i think there is a class issue related to banks and banking, as well. a lot of african-americans prefer to go into bank branches. other populations don't necessarily choose to do that but i think there are real class implications and i'm not talking about in this legislation specifically as much but something we need to think about across socio-economic spectrum, people who are more trendy might use square and other kinds of -- other formats or ways to pay for their transactions but for other populations of people, having a bank and having access to a bank is an important construct so to the extent that areas have outright bans, they might want to think about whether or not this is something that should be taken into consideration. i also think -- we talked about banks. obviously wells fargo is headquartered here, it is -- it would be interesting to know to talk about in that context of money and how it goes back into the system but again, i do believe that for what we said formula retail was, for size, format and marketing, it makes a lot of sense to p

that's not the world of banking. what we're doing here is reacting to somebody's concern that they don't like blue signs or they don't like stagecoach signs or whatever is going into their commercial strips, and that's really not what formula retail legislation was designed to protect from. so i urge you to urge the board of supervisors to table the legislation. thank you. vice president o'brien: thank you. any further public comments on this item? come forward, please. >> hello, my name is gio danler-katz, i am a community outreach liaison on behalf of chase morgan, chase bank as a consultant and help with their government relations. since they were mentioned, i wanted to share some thoughts. we don't have a formal position on the legislation, but are aware of the fact that the impetus as was explained is in part due to a group of individuals who were not happy with the project that went forward last year, and appealed it multiple times on the grounds that the project should have fallen under the formula retail rule

that whatever the bank will look like in the future your advertising your bank this is what my bank will look like. and you know suppose the pretense of the site is that bank of america is asking for your help to advertise what they should be. and a lot of those ads are really really funny and a lot of the ideas are fantastic too you know you scroll through a few of the ideas and you realize oh yeah these are some really commonsense basic no brainers we can we can run banks we just have to have the guts to do it now we are you making any money off of this is wells fargo or anybody else trying to push you to do this are is there any you have financial motivation behind this on your part i know we should make a joke here about how much each of the other banks are giving us but no no no there's no financial motivation doing this there's a straight up answer there and tell me a little bit about your organization has doing some reading and some people are wondering who is behind this super web site there was some speculation occupy wall street was dying that i saw that yes and that and w

. >> all the elements of the bank, the ideal bank that we're talking about, the occupy bank, has been done before. they're present in mutuals, in credit unions, in community banks. but what we're trying to do is, you know, very boldly, very ambitiously, try to imagine all of these characteristics in one bank. and available to everybody, country wide, which at the moment, credit unions, for instance, are not able to be. you know, we want something that is as plausible, as easy to use, if not better, than the current for-profit banks, on the high street, that people and businesses use today. >> you talk about the methods of democracy. how do you -- how is that taking place? >> in the beginning, very interestingly, when everybody showed up, the lot of people showed up, everybody wanted to give their speech about what was wrong. me, too. you know, "what's wrong with the economy? what's wrong with banking? i've got to have my say." but once that people had had their say, we, you know, we got down to work. we've invited real experts from credit unions. people who'd run community banks, prof

we closed about a banks. 60 minutes did a piece on a bank failure. that was a high risk decision i made. you let the crew in you never know what's going to happen. i had faith in our resolutions people and our process. we let them accompany our resolution team on a bank failure and it went just as smooth as silk. they all did after indy mac. it was wonderful. a gentleman and his wife came in with his suitcase with his wife he was going to pull all of his cash out. we had greeters at the door talking with him. and after they talked with him more, he decided okay, i'm going to leave my money in here and "60 minutes" filmed the whole thing, when he was leaving he was saying how wonderful the fdic is. it was a very big confidence instilling process and worth a lot more than all the paid advertising and public service messages that we had done. it was really -- it was -- it turned out to be a very good thing to do. >> what's your sense -- i don't know if your friend peter schefft is still in the audience? are you here? i'm going to ask a question he would

bank c.e.o.'s are set to meet with the fed about regulations but what else are central banks governments and big big working on together behind the scenes we'll talk about market manipulation with bill murphy and gather and guess who may reach the top spot at the bank of england. this ministry looking squid is just one of many species out of sight and out of mind that could be human at. out of mind things out of the vampire squid not in this life to i will talk about it let's get to today's capital account. alright it's monday let's talk about gold let's look back in one of his writings a leading english art critic of the victorian era john ruskin told the story of a man who boarded a ship carrying his entire wealth and a large bag of gold coins now when a storm hit a few days into the voyage and the decision was made to abandon ship the man strap the bag around his waist jumped overboard and saying straight to the bottom of the sea now the man's body was found with the rock of the ship many years

huge panic. >> no bank wants to lend to any other bank, because they're afraid that the other bank won'tbe able to pay them back. >> turmoil in markets around the globe. >> why didn't the government save lehman the way that it stepped in... >> narrator: at paulson's office, the telephones lit up. dozens of calls from around the country. >> hank was very nervous. he was getting calls from large manufacturing companies that were struggling because of the credit markets being frozen. the longer it went on, the more trouble the economy was going to be in. >> devastated by losses at mortgage investments, the brokerage is selling itself to bank of america. >> it's a tough day, man. it's a tough day when less is more. >> yeah. >> the system stopped. all forms of payment froze when we got to the depth of the panic. banks wouldn't lend money to each other. the first money market mutual fund in the united states, quote, "broke the buck." commercial paper, one of the most basic instruments in finance, that market failed. >> investors were shaken by lehman's bankruptcy... >> narrator: geithner's log

we have bank earnings in focus. industrial bank reporting strong earnings. tomorrow we have icbc, bank of china later on today. so a lot of people waiting to see what kind of profits that will continue to show. not to mention there was rumors circulating we could see some policy easing from the pboc. so this particular market trading a little bit to the down side. the hang seng pretty much up 0.8%, china unicom, mixed bag of earnings, posting strong earnings giving a lift to the market, but byb being assumed by warren buffett, that traded to the down side. that seems to be weighing, all that mixing in to the basket of the hong kong market. elsewhere south korea up 0.1%. not a strong finish despite data showing a faster than expected growth in the first quarter. guess what? data showing maybe the outlook will look uncertain from here given the global uncertainty surrounding the export picture. australian market up 0.3%. new zealand pretty interesting. flat. why some we had the central bank keeping rates steady, but signaling a strong dollar as a concern. indi

and the central banks are afraid if all of the bad that's written off most of the banking system worldwide would be insolvent but it's an inevitability that these debts have to disappear one way or the other and unfortunately central banks today are not addressing the heart of the problem or you think they're protecting the banks at the expense possible that current and paid and apparently. yeah they're protecting the banks and they're protecting the way the system presently works you know this relationship between the governments and the banks all of this new financing that the spanish government to a large portion of it was bought by the spanish banks that gave this the spanish government the currency it needed to continue to filling its promises but the point i was making at the very beginning of this interview we're at we're pretty close to the end of the line here and my timeframe has always been twenty thirteen to twenty fifteen when things are going to blow up and we are i think moving toward that kind of timeframe that eventually central banks are going to have to realize that the

industrial bank. lgestgton's oldest and american-n-owned national since it opened its doors and 1934, the bank has grown from six employees to more than 150. $192,000 to more than $300 million in assets. aboutlast week we talked the problemems facing of community, american adustrial bank has been leader in mirity lending. joining us today, doyle mitchell, president and ceo and minorityrman of the bankers' association, and former chairman of the d.c. chamber of commerce. ana co-owner of the washington nationals. mr. mitchell, thank you so much for joining us today. abouteek, we talked nroblems that the "washingto business journal" uncovered. some very troubling statistics. do you think there is a problem it minority lending when comes to small businesses? >> absolutely. in the late 191970's, you had te community reinvestment act that was not enforced until the 1980's. redas designed to eliminate lining. which was centered around discscrimination. recent events validate the fact e still this country w h

the planning department allows big banks? let's move in a big bank without community input. cha-ching. quoting from the law, money earned by independent businesses is more likely to circulate within the local economy than money earned by national businesses. with the locally based credit union, 75% of deposits go to loans to other local members. chase bank's h.q. is on the other side of the country. although hundreds of my neighbors feel what happened at davis darro was a misinterpretation of formula retail law, the zoning administrator said the best way was move forward was to add financial services as a specific use and that's what we're doing here today. thank you. vice president wu: thank you. >> good afternoon, commissioners. dean preston, resident of district 5. i thank supervisor mar for his leadership on this issue and supervisor olague for co-sponsoring the legislation. i support it 100%. and i'm not going to reiterate all the compelling arguments that have been made for why it's a no-brainer that formula retail -- i'm sorry -- that financial services needs to be su

the world bank wall street banks they don't want ireland to just fall so since they have a bigger vote then everybody in ireland we can't really expect that to happen correct we are completely correct with exceptional via my friend i will clarify that very briefly as well if you look at what happened in ireland during the crisis since about two thousand and seven mid two thousand and seven when the first credit crunch started happening there are stocks players have assumed the liabilities of the irish banks to foreign investors primarily the german french dutch breaks and there's a result of that are just more experience now on the for the bank debts that the banks have accumulated visibly the rest of the eurozone also some of the way the united states comes into that equation is that the united states and the writers have written a lot of the c.d.s. contracts and the words insurance against the bank and that and this is out of that they stand to lose if ireland defaults on the bacon that's themselves now as far as the troika goes since the rescue package has been put together over a y

or the bank of japan or the u.k. it's completely unstable because the currency is incredibly volatile because people don't trust these governments central planners bowl well you identify a keyword there is just trust and here the are the central banks i just listed they think they could command and control they can force you to trust when there is no trust in the system why would you trust any derivative product from j.p. morgan to goldman sachs why would you trust any of these debts that any of them are payable why would you trust to ever work and pay your taxes again when as we see in ireland when people are refusing to pay their taxes it's just being transferred directly to a small group of bankers now the economists article brings up this issue of trust and says the shilling has a further source of strength since each party to a transaction is likely to be able to place the other within somalia a system of kinship the shilling is underpinned by a strong social glue. paper currencies always need tacit consent from

now you have a bank account.

because a bank like bank of america is a big provider of credit. and should that get in trouble, that credit is no longer in the system. how does the regulation deal with that? >> well, the regulation doesn't really deal with that i mean the only way it deals with that is that it does provide government funding for the failed bank. recognizing that the availability of private funding is going to be pretty much gone if a bank has signs of failing. >> tom: what would you suggest regulators act on now to get prepared? >> well, there is-- probably more things than we have time to discuss. but i would start with a living wills there are these living wills in dodd frank which basically requires the financial institutions to plan for their failure. and one of the things they need to plan about is how do they pull themselve as part with all these pieces including the international piece. and still leave some semblance of liability. >> tom: we have difficulty facing our own mortality let alone corporate mortalityity we have to leave it there, stephen lubben

we do mention bank of america and union battles as well. they are our banking partners as well. wells fargo is still here. that describes itself as a community financial institutions as well. they do a lot of philanthropy. we are talking about on e part of the work that is not as strong as it can be to protect households against defaults. we need other banks to help from moving toward foreclosure. there are a bank that is based in san francisco. the federal reserve last july had penalized wells fargo at $85 million. other banks have not received such a penalty before around the foreclosure crisis. that was the reason for wanting to include wells fargo in the release. i think it makes a stronger statement. >> colleagues, can i say that i am supportive of the process of the drafting of the resolution? i understand the sentiments. and being even-handed against all banks instead of singling out one that is are locally based bank. i will be supporting the process of the original language. can we call a roll call on the motion? >> i am not in -- critical of the inclusion of the langua

bank system because there are no bailouts of banks from bitcoin and we've been covering but going for a while it's the latest greatest hope for some type of democratic expression on the internet that was first seen in the one nine hundred ninety s. but quickly got snuffed out by the m.p.a. and the are i am a coin is another shot another attempt to bring about the will of the people so this article and warriors point out that there are all these traders from goldman sachs morgan stanley all the banks in the city of london are you can see from the visits to the actual site that a lot of these bankers and brokers are on line buying is speculating and big point but remember there are no bailouts available from there and they talk about bitcoin has become the wild west of finance with the proliferation of web site. offering loosely regulated replicas of the services familiar to those in the financial industry perhaps the most notorious is big coin into a platform offering margin trading short selling and stop orders run by a seventeen year old chinese high school student zoo tom users can

why will the banks keep -- how much more guy power have the banks got? how much longer -- how long are we okay for? >> it really depends it's more a matter of what's happening in france. so we are in quite limbo politically speaking. >> well, let's assume hollande gets elected and he says i want to complete the miss cal pact, he wants to -- maybe we get a growth element to it. what happens then? >> well, welcome to france then. to my personal opinion, hollande is just selling his seat as a presidential elected president. he cannot deliver what he's saying, but at the end of the day, this is just promising. this is just their job to be elected or reelected. >> promises but not deliver. what's the eventually indications then for investors? >> it's a catch 22. let's say he gets elected and that he somehow completes the fiscal compact with a growth strategy. what's the possible growth strategy? if you're going to cut your budget deficit, you can't have a fiscal stimulus by definition, right? so you're not going to deliver on that one. if you don't complete t

play out in the banking collapse if it doesn't get its way. the people's . health and welfare is much more important and if the i.m.f. doesn't collapse then the economy will collapse and the real worry is that the euro and claims the worry is that the euro will survive and will hold together pennell continue to impose on greece the kind of austerity it imposed on. latin america and other countries and asia and the asian crisis that maintain maybe a little bit of them. to europe but it's the under these other countries and there would be an utter disaster but it's a disaster that will benefit the united states and will benefit the i.m.f. quite a bit because they hope that if there is pressure on governments that he thought this will force governments to begin selling off their private interest rapture there when they say greece may collapse what they mean is greece look unless it overrules a democracy pushkin one of our power technocrats which means the bank lobbyist to come in and sell off its land so office water and sewer system sell off its

banks is each quarter shows where that bank is exposed.er of fixed income currencies and commodities. it will also be a great quarter for those banks that do a lot of mortgage origination because refinance activity. and jpmorgan will do well in both of those areas. jpmorgan should have no trouble meeting or beating the estimates. and we're looking forward to that. >> we've seen a run up in the banks obviously since the beginning of will it year. he were so sold off that investors have slowly come back into that sector. so the question that i have for you is when we're looking at pannings s banks on a long term basis, are these long it term buys? >> one of the biggest problems facing banks today is that they have have these held to maturity portfolios with assets that have company lat the ral that's worth less than the loan itself. and at some point, that's going to be a real problem. it's an asset quality question and you can't really tell by looking at the gap in financials what's going on. and the banks have managed to hobble through sin

bank he's directly involved in this fraud rolls fargo bank the story with the drug laws on the mexican cartel right roy tokyo was acquired by wells hundreds of billions of dollars regularly connected to the chain late changing in mexico twenty two tons of cocaine basically what that what it what they covered well and so you have a warren buffett will go and see him b.c. he's investing in these companies and yet these are places you go alley you know i mean he's the great genius the oracle again from the pop culture side the rolling stone side you go from jimi hendrix star spangled banner you know it was stock to warren buffett playing a ukulele as anyone meeting. and people are celebrating that as a milestone and cultural you know achievement how did we get this far down the slide what happened it's amazing you know i remember i'm not i grew up in a family of journalists and i remember when i was a kid reporters hated powerful people it was a sort of a thing that was part of this business we we have a thing we want to stick it's a man if he was doing something wrong if we put it kind o

no more money creation no more fractional reserve banking they ended it for the bank let's clarify that's not so much correct if i'm wrong not so much no more money creation but no more money creation by the process of debt that's right it that's they didn't use that terminology but they called in there in their day it was called hundred percent reserves it essentially it ended what we know as fractional reserve bank ok so do find terms for. tell me if i understand this is right with fresh or reserve banking what we have right now is if if a bank loans out ten thousand dollars ten thousand dollars literally comes into being it didn't exist before the so that and so close that a part of the process and and and when it's paid back that money vanishes into into into thin air although the debt is still left over so it's sort of like a. low into debt is paid back when the money vanishes but that's the heart of the process without without fractional reserve banking what you would do is you'd say ok we're going to have a money supply that's three trillion dollars period here it is and use it but

what the bank may not have known. is a lawyer and fraud investigator with a specialty in forged documents she splits time she's at it again saying that bank of america has sued itself for foreclosure eleven times since late march in the march twenty ninth filing bank of america is seeking to foreclose on a condominium and named the condo owner and bank of america as defendants in this suit now there was. some commentary on the blog that this was on the huffington post saying this is proper because big of america was the second mortgage issuer so they should be included in the suit to me though this just shows the absurdity of the foreclosure crisis and how big banks have gotten that literally they're naming themselves in suit because they have issued so many loans in so many different ways but some of this isn't like some sort of accounting fraud again because the brakes are so good clever i've been i've been waiting for this because this talking with the lawyers or because they're going to be so many words in a syste

-- and all banks, not just the biggest, your local community banks, everybody -- here is our agreed local idea of what the credit needs of the community, right? sound familiar? like a cra. right? but the credit needs of the community are prepared to deal with foreclosures, to deal with vacant property, to refinance commercial profits that are otherwise not going to roll over and be foreclosed on next, to do all this stuff. but then, yes, i'm a crazy person like the former commissioner, talking to his federal colleagues and talk you are the turkey and quit this, what should i say, mania about real estate lending and use the powers to give banks credit for addressing the real credit needs of the communities, which are addressing these problems. that's what i would do. >> frank, you're back in charge. >> well, the first thing i would do is roll back the clock and undo some of the things that were done over the last ten years, particularly in dealing with the crisis once it happened. i mean, i think the failure to use t.a.r.p. as the basis for principal write-downs i think was a tragedy

examiners would go into a bank. is the bank making money right now? the evaluation of the financial institution would be based on burnt profitability and examiners did not -- regulators did not and bank management did not look forward enough. what happens if home prices drop. i've goat an adjustable rate mortgage. that kind of analysis wasn't done. it's an evolving process. in 2009 the stresses weren't two stressed. i think it was a 10.3% unemployment rate was the stress assumption of course unemployment peaked at 10.1. they're all still solvent after the distress test, but some are better than others. i think that is good, too. i think during the financial stabilization measures called bailouts, there was a lot of painting everybody with the same brush. that was unfortunately. you did what you had to do. you don't want to punish bad bank management by putting everything in the same group. perhaps it puts more pressure on the banks that aren't doing so well for market participants and challenge them as to why they're not doing better. you asked me to

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