derivatives but no apparently the europeans are reading into the arms of goldman sachs goldman sachs groups first quarter earnings are expected to benefit from the increased use of derivatives by european clients seeking ways to hedge risk according to an internal report seen by reuters there's a risk against doing business with goldman sachs and it goes to actually go to a country like greece they sell in faulty bonds they cook the books so they can get into the euro then they collapse then greece other countries go to goldman sachs out of cure the problem of having dealt with goldman sachs of course the earnings are up and it's a virtuous cycle what kind of drugs are they got these big people taking well they're saying they're going there to. hedge risk time after time on the crisis report our articles have shown if you purchased some credit derivatives from goldman sachs from j.p. morgan look at the entirety of italy municipalities going broke all across italy why because they bought credit derivatives from j.p. morgan those exploded they cost ten twenty thirty times more th

indeed s e c fines goldman sachs twenty two million dollars over a holes the securities and exchange commission on thursday fined goldman sachs group twenty two million dollars over allegations that the wall street bank didn't how policies to prevent analysts from sharing nonpublic information to the firm's traders the exchanges took place and weekly huddles where goldman's research analysts met to provide their best trading ideas to the firm's traders and later passed them on to a select group of top clients the f.c.c. said well yeah. a lawyer called glass steagall was present prevented this exact thing from going on the communication between the analysts of the bankers within the organization and this was there after that last crash and depression in america and they pass some laws to try to keep these groups from talking to each other but now goldman has formalized their fraud with this weekly huddle that they get together i suppose it shows the the huddle it's like a football huddle because you blankfein likes to touch the little guys but behind so i think is the main objective o

with these bankers from goldman sachs he met with hedge funders who used to be at goldman sachs he told them despite going in front of congress and telling congress. we will not bail out fannie mae and freddie mac. they will not be put into receivership into conservatorship and in fact he was telling them that we're going to do it so you cannot this is our little huddle our little cuddle but i won't but that's exactly right and this is a one of the most blatant examples of really this modern crypto engineered financial fascism when you've got the hank paulson's in the revolving door between wall street and washington trading on inside information leading to this amalgam of fraud that's poisoning the waters of our financial system and causing widespread austerity despair discussed outrage pre-revolution well max you bring up the word fraud and according to joseph devore in attorney at close in o'connor in new york and a former assistant regional director and as he sees new york office he said the fine was not in consequential for a settlement that involves technical violations of interna

they're all goldman sachs alums. the bill back to goldman sachs. they go back into government. -- they all go back to goldman sachs. they go back into government. it is a white house issued. >> this goes back to the media in a way. i will go back to goldman sachs if i must. remember in august when there were about 1200 people doing civil disobedience around the white house protesting the keystone pipeline. the corporate mainstream media was like this on that. imagine if 1200 tea party members hitched themselves to the date of the white house. when occupy launched in september in new york and then moved across the country, suddenly there was more attention being paid to other movements. it exposed how the media has done such a disservice to this country in the last few years by saying there was one movement in this country, the tea party. there are many other movements. the occupy wall street movement has brought into sharper relief and force the media to pay attention to other issues and movements. i could take off 10 or 15. -- tick off to enter 15

goldman sachs, do you buy ahead of these numbers? >> i am the renowned bear on the panel as far as banks are concerned. i look at goldman. trading at 0.8 times book. it's been a decent performer. you've seen decent numbers coming out of fixed income trading. it doesn't meet my criteria. if that meets your criteria, going for it. to me i'll be looking more toward a black. >> i did buy goldman sachs last week. over the last few weeks i talked about the potential for trading revenues for a lot of these banks to be better than people think. q-1, the trading environment looks much better. sovereign debt market in europe. healing for the moment. not permanently. >> at least first quarter. >> citigroup's numbers look great here. goldman sachs, this will be more of a trading quarter that looks like q-1 2011 than the q-3 loss you saw. upside for goldman sachs is a surprise to the 355 street estimate. >> you have to marry the two theories here. citi is telling us with the rates arbitrage and fixed income, it will look rosy for goldman sachs. if

fiasco to add to the list so it turns out goldman sachs had a thirty million dollars stake in village voice media which has come under fire for its back page dot com website now in an op ed in the new york times over the weekend columnist nicholas kristoff says this site is the biggest forum for trafficking of underage girls in the u.s. so indirectly now goldman sachs was linked to the child sex trafficking allegation so what happened then. and over the relationship goldman was in years since his cell industry. goldman just like we're out we're done we can handle another p.r. scandal right while goldman can't help themselves because they're so corrupt. they're so perverse in their very nature their culture is so malignant they really can't open it was no amount of p.r. could actually help goldman that's why the best p.r. was one hundred shut up and he just stopped talking because he knew that if anything he said was going to be corrupt the corrupt it was at its core corrupt so we know that we trust now been accused of being goldman sachs is pimping out women it's just it's the nature

>> we'd be long goldman sachs. >> tom: thank you.the extraordinary nairp fred cannon. >> >> susie: and still ahead, much of the country seeing warmer weather than normal, and summer retail sales getting off to an early start. >> today was the first trading day since the chinese government announced a big change over the weekend. it was loosening up control over the kurntiony. the chinese yuan fell in value against the american dollar. darren girsh reports that's corrects a strong message to us. >> reporter: for years, many criticized the chinese trade policy, and the yuan is massively undervalued. 20 to 30% too cheap against the dollar if not more. so when the chinese market gave the market more flexibility to set the exchange rate, it's worth noting that the yuan actually got cheaper. >> i think they're just saying you know what? there's two way risks, don't count on us to deappreciate the currency. >> it's where the chinese government thinks it should be, especially considering growth is slowing. >> the fact of their monetary polic

away from for example goldman sachs and greg smith came out with that letter he said goldman sachs does all these awful things are they trying to get ahead of the p.r. curb by putting bull like out into the media what are your thoughts at this point. quite simple you know there's only one parishioner of like master response in d.c. and that was an interview made by book designing and the but she didn't spoke at the time for cheaper movie and she spoke for the so she was the head of the it was one of the time this was the only mainstream interview of her and that was like four years ago four or five years ago and no. talk about this university you know they gave j.p. morgan gave five million dollars to the interest of denver you know you know special lessons from diplomas about commodities you know i could control commodities mostly and this is absolutely fascinating yes she came out first because they need to have students you know to learn how to manipulate to come on it is called this is called well let's say that you know. this is something very new basically and certain point is tha

the biggest threat to goldman sachs ever, the existential threat to gold man sachs was soe of the bad probably conservative on fiscal issues and more liberal on social issues and where that will get me, i'm not sure yet. >> just some of the highlights from our interview with goldman sachs ceo lloyd blankfein. we'll get final thoughts from rick santelli and gary kaminsky who did that at goldman when we come back. [ male announcer ] at scottrade, you won't just find us online, you'll also find us in person, with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. because personal service starts with a real person. [ rodger ] at scottrade, seven dollar trades are just the start. our support teams are nearby, ready to help. it's no wonder so many investors are saying... [ all ] i'm with scottrade. over a million people have discovered how easy it is to use legalzoom for important legal documents. so start your business, protect your family, launch your dreams. at legalzoom.com, we put the law on your side. but not how we get

reuters trent lott the former senate majority leader lobbying firm clients include citi group goldman sachs g.e. great the on another example of you richard gephardt house majority leader formerly now the firm that he works for clients include boeing goldman sachs g b that so jack abrams off when you have these guys as you kind of started to get into before the break going from washington to lobbying for the financial services sector what exactly does that i need companies what do they get with that it's the it's the connections here is the connections the access but it's also the expertise there are people of immense importance the german of that you put up on the screen are obviously incredibly powerful but there are only three among the many that you mention by the way it's not just again this sector this is happening in every sector revolving door soon so quickly in washington there's really no way you can go to watch people dump right out of the clone verse and jump right into the logging world the influence world they often will cope themselves lobbyist by the way as we saw with newt

of goldman sachs. he has been fired has been fired for what's happening to presidents goldman sachs and who replaced. you know the information or good it was the previous p.r. of timothy geithner it's interesting all right so on this topic of incest let's talk about you smashing guy. life masters and jamie diamond i mean let's keep in mind that j.p. morgan has ninety trillion in derivatives that essentially they park on the balance sheet of the fed they don't really keep it on their own balance sheet but they nevertheless control it there simultaneously you've got this issue of market making that she claims to be involved with on all manner of markets including global commodity markets all get that in a sack and simultaneously you've got ben bernanke who goes out and testifies in congress that he doesn't see any inflation out there and of course there's more of the data points you point to purr. that there is no inflation is the relatively subdued performance of gold and silver and other commodities an

goldman sachs went from evil traders -- no, goldman sachs investors are not too impressed with the earnings report. reiterating his neutral rating on the shares, you kind of agree with the market reaction today, doug? >> yeah, i do. i think the stocks had a nice run, a good quarter. probably not good enough to keep the run going. there's probably a touch of disappointment. >> what's the problem? >> i think the issue for the quarter -- not the issue, but i think the touch of disappointment was trading down 20% year after year, comp for morgan and citigroup didn't look as good and that is the big driver for goldman sachs, so we'll have to see what that looks like going forward. normally that's the strongest quarter of the year, so there's a little disappointment, but it was a solid quarter. >> if you're neutral on goldman sachs, what do you like? >> i actually prefer morgan stanley. i think there is an up side for morgan stanley. i think it reacts in a big way for now and next quarter. i also think they will have better commentary around investment pipelines, more particular facebook, and i t

department chair just blew out goldman sachs you're all i mean j.p. morgan point of view she did a tremendous job snow and you know that's that's for sure but this is what we have seen together like one year ago i think is that we are now you know extremely like a poor french revolution states because in the seventeen eighteen eight. d'arista crowds were the only one to be able to buy limbs you know and to sell the commodities to agricultural commodities and know what we're seeing with you can morgan is that not only. her department or by all the control common disease in the whole world that's why for example you have seen you know last year the price of coffee you know jumping were between twenty and thirty percent more and you were paying i am paying and everybody was watching you guys are paying your mortgage and not only think she's doing down for everything and this is something new because we're going back in history you know banks are buying our commodities they're taking you know their money even before you know a stake is mending you know ki

he got the interview of the day, i would say the interview of the year with goldman sachs' ceo lloyd blankfein. good to see you. >> thank you. >> nicely done, my dear. >> means a lot from you. >> you cover a lot of topics, certainly. >> we do. >> but one of the keys i think had to do with risk and regulation. everybody wants to know whether there's a future for the investment banks. and you asked him about that. >> let's take a listen to what lloyd had to say in terms of the regulatory environment and how he sees it right now. let's take a listen to that. >> as the market gets safer because certain of these adjustments, there will be no greater beneficiary of that than the firms that manage themselves well. the biggest threat to goldman sachs, ever, the existential threat was the poor performance and bad risk managing practices of some of our competitors with whom we had relationships. >> do you yea with him? >> i do. if you go back to 2008, it was really poor risk management. it was not more regulations that would have changed the outcome of what happened. yes, it might have changed

morgan how they can do pounds of goldman sachs by the way it was a super position and foremost. was it from a good position to disappoint the financial times groups or to cause to do sue about morgan position especially on the global scandal which i don't. you know this point. is not really true let's just remind you of the important point to come from pog who was your of goldman sachs. he has been fired because going forward for what happened to president goldman sachs and who replaced from current you know in the information route it was the previous peer of timothy geithner it's interesting all right so on this topic of incest let's talk about measuring geitner. life masters jamie diamond i mean let's keep in mind that j.p. morgan has ninety trillion in derivatives he was that essentially they park on the balance sheet of the fed they don't really keep it on their own balance sheet but they've nevertheless control it there simultaneously you've got this issue of market making that she claims to be involved with on all manner of markets including global commodity markets we'll

goldman sachs not so good but i think johnson & johnson and coke are much more important than goldmanhad two big misses in two big beats over the last four quarters. i think they're trying to recreate their business, trying to figure out it's what going to be going forward. j&j and coke better. i think we have to pay attention to spain. bid to cover on their short instrument auction better than expected. and on the ten-year, the yield there below 6%. that's all good news. as far as housing is concerned, a little bit of a mixed bag. it's interesting that yesterday home depot hit a new 52-week high. that has just been up at a 45-degree angle since about august. and the chart for home depot yesterday looked really good. so in general earnings good, financials doing well, some names doing pretty well. goldman sachs maybe not so much but i don't think you can read too much into goldman sachs. >> what about apple and technology? apple down five days in a row. it's down close to 10% from its highs. >> down 4.1% yesterday. part of the problem with apple is it's kind of the headline now. it wh

joining sme abby joseph cohen, goldman sachs senior u.s. investment strategist. >> thank you for having me. >> not so great a start for the second quarter. even though we're seeing a pick up in steam in the last few days, do you still think the markets are undervalued? >> we do think the markets are undervalued. we have to keep in mind there's an awful lot of risk aversion and when investors are reminding that things may not be going swimmingly, economic questions about china or even the united states, investors do tend to pull back. >> i guess that's the cautiousness that we're seeing. abby, let's talk fundamentals. earning season under way. most analysts are looking for earnings growth. the s&p is under 100%. what does that mean for investors? with the market as strong as it has been, i'm wondering if expectations are too high in terms of earnings. >> it's a great question, maria, from a macro perspective, our team here at goldman sachs have that there is not a quick and simple resolution to the european problem, be it on the economy or o

>> outside goldman sachs, you have many that are benefiting by loan growth. lly starting to lend money in this country and that's at very wide margins. goldman doesn't do nearly as much as some of the other top bankers and investment bankers. >> that's a really good point of course when we're looking at some of the long term strategies of the bank and the health of the financial sector. because a lot of investors have been saying that they're worried about the run up that we've seen that potentially it was just because the sector was oversold and you have investors getting back in, but we're not really seeing those fundamentals are will. so you think generally speaking that we are. >> yes, we are seeing bank lend willing, commercial and industrial loans are up 13%. and we just haven't seen that in the past. so it's starting to gain some momentum. and i think that will benefit those you institutions that have lending as a larger part of their profit. >> certainly would be piece of the picture when we look at the rof recovery here in the united states. z achl za

morgan goldman sachs are going to a country like greece based on faulty bonds they cook the books so they can get into the euro then they collapse then greece and other countries go to goldman sachs to help of cure the problem of having dealt with goldman sachs of course the earnings are up there it's a virtuous cycle what kind of drugs are they've got these great people taking. this latest business now it's just a bit after three minutes past eight o'clock moscow time dimitris their high business this. russia's richest fighting for the country's largest airport we've got one tonight and that's why we're talking about moscow's them ideas of boards and in one corner there's billion then three then the head of powerful group and he's got the backing of a state run the bank which is ready to provide two billion dollars of financial assistance now in the other quarter is the head of so much capital investment bank which specializes in infrastructure and transport assets his name is. and he's got the backing of his book bag which is also providing financial assistance now they're both off

morgan goldman sachs are going to a country like greece they sell in quality bonds a couple of books so they can get into the euro then they collapse then greece and other countries go to goldman sachs out of cure the problem of having dealt with goldman sachs of course the earnings are up then it's a virtuous cycle what kind of drugs are they got these great people taking. the. time now for the business news with dmitri who joins us live on the grass to me through the battle looms for russia's largest airport tell me that of a new bidders on the horizon how star how it is how it's all working now well right now we have the two of russia's wealthiest men two of russia's wealthiest tycoons battling for the last of four demanded of airport and one corner of the freedom of the owner of alpha group who has the backing of the e bank bank which is ready to provide up to two billion dollars on the other in the other corner of is the head of so my capital's able within we're going to be out of it he's got a financial support from now they're both offering three billion dollars for the assets

morgan goldman sachs to go to a country like greece based on faulty bonds they cook the books so they can get into the euro then they collapse then greece and other countries go to goldman sachs to help them cure the problem of having dealt with goldman sachs and of course the earnings are up if it's a virtuous cycle what kind of drugs are they got these great people taking. egypt leading political force the muslim brotherhood has come under fire from the public and other political groups from dominating its own candidate in the upcoming presidential race. broken so earlier promises to stay out of the vote the decision also sparked internal frictions in the brotherhood of some of the groups figures with so many interests. for it doesn't it isn't just organizations also criticize the nomination claiming it was the brotherhood jeopardizing that. change in egypt but the truth there are a few doubts right journalist believes the party's nomination of chips will see the country and. the muslim brotherhood should not be in one seat to push social change so i imagine it will be quite difficu

morgan goldman sachs to go to a country like greece based on faulty bonds they cook the books so they can get into the euro and they collapse then greece and other countries go to goldman sachs out of cure the problem of having dealt with goldman sachs of course the earnings are up if it's a virtuous cycle what kind of drugs are they got these greek people taking. taking a look now at other news from around the world this hour dozens of al qaeda militants being killed in southern yemen following three days of government airstrikes fraser in response to a militant attack on a nearby army base last week islamist militants have used the past year of anti-government protests to expand their influence in the country. argentinian protesters rallying against britain's control of the falkland islands clashed with riot for these areas demonstrators outside the british embassy hurled petrol bomb tore down police barricades four officers responded with tear gas down on march thirtieth anniversary of the start of options for which almost thousand people died . here drivers had a narrow escape in

get into the euro then they collapse then grace and other countries go to goldman sachs to help them cure the problem of having dealt with goldman sachs of course the earnings are up it's a virtuous cycle what kind of drugs are they got these big people taking. a look at some other news from around the world the. clashes erupted between some protest is. probably ok and couldn't control. three demonstrates an actual court. case or this was. a protest march this you kind of film. which. turned the captives east by the resolution on the. six resources and four soldiers forcibly the rebel groups the trick is to just. enjoy life for the next twenty years. that's america's oldest. instinct the pressure. to drive it so hard and. scaping new way. vehicles follow the sign of this new company that lori was being dragged along the road some of that struck us control of the side. of the restaurant right since. he was the cause of home security is placed in the water with a defense contract to buy up to four hundred fifty billion gallons of i mean there are concerns about really agents using the

morgan goldman sachs to go to a country like greece based on faulty bonds they cook the books so they can get into the euro and they collapse then greece and other countries go to goldman sachs out of cure the problem of having dealt with goldman sachs of course the earnings are up then it's a virtuous cycle what kind of drugs are they got these great people taking. a look now at some other news from around the world this hour first to argentina where violent clashes have erupted between police and protesters in one of the areas during a rally outside the u.k. embassy over british control the falkland islands angry demonstrators threw petrol bombs and poles down barricades before officers responded with tear gas a protest march the thirtieth anniversary of the start of the fall for which it was a thousand people died. captives have been released by the revolutionary armed forces of colombia otherwise known as far the six police officers and four soldiers are reportedly the rebel groups last military hostages had been held in jungle hideouts for at least twelve years fark is latin amer

take a look at goldman sachs, $129,000,000,000 one check to goldman sachs to bail them out for theirn aig. trill ions of dollars to your buddies in the corporate suite on wall street. that's where there is dependency, not down at the bottom. you show a capricious disregard for the interests and needs of those who struggle and show enormous beennevsinceense beneficinec to those at the to the. we want an opportunity society where there is fairness the same rules for everybody. we don't want handouts for anybody. those at the bottom or those at the top. you know governor christie? i know you are a fan of bruce springsteen. a friend saw you at the vip concert last night at his concert he played an amazing song jack of all trades. i want you to read the lyrics of that song. i know you trust bruce. here is what the lyrics say, the banker man grows fatter. the working man grows thing. it's all happened before and it will happen again. governor christie pay attention to those words. those words are what you should think etch-a-sketch candidate, an image where romney is anti gas. >>i'm a poli

of having dealt with goldman sachs of course the earnings are up and it's a virtuous cycle what kind of drugs are they got these great people taking. now that it's not a news from around the world this hour violent clashes erupted between police and protesters of. three of the various u.k. embassy the british controlled for dogs. strictest troops barricades the officers responded to i guess interest to thunderbirds from the field. is the right. ten captives that have been released. which is a number that was. six police officers and four soldiers are reportedly the rebel groups the last military hostages held in the jungle hideouts for at least twelve it is. america's oldest of the grief of losing ground in recent years came to victory precious. and two drivers had been skating the new way of their vehicles but if you saw it it was smooth cope with this. story was being dragged along the bridge by some of its truck lost control and slid to the side. is driving recklessly supplied. to drive out seconds before the. dramatic pictures there it's time to join katie on our business desk to