opinions that invigorating. choose the stories that in high school life choose me access to your daughter's. good afternoon and welcome of prime interest i'm harry and boring in washington d.c. and let's get to today's headline story. is goldman knight gary gensler is on the way out as chairman of the derivatives industry regulator the commodity futures trading commission this is after spending the three years implementing dodd frank recently suffering a losing battle with fellow commissioners and also out through the office of inspector general released a damning report in may on his performance or lack thereof in the m.f. global debacle a front runner for his replacement is yet another ex goldman sachs employee amanda

and tara though she spends most of her young career as a senate staffer but according to the huffington huffington post tara has a little experience and the actual financial regulation sounds like a perfect match. and insider trading is still illegal but according to a wall street journal article trading firms have been giving economic data ahead of everyone else for happy feet for five thousand dollars a month it was a one thousand and twenty five dollars connection fee waivers will give you gradually followed consumer sentiment reports two seconds of the public two seconds might not sound like a long time but is an eternity for high frequency trading strategies that can make the millions of dollars by front running at the non premium subscribers and even public report is compiled by the university of michigan which says it relies on

private funding because there's not a governmental agency it's all perfectly legal but we do remind viewers of when the fat released a report to select group of brains brokers and hedge funds by email a day early and. role maybe the fed isn't a governmental agency either. and here is a listen you are prime interest. but credit rating agencies are an important piece of the financial industry and investors rely on them to assign ratings that reflects the risk associated with the security well there is a bit of

a cozy relationship between the government and the big three rating agencies s. and p. fitch and moody's the government relies on the rating agencies to rate sovereign debt what the same time the big three rely on the security and exchange commission to license them additionally private firms pay the big three to rate their securities as frank partnoy said making them potentially beholden to the same people whose bonds they were raiding there's a sort of like paying your teacher's assistant to grade your final exam but this isn't how the rating agencies always worked investors who relied on their data would purchase of subscription to their services and one license rating agencies still operates like this today now there's been a lot of controversy surrounding the industry says the two thousand and eight financial panic the big three basically rated triple a bonds junk securities they

pertain to the financial system or earlier i spoke with financial analyst. and asked him what was the fallout from this and has there been any reform and here's what he had to say. struck me from the standpoint of the retail investor but there has been really i knew full well something beyond the politics are you sure there's still the standard racing agencies and the cops the ratios of the banks and various financial institutions pension funds insurance companies still dependent on racing's all of these racing agents and i don't see really any difference from the standpoint of the retail investor least well dodd frank eliminated the ability of and situations to rely on rating agencies when valuing certain security it's now has their relevance dissipated since the financial crisis or you don't see that i don't see that it's whole i mean look at the your reporting on simply use changing

all of the ratings of u.s. government bonds i mean this seems to be followed as if it still mattered so. i really don't see much of a difference it's all ok and there are different models for the rating agencies and the differences revolve around how they get paid can you explain the compensation structure for the three majors as m.p. fitch and moody's seems to me that they're. pretty clear that since the nine hundred seventy s. the racing agencies. they're paid by the very institutions so that they rate so the banks you know all the governments if they want to you know if the banks want their bones. if they issue mortgage backed securities for example pay the racing agencies to rates those bonds so that seems. problematic to say the least right and one of our alternative compensation

structure is used by such as you can jones. i think you know to me it seems that there was a market process before the ninety seven series which was the. racing agencies were paid by investors so those who wanted to use. the racing agencies. you know. as independent research they paid for that research and that seems to me the real model the market model is to let the market pay for whatever services it wants no government regulatory agency. control provide exactly of the market power at the very wouldn't otherwise and now the s. and p. made headlines in two thousand and eleven when they downgraded u.s. braun's and this caused significant market turmoil and some have speculated about the lawsuit that followed this from the u.s. against the s. and p.

was kind of been abused and also you can jones downgraded the u.s. just a month before the s. and p. did and a few months later they faced an investigation by the c.c. have speculated that these events could be related do you think there's any merit to that. i mean you know why except for goldman statements at face value look at the timing and so on. you know whether it comes to regulation of all these kinds of things people being prosecuted for. racing the government own so i think it's not too much of a stretch to assume that the government has extreme influence over how all these racing agencies are going to break. the government's gone. well and a more recent development the s.n.p. upgraded the us from negative to stable they were cited economic resilience in

monetary credibility now what do you think of all the grown you know. various market players and large market players going to. you know the analyses. however they will from the standpoint of really just a regular retail investor or a consumer investor. i really don't see what difference it makes i mean government bonds for example treasuries are still at the top in terms of capital requirements and you know in terms of capital ratios so. you know it's really a lot of crude oil that makes no difference there's still ray said far too high i mean the fact is the government is totally in solvent and any independent analysis will tell you that you know all of these programs social security the government's reco of deficits. and so forth no end in sight of the reality is the government

is bankrupt and it was like the markets agreed with you because they didn't move eve there but when you're one of the provisions in the basel three framework is that. for banks the most government debt is considered risk free this would improve what's called their risk weighted assets can you explain in basel three and how that works well you know this and to me it is sort of the finer points of what makes a difference with regard to the banks and how they're going to. allocate their console ratios and so forth. from the standpoint of a retail investor it's really you know i don't see what difference any of that makes whatsoever i mean the plain fact is the government is bankrupt they're either going to default. all they're just simply going to print up the difference to some

point and you know it could take a long time but there will be a currency crisis so with that reality in mind and with the reality in mind of the of the major banks essentially bankrupt our own federal reserve life support. you know possible three caps the ratios and so forth that certainly makes a difference. you know it's not clear that it makes that much of a difference now there's a bill before congress called brown better it would scrap basel three and get rid of risk weighted assets away and implications could this have on the demand for sovereign debt. to you know to me the key i don't think it's going to have that much of a difference and make that much of a difference i mean the reality is the federal reserve is there to cover the government's deficits the government is going to try to increase taxes to cover as much of it as it once it's not going to cut spending on total forster. in the meantime the fed is going to cover whatever funding problems the government has so

you know various regulatory changes is. you know all all these sorts of things that do not address the power of the federal reserve to simply monetize the debts. you know to me this is some rearranging deck chairs on the titanic and you've mentioned before that banks are subject to different account rules and then other and astri's i can you explain you how this well for one thing there are a number of you know things that you could say for example of the assets of the banks. also in some sense its liabilities you know if you look i mean for example let's say that the banks can. you know they'll have a reserve base on which they can create credits assuming there's market demand for that credit and so forth but the point is that supposing the banks lend. you know

some amounts of loans. and speaking of a commercial bank at any moment depositors could come in with rule that my. that's . you know as a low so did not send sea assets and liabilities are mixed together and then you have various things like we call for creation where the banks can pledge someone else's assets as collateral. the drug really contract but in any other business so you can't sell someone's car for example and if you did that would be fraud and the car would still belong to its actual it would have to stop and here we have five cases that really a very interesting accounting rule that banks going to take advantage of this is sides are kind of well he's a financial you know and. and stay tuned up next we're going to speak with the president and c.e.o. of the solar energy industry association of a drawing of

a rash to discuss the record growth in the solar industry then prime interest producer bob inglis and i will be told over the stimulus policies of adding on and how they are causing the women to hike up their skirts in japan was facebook announced they're adding hashtags to their site you won't want to miss that.

the highway bill some the bones of its makers the winds through one of the wildest and most beautiful regions of russia a place that's home to less than a million people and the keepers of the great frosts. join me james brown as i travel to the coldest inhabited place in the world. and meet some of the toughest

people and hardest time is on the planet. just make sure that you keep your eyes on the road. race to the poll of polls only on o.t. . the solar industry is seeing a record of growth and it's one of the fastest growing industries in the u.s.

according to the q one report from the solar energy industries association solar energy installations grew thirty three percent over last year with about one hundred nineteen thousand jobs in this space employment has increased year over year for solar workers although installation and maintenance is still expensive for solar energy costs are following the average cost of a completed p.v. system decreased twenty four percent over the past year according to the s. cia now here to discuss the solar energy industry is the president and the c.e.o. of a round the rads thanks for coming thank you for having me very can you please just quickly go over the mission end of the cia were the national trade association for the solar energy industry and in that capacity we do all the lobbying the market research the communications work and broadly speaking we work with the fifty six hundred companies that make up the solar industry in the united states to try to

expand the market for solar energy and alternative energy stories has certainly grown significantly in the past couple years all the respect to solar what types of trends are we seeing right now where we've seen record growth over the last four years in large part because we've had stable policy and what that has allowed companies to do is to scale up their manufacturing develop new business models to a. new investors and so what we have been as an industry is an industry that's attracting more capital more venture capital and more actual development capital in almost any other in the united states and the reason why is because solar is a safe investment and so very quickly we have found that the solar industry can scale up both in the residential market the commercial market and the utility scale market here in the united states and how does that compare to other alternative energy energy such as wind well let me give you a perspective the first quarter of this year we installed seven hundred twenty three megawatts and we hear a lot about win a lot about natural gas but in the first quarter of this year the solar industry was forty eight percent of all new electric generation installed in the u.s.

so fully half of all of the new electric capacity that's going into the u.s. is solar so right now we are competing very aggressively with wind as well as the natural gas industries and the trend over the past several years is that nonresidential or commercial is higher and that's eventual and we can see this on this graph that we compiled from some data that we got from that. but in california it's interesting because the trend reversed residential was higher than commercial and california also receives a thirty percent federal investment tax and this may be part of the reason why you know reversal in the trend you have insight into what's going on in california sure so first of all there is an investment tax credit it's a thirty percent investment tax credit that's available for residential commercial or utility scale projects so everybody receives that tax rate regardless of what business model it is or where you are in the country but what's happened in california as well as a lot of other states is that there are new kind of innovative business models that

allow you to lease a solar system rather than actually purchase a solar system so if a system was typically twenty five thousand dollars that's a lot of money to pay upfront but a lease allows you to do is to put solar on your roof with no upfront cost and to save somewhere between ten and twenty percent off your electricity bill from day one so that. business model has really developed and come out of california and now represents more than ninety percent of all the residential installations in the states of california and arizona would become very popular very quickly and he also talked about the investment tax credit and its role in the solar industry so in two thousand and six the first solar investment tax credit was put in place for the first time in literally a generation and since then we have seen a compound annual growth rate of seventy seven percent which is just absolutely remarkable for any industry to see that kind of growth and the reason why is not because solar receives

a huge amount of subsidy that subsidy is actually comparable to what's been enjoyed by the oil and gas industry since one thousand nine hundred sixteen the coal industry since the thirty's the nuclear industry since the fifty's but what it really is is it shows that people want to employ technology that's clean they want to employ technology that they can put up on the roof or they can put it in their neighborhood they want to put a kind of advanced twenty first century technology so we've seen the rapid growth rate due in large part to the stimulus that's occurred from the investment tax credit and people seem to be a favorable because it's clean do you think that we would have seen this type of growth eventually without the tax credit eventually but as a country we have always invested in our energy infrastructure as i was pointing out we've been investing since one thousand nine hundred sixteen in our oil and gas industry but what's important is that we have parity that we have good policies that support all of the energy technologies that we build our infrastructure using the greatest resources that we have and i think that is an important point to make is that we have more solar energy than any developed country in the world yet today

solar still represents less than one percent of our electricity generation so the ability for this industry to scale up and tap into our vast domestic resource is there well how do manufacturing standards and the u.s. compare to those of broad i've heard stories of companies abroad that have a guarantee for twenty five years. but after two years the panels have to be replaced well almost all panels that you buy today photovoltaic panels come warranty for performance for twenty five years that's a warranty for performance so if it starts to fail either the amount of electricity coming out of it decreases or it actually completely fails they are going to honor that warranty and replace it now the big question is do you want to get in a situation that has a panel that is going to have to be replaced and the answer is absolutely not as there's been global competition and manufacturing is scaled up there are companies who have started to take a couple of short cuts using cheaper materials and perhaps less quality materials and so it's really incumbent upon the industry to be careful about what you're

installing make sure every single panel is tested before it's put in place to make sure you're buying from a company that has a good balance sheet and a good warranty or at least an insurance policy that will make sure that they can replace those panels if they ever do have any problems and we have just under a minute now where do you see the future of solar going well it's very bright what we installed this last year was about three point three gigawatts we expect to be installing ten gigawatts on an annual basis by nine hundred fifty by two thousand and fifteen and i think what's really important is that we're creating jobs in this country and we're going to see more and more jobs created that are putting people back to work in the construction industry these are electricians roofers and you can see more companies really employing solar like wal-mart and google and apple really the icons of american business and finally what you also see is the military deploying more and more solar and they're doing it to keep the troops safe overseas and they're also doing it to lower their energy costs here in the united states so i think very quickly you're going to see solar energy ubiquitous on the roofs in

the united states thank you so much this is the president. thank you for having me . this time for the daily deal with bob english is let's not make a hash of this while facebook is going to because facebook adopted clickable hashtags into their social media sites the company said it's one of the many features they'll be employ mentoring hashtags are said to be fully implemented in just a couple weeks worldwide now if this seems familiar it's because twitter invented hashtags or at least brought them to prominence and do you think facebook is just kind of piggybacking on something in their company is starving for revenue now that

they've lost some of these social media games i mean what are they trying to do here but i think facebook is just facing competition which is a good thing because now they have to upgrade their systems facebook finally catch up with twitter and will be easier to use site we can use it for more things like hopefully and i hope everybody follows us on facebook but i just don't see it as being i don't see it as being a real time forum where you're tracking events and you have people able to interact the way they think it's going to be but i'll let mark zuckerberg figure that one out well see where it goes we know there there's a stock price is not doing well so when i call the i.p.o. the face plant so it's maybe forty percent now and that's why investors are suing but. company look they're going to be ok in the long run i think they'll figure this one. doing fine but over in japan and there is a new a girlband as caught our attention and they change their outfits and response to the nikkei stock market when the market is up so are there. so the loose economic

policies. are just about a scandalous as the girls deciding to go completely skirt was what their interview at the new japan times the day the nikkei was thirteen thousand just to pull a few quotes from this because it is a japanese they're saying monetary easing construction. bonds let's just revise the bank of japan law let's aim for three percent growth let's go this sounds pretty motivational well and markets i don't has a very bullish near term target target of fifteen thousand for the nikkei and if the nikkei reaches this the girls will take all of their good intentions to the streets of tokyo and deliver cakes to the public so they even put this target on a t. shirt i would love to have. the group on prime interest. i'm sure some i think their fans ninety five percent male between the age of eighteen and fifty ok well here is the deal if the dow hits twenty thousand dollars i'll

take off my tie but that's that's about it but what do you think about what do you think about this trend coming to america i mean in japan they have these pop groups that are kind of very neat and they sent around a particular idea what would you think would happen if we had a pop group in the u.s. talking about chairman bernanke at the fed i think would be more of it and i think that's part of the reason why we talk about him so much here because not enough people are so good p.r. especially when you're talking about the federal reserve that just kind of flies under the radar a lot of times well that's what some people say i don't know if well that is what donald trump says is all present good in practice except for bad press which is still good press so i think you know whatever we can do is that speak. like this confuse everybody and then speaking of confusing everybody i just want to say we have an epilepsy announcement next week and we're looking forward to covering that and i will be at the new york stock exchange that day and delivering that we'll be watching at some point and we also want to have another announcement larry king has

a new show politicking appears tonight at nine pm. eastern time right so we're excited larry king is finally joining the family yes here with prime interest yes. and thanks for watching if you want to follow us on facebook we're at. book dot com slash prime interest and you can follow bob on twitter. and you can follow me at perry and our to bob thanks for joining a gym. and have many a day of movement prime interest gary gensler is it to believe the see you have to

see his replacement as that to sail through the senate the economy towards shore move the markets but we learned what a price you can get the private ones at u.h.f. seconds early and saw both of us on a tour of the ratings agency and it wasn't the scenery that got our attention the road rash explained how those photons traveling up the speed of life are powering like never before finally bob inglis and i took the bullet train to tokyo to find some stimulus loving singers thanks for watching that make sure you come back tomorrow and don't forget to check out the new show politicking tonight at nine pm eastern from everyone at prime interest time period boring have a great. when

the president does it just means it's not illegal these are the words of richard nixon brock obama appears to be saying the same depending mousa be wood products or bailouts of citizens of the world defenders of prism in some form and claim these programs protect large but who is looking after protecting our rights. i will be very. very. very very good. thank. you and i think. seriously very very. thankful.

if. you want me to be. giving. you actually move the move. dangerous experiments on prisoners they want to make money and they have healthy guinea pigs in the regular society they're not able to use prisoners i mean while they wish they could. drug tests on human guinea pigs. to call deadly pills. now subway he was killed. he didn't pass away like him. is pharmacy really about helping people.

the u.s. will provide military aid to syria so rebels are claiming it has evidence that the assad regime may use a chemical weapons muscle called washington's reasoning flawed. plans to develop a blog in istanbul that calls to weeks of protests across turkey have been for a second by this nokia agreement on how to prevent anti government demos continuing . and as iranians elect a new leader we examine the controversial legacy left behind by the nation's outgoing president mahmoud ahmadinejad's.