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Interview with Senator Richard Shelby

By Your World w/Neil Cavuto, Your World w/Neil Cavuto - June 13, 2012

Welcome, Account

Special Guests: Sen. Richard Shelby, R-Ala.

This is a rush transcript from "Your World," June 13, 2012. This copy may not be in its final form and may be updated.

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NEIL CAVUTO, HOST OF "YOUR WORLD": All right, time to get back to the grill on the Hill.adsonar_placementId=1502157;adsonar_pid=150758;adsonar_ps=-1;adsonar_zw=198;adsonar_zh=170;adsonar_jv='ads.adsonar.com';

My guest one of the senators questioning J.P. Morgan's CEO, Jamie Dimon, today, but he did so actually lucidly, which makes him stand out, which him here.

I'm talking about the Republican from Alabama Richard Shelby. And, Senator, to me -- and I know this was a well-intended presentation before your hearing, but I felt that for a lot of colleagues it was sort of a political bean-throwing test. And you just stepped back and wanted to know what could Washington do to prevent this sort of thing or to address these problems.

But I felt that a lot of your colleagues were pointing fingers and not really to solutions. What was your thinking?

SEN. RICHARD SHELBY, R-ALA.: Well, I'm not going to say anything about my colleagues, except to say this was...

CAVUTO: Please do. Please do, Senator. You have the floor.

SHELBY: ... this was a hearing; I thought this was a serious hearing, and not a circus.

And I try to look at the hearings that way. What we -- I tried to do is find out what went on, considering that J.P. Morgan still has a proprietary interest in that. And we will find out sooner or later sequence by sequence what went on.

But looking at it overall, I think the message today was that Jamie Dimon admitted they made some mistakes. They lost some money, which hurts. But they are well-capitalized. And of course my interest is, is making sure not that banks don't lose money or that they don't make money. I want them to make money. They take risk.

On the other hand, I don't want them to be under capitalized. I want them to be well-capitalized. I don't ever want the taxpayer to bail them out.

CAVUTO: But, you know, this comes at a time -- I don't know if you caught earlier sir, our Charlie Gasparino on Fox Business Network, which if you don't get, you should demand -- but you're a senator -- I'm sure you go.

He was reporting that this very same firm has information that shows unfunded pension liabilities across the country, leaving aside Social Security and Medicare, all that stuff, just public pension liabilities are approaching $4 trillion. That is a sum so gargantuan; there is simply no way to address it, save rapidly and steeply cutting spending and/or raising taxes by the same amount.

What do you make of that and whether you felt that you and your colleagues -- maybe this wasn't your intent -- are sort of wasting time talking about a firm and a bad $2 billion trade?

SHELBY: I think -- I think that you are absolutely right that we have so many larger problems, bigger problems, structural programs, complex problems that we ought to be focusing on those.

J.P. Morgan's loss, it was $2 billion. You are talking about a $4 trillion shortfall. We better get things in perspective.

CAVUTO: But the reality is, Washington doesn't and we have got all these tax rates and everything backing up, like I said, the proverbial planes at La Guardia on the runway now, and now growing talk that it is not going to be solved probably until a lame-duck Congress, if then, and now indications that when it comes to more financial regulations to try to deal with the kind of stuff that led to this presumably bad trade, we could make a bad situation worse, in other words, that Washington could compound the sins.

Do you fear that?

SHELBY: Always.

You know, what we should think about every day is to do no harm up here. And over-regulating an economy, overtaxing businesses, all these things are detrimental to creating jobs and to a viable economy. I worry about Europe. I was watching part of the program that you were conducting just a few minutes ago.

I believe Europe is burning financially. Europe's problems are not going to go away. They are so structural. Yet, our problems are right behind them. We cannot just look at Europe. We better learn from Europe, because it's not too late yet here in America, but it will -- we will be just like Europe in a few years, if not sooner.

CAVUTO: Well, if not sooner is right. Sir, always a pleasure. Thank you very, very much.

SHELBY: Thank you.

CAVUTO: Senator Shelby.

Content and Programming Copyright 2012 Fox News Network, Inc. Copyright CQ-2012 Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.

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NEIL CAVUTO, HOST OF "YOUR WORLD": All right, time to get back to the grill on the Hill.

My guest one of the senators questioning J.P. Morgan's CEO, Jamie Dimon, today, but he did so actually lucidly, which makes him stand out, which him here.

I'm talking about the Republican from Alabama Richard Shelby. And, Senator, to me -- and I know this was a well-intended presentation before your hearing, but I felt that for a lot of colleagues it was sort of a political bean-throwing test. And you just stepped back and wanted to know what could Washington do to prevent this sort of thing or to address these problems.

But I felt that a lot of your colleagues were pointing fingers and not really to solutions. What was your thinking?

SEN. RICHARD SHELBY, R-ALA.: Well, I'm not going to say anything about my colleagues, except to say this was...

CAVUTO: Please do. Please do, Senator. You have the floor.

SHELBY: ... this was a hearing; I thought this was a serious hearing, and not a circus.

And I try to look at the hearings that way. What we -- I tried to do is find out what went on, considering that J.P. Morgan still has a proprietary interest in that. And we will find out sooner or later sequence by sequence what went on.

But looking at it overall, I think the message today was that Jamie Dimon admitted they made some mistakes. They lost some money, which hurts. But they are well-capitalized. And of course my interest is, is making sure not that banks don't lose money or that they don't make money. I want them to make money. They take risk.

On the other hand, I don't want them to be under capitalized. I want them to be well-capitalized. I don't ever want the taxpayer to bail them out.

CAVUTO: But, you know, this comes at a time -- I don't know if you caught earlier sir, our Charlie Gasparino on Fox Business Network, which if you don't get, you should demand -- but you're a senator -- I'm sure you go.

He was reporting that this very same firm has information that shows unfunded pension liabilities across the country, leaving aside Social Security and Medicare, all that stuff, just public pension liabilities are approaching $4 trillion. That is a sum so gargantuan; there is simply no way to address it, save rapidly and steeply cutting spending and/or raising taxes by the same amount.

What do you make of that and whether you felt that you and your colleagues -- maybe this wasn't your intent -- are sort of wasting time talking about a firm and a bad $2 billion trade?

SHELBY: I think -- I think that you are absolutely right that we have so many larger problems, bigger problems, structural programs, complex problems that we ought to be focusing on those.

J.P. Morgan's loss, it was $2 billion. You are talking about a $4 trillion shortfall. We better get things in perspective.

CAVUTO: But the reality is, Washington doesn't and we have got all these tax rates and everything backing up, like I said, the proverbial planes at La Guardia on the runway now, and now growing talk that it is not going to be solved probably until a lame-duck Congress, if then, and now indications that when it comes to more financial regulations to try to deal with the kind of stuff that led to this presumably bad trade, we could make a bad situation worse, in other words, that Washington could compound the sins.

Do you fear that?

SHELBY: Always.

You know, what we should think about every day is to do no harm up here. And over-regulating an economy, overtaxing businesses, all these things are detrimental to creating jobs and to a viable economy. I worry about Europe. I was watching part of the program that you were conducting just a few minutes ago.

I believe Europe is burning financially. Europe's problems are not going to go away. They are so structural. Yet, our problems are right behind them. We cannot just look at Europe. We better learn from Europe, because it's not too late yet here in America, but it will -- we will be just like Europe in a few years, if not sooner.

CAVUTO: Well, if not sooner is right. Sir, always a pleasure. Thank you very, very much.

SHELBY: Thank you.

CAVUTO: Senator Shelby.

Content and Programming Copyright 2012 Fox News Network, Inc. Copyright CQ-2012 Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.

 Print  Email  Share    Recommend Tweet adsonar_placementId=1493988; adsonar_pid=1373767; adsonar_ps=-1; adsonar_zw=612; adsonar_zh=240; adsonar_jv='ads.adsonar.com'; Common Sense and Transcript Calendar

Choose a category

Common Sense InterviewsInterviews2Common Sense

Latest Transcript

June 13, 2012

Please click on a date for previous transcripts:

Loading Datepicker ADVERTISEMENT Follow TeamCavuto

Follow us on Twitter to get exclusive updates and announcements from the show!

Coming Up on 'Your World'

Obama heads to the battleground state of Ohio, but can he win the state? Pollster Frank Luntz weighs in

Your World w/ Cavuto Poll Take Our Poll(survey software) Friend 'Your World' on Facebook What Do You Think?

Send Neil your comments & tune into FOX Business tonight at 8pm ET.  Neil may read yours on air! 

Don't get FBN?  DEMAND IT!Find out if you get FBN here

Follow us on Twitter @TeamCavuto

ADVERTISEMENT Additional Resources

Fox Business

Get the latest news on business, investments, the stock market, and more! Plus, try out useful tools and calculators for your financial questions and needs.

Cavuto on Business

The most powerful name in news brings you The Cost of Freedom, the most powerful business block on cable news!

Buy Neil Cavuto's Books

Get inspired with the New York Times bestselling books Your Money or Your Life and More Than Money by Neil Cavuto.

Shows America Live Fox & Friends Weekend Happening Now Studio B America News HQ Fox News Watch Huckabee The Cost of Freedom America's Newsroom Fox Report Justice with Judge Jeanine The Five Cavuto Geraldo at Large Red Eye w/ Gutfeld The Journal Editorial Report Fox News Sunday Greta Special Report The O' Reilly Factor Fox & Friends First Hannity Specials War Stories Fox & Friends Networks Fox News Fox Business Search

This material may not be published, broadcast, rewritten, or redistributed. ©2012 FOX News Network, LLC. All rights reserved. All market data delayed 20 minutes. Privacy - Terms

Connect with Your World with Neil Cavuto

Follow TeamCavuto

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My guest one of the senators questioning J.P. Morgan's CEO, Jamie Dimon, today, but he did so actually lucidly, which makes him stand out, which him here.

I'm talking about the Republican from Alabama Richard Shelby. And, Senator, to me -- and I know this was a well-intended presentation before your hearing, but I felt that for a lot of colleagues it was sort of a political bean-throwing test. And you just stepped back and wanted to know what could Washington do to prevent this sort of thing or to address these problems.

But I felt that a lot of your colleagues were pointing fingers and not really to solutions. What was your thinking?

SEN. RICHARD SHELBY, R-ALA.: Well, I'm not going to say anything about my colleagues, except to say this was...

CAVUTO: Please do. Please do, Senator. You have the floor.

SHELBY: ... this was a hearing; I thought this was a serious hearing, and not a circus.

And I try to look at the hearings that way. What we -- I tried to do is find out what went on, considering that J.P. Morgan still has a proprietary interest in that. And we will find out sooner or later sequence by sequence what went on.

But looking at it overall, I think the message today was that Jamie Dimon admitted they made some mistakes. They lost some money, which hurts. But they are well-capitalized. And of course my interest is, is making sure not that banks don't lose money or that they don't make money. I want them to make money. They take risk.

On the other hand, I don't want them to be under capitalized. I want them to be well-capitalized. I don't ever want the taxpayer to bail them out.

CAVUTO: But, you know, this comes at a time -- I don't know if you caught earlier sir, our Charlie Gasparino on Fox Business Network, which if you don't get, you should demand -- but you're a senator -- I'm sure you go.

He was reporting that this very same firm has information that shows unfunded pension liabilities across the country, leaving aside Social Security and Medicare, all that stuff, just public pension liabilities are approaching $4 trillion. That is a sum so gargantuan; there is simply no way to address it, save rapidly and steeply cutting spending and/or raising taxes by the same amount.

What do you make of that and whether you felt that you and your colleagues -- maybe this wasn't your intent -- are sort of wasting time talking about a firm and a bad $2 billion trade?

SHELBY: I think -- I think that you are absolutely right that we have so many larger problems, bigger problems, structural programs, complex problems that we ought to be focusing on those.

J.P. Morgan's loss, it was $2 billion. You are talking about a $4 trillion shortfall. We better get things in perspective.

CAVUTO: But the reality is, Washington doesn't and we have got all these tax rates and everything backing up, like I said, the proverbial planes at La Guardia on the runway now, and now growing talk that it is not going to be solved probably until a lame-duck Congress, if then, and now indications that when it comes to more financial regulations to try to deal with the kind of stuff that led to this presumably bad trade, we could make a bad situation worse, in other words, that Washington could compound the sins.

Do you fear that?

SHELBY: Always.

You know, what we should think about every day is to do no harm up here. And over-regulating an economy, overtaxing businesses, all these things are detrimental to creating jobs and to a viable economy. I worry about Europe. I was watching part of the program that you were conducting just a few minutes ago.

I believe Europe is burning financially. Europe's problems are not going to go away. They are so structural. Yet, our problems are right behind them. We cannot just look at Europe. We better learn from Europe, because it's not too late yet here in America, but it will -- we will be just like Europe in a few years, if not sooner.

CAVUTO: Well, if not sooner is right. Sir, always a pleasure. Thank you very, very much.

SHELBY: Thank you.

CAVUTO: Senator Shelby.

Content and Programming Copyright 2012 Fox News Network, Inc. Copyright CQ-2012 Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.

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