you tomorrow. 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 are 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 or nine billion dollars 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 diamond but he's going to topple saddam hussein topple moammar gadhafi toppled 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 chilled. doesn't know what's going on jamie knows blythe masters knows gary gensler head of the sea if you see no spark 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 futures contracts i knew about it because i knew about cancer and 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.t. sea life master as head of commodities trading ad 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 chilton 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 sober manipulation 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 collateralized non-sensical paper pulled out of ben bernanke spanked or to support

the. system of banking which is worth exactly zippo the inverse of that is so over and gold which would put the koba on these terrorists as i call them in a it's an apt term the all laws would be applied toward terrorists should apply toward bernanke and jamie dimon but you have the situation stacey of the silver vigilantes are out there we will try and that's why i've 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. the boats use lights ship to ship thinking the ending the lights flashing they communicate ship to ship this is jamie dimon using saxo as some a for signaling to his buddies that manipulate markets its course is fraudulent of course they have evidence of it of course they have insider 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 bart chilton get the payola jamie diamond get the piola black 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 social market these two go together like peanut butter and jelly they are in separable you can't have library manipulation without silver manipulation o'barr you corrupt numbskull in the pocket of the people are supposed to regulate and it's right down black and white well upon this being introduced to the front page of the financial times i did contact ned naylor leeland 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 with fake trades not spoof trey's 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 leven 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 and in move

forward on j.p. morgan campaign which then went into the wash trades and all the other stuff but this quote stuffing or trading first play variations on the same thing. high frequency trading they are abusing the architecture if you will 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 silver 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 belge if you take away the fraud again stock goes away 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 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 former broker merrill lynch a subsidiary of bank of america one after another over a period of a year the arbitrators 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 while i worked on wall street i told you when you sign a new account that you binding arbitration with the panel of brokers and and the bankers you'll never get 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 the 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. that you

see this austerity and this financial collapse that the bankers themselves caused 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 spines 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 s.e.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 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 revolt is coming the guys on t.v. with the long blond hair like bar killed. the man for your book. i say sir thank so much being on the cars report thank you max don't go away much more coming your way.

one. hundred on the phone with your. forty acres and nineteen ninety three and decided it would be a great place to find the belle the home and retire. there she is. we call it our new neighbor neighbor seven. we have

seventy acres here and i can convince them that they need to drill somewhere besides two hundred feet from our house. meeting the needs of a growing economy also means expanding our domestic production of oil and natural gas which are vital fuel for transportation electricity and manufacturing this is for problems with the full weight of the rifle and then. you know our flaws are not toxic and we did a lot of it there's a lot of mis understanding of what that is actually in the fluids. time that said you can load here in the lab you come out here and live in my house for a week. i have no rights. to the. sun it's technology innovations all the news developments around russia

we've got the future covered. welcome back to the kaiser report on max keiser time now to go to spain to talk with paul moore he's the former head of regulatory risk it 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 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 there so first tell us about your role of the 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 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 to 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 auditor 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 our 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 one hundred million people back into poverty around the world the mortality statistics and morbidity statistic that means the number of extra people who die in the number of extra people who are ill rises dramatically when you're 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. it 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've protected themselves from a proper detail forensic investigation and they've protected themselves from any

proper reform so it's just wrong and i imagine that this crisis of one hundred million people or more into poverty of that group a certain percentage world die at this point very clear that since world war two if we had this type of. purposeful. our sharing into poverty by a corp carpark or c clipped 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 especially 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 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 say in england. all right now parmar you say when radical reform but it's interesting if you took away fraud what would you have left with 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 plea to ordinary people things that they don't want don't understand and don't need you can count 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 interest a dominant position in math. it's equal 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 he 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 chips 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 m.f. global that unlike the united states the thought of being able to hypothecate a real hypothecate one hundred forty percent of a security for a longing lending requirement you can read 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 any source 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 could miss sell anything from a bank and monetize your illegality and more outlets 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 attentive 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 the report of enjoyed it a story again excellent all right that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert and i thank my guests paul more 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 via. i did full started here before going to logan and now police fire.

choose your place. take your stand. to. make your statement. split the water. keep my street money. stop current. unemployment the national debt. ceiling government. ask yourself does it really matter who wins. billions created you can gamble with your money or turn it into a solid.