to such great work on she's author of the blog read the auditors and a columnist for forbes an american banker so for instance let's bring you back again with m.f. global is that bizarre that we haven't seen more scrutiny of the auditor. well it's it's sad but it's on surprising the auditors usually the last one to come in the picture they stay on the sidelines like switzerland and play both sides. seemingly helping the investigation they do know a lot because they're on the inside they have access to all of management to all of the financial statements all of the systems but until someone sues that usually general media doesn't notice however they have been active on the sidelines and they are there are probably helping with the investigation however they're helping from a friendly perspective they should be scrutinized though because they know global

mckenna she is author of the blog read a regarding the auditors and a columnist for forbes and american banker and she's done a really good interesting work on all of this stuff and first of all francine thank you so much for being on the show and welcome to capital account thank you thanks for having me absolutely now let's just touch on facebook because we cannot avoid it today it is everywhere we've talked about it on the show before we've talked about it with people like reggie middleton who was not enthusiastic about this company at all said this is a story stock and overvalued all these things i know you have some concerns about facebook what are they. talk about anticlimactic i think of it a sort of more with a whimper than a bang although they'll be pundits that will talk about how it all worked out really well and they'll talk about the numbers in the billions but it turned out that at the end i think the underwriters had to support the price just so that it stuck at thirty eight dollars the opening price so that just goes to show how many people are involved in making this. a reality

>>reporter: that's risk manager for the american banker association and says down load app from well known marketplac marketplaces like the apple store. phoney app already being used to install mall wear and control phone. bank protect your action too. they musten crypt all transmitted at that time a.they require customers to know a user name and passport and answer a security question. >> i do password plus a dog's name or what street you grew up on. >>reporter: not to say there's no risk. here's what customers should do to protect. always down load bank ask apartment the bank to use the name and pass ford in case the phone is stolen or loss. never make a transaction where spice could intercept the data. she hadn't it this of any of the risk. >> i think i was being ladies and not bust the pass word on my phone and take as few seconds. >>reporter: if you bank on the smart phone ask what security measures they include. should require password security questions and provide automatic alert. don't want anybody moving away from this. this is where it is all going. you want all those prot

cash from either banks that got bailed out or from wall street's biggest interest group the american bankers association or both in total these members of congress have collected more than six hundred thousand dollars from wall street just in the past year and a half and in return they're voting totally in line with the banks toure's so in the end this conservative populism of two thousand and nine and two thousand and ten appears to have been nothing more than just a ruse. so does such a thing even exist conservative populism for those conservatives who call themselves populist really either confused or naive people who are actually doing the bidding of big corporations and billionaires who want the government out of the way so they have even more power here to offer his take on this is paul jacobs board member of the citizens in charge foundation all welcome thank you paul i feel like i've fallen through alice in wonderland rabbit hole populism has always been defined as a movement by working people taking on the powerful in the wealthy elite and usually using government to take down the p

today, the trade group american bankers association said j.p. morgan's mistake doesn't change their stance against the ban. still, regulators are under stepped up pressure. democratic senators jeff merkley and carl levin sent a letter to the nation's top baking regulators pushing for a strong rule, free of loopholes. the rule is due to go into effect in june, and banks have two years to comply. sylvia hall, "n.b.r.," washington. >> susie: president obama will host a meeting with g-8 leaders this weekend at camp david. on the agenda: how to help europe resolve its economic crisis. will the summit restore investor confidence? that's what i asked curtis arledge? c.e.o. of investment management at the bank of new york mellon. >> think that my expectation is not much will come out of it. they won't necessarily release a lot. >> susie: curtis, certainly grease is going to be a topic at this meeting. how worried should investors be about greece exiting the eurozone, how big a deal is that. >> i think it's a very big deal. you do have the challenge wher

>>reporter: that's risk manager for the american banker association and says down load app from wellmarketplaces like the apple store. phoney app already being used to install mall wear and control phone. bank protect your action too. they musten crypt all transmitted at that time a.they require customers to know a user name and passport and answer a security question. >> i do password plus a dog's name or what street you grew up on. >>reporter: not to say there's no risk. here's what customers should do to protect. always down load bank ask apartment the bank to use the name and pass ford in case the phone is stolen or loss. never make a transaction where spice could data. she hadn't it this risk of the risk. >> i think i was being ladies and not bust the pass word on my phone and take as few seconds. >>reporter: if you bank on the smart phone ask what secu thured require password security t want anybodyprovide automatic moving away from this. this is where it is all going. you want all those protection thes. >> if you do those pretty quic quick. >> thank very much. he has warning f

idea here is listen what we're doing we're not well ok some of them maybe they are but well the american banker magazine actually your forum said that article is ok but once we were talking about they were talking about if you were talking about problem that we're talking about the top one hundred companies in the people that leave them there's a reason they're the top hundred companies because these people sometimes lead them right and they are willing to destroy people's lives for profit and no they might i don't i don't want to outsource everything you want to a country i mean how many generalizations can we throw around here but i think i have every right to court for ok. last question quickfire professional treasure hunter bill warren claims he has found the body of osama bin laden and is in the process of securing funds for a mission to recover said body putting the certainty of his claim aside for a second frankly i assume bin laden's been eaten by the fishes but. whatever if he could successfully recover bin laden's body what's next for a body goes up for auction on e bay be warren dona

dollars in residential mortgage backed securities that were being sued over but and this was an american banker story but i don't i don't think they're going to prove their claims ok so this is in december so in january then the f.c.c. comes knocking on their door saying no we do think you did something wrong and we're probably going to sue you so i think it's definitely worse that he's the nun lying the fact that this is a serious serious problem and let's take a look at what happened after that december meeting so fifty four billion right we learned that fifty four billion has now turned into one hundred twenty million dollars that's what they disclosed in their ten q. they said we could be sued are we are being sued for one hundred twenty billion dollars in residential mortgage backed securities fraud and problems that's a big number i mean they don't have their big bank right but they don't have one hundred twenty billion dollars i think in capital use pay that off right in my previous question i used the word culpable i meant to say egregious which is to use jamie diamond stearns which is

interviewing francine mckenna who writes about auditors and she is a columnist for forbes an american banker and has her own blog and she was pointing out something really interesting which is that for a lot of these hot i.p.o. that we've seen recently that have been you know i say hot quotes like everybody is excited about them whether it's obviously facebook but others like groupon in these other tech companies these these websites that are these new business models or so they would have people think what she was saying is that it's given them a lot of creativity with their accounting measures which means that in her view you do have to question the integrity of what they're reporting in terms of their profits because just to give an example she said a lot of these companies start off with a lot of losses and so they use an accounting method. method to explain away these losses and they basically get to decide the management team gets to decide how to look at things and that's how these are sort of the manager these are new kind of companies they're tech companies they're not your traditio

. >> risk manager for their american banker association says customers should download apps from -- bankscrypt all data and bank apps typically require customers to know a user name and password and answer a security question. >> your password and a dog0s name,; >> reporter: it's not to say there's no risk. here's what customers should do to protect mobile transsasks. be ware of all phony app. download your bank app from the bank. never set your phone to auto pop late. never make a transsatisfaction over a public wi-fi network where spies could intercept your data. fran chess a says she hadn't thought of any of orisks. >> i think i was beings some not putting a password on the phone and it takes a few seconds. >> if you bank on your smart phone make sure your bank is using as many security measures as possible. and that includes encrypted pastwords and automatic alerts if there's unusual activity. >> ama: a fight over the rights of residents. a high tec make you're has gotten a cal stew student into hot water. >> alan: lying online isn't a good idea but some people are doing it for a good

as the economy boomed, british and american bankers became the toast of the town. >> these are the rock stars of london at the time. people being paid, you know, $10-$15 million a year. and you saw them in their expensive shirts and in these vip places where there's like a £500 bottle of vodka, and there were all these girls in miniskirts flocking to these vip rooms, enjoying this, you know, once-in-a-lifetime opportunity, people in their 20s making this kind of money. >> you lived and breathed for the firm. i mean, the hours were insane. you never questioned it. and on a relative basis, you were making so much money and you felt grateful. you felt indebted to the bank. >> narrator: desiree fixler, a graduate of the london school of economics, sold derivatives for deutsche bank and j.p. morgan. >> i didn't think for myself. you know, i was so desperate to perform for the bank. i mean, for so many of us, if you slit our wrists, corporate logos would jump out. >> narrator: fixler was part of a small army of bankers pushing derivatives to european markets. (phones ring) on the trading floo

of the major banks were willing to sit down with us and talk to us about this, not even the american bankers association. >> oh, i'm sorry to hear that. >> why do you think that is? >> they're feeling very defensive now, and so, like, i can only assume that that is the reason why they declined. >> the banks are defensive because all 50 state attorneys general want to punish them. the states are seeking about $20 billion in damages for what they say is the irresponsible, perhaps criminal way that some mortgage companies handled what is, for most folks, the most important investment of their lives. >> in march 2012, the us government, 49 state attorneys general, and the nation's five largest mortgage lenders announced a $25 billion agreement over alleged foreclosure abuses and asked a federal judge to approve the plan. as part of that settlement, lynn szymoniak, who filed a whistle-blower lawsuit on behalf of the federal government, will receive $18 million. [ticking] coming up, the complex financial instrument that helped down the u.s. economy. >> the idea that you could lend money to someone

james chessen, chief economist for the american bankers association, an industry trade group.and kathy kristoff. she reports on personal finance for cbs "moneywatch" and "kiplinger's personal finance." kathy kristof, let's start with consumers. are people generally more willing to take on debt now? if so, who is doing it and what kind of debt? >> consumers are definitely taking on more debt. certainly on average. what you see are two different groups of consumers. we have people who never really had a problem in the financial crisis. they didn't lose their jobs. they never were over extend extended. they've never had difficulty in paying their bills but they've been very cautious over past couple of years. right now they're in very good shape because rate now the debt they have is is at lower interest race. mortgage rates in particular have gone down. for most families that means that 30% of your budget is actually at a lower price. you're in good shape. the other side of the coin are the consumers who did have real problems in the financial crisis. some of them lost their hom

neil wineburg, editor in chief at american banker.you again. >> my pleasure. >> i was wondering about this. given the fact we still don't have a resolution to the entire facebook ipo story yet, there's a lot of talk on the street that the losses or the -- what morgan stanley will have to make good on could continue to rise. whereas jpmorgan seems to be getting a little bit more of a handle on its trading losses. they may rise as well. which do you think wall street is going to be harder on? >> certainly jamie dimon deserves to thank james gorman for taking the heat off him. i honestly think what jpmorgan is facing is more fundamental. obviously this is a big piece of their business. here an ipo, very public, huge amount of egg on their face, terrible pr disaster. ultimately it will get worked out. there's a lot of people to blame. you can blame the nasdaq. i think you can blame investors. they wanted free money. there's no free money. tough luck as far as i'm concerned. >> okay. >> i think this too shall come to pass. remember, amazon

joining me here at the nyse, neil wineberg, editor and chief of american banker. pisani. gentlemen, welcome. first of all, we're going to start with whether or not the banks will ever learn. neil, what do you think? >> i don't think they'll ever learn because they don't see it in their interest to learn. obviously the banks think this is profitable depending on point of view, proprietary trading, speculating or hedging. certainly the fact they moved this over to london and the fact it's been continuing would indicate jpmorgan doesn't want to learn anything from this. >> should banks be allowed to hedge, neil? obviously they felt this guy was making money for them. they felt the need he had large positions they felt the need to hedge, which is a prudent thing for a bank to do. you can argue they shouldn't hedge, or banks shouldn't be allowed to be doing this kind of activity, i don't see how you can argue they shouldn't hedge. they just made a bad bet here. >> that seems to be the big question. was it hedge? was it speculation? the argument i would make, bob, is wh

americans' net worth. a recovery seemed far off. occupy wall street wanted bankers held responsible. >> most americans think, and with good reason, that wall street got bailed out and main street didn't. we have very high unemployment. we lost 8.5 million jobs in the recession. people's houses aren't worth what they paid for them. a lot of 'em don't have jobs. their kids are graduating from college and are moving back in. >> this is what democracy looks like. we got sold out! >> narrator: some protestors are calling for bankers to be prosecuted. >> it is pretty clear, actually, that there was massive illegality going on. and if somebody with subpoena power was intent on prosecuting that, i don't think there's really much doubt that they would be quite successful in criminal prosecutions. >> we are the 99%. we are the 99%. >> narrator: in a matter of weeks, occupy demonstrations spread to scores of cities across america and the world calling for radical changes in the banking system. >> we are e 99 pcent. >> narrator: bankers responded by saying that the answer is to

i don't think the american people are aware of the undemocratic nature of this, to have bankers who pick the regional president who in turns picks boards, which are primarily from industry and dominant in the financial industry. to have them setting the policy seems gravely mistaken. i think you can get to a presidential set of appointments without diminishing geographic diversity, and that's what we've done. beyond that, i do feel somewhat compelled to come to the defense of the bush administration. the single most important economic appointment made by president bush was, of course, chrm

i don't think the american people are aware of the undemocratic nature of this, to have bankers who pick the regional president who in turns picks boards, which are primarily from industry and dominant in the financial industry. to have them setting the policy seems gravely mistaken. i think you can get to a presidential set of appointments without diminishing geographic diversity, and that's what we've done. beyond that, i do feel somewhat compelled to come to the defense of the bush administration. the single most important economic appointment made by president bush was, of course, chairman bernanke. he'd been his economic advisor, chairman, then became head of the fed. frankly, i think people have been unfairly critical of mr. bernanke. he's obviously been reappointed and reconfirmed by the senate. but once again, there have been predictions that haven't been born out. thor have inventions by the fed to deal with the problems that we had from the financial crisis have not led to inflation. inflation is not at the point where it has become a serious problem for people. the interventio

president, i would ask unanimous consent to submit into the record an article that appeared in the "american banker" fairly recently. the presiding officer: without objection. mr. sanders: and let me read you what this article says. there is a member of the banking industry who contrasts what the old rules would have allowed and that is under the old rules, there are limits to how much people can contribute into a pac and that is $5,000 before the primary, $5,000 after, a total of $10,000. and what this gentleman, mr. packard says, from the banking industry, he says, "if someone says i'm going to give your opponent $5,000 or $10,000, you might say, 'yeah, okay.' but if you say the bankers are going to put in $100,000 or $500,000 or $1 million into your opponents' campaign, that starts to draw some attention." what that gentleman is saying and what this whole issue is about is that if a member of congress is prepared to stand up to wall street, you better watch out. if you're going to vote for a bill that protects consumers, you better watch out because, as this banker just said, there may be $500,0