at the top of the hour i was reading an excerpt from your story from the hill republican senator bob corker calling on the speaker to do what the senate will not do on the debt and explain the details. what is under senator corker's plan and what does he want the house to do? >> it is quite interesting. it illustrates that the speaker is facing pressure from both sides relating to the debt deal that was signed in august of last year, and senator corker is calling on the house to stand firm and not pass bills that have passed the senate largely with corker's opposition and passed the senate on postal reform and the highway bill that corker and some other republicans argue spent more than called for in the august debt deal which set a spending level for 2012. now, on the other hand democrats are accusing boehner and house republicans of violating the debt deal in the opposite direction by moving appropriations bills that spend much less than the spending level agreed to in that, so coming from the right and the democrats are coming at boehner from the left so he is once again in a difficult p

about the prospects for increased regulation: michigan democrat carl levin and tennessee republican bob corker. >> woodruff: ray suarez updates the escalating drug violence in mexico after 49 mutilated bodies were found dumped along a highway. >> brown: john merrow reports on a move to boost reading skills and shake up the content for young readers. >> reporter: the new view is that our kids read too much fiction, books like this, and not enough about things like electricity, whales and the solar system. >> woodruff: and two economists offer their prescription for addressing what they call the human disaster of long-term joblessness. >> brown: that's all ahead on tonight's newshour. major funding for the pbs newshour has been provided by: >> citi turns 200 this year. in that time, there have been some good days and some difficult ones. but through it all, we persevered. supporting some of the biggest ideas in modern history. so why should our anniversary matter to you? because for 200 years, we've been helping ideas move from ambition to achievement. and the next great idea could be yours. >>

as you mentioned, bob corker on the banking committee says he wants hearing on this.m johnson to be chairman for those hearings. >> john, just briefly, look, on the romney hook, okay? you had a great interview with carl levin, appreciate that. on the romney hook, if there's a hue and cry next week about jpmorgan making very risky loans by london whale traders, don't you think romney's going to have to weigh in, a little more detail on how he would handle this? >>ic there's a good chance that he will. it was notable that he felt the need to put out a statement today. remember, mitt romney's been spending months saying that dodd/frank was an impediment to job creation and an impediment to american business. he took a different tact with the statement today, basically saying, i've long said that derivatives should be closely regulated, subjected to common sense regulation. i underscore or i repeat that call today. that's not the same thing as dodd/frank, and we'll see whether or not he feels the need to put something on the table to flesh out that commitment. >> great st

next, the weekly address is, one by president obama, followed by bob corker of tennessee.arks are about 10 minutes. >> this week, i travel to afghanistan to thank our troops serving far from home and to sign an historic agreement that will help us complete our mission and end the war. as commander in chief, nothing is more humbling them the chance to spend some time with our troops. i visited with some of our outstanding men and women in uniform. i thank them for their extraordinary service. and let them know that america honors their sacrifice. because of their bravery and dedication, the tide of war has turned in afghanistan. we have broken the taliban's momentum. we have built strong afghan security forces. we have devastated al qaeda leadership. when year ago, our troops launched the operation that killed osama bin laden. because of the progress we work -- we have made, i was able to sign an historic agreement between the united states and afghanistan to define a new relationship between our countries. a future in which afghans are responsible for the security of their

even bob corker said we need to find out what happened and make sure independent doesn't happen again. even though j.p. morgan is a profitable institution, they can take a $5 million hit. but what does that tell you about banks that are less nationally resilient. are they going to leave taxpayers on the hook? that's a principal goal in the financial world. >> what's the effect on the presidential campaign where you have president obama who's often citing the bad behavior of wall street. then you have mitt romney who is a businessman. what is the effect of the argument? >> i think it's definitely going to help the argument of the democrats. the president has been making the case that dodd frank is nose prevent taxpayers from being put in position from bailing out banks again. headlines that say a major financial institution or wall street just lost billions in a bad bet can't help but reinforce that argument. mitt romney has been campaigning for some time saying i'm going to repeal dodd-frank. this shows that my call for common sense regulation is legitimate. now, of course, he conside

there were republicans who were involved in the restructuring of the car companies like senator bob corker and former michigan governor. but the most mitt romney did was write the editorial in the "new york times". that may be why he's not boasting as much as the president is. he was in michigan today, the home of the car industry. he didn't mention the bailout at all. >> pelley: republicans in three states voted today in presidential pry primaries: indiana, north carolina and west virginia. together they don't have enough delegates for mitt romney to clinch the nomination. also on the ballot in north carolina a constitutional amendment defining marriage as solely between a man and a woman. the state already has a law that bans same sex marriage. we have more from north carolina tonight. >> reminding voters in your area to go vote today. >> reporter: opponents of a constitutional ban on same sex marriage went door to door in greensboro. >> polls are open to 7:30. >> reporter: william robinson helped organize this effort to mobilize voters against the amendment. >> this has nothing to do wi

and we'll focus on regulation with bob corker. and the residential capital unit reportedly nearing a bankruptcy filing. the move could help the auto lender shed its troubled mortgage banking business. but it could also lead to drawn out held fights. >> all this not making traders feel that comfortable. we had a rough week last week. rough week the week before. and starting with a rough session this morning at least as far as the indications are down about 82 points for the dow. almost 11 points for the s&p. it has been all this good for -- well, if you hike cheap gas or cheap energy, because we have seen a little drop in the oil. down to $94. ten year continues to rally. and we've got it now at 1.78%. all-time low wasn't too much lower. there's the euro. 1.28. looking for parity by the time i head over there in late july. is that possible? >> for your sake, i hope so. >> i'm going over the end of may. when you add in -- you get a hotel quote and let's say they say it's 300 euros. number one, you got to do the euro thing. it that m

. >> some in congress say it could be illegal, and republican senator bob corker today called for congressionalon the other hand is more concerned about the delicate sensitivities of our poor little banks. >> the president's policies scare the dickens out of banks and insurance companies. >> oh, mitt you are adorable and secondly i think most of us would agree that after the last few years the banks and insurance companies could use a little scaring. so here to discussion how the new regulations will actually impact business. we turn to phil maccalito, phil welcome back inside "the war room." >> good to be with you, and that was a wonderful introduction to this rather disturbing tail. >> let's start at the basics for people who's eyes glaze over when they hear the voelker rule. can you just explain it. >> let me start at the beginning after the great crash of 1929 there was a law that was put in that basically prohibited banks from taking risky bets and selling to consumers. it was designed to protect the banks against taking enormous risks that could bring them down. that glass spiegel rule wa

joining us is senator bob corker.ey on and larry lindsey really had a good question but we didn't get to it and you're the wrong -- i don't know, maybe you're not the wrong guy to ask this. three years without a budget, why don't you guys do what you're supposed to do instead of trying to worry about what jpmorgan's doing? >> i couldn't agree more about the budget. it's been like 1,118 days. >> about. >> we haven't had a budget. it's incredible. i have quit voting for all spending bills until we pass a budget. i wish everyone in the senate would join me in that and then i think we would actually pass one. >> how many votes do you need? the senate doesn't need 60 votes, right? >> no, that's right. and for what it's worth, again, i think we ought to all quit voting for any spending bills until we pass a budget. i think it's ridiculous. we're spend being $3.5 trillion of your money and we have no guideline. we spent over $10 trillion since we passed a budget. i think it's a total embarrass not to be able to pass a budget

i want to welcome republican senator bob corker of tennessee joining me this morning from capitol hille's called for a hearing on jpmorgan $2 billion trading loss. senator corker, good morning. >> good morning, brooke. >> i want to begin with this series of financial regulatory hearings. obviously you are talking jpmorgan. what do you really expect to get out of that? what do you expect to learn? >> here's what's happened, brooke, over the weekend we've been in lots of conversations with the regulators and i think it's still questionable as to whether these trades under the new laws that have been created, once they are fully implemented are banned or not. we're seeking a hearing not because we want to jump on the jamie dimon/jpmorgan bandwagon. the fact is this is a couple months of earnings to them. but the question is are these types of trades legitimate trades or not? it is my belief that it's very questionable and to me what we need to do is have a hearing to understand exactly what generated these trades and what was their purpose. it's my belief that candidly these kind of trade

. >>> bob corker, on the banking committee, is asking for hearings on the matter and new york attorney general eric snyderman is asking for new, tougher regulations. >> there are some regulations that need to be instated, in some cases reinstated to ensure the security of the market so we don't get into the kind of crash that we did in 2008. >> is he right or are are the markets working as they are supposed to? the debate coming up. >>> and don't go away. david gregory is interviewing jpmorgan chase chairman and ceo jamie dimon right now. as soon as they are done, david will join us with highlights of his exclusive right here on cnbc. stay tuned. don't miss mr. dimon's interview. >>> plus, we're going to tell you why france's new socialist president may look a lot like sarkozy when it can comes to austerity. and i thought "i can't do this, it's just too hard." then there was a moment. when i decided to find a way to keep going. go for olympic gold and go to college too. [ male announcer ] every day we help students earn their bachelor's or master's degree for tomorrow's careers. this i

. >> senator bob corker joins me now. senator, thank you very much. this is all going to come right in front of you. do you have any problem with the way that the president characterized this? >> no, not at all. i think andrea just in looking at the regulator's responses, this has been a very complex trade. i think all of us wanted to see higher capital standards in our financial institutions and fortunately jpmorgan has a huge capital base. this is a couple months of earnings. this is no threat to the system or threat to them. but i think all of us want to understand, you know, i think you know and household conversations you know that we have this thing called the volcker rule and the question is, if the volcker rule was fully implemented, would this trade have been permissible or not? and are these kinds of trades things that hedge against risk that the bank has in their portfolio or do they make them more risky and all of the regulators involved have sort of stepped back and said, you know, this is a really complex transaction. we're not really re

. >> if bob corker is yengenuine in pursuit of this, i love it.he says we have done the investigation and we see we should deregulate more, oh my god, that's insaneityinsanity. let's see how it turns out. professor morici and david sirota, thank you for joining us. when we come back we have breaking news. hang in there. an amazing story about how they have privatized prisons in louisiana and the devastating consequences to that state because of that. we will talk about that when we return. . >> i am the warden at louisiana state penitentiary. i have 5,145 inmates, about 4,000 lifers and old age is creeping up. catch the premiere of the gavin newsom show. with special guests: >> i'm lance armstrong. if somebody put my back into a corner, i'm coming out swinging. all have in common? sam adams! last year we brewed more than one new beer every week. some we'd been experimenting with for years others...we just found a cool ingredient. many we brewed just once to see how they would taste. why? -- because at sam adams we love beer. ♪ ♪ look, i don't play

. >> if bob corker is yengenuine in pursuit of this i love it.we have done the investigation and we see we should deregulate more, oh my god, that's insaneityinsanity. let's see how it turns out. professor morici and david sirota thank you for joining us. when we come back we have breaking news. hang in there. an amazing story about how they have privatized prisons in louisiana and the devastating consequences to that state because of that. we will talk about that when we return. . >> i am the warden at louisiana state penitentiary. i have 5,145 (vo) don't miss your chance to catch the premiere of the gavin newsom show. with special guests: >> i'm lance armstrong. if somebody put my back into a corner, i'm coming out swinging. eliot spitzer joins the new news network. >>we don't stop until we get answers that are truthful, serious and not based on simplistic answers. >> all right. back on the jopling turks. earlier in the program we were talking about how president obama said jamie dimon was one of the smartest bankers we have and j.p. morgan was

senator bob corker is a man who called for the hearings and he's outfront tonight. good to see you, senator. >> good to be with you, erin. >> what do you want to find out? >> well, this is an interesting point in time. rules are being promulgated right now that affect all of these things. the question is, under current laws that have been passed, if they're fully in place, was this in fact a proprietary trade or not, which is something we don't want to see happening in these institutions, or was this really a legitimate hedge that would take place within an institution. we've been getting a lot of, you know, this has evolved. we had a lot of conversations this weekend with the examiner in charge at the occ that oversees jpmorgan. we got one piece of input that's evolved, that walked back away from that. i guess at the end of the day this is very complex. this is certainly no threat whatsoever to jpmorgan as far as it being a goal for the entity. >> it's small relative to their assets. >> the issue is there are a lot of rules being created right now. whenever you hav

. >> i am bob corker, and i am proud to represent tennessee in the united states senator. when i was 25 years old the saved $8,000 and started my own construction company. i worked hard, and my business expanded our country's free enterprise system gave me the opportunity to earn success and with the american dream. i became involved in public service to provide my neighbors with the opportunity to experience the american dream themselves, and i came to washington with the same goal. i feel our country is moving to a place where politicians have lost sight of the value of burned success. politicians are bankrupting our country by passing legislation without paying for it, and abandoning the free market principles that give people the opportunity to succeed. it is disappointing, and i can assure you, highly frustrating to see what happens here in washington. more spending and debt, and taking tough decisions down the road, literally robbing the next generation of the opportunity to pursue success and live their own american dream. last sunday marked three years since the se

others like tennessee senator bob corker are now calling for a hearing into jpmorgan's losses. in the meantime, there's growing concern this is just the beginning of more problems for the financial industry. >> jpmorgan chase and jamie dimon are the brightest guys in the room. if they have this problem, god knows how many people have this problem. this could lead us back to where we were in 2008. >> but not every bank engages in the type of practices that led to jpmorgan's massive loss. in order to take that level of risk, a bank must be large enough and have access to significant capital. some of the other banks which fit that description, are citi, bank of mechanic and wells fargo. >> thank you very much. >>> with us now from newton, massachusetts, is elizabeth warren, democratic senate candidate in that state. she chaired congressional oversight panel for bank bailout. good morning. >> good morning. >> good to see you. >> good to see you. >> what do you hope is the fallout from this in terms of regulatory action? >> well, i'd like to see some real accountability here. i'd li

that's a little vague and today senator bob corker of tennessee called for a hearing and he said we needhappened at j.p. morgan. so it's clear republicans want to get to the bottom of this because they know politically what happened to this $2 billion loss is very difficult to explain. >> on the other side, senator bernie sanders wants to break up these banks because it's too big to fail and it's too dangerous. j.p. morgan chase, jamie dimon, they were the gold standard -- i hate to use that pun. the gold standard. >> they were. >> especially jamie dimon whose reputation is sterling, by all accounts, brilliant guy and for this to happen on his watch must be such a humiliation. >> as you saw today he was quite critical of his company, calling it sloppy and he's been quite outspoken against some of these regulations saying they would strangle the banking industry, but i think he's going to be under the spotlight. you know who else will be under the spotlight? all of the regulators. the securities and exchange commission and the fed because these are the people who are supposed to be watchi

company start-up guru out of colorado, jean casarez, $231, married to a haines heir's, senator bob corkerntative darrell issa from california is the car alarm king, $448 million. when you look at a lot in congress, some had wealth, married wealth, created wealth through companies, some are serial entrepreneurs. there's no question the people talking about the 1% versus the 99% fairness, taxes, income and equality ain't like you and me, folks. >> anybody throwing peanuts at the tv, isn't this the american dream, what we're all striving for, to do well? >> we've chosen our lawmakers from wealth. i'm not a congressional historian, there's rockefellers in there, always been a lot of -- >> but when you're talking about the 1%, dogging them and all that. >> it's keeping them honest thing. know who they are, when you listen to them, just remember, you know, they're -- >> don't indict them. >> they have no trouble paying the mortgage and might not have a mortgage. >> thank you, christine. >> if you're going orun for congress you have to afford it, probably have to make some money somewhere. pla i

. >> you have senator bob corker, republican from tennessee, some of the regulation according to "the wall street journal" saying congress needs answers. i thought we needed answers a couple years ago, yes we apparently need answers again and calling on questions specifically what triggered this loss, this $2.3 billion loss. obviously that must be a bad sign for morgan, right? >> it is. and i think their ceo to his credit acknowledged they have a lot of egg on their face. this is a serious misstep, not one that threatens the institution or profitability but still a sizeable loss and one that should not have happened. so a lot of people are going to be wanting answers and legitimately so, and i think again as we said it earlier, can anybody really manage these very large, complex institutions, big, big question. >> jump in, guys. >> sheila, it's ali velshi. good to see you again. we spoke on the weekend about this. >> we did. >> here's the thing, as you said, this may or may not have been involved by the volcker rule. you are a republican, we normally associate democrats with wanting t

so republicans led by bob corker of tennessee are quoted here as saying oh, no, no, no, this doesn't mean we need any regulation on wall street. this is just sort of like an aberration. isn't the message pretty clear here? as to the fact that these financial firms do need some kind of rules and regulations? >> i think it's extraordinarily clear that financial firms need to be regulated in some way. here's what i think is tricky about what happened with jpmorgan then i'll get to the politics. what's tricky about it is what happened wasn't "the stephanie miller systemic. this wasn't a big wave of failures. this is a big loss for jpmorgan and its shareholders. the problem is it just showed us how it can get really bad. if this was allowed under the vocal rule there's nothing that could stop something else that could be bigger, broader more "the stephanie miller "the stephanie miller systemic and involve more banks. that's the worry reflectively, of course in washington, as you know, industries don't like to be regulated and their champions in congress never see a reason why there should