here with r t with me. taking a look at your headlines it's a month into the cease fire and blood violence persis and syria is imposing economic sanctions on the regime meanwhile sectarian clashes have spilled over into neighboring lebanon and. europe's heavyweights will square up to each other later as the newly elected french leader campaigns for growth while the german chancellor pushes for forcing the belt tightening that's as greece struggles to form a government and it pushes it closer to quitting the euro. how the

world takes on torture illegal rendition and double standards when it comes to determining rights in his latest explosive interview here on r t this tuesday at eleven thirty am g.m.t. . ever vigilant for financial wrongdoing artie's max and stacey they look at the mistakes which led to j.p. morgan lost billions because a report that's up next. hi i'm max kaiser this is the kaiser report coming to you from sunny los angeles and it is officially countdown to the armageddon that is j.p. morgan and its share price heading toward the proverbial big fat goose egg on top of a. goal of fraud incompetence and overall scumbag by its

leader jamie diamond stacy herbert tell me more max you are of course speaking of that which jamie diamond said pundits such as you and i would have a field day with which is why we're coming to you from a field including with sound effects like the birds that's not a sound effect daisy ever valued actual bird but well of course we're talking about it doesn't get any better than this suicide banker jamie diamond self inflicts a whopper j.p. morgan chase announced a surprise two billion dollars trading loss and credit derivatives trading with the chief executive jamie dimon blamed on quote errors sloppiness and bad judgment and warned could get worse stuff we're going to get worse they say because the blood is in the water people understanding that this is the limit of our day of this year the enron of this year they have got tens of trillions of dollars worth of liabilities on their balance sheet they they try to pass that off on the fed's

balance sheet but then the fed is saying you know when we have an only so much toxic debt that we can absorb from these both good buzz down there j.p. morgan and those drones are going to start selling this thing make it short killing it obliterating it can't wait to see the stock of zero and hedge fund out there make an easy money short this puppy to zero max a few things there first of all regarding jamie diamond's comment he said it was errors sloppiness and bad. sprint which it already seems like he's setting up the chorus line defense here it's chaos in the back office so we're just using little sloppiness errors little things like that it's going to be blamed on the back office perhaps once the whole thing comes down and he's also admitted to just two billion dollars in losses jamie diamond himself says these positions are still open and he but he refused to disclose any details about the trades at the bank had put on but said that it would now focus on quote maximizing the economic value of these

positions we've got staying power and we're willing to use it while the can reveal details because he doesn't really know the details as a corporate governor he's a failure as a chairman he's a failure as a c.e.o. he's a failure as a banker he's a failure yes absolutely no idea what any what he's doing in his organization that's another reason why i should sell the stock short pretty aggressively and you know i'm looking forward to the day when he's got to go in front of congress and explain why because he's an egomaniac pig he decided to throw the entire u.s. economy under the bus well another reason why he may be failing to disclose what these trades are this is why j.p. morgan isn't giving you any details about the trade that caused this two billion dollar loss f.t. alphaville put it this way business insider says certainly the losses may grow particularly if rival traders now reckon they can turn the screws the positions that put j.p. morgan in peril have yet to be closed the banks traders are rushing to close those

positions but until they do the bank is vulnerable so business insider says max think about it it's like kicking a man when he's down yeah it's also like an agatha christie novel where you know lehman brothers got blown up bear stearns got blown up you know because j.p. morgan remember they they sold bear stearns stock short the marketplace and killed bear stearns stock with a premeditated fine. jamie dimon is a terrorist those let's keep that straight now he looks like might not be the guy to survive the attacks from other independents and rogues out there that would do to him what he did to bear stearns like he's got a cushy relationship with the fed he's practically got a lip lock on ben bernanke he's sucking that free fed milk and he's becoming a big fat fed and we should keep that mind but at some point the fed is going to stop lactating free milk in a jamie's mall is going to have to grow up and work for a living you can get

a job you fricken loser another important point about this insider saying it's like kicking a man when he's down is here's g.p. morgan a bank that exists that's their business models kicking people who are down whether it's bear stearns or whether it's jefferson county alabama where they kick the county to the ground and then continued kicking them and now sell them food stamps because they're all broke and desperate thanks to jamie diamond fraudulent you know interest rate swaps sold to the town you know who provides the capital for those food stamps again ben bernanke is lactating both of them give them all the money they need to issue food stamps to the people that they just disenfranchised with their attacks on their municipalities whether it's in the u.s. or abroad people in greece blowing their brains out because jamie dimon is an arrogant selfish pig yes ok and now the other important thing to note about this is that we've seen blythe masters saying they take no prisoners single trade they're

just hedging out of london they're hedging client positions so she and in particular refer to their massive silver shorts she said we're just hedging positions for a long silver clients and here we have a situation where if it were ahead as called senator puts it by definition if something is ahead then it's balanced by again somewhere else so this was not hedging it was speculation and there's only one thing worse than. speculating that's unintentionally speculation. well they were intentionally thinking this speculation which is the exact opposite of what life just said what jamie's been talking about the regulators don't care because they're the f.s.a. in london hello you're in the pocket of morgan do you care no you are completely worthless mary said perot yes you see i'm sure she had a conference call jamie before this news to work out how they would handle it. to make sure that the markets were disturbed even though the rapist just totally slammed the market with an unmitigated gall of

a financial terrorist keep it up ok well call down in your continues on this story as well more insider trading j.p. that's the stock symbol for j.p. morgan their share is as we know collapsed six percent on the aftermarket eight percent and ten percent down as the chart shows from carl denham sure this is the options trading on j.p. morgan on that thursday when jamie diamond came out after the markets close to warn people that they had this two billion dollars loss that could grow he says quote the highlighted field thirteen thousand eight hundred forty one dollars puts treated today in expire tomorrow for at the close about forty three cents they're worth a fair bit more than that right now like three dollars why would you buy a crap load of forty one dollars puts with the stock trading just under forty one dollars for expiration tomorrow that would be literally worthless in twenty four hours and less you knew something in advance so max you were an options trader what

does this tell you insider trading clear and simple and of course the regulators know about it that it's profitable to trade of as that information the washington and the defense that lloyd blankfein or diamond uses when they get called up occasionally for a dog and pony show in front of congress granting liquidity we're making a market but if i go into a liquor store and i shoot three people dead still twenty bucks in a cash register i'm not making a market in fear. every day i'm committing a crime shapiro you worthless rotten scoundrel well let's talk about what mary shapiro says she's in my next headline max as you see shapiro obviously focused on j.p. morgan trade securities and exchange commission chairman mary shapiro said on friday that regulators were obviously very focused on the situation at j.p. morgan chase and company j p m after the bank's surprise announcement that it will take a quote significant trading loss shapiro said to reporters quote all the regulators are very focused on this she declined however to comment on whether the trade gives

an impetus to regulators to adopt the volcker rule which seeks to limit speculative trading she also declined to comment on whether the financial stability oversight council a group of bank securities and housing regulators planned to meet to discuss the trade immersion definition of focus that before buying into a cucumber sandwich at the commissary so more washington d.c. she mentioned to somebody on line waiting to buy their macaroni and cheese to the effect did your budget be morgan terrible better to catch it. that's all that's all it's on base but that's my point is that they don't they're not focused on this they're not they're not judah kidding they're not regulating they are part of the problem they are deep deeply ingrained in the fabric girlfriend and they take money for this little be revealed that she is also part of this it's disgusting

well again you know here they always can never find evidence of a crime m.f. global collapsed dead the company a two hundred forty year old company dead and nobody knows if there's a crime. here again we don't know if people have broken the volcker rule well we know that for a fact something has gone wrong at the we know that these banks operate outside of the minimum capital requirements laws that are on the books and from there they commit various other matter of fraud and they claim that they're adding liquidity into the system is the excuse for committing fraud and nobody is telling them that they're wrong even though as a result people are dying but dead people in the street is considered collateral damage if you're a wall street banker just step forward jamie just a part of the dead people mary shapiro don't worry about them because they'll smell the rot and they'll you know you get the picture in this of a dying corpse in your face that you created don't worry about don't smell it put

a turkey good it's ok you're not going to burn in hell no no trust me you're going to the good place well max also the other thing about this is we were jamie dimon stood up at ben bernanke. press conference a few months ago liberating him for even thinking of instituting any regulations on this very market in which we've seen these losses that we don't know the end of the losses yet but again here's mary shapiro saying oh we're going to we're concerned about it we're going to focus on it and it reminded me of the heart of where this you know this event took place and that is london and here i want to turn to whether or not a headline that might give you some indication of what mary shapiro might find when focusing on j.p. morgan leveson inquiry jeremy hunt asked news corps for advice on phone hacking new e-mails show so the culture secretary for the united kingdom jeremy hunt faces

fresh questions over his relationship with news corp after an e-mail from its chief lobbyist claimed the culture secretary had asked him for quote private advice on the phone hacking investigation to guide his and number ten's position. the same e-mail shows that news corps was given in a quote extremely helpful tip off by mr hans office that he would refer to phone hacking in a statement to parliament right so there's a twofer phoria. j.p. morgan stock and why write it so short news corps stock because murdoch. is going downstairs thanks so much for being on the kaiser report thank you max don't go away much more coming your way stay right there. she good lumber tour. was to build the most sophisticated which goes into the doing about anything tunes mission to teach creation why you should

care about humans and. this is why you should care only dot com. hi i'm max guys are welcome back to the kaiser report coming to you from sunny los angeles california time now to go to nomi prins author of it takes pillage and her new book black tuesday now we will go back to the kaiser report thanks so much glad you're here now let's talk about the scoundrel jamie diamond. overseas an accounting fraud gold j.p. morgan chase he says he's got an egregious lawsuit there london desk that has cost

them billions will walk us through what's going on here you know there is an alleged one actual desk with the allegedly role of hedging the bank's positions but they didn't really hedge the bank's positions they they took positions they. bet on the corporate market in a synthetic derivative fashion that it would improve that is a bet that bet has so far because the corporate market hasn't improved last j.p. morgan chase two billion dollars that we know of and counting wait a minute wait a minute my memory seems to. tell me that just a couple weeks ago blith mausers who runs that this was saying everything's changed but that's clearly false isn't it yeah hedge would be i loan you as a bank and your corporation money i hedge against the possibility that you will not pay me back in that respect i will be doing the exact opposite of what j.p. morgan chase did out of their london office which is basically double down the martin gail betting system you know when you go to the roulette wheel you have

a losing bet on red you double it on red again and you spin and you keep doing until you actually win this works of course if you have an infinite line of credit and that's the only time it can really work and that's what we're talking about here is that these banks have an infinite line of credit they can never actually lose because the fed will never cut them off exactly they have almost zero percent money coming from the fed and not only that they have the knowledge that the fed the central banks in europe that the treasury part will do whatever they can whenever they can to keep these biggest banks afloat because they have just seen that unfolding in dramatic fashion in the last few years so knowing that that's the case having money available almost zero percent interest they can really bet whatever they want to because at the end of the day they will be protected because they will have more cash to go to that real that will again and keep it going so he's jamie dominance of the global derivatives casino and he wants to bet on red comes up black but he says you know what that never happened was go put that off

the balance sheet and now they're off balance is like ninety trillion or or is it their balance sheet the fed's balance sheet one of the two are they overlapping this is there some amazing amorphous new element that's been invented there where there's not here nor there what's going on well first i gotta say he jamie dimon doesn't think it's a bet or doesn't say it's a bet so that's that's the first line of defense that he has in this agree just a mistake that has been made by this desk in london that is supposed to be hedging the bank's positions but in fact was doubling down on them so that's that's number one number two. yes all of these positions the derivatives market that has grown so massively not just in the last decade but even since the two thousand and eight crisis the positions of j.p. morgan chase with respect to derivatives have increased by twenty percent so with all the catastrophe that happened they have actually gone further into this murky synthetic risky element and because they're all interrelated it doesn't matter if

it's on j.p. morgan's books off its books on bank of america's books off its books there's a backing of the fed and there is an element of inability to really know what those positions are as they are unfolding now we know that there has been a position that has gone along these corporate credits in a synthetic derivatives way we know that now we know they say this position has lost two billion dollars we also know that two billion can easily become three or four or five or more if the rest of the financial community attacks the position that was the devolution of m.f. global we've seen all this and yet it keeps going so jamie is a gamble holik who says he's not. exactly right he's a and so he's going to gamble is an international gamblers anonymous intervention now you may need his bank to be chopped up and separated. but nobody is willing to get in front of this guy and do an intervention and say we need cut you off from the credit spigot you gamble holic sleazebag they're not doing that they're not

doing that in fact the f.c.c. mary shapiro went about saying yeah we're looking into this after the fact and not because before hand she might have noticed that there's a seventy nine trillion dollar exposure of divot is that j.p. morgan chase has had on only a trillion dollars of assets and a trillion dollars of deposits so the leverage in their institution whatever it is they put it is a man's that's what mary superior in the f.c.c. should've been focused on not oh gee surprise there's an egregious error there could be some problems here now so mary shapiro is an enabler she's an enabler and in the case of the alcoholic many times i'll hide bottles around the house in case they're get caught so they can get drunk whenever they want to so jamie's place in these bad bets is to rid of losses around the balance sheet of his bank and other banks you know comment briefly on the what we learned about the lehman brothers repro one hundred five scam because i think it relates to this to some degree if you recall viewers when it came time to report that of the quarter they simply took

billions of dollars of debt and they parked it at another bank for a couple of days then the regulators left to go to some other bank they put it back on their balance sheet now doesn't are all banks doing this to one degree or another and isn't that the primary purpose of the global derivative slash shadow banking industry to hide accountability and to hide liability yeah and to hide losses it's called window dressing it happens in different ways and different quarters throughout different banks in the worse they are doing the more they require the window dressing so the worse the position is the more risk it incurs for the bank for other banks for all of the population that deals with these institutions and and has no recourse and no fed to bail them out the window dressing gets deeper and deeper and deeper the more that the loss increases ok so now the group. investors out there who know really what's going on in the hedge funds and hedge funds have huge access to capital as well as funds are the some of

the best customers of banks like j.p. morgan because they open up these credit lines to them and that gives them the ability to make these huge bets now what would it take to get a hedge fund to break ranks and say you know what i'm going to be the winner in this prisoner's dilemma going to be the the winner of this game theory john nash in moment and i'm going to attack j.p. morgan stock viciously with naked short sales everything i've got because i'm going to make a bundle and isn't there a risk of one of these headphones going rogue and effectively falling out of favor with the club as it were i mean isn't that a genuine threat it's a genuine threat look at what paulson did with the hedge fund paulson when he basically bet against long positions in the subprime market he shorted the heck out of them and there's no reason why another hedge fund can't do the same thing with the corporate credit positions of synthetic positions that j.p. morgan has on its like its needle in they can see the thing that would prevent that would be if they have an attachment to j.p. morgan through getting credit from j.p.

morgan which you know as you mentioned these banks provide because they have all this cheap money they provided to all their customers and the whole thing morphs into this huge snowball of derivatives that keep going down and down and down but it does break down we broke down in lehman brothers and it broke down of bear stearns where the essentially the hedge funds a banker j.p. morgan i think was one of the biggest beneficiaries of attacking bear stearns yes with short sales they acquire those assets for pennies on the dollar and we see this kind of using financial instruments as weapons yet now they're being so my question is j.p. morgan have used weapons to acquire assets on the cheap and they've used goldman's use of agrees to acquire greek assets on the cheap i'm just saying isn't there somebody out there with the kohona to take on j.p. morgan why can't they attack morgan to take that stock down to zero you know it could be a desk at citibank you know that there could be an institutional or a group that says. you know we're going to make a quick buck against that j.p. morgan stock which has been down ten percent after the announcement of this two billion dollar and counting loss and whatever else marks behind that but against

a very position which will make the unwinding their position just create a bigger loss for j.p. morgan the whole thing goes down and down confidence so rose etc. it could be a bank it could be a hedge fund and it could happen it's very possible. there's so much fraud in all of this and you know jamie diamond made no mention of these problems in his quarterly shareholder conference obviously he omitted some key information which is a is a crime through a mission the options market was quite active on that news obviously some insider trading going on as well there have been buying back their own stock. so talk a little bit about that phase of this multifaceted fraud yeah well in april there was a announcement or people knew about the fact that there was this position that was growing and there was a wall street journal article on it you know people talked about it talked about it and that kind of festered and jamie dimon was like will. it's under control you know this is this is the guy that the business press considers to be this champion

golden wonder boy of wall street he's had it under control he'll have it under control and that's what he goes in with even now that this two billion dollars has come out as a loss his whole m.o. is yeah it's a mistake it's agree just but you know i got it and we're going to cut it and move on and it doesn't work that way in an integrated unregulated derivatives heavy financial market also with the global banking community first second because some of the banks in other countries are not happy with what's going on in canada for example as it relates to this global move by the bank of international settlements to raise you know quality capital to one capital jamie diamond was actually hectoring the head of the bank of canada about why he shouldn't be so forceful in attempting to raise capital requirements for banks like here's here's a sovereign canada it's not jamie's client maybe it's a client but i mean it's not it's not jamie's country jamie so i'm canadian we're just to get off going into canada in a lecturing their government you know how to commit fraud like he does well and

jamie dimon has been enabled by an entire infrastructure of politicians of the fed of the treasury department of an f.c.c. to roll this like you monger egotistical head about how banks should operate because he's so great at it ignoring all of the help you've got ignoring the fact you know you mentioned bear stearns before in that takeover that j.p. morgan did of bear stearns they're still guaranteed to twenty nine billion dollars worth. of money in case those positions failed by the federal reserve were still on the hook for their takeover of bear stearns so he's been unable to do all this and when you enable like you know. truculent bully in the neighborhood to to keep doing what he's doing and say don't worry about it here some more capital you know here's here's someone else's lunch you just keep doing it and he's just showing that he continues to have the arrogance and the large institution behind him to keep doing it so the. use the bully analogy he's doing milk money from the kids at school and

he's doing so with the permission of the principal who not only gives him permission but guarantees that he doesn't get the full extent of the milk money he's trying to steal that they're going to bring in burslem for that amount for a certain period of time yeah that's what's going on and it's against a history where or even that bank has never been as egregious as what he is doing is never had as much capital to float on as many favors and jamie dimon was voted in twice to be a class a new york federal reserve director he's in there a second time you know he's at the top of this game he's involved in and that has created what is potentially what is a bad situation j.p. morgan because it is connected so much to the rest of the banking community the best of the financial markets and to us who have to deal with these institutions when we deposit money take out checks use credit cards or whatever else let's talk about london for a second because london is really the nexus of the global fraud is that they have the a.i.g. one through their m.f. global one through lehman brothers main they all went through london you were in london you were at bear stearns for

a time so you know what's going on there quite well what is it about london the regulatory framework what's actually going on their word becomes the clearing house effectively for global financial fraud london's had a history of being that clearing house since before the first world war when u.s. banks have wanted to circumvent any regulation that has happened from before that to glass steagall nine hundred thirty three and so far as they fail they find a place in london they open it that's where they learn from that's what they've done and other institutions have done that as well and what's happened is london has never kept up with. or have the wherewithal or the desire or whatever to keep up with the sheer volume of transactions that go through and banks always take advantage of the weakest place to do the most business. let me first time thanks what's being on the kaiser report thank you and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i was like my guest nomi prins going to say we need mail please do so at kaiser reported r t r u

intellects on nice guys are saying.