republicans want new revenues to the federal treasury. we absolutely must find a way to bring greater revenue, you know, we got to find a way to bring revenue in the federal treasury. we decry the $15 trillion-plus national debt we have and the massive deficit spending. we got to have greater revenue to the federal treasury. where we diverge between the two political parties, my colleagues on the other side of the aisle, is the manner in which we see these new revenues actually achieved. rather than raising tax rates on any one set of individuals or businesses, we want to raise revenues through greater gross domestic product growth. we want to expand the overall size of our economy, creating opportunity for all americans. we've done this as a nation many times in the past. i always like to point to president john f. kennedy who pioneered this approach by cutting marginal tax rates and growing revenues as a result. now, i acknowledge the marginal tax rates when president kennedy did this were significantly higher than they are today when h

and there are insurance company and banks in america that treasury. the federal reserve own treasury. even though we're not buying them as federal tax pay perhaps the fed is the largest treasury right now. banks all around the world. china is a huge creditor. we owe them and japan. governments are holding on to this debt. there was a story, i forget where it was run that mentioned that from the peek of the housing publ until how -- it was down about ho%. it it's actually down a lot more than that. when you factor in each household share of the new debt that's been accumulated in their name by the federal government. americans are basically already broke. i'm saying that, you know, we have just admit we're insole vent. american families can't repay the money that's been borrowed in money. >> we admit it. >> once you admit you are structure. just like greece. initially greece imposed a haircut of 50% oned bondholders. we have to do something similar. we have to lengthen the maturity. we have to tell people one year treasury bills we can't pay you. we can't pay the

reforms, as regards social security, medicare and medicaid all default to taking money out of the federal treasury and moving it to speculators on wall street or to insurance companies via vouchers. so again and again and again, he is not for downsizing government government. he ises for using the government to collect money and then redistributing that money to the wall street speculators and the insurance companies that top the list of his campaign contributors. >> all right, john nichols, you finally, called out paul ryan and called him what he is, a corporatist who is not loyal to the principles he pretends to abide by. john nichols, washington correspondent for "the nation," author of "uprising" from madison to wall street. thank you for your time thank you. get irresistibly clean and fresh carpets in your home with resolve deep clean powder. the moist powder removes three times more dirt than vacuuming alone while neutralizing odors for a clean you can see, smell and really enjoy. don't just vacuum clean. resolve clean. rich, chewy caramel rolled up in smooth milk chocolate. don't forget abo

i don't think the federal treasury is somehow going to get out of debt, congresswoman if we assess ourllists these taxes. what kind of response are you getting from your colleagues in congress to end taxing the olympic medals? >> that's a great question, governor, not only a great response from my colleagues, but from my constituents back home, too, they think this is outrageous. they're so appreciative of all of the hard work and the dedication and years of sacrifice the olympians put into their careers. the olympians are not there to win money, they are he' there to show they're the best in the world and perhaps to show that the united states is the best in the world and that's what this is all about. so, feedback from my constituents and colleagues is overwhelmingly supportive and scratching their heads why the irs monitors what's happening in london. >> mike: only eight out of 34 countries participate in the olympics even tax anything on the part of the athletes. i think a lot of us, when we learn this, and i just found out about it this week myself. my gosh, these are people who a

the federal government will weigh in sometime over the next few weeks. treasury, justice department and the federal reserve. what i'm happy about with this part of the settlement is that the revocation of the license was taken off the table. i think that would have been very counterproductive. actually very harmful to the new york economy and a bad signal to banks. so it's also tough to say whether the penalty fits the crime because the new york complaint did not detail exactly how much they alleged standard made off of these transactions. it was an unspecified amount in millions. they never said. but at least for standard and the rest of foreign banks operating in new york, revocation did not come to pass. that's a good thing. >> susie: well you mentioned treasury, the federal reserve. do you think that more information's going to come out. and do you think that they will add on to any other penalties or fines or something like that. >> i think they probably have to just as a political act. it's tough to have an investigation into the entity and not come up with

they claim treasury and federal reserve believe the accusations of illegal dealings with iran undermine talks over a potential settlement related to the transactions. the white house has confirmed the treasury is in, quote, close contact with authorities on the matter. adding the administration takes sanctions violations extremely seriously. standard chartered joins a growing list of similar u.s. investigations. in 2009 lloyds tbs coughed up $350 million. the same year credit suisse agreed for similar allegations and abn amro paid $500 million. hsbc is under investigation by a number of u.s. agencies for possible sanctions in antimoney laundering violations. that's quite a list. joining us for more on this story are simon nixon, european editor of european wall street journal and mark oswald, strategist at monumental securities. simon, first to you, we rattled off all these uk banks, global banks, part of this probe. is this developing into a u.s./uk fight? gli don't think it is. first of all this accident is an antiiran issue standard chartered walked into here. it's about u.s. foreign

claiming hire expertise in one is enforced profits the other is rent and privilege at the treasury and federal reserve and the white house. >> exactly. that's what we have had. writing about the big short he was writing about those betting against the dollar. all the scams. all of the prestigious forces that backed the blind side. people investing in the crazy mortgage securities when the value was totally unknown. the feeble shorting the use wherefrom private equity funds or the who were not seeking favors. but the goldman sachs of the world were all in demint and big government itself mandated the purchase of the credit default swaps and others that brought down the economy. it is not pro capitalist to support goldman sachs in their embrace with the department of treasury. >> host: is supply-side economics it dead? >> it is true economics. i am excited to have mitt romney run for president. bain capital is one of the foundation's the of supply-side economics. say it applied it to business to show the most effective way of four businesses to gain market share. because costs dropped by 200 tor

they had people from the federal reserve, treasury, and there were only a couple of us here on the panel of the commission that dealt with it from a monetary viewpoint. most of them they were to protect the federal reserve system and the big banks of course the results turned out, but the conditions are worse today. i think there is a much bigger crisis. the paper money system creates a massive amount of debt, and since the dollar is a reserve currency, the world is a wash in debt. so the debt of grease and the ore countries, it is related. so the conditions are so much worse, and we're deeply in debt, and all that is being offered out of washington is spend more money, borrow more money, print more money, and the american people and the people of the world are waking up. this is crazy, it doesn't work, you can't get rid of a debt problem by creating more debt -- >> how do you respond to criticism about this? how do you respond to critics like ben bernanke that say it leaves no discretion over interest rates or the money supply? >> i would be grateful. why should they have the discretion

the other on rant and toll and privileges at the treasury, the federal reserve command the white house. >> and that is exactly what we have had. you know, when lewis wrote that book the big short he was writing about all the gaggle of hedge funds that bet against the big banks who are all supporting these sub prime mortgage concoctions and confections and scams. and it was all the most prestigious forces in both the u.s. and the world economy that backed the blind side, as i call it, the people who were investing in these crazy concoctions, mortgage securities in which the value was totally unknown by the people who were investing in it. and the people who were shorting these with these hedge funds and venture funds and private equity funds. all these are entrepreneurs who are not seeking special government favors. the big banks, goldman of the world, there are all intimate with government. the government itself was mandating the purchase of these credit defaults wops and other devices which ended up bringing down the economy. it is not pro capitalist to support goldman. there in cemen

americans to own treasurys, and there are insurance companies and banks in america who own treasurys. the federal reserve on a lot of treasurys. so we as taxpayers even though we are not buying them with our own money, we're kind of on the hook for them. the fed is the largest buyer. central banks, banks all around the world, china is a huge creditor. we'll them a couple of trillion. via japan over a trillion. companies all over the world, governments are holding on to this debt. the story, i forget where it was run. mentioned that from the peak of the housing bubble until now they said the average american household net worth was down about 40%. is actually down a lot more than that. when you factor in each household share of the new debt that has been accumulated in their name by the federal government. so americans are basically already broke. that is why i am saying that we have to just admit that we are insolvent because american families cannot repay the money that has been barred in their name. >> we admit we are insolvent. what is the solution? >> once you admit you are insolvent you rest

we should mention any sort of federal penalty from regulators from the department of justice and treasuryederal reserve could still come at a later date. sources tell us those discussions occurred separately and are still ongoing at this time. back to you. >> i don't know if you know the answer to this, the $340 million civil penalty, it seems lower than what some were calling for. obviously, we had many people on our air saying they want the license revoked in new york city you point out is now off the table for tomorrow's hearing. what about the amount of this fine? >> that's why it's important to remember this is just what's coming from the new york department of financial services, a newly created body to deal with regulation of firms like this in new york state, from andrew cuomo saying this demonstrates the effectiveness and leadership of the new department of financial services. i commend the state legislature for creating a modern legislator for today's marketplace. that's a state issue. there still could be more fines on top of this $340 million fine just coming from new york sta

as we're able to really blunt the impact of this although treasury would not listen to our complaints congress did and eventually even the federal reserve who is part and parcel of this program refused to go along with some of the more insane things the treasury was pushing and were able to stop that money from going out and i want to get into a lot of the themes that you just mentioned there that go through your book about the fat in the treasury and some of their tactics and underhanded tactics but first one of the things that really struck me with with your description of this program and what treasury with pushing for various agencies was that this program was for select firms for chosen firms that would that would work with a partnership with the government and there was potential for the chosen fund managers for example to use this program to move markets they could then booth profits for these managers existing books and i'm pretty sure i mean i'm guessing that if you're a retail investor you could a line out to get in on the action with a program like this i'm curious what you think this embodies as far as crony capitali

we produce a tremendous amount of tax revenue just offshore to replenish the federal treasury, if youoperational economy down here. >> i just think about it, senator, and whether it was bp, whether it was katrina, i mean, hurricane seasons in general, now that we have a drought that has the mississippi trying to keep nine feet deep, do you ever wonder sometimes what else they can throw at you? >> that's exactly what we're thinking. i mean, i was with a mayor. he looked out last year and the water was coming over into his town. now he has to go and look down to try to find water in the river. it's just been a quite bizarre set of circumstances. but, you know, again the local officials are much better prepared. the federal government is so much more proactive now. we just have to handle what comes our way and be grateful for the support that we're getting from around the country. >> senator, appreciate you taking a few moments to talk to us today. >> thank you. >> senator mary landrieu of louisiana. we'll keep our eye on the gulf coast over the next couple of days. >> extraordinary outp

there are going to be numerous investigations, not only the state but the federal regulators will get involved, the treasury department is getting involved, from will be criminal investigations, the f.b.i. is investigating. there will probably be an investigation an delight -- deloitt's involvement. it's going to get big and fines will be huge. in the end it will end with fines at the least. >> susie: how big are the penalties going to be and will anybody end up in jail? >> the penalties will likely be at least had the hundreds of millions of dollars, they could be over a billion in this case because the conduct is so egregious and it was clearly very knowingly done by certain people at the bank. and because of that, there also is a good chance that people may actually wind up having criminal prosecutions against them individually, and they may wind up going to jail as well. >> susie: it's not just standard charter, we've seen a string of banks behaving badly recently, the barclay's case, and hsbc is said to have been vfed in laundering money, and now this. at times like this people feel maybe it's time for

last week's charges beat any deal reached among federal regulators like the treasury, and the department of justice. any deal there is still outstanding and according to my sources not imminent. they helped spear ahead in similar charges in recent years. it's idea federal regulators and we're waiting to see what rest of the story is. >> so storm, when we see the stoke open in europe, i expect it will go higher because they did not lose the banking license? >> no, and if they did it never has the new york state banking license been under question. the fact that they were able to avoid a hearing tomorrow that would suspend that losts, and it's no small potatoes there. >> and we have what promises to be a vigorous debate coming up on this. heading toward the close request 50 minutes left in the trading day. >> more ahead on this big edition of "closing bell." >>> coming up, waxes poetic. henry waxman has criticisms fb paul rooipyan's voting history the house. and dried fruit, anyone? walter rob weighs in on how this year's historic drought is affecting food prices and the company's bottom l

treasury to the federal reserve and even the i.m.f. have backed principal reduction. i guess you know what's the discrepancy here. i mean the taxpayers don't have to keep bailing out fannie mae and freddie mac. i think i think that's the first point is we've bailed out a lot of institutions that shouldn't have to get it that doesn't mean we need to keep it with fannie mae and freddie mac. but more to the point with principle reductions they work in some cases that's why some people back them but look at the results of the program that we're talking about the home affordable modification program champ fifty percent minimum of people who have gone into that program i wound up redefault thing on their mortgage the point of this point of modification is to in theory help families that would otherwise be able to make payments on their homes and they they just got behind only to lower the payments but when we've done that through this program already at least half of them have read the bulk of it so when the market looks at the numbers and they look at what the outcome coul

eight crash paul ryan attended a closed meeting with congressional leaders bush's treasury secretary henry paulson and federal reserve chairman ben bernanke in september eighteenth two thousand and eight the purpose of the meeting was to disclose the coming economic meltdown and begged congress to pass legislation to help collapsing banks is stead of doing anything to help ryan left the meeting and on the very same day paul ryan sold shares of stock he own to several troubled banks and reinvested the proceeds in goldman sachs a bank that the meeting had disclosed was not in trouble but this is an example of market fundamentalism paul ryan in his mind he's thinking he's justified in breaking the law more or less i mean it's legal then for congress people to trade on inside information or maybe it's not legal or maybe they do a work around but it's clearly immoral and it clearly disenfranchises many americans but he figures that it's his divine providence to do so because he is doing god's work and so many people in washington are wall street believe that they're doing market fundamentalism like al qaeda is a k

potentially greater billion dollar profit when this is all said and done including the federal reserve and the u.s. treasury. >> so you want to buy back the stock, but you have to keep an eye on it to see -- >> you're absolutely right. i think you want me to say something i don't want to say, we're working hard, we'll be prepared, and when the time comes we're in a position to buy back some shares, and we'll wait and see what treasury decides to do. >> let me ask you about the sales of certain divisions, okay, this is probably another area you don't want to say so much on, but the whole debate and auction of your say shan operation and your aircraft leasing, where are you in terms of selling the businesses? >> yeah, we're looking to ipo ilc. we've done a lot to fix the organization. we had older planes so we now have a part out company so if we can't lease a plane, we take it apart and sell it for it's parts. it's a good strategy. so we think we're in good shape, we just need markets to get better as we prepare to do that. and we want to monetize aia for the right way. once we can do that it will give us ad

so far, with our federal reserve and our treasury and so far our congress has said, well, we better be in europe because our banks over there, we don't want to let everybody fail. we have to keep bailing them out. i would say, that eventually is going to bring the downfall of the dollar and the downfall of the economy which means there will be more excuses for them to crack the bishop and -- whip and crack down or our civil liberties. individual rights is so crucial and tieing it in property rights because we cannot allow that to happen. the economic system today is based on debt. for too long what we have done, we bailed out every attempt for the market to correct the attacks. we always jumped in and interfere. that is we spent more money, printed more money and lowered the interest rate and there seems to be a response. even though the statistics now are showing how devastating this economy and the structure of currency is. the average american family is losing. they know it. it's on the news this week, significantly. that is a predictable event. austrian economics teaches if the gov

wins the presidency than glenn hubbard might become the next chairman of the federal reserve or even the secretary of treasury so i want to get to the bottom of is and romney's economic philosophy which seems to be rooted in reaganomics or supply side economics so i had him on the radio show yesterday and this was my first question take a look. at how is it that. after you know if you look if you look at the last sixty or seventy years of history we see that average wages tracked productivity almost per. sickly continuously until the reagan administration then wages flattened out and productivity continued to increase and all that money seemed to go to c.e.o. pay instead of wages we've seen now the result of reaganomics trickle down economics whatever you want to call it supply side economics for thirty years it's been a disaster for the middle class how do you think you can continue to sell this to the american people. you know we have long term structural problems in america that aren't democrat problems are republican problems they're problems we have to deal with and we have seen wages for many people fai

>> we have to see the federal side, the department of justice, treasury department, fed, those discussions with the bank are still ongoing. if they are choosing to levy finds compounding what we see today, the standard says only $14 million of transactions actually fit into the loophole the dfs was charging them with it and you can see that high discrepancy. we'll see what the feds have to say what the level of wrongdoing and egregiousness is. we still don't know yet. >> with many investors hunting for you, you might be among them, there may be a saver way to explore junk bonds. we kind of got on to this segment with regards to municip municipal bonds, high yielding. we've been covering a lot about bankrupt towns and dangers and fit falls of bonds the schools are issuing. why would you want to go into the world of munis when there are potential dangers out there? >> despite the headlines, munis are an asset class historically safe. these are bonds financing projects, very essential. schools, roads, airports, water utilities. their record of default is actually very favorable. >> is there a

by political figures in the white house, one of whom we just saw though he works for treasury department, and a federal bankruptcy judge, merely rubber stamped what the political figures wanted. one of the things they wanted was to reward the labor unions that supported the president, and to punish the nonunion members who probably did not support the president. any got what they wanted. >>stuart: the car czar in the white house, is he involved in this? do we know? you are saying that the general motors bankruptcy, all of this was political and it was a political decision to reward the unions making them hole but take away the pensions from the management. >>guest: we just saw from the e-mails an instruction from the treasury department to the pension guarantee corporation, don't come to this meeting where we will discuss these things. the law says they have to be there because they are the ultimate guarantor. if general motors can not make a payment on a pension, and the bankruptcy court doesn't relieve them of that obligation, this corporation, the pension guarantee corporation has to make the paymen

to have consequences for the financial stability of the united states -- the federal reserve, the secretary of the treasury, and the president, so, it is a very collaborative accountable process. and it has an entire mechanism allowing for a variety of different approaches to the firm. using both liquidity measures and other measures. to try to contain the problem. so it does not have the collateral effects that we saw in the example of lehman brothers and even going back to ltcm. that is how the legislation tries to deal with the issue. i would respectfully disagree with joe. and his assertions that the dodd frank does not address the too big to fail problem. >> well, let me phrase it this way. and i want to start out with ken this time. one of the things about glass- steagall is that it changed the world. it said it, we are going to split these countries up. if you are an investment bank any info, at your this kind of company you are a commercial bank and you will be protected but you cannot do anything dangers. it changes the structure. actually worked pretty well for 50 years. dodd frank, it seems to m

treasury problem. it is a community problem. that committed to problem will involve all of you. more to come -- the third week this is the compilation itself. we do not have been the federal government a consolidated set of books or agencies post transactions so we can prepare statements from the consolidated transaction. we see individual transactions, receipts and deposits, as they occur. treasury makes 85% of the disbursements and by the end of the year, we will have a non- treasury disbursements afforded to so we will no 100% of the payments actually made. similarly, 98% of the receipts coming in, come in electronically. we get 98% of their receipts electronically. we do know the individual transactions. there's a gap. although we know the transactions, we report the man after the agencies and they claim those transactions, classified those transactions and account for those transactions within the federal accounting structure and then monthly or quarterly, report back to treasury bond 224's or other filings to tell us how to classify those filings. we have the individual transactions and we know the results of the agency's classifying those transactions but we don't

the company received bailout money from the federal government and the treasury department still ownslmost 1/3 of gm's stock making it the largest shareholder. but gm does not want to be used in either candidate's campaign for the white house. >>> well, republicans have not rue leased a -- released a revised schedule for their convention in tam paul, all after -- in tampa. alison burns is live in our washington, d.c. newsroom with the symbolic way they are gonna get started. >> reporter: even though most of the big events have been called off for today. there's go in be a symbolic ten- minute opening session this afternoon on the convention stage where party leaders will be unveiling this giant federal date lock. republicans are gonna try to fit most everything in over the last three days but dropping some day-time speakers, and starting the prime time lineup an hour earlier. the head of the rnc says the goals are still the same. we're still gonna prosecute the president on what he promisened aen delivered -- promised and delivered. >>> these are some pictures that we got here this mo

one of the things i saw in washington repeatedly was how much the treasury officials i was dealing with as well as officials of the federal reserve so it benefits with the interests of the banks themselves so you know when we were pushing for different types of oversight provisions or conditions where we could identify ok here's a conflict of interest that might be a real problem here is an area of fraud that you really need to be concerned about a response was was really a roll of the i pad it had on the head and say like look you don't understand these are banks they would never do this they would never put their profit over over that of of you know that or the public interest they would never and the quote was risk their reputation which is really an alan greenspan ian concept that we don't need to protect the market from fraud because the banks will just behave and you know i think you see that same attitude when you see what happened when the federal reserve bank of new york under tim geithner's leadership got notified in two thousand and eight about the fact that there was this manipulation of what happened to be th

the european community and what's going to happen to us, generally so far, with our federal reserve and our treasuryr, we said, well, we better be in europe, because our banks over there, they don't want to let everybody fail, so we want to keep bailing them out. i would say that eventually is going to bring the downfall of the dollar and the downfall of the economy, which means that there will be more excuses for them to crack the whip and crack down on our civil liberties. this is why understanding, civil liberties, individual rights are so crucial at tying it is to monetary policy and property rights because we cannot allow it to happen. the economic system today is based on debt. for too long, what we have done is bailed out every attempt of the market to correct the mistakes made, especially since 1971. we've always jumped in and interfered. that is, we spent more money, printed more money, lowered interest rates, and there seems to always be a response. even though the is it the stinks now are showing how devastating this economy and the destruction of currency is. the average american family