goldman sachs faces a fifteen million dollars penalty if they break this deal with goldman sachs oakland though is there any not to invest in goldman sachs again. so what happened was the oakland city council voted unanimously to break the deal with goldman sachs the city would be required as i mentioned earlier to pay a fifteen million dollars penalty fee if they break a deal with goldman they made back in one thousand nine hundred eighty eight the deal locked in the interest rate at the time but the problem with that is the federal reserve set interest rates much lower after the financial crisis and this was done to help struggling cities like oakland tackle the debt but oakland has been still been forced by goldman sachs to pay the higher rate costing the city of four million dollars a year and oakland is sick of paying wall street at the expense of police teachers and other public services such as oakland stand a chance against the big bank to talk about this joining me now is dr lou's caliber organizer for the coalition to stop goldman sachs' welcome there lose so why i know that yo

goldman sachs has made $26 million of profits from the swap deal so far. , oakland's assistant city minister scott johnson wrote a memo to the mayor that -- your response, alysabeth alexander? >> we believe goldman understands that these are bad deals. we know that because they are approaching governments all over california and saying, do you want to get out of these deals? this is how much you can pay in order to get out of this deals. they are proactively -- many are actually approaching the government and saying, we know these are bad deals and their costing you money in this is how you can get out of them. goldman is single and $15 million for the city or: >> $15 million to get out of the swap. the swaps are being renegotiated all of the country. cities and counties and school districts are choosing to get out because they know they're bad deals. if we had the original term, the original agreement would be a variable swap and we would not be in this situation. goldman came to the city of oakland and said, let's do this swap as a side deal because you w

with now what they're doing is the city council they voted unanimously to to break the deal with goldman sachs the city would be required to pay a fifteen million dollars penalty fee if they break a deal with goldman they made this deal back in one thousand nine hundred eighty eight which locked in an interest rate locked in at that time but the problem is that the federal reserve set interest rates much lower after the financial crisis this was done to help struggling cities like oakland tackle their debt and has been forced to to pay goldman sachs' this higher interest rate costing the city four million dollars a year and oakland is sick of paying wall street at the expense of police teachers and other public services so it is open stand a chance against the big bank to talk about this reverend daniel bufford with allen temple baptist church joins us now welcome there so wanted to you know that you kind of have taken the lead it to lead this movement to fight back against the bet the banks to fight back against goldman sachs why take of this approach why fight instead of filing for bankruptc

bernstein and company now the only reason why they would do this according to hints is that goldman sachs and morgan stanley manage money market funds so they by law would be a blight too he however says that they wouldn't want to have to do this because they want cordial relationships with the other banks. well as if the law ever stop these guys from doing whatever it is they want to do but now they're hiding behind the skirt of the law suddenly when it suits them just like remember back during the crisis. they were not a bank they wanted to get on benefits of not being a bank and then when the crisis that they just thought oh no we are a bank and you know they they treat the law as a plastic a movable feast you know as whatever they write the laws themselves what we're talking about if they if they go to like what's going on they write new laws in front of obama just rubber stamps now max in fact a former goldman sachs partner who is now a finance professor at new york university's stern school of business says that plaintiffs would face difficulties such as proving how much money they

the resolution was simple yet very strongly worded saying if goldman sachs refuses to terminate the swap agreement without terminations fees or penalty within sixty days and they will be excluded from any future business with the city of oakland basically of goldman sachs doesn't do it the city says in the city will pull all of its business out of a bank which is a whole heck of a lot of money it's a threat that the bank has to listen to and a threat that other cities need to need to issue their own point is no city in america should be doing business with the bankers on wall street who proven time and time again they're only interested in looting instead cities across the nation should be investing their assets in local banks and local credit unions local institutions that actually care about and are derived from the communities that they belong to rather than only caring about short term profits for out of state sure. that's been a central theme coming out of the occupy movement since last fall calling on citizens and communities to move their money out of the big banks and in

morgan chase and a slew of other banks including goldman sachs. the city needed a new sewer system which was estimated to cost two hundred fifty million dollars but thanks to a crummy financing deal with the bank's toure's and the corruption of a handful of elected officials the cost of that sewer project swelled to three billion dollars like the banks have done to so many unsuspecting homeowners they sold the county alone for the sewer that came with one of those adjustable or exploding interest rates the county would pay a low interest rate that it could afford for a few years and then the rate would just blow up and surprise that's exactly what happened and when the rates went up the city couldn't afford to make the payments on that loan and they were wiped out by the millions of dollars in fees at the bank charged just to do the deal so after furlough in city workers cutting back on cops on the street and turning off city lights just to pay off the bank's chairs jefferson county eventually filed for bankruptcy one of the first american countie

goldman sachs runs one of the largest commodities index in the world. and i've spent 20 years in places like africa, and i know what happens when wheat prices increase by 100%. children starve. and i knew i was going to get arrested because, you know, i was, i covered the famine in sudan and was in these huge u.n. tents and feeding stations trying to save. and you know, the people who die in famines were usually elderly and children. the place was, i mean, everyone had tuberculosis. i have scars in my lungs from tuberculosis, which i successfully fought off. and those are sort of the whispers of the dead. all those children and others who couldn't didn't have the ability to go in front of a place like goldman sachs and condemn them. >> but surely those people, as you were arrested, there were people working for goldman sachs looking down from the windows -- >> they were taking pictures -- >> taking pictures, laughing. surely you don't think they would wish that outcome in africa or anywhere else, right? >> well, it's moral fragmentation. i mean, they bl

leader lloyd blankfein will tell charlie rose when asked about goldman sachs a siphoning of high frequency trading in a legal. offering of money from the exchange for said no we're making a market that's code for i'm a shameless market manipulating lawbreaking larsen a stick schmuck that's what that means making the market when it comes out of lloyd blankfein spyhole so one hundred percent of the time this robot beats you just like in the market one hundred percent of the time a high frequency trading algorithm is going to be any human being for big banks score perfect sixty one day run that's in two thousand and ten max despite the running an ease in world markets for giants of american finance managed to make money from trading every single day during the first three months of the year their remarkable sixty one day streak is one for the record books perfect trading quarters on wall street are about as rare as perfect games in major league baseball there have only ever been nineteen perfect days in baseball but bank of america citi group goldman sachs and j.p. morgan produced t

but he looks at his résumé and says, "i was kicked out of goldman sachs.kicked out of being the governor. i still have something to prove." >> and he wanted to come back to wall street and prove that his partners had been wrong about getting rid of him at ldman sachs. and he was going to show them. >> i'm really excited about the opportunity to lead mf global. >> i thought it was great. the stock price jumped. and corzine was a dynamic character. >> we're going to work very hard to get the earnings back on track. >> from the military to goldman sachs to governor. i mean, i get it, you know. he's going to have political connections. this is going to be great for the company, you know. so i was sipping the kool-aid at that time. >> narrator: mf global was a well-established commodities brokerage, a spin-off from the old british powerhouse, man financial. >> it was basically a commodities and futures trading and investing firm. clients would come there saying they want to make trades in the commodities industry or the futures industry-- buy pork bellies, buy

but goldman sachs can be in the market right now. that can really drive things in a positive way over the next six months. >> came out net exposure to spain about $3.5 billion. that's net. are you worried about the european bank problem as it pertains to jpm? >> absolutely. it's not about the direct exposures. it's about the $70 trillion of notional derivatives out there. it's still an issue that can't go away off the five big u.s. banks with that exposure. it's not off the table yet. if we could get some solvency issues resolved in europe, there could be a real rally. that's where morgan stanley would look very appealing. >> and we might also have a unicorn ride to take a little bit later on. fred cannon, thank you very much. a lot of talk about unicorn. fascinated by them. jon najarian, do you have a comment on jpm, banks, europe or minnesota in general? >> well, love minnesota. i was up here with steve grasso for a big conference that he was one of the hosts of and that a lot of big traders were up here. i think one of the takeawa

goldman sachs and as tommy gun rob rob rob rob rob rob rob rob rob rob this is robber barons on high frequency trading i mean if the robber barons were alive today they'd be high frequency trading and lloyd blankfein is a robber baron and africans are driving well for further. evidence of this assertion of mine that they're robbing the global central banks of the credit available whatever credit remains in the system you know willie sutton said he robbed banks with a tommy gun because you can't rob a bank on charm and personality so we're going to go to a charmless guy without personality bob diamond and piece admit they let diamond slip away ahead of inquiry vote so several members of the commons treasury select committee have admitted that the banking chief was able to get away with a vase of an implausible answers during a three hour appearance before them yesterday he appeared on able to provide straight answers he repeatedly strayed off topic and at times appeared unable to understand simple questions this is his posing as a bimbo oh i don't know nothing oh young man over there

but in 2003, nick dunbar published a story in risk magazine uncovering a secret deal between goldman sachsand greece. the article revealed that goldman had sold greece several giant swaps to help greece meet its targets. >> smith: what was the reaction when your story came out? >> what happened was complete silence. i think i did one radio appearance and the story was just buried. nothing happened at all. >> narrator: the silence was surprising. this was the largest sovereign derivative deal ever reported. the deal cut greece's debt by around two percent. what other deals there were is not known. >> it was a secret off-balance- sheet loan. legal within the rules of the time, as goldman would say, but it was an off-balance-sheet loan. it's a very expensive form of borrowing for greece. by going through goldman, greece ended up paying something like 16% a year. it's a bit like a subprime mortgage or something like that. it's a crazy borrowing rate for someone that's desperate to borrow money. >> smith: and how much did goldman make in the deal? >> i think you can safely say that goldman earn

david, anything from goldman sachs jump out at you?ome ways, it's the larger theme which you were discussing. the changing nature of the overall business and profitability of the business. the move more aggressively into private banking. it was not a great quarter. numbers had come down, but at the end of the day, it looks pretty good, but fixed income currencies commodities, down. expenses down sharply. that's kind of the world we're living in now when it comes to the big banks and goldman figuring it out before the others. >> i thought this was a direct hit on east hampton and south hampton properties. to me, this is your chance if you're not an investment banker, go up to nantucket this weekend. there's going to be for sale signs. >> is that what you're going this weekend? >> come on. have some sympathy. >> we've got to go. carl, worst all-time sequel? >> worst all-time sequel. electric boogaloo. >> number one, staying alive. >> which i forgot existed. ♪ i want to win [ breathes deeply ] ♪ this is where the dream begins ♪ ♪ i want t

the issue about the olympics in london was just a tea cup. >> the goldman sachs that the u.s.nish first with 37 gold medals, and i know how much faith we have in goldman sachs these days. >> i was just going to say that. >> there will be flack at home for the american athletes. some of our lawmakers are upset because some of the uniforms are made in china and they found on their iphoned andy pads. >> and he was unable to pronounce his last name. >> you're wrong. you can pronounce it any way. >> chris, i just said, after we play the sound byte, you can call him anything you want. >> it's cheney. >> i'm comfortable with what i did, how you did it, and i'll let others judge whether they liked it or not. >> do you have any regrets? >> not really. >> chris, what say you? >> it's the same as cheney. we all check it out and we'll know what we're talking about. [ chuckling ] >> eliot: now they've got me con veined. the fraudulent issue of voter fraud. that's coming up next. she's every 5-year-old who ever jumped in a pool and didn't want to get out. ♪ ♪ every coach, every rival who ev

traditional banking pieces of these firms and even its banking business is valuable because it's part of goldman sachs bad news for goldman is that they don't necessarily have this alternative of breaking up in order to give value to shareholders. >> but that's only helpful, bethany, if we actually believe that citi and/or bank of america or any of the other banking peers out there will actually break up. is that what you believe is the case? >> i'm not sure they will. i'm not sure they will break up. i think there are investors agitating for that. it's too soon to say that's going to happen. but here's the other difference between citi and bank of america and goldman, citi and bank of america, their balance sheets aren't as liquid as goldman and they're not all marked to market. so there is more wiggle room and the market could be questioning the value of their assets. goldman is a mark-to-market firm, so it's a little clearer to see the market questioning kind of the ongoing value of the earnings streak. >> right. bethany, of course, they're never going to do that, right, distribute the cash, pay of

morgan goldman sachs citibank and bank of america and morgan stanley these are the five institutions that hold ninety eight percent of three hundred two trillion dollars worth of notional and derivatives that are held by all american bank holding companies already premiere at times thanks so much for being on the kaiser report love being with you max all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert are a thing my guest rob kirby of kirby analytics if honest i mean email please do so at kaiser report r t t v dot ru to next on my status and buy off. i.

morgan goldman sachs citibank and bank of american working stealing these are the five institutions that hold ninety eight percent of three hundred two trillion dollars worth of notional and derivatives that are held by all american bank holding companies iraq army are out of time thanks so much for being on the kaiser report love being with you max all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert are a thing my guest rob kirby of kirby analytics if i say i mean e-mail please do so at kaiser report r t t v dot are you saying buy off. good morning from the front and clear in more mouth to feed but where will the food come from can science provide the answers to the future of under the mike.

goldman sachs and morgan stanley are among financial firms that may bring lawsuits against their biggest rivals as regulators on three continents examined whether other banks manipulated the london interbank offered rate known as libel or said bradley hints an analyst was censored c. bernstein and company now the only reason why they would do this according to hints is that goldman sachs and morgan stanley manage money market funds so they by law would be obliged to you. well as if the law ever stop these guys from doing whatever it is they want to do but now they're hiding behind the skirt of the law suddenly when it suits them just like remember back during the crisis goldman sachs they were not a bank they wanted to go about affairs of not being a bank and then when the crisis that they decided oh no we are a bank and you know they they treat the law as the plastic movable feast you know as whatever they write the laws themselves when we're talking about. praise for preaching freedom and the georgian leadership has cost as a fledgling democracy a success story but by the western media

morgan goldman sachs citibank and bank of american working stealing these are the five institutions that hold ninety eight percent of three hundred two trillion dollars worth of notional and derivatives that are held by all american bank holding companies all right kirby right time thanks so much for being on the kaiser report love being with you max all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert thank my guests rob kirby of kirby analytics if honest i mean email please do so at kaiser report r t t v dot are you. there hasn't been a thing on t.v. . it is to get the maximum political impact. the material is. journalism we. we want to present. something else.

goldman sachs and morgan stanley are a little different animals. obviouslere' overlap. would you rather have that exposure, you know, for trading and investment banking and m&a? >> i would say people in general think there's more difference between jpmorgan and goldman sachs and morgan stanley than there actually is. morgan stanley, 40% of their business comes from wealth management. huge fixed income management at both places. jpmorgan is perceived to be a bank. it's really an investment bank. it has commercial banking operations, but where they make their money is not that different from goldman sachs and morgan stanley. >> jpmorgan jumped the gun on the bank stress test a while back. the conspiracy theorist in he says with all the bad news they've had, says they're going to have one humdinger of a quarter on the upside and this stock spikes by 5.5%. is that feasible? could you see that happening? >> you know, it's possible, but i think that people are going to be so unbelieving in what they report tomorrow. if they have a great quarter, people are going to think jami