fifteen billion dollars under management a grand jury indicted the firm alleging securities and to wire fraud and the head to find it may have to discard hundreds of millions even billions in profit and mr cohen has not been self indicted in fact the indictment doesn't even contain his name you simply refer to as the as they see owner so it looks like you pulled the cords are in for no but he made a civil suits from the investors that may not get their money back by the way the soon to be defunct hedge fund accounts by some estimates to be ten percent of daily stock market value at the new york stock exchange don't worry though high frequency traders have promised to pick up the very end boring breakstone insider trading later in the show and so on the very same topic but it won't be boring and with all the talk of tapering quantitative easing someone has decided to quantify just how much of ben's money branding has given its corporate profits according to the director of market strategy and the brokerage firm

a new edge that's about forty seven percent of the earnings of the top five hundred companies two thousand he said to me as like an athlete on that steroids pay evelyn's armstrong and get his tour de france titles and for doping maybe we could apply the same strategies to his chairmanship finally the super rich are heading for the exit in switzerland after getting burned by swiss bankers who sold them out for authorities for tax evasion hundreds of billions of francs like police switzerland not only are they withdrawing cash but they're doing safe deposit boxes most important in the story though is what they're doing with their tash according to the spiegel story they're investing in fine art fine wine and classic cars so gold isn't the only safe haven always follow the capital and right now it's an exit from cash we'll talk about the eurozone debt crisis with author and professor like this in just a minute. and here is one thing you are interest. i

. euro zone sovereign debt reached an all time high in the first quarter of this year this is despite major government spending outbacks now today the i.m.f. said that the further central bank interest rate cuts might be necessary so what needs to be done to spark growth in europe earlier i spoke with jani but a vikas a professor of university of athens and author of the global minatory now i first asked him about the most recent version of his article a modest proposal for resolving the eurozone crisis is what he said. you know these of this

state of advanced disintegration that it finds itself in is because we have four cracks that are intimately connected to one another where the banking crisis as a result of the fact that we have a common that it's a. completely separate banking systems imagine living in the united states in two thousand and eight that the state of nevada had to salvage their banks about. and the banks and that along with it and that would have caused a dominant factor destroying the whole of the dollars of the united states of america so we have to do that. the second crisis we have is a crisis problem that we have a common currency but we have what i call the but in support of perfectly separable debts so every euro debt to the euro zone belongs to a single family and like the united states where you have a common currency and you have a common dept in the federal governments that in you have those no that whatsoever which is which sounds like you know from and what at least the point of huge sums

by each of her debts but when you have a situation where you've got different states that belong to the eurozone and they don't have a federal. government or for that matter but if it goes up a central bank to back the map at some point when they can't for some reason and of course that isn't what's the major crisis when it comes to finance their debt there could have been it isn't the only thing that can do it just go bankrupt default but that would set off a chain reaction of defaults that would bring down of think so we need to calm them down for the models because it suggests a very simple way of the central bank of europe the e.c.b. to. do act as a go between member states and financial markets. getting loans on the behalf of most of us they got us there and having them service them. so hopefully we'll have an investment because i saw what was happens happened it's

happened everywhere when you have a financial sector implosion like the one in two thousand and eight then gives rise to early can only crisis when the crisis goes from wall soup of main street the first casualty of course is investment best and drives up and when you've got these banking graces and a segment of dead. europe there are places like greece portugal ireland that need the most investment not to be. able to produce incomes that will help them pay their debts and look after their banks into the other ones that get the least so what we need you get is something like the new deal. we need an investment led to the cavity problem and our suggestion that models proposal is that you have been investing back in the bag you know wonderful institution of science in the world bank and all that we need to do is simply go allow it to job i'd bring about the government you don't we're not doing political views. now much

to be sure. let me read a quote to you that you said the euro zone feature is a central bank with no government and no national governments with no support of central bank arrayed against a global network of mega banks that they cannot possibly supervise are you advocating a fiscal union here and is that is that even feasible in the current environment when there is so much hostility among some of these member states especially between germany and the periphery. in short not ok and that is clean but this is not part of the modest proposal and what makes it more this is that we're not out of the gate that you've just been you know what we're saying is that we can deal with these problems without moving in a flood of that action so that you know you'll be inside the bag if you recall the point i made earlier. would not be financing numbers things you wouldn't have germany financing or buying the debt or what you would have is the european central

bank. utilizing. good name international markets to borrow effectively on behalf of member states states but then have them at it pay those loans it's a bit like you know parents good parents. where the nets. securing a mortgage and we have a youngster who was very low and therefore the interest rates to pay for their mortgages. and then have the youngsters. so the beta looms it's the only way we can salvage the news and without that this was going well over the day are we just increasing or we're shifting the burden of of borrowing from one entity to another maybe you can explain for our viewers how this is your modest proposal is a little bit different than what's going on currently in the in the euro zone. what we're doing now to increasing debt massively because in its wisdom the

european union has decided to be consultants insolvencies of banks and insolvencies of states by lending money to the insolvent states and you know there is a suicide of them policy. because the condition for lending that. uses the incomes from which the old and the new debts will have to be debate so. adding debt on deb's in an unsustainable fashion is precisely what's happening today and what we're suggesting in a modest proposal is that we do the opposite that we'd find a smarter way of reducing the top of that burden of the eurozone over the next twenty years by having the you know be in central bank. played a role that's mediated between member states. and money markets for the purposes of actually shrinking the amount of interest that would be able by very member states of the unit and also if you take into account the other policies that were put you

can forward to the investment led government program all that the purpose of that is to shift to idle savings and we have massive i've been saving saving a lot of that amount of money in year. too scared to be invested in quebec. by having to get opinion vest and banks that mountain of i've been saving simply weston's you journey on which the debt would be of use and i would add that a lot of the hosts. viewings are actually at the federal reserve we learned these foreign branches of these banks in europe have over a trillion dollars just laying fellow at the federal reserve but i want to get to some of these alphabet soup names are a lot of people in the u.s. are going to be familiar with some of these programs we have the e.c.b. the e.i.b. . how do these fit into your particular program in which is the most important.

not only important. these are the institutions will have and will have to use them we have to do grow them ration and the problem so far is that we have used the institution that we have in there and i know superman. and we've created units to. which we've founded on sound and therefore they're incapable of being strong enough to be giving them so the whole lot of other moms proposals how to deploy that we should look we have in a manner that allows them to go to job and that is to defeat those three four crises that. it's overcomplicate in europe we have a central bank like the federal reserve. we have. you have been in vestment bank which can be thought of as if you want.

potentially a new deal agency or effecting public investment it's been doing it for twenty five thirty years very successfully and you talk about the infrastructure of the new deal like the tennessee valley authority i mean are you talking about this is what europe needs to be doing in order to invest in itself. so that if you look at the map of europe for instance you find that the eastern part. which is part of the european union. has infrastructure that dates to the nineteen fifties and sixties. there's no fast lane connecting let's say greece austrian german and if such a train were to be built there are lots of us train guess who would benefit the most would be greece and. it will be germany because it's interesting because doing it and that kind of investment would be mutually advantageous for the whole of europe all we need to do is simply allow the you're going investment bank to go ahead and make that investment you have been investing in what bank can make the

best and wants to make the best me but we still have you know we have a silly rule in europe where every year you be investment has to be called financed by the national government we only have about thirty seconds left but who is era do you have with this modest proposal are you making any tread treadway whatsoever right now. very interesting story on the one hand kinds of closed doors there is a great you know interest you the most proposal but when the cameras are on and the microcosm switched on in a press conference. it's dead silence because. that was my interview with you on his way to fight this professor at the university of athens and author of the global minatory now you can read his modest proposal on his website but if i could you coming up area on breaks down insider trading and not just the hedge fund kind there's more of the to it than you might think some even argue it should not

be a crime at all after all those in congress seem to get away with it legally and with impunity then i do will sam sites about the very same subject as well as a rule do all of the year big beer versus the big banks so let him if you got him and stay two. people's wages that going doll the mount of olives people working is going off. they're doing jumps and they increasing the height just for a small box apartment of extortion at rent and pretty soon people are going to be stuck and trapped in a cycle of oppression and a new leader is going to come in he's going to flip the switch and it's going to be tough to keep tearing.

i would rather i asked questions to people in positions of power instead of speaking on their behalf and that's why you can find my fellow larry king now right here on r.t. question more. well see british science. is not time to. go to. market why not. find out what's really happening to the global economy with mike's guns or a no holds barred look at the global financial headlines tune in to conjure reports on our.

as a seed capital advisors has been one of the most successful hedge funds on wall street accounting for anywhere between five and ten percent of the trading volume on the new york stock exchange and exchange for consistently high returns as they see charges their customers some of the highest fees in the industry however the firm has been under intense scrutiny over insider trading allegations and april as they say capital settled with the security and exchange commission and paid a six hundred million dollars civil penalty but apparently that was not. of justice because today a federal prosecutors filed criminal charges against the firm alleging they were involved in a. gaming hundreds of millions of dollars of trust on its profits

these charges could put billions of dollars at risk to be forfeit to the government the feds also want to ban and the vidual residing inside greenwich connecticut the s a c owner for managing client money for the rest of his life. individual they're alluding to is stephen cohen insider trading is a very serious crime with civil and criminal penalties as thomas the choreo quoted in the wall street journal the message that's coming allowed in clear from the government is they're not going to tolerate insider trading on wall street to better understand what exactly as they see capital advisors did wrong let's break down the serious crime by definition insider trading is the buying or selling of security by someone who has access to material nonpublic information about the security essentially it's buying or selling stocks of a public company based on information that the public does not have access to the rules defining who is considered an insider are complex they could stretch as far

as any person related to the company including broker employees and family members but in general and a vigil insider would be any individual who gains nonpublic information knowingly and then trades on that knowledge of the justification for in insider trading being illegal is because if you have inside information it would be fair it's other investors who don't have access to that so also believe it raises the cost of capital and decreases overall economic growth as they see capital advisors is alleged to have hired numerous portfolio managers and research analysts who are engaged in a pattern of obtaining and tighter inside information from dozens of publicly traded companies and at times the recommended trades to the f.c.c. own are based on inside information specifically what as they see did it was they hired individuals who had close ties to the industries they were involved in these close ties could include someone who worked in the industry beforehand or simply

someone who has colleagues and friends that work in the industry they treated in other words employees were being paid for the relationships they have made throughout their careers but some argue with this should not be a crime because there are no victims involved here. making economic sense marie rock hard row a major difference between the crime of insider trading and other crimes is that insider trading is a crime with no victims very simply it's using sapir knowledge to make profits this is after all is what entrepreneurship and the free enterprise system is all about he claims there are no victims here because both parties the seller and the buyer profit even went to third party is involved you want to trade based on luck capital resources are better to be in the hands of the knowledgeable and then the lucky he goes on to make the case that in all other sectors ignoring business men would go out of business but only in the financial markets do we want the ignorant to have access to limited resources by

a good luck limited capital resources should be rewarded to the most efficient and who understands the market's best no one cried criminal when the top securities regulator cashed in of the top securities a lobbying firm but when wall street hires someone for their connections and relationships we call their private illegitimate the revolving door is present in all sectors of government included but it seems as the latter who exclaims attention and punishment and that's the breakdown of insider trading now let's get to today's a legal. joining me is political commentator sam sax you little bit of trouble there i'm feeling comfortable in here a few times to sort of your jacket off my parents lose some time to the very first

story big banks meet big beer large beer companies including miller coors are putting pressure on the federal reserve to crack down on wall street miller coors a major aluminum buyer and that's the fed to toughen. oversight of banks like goldman sachs and j.p. morgan both banks are accused of manipulating aluminum prices by controlling large metal warehouses part of the london metal exchange network your thoughts so basically we have banks running a racket that's screwing over companies like these big companies and other companies that use aluminum the bigger picture here is that wall street the wall street economy the fire economy finance insurance real estate used to be about ten percent of our economy now it's twenty five to thirty percent of our economy and starting to dominate our economy and it's doing that because it's preying on all the other industries in our economy through these rockets through price manipulation through all this stuff do we want an economy that functions based on

manipulated fake money or do we want to get conned me the functions on actually building stuff and actually selling and buying stuff now i don't buy that kind of on your side here but i'm just going to play devil's advocate it only adds a tenth of a penny to each aluminum can so it's not really coming through the case rumors anyway due to like three billion dollars of it to the penny adds up it's like the office space where they're just doing fractions of president superman to raise a lot of productions that stuff adds up for superman ok it is because wall street has been deregulated for decades now which is giving it the tools to be able to engage in this sort of manipulation in this position on other sectors of the ok i'm going to add to your argument here goldman sachs and i was talking about this on news the other day goldman sachs has been in the commodities industry for decades they became a bank holding company in two thousand and eight that gave them access to fed money so yes they were already big and commodities and now they're even bigger because they have and we don't have these walls that separate them from the gambling side from the depositors side j.p. morgan got into this in

a big way they were involved in crude oil when the crude went from one hundred forty five dollars down to thirty dollars they just bought cargo ships or rented and put them out to sea and waited for the price to rise and so there's an entire vertical industry now in the commodities market that's based on free money from the fed so. that is i agree the free money from the fed is making it worse for the banks and just a fact that the banks are even allowed to compete in these commodities markets is a big problem all right so we're in a little bit of agreement here or maybe allowed sort of we're just going to move on to the next subject as we talked about earlier stephen cohen and capitol are back in the lot of the light the hedge fund was charged with wire fraud and securities fraud according to the new york times the charges were filed under the theory of corporate criminal liability now this allows the government to attribute employee criminal acts to a company itself and that makes sense because corporations are people right. mitt romney about just there i guess this is part of a sweep that is doing here i know that's easy going on inside the f.c.c. doing that whole government. cracking down on on insider trading and that's so

convenient let's go after the banker criminals who are basically committing acts against other banks because the objects who are trying to get the upper hand on other bankers but let's not go after the bankers who are trying to get the upper hand on consumers and on main street right. here is a problem is it's very easy to detect insider trading it's kind of hard to go after for the d.o.j. to go after and prove fraud in intent but the securities and exchange commission has had these algorithms in place in a modern monitoring system to monitor suspicious activity before very very civilians and so it is it's all about headline grabbing and say we're doing something but they're not going after the right to go after the people who are kicking millions of americans out of their homes on the legal documents the robo signing let's not talk about the little rogue reciters i'm talking about the main see likely to be authorized that stuff going up let's go after those people and

then we can also go after the well there you have there's also the other problem of the revolving door i think one of the reasons that we're not going to as you see is not going after these big banks is i mean the current head of the f.c.c. is mary jo white she came from a white shoe law firm and was representing these guys and she revolved. those stores three separate times so the people at the chart at the head of these agencies are very conflicted they don't want to go after their fertility is it had their agencies or from these industries and a whole other component are these intelligence firms that were going to congress and these financial markets they're feeding whatever laws might be coming down the pike in congress giving that information to the banks so that they can profit off and ahead of time there is movement in congress to do something about that and then you know what has that got blown out kyra cantor thank you all right and spencer baucus the chair of the house banking committee finance committee ok we're going to move on to a final subject we've got about ninety second senator warren's proposal mccain's proposal to reinstate a form of glass steagall has attracted a lot of attention critics say the separation of commercial banking from investment

banking wouldn't prevent another crisis will it i'm just going to repeat what elizabeth warren said only that this is because she's starving because i don't think there's any counter-argument to this fact that from the founding of this country every ten fifteen years we've had a major banking panic and then after glass steagall in one nine hundred thirty two after the whole everything fell apart we went sixty seventy years without another major banking panic coincidence well i think it gets down to moral hazard when you have the federal reserve with a wink and a nod always willing to build somebody out and giving away free money that's the source of the problem now i do think that in the current system that we have we should have a wall but the thing is the dollar as it's propose is not really going to give us any better solution because it's just going to ship one side to another it's not going to put a real wall like that was in place before there's too much money at stake here no absolutely i mean when we're talking glass steagall maybe we should be talking

about the older one that was put in place that was much stronger it's hard to get something like that in place nowadays for all the reasons we've just talked about over the last few minutes a revolving door of money in politics and sam we've got a red here so if you want to weigh on today's show be sure to like us on facebook at facebook dot com slash prime into. first you can follow certain merits and you can follow me. but thank you so much for your vote of the dual. and it was an evasive day here at prime interest it seemed as though with the essays the owner is in the clear for now even though mr cohen's firm was handed down and went on burning he continues to walk towards the back door of his humble

office on constitution avenue even as his favorite toy the s. and p. five hundred has been exposed as a cue manipulated friday and the rich move towards the exit door of cash they're collecting because those horses and vented you know breezy oh and then yawn as explained his proposal modest as it may be to help your of the exit its financial crisis then we explained in just how insider trading works and who may or may not be guilty of any wrongdoing and on that note we're going to sign off thanks for watching come back tomorrow from everyone at prime interest i'm sorry i'm boring everybody.

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two people have been killed and dozens injured in egypt supporters and opponents of the ousted president clash in rival rallies. square and. move into. the u.s. promises not to kill edward snowden as it flips between good cop bad cop in order to get his hands on the whistleblower who continues. in a moscow airport. taking people's freedoms or attempting to. germany's motives or question. previously regulations worldwide to being caught red handed up in washington to gather private data. between the syrian national coalition and the un security council a day rebel group.