roger the. streets looking. for you with alex here let's have a look at our main headlines now on the french official calls for ground troops to enter libya segment from pain recorded if they want to point towards france finds itself watching three or more distant cycles and it's because scuffles inside his own people to stay on such. a critically ill russian convicts pleading for anything not simply a diabetic into the losing side to see his needs but officials are adamant him from a zero sum there's an option it's banned in the function. and the veterans in

georgia centering on the grounds and by the country will not fall in the forces of more than fifteen dollars a month when soldiers recently tried to protest and detained. the next cause a report reveals found out investment advice could have boosted profits for some companies. nice guys are this is the crowd report the silver liver asian army global true or rock song this past week i was in dublin at a place called the grand social to a packed house people came down to listen about the message of the global silver liberation army and if you want me to come to your town send me an e-mail kaiser report at r t t v are you there is no place on the globe that should not hear this

message will be there it will be our rocking good time let's get the latest let's go to space there are so see her for you were gorgeous back we've been talking about the global financial crisis led by the global financial terrorists and they are in the news today max goldman sachs misled congress after duping clients says levin senator levin alleges that goldman tried to artificially depress the mortgage market in two thousand and seven to amass a short positions and goes on to detail structured securities to goldman marketed to investors saying the firm's interests were aligned with fairest only they weren't why would goldman deny what is so obvious that they were engaged in a huge short in the year two thousand and seven why would they deny it. because they get expensive their clients in the used to be you should practice is to do it

that's right the firm allegedly knowingly and let's be honest they sirup pitcher slay so old mr eleven calls them deals to people knowing that they would collapse in value they made bets against the collapsing value and they made a mockery of their clients why anyone goes. business with goldman who's a client of goldman sachs i mean there are fraudsters look at his facebook deal or no he saw the state there are but they all been violated s.t.c. laws they offer to facebook insider deal the more than five hundred investors the s.c.c. what was their response did they say oh risk prosecute goldman you broke the law now there f.t.c. said maybe we should revise the law to accommodate all the facts so that's the problem and i go most i can break the law if lloyd blankfein went down to the post office any slit some old lady's throat he would get off scot free because he would

say to prosecute me a systemic rats risk to prosecute me and it's a threat to national security and a push comes to shove i was going to change the law and make c.e.o. of wall street bankers legal to slit already strokes their own touchable it's worse than the mafia the guys are absolutely untouchable they are cancer and you gotta purge i'm. so the michigan democrat also said federal prosecutor should review whether to bring perjury charges against goldman sachs c.e.o. officer lloyd blankfein and other current and former employees who testified in congress last year levin said they tonight under oath that goldman sachs took a financial condition against the mortgage market solely for its own profit statements the senator said are untrue so what are you serious concert of specific case max about this specific situation oh well let me say this about that replay card's a report from the period when he was making that testimony and i said explicitly on

this program that he was lying i thought i said then that also you know because i live you perjured himself ok that's the reality of it because being carol so the panel said goldman sachs relied on abusive sales practices it wasn't rice with conflicts of interest and in particular in the case of one c.d.o. hudson mezzanine funding two thousand and six dash one bullet tax told investors its interests were aligned with theirs while the firm held one hundred percent of the short side yeah ok well we've been reporting on this for months of the firm as outrageously going around all the existing securities laws to make billions of dollars remember wall street last year paid him some one hundred forty billion dollars in bonuses by extracting by rent seeking by larceny by pilfering you know how many pseudonyms i need to spend together before i get a point here they both would just go down the street with a quote bold ways on the head steal their money this is their business plan if you

took away fraud out of the american business read out of the u.k. business plan they have no company whatsoever it was entirely on freud lloyd blankfein into schmuck and he's the worst of the worst a guy can't even try shoes without breaking the law i don't know how i don't need bernie madoff look like mother teresa can. heard of this guy carl levin himself can't say oh he has to be prosecuted he's recommending that apartment of justice actually pursue a case against lloyd blankfein for perjuring himself which i think is still a crime in the united states i don't know how he's going to get out of that in terms of systemic risk argument well i mean what does carl levin want to shut up a million dollars two million dollars whatever it is goldman will pay a good if a court dockerty there's no justice carl levin will pursue this goes he's a wimpy to weak man he won't do anything edition not our you know whatever nice i have to have access to the department of justice so they're responsible for pursuing the case against. against lloyd blankfein if carl levin says he believes

there's a case and it's up to the department of justice whether or not they just pursue him ok you're right i get it it's going to cost twenty million in my craw spirity million to get the whole department of justice whatever the price doesn't matter they'll pay the price every polson could go in front of congress and extort seven hundred fifty billion dollars to bail out of the court of fact how much would it cost the payoff of the department of justice forty billion because printed up out of their partners with all fictitious reoccurred think there's no justice there is the rule of law well as we reported last week however as well that the department of justice never even pursued what covielle bank which laundered four hundred billion dollars of mexican drug money and they didn't pursue a criminal case that's right stacy herbert they could move four hundred billion go to court buddy roy go to the department of justice is known and their responses.

give me more that come. on cocoa pollution to the other thing that is emerging this new report out by carl levin is e-mails show how great littman built deutsche bank's five billion sub-prime short duping c.d.o. fools so this is a. lippmann of deutsche bank and again they were targeted along with goldman sachs as being the worst transgressors of all known like legitimate conduct by a bank and selling derivatives and he they found e-mails where he was selling to investors bonds that he said blows yikes quote didn't see that half of these are crap and the rest are ok he calls them a pig cvo then he shorted it covered the sort by duping c.d.o. fools so he said that they were the c.e.o.'s that he was selling were crap and that they needed to find a fool to sell it to that's right a theory but it's

a daisy chain of frog they repackage the same garbage over and over again they sell to the same chumps pension funds managers who are given a huge supply of bach and cocaine to look the other way while they buy so suspicious crappy c.d.o. products that they vary in a pension account and then a year later become and also we have a crisis we don't have enough money to pay our pensioners they don't mention the fact that the reason they have no money is because it disappeared thanks to blankfein goldman sachs that other smarter you mention and some corrupt money manager and hedge fund manager and pension fund manager there colluding together to defraud the american people to defraud the global economy to steal billions hundreds of billions of dollars and laugh in the face of people while they're doing it well you know there's a big move by the republicans to water down any of this already watered down frank god act in which these derivatives are supposed to be you know given some light of

day by being traded on an exchange but. you know there's nothing really to protect us from. same thing happening nothing on the on the rise and i think i mean there are these reports and and vague statement that perhaps lloyd blankfein should be charged for perjury he should be charged for perjury what about for murder mass murder destroying the global financial system murdering the entire middle class oh yeah i will yes the point was made that the entire middle class is being murdered with the help of ben brac you know what the federal reserve is little minions over there lloyd blankfein and the rest and of course they do much damage then then any terrorist organization like al qaida or any other groups are peanuts they're pikers compared to the mass murder the sopping of the middle class thanks to these bankers on wall street and of course like any theological fanaticism any

religious extremism the people who get murdered by these folks consider themselves martyrs so merican too are dying because miami real estate down terminal velocity towards the last las vegas real estate now terminal velocity into collapse they're dying in the streets and they say you lloyd blankfein for making me a martyr for your extremist cause how pathetic is that that's why i'm sort america myself buy gold and silver the hell with them they're not worth saving but here's one person looking to resolve the situation jim grant america well it's all for debt by returning to the gold standard let's take a listen to what jim grant told king well jim how will the u.s. finally resolve its deficit problems will it my mind will resolve necessarily want to take the step of restoring the dollar billion we have forty years failed pre-sold the better. tool and the only way to do it is to

reinstitute critique it particularly which would right there. like. discovered right well the dollar will never be restored to any respectable place in the global economy it will become extinct and the gold standard will still be talked about as the dollar is replaced by a global currency probably an f.d.r. related bancorp type b i s denominated global unit of exchange and are going to try to float another one hundred trillion dollars of the bad debt and this war between paper pushers and the second those on wall street and the gold bugs like jim grant will continue and the price of gold will continue to go higher gee if m.f. just came out and said gold going to sixteen hundred dollars this this year on it's way to ten thousand dollars so we're going to five hundred dollars so you have to ask yourself what side you want to be on you want to be on the side of worthless paper or escalating and price precious metals it's up to you state there are that's

all the time for we have thanks again for being on the kaiser report thank you don't go away much more coming your way stay right there. rush. to the right if you move from funds to pressure.

whose claim starts on t.v. dot com. welcome back to the kaiser report on how to go to new york and talk with jenna to have a koli of time callie structured finance janet is an expert on weapons of mass financial destruction otherwise known as derivatives she is also the author of dear mr buffett what an investor learns one thousand two hundred thirty nine miles from wall street john welcome back to the kaiser report hi max how are you. don't have a goalie since we spoke last the tide has gone out and dear mr warren buffett apparently he's not wearing any shorts tell us about the departure of is heir apparent and the with a front running insider trading what it says about the bigger picture and u.s. banking got to have a koli olmecs this isn't a case of telling the truth slowly i think you're aware that warren buffett issued a press release and them up talking about the departure of david so call who was

the head of that american energy and david so call. was also somebody who looked at acquisition candidates for berkshire hathaway now a as the facts are coming out it appears that he was in meeting with citi group bankers just center thirteen and the next day he bought shares in a country called oversaw and in a company called loopers off the day before the citi group bankers understood that they were talking to david so call in his capacity as an officer of berkshire hathaway in a can. yesterday of an officer who evaluates the tensional acquisition candidates for berkshire hathaway that seemed to be their clear understanding and in that meeting david sokol asked for a meeting with the president of lubrizol says so he sought that meeting and on december seventeenth we now find out through bloomberg news that on december seventeenth the city group bankers back to david so that the president of lubrizol

you know was going to bring berkshire hathaway's interest forward to the board of directors at lubrizol so it's pretty clear that he had information that the public didn't have that this was a potential acquisition candidate for berkshire hathaway and in the past the stock prices of acquisition candidates of berkshire hathaway have popped up so after all of this go around david sokol is buying shares in loopers all saying that he had an interest in it for his personal account before he met with the citi group bankers none of this sounds plausible but what is really harmful to berkshire hathaway is the attitude taken by charlie munger and warren buffett who have always said that we hold ourselves to the highest standard of corporate governance and we wouldn't tolerate this kind of behavior and the press release looks an awful lot like covering up and excusing insider trading in their press release warren buffett said

that it is neither david sokol nor i believe that he did anything unlawful and there's a problem with that i actually believe he did something unlawful now that's my opinion but it's also the opinion of a lot of other professionals now i don't speak for them i'm speaking solely for myself so the problem is that the press has gotten on to this for a couple of reasons one of the reasons is that within that memo uncharacteristically warren buffet said if anyone has questions about this i'm going to refer them to this press release to the cinema when the payout. he's always talked about transparency and how he's willing to entertain any question at the shareholders meeting so entertain any question apparently not on this topic so why the lack of transparency here right well i mean warren buffett has been saying all along and we've talked about this before he's overrated it if you strip out a lot of the back channel dealing the insider trading the mark manipulation the cozy relationship with goldman sachs and the banks on wall street that from his

performance year back to you know much better than the s. and p. so i once again but i think what warren buffett though unlike other shysters connected to wall street he's got this first saw of the quality graham you know grandfather who is above the fray and who is everybody's you know really the moral rectitude has to be emulated but we've lived out of you know the day is like everybody else now i want to go up with recent testimony to congress in which you claim that nobody could have seen the collapse of the housing market coming so moody's and other rating agencies were excuse for giving mortgage backed securities aaa ratings this seems like outright duplicity. bumpus part without a shadow of a doubt judd's out of college you know i'm glad you brought that up next because you're aware that i wrote the school called dear mr buffett about the financial crisis where it's contrasting the principles of benjamin graham that warren buffett to stocks and charlie munger spoused to what happened during the financial crisis

and i think the preliminary draft of my manuscript came out in july two thousand and eight i sent it to warren buffett he looked at it he liked it and in there of course i'm a big critic of the rating agencies and all along i've been criticizing the rating agencies one time i just rip you should list in february of two thousand and seven i wrote a letter to the f.c.c. and by the way he suffocation because me feedback on it and i wrote to the f.c.c. saying that the rating agency should have their an arrest as a nation revoked that the aaa ratings were phony i gave an example of a fine. any product that was rated triple a that within a year the principals of the investors lost ninety percent of their principle and i was warning about it when the product first came out was rated aaa and that was in my letter to the f.c.c. which is still on their website so it's not as if he didn't have the facts in hand yet but when i write orders i'm going to yell and jump in there i mean yes you see his letters every day they go letters to or three times from people who point out

the gurney made out with a huge ponzi scheme and should be shut down they didn't act out and yes he does and in these letters there are captured regulator there are other staff yes and i think you're being that we are going to be i think you're being a little unfair to the f.c.c. of course they have acted they acted to help cover up like way way let me let me cut in right there jones out of l.a. because just this past week we have a situation with goldman sachs goldman sachs broke the law they sold facebook insider stock to more than five hundred investors without giving full disclosure of financial details that's against c.c. law the response of the f.c.c. was to say well maybe we should rewrite the law i mean voice what somebody's throat is mark and i go to joe joe i say george my defense is that you need to rewrite the law what about why did why doesn't warren buffett goldman sachs j.p. morgan what about complying with the law you know max a camera got so upset it moved while you were talking i agree with you and yes he

says the law then you get away with form over substance arguments and you know they're just simply not doing their job well they are doing their job their job as they see it they just haven't announced everybody with their job is and it's to enable coverups to basically distract people with non issues to you know people on minor issues issue minor fines and then declare victory you know we're being totally punk here by the regulators the f.c.c. should have been just and it mary shapiro who was the head of finra if you look at fin or his track record investors would lose arbitration in the ones that they were . they would recover less than their their losses let's move on to our cold you'd better grow old by wells fargo which of course is. warren buffett's bank in california. one hundred sixty million dollars fine for longer a nearly four hundred million in mexican drug money why no prosecution. well you know i think there's been no prosecution because again our captured regulators

when you look at the horrific press that this is gotten were basically well kofi it was laundering money for a mexican drug cartel that is killing mexican citizens so basically the united states has helped aid and abet this through. money laundering through a kofi and mccovey i think by the way i wasn't alone in that but these are very serious issues and that's not the only serious issue that wilko of you had you recall that because your pot of gold in west those you know loans from golden west many of them were just circling the drain at the time that bought gold in the last they were securitizing those loans they had a problem with the c.d.o. is that. put together because he was also acting as ensure need for toxic c.d.o. from other investment banks they were scratching each other's backs he was marketing the commercial paper of mainsail two which was a toxic structured product put out by our police and they were marketing that up and down the california coast and they're being sued right and left over that this

thing didn't have just one governance problem just one kind of management problem it was riddled with management problems and you know our treasury and the fed allowed a merger of of bangkok. first of all look at goldman last and then what tovia with wells weakening stronger banks and of course you know a lot of behind the scenes double dealing was done to accommodate a merger between wells and we'll call it including an unconstitutional change of the tax rules to allow what kovi it be able to. right off losses rather to write off losses right on the. first hundred billion first four hundred billion in mexican drug money laundering then you've got hundreds of billions in lost laundering affectively accounting fraud again again part of wells fargo again over you know under warren buffett's watch this guy is

really just burning made off with a nice shirt with a nicer suit maybe you know i should correct that well now this is really made i think to make i think you should be careful what you what you hope people accountable for because i look to the wells management management for that with the foreign buffett his lack of it is what i would call a reverse moral suasion is what's really been the problem because he has a lot of influence a very high profile a lot of capital and goodwill built up over years through brilliant p.r. and in managing that very effectively up till now in some cases he's had some warts on that is jonathan while bloomberg was happy to point out for us and as john gapper said in a recent financial times article basically to the international community he looks like he and charlie munger look like the beverly hillbillies of finance you know talking spewing out these big platitudes but now when you look behind the

platitudes you find out that there's something darker going on and i kind of trace that back to about august two thousand and eight when i really saw this fall off the cliff warren buffett was on a town hall panel after david walker's piece called io usa talking about the big debt the u.s. government was getting into and this was a month before that they are lots and warren buffett broke ranks with everybody on the panel including david walker pete peterson a number of other people on the panel and he was the only one that broke ranks and he basically tried to minimize that and undermine the entire mess. of the movie and of the panel and basically he said the united states you know we're good for it we can produce our way out of all of this big debt but i think he knew that the fannie and freddie bailouts were coming and that the aig bailout was coming and i think that's why he did it because it was going to be this huge windfall instead of prosecutions of the blue financial kiss' in the direction of wall street and i

think he knew about it and i think that's why he did that and ever since then his dialogue has spanned to minimize the damage to investment bankers instead of saying oh i can't you know look at these micro issues like who should be prosecuted i'd like reform of the tax code yellow the tax code can't touch him not because he's already sequestered his own assets and taken advantage of previous tax rulings so there's a huge wave of hypocrisy and the appearance of i'm doing the right thing meanwhile unfortunately too much of this. public dialogue has been against the right thing and now that this insider trading has come out a lot of people in the press first of all they were confused they were actually ready to believe that there isn't an insider trading issue here because warren buffett said so that's how powerful this p.r. is until a lot of rational people just said oh please you're not buying that obviously there's a huge insider trading issue here should be investigated and if david so-called doesn't go to jail and if warren buffett doesn't seem to be covering up it's not

because it didn't happen it's because we have a captured regulatory system i saw that response with buffett in two thousand and eight and it was quite shocking and he himself famously that the tide goes out you see is wearing a bathing suit and the tide went out a big way in two thousand and eight and it caught up with warren buffett warren buffett couldn't they couldn't keep up with the losses and he was exposed to deal with goldman sachs was a complete sham that embarrassed the government and embarrassed every american really that he would get this privilege insider deal to help out a bank that committed fraud and should have been these guy. lloyd blankfein should be in jail ready there's warren buffett holding him up as a moral example and is quite shocked was a shocking all right we'll have a kohli thanks so much for being once again on the kaiser report that's going to do it i know x. ray and that's going to do it for this edition of the kaiser of course me max kaiser and stacy herbert i want to thank my guests janet sam a callie if you want to send me an e-mail please do so at kaiser reported r t t v are you until next

time this is nice guys are saying bye.