treasures for the. welcome to the. autonomy area. exactly half past the russian capital top stories now on our t.v. bonfire of the austerity an italian museum director still has to burn works of art in protest of the state of the country thanks to europe's debt crisis. in syria rules are great for the international commission but with violence coming on regardless and auti crew finds itself under fire in the city of their own. russia will give nato extra help in the afghan war part allowing more supplies through its territory as iran sees its troops caught up in a wave of violence and scandal in the winter. well that's it for me and the news team for the moment from us in half an hour from now in the meantime as promised we'll bring you the salacious side to the world finance and the cause report.

tris or this is the kaiser report so goldman sachs caught breaking the law again stacey or bert max kaiser indeed s.t.c. fines goldman sachs twenty two million dollars over. the securities and exchange commission on thursday fined goldman sachs group twenty two million dollars over allegations that the wall street bank didn't how policies to prevent analysts from sharing nonpublic information to the firm's traders the exchanges took place and weekly huddles where goldman's research analysts met to provide their best trading ideas to the firm's traders and later passed them on to a select group of top clients the f.c.c. said well yeah

a lawyer called glass steagall was present prevented this exact thing from going on the communication between the analysts of the bankers within the organization and this was there after the glass crash and depression in america and they passed some laws to try to keep these groups from talking to each other but now goldman has formalized their fraud with this weekly huddle that they get together i suppose that it shows the the huddle is like a football huddle because the blankfein likes to touch the little guys but behind so i think is one of the main objective of this organ of this meeting well in fact you said it was a crime but this is a fine they are paying so i think the f.c.c. is actually treating it like it was cuddles that went a little bit wrong i mean this is their mollycoddling now weren't they well what happens when cuddles turn into something more than that you say and you know they should sign when you join one of these firms very strict rules and regulations about getting a little bit too cuddly so they have to be careful that they're just whispering

a little nonchalance so and so's into each other. cares about so and so being bought and sold it's called inside information isn't and they've they've created a weekly meeting that also called inside information meeting yeah exactly ok they're trading information back and forth with their the between the bank and the analysts and the traders would start not supposed to do and they claim all the time they're not doing and they're clean we don't need any more regulation we don't need a restoration of classical because we don't do this we're perfect guys and if we do we'll pay our for the crime right but they're paying just a small fine twenty two million dollars how much does that represent of their profits it represents six months bill it sparks a steak house basically is what it amounts to let me get whacked and one of these times are going to get whacked if they keep doing this so max in two thousand and seven according specificity of the new york investment giant began a program known as a symmetric service initiative where analysts shared information and trading ideas for meetings with some investor clients yeah asymmetric warfare exactly there's

a sort of the asymmetry here is that the clients are getting hammered their clients are getting royally screwed the insiders at goldman and their privileged clients and make money trying to get inside information by lobbyists and by congressmen to pass laws to make it easier to read inside information thus filling the annual the weekly asymmetry information meeting with even more grist for their insider trading mark manipulation mill that they used to pot line their pockets i'm told that they're lucky not to be down the sparks. well that's where gangsters hung out in the seventy's and eighty's and these are the new gangsters of new york now they said the s.e.c. said these meetings the so-called huddles these little cuddles in lloyd blankfein steam happened between two thousand and six and two thousand and eleven they do leave out a very important huddle or several huddles between lloyd blankfein his traders and their analysts and sir. treasury secretary who about the max. paulson i mean you go

to the two thousand and eight period we find out later that paulson thanks to a whole with the insiders on wall street told folks that the government was going to bailing out these institutions printing money to do sell the banks all tripled and quadruple during that period of time based on all between hank paulson congress and wall street and billions of dollars were siphoned out of the economy and put into the pockets of few folks who used most of that money to pass laws to make it easier to commit the same crimes over and over again yes those hurdles you were talking about with hank paulson they were actually involved. with these bankers from goldman sachs he met with hedge funders who used to be at goldman sachs he told them despite going in front of congress and telling congress. we will not bail out fannie mae and freddie mac. they will not be put into receivership into conservatorship and in fact he was

telling them that we're going to do it so you cannot this is our little huddle our little cuddle but i won't but that's exactly right and this is a one of the most blatant examples of really this modern crypto engineered financial fascism when you've got the hank paulson's in the revolving door between wall street and washington trading on inside information leading to this amalgam of fraud that's poisoning the waters of our financial system and causing widespread austerity despair discussed outrage pre-revolution well max you bring up the word fraud and according to joseph devore in attorney at close in o'connor in new york and a former assistant regional director and as he sees new york office he said the fine was not in consequential for a settlement that involves technical violations of internal policies them for as eidur is oh that's the best that's the technical violation so that's that's that's i'm talking about technically they need to take the money that they make from

training us inside information to go and pass laws to eliminate each subsequent technical aspect of the laws that were there to stop this violation of these chinese wall conversations from happening to begin with so when you replace the word law when you hear the word technical no matter what they do if lloyd blankfein came into this room stabbed you multiple times live here on camera it would be a technical violation of knife laws. exactly this exactly he was a violation of the no knife into the lunchroom a lot the fact that there's a pool of blood underneath the t.v. presenter is really not to be focused on at this time because technically he's not violating anything of substance so he could. walk weather is completely wrong being the end of global customers and having the us bail them out is ok because he was

wearing using the right fork at lunch and so finally on this goldman sachs story this guy joseph devore the former f.c.c. guy he says that it makes sense that the commission was able to negotiate a penalty sat on over four times the two thousand and three pound awfully sad moment so yes goldman sachs already paid a penalty in two thousand and three for this exact same technical violation but they have more leverage now because of the financial collapse to plead with goldman sachs to pay a little bit more money this time around. a little more money for your lawbreaking in your criminal behavior please go to those who do school good we do this what if you could use. poor be recruited to low skill. you know this is outrageous that the f.c.c. is begging goldman to to write up the fine if they're comfortable with yeah it's sort of actually you know saying you know what you guys are shameless lawbreaking thugs banks are scum and how about we bring it out of sparks in

a wacky get out i love these chinese banks who give you know they take the bankers opec and like to kill them that's a deterrent death is a deterrent now speaking of technical violations we have some more technical violations from another big day you and me you kill me over here there's good tickle violations we're going the goods i don't need new technical violations good so this approach of the third ok if i could park anywhere oh what i do is to lose money on what has been given to go back to that's me i don't need to carry out a lot of well these are technical violations from the other big. mystery is a bigger group bob. paul says look good for. the low it's j.p. morgan's day we die where god is the the ships. this is like a little blow in there the. dollar j.p. morgan said to transform treasury to prop trading this is again brings us back to

glass deagle j.p. morgan chase and company chief executive officer jamie diamond has transformed the bank's chief investment office in the past five years increasing the size and risk of its speculative bets according to five former executives with direct knowledge of the changes achilles map hired in two thousand and six as the chief investment officer as top executive in london led an expansion into corporate and mortgage debt investments with a mandate to generate profits for the new york based bank three of the former employees said diamond fifty six closely supervised the shift from the c.i.s. previous focus on protecting j.p. morgan from risks inherent in its banking business such as interest rates and currency movements. oh or do we begin first of all they said they're increasing the size and the risk yes by a triple play the tripled it we're living in an era of the too big to fail banks acting like khurana eating our everyone's lunch so here's

a guy name ecus prerelease a killie's mattress. killie's a mackerel this becomes into the into the coliseum with a plan to transform yet another market into an over securitized toxic waste dumps the jamie dunn is going to extract these from well max some of mattresses bets are now so large they take morgan probably counts on wind them without losing money or roiling financial markets the former executive said based on knowledge gleaned from people inside the bank and dealers at other firms grunow excel another london based trader in mattresses group gained attention last week after moving markets with his trades drawing a comparison to federal reserve chairman ben s. bernanke use power in the government bond market where great anky is to the treasury market excell is to the derivatives market but they're too big to unwind right without causing massive financial disruption did they get too big unwind by

accident you know that's the idea we get too big to unwind on purpose so that we don't need to on wind because this is a scheme where we are out there extract ing rant from everybody who is even tangentially connected to this economy they must go through this interest rate scheme perpetuated by the bernanke and the j.p. morgans of the world and the costs are rising and they end up suffering and these guys are mafioso they're the mafioso well you mentioned mafioso so let's turn to this further information about this story here and see iowa's growing size and market power have made an increasingly important customer to wall street trading desk in a market influenced by head. loans and other investors the former employee said positions and credit derivatives have become so large that some market participants dubbed him voldemort after the villain of the harry potter series who is so powerful he kept it called i name this is not good when you have bankers who people

are afraid to mention their name yet and who brings us back to that first story about goldman sachs the f.c.c. is afraid to mention goldman sachs is crimes by name so it's called a technical violation please don't tell us lloyd blankfein crisis all idea that too big to fail is a problem so we need to rein in we need great granddad we need to bring in the volcker rule we need to bring in new legislation we need to have a elizabeth warren do it type table dance for a couple of congressmen down of sparks in d.c. you know to try to stop all this was a complete farce because it got much greater it got much worse the whole thing just going completely out of control say sarah thanks so much for being on the kaiser report thank you max good way much more coming away so stay right there.

something. lies beneath. the thousands of natures of choice drug. for lovers. that is a loser for many. but dangerous even to those who keep it to distance. i am backscatter welcome back to the kaiser report special in studio guest matt

taibbi matt welcome to kaiser report great to see you and parse reading all your stuff in the rolling stone and first of all chris a quick question i mean you're writing all these stories about banks and and what's going on on wall street but are you writing about finance or are you writing about about crime stories basically it's funny the winds have gotten so blurred it's basically an organized crime story and that's really that's what i'm trying to do lately is just convince readers that it's not really a you canonic story or a fine a story it's organized crime there's no difference at all yeah i mean there's a language that people use the bankers it sounds so highfalutin and they use these are the false swaps and derivatives and collateralized debt obligations but they could just as well be talking about you know whacking the guy behind the dumpster at sparks so it will essentially it's the same thing so you write a gangster banks keep winning public business there the then the business of doing the business of the public in essence and they even though they're clearly

violating the law they're continuing to get these contracts so tell us about it yeah this is an example where it's exactly like the old mafia business in the old days we had municipal bid rigging and it was a mafia group that would prey upon some local municipality and. mafia groups would divide up between each other which tear which town they got to service their garbage who got the service the laundry here who got to do this and that the cement the construction and that's exactly what we have with modern. investment banking all these investment banks have essentially divided up their territory their. artificially lowering their bids for investment banking business so town goes out and it wants to issue a bond and all the banks all of them good usual suspects bank of america chase they're all colluding to submit artificially low bids and everybody is losing out and it's exactly the same activity that we had with mafia groups it's just that it

happens to be bonds that are garbage well junk bonds as they're called great faith which bonds and exactly so now another thing aspect of this is that they know the mob as gone global right wall street mob and you see in casino italy there's a big story race of ray and other and you've covered this extensively you know so it couple highlights there again give that global the globalization of this absolutely the that's one of the problems with prosecuting this kind of crime is that it's it's so good it's so cross territorial and you're across jurisdictional that there is no one law enforcement body that can really aggressively prosecute this kind of crime and they also have a tendency to go a. regulatory shopping essentially a bit if they seek out the areas where the regulations of the weakest are the regulators for the weakness and that's where the world based their operations that the laws are are less powerful so it's very very hard to nail them down for things like the swat manipulations or the really big story i think this is that if this

year is the manipulation of libel war which is a this new burgeoning case that's coming out and nobody really knows where they're going to prosecute that case yeah that story and i don't know if he's followed this one or not but bank of new york was caught and multi-trillion dollar custodian business for pensions and and what not they were stepping in front of all the trading of foreigners throat running for explorer and just scalping a penny billions and billions and now they're saying oh we're not sure we can prosecute that story that's like office space that movie it is exactly one period of time but you do it a million times right now that's an interesting. rolling stone of course is a pop culture magazine and it got back to the hunter s. thompson days of coverage of the politics of the sixty's and the nixon and there you are europe in the magazine in the writing is different then you're going to find the wall to wall street journal of criminal ties because you bring in a real literary sense to it it's great to read even if you're not interested in the in the details of the stories it's well written so that as

a writer one of the challenges is kind of a bit of a tangent story but most want to ask this as a writer when you're talking in this space because the material so opaque ready to crimes are when you talk about inflation it's a crying that no one is really aware of it happening it's creeping it's all around you how do you deal with that i mean as a writer as a journalist and go through your thought process on that a little bit yeah it's incredibly complicated challenging because. this is part of the reason that these guys get away with as much as they get away with because it isn't in trying to explain some of these crimes you know you can't do it in a thousand words you can't even do it three thousand words it takes sometimes six seven eight thousand words to explain how many of the municipal bond market works or you know what he was doing before the crash all those things so the first thing that i try to do always is i try to connect the activity to

a real world consequence so i'll find somebody who actually ended up losing money and then i'll try to sort of connect that consequence to the crime so for instance in jefferson county alabama you start with you know somebody who got laid off or somebody you had to pay a sewer rate that was five or six times what it should have been and then you kind of work back from there and show how j.p. morgan chase's the citizen through that sort of bribe its way into the lap of the local infrastructure resulted in that person having to pay all that money. so it's definitely a challenge to i mean you yourself know the verbiage and all it is is a camel flies for all these crimes and it's very very difficult to sort through and the crisis that happened in two thousand and eight the result of this was not any reform but that the too big to fail got even more to big to fail they got to bigger to fail yeah i listed a lot of specific lee a piece that you've written the bank of america too crooked to fail. so it's

a great another fantastic you know home run piece to walk us through it a little bit talk about it we just tried to do with this pieces is kind of walk you through what the consequences of too big to fail are and what what it really means what people don't understand is when these companies get this big and bank of america this is back up anchor america show you got out of business in two thousand and eight they made two catastrophic decisions back during the crash one was to acquire countrywide which is the giant subprime lender and the other one was to win money when they were essentially forced to acquire merrill lynch so they had these two gigantic albatross around their neck but instead of putting it out of business it had the conversely had the opposite effect the company got so big so artificially big because of these acquisitions and now we couldn't let it go out of business and now we're stuck with this company and it essentially no matter what they do no matter how many different kinds of ethical misdeeds they get an involved

with we really don't have a choice anymore but the slap them on the wrist kind of hope to get better and continually bail them out and this is this is what we tried to show in the piece we can sort of just listed all the different things that they're involved with from municipal bond. to rigging live boards to all the mortgage backed securities rip offs that these guys were involved with ripping off the hamper program you know the obama's mortgage program ripping off people who have prepaid credit to america cards to get their unemployment insurance benefits and just one scam after another but we have to turn the other cheek and this. and let it happen what about mainstream media like m s c m d c which is cable network dedicated to the ticker tape basically as a cheerleader for all this so you've got it like a warren buffett will come on who celebrated as america's sweetheart billionaire and he's going to be a position of bank of america wells fargo bank he's directly involved in this fraud wells fargo bank the story with the drug lord in the mexican cartel. acquired by

wells hundreds of billions of dollars rightly connected to the chain late change in mexico twenty two tons of cocaine basically what that what it what they covered it well and so you have a warren buffett will go and see him b.c. he's investing in these companies great and but yet these are places ukulele you know i mean he's the great genius the oracle again from the pop culture side the rolling stone side you go from jimi hendrix star spangled banner you know his stock to warren buffett playing a ukulele and it is getting a meeting. and people are celebrating that as a milestone and cultural you know achievement how do we get this far down the slide what happened it's amazing you know i remember and i grew up in a family of journalists and i remember when i was a kid reporters hated powerful people it was a sort of a thing that was part of this business we we have a thing we wanted to stick it to the man if you was doing something wrong if nobody

kind of what they thought it was their role to kind of to people down a peg when they when they got too big for their britches but i don't know maybe i don't know if you have the same experience but in our business something's changed there's a completely opposite dynamic now in the media which is that we worship powerful figures we grovel and slobber at their feet and it's been a terrible thing for america because there's nobody really asking these questions and these guys are allowed to get away with a lot more because they have the presumption of correctness every time they come out with some new horrible scam a beard they're always given the benefit of doubt but by reporters and. it's just that it's the unfortunate thing yeah whistleblowers are being attacked as you know ministration much more than any other administration and history is attacking lots of bloggers really and journalists are under attack all over the world and stopped at borders in our own country in the u.s. and it's become you know i should say the dynamic has completely changed. but let's see we've got to touch on this john corson scandal and m.f.

global because here is kind of a new chapter because what we what we have discovered is that the discourse scandal he reached into customer accounts right any took money that segregated customer money so it's not just billionaires playing with each other in ways that ultimately to cause problems this was a direct this is just stealing stealing you know no way to round it it's so but of course iran is nothing has been for brought against him straight talk about this oh this is an incredible thing i was just out in california last week and i'm doing some research about how we prosecute say welfare fraud in america right and there was a case that i heard about where a woman who was on welfare she was on public benefits and she she used a public. daycare at a time when she was not allowed to use it and they prosecuted for fraud and put her in jail because she used the government service at

a time when she wasn't supposed to technically right so we actually put people like they need to make forty or fifty felony cases a month in these california counties against these very very small time. people but you know john course i mean he steals how many how many hundreds of millions of dollars it was i mean and again it wasn't a sophisticated operation it was just like you're talking about it's like when did you know a businessman gets desperate he reaches that embezzles his own company to pay off a drug habit or whatever that's what this was how is this guy still walking around how is there no case it's worse than the trayvon martin thing is this is this well in a way i mean it's it's just it should. as you we live kind of in these two different worlds where there's one set of rules over here and what sort of rules over here well it would make a trayvon martin comparison it's you know here's a guy who's getting murdered in the street over italy and karzai is committing fraud openly in the street in the glare of the spotlight and people are wondering what is that really a crime there's

a similarity there like there's some just got murdered in the street. i wonder if that's wrong right here the guy course i he just blew in this he just stole this money they're like oh is that is that wrong finally that save me given the arc of the story here do you think going to run out of stories in this on this topic. and it's funny i was just talking to with another journalist and we both we both talked about how it's like a lifetime job security thing with this with this topic there's a sleep and was bottomless well of these of these scams and you know if you do kills your sense of humor i mean they're incredibly dark in there and some of them are quite ingenious actually but they just never end i mean is that your experience they just simply could never run out of is only going to be leaving this post anytime soon read exactly what men say thank so much being on the kaiser report thank you all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i guess matt taibbi of rolling stone that i mean email please do so at kaiser reported r t t v dot ru until next time nice guys

are saying.