website, welcome to "the wall street journal report." i'm maria board romo. a big bet gone wrong by what many think of as america's safest bank. the massive mistake by jpmorgan, what it could mean. >> what's number one on the agenda if in fact you get the white house at the end of this year? >> my one on one conversation with house speaker john boehner. will we approach a fiscal cliff? what happens when the bush tax cuts expire? ethics in the workplace. is it okay to fib on your resume? one silicon valley ceo is learning the hard way. "the wall street journal report" is learning right now. >> this is america's number one financial news program. "the wall street journal report." now, maria bartiromo.

>> here's a look at what's making news as we head into a new week on wall street. a huge banking blunder by what is regard is as one of the safest and best-managed banks in america. jpmorgan chase revealing it suffered a $2 billion trade loss the result what was ceo jamie diamond called "a flawed and sloppy derivatives trade" by the bank's chief investment office whose job it is to manage or hedge the bank's risk. the unit had been expected to post a gain of $200 million. the bank's stock stumbled on the news late in the week. that helped push the markets down as trading began on friday. on thursday the dow had snapped its six-day losing streak, its longest since august. the markets falling because of fresh worries out of europe. encouraging economic news in the u.s.. the price is oiling falling below recent highs of more than $100 a barrel partly due to slowing demand. gasoline prices are starting to decline as well. we are at the end of earnings season. disney and cisco beat analyst expects although cisco had a

disappointing outlook for the rest of the year and that stock was under pressure. more trades a sixed rate mortgage kicking down to 3.83% this week. what happens when a big bank makes a big mistake? could it mean more government regulation? joining me is austin goldsby, university of chicago booth school of business, former chairman of the council of advisers to president obama. let me kick it of with jpmorgan's big banking blunder. a $2 billion loss from the bank's chief investment office. i find this interesting because it really has been jamie diamond who has been among the very vocal people against the vocal rule against, you know, the idea that more regulation is going to hamper what they can do in terms of proprietary trading. does this set the bank and the industry back in terms of more

regulation? >> i think it does. i wouldn't say more regulation. that's the regulation they passed. it strikes me it's exactly what the rule was intended to prevent. and you saw the reports from the "new york times" that regulators have been all over this exact position, trying to figure out why did they have such a big position and whether it was a proprietary bet. i think it feels like every time the financial sector gets the lobbying up enough to try to knock down the rule, events come back and push it back to the forefront. whether it was conflicts of interest between banks and their own clients or the riskiness of proprietary trades for institutions that are insured by the government. so i just think this is a bad situation. >> so what do you think? do you think the rule then will be implemented this year? a lot of people debating whether or not we're actually going to see that, which of course

prohibits the banks from trading for their own account, the proprietary trading. >> you know, i do think it will get enacted. i don't know exactly the precise form that it will take. >> let me switch gears, ask you about the markets in europe. because once again, europe seems to be front and center. after the elections in france and greece, and of course the anti-austerity candidates into the position of power. how do you think this chapter plays out here? >> probably not well. i mean, the problems they got in europe are really endemic and feels like they're a bit on a treadmill. so they quote-unquote solve it and declare it to never be addressed again. and then three to six months later, here it is back. whether it's back in greece or in spain or next in portugal or wherever. i think given the structure of the eurozone as it is, they're going to have a hard time getting out of that. for the most part that's only bad news for the u.s. economy.

it's clear they're in a deep recession over there, a credit crunch a lot like what we went through in 2008-09. they're not going to be buying as much exports from the u.s. it's also clearly having some uncertainty and freaking people out a little bit in the markets here. and the one thing we don't know is, as things get hairier over there, does that lead tonight to safety? and in a weird way have at least some positive impact on institutions in the u.s.? or does it just freak people out in general and they start pulling their money out from everywhere? >> do you think the euro does break up at this point? i'm struck by the fact that for so long, all of these countries were defending the euro, were unified, were going to hold this together. now you've got greece saying, we're not following this austerity rule, you've got france saying, we're going to do our own thing, we're raising taxes to 83%, we don't want this

as well, these austerity -- >> right. >> are we actually seeing enough division that you'll see the euro break up and does that impact the u.s.? >> that's a key question and i basically think we are. i think what europe's got is they've got very different economies locked together in a monetary union. if you want to hold that together, somebody's either got to subsidize -- the rich guy's got to subsidize the poor guys on a permanent basis, or the poor guys have got to grind down their wages and really suffer it out for five or ten years to try to do the equivalent of a devaluation. i think both sides of that seem pretty iffy to me. >> let's talk about the u.s. you've been coming out with jobs numbers these last two months. do you think we've hit a soft patch in the recovery? >> a bit. i wouldn't say soft patch like it might be a double-dip but i think for sure the growth rate's slowed down. i wish i hadn't been prescient

on the job numbers because i was pessimistic and those ended up being right. i think the basic math is if the economy's growing 3% a year, like it was at the end of 2011, the job market's going to improve pretty significantly in relatively rapid order. and if the economy grows 2% or something low, you're going to see the job market somewhat stagnate. because you don't need to hire anybody to grow 2%, you can just get that out of your existing workers by raising productivity. >> so concerns starting to grow about what happens at the end of the year when the bush tax cuts expire, the automatic budget cuts kick in. they're calling it the fiscal cliff. do you think that the house, the senate and the president will be able to reach some kind of compromise before the elections in terms of these tax cuts expiring? because taxes will go much higher -- >> it seems as if we just can't get a break in the academy. we've got europe, we've got this, now the fiscal cliff.

i'm nervous about it. i think -- feels to me like both parties in congress are essentially saying, we're not going to try to sort this out before the election, let's let the voters decide what ought to happen. >> austin, always wonderful to have you on the program. thanks so much. >> great to see you again. >> we'll see you soon, austin goldsby joining us. up next is america facing a massive tax hike next year? can anything get done before the election? my conversation with house speaker john boehner coming up. later, how honest is your boss? the silicon valley shakeup may bring the microscope to personnel files across american business. right and wrong when it comes to your resume. take a look at how the stock market ended the week. ♪

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welcome back. john boehner is arguably the most powerful republican in washington. he has a lot on his plates and this week i sat down with house speaker and talked with the election, jobs, and getting a handle on america's debt. >> it has to happen or the financial markets will do it for us. in terms of downgrading our debt. and i actually think regardless of what happens in the election, the next couple of years are going to be the most consequential couple of years we've seen in washington in the last 50. because we've got this debt issue we're dealing with, really acting like a wet blanket over our entire economy. we've got a bunt deficit that's unsustainable. we've got entitlement programs that are important to tens of millions of americans that aren't going to exist if we don't fix them. >> what are the specific plans you would like to see happen? >> first on the economic growth side, i think our tax code gets

in the way of our ability to grow. i think that we need to overhaul body the corporate tax code and the personal tax code. you look at our budget, we like to see a top rate of 25%. and get rid of all the special loopholes and the underbrush. in order to bring those rates down and simplify our tax code. at the same time, that will also broaden the tax code in terms of the number of americans paying income taxes for our government. first big step. second step, we've got to stop the regulatory nightmare coming out of the administration. every agency downtown, here in washington, is in full mode. whether it's epa, whether it's dodd-frank financial rules, obama care, you've got the list. these regulations are strangling our ability to grow our economy and strangling the ability of employers to hire more people. third point. we've got to have real controls

on spending. today we've got 10,000 baby boomers retiring every single day. that's 70,000 people a week. that's 3.5 million people a year. and this is just the beginning of the retirement for baby boomers. >> how do you address it? do you extend the age of retirement? i mean, how do you get your arms around it? >> there are a lot of options on how you extend the life of these programs. frankly, i'd like to see them all sustainable for the next 75 years. social security, that's not really hard to do. when it comes to medicare, medicaid, the administration went down the path of obama care, which in my view will ruin the best health care delivery system the world's ever seen, and bankrupt our nation. i think that's the wrong path. the supreme court's going to make some decision. we'll have to see what they decide. >> let me ask you about the bush tax cuts which expire at the end of the year. that means things like ordinary income, capital gains, dividend

taxes. dividend taxes, ordinary income people are talking about dividend taxes going from 15% to 43%. >> 43%, that's what's going to happen in january if we don't act. the how is prepared to act. we've already passed 30 jobs bills out of the house that are sitting in the united states senate. the house is going to act to extend the current tax rates, whether we make them permanent or we extend them for a year, that debate's still up in the air. we're going to do our work. it's time for the united states senate to do their work. >> in the last few weeks it seems like the pace of economic recovery has slowed quite a bit. a lot of people talk about europe, a lot of people talk about the price of oil. what's your take on where we are right now? >> i think the economy is slowing. and i would not be at all surprised to see it continue. why? look at what's going on in europe. it's having a very big impact on the united states. we've got record low interest rates. yet employers are scared.

they're afraid to move forward. >> so can you explain to the american people what the gop would do, what's number one on the agenda, if in fact you get the white house in -- at the end of this year? >> i think dealing with the debt, dealing with our tax code, are the two really big issues. the president and i, when we had disagreements last summer, he would say, well, john, that's what elections are for. >> so does this election rest on the independent? does this election rest on women? what do you think? how do you think the -- when you look at all the data, i think the fact that romney is basically tied with the president at this point, after being kicked around by his opponents for a year, i think it's pretty remarkable. secondly, you have to remember that 90% of the undecideds will go with the challenger. but you look at this through another lens in the prism. you got 47% of the american people who are going to vote for mr. romney and you got 47%

probably today who are going to vote for president obama. it's that 6% that are going to make the decision. remember this. this election's going to be a referendum on the president's economic policies. they've failed. they've actually made the economy worse. >> well, in the past i know that some journalists have triggered you to cry. you haven't done that in a while. >> no, no, no. >> are you trying to change that image? >> made every cryer in america put their arm around me and say, hey, i like you, i cry too. >> my thanks to john boehner. up next on "the wall street journal report," the truth may set you free. and it could cost you your job. and it could cost you your job. just how come a resu [ horn honks ]

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...america does better. let's reach higher. let's invest in our teachers and inspire our students. let's solve this. welcome back. yahoo! is currently investigating its ceo following the revelation that the internet company's fifth leader in six years may have misrepresented his academic credentials. what's wrong here? joining me is randy cohen, author of "be good: how to navigate the ethics of everything." he wrote the "new york times" magazine's eth thist column for over a decade. he graduated from suny albany with a major in music. >> i have no musical ability of any kind. >> but that's where you graduated and you wrote and it that's your story and you're sticking to it. >> i am. >> scott thompson was said to have a computer science major

from a school where that wasn't even an option. until several years after he graduated. he calls it an inadvertent error. but this information was on yahoo!'s website in addition to some of the company's s.e.c. filings. what went on here? how common is a representation like, this do you think? >> i've rerd that one-third of all resumes have a significant falsehood on them, generally a false degree. it seems astonishing, it's such an easy lie to check. >> exactly. are people checking? >> apparently not. >> exactly. >> and this i think we see a kind of fake outrage, that when daniel lowe decided to bring this up, it wasn't because he was fastidious about what's required to be a good manager. it's that he had interest in taking over the company. >> yes. but let's talk about scott thompson here. because how wrong is this behavior, in your view? >> in my view? well, it's completely wrong. it's unambiguously wrong. your resume has to be an honest

account of your professional life and educational history. is it a felony or misdemeanor? it's an odd thing, that at least in choosing appropriate punishment, i wouldn't fire him. >> you wouldn't? >> he unambiguously did wrong no, question about that. but what's the appropriate punishment? do you remember i guess about five years ago, it was the admissions officer at mit, merrilee jones, great admissions officer for 20 years, turned out she had fake degrees. >> unbelievable. >> they did fire her. i think this is institutional showing off. she should have been punished for this -- >> why did she lie? >> why indeed. the dark recesses of the human heart. >> who knows. >> sometimes you feel pressure to have what in retrospect looks like a professional accomplishment. sometimes there's a raise up for grabs. it's so strange that people -- why do people plagiarize? the more people read your plagiarized book, the more should you you are of getting

caught. apparently also psychological study suggests honesty is not our default position, that we all, all of us, tell significant lies every day. not just hello, how are you. but lying as a kind of social lubricant. >> i'm glad you brought up dan loeb. dan loeb was an activist investor, upset with the company management, he went digging, he finds this out. was that ethical? >> yes. it's perfectly reasonable for him to bring up actual, true information about the company. what's not appropriate is this response of complete umbrage. he does not care that scott thompson lacks a computer science degree. that will not affect his ability to be a good manager. you can look at his tenure at pay pal and say, is he good at his job or not? daniel lowe is looking for ammunition. that's tactics. >> this is business fear, right? you've got senator marco rubio, elizabeth warren, they have

faced criticism as well because of the truth of family stories about their backgrounds in some degree. are they responsible for fact-checking their parents and grandparents? >> yes, they are. i think fact-checking is an extreme word for this. elizabeth warren knew her family history and family stories, mark rubio knew his too. >> it feels like a gotcha cult tour. >> that's why punishment is an interesting question. merrilee jones at mit, she's a consultant in admissions and she's been offered many jobs because she's great at her job. she should be punished. all kinds of sanctions are possible. you can suspend someone, fine them. you need identifier them. it's appropriate to find appropriate punishment. when you make punishment too severe, people don't come forward. >> thanks very much, we

appreciate having you with us and analyzing this. randy cohen joining us. a look at the news that will have an impact on your money. these social networks, will facebook going public be a game change for the technology industry? ♪

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for more on our show and our guests check out wsjr.cnbc.com. follow me on twitter and google plus. look for @mariabartiromo. the stories coming up that

may move the markets and impact your money. earnings releasers out from home depot, target, walmart. the retail sector has been active. tuesday the consumer price index tracks inflation at the consumer level on all consumer products. total retail sales for april will be out on tuesday as well. wednesday we get housing starts. the number of new residential units that began construction last month. as well as the minutes from the last meeting of the federal reserve open market committee. and how about this, do you like it? friday, may 18th, the expected day for shares of facebook to begin trading on the nasdaq. a lot of hype about that ipo. and it is the most widely anticipated initial public offering in recent memory. and the social network's road show is winding down. facebook stock will be offered to the public at a price of between $28 and $35 a share. giving this company a valuation of up to $96 billion. probably a lot more than that. ceo and founder mark zuckerberg appeared before potential investors this week wearing a

hooded sweatshirt. should the head of a publicly traded company dress the part? or like a zebra changing its spots is it too hard for a zuck to change its hoodie? go to our facebook page, tell me what you think. that will do it for us today. thank you for joining us. my guests next week, robert parrow. keep it here where wall street meets main street. see you next week, have a great weekend.