paul max i think it's because we always talk about lloyd blankfein areas where we showed him and she apparently is providing some of his collateralized geishas he comes once a week or twice a week in sometimes deflector diapers and passes them on in the city of london jasmine's purpose collateralize ing almost the entire research your position going on on wall street and in the city of london right now this is an era of peak collateral because the banks have collateral as already everything that they could collateralized and then recall lateralized and again a re hypothecated it and they've done this over and over again and jasmine can't do part of office to create the additional collateral so that lloyd blankfein and jamie diamond can float even more securitized debt based on poop collateral that is of course why we see countries like spain falling greece into the gutter because there's no more collateral of worth to create more securitization to create more liquidity to keep these countries from going under so you say we need more quantitative easing in the hyper obligation market

little lloyd blankfein here it is also a reflection of how their actual leaders think because we have headline here china views us as a declining power says an insider the senior leadership of the chinese government increasingly views the competition between the united states and china as a zero sum game with china the likely long range winner if the american economy and domestic political system continue to stumble according to an influential chinese policy analyst the united states is no longer seen as that awesome nor is it trustworthy and its example to the world and admonitions to china should therefore be much discounted mr wang writes of the general view of china's leadership zero sum game and of course there is a word for the one hundred years ago or two hundred years ago mark and solos on that all these countries were trying to eke out a growth based on the decline of another country it's only in modern times when we have this idea of central banking or you can have a positive song of infinite growth with everyone becoming fabulously rich without any extra analogies or risks

i've taken my jacket off as i'm joined by chairman and ceo lloyd blankfein. . karl mentioned this is your first live interview in almost two years. why today? why did you want to have this discussion today? >> well, gary, we're having our bricks conference today and here you are come to our house, how could i say no? >> is it a sense given a lot of what's happened over the last couple of years it's important for you to maybe take a different approach dealing with the public and maybe that has a little bit of why we want to do this as well? >> i think so. not today specifically but obviously it occurred to us we haven't gotten everything right with respect to how we've dealt with the public. and don't forget, we are an institutional wholesale firm. we have no real consumer businesses so we hadn't really had those muscles and not surprisingly didn't exercise them and went through a spate out front an available all the time and went through a place where weren't. obviously the answer will be something in the middle. but, you know, i'm glad to be with you today an

lloyd blankfein will -- the way i read it is he will continue. he feels he's got a very important mission here in terms of making sure that this institution is well-positioned for the regulatory environment that we talked about and the business world ahead. he feels that he wants to have his legacy as somebody who helped navigate this company through the next ten years. >> all right. so that's just a small portion of what you covered with him in this interview. but if you -- you know, you ran money for a lot of years. >> i did. >> it was a peer-to-peer interview. that's what he does as well. if you have to invest against that, put your investment manager hat on and tell me what you make of those comments and how you would invest against it. >> this is what i think. if you are an investor in goldman sachs or any of the investment banks, what i heard today was we're going to try to manage these businesses assuming that the regulatory environment continues to get even more difficult, but we're going to have to find ways to create new revenue streams

said these meetings the so-called huddles these little cuddles and lloyd blankfein steam happened between two thousand and six and two thousand and eleven they do leave out max a very important huddle are several huddles between lloyd blankfein his traders and their analysts and certainly. treasury secretary who got the rocks bought. paulson i mean you go to the two thousand and eight period we find out later that paulson thanks to a whole with the insiders on wall street told folks that the government was going to be bailing out these institutions printing money to do sell the banks all tripled and quadruple during that period of time based on all between i think paulson congress and wall street and billions of dollars were siphoned out of the economy and put into the pockets of few folks to use most of that money to pass laws to make it easier to commit the same crimes over and over again yes those hurdles you were talking about with hank paulson they were actually involved he met with these bankers from goldman sachs he met with hedge funders who used to be at goldman sachs he told the

sachs's of the world so would you rather be tongs or would you rather be jamie diamond or and lloyd blankfein well this is why it's very encouraging i think because of the zoo tong essentially has in the palm of his hands an entire exchange and an entire currency that's outside of the current regulatory environment now you match that up against let's say the protesters of occupy wall street and i would make my bed with those who tongue because he's able then to go into the market and create let's say a trading pushback against j.p. morgan j.p. morgan fabricates they they sell into the marketplace counterfeit credit default swaps to manipulate prices this is well documented well understood life masters engineers and jamie diamond ok is it and then manipulate prices there's a seventeen year old chinese kid who's got this incredible computer firepower that he could be a worthy adversary for jamie diamond or lloyd blankfein i supported you tone well in this article they quote simon really veldts he said because it is not going to fly because there is no central banker power base is doomed to fail

this incredible computer firepower that he could be a worthy adversary for a jamie diamond or a lloyd blankfein i supported you tone well in this article they quote simon really veldts he said because it is not going to fly because there is. no central banker power base is doomed to fail while that statement is wrong by saying that the big coin is not backed by anything that's false whoever said that is an idiot big point is backed by cryptography which gives it legitimacy which gives it sounds and this the us dollar truly is backed by nothing because any time america needs to pay its bills for foreign creditors it simply prince more dollars that's why the bric nations want to create their own currency that's why china is the celebrating their purchase of dollars us why the us dollar is losing its status as a world reserve currency because the social bank of the us simply prince more whenever bills come due so it is backed by nothing and they severed the connection to gold back and i think seventy one so here's a currency good coin that is backed by something of actual value told graphy it has

jamie dimon and lloyd blankfein as we've said to sell credit derivatives that are much like the fukushima policy of spreading radiation around the world we saw that the glow fish are the same thing that is in a lot of the food products of americans but it just is a more slow death it's like a drip drip drip of death and a lot of it comes back to that massive savings pool of the japanese pensioner japan's giant pension fund unlikely to see j g b yield surge japan's one for. three trillion government pension investment fund the world's biggest public pension said yields on japanese government bonds are unlikely to surge for a while as there is plenty of demand from cash rich domestic banks the g.p.i. f. invests reserves of national and corporate pension plans if allocates about two thirds of its assets to japanese government bonds where the yield on benchmark ten year bonds is languishing below one percent geriatrics are risk averse because all the relative have done for me to think of blowfish burgers but don't know they're the ones they're the famous mrs watson alvi you know women live a

that caught me oy in money proxy filing i read through this morning is that security costs for lloyd blankfein essentially doubled year over year. for the year that just past, the company spent about $258,000 on security for mr. blankfein, compared to $128,676 the year before, so about twice the cost. that's separate from a cost of a car or other perks he gets. if you compare to jpmorgan, which you guys were just talking about, costs were essentially flat year over year. what's going on with goldman is interesting. i'm told at least in part, this is die to occupy wall street and other perceived security threats that increased during 2011. taking care of the ceos, making sure they're safe in their homes and cars and office seas priority one for these companies and they're having to shell out more to do so. i'm told the reason the jpmorgan numbers are so much lower, essentially the $20,000 range, is that what they're showing you is residential security for jamie dimon. he also of course has bodyguards who travel with him in his office, but i think that's a staff cost. >> it shows the difference

poor lloyd blankfein, ceo of goldman sachs.had to suffer a 35% pay cut in 2011, only made $12 million. boy times are tough. harriet call from jacksonville, florida. hi, hair accurate, good morning. >> good morning, bill. how are you doing today? >> you sound perky this morning. >> yeah. i have morning bill instead of morning joe. >> all right. >> listen, you know, romney is always brag being what a great businessman he is and how wonderful he is going to be for the country but he can't get his taxes ready on time. >> yeah. >> i am not going to vote for him now. >> that does it. hum? right? >> that does it. >> that's the deal-breaker. >> hair accurate you know darn well, he just didn't want everybody to know how much money he made, number 1 action and how little he paid in taxes. right? >> right and he is always lying so this is just another lie. >> you know what hair accurate? i bet you he filed an extension until like november 7th. right? or or something? after the election. all right, hair accurate. good to hear from you. lar

and lloyd blankfein, i don't really necessarily see lloyd blankfein stepping aside in favor of someone else would change much at goldman sachs. the question is there a broader shift that needs to take place and what we've argued is that what they should really do is split the chairman and chief executive's role and appoint a strong chairman would who could then will also do some of this talking and provide some air cover it for blank pine who is now having to take it on by himself. but they've resisted that. >> he said you've got chairman and ceo the same person, it means you've got the same message. but i'm not sure that washes. >> that's right. one way of arguing it. >> peter, good to see you. thanks very much indeed for that. we'll get you back and talk about holland, as well. but for now, we'll let you go. christine. >>> focusing on chinese bank earning, but we have comments coming out from wen who is in poland. he's encouraging chinese banks to set up branches apparently in central eastern europe. he also says he wants to set up a $10 billion credit line for infrastructure, tech p

>> i think that lloyd blankfein has presided over this company through many disasters.it does lead up to him, all of these things kind of not engaging with the media, not explaining what goldman does effectively. that is definitely down to his leadership and he should take responsibility for that. >> very quickly, john. >> i don't think goldman has a way out of every bad story is going to be on the headlines everywhere until they have serious changes at that firm. that might mean serious changes at the very top. >> folks, thank you very much. interesting conversation. interesting topic. up next, brian shactman is going to update the market action. sharon epperson is live at nymex with the metals close. >> how about this number? more than $700 billion. that's a lot of money. and that's how much money natixis manages. talk risk, reward and return on the other side of a quick break. the next revolution in music is happening here. pandora rocks the big board. introducing gold choice. the freedom you can only get from hertz to keep the car you reserved or simply choose anoth

blowing me over and other people are quite happy that you were there to help guide the exorcism now lloyd blankfein of goldman sachs he said recently that he believes he's doing god's work when he's selling to pension funds the fraudulent mortgage backed securities that they're known for at goldman your thoughts of being a man of the cloth i have seen the adoption of religious posturing by everybody from the head of the new york police department to the mayor here to jamie dimon and chase it is simply it you have to understand in the in america we make our meaning out of bible stories we're all trudging across the desert behind a pillar of fire wrestling angels you know we're all involved in bible stories all day long we're very religious people i mean that's the us why you know we've adopted this right wing apocalyptic guys we're trying to root out the jimmy swaggart that we have in our leadership just you know the scripts the surface much and blow you know that's what they are now reverend billy when we first met up i was in london and you were doing a campaign at that time with starbucks and sta

stable economy in the us you have social cohesion breaking down people see guys like jamie diamond lloyd blankfein kleptocratic lee breaking the economy over the coals stealing billions and no penalties whatsoever instead of trusting the currency in america their reaction now is to arm themselves to get ready for the coming war but they don't trust the currency of the so they're out there buying guns on mass this is another interesting thing here max there are forgeries but many accept the risk of holding a few fakes as a cost of doing business shillings are often handed over in thick bundles of one hundred notes by this alchemy in imitation of a thing which is already of notional value turns out to be worth something so even forgeries in somalia because of the trust in pride within the clan system even the forgeries have more faith in backing them then what they european union currency a euro has you can have an economy like this and sonali with shillings that have a small percentage of the currency fake counterfeit currency and it gets all kind of baked into the cake and it's not really a big pr

well, goldman sachs ceo lloyd blankfein got a 14 1/2% raise to a total of $16.2 million, including stock awards from prior years. despite a decline in profits and share price during 2011. blankfein's take-home was dwarfed by cbs's les moonves, who clokcked a 21% increase in his package to 61.9 million. and you're watching speeded up more than 200,000 of your tax dollars at work, moving an 11-ton minzantea shrub, once thought to be extinct away from a highway project next to the golden gate bridge. the trouble is may not be rare since it sells for $16 or so at nurseries. our thanks to brett basel for finding this outrage. >> jackie deangelis, thank you. next up on "kudlow," president obama and vice president biden unveil their income tax returns. if the president is using the same rich man's exemptions that he rails against, i don't get why they're attacking mitt romney about his returns. we'll cover it all in the break. romney paid a whole lot more taxes than obama did. zap technology. arrival. with hertz gold plus rewards, you skip the counters, the lines, and the paperwork. zap. it's o

a typical arrogance and godlike thinking of someone who thinks they're doing god's work hello lloyd blankfein so the next headline is the mother of all info graphics visualizing america's derivatives universe and this is from zero hedge and they're talking about that last month they presented the latest derivatives update from the o.c.c. according to which the top five u.s. banks hold ninety five point seven percent or two hundred twenty one trillion of the entire u.s. derivatives universe which in turn is just a modest portion of the entire seven hundred and seven trillion in global derivatives as of june thirtieth two thousand and one so they provide this info graphic which also gives a lot of data max for all the crimes going on and where christine legarde might go look for bankers who like to use their ill gotten gains to help some beggars. so first up max. and why bank of new york mellon has a derivative exposure of just one point three seven five trillion considered too big to fail banks it is currently facing among others lawsuits fraud and contract breach suits by a los angeles pensio

>> there is your son. >> wow. >> looks like lloyd blankfein will be on again. no, that's not him. there's blake. >> there she is. >> the girls have -- where was natalie? >> kim amy was in there. she must have gone through already. >> it looks fun in there right how with the music on. we should have the music playing in there when we're in there. >> like game show music, doesn't it? >> a little bit. we can play a game show coming up. it is synonymous with apple. -- what is synonymous? do you know what it could be? >> apple puns? >> the i-comomy, the i 35d, tip. the guy behind the letter. but beyonce has been named the most beautiful woman of 2012. top honor be stowed by "people" magazine. she said she feels more beautiful than ever because of the birth of her daughter. i think her daughter's name is blue, is that right? previous winners include angelina jolie, halle berry, and last year's winner, jen pnifer lopez. a lot more beautiful women on the show later today. laces? really? slip-on's the way to go. more people do that, security would be like -- there's no charge for the bag.

earlier today i did get a chance to speak with lloyd blankfein. one thing that stood out to me, i was able to ask lloyd, point blank, what was it like on the morning of march 14th, the day that the op ed came out in the new york times and talked about his reason for leaving goldman sachs. >> we asked everybody in the firm to do a 360 review of everybody else. we have the reviews of this fellow. we have the reviews by this fellow and everybody around him. we are obsessive about everybody soliciting everybody's views and we went through all of this stuff and could not find substantial asian to this. but let me tell you, if you ratchet up the pressure to have good culture at goldman sachs and as a result of this you get closer to your clients, there's no downside to that. >> maria, what i found fascinating is this was an isolated incident as far as the feedback that he has received from the close to 30,000 employees. they asked all employees, is this the experience that you have had in the company? i asked him point blank, have they received similar e

. >> but at the same time, right, if this happened with a bank and lloyd blankfein of goldman said werp over here for a million dollars, it would be a massive scandal. but it's just zuck being zuck. they get a free pass, don't they? >> they don't deserve a free pass. i think lloyd would be doing a better job than mark zuckerberg doing this instagram deal. julia is right. he has 57% of the voting rights but only owns 28% of the equity. 72% of the equity owners and shareholders are people who are not mark zuckerberg. the guy pays $1 billion for a company with 13 employees and zero revenue. there are a lot of companies around the united states with 13 employees and zero revenue. i don't see them getting a $1 billion valuation. it wasn't as if there was a bidding war or valuation. he could use a little adult supervision, that's all i'm saying. >> look. he did consult with cheryl sandberg on friday and he had been interested in acquiring instagram since last summer. other companies were interested. likely twitter, google. i think the acquisition even as random as you might say. yeah, in te

gary will be back to break down his exclusive interview with lloyd blankfein.ou ahead of today's earnings from las vegas sands. that and more today on "power lunch." now back to scott and the fast half. >> ty, look forward to that. thanks so much. let's get your realtime change from jim yurio. he was buying the short treasury etf. that's the tbt, talking about it all the time. ahead of the fed decision. let's find out what he's doing now. jimmy, your reaction to virtually the same statement. >> absolutely. there's a couple things we know for sure, and that's the fed doesn't want and has no immediate attention of embarking on a qe-3. to me that's a huge deal. sponsorship long end of the treasury curve is what's kept rates at this level. >> right. >> to me it seems like rates should be going up and that's why i added to the small position to see how the market was trading. i look at it this way. the fed's telling you move further up the risk spectrum. go some place else. you can buy stocks. if things start to really get out of hand, we're there. we will come back

. >>> goldman sachs' ceo lloyd blankfein on cnbc earlier this week saying his firm has not done a good job of dealing with public image. his job just got tougher. new investigations underway into insider trading at the firm. and mary thompson is on the case. >> sue, cnbc confirming that federal prosecutors in los angeles are investigating goldman sachs' banker as part of the world's biggest insider trading probe. the fed's exploring whether the 37-year-old gave inside information about two health care deals to a former trader, rajartnam, who is now serving a sentence for insider trading, the biggest conviction so far in this ongoing probe. in a statement goldman says it's known for the allegations for two years and cooperated with authorities. whom a person close to the firm haven't contacted goldman in a year about this matter. as for the san francisco based banker, he still works at goldman and according to his lawyer has done nothing wrong. he is the fourth person with goldman ties linked to this investigation though. analyst henry king and david loeb also reportedly under scrutiny

." >> we have new information on lloyd blankfein's pay ahead of goldman's earnings next week. how much is he making? what more do we need to learn there? >> well, he's making -- last year this came from the proxy which was filed today he earned over $16 million, which was up from the $14 million he earned last year. we take a look at these numbers compared to some of the other big ceos of banks, jpmorgan's jamie dimon, john stump. two companies more i guess you could say similar in nature. gorman earned around $11 million. i guess no significant surprise although numbers for some people seem a little outstanding i should say, simon. >> to say the least. mary, thank you. >> well, we all know the story now. google delivers decent earnings. but it's the surprise two-for-one stock split investors are really interested in. aimed at control by co-founders. shares right now are lower by over 3.5%. jon fortt joins us from silicon valley. jon, this power grab, are we going to see more of this in tech? >> quite possibly, julia. just to get back to the stock for a second, it's given up a

. >> when they see that like lloyd blankfein got $12 million last year les moondez got $70 million last seen any increase. so that is a big issue. in light of that republicans this week rallied except for susan collins, to block any vote on the buffett rule. now again, this is an election year. was that a smart thing politically? >> i don't know. the buffett rule, you know, polls came out this week that showed huge support. >> seventy-two %. >> which is, you know, apple pie might get a little bit better than that but it's hard to find things 72% of people support. there is a recognition that the buffett rule may go to the fairness thing in that there are a lot of people that like it and it's not our salvation or anything like that. >> in and of itself, it's not going to get rid of the deficit or the debt. but what is? nothing is. i guess my point of view is if you have 72% of the people for it, who are the republicans representing by blocking the vote toon it? >> more than anything they wanted to prevent a full debate and figuring it was a better thing for them to do to eliminate the ai