prison gulag state brought to you by jamie diamond warren buffett and c n b c and of course this london whale happened in the city of london through which all fraud happens now in the u.k. there is a dish known as bubbling squeak i think it should be renamed bubble in fraud in this headline here max r.b.s. investigated over possible iran sanctions violations according to the f.t. report of investigations by federal reserve and department of justice follows three hundred forty million dollars settlement by standard chartered the financial times said that the new york state agency is not investigating r.b.s. it's just the federal reserve of the department of justice who are a little bit annoyed with this new andrew cuomo agency that tried to get in on their turf oh yeah last year r.b.s. was a good terrorist so the state bailed him out another about terrorist so now they're to be shaken down by wall street and bubble and squeak that is a famous dish in the u.k. they should rename it bubble and fraud and while they're at it they should rename but bob diamond on the dessert menu he's the new spott

was encouraged to boost london whale trade valuations according to the wall street journal by his boss while bank of america is in the thick of the live work progress leaving subpoenas for information from investigators over how the bank that live also r.b.s. has dismissed four employees for reportedly trying to rig lie board and set aside three hundred ten million pounds to deal with the bank's misdeeds so given all of this just a litany day after day of bad deeds by banks should average folks get out of the ring to casino and where can they go we'll talk to michael krieger principal of krieger asset management let's get to today's capital account. by now dear viewers you probably already know the nuts and bolts of the u.s. jobs report from the b.l.s. for july they came out today i mentioned the headline numbers at the top of the show what i'm more interested in is the choose your own adventure story they lend themselves to this is a good jobs report just listen to the treasury market is acknowledging putting more concerted knowledge that these numbers are a bit better than expec

whether it's this, or barclays or the london whale and the list is getting ever more long. >> you knowetons in every closet. you just heard guy talking about skeletons. >> how did they all end up in the bank's closet? >> it's not only in the bank's. it's everywhere. just -- if you want to launder money and you're the iranians you're going to a bank that's not in the u.s. stay away from those. jpmorgan may have had their issue but it wasn't one of integrity. >> you thought this one was quality right? they made it through the financial crisis better than most people did. >> stay on the home turf. stay on the home turn. i mention sheepishly whatever that word is that i bought jpmorgan. i like it. i buy some more in the dip. i think that the banks will do well particularly in the bond backup which they may very well do. >> murphy, outrage all over this story obviously. but if you're an investor in a bank does it shape the way you would deal or bet on a bank? that's essentially what you're doing. you're taking a risk when you put money in the stock of a bank. and lately you've had a lot of

global the london whale barclays lie bore ages says p.c. money laundering standard charter they all went through london and it all touches on something you've been talking about here really hypothecation because only in london do you have infinite really hypothecation that is to say you can sell the same security an infinite number of times with no collateral correct and that's the problem you know glossed ego was repealed because the u.s. banks felt like they could be true london where you had infinitely above the geisha so i do i think there is something sick of the heart of the city and i think that thing is the ability to multiply up a tiny base of collateral to whatever level you want i think i think that's absolutely connected with. all of these scandals i'm not i don't i don't i'm not completely convinced that what standard chartered is done is particularly awful because i'm not sure the united states really has any right to be dictating. to individuals and businesses which countries they can do business with while this is another asp

morgan had to disclose a two billion dollars loss of the london whale which became what five or nine billion dollars that's a direct result of having to cover their show over so over naked shorts so we're pressuring them we're going to go the way of enron the company has no balance sheet whatsoever it's and you know this is the unstoppable force of the silver liberation army meets the unmovable object which is jamie diamond but he's going to topple saddam hussein topple moammar gadhafi toppled jamie diamond regime change he's going to topple they'll go the same way as moammar now this financial times headline u.s. set to drop for your probe into silver price insufficient evidence they say has been found for a legal case since this made the front page of our children has come out and said going that this is not true he is not dropping the investigation he is continuing with the investigation in fact he believes that there are signs of silver and gold market manipulation pretty chilled. doesn't know what's going on jamie knows blythe masters knows gary gensler head of the sea if you se

morgan's london whale made off all want to london it's the big leagues of fraud so sue me good luck with your move to the majors well we'll see how you do well the good thing about moving to london is that you know the british people are self abusers they'll take all the abuse that banks through poor upon them tackle lazy britain fellow tories tell david cameron david cameron was today challenge by rising star tory m.p.'s to tackle league. britain and bring in tough new work reforms the m.p. said that the u.k. had to resist work ethic towards that of south korea singapore and hong kong rather than the office of factory culture in struggling european nations or risk slipping into grim decline with falling living standards oh you want to bring back workout says basically what he wants to do so yeah i mean i'm sure they'll have a revival of all over twist the west-end who served looks who are you know and i mean the tories of course don't want to address the elephant in the room the fact that their primary donors the bank stars have financially raped merce of merce's mercilessly the vast ma

morgan reported a five point eight billion dollar london whale trading loss to date a lot more than they originally reported it would be and they will clawed back compensation for two years for the traders involved and their boss i know drew but did these clawbacks reinstate. real estate accountability you can find out what mr grant has to say about club x. the first this. it is friday the thirteenth and we are going to be right so there's a graveyard behind me but there's a church right over here. which i don't know if you're not from new york are you haven't spent time on wall street you may not know that this is actually on the wall street right across the street which is kind of interesting and for me makes me wonder if during the financial panic during in two thousand and eight if people were coming here. for a case things were just so great i'm sure they were but you know the irony is that the church used to have a lot more power in society in the west of the middle ages obviously than then it does now today the fed is kind of taken over that role of the priesthood the monetary pre

really seemed to be able to get away with anything without much scrutiny new reports show that the london whale remember that massively risky trade that j.p. morgan was taking well turns out this guy was doing it according to the wall street journal and sources hey guess what his boss told him to fudge the valuation so we'll just look at what this signifies about a rigged system and what people can do about it liz that's all coming up a lot to talk about that's coming up next on the capital account with lauren lister but that's going to do for the news from one of the stories we cover check out our you tube channel you tube dot com slash r c america can also follow me on twitter at liz wall we'll be back here and have our. i'm a former soviet soldier. or prisoner. husband . a father. an alien in the beginning stages. a son. a brother. an alien in ukraine. craving for my whole family. you know sometimes you see a story and it seems so for lengthly you think you understand it and then you glimpse something else and you hear or see some other part of it and realized everything you thought you knew

morgan london of whale, libor scandal. the treasury secretary has said, yes, there is still work the banks need to do, but they are better capitalized to handle a crisis that. >host: the caller expressed concern about the banks. when people look at the t.a.r.p. payments, the banks that have outstanding money for the small banks, as we have talked about. has the t.a.r.p. program and the banking crisis affected people's opinions about small banks in the white has with the large banks, the ones that you associate with wall street? guest: unfortunately, they get lumped into that category. what is left are the community banks. when people talk about t.a.r.p., they still think wall street bailout. i know community banks have tried to differentiate to say, the independent community bankers of america said that they did not cause a crisis, they were in small communities that got wrapped up in it, but now they are suffering because they are in an economy and cannot afford to pay this back right now. host: the red signifies the most

investigating the london whale that trading fiasco, jpmorgan is tapping ray lehman.an't this market rally get any respect. we're talking about the rodney dangerfield of market rallies. it's monday, august 20, 2012. "squawk box" begins right now. ♪ >>> looking for a little respect. good morning. welcome to "sqwk

you own london, whales, scotland, ireland. >> france?ve dropped as well. you can get there. >> that's when you do it. >> in 2014 where the olympic interests are. another field trip, gayle. >> peter, you predicted it. >> i did. >> i thought, no, you have to be off. when i saw all the empty seats at some of the main events i couldn't believe it. i could not believe it. >> visa is reporting right now that last year alone the visitors to the olympics spent $700 million on their visa cards just to go there. that's good news, right? >> yeah. >> put it in the overall picture, not enough. >> peter greenberg, thank you very much. >>> david alan grier, he wasn't at the olympics either. why? he's packing in the big crowds on broadway. thank you very much. he'll be with us this morning to talk about the tony-winning "porgy and bess." we'll be right back. you're watching "cbs this morning." ♪ ♪ >> announcer: this portion of "cbs this morning" sponsored by purina. your pet, our passion. ♪ watch out, wishful thinking ♪ ooh la la, read between the lines

you know, they woke up one day and some guy called a whale in london cost them $6 billion. okay? so in other words, i'm not against regulation. all i'm saying is, in the words of henry kaufman, who was the chief economist for many years at solomon brothers and who, a lot of people have a high regard for, who is an economist. he says, dodd-frank enshrined too big to fail. >> cyrus, we'll give you a chance to respond to that in a minute but ken, i do believe, had some thoughts also about, you know, basically what needs to be done to rein in wall street and to regulatory and otherwise, right? >> well i do have some thoughts about it, joe. i think the problem with regulation is that it, as joe said, it enshrines a certain protocol and then people make it their job to get around that. so remember the body count in vietnam. people shoot for a target. then there are unintended consequences like the whistle-blower part of dodd-frank which tends to chill internal discussions. and then there is the sheer complexity of it. but my basic issue with dodd-frank, and on balance i agree that it i

they woke up one day and some guy called the whale in london cost them $6 billion. okay? so, i'm not against regulation. all i'm saying is in the words of henry kaufman, who was the chief economist for many years of solomon brothers and who people have high regard for, he said dodd-frank enshrined two big to fail. >> i think ken had thoughts also about basically what needs to be done to reign in wall street, and the regulatory and otherwise. right? >> i do have some thoughts about is, joe. i think the problem with regulation is that it, as joe said, it enshrines a certain protocol, and then people make it their job to get around that. so, remember the body count in vietnam. people would shoot for a target. then there are unintended consequences, like the whistle blower part of dodd-frank, which tends to chill internal discussion. and then there's the sheer complexity of it. but my basic issue with dodd-frank -- on balance i agree that it is a step forward, a good step forward. but my basic problem is -- again taking up on joe -- it's not going to solve the cycle problem.

first quarter numbers, this just happened in the past hour to account for the multibillion-dollar london whaleding certain items from the $1.31. >> we knew that number as well. >> exactly. >> but we hadn't seen the final news. >>> retailer kohl's is under pressure today, earned $1 per share for the second quarter, four cents above estimates but its comp. store sales fell 2.7% which the company calls "disappointi "disappointing" and cut its full year forecast. >>> and finally etrade is looking for a new chief executive. steve fryeberg departed. the bank has formed a committee to look for an interim ceo while frank petrilli becomes interim ceo. >>> cnbc's jane wells joins us, i don't know whether you took one of your new bullet trains to where you are, certainly got to get those things going, don't worry about cities. >> yeah, $68 billion, joe it's gotten so bad the presumed republican nominee is making fun of us. listen. >> if entrepreneurs and businesspeople around the world and here at home think that at some point america's going to become like greece or like spain, or italy, or like califor

you know, they woke up one day and some guy called a whale in london cost them $6 billion. okay? so in other words, i'm not against regulation. all i'm saying is, in the words of henry kaufman, who was the chief economist for many years at solomon brothers and who, a lot of people have a high regard for, who is an economist. he says, dodd-frank enshrined too big to fail. >> cyrus, we'll give you a chance to respond to that in a minute but ken, i do believe, had some thoughts also about, you know, basically what needs to be done to rein in wall street and to regulatory and otherwise, right? >> well i do have some thoughts about it, joe. i think the problem with regulation is that it, as joe said, it enshrines a certain protocol and then people make it their job to get around that. so remember the body count in vietnam. people shoot for a target. then there are unintended consequences like the whistle-blower part of dodd-frank which tends to chill internal discussions. and then there is the sheer complexity of it. but my basic issue with dodd-frank, and on balance i agree that it i

because of that whale over in london. going to buy bristol meyers because it's come down to 4% plus yield. then what we need, a little yield going. power. i want to make those trades now. let's go to nick. in my home state of new jersey. nick? >> how are you jim? >> real good. i'll be at the shore this weekend. you coming to the shore with me? >> yeah. i'm actually at the shore right now on my cell phone. let me give you my stocks. i know you're a busy man. >> i got all the time in the world man. i thought we'd have a miller 64 or something. >> i want you to get some sleep tonight. i got cirrus logic. crus. i bought that because i got, had apple so i know they made the iphones for apple. >> yeah. they make the audio panel for it. you got that right partner. >> all right. i got bac bank of america. >> okay. >> i have cmkn. i was going to buy starbucks but you said less european exposure so i bought dunkin brand. i got microsoft, and i have 3m. >> wow. you are all fired up. let me tell you something. you are fired up. sure

you know they woke up one day and some guy called a whale in london cost them $6 billion. okay? so in other words, i'm not against regulation. all i'm saying is in the words of henry kaufman, who was the chief economist for many years at solomon brothers and who a lot of people have a high regard for, who is an economist. he says dodd-frank enshrined too big to fail. >> cyrus we'll give you a chance to respond to that in a minute but ken i do believe, had some thoughts also about you know basically what needs to be done to rein in wall street d to regulatory and otherwise, right? >> well i do have some thoughts about it joe. i think the problem with regulation is that it as joe said it enshrines a certain protocol and then people make it their job to get around that. so remember the body cunt in vietnam. people shoot for a target. then there are unintended consequences like the whistle-blower part of dodd-frank which tends to chill internal discussions. and then there is the sheer complexity of it. but my basic issue with dodd-frank and on balance i agree that it is a step forwa

london, let's get together. and he spent half an hour looking at the pictures and said you're going to write a book for me. on the mountains of whales. and he said that i have never written a book before, and he said you're going to write one now. and you're going to lay it out. and i said i don't know how to lay out a book. and he said it's time that you learn. and he did. this is the way worked with me. he drafted me out of my freshman year at berkeley. he took me away from school, to do a book. i spoke on the big sur coast. i got back and finished have my sophomore year and said would you like to go to the galapagos and spend 12 months there doing that in the sophomore year. and it was not a hard decision. >> the decisions, that his training. >> this book is offensive people of that era, it was like no institution, no environmentalism. there were no environmental impact studies, no endangered species act, there was no process, it was just people with this spectacular sense of poetry. your father's use of language was art. it was not science or politics, it was art. and it was tremendously individually moving. >> the training that