banks of the french banks are carrying history debt market value or a nominal face value so germany is itself is being sacrificed. to the banks and i don't think you can say that the interest of the banks of the one percent is the interest of germany and less years redefining germany and redefining europe as a kind of neo feudal oligarchy society run by the back so that's why angela merkel herself is losing electoral support in germany the whole political spectrum in europe is being thrown into disarray by the fact that the little birds left and right i mean when you have the whole issue basically one of finance finance cuts across the political spectrum from left to right it cuts across the spectrum of what is germany what is france what is europe and it really has a class war back in business in a very different way than north or sane in times past it's a class for banks against all the rest of society trying to grab all of the property and the political spectrum hasn't been able to deal with it except the socialist party and social democratic parties and socialist international what

or is germany industry in the population german banks recklessly lent out money as a french banks to greece and are holding greek buns and a friend who knows what value we don't know how the german banks are valuing the greek bonds on her balance sheet right now and a german or french or other european bank can buy a greek government say fifty percent. pledge this to the european central bank and get full euro's a. full value on the dollar and get free money by speculating we don't know whether the german banks or the french banks are carrying this greek debt market value or a nominal face value so germany is itself is being sacrificed. to the banks and i don't think you can say that the interest of the banks of the one percent is the interest of germany unless you're redefining germany and redefining europe as a kind of neo feudal oligarchy society run by the back so that's why angela merkel herself is. losing electoral support in germany the whole political spectrum in europe is being thrown into disarray by the fact that what do the words left and right main when you have the whol

is all about is not a central bank it doesn't do it a central bank does it doesn't finance government budget deficit which is what the bank of england new york federal reserve or u.s. federal reserve and other banks do it simply stands by and forces government deficit to result in more and more debt to commercial banks so that instead of government deficits extending the economy with new investment in employment and for market demand a government deficit shrinks the economy by leading to foreclosure and for. a fixture of public domain forfeiture of houses and mass impoverishment that is not what greece thought it was siting on to so what it should do is saying. this is not the europe we thought we were getting we're withdrawing we just stain portugal and ireland withdraw just as ireland voted against the list and constitution and they should say this is nonsense this is war and we're pulling out and we're putting our economy up for grabs for those countries probably in the break go block well except a sense of their currency area because we're not going to stand for this ok so imagine

the banking system. accordingly i hope to hear his views on capital requirements. one of the lessons of the financial crisis should be the importance of maintaining strong capital requirements especially for large global banks. roy woodall is nominated to serve in the financial stability oversight council. he will be a sole member on the kennel for specializing in insurance issues for the first person to hold this position. he will be working on a council that includes treasury secretary, federal reserve chairman and all the heads of major financial regulatory agencies. since mr. woodall will not be supported by the staff of financial regulators unlike the other members of the cal will fight am interested in hearing how he believes he can most effectively expresses his views and help the council monitor systemic risk. the federal government has paid little attention to insurance. the failure of a ig demonstrated the federal govern and needs to do a better job monitoring risks in this critical facet of th

more than that ration like in any situation of a nation of banks. but you see there has the problem of so-called to big to fail or to important of all in the wall during member of this edition of women brothers the great crisis began after that. day i mean fat decided not to support that thirty call it was a good reaction but practically it was followed by the very dramatic development of the situation so now all the regulators skipping might this point ok bank of moscow is too big for a little bit to fail this is number five in russian by the system and it considered it more than one hundred and thirty billion the post of households anyway there are guarantees that this system will have a special deposit guarantee religious lation deposit guarantee. say in russia so it could be paid in a way plus some government affiliated companies and institution and its special municipal decisions of moscow keep their money then the bank of most of all also and the amount of money is also very big even bigger than the household deposits so there's a risk for tha

inadvertent comments from the coffers of the greek banking system although to my banking system if you combine the gold with the loan you will come to a figure which in today's prices is more than five hundred sixty billion years. of course the question is what does this goal mean is the set legally enforceable now ok well let me let me just interject there for a second because you're saying ok the agreements between that were made have been abrogated they don't exist anymore but here you have a george papyrus government signing off on the memorandum what the i.m.f. a foreign banking institution giving them rights above and beyond the greek constitution they are going to take critics call to greece is called as part of the debts that they have imposed on grace it's the same tale as you just described to me that the nazis did they they they loaded grace of the bunch of debt then they they they raped greece now the i.m.f. is loaded with adele a lot of debt and they're going to economically rape grace they're going to take the gold they're going to securitizing monetize and trade all the

it's ruled by bankrupt banks the greater the failure of a bank in two thousand and eight and in europe today the data it's power to set the agenda it's a very strange. which defies the traditional left versus right arguments of free markets versus. collective action or central planning now we have a situation where the more you have failed to the most spectacular your inability to generate profits the more power you have over those who do right well it's based on that scenario the profits that were being made by the so-called too big to fail banks for use to deregulate or to dismantle free market capitalism and they instituted a command and control financial autocracy in its place so it's a failure once again. land of command and control that we saw in one nine hundred ninety one as you describe it it's a repeat of ninety ninety one it's a it's a failure of the polar bear of the federal reserve bank and other central bankers but looking at greece for a second they of course through a seven year period of history experienced military dictatorship under the hunt came is a really much dif

the way we all bank -- ani'

banks failed. all but one was a community bank. so far this year, there have been 51 bank failures and all had assets under $10 billion. >> community banks are the lifeblood of small towns. they help local businesses get off the ground and expand. and, when these institutions struggle, the communities around them struggle too. >> reporter: local lenders complain bank examiners are now too rigid about who can get loans. they say some small businesses are being denied loans if their property values have declined or cash flows have slowed. paul merski, executive vice president and chief economist for the independent community bankers of america, thinks the new rules need restructuring. >> what we need is a tiered regulatory system that matches up with the types of products and services that community banks are providing to have reasonable regulation there so that they can do what they do best, and that's lend in their communities. >> reporter: analysts doubt washington will relax the new rules that emerged from the recent banking cris

banking criminal protection program. and meanwhile back and all the american people are killing folks willing really well yes you could say that ben bernanke in the us is to financial terrorists what the. taliban islamic terrorists well said stacy ever thanks for being on the plaza report. back with much more so stick right there. for the food we've got. the biggest issues get the human voice face to face with the news makers teeth. gritted teeth three. three. three. three. three. four your media projects. are to. welcome back to the kaiser report time now to go to lovely beaches out of athens greece to talk with economists a professor yes vera fake and janice welcome to the kaiser report thank you for having me. more austerity measures for greece from the news but it appears the population doesn't like the plan but what about economists like yourself do you like the plan i think this is one of those occasions where the crowds collectively shows more rationality in. the greater good of the european union makers and all t

now we have the results of the latest european stress tests on banks and they show that bolts bank is just one of nine lenders to fail and it's selling some of its business to burbank in order to improve its balance sheet richard haynesworth the general director of rights and says the acquisition makes sound strategic sense for the burbank. the buying at the bottom of the cycle of the business cycle which means that asset prices are low. in a position to buy it is cash rich the strategic benefit is that it gives a foothold into the european union banking regulation the european union is such that if you branch in one of the countries you are able to open branches in other of the countries with less difficulty. to go to england and so i want to. live with it would have more difficulty. let's take a look at some markets now u.s. stocks are mixed this hour there is a sharp fall in u.s. consumer confidence and a new report says sentiment plunged in july as views on the current economy and expectations worsen that's playing against better than expected corporate earnings from citi group an

for a bank. the buying at the bottom of the cycle of the business cycle which means that asset prices are low. in a position to buy it is cash rich the strategic benefit is that it gives a foothold into the european union banking regulation in the european union is such that if you branch in one of the countries you are able to open branches in other of the countries with less difficulty. to go say to england and so i want to open a branch and england but it would have more difficulty. let's take a look at the markets now u.s. stocks are in the blank that's the spire reports consumer sentiment plunged in july with many saying views on the current economy and expectations worsened. and in europe stocks ended the session slightly down as traders were cautious ahead of the release of those bank stress tests. and markets closed next after a difficult week volumes were the owners and many people were away on holiday and direction the move unclear now let's look at some individual movers on my sax the

last year both irish banks that were tested passed. the bank of ireland and the allied irish bank. we remember what happened to those. both collapsed and needed bailouts. it left the people questioning the viability of tests. so what is the solution? stricter standards this time around. they're looking at reserve benchmark p 5% core capital, the ability of banks to happen contraction in the euro zone in 2011, a 15% slide in euro stock markets and the ability to handle potential trading losses on sovereign debt. not all are taking part. only 90 results are to be released and the german bank withdrew on thursday to avoid public fame you're. they refused permission for the publication of results and the withdrawal has to some extent challenge validity of these tests. so what are the implications if a bank fails? they must show plans to plug the shortfall by the end of the year. they can request tax payer money only if needed. and if it only just passes, it's forced to improve its capital offers. back to you. >> of course where i am in italy, a number of the italian banks hold no less

by bank basis? will you released the access plans that response to problems in the consent orders? what about the engagement letters for the supposedly independent consultants hired by the banks to perform for closure reviews of the banks? >> we are as concerned about these issues as you are. we have issued cease and desist letters. we have told the banks they have to engage independent consultants. we have been making sure that they are independent, providing supplementary diagnosis over what we have done as well as action plans for the banks. we will be both reviewing those action plans and the conformity of the banks to those plans. our current plan is to provide a report. we will share with you, obviously, the report. that will explain what the findings were and what the proposals were and what the reactions were, and the performance of the banks. >> i am sorry to interrupt you, but i have less than five minutes. i have a specific question. are you going to release those three entities i have as

the european banking authority gave most of the bank good marks. the tests tested where banks had enough capital to deal with all kinds of economic developments. eight banks failed the test. one german bank would have been on the list, but the bank pulled out in a dispute over the methodology. the test stimulates a deep economic recession in the european union. the banks had to have enough capital reserves to cover bad loans. share prices tumbled and unemployment tumbles. the institutions need to tap into their reserves. banks have to have a reserve cushion of at least 5% of their capital. below 5% means they fail. the banks that did not pass now have until the end of the year to increase their capitalization. they include institutions in spain, greece, and austria. how significant are the results of the stress tests. we spoke to our correspondent. >> the european commission will be relieved that so many so-- so -- so few banks failed the capital requirements. the message from the european commission is that this is an early warning system, no need

banking group that will pay your money graham says that by two thousand foot ceiling the bank plans to generate seven per cent of its income from international operations have also felt that he believes in the great potential of those eastern european countries where the world bank branch is the baking market. or the market generates a couple of months of five billion euros by two thousand and fifteen that's more than russia's potential so think he just wants to use this eastern european union bank as a platform for its whole international operations because among the top ten lenders in the czech republic slovakia croatia and bosnia this is a traditional banking business there are no complicated structures or toxic assets there's no dependence on securities operations and almost no big corporate clients it could be called the bank for medium sized and small business. their bank plans to finalize the deal by the end of being here is just the beginning here must be upset that they hold resolutely without some banking also in other parts of europe and in turkey. the results of the late

the abilities of the central bank so i mean it's a long long story. that we talked just in on one on one talk with you but the concentration different program this is most of all the problem of the management previous management of the baton. and a lot of. some very specific operation provided in the interest of the top managers and they have the open side to the bad and closer to the band but it could be. information from that class sizes a lot of problems the system it's not oh it's partly it's problem of the system but it's all trust is the problem of management such a law so you're working on it you know you are working on that is the only proving that the concept of this is a problem on the system and now we will have some demand from the president of the russian federation for us to make some proposals and most of the changes will be done. before very briefly i believe if the central bank of russia as a regulator supervisor has not their rights you have to have it's much lesser than the rights of other events in the war i mean to against the onu

are you shorting german banks are you shorting banks. he says no there is one bank alone one major bank i am shorting while pilot buying silver by the way i'm shorting one bank and the reason he's shorting out bank is it alone of all of the major banks in the world is still at its all time high that tells you where the power is who still standing well j.p. morgan they just reported their quarterly numbers they came in with their earnings i think they were a little above expectations you were way above expectation because all of their liabilities on the balance sheet of the federal reserve bank in washington j.p. morgan doesn't any of its own liabilities or runs up liabilities and then it gives them to the people of america the citizens to deal with they keep the profits the said owns the liabilities oh does this sound like enron with their special purpose and to account seven hundred of them they just part of their liabilities off the radar of any regulators and they claim oh earnings are going up every quarter yes it is is j.p. morgan t

in france these were banks that were remnants of a soviet banking system. one or two of the commercial banks they'd set up our banks outside of or outside of russia before the crisis and treaty b. has recently. branches in vietnam and in shanghai put spear bank did not have much outside of russia so it's been catch up basically we think maybe it's not playing it's not playing catch up but in a different sense because what it's done is it's gone for another growing market which is eastern europe to some extent wrong could say the eastern europe is a bit more like russia next soviet union the markets in which we t.v. is working but could actually as burbank go further and compete say with german and french giants. i think that that would be difficult certainly if you're looking in a long term perspective so a plan fifteen twenty years then that's definitely were aiming at but initially what they will have to do is first of all consolidate their management their whole team to be a multinational multicultural as opposed to being simply a savings bank in russia

abilities of the central bank so i mean and so long a long story. to talk justin on the one i want to talk with you but the consideration different problem this is most of all the problem not the management previous management of the battle. and a lot of. some very specific operation provided in the interest of the top managers or the have the open side for the bad and close. but it will be. information from that class of problem the system is not know it but this problem this isn't going so fast as the problem of management such a lot so you're working on it you know you are working on this the only proving that unsettled this is a problem of the system and now we'll have some demand from the president of the russian federation for us to for the to make some proposals of what should be changed what should be done. for very briefly i believe the simple bunker for us as a regulator supervisor have not their rights have to have it's much lesser than the rights of how that relates in the war i mean to against the onus against the lions or some of the b

and of for saving the banking system not saving but preventing another collapse of the banking system all right well finally of course we're talking here you're actually sitting on a greek island how much do you want for it how much do you want for your children. yes well that sounds very impassioned but as we know it is more all sad no place than today's global economy morals don't trade out any exchange there for morals down exist so it's just a start everyone's got their price and today's globalized economy so out there is there that one twenty or a little less passionate maybe next week but let me answer this question in a discussion that way i was talking to investors from switzerland and germany who really want to get their hands on good gas and they said to me off are they going on the last few days that they will withdraw from the for from the competition to get these assets and it will be strong because they can sense the passion that you mentioned and they do not want to be involved in assets whose legitimacy the probity rights and the cost of the question by a very passiona

here i mean we can all we can all criticize the banks but i mean the banking system in germany and france wants to survive this is well i mean it's damned if you do damned if you don't that's the problem absolutely right but let me seriously you know sorry it's under your first go bankrupt shares i'll go ahead. well the problem is that if you let them go bankrupt and if they default and this contagion spreads is probably going to skip over spain and hop right into italy where we're still grappling with it today then you've got a real problem this is not a domino effect in the eurozone this is a break for the rest of the world that's been thrown and his death and going to affect our markets look the europeans can make up their minds hang on the europeans can make up their minds over a two day conference we took eleven trillion dollars in the global capital markets for that and don't think we will get him here if he gets it and it's too big to fail at this point and use. thirteen years you may have been going to years when the time jeremy point dennis sherritt banks have been going bankrupt

already covers banks. we do not need a new law to do that. it does. as my neighbor pointed out on that table, the formula retell represents the broad categories which includes a range of uses, including banks. the only with the planning department can reach the conclusion of banks are not covered is to effectively cross out sales and service retail in the law, a broad category. that is what they have done. it is unfortunate. why has the not come before this commission before? the answer is simple. most of the things that would have been in that so-called exemption came to you on a conditional use for another reason. there's or footage was bigger or something else happened. it was pointed out that there may be others that did not even get on your radar. but the reason we have made such an issue of it on the visit there with this bank is that the planning department has determined that the square footage does not trigger cu. so we essentially have the bank with thousands of branches across the nation that is

to make the major global banks international banks they get the local governments like pap address to commit fraud on behalf of the banks to lower the economies up with hundreds of billions of dollars worth of debt in the case of greece we're talking now five hundred billion euros and that that was illegally parked on their balance sheet and then when they can pay back with that they take all their assets as recompense for the debts that they never incurred but you're saying the big difference of course is that in greece they're part of the euro zone so you have this contagion effect whereas in argentina it was a solvent. an economy and it was a bit of a silo effect it just happened within the confines of that economy correct exactly so yes that's exactly the point we have to see this is really all part of a model we are dealing with a global power elite whether you're in argentina whether you're in greece whether you're in britain or even in the united states a global power elite that is above all nation states that's why for many decades now they have a clear public and be number on

-- banks' lawyers wrote to be good for the banks, profitable for the banks and let the consumer have no idea what's in that little print in the legalese. yes, they want someone, a strong agency, reading that fine print with their interest at heart in saying, no, you can't do that. you can't cheat consumers that w. that's what this agency does and the american people want it. i yield back. the chair: the gentleman yields back. the gentlelady from west virginia. mrs. capito: could the chairman tell me how much time is remaining, please? the chair: the gentleladfrom west virginia has nine and a half minutes, the gentleman has 13 and a half minutes. mrs. capito: i reserve my time. the chair: the gentleman from massachusetts. mr. frank: i am sorry the gentleman from west virginia would yield to me but there was a lot of talk about switching positions. the gentleman from west virginia vote -- the gentlelady from west virginia voted against this. now she's for it. i'm glad my republican colleagues, having opposed a consumer agency, now are all for it. now i yield two minutes to the gentlema

banks the government there has just that that's the two thousand foot ceiling bad bank plan that generates up to some of the press that all that comes from international operations it also says that he believes that the great potential of those give the european countries where more banks have its branches is that the baby market took such punches as the czech republic slovakia will be generating up to ninety five billion euros by two thousand and fifteen and it's more than russia's potential so spare a bank could just wants to use eastern european units all fog bank as a platform for international operations and the demographics planes why they chose them these parts ecolab and. bank is among the top ten lenders in the czech republic slovakia croatia and bosnia this is a traditional banking business there are no complicated structures are toxic assets there is no dependence on securities operations and almost no big corporate clients it could be called the bank for medium sized and small business. so is better bank plans to finalize the deal by the end of the year and it's just the beginn