we'll talk to senate banking committee ranking member richard shelby. utive richard large, former president of bank one. the final hour of "squawk box" begins right now. >>> welcome back to "squawk box" here on cnbc, first in business worldwide. i'm joe kernen along with becky quick. andrew is in washington today covering our story. jamie dimon facing the senate banking committee today. he's expected to apologize 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.

richard shelby, alabama, $2.5 million. bob corker, tennessee, $3.4 million. mississippi, $1.5 million. we could go on. >> i mean, this is why there is no line between religious leaders and bankers. and the on the millions of dollars they're getting to run the dollars to get elected in office and so forth, there is also the sort of additional value that is received by the fact jpmorgan chase is giving them money. it is not the only bank giving them money, the the entire industry. we're looking at a piece of it from the most largest and commercial powerful bank in the u.s., but this is the way it works. these people know partially why they're sitting there in those seats is, unfortunately, not because they're simply voted in but because that the money to basically market themselves and stay in and connect to their real friends, which are the banking community they're supposed to be legislating against. >> thank you for being with us, nomi prins, author of a number of books including, "it takes a pillage: behind the bonuses, bailouts, and backroom deals from was

richard shelby. >> one opening statement will be permitted to the ranking member. i will note that senator warner is absent 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 other materials you would like to submit. now, i will introduce a our witness. mr. jamie dimon is the chairman of the board, president and chief executive officer at jpmorgan chase and co. mr. dimon, your full written statement will be included in the record. please begin your testimony. >> chairman johnson, ranking member shelby, and members of the committee, i am appearing today to discuss recent losses in a portfolio held by jpmorgan chase's chief investment office cio. these losses have generated considerable attention, and while we are still reviewing the facts, i will explain everything i can to the extent possible. oforgan chase's six lines business provide a broad array of financial products and services to individuals,

richard shelby. >> one opening statement will be permitted to the ranking member. i will note that senator warner is absent 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 other materials you would like to submit. now, i will introduce a our witness. mr. jamie dimon is the chairman of the board, president and chief executive officer at jpmorgan chase and co. mr. dimon, your full written statement will be included in the record. please begin your testimony. >> chairman johnson, ranking member shelby, and members of the committee, i am appearing today to discuss recent losses in a portfolio held by jpmorgan chase's chief investment office cio. these losses have generated considerable attention, and while we are still reviewing the facts, i will explain everything i can to the extent possible. jpmorgan chase's six lines of business provide a broad array of financial products and services to individua

richard shelby. >> one opening statement will be permitted to the ranking member. i will note that senator warner is absent 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 other materials you would like to submit. now, i will introduce a our witness. mr. jamie dimon is the chairman of the board, president and chief executive officer at jpmorgan chase and co. mr. dimon, your full written statement will be included in the record. please begin your testimony. >> chairman johnson, ranking member shelby, and members of the committee, i am appearing today to discuss recent losses in a portfolio held by jpmorgan chase's chief investment office cio. these losses have generated considerable attention, and while we are still reviewing the facts, i will explain everything i can to the extent possible. jpmorgan chase's six lines of business provide a broad array of financial products and services to individua

sally krawcheck and richard shelby that will be an interesting program. >>> in other corporate news, general motors is holding its annual meeting. the company's ceo says gm only succeeded in changing its culture 20%, 25% from before the bankruptcy. dan ackerson will tell phil l libeau more about that at 8:30. >>> and berkshire hathaway offering to buy rescap's mortgage unit and a portfolio of loans put up for auction. >>> a few stocks question watch, texas instruments is narrowing its forecast for second quarter earnin earnings. demand for chips held up despite global economic uncertainties. >>> vehicle navigation systemsmaker tomtom striking a deal to license its maps to apple. the company looking to tap into demand for cheap or free navigation software for smartphones and tablets. shares in the dutch firm rising sharply in early morning trading. >> can i talk about that story? >> the apple story or the tomtom? >> i don't know if you saw all the mapping guys got killed yesterday in the stock market because apple is introducing this new mapping software that will compete with google'

senator inhofe and i are working so well together and it's a part of this bill, tim johnson, richard shelbyrs. it's a clear difference, but i hope you would invite leader cantor on your show and ask him what he's doing to make this happen. we're hoping he wants a bill, but we hear he doesn't. he said oh, he absolutely does, but that's what i'm worried about, frankly is that there's a leadership issue over there that says just let it go because it's 3 million jobs. it's critical to this economy, it would boost this economy and some cynics say they don't want that over there. >> well, i will leave it there. democratic senator barbara boxer from california. speak of california, i have a whole bunch of results we'll go through in a moment. thanks for coming on. >> that. >> if it's wednesday, it means it's results. california, and all of the races and the memorable viral video to punish a congressional candidate to the top of the pack, all of that is next, but first today's trivia question. before alaska and hawaii which both became states in 1959. which one with was last admitted into the union

bob corker, richard shelby, and mike crapo, mark warner, tim johnson and jack reed from the democratice. look, if someone gave you $55,000 yesterday and said he might give you another $55,000 tomorrow, what kind of questions would you ask? would you grill him? perhaps not. perhaps you would do exactly what these guys did and that's exactly what is wrong with our system. they allow them to buy our democracy. let's bring in kristin crime author of" the lost bank: the biggest bank failure in american history." kristin, is there a problem with our political system when our senators get paid by the bankers they're supposed to be watchdogs for? >> well, i think you could definitely argue that way. i mean it's hard to see how someone can be unbiased when someone else is paying their bills, right? >> cenk: well, that is a problem. let's talk about washington mutual. i think it's a good case for what went wrong with the banks. so as quickly as you can give us synopsis of what the core that have problem is. >> so wamu, a friendly bank that grew in the 1990s and pushed through risky mortgages and

. >> reporter: the committee's ranking republican, richard shelby, pursued a key line of this morning's questioning: were trades in question really hedges, intended to reduce risk. >> were you investing or were you hedging? or is it a combination of both? >> this was hedging the risk of the company. they would protect the company in the event things got really bad. >> reporter: but then, as dimon had acknowledged in his opening statement, the hedge morphed into its opposite: a bet. democrat bob menendez of new jersey pressed the point. >> when you reduce a hedge or hedge a hedge, isn't that really gambling? >> i don't believe so, no. >> so this transaction that you said morphed, what did it morph into? russian roulette? >> it morphed to something i can't justify. it was just too risky for our company. >> reporter: and that's when the hemorrhaging began at the bank. dimon said the losses in question do not threaten j.p. morgan chase, however, or the taxpayers who guarantee its deposits. but democrat jack reed was worried about the implicit taxpayer guarantee of a bank like jp morgan that

both democratic chairman tim johnson and top republican richard shelby have gotten personal donations from dimon. shelby asked dimon if he'd prefer to talk in private. >> to detail what really happened, here we're talking in general terms now, would you feel bet ner a closed hearing? >> in the end dimon only lost his characteristic cool once arguing with oregon democrat about how much the bank took in bailout money. >> i'm not going -- sir, sir, this is not your hearing. i'm asking you to respond to questions. >> now, to be honest, jamie dimon didn't have to answer that many hard questions. he got some others like what should we do about the state of the economy, the fiscal cliff that's coming, what we really don't know yet, wolf, is what this means for regulation going forward. this key part of financial reform, the so-called volcker rule named after the former fed chairman, it's still a bit in limbo. some folks want to make it tighter. others say it would not prevent another financial crisis and that's really what's still being lobbied on right now. >> we use the $2 billion number f

richard shelby, ranking member, republican from alabama. a lot of big hitters on this committee.emint, corker, schumer, menendez, herb kohl, mark warner and so on. the discussion will lead to the int int intricacies of banking in this particular example and regulation when it comes to the volcker rule and so forth. >> if you're not an invest in jpmorgan but you were an investor in any bank stock, this will have an impact on what you own because of the potential tightening of the regulatory environment. the tightening of the volcker rule. >> also to the degree in which they're engaged in transactions that they don't understand. remember the testimony we're going to get. they were instructed -- the chief investment officer was instructed in december to reduce the exposure and instead they embarked, according to his testimony, on positions that they thought would offset their existing ones but the complexity rose and they were hard to manage. are they engaged in activities that, frankly, their risk models and their personnel cannot cope with? that goes to derivatives and back to reg