violence. and the tan year anniversary since one ton of a baby greeted its first prisoners has been marked by protest in the u.s. and abroad people took to the streets demanding the release of those still held in the jail the president obama vowed to plough. through the top stories and that's max and stacy look at all the scale behind financial news headlines in the report. this is the kaiser report scientists say that cognitive ability declines after forty five years of age and in fact mine is being to go. i'm becoming clearer voyant i can see you and what you're thinking stacy herbert hello max kaiser i have a great headline here is the front page actually of the economist magazine see the

city go threats to the world's most global financial center and as you see this the city of london being blitzkrieg there but i thought as a civil war a good idea would be to destroy the city in order to save the city yes let's destroy the city to save the city this is the american way that max i'm going to read a quote from this economist piece and i want you to interrupt any time that you were just so offended by this quote ok london is by many measures the world's biggest financial center and weakening it is in nobody's interest wrote that financial center by that i mean a financial fraud center and by wakening it is a no banker's interest yes least of all britain's they go on better regulation of banks is certainly needed especially to protect british taxpayers and so far the city bashing has been mainly rhetorical but running down one of the world's most

successful at mobile commercial clusters is folly what do they mean rhetorical what's occupied movement about what about people dying in the streets to fright the banks this is a condom is the blinders on it's not rhetorical you know it's an insult to the people have given their lives to fight these bankers a call rhetorical you plots and in this section called strangely california doesn't talk down silicon valley finance the funneling of savings to their best use is a vital industry britain is very good at it leading the world in various financial markets including foreign exchange and over the counter derivatives of the silicon valley. like the air. sops valley of death where people's pensions and savings go to die channeling savings into the black hole of non accountability malfeasance and fraud is more like it what exactly they didn't even mention that i

want to refer to a headline we discussed in episode two to six revealed have city fees are eating into our pensions and in the article they said highly paid city traders are depriving pensioners and savers of thousands of pounds through high management fees that are often hidden according to the leaked advice provided by consultants to the treasury well let's be clear the hypothecation scandal ran through the city because of the absence of regulations and regulators which have given us m.f. global a i g bernie made off. and it goes on the list goes on a river of fraud runs through it and they get this not rhetorical of people are dying to fight these tomatoes in the frickin city well max let's look at another headline which disproves everything that the economist says and proves

that i am right that we must destroy the city in order to save the city u.k.'s bailed out banks face new thirty billion pound hit concerns over the outlook for the banking industry have intensified as adults have warned britain state backed banks face more than thirty billion pounds of new losses over the next three years these aren't new losses these are losses that are on the books off the balance sheets of the books that now after they got the government to impose the first round of bailouts and then impose austerity measures to pay for the bailouts they're now going to reveal the next trough of debt now and this is revealed then the release also more austerity measures and. then there were reveal more losses so it's a death by a thousand revelations you know the downside of the veils you know coming off and we see trillions of debt back there off the balance sheet the global banking cartel

and of course whenever it comes for them to report debts on a quarterly basis that might impact their earnings and bonuses of course we know from documents from lehman brothers and others they play a rest of prosody game where they park each other's debts on each other's books for a few days to escape having subreport those debts therefore making their earnings artificially high the our earnings in the u.k. and the us for banks are supposedly up because they don't reveal the debt until it's time to put a gun to mervyn king's head and sort of the co and let's get more bailout money because their assessments because their peers because their opponents well mag's they're also very well paid chief executive pay outstrips company performance so chief executives in eighty seven of the footsie one hundred companies took home five point one million pounds in basic pay bonuses share incentives and pension contributions and twenty ten to twenty eleven a new report reveals this is from the institute for public policy research and they found that the total remain a ration of tea for executives increased by thirty three percent while the average

increase in company shares was up only twenty four percent well there's no laws against dealing in that industry so of course or take home pay is going to be odd because there's no laws against dealing in that industry and mervin can keep interest rates there zero percent to make the stealing that much easier so so facto the robbers the robber barrons least the robber barons from the nineteenth century built stuff like railroads and the no oil industries here the robber charlatan barons of the city of london in the wall street build nothing they're just paper ponzi scheme pyramid building schmucks speaking of schmucks man. i have this headline here blaring corporators baffling increase in earnings so i just said the chief executives their pay was up thirty three percent over a few years well tony blair is up forty percent in the last year accounts for wind

rush ventures and obscure company that operates under the trading name the office of tony blair so just two thousand and eleven has been a successful year for the former prime minister winder rush saw its turnover rise to just over twelve million pounds up from eight point five million pounds at twenty ten and pretax profits rose from seven hundred twenty nine thousand pounds to one point one million pounds when rush tony blair figured out a way to modify his flatulence and you're going to actually use as collateral to issue like billions of dollars with the tony blair flatulence bonds which are now sitting in the british pension accounts yeah of course is earnings are up tony blair remember prince bandar his office told tony blair that unless you call off the investigation by the serious fraud office into this last row between be a prince bandar of saudi arabia you can't guarantee there won't be another seven seven bus bombing in london tony blair sitting prime minister threatened by a terrorist act bent over for the saudi prince bent over any amid some plots and

bombs which was then worth twenty billion dollars going to goldman sachs well as the numbers show there was a forty percent increase in his income but there's no way to actually get into the details because there are so many shell companies and offshore companies and various it's very complex which just seems very bizarre coming from a former prime minister who led an illegal invasion of an oil rich country that there should be some sort of oversight this this sort of blatant kickbacks that he's receiving is pretty remarkable and is the account of. the lloyd and douche of day the cones how come they're not coming forward with the real numbers oh because they've been involved in all these scandals as well going back to arthur andersen and the enron scandal. all now there are less accountants and they're equally corrupt as the investment bankers and tony blair who did trade blood for oil and he traded a lot of blood for oil and a lot of money that is pocket the guys swimming in blood he should be in they

should be facing war crimes and one of these companies is actually registered with the f.s.a. in. able to give investment advice so why wonder mag's what his investment advice is invade an oil rich country invade in the oil rich country and mid flatulence collateralized bonds like this within libya i mean moammar gadhafi ended up really you know a term as whatever he was over there dictator eventually having to be succumbing to tony blair who came in there and stole all the money goldman sachs and who ended up you know in an uncompromising position on the floor of their dead due to the ability of one side to float city collateralize paper over the go with the actual oil that that matched that of the guy with the oil to won that match but no you're going to blow of that magic because he's got the accounting agencies the

investment banks the whole entire government totally corrupt with fake boogers paper one percent trillions of dollars with it used as leverage to undermine everybody except him so the huge bonus like don't blow your frickin terrorist now speaking of bogus that's my next headline my final headline here max offer to buy kodak ruled the bogus u.s. district court paul seahawk in florida so merrily ruled in favor of the u.s. securities and exchange commission in this lawsuit against allen the weintraub and his firm sterling global holdings now this man earlier in two thousand and eleven he apparently sent a letter to both kodak and to a.m.r. the parent company of american airlines. and offered to buy them for something like over three billion dollars but it turned out that he had zero assets or no money so the f.c.c. has sued him and i guess for a million dollars he doesn't have the money to pay that but in his own defense he

filed a two page summary saying that he maintained he didn't violate any rules that he has never received any letters from any banks telling him he can't borrow the money needed to buy kodak and or a.m.r. corp so he said you know he did go into a bank and said hey i want three point one billion dollars but they never sentiment official notice saying no we won't give you that look a private equity firm doing leveraged buyouts as these to call them in the one nine hundred eighty s. they don't have any collateral and because of eastman kodak or a.m.r. the parent company of american airlines you don't have any money you don't have any collateral you use the collateral of the target company to finance your loan exactly so this guy just did what you do short of those he just won in the kodak and said look i want to buy kodak i wanna buy a.m.r. i need a three billion dollars bridge loan as soon as i acquire these assets are going to sell a company offer bits of pieces and pay back the loan at some point or create some other sort cocked collateralized flatulence bond and you have goldman sachs like another bank and whatever but i don't get it he's not doing anything different than

any private equity firm carlyle group blackstone any of these guys coral i've gone what's what's different about this guy how come you brought tony blair that's it if you have brother tony blair he's the deal would have gone down a little problem mr weintraub to go to greece to write poems and the other thing they did know is that he had been convicted of fraud before and you're supposed to put that in the letter when you ever submit to buy a company but just because he's one of the you know the bottom ninety nine percent or ninety nine point nine percent who didn't get away with their fraud it's not like the city of london doesn't have fraudsters galore of course ah and fraudster glora but he's not being charge. so he could make bogus attempts to purchase a.m.r. kodak it's a badge of honor i don't know your banker that is not but litigated against some way involved in a lawsuit i mean j.p. morgan i think they have three major suits in the last twelve months against them

for fraud yeah but they never have to admit guilt that's the problem this guy had to admit guilt. but they want to judge judy is going to go to the s.s.a. or somebody you know they've got it just done a little of that they will find ok well there you have it stays there were thanks so much for being on the kaiser report thank you rex don't go away much more coming away so stay right there. more news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. showing corporations rule the day.

maximizer welcome back to the kaiser report time to go to los angeles and speak with nomi prins author of it takes a pillage and black tuesday her recent book you can find all of her work at nomi prins dot com now we welcome back to the kaiser report thank you max all right no me i want to ask you about john corazon m.f. global but first you're a former director of goldman sachs so just to clarify out of the audience you were not there at the same time as john cores on correct yeah no i came out after he left i was there through the hank paulson era all right we've covered the paulson era now run the john corps and now it's been about four months of the collapse of a global not a single pair of handcuffs or nobody's going to frog marched off the trading floor

you wrote on your blog that john corazon m.f. global on accountability do you expect corazon walls gape any ability for his actions now me it is looking increasingly likely that he will he shouldn't he had to have known exactly what m.f. global did with its customer funds because he was part of the trade that required the use of them so there's no way he doesn't know there's no way he didn't realize that the regulations that talk about how to segregate customer accounts were billing obliterated by him and his company and yet congress in its shadow investigation with him handled him with kid gloves and there were no less than seven regulators who were supposed to be monitoring what he did who have yet to slap him with anything so it's looking increasingly likely like he's going to be just another one of these large c.e.o.'s who ransacks people's money and walks

away though he shouldn't though he has committed a criminal act in the mafia when somebody becomes a made man they become own touchable so no none of the other mafia gangs can kill. because he's a made man is so of course i'm now in the mafia kleptocracy the runs our economy is a made man because he's been part of that clip talk recy he's one of the mafia guys so the question is will there be will this investigation show that he's worse than the rest of the guys in the mafia group turns against him or will they realize you know what everything's fine this will just blow over we keep them in our cartel and we move forward because he also knows a lot about what j.p. morgan might have done with those funds about what goldman sachs might have done with those funds so it's best in the mafia sense for everybody to clamp down and shut up which is kind of what's going on or deflect and in that respect he keeps his cover all right now the collapse of m.f. global was possible through the infinite real of papa cash allowed in london you

were also a senior banker for bear stearns in london so what are your thoughts on laundered as the center of this sort of derivative and mabel fraud london has always been a place where derivatives have less oversight there is an f.s.a. there is a financial services authority who is supposed to keep track of this and other things but the issue is there are less bodies and less specialists within the f.s.a. to determine where money is coming from where it's going how trades are being put on and so forth and so a lot of stuff slips through the sidelines slip through the edges but again that happens in the united states as well there were one hundred seventy five million dollars or two hundred million dollars worth of those customer funds that were. basically moved from the m.f. global balance sheet in the u.s. to the m.f. global ltd u.k. subsidy of m.f. global which would have been under the financial services authority that didn't

question where that money came from or how it related to customer funds that basically turned a blind eye which is what it tends to do although again the f.c.c. turned a blind eye to the rest of the almost billion. there is worth a customer funds that also managed to disappear and be misused in misappropriated fraudulently spread about by m.f. global are left to go a little deeper let's bring in j.p. morgan goldman sachs reports now suggest that m.f. global is offering assets to goldman sachs in the days leading up to the firm collapse on october twenty seventh but that j.p. morgan never transferred to funds m.f. global as there was that outstanding one point two billion dollars quite a lot of the brokerage firm out of j.p. morgan so your thoughts on j.p. morgan's role in the m.f. global story nami both are said that look at the one point two billion dollars again for a second that one point two billion is equivalent to the credit line from j.p. morgan it's also a third of the credit lines that were available to m.f. global in general it was a significant chunk of what they needed to have in order to keep john kors zines

bets going goldman sachs received some of those securities we don't know what they are because again we have inept nontransparent regulators running that part of the show that they got probably very cheaply and probably used against some of their own transactions because they also have bets with respect to european sovereigns in derivatives and futures and insecurities so you have a situation where goldman sachs and i mention this on my blog is also the clearinghouse for some of these smaller transactions the customer driven transactions under all six zero six there's a report for those not delineated but that mention that goldman sachs is one of the clearest we have a clear that's been there for from the get go that is basically getting some of these securities not the money not going through to miss global to go back to the customers from where possibly and probably the securities are coming from and you have j.p. morgan who is just sitting there keeping the money so that when it knows m.f.

global's going to go bankrupt it won't have to spend as much time in bankruptcy court trying to get it back it's just keeping it from the get go how to pay more get out of the customers because under a blanket. they would be behind the customers. of the bankruptcy of a futures trading corporation that of they get ahead of the customers well because they kept the money i mean this is what we have to still see is being revealed by the investigators in washington and so forth and the regulators who didn't do their jobs but if j.p. morgan is sitting on money against credit lines from m.f. global knowing m.f. global's collapsing knowing those securities are being sold about it really cheap bargain basement prices and that they come from customer accounts and they keep them to begin with it doesn't go into bankruptcy court if this allusion that this money has just been lost continues to play out and continues to get ignored in terms of any form of of legal criminal repercussions against it j.p. morgan effectively got before bankruptcy court before the bankruptcy ever happened

and then it's still going to be in bankruptcy court trying to get whatever the rest of the money is that it feels it's so so it's basically playing both sides but it knew what was going on from before the company went bankrupt and took its chips from the table and has retained them although the regulators don't seem to be either aware of this or publicly acknowledging it how is j.p. morgan taking advantage of insider information not the same as confiscating wealth it is stealing money from m.f. global's customer segregate accounts that's one way it is it is stealing it is taking wealth it's confiscating what it should and confiscate as as the credit line provider and this is something that happened in any big fraud if you look at the major bankruptcy united states and elsewhere the credit line providers particular the big ones and j.p. morgan is a big one if you're providing more than a billion dollars to a company whether it is in iran or world com or m.f. global you know you care exactly what is happening is that company because you want those credit lines to either never be drawn upon so you can continue to have them

open and get paid for them or if they are drawn upon you want them to be repaid as soon as possible that's your game you get paid to have them out there and take them back as soon as possible you're very aware of. it's happening to the company now in august in the summer and the global was already having conversations with the f.c.c. about the fact that it needed to put out more money to continue its bets with respect to european sovereign so this was not unknown to the f.c.c. and obviously to j.p. morgan chase and any company any bank that would be extending a large credit line to any company that's involved in any kinds of bets so this is this is how they have insider information they see things as they're falling apart they know not just how many assets and the school might have on any given day but where they're used how they're bet where the funds are located what credit is necessary to continue to keep them going and that is insider information how they play that in for insider information seems to be to have basically taken that money

taken those funds pretended they didn't know where it came from and sat on it to avoid having to deal with that aspect in bankruptcy court about the m.f. global happen again and what are the global implications for j.p. morgan and others who put themselves before customers and small investors as they read they did steal wealth and confiscate wealth what one of the implications globally if you know me well what this is showing is that if this case basically gets dropped or disintegrates in time and there's nothing but potentially a little settlement that's fine that settlement has been you know from the f.c.c. which seems to be what happens with goldman sachs which even more with bank of america anything that happens it's a tiny settlement there's no criminal actions and everybody goes about their day the implications of that are that they continue to do it that they keep on going and it's not just j.p. morgan it's the big european banks it's b.m.p. it's credit suisse there's a south korean bank that worked with credit suisse to buy one point five billion

dollars worth of subprime assets from j.p. morgan chase and goldman and other companies that went to zero they basically took the money of of individuals in south korea in their regular bank accounts who wanted to make a. bit extra in supposedly secure funds that's gone this is happening throughout the world so the more these companies get away with it the more they have the ability to not just be providing credit lines and confiscating money from the big partners like m.f. global but also having customers who have bank accounts with them who they suggest to have funds with them that they can then put some of the assets back in the don't do well and take money from people that way it's a continued global implosion in the process because there's no accountability there's no regulators not in the u.s. not in the u.k. not for some global perspective who's putting any kind of a watch on this or any kind of a stop to it so i was j.p. morgan continues to steal from its own customers this creates an economic black

hole this is us it's a it's the government to come out what the either bailout measures or austerity measures and there seems to be no end to it because if nobody is going to stop j.p. morgan and other banks from stealing from their own costumers and get washington to pay off the difference by either imposing austerity measures or seeing europe or some kind of balances or say in the u.s. the end game i would imagine well i can't imagine what is the end game and the end game is unfortunately more of the same and bigger j.p. morgan chase in the situation with m.f. global didn't just steal from its own customers it stilled from the customers of its customers so you know you're talking about multiple levels of stealing then there's the fact that as a bank that has the ability to trade and put money and put credit lines and look at all the other derivatives implications behind a m.f. global or any type of more complex company as well as take deposits and give loans and try to offset funds onto its customers there's no line anywhere if you can take

segregated accounts in a brokerage if you can look at the deposits of individuals in a bank and use them as chips on the capital table in order to bet. on other things and there is no line you continue to do what you're doing in this this situation continues to get worse there should be unilateral large black line between anything that has to do with a customer an activity for a customer and anything that the bank wants to do from a trading perspective for which it should not get bailouts for which it should not be held unaccountable and for which it should be criminally slapped with being destructed is it crosses that black line all right nomi prins are out of time thanks so much for being on the kaiser report thank you all right that's going to do it for this edition of the car's a report with me max kaiser and stacy herbert i will thank my guest nomi prins she wrote the book it takes a pillage you gotta go read it you can follow us on twitter or facebook you can

send me an e-mail at cars reported r t t v are you until next time x. guys are saying by all.

the crisis in relations between washington and tehran is aggravated by the assassination of a fourth iranian scientist in two years iran blames israel and america. the first foreign journalist is killed in syria's unrest and french camera man was mortally want to buy a grenade in one of the country's authorities say was a terrorist attack. and a ten years after the infamous one time obey greeted its first prisoners people in the u.s. and abroad demand the release of those still held in a jail that president obama vowed to close.