you tube video which had one point four million views and for this they gave him six million dollars over the years beginning in august two thousand and three mile when he sought and obtained for loans from comarca totaling about six point two million dollars according to court documents he provided statements that claimed he had nearly eight million in assets but it turned out his account had only about ten thousand dollars right well i don't this is interesting because the bank has they're claiming they have no responsibility whatsoever in making these loans and i think this is an interesting story because it really gets to the nettle of why this global economy is blowing up because banks just make loans without any due diligence whatsoever and if there's a problem then they get the government to bail them out so that the banks actually nobody works at the bank they have robots that look at the numbers and the paperwork and then they just issue loans no human looks at this at the paperwork

the people run the bank the c.e.o.'s just collect the fees and if there's a problem they threaten the government either bail us out or will crash the economy . and note that this started in august two thousand and eight the crisis was already well underway you would have thought that you know these banks would have been bend a little bit more responsible and this is even a regional bank that they said are even more responsible than this too big to fail banks well having a year to that is being viewed by a million times this is no more or less collateral than let's say goldman sachs or j.p. morgan when they go to the market to sell some of their own bonds short term bonds to refinance their banks i say what's the collateral that you're putting up well look at our balance sheet ok we will know you have a negative equity of five hundred to six hundred billion dollars ok yeah and that's why we want to sell some more bonds of the marketplace putting up as collateral negative equity to sustain to finance this loan so this gentleman rob university is

no less no more solvent or insolvent then the four big banks in the u.k. or the big banks in the u.s. or any big bank and he used the money to buy a tour bus for seven hundred fifty thousand dollars he lived in a luxury apartment in downtown l.a. and he also spent it all on vacationing in the caribbean europe and africa but he did go by the name rob university as somebody on this article points out is that means rob you so he went in there and said i'm robbing you and i thought that you know this is at least two thousand advertising he wasn't really hiding the fact that he was robbing you and i thought you know if we started naming credit default swaps should say rob you. collateralized debt obligations rob you must truck should investment vehicle rob you yeah he should emulate his heroes the banking fraudsters of our of our era but i thought i guess you thought it would be to help him get

a loan if he admitted upfront that he was committing fraud if you go to the bank right now and you say i'm a fraudster i'm a criminal i'm a rocketeer the bank will give make you a loan because i know that that's what you value in this economy now really the most important bit about the story is the comments from the average person out there in america and it shows you the problem with corruption it shows you the problem with not enforcing the law here are some of them are reading you a few james says stupid banks serves them right to get taken after they have swindled the public out of billions starr says comerica did not do a good background check on him whose fault is it that they lent him so much money politically correctional says what idiot would loan money to an unknown musician and chris says up to thirty years in prison for making a false statement on a loan application are you kidding me convicted murderers get less time this country is insane but remember liar loans that were the basis of the subprime

market the banks created a form for people to submit that they were forced to lie they were called liar loans when they had no income no assets the bank still made loans to them but they got bailed out as part of a structured ponzi scheme. well you are right there because here this guy is facing thirty years in prison and remember barack obama provided a blanket immunity to the banks for basically exactly this process of those liar loans encouraging people to liar loans all the robo signing which is fraud ok they were they were fake signatures on all these documents yeah well i am a big fan of alec shaffer's work in los angeles he has these paintings of banks being burned down i believe that the policy should be scorched earth and if the government won't burn down these institutions then the people need to burn them down scorched earth get rid of the cancer obliterate them move now so

the next headline is the response to this sort of emerging popular discontent senators question us penalties against wall street banks as too lenient a bipartisan pair of lawmakers on tuesday questioned the justice department's prosecutions a large financial institutions raising concerns that recent settlements have fallen short of holding wall street accountable for wrongdoing these are senators sherrod brown democrat from ohio and charles grassley republican from iowa and they sent a letter to the u.s. attorney general eric holder regarding the relatively small settlements to like h.s.b.c. for major crimes of money laundering for terrorists and for drug cartels and asking why they're only giving them small fines they said quote the nature of these settlements has fostered concerns that too big to fail wall street banks and joy favored status in statute and enforcement policy the senators wrote in the letter this perception undermines the public's confidence in our institutions and the

principle that the law is applied equally in all cases you know the law is not applied equally it's a double standard and i think america's got to decide whether they embrace acts of terrorism as a necessary economic stimulus you know america is looking for economic stimulus. terrorism using the broken window keynesian theory is a is a stimulus the banks like h.s.b.c. have been are willing to underwrite terrorism they've been caught underwriting terrorism that's an economic stimulus so the american congress need to go on t.v. and say we embrace terrorism don't be selective about it and say we want to certain terrorism but we don't like these terrorists that that's the recipe for economic malaise embrace your inner terrorist chuck senator wellesley what is that grassley grassley embrace terrorism your terrorism you want to see it happen right in your neighborhood you want to be terrorized because that's an economic stimulus emplaced it embrace your anger charisse you duplicitous. now here in the u.k.

of course it's not no different f.s.a. it's easier to take on the little guy f.s.a. financial services authority head of enforcement tracy mcdermott has admitted it is easier to go after the little guy rather than take on the big banks said there are three ossicles to taking on senior bankers including the fact that many decisions are made by a committee so finding responsibility can be difficult complex structures mean it is difficult to find out who is in charge and f.s.a. rules mean there's a high evidence threshold to punish individuals now max you've said for many years now we should use rico the rackets anti racketeering legislation passed in america that giuliani used against to take down the whole mafia in new york for the same reason that you never get the top guy the jamie dimon lloyd blankfein saying commit the fraud so you've got to infiltrate the organization why don't you send one of

these you know banks for loving d.o.j. guys to pose as a bank so they already look like one go in there and pretend to be a banker and get them all committing the crimes well they're all invested in fraud but this reminds me of the frank quattrone defense if you remember at credit suisse he was caught doing laddering in the i.p.o. market committing fraud and the jury said well you're crimes are too complicated so we're going to let you get a walk so the lesson is if you're going to be a criminal make sure your crimes are too complicated for the average drug addled moron jury in america to understand if you just omit don't it you know you'll get free and say it's too complicated the crimes that they're going to look at if you can't understand it have another have another sedative and now finally along this you know why it's important to prosecute these guys how apples fall hit bondholders to imagine your broker says you just bought apple stock for more than seven hundred dollars a share even though this week's collapse drove the price below four hundred forty dollars now imagine being told you got this bum deal through the back door by purchasing debt issued by an entirely different company probably your brokers.

securities firm for many investors max wall street journal says this isn't a bizarre fantasy like the rest of the economy it's reality they've been sold a complex investment equity linked structured products tied to the price of apple shares investors who had fat yield and seemingly safe short term debt soon will find out that they have been handed huge losses while the firms that sold them have profited the firms are j.p. morgan chase morgan stanley u.b.s. and barclays. i've sold many of these myself basically it to hedge of owning all is packaged with. a fantasy security praying five or six or eight percent and then you sell that to some idiot pension fund manager on the basis of a yield and then it quickly goes to zero and then of course they're fired but the investor gets nothing back this is a real repeat of a scam that i've seen hundreds of times of so many myself which is bread and butter business for wall street. well

a lot of americans are think they're bondholders and in fact their shareholders now apple shares at a twenty five percent loss that they didn't know about but they got good yield eight to ten percent in this case for a couple of weeks and then they got zero zero and of course they can't sue anybody because the arbitration panels are stacked by brokers. ok states ever thank so much being on the counter thank us go away stay right there i'll be speaking with former scotland yard fraud squad detective rowan boss with davies right after this. 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 that everything you thought you knew you don't know i'm tom harpur welcome to the big picture.

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welcome back to the kaiser report i'm max kaiser time now to turn to rowan bonds worth davies a former fraud squad detective with scotland yard. welcome back to the kaiser report. first quick question ok you are

a fraud squad detective covered in white collar crime in the city has the overall level of fraud in the past few years stayed about the same or is it gone up and it's creates it's going up to increased right and it seems to me that in fact. things have kind of flip flopped and that instead of really going after fraud there seems to be a tacit approval by the government enough by saying effectively that fraud is the business model that without fraud the city would collapse without the fraud our g.d.p. would even be worse than it is your thoughts well i mean obviously they're going to put it like that and that's why they i think tacitly they realize it and recognize it because there is just so much criminal money coming into london at the moment that the government really doesn't want to do anything to stop it coming in because they want to keep that free flow of money coming in but of course it possesses it

carries a great deal of baggage with it and so what tends to happen like for example in the p.p.i. for awards what they do instead of telling the rest for a second ok p.p.i. this is the selling to customers in brazil large particularly large banks of personal insurance policies that are designed so such a so-called protect them in the event that they become unable to work in order to protect the payments on a loan but they may have taken from a bank so it's designed if it's the the idea is that it's designed to protect the customer and thereby protect the bank the problem was the policies they were selling didn't protect the customers and so they never tell the customers this they made a huge amount of money out of it and it was institutionalized fraud by any description but once once the scandal broke and the government realized what an enormous level of fraud had been committed they suddenly realized they couldn't admit to the rest of the world actually we've been committing this billions and billions of pounds

worth of fraud upon our customers so instead of doing that they gave it another name they called it miss sally because they call it misselling that sounds ok because that sounds like oh dear the guy just made a mistake and he's not to be blamed on ok it's a sad. i will recompense the customer and everybody thinks that's all right actually the problem is what ordinary man and woman in the street doesn't realize is that by calling it misselling they are completely dumbing down the whole context if you told the man and woman in the street every single high street bank isn't it defrauding you every time you go in and they try to sell you this rubbish it would send them a completely different message so it's a way of covering up the level of fruit it's actually taking place by renaming it's very clever it's deliberate it's a policy it's also a bit of a fraud ponzi scheme and what i mean by that is that the the retail fraud with the misselling scandal feeds a certain cash flow to

a bank and then the bank of course is engaged with selling us a credit default swaps to larger size corporations and companies for protection against interest rate moves we've found out now that's completely riddled with fraud and then you have that level of fraud which is feeding into the relationship between the banks and the bank of england and they're engaging quantitative easing which is yet another layer of fraud you could say because they are simply printing money out of thin air this completely on collateralized and they're hoping that this money somehow stimulates growth but in fact is just to me letting more fraud but let me go to some tidbits in the news there tracy mcdermott head of the enforcement of the f.s.a. says it's easier to take on the little guy than go after the big banks so she's saying the financial securities authority that well we would go after the big fraudsters but that's too much work so we try to go after the little guys i guess just for show and because they're lazy your thoughts well obviously the f.s.a.

have got to they've you know like everybody else they've measured they measured by objectives they're measured by results so they've got to go to try and show that they're doing something and it just becomes easier to go off to the smaller institutions where the you know the chain of evidence is. much shorter but it does to go up against the big institutions but the problem with the with suze is i don't think i'm not blaming this mcdermott's i mean but the fact is she and her team just own sufficiently qualified to be able to understand how you go up against a major mainstream organization ok it was behaving like brits behaving like organized criminals if you are behaving like who are going to criminals in this thing you have to bring in men and women who actually know how to do with dangerous organized criminals and tracy would seem we don't have those skills right well a couple of points first of all the fact that she's really not qualified to do this

job but yes a at a say is not by accident we find whether it's in the u.k. or the u.s. the regulatory bodies are purposely downsized or the funding is pulled from them because the banks who are really overseeing these regulatory agencies don't want robust regulators looking at them so that this is not it's not an x. and number two you know she's basically a civil servant who at the end of the day is not really interested in. an unbiased look at what's going on but you mentioned something about a criminal organization or at what point does does the fraud office simply say you know this is in fact a racket and has to be approached under what in the u.s. they call anti racketeering laws or rico laws it is your experience as a serious fraud office this is in fact a racket correct because you've got now the i see the four big accounting agencies

are giving testimony today we know that they're implicated in the racket we know that they when i've worked with them myself the same names that are being on the being giving testimony today they came to me with a way to cookbooks and five or six different ways and i was running a car company in california that's their debts what they do their fraud they can't b.m.g. ernst and young and yet the other two majors they they're part of the racket they peddle fraud. but they say here's their defense that technically that they're not breaking the law. now there's a bit of history there right big talk about that well yeah i mean they would say that when they have as many rights davis said the point is that when you when you when you move into a level of institutionalized business such as exists in the upper echelons of the city of london all the big institutions the banks the law firms the big accounting firms the recruitment consultants in this together you know david cameron got it

right we're all in this together and they they sure are and so consequently everybody has an in an incentive to keep the ball rolling nobody has an incentive to blow the whistle on on any wrongdoing and consequently because they because they they have an immense conflict of interests wherever you turn in these things they're conflicted but it's much easier for them just to ignore the fact they conflicted and just get on making the money because this is the me this is the bottom line is goes back to your point about the nobody's taking them on the fact of the masteries the government has as you said they have dumbed down the regulatory agencies they've taken away from the police the the best to get in areas they used to have they've done down the powers of investigators to be able to go up on paper they've got fantastic rules regulations but nobody's you forcing them ok so even they are powerful department of justice for the us claim that it was unable

to prosecute h.s.b.c. say for money laundering for drug cartels and terrorists because to do so would jeopardize the financial system so now you've got a class of untouchables they say we know you know that were criminals and we fund terrorism but if you try to go after us we're going to crash the system as i thought a couple of times they've got us to tear society of untouchables at h.s.b.c. by. please lloyds royal bank of scotland j.p. morgan goldman sachs here doesn't this as actually aren't they kind of thumbing their nose at the public and saying we dare you to overthrow us you know they're just tempting they're just they just saying we we we know we're committing crime we know we know the economy is shrinking because of our fried but we don't think you have the the bollix to overthrow us haha they're tempting the tempting thing as if they're pushing the margin every every new product they bring out every every every

new component they offer to the market they are out there pushing the mountain of the on believe every time you actually write they know how they're behaving and it goes right up to the very top of the tree they know exactly what they're doing because the problem for us is because we have allowed we've allowed these institutions to push back and push back and push back in this in the the scandalous belief that somehow somewhere someday they're going to see the light and become good boys the truth mattresses if you can bring it down to basics it's like the playground bully the playground bully swaggers around the playground pushing kids overstating their lunch making their bow and nobody does anything about it is he going to stop of course he's not the only way you stop these people is to is to take them at their word and say fine enough and no further and that's why i was particularly disappointed by the d.o.j. with the h.s.b.c. case because h.s.b.c.

in my judgment made a deliberate business case decision to set up a bank which by the way was a complete subsidiary of a bit of a bank here in canary wharf right ninety nine point nine percent owned by banking and kerry will then tell me this was some little tichy mexican bank it was and it was h.s.b.c. who set up this buying with me with the should should knowledge that it was me it was new variable to them to loan to mexican drug money then it was to obey the law . until somebody stands up to them says right that's it you know some some of you are going to do hard jail time they're going to carry on doing it now there was a time when the f.c.c. in the d.o.j. working together in partnership were a real force to be reckoned with some years ago i mean that's been changed because you know the american regulates the need breaks my heart to say this has been watered down in the same way that we've been able to down ok so the d.o.j. has decided this week to go hard after r.b.s.

they're not going after citibank and i going after anybody else as a because the da saya british taxpayer owns this bank and it's unlikely to protect the paying the eight hundred million dollars fine so here another situation the people of britain are so easy to defraud and to have financially terrorize that america has got them paying for the library scandal eight hundred million dollars to come out of r.b.s. which is owned by the public well i don't think it's first of all i don't think i don't buy into this this idea that it's somehow a big conspiracy on the behalf of the we get americans just to pick on the brits i don't buy into that at all the fact of the matter is that bangs deeply deeply implicated in this in this libel manipulation and the the d.o.j. as i've read has got as has an intention to seek to prosecute an element of b.s. i think they're doing it because possibly they've got the best evidence against

this particular institution i don't think this is about just picking on r.b.s. because it's a british patsy and the tradition of it but london is the front capital the world i mean this is the commit fraud i mean regulators are totally compliant because other people don't hold the regulators the feet to the fire so why not dump eight hundred million dollars of the fraud here let the poorest taxpayer deal that you know and because they've already proven themselves to be completely compliant and week we can this regard well that might be a very good policy does. you know i certainly wouldn't want to all get a good start but the fact of the matter is that it always goes back to your original point if you allow your institutions to become pariahs and if you will country gets a reputation for being a pariah state because you allow least owes you money to come here and you don't seek to prevent it this is a moral dimension that eventually comes back and bites you up the backside laid which says you have to take the rough with the smooth there's a downside for all its upside so if we aren't getting it in the next year as

a result of it we've only got ourselves to blame ok ron boswell davies right time thanks so much it's been a joy to max all right and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guests about davy's if you'd like to contact us please tweet us at kaiser report or at facebook dot com forward slash kaiser report until next time. there are twelve cities in the united states in which half of the people with hiv aids lives with. a six to two percent and. i don't mean this with this is a problem that frankly is substantially preventable it was like the big elephant in the room and nobody wanted to talk about there were really good public health campaigns that people really focused on this problem you certainly should be able

to have a lot less a lot less suffering. hold it. hold it. liz. please.

send over the speech. if you. wish. it so good at least. lists. and i'm. fine i'm a little. fifth. live

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