a.p. morgan recently a nounced a $2 billion trading loss. >> people look what happened with jpmorgan and say here's a company that made a stupid decision and did something dumb and lost money and fired the people that were responsible. this is the market at work. this is how it's supposed to happen. why does government need to play a role? >> to some extent that's true, and i take some credit for it. if this had happened five years ago, if jpmorgan had lost what appears to be more than $2 billion, you would have seen much more panic in the economy. you would have seen much more concern. what we did in the legislation we passed and through other things was to require the financial institutions be much better capitalized. one of the things that's a result of the government telling them you have to have more capital you would have had otherwise, that helps give people reaassurance. >> this past weekend, congressman barney frank spoke about the over $2 billion loss by jpmorgan chase as well as the st

big banks because we bailed them out that's one part of the derivatives and everything else which a.p. morgan is very important because if you look at jamie diamond's unregulated over the counter derivatives business it makes the bank pale by comparison the banks almost a trivial concern so you know he's talking about two very different things one is the we want to put more regulation on credit creation in the u.s. answer is no the whole dodd frank construct i think has to be revisited but when you look at over the counter derivatives they're not regulated at all. jamie dimon got everything he wanted out of the over the counter derivatives negotiations for dodd frank so i don't really see what more he could possibly ask for because the banks have wired the bankruptcy laws if you look at m.f. global look at made off we even look at lehman brothers and every one of those cases the over the counter derivatives market was subsidized by the other creditors they're given special treatment they're not subject to the automatic stay in bankruptcy eccentric cetera so o.t.c. derivatives is already a spe