white and blue ensemble made entirely in china. lawmakers are outraged for outsourcing the clothing. alina cho joins us with more on that. >> there's rare bipartisan backlash on capitol hill about this. good morning, everything in the uniform from the beret to the blazer and shoes made in china. they are made by american designer ralph lauren as soledad said and they are just for the opening and closing ceremonies, recently i got an opportunity to look at the olympic gear with david lauren, ralph lauren's son and executive vice president of the company. he said they are focused on making olympians look good. >> you're meeting athletes and walking in the first olympics, many have never worn a tie or jacket or been on television before. we want the american team and athletes to really look like ambassadors. >> but the chinese manufacturing has lawmakers furious, kirsten gillibrand and steve israel sent a letter to the chairman of the u.s. olympic committee asking that the committee only source uniforms from the united states in the future. is that possible? opening ceremony less than a month away. sherrod brown suggested the usoc get their uniforms from hugo boss in his home state of ohio. and harry reid was so mad, he wanted to destroy uniforms. >> i am so upset that i think the olympic committee should be ashamed of themselves. i think they should be embarrassed and should take all of the uniforms and put them in a big pile and burn them and start all over again. >> the u.s. olympic committee released a statement earlier this week which says, unlike most olympic teams around the world the u.s. olympic team is privately funded and we're grateful for the support of our sponsors. we're proud of our partnership with ralph lauren, an iconic american committee and excited to watch america's finest athletes compete at the upcoming games in london. and ralph lauren, we reached out for comment. they told me they are not giving any statement about this, soledad. i was e-mailing with someone inside the company at ralph lauren, when i first told the person i was doing the story, the person said, is the story also focusing on the other olympic sponsors who do not manufacturer in the usa? when i said this is a story about ralph lauren and its uniforms being made in china, this person added so an athletes winning a medal not wearing products from the usa is okay? ralph lauren does not make the products for the athletes while competing or on the paodium. >> and that's going to be nike, they make in the united states and overseas as well. >> when i was with david lauren, they very kindly made me this shirt with my name on the back, which was very nice. if you do look at the tag here closely, at the bottom there it does say made in china. naturally everyone is shocked and upset about this. the question is, with opening ceremonies on july 29th, can anything be done about it. >> what can be done about it at this late stage. >> alina, thanks, we're going to talk with nanette lepore, she does 98% of her manufacturing work in the united states. we'll talk to her later this morning. and back to our breaking news, we were talking about jp morgan and the q-1 and q-2 earnings reports. christine, walk me through what we're hearing? >> we know jp morgan in the second quarter logged a $4.4 billion trading loss and the company is saying if its first quarter, this is the numbers all right in the books. they've got to revise that too, there was $459 million less profit in first quarter because of that trading loss as well. a big gauge of the size of the trading loss, 4.4 billion is what they are logging in the second quarter and have to take 500 million in the first quarter as well. i'm going to continue to go through these numbers and jm morgan chase ceo jamie dimon is going to meet and that could last some two hours. he has to sit there and explain to angry -- analysts who are going to be reporting as pretty angry shareholders about why these losses happened. >> all right, christine, thanks. before i let you go, i want to ask you a question, how does this number compare to what people were predicting? at first we heard a number that was significantly lower but i think it was yesterday robert reich guessed something like $5 billion, he's obviously very close. is this more than people thought, less than people thought? >> it's not the worst case scenario but much more than they originally said. when this first het the headlines it was a $2 billion loss and that was a very big, bad failure of risk management. now it's almost $5 billion. so quite frankly, that shows you just how big this thing is. last year the company made $19 billion in the whole year and now it's lost almost $5 billion, $4.4 billion in this quarter because of the loss. that shows you -- we'll continue to go through and i'll give you other headlines as well to keep you up to speed. outrage and shame at penn state this morning after a scathing report by the former director of the fbi. the school's reputation stained and legacy of its late beloved football coach shattered. investigators concluding joe paterno and top university officials empowered a child predator. the outreach spreading so quickly there are calls to tear down a statue outside beaver stadium. susan candiotti live from philadelphia. can we expect more criminal charges in the wake of this report? >> reporter: hi, christine, that remains to be seen but state investigators are continuing to comb through evidence. some of that evidence coming from louis freeh's report, including the e-mails, some of them we reported to you exclusively of a couple of weeks ago. louis freeh calling the e-mails the most important part of his investigation. the freeh report making it very cheer that children were victim iszed at penn state because officials did nothing to stop jerry sandusky from raping and molesting so many children over the kourts of at least 15 years. legendary coach joe paterno, part of a culture of secrecy at penn state, trying to protect the image of the school, trying to protect its football program. attorneys for curley and schultz, already charged with lying to a grand jury and failing to report child abuse, their attorneys are saying this freeh report is incomplete and they will vind indicated at trial. there are other investigations going on, including one by the u.s. department of education, as well as the ncaa. it's possible that the football program could face a suspension depending on what the ncaa eventually determines. now the board of trustees for penn state did not escape unscathed. they were criticized for a complete failure of oversight and board says it promises that this will never happen again. again, they are staging a public meeting later today. christine? >> all right, susan candiotti. we're sitting down with tom kline, the attorney for one of the sex abuse victims. the president claiming the biggest mistake of his first term was putting policy over story telling, he's been criticized for not keeping the nation informed about the direction he's going in and he believes the criticism is valid. >> the mistake of my first term -- couple of years was thinking that this job was just about getting the policy right. and that's important. but the nature of this office is also to tell a story to the american people that gives them a sense of unity and purpose and optimism, especially during tough times. >> mitt romney quick to jump on the president's remarks suggesting he's out of touch if he believes million of americans have lost their homes and jobs and livelihood because he failed to tell a good story. soledad? >> we're going to talk about that more this morning. thank you for the update. let's get back to the controversy over the olympic states -- united states olympic -- i need more coffee, we're going to talk with nanette lepore, a strong advocate for american manufacturing for years. her own line created in new york city is manufactured here in new york city as well. it's nice to have you with us. we appreciate it. what do you think of this entire controversy. we were talking and i was following you on twitter, hearing what you were saying about it. what makes you so mad? >> well, i'm just for five years now we've been trying to raise awareness about these factories in new york city, that they exist and factories around the country, that they exist and we can manufacturer here. and the factories need work in order to survive. and we need these factories in order to ensure the future of american fashion. so i mean, this would have been a great opportunity to show off american manufacturing ability and be proud of our country's e resour resources, it's an unfortunate turn of events. >> we were chatting about this on the panel yesterday, i wouldn't say i was outraged but kind of outraged and ran it by our panelists and their response was, everything is made in china, anyway. i'll play a clip of how that went and we'll talk on the other side. oh, we don't have a clip of that. but that's how it went and i was surprised and the sense was hey, listen, 98% of clothing that's manufactured is manufactured overseas anyway, what's the big deal? it's all left the u.s. >> that's a misconception because there are hundreds of us smaller designers and some larger designers still manufacturing in america. we know that's not true. and also it's like, oh, so let's just let it all go. what kind of attitude is that? because they think that so much of it is made over there, why not let the whole thing go? that's not how it should be. we need to protect and create jobs and to work towards, you know, building back our manufacturing because that's the base of our country and our industry. >> the u.s. olympic committee had a statement that they put out and it said this, unlike most olympic teams around the world, the u.s. olympic team is privately funded and we're grateful for the support of our sponsors. we're proud of our relationship with ralph lauren, an iconic american company. that doesn't answer the conversation swirling around there but they did say, listen, we get this stuff given to us by our sponsors, do you think it would be better -- would you be willing to donate to the olympic team and make them american clothes, by an american designer, done in american factories? >> absolutely. there would be so many factories that would be thrilled just to get the opportunity because they know it could lead to more work. so not only would designers be willing to work and to participate even if it meant free of charge, but factories and cutting rooms and you know, pattern makers would all love the opportunity. >> harry reid says burn the clothes, is there anything that can be done this fast before the olympic games? >> you would be surprised what you can manufacturer in new york city in two weeks' time, however, i think it's a bit extreme and i don't know if that's the right route. >> i kind of agree with you on that. nannette lepore, thanks for joining us, we appreciate your insight and your clothing which is beautiful. people are really up in arms about this today. congressman steve israel will join us live. he too is outrage that the uniforms are made in china and taking matters into his own hands. we'll talk about what he's doing. 12-time olympic medal winner dara torres is going to talk to us. ahead on "starting point," digging deeper into the jm morgan chase earnings, whether investors will pay for the billion dollar mistakes. our get real, how much do congressional staffers make? guess what, depends on whether you're a man or woman. guess who makes less? you're watching quts starting point and we're back in just a moment. male spirit present.trong it's the priceline negotiator. >>what? >>sorry. he wants you to know about priceline's new express deals. it's a faster way to get a great hotel deal without bidding. pick one with a pool, a gym, a great guest rating. >>and save big. >>thanks negotiator. wherever you are. ya, no. he's over here. >>in the refrigerator? 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[ female announcer ] the gold standard in anti-aging. roc® retinol. found in roc® retinol correxion deep wrinkle night cream. it's clinically proven to give 10 years back to the look of skin. now for maximum results... the power of roc® retinol is intensified with a serum to create retinol correxion® max. it's proven to be 4x better at smoothing lines and deep wrinkles than professional treatments. new roc® retinol correxion® max. nothing's better than gold. new roc® retinol correxion® max. you see us, at the start of the day. on the company phone list that's a few names longer. you see us bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy. lending more so companies and communities can expand, grow stronger and get back to work. everyday you see all of us serving you, around the country, around the corner. us bank. developing story, jp morgan chase releasing its earnings, they lost $4.4 billion related to the risky trade. that trade now valued at $4.4 billion hit, although the company still made money in the quarter. the banks say the internal review shows it has to review the first report filed and profit was cut by $459 million because of this division where the rogue trade happened. jamie dimon will answer questions about the banks earnings. futures trading higher and china's growth slowed to the lowest level in three years, markets are up on speculation the chinese government will move to boost growth with some sort of stimulus. the u.s. growing less than 2% for perspective. thanks for the update. we'll keep following that this morning. governors across the country are gathering today in williamsburg, virginia, the 104th annual meeting of the national governors association. another key topic will be the health care law's medicaid expansion. democratic governor, martin o'malley will be there and he joins us this morning. thanks for talking with us. i know jobs is going to be a big topic. >> thank you. >> let's start with jobs, your state has an unemployment number better than many at 6.8%. when you look at states across the nation, seven out of ten of the best recovering states are run by republican, three out of ten run by democrats and it's been a big talking point obviously for the gop. do you think the governors deserve all of the credit for how states do? >> no, but i think they each have a responsibility to move their states forward to great jobs opportunity and make their economies expand. we're all in this together. the states that have been able to come through this recession virtually without any sort of blip are those states that have the greatest amount of minerals, soledad. for the rest of us, we have to make tough decisions in order to create new opportunities and jobs in a fast and changing economy. maryland was ranked number one in entrepreneurship. we had the changes to make investments in education and infrastructure and innovation to create new jobs and opportunities. you know what, tse are the things that work for our parents and grandparents, we need to restore the balance that allows our country to do the same from coast to coast. >> let's talk about president obama, looking back on his last years in office, talking to cbs news, he said, his mistake had been he put policy ahead of messaging about the policy to the american people. here's what he said. >> the mistake of my first term -- couple of years was thinking that this job was just about getting the policy right. and that's important but you know, the nature of this office is also to tell a story to the american people that gives them a sense of unity and purpose and optimism, especially during tough times. >> do you think that's ue? would you agree with his assessment that telling the story to give people optimism and hope is the strategy and that's where he missed the boat? >> well, i think the president is a very strong, good and many ways a very humble man he's able to enter into that sort of interinspection, i do think this, there's no greater priority than getting our economy moving. one of the opportunities we now have with the affirmation of the supreme court of the health care, obama care, the affordable care act is to tell the story of why this is so important in order to get our economy moving. i mean, over the last decade businesses saw the -- what they are paying for health care rise 113%. we pay more of our gdp toward health care cost then we do towards taxes. biszs have more money to invest in businesses to create jobs, that makes our economy go. to a large degree, i think all of us failed to explain the importance of the affordable care act in terms of bringing down spiraling health care costs to invest in job creation. that's a pretty accurate observation by the president. >> i think a lot of republican governors like bob mcdonnell of your neighboring state of virginia, who will talk to us later this morning, has said he's on the fence when it comes to medicaid exnsion. if he decides to decline, would there be an impact on your state since you're neighbors? >> i'm glad he's saying now he's on the fence. a lot of republican governors had a knee jerk reaction they weren't doing anything that would help the president get anything done, whether it's on jobs or college affordability or whether it's on health care. if he's on the fence, that's a good sign. for our part, we wanted to be an early implementer in the affordable care act because that gives our businesses a jump start. rising costs of health care every year, then what they are paying in other expenses, then that will be a competitive disadvantage, i would think for virginia if they are slow to come to this. for our sake, we've made the choices necessary to have the health exchange pass our legislature, to be able to bring down especially uncompensated care and see this is going to be a net positive not only for the state budget for the foreseeable future but a positive for job creation for small businesses and innovation. we wants to be an early implementer i'm glad he's moved from being totally opposed to just on the fence. >> nice to see you, sir, thanks for joining us. >> thank you, soledad. >> more players from the national governors association meeting will be talking with us as i mentioned. bob mcdonnell, and we'll run those comments from governor o'malley by him. iowa's governor terry branstad will be my guest as well. no surprise i think that women earn less than men, but when you hear how much less female staffers make compared to male staffers, it's going to shock you. our "starting point" team heading in, celeste headily and marc lamont hill and will cain and video killed the radio star by the bugles comes from steve r ronzion. it's viewer appreciation day. you don't like the song? >> i won the radio. >> doesn't mean it personally. we're back in a moment. [ lane ] your anti-wrinkle cream is gone. but what about your wrinkles. neutrogena® rapid wrinkle repair. it has the fastest retinol formula available. it's clinically proven to visibly reduce wrinkles in just one week. "why wait if you don't have to." rapid wrinkle repair. neutrogena®. recommended most by dermatologists. it's friday! my friday is a really long friday. our team this morning, marc lamont hill, professor at columbia university. how are you? why are you not smiling when they take your shot. >> how's that? >> better. >> on the radio, hence what you were make talking about, radio star make sense. will cain, a good dear friend of mine at theblaze.com. >>ow sweet. >> trying to help a man out. i think th