good afternoon and welcome to prime interest i'm perry and boring here and washington d.c. let's get to our headline. demarco and fannie and freddie made headlines back in september of two thousand and eleven when he got the f h f a to do a seventeen banks and broker. transgression they were bilking the taxpayer well they recently settled with citi group but they've declined to tell a federal judge much less to taxpayers how much the settlement is worth or any other details for that matter bloomberg inquired as to why it was told that the f.a.a. f.a.a. might never disclose what's her well i guess we'll have to see if mel watts bring some transparency to that agency when demarco leaves but we're really not holding our breath on that and the jobless rates in seventeen countries that use the euro

rose to an all time high twelve point two percent but price inflation still remains low guess what that green lights you have some more european central bank bond buying aka money printing but protesters in germany aren't having it at least not as they are the measures that's because up to three thousand members of the walk you movement descended on to the brain for it's a financial district to disrupt business activity and according to an. occupy spokesman the aim of this blockade is to prevent normal operations at the sea or forced to wonder if and when the will descend on wall street. and finally yesterday we disclose that jon bon jovi is selling discounted tickets to spanish concert goers because of their economy well today we learned that spanish beings having been have been aggressively buying. own vaughn's and this is why you always have

remained low despite turmoil and other european markets when you ask what's the big deal while the fed does the same and when the bond buying stops borrowing costs rise so you've got to stick around and see how this game going to end but for now let's get to what's in your prime interest. small small business is often have a difficult time navigating through the red tape in washington the financial crisis of two crisis of two thousand and eight was mostly attributed to the largest

financial institutions and regulatory reform laws that were passed in response to this were riddled with car valves that benefit the very firms they were supposed to rein in what we have now is a set of rules that restrict small businesses from growing these are small businesses that didn't contribute to the financial panic and who employ over sixty percent of new what private sector jobs. and response congress passed the jobs act to help small businesses gain access to capital and some other provisions here to discuss is john barr allow from the competitive enterprise and its thanks for joining thank you barry and great to have you great to be on so you are supporting the rand paul mark bill for credit unions a list the cap is currently at twelve point two five percent they want to lift that to twenty seven point five percent of total assets he has give us the overview of the bill his for his against a of are you for it well one of the things that you mentioned rand paul republican

of kentucky and mark udall democrat of colorado in the senate it's also one of the only bill i would imagine maybe one of the only bills ever to have. a republican of california and is fellow california senator maxine waters are on the edge but everyone is seeing the credit as you said credit unions did and small businesses didn't contribute to the crisis yet since one thousand nine hundred ninety eight they have had this cap on business lending at the behest of the bankers lobby which the banks don't have and which credit union takes no other restrictions for mortgages or auto loans which are you can't really say after the mortgage crisis is that really small business loans are any more of a hair at least dangerous it depends on the quality of loan than mortgages are so that even the obama's president obama's administrator of the credit of the national credit union ministration is for lifting that is for lifting the cap and it's got a lot of bipartisan support but of course the bankers lobby is fighting it tooth and nail because they don't want the competition well it is

a bipartisan bill but also regional and local banks are in the financial panic suffered much more than the credit unions dead could have possibly because they had these stricter tightening tighter lending standards. i don't think so because debbie mots again who's president obama's head of the national credit union administration has said that small business lending business lending and did not contribute significantly to. a credit union implosions i mean there could be some bad business loans as there could be some bad mortgages but credit unions also have the advantages where they know who their members are they would only be making loans to their members so a military credit union would make credit unions to veterans businesses say a doctor's credit union may make a loan to our hospital or a medical device company and it would still regulators could still nothing else changes except that this arbitrary cap is lifted you know it doesn't change capital ratios or anything or the amount of loans they could make or the quality of loans

just that they can make add had business loans to more of their mix which would actually help diversify their when they get in and according to mr mots would make them safer and that's a good point because credit unions are member and they're not for profit meaning that they operate to start their members and not to maximize profits what are some of the advantages to credit unions lending of our banks and community banks and i have nothing against banks in fact i'll argue on community banks in particular as you said that they're suffering from some of the red tape too but i think you know you should lift these arbitrary barriers for for everyone but i think credit unions that yes that they're specialized in what they are and what their members want the members of the members run they could they would and they would have the knowledge like say a doctor's credit union. teachers credit union others you know to know like say of their educational businesses or medical businesses you know what would you evaluate that because you know it would be other teachers or other doctors evaluating the

quality of these loans for the for the businesses so they can for there look into that and strains that they're lending to yes so we would be remiss if we didn't discuss their. special tax status credit unions receive the credit union task expenditure and if we're going to. grant the ability to lend on par with the banks should we tax them like a bank. i don't think you can hold the business entrepreneur hostage to tax reform i mean it's a bit rich for the banks to to say you know to complain about unfair subsidies with all they've received from tarp and community banks are also constructed themselves as s. corporations which you know have some of the where they're only taxed once and the credit units case the members are fully tax and what they receive in in the interest. on their on their on their account on their accounts but and but there are other things like there are similar things in the tax code like partnerships

and s. corporations i mean we do need overall tax reform but in the meantime that's largely irrelevant to you know who they make their loans to right now they could make all of the mortgages and auto loans they want why not allow them to make more business loans why do you hold all their small business members hostage to when congress has time to time people on the tax reform well that's a good point you know the banks have received over a trillion dollars and in federal funds for tarp intervention in the bailout so let's talk about small business lending xah let's move gears into the jobs act which was implemented just to increase the ability of small businesses to raise money and the capital markets he described some of the ways that this would occur well parts of it has been have been implemented in parts haven't and i would say the parts of the been implemented have been working one of the things is that it gives new companies small and midsize i.p.o.'s what they call emerging growth companies a five year exemption from some of the most honorable provisions of the sarbanes

oxley accounting rules that president george w. bush side and dodd frank and other rules and that you're already seeing has really has really helped some smaller firms including you know. intact for biotech. some of the most prominent of the specifically utilized provisions of the jobs act have been kayak the travel search company and five below the retailer and they've had successful i.p.o. as their investors have grown wealthy it's work sensible to retail investors so they can grow wealthy with the companies at the start up or emerging growth stage rather than just hedge funds as in the case of facebook and so you had the facebook implosion which of course facebook was much too large for the jobs act but people blame the jobs act on it but i think that the jobs act is a cure the people can grow wealthy with the next facebook as they grew because it would list at to go into the public accessible the public at a smaller stage just as companies in the eighty's like home depot and ben and

jerry's were ben and jerrys didn't even use an investment bank they advertise for their stock on the back of their ice cream cartons well some of the critics of the jobs act are concerned that these companies are not going to have to report financial conditions the way that public company and stale which would reduce transparency and maybe increase the instances that fried do you have any concerns about that well nothing changes the fraud a lot i think fraud you need good swift punishment but lehman brothers was fully subject it was fully subject of this bank of america all of these firms that imploded and had problems and it didn't stop them it just made they sometimes called sarbanes oxley which again president bush certainly the great the regulator side the accounts for the employment act so you know i think these are you know just a few provisions it's the internal controls revision where you have to fully tast all of your auditing processes for a smaller company that can quadruple some of their auditing costs so i think i don't i don't think i don't think it's been shown that these provisions but the provisions have been a benefit to the investing public since they've been enacted and i don't think you

know and i think you had some successful i.p.o.'s in the job that you really haven't had no i'm not ruling out later any scandals as a result of companies that have listed specifically under the jobs act now. we need to implement the rest of it right and getting the job agnes lamentation it's really been a slow process the former chairwoman of the s.c.c. mary shapiro she didn't want to and harriet's. an anti investor legacy so she's kind of left it to you who's now taking over her role mary jo white it looks like she wants to move forward but when can we see implementation i think by delaying this she already has inherited an anti investor legacy because investors are shut out that you can buy you could buy a gas station for instance on e bay but you can't get that gas station wanted to sell to a group of people or investors you know they have to go through all this red tape so what a way it's simplifying what's already there of the crowdfunding that you can do with donations this would allow simply allow you to do that with the possibility of

an end but invest of an investor return so i mean yes you're always taking a risk you're taking a risk when you put. a lot with a lot of with a lot of things that live you're taking a risk when you buy a big company you have a big big bank but if this if there is disclosure if. you know simplify disclosure i think investors should be allowed to take that risk and that moves on to my next question have been credit investors that you see will require companies broker dealers that are selling stocks and of the jobs act to acquire proof of an uncredited at best are meaning that there is a sophisticated investor and they meet certain net worth and come standards but the f.c.c. has offered little guidance as to how to acquire this information and some companies do you think some companies will be second guessed by the f.c.c. and if you were a small company would you be hesitant to use these rules just because we're not sure of where they're going well there is a specific provision affecting a credit investors all the rest of the things that i.p.o.'s and crowd funding

involve you don't ordinary investors in the investing public what it is is just simply allowing a credit investors and people who solicit them to advertise generally but the investment would still only be a. vailable to these occur to these accredited investors because it's hard for an entrepreneur to whisper around and say everyone one on one are you rich are you rich are you rich so you can. so it's also been the that hedge funds and you've had you know peter when peter schiff who has a hedge fund and others and they have in every respect him even talking to the media they fear that they could be you know solicit they could be construed by the f.c.c. or a state regulator as an illegal offer so this sort of clarifies that rule and there's no reason the f.c.c. shouldn't have implemented by now in fact there are some who argue that they want it that it went into effect on a manically and that somebody should somebody should test it but really i mean again it doesn't suspend any you know anti-fraud laws and try and and truthful information should be made available to investors even if they lack the opportunity

to to invest in this particular company thank you so much for the way you ariens down for allowing the competitive enterprise and sales. and stay tuned because at next we're going to get the details of how general petraeus landed a gig at k k r now we're going to highlight how twitter is fighting at what he levels to say sam. i would rather as questions for people in positions of power instead of speak on their behalf and that's why you can find my show larry king now right here on our t.v. question more. i

. i. i was a new alert and scripts scare me a little. there is breaking news tonight we are continuing to follow the breaking news. alexander's family cry tears of joy and it is great to. have. in a court of law. there's a story sort of playing out in real life. i . i.

know private equity as a realm of investment that's largely flies under the radar but it's one of the driving forces in our modern capital markets a leader in pioneer in this field is a giant firm of k.k. r. and co which boast a history of over four hundred billion dollars and leveraged buyouts and other private equity transactions founded by three bear stearns employees and the one nine hundred seventy s. they recently added a prestigious but controversial figure to their payroll as former cia chief and gen david petraeus he began his military education at west point graduating in one nine hundred seventy four and had a distinguished academic career he would eventually earn a ph d.

in one nine hundred eighty seven from princeton university woodrow wilson a school of public and international affairs betray us was rapidly promoted at first service in the middle east from bergen. general and two thousand to the rank of general in two thousand and seven some have criticized for lack of a direct comeback record in relation to the many awards he received his bronze star of medal with valor award was questioned by several former army officers according to business and cider but betrays did suffer a major injury in the early ninety's when he was shot in the chest during a y. fire exercise but he was reportedly released early after doing fifty push ups just a few days after the incident. in the middle of two thousand came known for using discretionary funds for public works as part of nation building during a visit by coalition provisional authority director paul bremer petraeus quit money

is immune mission but the liberal use of discretionary cash would become criticized it was revealed the new york federal reserve had shipped as much as forty billion dollars in cash and seize seventeen planes to middle east weighing some three hundred sixty three. but became commander of the u.s. forces in afghanistan in june of two thousand and ten after his predecessor made disparaging remarks about obama to rolling stone shortly afterwards disclosed damaging afghan war military and betray us reformulated official policy regarding the use of force one of the most egregious violations of human rights on his watch occurred in march two thousand and eleven when air strikes ended with nine. boys this prompted what was characterized as a rare apology he stated the death should have never happened but october two thousand and eleven but took the helm of the c.i.

a and it was that time he was alleged to begin his affair with his biographer paula broadwell they communicated by email when. they were logged into the same e-mail account and posted messages to each other in the drafts folder however the ip addresses they both use eventually helped investigators make the connection. resigned in disgrace his prodigious rolodex attracted the attention of k.k. our founder henry kravitz the resourceful private activity equity guru called the day after he left the cia on his brand new private line the coveted power play is expected to pay off as speculated by robert wind of economic policy. journal dot com who wrote if you don't have a d.c. n site or you are not protected take a are in the hiring of just bought itself major protection and that's how we

profiled david petraeus. it's time for the dailies obama yes it's time for the viewers to speak their mind and get our response all right hopefully the nuts in the you know all right we have some viewer feedback that we took from facebook the first question is from hob right off he said john corazon it bankrupted and global and takes one point seven billion dollars the c f t c general counsel overseer gary gensler worked under corazon at goldman sachs so he recused himself of protecting and protecting itself in the caves he wants to know if he was

a nice bit of scratching each other's backs instead of actually doing the job and he get it right in that shell excites me well yes i would say he kind of got it right in a nutshell because although gary gensler recused himself and this is something we were talking about yesterday with john breaux co-founder of the commodity customer coalition when gensler recused himself early on in the case the investors and the customers didn't know what they were supposed to do and gensler was head of the c.f. to see all right and he worked under john kors zein a long long time ago but this office of inspector general in the c.r.t.c. found that there was no need for gansler to recuse himself there really weren't the conflicts of interest there as i said gensler was more interested in regulating the swaps market and he was trying to do a bunch of other things. at the time and this was now m.f. global it was just one point six billion dollars one point six what's a few hundred million among friends as compared to the swaps market which is trillions yes i mean the notional value of the swaps market is seven hundred

trillion and it was a major coup for this you have to see to be able to reveal who they know to regulate this entire market the u.s. dollar based so it was sent a signal when when gary gensler recused himself it sent a signal to see you have to see was not interested in protecting the customers unfortunately and it was like i said a dual liquidation bankruptcy process now the securities and exchange commission asserted its authority to liquidate the broker unit which had all the customer funds in it under the securities investor protection corporation and that m.f. global only. only had four hundred securities accounts versus thirty eight thousand futures accounts so the whole thing was. it was a mess from the beginning a lot of people were damaged by this sad because there was really nobody to stand up so that's why the c.c.c. was created which was great you got to interview john for the c.c.c. yesterday. so we have another comment this one is also from facebook from big big

coin joe but he wants to know how inflation relates to big coin and he wants to specify that's monetary supply inflation not price inflation and keep in mind because of the decentralized nature of mining it means that people can't sell all bitcoins mine for a day bob you want to just this one sure and he makes a very important distinction here that we need to address first which is traditionally when we are talking about inflation it was monetary base inflation it was how much money are you actually print increasing the money supply not. increasing. the money supply exactly and now when we talk about inflation we're talking about price inflation so there are a fixed amount of bitcoins that can ever be mined it's twenty one million we have a. eleven and a half million that are mind already and we know the pretty much the rate at which they're going to be mined you know the critical thing about price inflation is it benefits those who gets the new money first who are getting the new money who's

getting the new money in bitcoins the money. ok so these people are verifying transactions and as a part of that they get rewarded not less than what it means to have it and to my what's mine is in the verified transactions you have to set up your computer you have an algorithm you're running an algorithm and there are it's based on encrypt and it takes a lot of hardware and software resources and energy energy cost to run the computer to be able to do this now don't have even said that it costs more to run the computer to mine the big coins than you can. in the energy cost on exactly and it doesn't stop people from trying to do this it depends on you know your hardware setup and whatever but back to the original point. can we see big price inflation and how is it going to be based what i would say it's priced in already how many big quins are going to be mined so it just depends on the market valuation of the existing coins and that's you know you can always have hyperinflation because that will come as a crisis of confidence in the currency and we could happen with bitcoins but i

think as far as normal price inflation it's probably pretty safe and it's going to be depreciated determined by the market now very exciting to watch them very well obviously talking here. but now we want to talk about this and some are speculating that we're in an equity bubble now paul paul hodgson from market watch he ran an algorithm on twitter that looks for the amount of tweets that has the word bubble and them and just seeing a nuff it looks like he found its own bubble we have a graph of his results in december of last year he found one hundred sixty seven hundred sixty eight tweets it was pretty steady but this month's exploded has its own high and then we have a huge bubble as up to twenty nine six hundred thirty two thousand tweets ok what is the same people are tweeting the word bubble. i don't know if there's a new song by justin bieber called bubble but it could be due to a number of things but this is pretty interesting because it gets back to can you mine you know twitter feeds to be able to trade for instance to look for me invest

in companies and this is something we've been talking about we we had the a.p. twitter you know that will actually put the hash tag bubble and twitter and so i came up and a lot of it had to do with the financial markets ok but i think what you know we also do have skewed government data when it comes to tracking these types of things those are interesting to kind of stuff like social media yes i love private in talking about social media if you want to weigh in on today's show or on the door you can follow us on facebook at facebook dot com prime interest you can also follow bob on twitter at english and you can follow me at perry and r t bob thanks for joining me today as usual that's all we have time for today.

and it's been a day of questions and answers on prime interest we began by going bloomberg be will demand the lack of disclosure over a major city group settlements and how long will spanish banks going to need to buy bonds to hold down interest rates along with the fact that for that matter and statistical release answer just how high unemployment and europe is something the blocky buyers aren't happy with much less the impending druggy printing bonanza we are stand for allow about the case for credit unions and why the job yet to be employment aid and we thank him for his satisfying response finally we questioned whether what or bubble pretends a real one and answer just a few of your questions thanks for watching come back next week from everyone at prime interest i'm sorry i'm boring. have a great weekend. the

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coming up on our t.v. how after nine eleven the white house gain more power in the war against terror now lawmakers are considering ways to limit the increases and presidential power but clarifying certain roles really make a difference or just to have. all five point. the obama administration nominating it acts bush official to be the new f.b.i. director james comey is facing criticism for signing off on secret wiretapping while he was deputy attorney general will dive into his resume and look at some of his past decisions. a ratings freefall the left leaning network m.s.m. b.c. is facing a rating slump the news network had dropped a poor place in prime time we'll explore what may be causing to decline later on the show.