good afternoon and welcome to prime interest i'm perry and boring here and washington d.c. let's get to our headline. demarco van ian friday made headlines back in september of two thousand and eleven when he got the f h f a to sue 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 h f a might never disclose what's her well i guess we'll have to see if mel watt bring some transparency to the agency when demarco 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 let's say 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 brink birds of prey mansel district to disrupt business activity and according to an. occupy spokesman the aim of this blockade is to prevent normal operations at the e.c.b. we're 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 banks having been have been aggressively buying the country's own gone and this is why yields have remained low despite turmoil and other european markets when you ask

what's the big deal. well 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 carvel's that benefit the very firm 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 a private sector jobs in response congress passed the jobs act to help small businesses gain access to capital along some other provisions here to discuss is john barr allow from the competitive enterprise and says here it's thanks for joining thank you barry and great to have you great to be on so you are supporting the rand paul mark udall 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 are you for it one of the things that it is that you measured rand paul republican of kentucky and mark udall democrat of colorado in the senate it's also one of the only bills i would imagine maybe one of the only

bills ever. to have darrow. republican of california and is a fellow california senator maxine waters are on it but everyone is saying 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 unions face 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 inherently 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 or 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 and 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. to a credit union implosions i mean there could be some bad business loans as there can be some bad work it has 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 a hospital or a medical device company and it was 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 moxon 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 advantage is to credit unions lending over 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 the there are specialized in what they are and what their members want the members of the members run they could and 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

the types of industries 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 you know 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 entrepreneurs 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 constructor 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 is kind of on the tax reform well that's a good point you know the banks have received over a trillion dollars and in federal fines intervention in the bailouts 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 in the capital markets he described in some of the ways that this but occurred 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 honest 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 green tech for biotech. some of the most prominent that have been specifically utilized provision of the jobs that have been kayak the travel search company and five below the retailer and they've had successful i.p.o. . always there investors have grown wealthy it's were excessive with the 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 going on but i think that the jobs act is a cure the people can grow wellesley with the next facebook as they grew because i would listen to the go into the public be accessible the public in a smaller stage just as companies in the eighty's like home depot and ben and jerry's were ben and jerry's 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 companies do which would reduce transparency and maybe increase the instances a fraud 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 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 the call 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 total control of 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 it 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 agnel mentation it's really been a slow process the former chairwoman of the as you see mary shapiro she didn't want to and harriet's. an anti investor law. 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 she's you know because investors are shut out that you can buy you could buy a gas station for instance on e bay but you can't have that gas station want to sell to a group of people or investors you know they have to go through all this red tape so what a way at 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 and 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 this 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 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 know ordinary investors and the investing public what it is is just simply allowing a credit investors people who solicit them to advertise generally but the

investments would still only be available to these or 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 all. so been that hedge funds and you've had you know peter peter schiff who has a hedge fund and others and they have every refractive even talking to the media they fear that they could be you know solicit that it 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 automatically 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

a way you area is down to allow the competitive enterprise and sale. and stay tuned because of next we're going to get the details of how general petraeus landed a gig at k k r they were going to highlight how twitter is fighting at what he battles say to. seals are born to run on the ice fields of the white sea. throughout the twentieth century the pilots were hunted for their snow white furs. russia imposed a ban on this trade and hunters have since been replaced by tourists but will these

pups stay safe forever. saving seals on r t. children from want to financials and especially that's how it's going to. shouldn't leave in the north finish for a long road should be raised in a family during these years a little eleven children have been returned to play dumb to. the line to eight percent of the children from zero or more from each place to. which the child has brought us so many.

speak your language as i think about the will not advance. program some documentary some spanish more matches. a little tune to bangalore story. told to spanish. visit i don't. know private equity as a realm of investment that's largely flies under the radar but it's one of the driving forces and our modern capital markets a leader in pioneer in this field is

a giant firm of k.k. r. and co would you boast a history of over four hundred billion dollars in 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 general 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 but was rapidly promoted for service in the middle east from brigadier 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 and his bronze star of the medal with the valor award was questioned by several former army

officers according to business and cider but betray it 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 this incident. in the middle of two thousand we 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 ammunition but the liberal use of discretionary cash would become criticized after 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 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 e-mail. 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 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. en site or you are not protected k.k. 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 and it's time for the viewers to speak their mind and get a response right hopefully then up to me 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 d c general counsel overseer gary gensler worked under corazon at goldman sachs so he recused himself of protecting and protecting itself of the caves he wants to know if he was a nice bit of scratching each other's backs instead of actually doing the job if you 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 corazon 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 truly and 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 act and that m.f. global only then of course only had four hundred securities accounts versus thirty eight thousand futures accounts so the whole thing is well it was a mess from the beginning a lot of people were damaged by this i'm 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 about monetary supply inflation not price inflation and keep in mind because of the decentralized nature of mining means that people can't sell all the bitcoins mine per 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 were 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 mine now 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 minor. ok so these people are verifying transactions and as a part of that they get rewarded to not listen to what it means to have it and to my what's mine that coins and they 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 encryption and it takes a lot of hardware and software resources energy energy cost to run the computer to be able to do this now that you 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 tracking it here on prime and just now we want to talk about this and some are speculating that we're in an equity bubble now paul paul hoxton 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 being 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 said 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 justin bieber called 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 and invest in companies and this is something we've been talking about we we had the a.p. twitter you know what actually put the hash tag bubble and twitter and so i came up in a lot of it had to do with the financial markets ok 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 see if social media yes i love talking about social media if you want to weigh in on today's show or on the do or 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 thanks for joining me and today jill that's all we have time for today. it has been a day of questions and answers on prime interest we began by going bloomberg be will demand at the lack of disclosure over a major city group settlements and how long will spend as banks going to need to buy bonds to hold down interest rates along with the fad for that matter and statistical release answer just how high unemployment in europe is something the blocky buyers aren't happy with much less the impending druggy printing bonanza the

way out for a while about the case for credit unions and why the job had yet to be implemented and we thank him for his satisfying response finally we questioned whether it's what or bubble or attends 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 i have a great weekend. wealthy british designer not. the time to write the money.

market why not. why no one should really happening to the global economy with my. there are no holds barred look at the global financial headlines tune in to cause a report. to go to the. science technology innovation hall the list of elements from around russia we've got the future covered. but i will only react to situations i have read the reports to push the know i will leave that to the state department to comment on your latter point to say it's ok because on the docket else i. think you know more weasel words. when you have a direct question be prepared for a change when you throw

a punch be ready for a. pretty speech and a little down to freedom to cost. the civilized world produces more food. while people die of hunger in other countries. millions of victims every. where immediately is the most. flood or droughts to blame. it was a bad year without a train. we couldn't anything to. do with it all there was great hunger. the filth comes too late and with no good intentions. charity diplomacy and business to get. a.

thousands of protesters to descend on europe's main banking hub frankford binding the pressure on financial institutions. defending the wealthy while pushing millions of people into poverty also. by riots a panic and term goal spread so through turkey as a protest against the destruction of an instable pol gascolator into a nationwide display of anger against. the u.s. confirms an american woman has been killed in syria reportedly while fighting alongside the rebel forces there an incident that illustrates the growing international impact of the civil war. and hunger strike you guantanamo bay detainees do.