in broadcasting live direct from the heart of moscow this is r t i'm trying thomas story at your top stories. huge crowds in new york are involved in a standoff amid a huge deployment of police in times square at least seventy people are reportedly arrested after scuffles broke out with police this comes as the occupy movement goes global and with almost a thousand cities across the world witnessing an unprecedented outpouring of public anger against corporate greed and financial mismanagement. and in other news of the u.n. warns syria could be on the verge of

a civil war with many in damascus backing president assad while the center continues to grow outside the capital. and ukraine's attempts to clean up its image before the euro two thousand and twelve football championships turns into a p.r. disaster for animal rights groups accuse the government of burning stray dogs alive . max kaiser's here with his latest take on the scandals behind the world's financial headlines. max foster this is the kaiser report yeah we started the global insurrection against banker occupation we're going to do about it you know stacy herbert i was thinking that now that you've got the global insurrection against banking occupation and all the subchapters like occupy wall street in occupy various cities around the world there needs to be down move to politicize all this and i'm

thinking why not take all of the occupy movements around the world and join them with the various global pirate parties around the world the beginning of that movement in the swedish pirate party and then it quickly spread to countries all over the world that could be the political wing of the occupy wall street movement there on the exact same page and this would give them representation because the pirate party already has representation in countries around the world and they can use the civil disobedience of abandoning the entire copyright intellectual property system that is draco nian that is anti creativity which is basically part of the leg state emerging so i believe this could be the next phase i'm calling for what do you think well it's interesting because the pirate party is responding to a monopoly and harsh laws which penalize the people and that's what you see in the

financial sector and the political sector from the why scale corruption look at it in the u.k. not only is tony blair not only did he accept twenty seven million pounds from the kuwaiti royal family as thanks for invading iraq but now liam fox the defense secretary is like openly handing out deals to cronies that are travelling with him as official. companions well another benefit of this of course is that a lot of the wealth confiscation schemes and algorithms used by wall street are patented wealth confiscation technologies and if you repealed the patent laws of the copyright laws that would eliminate wall street's ability to use this patented technology to confiscate wealth through high frequency trading and algorithmic trading so there would be a way to topple them by eliminating their monopoly position using algorithmic

patented algorithmic trading to confiscate cash from from society yeah and due to copyright laws the government regulators are not actually able to look at their proprietary theft machines and. power i will follow up on this now speaking of pirates there's other pirates in the news tell me more access in this first headline here maybe rescues italian cargo ship from pirates a room leaving team free twenty three hostages on a ship hijacked by pirates after picking up a message in a bottle and it really think of the occupy wall street protesters the tea party protesters or at least some of them but these are like the equivalent of this message in a bottle i mean how random that the royal navy what happened upon a red message in the bottle come rescue us and yet openly we're saying you know rescue us from the pirates that have hijacked our financial system and are using it against us but exactly i mean the pirates are the basis for the u.k.

economy so cameron is unfairly prosecuting so-called looters pirates are the bases of the somali economy so without the pirates there would be no real estate boom in kenya in other places so again it's double speak from the real pirates that is the say the banking pirates but it also made me realize that of course even all of these occupy wall street protests occupy the fed protests tea party protests nobody listens like they just keep on handing. the wealth of our nations to these bankers and even the commander in chief of the u.s. will not help i have this little video here where jake tapper asked barack obama last week he asked why hasn't your department of justice done anything against the banker fraudsters the ones that have stolen the economy the ones who committed wide scale subprime fraud and this is what barack obama answered on the issue of prosecutions on wall street. one of the biggest problems about.

the collapse of lehman the subsequent financial crisis and the whole subprime lending fiasco is that a lot of that stuff wasn't necessarily illegal it was just. your moral or. inappropriate reckless well this is where barack obama is wrong the banks committed outright fraud they committed illegal acts of fraudulent inducement of fraudulent research characterization and fraudulent mis selling they've committed a whole mortgage support of fraud and barack obama is completely wrong and the press is too stupid to ask specific questions like well what about in the case of bank of america or j.p. morgan or goldman sachs log number of dot dot dot dot where on this day they broke it egregiously why did you not prosecute you shameless punk and as william k. black former bank regulator the man responsible for putting over fifteen hundred

bankers behind bars in the one nine hundred eighty s. after the savings and loan collapse said here on this show the laws were broken and there are no new laws needed and in fact in this clip barack obama then goes on to say this is why we needed the dogs frank act well in fact as william k. black said the laws are already there you're not allowed to commit fraud there is ample evidence ok well if there are no laws were broken barrack obama then why is it necessary for congress to pass a law that gives grants immunity to the banks is it because the banks. broke the law or committed moral transgressions so let's move over to the u.k. where the other center of financial fraud and how the leader of the country there openly states that there are crimes being committed and then does nothing about it

u.k. banks around ponzi schemes before two thousand and eight financial crash says so this is u.k. chancellor of the exchequer george osborne he said the british bank practices before two thousand and eight resemble the ponzi schemes contributing to. the market crash oh he's actually right george osborne is correct the banks committed massive fraud they were part of a ponzi scheme that crashed but he's like that joke about a guy who goes the doctor and says doctor my brother thinks he's a chicken the doctor says they have these pills and he says you don't understand we need the eggs he asked bourne says yes they're committed to ponzi scheme but we all got rich from the fees and the fees trickle down to the people and that's our economic model fraud well he suggests it's a human error that caused it so like those looters in britain i think they should just say it was human error that i stole the you know the bottled water that i'm now serving sixty years in prison for right now i prosecute randomly looters and stole bottles of water and not prosecute banking looters and blame it on human

error if i see us more on the street and i reach into his pocket i steal his wallet according to us board that's just part of a ponzi scheme that was accidental so he goes on to say meeting the bankers who operated the ponzi schemes he said they let down their customers they let down their shareholders and they let down their country charles manson let down sharon tate when he brutally murdered her you know that's the moral equivalency that george osborne wants us to make here that it's just a question of the banks letting us down when they viciously stall and raped repeatedly oh george georgie porgie to their credit bloomberg bank goes on to say a ponzi scheme is a fraudulent financial arrangement under which investors are paid high returns from the deposits of subsequent investors bernard madoff was jailed for one hundred

fifty years in june two thousand and nine for masterminding the largest ever u.s. ponzi scheme no u.k. banks have been prosecuted for running a similar operation but when warren buffett makes an investment bank of america as he did recently he's engaged in a ponzi scheme an outright fraud on. the scheme where he's using guarantees made to him by the government to make an investment unavailable to the rest of the public no that's not technically illegal that's not a ponzi scheme it's insider trading well according to c.c. securities like one hundred thirty three nine hundred eighty legal insider trade ok according to a series seven license that i obtained when i became a stockbroker on wall street and had to know this stuff ok he's committing massive fraud ok but the defense of george osborne gives these folks is that we need the fraud because that's our business model let's move on to the war that's going on we've talked about in the beginning of the show about the occupy wall street and tea party and occupy fed people are fighting back against the banker occupation here's a tweet from bill gross gross class warfare by the ninety nine percent of course

they're fighting back after thirty years of being shot at but bill gross was correct i mean he's just emphasizing what we're saying here there's a war going on between lawbreakers like the bank of america wall street warren buffett and the people being victimized by the laws being broken and obama sits back and wonders where's my next corned beef sandwich or whatever he thinks about during the course the day but it's not about being president of states but a lot of bankers clean air plead ignorance they say oh it's socialism it's marxism these hippies out there they want to take what we the one percent have so genius we grew our wealth creation we've magically turned money printing into wealth and this is the way they operate yellowing is only in effect or out when i worked on wall street we had a term for this called it's called selective amnesia so anytime you break the law

and you go to the compliance officer you can you can claim selective amnesia and as long as you give the compliance officer a bit of christmas bonus they ignore you ok yes it's convenient to have amnesia when you're breaking the law the target. when war broke out breaks the law bank of america breaks a law to be done to break the law lloyd blankfein broke the law just because they have selective amnesia doesn't mean that it absolves them from having broken the law well like barack obama said it's not necessarily illegal it is only illegal if the department of justice or the attorney general prosecute if they remember their job is to force the law as long as they forget that their job is to enforce the law then it's not illegal that's what obama say are for go with the law is not for it's technically not legal houses. but going back to this final point i have here max because i want to get through this the bankers are saying that the protesters out

there are marxists here's the headline brooks brothers bolshevism michael semple last the chief investment officer of j.p. morgan chase wrote in july of this year and a client's only newsletter obtained by the washington post that profit margins have reached levels not seen in decades and reductions in wages and benefits explain the majority of the net improvement symboles printed the latter quote boldfaced lettering us labor compensation he explained is now at a fifty year low relative to both company's sales and u.s. g.d.p. most are bragging about this and franchising auto workers are selling all their money here amongst themselves but as the headline in the wall street journal will be it will say u.s. increases productivity best that's the phrase they use to cover themselves when they destroy wages and destroy employment in the country it's a productivity game so we should all be proud as this banker points out it's a premeditated class massacre that of unprecedented proportion that now is

turning out to be killing people in the street in a pool gram of financial fraud and obama's too little and. we're hoping that he gets the t.v. soon well you could put the message in the bottle. all of the commander in chief is not going to rescue you have to do it yourself that's what my master socket by wall street is well say. all right stay there with thanks for being on the gaza report and keep it that way much more coming away says they write their. discovery.

i'll go back to the kaiser report on max kaiser time now to go to new york and talk with michael w. hudson author of monster how it can be a predatory lenders and wall street bankers placed america and sponsor global crisis michael w. hudson welcome back to the kaiser report thanks for having me back max all right michael hudson in your most recent article you chronicle what can only be called

for all in the subprime mortgage practices a countrywide and yet president obama said last week that sub prime lending was a moral but not necessarily illegal all your thoughts it's really not involved as character. to really lay down the gauntlet and say this is criminal conduct this is fraud as i say he's very much all about compromise and meeting in the middle it's interesting because if you go back a generation during the era of the first president bush they had a thousand f.b.i. agents investigating the savings and loan scandal there were a thousand as you know insiders who were convicted of felonies and a lot of big names including charles keating of keating five and lincoln savings and loan fein services substantial prison sentences we haven't seen that now we don't have a lot of f.b.i. agents on the case and most of what they're investigating is really low level

really the small fish loan officers mortgage brokers folks like that rather than trying to look up the chain of the food chain and look at the big players who may have had something to do with the fraud it was was really in panic in the mortgage market and on wall street during the boom right well in the case of the mortgage scandal it was a case of a legal fraudulent inducement and then a legal fraudulent securitization so they broke a law and now you're saying it's not obama's character to say that they broke the law i mean what does that say about his character other than that he's a weasel that's just just his personality is his personality is a kind of guy is personality he is you know it doesn't like to obey the law i guess that's his personality right he has the personality of a law breaker so bats. who we have running a country of law breakers so the people of america voted for their one of their own a law breaking weasel ok so don't corporate investigators find documentary evidence

of fraud at countrywide i mean let's talk let's talk about the reality here of the real lawbreaking and did the department of justice ever view those documents in the summer of two thousand and seven some of the in-house and s.k. . years from countrywide when out and went through the shred bins for a bunch of countrywide loan offices in and around boston and what they found was evidence that persuaded them that workers inside the branches were faking documents they were cutting and pasting literally they would cut and paste the address from one piece of property onto an appraiser for a completely different piece of property and presto suddenly the first piece of property looked like it was more valuable and you could make a bigger loan on it and sell it easier and that kind of thing happened throughout the mortgage industry you talk about ameriquest which was the biggest so prime mortgage lender during the boom and the joke there was always among employees oh well that's this this board doesn't qualify let's send the senate documents back to

the art department send it back to the lab and they'll fix it. but what's what's interesting about the countrywide case is what happened when the internal gatekeepers to the end house folks whose job was to find fraud what happened and i've talked with a lot of folks read a lot of lawsuits and their story is pretty consistent they did their jobs they found fraud they red flagged it and when that happened they were were marginalized ignored harassed demoted. fired or some combination of both including an executive vice president who was chief of the fraud investigations unit eileen foster. was fired shortly after bank of america took over countrywide bank of america said he fired her for inappropriate unprofessional conduct but recently the u.s. department of labor found that no that wasn't a case that actually they fired her as payback for her investigations that were finding massive fraud at countrywide and for trying to protect whistleblowers who

she believed were being harassed and retaliate against by countrywide right now what about the founder and c.e.o. angela ms below of countrywide you know. he was accused by the securities and exchange commission of insider trading in securities fraud. the agency claimed that he had taken north of one hundred forty million dollars in ill gotten gains out of the out of the company before it was near collapse and had to be bought up by bank of america ultimately they settled for a substantial sum sixty seven point five million dollars but the key here is that most of that was paid by bank of america or by countrywide insurers mozilla himself paid out of pocket about he was twenty two and a half million which by my calculations is sixteen cents for every dollar the government claimed that he had taken out an ill gotten gains ok keep it on countrywide the loans of course that were fraudulent is they were packaged into

securities and sold to europeans and pension funds walk us through this part of the either galloping and fraud that nobody in the obama administration chooses to recognize right you've got investors all over the world who are suing countrywide slash bank of america claiming that that not only was countrywide you know defrauding its nora's but it was also defrauding investors by by misleading them about what. characteristics of the ones that are in the packages packages of the loans are being sold including and flooding people's credit scores inflating their incomes inflating the values of the homes all sort of the key characteristics which is determined you know how much risk there is in this loan so now we've got a twenty billion dollar settlement and immunity for the law breakers over there mortgage fraud i'm not sure if it's not illegal why they would need immunity but i guess if i forget it real quick i can be like obama efforts and it doesn't exist i

look back on the robot who am i well we're not up she is now let's see there's a twenty billion dollars settlement to do in you guys the rapists on wall street has been concluded the only matter holding it up now is just how much immunity banks will receive and whether or not a new york and california will sign making financial rape legal and your thoughts you have both both california new york or earth holding out for a tougher deal also arizona and nevada are also holding out and this is very very interesting that if you go back before you know during the boom all these back actions were going on it was many of the states not only states but many of the states were the ones that were fighting and trying to crack down on these practices while the federal government often would intervene and step in between the states and a lender that was suspected of bad practices and say wait a minute with their federal license this is

a national bank so you keep your hands off we'll take care of it but of course the problem was is the feds didn't take care of it so we're search sort of saying the same scenario where you've got a number of states that are better looking to be tougher then the federal government right while this is interesting of course because i suppose the federal government if pushed to the wall and forced to somehow prosecute bankers i guess based on their recent activity the just. are to assassinate americans willy nilly who come forward and protest the amnesia of the white house when it comes to prosecuting bankers that's that ought to solve the problem so what some of the things you're working on now it would give us a little preview of what you're working on if you find my stories on i watch news dot org that's the letter i watch news that orgy and i'm working on a series of stories and already had a couple two three pieces out about countrywide but i'm also writing about other companies to really looking at what happened to people internally who tried to do

the right thing what happen to the whistleblowers who raised questions about fraud you know nobody wrote wrote a memo from on high saying here's how we're going to commit fraud here's where we're going to take advantage of our customers and investigator our investors but one way to really assess what it was a culpability from a management is a look at what happened when people reported fraud internally and when and as we've said a lot of folks say that when they did that they ran into trouble so that's really the issue i'm digging into and i'm encouraging more whistleblowers to come forward and more people to talk to me oh you know the goldman sachs case they admitted and it's in the record that they sold these and. of course word to describe human def occasion to their clients they and they knowingly did this and profited from it but let's talk about the occupy wall street movement is this having an impact do you

think or do you see this going it definitely seemed to be gaining steam you know you see it it's these sort of mini occupy wall street's happening all over the country if you read about it on twitter it's it's kind of going like like a forest fire so it's very interesting it's clear that a lot of people out there are distrustful of large institutions and justifiably so you have an institution that has lots of power it has has the ability to do lots of good and lots of bill but what's interesting is you know. you have the tea party movement that really was sort of focusing on the power and dangers of big government and now we have occupy wall street which is focusing on the powers and dangers of really big business and the powers on wall street and what they can do to harm average americans michael got to the odds of the so these occupy wall streets are growing in numbers but they don't seem to have a very well defined agenda which i guess is working in their favor because this way

it's not hot it's not easy to defeat them by arguing their point because they have no points but at some point they're going to have to have some kind of agenda what do you think are two or three points that they might want to pursue to consolidate their focus of all of this of all this grassroots activity i don't know if i should be one determined but my guess would be when it when it really starts to come together and they start getting more specific they'll be talking about things like too big to fail i.e. we should have banks so big that they need to be bailed out by government or that they have you know too much influence over the government i think that could be a key element that it sort of ties together what most of the occupy wall street people are talking about it is accountability and basic regulation some rules of the road to make sure that what happened in two thousand and seven two thousand and eight and it continues to happen now doesn't happen again but one back to the anti-war movement of course you had a martyr with the can't state murder on the campus of kent state that seemed to

galvanize that generation it got there got them in gear and they stopped the war and now we've got a financial war going the wall street bankers headed up by a bomb that declared war on america and was a blowers have been targeted for death and this is a populist uprising to try to survive against a corrupt crony banking class that not only makes raj the loans to europeans based on fraudulently induced mortgages but i. also creates the food stamp program run by j.p. morgan the very same bank to impoverish the majority of americans and make money that way so this is really a program a program like this local gram of history as exquisitely corrupt as the american banking washington axis ok well michael w. hansen thanks so much that's all time we have thanks so much for being on the kaiser report thanks max i appreciate it all right that's going to do it for this edition of the kaiser report with me max keiser and stacy herbert i want to thank

you all for watching and if you want to send me an e-mail please do so at kaiser report at r t t v are you until next time this is my size are saying bio.