system yes well they need more security in wall street especially let's take a firm like goldman sachs for example it now looks like they won't be paying their bankers any bonuses at all this year so like life i mean security from his own bankers well but it also there were many i saw on twitter all the bankers and brokers i follow and they were saying oh all the conspiracy theories are going to start all that jamie diamond and j.p. morgan paying off the n.y.p.d. it's a big conspiracy blah blah blah but remember we covered liam a graph goodman who wrote the asylum the renegades who hijacked the world oil markets and she said in no uncertain terms on the nine mix there is why scale drug dealing happening there and that because they pay the new york city police department so much they never ever look for drugs there of course that's another truism on wall street new york times wrote a story when i was working there in the eighty speculating that ninety eight percent of the people working on wall street were either trafficking or doing cocaine that hasn't changed at all but again you know this this m

times" they say that they take goldman sachs, for example, which swung heavily for obama in 2008.imes as much money to mitt romney in president obama in the donations reported so far. then romney went and had pwrebg nass with jaime diamond the ceo of jpmorgan chase at a sold out breakfast fund-raiser afterward and apparently jaime diamond he could be getting behind romney. this is a guy who was rumored to be obama's pick as treasury secretary at one point. >> right, right. look, president obama has a donor crisis. it's not just wall street, it's throughout a bunch of his donors. if you take a look at it in 2008 there were 3,950,000 people who donated to president obama's campaign. in the first quarter this year 290,000 of them, or 7% renewed their support of the president's political efforts with a contribution in the first quarter of his fundraising. experts i talked to tell me that is one quarter to 1/3 the rate it should are been. in other words he should have had 6 to 800,000 people renew their support if it was a normal political effort. i think for a variety of reasons, but

for example, prosecutors say on september 28, 2008, gupta called raj rajaratnam just 16 secondes after completing a goldman sachs conference call. gupta allegedly told raj rajaratnam, warren buffet's berkshire hathaway was about to make a $5 billion investment in goldman. minutes later, before the markets closed and before the buffet news was public, the next morning gold's prices 300 a share. the indian born businessman has extensive relationships with corporate c.e.o.s and charitable foundations. >> india needs that kind of growth. >> reporter: and he's used his voice around the world to encourage job creation, but prosecutor says gupta, who appeared in court today,om openly flaunted security laws. inaise statement, his lawyer called the charges baseless, saying mr. gupta is innocent. he has always acted with honesty and integrity. tonight, gupta is free on it will $10 million bail after pleading not guilty. he's not accused of directly profiting from the inside information he allegedly passed on, but if convicted he faces 105 years in prison and millions in fines. >> pelley: thanks, bob. hedge fund manager ra

would destroy the banking industry of goldman sachs but here you have a perfect example they stole a certain percentage of every single transaction nobody noticed for decades. with a tobin tax a small half a percent or one percent transaction fee not a single person would notice that if you never told them so this is essentially a tobin tax that bank of new york mellon has been imposing upon the bottom ninety nine percent but dare you suggest that we reverse that and take that back from the one percent and with a token tax they're like screeching that this is on american this is anti-capitalism well what is it one bank of new york mellon does that to the ninety nine percent of their customers it's trought but they say it's fraud in the service of liquidity and market making the same thing goldman sachs's lloyd blankfein when he goes to congress he says we guess we commit fraud every day but we needed to keep markets open now the third point of course is that this revelation will go unheeded and nobody lacked on it. they're part of a criminal syndicate this is why they go unpunished because they're not being put there not being prosecuted as a racke

the potential that in france, for example, you'll have insolvency, panic and a crisis that could create contagion. a lot of banks, jpmorgan, goldman sachswn because they have a lot of exposure to european banks. truly a transmission mechanism. >> would it be another lehman? >> in the worst case, of course, it could be another lehman nap is what banks are panicking about now, and what viewers should worry about. longer term, looking for the europeans putting the building blocks together to allow the european institutions to function more strongly. europe has institutions stronger today than a few years ago. germans as leaders are stronger today than a few years ago. i expect that's going to continue, but it requires pain to get there. >> good to talk to you. president and founder of the eurasia group. carol? >>> now's your chance to "talk back" on one of the big questions of the day. the question -- can rich politicians relate to ordinary americans? rick perry thins not. on cnbc, perry went there to describe mitt romney. >> i would say they ought to look in the mirror, i guess. i consider him to be a fat cat. >> did you hear it? perry ca

for example, there was a big issue with hank paulson, the secretary, and attaof the time he was president of goldman sacks before he became treasury secretary -- angoldman sachshe time, people were saying he had to give up some parts of the deferred compensation and people were saying this is a huge sacrifice he has to make. it turned out because the market crash, he did well out of putting those assets and a blind trust. in general, this is not an issue with the president and secretary of the treasury. it is an issue occasionally with people lower down, with the fda official who was trading dowbasd on his own knowledge of drug approvals. those people are definitely subject to prosecution in the case if they are discovered. host: is it just top tier or the staff of these congressmen that it looked at as well as far as they're treating habits? gues-- trading habits? guest: a lot of insider trading is not detected by this, but look at patterns. they look at what is happening in the markets. did they say patterns in trading, and once they see those, they will investigate. sometimes it is they got lucky. other times it happens over and over again. that is, as i u