>> chase. jamie dimon faced two hours of reasonably tough questions at a senate hearing about his bank's recent $2 billion plus trading loss. he apologized for that will huge loss, insisting changes have been made so it won't happen again and said senior executives responsible would probably have some of their pay taken back. as for how it went down, dimon said a strategy dined to reduce risk back fired and morphed into something else. he was questioned regarding that.
>> 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 into something i can't justify. it was tools risky for our company.
>> and dimon 's highly anticipated appearance got off to this start you're seeing there. those are protesters interrupting everything going on right before dimon started speaking. they were led out of the hearing room by capital police who say the six demonstrators were arrested. you see them there in cuffs. joining me now is "time" magazine assistant managing editor rona who oversees the magazine's business and economic coverage. not the fireworks we saw with eric holder yesterday. not the fireworks people were expecting when you talk about the fact that can no, this was not taxpayers' dollars. if this bank had been smaller, taxpayers could have been on the hook for this kind of risky behavior.
>> what this entire situation underscores almost four years on from the financial crisis , we still haven't figured out how to regulate the institutions. not only are banks like jpmorgan too big to fail, they're too big to mr. when you look at jamie dimon who has the reputation of being the best risk manager in the business and his institution can make a mistake like this you see we still have a huge problem on our hands.
>> back to the, i guess maybe the tone, i think people were anticipating something stronger. this was in a report today regarding some of the senators on the banking committee who questioned dimon . this is not to say they were soft on him, but they've received a total of $7.9 million in campaign contributions from the financial industry including dimon 's bank since 2008 . and, of course, this is led bid democratic senator chuck schumer , receiving $5.6 million of that. i'll ask you, does that have the appearance of an impact on what he's asked and how hot the seat is for jamie dimon .
>> i think the numbers tell the tale. you hit the nail on the head. another fact is that in the run-up to all the discussion about financial regulation and as the dodd -frank reform act was is being crafted, all of the regulators in washington had a chance to consult with members of the financial industry independence advisers average people. 93% of those meetings were with the financial industry . that means it the average joe got about 7% of airtime.
>> you bring up dodd -frank and dimon was asked about it. he's opposed to the regulations. let me play what he said.
>> what we set up was a system with more and more regulators. we don't know who has jurisdiction over many of the issues we're dealing with anymore.
>> so that's obviously a brief portion of what he said. they don't know the who has jurisdiction over anything anymore.
>> again, we're talking about complexity here. one of the reasons that the system is so complex is that the financial industry has lobbied to have a lot of loopholes put into dodd -frank at the heart of this particular case. there are a lot of people that are talking now how we need to make this more simple. there's even calls to go back to glass/steagall, the only 1930s act that separated investment banking and trading, the risky part of the business from commercial lending which is the more plain vanilla part. you'll hear a lot more about that in the weeks and months ahead.
>> not the fireworks were expecting but maybe some of the answers needed to piece this all together so it doesn't
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