these are global banks. it's not simply a spanish bank, a global bank. there are global exposures.some of which have high ratings in u.s. banks. so, at least the measures i talk to say, and i don't think the analogy exactly works. but notwithstanding that the commission is concerned because while there's a good process by which participants in money market issue quarterly there's a disorderly process. lehman brothers is obviously a disorderly process that we worry about. >> i think we have time for one more. >> just quickly, one subject, this is almost a question of you, greg. this weekend the economist, the exchange-traded fund and exchange traded, basically looking at synthetic side of the market as well as, let's call it the cache site. and it grows and its potential resemblance to some of the asset bank markets, caused us trouble in '07 and away. are any of you worried about it? >> broadened that question, what's the next source of the crisis, etf's or something else? >> etf come you got to a distant which are etf is a free letters that cover a broad swath of different types of

in crisis you know yes banks bail out other banks it's the i.m.f. or it's other banks dealing up thanks but this is this is a little more serious you're talking about trade precipitating in a contagion across spain probably and then who knows where else and so is trying to avoid another crisis situation which then not is this a little bit higher up than just banks bailing out banks we're trying to prevent a financial crisis to repeat itself for what happened last spring and that will affect not only europe it will affect us here in the united states as well ok andrew i mean for it's kind of a slippery slope scenario here because this is what's happening i mean there is this tendency all well i'm in trouble i have parot all this money i lied about it especially in the case of greece and now we need help so germans really come out ok for i mean we see this time and again. so here's the question cher is odds right you have to bail out the banks if there's one thing we learned from the last couple of years and from the great depression it's that if you

central bank and european central banks go in and engage in extraordinary measures like they did in 2008 to keep the funds solvent and the dollar a share limit. so it's a worry, but i think it's probably a manageable worry unless you have two or three countries default at the same time. >> susie: for people who want to play it safe, what investment moves should they make? >> i would migrate up the quality scale in every asset class, whether you own bonds or stocks, you want to migrate up to big conservative stocks with a global foot print that have gentlemen graphically devirs -- diversified. you want to go towards high quality triple a rated debt. it's not a time to run into a fox hole, but it's a time to put up a fence because there's a lot that could go wrong. migrate to quality. >> susie: and what about if you own a business, are there any moves you should be making to protect yourself from what's going on in greece and europe? >> well, the risk is that the financial crisis, the financial sector seizes up and goes into a crisis again, and we lose access to credit from banks and finan

owns the money of the family and the foundation same thing bank accounts and that's it's a was a bank transfer laundering money under duvalier a was much easier than it is today means of bogus firms nor numerous money transfers were necessary money from the state treasury and that received from other countries especially monetary in asia was transferred to a foundation opened by members of the family of the head of state from that it went to europe. but the account was not. a divided. nation in between it's. your fishel account holder is the vision i called foundation however it was clear to everyone the real. divide in your family. in the one nine hundred eighty six to two vali had to flee to europe then he shared his time between paris and the fashionable hotel on the border with switzerland he made several unsuccessful attempts to get access to the multi-million fortunes in the way in swiss banks since the early two thousand switzerland has been vigorously trying to rid itself of the image of a country whose financial institutions always welcome money without questioning its origin

, sometimes big banks and ally don sometimes small banks than theye. don't have much choice. they don't like that. and they would like to see us do it. something about it so what senator durbin proposes is a way dea to deal withl that. try t he intended in his legislation to try to help consumers, to also help merchants but he also tried to protect small banks those in under i think $10 billion to protect credit unions and their see if we numbers. let me see if we have a quote allf here. banks the of different regulators, i don't have quotes from all ofere is them but here's a quote senator with tester shared i think at least bernankhe in bernanke as the chairman of theer federal reserve when he was talking about the unintended consequences and sheila bair says she's more concerned that these institutions may not actually receive, and she'sive" talking about institutions tal banks, community banks, creditbhl unions as well we are concernedaassets these institutions may not receive the benefit of the interchange fee limit exemptions explicitly provided

undeclared money world like it's no longer all swiss bank accounts was. a journalist from the french magazine l'express feels the chain of revolutions in north africa is only just picking up street he's expecting me well evils in the center of the confidence over stolen funks. maybe it would be the case one day like up and said. recently mountain is your other countries you know tunisia two years ago or one year ago was not a democracy it was a machine that one day we we were normally in it. but according to ship activists realtors selling real estate in what is known as the dictator's avenue in a prestigious part of terrorists will experience no drop in the numbers of clients . the schemes used by some leaders of third world countries to hide in the billions of dollars will simply become more intricate. there is still a long way to go before the end of this international clock bust about big dirty bomb. it was created to serve public interests to inform and to entertain. these days there's nothing easier than opening a new media outlet but there is nothi

one of the things that the people wanted on divisadero street was a bank. this is a bank. this is what the people what. please denied the appeal. thank you. >> thank you. next speaker, please? >> hi, david, speaking in favor of the appellant. i have been a neighborhood resident over 15 years. they said no such vote was taken at alamo square for support. i agree with the appellants arguments that we have been unfairly denied an opportunity to have conditional use at the planning commission and notification as required. clearly it is formula at retail. that was the intent of the laws that it exceeds 4000 square feet. not only that, mr. hernandez and i work together to file within 30 days of the permit, and i was shocked the person at the planning counter rejected it. the said because there was no 31 to notice that we had to file it within three days, which is ridiculous. if anybody had followed the d.r., you have to do all the mailing labels, all the work chase bank does not want to do we had to do, and the planning commission has the right to hear things the public is inter

this is a compromise between the biggest banks, medium banks and small banks. it is a banker's compromise for a banker's benefit. in the last two days letters ofpzing this -- opposing this amendment have been issued by consumer groups. incidentally, our kids at college bookstores using debit cards are actually paying more for their books because of these fees as well. 308 national and state merchant trade associations and 6,500 small businesses all opposing this so-called compromise amendment. it isn't a compromise. secondly, this amendment is described as a one-year delay of the interchange rule making. actually it's an open-ended delay. the bankers who wrote this very carefully crafted it. the amendment requires the federal reserve's rules to be rewritten in one year, but it doesn't set an effective date for the revised rules. there is no telling when, if ever, these rules will go into effect. this delay could be significant. and from the bank's point of view, the longer the delay, the better. what's it worth? $1.3 billion a month for every month they can del

of the one point three billion worth of credit default swaps from now on it post bank a public banking arm an arm to the greek government has about thirty three percent stake in two private books to a specific from what he actually names on the floor of parliament and he actually he actually cites people on the management people on the board it was a pretty deafening hour geishas and it was one that he was prompted to make by certain affairs who's a leader of another minority party in the parliament. national mentioned that after after making his own issues and after i wrote my article the firm that he cites came out with a full denial but they said that not only been a debate not by any critic the falls are projections from atlantic coast bank on greek pad but they didn't buy any specious period in that they never advised their clients to buy any and the the the m.p. actually did not provide publicly the evidence that he he claims he is the salmon it into many hands in fact he got on national television afterward and said that no one you know which no one should try to or that he is s

nine billion to french and german banks in other words the french or the german banks own bonds that. it will take a haircut but it's the american banks who stand it's a catastrophic losses because they're the ones who bought the c.d.'s if in fact there is a default so the question is where the american banks suckered into buying these c.d.'s contracts in the same way that george competent was suckered into selling them or is there something else going on you know it's a really good question i've been i've been trying to figure out what the deal is with this sovereign c.d.s. market in general for some time now because as many people have pointed out in some cases it's clearly fake insurance and in the sense that there are c.d.'s contracts on u.s. treasury debt and in my opinion if you have a u.s. default who exactly is going to have the capital reserves to pay out the claims on insurance contracts on a new u.s. the thought so in general it's to me it's a system it's another example of this massive counterparty risk risk that exists in the system that i think functions as a sort of ma

undeclared money worldwide it's no longer all swiss bank accounts was. a journalist from the french magazine l'express feels the chain of revolutions in north africa is only just picking up speed he's expecting new up people in the center of the confidence over stolen from us. maybe it would be the case one day like the prince and the recently tunisia are all the countries you know tunisia two years ago or one year ago was not the democracy it was. that one day and we will be able to work normally in it. but according to should put activists realtors selling real estate in what is known as the dictator's avenue in a prestigious part of paris will experience no drop in the numbers of clients. the schemes used by some leaders of third world countries. the billions of dollars will simply become more intricate. there is still a long way to go before the end of this international police bust about big dirty bomb. they feasted this is not a promotion but war and. peace forces and the second step is are you sure the supreme victory speech they have no idea abou

banks. we saw the cost associated with the failure of a large interconnected institution. i strongly support the need for buffers. it seems self-evident that capital requirements for the largest financial institutions should be higher and not lower than the general standard that applies to smaller banks, yet prior to the crisis, a number of large european banks implemented the so-called advanced approaches under basel ii allowing them to increase leverage by using internal models to set capital requirements. large u.s. ensured banks and their holding companies were also on a course to take on additional leverage by using the risk models to drive risk-based capital requirements. on tuesday of this week, we corrected the situation. the fdic board approved final rule joint with the occ and federal reserve to implement section 171 of the dodd-frank act. this provision of the act, the collins amendment says the capital requirements of the largest banks cannot be less than the capital requirements

banking. since some of my testimony was quoted so extensively earlier today, i won't repeat those portions now. however, the important lesson to draw from all the actions taken in the last few years is that capital is one tool, but certainly not the only tool, nor a cure-all for ensuring that there is not a recurrence of a financial crisis. jpmorgan chase is not trying to avoid regulation. but we do have serious concerns that the regulatory pendulum has swung to a point that risks hobbling the competitiveness of our financial system and of our economy. basel iii is a dramatic increase in capital standards, focused exclusively on the largest banks. it focuses particularly on trading and other assets i could to produce systemic risk. at this point the best course for the system is not adding a surcharge on top of the basel iii standard, but rather ensuring that liquidity, derivatives and other rules are written right and applied globally. one year after dodd-frank, other countries are still deba

tunisian president ben ali had been taken out of tunisia and hidden and european bank accounts. and she knew zero itself the search for the next president's money began two days after he fled the country in january two thousand and eleven however should correct this started investigating ben ali's finances long before the justin revolution according to the organizations estimates the x. president's family may be worth as much as five billion euros. swiss journalist mildred zaki has spent several years investigating the financial wheeling and dealing with some leaders of the world countries but even she only give a rough estimate of their fortunes in years when i was five billion dollars. we've estimated that seventy billion it was serious also that this tomatoes the telegraph . that's went up to one hundred twenty billion it is believed the family of the libyan leader is africa's richest the gadhafi clan keeps billions of dollars in bank accounts according to specialists from the international center for asset recovery all of libya's state run companies have some links to the co

banks. i mean, in canada you've got a handful of highly regulated, almost utilities that are banks -- under five. that's a very different scenario than we have in this country where we have community banks all across the country that are out there lending to innovators. banks all across this country lending to innovators, very, very different environment. they're able in canada to actually generate fees in other ways, and of course they don't have the community banking system and credit union system that we have across our country. so to me, what i hope will happen at 2:00 -- and i know this has been a contentious issue, a vote that candidly a lot of people would just assume go away because people have friends that are retailers, people have friends that are bankers, and they hate -- quote -- "to choose between their friends" -- but i hope what'll happen at 2:00 is when people come down to the twol vote, they'll look at the policy, and they'll say, you'r you are righ. the financial industry

renegotiate and the banks take a hit the banks will be insolvent and she's not allowed that for the french banking system alone the german banking system so they're going to play hardball with the greeks and that is just going to push them further off the cliff and eventually they're going to just quit the euro and it is going to be worse for the european financial system if that happens because then potentially the greeks would simply repudiate all the debt or worse or that which is the same which is convert all that debt into new drachmas and then instantly devalued the drama the french and the german finance show an economic and political interest have to sit down with the greeks with the irish and with the spaniards and they have to renegotiate they have to renegotiate now while they still can because later when the first of these countries exits the euro and they're at their world does not end you know the other countries are going to get the idea that hey why don't we leave the euro and they're going to exit the euro and it's going to be worse for the french and german banks a

>> so our banking corporation is a bank that is located in bahrain. it is not located in libya. it was at the time that her from the federal reserve, it was not not -- the libyans bought a substantial part of the bank after all the loans that were extended by the federal reserve were repaid. we work with the treasury department and state department, which the treasury and state departments have responsibilities for identifying banks that the united states should not do with the card says foreign-policy reasons. responsibility for designated as they express with treasury and the state department. we consult with them to make sure we don't land to institutions we have determined we should not be landing to. at the time our credits were extended, our banking corp. was not identified by treasury or state department as a bank that was of concern. it was a foreign bank that had operation in the united states that was well they did in all respects like another foreign bank from a foreign country. >> mr. chairman, i tell you, knowing that you for many years have picked up more and more

applied to invest in banks. in effect this system allows large financial institutions to choose a regulator that offer the least restrictive supervision. the fed did not have authority to set and enforce capital requirements on major institutions that operated outside a bank holding companies. that meant they had no supervision over investment banks, a diversified financial institutions like aig or non-bank financial companies competing with banks in the mortgage consumer credit in business lending market. the office of thrift supervision duke its role as supervising thrift, not the holding companies such as aig. regulators permitted banks to engage in riskier mortgage lending stepping in with guidance on this sub prime market only when it was too late. today the dodd-frank act provided authority for clear, strong, and consolidated supervision by the federal reserve of any financial firm, regardless of legal form whose failure could pose a threat to financial stability. we will have a single point of accountabil

large banks. they had the authority, they department have the will in the 1970s and '80s. as for the federal reserve, authorities should have no regret that some of their lending powers have trimmed back. political officials should have to sign off whenever taxpayer dollars are put to risk such as when lending to nondepository institutions. there is much to regret, however, about the new responsibilities given to the fed. my third point is that monetary policy making is already hard. adding an ambiguous mission regarding financial stability invites threats to the fed's reputationment the federal reserve is viewed by the public and elected officials in terms of the performance of all of its responsibilities. multiple goals invite multiple opportunities to remiss steps that'll damage its reputation. missteps that are more likely when given a mission almost impossible to achieve. come pounding the problem -- compounding the problem are the consequences for the communication of policy. public official

applied to invest in banks. in effect this system allows large financial institutions to choose a regulator that offer the least restrictive supervision. the fed did not have authority to set and enforce capital requirements on major institutions that operated outside a bank holding companies. that meant they had no supervision over investment banks, a diversified financial institutions like aig or non-bank financial companies competing with banks in the mortgage consumer credit in business lending market. the office of thrift supervision duke its role as supervising thrift, not the holding companies such as aig. regulators permitted banks to engage in riskier mortgage lending stepping in with guidance on this sub prime market only when it was too late. today the dodd-frank act provided authority for clear, strong, and consolidated supervision by the federal reserve of any financial firm, regardless of legal form whose failure could pose a threat to financial stability. we will have a single point of accountabil

andnk rural banks. think we all know the senator itions, from illinois likes to use these larger institutions but all of us know the big guys just getigger bigger, just get bigger when we and create do these kinds of things and create hardships for the institutions the two-tiered system was set up won't work. the fdic has come in and said and look, you cannot make it works a with the small banks andre credit and unions the occ has come in and w said it won't work.is will market forces will take over.rushed. this will not work. the they will get crushed.ve come i the state examines, the state bank commissioners have come in i and said the burden the amendment as written is going toonsumers. be disastrous to consumers. it's going to be disastrous toe all d the smaller institutions with loo which we all deal.water so look i'm not trying to carry water for either side. f i'm trying to come up with a solution that's fair.or i worked with senator tester. senator senator brown, numbers of people to try to come

banks don't pay federal taxes. i am not a subchapter s bank. i'm a 750 million-dollar for-profit commercial bank that pays taxes, but i pay taxes twice. i pay taxes at the bank when they make the money, and then i give it did to my owners, the shareholders and they pay taxes on the same income. it is true that subchapter s banks only pay the taxes that is dividend did to their owners but they do pay federal taxes and that is quite a misnomer to say that they do not. so i wanted to clear that up. now, as to your question, no, there is still a great concern on our part, and the concern is, i will just use my bank as an example. i compete as a 750 million-dollar national bank against credit unions that are much larger than i am, i am, ge credit union, and i look at their ads. i look at their billboards and the first thing they say is, if you work, worship, in essence breathed in my market area, you were there members the first of all this whole idea that they have a common bond is not through. so they are competing directly with me. i am awash in

in federal bank. i look at the credit easing in ads and billboards. the first thing they say is "if you work, live, worship, in essence, breathe imi market area, you are my member." this idea that they have a common bond is not true. they are competing directly with me. i am awash in liquidity. i am down to 65. i want to make loans and i want to make loans bad. i fall over any small business owner who was a loan because i need those loans. there is only two reasons i will lose a loan to a credit union. number one, they would use their tax-exempt status to underprice me. you must realize that when i make a dollar, i only keep 70% of the dollar. they keep 100% of that. they advertise that ability to charge less for loans. the use that tax exempt status. they do not have a common bond. i can lose a loan because the can underprice me, or i can lose a commercial loan because i would not have made it in the first place and they are willing to take more risk in not willing to take. i do not know that that is

supposed to be banking but isn't treated like banking. i think that is probably in some ways a useful definition because it makes you look into areas where there might be gaps in the regulation of these entities. i think tom hoenig touched on one thing -- unless and until we regulate leverage for an asset at the level of the assets or an instrument, it is going to be very hard to get a good grip on the regulation of the shadow banking. there is sort of this untainted. in the market that risk will travel from balanchine to balance sheet until it has found the balance sheet with the lowest capital requirement to hold that a risk. uc transaction taking place because it makes sense for a one along the chain to the transaction, because all the leverage in the financial sector is maximized. it is the end part of the pipeline keeping the lowest capital -- everyone share some of the benefits of the higher leverage, of the party originating the the risk. several tempore and forms that the risk transfer takes place, and that is what i wanted to hig

bank of public banking arm of the greek government that they own and they have bought for the in the previous few months they say he sold it to a group of friends for forty million dollars profit these group of greek oligarchs are now sitting on twenty seven billion dollars that george papa. handed to him that's right it's a clear case of tyranny and treason that's why we say on the show there should be regime change in greece and that means regime change i don't i don't know how to sugarcoat it i mean you go down there to the assembly of the parliament or whatever distorts papa dry you idiot is living and you pull him out and you get rid of him because he committed treason in committed treason and he committed tyranny so what are you going to do about you going to get drunk on his own like you do every other day or are you going to well that's right you want to be part of disney land by well so these one point three billion dollars in credit default swaps which are insurance against the default of greece. ok he sold them to these private investors in december of two thousand and nin

what are those banks? chase, wells fargo and bank of america. they have been fighting viciously to stop this rule from going into effect because there are billions of dollars at stake and they don't want that -- they don't want to lose that income. so let's have a little trip down memory lane about these banks. do you remember a few years ago when these banks got us in the biggest economic mess in current memory? did you notice any change in your savings account? perhaps your ira? the money you put away for your retirement? well, i sure did. i think loretta and i lost about 30% of our value because they were playing games with subprime mortgages and new derivatives and aig offices in london, and this wholly mess ended up being visited on families, businesses and consumers all across america. and we were in a panic. the chairman of the federal reserve ben bernanke and the chairman of the treasury, hank paulson, he said if you don't do it immediately banks across the country is going to fall and the economy is going to collapse not just here but a

in the bank of england and the bank of japan again i suggest waterboard k.-max so he's also saying that the greeks are not the problem it's not the people of greece that caused this problem it's the monetary system that is the principal agent and the fact that this is true you could see in the price of gold he points to so that takes me to the next headline greeks turn savings to gold and perth mint silver coin sales surged to record on haven demand so the financial times this article points out is reporting that greek citizens are emptying savings accounts and buying gold as they brace themselves for the possibility of a sovereign default and a run on the banks sales of gold coins of some word in recent weeks as people are converting all their savings into gold that turned gold and silver and you know we were now friends recently ranking in a documentary down there and had a chance to speak before thousands of people have been on the national television in athens and translated into greek and the message to the greek people is clear to buy gold and silver t