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though financial scandals but the kaiser report. hi welcome to the kaiser report on here with max kaiser a man so dangerous the financial times dare not speak his name us set to drop four year probe into silver price and max they mention you here not by name one campaign exhorted sympathetic readers to crash j.p. morgan by buying silver based on the assumption which the wall street bank has repeatedly denied that it has a large bet on low or silver prices they're christian if you're going by so over a front page of financial times of course the company j.p. morgan had to disclose a two billion dollars loss of the london whale which became what five and i believe our laws that's a direct result of having to cover their show over so over naked shorts so we're

pressuring them we're going to go the way of enron the company has no balance sheet whatsoever it's and you know this is the unstoppable force of the silver liberation army meets the unmovable object which is jamie dimon but he's going to topple saddam hussein topple moammar gadhafi topple jamie diamond regime change he's going to topple they'll go the same way as moammar now this financial times headline u.s. set to drop for your probe into silver price insufficient evidence they say has been found for a legal case since this made the front page of our children has come out and said going that this is not true he is not dropping the investigation he is continuing with the investigation in fact he believes that there are signs of silver and gold market manipulation pretty far children doesn't know what's going on jamie knows by masters gary gensler head of the c.f.c. senos bar chilton doesn't know what's going on just same through the box office

futures contracts he was lobbied by the m.p.a. to outlaw box office future. contract's i knew about it because i knew about cantor entertainment a spin off of cantor fitzgerald i've got more better sources than bart shelton who's a long haired blonde bimbo who goes on t.v. pretending as though see if you see as a regulator of some sort in the guise of complete you know waste of time this is why this show like kaiser report is so dangerous because you prompted this headline you forced j.p. morgan right after they mention you not by name they immediately after say in an interview in april with c.m. b.c. blith masters head of commodities trading at j.p. morgan denied any of the silver manipulation story so of course they go on to you know bimbo t.v. like c m b c where you know the male audience is going to be distracted by the boobies on display and not know the truth as they are going to find here you know the exact this so manipulation of the story which is cut in granite the

proof is is there for children to see if bart chilton was not one of these captured regulators over there to see if t.c. along with gary gensler we now know that these guys are lockstep marching to the tune set by the banking industry that they're supposed to oversee but this so over manipulation of fact is the inverse of the live bore interest rate manipulation library interest rate manipulation its chief purpose is to support the us dollar by allowing for trillions of dollars worth of on collateral as nonsensical paper pulled out of ben bernanke spanked or to support the balance sheet system of banking which is worth exactly zippo the inverse of that is so over and gold which would put the co boss on these terrorists as i call

them in a it's an apt term the. we all laws that would be applied toward terrorists should apply toward. jamie diamon but you have the situation stacey of the summer vigilantes are out there we will try and that's why i have got my silver here now you mention the word vigilante and of course because the regulators the department of justice those who are supposed to enforce the law will never find evidence they they didn't find evidence when lloyd blankfein sat in front of congress sat in front of senator levin and they openly admitted that they sold. paper to their clients that evidence was then taken by carl levin handed to the department of justice and they said here is a criminal case we're handing to you the department of justice decided not to proceed so even when there's a cold hard evidence in the hands of the department of justice they won't investigate with this silver story the silver manipulation that it was

a genuine smoke signal manipulating the price because i want to remind people where this story goes back to and we've covered this last year a year ago in episode one eighty eight we covered this story the saxo signal so j.p. morgan orchestrated monthly options expiration smash downs with the express intent of blowing up the delta risk of holders of short far out of the money options suddenly forcing them to cover their positions thus handing j.p. morgan silver futures positions at prices far below market prices only minutes prior the suit also alleges that j.p. morgan made over twenty five massive fake trades using saxo bank during sparse global evening hours prior to major silver reads for the express purpose of telegraphing impending silver smash to their buddies there's a sucker for a fraud you know some four of the boats use lights ship to ship thinking then when the lights flashing they communicate ship to ship this is jamie dimon using saxo as summer for signaling to his buddies that manipulate markets it's course of course

they have evidence of it of course they've been. trading of course they have people willing to step up and talk about it on the record to put these people in jail and of course they get the payola whether it's get the payola jamie diamond get the piola buy masters get the payola doesn't matter they're destroying the integrity these markets of course over is the inverse of the dollar library scandal of course we know it's on the record they manipulated the same time they would not have been successful without concurrently manipulating the sober market these two go together like peanut butter and jelly they are in separable you can't have lived or manipulation without solar manipulation o'barr you corrupt numbskull in the pocket of the people are supposed to regulate and it's right there in black and white well upon this being introduced to the front page of the financial times i did contact ned naylor leland who we've spoken to and who has been on top of this story now he says that this in the lawsuit the civil lawsuits against j.p. morgan they're positing that it was on saxo bank platform which fake trades not

spoof trade spoof trades are what high frequency trading to which they'll they'll create a fake price by actually. trading for a man no second to hold something for a nanosecond here with these fake trades j.p. morgan was putting out between five forty five pm and six pm this quiet time they were putting out fake trades i.e. as ned naylor lieven told me a fake trade was oh my god sorry i pressed sell at twenty one fifty when i meant twenty four fifty so it gets pulled before being filled but still displays on sac so platform showing other traders where the level is for the day so it's just on this private platform which doesn't get sent to the rest of the community and only these people who are insiders on this platform were able to front run in for it on j.p. morgan campaign which then went into the wash trades and all the other stuff might this quote stuffing or trading. play variations on the same thing. high

frequency trading they are views ng the architecture if you well of the system with massive fraud and all the too big to fail banks are involved banks involved j.p. morgan the reason they do it is to protect their massive silver short position that they inherited from bear stearns as part of that corrupt deal that was done during the two thousand and eight collapse the super vigilantes like eric sprott and others are buying physical silver in the market to destroy j.p. morgan's ability to continue this game much longer and once the price of silver overcomes or ability to manipulate it j.p. morgan crashes balance sheet is technically worth zero and that stocks going to go the way of enron fraud flow f f fraud flow is the collateral backing j.p. morgan's balance sheet if you take away the fraud again stock goes the way of enron same thing with goldman sachs same thing with warren buffett's pet bank walkover which is that heavy into fraudulent sub prime lending again again where is warren

speaking out on this oh he's there and see in b.c. you know having a five thousand dollars number and here's another story we've been way. ahead of wall street's kangaroo court gets a black eye this is based on bloomberg investigation into finra the financial industry regulatory authority wall street's self policing organization seemingly out of nowhere fired three arbitrators in the months after may two thousand and eleven case in which finra awarded five hundred twenty thousand dollars to the estate of the late robert post tell the finding was again supposed tells former broker merrill lynch a subsidiary of bank of america one after another over a period of a year the arbitrator's eileen gormley daniel kolber and fred pinckney received what are known as black spot letters from finra removing them from the roster of those empowered to advocate the thousands of lawsuits brought each year by wall street employees and customers against financial firms finra claims it has nothing

to do with merrills complaint that it fired these people and is now we hired them just like bart chilton in the first story is denying that ever happened so thousands of lawsuits are brought by customers of these brokerages and two thousand and ten the total awards was only forty three million dollars well i worked on wall street i told you when you sign a new account but you did binding arbitration with the panel of brokers and and the bankers you know never got to go to a jury and they encourage you to break the law they say look break all the laws you want we've got lawyers we don't pay yet and we're insured we're already insured against all of payouts so there's no law they're totally hedge against law finally on this and this absence of any sort of justice in the financial sector. you see this austerity and this financial collapse at the bankers themselves cause being used in the u.k. as a reason to cut the budget of the serious fraud office has been cut by over forty percent

here in the u.s. here we've established a kangaroo court of finra. this is from june two thousand and eleven because you always have to go back to look for these little headlines that really show you the way what their intention is in this conspiracy finra finds don't match the crimes critics say the financial industry regulatory authority deputized by the government to oversee brokers is lobbying to replace the u.s. securities and exchange commission as a regulator of registered investment advisors who manage about forty trillion dollars congress is considering the move as a cheaper alternative to increasing resources for the f.c.c. since eight hundred seventy seven million dollar budget is paid by the brokers it regulates and. the article puts in to you know compares forty three million dollars in two thousand and ten in fines by finra the s.e.c.

one billion and five so you see what that cover of austerity is causing even further of a spiral of deflationary collapse literally they're playing with fire the present revolver this coming from the guys on t.v. with the long blond hair like bark killed. someone for your book or. it's a server thank so much being on the cars report thank you max don't go away much more coming your way. you know 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 realized everything you thought you knew you don't know i'm tom harpur welcome to the big picture.

which brightened if you move from phones to pressure. groups don't talk t.v. don't come. welcome back to the kaiser report imax kaiser time not to go to spain to talk with paul moore he's the former head of regulatory risk of halifax bank of scotland otherwise known as h. boss before i became a whistleblower paul is put himself forward to serve as interim chairman of barclays bank while they go through the period of rough as are paul welcome to the kaiser report. thanks it's difficult to think about banking when you're on

a sunny beach in spain. well let us get into it or try to get price some interesting information from me so first tell us about your role as a whistleblower at eight boss what did the bank and what did regulators do upon receiving your information but i did very simple story i. told the board that they should reconsider their strategy for a sales group both if they wish to avoid risks to customers and colleagues and the chief executive fired me i asked for protection from the non-executives and the regulator and i demanded an independent investigation well nobody protected me nobody listened ok so your former job was group regulatory risk is at best i mean your job was to make sure that the bank was not exposed to any regulatory oversight absolutely not i mean i think that's part of the problem the idea that people who

lead internal control function should seek to rule the regulatory requirements drugs and coach and horses through the whole idea in the u.k. we have what's called an approved persons regime which meant that i had a direct contact between myself and the regulators it's not my job to do that my job is to make sure the bank is following the requirements within a reasonable amount of gene and it's it's a bit like a restore an engineer in a formula one team it's my job to help the car go around the track rapidly but not so fast that it blows the engine up all crashes into the towels right but your role is is that single point of failure between the banks and the regulatory obligations you're the interface between those two things you are unhappy with what you are seeing you became a whistleblower but essentially my my question is there is a role at the bank where they have one foot at the bank one foot really serving the regulatory interests and this this layer. is is corrupt in

a big way isn't what it just doesn't work imagine if i'm reporting to the executive and they disagree with me and they have the the power over my life or death. it's not going to work so i've made very simple recommendations which is control functions that's risk compliance internal audit should never report to the executive should always reports of the non-executive and that there should be a new policy around whistleblowing for those types of people that means they can be fired without a proper meeting of the non-executives and that that removal must be approved by the regulator otherwise the system fails as you said right now paul what percentage of those working in regulatory oversight in compliance in the industry are clean that is the say they're not corrupt when i was working on wall street for example at paine webber and oppenheimer and harrison every every year christmas time i would bribe our compliance officer as did every broker at these firms there was no

that compline up there was crooked you give a big enough christmas bonus any over and over looks margin requirement deficiencies the overlook fraud he overlooks. all the tricks of the trade so what percentage of these guys that you are in that business who are clean they're actually doing the business in a clean way there's two points the first is you have to have no professional qualifications to be a chief risk officer a chief compliance officer or a chief internal audit and so that's one thing the second thing is if you report to the executive what hang on a second you stick your head above the parapet and the messenger gets well and truly shot so i don't know the outs of the question but i would be at all surprised if it's quite a lot of people who are going to be prepared to oversee or miss things that they should cover so all system doesn't work well i mean i guess from my experience i never met in my many years on wall street a compliance officer that wasn't dirty. now sense you blew the whistle paul the

entire banking system has gone into meltdown caused by the frier that you warned about of this financial crisis you said quote the banking crisis isn't just about becoming poorer it's about killing people we never held anyone to account we haven't done the radical reforming job we needed to do going to talk a little bit about the poor more but one everybody says and thinks the banking crisis is just about money well money affects people's lowers the united nations have estimated that the banking crisis drove a hundred million people back into poverty around the world the mortality statistics and morbidity statistic that means the number of extra people who don't are in the number of extra people who are ill rises dramatically when your in poverty and so i don't know the exact number but i wouldn't i would be very surprised if the banking crisis didn't kill more people than any single conflicts since the second world war so that's the first. point. what was the second point

you when you were asking about. oh well we hear you are talking about the banking crisis in fact. part and parcel killing people. we never held anyone to account and we haven't done the radical reforming we need to do well i think the inside job that fantastic film demonstrates at the point who's in charge of the democracies the big democracies where financial services go on in the world well it's certainly weapons oil financial services pharma cuticles etc it's not a democracy it's a corporatocracy so it's an inside job we've got a situation in which we cannot get to the bottom of things because those with the vested interests in maintaining the status quo and avoiding their own accountability are in charge of everything they've got the money they fund the political parties i know it's written into the us constitution private funding of

political parties but frankly i think it's creates a level of corruption that is very serious for the world it's really just wrong the vested interest and protected themselves from being held to account they protected themselves from a proper detail forensic investigation and they protected themselves from any proper reform so it's just wrong and i imagine that this crisis has put a hundred million people or more into poverty of that group a certain percentage world die at this point very clear and that's a world war two if we had this type of. purposeful. our sharing into poverty by a corp carpark or c unclipped ocracy attack a stock or see if you well my point has been and i want your thoughts on it because i lot of people know us mainstream media portray this as a victimless crime i have stated that it is creating millions of victims and if you

muse the world war two comparison poem or is it wrong to say that this is essential to a fine now. whole cost i think that's i love the words you use yes that that's a brilliant way of putting it and i subscribe to that view just even if you haven't done right even if you haven't become very sick because you've been driven into poverty your life is because as been made miserable by the austerity thrown upon you by bailing out the banks and making the rest of us pay for it you're right it's a corporate call for a talk crissy not a democracy and we've got to do something about it we're only going to do something about it if we build a mass movement of people do some martin luther king like nonviolent resistance actions. where in a right oh muddle what we're saying. all right now parmar you say when in radical reform but it's interesting if you took away fraud what would you have left what

the u.k. banking system as we know it disappear it's like a rusted out car it has the shape of a car but it's mostly rust the u.k. banking system has the shape of a functioning banking system but it's mostly fraud if you took the fraud away would there be anything left well there but what there should be. look it's not just investment banks that have manipulated markets through proprietary trading it's retail banks that have time after time after time mis sold systemic lee to ordinary people things that they don't want don't understand and don't need you can can't dozens of times that they've done this so what is a bank well it's supposed to be boring isn't it it's not supposed to be kind of highly complicated by the way proprietary trading is tax amounts of the manipulation of markets through a dominant position in information generally derived from conflicts of interests

a dominant position in math. it will science and the dominant position in computer science and look just last week we saw that company use mathematics in communes computer science went wrong it cost them a fortune i can remember their name now knight capital yet well when you talk about proprietary trading as having a dominant position isn't that the same as saying that they have inside information yes it is and you can liken this proprietary trading which by the way isn't banking business think about it for a minute what's it got to do with banking i don't mind somebody investing in a hedge fund and taking risks with their own capital so long as that hedge fund follows the rules but what is proprietary trading got to do with banking it's not got anything to do with banking it's it's gambling it's taking positions now why can they make so much money out of it because they've got more information than

anybody else where they get it from generally from the inside in one way or the other but they also use highly sophisticated mathematical models and highly sophisticated computer systems to do things which means the rest of us cannot invest in the market properly now they say oh well hang on a second it gives us liquidity well hang on a second we've got too much liquidity and if you just think of shares and other financial instruments says ships in a casino well frankly it doesn't do any good for anybody so the it's essentially gambling in a rigged market which they rigged go and ask any day trader read the big short it explains exactly what happens it's wrong. the bulk of the global financial scandal whether it's a i g m.f. global lehman brothers the whale trade from j.p. morgan the list goes on all goes through london london apparently has the worst regulatory environment in the world of course blith masters of j.p.

morgan the wicked witch of derivatives also is based in london. learned in london itself and also we learned from them of global that unlike the united states the thought of being able to hypothecate a re hypothecate one hundred forty percent of a security for a longing lending requirement you can re hypothecate to infinity in london you could resell the same thing over and over and over again what about the regulatory environment in london what is the cesspool in london going to shut down actually if you look at the regulatory rules and the system it's not bad at all it's not that they didn't have the power it's that they didn't enforce the rules and we haven't invested in their white collar crime properly you can steal a water bottle in a riot and get put in prison by for thirty days and david cameron can you know rant on about how bad they were and yet you can miss sell anything from a bank and monetize your illegality and more reality we don't

do enforcement properly that's the problem we don't enforce people i've made this abundantly clear we need to separate out the policy and rule setting and set day to day supervision from investigation into forstmann and we need to have a completely open and transparent tribunals so these things these wrongdoings although they're called regulatory attend to criminal offenses and they should be held it public so the people like you can watch what they're doing and make sure that people are held to account and that doesn't happen all right parmar love to continue but rather time i have to say goodbye thanks so much for being on the cars a report i've enjoyed it a story again excellent all right that's going to do it for this edition because the report with me max kaiser and stacy herbert and i thank my guests paul moore going to send me an email please do so i kaiser reported our to t.v. dot are you into lifetime x.-prize are saying by a.