in the banking system because he hated the banking and he decided to become part of it. i should say hated them i disliked the way they did it because my point was they leave out the majority of the population of the world keep saying that two thirds of the world's population are not served by the banking system the banking system is only serving the top people wealthy people so it's said it's a very funny situation you are lending money to people who already have lots of money and you don't want to lend money to people who don't have money the logic would sit otherwise you should be focusing on the people who don't have the money and have less priority to the people who. i have loved someone already so i started it said that it cannot be done because you cannot lose money to we don't have money they have money to return your money their logic i said well somebody has to try it out this is what you are speculating why don't you go and find out in the real world they said or nobody will do such a thing it's obvious i said it's not obvious to me so i went ahead and did it

real estate sector could bring banking crisis two point zero and banking system on verge of new crisis according to a hedge fund manager in the u.k. so this is a head from manager in the u.k. is no star capital and they've taken a massive short positions against a bunch of european banks because first of all they believe that the so-called stress test on the banks here were totally bogus that there are for example six percent of here one capital in these banks but actually less than two percent well it got the whole crisis started was a collapse in the real estate market as a result of wall street the finance scheming and to try to clean up all the bad mortgages paper washington and the federal reserve did a deal where they put on the federal reserve balance sheet trillions of dollars of bad debt turns out the bad debt is even worse than they thought and there's another many more trillion on the banks' balance sheet so we're going to talk about another down leg of the real estate market china by the way their stress test assume a sixty percent mark down in real estate they're doing rea

who are the barclays boy lloyds bank i don't want. member we've said six months before the collapse of northern rock bank that it was going to collapse of the reasons it didn't collapse where is your finder's fee where's your bounty that's ten billion large you owe me dave cameron don't make me fly to london right now go down to number ten downing street and have to shake it out of your pockets don't make me do it you owe me oh i see you're going to pretend like you don't know how the banking system works and anyway i continue to continue on this benefit fraud thing chris grayling defends plan to use credit rating agencies to help catch benefit cheats the welfare minister chris grayling in the case saying that if there is a huge mismatch between the way you are living your life and the amount of money you are supposed to be receiving from the state and benefits surely it is right and proper that we should be saying how is that happening how is that happening though i mean this is what we were talking about with laurence kotlikoff the

i am max kaiser and this is the kaiser report you know the global problem with banks and finance and markets it's not just a short term phenomenon this problem goes back two hundred years or more because back in the old days of the enlightenment when adam smith was writing wealth of nations he failed to include the limitations of the ecology flash forward to today we've got some massive problems because nobody cost of the ecology along the way the ecology is costing itself for us let's get more states to herbert welcome back yes max and along this line of the deflationary collapse everybody is talking about here one capital tier two capital to require it's capital requirements and liquidity but there is one that is tier zero it's tier tara you might want to call it and that is muscovites fully worst heat in one thousand years death rate doubles alexander for a lot of head of russia's federal weather service says in one thousand years neither we nor our ancestors have observed or recorded anything like this sort of heat and as a result of thirty percent of agricultural lands burning d

your bank. avoid a whole range of several of the services for example we have insurance programs like if the woman dies the borrower dies her family doesn't have to pay anything because it's covered by the very tiny small insurance program which is built into the program even if her husband dies she's still alive she's still active but she doesn't have to pay anything anymore of the outstanding loan certain of it fresh loans useless the loans are insurance for the more volatile and what about you do you insure yourself myself the i mean the bank hold on the one is all there is are you so high that you did then use your ears we don't need insurance because the permit is high we never had worries about that see bangladesh is a country of. endless disasters we always have floods we always have sacked loans and big floods almost have the countries underwater. people lose everything even then we don't have those insurance to cover disasters and so on which we should probably in the future but at the

when big banks got into trouble the central bank was drawn in to dealing with the capital of those banks. when i came to form a different view -- it actually it would have been sensible for us to [unintelligible] the lessons of the crisis were that monetary policy was not sufficient to ensure a stable sector. the people running fsa were under constant pressure to deal with consumer oppression. at the time when there appeared to be no problem in the banking sector. the twin peaks approach was the right way to go. i have come to the view -- i have done everything i can do to do the opposite. i come to the view that is sensible to do have regulation in the central bank. all aspects are well away. >> [unintelligible] since he took up your post in 2003 that the impact of the financial crisis on our banks could be averted? >> i think it was global in nature. the underlying causes, the massive capital into the banking system, that was still [unintelligible] i think the massive expansion of the financial sector would probably have taken place to a lesser extent, but the financial policy committe

in five million dollar lawsuit so germany's deutsche bank and u.s. investment bank morgan stanley are facing a five million dollar lawsuit led by a group of irish nuns so these irish nuns were sold a whole batch of you know these crazy derivative products to hedge all their potential risk and of course they ended up losing their investment right they were sold from wall street a product that was sold to them as a risk management product you know actually it was karmic justice because it wasn't the catholic church selling indulgences back in the medieval days to people rich people who wanted to avoid having to go down to the nether regions of the underworld for having committed sins of the church sold them indulgences remember those to one of the pope's were selling indulgences now these nuns karmically the will of spawn and they were sold indulgences by wall street. to avoid the risk of their normal investment activity that didn't need to be sold these activities to begin with and so there you have it what comes around goes around comes around again

on how to do banking. system bangladeshi bank founded the green bank she developed the concept of micro credit while teaching economics. this concept incorporates.

different we as well i think they were bank has a different. strategy ideology which is completely different from the gaza strip bank is about twenty percent of historic palestine whereas the gaza strip is one point two three percent of palestine so the east bank it's. a big proportion of the palestinian land where the israelis have the desire to take as much of as the kind of that from their land and keep the palestinian minorities living under complete israeli control and what happens when we apply our innocence and i guess we'll have the interrupt you there we've run out of time i'm very sorry but thank you very much for your analysis. now with our live from moscow still to come for you a voting stance find out how immigrants in finland are hoping to make their voices heard and why their plans have provoked a negative reaction in some. world record breaking temperatures have been torture and russians for over a month ambulance crews are in a tough battle to save people suffering from the heat and smog but doctors say casualties are hard to a

but while the bank's restructuring, banks will have to adjust their balance sheets. come up with a new capital requirements. i do not think that we should weaken the standards that businesses have to me. it does not make sense to make businesses adjust quickly. the. i had made to the government and had to think about it, issue a consultation document, and we will see what comes out. at the time, when they slow their balance sheet growth and restored capital, right now larger towns go out in compensation employees is not there on the mandate or getting their balance sheets stronger. and there's less emphasis on distribution, and back to where they are willing to lend. , could i ask you, or you in the middle of having the banks survived, i was under the impression that the banks would lend. alice already skeptical. the bank said that they were doing and when they said that there was a few doing it. was there to your knowledge any scrutiny -- disagreements exist? was there scrutiny? does your organization have any part of the scrutiny or any knowledge of the scrutiny? i

i did not ask for a meeting for any individual bank including one united bank. i did not suggest who would be participants in that meeting. i did not attend that meeting. and there was no such thing as the troubled assets relief program, known as tarp, at that time. there has been a great deal of confusion over a conversation i had with the financial services chairman, barney. the conversation i had with chairman frank was a conversation several weeks after this meeting had taken place, and after tarp program had been announced. one united bank was now raising questions about assistance from tarp because my office's assistants to the national bankers' association was strictly to provide access for a discussion about the impact of the financial crisis on small and minority banks broadly and because there was no tarp program at the time of the meeting i did not wish to get involved with one united bank about any individual assistance or about this new tarp program. because my husband had once served on the board of one united bank, and still held investments there

>> absolutely, we will not have only a few banks but over 9000 banks. those eight are 9000 community banks across the country still provide a very substantial fraction of credit to small businesses, credit to communities, and we will work very carefully to preserve that. if you look at the basic strategy in the bill, we have made a conscious effort to make sure we are, in effect, going to hold the largest firms to tougher standards to preserve the basic strength of our system. in particular play an irreplaceable role across the country. we have been very careful to use the authority congress gave us to deal with the potential collapse of our financial system and make sure we're providing capital to the cbfi's. that is a very high return investment to the taxpayer. that is important we find ways that those firms can play active roles in those communities. >> final question here in the front row to my left. >> + come to new york city. what might be your view about the bush tax cut for small businesses? would you rather extend it? >> excellent question. le

and i was not the bank's fault. -- that was not the bank's fault. if the problem is we do not make anything here anymore. host: ok, we will go to john in north carolina. caller: i want to say to your guest that i empathize with him as far as his side of the banking industry, which really did not have much to do with what is going on carriveau i have reserved -- what is going on. if i have researched this subject -- i have researched this subject and the repeal of -- of the glass- stegal act come i do not understand why they do not just put these dead connect back into place. guest: what has happened in the last 20 or 30 years is that the financial system has become more complicated. it has become global. there are individuals and businesses that want to use securities, transactions, they want to use the swaps. that is where ththe volcker rule is trying to come back so that there is understanding and disclosure on those types of products. we have a very complicated global financial system now and the laws are tricky. as an economist, one thing i know

i did not ask for a meeting for any individual bank, including one united bank. i did not suggest that -- who would be the participants of the meeting. i did not attend that meeting. there was no such thing as the troubled asset relief program, known as t.a.r.p., at the time. has been a great deal of confusion over a conversation i had with the financial services chairman, barney frank. the conversation i had with chairman frank was a conversation several weeks after this meeting had taken place and after t.a.r.p. had been announced. one united bank was now raising questions about assistance from tea party -- from t.a.r.p. i was there strictly to provide access for discussions about the impact of the financial crisis on small and minority banks and because there was no t.a.r.p. program. did not wish to get involved about any individual assistance or about this new program. my husband had once served on the board onone united -- board of one united bank and still held investments there. i felt that should seek assistance from chairman frank where the -- someone wi

emergency aid to banks. the law also regulate the closure of failed banks, even allowing the state banking watchdog to close down banks in extreme cases. the government wants to get the law through parliament by the end of this year, well ahead of the european commission, which presents its reform proposals next spring. good news for europe's largest economy, germany could end the year with its lowest unemployment level in almost two decades. that is according to a forecast. it estimates that the jobless total could dip a to 3.2 million in 2010. that would be one-quarter of 1 million less than last year. that group cites the strong economic recovery in germany. the organization recently raised the economic growth forecast to to 3.4%, and it expects small and middle-sized businesses to lead the way in job creation. well, stocks in europe have closed on monday. we have this report from the frankfurt stock exchange. >> many shares gaining, but there is new banking legislation coming in germany, and it will prob

looks like the germans are tackling the banks here. >> that is right. the german cabinet has approved tough new regulations for the financial sector to be and that the fall of when banks fail. the response comes after the massive bank bailouts in response to the financial crisis. the war -- the reform would give the government the ability to dispose of assets. banks also have to pay a levy to fund future bailouts. >> germany's most high-profile casualty of the financial crisis. had to be taken over by the state and prop up with tens of billions of euros of taxpayer money. the government says that new legislation would prevent a repeat by allowing authorities to step in faster if banks show signs of weakness. and that it is a clear signal that we have taken another huge step of making sure we make it -- making sure there will be no repeat of the terrible incident of two years ago. >> banks also have to continue paying to a special bailout fund. the amount leavitt would depend on the size of the bank and the level of risk of its business. it will raise 1.

and bank of moscow banks accounted for sixty five percent of total corporate international debt sales from russia the cme up from twenty percent last year a significant growth although still not back to pre-crisis levels but the. ones we're seeing now are really the first steps towards the euro bond markets after the crisis the market has changed but is not like it was back in the summer of two thousand and eight russian banks have moved from a vicious spiral to fish as sack-o. public confidence in the institutions has returned bursting deposits to record levels this in turn has reduced the risk associated with the sector ultimately meaning the banks can secure more financing more cheaply i do question our business r.t. . ten k. b.p. may become the first russian private oil companies to operate in there now all on thursday is following a memorandum of intent with local. petru vietnam today b.p. says it may sell russian oil to the country in boost capacity one of its all refineries the company doesn't currently have any assets in vietnam but there are reports that it might be intereste

he likes the banks, like citigroup, and bank of america. he says they've cleaned themselves up. and he also liked ford motor, and the cash-rich industrials. so there may be a slowdown, but he says a good way to play it is through corporate bonds because a lot of the companies are cash rich. >> jeff: who else. mark of intrepid capital. >> that's a five-star fund. he says even if there are problems in the economy, you can still find great stocks and companies that capitalize on this problem, companies like rent-a-center. if people aren't going to be buying furniture, they can rent them. there are opportunities, and he'll find them under any rock, even in a down economy. >> jeff: you mentioned europe, and your next fund manager finds some gems there, too. >> madeline matlock, she is under weight europe, but when i spoke to her this week, she said even though europe is going through lots of problems, and you just have to watch the tv and the riots in southern europe, but she likes see mans, and they benefit from a week euro. and she likes novartis. and they have generic drugs. so sh

and it's not just a minority bank, it's community banks also. i really want you to ask these questions so that when you write your stories, you can at least have some basis on which to write your stories. i think that's about it. >> one thing though, the answer as to why one united was present this specific representative was present at this meeting, you do not know why that occurred? >> mr. bob cooper was a chairman of the national bankers association. he was there and then they had -- excuse me was it legal counsel? who else was therefrom mba. what was his title? the outside counsel was there and the chairman elect was there. thank you guys. i think that's all we can do today. we have tried to be as transparent as we could possibly be and afford you the kind of opportunity that you would not normally get in this kind of case and we appreciate your attendance. and i won't be holding any interviews outside this room. this is it! >> because it seems like the appearance here, i know you're saying this is how trade association works, that they don'

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it is run by -- it's staffed up by the banking system itself. it is a bank. it's a central bank. when it comes to any institution, any entity with the ability to more or less dump cash on the system, to loan to whoever, to do a number of different issues that i think folks have never seen before, there's been a lot of skepticism about the fed. certainly the last 10 to 15 years it's come to be an issue where people wonder, what exactly is this institution doing? it's very secret tif. it's not an -- secretive. it's not one that's open. we have something like bernanke was able to kind of use the authority never been seen before. it fires up folks that believe there should be more information out there, that believe that the federal reserve, for anything that it's done, has done much more in the telling tif category of things. i think -- negative category of things. that was touched upon during this debate. host: you may remember senators dodd and shelby, we heard quite a bit of them. here is senator chris dodd from this bill. >> also, we provided can consumer protection bureau, what

and bank of moscow banks accounted for sixty five percent of total corporate international debt sales from russia this year up from twenty percent last year a significant growth although still not back to pre-crisis levels but the. ones we are seeing are really the first steps towards the euro bond markets after the crisis the market has changed but it's not like it was back in the summer of two thousand and eight russian banks have moved from a vicious spiral to a vicious circle public confidence in the institutions has returned bursting deposits to record levels this in turn has reduced the risk associated with the sector ultimately manning the banks can secure more fine now. moscow's prosecutors have filed eight lawsuits against rushes to discount airlines of in the. us all the claims relate to flight delays in july skies price went from being among the most reliable airlines to the worst with fifty percent of its flights suffering hold ups the days of the prospect of losing its license the company has managed to halt the number of deflect delayed flights this month. so for this ho