his lobbyists have near constant conversation with the banking committee and look at the trail personallynd members of congress and the political world in general. starting with the jp morgan political action committee which has given money to all but six of the members of the banking committee. dimon personally gave money to senators corker and warner just this past cycle and given in the past to the top democrat and the top republican on this committee. he gave $55,000 to the democratic senatorial campaign committee in 2008 and supported hillary clinton in '08 and did in the end give $50,000 to the obama inaugural so dimon personally and jp morgan as a political action committee spread a lot of money around washington and should be said that the pac leans republican over the past several years and jamie dimon has ratcheted back some of his campaign contributions since that '08 cycle when he was really active. >> thank you very much. making the point of money and politics go hand in hand. to john carny and another round of ties between the senate banking committee and dimon. >> it's not

. >> while protesters attempted to confront jamie dimon, many lawmakers on the senate banking committee warmly welcomed him and repeatedly praised the bank. this is senator jim demint of south carolina. >> thank you, mr. jamie dimon. i appreciate you voluntarily coming in to talk with us. it is important to talk about things happening in the industry. i think it will advise us, help us as we look forward and hopefully it will contribute to best practice scenario in the industry and i appreciate your of assists and continuous quality improvement. we can hardly sit in judgment of your losing $2 billion. we lose twice that every day here in washington. plan to continue to do that every day. it is comforting to know even with the $2 billion loss in a trade last year, your company i think still had a $19 billion profit. during the same time, we lost over $1 trillion. so if we had a clawback provision, none of us would be getting paid. the intent today is really not to sit in judgment, but maybe to understand better what happened. >> jamie dimon's one of them did not come as a surprise to man

trying to convince this banking committee that bank executives know how to reduce risk in the organization. was it about reducing risk rather than trying to make money from these hedging positions? it will an interesting conversation, and one no doubt that could have some impact on bank stocks. so watch those carefully. back to you. >> we'll be watching, geoff cutmore live in london. >>> still ahead on "way too early," lebron james and the heat were in control on the road to open the nba finals in oklahoma city. but could king james shake the reputation for vanishing in the fourth quarter? the finals, when the thunder finally made their charge -- highlights in sports. >>> plus, george h.w. bush muses about biebs. >> i don't know much about the bieber, never see him. i don't know what he does. >> have you ever heard his song. >> no, how does it go? >> the bieber, 41's complete breakdown of the bieber phenomenon and a check of the weather, when "way too early" comes back. >> he has accepted that appointment and the senate willing, he will become associate justice to succeed justice clark. mr

jamie dimon facing the senate banking committee today. gize for $2 billion in losses and explain how the bank's investment unit was instructed to reduce risk exposh year way back in december. andrew will join us with senate banking committee ranking member richard shelby. you can watch the hearing live on cnbc at 10:00 a.m. eastern followed by mary thompson's exclusive one-on-one interview with jamie dimon himself immediately following the hearing. >> also we have two key economic reports ahead of the opening bell. the government will be out with retail sales and producer prices for may. economists are looking for retail sales to have fallen by 0.3% last month and looking for an 0.8% decline in the ppi. we've been watching the futures this morning and they have come down. basically looking at a flat line. in our global headlines, spain's prime minister is defending the country's quest for $125 billion in aid for its banks. marianno rajoy. as a result the yield on the spanish ten-year bond hitting euro era highs of 6.86% yesterday. that is

, was told by some, you don't want to be on the banking committee, because the bank is done, and they have passed dodd/frank and the heyday has come and gone, and in my view, oversight, implementation, and modification and alteration of dodd/frank is a very important task for this congress. one that i wanted to fully engage in, because the consequences of dodd/frank are tremendous, and certainly to directly to financial institutions, but more importantly to the customers and the borrowers and the depositors that we care a lot about. it is concerning to me that while we continue to have these hearings, i am -- my concern is that there is no legislation that then follows the series of ideas that are presented and certainly i would guess that every member of the committee has expressed either here in a committee hearing or in a letter to the regulators a desire for a different outcome than what has occurred with dodd/frank. so i think that there is a general belief among most everyone on the committee that there needs to be some alterations in the dodd/frank and my hope, mr. chairman, is

the house and 2010 and senator chris dodd was the head of the house -- i'm sorry, the senate banking committee. and so, this wall street reform consumer protection act passed summer 2010 with a comprehensive set of financial reforms addressing many vulnerabilities that type about earlier. now, but were vulnerabilities? let me remind you. one of them was the fact that there's nobody watching the whole system. nobody looking not the entire financial system to look for risks and threats to overall financial stability. one of the themes of the act try to create a systemic approach. one of the regulators for some individual components at the. some are doing not among the tools was the creation of a council called the financial stability oversight council which the site is a member, which helps regulators coordinate. we may particularly on account

our next guest was a member of the senate banking committee. it is bob corker from tennessee, and he joins us now. good to have you on the program. how would you characterize the hearing today? >> i thought it was a good hearing. i think what it pointed out is that dodd-frank, a bill i did not support, was a compassioned response to a structural issue. people will realize it's not going to withstand the test of time like jamie dimon eluded to, and i think hopefully we'll have an opportunity to look at real financial reform, and we really look at the markets and not just an institution. i think that what we have done is you know, drilled down, and a lot of regulators at these institutions, but we have not looked at some of the shadow markets, and i thought it was a very good hearing. >> the only other thing is that what jamie dimon said about now being able to differentiate and acting on behalf of the client. you called it a blip, but you looked at the whole story from what we did and didn't learn from dodd-frank. >> yeah, this is the first time

committee. that's the wisest strategic choice for them. >> and get this. the bank has been the second largest contributor to senator tim johnson, democrat, the chairman of the committee. >> and i've got news for you. they also, i mean you know this already, they also were one of the biggest donors, or their, i should say their employees, to president obama's campaign in 2008 and also to, i believe, to john mccain's campaign in 2008. this is the nature of what they do. they spread -- they spread the wealth around, you know. >> and there's more. one of senator johnson's former staffers is now one of jpmorgan's chief lobbyists. and the chairman present top assistant used to be a lobbyist for a law firm that worked for jpmorgan. i mean, this wasn't a hearing. this was a reunion of the gambino family. >> well, look, this is what we call in washington the revolving door, okay. and this -- if your viewers haven't heard of this, they need to learn about it right away, because this is how washington, d.c., work is that the people go back and forth from, typically from capit

america thinks that congress is in a gridlock, the committee has been very busy get things done on the senate floor. the bipartisan export import bank reauthorization passed with broad support and was signed into law by the president last week. we passed in the senate this committee's bipartisan sanctions bill for the federal reserve board of governors received four votes and we helped to secure the passage of that confirmation. we passed a bipartisan transportation bill in the senate and the transportation conference committee meetings are currently on going with the house. we passed a 60-day extension of the national flood insurance program and we have commitment from the leadership to bring the banking committee's bipartisan reauthorization bill to the floor in the coming weeks. in addition there is another important legislative matter helping responsible home owners refinance into lower interest rates at no cost to the taxpayers. we have already had full committee and subcommittee hearings and financial proposals. i would like to take a bipartisan approach similar to other committee past bills of this congress where we work toge

banks and federal thrifts. thank you. >>> thank you. >> thank you chairman johnson, ranking member shelby and members of the committee for the opportunity to testify today on the fdic's efforts to enhance bank supervision and reduce systemic risk. the most important new fdic authorities under the dodd-frank act are those that provide for the orderly resolution of systemically important financial institutions. since passage of the dodd-frank act the fdic has taken a number of steps to carry out its new responsibilities. first the fdic established a new office of complexed financial institutions to carry out three core functions, to monitor risk within and across these large complex firms from the standpoint of resolutions and risk to the deposit insurance fund, to conduct resolution planning and respond to crisis and coordinate with regulators overseas regarding significant challen challenges associated with cross border resolution. for the past year and a half this office has been developing internal resolution plans in order to be ready to resolve a failing financial company. the fdic has also completed the basic ru

committee. that's the wisest strategic choice for them. >> and get this. the bank has been the second largest contributor to senator tim johnson, democrat, the chairman of the committee. >> and i've got news for you. they also, i mean you know this already, they also were one of the biggest donors, or their, i should say their employees, to president obama's campaign in 2008 and also to, i believe, to john mccain's campaign in 2008. this is the nature of what they do. they spread -- they spread the wealth around, you know. >> and there's more. one of senator johnson's former staffers is now one of jpmorgan's chief lobbyists. and the chairman present top assistant used to be a lobbyist for a law firm that worked for jpmorgan. i mean, this wasn't a hearing. this was a reunion of the gambino family. >> well, look, this is what we call in washington the revolving door, okay. and this -- if your viewers haven't heard of this, they need to learn about it right away, because this is how washington, d.c., work is that the people go back and forth from, typically from capit

you need to know this it was a dog and pony show on capitol hill yesterday as the senate banking committee called on j.p. morgan chase c.e.o. jamie dimon to testify on his bank's massive three billion dollar loss last month rather than asking tough questions about how something like this could happen just how reliable our banking system is and whether or not this proves the new financial regulations are needed most senators on the committee decided it was a great venue to kiss diamonds ring there are a few examples you're obviously renowned rightfully so i think is me one of the most you know one of the best c.e.o.'s in the country for financial institution jim is this it's a blip on the radar screen i really appreciate you voluntarily coming in to talk with us it is important we talk about things happening in the industry it'll and i think it does help us and as we look forward and hopefully it'll contribute to best practice scenario in the industry and i appreciate your input on a continuous quality improvement it's comforting to know that even with a two million dollars two billion doll

that's how much jp morgan chase donated to 20 of the 22 members of the senate banking committee sincee why which jamie diamond showed up for a supposed grilling in front of the committee yesterday. he was instead treated treated like a hero. >> what should the functions of the regulators be? there there is no way for a regulate tore catch this activity, would you agree? >> what areas of oversight would be the most effective for us in terms of our regulatory talk true? >> a banker will always be ahead of a regulator basically and you are giving them the information that you are using to regulate, it's just not really realistic to think that a regulator is going to catch this. >> how much have your regulatory costs increased as a result of the rule whatever it is? >> i would like to come away from the hearing today with some ideas on what you think we need to do, what we may be need to take apart that we have already done to allow the industry to operate better? >> we are here quizzing you if you were sitting on this side of the die as what would you do? >> what an embarrass think. what

well, no surprise that diamon was called down to capitol hill to face the mighty senate banking committee. >> you're obviously renowned, likely so, i think, as being one of the most, you know, one of the best c.e.o.s in the country. >> you've got very big profits. you've got a lot of firepower. you're just huge. (laughter) >> jon: i don't mean to embarrass you but it's staggering. (laughter) is there a mrs. diamon or-- (laughter) but they didn't just haul jamie diamon in to tell him how nice and good he is and huge he is, they also brought him in there to talk about how terrible they, the senate, are. >> we can hardly sit in judgement of your losing $2 billion. we laws twice that every day here in washington. >> jon: does senator demint think that spending money is the same as losing money? (laughter) >> jon: you know, hi $10 million here yesterday but now all i see is this [bleep] highway. (laughter) i don't understand. (cheers and applause) >> jon: i don't understand where it's going. (applause) >> jon: where's my money. we're going have to dig this up and find my money. what is going o

morgan chase yesterday he was called to testify before the senate banking committee in the clip you're about to see brilliantly compiled by t.p.m. you'll see and hear how one of our nation's most notorious banks toure's was treated by some of his friends why are they his friends well republican jim de mint has raised over twenty two million dollars in recent years and according to open secrets dot org is third largest donor is securities and investment industry the bankers republican david vitter raised over eleven million dollars in open secret to. org says security is investments this is fifth largest industry donor publican roger weicker as head or wicker has raised over nine million dollars in security investment seventh largest donor republican jerry moran has hauled in almost ten million dollars and commercial banks ranked number five according to open secrets dot org for him and the top contributor to republican senator craig this election cycle jamie dimon the j.p. morgan chase he's on the banking committee craig and the top contributor to republican senator corker was on the b

after that, a senate banking committee hearing on jpmorgan's recent loss of at least $2 billion and later, a house fortune affairs committee meeting on u.s. aid to afghanistan. next week, "washington journal" looks at federal agencies that enforce financial regulations. on monday, we talk with former securities and change commissioner, harvey pitt. on tuesday, our guest is commodity futures trading commissioner. wednesday, the treasury department's undersecretary for domestic finance, mary miller. thursday, shealy bair who headed the deposit insurance corporation and we wrap up the series friday with skip humphrey of theoumer protection bureau. "washington journal's" look at financial regulators every day next week at 9:15 a.m. eastern on cspan. >>> the senate finance committee this week looked at the temporary assistance for needy families program. it replaced a previous welfare program and limited the amount of time people can receive benefits. senator max baucus of montana chaired the hearing. >> come to order. robert kennedy once said as long as there is plenty, poverty the evil. near

165h requiring all banks with over $10 billion in assets and all non-banking financial firms supervised by the fed to have a risk committee that includes at least one risk management expert having experience in identifying, assessing, and identifying risk exposures of large firms. in your testimony, you say you will require the bank to read here to the highest risk management standards? in your assessment, the j.p. morgan has sufficient expertise in risk management to carry out its duties? it has been reported that j.p. morgan is changing the competition -- the composition of its risk committee. can you provide the committee with an update on those changes and discuss whether you think the new members of the committee has sufficient expertise? >> the introduction of the risk committee to dodd-frank is a welcome improvement to the overall corporate governance of financial institutions and the sikelia large institutions. we view the role of the board in terms of corporate governance as they met again to excessive risk as being a critical feature of sound risk management. and this is a killer case, there appears to have been

although the committee's hearing mr. dimon from, whose bank loss $2 billion + of its own money, it has never heard from executives of fannie mae and freddie mac, who have lost nearly $200 billion of taxpayer dollars. perhaps it the committee can turn its could -- if tensions g to these's mass of public losses when it completes its review of the relative private losses thus far to jpmorgan chase. thank you. >> thank you. this morning's opening statement will be limited to the chairmen and the ranking member to allow more time for questions from committee members. i will note that senator warner is a valuable member of this committee but his absence to attend his daughter's graduation, but he will be submitting a statement and questions for the record. i want to remind my colleagues that the record will be open for the next seven days for opening statements and any of the materials you would like to submit. now i will introduce our witness. mr. jamie dimon, chairman of the board, president, and chief executive officer at jpmorgan chase and compa

jp morgan chase ceo jamie dimon will answer questions from the senate banking committee about the bank's $2 billion plus trading loss last month. >>> stocks may be down this morning but here's good news maybe for your 401(k). a new survey of economists says stocks are hitting bottom and the s&p 500 will rise more than 8% from now until the end of the year. stocks will gain 14% total by the end of 2012 if economists surveyed are correct. >>> get ready to fork over more money. the airline is raising the fee for a second bag from $70 to $100. it now matches delta's january baggage fee hike. industry analysts expect american and u.s. airways to follow suit in the near future. >>> miami fans feeling the heat after kevin durant and the thunder raced out to a lead. miami led early and the thunder outscored the heat by 18 points in the second half. james led miami with 30 points. game two of the best of seven series set for thursday night in oklahoma city. soledad. >> i got money on this game and i've got -- i'm going to have to do something somebody tells me every day for a week if the heat los

now infamous conference call jamie dimon, ceo of jpmorgan chase testifies before the senate banking committeeoday about those costly trades. at issue, dimon's reputation. also the point at which banks in this country are simply too complicated to manage. i'm carl quintanilla, along with melissa lee, david faber, jim cramer at the nyse. two day roller coaster. triple digit losses monday. guided back tuesday. dow at its highest level since may. europe inches toward this weekend's greek elections. a lot more on what yields are doing over there in a moment. >>> our road map starts on capitol hill. all eyes on dimon. will this hearing lay the groundwork for tightening of the volcker rule and a tougher regulatory environment for banks across the board? >> cramer says the market is one big rumor mill. we are going to travel to cramerica for some answers. >>> not lovining it. >> business news on the web is about to change thanks to us. cnbc forging a strategic alliance with yahoo! finance. we will be the premiere content provider for the yahoo! finance network. >>> first, jp morgan chase ceo jamie di

or financing every structure this is this is gambling jamie diamond now answers to the senate banking committee on capitol hill where we've already seen regulators paraded before him in recent weeks we are assessing the adequacy of risk management throughout the bank with little in the way of revelations the reason of course is that both you and abuse treasury and the federal reserve are so heavily allied with the interest of the largest banks in the world the systemic we dangerous institutions and as far as the interests of this senate panel keep in mind when jamie dimon addresses the leaders german johnson ranking member shelby he's talking to lawmakers who can think j.p. morgan is top campaign contributor number one and number two that's according to the center for responsive politics. so as far is too big to fail wales london and otherwise we may still have no assurance they won't be coming seemingly . again sometime soon. so that brings you up to speed to today now more reasons for that view i expressed at the end the whole issue with this trade and the volcker rule is the question of if t

of connection in the sense that you know we broke it down by the numbers went into the senate banking committee we did in the sense that so many of the committee chairman some of my committee members their number one donor morgan you have you know the manager of the committee who is a former j.p. morgan lot of the it was the same thing here well the house committee is a lot bigger so i guess it seems like you know there might have been more opportunities for people that weren't so entrenched with j.p. morgan but there are definitely absolutely still those connections so the chairman of the house financial services committee spencer baucus j.p. morgan and its employees and our it's our his law largest contributor yes the vice chair not as much so a little variation there but overwhelmingly there are still massive connections of one hundred sixty eight thousand dollars in the two thousand and twelve election cycle came from j.p. morgan to pass through pacs and employees to this committee to in-house lobbyist with j.p. morgan were either on this committee or were an aide to a congressman on this c

gotten to the last week we had our financial check out because he was in front of the senate banking committee and it was just it was embarrassing these guys were not grilling jamie dimon if anything some of them were grovelling in front of him and they were asking him for his advice what kind of regulations for the instituted in saying that you know sometimes the banks do better than the government does when it comes to keeping track of their money and it was just it was bad and so this week he was in front of the house and let's take a let's take a look at some clips of what happened. you know we're not too big to fail we believe that a bank should be bankrupt a bill and that when a bank fails that the claw back should be invoked and if it doesn't mean you should they're going to call back the people responsible if your compensation in the pot that's going to be considered for that but also said it would be solidly profitable quarter relative to earth it's not the question is that i would please don't feel for you gambling i would you lose the house once. that's been my experience would inve

they took off the kid gloves at the senate banking committee last week.f some of the he's testy moments in the testimony. >> my compensation is 100% up to my board. >> mr. dimon you said there will be clawbacks for people responsible, it your compensation in the pot considered for that? >> they will do wha w they see t appropriate. i can't tell my board what to do. >> you're throwing darts at a dart board and putting a lot of money at risk in case you were wrong the first time. i don't see how that creates one job in america, how it helps the american economy. >> i assure you there isn't a member of this panel that could not bring you 100 small and medium size businesses credit worthy in need of loans for you. and instead, you took the $350 million to london. >> some interesting points. but you know, jamie had some answers to that. his argument is always size is good, and the economy is too slow right now to take too much risk. the riskiest thing a bank can do is loan money. that doesn't sound to well with a lot of people -- >> i'm struck by the fact that