jp morgan's stock is the same place that it was in 1997. shareholders should be getting angry, not just the regulators. what we need to do is transform some of the insensitives. jp morgan is not just cammibling with their shareholders money. they're gambling with the depositors money and our money. the fdic ensures their deposits. back in '08, '09, they said from the financial industry you go issue debt and we'll guarantee it because they had a tough time selling it. jp morgan issued a 10s of billions of debt, and they have not yet refinances that. apart from the free money they're getting from the fed they are using our guarantee and our money in effect to do these sorts of things. i think this should shut them up once and for all when we say don't go gamble, don't place bets on redifficulttives and don't run an offshore hedge fund without cash. >> let me summarize this. they can issue debt, borrow for less. they have an advantage over all their competitors. they're using our money to take big risks. if the risks come in, they take the ups

and jp morgan city, bank of america and morgan stanley.to more of these domestic-oriented banks and say these are less complicated models. i'll go there. >> look, i think there's a lot of opportunities in the financial space. whether it's a bank or whatever position it is, we look at stocks on risk reward. so when we get into a stock, we look at a downside price scenario and an upside target. when you get to a position where it's trading it, the price is skewed down towards that downside and you've got significant upside. maybe that's an tinted to add to a position. i think just to go back to what was saying is really important. i don't think jp morgan is coming into the office and any clients stop doing business with them or anyone is shutting down their checking account or anything like that. i think that this is an issue which there's obviously panic in the market today. let's look at it from a financial standpoint. it's a 25% hit to earnings. you're putting a 14 multiple on that hit to earnings this year. now, the stock is trading at 7

as the fallout continues jp morgan ceo is trying to control the damage acknowledging the company's loss but stating everyone in business makes mistakes. diamond says jshg p morg-- jp mn has done nothing wrong. >> we know they were sloppy and know we were wrong. regulators should look at something like this. we are open to regulators and they will come to their own conclusion. we plan to fix it learn from it and be a better company when it is done. >> dimon supports 70 percent of the dodd that's the 2010 law that is passed for banks. there is a need for congress to exercise more regulatory control. >> i think what it points out is there are no rules of the road for hedging order ri tives. this needs to happen. the bill provide for it but it hasn't taken place. i have considered it an enormous loss in a high profile very good investment bank. >> republican senator says the regulations already in place should have caught it before the loss ever happened. >>> i think there needs to be over sight investigation to find out what exactly happened rand why the president's signature financial ser

and jp morgan's chairman and ceo is speaking out. is jamie dimon says that jp morgan chase made a terrible mistake and almost no excuse for the the loss blamed on risky trading. we do know it cost the giant bank 10% of its stock value. hurting every 401(k) and investor who has money this that company and a lot of people do. they may not even know it's part of their nest egg. dimon in an interview saying he did not know the extent of the problems when he talked about concerns about the the bank's trading. and a so-called tempest in a teapot. >> i was wrong when i said that, and the reasonway came public we want to tell you, something wrong a mere four weeks ago and jp morgan the only bank in the u.s. to remain profitable, the latest development, raising some interesting questions. about whether financial regulators and lawmakers will now have full power to control the banks. and if the relationship between washington and wall street is about to change. and peter doocy with the news in washington. >> the ceo of jp morgan said today tha

what jp morgan does, they use hedging strategies.happened specifically in this case, when they were readjusting the hedge which was put on by some smart, and good traders and really good risk managers, the economy in europe started to adjust a little bit and they actually were on the wrong side for a moment, and that's, that literally created this ripple effect within jp morgan, it's not going outside jp morgan, the economy is not falling. jp morgan understands well and it's a bad trade, that's all. >> jamie: why are we hearing about it now if it's a strategy used before? obviously, 2 billion is a big number, it's somebody's money. why do you think we're hearing about it. >> right and whose money it is, it isn't individual's money it's the corporation's money. they're still going to earn 4 to 5 billion dollars in this quarter. they're going to take a loss on this. i think they're actually going to take a close to a billion to 2 billion dollars in addition to the number that's factored in. why are we hearing about this, jamie? i don't

ina drew, 30 years at jp morgan, gone. she made nearly $15 million last year. and she oversaw the division that should have stopped this bet from going bad. ceo jamie dimon trying to reassure investors, and everyday customers. >> we made a terrible, egregious mistake. there's almost no excuse for it. >> reporter: but american taxpayers who came to the rescue -- that bailout of the banks -- now ask, wasn't there supposed to be greater oversight after the financial collapse? >> robert heard of this $2 billion loss. >> i think, not again. >> you worry about the little guy, us little people. >> reporter: the reality, financial experts say, is that the big banks, in many ways, are still at it. impossible for anyone policing them to keep up. >> it's like riding a tiger the way our financial system works. the regulators, they were aware of some of these trades. but apparently, they didn't have a grasp of how quickly it could turn for jp morgan either. >> reporter: jp morgan argues tonight even with a loss of $2 billion, the bank is still rock solid. after all, they ma

i guess what upsets me so much about this story is that jp morgan and jamie dimon and their lobbyistsbeen the chief fighters against the higher capital levels and against the derivatives regulation that would make sure taxpayers are not on the hook when big banking bets go bad. right? >> i see what you're saying because it's important to keep in mind of that 2 billion, they will still show a profit of several billion. >> i understand. >> what concerns me is is they had 40 regulators in there. what are they doing and why weren't they -- >> they will never know as much as the bankers do. that's exactly why you need these capital levels. >> they were working inside the firm. they were assigned to regulate it. >> i understand, jimmy, but i guess the point i'm making is no matter how smart your regulators are, they're never going to be as smart as the folks on wall street who are coming up with ways to get paid and come up with these risks. you need capital and you need a way in the derivatives. if they pay, that's fine. >> not only do i know all the lobbyists in jp morgan, worked with the

you wrote a blog, a large piece of the profit that jp morgan chase has gotten-- >> 25% of jp morgan'shis london hedge fund, which had $360 billion in assets under management which makes it one of the biggest if not the biggest hedge fund in the world. and no one knows it exists really. >> eliot: what does that do in your mind to the credibility of the claim that was being made by jamie dimon that these were just hedging positions. laughable? >> hedging like all hedge funds are hedging. you can always come up with some position in the bank where you're quote/unquote hedging but the great genius of the woman in charge of this is every time jamie dimon picked up the phone and told her to put it on the hedge, she would turn it into another $90 billion of profit. they were both hedging and making billions at the same time. >> eliot: these are not just hedges, she was being paid $14 million a year. you don't pay someone $14 million for just being a risk manager. you have to be a profit maker for that type of compensation. >> this underscores the weakness of what the volcker rule was going t

>> jp morgan stock is down more than 12% in two days. wiping nearly $20 billion in value from the bank. >> every investor needs to care about this. this is another example of the kind of event that could knock down 401(k) portfolios, which -- we'll stay on this. a trader known as voldemere, it's believed he'll go as well. the annual shareholders' meeting couldn't come at a worse time for the bank. it's tomorrow. and shareholders have shown in recent weeks, speaking with a much louder voice now. a lot of explaining tomorrow. >> new worries out of greece made for a rough ride on wall street today. the dow took a tumble, closing more than 125 points, a painful stretch now for the market. more than half of the all the gains so far this year have been wiped out in the past two weeks. >>> and from your money to safety, a startling new security breech at one of the airports used by the hijackers on 9/11. a high-ranking member of the security team at newark international airport was arrested today after nearly 20 years in his crucial post, abc's

this even today after a jp morgan chase lost over $2 billion in some high risk trades.ets with our money. here's another example. the bush tax cuts. they were supposed to create jobs. but instead of jobs we got deficits. so the republicans answer? do it again. yet another example global warming is getting worse. so the republicans say give oil companies more tax cuts. sure let's become even more dependent on fossil fuels. conservatives may slam roosevelt for expanding federal power but his greater legacy should be a government that experiments and learns and throws out the stuff that doesn't work. it would be nice if romney could [ train whistle blows ] [ ball hitting paddle ] [ orbit girl ] don't let food hang around. yeah! [ orbit trumpet ] clean it up with orbit! [ orbit glint ] fabulous! for a good clean feeling. ♪ eat, drink, chew orbit! ♪ polar shifts will reverse the earth's gravitational pull and hurtle us all into space. which would render retirement planning unnecessary. but say the sun rises on december 22nd and you still need to retire. td ameritrade's inves

you were paying pennsylvania to tattention to the filings you wouldn't have gotten in. >> you have jp morganire, nasdaq under fire, we'll see who is impacted the most. i think there's going to be a lot of blame to go around. >> from the nasdaq to morgan stanley, black eyes in the wake of the ipo mess. are retail investors the real losers? give us your thoughts. we want your thoughts on this conversation. tweet us @cnbcclosingbell. we'll get responses coming up later in the next hour. >>> meantime, we're coming back with the closing countdown for this tuesday. >> seven month minutes away from the closing bell. >>> after the bell, are facebook shares looking attractive to famed investor niles? he was negative on the deal going in. is he still shying away from the stock? we'll talk to him in the next hour of closing bell. always an astute investor dan niles. you'll watching "the closing bell" on cnbc first in business worldwide. with every door direct mail from the postal service, you'll find the customers that matter most: the ones in your neighborhood. print it yourself or find a local partne

. >> reporter: peter agrees. >> the culture of jp morgan breeds this kind of nonsense. >> reporter: he compared jp morgan's chairman to a local bookie. >> the difference between diamond and the guy making book on the coroner on the horses is jamie wears a good suit and he's not interested in making loans. he's interested in taking your deposits and gambling with it. he just gambled and lost. >> reporter: the $2 billion in losses were not just bad but embarrassing for jp morgan whose chairman is an outspoken critic of the voga rule which aims from making bank's risky movement with their own money. >> it's going to be really tough for mr. diamond to argue against it now. >> reporter: as difficult as the $2 billion loss will be for jp morgan, he's said it's certain will not bring the bank down. when asked if he will keep making these type of risky mistakes, he said absolutely. >> thank you, matt. >>> president obama having a high dollar dinner with actor george clooney at his house. the cost to attend, a mere $40,000. the obama campaign is hoping to raise at least $14 million tonight. mea

but we're all right at jp morgan morgan.hen they say, let's invoke the vocal rule so you're not gambling with your client's money. he said all those concerns are, quote, infantile. he further said, quote, i'm a little tired of the constant vilification of these people refer to go bankers. this is not a casinos until we found out it's a casino! and he's the guy running it. guess what happened, it turns out he made a bad bet and they lost a tremendous amount of money. now officially they're reporting a loss of $2.3 billion based on a credit derivative trade that went badly. but in reality jp morgan said it's probably $3 billion. other analysts have said it's $4 billion. my guess is it could be the tip of the iceberg. they lost 12% of their share price or the price of jp morgan shares, which means they lost another $18 billion. what happened jamie? i thought you were a genius? i thought you had it figured out. turns out you were running a casino right? keep in mind that punishment business. when he goes on "meet the press," did

the balance sheet is in favor of jp morgan.in the banking industry for the bank, the company and jamie dimon in particular. when you think about it, i know that this end of the stable blood thirsty. bob is heavy be guillotine metaphors today. >> dana: greg, given all of that, is it surprising that the first thing that someone aed in washington was we need more regulations, even on the regulation they put forward wouldn't have cover this in the first place. >> greg: this story has absolutely no meaning for me whatsoever. i don't care. this is a private company. the net worth is $189 billion. this is 1%. it lost half my money in the last ten years. nobody cared about that. it's my money. i don't care. why does the media care? why aren't you screaming for head of steven chu of solyndra or fisker? that is public. this is private. why do you care about the private money? >> eric: it's not even steven chu. it's president obama. steven chu equals drew in this case, they put the bad bets on. >> greg: why does the media obsessed with th

it's a $2 billion blunder for jp morgan chase. >> jp morgan chase is surprised $2 billion loss and it sent shock waives through wall street. the ceo made the arrangement to announce it to people. >> the new strategy was flawed, complex, poorly reviewed, poorly executed. >> the giant loss came from a trading portfolio. one í trader designed the investments from the uk office. the news sent chairs of jp morgan -- the news sent shares of jp morgan chase lower. >> the office that managed the losing portfolio was betting that the economic recovery would continue. last month's market was a disaster. die monld says the bank -- diamond says the bank remains profitable. >> it has proven to be risker and less volatile. >> diamond said the bank is learning from the mistake and will mix it. he admitted it's a major embarrassment. it has attracted the attention of the sec and is fuelling new debate on whether wall street needs a tougher crack down. >> jp morgan stocked over night dragging over stocks down with it. the markets are are actually all -- are actually all up of this noon. >>> around mar

. >> three come executives out at jp morgan chase after its embarrassing $2 billion loss. has wall street finally learned its lesson? >>> and will he testify? john edwards defense begins today. will he take the stand? >>> survivor stories. the only person to walk away from a small plane crash. >>> and heads up. one new jersey town cracks down on texting and walking. >>> good monday morning, everyone. i'm rob nelson. >> and i'm diana perez, paula faris is on assignment. we begin with the fallout from the mass i have loss suffered by jp morgan chase. >> at least three high-ranking executives are being shown the door. tahman bradley has more on that from washington. >> reporter: the jp morgan chase ceo says the losses do not pose a threat to the bank. many americans are concerned wall street did not learn its lesson from the financial crisis a few years ago, which has many investors very concerned. misery might be felt across wall street today amid rory about the nation's biggest bank, jp morgan chase. they're trying to rebound from losing $2 billion in six weeks due to risky

first, jp morgan's big loss. $3 million is causing washington to question whether there's a need for more regulation for banks. the unit that caused the losses was supposed to help the bank hedge the risks, but instead it created a black eye for ceo, jamie dimon. here's what he said on the conference call. >> these were egregious mistakes. they were self-inflicted. we were accountable. what happened violates our own standards and principles but how we want to operate the company. this not how we want to run a business. >>> the courtroom upburst interrupted a murder trial. a brother shouted you killed my brother, go to hell and then threw a shoe at him. he has admitted to killing 69 people at a youth summer camp in a bomb attack last july. they're trying to determine if he's sane. >>> well, the libertarian party nominated gary johnson as the candidate for president. he supports a woman's right to choose, same-sex marriage and the legalization of marijuana. he told me he thinks he can convince voters to abandon the

this even today after a jp morgan chase lost over $2 billion in some high risk trades.re's another example. the bush tax cuts. they were supposed to create jobs. but instead of jobs we got deficits. so the republicans answer? do it again. yet another example global warming is getting worse. so the republicans say give oil companies more tax cuts. sure, let's become even more dependent on fossil fuels. conservatives may slam roosevelt for expanding federal power but his greater legacy should be a government that experiments and learns and throws out the stuff that doesn't work. it would be nice if romney could acknowledge even that much. that's my view. is frowned upon in this establishment! luckily though, ya know, i conceal this bad boy underneath my blanket just so i can get on e-trade. check my investment portfolio, research stocks... wait, why are you taking... oh, i see...solitary. just a man and his thoughts. and a smartphone... with an e-trade app. ♪ nobody knows... ♪ [ male announcer ] e-trade. investing unleashed. while you're out catching a movie. [ growls ] l

. >>> ahead tonight, more fall out from the $2 billion mistake at jp morgan chase. heads are rolling and lawsuits could get worse. >>> who will replace harry thomas junior on dc city council. talking to residents in ward 5 ahead of to morrow's special election, we will be right back >>> lawyers for john edwards opened up their case today. after weeks of testimony about his affair and whether donor money was used to cover it up his attorneys are focussing on campaign finance law. the first witness, the cfo for his campaign committee she says money from two donors in question was never reported because the fdc said it was unnecessary. edwards pled not guilty to if he rad finance violations. >>> chairman -- federal finance violations. >>> chairman is refusing to meet with this woman, lawyers asked his staff for a meeting in his office on the hill. king said he declined noting the meeting would have invite add media circus. nine secret service agents lost their jobs in the wake of that scandal. >>> president obama making a pitch to women a crucial voting block in the pr

i sat down with jamie dimon, ceo of jp morgan chase to talk about jobs and economy and the 2012 election. that was the day before news broke about the $2 billion loss that resulted from risky bets that the bank made. he agreed to sit down again and respond to the news and questions that have arisen because of that. here now is the rest of my conversation from earlier this week when i started by asking mr. dimon whether he thinks the american economy is better off now than it was four years ago. >> that's a really good question. could i give you historical context? america has the best economy in the world, best military, best universities, businesses are the envy of the rest of the world, i'm talking small, medium and large. wipdest and deepest most transparent markets and hard working entrepreneurial workforce. we were dealt a pretty good hand. the economy is getting stronger and very hard to measure versus four years ago. >> you have made the point that even if the economy is getting stronger, we could have been doing a lot better. how? >> let me go back a little bit because we had a c

the trading debacle from jp morgan. what the man at the head of the biggest bank got so ring. >>> and the fbi closed in on the fugitive wanted for two murders and two kidnappings. >>> and well, you probably have seen her on the cover of "time" magazine. breast-feeding her 3-year-old son. tonight, she comes outfront. >>> good evening, everyone. i'm erin burnett. "outfront" tonight, warning signs ignored. the fallout swept around the world today from america's biggest banks, multibillion dollar loss on risky trades. in washington, senator carl levin held a conference call with reporters about jpmorgan's shocking trading losses which could be up to $3 billion and the credit rating agency fitch slapped jp morgan with a drowngrade citing reputational risk. stocks plunged taking other banks down. the boss, america's most well-known banker was taken by surprise. here's jamie dimon one month ago responding to investor questions about bad trades and his risk management unit. >> it's is a complete tempest in a teapot. sophisticat

jp morgan's big loss is reminder of the 2008 financial collapse.s bailed out big banks and then calls for greater oversight but industry executives including jp morgan's executive tried to loosen regulations on trading and he knows the $2 billion loss will hurt the bank's credibility. >> we know we were sloppy. we know we were stupid and we know there's bad judgment. >> reporter: and we learned diamond will be at a shareholdermeeting in florida and likely face a vote to adopt a independent chairman. linda so, abc2 news. >>> the class of 2012 is fairing better than the predecessors in the hunt for jobs. hiring is not back to previous session levels the unemployment rate for college grads is 24 and under average 7% for the month of january through april. that's down from last year and three years ago. but, to get a job many are settling for lower salaries or moving to less than desirable locations. >>> how does your savings account compare to the debt? for many americans, not looking very good. the study found that one in five households has more uns

jp morgan chase could have been le lehmman brothers all over again.son that jamie dimon reportedly got nauseous and couldn't brooet when he first saw the details about the size of the exposure. there's a crucial lesson about transparency and the danger and allure of dark marks. starting in january, the existence of the so called london whale became the focus of obsessive gossip and rumor. someone in jp morgan chase's london office turned out to be a trader and buying up ungodly amounts. so much, he was single handedly moving the price and various traders were losing money. and once the london whale had been exposed in the press, he responded by doubling down. but now that they knew what he was doing and he was more or less out on a limb, they could call his bluff and charge a very, very steep price to climb back down to safety. hence, the massive losses. here is what's so weird. the incompleteness of the information. and the fundamental reason for this, a credit derivative is traded over the counter. trading over the counter means it isn't listed on t

that's the jp morgan chase case.y lost 2 billion, they were prepared to say not only did it happen in a bank, but there would be no regulation of that derivative action whatsoever. >> let me get to secretary rice. it seems to me just in terms of the people who don't understand all of this, they love it on wall street. the more complicated the better. haven't they seen all of the movies? haven't they seen hank paulson played by bill hurt, and the margin call, movie after movie saying these guys are ruthless sobs. they'll do anything to make money. don't trust them. keep the lights on them and keep them regulated and watched. by the way, when they get in trouble, they come up with the begging ball. take care of us now. come take care of our billions. they're very big on big government when it comes to saving they're keesters. yet don't they have any shame? that's my question. these guys. >> they have absolutely no shame, and i think most of the public is very skeptical and distrustful. that's where the tea party moveme

we have learned at least three executives at jp morgan chase are on their way out after bad trades cost the bank $2 billion. >> >> reporting on the problem and the brews battle over banking regulations. >> reporter: the "wall street journal" reports three executives at jp morgan chase will resign in the wake of a $2 billion trade loss. the shakeup comes in the apology of the man who runs the nation's largest bank. >> we made a terrible mistake. >> reporter: a trader nicknamed the london whale, managed the investments. >> the strategy we had, badly monitored and should never have happened. >> reporter: c exo jaime diamond said last month, he was wrong to ignore warning signs, but he said the bank is not in danger of failing >> we are still going to earn a lot of money. we hurt ourselves an our credibility and you have to fully expect to pay the price for that. >> >> reporter: that has already happened. the price of jp morgan's stock dropped and securities and exchange commission has launched and investigation. more than three years later, some say the banking industry is taking on too mu

in early trading friday the news sent jp morgan shares plummeting by 9% with other shares falling 4%.ning me what this means for wall street and possibly for your wallet is consultant hang mcclarty. >> thank you. >> jamie dimon making an apology, how unusual is that in. >> unusual for jp morgan they are widely viewed as the strongest bank on the street on wall street, for them to have to acknowledge they made a major mistake like this is a big deal. >> embarrass, huh? >> absolutely. >> if there was jp morgan's own money, they were trading on their own account, why did the stock market panic? >> because jp morgan is seen as a bellweather in the banking industry, least affected by the mortgage cry circumstances everybody looks to them as the most stable. if they have what they are terming a rogue trader that was making trades that cost them i think up to $2 billion what is they are saying, that means there could be cracks in other institutions not as strong. >> i want to transition to facebook, the ipo coming out this week, what is involved in the mechanics, in taking a private company

even if jp morgan chase didn't do the derivatives, they're still dangerous.ember, aig was an entity that got into serious trouble with derivatives and they couldn't pay off and they were in the bank. so yes, the boca rule -- >> explain the boca rule in the english language. >> if you were a bank and received deposits and because of that you get positive assurance from the fdic, you may service your clients but you cannot engage in trading on your own account. you can lend money -- banks are supposed to do that. they're supposed to take money from people who have excess capital, bundle it up and give it to people who will produce goods and services. if you're a customer, a money manager, you can do things for your customer. that's the customer's money. but you can't take the money that the federal government insures and get into these bets. by the way, interesting point that the chief of staff on the committee of my side pointed out to me on this floor. you're going to cut their profits, but hedging isn't supposed to be a profit-making operation. >> exactly. >

up next, you heard about jp morgan's big loss earlier in the show.ow, hear how it could become your big gain. plus, state lawmakers overturning a ban on school bake sales. now, one stock is ready to turn a big fat profit for you because of this. ♪ ♪ why do you whisper, green grass? ♪ [ all ] shh! ♪ why tell the trees what ain't so? ♪ [ male announcer ] dow solutions use vibration reduction technology to help reduce track noise so trains move quieter througurban areas all over the world. together, the elements of science and the human element can solve anything. [ all ] shh! [ male announcer ] solutionism. the new optimism. go schedule a meeting that's a little more worthwhile. and go to bass pro shops for great deals like these ladies drawstring shorts for under $10. and the ultimate anti-backlash baitcast reel for under $80. bass pro shops. your adventure starts here. >> predictions, gary b. af got it. >> we talked about 2 billion dollars in trading losses, just trading losses for jpf is a buying student that's going to be shrugged off. the stock is

. >> reporter: from the ceo of jp morgan chase an explanation on a stunning $2 billion trading loss. >> we made a terrible egregious mistake, almost no excuse for it. >> shrugged off mounting concerns that something was terribly wrong with a $100 billion hedge investment that is being described as a bad bet. >> we know we were sloppy. we know we were stupid. we know it was bad judgment. >> reporter: ks a reminder of the meltdown that upended the economy four years ago. mainstream americans paid a steep price and the economy is still crawling towards a recovery. this time around, jp morgan's reputation and stock price are taking a hit but the company still expects to turn a profit. for democrats, this is a warning sign. >> we're not trying to stop banks from losing money, we're trying to stop them from losing moneys that will cause damage to the -- >> reporter: the dodd frank law designed to reign in wall street but republicans say it's stifling investment. >> you have so much government regulation coming in you can't see the forest for the trees. >> reporter: a fight over regulation

there is more fallout today from the eye-popping $2 billion trading loss of jp morgan chase.he firm's top investor was forced to retire and as steve handelsman reports congress wants to know if the tighter regulations put into place after the 2008 financial crisis are tight enough. >> reporter: with jp morgan chase stocks still dropping after bad trading bets that could cost the bank $3 billion or more, president obama today at a graduation just up town from wall street took credit for tighter banking regulation. >> we know that we're better off when there are rules that stop big banks from making bad bets with other people's money. >> reporter: but mitt romney has been saying the obama crackdown has not controlled big banks. >> they've gotten bigger and the small community banks are the ones that have been most hurt. >> reporter: jp morgan today forced the retirement of investment chief ina drew. ceo jamie dimon was contrite sunday on "meet the press." >> in hindsight we took far too much risk. >> reporter: dimon opposed some tighter regulation but was known as cautious. is

government might slap a few people on the hand, but at the end of it jp morgan will still continue toanage 2 trillion-dollar worth of america's assets. morgan stanley goldman sachs will continue to manage another 8 trillion-dollar. and the american public will be put in a place where they can't even trust their broker with their money. when that happens capitalism fails. that's the worse problem. >> john, i have to agree with you. facebook is us. we helped build facebook. that's our information, our time our eyeballs. >> and it went public like all your private information. >> facebook could not figure out the privacy settings. >> that's why i'm asking these questions. this is complicated as my privacy settings on facebook. i can't to ask you this. how could zuckerberg conceivably bounce back from this? do you think they have an incredible innovation waiting in the wings? is there something that facebook will roll out when that will drive the stock price back up. >> i'm waiting for this. right now they're making most of their money off of advertising. the question is what are they als

. >> jp morgan ceo speaking out about the company's $2 billion loss. >>> today is all about mom even if she is on the clock, we will share one family's special mother's day surprise. welcome to the news at 6:00. i'm maureen umeh. we begin on wall street. jp morgan ceo is on damage control speaking out about the $2 billion lost in bad investments by the nation''s largest bank. all eyes were on his appearance on nbc "meet the press" this morning. he told the world the bank was dead wrong. peter dues see has more. >> reporter: the ceo said the $2 billion bet gone bad will give financial regulators more ammunition to clamp down on banks but he said everyone in business makes mistakes. just because theirs was sloppy and stupid doesn't mean they are toast. >> this is not a risk that is life threatening to jp morgan. this is a stupid thing that we should never have done but we will earn a lot of money this quarter. >> reporter: diamond said he supports about 70% of dodd- frank the regulations put in place after the financial crisis but this hung loss would not have been stopped by the cull

. >> jp morgan is one of the best managed banks there.amie dimon, the head of it is one of the smartest bankers we've got. they still lost $2 billion in accounting. pre leslie because they were making -- precisely because they made bets if der rivtive markets. we don't know the details yet. it will be investigated. this is why we have wall street reform. >> after the shareholders, dimon told analysts, now the members of congress want them to testify about the bucks the banks lost at scheduled hearings. >> peter, thank you. more with the panel. californiateamic for jerry brown is threatening automatic spending cuts for education. if voters reject the tax increases. brown has already called for $8 billion in cuts. in healthcare an welfare programs. >>> still ahead, the help wanted sign outside the federal courthouse. first, long memories in the west bank. [ donovan ] i hit a wall. 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 to

that was 25% of jp morgan chase's profits in 2010. this was no hedge.ting jamie dimon repeat his misdiagnosis we need a clear volcker rule to outline when and where these bets with occur. other words the banks may not survive the next heart attack. that's my view. i did not want to think about that. relax, relax, relax. look at me, look at me. three words, dad -- e-trade financial consultants. so i can just go talk to 'em? just walk right in and talk to 'em. dude those guys are pros. they'll hook you up with a solid plan. they'll -- wa-- wa-- wait a minute. bobby? bobby! what are you doing, man? i'm speed dating! [ male announcer ] get investing advice for your family at e-trade. >> eliot: it began as an authorizeed biography with the author who viewed a mentor to the subject. it ended up stirring a hornets nest of controversy when the author brought up what appeared to be doubts that that the ben bradlee felt. >> "yours in truth: a personal portrait of ben bradlee"," by jeff himmelman. thanks for joining us tonight. >> i'm happy to be here. >> eliot: y