This concentration . You have to keep up the pressure from the outside. Keep talking about it. We have to remind people that back in 2008 with a big crash came that remember they stood up and said we have got to build these things out because theres too much concentration in the Banking Industry. They are too big. We cannot let them fail. Where are we today . They are bigger today here. If a bank failed, taxpayers would pay. Government keeps saying the dodd frank rule is in place. I want to be clear those are steps in the right direction. Yesterday we had a hearing. I put a question to four of them. Is it too big to fail Problem Solved . I got mixed answers. No, no, no. Dodd frank has been fully and and if it were vigorously enforced, would that solve the too big to the problem by itself . The answers from all four were no. Part of it is regulation. The fed reserve is the biggest regulator. What do you think janet yellen will do as far as big Bank Regulation that her predecessor did not do . One of the tools at her disposal is ordering capital reserves. A second part related to this is the bigger the bank and the more risk it poses to the system, the higher cost on larger Financial Institutions. So, the fed both independently and through its leadership of all the Bank Regulators has the capacity to put more balancing constraints on the largest Financial Institution. Balancing the risk they impose. You expect that yellen will be more likely to do that than bernanke was . I asked about the importance of the regulatory role. Yellen is making commitments in the direction. Saying she understands, she sees the problem, she knows what the tools are. That makes you hopeful . Im more hopeful. Look at the numbers. The big things are getting bigger and they are taking on more risk. Our Banking Industry is becoming less diversified with every single day. We are losing smaller regional ones are being lost. We are ending up with these behemoths that radiate risk. You care a lot about transparency. You have introduced bills. Youre worried about the fed reserve lacking transparency . Are you hopeful that will change . Well, one piece on transparency is a bill that was introduced recently. With two of the most unlikely cosponsors. It is a reminder to find the things you agree upon. Senator coburn has been out there for a decade fighting for more government transparency. I believe in more transparency. The issue we are focused on in this bill is a settlement when the fed reserve and the banking regulators anywhere in the government makes a settlement as as with a corporate wrongdoer. If they think it is a for the u. S. Taxpayer, we think they ought to make those settlements public. When i say public, i mean put it out there, all the details. Speaking of settlements, jpmorgan has now settled for i think 17 billion on penalties. Jpmorgan is it a rogue bank . Should jamie dimon be replaced . I come from a background of bankers. What bankruptcy is about is families hit by hard times, but it is also about corporations, big corporations. What happens when they hit a hard sell . When they get reorganized and new money comes into financial situations, the are a lot of conditions that are put on that. Among the conditions are that there has to be business plans, a showing that the Financial Institution is not going to keep up its old ways. That often means that the ceo is replaced. In this case, the ceo should be replaced . The real question is, do you have somebody who has shown that they understand there were problems in the past and that they have a different plan Going Forward . What jpmorgan and other Financial Institutions have done is they have continued to get bigger and load up more risk. Do you think that the ceo of j. P. Morgan has that understanding . Should he be replaced . Im waiting for him to demonstrate. But he hasnt so far . Not so far. He has had a long time. Time. The administration plans to name Stanley Fischer as a vice chairman of the fed reserve. You know a lot about Stanley Fischer, i am sure. Is this a good choice or not . I want to be hopeful. This is a hard time right now for the fed reserve. This economy has not recovered the way it should coming out of this recession. What we are seeing is that the Federal Reserve has limited tools. In a world in which congress is willing to act, and world in which congress is not cutting back on spending or shutting down the government costing the , congress is supposed to do its part. Costing the economy 24 billions, congress is supposed to do its part. Right now the fed has limited tools of monetary policy. It keeps playing and working with the one tool. You like yellen. I want to be hopeful. Im not sure. What grade would professor warren give ben bernanke . It is a mixed grade for me. Bernanke did a lot to stabilize the market, but he kept the focus on the largest financial and much less on what was happening at a different level. I want to be fair the feds role has limited tools. In dealing with that crisis, the fed has a responsibility and on regulation. Under dodd frank, it has missed its deadline massively. The rules have been complex and difficult to follow. It is very uneven. Regulation has not been a place where he has concentrated and done what the fed needed to do to help bring it under control. You think therell be a new day with janet yellen . I want to be hopeful. That is your byword for today. Senator elizabeth warren, thank you for being with us. When we return, we will talk about what is next for president obama and the december jobs report. Welcome back. The Unemployment Rate dropped to 6. 7 , but only 74th out and jobs are added. We have Julianna Goldman and richard miller. Tell us what the figures mean. Gosh, i feel a little bit like Charlie Brown and lucy where he goes to get the football and she takes it away. We get Something Like that. Bring it back. Right. Lifetime employment. It was disappointing. There was some impact from the bad weather, we had bad weather a couple of weeks ago. Remember it was also bad in december. That depressed the hiring, in construction particularly. But still, it was a bad month. Overall, when you look at the economy, there are a lot of good signs but some bad signs, too. It is not just one month, but a little bit of a. Most of the numbers have been on the upside. Consumption has been picking up. Especially among the welloff. They have got a trillion dollars worth of household wealth. Companies are seeing that and are starting to spend more on capital investment. Overseas it is looking better. The numbers have been looking good. Thats why the report was disappointing. People were hoping that we would get this escape velocity. Is the velocity last week. Rocket. The question we have to ask the announcement on friday was that they would appoint Stanley Fischer as the vice chair of the fed. What does this mean for the fed . He is a real heavyweight. Weve talked about him before. Bernankes professor. It was a crisis fighter. The other two people nominated, one was renominated that is a republican. He has been very supportive of bernanke. Braynard they are bringing over another from the treasury. To the white house think the economy is fine now . It is the fist bumps in the handholding. Yeah. This number was disappointing. It put pressure on the president as he looks at some of the economic proposals and this continued fight over extending unemployment benefits. I will get to the state of the union, but does this threaten the feds tapering effort . I do not think so. Given the totality we have seen, the 10 trillion reduction in the next meeting. Julianna, you mentioned the state of the union. In about two and a half weeks. Any sense of what a major theme or themes will be . One thing the white house has been rolling out is the emphasis on income inequality. The haves have been doing well over the past years and the havenots have not. The president will push for an increase in minimum wage. That will be something they will push for. White house Officials Say it will be a mix of some new and some old proposals. What you will see is the white house leading up to the state of the union and really empathizing the accomplishments from last years the union. Look for them to put a heavy emphasis on the volcker rule. One thing they will mention is bob gates. The former defense secretary. You dont say. He has written a book. He says joe biden has been wrong on everything. Obama whom he praises in some sense does not believe in his own afghanistan policy. Not really what you want from a former cabinet member. I think they feel surprised or and somewhat betrayed. For the first time this week, they allow cameras into the president s regular lunch with the vice president. Is it a surprise that this was a politically motivated white house . Not so much. Is it surprising that it is insular white house . Not so much. It does reinforce what has been reported. That is the white house. You can agree or disagree. I think his case is pretty weak. I think he has been right about a lot of things. Yeah. One of the lasting damages is it does reinforce the insularity of bringing in rivals from the outside now. There are trust issues that will be higher up in consideration. When they bring in outsiders, they will not bring in any more republicans to be defense secretaries. Julianna goldman and rich miller, thank you. When we return, Phil Mattingly on Chris Christies apology. And his 2016 chances and more on bob gatess book. Welcome back. Phil mattingly is here to talk about Chris Christie and the George Washington bridge in the national limelight. We can agreed this was a terrible thing that happened and governor christies News Conference was a tour de force. We dont know what else is there . We are still turning figure out what the motivation was. Again, i think the big issue is the investigation of what this has opened up to. Does anybody expected federal charges . Let me get to the federal prosecutor in a second. There is the question of whether this is i will get to the federal budget any second. There is a question of whether this is they do not appear to be virgins. I think it is a caricature that he is a bully, but to your point, what you saw in the e mails looks like it was from people who have done this before and took some glee in the process of doing this. It underlines they did that Chris Christie access this on a regular basis. Im not sure what the crime is here, but no one likes to have a prosecutor looking at them. It was a diffferent situation, but the original whitewater investigation turned out to be something quite different. Thats right. This christie is a former attorney. You open the door into this, it is an enormous suck on manpower and resources. It also was the door to people opens the door to finding things in your administration you do not want them to. Chris christie made it clear that he does not know what everyone in his administration is doing. He oversees a lot of people. The second that he opened that door, any number of things can pop out that could be incredibly damaging. Boy, we were all with chris. Thats wishful thinking. They are gamblers to begin with. They very much wanted him in 2012. It is helpful to him on the perspective of how well his conference went. That they are will willing to jump in as all. Jump in at all. It is early. It is very early. They are ready to talk about their support in . With phils cavaet, you got a great 2012. Could this be lethal to his chances . Lethal is a strong word. I think its going to complicate. Can he go forward in his usual style . The donor base might be hesitant to jump in with both feet because of this. Not for ethical reasons, not not but for winning . Im not a bully is better than i am not a crook. It has been documented that he has been bullying and vindictive to people who have not voted for him. He was so uncurious about what happened. Even after it was not a traffic study. He is not. He is not about what happened. Your take . Christie kemper train himself as someone who trusted his subordinates and has a loyal team and they failed him and he has gotten rid of those people. However, it is that question, as with whitewater and other investigations, these things take on a life of their own you see them i expect if he went out there and said, i did not know anything about this until this morning, that is likely to be something that cannot be proved. Im sure they are scouring the records to find out. We do not know what else is lying under the murk. It could be something entirely different. The email seems to suggest it was something that maybe wasnt the first time. Bob gates writes a tellall book. Very critical of joe biden and pretty critical of Barack Obamas afghanistan policy. Confessions of a true patriot, or psychobabble, revenge . I think bob gates is a man of integrity. I think he said things that he believed. It wasnt nearly as critical as it is portrayed in the media. He tells the truth. He says these are areas where they fell, but he highlighted areas in which george bush and barack obama did the right thing. And had vision. He highlights the things they did right. It is honestly a book about the kind of unvarnished truth. Most people dont like the truth without varnish. Margaret . Bob gates is a sterling guy. He had his frustrations. There were some president s who did not give the troops and the pentagon enough credit, or gates enough credit. If you look at everything, i would take what he said about obama. He is courageous for going after Osama Bin Laden and took action against advice of political advisers. I look forward to reading it and hearing from you. Thank you. See you again next week. Political capital is a production of bloomberg television. Within the next decade, we will solve cancer. This instrument is going to do the entire human genome for 1000. There is always is great science, but we are in the business of making money. You came with a couple hundred million dollars, and now you are worth about 13 billion. They are being bought by an even bigger company. By combining forces with thermo fisher, we will create the largest Science Company in the world. I mean, you have to think is my job going to be here . There is a lot of emotion that runs through your mind when you ultimately sell your company. Do i update my resume and start looking for another job . Theyre t