asked to resign from the board of the federal reserve because that's like putting the fox in the henhouse. thank you. >> a couple of callers have mentioned to federal regulators. i want you to note we had a technical ♪ note with all of the regulators and i want you to know that we will show that to you later in the program schedule for you. just a quick look on twitter and some of the reaction on the jamie dimon testimony. cnbc says dimon kept his cool. that's in quotes. he was testy throughout. some of the twitter reaction this afternoon. here's santa fe, paul is on our republican line. go ahead, new mexico. >> hi. thanks for taking my call. as far as mr. dimon

many people, me, myself, see this as a situation where the fox is guarding the henhouse and that we need real reform in fed to make sure that it's representing the middle class, small business of this country rather than just wall street and the big-money interests. would you be supportive of legislation that i introduced which says that representatives of financial institutions, not just mr. diamond but others, get off of the fed and they be replaced by folks from the general public? >> well, you raise -- senator, you raise an important point, which is that this is not something the federal reserve created. >> right. >> this is in the statute. >> yeah. >> congress a in the federal reserve act says this is the governance of the federal reserve, and more specifically that bankers would be on the board. >> six out of nine. >> sorry? >> six out of nine in the renal nal banks come from the banking industry. >> that's correct. and that is in the law. >> that's right. >> and what we have done is tried to make something useful out of that. what we've done is first of all we have take an lot of

morgan teach us a lesson and who make sure it won't be just more of the fox guarding the henhouse then the occupy wall street movement maybe one that's leaderless but one of the more involved prominent participants is running for congress we'll speak to him on our show about his campaign and about where the occupy movement is now have all of that and more for you tonight including a dose of happy hour but first let's take a look at what the mainstream media decided to miss. all right everyone's of the historic recall election in wisconsin has come and gone and it is about everywhere you looked you found someone talking about the role money played in this election the first big one really in this post citizens united era. governor walker will keep his governorship after the most expensive campaign in wisconsin's history about two thirds of governor scott walker's donations are from out of state and special interest it's seven to one it's unbelievable if i want to go on the that voters are casting ballots in the most expensive race in that state's history they're doing it with insurmount

he says they come to us like prefabricated henhouses, and they end up doing our thinking for us. if you buy into the idea without even knowing it that social justice is a serious and real concept but at the same time it's just something nice and good that everyone should agree with, then you sort of came into the movie ten minutes before the ending because you've let someone else do an enormous amount of thinking for you because social justice is a deep ideological concept. >> host: and you sort of begin this saying this idea students would come up to you during a lecture, and they would say i disagree with you, but i would defend your right to say whatever you want to say to the death. tell me about those social experiences. >> guest: sure. part of it is i speak on a lot of college campuses, and i have for a while. and one of the reasons i wrote liberal fascism was i was so fed up with being called a fascist. even a cursory view would reveal there weren't a lot of nazi gold bergs. [laughter] one of the things i've noticed is these kids are, they're not just, they don't just have

this is the fox guard iing the henhouse. >> allison joison, do you expeco come out of the hearing inorm of more wall street reform? >> well, that is a question, and one thing that jamie dimon said when he was testifying before the senate banking committee, he wants stronger regulations of what is in place now and does not want more regulations passed on to it. and now with what has happened with jpmorgan and the $2 billion loss at the very least is that it has created a new focus on the volcker rule to prevent banks from trading on their own accounts which is part of the dodd/frank act that was passed. a final rule is expected to come out soon, and so that the big question with it, fredricka, is how tough will the law be? the law was written for acceptance of the banks to trade h with their own money if the goal was to hedge against the risks, but critics say that what happened at jpmorgan shows that stricter rules are needed. >> and alison, if i am not a shareholder, do i care about the losses? >> yes, you do, because if more regulations are piled on because of the trading losses th

many people, including myself, see this as the fox guarding the henhouse. we need real reform in the fed to make sure it is representing the middle class, the small businesses, rather than just wall street and big money interests. we do suggest representatives of a financial institutions get off the fed and be replaced by members of the general public? >> to raise an important point. this is not something the federal reserve created. this is in the statute. use of this is the governance of the federal reserve and, more specifically, bankers would be on the board. >> 6 out of nine are on the board. >> that is in the law. what we have done is try to make something useful out of that. first of all, we have taken a lot of actions to negate conflict of interest. under dodd-frank, -- >> i wrote that provision. >> it also found that there were no actual conflict of interest because there is a fire wall so that the bankers do not have any information or ability to influence this decision. i will answer your question, though. the answer is congress set this up. we m

>> well, the fact is, when it comes to the this administration, do we let the fox guard the henhouse look the destruction of our human intelligence network was a problem in the late '90s. and here we see the exposure is of it with the operators, with the agencies. as both gentlemen said, talk about recruiting others to work with us and trust, which is necessary. the president protests a little too much, megyn. that's what he see in this. megyn: what is he supposed to say? half protestation if it is not true and he is being accused of endangering american lives by working his own political advantage? >> well, we see that. and by the way this is the first administration i've seen make an actual movie out of the one of issues with the bin laden raid working with hollywood. megyn: people want to know about that. >> bottom line, people, there are very few people at these meetings. they're held at highest level. wherever this is coming from it is close to the president's inner circle. the danger to america and our interests abroad and down the line how do we work with our allies? trust in