morgan is one of those banks. and i think you know that what they were doing was you know the two billion dollar loss has been reported as far is not that great. deal in terms of j.p. morgan's balance sheet but i think it's more symbolic that you have these banks losing money and they're backed by taxpayers which is a problem i don't think what they were doing is something that banks should not be doing i mean banks should be doing it the question is should banks that are have in place a taxpayer subsidy for doing it the answer to that question is probably no although it's not certain exactly what they were doing in terms of the trades i have a problem with banks are too big to fail i think we should have let banks fail i think i think if you have banks that are not too big to fail there's no need for taxpayers to stand behind them and then they can do whatever they want with their money if they will these people are smart people they know the financial markets let them do what they do. these need of light but i m

for example lending that it posits to banks instead of going to the most conservative banks they've just assume that everything's tightly regulated so it's going to be safe so we've lost that relationship between safe banking reputation and conservatism and i think that's actually at the root of the problem well richard if i go back to william it seems that that's the great debate here i mean over regulation or under regulation most people think the banks have been under regulated that's why this happened. i don't think it's a great debate anymore even alan greenspan who was the leading proponent of what my colleague just stated has said oh i got that completely wrong i thought that these markets would regulate themselves because of concern for reputation i thought there was private market discipline and by the way there's nothing regulated about libel or this is something that the british bankers association created for their own purposes and now we know gimmick for their own purposes so no back in the day in the eight hundred was not some wonderful time in banking you had is the l

which actually had conspired with another bank colonial bank to steal more than a half a billion dollars of tarp funds and we were able to stop that fraud before the money went out the door and lock up a bunch of the bankers who are you know who are involved in that fraud including that c.e.o. is now serving thirty years and we also saw a lot of fraud that i think that would have been preventable which was fraudsters taking advantage of struggling homeowners through that broken bad mortgage modification program you know that we've had debt if i had i'd seen similar schemes from my prosecutorial career and i remember literally begging the treasury department to go out there with information campaigns for advertising so as to warn homeowners about this type of fraud in advance fee fraud where basically bad guys promise to get modifications for upfront fees and do nothing but unfortunately treasury really ignored my concerns and and that really took up a lot of our resources trying to shut those schemes down and try to put those people in jail i understand the if you were a bank. because of

we think of our bank is a bank, but when it by another bank, it's a complicated terrifying proposition because you simply have to banks and you combine all the systems and they do it very quickly so that customers don't notice. well, wamu is an expert at that and that is the key to any banks trying to make all these large acquisitions. they were able to do this in the way the customer wouldn't notice. this is a bank that was efficient at anything they did. and when they came into these other banks, they were very frugal. they took away all the corporate credit cards, all the jet planes. they took away -- these other bankers would have outlandish bank accounts and offices decorated like the wild west with lots of expensive trappings and high-rise office buildings. wamu came in a cupboard above that. they flew coach everywhere and were very frugal. >> at least at that point. >> again, we're still in the 90s. >> there was again almost like a thriller this foreshadowing, this small nothing wonder called long beach mortgage. >> so long beach mortgage based near disneyland in california. >>

we just think of our bank as a bank, really. but when they buy another bank, it's a complicated, terrifying proposition. you suddenly have two bank groups have to combine all of the systems. and they codo it very quickly. the customers don't notice it. they are expert at that. and that's a key to any bank that is try to make the large acquisitions. they were able to do it in a way that the customer wouldn't notice it. i mean, this is a bank that was very efficient at really nick they did. and when they came in to these other banks, they were fry tbal. they took away all the corporate credit cards, all the jet planes, they took away, you know, these other banker would have the outlandish bank accounts and, you know, offices decorated like the wild west with lots of companyive trappings and high-rise office building. they kale in and got rid of that. nay ?riew coach. they flying. there. at least at that point. >> we're still in the '90s. >> right. there was this kind of, again, almost like a thriller there was this foreshadowing.

are involved banks involved j.p. morgan the reason they do it is to protect their massive silver short position that they inherited from bear stearns as part of that corrupt deal that was done during the two thousand and eight collapse the silver vigilantes like eric sprott and others are buying physical silver in the market to destroy j.p. morgan's ability to continue this game much longer and once the price of silver overcomes or ability to manipulate it j.p. morgan crashes balance sheet is technically worth zero and that stocks going to go the way of enron fraud flow f f fraud flow is the collateral backing j.p. morgan's belge if you take away the fraud again stock goes the way of enron same thing with goldman sachs same thing with warren buffett's pet bank walk over which is that heavy into fraudulent sub prime lending again again where is warren speaking out on this oh he's there and see him b.c. you know having a five thousand dollar amberger and here's another story we've been way. ahead of wall street's kanga

citizen, bank on s.f.t easy for you to have an account. >> many people do not have a bank account because they might be in the check system, which means they had an account in the past but had problems managing it and it was closed. that gives them no option but to go to a cash -- check catcher for up to seven years. you want to give these people second chance. >> to find account best for you, follow these three easy steps. first, find a participating bank or credit union. call 211 or call one of our partner banks or credit unions and ask about the bank on s.f. account. both -- most bridges will have a sign in their window. second, ask about opening an account through bank on s.f.. a financial partner will guide you through this process and connect you with the account that is best for you. third, bring some form of identification. the california id, for an id, or your passport is fine. >> now you have open your account. simple? that is exactly why it was designed. you can access your account online, set u

sure the regular banking system that everybody smaller with are the investment banks and commercial banks they're regulated entities they take deposits the shadow banking system is a variety of entities hedge funds being an example money market funds being another or entities like special investment vehicles the s.o.b.'s are special purpose entities these are conduits through which money and liquidity flows it comes out of the regular banking system and then detours out it goes into this shadow system and it goes over there and those things the real key to the shadow banking system is that it operates outside of regulatory oversight and that means it has no limits on the amount of leverage that it can apply very very popular vehicles during the expansionary phase of a credit bubble because you can take money out pop it over into the shadow banking system leverage way up and make a very good return on your equity for your troubles so when we've been hearing about things like a re hypothecation or of the explosive growth in derivatives a lot of that is happening because and through the shad

banks and maybe many banks actually need more money and for plo zing than they would have on modifications is that the fact and if so why how did that get into law. so what they did was it's absolutely correct so the you know the banks mortgage servicing arms are for running which essentially treasury outsource the program to them so one of the one of the big didn't built built in conflicts of interest was that let's say you're paying two thousand dollars a month or two thousand dollars a month on your mortgage and you got what was called a trial modification and the idea was that they had a homeowner who had to make a few months of payments before they would get the permanent modification which would be have all the tarp treasury bells and whistles now let's say your modified payment was fifteen hundred dollars and let's see you never missed a payment you made your two thousand dollars payments and you got into this temporary trial program and you made your fifteen hundred dollars payments now what you might not have known and what treasury allowed the banks to do was to charge and a crew

we just think of our bank is a bank really but when they buy another bank it's a really complicated andterrifying proposition because you suddenly have to banks. you have to combine all the systems than they do it very quick he so that customers don't notice. wamu is expert of data and that was the key to any bank that is trying to make all these acquisitions. they were able to do this in a way that the customer would not notice. i mean this was a bank that was very efficient. at really anything they did. when they came in, these other banks, they were very frugal. they took away all the corporate credit cards, all but dead planes. they took away you know, these other bankers would have these outlandish bank accounts and you know office is decorated like the wild west with lots of expensive trappings and high-rise office buildings. one that came in and got rid of all of that. they were very frugal. >> at least at that point. >> at that point. again we are still in the '90s. >> right but there was this kind of again, almost like a thriller, there was this foreshadowing and it was this sm

we think of our bank is a bank, but when they buy another bank it's a very complicated, terrifying proposition because you simply have to banks. you have to combine all the systems, and they do it very quickly so that the customers don't notice. well, there were experts said that, and that's key to any bank that trying to make all these large acquisitions. so there were a lot to do this in a way that the customer would notice. this is a bank that was very efficient and really anything they did. and when they came in to these other banks they were very frugal. it took away all the corporate credit cards, all the jet planes , they took away, you know, these other bankers would have these outlandish bank accounts and offices decorated like the wild west with lots of expensive trappings and high-rise office buildings. they came in and cover of all of that. they flew coach everywhere. there were very frugal. >> at least at that point. >> at that point. again, we are still in the 90's. >> but there was this kind of, again, almost like a thriller, there was this for shuttling. and there was a small l

destroying each other and of course you can't have banks destroying its other without central banks assisting and destroying each other and of course central banks policy of quantitative easing out of the say keep rates artificially low only to benefit a select few and meaning the savers around the world subsidize criminality in the city of london and wall street isn't that also part of this kind of suicide mission were all the banks are lined up in a circular firing squad all absolutely. quantitative easing is demonstrable way and imperatively shown to enrich the financial sector at the expense of everyone else because of an effect known as the cancel out of facts whereby when you introduce new money into the system it doesn't i then the purchasing power or does it transfers the purchasing power from the old money to the new money so what what what we have is. the banks they get is the money and they get the old per cent and the people who are. with the old money the people are the retirees. and want holding dollars is purchasing power for the benefit of the backs. right so to put

this banking community is this side of. which is which is usually the downfall of people but it's particularly true of the greedy or swiss bankers and eventually what happened of course was the disaster of u.b.s. where they ended up having to get billed for sixty billion and then of course the change the management and we've seen the same thing recently with another few billion losses were the subsequent chairman of the bank after saying he would stay around to save the world like jamie diamond does was cordiality asked to resign under his left all right now finally i want to talk about gold and silver because in switzerland media reports suggest that the swiss banks are increasing their capacity for gold storage talk about that number of friends have been asked to leave their offices because it should be filled up with gold vaults. is a pretty good storage space for gold you know obviously it's a safe haven argument again there are storage facilities in swiss german part which are actually dug into mountains. so the should

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 in the magnitude of losses involved when the governments 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 senator 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 what 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 adam sm

morgan bank kill yourself bank have a nice day since your attention was going to support thank you max and i go much more coming your way. will. technology innovation all the developments from around russia we've got this huge you're covered. sigrid laboratory to mccurry was able to build the world's most sophisticated robot which on fortunately doesn't give a darn amount anything tunes mission to teach creation why it should care about humans enduring this is why you should want your only on our two dog calm. water back to the kaiser report on max kaiser timeout a goatee and his kingdom and talk with john as ease of deezer nomics dot com john as these walk in the kaiser report fantastic the maps are old john aziz there was no liability lesser crime there was no sir prime studio crime so why is everyone so upset with the bankers everyone's upset with the bankers because since the year nine hundred seventy one the bankers have got a much much much much richer and everyone else has got much as much or as a percentage of g.d.p. you know corporate profits and. the financial sector profits

situation were you do banks that stress test on the basis that you don't mark the assets the bank holds to market you can come up with the answer that everyone solvent i mean even my children are sold into on that basis right so j.p. morgan is the leper with the least number of fingers yes i think that's right all right dave smith amount of time thanks so much for being on the kaiser report it's been a great pleasure thanks a lot going to do it for this edition of the kaiser report with me max. stacy herbert are they my guest david smith is going to send me an e-mail please do so it has a reported r t t v are you guys are saying. mission . critical three store charges free. range month free. three stooges free. old free blogs just plug in video for your media projects a free media dog hearty dog tom. cole or.

and if you responded and said i don't understand why separating commercial banking and investment banking would solve much i mean why is there a crucial difference between the same company giving out loans in securitizing them versus one company giving out loans and another one securitizing and selling them when the exact same incentives exist in both cases the incentive to get out risky loans to make a profit and the incentive to sell bad debt would exist in both cases as far as i can see you know it's an interesting point i really do think this is a key issue though the separation of investment banking and commercial banking because the issue is not that similar incentives exist in both places the issue is the lack of a fire wall between commercial and investment banking which means that average depositors and savers can't put their money in a bank without the risk of having a loss due to some risky trade or gone to investment and the amount of leverage a bank can take on in its trading division based on that deposit base and also equity capital now commercial banks yes they can take de

in other words, more risky banks don't pay a higher premium than a more conservative banks. they all pay the same rate, so this is another form of moral hazard. those who were conservatives and doing the best for their stockholders and investors and making less money, and the reckless banks are out there making reckless loans, making more money, and so a conservative banks say, i guess we better be reckless. the whole industry tends to go away. that, by the way, is a sharp and way of explaining what has happened to our banking industry over the last, well, next to the federal reserve will be 100 years old, so this has been going on for 100 years. >> so, mr. griffin, what should be done in your view? >> there is only one thing to be done. if you remember what it really is, a cartel. a cartel that has the monopoly power of our nation's money. the fed needs to be abolished. there is no way around it. you cannot take the power to create money out of nothing and give it to men and expect that power not to correct the asman. i don't care whether they be bankers are politicians, yo

how smaller banks are benefitting as we continue our series looking at regionsal banks. >> susie: that and more tonight on nbr. >> tom: worries about the consumers appetite to spend rose today. we're worried about saving more money so we're not spending it. it was changed again, the second month of no growth. less spending and disappointing profits for coach. is this a summer slowdown or something more serious? erika miller reports. >> reporter: what do coach customers like more than the handbags and accessories. discounts on those items, as much as 30% off at the company's outlet store. coach is going to bring back coupeons in june after eliminating them earlier. >> discounts were needed to get the traffic which was down, and they had trouble converting and getting people to buy once they were in the store. >> the question is why are sales slowing. is the brand losing appeal or is it a more serious indication that consumers are pulling back. >> personally, i don't think it's the start of a slowdown. i think it's just a blip from the summer. >> but the latest data is not encouraging. s

be sort of like a utility you know banks were never supposed to be these big. leveraged hedge funds essential and that's what they are right and yeah i mean we don't even have a need to call them even banks it's crazy so that's that's the key point that i really want people to get through their heads that they're they're basically economic threats to the economy monstrous threats to the economy would be a better way to describe the big banks i think you know as far as political options looking at the ones that we have for president of the united states mitt romney and obama i know wall street has thrown more of its money behind mitt romney this time around last time they overwhelmingly supported obama in the previous election but i don't really care about that when i look at their policies they look at exactly the same when it comes to the big banks dodd frank don't give me that that that's a bomb going after the banks it looks like business as usual for the big banks to me it's the small guys that get crushed so is there any kind of option for the american pub

morgan bank kill yourself bank have a nice day since your attention was because report thank you much for coming your way. sigrid laboratory to mccurry was able to build the world's most sophisticated robot which on doesn't sound anything turns mission to teach creation why it should care about humans and. this is why you should care want your only on our team dog com. welcome back to the kaiser report on my skies a time out a goatee and he kingdom talk with john aziz of the nomics dot com john as these walk in the guys report funtastic with the maps all right john aziz there was no lawyer but it relation crime there was no sub prime c.d.o. crime so why is everyone so upset with the bankers everyone's upset with the bankers because since the year nine hundred seventy one the bankers have got a much much much much richer and everyone else has got much as much or as a percentage of g.d.p. you know corporate profits and. the financial sector profits have shot through the roof in those years. wages of shot through for i think i think the big. trouble i'm with the financial sector is the l

morgan chase and company deutsche bank and barclays are among a handful of banks recently subpoenaed in a joint new york connecticut investigation of possible manipulation of the benchmark international lending rates new york attorney general eric schneiderman and connecticut attorney general george jepsen had also subpoenaed citi group and u.b.s. earlier this year live where manipulation. put that together with the steam is recognition of gold as a currency that gold and silver are currencies live or is the price of money it has direct relation to money gold and silver are money when you manipulate live or you're manipulating the entire global currency markets and people say the next five hundred trillion dollars of the securities refers to the global currency market gold and silver now unimpeachably money so therefore lie bores about manipulating gold and silver as well so if bar chilton or have to see if they see or of jeff christian around these people come out and say no silver you know we don't the total facts on it they haven't read the wall street journal or the financial tim

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 this 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 are 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

define a universal bank. >> so a universal bank is a bank typically a commercial bank and an investmentnks put together after glass steigel and global and a lot less global than maybe a bank america or a morgan stanley is and they have universal banks in europe, as well. deutsche banc, for example. these are the companies put together under the premises of a commercial bank and investment bank at the same time and my point is for most of america, there are some great super regional banks like i said like pnc, for example, that could fulfill a lot of the needs of corporate america. >> bottom line, you don't think the regulators break up the banks? >> i think that market forces do it on their own and a lot of features of dodd-frank will cause it to happen. the higher capital ratios that these universal banks have to have is going the drive a lot of this deleveraging. >> thank you very joining us. >> thank you. >>> well, the president is in the oval office for a bill signing for american veterans. he was just asked about yesterday's just awful temple shooting outside of milwaukee, wisconsi

these big banks now control over half of the assets in our banking system. that number was 17% back in the 1970s, so we had a massive increase in concentration, and the dodd-frank act is to reverse a little of that. >> thank you, we appreciate your time on this on this important subject. >> we have 20 minutes before the dow jones closes for the weak. we're spiking a bit in the last few minutes. >> it is like usain bolt there. >> can beer solve all of the bickering in washington? it's collecting money to bring happy hour to capitol hill. a super pac for beer money. it's all legitimate. the folks behind the super pac are here. >> first, before we go to break, the dividend. which stock is advanced the most so far this year. bank of america? gap? or sherwin-williams. s a 5% yield on dividend-paying stocks. then you can customize the strategies and narrow down to exactly those stocks you want to follow. i'm mark allen of fidelity investments. the expert strategies feature is one more innovative reason serious investors are choosing fidelity. now get 200 free trad