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Dimon Defends JPMorgan Chase's Losses; Accused Auburn Killer Due In Court; McQueary's Dad Testifies Today; George Zimmerman's Wife Bonds Out; Holder Rejects GOP Call To Resign; Toddler Ejected From Car After Police Chase; Hecklers Disrupt JPMorgan Chase Hearing; Obama Doubles Colorado Firefighting Efforts; Verizon Unveiling New Shared Data Plans; Durant Comes Up Big For Thunder; The Internet Starts Name Changing Game; Russia's Military Aid to Syria Worries U.S.; Internet Starts Name-Changing Game; Jamie Dimon Testify in Washington; Toddler Ejected from Car after Police Chase

Aired June 13, 2012 - 10:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

CAROL COSTELLO, CNN ANCHOR: The next hour of CNN NEWSROOM begins right now.

Good morning to you. I'm Carol Costello. Just ahead in the NEWSROOM, shocking dash cam video from Texas. Look closely as an 18-month-old girl is thrown out of an SUV, but miraculously she gets up and starts walking.

Plus, an announcement today that will drastically change the way we surf the internet. Is this the end of the dot com era?

And the country's oldest and largest youth football league takes major steps to keep kids safe. The rule changes designed to make kids don't suffer concussions at an early age.

But we begin this morning with one of the most respected men on Wall Street. His bank's jaw-dropping blunder, happening right now, Jamie Dimon is appearing on Capitol Hill. He's getting seated there.

Jamie Dimon will testify that JPMorgan Chase's multibillion dollar loss is an isolated event. But make no mistake, those ripples go far.

Those risky investments are reviving the debate over toothless banking regulations and taxpayers could ultimately feel the bite. Take a closer look this morning.

Christine Romans is part of the CNN Money team. She joins us now from New York. What is Mr. Dimon expected to say?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: He's likely to say, we know what his prepared testimony is, but he's going to say, look, this was an error in risk management. Something that's incredibly important to all of these big banks. That this was trading operation that made a big mistake and that taxpayer money was never on the line. This was a multibillion dollar trading loss that has hit certainly the shareholders of JPMorgan Chase and certainly hit, bit into its profit, but didn't put the bank or taxpayers on the line.

It is a huge bank, and on that point, you know, it's about two, maybe two months of their profits disappeared overall for the bank simply because of this trade. He's going to try to say this is not a fault of a broader risk issue, more regulation for that.

Look, the chink in his armor, however, right? No matter how big the loss is, a chink in his armor, Carol because this is the man who has been standing up at the moral authority of Wall Street saying, Washington, you don't know what you're doing.

You're trying to regulate us out of business, getting it wrong, going to hurt the economy. Don't regulate us more. By the way, a big loss in my unit, but I didn't know was happening and happened to be the same derivatives that brought down the global economy in 2008.

So you're going to hear a lot of senators trying to get him on that point and get him to concede that Washington needs more regulation. You'll hear Jamie Dimon likely contrite, but I don't think he'll get aggressive here.

We're hearing a lot of -- you can hear from the -- there's --

COSTELLO: Let me interrupt. We're hearing people heckling Jamie Dimon. Let's listen.

Obviously, this, Christine, was planned, and authorities were quite ready to escort these people out. Don't know which group they belong to, but I suspect maybe "Occupy Wall Street," maybe? Who knows? We'll try to find out though. Jamie Dimon now seated. What happen first, Christine?

ROMANS: Well, first, you'll hear all the opening remarks. He's got prepared testimony. I don't know. I don't expect -- usually in these kinds of situations they don't read the entire prepared testimony. They read a version of it and they say this whole testimony is, you know, for the record.

You'll hear senators will get a chance to ask him some questions. So this could go on for some time. You might recall a couple years ago, Lloyd Blankfein, the chairman and CEO of Goldman Sachs. He came for a hearing on the Hill that also started at 10:00 in the morning.

And I was still standing in the rotunda at 9:00 p.m. doing live shots about that hearing. I'm not predicting that's going to happen today. Just saying, an awful lot of -- let's just say grandstanding for sure and also probably real fact-finding this committee will try to do.

COSTELLO: OK, when it really gets underway, we'll get back to you. Christine Romans reporting live for us from New York. Sometime today the suspect in a triple murder could appear in an Alabama courtroom. The 22-year-old Desmonte Leonard turned himself into U.S. Marshals last night.

He is accuses of gunning down several people at a weekend pool party near the campus of Auburn University. Two of the three people killed were former football players at the school.

Today could also be the big day in the child rape trial of Jerry Sandusky. The prosecution's first witness is father of a former Penn State graduate assistant Mike McQueary.

Yesterday, the younger McQueary told jurors that he had no doubt he witnessed Sandusky raping a small boy inside a shower at a football facility.

Susan Candiotti is live outside the courthouse in Bellefonte, Pennsylvania. What does the father of John McQueary, what will he have to say, Susan?

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Well, he already was the first person to take the witness stand today. He has testified and pretty much said, Carol, what he would have expected him to.

He backed up his son's testimony and said that indeed his son did call him the night of this alleged rape by Jerry Sandusky of a boy in a shower. That his son called him and his son was very distraught.

And then he met with him in person that very same night and his son described to him pretty much what happened, in his words. His son said, words to the effect of, you didn't have to be a rocket scientist to figure out what was going on.

Now what happened after that, he said, is about two months later, Mike McQueary's father testified that he had a meeting that was not related to this set up with former Penn State official Gary Schultz.

During that meeting he asked Schultz whether he needed any more information about that incident that his son had reported to him. And in the words of Mr. McQueary, he said that Mr. Schultz told him that, he heard some noise about this before involving Jerry Sandusky in the past, earlier than Mike's report.

But he didn't ask for any more information or say what was being done. Now, Carol, that was the first witness. He was cross- examined briefly and he's done.

At this hour, we are hearing from another alleged victim, and I only heard the first 15 minutes of it, couldn't hear the name. We believe this to be from what he's saying, alleged victim number 10.

So far, this young man, who is now 25 years old, testified that when he was much younger, that Jerry Sandusky performed oral sex on him, sexually assaulted him at least five times.

And he testified that he reported this incident to his foster mother, or rather, that something had happened, that he simply didn't want to see Jerry Sandusky anymore.

He's testified he didn't tell his foster mother exactly what had happened and then never saw Jerry Sandusky again. Other than to stay that he said that Jerry Sandusky told him originally that if he reported this to anyone, that he would never see his family again.

And then he said the next time, the next day that Sandusky told him he didn't really mean that and was sorry. In any case, they never had any encounters again after that -- Carol.

COSTELLO: Susan Candiotti, we'll let you get back to the courthouse. Thank you so much.

George Zimmerman's wife is facing a perjury charge for allegedly lying at his bond hearing. Shellie Zimmerman bonded out after her arrest.

You might remember, George Zimmerman is charged with second- degree murder in the death of Trayvon Martin. At a bond hearing, Shellie Zimmerman testified that she was not aware the couple had money to assist in his defense. Prosecutors accused George Zimmerman of actually having at least $135,000.

Attorney General Eric Holder is facing new fire from Republicans over the "Fast and Furious" botched gun sting program. Senator John Coryn led the charge during Holder's latest Capitol Hill appearance.

(BEGIN VIDEO CLIP)

SENATOR JOHN CORYN (R), TEXAS: You violated the public trust, in my view, and by failing and refusing to perform the duties of your office. So, Mr. Attorney General, it's more with sorrow than regret or anger I would say you leave me no alternative, but to join those who call upon you to resign your office.

ERIC HOLDER, ATTORNEY GENERAL: With all due respect, Senator, there is so much that's factually wrong with the premise that you started your statement with. It's almost breathtaking. I don't have any intention of resigning.

(END VIDEO CLIP)

COSTELLO: "Fast and Furious" flap is not going away. Just to remind you, the sting operation run by the bureau of alcohol, tobacco and firearms and explosives starting in 2006.

The feds allowed weapons to be purchased illegally to connect them to drug cartel leaders. But agents lost track of hundreds of weapons after they crossed the border.

And two of those weapons turned up at the scene of the killing of a U.S. bordered patrol agent in the December of 2010. The Justice Department has acknowledged the program was flawed, but that is not good enough for Republicans.

CNN senior legal analyst, Jeffrey Toobin is here. Welcome, Jeffrey.

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: Hi, Carol.

COSTELLO: So what I'd like you to do, douse us with reality, because this has become very partisan, this argument over Eric Holder. Eric Holder has testified before the House Judiciary Committee nine times.

Each time, he has admitted "Fast and Furious" was a dreadful mistake and each time Holder says he was unaware of the tactics of the operation. Why don't Republicans believe him?

TOOBIN: Well, this is really much more to be filed in the category of politics than law. I think, you know, this was a terribly conceived plan.

It is worth pointing out, as you just did, it started in 2006 in the Bush administration, but it was continued in the Obama administration, and it was a bad idea.

The heart of the complaint by the Republicans against Holder is that he is somehow covering up his role in it and a big dispute over documents. Has the Justice Department produced all the documents that the congressional Republicans want?

Now, this is really a traditional fight between the legislative branch and the executive branch. They are often fighting over, which documents can be made available to Congress.

But the idea that there is some sort of corruption here that there is something sinister has not been proven at all, at least as far as I can see.

COSTELLO: So why doesn't Holder just turn over the documents?

TOOBIN: Well, he has turned over a great many documents. One of the ways that the Justice Department and the Congress always fights is, Justice Department says, look, there are certain internal documents that are not Congress' business.

That are not subject to congressional investigation. That came up in the Bush administration. It's coming up now. That is the heart of the dispute that's going on now.

COSTELLO: So Republican lawmakers are threatening to hold Holder in contempt. Holder says that would create a constitutional crisis. So would it?

TOOBIN: I don't think so. I think this is mostly show business one way or another. I think it would be embarrassing for Holder. It would be unpleasant. I think that's really the goal of what going on here. Eric Holder, despite the wishes of apparently some in Congress is not going to be hauled off in handcuffs. This is likely to be along until the end of President Obama's term, or his first term.

And then presumably Eric Holder will leave at the end of this term. He has more or less given a signal he's not going to stay on, but I don't think any constitutional crisis or for better or worse any resolution until the election.

COSTELLO: Jeffrey Toobin, thanks so much.

TOOBIN: OK, Carol.

A police chase that ends with an arrest. That's not so unusual, but what you are about to see certainly is.

That was an 18-month-old girl being tossed from a getaway car after four Texas teenagers committed a robbery and tried unsuccessfully to escape police.

Amazingly, this tiny child was hospitalized with non-life threatening injuries. The teenagers have now been charged with several offenses including aggravated robbery and injury to a child.

Dot coms could soon be a thing of the past. Instead you could be visiting dot Google, or dot Facebook. This morning the internet's governing body revealed the list of possible new web domains. So what does that mean for you?

(COMMERCIAL BREAK)

COSTELLO: It's 16 minutes past the hour. Just minutes ago on Capitol Hill, hecklers disrupted the hearing on one day the staggering losses.

Those protesters delayed, albeit momentarily, the testimony by the CEO of JPMorgan Chase. Jamie Dimon will discuss the multibillion dollar loss by the nation's largest bank. Those risky investments are reviving debate over whether tougher banking regulations are needed.

We are inside that hearing room and will continue to closely monitor what's being said. CNN's business correspondent Christine Romans will join us throughout this hour.

The fire is still raging in Colorado this morning. Officials say they contained 10 percent, but more than 43,000 acres have burned. President Obama has called the governor offering money and equipment. Today crews are expected to have twice the number of fire engines today.

In money news, Verizon is unveiling its new share everything plan later this month. It will allow you to spread data allotments across all of your devices, but Verizon is killing its voice minutes plans. Bottom line, if you have multiple devices, you'll save money. But if you only have a phone, you'll probably going to pay more.

In Sports, the Oklahoma City Thunder had taken first blood in the NBA finals. The Thunder knocked off the Miami heat 105-94 last night. Kevin Durant led OKC with 36 points, 17 in the fourth quarter. The Thunder host game two tomorrow night.

Move over dot com and dot org, the internet is changing. Just this morning, a group that helps organize the web revealed nearly 2,000 applications for possible new web domains.

We could soon see domain names like dot baby, dot pizza, even dot wtf and hundreds more. It's the largest even expansion of the internet's naming system, but it's complicated and expensive.

It costs $185,000 just to submit an application for a domain and companies may be fighting for the same domain names. John Abel, a columnist for "Reuters Media File" is live via Skype in New York to explain it all to us. Welcome, John.

UNIDENTIFIED MALE: Good to be with you. You missed the best one. Seven entities have applied for dot love.

COSTELLO: That warms my heart.

UNIDENTIFIED MALE: Conspicuously absent, dot cnn, for shame.

COSTELLO: That is for shame. We have one -- I'm sorry. I have to interrupt, John because Jamie Dimon is testifying before a Senate committee. We're going to listen to his remarks.

JAMIE DIMON, CEO, JPMORGAN CHASE: I will explain everything I can to the extent possible. JPMorgan's six lines of business provided a broad array of financial products and services to individuals, small and large businesses, governments and not for profit institutions.

These include deposit accounts, loans, credit cards, mortgages, capital markets advice and fundraising, mutual funds and other investments.

Let me start by explaining what the Chief Investment Office does. Like many banks were she more deposits than loans. At quarter end, we held approximately $1.1 trillion deposits and $700 billion in loans.

CIO along with our treasury unit invested excess cash in a portfolio that includes treasuries, agencies and mortgage-backed securities, high quality securities, corporate debt and other domestic and overseas assets.

It also serves as an important vehicle for managing assets and liabilities of the consolidated entity. In short, the bulk of CIO's responsibility is to manage an approximately $250 billion portfolio in a conservative manner.

While the CIO's primary purpose is to invest excess liabilities and manage long-term interest rate and currency exposure, it also maintains a smaller synthetic credit portfolio, whose original intent was to protect or hedge the company against a systemic event like the financial crisis or eurozone situation.

So what happened? In December 2011 as part of a firm wide effort and anticipation of new basil cap requirements, we instructed the CIO to reduce risk weighted assets and associated risk. To achieve this in the synthetic credit portfolio the CIO could have simply reduced its existing positions.

Instead starting in mid-January, it embarked on a complex strategy that entailed any positions it did believe offset the existing ones. This strategy, however, ended up creating a portfolio larger and ultimately resulted in even more complex and hard to manage risks.

This portfolio morphed into something rather than protect the firm created new and potentially larger risks. As a result, we've let a lot of people down and we are very sorry for it.

Now, let me tell you how it went wrong. These are not excuses. These are reasons. We believe now a series of events led to the difficulties in the synthetic credit portfolio.

These are detailed in my written testimony, but I would highlight the following. CIO's strategy for reducing the synthetic credit portfolio was poorly conceived and vetted.

In hindsight, the CIO trader did not have the requisite understanding of the new risks they took. The risk limits for the synthetic credit portfolio should have been specific to that portfolio and much more grandeur, i.e., only allowing lower limits of risk and each specific risk being taken.

CIO particularly the synthetic credit portfolio should have done more scrutiny from both senior management including myself in that, and the firm-wide risk control function.

In response to this incident we've already taken a number of important actions to guard against any recurrence. We've appointed entirely new leadership for CIO.

Importantly, our team made real progress in aggressively analyzing, managing and reducing our risk going forward. While this has not reduced the losses already incurred and it does not preclude future losses, it does reduce the probability and magnitude of potential future losses.

COSTELLO: OK. You probably get the gist of what Jamie Dimon is telling Senate leaders here. We want to go to New York and Christine Romans.

Christine, you've been listening to Jamie Dimon's testimony. Translate this from financial speak for us. Jamie Dimon, he apologized, and then he listed a couple of things he's doing to prevent these kinds of losses from happening again. ROMANS: Basically, you know, bankers are risk managers. Their business is taking risks. One of the things they do, right? You have to make sure those risks are calculated and offset by other positions somewhere else in the company.

And this was a failure of risk management, and he's saying that, you're right, outlining ways they're going to fix it. There's one part of his prepared testimony I want to bring up to you that shows exactly what he's saying went wrong here.

This was a portfolio that was there, that morphed into something rather than to protect the firm and its exposure, of its books around the world, he said, quote,"it created new and potentially larger risks."

In hindsight, CIO traders, that office he's talking about, CIO traders did not have the requisite understanding of the risks they took.

So there's the money bite. His traders didn't know what they were doing. Here's somebody who's been saying for a long time Washington, get out of our business, you're slowing us down. We know what we're doing.

More important than the Volcker rule is the Jamie Dimon rule. I run my business. It happened right under his nose. It was at least $2 billion, an awful lot of money. Shareholders have lost an awful lot of money.

Just since May 10th the stock is down, I think like 15 percent or something. A really rough go of it overall here. So, you know, Jamie Dimon who's been telling them. Stay out of our business, is now saying, yes. Here's why I didn't even see this coming either.

The question is, is this one bad trade, Carol, or will they use this as a chink in his armor to try to go after him about more regulation on Wall Street?

I suspect that's what the hearing is going to turn out to be. It's going to be about regulation of Wall Street, still three years after the financial crisis.

COSTELLO: The questioning has not yet begun from senators. At that point, the hearing will get a lot more interesting and you'll continue to monitor this for us?

ROMANS: Yes, I'll watch.

COSTELLO: OK, cool. We're going to take a quick break and Christine will continue to listen to Jamie Dimon.

(COMMERCIAL BREAK)

COSTELLO: Now is your chance to "talk back" on one of the stories of the day. The question, a couple days before Father's Day, why have dads been downgraded? Have you look at the dads in pop culture these days? It's not a pretty sight. They're cute and cuddly, but clueless when it comes to raising kids.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You drop your kid on a changing table?

UNIDENTIFIED MALE: I caught mine in the dryer.

UNIDENTIFIED MALE: I picked up the wrong baby in day care.

UNIDENTIFIED MALE: No judging.

(END VIDEO CLIP)

COSTELLO: Michael Landour of the "Dallas Morning News" says dads have been poorly portrayed by a culture that clings to a mommy centric message.

Quote, "Dads have become obsolete in our culture. Rare is the TV dad who is not an unprepared, arrogant, incompetent ass," end quote. When did men go from father knows best, you know, the dad who was always right to national lampoon's the dingbat dad?

Talk about iconic. After all, President Obama, America's dad in chief is a parental role model as his campaign so proudly reminds us with this year's Father's Day card and Mitt Romney is clear his sons love and admire their father.

In a study by the National Fatherhood Initiatives says fathers were eight times more likely than mothers to be portrayed negatively so why the disconnect?

I don't remember my dad ever having a problem pushing the baby carriage, back in the dark ages, the '60s. Today's dad is out there in birthing classes on the blog, in the parks, doing his fair share and deserves more than what popular culture is dishing out.

I second that. So the "talk back" question for you, why have dads been downgraded? Facebook.com/carolcnn. I'll read your comments later this hour.

Just a day before his big speech on the economy, reports that Democrats are worried about President Obama's strategy for re- election. What can he do to get back on track? Why are Democrats panicking? Our "Political Buzz" panel weighs in.

(COMMERCIAL BREAK)

COSTELLO: Checking our "Top Stories" now at 30 minutes past the hour.

Just about 20 minutes ago protesters were escorted out of a congressional hearing during JP Morgan Chase's CEO's testimony. Jamie Dimon is insisting his banks huge losses were an isolated incident. Lawmakers are grilling him about the risks the bank made that led to billions of dollars in losses.

George Zimmerman's wife is facing a perjury charge for allegedly lying at his bond hearing. Shellie Zimmerman bonded out after her arrest and you may remember George Zimmerman, he's charged with second degree murder in the death of Trayvon Martin. At a bond hearing Shellie Zimmerman testified she was not aware the couple had money to assist in George Zimmerman's defense. Prosecutors accused Zimmerman of actually having at least $135,000 in the bank.

Violence rages on in Syria. An opposition group reports nearly 50 people killed today. Secretary of State Hillary Clinton says the situation will get worse if Russia does not stop aiding Syria's military.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, SECRETARY OF STATE: We have confronted the Russians about stopping their continued arms shipments to Syria. We are concerned about the latest information we have that there are attack helicopters on the way from Russia to Syria which will escalate the conflict quite dramatically.

(END VIDEO CLIP)

COSTELLO: The U.N. peacekeeping chief says Syria has spiraled into civil war.

"Political Buzz" is your rapid fire look at the best political topics of the day. Three questions, smart answers. Playing with us today: CNN contributor and former Democratic strategist Maria Cardona; and Katon Dawson, former Rick Perry consultant and former state GOP Party Chair. Welcome to both of you.

MARIA CARDONA, CNN CONTRIBUTOR: Thanks Carol. Good morning.

COSTELLO: Hi, Katon.

KATON DAWSON, FORMER STATE GOP PARTY CHAIR: Thank you I'm glad to be here.

COSTELLO: I didn't want to leave you out. First question -- President Obama enjoyed a local TV anchor extravaganza.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The good news is that we're starting to see progress.

Well, the good news is that in rural America, we're starting to see terrific progress on a number of fronts.

(END VIDEO CLIP)

COSTELLO: The President is welcoming local reporters to the White House from across the country. Effective? Some say, not so much. "The Washington Post" National Political correspondent Karen Tumulty asks, is it time for the Democrats to panic? And she quotes one long-time operative who said, "There is no new thinking in Obama's circle".

Now, both of you are political strategists. So what kind of new thinking does Obama need? Maria?

CARDONA: Well, I don't think necessarily that there needs to be new thinking as much as a continued emphasis on two things. The first is while the President should tout what he has done and the good news in the economy, he needs to underscore, which he does, that a lot more needs to be done and that middle-class families and workers are suffering more than most.

He already has an advantage on this. Most voters in every single poll basically say that he is the one that understands what they are going through and the struggles are going through more so than Mitt Romney.

He also needs to make this election about a choice between his continued vision, his protection of middle-class families and workers and Mitt Romney's who would essentially put us back in the dark days of the recession that led us to where we are right now. And that's what he needs to continue to underscore.

COSTELLO: Katon?

DAWSON: Well I'll tell you the good news for Republicans is that the President is talking about this in Ohio, in North Carolina, Virginia, Florida. Places that have felt tremendous lack of leadership and economic heat personally.

So certainly he's trying to walk back some of the statements and making the corrections. You know he's a very talented politician. I think that he made -- Maria's team has made a miscalculation on how much economic heat is out there in the pain. And certainly they're going to attack Governor Romney time and time and time again and we've seen this playbook in the Jimmy Carter race in the 1980s versus Ronald Reagan. It's not something we're unused to.

So again, we have a very talented President who has a likability number but has a bad number when it comes to people who are out of work and facing economic disaster, and is now on his watch. They're going to try to blame it on George Bush and those will anger Republicans in the House, but they control the senate.

COSTELLO: Time is up.

DAWSON: So they've got a couple of problems.

COSTELLO: Ok. On to question two. Shellie Zimmerman. George Zimmerman's wife is now charged with lying to a judge in her husband's second-degree murder case. Since the Zimmerman/Trayvon Martin case is so politically charged, like everything else in this country is, a question.

Will support fade for Zimmerman and for Florida's stand your ground law? Katon?

DAWSON: I think -- I think this is a tragic, tragic thing for both families. I think you've also got what you mentioned is the political aspects have come into this. We haven't heard, he hasn't been to trial yet. You certainly you've got the -- the NRA and the gun ownership issues. You've got the left who are anti-gun. That's all playing into it.

And you know, when you lie to a judge, that's going to change the -- well, the whole attitude of what's going on, the last I checked that's called perjury. So it think -- I think they're going to lose some sympathy there for not telling the complete truth. But it is an absolute tragedy, and the politics are going to continue to run from both sides on this issue.

COSTELLO: Maria?

CARDONA: I do think that there's certainly going to be a loss of support for Zimmerman's case. That always happens when you lose your credibility and frankly, that was the only thing, if he had any, that he had going into this. The fact that he has now lied to the judge and that his wife lied to the judge is going to really, I think, be a setback for him in terms of credibility.

And on stand your ground, when you have Governor Jeb Bush, who is the one who signed this into law in Florida basically say that this case is not a stand your ground case, when he has basically said, stand your ground is stand your ground. It doesn't mean turn around and chase the person who has turned their back on you.

That to me, I think says a lot in terms of what stand your ground, what it means, what it is and what it should be in this case. So I think in both cases it is going to lose credibility for Zimmerman as well as the folks who think that this is a stand your ground case.

COSTELLO: Ok now onto your "Buzzer Beater" 20 seconds each. Senator Harry Reid is getting back into the ring sort of. The Nevada lawmaker supporting a probe into the recent boxing match featuring Manny Pacquiao, where a split decision sparked heavy criticism.

Reid as you know, maybe you know; he's a former boxer and a fight judge. As for his connection to Pacquiao. Remember this? Yes. That's Pacquiao campaigning for Harry Reid.

Reid says the controversy, though, reinforces the need for a national boxing bill that he's been pushing for years with Republican -- Republican Senator John McCain.

So is boxing Washington's best hope for bipartisanship? Katon?

DAWSON: You know one more time, Washington with all due respect to Senator McCain and not a whole lot for Harry Reid from my side, Washington at one time more time is stepping into the arena of something that Nevada has a Board of Athletic Commissions and Arizona where it doesn't really have any business in this fight. I watched part of that fight. And it is at question. And I understand that, but why our politicians continue to think Washington needs to dictate what goes on in the boxing ring is beyond me.

COSTELLO: Maria?

CARDONA: I think there are two great ironies here Carol. And one is that boxing apparently has become so dysfunctional that the most dysfunctional body in terms of voters' minds has to now come in and fix it, which is Congress. And the second thing is that they're talking about a bill about a sport that politicians frankly figuratively do to each other every day what boxers literally do to each other in the ring.

So I think those are two great ironies about what we're talking about today.

COSTELLO: I have to agree with that somehow. Katon and Maria, thanks for playing today. We appreciate it.

CARDONA: Thanks so much.

DAWSON: Thanks.

COSTELLO: Dot-coms -- yes, we're back to dot-coms they could soon be a thing of the past, you could be visiting, dot-Google, or dot-Facebook. This morning the Internet's governing body reveal the list of possibly new Web domains. We will continue to tell what you that means for you.

(COMMERCIAL BREAK)

COSTELLO: Move over dot-com and dot-org. The Internet is changing. Just this morning, a group that helps organize the web revealed nearly 2,000 applications for possible new web domains. We could soon see domain names like dot-baby, dot-pizza or even dot-wtf and hundreds more.

John Abell, he's back. He's a columnist for Reuters' MediaFile. He's live via Skype. Welcome.

JOHN ABELL, COLUMNIST, REUTERS MEDIAFILE: Good to be back.

COSTELLO: Great to have you back. So why is this needed? What benefits are there?

ABELL: Well, there's a huge benefit for companies which want to project their brand in a better way. We're almost pretty much out of dot-com names that are user friendly, that people can remember. So if you're Nikon, or if you're Coke, if you're Pepsi, if you're Safeway, if you're Wal-Mart, you can now have a piece of the Internet, a piece of the web with your name on it and you can put anything you want to the left of those dots.

COSTELLO: Ok. So what about your average, ordinary -- this is an expensive prospect, right? It's not cheap to do this. Could an average person join in?

ABELL: No. It's not for the average person. This is not going to go-daddy and putting $10 down and buying your name. It's $185,000 to apply. $25,000 a year to maintain it. And you have to maintain this domain name. You have to operate the computers and all that stuff. It's a pretty big deal.

It raises a lot of money for the organization which manages this, which some critics say was the whole point. But it is an opportunity for brands, as I say, and also for the companies like Facebook and Google and Twitter, which wants to be your proxy to the Internet.

We're going to see if from those people, naming exercises. What's in it for me, you ask. Well, Google wants to make me JohnAbell.google. Facebook wants to make me JohnAbell.facebook.

If they can get that for me -- if they can get that loyalty, for me and I want to put my identity with them in that way, that's very powerful.

COSTELLO: Interesting. John Abell, thanks for sticking around. We appreciate it.

ABELL: Any time.

COSTELLO: It's a busy day for Wall Street today as traders watch J.P. Morgan CEO Jamie Dimon testifying in Washington about his bank's multibillion dollar trading loss. Let's head to the New York Stock Exchange and check in with Alison Kosik. You've been monitoring the hearing. What's happening?

ALISON KOSIK, CNN CORRESPONDENT: And with each word he says the stock goes even higher. Shares of JPMorgan Chase right now, Carol up almost 3 percent. This tacks on to the 3 percent that JPMorgan shares had yesterday. But if you look overall, the shares for the company are down 20 percent since this big trading loss was announced.

As for the market overall, we have some small gains right now. We found out that retail sales for May fell for the second straight month. It looks like people aren't only spending less on gas but they're spending less on overall purchases -- Carol.

COSTELLO: All right. Thanks, Alison.

We're going to take a quick break. We'll be right back.

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COSTELLO: Ok. Earlier this hour we showed you this video that was just incredible. This is a police chase in Lubbock, Texas. Four teenagers driving that car and they toss an 18-month-old girl out of that SUV. That little girl gets up and starts running back towards the car. She was taken to the hospital. She's ok. No life- threatening injuries, but how cold was that?

We wanted to know more about this. On the phone with us now is Sgt. Jonathan Stewart. He's with the Lubbock, Texas police department. Welcome, Sergeant Stewart.

SGT. JONATHAN STEWART, LUBBOCK, TEXAS POLICE DEPARTMENT: Thank you.

COSTELLO: Can you set the scene for us? How did this start?

STEWART: What happened is about 11:45 on Saturday night, these occupants of the vehicle approached three folks in a parking lot, pointed a rifle at them and stole some purses from them and fled the scene. An officer who was attempting to locate the vehicle actually did find the vehicle and that's when the pursuit began.

COSTELLO: And then the officer is chasing this car, and did he realize what was thrown from the vehicle?

STEWART: At the time that the child came out, yes, it's pretty obvious that it was a child. Of course, up until that point we didn't know there was a child of that age in the vehicle.

COSTELLO: So who's running out into the street and picking up the little girl?

STEWART: That was one of the occupants of the vehicle, and she's actually the mother of the child. That's a 16-year-old girl.

COSTELLO: So was she in the car, too?

STEWART: Yes. She was. The occupants of the vehicle were a 17- year-old, two 16-year-olds and a 14-year-old and then, of course, the 18-month-old child.

COSTELLO: Ok. So were they -- were they victims of this robbery? Or were these people the alleged robbers in the car?

STEWART: They were not victims. They were involved in the robbery, and two of them did flee the scene. Once the vehicle is stopped they fled on foot. Eventually all four were taken into custody, though.

COSTELLO: So, can you believe this kid's ok?

STEWART: Very surprising. I think anybody who looks at that video would be shocked to see the kid actually stand up and be walking around, and be seemingly ok, and it's pretty miraculous that it's minor injuries that the child sustained.

COSTELLO: So these teens, what are they charged with?

STEWART: They're all charged with aggravate the robbery, injury to a child. Unauthorized use of a vehicle, because the vehicle they were in was actually stolen. Evading arrest and organized crime. All of these offenses are felonies. Then there's the stolen vehicle.

COSTELLO: Sergeant Stewart, thanks so much for being with us this morning, and we're certainly glad that little girl's ok. Wow. The pint-sized players of Pop Warner football are getting a little help from the league's organizers. We'll have all the details for you ahead in today's "Daily Dose".

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COSTELLO: The country's oldest and largest youth football league is announcing big changes to keep kids healthy. The new rules include limiting tackling drilling to no more than 40 minutes of practice and banning head-on tackling drills starting from more than three yards away.

Pop Warner officials say they're making the changes because of a Virginia Tech study. It found youth football players can hit just as hard as older and larger players.

And we asked you to "Talk Back" on one of the top stories of the day. The talk back question for you, "Why have dads been downgraded?" Your responses, next.

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COSTELLO: We asked you to talk back on one of the stories of the day. The question -- why have dads been downgraded?

This from Heather, "I don't know why but it's very sad. My dad did everything he could for my brother and me every single day. It would be nice to see more portrayals of dads who are as incredible as mine is."

This from Randy, "I'm 25, a single dad who's been raising my daughter since she was 1. I feel as if we don't get enough credit. How about it for the single dads in these times? Who says we've been downgraded."

This from Kim, "If you don't like what's on television, don't watch it. Any show with poor ratings goes away. Television is a consumer driven industry.

Keep the conversation going. Facebook.com/CarolCNN. And that does it for me today.

I'm Carol Costello. Thank you for joining us. "CNN NEWSROOM" continues after a quick break.

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