thank you very much janet tavakoli of tavakoli structured finance. still ahead...a well known author explains how capitalism shapes immigration. the debate on immigration has been hit on all sides in recent months. and now one author is reframing the debate from the perspective of capitalism. earlier we spoke with jeffrey kaye, author of the book "moving millions". in your book you say the global economy and immigration are linked together, how exactly? they always have been. people have always followed trade routes and companies. and they go where they can find opportunity. if opportunity moves, people will go where these opportunities are. we have always been on the move and always will be. if we think our life will be better off in another place and the risk is worth it. we will take it. you also use the term coyote capitalism in terms of the government and business actually creating the problems. you say these are the causes of immigration, how exactly does that happen? well coyote is a slang term for a human smuggler. they do not really care about the wealth o

janet tavakoli of tavakoli structured finance is here to give us her take. welcome to the show janet. let's go over the fines. citi, $75 million fine for underestimating its sub prime exposure. goldman sachs paid 550 million for the way it marketed an investment deal. what do you think about the amount of those fines? well it's interesting, because what does it really take to get the sec and congress excited about what has been going on in the market? this is the largest ponzi scheme in the history of the capital markets and they're treating all of these guys with kid gloves. and not only that, the charges that they're going after seem almost to be designed to miss the main mark. let's take an example of citi group. as you are aware, there are looking at citi group understating its exposure to sub prime. but what are the implications of that? the implications are enormous in terms of what citi group did. among other things, they should be looking at the citi group officers for potentially lying their heads off to congress. and i want to go into detail exactly

janet tavakoli. thanks so much. > > thank you. thank you bill. still ahead, what it means for your money if the u.s. edges over the fiscal cliff. that's next. fears about the so-called fiscal cliff are growing among big- time money managers. jeff glenzer, who represents the association for financial professionals, joins us this morning with the result of a new survey of around 1,000 financial leaders. good morning. what's the top economic concern? > > the top economic concern really is that fiscal cliff. that's coming up very quickly, and our members are very concerned about its impact if it's not addressed. 75% of them believe that if the fiscal cliff were to occur, that the economy overall would suffer, and 50% believe that their own businesses would suffer under those circumstances. > > how much of a role do money managers think the upcoming election will play? > > it's interesting, our survey doesn't really think it's the outcome of the election that matters so much as it is that they get past the election and the administration, whoever's ad

janet tavakoli is president of tavakoli structured finance. here is the heart of j.p. morgan's admission today regarding its near $6 billion trading loss. in the release today, the reason we discovered information raises questions about the integrity of the trader marks and sx*pgs that certain individuals may have been seeking to avoid showing the full amount of the losses being incurred in the portfolio during the first quarter. who is accountable for this? >> well, tom, first of all, that's the bomb shell. j.p. morgan just said what they said -- is that the whole situation suggests that traders were knowingly mismarking their books. now that's criminal behavior and that's fraud. so it looks as if they're going in the drek of prosecuting people. now they've already fired people. they're clawing back bonuses. but it looks as if it's going further. so the individuals involved, of course, they are responsible. now the question is, who in upper management, including jamie dimon, will be held accountable, and it seems jamie dimon should be losing his job over this. this un

janet tavakoli. thanks so much. > > thank you. thank you, bill. still to come, how decisions on capitol hill impact your portfolio. how to make it work in your favor, next. how much does congress play into your portfolio? perhaps more than you think. eric singer is the author of the new book "trade the congressional effect." he shares the secrets behind his congressional fund. how does your fund work? > > i went back and looked at the stock market going back to 1965 day-by-day, and i found that on the 7900 days that congress is in session, the market went up less than 1% annually in price. and on the 4100 days they were on vacation, the market has gone up 16% in price. so i launched a mutual fund to mimic that, and that's the strategy of the fund. we only invest in the market on the days when congress is on vacation. > > that's interesting. your fund is up 2% for the year. what does that say about our lawmakers? > > it says that this year they're having a little bit better year than most years. but, while the fund invests on a day-to-day basis, it

host: janet tavakoli, her book "dear mr. buffett." and her interview in 2009, you confine that also in the video library if you are interested in more for thought and observations. sweetwater, texas. margarita, republican. caller: thank you for taking my call. i am very disappointed because they want to give money to fannie mae and freddie mac and people who live on social security -- i know people who live on $400 a month. i know that there is no man or woman in office who can live on that kind of money, but yet they wanted to give money to fannie and freddie -- what about us? we voted for them. what do we get? we don't get nothing. we don't even get the two runs and $50 -- $250 they said they would give us. i would like to see them live on what i have to live. host: i will move on because that was a comment, not a question, to annapolis. caller: i have a couple of comments and then i have a question for your guests. henry ford once said in the 1930's that if the good people of this great nation would truly understand how banking wor

according to janet tavakoli. "aig wants to stay alive.. what's happening is that investors are picking at the corpse of aig.. money flows into aig and it flows out to trading partners.. investment banks.. getting huge paydays.. paying their employees huge bonuses. " in aig's latest quarterly report issued in august... the company reported asset sales.. generating 4.6 billion dollars in after tax proceeds... during the first 6 months of the year... aig's asset sales have been slow... because of lower than expected values for its operations... and hopes are dimming that taxpayers will actually see the entire bailout money paid back. "do i expect the 180 billion paid back.. possibility.. but the interest behind it.. that remains to be seen... i don't see how that could happen unless the values spike and they can sell at a higher price " critics believe taxpayers.. will likely never get the best price for aig's assets. "if the 180 billion is ever paid in full.. it will be because the 180 billion in taxpayer money is disguised as profits at aig

. >> janet tavakoli: this was a massive ponzi scheme.nd it's the biggest crime against the american economy in our lifetimes; in fact, ever. >> safer: janet tavakoli is an analyst specializing in derivatives, the exotic financial instruments at the heart of the meltdown. she argues that the bad mortgage loans that fueled the crisis were repackaged by investment banks, sliced into increasingly complex derivatives, and resold to other investors, even though the underlying mortgages were often virtually worthless. >> tavakoli: you had various traders buying each others' products to artificially keep the prices up so that the bubble didn't collapse. >> safer: not only that, but the mortgage derivatives being traded were so mind-numbingly complicated, nobody understood them fully. certainly not the pigeons-- the buyers at banks, mutual funds, pension funds and insurance companies who wound up holding a bag full of worthless paper. but these guys are smart guys. they're all graduates of the finest business school, correct? >> tavakoli: yes. if

janet tavakoli is with tavakoli structured finance and rob stein is managing partner at astor asset management. both will be welcome to the program. let me begin to janet this quarter of goldman sacks in numbers $13 billion in revenue is this a typical of how banks have behaved in last quarter of? if it is a bit a typical gold demand has done a fabulous job would generate revenue. what does said there is atypical in other ways too. because they have managed to remain independent and they have managed to get a lot of concessions. if we've given them a lot of belau money to the front door in the back door and they're looking to pay 49 percent of the revenue out if as compensation this house must have reserved for compensation. is one of those, traverses the i've mentioned in let me ask you will return to that issue in a moment but aren't resolved or a scene with a look at the revenue is $13 billion earnings per share of almost $5 per share is this an indication that this market is returning to some sense of stabilization? if the market is turning to some sense of stabilization but i don't think

structured finance expert janet tavakoli says the company is not innocent. >> they managed to prosper at the expense of the average taxpayer. during the time when the country was at war, it created securities that did material damage-- that contributed to the material damage-- to the u.s. economy. and then, in the middle of the crisis, goldman used its influence to exploit the situation to get the kind of deal, the kind of financing, and the kind of benefits that they could only have dreamed about in the past. >> reporter: blankfein declined an invitation to appear in this report. he did appear in january before the financial crisis inquiry commission where he defended goldman's actions as typical for a market maker. also appearing that day in washington was j.p. morgan chase c.e.o. jamie dimon. in his report to shareholders last week, dimon complained about what he called the demonization of big banks. dimon also declined our invitation to appear on this program. crisis management expert davia temin says the bank's approach may be too late and could backfire. >> the free floating pub

janet tavakoli of tavakoli structured finance said "basically, american taxpayers are being mocked by the way investigations are being done and how lightly these officers of banks are being let off. issues are not being brought up in congressional hearings. they are a mockery, just pr stunts." citigroup received more than 50 billion dollars in bailout money during the financial crisis. tavakoli says citigroup is still on government life support and the 75 million dollar fine is being paid for indirectly by taxpayers anyways. as enbridge crews work to clean up a massive crude oil leak in michigan, the company is reportedly proposing to building an oil pipeline between british columbia and alberta, canada. earlier this week, one of the company's pipes burst in marshall, michigan, spilling 1 million gallons of crude into a tributary of the kalamazoo river. it's devasting wildlife and could make it's way into lake michigan and the detroit river. reports say the canadian company was previously cited for failing to monitor corrision in the pipes. wednesday, enbridge energy partners released

bring up the question who's going to stop these guys and this takes me to a video interview with janet tavakoli on first business and she's asked this about the financial crisis inquiry committee and she says that they're basically covering up for the likes of jamie dimon and lloyd blankfein at goldman sachs and j.p. morgan why aren't we investigating the financial crisis inquiry commission is congress just covering up for all of these officers and basically putting the minimum amount of information to do the minimum amount of disclosure into these reports it's a sham it's a scandal oh it is a sham it is a scam states to banks so much for being on the kaiser report thank you max now i want to come back i am we talking with william k. black the guy who cleaned up the s. and l. industry in the eighty's how come he's not cleaning up this mess states in. the first three removals called clear cut. second place are your plans to keep. your. service. finally the mortgage is deposited in valley. and. welcome back to the kaiser report lot of people are scratching their head why we do these banks what's

. >> just another quickie, do you know janet tavakoli?> she was in -- kind of -- i don't know her but-- >> i was wondering what you did to her to make her mad. >> i can explain it. >> let me read what she says. she says, "i was in the salomon brothers 1985 training class that michael lewis lampooned in this amusing book, "liars poker." imagine my surprise to see him billed as a trader on "60 minutes" since he was actually he was actually a junior salesman. well-heeled male peacocks strutted the training floor and junior salesman were girlie-men mere eunuchs serving their pashes." >> i've gotten a little too much attention for my own good. and it -- this is the backlash is people who feel like they've not gotten enough attention get upset. but you know people when they interview me about what i did on wall street i can't control how they describe me. and generally, in the public's mind a trader is just a guy who -- anybody who works on the trading floor. i wrote a whole book about how insignificant i was at salomon brothers. i had not made

. >> safer: janet tavakoli is an analyst specializing in derivatives, the exotic financial instruments of the meltdown. she argues that the bad mortgage loans that fueled the crisis were repackaged by investment banks, sliced into increasingly complex derivatives, and resold to other investors, even though the underlying mortgages were often virtually worthless. >> you had various traders buying each other's products to artificially keep the prices up so that the bubble didn't collapse. >> safer: not only that, but the mortgage derivatives being traded were so mind-numbingly complicated, nobody understood them fully, certainly not the pigeons, the buyers at banks, mutual funds, pension funds and insurance companies who wound up holding a bag full of worthless paper. these guys are smart guys. they're all graduates of the finest business schools in the country, correct? >> yes. if they were gullible, they're sophisticated investors. so they can't really go back to the investment banks that sold them this product and say, "we've been had," because they held themselves out to be experts i

later, fannie mae and freddie mac with financial analyst janet tavakoli. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2010] host: good morning, thursday, december 9. a day of great deliberation and dealmakin

janet tavakoli -- congressman henry cuellar from texas. guest: when we are trying to get the recovery back, remember december of 2008 we were losing 75000 jobs a month. we are trying to get out of this recession, and during ts type of recovery we need to try to do everything we could to survive -- provide stability and make sure people have money in their pockets and not only extend what we have but also the payroll tax holiday will be good. but i think extending everything at least for a couple of years will give us time to get out of this economic situation and hopefully revisit this at a later time. host: let me ask you, we have been talking a lot about this this morning of the c-span audience and maybe we can respond to some of the issues that percolated. fewer funds going into social security -- and the viability. guest: the money going into social security is dicated going into that. both under the democrats and republicans -- they have been boring money and we will pay you back with ious, and that is the question, are we taking it i