looking at how it could affect voting in the fall on same-sex marriage initiative tph- initiatives in four states. dan springer joins us. how are the president's comments playing out in those four states? >> reporter: it's really interesting, jon, we talked to people on both sides of the debate and they say that the president just helped them. they are actually as you said four states that will be voting on gay marriage in november, all were won handily by mr. obama in 2008, washington, minnesota,

maine and maryland. obama's first stop after endorsing gay marriage last week was right here in seattle where gay and lesbian supporters were out in force with their signs. campaign officials believe the president has energized young people and will sway some black and suburban voters. >> it has a boost because he's a strong, popular figure. he articulated his journey on this in ways that voters in washington are going to have to go through adjourn knee too. >> reporter: the vote is on a referendum in washington trying to overturn gay marriage passed by the legislature and signed by the government. 32 times states have voted on gay marriage, and 32 times they have voted for traditional marriage. jon: i know opponents of same-sex marriage think the president helped their side. why is that? >> reporter: they see it as energizing their base which will help them with turn out especially in the blue states. preserved marriage washington, for example, is trying to gather signatures to qualify for the

ballot. they've got about 50,000 sergeant50,000 signatures to go. organizers say obama's support for the other side has people fired up. >> there are more of us than there are of them, but it's a matter of us being aware of what is actually going on. this is one of those things that helps people wake up and understand, this really is a big deal. >> reporter: the national organization for marriage, which supports traditional marriage raised a hundred thousand dollars in the first 24 hours after obama's comments last week, ten times above normal, and they expect them to spend it all. some believe these four campaigns will shell out a combined $50 million this year. jon. jon: it isn't over yet. thanks very much. jenna: the john edwards defense team beginning its case arguing that the former presidential candidate did not knowingly use campaign funds to hide his pregnant mistress. our legal panel weighs in on the road ahead for the defense. roger clemens dealt a major blow in his federal perjury trial. the prosecution's main witness

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jenna: now to this fox news alert. we'll take you to columbus, ohio where we just heard there was a shooting at what is being described as an apartment complex in the area. you're getting a shot by the way that could be interrupted at any moment because this is on ongoing swat situation. the early report says there were two people killed in this building and they were found in the stairwell. a third person apparently has been taken to a local hospital, but it's still an active scene. according to reports from the area there have been several shootings in this neighborhood over the last several weeks, and some described the residents as being very on edge and scared.

again an ongoing and active swats situation in columbus, ohio, because of a shooting that happened about an hour ago. a description according to crews on the scene is that two people were found dead in the stairwell of the building and that the front door had been shot out. more on this as we get it. jon: well, it is now the defense's turn in the john edwards corruption trial, his lawyers making their case that he did not violate campaign finance laws, in an effort to hide his affair with reille hunter, an affair which result ned a baby. let's talk about it with rachel selfa criminal defense attorney and faith jenkins a former prosecution. faith, the defense moved for dismissal of all charges, the judge said no. should the prosecution take that as a positive sign? >> absolutely. the prosecutor at this point i think they are pretty confident in the case that they have built in showing that, you know, john edwards not only knew about this money but he played an integral

role in obtaining this money and getting it to go into these accounts to take care of reille hunter. i think they are feeling pretty confident about the case that they have presented, and being able to argue to this jury that, you know, this is not just a man who was interested in protecting his family. look at his behavior, look at his character, all these things that he did. he wanted to become president, and that's why this money was so important to him. jon: rachel you have said you don't think this case works for the prosecution. >> no, i don't think it works, and i still don't think it works. after 24 witnesses and lots of salacious testimony and lots of steamy details they still haven't provided a direct hit. they still haven't connected the dots that john edwards actually committed a crime here. and the fact that the judge denied the directed verdict last week, that's actually a very tkphop common thing, because when a motion for directed verdict is made, it's made and has to be heard in the light most favorable to the prosecution. so in this particular instance for the judge to let it go forward to a jury with

everything that we've heard is not unusual. but i don't think that they've got a case still. jon: well, there have been some pretty dramatic moments in this case, faith, like, you know, testimony about how john edwards' late wife confronted him and, you know, sort of tore her shirt open and said, you know, you don't want me any more, and that kind of thing. that is all going to work against him as the jurors consider, you know, whether to convict him or not. >> it absolutely works against him and it also puts more and more pressure on john edwards to take the witness stand in this case, because at this point he's facing an uphill battle. these jurors, they probably don't like him. he has lost all credibility in their eyes. they've heard of all of these lies to cover up this affair, all these lies to his family, how devastated his wife was. it puts more pressure on him to take the witness stand and try to explain this money, and why they should not believe that this money was used to help him

to become president. jon: rachel he's a pretty slick courtroom operator. he made millions for himself convincing juries that his clients were in the right or had been wronged. should he take the witness stand? >> well i agree with faith, as far as the fact that he very well might want to take the witness stand in this case, and as you said, he's so slick, and so smooth, he could convince a long tailed cat to walk-through a room full of rocking chairs, right? i mean that's just his style, that's who he is. and he's also so selfish and narcissistic, being a trial lawyer himself he might convince himself that the best thing he can do is get up there and talk to the jury and convince them of his side of the story. but the bottom line remains that the law is the law here, and this is still going to be a very difficult case for the prosecution to prove that a crime was actually committed. being a bad person, cheating on your wife, fathering a illegitimate child not necessarily violative of

campaign finance law. >> it comes down to a simple question. did this money have an ability on his impact to campaign? the answer is yes, he's guilty. >> well it's not necessarily. jon: i for one would love to hear him testify but we'll see whether he actually takes the stand or not. faith, and rachel, thank you both for being with us. >> thank you. jenna: aftershock from a billion dollar trading blender at the nation's largest bank. the ceo of jpmorgan chase admitting mistakes were made at his firm the the latest fallout and what it could mean for your bottom line and the financial stability of the country, right. the judge dealing a blow to the defense in the roger clemens trial. we're going to break it all down coming up. [ female announcer ] research suggests the health of our cells plays a key role

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jenna: new fallout today from a massive blunder at the nation's largest bank with jpmorgan chase losing an estimated $2 billion over the past several weeks in what they are describing as a bad trade, a mistake. the bank's chief investment officer has stepped down today and two more executives are expected to design. we'll take a look at where wall streewall iswall street is trading today. it has a lot to do with europe as well. they are saying the losses don't threaten the bank's financial stability. take a listen. >> i do want to put it in perspective. the company is going to earn a lot of money this quarter. it's a very strong company. we made a terrible egregious

mistake and there is almost no excuse for it. jenna: joining us is mike santolli with baron magazine. when you hear a bank one of the biggest in the country lost a lot of money like that you wonder is everything okay out there. >> i wouldn't say okay, certainly not for jpmorgan chase. i think you have to have a little bit of context around it which is a $2 billion loss is a big number in absolute terms. jpmorgan chase the total assets is $2.3 trillion. it was a failed effort to hedge some of their other credit reu risk that they have on their books. i don't think it really impairs the bank as a whole or is something that might pop up at other bank. it's not as if the market is giving a hint that all of a sudden it's going to meltdown here. jenna: we talked about this last week. you said one of the thins we have to do is watch the banks for any bigger sign that something could be wrong. you're saying broader economy maybe not the sign here that

there is something worse ahead. >> doesn't seem that jpmorgan chase is a similar ton of unrest within the banking system as a whole. i don't think we have to worry about that in particular. what the markets are reacting to is europe once again potentially infect being the economy there, the banking system more broadly across the globe, that's what we really are fixating on. jenna: there might be a connection, isn't there mike? when we first heard the reporting about jpmorgan chase it was described as a bet on an economic recovery that went bad. is there something to take away from that about where the economy was at and where the banks were hoping where the competent might be. >> we don't know enough about the dynamics of this particular trade and trading approach to really conclude any of that. what we can say is that in general the initial trade at jpmorgan chase was motivated to protect themselves against another episode where european fears filter into the entire credit markets. they tried to reverse that and say, hey maybe that might be too

bad. that may be the trade that went bad. we can't pull it apart in too much detail. the specter of markets reacting badly to what is going on in european by extension to the global economy is definitely something that is constant right now. jenna: reacting badly and behaving badly are too different things. let's talk a little bit about greece. we continue to hear that, no matter what is happening in our economy, in our debt, with healthcare in the supreme court, any of those factors, that europe is still something we really have to watch. why are we still talking about greece at this point? what is happening. >> first of all the political situation in greece has changed. they don't have really a new government that seems like they are sure to honor the terms of the bailout in europe. what really we are worried about is a chaotic exit from the euro potentially by greece which really could infect some of the bigger economies like spain and it leave. at least the markets are saying they have to raise the probability that this does maybe make it more difficult for spain and italy to borrow money. those are much bigger economies,

much more debt that is in the banking system issued by those countries. that's what we have to worry about. jenna: there is something else we are seeing in france and in greece as they are changing their governments. there has been a move by the eu to cut, these austerity measures that are really painful and no one likes. now we are seeing the new governments and new officials coming in who are saying, you know what we don't need to do all of that. >> at least as a campaign measure that's exactly what they are saying. democracies, this is the way it goes, you have unphror policies that are agreed to by burea bureaucrats and politicians that in are power. it seems there was a relatively neat solution here. you have bailout funds in exchange for budget austerity and that is now being called into question more broadly. jenna: they are crossing their fingers. that's what they say any way. as you point out that's what the government officials are saying now. we'll see what happens when they get into office and have to deal with all this. mike thank you very much. jon: it was one of the big events of the week just passed

and the news media mid a big deal of it, president obama's support for same-sex marriage. our news watch panel covers the coverage coming up. plus, an american astronaut gets ready to blast off for the international space station hitching a ride on a russian spacecraft. onal constipation, diarrhea, gas or bloating? get ahead of it! one phillips' colon health probiotic cap a day helps defend against digestive issues with three strains of good bacteria. hit me! [ female announcer ] live the regular life. phillips'.

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to get a free quote, call... visit a local office, or go to libertymutual.com today. liberty mutual insurance. responsibility. what's your policy? jenna: glad to have you with us on this monday. and american astronaut, it's a big monday for him, getting a ride from the russians to outer space. tonight's launch is scheduled for 11:01 eastern time. the trio will spend four months working with three other crew members at the international space station. julie banderas is live from our new york newsroom. that pales to our monday. >> reporter: russia is now the only country capable of taking crews into space to service the international space station. and the next crew set for take

off tonight making final preparation in the former soviet republican of kazakhstan. on board is just one american, a former math and science teacher turned flight engineer, joe acava. he's set to be aboard the international space station for six months. they will be on board when the space-x mission docks becoming the first private company to do so. that launch is scheduled for saturday. meantime the space shuttle enterprise is being prepped for display here in new york city. the shuttle is now resting under a deicing shed at jfk airport. next month it will be taken by barge to the aircraft carrier u.s.s. intrepid. it's set to open in july to the public. jenna: a lot going on in space even though we are not participating directly right now. thank you kr-fp. jon: president obama's decision

to support same-sex marriage is get ago lot of attention in the media, some of them absolutely fawning. alan colmes is host of the alan colmes radio show. in specifics we are talking about the cover of newsweek magazine, the magazine which announced that mr. obama is the nation's first gay president, echoing back to when bill clinton, i suppose, was described as the nation's first black president because he had so much support among the black americans. what do you make of this cover, alan? i mean is that taking it a step too far or are they trying to sell magazines. >> they are saying andrew sullivan is a gay conservative reporter. and they are trying to sell magazines. obviously time magazine had a provocative cover last month, newsweek is competing, and they

are being equally provocative. we are talking about it so i guess they've done their job, right? jon: i guess so. andrew sullivan did use that term. i'll get jim's reaction on the other side. >> i was steeled. i said i don't care, he's going to disappoint us again. and then i sat down and watched our president tell me that i am his equal. that i'm no longer outside, i'm fully part of this family. and to hear the president, who is in some ways a father figure speak to that, the tears came down like w-pl people in our families. jon: all right. so that's andrew sullivan. is this -- is this more about that, jim, or is it tina brown, the well-known editor of newsweek just pushing people's buttons? >> i would say it's a complete

harmonic convergence of a desire to sell magazines and get attention with a kind of outra outrage just and strictly speaking untrue cover, and then also the kind of inordinate affection that the media have for gay issues and now president obama. when he talks about tears running down your face it's right up there with tingle down your legs if you're chris matthews a few years ago or robin roberts who interviewed this announcement by president obama last week, she said the thrill. these reporters are obviously unable to fully contain themselves unless their enthusiasm for obama and it shows not only on what they say on tv but what they write in magazines. >> this is not about a liberal conspiracy, this is about selling magazines. robin roberts got a great gig. there is not one reporter who wouldn't like that interview. they say the liberal media is

out to get them and it's a conspiracy when they are positively covering anybody left of center. it's all about selling magazines. >> well magazines. jon: the now president when he was campaigning for president got the cover of times or newsweek a historic number of times, way more than george w. bush did as the sitting president. >> you had an african-american running, or a woman running the same thing would have happened. >> they put michelle bachmann on the cover and it was a nasty picture. >> she is a very attractive woman i don't have a problem with that pick. jon: how about the picture of sarah palin that newsweek put on their cover when she was running. >> why is there always an anti-conservative liberal conspiracy. any time there is any kind of coverage of somebody it's always against the conservative and for

the liberal according to the right wingers, it's amazing to me. >> it's a movement of like-minded souls, all of whom love obama. and that andrew sullivan thing is a great example. every other mainstream reporter on the gay marriage, all this evolution stuff -- they didn't even mention -- >> andrew sullivan is a conservative. >> he's not a conservative if he loves obama. >> how dare he love obama. >> conservatives can say anybody who loves obama that much is not a conservative the way conservative is commonly understood. >> conservatives can't like our president. >> they can love him as a person but not as a conservative. >> you can like certain of his policies whether you're conservative or liberal if you're fair & balanced. >> he endorsed obama in 08 he's not a conservative. jon: we'll have to let you argue

this out during the commercial break. jim pinkerton, alan colmes thank you both. jenna: do you think they ever get together for a cappuccino. jon: sure in the cafeteria. it's a shout fest. jenna: it's nice to have them both. two big developments in the roger clemens paourpblg retrial. key rulings that could be a major set back for the baseball legend as the prosecution's star witness takes the stand. are you receiving a payout from a legal settlement or annuity over 10 or even 20 years?

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goes up in flames. in just a new minutes. luckily everybody on board got out on time. the driver evacuating all 50 passengers, including three children. listen to this, the fire is believed to have started from friction between the tires and the road. and that's what happens? interesting, right? a fisherman from panama is suing

princess cruise lines for negligence. he says he was stranded in the pacific ocean when one of the company's ships sailed right on past him and failed to help. the company said the captain was simply not aware of his plight. and the obama administration issuing new guidelines for spending on federal conferences, hoping to avoid the whole gsa-las vegas canned tkal. listen to this the guideline limit, jon, is spending at a half million dollars. $500,000. anything higher than that you have to get a higher level review, but you can still spend up to $500,000. jon: you can barely get those little mini hot dogs for $500,000 to throw a party. some new developments in the roger clemens perjury trial to tell you about. a judge refused a defense motion to strike testimony from a key witness. last week andy pettitte said he may have misunderstood a conversation he had with clemens about using human growth hormone. meanwhile the man who claims

clemens injected himself with steroids and hgh is now on the stand. brian mcnamee is his name. let's talk about his testimony and what it means for this case with rachel self, criminal defense attorney who is back with us and faith jenkins a former prosecutor. it is said, faith, that the prosecution really needs to get some good stuff out of brian mcnamee, because the andy pettitte testimony kind of bombed. do you agree? >> i do agree. mcnamee is really their key witness at this point. this is not one of those cases where you have a lot of physical evidence. the case will rise or fall on the believability and the credibility of these witnesses like mcnamee. if if the jury actually believes hi steroid then that is a guilty verdict. his credibility is absolutely essential. i guarantee you the defense is going to try to impeach him oohing past, i heard that they were trying to get in some divorce records, things like that. they are going to try everything they can to try to impeach his

credibility at this point. jon: rachel, he's not charged, though with injecting hgh or any of that stuff. he's charged with lying to congress. >> right. yeah, no, exactly. but the thing that is going to bottom line here is whether or not he did do this. and mcnamee is going to need to come up with information that supports the prosecution in this case. jurors have been sleeping in the jury box in this case. they've been getting put to sleep. and judge walton specifically said, you've got to move this thing along, shop showing useless pictures. stop presenting useless questions. stop doing useless evidence in this case. i wouldn't necessarily as a juror -- and jurors in this case are allowed to question themselves if they feel that the defense lawyers, or the prosecution haven't asked questions that they want to know the answers to the judge allows them to pass up cards and ask their own questions, which is very unusual in a case like this. two of the juror questions have gone to the strength of the prosecution's case.

and they are wondering if the evidence of cotton balls and vials stored in a beer can for seven years, which is mcnamee's smoking gun, if that could be tainted evidence. if they are asking those questions of the judge that means they are asking those questions in the jury room. who holds onto cotton balls for seven years? i wouldn't trust them. jon: rachel and then there is the testimony of andy pettitte who gave fairly damaging testimony about his former teammate, saying that he had used human growth hormone in the past and injected himself with it. and then when asked about his recollection of all of this. how good your risk pettite says, well, probably about 50%. pretty hard to send a guy to prison if your recollection is only 50%. >> absolutely. and the defense's motion was a good motion to preserve the record for appeal. but realistically speaking the judge wasn't going to allow that motion, because if it tends to prove or disprove a fact it will go to the jury, and to strike the testimony would have

basically been completely useless because you can't unring a bell. they heard the testimony. i don't think that was necessarily a blow, and trying to strike it out completely might have actually turned the jurors off. this thing is going to play its way out. jon: faith, it's the second go around for this prosecution. if this one doesn't fly, does roger clemens get off the hook? >> you know, that is a good question. i mean at this point the government has spent millions of dollars trying this case, which is a perjury case, as you mentioned. i think that this is -- they are being extra careful. the last time there was a mistrial because they admitted evidence that the judge had previously told them was not to be admitted, and that evidence was released in front of the jury. this time they are going by the book, and making sure that that doesn't happen, and i think this case is going to go to the jury. i don't know what is going to happen in the end. it's going to depend on the credibility of these witnesses, especially mcnamee who is going to testify today. jon: faith i think the camera was trying to follow the

sinkerball on the last shot. we appreciate you joining us. faith jenkins and rachel self, thank you both. jenna: thank you both. dueling political attack ads hit the airwaves today. what the president is saying about governor romney's past and how romney is responding, coming up. ♪

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