bank german bank public bank was swindled out of their shoes multibillion dollar lehman collapse nightmare and the people of germany have had to pay for that the people of germany should be more conservative value bank than any you know subsidies that may or may not be going the way of greece but again like i'm saying if a bank has money a central bank has credit they use this this is where the credit and the money is so that's where bank robbers go it's not accidental doesn't matter how much security you put in front of the bank they're going to try to steal and rob it so even if they have to pose as the banks c.e.o. in this case. was the new c.e.o. of bank brought in only two weeks before authorizing this transfer to lehman brothers and he called it an accidental transfer oh wow it sounds like j.p. morgan situation where that two billion dollars was accidentally taken out of the m.f. global accounts hoops yes so again you know in the headlines to build the biggest magazine in germany read germany's dumbest bank k f w again the bimbo route to the bimbo disguise you know i got this until i

bank cd rates c.d.'s rates you see there's no in the world they can actually borrowed library at the lab or that's called it so that should draw attention is to why would be that cheap and if you take a look at the communications and even the. anonymous insiders comments you know it's widespread they would lower the library officially. and everybody's in a room management was on board the economist board risk managers want to board the bankers the traders the structure product guys everybody so it's not as if this was hidden and all the banks did it and they would do it daily the order fish a lot of library daily now this also begs the question why isn't a watchdog was an oversight you know what the central bank would do is they'd ask for a library at the bank would say write it down a piece of paper here it is you know so bankers are now able to be trusted to that extent you know you know question of course and then. you order fish depressed suppress elaborates but the. elaborates that much higher and t

and banking. >> so how would the call to break up big banks affect banks like citi group and jpmorganstay with us. with the spark cash card from capital one, olaf's pizza palace gets the most rewards of any small business credit card! pizza!!!!! [ garth ] olaf's small business earns 2% cash back on every purchase, every day! put it on my spark card! [ high-pitched ] nice doin' business with you! [ garth ] why settle for less? great businesses deserve the most rewards! awesome!!! [ male announcer ] the spark business card from capital one. choose unlimited rewards with 2% cash back or double miles on every purchase, every day! what's in your wallet? >>> welcome back, citi group and jpmorgan gaining today even after sanny weill made the case this morning that big banks should be broken up. >> i think we should split up investment banking from banking. >> certainly provocative comments there. should you buy banks or should they be avoided. what would a split up mean for the banks in your estimation. >> i have never been a big believer in investment banking and commercial banking, but it

do that on the banks do it. well yes i mean apparently the banks have been doing it but i'm just saying that some of the governments are also doing it and the magnitude of losses involved in the government's really markets on a much greater basis so when the federal reserve decided to rig interest rates after the recession of two thousand and one decided to flood the market with liquidity the senate with the global crisis we're seeing today and yet all the attention is on the banks and not so much on governments and central banks and they're a much bigger problem ok what do you think of that william it seems like this is very very serious well. yeah well the what's serious is the apology is that are coming for this outright fraud so let's begin with that the government of course the central banks are supposed to set short term interest rates that's not rigging and that's not unlawful it is unlawful for cartels to rig raids it is unlawful for cartels to manipulate rates and that is not in fact uncommon in fact ad

bank you know the key players include royal bank of scotland h.s.b.c. barclays lloyds and clydesdale i don't know about santander whether it was involved but it probably was as well basically what they did was they they sold interest rate swaps to s.m.s. which were small companies many of which had no understanding of what it was they were buying in fact they were told it was it was something completely different they didn't understand that if the interest rates fell they would actually they could suffer huge costs and they would have huge break break laws or break cos if they had if they want to exit from these products but it's basically one of the biggest scandals that there's a flick to the u.k. banking sector in certainly within the last couple of years and it is literally destroying small businesses up and down the country on a version of daily basis and i spoke to one this morning he said that some of his friends are considered considering suicide it's so serious people are not just losing the businesses they're losing their homes and. it's just

: the libor scandal has brought more scrutiny to the business of banking, especially big banks. but smaller banks have been improving their businesses and perhaps their images as their bigger colleagues struggle. this week on "n.b.r.," we are looking at regional banks beginning with erika miller and a look at the outlook for the stocks of these small and medium size banks. >> reporter: it seems like there's a chase, bank of america and citibank on every corner. so it's easy to forget that there are more than 80 other publicly traded banks in the u.s. many of them are community and regional banks and strategists say their investment outlook is bright. >> a lot of things are different about than them. number one they don't have a lot of the big risks that people are concerned about: europe, derivatives, and those issues. number two, regionally, banks are growing they are lending again. and that's a good backdrop overall for the regional banks. >> reporter: plus, the smaller the bank, the less vulnerable it is to stricter regulation from washington. but regional banks still face hu

head of banks -- also thank you to you olly burrows at rival bank.more live coverage of bob diamond's appearance in front of the committee which is scheduled to happen tomorrow. that is supposed to occurred about 2:00 british time, london time or about 9:00 a.m. eastern. >>> but, in the meantime, let's check in on markets in asia. tracey chang joins us live from sing support. hi, tracey. >> thank you for that louisa. investors are here back to risky bets. at least for the moment on expectations that central banks in the u.s. and china and europe. hong kong back from holiday weekend bounced to a high. the shanghai composite ended flat despite ending on a high note. fresh data showed the services sector, including construction, accelerated at the fastest pace in three months. property developers, one of the best performing sectors continued to rise after news that housing prices rebounded on a monthly basis in june. the sub index closed out 1.7%. in tokyo, an 8-week high. big gains posted. airways, slipped more than 13% on news that it plans to raise a

banking. the parliamentary environment is wider what he said. look at the culture of banking and my honorable friend confirmed that this morning. the third point i will make -- all of these points need to be looked at -- still considering whether to locate criminal investigation. there are dangers which might not be able to get under way. as i say, if you want to do as fast as possible, to get action as fast as possible, the way we suggest is right. we have to vote in the house the lords last night where the house of lords voted a against a public inquiry. we made time available on thursday which hasn't happened before for an opposition motion to be debated and voted on and a government motion to be debated and voted on. frankly what matters more than a process is the substance. getting over this. i hope we can accept the result from thursday. >> mr. speaker, we were exactly the same position a year ago where initially you rejected the idea of a inquiry into the press scandal and he rightly ch

on the other, the bank lobby.ever since the passage of the dodd-frank financial reform act in 2010, the two groups have been in a virtual deadlock over what kind of rules are acceptable. the industry has spent over $320 million lobbying lawmakers. >> narrator: to date, the rule-writing process has been slow. few rules have been finalized. >> i'd like to call this meeting of our advisory committee to order... >> narrator: at the federal deposit insurance corporation, regulators are meeting to discuss banks that are "too big to fail." >> i think this is the most important part of dodd-frank. >> narrator: they've pulled together a group of financial heavyweights, among them former citigroup ceo john reed, wall street super-lawyer rodgin cohen, former sec chairman william donaldson and former fed chief paul volcker. across the table are officials from the fdic's office of complex financial institutions. it is their job to plan for a big bank failure. >> ...mitigate systemic risk. >> so the scenario is sort of everythi

. >> i think what we should probably do is split up investment banks from banking.e banks be deposit takers, make commercial and real estate loans, have banks do something that's not going to risk the tax payer dollars, that's not going to be too big to fail. >> and congressman paul ryan joining me now, interesting to hear those words from sandy weill, is rerighe right? >> i have a policy of not knee jerk reacting to statements i just heard, but we need to get away from the too big to fail doctrine. it will put smaller institutions out of business that can't compete with the bigs. yeah, i think too big to fail is a document to watch out for. we're not fans of dodd frank? >> then would you like to repeal dodd frank? >> yes, i would like to and replace it with a better regulatory system that does not put the government in the way of adding more moral hazards to the marketplace and triggering higher likelihood of tax payer bailouts. i think that's what dodd frank will do. for connected firms with political connections that makes it harder for them to compete and surviv

the bank of england the banks seemingly. i don't know quite when that that that element of it started it probably didn't start till the height of the crisis in about september always but certainly you know it was well known in fact there's a guy called tim born to used to work for barclays capital who went on bloomberg television in may two thousand and eight and he you know he publicly stated that there was a deep concern about these numbers and whether banks might be making them up so you thought yeah the f.s.a. might have started to investigate at that point but they didn't they pushed back by the financial media in the financial times for example is that we have a committed crimes but they saved the system from collapse is that a legitimate response not in my view i mean i think you know you there's no excuse for committing crimes and even if they are sanctioned by people like paul tucker or if they were sanctioned by people people like paul tucker it doesn't excuse them in my heart in my view right now i think the word

banks. >> banks are lenlding again. if you look at three quarters, there's been a growth in bank loans which matched what's going on in gross national products. so banks are leppedin lending a. it's good domestically. >> the bad news is all the large banks have capital market challenges we're talking about. >> susie: so citigroup and bank of america are reporting next week. what's the message from those banks? >> they've been more challenged than j.p. morgan and wells fargo. we don't expect the strength that we saw in these two banks to be reflected. that said, the core issues, loan growth in the united states, a relatively stable banking system over here should provide some positive backdrop for both companies >> susie: is this a turning point for the financials? how do you see the financial sector doing? >> we think it's a turning point in terms of domestic banks. we think there's good things going on. mortgage lending, overall business lending is picking up, and the credit position of these banks is very good. we thi

henry banks had asked mr. buck if he could hire him so he could be closer to his wife and children but it's it seems he may have had other plans. in less than two years after the transfer, masse got word that banks was planning to escape. masse had him jailed but buck intervened and had him released confident that the rumors were baseless. in april 1852, masse got wind of another planned escape and this time sold banks to a local slave trader. again, the man who had hired him, buck, came to banks' defense. family connections, he predicted confidently, would keep banks close to home. to convince banks' owner, mr. masse that there was nothing to the rumor, buck agreed to post a security of $800 should banks escape before the expiration of the contract they had first sign signed in 1849 and renewed every year sense. in less than a year, banks was gone. no one knew where to. banks was confident that he fled with his brother and despaired ever finding him. two days after his escape, william buck received his first

facing unprecedented toxicity in the but global banking system and we have revelations that banks like barclays and others have been engaged in massive fraud and the result is a it's about some rogue elements within the banks that are doing a few one offs and bad things or b. is this banking industry can you make the equation to a let's say exxon a valve da's when it hit that coast of alaska it's bill millions of gallons of oil and it created a pollution a toxic event in this case a bank like barclays is releasing toxic derivatives toxic practices why doesn't greenpeace cover barclays as being in other words they they the banking industry needs an environmental upgrade because they are releasing risky toxicity into the system because i ask this because you straddle both worlds you're on wall street you're doing renewable energy where you think of that idea well look i think that we have crossed some kind of rubicon with with this park especially if there's any collusion on the part of the national authorities now the bank of england that's where everything falls apart because who trust

banks across the world.nce, we should expect that this whole libor related investigation will expand to many other banks across the world as almost by definition it's a rate of about 20-plus banks working together. and if anything, barclays has probably been an early mover in settling this whole issue. and we should expect impacts on other banks as well. >> so you've mentioned names across europe that again, given some of the fundamental concerns about european growth, about the financial positions of these banks and liquidity positions, that it just kind of highlights or adds to their vulnerability? >> that is true. to the extent you have a large bank which is involved in financial markets in a country where the sovereign is -- the sovereign's own credit is under threat, let us say, those banks are in a more difficult position than barclays is. >> and finally, did bob diamond in your opinion need to go and are you worried about the bank's long-term health or performance now that he and some of his top execu

a number of banks -- not the community banks but a number of banks did purchase that stuff, securitizedterrible blunder on the part of the united states. how many times -- i had nothing at that time to do with the american bankers association, did i see an ad on television, no background check, no credit check, no assets or income, we'll make you a loan. really! if you're a banker, you want to be paid back. it was silly and it was greed filled. but now i think as a result of the focus on this kind of conduct to have systems in place to protect against risk, to prevent a bank from doing reckless things or an investment bank or mortgage broker, i think that's all healthy but it has to be digestible so it is going to work as opposed to being avoided because it is so huge you can avoid sentences and paragraphs. >> it is so big. what is your proposed solution. we don't throw the baby out with the bath water. we worked lard to get this legislation. it was well intended. you say it is a little bit unworkable for a lot of your banks because it is just -- how do you have 37 employees and parse t

they are banking regulator whose are supposed to come in and make the banks fear cheating in this way. but we seem to have gone through a number of years in which not only did cheating become acceptable in a lot of parts of the financial system, but the regulators, the police weren't looking very closely. >> stephen: is this a lot of banks or like one bank. >> we don't know yet. it looks like-- . >> stephen: should we not find out. maybe we shouldn't find out. because if a tree manipulates the global currency system in the woods and nobody knows, do we lose trust in our banks. >> we do. and that's why we should find out. i mean-- . >> stephen: so we have to trust our bank, right. the credit crunch of 2008 was that bank wouldn't trust each other. >> some people think banks understood this libor cheating was gong become then and that exacerbated the 2008 crisis. >> stephen: if the banks lose trust in each other about what is the reality of interest rates they should be paying could that lead to another banking crisis. >> it may have exacerbated the last one. >> stephen: okay what if we

interest rate to an historic low the bank of england said yes to more q we china's central bank unveils a surprise interest rate cut the danish central bank goes one step further and touring europe territory negative interest rate policy there was of course is under anesthesia already but already middleton will explain why no amount of money printing can create wealth but can any amount of cutting rates or money printing avoid this when it comes to real asset prices. total annihilation will come from what follows a whole week. or two. will no way says our guest will tell us why plus former barclays c.e.o. bob diamond testifies before members of british parliament over of course the library scandal now it's been pegged as a preview of what may lie ahead for other big lenders under investigation for this same thing but what's it to look back as it seems the real pattern of repetition is cool luzhin between of the worries and the big banks let's get to today's capital account. well what can i say they won't keep getting worse for economies in europe for example despite central bank efforts

need to receive it if they need to in the german banks or something deutsche bank as. it's leverage is probably the most leverage bank in europe in the world perhaps. a huge bank and of course the germans are very worried about deutsche bank and they will try to keep it afloat with free money right sixty one leverage at deutsche bank all right wolf richter that's all the time we have for the cause report thanks so much for coming on thank you very much all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert our thank my guests wolf richter of the testosterone pit going to send me an e-mail please do so at kaiser report at r t t v dot ru until next time x. guys are playing by oh oh. you know his secret laboratory tim kirby was able to build a new its most sophisticated robot which on fortunately doesn't give a darn about anything tim's mission to teach creation why it should care about.

bank do you take that public banks at the low end yes well banks like in germany that have. find it all these export businesses that quit germany number one export or until recently and then they're at the federal level take public banks and those are the development banks i think probably the best way in brazil at the b.n.p. yes it's their biggest bank and this it was used by president like that to find every sort of development program they came along looking for finding people in the one nine hundred ninety s. brazil was the world's largest debtor and ten years later they were making loans to the i.m.f. they where a big creditor exactly this that in interviews that don't you think it's very chic that we're. there we're not lending to the i met and how do they do that any turn it around and use this big development bank to basically recycle and best your money i mean it's private money it buys the vines but you're buying you're buying something very. because it's a government crime so you have all this investment money sitting on the sidelines where people are afraid to in

and switched over to this type of technology on a macro basis macro banking put your banking had on on a macro basis the hundreds of billions of euros that are being talked about needed to bail out europe and other countries would have a significant impact on swaying those numbers in a significant way if this type of initiative was put forward if you get michael yeah it would it would in fact the germans are doing it you know they've made the choice they want long term sustainable economy and sustainable energy they believe in renewable energy they believe that they can they can just completely cut down their well and gas import bill by investing massively and solar and wind and they're doing it they're putting their money where their mouth is and there's still i mean they're the basically the last man standing in europe and i expect them to remain that way now let's talk about germany for a second because their reaction to the fukushima disaster was the shutdown all nukes that's right that's right japan is just restarted a nuke again yeah and it's controversial in japan and germany is

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she tried to refinance, but four banks turned her down flat. four banks. makes you wonder about all those big-time bankers at the other end of the scale, the ones who came running to the government and taxpayers for bailouts worth hundreds of billions of dollars, then scooped up big bonuses and perks for themselves and went back to business as usual. and what a business. you've surely been hearing about the newest scandal in banking centering on barclays bank in london, and on something called libor. that stands for london interbank offered rate and it involves a group of bankers who set a daily interest rate affecting trillions of dollars of transactions around the world. your home mortgage, your college debt, your credit card fees -- these could have been affected by libor. it turns out some of those insiders were manipulating the index for their own gain, to make their bank look better off during the financial crisis, to lower their borrowing cost and raise their profits. picking our pockets. lining theirs. "the economist" describes it as the rotten hea

so the banks own the institution is supposed to regulate them. is that moral or immoral. the fed buys assets like mortgage backed securities which is real estate and part of our national debt which is treasuries which we have to pay tax on in the future like i said with these fraudulent counterfeit checks that borrow currency into existence and in debt s. in the future does he believe that that is moral for it to be able to create currency from nothing and go around buying up pieces of this country it's a great question mike wait before we go i just have a minute left i really want to make sure i got to this because because currency is it's a debt based system and there's not enough currency to pay the debt that's created and i'm curious in this system if you that he said it was live or scandal has anything to do with an assessment of where the monetary system is it was something we're talking about before the show that. the library scandal is all the banks know that this is a sinking ship and they're trying to grab everything they can before the

i need to receive it if i need to in the german banks or something deutsche bank is. just leverage is probably the most leverage bank in europe you know what perhaps is a huge bank and of course the chairman's are very worried about deutsche bank and they will try to keep it afloat with free money right sixty one leverage at deutsche bank all right wolf that's all it's i we have for on the cause report thanks so much for coming on thank you very much all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert our thank my guests rector of the testosterone pit going to send me an email please do so at kaiser report at r t t v are you until next time nice guys are playing by oh . sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realized everything you thought you don't know i'm tom harpur welcome to the big picture. thing. all started here. for going global that's no. longer. choose your place take your stuff. to. make your st

bank. but alan greenspan the federal reserve gave them a pass gave them a one year exemption in during that one year exemption they got the law changed they got glass steagall repealed. fancy that and now the chairman the former chairman is advocating for something that sounds a lot like it or at least the spirit of it things seem a little paranoid paranormal needless to say this is wall street begin suing itself over a lie we're manipulation here to talk about all of this and more is our co-host today he will stay with us the whole show jim rickards senior managing director at tencent capital partners he's also author of the best seller currency wars the making of the next global crisis we'll bring our guest today resource guru rick rule on shortly but first jim records thank you for co-hosting capital account with me today had to be here on this is great it is great so let's start with this these comments from sandy weill because it's really interesting you and i have often talked about t

the banks are going back to what was traditional banking. >> okay. let's just dip back in, mervyn king is now answering some questions. >> why did you, in practice, you can argue, you can dance on the head of a pin about fitness and prove den but in practice you were sending a message of a very similar nature. we just had a discussion on that and lord turn certificate in agreement. why did you change your mind five days later and apply pressure and get involved in applying rush for bob diamond to go? >> i don't think it's dancing on the head of a pin. there's a difference between legal question and whether someone is fit or proper which is for the fsa to determine and the events that led up to the conversation that i had with the chairman and senior independent director. on the sunday late afternoon, early evening, i discovered that the chairman had resigned. i, first of all, wanted to find out whether either lord turner or the chancellor had been involved in discussions that led up to that and i discovered that all three of us, in fact, had learn fr

the banking system was broken so no banks were lepding to each other and the worse the bank's credit was, you could take the -- >> the more they were going to pay. >> barclays were fairly high on the list. the 1th most profitable bank in the world. pretty sound institution. and they were having trouble borrowing and being more honest about it because they were a stronger institution. the weaker ones were the ones sailing, sure, everybody want to keep this rate down so they were putting in ones that were too low. >> now we well know the flaws of this system, are we seeing other banks around the globe, where do we go from here? libor is a rate written into contracts? trillions of derivatives are based on. do you mess with libor itself or move the system to a i different benchmark. >> i think the problem is overregulation, overcomforting to -- i mean, there's no buyer beware left in the world. banks are not allowed to do this or that. they have to tell you, they can't make any money, get banking for free. thiscy crazy idea. have you to have a working banking system. that's how the capit

i talked to spanish banks. ecb today declining to comment on a report that draghi is imposing losses of senior bonds in spanish bonds. the spanish banks by and large are weaker this morning across the board, not by much. bianco and bank of citadel up a bit. and bankia was down more earlier on. currencies first? which are we going with first? there we go. we'll go currencies. euro/dollar 1.2229. not far away from that two-year low we closed on friday, 1.2162, but weaker this morning. dollar/yen instead, below 79. aussie dollar made big gains on friday, 1%, post china gdp numbers, pulling back a bit to 1.0225. and for the moment, the pound is holding that line below 0.80. big week in terms of inflation data back in england, employment data and retail sales for the uk this week. that's how we stand now as far as european markets are concerned. let's go to the bond markets. german yields, worth keeping your eye on this, negative territory. we will get a two-year shat offering this week. the ten-year, 1.25%, getting