makes their school many of our headlines today f.c.c. says new york fur allowed high speed stock manipulation and whole brothers online investment services allowed clients overseas clients they say to repeatedly manipulate publicly traded stocks by placing him in a recent orders and in a legal strategy noone is layering which is designed to trick all their participants in the market into buying and selling it this is the same thing we've been talking about for months if not years ok they've got a new term out there layering what is it it's washed trading it was was trading twenty years ago when it was illegal it was was trading ten years ago and five years ago when it was illegal it's illegal today you throw in simultaneously buy and sell orders and tricks the market into either going down or going up and then you know concurrent trades elsewhere to capture that spread to capture the move in the options market for example i used to do as a broker if standard procedure it's illegal but is now done on a global scale and is destabilizing no

hawk who is at the securities and exchange commission and he said the f.c.c. will not tolerate any abusive practices that is designed to distort these natural forces of supply and demand price discovery but that's false as you see it condones these practices there are captured regulator the people around the f.c.c. are routinely implicated in securities fraud they they are not as trustworthy as you can throw them but the fact that they can continue to lie blatantly as they are doing now is a testament to the complete lack of any accountability whatsoever in the system so firms like older brothers are known as direct access for him so they have their they have direct access to the prices on the market to the market itself so they're embedded into that matrix but since july twentieth levon so it's only been as recently as last year the f.c.c. has required directing for these direct access firms to limit risks associated with direct access as granting clients direct access to markets in these so called sub accounts could be used to hide wrong doing look we've als

of market data so this is the first ever fine against the stock exchange and the f.c.c. has charged new york stock exchange with compliance failures thankee certain customers and improper head start on trading information and you can see from this little chart here all the information flowed first to the proprietary trading not to the consolidated feeds which are to the public so max you designed the software that is used on this new york stock exchange or part of it is what do you think your eyes is on the replacement for the replacement technology but that's going to wear out if they don't use it it was meant to override this brokered deal or conflict on the floor of the stock exchange to use the special system they i suppose as a broker and as a dealer i mean they maintain an inventory of stocks and they're able to buy and sell in the open market to maintain that inventory and you saw this five market orders when they come in you get a guaranteed execution when you put a market order into the exchange but it gives me wiggle room to specialist to trade on inside inform

to the public but use next day air for its paying customers and the f.c.c. as i said found this out discovered this information only by accident because of the flash crash of may sixth two thousand and ten when they were forced to look at some of the data what happened that day and what they found was that during the two five minute period starting at two forty pm new york time the average delays for quotes were three point seven seconds and five point three seconds to the consolidated feeds while average processing time for the two proprietary data feeds were less than two milliseconds and sixteen milliseconds so they saw a huge disparity between the data see the vailable to the proprietary clients and those available for the general public so these are the free markets as these guys see it and this is what they say you know the scooping out of wealth the fact that these guys can trade on information within two milliseconds and the joe bag donuts in the public doesn't get it for five point three seconds they could trade hundreds of times before you could po

shows in no uncertain terms that since at least two thousand and eight that's all the data that the f.c.c. was managed managed to gather is that they were front running the public by quite a lot of time now the new york stock exchange agreed to pay five million dollars but will go into this next headline which gets further information from bloomberg new york stock exchange data violations extend u.s. exchanges reputation woes thought reputational woes are not a deterrent now in china when they find bankers committing similar crimes they fricken execute them ok that's a deterrent that's a deterrent my friend and now we have this is clear which states you have a good about this from us this is a clear evidence this is it refutable evidence of blatant fraud occupy wall street they should surround the new york stock exchange and close it in like a noose and everyone working their. so sanjay was the deputy chief of the seas market abuse unit says the new york stock exchange chose ground shipping for sending market data to the consolidated feed to the public but news next day air for its paying

actually if you look at the f.c.c. in the united states if you look at the f.c.c. i'm sorry s.e.'s senior executive service i could run wall street with a senior executive service much better than it's being run now they're excellent. you know so it g.s. seven at the post office may not have the training and skills but the yes yes sure do so in essence yes you're you're moving into the s.c.s. government it's really a cost plus model that's used by the defense contractors and i think you know i'm sure lockheed martin is sitting around saying why do we need to pay you know goldman sachs this money we're on a cost plus contracts business model so i mean there's no reason not to move them that way now particularly when they have this market share so i just think the banks are in for a major cultural change ok so you know even for a major reorganization of the entire industry ok catherine austin fits right in time thanks so much for being on the cars report thanks max you have a great day all right super that's going to do for this is this not. the kaiser report with me max kaiser and

makes their school many hoops in our headlines today f.c.c. says new york allowed high speed stock manipulation and whole brothers online investment services allowed clients overseas clients they say to repeatedly manipulate publicly traded stocks by placing him in a racing orders and in a legal strategy known as layering which is designed to trick all their participants in the market into buying and selling this is the same thing we've been talking about for months if not years ok they've got a new term out there layering what is it it's wash trading it was was trading twenty years.

improper distribution of market data so this is the first ever fine against a stock exchange and the f.c.c. has charged new york stock exchange with compliance failures thank you certain customers an improper head start on trading information and you can see from this little chart here all the information flow first to the proprietary trading not to the consolidated feeds which are to the public so max you design the software that is used on this new york stock exchange or part of it is what do you think was on the replacement for the replacement technology but those middleware they don't use it was meant to override the broker dealer conflict on the floor of the stock exchange or use the special system they are both as a broker and as a dealer meaning that maintain an inventory him.

improper distribution of market data so this is the first ever fine against a stock exchange and the f.c.c. has charged new york stock is to.

improper distribution of market data so this is the first ever fine against the stock exchange and the f.c.c. has charged new york stock exchange with. clients failures thank you certain customers an improper head start on trading information and you can see from this little chart here all the information flow first to the proprietary trading not to the consolidated feeds which are to the public so max you designed the software that is used on this new york stock exchange or part of it is what do you think i designed a replacement for the replacement technology but that's where the where i was laid out years it was meant to override those broker dealer conflict on the floor of the stock exchange that used a special system they i suppose as a broker and as a dealer meaning they maintain an inventory of stocks and they're able to buy and sell on the open market to maintain that a majority and you satisfied market owners when they come in you get a guarantee that secures you when you put a market order into the exchange but giving wiggle room to the specialist to trade on inside information and

scam where they sold stock to traders and investors completely outside of the f.c.c. law they broke the law they committed fraud ok we know that but here you have robert rubin the master of seven billion dollars in some shape and citigroup has banned this basically. from fraud for years now this is the one of the most highly trained stocks in the world it's a stock that goes into the algorithmic trading programs on a daily basis millions of shares trade every hour of citigroup stock and it's right there for the taking all the front row in the cherry picking that goes on robert ruben one of the just just really in the pantheon of fraudsters you know he's got to have a special place he is really the primo de primo on the fraudsters. so a few weeks ago we spoke to catherine austin fitts who used to be in the cabinet of george bush the first and she said that there are those in the world who can kill with impunity and those who can't so we're going to look at this story a little bit deeper because first i'm going to turn to a video for the two thousand and five and this i

mobile devices with pinpoint precision but mobile carriers are required by law to have this ability the f.c.c. in nine eleven is an initiative requires mobile companies to be able to find our locations to within one hundred meters at all times so as long as you've got one of these in your pocket someone will always know where you are here take a look at this iphone five apple ad that they didn't want you to see. me think of your i phone you probably think screw diamond i phone is a girl's best friend it's with you literally everywhere you go i accidently left my phone at home once and it literally felt like i was naked the rest of the day literally the new i phone is thinner and longer than the other one so i guess it's better i phone is ingenuity i phone has this sleek unibody design meaning that there's no easy way to remove the battery so given current government surveillance technology it wouldn't even be a problem for a third party to just watch listen and track your every move not everyone is aware of the over reaching out occasions of the patriot act or the public data mining of your i

lovely entity is that there are they've done some questionable things in the past there's been like f.c.c. invest. geishas into will so when they're taking all this money they're combining with other money they're going on the hill and that there are lobbying for like you said to protect their own interest what are those interests you know that they're already rallying for through legislation that is bad for the public so are they going to start putting those millions and billions of dollars into that we don't know it's only day two so far of the internet association so i guess we'll have to wait and see but what we do know is that these are the biggest players on the internet where a lot of power and joining together how much power exactly do you think they'll have in influencing legislation hell of a lot i mean this is google and this is facebook google and dig this up for you someone did his homework so let's go over this real fast facebook this year alone five hundred thousand dollars in contributions they includes fifty k. to obama itself ok and we go down there and google. they ofte

s.e.c., f.c.c. are disasters. >> and what i wish we -- i wish we were unionized so we could get a lot deeper than your actually allowed to go. those people i told you, the 5%, 6%, or 7% that we have sort of bring on our side, they all voted for barack obama four years ago. and by the way, when you say to them, do you think barack obama is a failure? they say no, they like him. but when they say, are you disappointed that his policies haven't worked? they say yes. and because they voted for him, they don't want to be told that they are wrong, that he's a bad guy. they want to believe he tried to do the right thing, but he's not up to the task. they love the phrase "he's over his head." but we spend our days with people that agree with us. these people are people who voted for him and don't agree with us. so the things that animate us are not the things that animate them. the best response i have found is he said he would bring unemployment below 8%. it hasn't been below 8% since. 50% of the kids comi

it because it was producing such an incredible surplus it was it was generating more money than the f.c.c. needed but what it did was it's slow it put a little bit of sand in the gears and what it would do if we went back to that is all this high frequency robotic trading that some are suggesting is responsible for twenty percent of the cost for gasoline you know maybe fifteen percent of the of the actual stock market rate all that would go away and we'd see a real economy isn't this a good thing is it yeah for them to agree with you but i need to set a high. gas prices are because of you know the failed energy policies of the obama administration but that it has more i think will wells than any other president in history he's also added more regulations on energy companies and they they frankly so you know you don't care of companies are going to reason the year a lot over the tire is many liberals voting against bills that would restrict mercury emissions and peter de fazio is one that i know for example he's a far left liberal lion and he's voted against harsher restrictions for if you

anyone else to impose any obligations on any participant in the communications industry, only the f.c.c. can require a participant in the communications industry to take any action with respect to emergency-related alert. to make it clear, we agree to add language at a later stage indicating that nothing in this bill requires or allows fema or any other government entity to require any action on the part of the f.c.c., the department of commerce, the office of energy communications or any nongovernment entity, nor does it have any impact on any existing obligations of these entities. mr. walden: i appreciate the gentleman's comments and i welcome you and thank you for my time. i yield back. the speaker pro tempore: the gentleman yields back the balance of his time. the gentleman reserves the balance of his time. the gentlewoman from district of columbia is recognized. ms. norton: i yield five minutes to the the gentlewoman from california. the speaker pro tempore: the gentlewoman from california is recognized for five minutes. >> i commend my friend and colleague, chairman den ham, and