gift card holders who are these preferred creditors max well these include taxpayer backed royal bank of scotland and lloyds banking group who would have played a leading role in selecting the timing of the administration yes the royal bank of scotland in conjunction with h.m.p. knowingly sall worthless gift cards to them are mine ending poxy druids here in britain who have no recourse at all speaking of the taxpayer who owns many things in these banks of which they do not even know what the content is of the banks they own they are the consumers and the owners of these banks the same people who are outraged by the who are sunni and ask no questions about what is in their banks here is on the front page of the independent insert taxpayer to pick up bulk of r.b.s. . says five hundred million pound live bore fine. that's right the bank while it was owned by the people went out and to show their appreciation to man a massive act of financial terrorism and they said phone goo british people pay us again pay us again paste again we know you worship stones and rocks and you know what money is your fric

>> royal bank of scotland in the spotlight. the bank said in the of the one well. the investment branch of the bank is making money. the share price is considerably higher. but many -- very contentious issue, especially for a bank only alive today because during the financial crisis the u.k. taxpayer had to for about $70 billion to bail out. let me explain to everybody. controversy certainly appears to be brewing over the bonuses at the royal bank of scotland, that it plans to pay investment bankers. the bank is state control -- 82% owned by british taxpayer after the near collapse starring the credit crunch. let's look at some of the details because "the financial times" says are b.s. plans to pay as much as $390 million in bonuses to step -- rbs plans to pay as muchbonuses all at a timt appears to be close to agreeing to pay $785 million in fines or bank settlements to u.s. and british regulators over the libor rigging scandal, that involved several banks around the world basically working together to manipulate a key international lending rate. executive will be

and i leave you with the most unfortunate domain name of the week, from the royal bank of scotland and their website, nig.com. "hey, boss! royal bank of scotland is taken.". "ok, thanks. just go with nig." if you are offended by that joke, it's okay, i have one friend that i'm pretty sure is scottish. and he said it's fine. >> thanks for coming out, guys. i appreciate it. we'll see you next week. goodnight. [clappin captioning sponsored by comedy central ( theme song playing ) [eagle caw] [cheers and applause] >> stephen: welcome to the report, everybody. thank you so much. [crowd chanting stephen] [cheers and applause] >> stephen: thank you, ladies and gentlemen. thank you for the amount of energy you put into that chanting given the fact that you've done it before. welcome to hour two of the broadcast. nation, you know, i do this show for one reason and one reason only, to look out for you. as we speak there's a massive corporate conspiracy to rip you off that the president has been strangely silent on. fortunately one brave news organization tackled it head on. "the new york post".

morgan goldman sachs are the royal bank of scotland barclays are siphoning off the cash and the integrity of just like anybody sticking a tube into somebody's gas tank and siphoning off the equity that's what they're doing where it's interesting as a kind of you could say it's a slightly parasitical activity yes but you do need traditional players to be able to do this and i read about this in the book. that used you have these sort of cautious investors like pension funds that you have to dish no. long term investors that will that want these safe investments and the game that wall street played in the city of london played in the last decade was to was to craft these things that looked very safe and then that would help them achieve the volume because they were just everything themselves and they were then sticking it into some package and then people over the world of buying it and that's where. the feel that drove that machine ok so now i call this reverse drug dealing you know the cocaine dealer will cut the coke was some something to stretch out the volume of his coke it starts off

out banks need billions of pounds more capitals to shore up their balance sheets and support the economy senior bank of england officials have warned u.k. regulators have given royal bank of scotland and lloyds banking group until march to begin dealing with a black hole that brooks newmark a tory member of the treasury select committee suggested it could be as largest thirty billion pounds. i think it's a great contrast is that the british people are appalled that these british high street stores like tesco are selling the horse to me when they they expect to be getting some other forms of meat but the local banks know lloyd.

. >> tom: royal bank of scotland is expected to be the latest bank to pay big fines for it's alleged in a global interest rate rigging scandal. libor is a key lending rate that affects everything from student loans to home mortgages. no details yet on the size of the payout or when the amount will be determined. two banks have paid fines. >> tom: boeing's dreamliner jet remains in service tonight even as federal regulators have opened a top to bottom review of the plane. the federal aviation administration announced the safety review after at least four separate incidents with the new planes this week, problems that have shaken the confidence of some shareholders. >> reporter: this is the most recent problem for boeing's newest and most complex aircraft, a cracked windshield on a 787 in japan today. but it was problems earlier this week like an auxiliary battery fire on board an empty 787 in boston that got the attention of safety regulators. >> this review will cover the critical systems of the aircraft including the design, manufacturing and assembly. >> reporter: the action comes

with the royal bank of scotland barclays are lawyers threatening the government banks in america threatening the government and just down the fiscal cliff and the debt ceiling banks threatening the government give us money or require the system it all kind of comes from long term capital management i think what your thoughts are you think you're quite right i mean the too big to fail concept started then i think that was the you know the d.n.a. got into the system about point he was slightly different from what happened two thousand and eight because this joint hedge fund officially was going to be dismantled but what happened what greenspan did by cutting rates or muscles in the lead to save long term capital management because it was wound down its founders lost their money and that was the end of the business but it was really to save the counter parties or the long term capital management which was the likes of j.p. morgan deutsche bank u.b.s. you name the guys in that space so it was the links between this this giant hedge fund the big dealers and over the counter derivatives that they

nature of the subject oh absolutely in a war setting the corpses stink and they rot and you can smell them but here in the financial war banks like ages b.c. lloyds barclays royal bank of scotland they're they're run by zombies they're dead they're rotting but you don't smell it because the the rotting banking system doesn't doesn't emit in order as as such so people are not aware that they're walking amongst the dead the british pound is a zombie currency and the british bankers are all necrophiliac loving the zombie bankers and banks and this is what we do we report on it we're on the front lines exactly but i think there is an awful stench we all did smell it in two thousand and seven and two thousand and eight people were panicked people. scared people that was because of the stench of the banking system but people are used to it now and they just think oh well you know my horsemeat burger and they move on but you know four hundred episodes in to the kaiser report this financial report many of the themes we've been looking at are starting to come true one of them as you mentioned in the opening is currency wars so let's look at this first headline of the past week the big h

barclays royal bank of scotland and lloyds similarly collect corporate and banks through welfare from the state the u.k. economy is shrinking why because of scroungers like oz born cameron and the banks now i might add he's been.

barclays royal bank of scotland and lloyds similarly collect corporate and banks through welfare from the state the u.k. economy is shrinking why because of scroungers like oz born cameron and the banks. now i might add he's been pretty much alone on the world stage of leaders as introducing austerity and so he's doubled down even cutting his own child benefit despite the fact that this week i.m.f. economists apologised for austerity forecasts so the international monetary fund's chief economist today acknowledged that the fund blew its forecast for greece and other european economies because it did not fully understand how government austerity efforts would undermine economic growth the new and highly technical paper looks again at the issue of fiscal multipliers the impact that a rise or fall in government spending or tax collection has on a country's economic output so max they've been looking at the eurozone and making projections based on a point five multiplier which is a very low multiplier effect of any fiscal policy but what they've discovered is that actually this is only ap

nature of the subject oh absolutely in a war setting the corpses stink and they rot and you can smell them but here in the financial war banks like ages b.c. lloyds barclays royal bank of scotland they're they're run by zombies they're dead they're rotting but you don't smell it because the the rotting banking system doesn't doesn't emit an odor. such so people are not aware that they're walking amongst the dead the british pound is a zombie currency and the british bankers are all necrophiliac loving the zombie bankers and banks and this is what we do we report on it we're on the front lines exactly but i think there is an awful stench we all did smell it in two thousand and seven and two thousand and eight people were panicked people. scared people that was this because of the stench of the banking system but people are used to it now and they just think oh well you know my horsemeat burger and they move on but you know four hundred episodes in to the kaiser report this financial report many of the themes we've been looking at are starting to come true one of them as you mentioned in the opening is currency wars so let's look at this first headline of the past week the big he

bank, of all places. it's been on a roll. spain may not ask for a bailout. get this. jpmorgan just this morning put royal bank of scotlands buy list. i thought those guys were turning by now. oh, and let's just make it clear that while apple, big international player is certainly beneficiary of this -- it should be, right? it just happens to be stuck in its own maelstrom. and i'm going to spend a ton of time on that if you stay tuned. one of the things i found to be the case over the years is that january sets a trend when it comes to sector gains. we saw domestic stocks rally from the get-go and stumble from january on. this year i think that's reversed. a combination of higher taxes plus the general disarray in washington has driven money toward the exact sectors we fled from last year. the companies that moved so aggressively overseas stopped being dragged down by our sluggish economy. the move is in its infancy. they were left for dead in 2012 and are roaring back to life. i think they will gain steam as the wrangling in washington goes on for the rest of the year and beyond. fred in ohio, fred? >> caller: yes, jim.

the royal bank of scotland considering of splitting into two divisions.bs's market business will be separate from its international banking division. the pension fund for one of hostess's unions has hired investment bank to represent 6,000 bakers. the investment bank has represented workers at american airlines and advised liquidation of madoff's firm. and china is cutting bank card payment fees next month to boost domestic spending. moody's says the cut will result in 30% reduction merchant fee income for the banks. that is today's speed read. david: as the flu epidemic continues to hit the u.s. the fda has approved a new kind of flu vaccine that is not made using eggs or influenza virus like other vaccines are. >> what are the benefits and when can we get our hands on it? joining us now is the protein sciences ceo. welcome, thank you for coming on. you've had this flu shot yourself? >> thanks for having me. no, unfortunately, i haven't had the flu shot like myself because we are hoping to get the vaccine approved this year. we have made doses. we are wa

authorities are reportedly pushing for royal bank of scotland to agree to criminal charges as part of its libor settlement. but executives are reportedly rejecting the plea. >> and happy birthday. not to you, not to me, to the etf industry. very exciting. it is the 20th birthday of the first major index. almost old enough to drink. >> you're in europe now, okay? >> we want to know whether you've invested in the products. has ubs changed products for better or worse? what should the drinking age be? e-mail us, worldwide@cnbc.com and tweet us, @cnbcwex to get involved. >> it's 16. or 18? >> i think is 16 old enough to invest in etfs, do you think? you can be any age to invest, right? >> we've been asking guests on the program, and this st one of the debates that, yes, they have ach lower cost, they allow you to invest across products. >> and it's very complicated because then you're getting into accounts party risk and you're supposed to be -- you know, these are pretty plain vanilla safe options. as with anything, the derivative side, it's very hard to work out, actually, how these thi

the other thing notable today was how some of the banks are lower in europe led by lloyd -- i beg your pardon -- by royal bank of scotlanduthorities are looking for criminal sanctions against executives of the bank as a result of the scandal. that scared a lot of people and would be in addition to potentially half a billion sterling in terms of fines and penalties there. the other thing i think we need to keep our eye on and it is not a huge issue at the moment. it is in italy but it doesn't have huge, wider ramifications is the bank scandal, the fact they found this billion dollar derivatives that dates back to when mario draghi was in charge of the bank of italy. there is still a huge amount of concern in italy at a time when they may have to increase their austerity. today the finance minister is going to be up before and he is explaining exactly what went on with bribes paid in a take over. what did mario drag hye know? the danger is that this impacts the result of the italian election and that potentially get those nonmonti, nonausterity people having a greater say and that could upset the apple cart. for the moment

to be a scandal exactly so here are the british population as i said eighty two percent of royal bank of scotland the old forty one percent of lloyds bank they don't seem to care what is actually in the banks what in fact it's a black hole that's you know it's sucking in the economy now when the bank officials were asked before the treasury select committee the bank officials refused to quantify the capital shortfall in evidence to the t.s.a. yesterday but they confirmed it was substantial my. corps a member of the bank's financial policy committee said it was a big number well andy haldane the bank's executive director for financial stability agreed it was material so as you see they don't know they they say it's substantial it's material and it's a big number right royal bank of scotland will require another massive state bailout which will require more austerity now horsemeat was popular in the u.k. after world war two sparta rationing exercise due to the economy being blasted by the war here you've got a currency war going on our royal bank of scotland has taken a position against the populat