in sohmer bear stearns was the go to bank to manipulate the prices over so j.p. morgan is buying bear stearns what are they do with that item on the balance sheet and we said quite correctly now turns out that they would engage in massive racketeering racketeering with the traders the management of course jamie diamond is a racketeer now been proven and shown the funds that are putting money to work in various commodity desks except for a so this has been a wide scale racketeering fraud perpetrated for years and documented by us your kaiser report and shown several analysts who would actually go to the actual trading desk and show when the price manipulation was taking place irrefutable evidence ah i remember now garth. darth darth bark bark bark chill toward the shilton bart chilton of course refuted this. may rest in peace with now know the truth actually we're going to talk in the 2nd half to craig metals report it was a guy named meister who is the head of the c f t c who absolved j.p. morgan at the time of any manipulation of the precious metals market he is

nomi prins was a managing partner of bear stearns and goldman sachs this is the most expensive take out the biggest cry. in world history we're talking about a crime we can't even quantify we're talking double digit trillions of dollars yeah yeah trillions and trillions you know way at the very beginning we're pointing fingers at easy money and the central banks as papering big crime wave and that was next clip by me brains when i become a regular on kaiser report written many books on the subject and danny schechter this whole approach talking about really plunder the crime of our time and best. also bet on recurring theme for 10 years only got worse or saying now 10 years later kind of the end game as a negative interest rate for example would be an extension of what was the seed sown at the time of extraordinary overreach by central banks the theme of plunder is important because again it ties to france and all of our work is boss said when plunder it happens at the top it starts to trickle down this is when the mean the way of the top is plunder the whole society becomes corrupt and

morgan buying bear stearns it was a very cheap price but they had to assume this enormous silver short position that they bear stearns was maintaining a behalf of the government as well as some other gold shorts to keep the price of precious metals down so i quickly figured out that the short position if they had to force that buy back that so over to cover would bankrupt j.p. morgan and j.p. morgan's always been our bet you are on this show because there you know the big if the cop out a copper crux and so either cut the price from about 15 to 50 and they were on the verge of having to have some serious write downs possibly you know have a liquidity event and then they got the government to change some laws and they went even deeper into their short position temporarily then when we come back from a break we will kind of cover how that all resolved. don't go away stay right there . thousands of american men and women choose to serve in the country's military and the decision. every song came to a complete. the day that i was raped. you know told to shut up kill me and i see how destro

you were the vice chair of bear stearns but you left bear stearns way before the crash which occurred at risk, our stock market, is it at risk, because of the china trade fight? is that the greatest area of risk for us now? >> i think in the short run, the uncertainty that's created by the trade wars naturally is going to reduce economic spending. i call our economy 80% loot. 67% is consumer spending. when you feel good apparently you go out and buy expensive ties. you feel bad, you don't. consumer spending is 67%. about 13% is business spending. so you are running a big business and trump says we may have these high tariffs, you don't know where the hell to build the next factory so you don't. you delay it. you sit around. so the mood has been extraordinarily good since trump got elected. now naturally, the business spending is cutting back because they don't know what to do, where we're going to end up. i don't think anybody really knows where we are going to end up with china. china has been too smart and they have such a long-term view and they just keep apologizing and doing the

and then come see bush and obama bill and bear stearns is running to the feds to stay afloat president bush today defended the decision to bear out citi group that in may and freddie macin ask for a total at green $1000000.00 more to sail out could get much bigger are they willing even in troubles for the u.s. economy. and they're building up the next term. b. each time the taxpayer is called on to bail out of those who created the crisis increasingly the major financial institutions. in a capitalist economy you would do that in a capitalist system that would worry about the investors who made risky investments but the rich and powerful they don't want a capitalist system they want to be able to run to the nanny state as soon as they're in trouble and get billed a taxpayer it's called the too big to fail. i mean there are no will or it's an economics who significantly disagree with the course that we're following people like just stiglitz paul krugman others none of them were even approached the people picked to fix the crisis were those who created the robert rubin crowd the goldman s

nomi prins was a managing partner of bear stearns and goldman sachs this is the most expensive take out the biggest. in world history we're talking * about a crime we can't even quantify you're talking double digit trillions of dollars. trillions and trillions you know we at the very beginning were pointing fingers at easy money and the central banks as paper.

surprise no surprise that so it's all the place who ever thought better stories would go bankrupt bear stearns been around 10100 years and suddenly disappeared lehman brothers been around over 150 years and suddenly it disappeared so it's going to happen that way i'm not sure who will be next it could very well be a bank in china for instance. china has. they will let people go bankrupt i hope they do ok everybody including me and i just happen know it's going to be it's always places that surprise us that we haven't thought about and we didn't think it could occur i want to singapore we always hear about how singapore is like this financial safe haven it has given so many tax incentives and everything home to over 200000 millionaires here but singapore this past quarter has contract about 3.3 percent and is now barely up over 4 percent for the year to date so far in its market so how has singapore weather the entire storm with the trade war between us and china. singapore as the presidential center. financial center is good and secure attracts money in bad times friends as i own a lot of u.s.

nomi prins was a managing partner of bear stearns and goldman sachs this is the most expensive take out the biggest. try it in world history we're talking * about a crime we can't even quantify you're talking double digit trillions of dollars and a lot trillions and trillions you know we at the very beginning were pointing fingers at easy money and the central banks as papering the crime wave and that was an excellent clip by moment prince who went on to become a regular on cars report written many books on the subject and danny schechter this whole approach talking about really plunder the crime of our time and that's also been recurring theme for 10 years it only got worse and we're seeing now 10 years later kind of the end game as we negative interest rates for example would be an extension of what was the seed stone at that time of extraordinary overreach by central banks the theme of plunder is important because again it ties to france and all of our work is said when plunder it happens at the top it starts to trickle down this is when the mean the way at the top is plunder the who

overpriced to feed a massive short position on their books that they inherited when they bought bear stearns and if you drove the price of silver from 15 at that time to 250 you would bankrupt j.p. morgan you know we're very poor we got to 50 which was a new all time high by far that was all us from 15 to 50 but then of course the regulators came in and they allowed j.p. morgan to expand their fraudulent activities by a huge factor they fired by bastards who was orchestrating the whole thing and they got the price back under to a level where they were comfortable with in terms of their balance sheet then they became net buyers and i believe they're now the biggest owners of silver in the world going forward you know the fact is that whether it's wells fargo j.p. morgan or any other banks they're actively engaged in massive fraud they pay the small fine their business model is to keep $0.90 of every dollar they still pay 10 cents to in a fine but that's coming to an end they caught this guy he admitted in court to spoofing to rigging precious metals markets from 2 july 2007 to august 26th see

chairs sometimes it's the music stops and somebody loses last time lehman brothers was taken out bear stearns taken out sounds like the music's about to stop again and which is which bank is the unlucky bank this time that will be caught without a chair i really don't know it's hard to speculate my guess is that it's a european bank we've seen a lot of trouble. over there over the last several years in the banking system. but it's really hard to guess i would guess somewhere in germany france or switzerland somewhere in germany france or switzerland you can do a little work yourself there at home and come up with 2 or 3 names that's right you want to germany we've mentioned many many times that's my favorite the new lehman brothers said would be your bank and so now we're getting some market action then became one of these big banks about to go under that i 1st heard of you when you began writing about the time value of money and how the lightning network in particular makes this relevant to big claim so explain time value and why bitcoin matters in this regard sure so the lightning network d

they came from bear stearns originally, the ultimately eat what you kill culture investment bank a bigr a more aspirational title to get here's where we stand on what it means to be a partner today according to sources at the bank you are guaranteed a $1 million base salary. you almost always get at least a $1 million bonus most make $3 million or more in total. some make a lot more than that there is also a chance to invest in internal deals and funds. and there is now more regular internal partner meet ins and access to solomon, including, by the way, a partners lunch taking place today across the road. currently, there are 450 partners, down from a peak of over 500 ing it tick down a little bit further from here over the coming years though. it should stay above 400 this is being framed by some as goldman leaving the classic wall street business models or the classic glory days i actually think it's solomon trying to give him self the flexibility and headroom to be able to return to it and pay people well but only when they really earn it and just needs a bit more flexibility in thi

one about the collapse of bear stearns, one about how goldman sachs avoided going down the tubes. this scenario happens over and over again and new investors just do not have the memory for this it's so distressing. we have financial crises in this country basically once every 20 years. it's always the same scenario. borrowing short, lending long in the banking system yes, the fed to some degree has pushed some of that risk out of the big banks into the shadow banking system, but the riskt t everywhere when the high yield bond index is yielding 5.5%, people are overpaying for the risk they're taking and the rewards they're getting. >> you seem to imply in the example i just read that the fed lowered rates in july. powell bowed to president trump's demand that they cut interest rates is ta what you are implying by saying -- >> i'm not even implying it. i'm saying it. he did cave to trump's pressure. >> what was he supposed to do with the trade war that's having a ream l impact on the economy? >> not lower interest rates. he's inviting people to take more and more risk in a much big

neil: bear stearns. >> ceo of bear stearns because his offices were right around here, midtown.became sort of an unofficial meeting place. wall street was always at each other's throats but for that brief period of time there was a little of cooperation to get the street back. dick grasso did an amazing job new york stock exchange. listen, realize new york stock exchange back then was huge. it control all the trade. 80% of the trading. neil: those days the floor was crowded. >> the floor was crowded. all the wiring got blown up. the verizon wiring center was in the trade center. neil: it created flooding. >> dick had to rebuild the infrastructure. neil: they told him wait longer this will take a while to do. they reopened on 17th. >> here is the thing, they wanted him to do it faster. what he was worried about, george pataki was governor -- neil: everything would implode. >> everything would implode. stocks were down dramatically. neil: 17% that day. 13% that week. >> but the stock exchange worked, it worked because of dick grasso. neil: worked got back to trading. i might stres

ideas among our community members on why it might be overdue want to bring in a video commenter bear stearns or solicitor benjamin and he explains this is really all about the money the main challenges i see it that faces those of us who want to criminalize the destruction of the global human life support system is that the very people who are responsible for writing laws are in this case also the people responsible for the to the that we are seeking to criminalize every government in the west subscribes to neo liberalism below liberalism prioritizes corporate profits above everything else in the world corporations profit mostly in one way by destroying human life support system we're asking government ministers to write legislation that would criminalize their own conduct we're asking criminals to prosecute themselves they're reluctant to do that it's an absurd situation. many of it is absurd in the way he lays it out there what do you make about yes i think and you know i would like to say that the new special report so should we be coming in and start thinking big girl and. and i would li

if you remember, it was right after the financial collapse, lehman brothers, bear stearns, and the economy was shedding jobs at 400,000 a month. and president obama had said he wanted to do a bill that was later dubbed the stimulus bill. and in the end, i was the whip at the time, so i took the brunt of this. republicans did not give up one vote for that bill. now, if you had one of their administrators here today, they would say wait a minute, we were bipartisan because we inserted things in the bill that your party traditionally supported. there was no excuse for you not to support. but remember, you know, we are all political creatures. you know, leadership in the congress of the time had the obligation to look for the priorities that our membership had an our constituents one it's so we could go back and tell them, and instead of a productive dialogue, there was just a presumption made. so i think assuming rather than engaging is probably an ill you could easily repair. and i say lastly, the importance of remembering. and this is something for me now in the commercial and business worl

he game from bear stearns and a big part of the changes he's making is to make that partner title morespirational. what it means to be a partner at goldman. you are guaranteed a $1 million base salary. you almost always make at least a $1 million bonus on top of that most make $3 million and more in total. some make more than that the chance to invest in internal deals and funds and increasing more internal partner meetings with access to solomon and in fact a lunch just today i'm told the recipe lamb, shrimp and hummus there are currently about 450 partners that's down from a peak of 500 and will tick lower from here and stay above 400 now, framed by some this story is goldman wanting to leave the classic wall street business model or glory days behind i think it's more solomon giving the flexibility and head room to return to it and pay people what they've deserved but pay people highly but what they deserve if they perform well themselves. >> my question is how different is the structure to other of the competitors? >> not that different. i think that goldman used to be a classic ki

i was 20 my first -- one of my first jobs was right a block from here on one wall street with bear stearnss going to nyu business school around the corner i had never seen a calculator, i had never seen book and here i applied for junior financial analyst. i got the job. a year later the rothschilds had a company on 79th street around the corner they got me to work for them while i was still in school. four or five years later i became chief financial officer of rothschild company when my major was marketing. that is america. there are opportunities. you work hard. you also have the opportunity. it was there i met the chairman of ethan allen, founder of ethan allen and convinced him i knew a lot about home furnishings and he set up a joint venture. >> farooq, thank you for joining us and congratulations on the book. >> good to be here. >> author of the new memoir "trail blazer. >> when we return stocks selling off on weak data and ongoing china trade tensions, dow down re0 points, s&p off 29 mo on the selloff when "squawk on the street" returns i can. the two words whispered at the start o