taken hostage in the golan heights by syrian rebels. venezuela begins seven days of mourning for its late iconic leader chavez the country's president for fourteen years who died after a long battle with cancer at the age of fifty eight. and the commandant his death raises questions over the future of the country's oil industry with some of the world's largest reserves now being allied by many not least the u.s. we'll look at the prospects. for fresh clashes between police and protesters erupt in egypt support saeed despite the prospect of the army taking full control of the rest of city something president morsi is considering following days of deadly violence our top stories this hour.

around the world on screen online international news and comment live from a new center here in moscow this is. and so to our breaking news this hour twenty u.n. officials according to the u.n. saying that twenty of the international peacekeepers have been detained by a group of syrian rebels on the border between syria and israel earlier an online video emerged purporting to show a group with the captured convoy joining me live now is our middle east correspondent paula slayer paula tell us what you know what has happened. well as you say the united nations says that around twenty others peacekeepers have been detained by about thirty armed syrian fighters the rebels earlier released a video where they accuse the united nations of assisting the spin president bashar assad's forces in entering israel rebel captured areas and also in this video they put forward their demands have

a listen. i would demand from the u.s. the u.n. and the security council that the troops of fashion sense regime withdraw from the village until then the peacekeepers will remain our hostages if our demand is not fulfilled your the we will treat the hostages as present. condition of the way now the united nations has of course condemned this incident the u.n. is currently negotiating with the rebels it demands the immediate release of its forces the united nations says that its observateur were on a regular supply mission earlier on wednesday when they were stopped by the militants the un force was established back in one nine hundred seventy four to monitor the disengagement of israeli and syrian forces and maintain the cease fire between the two countries who are technically still have more it will capture the

golan heights from syria back in one thousand nine hundred sixty seven and syrian troops are not allowed in this area but recently been area has been the scene of clashes between syrian rebels and government forces but paula the syrian rebels of just been promised more support from abroad haven't they. yes they have last week the u.s. secretary of state john kerry announced that the united states will provide food and medical supplies directly to the rebels kerry also pledged in addition some sixty million dollars in assistance to serious political opposition to topple the syrian president bashar assad now this is the first time that the united states has publicly committed itself to sending non lethal aid to the armed factions that are battling the syrian president bush and also hasn't ruled out supplying the the rebels with weapons in the future also on wayne state arab league ministers said

that arab states are free to offer military support to rebels fighting the forces of syrian president bashar assad if indeed that is what they wish the arab league secretary general also said that the ministers have invited the opposition syrian national coalition which is the umbrella body for anti assad political and rebel groups to occupy the seat of syria at the lead not what this does mean is more political as well as more diplomatic support for the rebels. paula thanks very much indeed for that live update of our correspondent there paula slam. the middle east cole shero i spoke to him a little earlier here in r.t. he has told me that the west is playing far with far should say when it provides weapons to the syrian rebels. kind of make sure that the weapons will end up in the end and sides again if you look at the fact that what this incident illustrates with this kind of counterproductive nature the lack of control that any military or

somebody on the ground for the opposition or outside political or sorry is intrigue doing its job and doesn't exercise that one troll that he claims it does so the west should. think a lot before doing i'm harming the rebels because they most certainly won't want to end up with the target groups it seems that the kind of the so-called rebels started as you and peacekeepers they weren't quite sure and you didn't want. the purpose of the young group that was there would just start he has been there to separate israeli and syrian troops so the kind of complete system to be unfamiliar with what the purpose of those troops are or peacekeepers are and the kind of their asking for a complete international demand and again that's another indication of how explosive and irrational the situation has become on the ground. at this point is mourning it's late president hugo chavez who has died at the age of fifty eight

after losing his battle with cancer these are the pictures of travis's body being moved from a hospital in caracas to a military academy where he will lie in state the funeral is due to take place on friday thousands of the socialist leader supporters of a mast in the streets coming down to his death has ended one of latin america's most remarkable populist rules but it has also left the nation politically divided and in my colleague paul scott spoke to all too easily as you can know he's recently returned from the country. often been said that this is a very charismatic figure it's been quite clear quite evident on the streets in the campaign rally is when we were there watching him operate what china's really did for venezuela is drastically rebel. the way the country is run and operated before choppers came to power was largely seen close u.s. ally seen as sort of embracing the western economic model of us came from very poor background for roots and he came to power with his self-styled so-called bola

berrien revolution where he wanted to bring socialist ideals to the country and change the country he was often able to sort of connect with people in a way that other politicians you don't often see for example he would play a musical instrument that has different press conferences even at the political rallies for example the last one that he held before the election we were there was pouring rain he was fighting cancer we knew that he was sick and he got right up there on stage you know walked away from his security detail walked up up front and started dancing with the crowd and you sort of love him or hate him you really sort of saw it the human being comes through and i think that really helped people feel that they can relate to them especially the for you know you talk to his charisma their new you mention the poor the social programs you do the usual for some of the projects that help consolidate his supporters take a look at for people living up in those longs or barrios there used to be no way to get down to the city to find work or go to school simply walking down those hills

you think about an hour and how they used to be no public transportation to a president to a good job has built these cable cars a little lifeline for venezuela's poor and i was just cable cause was it that led to his popularity of course then as well as a country with a massively large urban population of some twenty million people about seventeen live in cities and until chavez came to power these people didn't have access i mean they weren't physically able to get down for example into the city to get jobs that's why the cable cars were important they didn't have any social services like health care for example so chavez helped build these free health care clinics that gave them for the first time access to services that most people in in developed countries are used to go through one massive support with a social problem programs among the poor there were there was criticism that he wasn't of this really building the kinds of institutions that would help them as well. develop economically sure they had a lot of oil dollar wealth that doesn't mean that they were necessarily building the kinds of programs that would sustain economic development but you know at the end of the day regardless of how divisive he was he certainly permanently changed

the picture of venezuela and also in the region. has championed economic reform funding it with oil wealth and its weight as one of the world's biggest oil producers and nations depending on those supplies are keenly awaiting what happens next not least the u.s. if he explains. venezuela is a major player in the world oil trade its deposits are estimated at around two hundred ninety seven billion barrels as you can see just there that's comparable to those of saudi arabia the world's biggest or produce another country is currently the fifth largest oil exporter amounting to ninety five percent of the country's export earnings but actual production is far behind if i asked you to decades of investment a since one thousand nine hundred ninety eight or output has fallen twenty five percent now production price well i can tell you that right now as far as the oil

markets are concerned the price has been relatively muted and that's because assad is it sounds travis's death was already priced in we are expecting a spike depending on who will take power and less than a month time and where their loyalties lie venezuela is one of the largest buyers of russian military hardware and trade between the two is only up russian firms have a strong presence in venice waiter's energy sector russert is there our local has worked in the country for almost a decade now on the gas side gas problem has been there since two thousand and eight now contracts with venezuela are all based on deals made with chavez and his government and as we know ross nafs the head igor sechin he'll actually be attending the funeral which have a says funeral and he'll probably be making sure that those deals stay intact could be people going there will assert discourse for the legacy of chavez and the

implications of his passing with interest in journalist joins me live from new york chavez's legacy will that be enough for his voice president nicolas maduro to wood enough votes in this next snap election. i think that depends on how strongly he's identified was in the mind of the electorate and it also depends on the integrity of the electoral system but my suspicion is the answer is yes that he's going to win as convincing or perhaps a more convincing victory is the one that chavez won only a short time ago the most important aspect of this though i don't think is even the electoral politics or the legalisms of political structures there back in two thousand and two during the coup it was demonstrated that the real power resides with the venezuelan people when they marched on the captured presidential palace and took back their country and handed the reins of power back to chavez after it

had been taken by a group of people with the us backed coup if those people continue to mobilize themselves and continue to protect what they are interested in seeing happen they strongly support the ball of our revolution then whoever represents that best at a given moment this is going to end up leading quote unquote venezuela with the fact that people are going to get. much support of course from poor people but of course there is a lot of discontent too despite many of the benefits that the poor have received the middle class seems to be in eroded there is a crumbling infrastructure. investment back in the economy there is a lot of unhappiness so do you think the opposition could gain a good deal of support particularly when we're talking about some u.s. support. well certainly the opposition is has the support of the u.s. the large part the real foundation of the opposition in the country is class based

it's among the middle classes who benefited under the old order which left millions and millions of venezuelans absolutely impoverished but gave them some comforts that are comparable to middle class life states in europe but the. real wall support well first of all part of the erosion of the middle class is a bow to miami where are a lot of people that were of the upper middle class of venezuela way escape to early on in the term of president chavez as it came time to start looking at who got what contracts and who was you know doing inside trading and who had been basically parasites on the backs of the venezuelan people all of that aside i think that the infrastructure that has been built things capital such as the literacy rate jumping the skills among the working class and the poor are jumping

in terms of things that can be used to construct an economy and all of the ground up work that's been done in venezuela to construct an economy and a social base those are things that are the real legacy of chavez and that are the building blocks for what comes next i mentioned us earlier washington said it's counting on improving relations now we've corrected do you see that happening we just seen some diplomats expelled we've even seen some accusations that the u.s. could have had some sort of hand in chavez's illness. well we have a history of the united states assassinating foreign leaders that didn't like particularly in oil rich countries we can look at most a day and we can look also in latin america our banns yen they cetera they've been trying to kill for the castro since the one nine hundred sixty on successfully they tried to kill chavez especially with the coup in two thousand and two presumably this aspect of their policy hasn't changed it was only an issue of whether or not

they had the opportunity to meet opportunity so i don't know if they had a hand in him dying of cancer or of infection but we know that they do trade in that you could ask yasser arafat about it as a matter of whether or not they did not whether or not they would do it they certainly would let's talk about venezuela's oil reserves of course some of the largest in the world what's going to happen now will that door open to other investors will other people benefit from this what is the future now because clearly many people have their eye on venezuela's oil reserves. well you rightly point out it's one of the largest i think changes from the third to the fourth largest producer depending on where you are and you know we're talking about that in a class of you know large producers like russia saudi arabia etc. the for the first time in the history of venezuela chávez the oil revenue the oil production was put to the needs of the venezuelan people instead of to you know the service of

foreign capital and servicing foreign debt. that is the condition at present similar condition to prevailed in libya for example and we know how the united states respects that model so i know that the angling is going on there's a tremendous amount of money to be made there but i have a feeling that the venezuelan people have already shown themselves what they can do to defend their country and i think that they've probably grown used to being able to eat and live indoors and such as the oil revenue has allowed them to do since it started being applied to the social economic problems of that is well known to your thoughts on this thank you very much indeed for joining us live there in new york. thank you. now we're heading into a break now but still to come this hour. in the egyptian city of port saeed we report on what's fuelling the armrests in just

a couple of minutes stay with us. more

news today. again flared up. these are the images the world has been seeing from the streets of canada. operation the day. continues. the clashes are again raging in egypt's restive city of president morsi considering giving the military full control that at least six people have been killed and hundreds wounded in the latest wave of street battles between security forces and young egyptians correspondent bill true brings a small. president mohamed morsi met with top security officials on cheese day reportedly to discuss pulling the police out of the restive city of science and instead putting the military in place this is because of four days of clashes

between police and government protesters in this restive city including protesters torching the national security agency building with additional fires in the governor's headquarters and the security directorate this comes of course i had a very contentious verdict on saturday for this. massacre that took place last year in february and it started when thirty nine defendants were moved from the prison the families of those defendants in this case were very upset with this and so the conscious began between the police and protesters saying hundreds injured and at least five kids meanwhile we have violence here in the capital as well just off the three square by the nile has been intermittent street battles between anti-government protesters and police although the opposition is not cohesive there are definitely similar grievances being expressed across the country that there's been no change since the revolution in an eleven a feeling that president obama is making very unpopular decisions such as backing

this four point eight billion dollar i.m.f. loan which will see subsidies cuts and tax hikes in addition people are saying. the constitution was drafted by islamist dominated constituent assembly so people really hear a feeling that nothing has changed there are many problems in the country which means there is very likely this is the violence is likely to continue in the next few weeks. the true. news this europe's largest active volcano has erupted in a stunning display of sprouting smoke small villages residing on the slopes of mount etna said to be at risk although a number of roads in the area have been blown volcano which is situated on the italian island of sicily rises more than three thousand meters above the ground and erupts a number of times each year. at least sixty people have been arrested from the student demonstration in canada's montreal protesting against a hike into wishin fees police in riot gear used tear gas and sound bombs to

disperse the crowd it's a repeat on a smaller scale of scenes witnessed during the so-called maple spring of last year when hundreds of students ended up in jail and get it broken promises of education for you. think the huge crowds of rallies in the philippines after one of the country's muslim groups was attacked by security forces over a territorial dispute in malaysia air strike was carried out on tuesday in the state of the hundreds of thousands of filipino settlers the test is accuse the country's president of abandoning his people in the territorial struggle and peaceful resolution. britain has been left alone a voice in the e.u. by defending bankers' bonuses as the rest of the bloc aims to rein them in the measures are popular with a sturdy europeans many of whom say it is the bankers who triggered the financial roller coaster in the first place. explains just why britain is so adamant.

it's that time of year again bonus season is in full swing the chief executive of h.s.b.c. is set to pocket assuming imperiled bonus this month by the way that u.k. bank is get paid could be about to change and that's if the european union has anything to do with it at the moment the average bank a salary is just under seventy thousand pounds a year but bonuses for top buying cars can be many times more than their baseline depending on personal performance the success of the bank and the market as a whole last year the bonus pools of leading city banks went up to as much as two point four billion pounds a b c but if the e.u. proposal goes ahead next year banks would be blocked from paying out bonuses larger than double in employees basic salary much against downing street has some banks some teams of people some revenue some profits some tax revenues my would be

britain and to that extent britain both before voices inside the city say that big banks in the u.k. might be forced to pay higher base salaries in order to keep the most talented executives there are very few sectors in which united kingdom is a world leading financial services is one of the high basics impose a constant overhead which can be adjusted easily from year to year whereas the bonuses can be part of the success of the market has been that element of flexibility you can award. in one year. another year and with the european economy still flatlining voters want to see those bonuses down but there are fears that the measure could end up putting london at a disadvantage to the text. coming from because not just in the bonuses but in

general is huge estimated to be over and above forty billion pounds a year so the point here is that effectively this is taking away people from the economy this could be forcing people to go elsewhere and the trickle down effect of that will be dramatic overregulation in other areas has cost the many of its manufacturing hubs also new economies coming on board and that has obviously had an effect bankers might not be the most popular characters in all staring at a second rating right now but if we're in the financial services industry is vital to the you hate me and don't you think that one thing that is including chancellor george osborne say that they're concerned that it could happen as thinking that it's not just on the city of london but on the british economy as a whole the rest of europe however is determined to push compensation in the

financial sector down with a final vote penciled in from a bonus season next year could end up being an altogether more subdued affair. see london of an enormous stages dance himself into a whole lot of trouble off its one of the bolshoi theatre who recently played ivan the terrible has admitted he was behind a shocking acid attack on the company's director said if in this sort left the victim nearly blinded. the reports. one of the world's most famous theaters the bolshoi is still recovering from a huge scandal when its artistic director was thrown a ball of acid because face but it also seems to be losing one of its leading don says vital dmitrichenko admitted that he. did this acid attack on the artistic director of the bolshoi sergei filin because he disliked his boss certainly this is enough for him to be prosecuted to be punished but the unconfirmed reports suggest

that he carried out this attack you masterminded this attack because feeling as the artistic director of the bolshoi did not allow his wife to perform a leading role in one of the one of the place supposedly the famous swarm like the other two men the one who carried out this attack and the driver who brought the executioner to the place also admitted to carrying out this attack we all saw in the black swan hollywood movie how tough life can be behind the scenes of the big ballet this certainly was fiction but this is no different to reality the bolshoi has been surrounded by lots of control over seas from addresses being cut ahead of the place ahead of the big stage to gloss being put in the dancing shoes of the performers in one of the scandals one of the administrators even had to resign because of pornographic pictures were made public on the internet definitely. has been surrounded by control received but it's never made criminal

headlines as was the first case like that feeling partially regain his eyesight we understand that he's now under treatment in germany and probably he will be returning to work in six or seven months time as has been predicted by doctors now . well for more on behind the scenes infighting at russia's main fear to go to our website. dot com and also there at the moment energy hungry japan's atomic plants come back home stream online we'll tell you why pragmatism is overcoming the push to the principles. also i'm on a last minute lifesaver for one worker in central russia he managed to bail out of these cranes cabin as it tipped over from lifting a very heavy bulldozer for the full video quality you tube channel right now. but it could be up to twenty eight minutes past the hour here in the russian capital time now for the business with the tasha his she is with us in the studio the tension of course everybody's talking about venezuela at the moment what is

going to happen particularly to the energy sector and all those resources russia of course what has a multibillion dollar investments there in venezuela what's the future well absolutely and that's the billion dollar question isn't it and as you'll find out in the business bulletin some say that russia is bound to lose that all just like the united states did when charges came to power all about just after a short break thanks. children. they're serving a sentence just like their mother.

the ones born in prison. now most of the crimes committed by their parents. to babies on are to. download the official application to yourself choose your language stream quality and enjoy your favorites from outside if you're away from your television all it just doesn't matter how would your mobile device if you could watch r.t. any time anywhere. exactly thirty minutes past the hour here in moscow you watching business on r t welcome to the program the death of the venezuelan president hugo chavez leaves

a lot of unanswered questions for oil producing countries like russia and the united states one of the biggest uncertainties has to do with the country's future energy policies just hours after the world learned that child has lost his battle with cancer the head of the country's national oil giant petroleum's devon has a wall of value to continue the social leaders legacy or fell over mere as said quote. the situation the sector will not change but there's absolutely no doubt that the competition for vanessa well as energy assets will intensify with deposits estimated at almost three hundred billion barrels the country's reserves are comparable to those of saudi arabia the world's biggest oil producer so it's understandable why the united states a superpower on the american continent has its sights set on that as well up the u.s. oil companies were the ones that helped the country develop its first while in the beginning of the twentieth century under chavez many foreign owned assets were

confiscated here's how much u.s. companies claim they've lost in venezuela conoco phillips once the biggest foreign stakeholders in as of an event as well as looking to recover more than twenty billion dollars in lost assets xom mobil is seeking twelve billion dollars to recover its lost cerro negro projects chevron still works in the country but it's under constant pressure there ironically the u.s. is still the biggest consumer of venice want to vent as well and oil not to mention that the u.s. refineries mainly process that dense high soul for type oil that venezuela produces but russia and china also have a sizable presence in the country rosneft pledged to invest up to forty billion dollars over the years with its now subsidiary v.p.

developing several fields in the south east region of the country for almost a decade now russia's largest privately owned oil company luc well has been developing venezuela or reno coal oil belt and russia's a gas giant gazprom has a stake in the gulf of venezuela china is also a big investor its fate. c.m. p.c. has a big project in the who me and four block china development bank agreed to lend the country forty billion dollars against crude oil sales so the biggest question is what's going to be venice of all as energy policy in the post chavez era will the successor nicolas maduro be even more radical than chavez as he tries to prove his loyalty to the leader and his ideals that's the question i asked whole team on the piccy of plots energy agency. this area where the completely

speculation area so we can be right wrong but when you change or leave there you always have some changes to the spall it's right it is almost the norm that the policies after they're being set by somebody else that they're being respected initially but then they tend to change over time so what is more likely is that they'll be perhaps a loosening of those socialist ideas because on a frank bases you can see the doctrine in the production in venice oil and i think the pressure is building to run to venice or lean the street a little bit more market oriented you have also seen all the efforts now in mexico to run the oil industry more market oriented so frankly i think it is likely that at the beginning it will be the same but he will change later on perhaps

a little bit less socialism more market oriented ok well if it's more or less clear with mr mcdougal we're likely to see some continuity what are the chances that the opposition should it when the election well actually perform a complete about face when it comes to that as well as energy policy essentially kicking out companies from russia and china and replacing them with those from the states. well i don't think things change that quickly and that dramatically of course the opposition wants to go on a full market basis but we know that in the world of politics it's always the world of compromise so on a compromises basis i think of an assault has been offering oil to some of its friends in the caribbean and central america i think they'll be pressured to maybe cut back a little but not fully one hundred percent. with the russians and the chinese is an

issue particularly with the chinese market price. if in a solar cell sort of market price there's no reason why china shouldn't buy it at market price because china buys from anyone else at a market price. the russian companies will have no choice but to leave venezuela losing billions of dollars in the process that's according to constantin seaman of the national energy security fund for my opinion of the possible scenarios. of course the main question is what will be the result of the new elections in those will. you for of course. my daughter will read in the election. there will be no. contracts and. so the fate of companies in the world will be. quite good and maybe

a month. or so extra expenditures or something like these but he will not abolish the contracts. but. in my opinion there is of course the possibility of another scenario because a position. would remember us present elections. in two thousand and twelve the gap between. chavez and his main rival was just several percent and it means that. lose the election and this scenario will be extremely dangerous for us in kabul. and that. in this case we will see the return of american companies. because it's not a secret that. americans from venezuela there was seriousness is a sort of history. of course they want to topple this country

and in this case we'll see the result of russian companies maybe we learn some lessons from this story because for me it's a serious question why our companies are so active in the west. because we have huge resources in the us we have green fields in eastern c b. we don't know what to do. where and why the americans to be our partners in the russian project. and at the same time when the west billion dollars when it's for me it's a very strange. let's take a quick look at the figures first of course the energy markets as expected crude remains indifferent to the news of the venezuelan. while into supported and a price that event event essentially both of them brand have been shedding value

for the past four trading sessions mainly on higher than expected u.s. inventories over on wall street portrayed as active this hour the stocks are higher the nasdaq has bounced back into black over the past hour that followed a record high on the dow on tuesday europe closed that mixed on wednesday the footsie hitting a fifty two week record in early trade before it slid down to the session flight to negative the dow man the dax managed to stay up above the line now moving on to the currency markets the euro fell against the dollar ahead of the e.c.b. meeting scheduled for thursday here in moscow of the russian ruble finished the day mixed to to the currency basket a loss to the u.s. dollar but gained to the euro and moving on to the equities here in russia they proved resilient to lower crude prices and once they post a moderate gains for the day is better bank and lukoil outperformed the market

gaining more than one percent each and that's all the latest from us in business next on our team rampart learns all of the details of how washington porn's hundreds of billions of dollars into the banks at the height of the two thousand and eight financial crisis and where the measures have led keep it here an art. did any of you seen darth vader as storm troopers trying to make their way into the ukrainian justice ministry as part of a protest well probably a lot of you saw this fun viral video but how many people remember what exactly they wanted and what their protest demands were all about now probably not that many trust me i understand that using wacky protest tactics gets media attention and if you are pushing

a cause that media attention is critical but when no one even gets what you want or why you are in that wacky costume it doesn't help there seems to be like almost a protest a culture and language like you see people protesting there so satisfied with themselves in their costumes and silly gimmicks but if your protest is actually aimed at people in power then how is it going to care cost of goods with the opinion of heartless bureaucrats sitting in some soulless office again media attention is great but if you want to be taken seriously we're a rainbow wig and thawing while fighting for your rights doesn't seem to send the right message but that's just my opinion.

six. he was the special inspector general in charge of overseeing the troubled assets

relief program otherwise known as tarp and his three year experience as outlined in his book bailout how washington abandoned main street to rescue wall street r.t. is happy to be joined by neil barofsky for a one on one interview thank you very much for sitting down with me today it's my pleasure you refer to washington as an alley in world a culture more concerned with looking out for themselves or the next headline what happened with the tarp program that led you to say something like that well you know was a remarkable thing coming in i was i was a lifelong democrat i even contributed to then senator obama's presidential campaign but i was actually appointed by president bush republican and it was sort of striking to me as a you know as a lifelong democrat of how little things have changed and everything i think over time it became increasingly so was very much politicized decisions were made with an eye towards the the press cycle what's what headlines are going to get generated

and sometimes it just resulted in remarkably head scratching counterfactual arguments that had very little to do with what tarp was supposed to do so the official story line official narrative which survives to this day is that tarp worked tarp was incredibly successful because it helped preserve the financial system but that's not what tarp was supposed to do history was a vote was eventually rewritten by the treasury department to make it seem like tarp all was ever supposed to do was put this band-aid over a broken financial system and all those other things for which there would never have been a bank bailout all those things are supposed to help people other than the executives at the giant by the national solutions well that just got ignored and sort of brushed away you've said that the largest banks in the u.s. did and still do hold a gun to the head of america's financial system why put social in the most. the department of justice and they have done some big settlements they did was h.s.b.c.

over sort of a breathtaking amount of money laundering they've done some of the library cases on the interest rate rigging with some of the big european banks and one of them that big questions has been raised well why are you not requiring guilty pleas from these these institutions with a response apartment of justice was well if we charge these institutions it could potentially destabilize the entire economic system of the world the global economic system and this is a i mean the stunning admission and look i give them an a for honesty this means that in essence there's two sets of rules and now the special subset of too big to fail slash too big to jail corporations and that of course creates a tremendous incentive to do what to commit more fraud to break the laws so who is managing the u.s. economy the government of the banks. you know look at the fair question a lot of the management of the government of the government in the economy is sort of outsourced in a way towards the banks you know that's how tarp was originally run was it wasn't

that ok here we are u.s. government we have this these hundreds of billions dollars we're going to save these banks we're going to save these guys for the purpose of we want the banks to put this money back into the economy to increase lending to businesses homeowners to get the economy rolling again but when they did it they didn't do it the way that you would think that you would if that was your goal would say ok banks j.p. morgan chase you know here's your twenty five billion dollars but when you use this you know you're going to agree that you're going to use it to increase lending and we're going to measure that or we're going to incentivize that or at least require it if not incentivize it and keep track of it like that's how you would think would be if the government was running the program but that's not what they did they gave us the facts no shrinks attached no conditions no requirements no incentives no transparency when i said hey hey guys why don't we make the banks tell us what they're doing with the money so we can know. reporting have a sense whether following these goals you know i was told that i was stupid that i

was playing politics that if i did it myself i was going to destroy the banking system this led to tim geithner himself cursing me out of the meeting when i suggest that he was a thing less than the most transparent secretary of the treasury in the country's history and this is all part of that incredible deference that they show to the bank so it was give the money to the bags and trust them and of course what happened the banks in use the money from and they make they hoarded it they lied to back to the government they invested it they did whatever they could to maximize their profits they did almost everything other than increase lending in lending actually contract it so that certain example of where the government had incredible amount of control and leverage and chose not to use it is that because the banks have so much power and influence in washington and that number is number one reason why the banks. trumped the homeowners when it came to talk it was a remarkable thing so yes but it's not like sort of just the traditional way we

think of the way that any corp arch corporations or powerful corporations have influence in washington where we typically say that we think about of the money in the campaign contributions and the lobbying and all that it's totally valid but what i saw was far different and frankly far more insidious and to me much more damaging and dangerous it was more of the complete ideological capture of these individuals and by that i mean these are people who fought and believed they were doing the right thing but so a den of fide with the interest of wall street and the largest banks that that became the only the only thing that mattered but even those who didn't come from washington to tim geitner secretary of the treasury was present in the new york fed . who never worked at a wall street bank but still is so surrounded by it and so had adopted this worldview that you know i don't think he was lying when he thought that oh i'm doing what's best for the cunt. the problem is that he was so blinded by this

prejudice in favor of the wall street banks that that's all that mattered overall how much have the ballots cost the american economy what's your figure whatever i have a number of always just recounting whatever the officials are so treasury's official number now i think is in the new order of fifty to sixty billion dollar losses on the tarp program. i think that do see below is a lower number maybe about twenty four billion dollars of losses so i'm not i'm not sure of that but i think that there's this tendency to minimize the cost of the bailout to make it seem that oh it wasn't all that bad look at these numbers are low here where we made money on this part of the program that it glosses over really the incredible amount of damage i mean we're talking about in the tire years worth of g.d.p. or the entire production of the entire american economy wiped out because of this financial crisis and one of the biggest costs which we've not yet realized in the way the ballots were conducted is that we put essentially a bad date over

a gaping chest wound and we have the same type of broken financial system that we did in two thousand and eight only with banks that are more concentrated more powerful and more dangerous and all the bad incentives that led to crisis in zero eight in many ways are still in place thus leading to why believe as the next financial crisis there's still chance to do the types of things to keep that from happening which i hope will happen but if left undisturbed whether it's two years four years or eight years it's going to happen again it's just sort of naive to look at all the incentives and all the things that are still in the system that caused crisis before and presume that for some magical reason they won't happen again what are the biggest challenges for the u.s. economy at this stage is it still little or weak regulation is it the power of the banks or is it other issues like get unemployed. what is the number one challenge

let's all sort of short term medium term long term it's all it's sort of depending on what and what you do like right now we have an unemployment crisis in this country long term unemployed is just been devastating our unemployment rate is too high it's been too high for too long you know we're going to have people who are out of work for so many years it's going to be markedly difficult for them to to get back to work this fuels income inequality which is a very very significant problem in this country and is going to be a long term structural issue that somehow we're going to need to contend with you know a recent study came out that of the so-called financial recovery that the top one percent basically gobbled up all of the recovery melts and then some while everyone else is guy actually gotten poor little the richer got richer the poor got poor these are sort of unsustainable long term trends that are really problematic for the economy as far as what i think is the biggest threat of a giant shock it is still the fragile nature of the banks and the amount of money that this will cost if we don't arrest it before another crisis strikes is

staggering the last crisis cost thirteen trillion dollars one can only imagine what will happen next time because last time it least we had a lot of room fiscally we were our debt you know the debts and the deficits that we've been running since then have given us a lot less less flexibility to deal with the crisis the idea of getting an eight hundred billion dollars stimulus through congress and then in the base of the next crisis may be politically much more difficult getting a seven hundred billion dollar bad like what we had because in part because of the terrible way the bailout was run and minister is going to be a problem next time you know we could be looking at a crisis that will make the last one look almost pedestrian you know so that i think is really one of the sort of potentially medium to long term dangers to the economy that if we don't fix it you know could prove very very devastating do you think the euro zone should and bark on something similar to tarp you know i think that europe's problem with its banks is probably even worse. our problem here in the country with our bags there about your european banks or even larger as far as

percentage of the g.d.p. of the various countries i think they probably enjoyed even more support through the implicit guarantee which is all but explicit i mean the difference between you know deutsche bank and a german government is almost it's almost impossible to discern a large a lot of large european banks are simply are beyond too big to fail so you have a situation there where these banks get into crisis the european governments are going to have to bail them out but my advice is don't do what we did which is just preserve that status quo and then move on which is what we've done here and leave that broken status quo in place europe should do exactly what the united states needs to do break up these institutions what do you think it will take for u.s. banks to face true justice or for the government to actually put the citizens for banks nothing's going to happen in the near term i think that's pretty clear the only way i think to break through and get the types of reform that we need will be

one in the aftermath of another crisis which is you know which is which i think will be devastating and let's hope that that doesn't happen but most realistically that's probably the way we're secondly i think if there's another good big enough significant enough scandal in the one reliable things about the largest banks is that they are scandal producing machines it's again it's not surprising it's because of the incentives it's because of the lack of accountability or lack of punishment it's profitable to commit fraud or bend the rules or break the rules or take huge risks the differences between now and two thousand and eight is that there are a lot more people out there now politicians academics journalists who recognize that we have a broken system who recognize that the only path towards a stable economic system that will benefit everyone is by breaking up the large financial institutions it's not enough. and not enough political power to get it done now but i think if when the time is right there is enough support that i hope

that this can get move forward and finally get the protections that we should have had back in two thousand and ten but don't have yet it's pretty bad right now how much worse but it have to get you know i don't know and you know we saw glimpses of the occupy wall street movement we saw glimpses in the tea party movement you know which was originally about the unfairness of the bailouts was what triggered a lot of the tea party anger but we also saw those movements you know are they've transformed so i think there's a lot of anger out there still but it hasn't found a place to be channeled and but look i think we continue go down this path it's almost inevitable that it will start to once again erupt and the question is what is that trigger going to be a can it turn to something more than a bunch of angry people yelling it into a significant political movement you know it didn't happen with the presidential race of two thousand and twelve but you know again i think it's going to be take

some additional accidental shock to get people into the into this game but it is a problem and it is you know some of the stuff is difficult to to understand actually i don't think it's that difficult to understanding it's actually made complex by the banks and the politicians in order to make people think that it's more complicated than it actually is and look one of things i try to do in this book is try to explain ways in ways that people can understand and realize that you know what you don't need a doctorate in finance to understand that our system is broken and that you know so much of the bank's lobbying power and the politicians power is try to confuse people with concepts that are under true i mean just simple distortions of basic economic truths in order to carry their agenda and try to you know educate and bring people up to speed on this stuff is probably part of that process now to thank you very much for your time my pleasure.

my juggling job. to do hack work and get caught when lobbyist money and lawmakers are combined together that's where the problem of corruption comes from. i don't know the document's. keep up a smart look. there is also. another well behind that which is how to influence the citizens steer clear of provocations don't answer any question. came into the office

and found banners hanging around the office and lots of strange faces around so i said what's what's happening will somebody please tell me what's going on and they said oh we've come to occupy your building. possibly they want to do a confrontation possibly they wanted me to ring up the police and have the police come in through the mouth but it didn't seem to be a good idea to learn the european way with brussels business. in the uk risky it's one person one fault but the brussels business it's one euro one fault.

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