so if it wasn't just barclays in the u.k., who else? >> the regulators are also looking at more than a dozen other banks and those include citigroup. >> stephen: what? so, so citigroup is an american bank. no big deal. >> it's a big deal. [bleep]. >> you can't trust libor. you can't trust anything in banking. >> i knew i shouldn't have trusted those guys! i am never, ever-- (applause) >> stephen: i tell you! i am never getting drunk in the steam room again. i mean the consumers have been screwed. >> since consumer loans are based upon that rate, you could argue that this actually helped consumers by getting them lower rates. >> stephen: oh. oh, so it was good. >> the banks deprived investors of hundreds of millions if to the billions of dollars by keeping libor rates low. >> stephen: so it was bad. >> any time there is a winner in a trade, there's also a lowers it is basically a 0 sum game. >> stephen: so it is both good and bad at the same time like the bachelorette. (laughter) god, i'm so confused. i know this libor thing is important but for the life of me, i cannot figure out why. >> here to figure out why for me life is columnist and "ne

. >> susie: so citigroup and bank of america are reporting next week. what's the message from those banks? >> they've been more challenged than j.p. morgan and wells fargo. we don't expect the strength that we saw in these two banks to be reflected. that said, the core issues, loan growth in the united states, a relatively stable banking system over here should provide some positive backdrop for both companies >> susie: is this a turning point for the financials? how do you see the financial sector doing? >> we think it's a turning point in terms of domestic banks. we think there's good things going on. mortgage lending, overall business lending is picking up, and the credit position of these banks is very good. we think that's a good backdrop for the rest of the here in the u.s. but faition t issues in europe, whether it's libor scandals or french and spanish and italian banks are still a big overhang. we're recommending investors to stay local with their investments in financials. >> susie: so investors want to stay local. what are stocks you're recom

and prices, ed morse, he's managing director and head of global commodities research at citigroup global markets. so, ed, a lot of questions today about the big china deal concerns about world oil supplies and prices. is there a risk here? >> i don't think the risk is very great. they have 200,000 barrels a day production and that's a fifth of c-nook's production and compares to a global market of 90 billion barrels a day. it's a tiny amount of supply from the world perspective but it means a good deal more perhaps in terms of future supply. >> susie: you know, there has been resistance to china buying a big oil company. we had an issue with unical in the u.s. if this opens the way for more oil deals with china what would that mean to oil supplies down the road? you just look the at it on a macro level. >> well, cnook has a deep water production offshore and growing deepwater production. the big areas of growth globally are in deep water. oil sands in canada, and shale plays in the united states. and exxon has every bit of that. so, this means that cnook is trying to -- has found a place to put in c

bank of america's in the city groups that are under investigation there are yes again and so if you morgan citigroup h.s.b.c. these are all i have your investigators and they think that they can just try to group it all together so that there is shared blame and shared punishment the attitude that they've always had of course they want to escape any kind of real scrutiny they want to escape the kind of scrutiny that they've seen with barclays and if they all get all together and their group together in a settlement then they avoid that being singled out and that i think that really misses a chance for this to be the tobacco moment for wall street that some have thought this may be is there anything that can give us a hint as to whether or not that might actually happen though you know are there certain things that maybe are too complicated so that they wouldn't be able to make it a group group lawsuit i have no idea i have no idea i really don't know that's a good question but i mean i think that one of the main points to make too is that if that does happen that doesn't necessarily mean this is a d

jpmorgan chase was his sixth largest contributor, and citigroup was his seventh largest contributor. not so this time around. this time, totally bailing on obama. goldman sachs is mitt romney's biggest contributor. jpmorgan chase is his second largest contradicter and citigroup his sixth largest contributor. so it seems something has changed between 2008 and today. the bankers aren't just hating the president out of some reflexive paranoia of the gun lobby. these guys used to like barack obama. they gave him tons of money in the last election. if you think there's an easy explanation, you would be wrong. not only is there not a consensus that president obama has been an enemy of wall street, there's an argument made in some corners he's much too friendly to the finance industry. joining us is neil barofsky who is a former federal prosecutor for the southern district of new york and is author of a new book "bailout: an inside account about washington abandoned main street while rescuing watt street." he's now a senior fellow at nyu school of law. thanks for being here. >> thanks for having m

citigroup is actually one of them. it actually is number 15 on the list. soct is, people talk about how horrible citigroup is, how all these things are going wrong at citigroup. but what's wrong with banking? and yet, this company is third highest on the list of money-makers of banks in the world, and it's 15th highest on the list of companies in the united states that make money, and it's because vikram pandit has changed personnel, he redirected operations, he's put more money into technology, he's redirected to a decentralized operation instead of centralized. he's done dozens of things, all of which, other than the reverse split, all of which i think are correct. >> hey, dick, very quickly, he says he plans to try and hike the dividend. it's a penny right now. he'd like to see this change before the end of the year. how important is that and what kind of dividend would you like to see paid out? >> yeah, he's not going to get to do it. basically, he did not -- as you noted earlier this morning, he has not requested a dividend increase from the federal rese

the investigation into libor rates continue, so far no other banks have been charged, but citigroup, j.p. morgan chase, and h.s.b.c. are all under investigation. airbus. the big european jet maker is wheels down in alabama, announcing plans today for its first u.s. factory. airbus executives were flanked by gulf coast politicians as they unveiled plans to build the narrow-body a-320 plane in mobile, alabama. the factory will cost $600 million, and add 1,000 jobs, doubling airbus' u.s. workforce by the year 2016. this is the company's second plant outside europe, the other one is in china. airbus' c.e.o. says no one should be surprised by today's announcement. >> airbus has indeed european roots, but we have long since grown, into a truly global company with key sites in every part of the world, and of course we are already right at home here, in the united states of america. >> susie: the a-320 is airbus' most popular plane and it's key to the company's strategy of competing u.s. rival boeing. >> susie: some legal wrangling overseas for apple today. first, italy. that country is thre

list of doggies says the policymakers would do anything to preserve the euro also citigroup had a bit of a down day so they announced that they see a ninety percent chance that greece will leave the euro zone in the next twelve to eighteen months or as a prolonged economic weakness of the year it is going to exchange rates and see how it's responding right now it is managing to get even good at one twenty two eighty four there for the traders favor the rubles finished up its trading session today and it managed to gain against the u.s. dollar and the european currency that brings us on to their coaches here in moscow we had a bit of a rally on our hands actually that they are yes nearly two and a half percent in positive territory really feeding off the positive gains in the european and asian markets as well as all day as well which i got all a's up in the meantime as have the stocks movers and shakers the biggest lender here is expected to raise its benchmark mortgage rate next month also b t v as well as second biggest one hopes that impulsive terrorising a real step as well they were given a bit o

course sales how can you capitalize on russia's relative strength citigroup suggests investing into global companies with sales in russia. so if you have the money it seems that this is the fun of the place where the money's a big guy but then the guys as we've been sent a lot of people are struggling why they just have the money to have more have invested that karen thanks for that update marina shortly cross-talk looks at the american presidential campaign and debates why mitt romney's fortunes have turned sour so quickly that's after a recap of our top stories in just a few minutes. culture is that so much money in the future calls you on it comes the early days of the trials and tribulations of juki presidential candidate mitt romney is romney's rich history and less than transparent business records too much for voters. more news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. trying to corporations are old today.

citigroup. >> you don't want to root against one of my teams. thank you. citi is inexpensive but so what? rnational banks, nobody cares. my charitable trust owns jpmorgan. i saw jamie dimon buying the stock. citigroup, the time is not yet here. it's got to build capital, give it back, get citi holdings down and only then will i think it is right to buy? yes, sir. >> boo-yah, mike from new jersey, jim. >> how are you? >> how do we process the small increase that caterpillar got i today with the really good earnings report? >> i was struck myself. when that stock hit 84 bucks it was like a wall. it hit a retaining wall. i think that's wrong. i think people are worried that tomorrow will be a bad europe day. i think caterpillar proved the stock deserves the benefit of the doubt. i would give it a ten multiple. the stock goes to 90. that's where you can continue to buy it up to. one more? no. that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] [ cheers and applause ] >> announcer: the lightning round is sponsored by td ameritrade. take the privileged investing tool

irony cannot be missed this is a man who at the helm of citigroup helped turned it into a behemoth now he is obviously singing a different tune so we're going to talk about all of this and more as well as alternative investments to get out of this financial system that's so crazy we have jim rickards author of currency wars as my guest host today and rick rule natural resources guru as a guest from vancouver so you won't want to miss it right a lot going on there thanks lauren for that update that's all coming up next on the capital account but that is going to do it for the news for the very latest on the stories we covered today and a few that we didn't have time to get so you can check out our you tube channel you tube. dot com slash r t america or check out our website it's artsy dot com slash usa that's a find out what i'm doing when i am not reporting the news you can follow me on twitter at was wall will be right back here in a half hour with more news and in-depth interviews so keep it tuned right here. wealthy british style. time to. go. hide the. markets why not. find out what's really happening to the global economy w

flaws with live bores early as august two thousand and seven so the blame game begins as the investigation spreads to top u.s. banks like citigroup j.p. morgan and b. of a deeply the banks or do you blame the regulators then if the f.t.c. is accused and i would based broker p.f.g. best of misusing over two hundred million dollars in customer funds and the whereabouts of that money are currently unknown so after the end of global fallout which the industry swore it couldn't happen again are we feeling a little deja vu and what does all of that teach us about the way justice is done here in america joining me to discuss this is anthony randolph director of economic research for the reason foundation and richard ask out senior fellow for campaign for america's future and host of the breakdown on we act radio in washington d.c. gentlemen thank you both for joining me tonight and before we get into the specifics of some of these scandals some of these stories go back to that poll that i just talked about of that survey amongst five hundred executives that think that you know what you need a little unethical behavior if you want to suc

so i think what we should probably do is go and split up investment banking from banking. >> that comment on "squawk box" this morning of former citigroup sandy weill. it is the first time that we have heard weill say the vision of the so-called super banks may have been wrong. but will the words work to convince anyone in washington he is wrong? let's bring in bethany mcclain and jared burnstein. both are cnbc contributors. ladies first always here. your reaction to sandy weill's comments? >> it is astonishing and comes on the heels of phil purcell. writing an op-ed calling for the same thing saying that the big banks should be split up and so we have two of the real creators of the behemoths saying this isn't working. >> and do you believe, bethany, that somebody will listen to what sandy weill had to say? >> i'm spectacle they would have said this if it wasn't for the market pressure on the big banks. the market is voting and voting thumbs down about the big banking model. just look at the stocks and where most of the banks are trading, at a discount to book value. and i think it's investors in the end that will create the pressure t

sandy weil, formerly of citigroup, architect of bigger is better in terms of banking when he put together travellers and citi corps so many years' ago, now changing his tune. listen to what he said this week. >> i think what we should probably do is go and split up investment banking and banking, have banks be ddeposit-takers, have banks make commercial loans and real estate loans. have banks do something that's not going to risk e taxpayer dollars, that's nott going to b too big to fail. >> were you surprised at this, and do you still believe this should be happening? >> you know, it's interesting, right. the guy who created the frank frankenstein monster that helped destroy the global economy has now come around. although i wish he was there in 2010 when therreally was bipartisan support to break up the banks that was beaten back by the banks and the treasury department and the obama administration, defeating that bill, i welcome him on team break them up now. it's very important he's saying this. >> do you think it will happen? is it realistic? do you think we are going to break up the banks? >> i think eventually

so far this year, they've spent about $16 million on lobbying. the biggest spenders are wells fargo, jpmorgan, and citigroupsey's democratic senator robert menendez one of 12 calling on a look in as to the scandal. i tried to explain why this libor scandal is so important, but obviously you feel it is, too. do you think that there was manipulation by american banks? >> well, we don't know for sure, but we do know published reports have a list of over a dozen banks, two from the united states, that are supposedly under review by the justice department. and that's why, you know, i wanted to along with several of my other colleagues to urge attorney general holder to pursue this vigorously because libor is at the very basis of our global economic system. and insofar as the effect on consumers, the effect on investors, the effect on pension fund, all of this is affected. so from your mortgage that may be adjusted because libor goes up, if you have an adjustable rate mortgage, to credit cards, to your money market fund, all of these are at the core of making decisions that affect our financial wellbeing. so we n

percent the earning season is in full swing citigroup is reporting on monday in fact a third of the companies in the dow jones index are reporting this week so these results will likely to be the main driving force on the equity markets overall and analysts hope that i'll be trying to actual results in the u.s. will help lift the russian markets higher this week is seeing friday's closing takers and it was a pretty good day more than two percent for the r.t.s. as you can see not bad at all considering that we have some disappointing data coming out of china and the states will see what happens when the russian markets reopen in less than two hours now on to the currencies and as you can see at the moment the euro trading pretty much want to walk to negative to the u.s. dollar and on friday the russian ruble closed that mixed will bring you all the latest the soonest of russian markets reopen and crude is off its highs over more than a week on monday mainly on concerns that china's growth has not gained in the momentum that. many hoped it would at the moment the w. ties trading below eighty seven dollars a barrel that's always just from the b

. >> what happens is there's so many different reasons why people don't come forth to get tested even though they may realize they are at some risk. certainly citigroupve is one of them. going in and asking for a is test in some circles would stigmatize someone. the idea of having a test the person can get in the privacy of their own home goes a long way to breaking down that barrier of getting to the people who are infected and who don't know that they're infected. >> ifill: among that 2% who are they? who are undiagnosed. >> well, if you look at the relative proportion of people who get newly infected each year, particularly in the united states, they're about 50% or more have transmittability. we have 50,000 new infections each year in the united states and we haven't gotten below that level for a significant period of time in several years. so we really need to do something to get to the people who are infected get them into care and on therapy, both for their open good and the fact that when you put someone on ther level of their vie lust low you dramatically decrease the likelihood they're going to infect an uninfected text sult partner. there

. >> you have the so-called penguins if you'll allow me. >> citigroup, goldman, morgan stanley. >> march of the penguins. >> a neutral. >> neutral. >> what will get them to go to a sell? >> at this point what's the stock going to be? >> i don't know. i've never bought a coin on skrable. you never by any virtual goods. >> that's my secret. my 21-year-old daughter told me here's the secret to the web. never pay for anything. >> what is the cost of virtual goods sold? >> couple of bucks for a coin so you can get -- you can -- >> it raises the larger issue. you build a business model on people buying virtual goods. >> exactly. >> is that sustainable? >> farmville. >> at one point when the company went to the investment bankers and said we want to go public, we have a great business model where people make games and they come on and buy goods and they pay us, i'm sure that it was seen as a genius business model at some point. >> it is. >> that's the investment banking model. no wonder these guys loved it. they make nothing, charge a fortune and everybody goes home happy. >> if you are a zynga

treasury department you became vice chairman of citigroup you know at citi group he made over a hundred million dollars to keep beating up the financial crisis so. he also just point that out. for to was asked does warren ever get to take a night off that's dedication for a governor a's no not really i don't get a lot of time off and yes please on the race thanks for suggesting that on that note it would be a good time to leave you there's more i want to get to but what to save it for another time because that is all the time for today thank you so much for watching make sure to come back tomorrow and in the meantime you know you can follow me on twitter at lauren lyster and you can give it feedback on the show catch any you missed and you should definitely subscribe at youtube dot com slash capital account you can also watch our show in h.d. on kulu at hulu dot com slash capital dash account catch our show tomorrow we have a new guest peter chair t.f. market advisors a really smart guy you an expert on europe but from everyone here have a great night. did those stores are here. for going global and. it's my. blog you. choose your place take yo