thanks for joining our team at half past the hour with a quick recap of your headlines violence in syria flares up as the u.n. calls for a halt to all arms supplies from abroad meanwhile the peace plan and highlighted differences within the opposition which its factions have been struggling to overcome. the new eurozone rescue fund is facing challenges from within not even a week after it was agreed the bailout plan and anger in finland on the netherlands with a court challenge to germany. and america's hunt for julian a song appears to be continuing blower is waiting for ecuador to make

a decision on his asylum bit that's as are set to bring you the final episode of his interview show. up next to max expose the dark secrets of the financial world and a concert report. hi welcome to the kaiser report stacy herbert we have a worldwide exclusive here everybody in the u.k. b.b.c. news night b.b.c. one week they wanted to talk to who i have here max kaiser yes it's incredible that some of the b.b.c. news night they realize i've been right all along they've been e-mailing me come come to london be on the show to talk about barclays libel or l e bore libel or well i figure you know why speak for about bob diamond when we can get bob diamond

in the studio so let's go let's go to get bob diamond see here to talk about barclays directly. by own bob diamond i run barclays bank in the u.k. yeah i'm as guilty as. involved a massive fraud with the library market interest rates manipulation since out of trading that's me bob diamond now max the reason why i think all these b.b.c. news programs wanted to have you on is because of your infamous dave cameron s t f u where you told him in no uncertain terms that you can't have plundering in the city of london and then outlaw in the rest of society in response to the riots that happened so i'm going to wind back to those riots and also to the present day and see how david cameron responded to those riots and now as he's responding to the widescale crime the fraud that has happened at barclays david cameron on the twenty

eighth of june says people have to take responsibility for the actions and show how they're going to be accountable for these actions so then we cut back to a year ago max david cameron tenth of august two thousand and eleven here he is responding to ten twelve year old children who rioted. if you're old enough to commit the crime you are old enough to face the punishment calling for prison terms for these guys these are these little kids yes but if you're senile like bob diamond and committing fraud in your sleep and you claim you have no responsibility because you're a feeble in the mental capacity and you couldn't not commit a crime if your life depended on it because you were born in the criminal atmosphere you live in a criminal these like a board in a test tube baby of crime is his mother was pure sin and his father was larceny and in the test tube it was bob diamond criminal pro-gun to the lloyd's of the fraudulent banking system of the city of longer just recap nic were and wherever he

goes wherever he talked as it turns into google behavior he's got the reverse might just touch but but dumb to remembering sort of garbage so this is their first instinct max he's telling this criminal organization show us how you're going to be accountable for these actions it's usually that we show you we are telling you how we're going to make you responsible and pay for your crimes discussing the way the government forms and defers to hardened criminals like this and the media is no better the guardian newspaper runs a story is saying well you know barclays attempted to manipulate interest rates no gardy related interest rates scratched the word attempted beer journalist. well in fact let's look at the other media because when you did that david cameron s t f u is a response to a telegraph piece now here is the telegraph last week about bob diamond and barclays is it time to consider locking up bankers and this journalist

here at the telegraph says we don't want to be considered left wing because you know they all hate bankers but that doesn't mean that outrageous greedy behavior should be tolerated it's not outrageous greedy behavior it's criminal behavior look they're committing crimes and they're. isn't people are not more outraged because people are misinformed because of the press that refers to bob diamond's crimes as an attempt as a legit that's not true just because he paid a fine in exchange for being able to say that he won't do it again or that officially doesn't have to cop to being guilty of the crime doesn't make it any less of a crime and folks should simply end to this trifecta of crime whether it's the bank of england the so-called regulators and bob diamond that they're able to get away with covering it to others but that they should then buy into this by giving the verbiage in the rhetoric that covers the crime they're as guilty and couple in this

crime as anybody involved in this conspiracy this actual conspiracy involving all these parties serious fraud office f.s.a. barclays carmen osborne and the press in the u.k. and the guardian this is a conspiracy a racket the result is people are suffering they're being an austerity is being imposed upon them unnecessarily in a cruel and unusual fashion from the government whose only motivation can be sadism because there's no economic justification for not locking up the criminals but forcing society to undergo massive cruel unusual austerity so again turning to this paper max the telegraph where they're saying should we consider maybe possibly locking up these people for outrageous behavior right here they are last year august two thousand and eleven u.k. riots young yobs back on streets despite david cameron's pledge young offenders who took part in the rioting and looting that that blighted britain streets this week are walking free from court without having to face significant penalties despite

david cameron's promise that they would face punishment a string of juvenile criminals have been allowed to return home with their parents so these are genuinely ten eleven twelve year old boys who they want to lock up in prison not going crying home to mommy now here we have a fifty year old man who goes crying to his in. no central banking mommy who's providing all they just need to clean up their little culture that maybe they should be a little bit nicer and liz steele last right well bob diamond is a little press isn't crying to his mommy mervyn king for a bailout and you know at the time when the story broke i suggested that they give these kids a banking licenses to go work at banks like barclays because a proven lunars that they're going to boost the g.d.p. of britain by hiring these kids to work at a in the stablish what my barclays which is now unequivocally in the business of looting hires the next generation of looters bob it means so greedy you want to insure the loot with other looters let's agree to this guy is so again everybody

was unanimously decided that ten twelve thirteen year old boys should be sentenced to long term prison sentences for their looting of a four dollar bottle of water well ministers have spoken of removing benefits and council housing from those convicted of rioting or looting now let's compare that to today barclays oh let's go over to the new york fed primary dealers list. who's there barclays all right the primary dealers are the eighteen or so banks between the governments and the market who are either buying or selling bonds in a way that gives them rent seeking on the entire bond market it's three money to them that they claim is necessity to maintain markets and maintain liquidity by giving these guys a subsidy just like every welfare queen bob diamond the welfare queen just a subsidy by being a primary dealer by the way they gave lehman brothers for next to nothing after the engineer the collapse of that bank another gift the bob well headline reads i won't

go says bob diamond despite calls from prime minister for him to resign over market rigging scandal again look at that headline market rigging scandal this is a crime it is in the crime pages of the newspapers it's not a little scandal. but bob diamond was able to say i'm not going to go david cameron s t f you he said to him right well i mean there are scandals and the crimes are coming fast and furious to coin a phrase i mean you've got this diamond on top of the what nine billion that was revealed to j.p. morgan's balance sheet that they are involved in another massive creating fraud on top of the m.f. global jamie diamond again stole money from customers on top of a top of the last four years of all the baggage they're getting bigger and getting more outrageous its moral hazard you could call it or just a crime wave well max here's a headline misselling derivatives barclays r.v.'s h.s.b.c. and lloyds banned from selling interest rate hedging products u.k.

lenders barclays r.b.s. h.s.b.c. and lloyds have agreed to stop selling interest rate hedge and products to small and medium enterprises after regulator financial services authority found them guilty of misselling derivatives products again notice the terminologies there they mis sold them it's not a crime just stop please please don't defraud small medium sized enterprises with these complex derivatives that they don't know what it is until it blows up in their face and destroys their enterprises right and the the sensitive for some economic growth to hide the crimes is not forthcoming because the ability for the global economy to absorb all the toxic debt that bob diamond and others floated to fund their lifestyles and master criminal minds has the proverbial wall and they simply can't grow their way out of it because the globe can only absorb so much debt and then it collapses in the u.k. they have one of the highest debt to g.d.p. ratios in the world they can't put on any more debt bob diamond is simply trying to

say that well i won't do it again i'll pay a small fine please don't you know look at my books i mean if you looked at barclays books closely you would find a whole litany of additional criminal behavior but who's going to do that the f.s.a. the stuff well they're totally compromised by. these banks do claim to be self regulated there's nobody actually going to do any forensic look into the books of these banks like barclays but again a theme on the keiser report over the past few years has been the fact that there's this absence of justice these crime waves happen because a certain select group of men are able to get away with blake in crimes now let's look at these compare rupert murdoch to the guy who hacked scarlet johansen's phone here's rupert murdoch rupert murdoch snobs britain says he will invest his billions in the u.s. he says he has moved on after abandoning b. sky b. bid amid phone hacking scandal again it's a scandal when it's a crime that big guy has committed rupert murdoch appears to have turned his back

on britain following his humiliation over the phone hacking scandal he says he's no longer going to invest in the u.k. now max this guy chris cheney who hacked the phone of scarlett johansson hacker oh scarlett johansson sixty six thousand dollars over nude photos feds say a man who hacked the e-mail accounts of celebrities should pay movie stars scarlett johansson sixty six thousand and compensation federal prosecutors said and should serve seventy one months in prison i don't get murdoch statement that he's been humiliated he's been not humiliated he's now splitting up his company into two again using a wall street tricks to boost his balance sheet because he himself can't grow a business if you took away his illegal activity his wiretapping his. words and his influence peddling. nothing left he's got state sanctioned monopolies wiretapping and influence peddling and he bought the wall street journal of the top you know he's the worst businessman of the century and he's been humiliated you know what

would be humiliating is if he was facing let's say the death penalty and on his way to the chair he relieved himself you know in his pants that would be humiliating and just end it doing it to a guy who has made a mockery of politicians all around the world in particular in the u.k. may tony blair look like a. it made david cameron and his folks look like idiots i mean he should really be humiliated not just forced to bilk some other country out of billions that's not a humiliation ok and finally max on this story i have to say that look at what the federal prosecutors in america are very certain that one act of hacking a phone require seventy one months in prison here is an organisation that routinely for decades hacked the phones of royalty of the prime minister of the chancellor took medical records they bribed policeman and they still don't know we were having this little inquiry that's going to determine nothing and that's it it's not

a scandal it's a criminal behavior again the press amidst a fact that it is criminal behavior and they use this word scandal no it's only criminal behavior max if it's not a big guy you know big guys are in the news exactly all right well if that my states ever thanks so much for being on the kaiser report thank you max don't go away much more coming why stay right there. sigrid laboratory kirby was able to build the world's most sophisticated robot which on fortunately doesn't give a darn about anything tunes mission to teach creation why it should care about humans. this is why you should care what you're only on the t.v. dot com. there hasn't been anything yet on t.v. . it is to get the maximum political hack.

the source material is what helps keep journalism. we want to present. something you. welcome back to the kaiser report i'm max keyser time now to go to new york and speak with connecticut based journalist and blogger terry ball the third most dangerous financial list journalist in the world you can find all of her work at her website terry bull dot com welcome back to the kaiser report max how you do it it's good to see you number one financial journalists in the world now terry bull you were the first to break the news that senior executives are being told j.p. morgan the loss of their chief investment office in london is closer to nine

billion dollars about two billion dollars you were the first to break this so tell us more you're right max so you know i got this phone call it was actually last weekend and there were a few j.p. morgan managing directors who were being told there are internal models and that the last could be as much as nine billion dollars that doesn't mean they're going to book at all in the second quarter but that was a really scary number and they started to call and ask me what else do you know about j.p. morgan you know what are their problems do we have how do you think this is going to affect our bonuses i couldn't believe the nine billion number it first and then i checked with a few more meaning ching directors and they kept saying yeah we're hearing the same thing and it's important i think to note that we don't know what they're going to book in the second quarter. it is obviously very evident though that they are planning for a very worst case disaster on this trade and what's more interesting is we have to question when did this nine billion estimate come about because it was likely

before jamie diamond stepped forward to congress and said you know we're going to make a profit this quarter in and i think we're going to be fine right and we understand that jamie diamond was try it was going to be. testifying under oath but it could get to do that now we know why now terry ball j.p. morgan shares have dropped six percent on your report jamie dimon argues that these losses don't matter what do you say i think jamie dimon is not being honest with the shareholders and knows this is a serious problem with jamie dimon has on this side though is these lovely little accounting tricks that they get right so let's say the numbers are huge let's say really is nine billion dollars when it come time to book the trade this is not a hedging trade max and that's what i think everyone needs to understand j.p. morgan actually disclosed that in their financial statements that they filed with

the f.c.c. this is a for profit trade so what that means is at the end of each month they get to book where the trade is that they know what the number is right now they don't have to tell shareholders though till the end of the quarter ok so you know this can be whatever the trade is in that moment that they're going to book well we don't know what the real losses until they unwind the trade they have to sell everything right and so on top of that think about this if say the numbers are really bad and they go and they have to book five billion dollars and the revenue is only three point five billion dollars which is what analysts are estimating right now for the second quarter j.p. morgan could go sell the furniture and all of their foreclosed home sorry to make up for that trading loss and it's really bad they could to sell their foreclosed homes it's all a game and i think i think the serious question is why aren't we telling shareholders the truth because this is about whiskey management not the number that they're going to lose but the fact that he drew a lot he dropped the ball because i was not on the ball and this is

a mess of fresh they took right will i know from working on wall street that one of the tricks you play is you point ten or twenty. and you don't provide the account numbers and then you get toward the end of the quarter and you manufacture an earnings number based on what what trades you close. and what made you leave open and j.p. morgan does this do all banks on wall street but this clearly is a train that went out of control and so the question gerry bull is is this the beginning of an enron type situation where the balance sheet gets completely out of control and the eventually the stock goes to zero. unfortunately j.p. morgan stock is never going to go to zero i do think that there is an enormous amount of room for them to wipe out earnings in the next three quarters at least for two reasons max number one we have our trade loss right on our prop trade out

of control number two which i've talked about on this show multiple times is the one hundred twenty billion in mortgage security put that suits that they are going to have to start to pay and they're going to have to reserve more in their litigation reserves there was a recent court decision they came down by a federal judge judge croce which actually ruled in favor of all the model lines those are the insures that said guess what if you can prove that j.p. morgan via bear stearns. didn't represent the mortgage backed securities ok you don't have to prove fraud if you can say their reps and warranties were a lot i were not right we're going to give you back all the mortgage bonds that you bought you get your money back that's a huge one and we don't even know if that's going to affect institutional investor yet there's so much on the plate for j.p. morgan there's something else max that i've learned about there was a hedge fund that they ran it was it was a mega billion dollar hedge fund called highland capital and highlands being sued by u.b.s. because they did some really allegedly illegal stuff and valuing their assets

during the financial crisis so they could get more money from u.b.s. and not blow up ok well there was a whistleblower that came forward they spent thirty six thousand pages to the f.c.c. detailing how j.p. morgan is back off this helped them cover up this fraud the f.c.c. . sitting on this information right now and as of this month u.b.s. was able to get a stanford court judge in stamford connecticut a state judge to rule that all those files have to be released they're going to turn to right now out of you know greenwich connecticut he's kind of famous attorney mark sherman is threatening to not turn them over for the for the whistleblower because he's worried that j.p. morgan's going to do something to the whistleblower and he's going to have to the court's going to order it and so you know it's one thing on top of another additionally max i just read a story today that there was a bribery charge the company did with j.p. morgan it was a data storage company and they paid him

a few hundred thousand dollars for a twelve million dollars contract but they just settled with the eastern district of new york with the d.o.j. and said yeah we paid j.p. morgan bribes for this deal and they have to pay like six million dollars for it i mean the fraud inside this bank is out of control and i think more and more you know the facts are coming forward ok you mentioned the mortgage put back so you mentioned the brewing scandals all of these require some additional. liquidity some money to pay off at the same time around the world because of the basil three accord being implemented banks are being asked to increase their collateral value to improve their balance sheets so that really jamie dimon and j.p. morgan are getting squeezed on both fronts all of their past crimes are catching up to them with margin calls at the same time the international banks are being asked to increase their collateral how can they survive this pincer movement here max i think it's something to pay attention to i think it's

a scary number and i think there's there's some media outlets like c. and b. c. who don't pay attention to the reality of what's really happening here instead yesterday we saw them just working a p.r. angle for j.p. morgan saying oh everything's going to be fine the second quarter losses are going to be like four to six billion but what they didn't mention is. exactly what you just said as the last keep growing and more problems come up where are they going to get this magical collateral the same that's they have to increase their tear one capital right that's less money to lend to people to to lend to main street right and that means that these are serious issues for them right and less lending means less fees less revenue less profit and if the subsidies from the u.s. government are shut down as we know seventy seven percent of last quarter's earnings were direct result of u.s. government subsidies this company is going to be left for dead now what about in london you've got bruno excel two questions is he still with the firm and the second question is doesn't london is the epicenter of global banking fraud make

a mockery of regulations like the franc dodd bill in the u.s. ok max i don't know if the trader is still at the farm i imagine if he's there he i think that he left i think there was a news report although personally i would have kept him at the firm to pay him a dollar make them unwind the damn trade. i think it's far as dodd frank goes right now what we've seen in francine mckenna who writes for american banker he's been on this show she can tin you know he writes to remind people that right now people just go to london people go to london to avoid dodd frank and they're doing it more and more which is exactly what we just saw in j.p. morgan so it's really going to have to be a global regulators who get together a rarity right and decide ok you know let's police these banks together yes well mervyn king who runs the bank of england in the u.k. is then making a statement to the effect that we really need to rein in these out of control banks

like barclays bank in the u.k. for example that's been caught up in the live war bid rigging and interest rate rigging scandal do you think that there will be any kind of substantive response from regulators or is it going to be the same status quo meaning that regulators we. no are in the pockets of the banks and they'll be no penalties or any deterrents whatsoever it's terrible right ok well you know ian fraser he's a u.k. journalist crisis consistently he calls the f.s.a. a joke and so do most european traders that i talk to so i'm not counting on the f.s.a. doing anything the british government maybe they could create a new agency i don't know right now i think london's a free for all they're desperate for money themselves they don't let bankers do whatever the hell they want as far as the us you know i think doug brain is trying to get a little bit stricter i think that the u.s. government and the congress in the senate is actually trying to do something but

max there if you can figure out how to commit fraud wall street's always been able to do it for over one hundred years ok so i want to just return in the time we have left terry ball to just give us a little bit more on the model line lawsuits you know this is another one of yours your stories that you broke but you've been on top of it from the beginning just give us a just a we have about a minute or so just a little background a little update on that because i think this is going to be really an explosive situation going forward ok thanks max right now we have a sink or a lawsuit in court was a model line he's going to move forward to trial the earliest but that's not till the beginning of next year on the plate right now with that decision i just talked about where judge said it's going to be much easier to sue j.p. morgan because you don't have to prove every single loan they defaulted you can just prove the bear stearns allied which i believe they did in their mortgage security contracts and as a result of that lie j.p. morgan is going to have to pay you back billions and billions and billions of

dollars for those lies ok so the question will be who else is going to sue if they've already listed that there's one hundred twenty billion of lawsuits i mean there could be more actually if you could have anyone who ever bought a mortgage backed securities from bear stearns file a lawsuit and let me tell you. yes the lawyers at patterson bell knob who have done all the work for them are lines of discovery in private eyes in research in getting over thirty whistleblowers to come over they are getting phone calls up the ying yang asking how can we see to bear stearns and j.p. morgan also this is a really real number i don't know when it's going to hit but it's going to hit and it could be quarters of revenue wiped out all right well certainly bull have to have you back on to talk about it right it's on thanks so much for being on the kaiser report by max and congratulations on your engagement yes thank you so much and that's going to do it for this edition of the kaiser report with me max kaiser and my fiance stacy overt or thank my guest terry bull is going to send me an

e-mail please do so to report at r t t v are you and so next time next guys are saying bye go.