allied average bank among other banks even the pristine relatively pristine bank of ireland anglo irish is in my opinion in and i'm not a lawyer so. misrepresenting investors in a public you know in layman's terms some people considered for the fortunate but quite misrepresent there is quite misrepresenting in both their reporting and their . presentation of health i like irish is insolvent from our perspective they have a large amount of underperforming loans and non-performing loans and the under reserve for the on the reserve significantly and on top of that is how does this fit into the rest of europe in other words i know there's an bailout fund and what are they going to do or are they going to draw on that and how does that affect the other countries in europe. was devoted to what they're going to do to fill a couple of observations out at irish if they were to mark to market has roughly twenty billion dollars twenty. billion dollar hole solvency hole so in order to be fully funded for the provision for underperforming and non-performing loans using their measurements which are m

for example, bank of ireland, everyone hundred basis points increase in base lending rate adds well moren euros to their profit because the reality with most banks is that the asset side of their balance sheet is far more rate sensitive on a very short-term basis than is their liability side. so strangely one of the things that's good for banks is a rising rate environment. liz: sure. >> but you were going to answer exactly how those costs that the banks have to assume are going to be passed on to the consumer? >> well, right now we're in a time period where the cfpd is being very, putting a lot of pressure on banks to cut spreads to consumers. so there is a real tug-of-war is going to be between the banks, as i make a decent return on equity and the regulatory pressures being put by the consumer protection people. so it is going to be very interesting to see how that hand plays out over time. the other costs that banks will have to pass on in some way are the regulatory costs. most banks, at least doubled if not tripled or quadrupled their regulatory overhead due to the panoply of sarba

risk you pool is there for about sixty five billion dollars so this one bank in ireland will take about one third of the us if you pull. ireland itself is this in two percent of the economic activity the e.u. you have isolated six panics that need assistance to become solve it so one bank could take down the third. you know what you know exactly what is islands out a building deposit a recap basically taking deposits money seems to be from a risk medical perspective guaranteed absolutely guaranteed so if i was angela merkel i would make all the banks especially the periphery of banks bad or being fraudulent or apparently being forged misrepresenting in their reporting mark to market ringfence anything that's considered necessary everybody else has to know play the market you know if you're thinking you think of this from the cement now in order to do that if that were to happen then rates would shoot up because you have the average deposit of who's been receiving between say twenty five basis points and two and a half three percent on their money despite the fact that money is taking significant mar

street the first casualty of course is investment best and drives up and when you've got these banking graces and a segment of dead. europe there are places like greece portugal ireland that need the most investment not to be. able to produce incomes that will help them pay their debts and look after their banks into the other ones that get the least so what we need you get is something like the new deal. we need an investment led to the cavity problem and our suggestion that models proposal is that you have been investing back in the bag you know wonderful institution of science in the world bank and all that we need to do is simply go allow it to job i'd bring about the government you don't we're not doing political views. now much to be sure. let me read a quote to you that you said the euro zone feature is a central bank with no government and no national governments with no support of central bank arrayed against a global network of mega banks that they cannot possibly supervise are you advocating a fiscal union here and is that is that even feasible in the current environment when there is so much hostility among some of these member states especially between g

street the first casualty of course is investment rest and dries up and when you've got these banking graces and a segment of. europe there are places like greece portugal ireland that need the most investment not to be. able to produce incomes that will help them pay their debts and look after their banks in terms of the ones that get the least so what we need in europe is something like the new deal. we need an investment led to the cavity problem and our situation the models proposal is that the european investment banking in the bag you know wonderful institution. of the world bank and all that we need to do is simply go allow it to the job i bring about the government you don't we're not doing for political use and what's actually not a much to be sure let me let me read a quote to you that you said the euro zone feature is a central bank with no government and no national governments with no support of central bank arrayed against a global network of mega banks that they cannot possibly supervise are you advocating a fiscal union here and is that is that even feasible in the current environment when there is so much hostility among some of these member st

two other examples of something going on similar in cyprus obviously you had a situation where the government came in and stole money from people's bank bank accounts and in ireland it got a situation now where angle irish bank was caught on tape gaming the government colluding with the government to defraud the public out of billions of dollars is greece any different than these other two countries is there in another words is it just basically collusion amongst members of the i.m.f. including germany who are actively trying to defraud the greek people and essentially steal all of their hard assets i think a little more nuance that max. i wish it was simply a case of well it's case and what i hear is a situation where. fictitious capital fictitious wealth disappeared overnight after two thousand and eight and it was a question of who is going to pay for it all was going to cover for it how would it will be very cozy relationship relationship between the political establishment the needs of our countries of the euro zone and their friend bankers are going to shift the burden of the loss of this fictitious capital on the docks paris and name a different fault eith

street the first casualty of course is investment best and dries up and when you've got these banking graces and a segment of dead. europe there are places like greece portugal ireland that need the most investment not to be be would. able to produce incomes that will help them pay their debts and look after their banks into the other ones that get the least so what we need in europe is something like the new deal. we need an investment led to the cavity problem and our suggestion the models proposal is that the european investment banking in the bag you don't wonderful institution . of the world bank and all that we need to do is simply go allow it to the job i'd bring about the government you don't we're not doing for political use and it was actually not of much to be sure. let me read a quote to you that you said the eurozone feature is a central bank with no government and no national governments with no support of central bank arrayed against a global network of mega banks that they cannot possibly supervise are you advocating a fiscal union here and is that even feasible in the current environment when there is so much hostility among some of these member sta

of street riots the orange order has applied for permission to hold a march this weekend artists have further reports. well the full no u.s. government peace envoy to northern ireland richard haas bank installment yesterday party moves in ireland tools now first minister peter robinson has said that all party group has been set up with the purpose of seeking an alternative to the parades commission never quit school say going to be looking to bring food a set of recommendations by the end of the year on parades and protests flags and symbols a hugely important issue to new zealand seen blackall with and will be seen by many as the only result parts of the peace process now. often we see days cultural elements really a motivator for the sectarian flare up over the sort that we've seen following on from last friday's july twelfth parade now after that we saw the trade commission's controversial ruling in force by police that then led to very serious writing by the loyalist marches in moved belfast and there's been really a period of sustained well i think i know the orange order had yesterday applied to the parades commission to have another parade on saturday this coming saturday ver

street the first casualty of course is investment best days up and when you've got these banking graces and a segment that go dead. europe there are places like greece portugal ireland that need the most investment not to be you could be. able to produce incomes that will help them pay their debts and look after their banks since them are the ones that get the least so what we need in europe is something like the new deal in the ninety's that we see we need to an investment led to recovery program and i would suggest in the modest proposal is that they get a fan investment back and that's in essence bank is a wonderful institution sometimes the size of the world bank and all that we need to do is simply go allow it to the job i'd bring about that govern you don't we're not doing politically action and not a much these let me let me read a quote to you that you said the euro zone feature is a central bank with no government and no national governments with no support of central bank arrayed against a global network of mega banks that they cannot possibly supervise are you advocating a fiscal union here and ivette even feasible in the current environment when there's

the first casualty of course is investment best and brightest up and when you've got these banking graces and a segment that go dead. europe there are places like greece portugal ireland that need to the most investment not to be. able to produce incomes that will help them pay their debts and look after their bank since them i don't want to get the least so what we need in europe is something like we need the ninety's everything we need to an investment led to recovery program and our suggestion the modest proposal is that they give up in investment banking that's in essence bank is a wonderful institution sometimes the size of the world bank and all that we need to do is simply go allow it to the job i'd bring about that govern you don't we're not doing it for political. action and not a much these let me let me read a quote to you that you said the eurozone feature is a central bank with no government and no national governments with no support of central bank arrayed against a global network of mega banks that they cannot possibly supervise are you advocating a fiscal union here and is that even feasible in the current environment when there's so much hostility am

spread into sovereign debt, greece, ireland, spain but it spread into different -- the european banking system, the world trade system. this was not a one a story of crisis response. it's all a. so that's what i do in the book is tell the global store and always interrelate apart. warren buffett has a line from you don't find out who is naked until the tide goes out. the greek government was a naked one in this case. the crisis expose some long simmering problems in their excessive borrowing and bad governance that a think we just didn't understand or didn't say when things were going better. and it was his receding tide great by this crisis, the meccas crisis -- the mega crisis. so let's talk about how that came to be. the european crisis is a hard thing to get your head around it i spent a couple years covering it. i would open a good bit and i still feel like it's something that is not easy to get a good grasp of. so i start that story in october 2009. what happened is a new government came to power, the socialist party increase came to power. three days later after they won the election for new finance minister with any meeting with the centra

of different races, ethnic cities, and brings them together with sports. they play together and learn more in common than differences. they have a northern ireland and israel and the west bank. it was fascinating working with peace players. when you work with people who have not formed hard opinions of people who are different with them, you have much more in common than differences. i also work with education partnership or children of conflict. one of the first things to go on a child -- in an environment of conflict is school. back in stunned that countries growth -- that can stunned a countries growth. when you bring people together and open a dialogue, there is more that we can accomplish together than apart. is that you the eca open doors to people around the world. we bring them here to this country. they see american ideas and values. they are exposed to american democracy. they go home to their country and share the experience of america. that benefits us in the long term. i think senator lindsey graham called the exchange program a national security insurance. if you send people back to their home after they have been here and see what america is really like, perh

bank of the water. 11 people were on board. two of them taken to the hospital with minor injuries. >> steve: they're lucky. >> gretchen: i thought you would have chosen italy or irelandyone else zag. >> gretchen: fans are going to get more of magic mike. ♪ >> gretchen: all right, ladies. the movie broadway bound. channing tatum confirms the news on twitter. no word if he'll make his broadway debut, but will serve as a producer. it's based on his life. it's hard to believe -- >> brian: he was a dancer first. >> gretchen: he was a dancer/stripper before he became a huge movie star. >> steve: congratulations. good career track. worked for him. >> gretchen: how do we transition from pole dancing or prancercizing is a good way to transfer. >> steve: pole position. >> gretchen: yeah. >> brian: can i take -- >> steve: sports animation, that means it's time for sports. >> brian: thank you. is a rod hurt or isn't he hurt? it depends who you ask. alex rodriguez, the highest paid player is convinced the yankees don't want him on the field. he reached out to a second doctor about his quad injury. his reps say he's ready to play, but the doctor says he's never actually and minute

of bad news priced in and any instability should be met by outperformance. >> portugal never really had a real estate bubble like spain or ireland and didn't have that stress on its bankingries have had. so, yes, we have a political -- i would call it a political hiccup. my central case would be the government holds and that the program is on track. >> not out of safe bonds into risky equities. it is out of low -- ill liquid, long duration and low quality assets which primarily are assets in emerging markets and high yield bonds, with investment bonds and treasuries and direct government bonds will stabilize into okay, but particularly weakening market is narrowing on u.s. equity exposure. >> big focus on egypt, the army denied that a political road map will come into effect after its imposed deadline which expires later today. reuters report suggests the army's next step will to be call political, social and economic figures to talks on the country's future. the military has warned there will be more bloodshed if president morsi refuses to step down and what they're calling the final hours of his rule. now, we have been keeping our thoughts on oil. wti, light crude, up

banks in particular, and you will see, therefore, the bonds have rallied substantially in both those markets. the yield is lower for the week overall. a lot of good news at the remember pif ri eriphery. irelande. portugal passed a vote of no confidence last night. they have to agree by sunday on the austerity. the other major factor is the pushback you have had from the germans. angela merkel pushing back against this idea that the greeks should get a second haircut on their debt, mainly the debt held by the central banks and the governments. angela merkel adamant that's not going to happen because of the consequences for the rest of europe, and her finance minister, daniel is in the lion's den, went to athens yesterday and lectured the greeks. this is what he had to say. >> i would make one very serious remark. i would like to ask all of you not to continue in this time this discussion on a new haircut. it is not in your interest. they have agreed the second program for greece and it was difficult to get it, i tell you. >> and with that the wagging of the finger of the german finance minister, have a great weekend, guys. >> thank you very much, simon. let's get to bob pisani who is watching