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imax guys are this is the kaiser a bar band with a whack fest out there stacy ever tell me more max kai is there it's time for a plea bargaining for the bankers companies engaged in financial crime get plea bargain offer so companies engage in financial crime in the u.k. may be able to negotiate plea bargains under legislation being put forward by the ministry of justice the department yesterday published a consultation on a new law allowing companies to self report their involvement in financial crime the long awaited step is the first in a process that should lead to the introduction of u.s. style deferred prosecution agreements solicitor general edward garnier q.c. say if we can encourage companies to self report income clean pay penalties and

mend their ways the time and expense of investigate. some prosecutions will be better spent elsewhere in the building us to bring more individuals and companies to justice right so so free poor thing you don't expose yourself to any criminal prosecution you pay a small civil fine so that means it from a financial terrorist like a just b. c. barclays bank or any bank in the u.k. or doing business in the u.k. like citibank wells fargo j.p. morgan goldman sachs financial terrorist i do a financial crime as long as i tell the regulators ahead of time that i'm financially you know raping people then i can just be associated with a civil fine not a criminal fine as course that's but it built into my cost of doing business it's a line item called financial rape on the bottom line of the balance sheet yeah go for a bank you can do it so you can't destroy more of your fellow countrymen see if you can put more british people face down in the mud watch you just do it from behind the. p.c.

you could do it i know you care you know go harder harder you're saying you're in this it do it all. so they get to sell freeport their financial crimes but again remember max this is london and not much is actually against the law in terms of financial crimes or very few financial crimes there yeah i mean what's left in london they have removed all of the barriers to committing financial fraud member and global had the re hypothecation scam you can sell the same bond twenty times thirty times forty times to even though it's complete outright counterfeiting counterfeiting is legal financial fraud is illegal all those accounting firms like a b.m.g. deloitte to shows you guys are camilli commit complicit in fraud you know there's no law there's no legal barriers whatsoever if there was left i mean the self reporting what there's nothing left to suffer report they've been committing

wholesale flight. anshul fraud twenty four seven three sixty five you know what's left to do that somebody would still the queen's teacup oh my god i report myself but i'm going to pay a fine or a max exactly they don't need to suffer the poor all these regulators need to do is turn into the kaiser report and they'll find out what crimes are being committed right then right there now they should have a channel on the u.k. called financial fraud it's a twenty four hour news channel murdoch should put it up you could start with his criminality and fraud and then have all the banks in the u.k. actual real time for all being committed live on television twenty four hours a day as a special dedicated channel b.b.c. seven or b.b.c. eight so all the other b.b.c. channels that don't report of the financial fraud because jeremy paxman of course is complicit in all this they can have a special dedicated channel just for financial fraud you can watch it live in your

living room you get it financially or by financial terrorists you can enjoy your so big financially destroyed in real time from britain go for it let's move on to another story where we might see some self reporting criminals here financial crimes yes having your teeth ripped out may soon be just a mere a financial crime max dental abuse seen driven by private equity investments so eight percent of all dental management firms in america are own by private equity in this case here is that they highlight the case of a four year old boy i said getting non who stepped off the school bus sobbing last october and opened his mouth to show his mother where it hurt she saw it steal crowns on two of the four year old back teeth a dentist statement in his backpack showed he had received two baby root canals

along with the crowds and ten x. rays. all while he was at school now max he his mother never signed any permission slip she had no idea her four year old was going to have his teeth extracted like this and they quote what happened at his school when he had his teeth ripped out he kicked and screamed while several adults held him on the dental table according to a teacher's aide stephanie scholtz the dentist man got me the little four year old said i saw a scene like this at the holocaust museum and this is what we're talking about private equity group would take out so much public if they had the opportunity to do so these are these are again jamie diamond or private equity groups they'll be happily ripped teeth out of four year olds to make a quick buck and that's who we're talking about that's who's running the economy those are obama's friends yes but in america you have to remember as long as it's not the government doing this it's ok it's not the principle of ripping one's teeth out it's the fact that only private corporations should be doing and they should be

making a profit and indeed in this case congress is now investigating this because there's a huge amount of profit i six cases little boys case in particular and others like it are under scrutiny by federal lawmakers and state regulators trying to determine whether a popular business model fueled by wall street money is soaking taxpayers and having a malign influence on dentistry well congress of investigating because they want to piece of the pie i mean nancy pelosi wants some of the teeth ripped out of four year old money feathering her nest and you know the president does still complex the prison are of course running most of the municipalities in america and slave labor and prison labor is back in america ripping teeth out of kids for a buck for jamie's bonus these are jamie's kids forget about jerry's kids at the end of the summer he does a telephone let's raise money for jerry's kids there should be jamie's kids at the end of summer you know a lot of ten thousand for all to rip their do you found for jamie shareholders.

graduation. well actually max in this case the four year old had his teeth ripped out by morgan stanley private equity isaac's dentist was dispatched to his school by reach out healthcare america dental management services company that's in the portfolio of morgan stanley private equity it operates in twenty two states and has dealt with one point five million patients management companies are at the center of a u.s. senate inquiry and audits investigations and civil actions and six states over allegations of unnecessary procedures low quality treatment and the unlicensed practice of dentistry so i don't know who they have actually ripping out these little kids teeth but it also reminds me max of early america they used to do that to irish people you know they would rip out their teeth and sell it or some irish people would do it just for money you know they use them as for dentures i guess well if you go to los angeles down in the parking lot in the skid row people are knocking their teeth out and selling it in exchange for crack which of course of

packaging sold by wall street through the opium fields that they control now in afghanistan so they've got another source of revenue there so around for some reason in los angeles it's he with the greatest teeth gets the most money because they're on film those are knock out their teeth in the parking lot get a nice crack bump and those who are ripping teeth out like the morgan stanley on behalf of jamie dimon get a huge bonus at the end of the year funny how teeth play into this throughout the entire system and of course it is this a private equity scam just like a lot of the private public partnerships are scams of actually the taxpayer it turns out it's it's a medicaid scam so medicaid in america is the free health care for the subsidized health care for poor people and apparently sixty three percent there's been a sixty three percent increase in medicaid expenses related to dental care in the last two or three years and ninety percent of medicaid claims for orthodontic

braces. were found to be invalid because they weren't medically needed ninety percent max yes that's an astronomical number considering that you can get yourself checked and want on a mon have a medical brace inserted in terror jaw and pried open to near death for nothing just claim that you are for free speech and you can be tortured for free now on another final story here regarding you know just plea bargaining we might see zhang cloudstreet shay need to plea bargain his way out of financial war crimes tree shade declares war read the headline on market ticker dot org this is his take on a headline from c m b c that says x e c b chief trish a unveils bold plan to save euro europe could strengthen its monetary union by giving european politicians the power to declare

a sovereign state bankrupt and take over its fiscal policy the former head of the european central bank said on thursday in unveiling a bold proposal to salvage the euro the plan offered by zhang cluttery show you step down last november as you see the president would address a fundamental weakness of the thirteen year old currency the survival which is threatened by the greek crisis well if you combine the tree show story with the morgan stanley ripping kids to thout story. i was that different than the neo nazi ism that's emerging in greece right now i don't see a difference it's just on the institutional level by bureaucrats and male nazis in europe of course they want to have the ability to declare a state incapable of taking care of itself to move in right in there and run the country you know no poland tried to do it hitler tried to do it now trish a was to do it and finally on that max actually there's another story that regarding this european crisis and these plea bargaining financial terrorists euro. austerity

example ireland may need second bailout so i know i brought up the irish formally giving up their teeth for money when they first arrived in america ireland seen as the euro zone's poster child for implementing austerity could require a second bailout economists warn so once again where we're back in the same position we told you this on the kaiser report years ago that they would need a second a third a fourth and fifth bailout but now apparently they do so the irish taxpayers already pumped sixty three billion euros into the banking system and now deutsche bank is saying that they'll need another four billion. we were in kilkenny last year as part of the konami festival of economics and i told the audience point blank that there's pat kenny on his t.v. show another huge bailout is coming as bad as things were the really ugly part of

this financial terrorism is yet to come and they just look around like worst my pot of gold at the end of the rainbow where's my share of rock or you know or what are you talking about everything's great here at least i didn't kill us no that's coming. wow it's fantastic if you are if you're a student of history to watch people just walk into the same combine of swirling machetes again and again throughout history they never seem to learn they don't negotiate with terrorists whether it's true should say whether it's the banks in the u.k. or jamie diamond something obama needs to learn don't negotiate with terrorists we'll see what the outcome is going to big stacy herbert thanks for being on the kaiser report thank you max don't go away much more coming your way stay right there.

i am x. kaiser welcome back to the kaiser report time now to go to terry bull terry bull is

journalist his work can be seen in all the major financial publications and also has a terrible dot com terrible welcome back to the kaiser report the max is great to see you already terry bull you have a blockbuster story on j.p. morgan's latest ten q what is a wells notice and why was j.p. morgan presented with a wells notice or why does it matter ok so a wells nose is kind of this special a little warning that the securities and exchange commission will issue financial institutions to say hey we just want to let you know we're going to sue you or we're going to deliver an a foresman action we're giving you a warning ahead of time so that he maybe you'll come back and settle it's kind of like they're calling their bluff why this matters legally is that when they issue this they have to actually the bank has to actually put that in the financial filing so their shareholders now so it's kind of like the f.c.c. is saying hey we're all guess what they did something wrong we haven't charged them

yet but we're going to warn you ok so bear stearns are sorry j.p. morgan because of bear stearns sense got one of those in january we finally just learned about this because j.p. morgan had to disclose it. and right now it doesn't mean that they've been sued by the f.c.c. but it means that they definitely could be and that they definitely are having a conversation with them about coming charges so the jury pool. well what's worse the fact that they got a two billion dollars by mismanaging their proprietary risk assets or the fact that they fell to disclose as well as notice which is actually the more culpable crime then the certainly filled to disclose the wells no it's i think it's more that jamie diamond has been out there saying oh you know let's take this max in december jamie says in front of his investors that investor conference and tells them yes i realize we have fifty four billion dollars in residential mortgage

backed securities that were being sued over but and this was an american banker story but i don't i don't think they're going to prove their claims ok so this is in december so in january then the f.c.c. comes knocking on their door saying no we do think you did something wrong and we're probably going to sue you so i think it's definitely worse that he's the nun lying the fact that this is a serious serious problem and let's take a look at what happened after that december meeting so fifty four billion right we learned that fifty four billion has now turned into one hundred twenty million dollars that's what they disclosed in their ten q. they said we could be sued are we are being sued for one hundred twenty billion dollars in residential mortgage backed securities fraud in problems that's a big number i mean they don't have their big bank right but they don't have one hundred twenty billion dollars i think in capital use pay that off right in my previous question i used the word culpable i meant to say egregious which is to use

jamie diamond stearns which is the most egregious law breaking situation but now you measure this huge number of a hundred twenty billion dollars now this is at a time when the global banking system at say the bank of international settlements and the regulatory agencies are trying to get banks to increase their loss reserves or capital reserves you're saying that this legal reserve that has to be addressed . on the balance sheet this is going absolutely against everything that jamie diamond's been arguing for with regulators he wants less capital in the balance sheet not more capital how damaging is this going to be for this kind of a bank that has absolutely no reserves whatsoever once you strip out all the liabilities but a factor of many thousands of percentage points i think is a serious problem they started out in the beginning of two thousand and eleven with only like about a billion dollars in reserves now i was told according to my sources at the f.c.c. was already knocking on their door saying not enough guys you have some serious

problems coming your investors are suing you you have not reserved enough ok so we started to see them amp that up and that's really an accounting trick which i wrote about. the go ahead and start to think ok shoot this this is getting real you know new york judges are allowing these fraud claims to go forward and we could have a problem we better we better add more to those litigation reserves which is a hit to their income statement ok so i mean they added two point five billion about the middle of april and then we see three weeks later they had four point two billion in litigation reserves ok that seems like a lot and that was a lot and that was a hit to income right but let's just take them on a line suits. they they stay in their financial documents that that alone the face value of that if you don't even add on punitive damages about five billion dollars ok so say they have to pay that well that would wipe out like a whole quarter's earnings when it and then what about all the other institutional

investors this number keeps growing and growing he has to reserve more capital to pay for this problem and he's going to have less money to lend to main street yes but of course there's been no interruptions to salary or bonuses talk to me about monel line and johnson these model line lawsuits explain to the audience little bit about model and business how j.p. morgan came to own this mortgage backed securities behind them so j.p. morgan if they did issue their own mortgage backed securities which the f.h.a. f.a. but that's a government agency that has to do with housing ok they did actually sue them for like double digit billions for some of their own residential mortgage backed securities but mainly the bulk of what they're getting sued for and what was in the wells notice came from bear stearns when they bought them in march two thousand and eight so it's true that they did inherit some of these problems but what's worse is

in this goes back to my reporting back at the alam take in january two thousand and eleven j.p. morgan knew this was a problem when they bought there were auditor's report warning you're going to have to pay this money back and instead they went back to the model lines and they said no we're going to do our own investigation we're going to look at this again and see if we really owe you this money will they've been playing that game since two thousand and eight it's four years later right and they're going to have to pay they're going to pay this money and it's a joke well it just sounds like the number you used earlier i mean that's about the size of the time market capitalization of the company plus these added up problems that at the time j.p. morgan was being gifted bear stearns during the. the right answer crisis of two thousand and eight that was engineered by hank paulson for his buddies on wall street to give them billions and billions of dollars as a fake a fake. crisis that would never have to go down the way it did they were presented

with bear stearns as a present to jay right because he's a crony capitalist of the shyster now he was portrayed as coming to the rescue the financial system but it appears as though the bear stearns gift if you include the model line fraud and the massive silver short position that's not blowing up in the face that that maybe that wasn't such a great deal after all your thoughts terry bull i think that they regret buying bear stearns you know yes i would if i was jamie diamond and you see that in some of the moves that they're outside counsel greenberg trial has tried to do in january they went in outed some of the whistleblowers that have come forward since a originally talked about this on your show last fall there were thirty whistleblowers that came forward from these due diligence firms and they have played so many dirty tricks and published their names so they would get trouble in their old job i believe even though this haven't been proven i believe they're paying they could be paying off some of these witnesses they file these claims that they want to ridiculous amount of discovery just to delay the process and i've

never seen someone so desperate to not emit that what they bought which is bear stearns was a bad idea it's going to be bad for their shareholders and it's bad for their balance sheet now what about the bankers who put together these residential mortgage backed securities where are they now is there any hope that some of them may face criminal prosecution at some point like iceland did again since criminal bankers ok so tom around oh tom around i was ahead of mortgages at bear stearns he then became the c.e.o. of a company called rezko rez cap is owned by allied big was just really just g.-mac renamed right yeah well guess what tom ran a little rez cap company just filed for chapter eleven bank. see this week this is a company that we bailed out with american taxpayer dollars they we i.p.o. it and now it's bankrupt again it's like this man never stops and doesn't get caught i don't know what is going to do to go find his next job and i'm sure he

saved the double digit millions that he's earned but maybe he's to sit in there like causing financial havoc again with another company then there's a man named mike nuremberg he's the head of mortgages no bank of america he's a sitting there making money there's just first allies are who we knew went out and spent maybe a million dollars renting out this aspen hotel for his daughter's bar mitzvah he's just like going crazy with his money they're doing all fine now the the new york igi which i reported last year is investing in them and he and he has told. him they were you know he some attorneys that i've talked to believe that he's going to charge him with the martin act but again you know i don't know when that's going to happen that's a fifty fifty chance so terrible you are primarily covering the fraud the financial fraud from your perch out there in connecticut grants connecticut new canaan connecticut and certainly in greenwich is where probably the greatest concentration of hedge funds resides in the world and interesting that when the desk in london

was fired by jamie diamond the desk that oversaw the billion dollar now three billion possibly twenty billion dollars gap or older balance sheet they're being replaced now as a recruit that's coming in who is an alarmist from long term capital management of course famous hedge fund that almost blew up the entire global markets not too many years ago your thoughts i think it's a joke i mean first of all i think the desks should have been forced to stay there and wait their trade and get paid maybe a dollar a year right why do they get to leave and get their retirement and then to bring in another man who was part of a hedge fund that blew up and almost caused massive how big to the finding out. so crisis i don't know what jane is thinking i think right now he's not thinking i think he's just reacting and that's that's not a good thing i want to see in a c.e.o. of the largest bank in the world it's interesting that we've also seen reports

terry ball about how the media was complicit in hiding a big story over goldman sachs they were now it's been exposed that they were involved in a legal naked short selling of stocks to to profit profiteering from financial terrorism and they actually had a budget they had forces on the ground assuaging media to not cover the story threatening media outlets not to cover the story threatening people not to talk about naked short selling and they have a whole campaign on the ground like you know a propaganda campaign from wall street does stop any mention of these illegal practices and certainly on the major outlets and financial outlets and in the u.s. they don't talk about it do you have firsthand knowledge of these types of activities going on as surety nicky shorey i think happens all the time is hard to prove but here's what i say about the media my peers not in not covering it i think sometimes they either are there beat reporters they're afraid if they write something this aggressive about

a large powerful bank will never get another interview right or or they won't get that extra scoop and i think that's a problem in reporting in journalism that there's and there's a second issue though honestly that they don't understand it and there's very few financial journalists i think that actually understand the trade who will do the homework who will do enough research should be able to communicate what's really going on. to through the investors writer or to the main street reader i mean that's our job all right terry bull run out of time we'll look for that thanks for being on the kaiser report thanks max 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 terry ball you can secretary bowl dot com join us i mean e-mail plesiosaur because they reported our to t.v. dot ru until next time my skies are saying bye go.

you know how sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize everything you thought you knew you don't know i'm tom harvey welcome to the big picture.

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