you've got the bank of the national sentiment the central banks around the world the commercial banks all operating together in those markets so you can't really call. free market because there's wide scale collusion you've got to be i asked accepting swap or paper as a way to somehow make it easier for the accounting on the commercial bank side to take into consideration the fact that their balance sheets are falling apart in real time and the net result would be similar to what we saw in the gold pool back i guess in the sixty's which is an attempt to keep the price down which failed then and will probably fail now is that a fair summary is a grave sin is that i don't think the commercial just official i don't think the commercial banks. i think may have an issue with the gold sword ben davies thanks so much for being on the kaiser report thanks very much for already that's going to do it for this edition of the kaiser report i want to thank my guests stacy herbert and ben davies if you want to send me an e-mail please do so at kaiser report at r t t v are you until next time this i

deutsche bank topped the results before the german banks tested. commerzbank also did well. >> the results are surprising because they are along the same lines we have seen for a long time now. there is a rise in the average capital ratio in the german sector from 9% in 2008 to more than 10% in 2010. >> spanish banks would need around 1.8 billion euros to survive another credit crunch. the head of the central bank in spain emphasized that the stress tests were only an exercise and not a forecast. he said that regional banks saturday been restructured. the results have been met with widespread relief. they show european institutions are in good shape but it is to be seen how the news will affect the markets. >> we are putting a lot of stress on the stress tests. earlier, i spoke with the banking and credit institute head here in germany and i asked how the german banks had feared. >> some of them have failed but this was not a surprise. there is also the reconstruction bank anyway. there's nothing new. >> what about the german press bank. what will h

central banks the b i s is the central bank to the central banks and they have a mandate they can do financial transactions with those central banks they also can if you look within the statute they can transact within the commercial banking sector as well so in regard to the bailiffs gold swaps now what is a swap swap is a transference of one asset for another in this case it is gold for foreign exchange reserves to all intents and purposes it's not much different from a loan or a repro repurchase agreement but typically swaps occur from central bank to central bank whereas repo is from. a commercial bank to a central bank so in this case it seems rather odd that you'd have a commercial bank. giving gold to almost what bases to the buyers would be the purpose of that and what got the imagination really foreign for people is that also there's a lot of problems in europe and rumors were abound the perhaps it is in some ways some liquidity provision for the central banks and perhaps that was the bias was you know really want to come out and say no this is not a central bank swap there'

and the large banks and the non-banks. we have gotten a wonderful reception on capitol hill. host: how will community banks function today as opposed to before the regulatory commission signed into law? guest: the way the the regulators are treating community banks, which is not so great, the things that will follow along with the regulatory bill and obviously, the economy is going to get better and we can build on the success we have had with the small bank provisions we have gotten in the bill. we are optimistic, but there are obviously some troubling features of the bill. 2300 pages, you're going to have some problems. host: what are some concerns that you have? guest: 1 concern is the community protection bureau. community banks will be continued to be examined by their own examiner, but the bureau itself will have a broad scope of authority. community blake -- community banks will be a complying. there is some residual nervousness. the other issue is this durbin amendment to, which will cut back on the income that ban

one of the carriages was on the bank after being ripped apart crates were taken out of it. in the summer of two thousand and two the linker and other scientists still said that the sent to the bed of late i called on board amid deep sea submersible from here as it did one thousand four hundred metres they found a great carriages and post objects resembling crates this picture shows them in great detail childes as all of those crates were filled with gold. he has done this with under the firm reports indicate that several trains carry the goal of the location of the carriages elemental crates that were so heavy that they couldn't be moved coincides with a crash site because the. people in submersibles for only been able to examine the lake bed dragging up heavy objects are an altogether different vessel yes a bus stop it if the search for gold is caught on a strictly scientific basis success may be achieved. in the east bound train carrying the gold reserve by pulse the siberian city however isn't this building that a trace of the so-called siberian share of culture x. gold w

you look at what the banks have on their board. the big money that the banks have made. i mean the big money. they made more money than anything else is basically on derivatives. they lost money on their loans. they made households, equity loans. they made loans to students. they made credit card loans. i mean, this is where they lost the money. if you want them to go back to this business. right now they have been burnei >> let's hea . >> we face the most predictable economic crisis in our history. this crisis that we just are going through now, many people didn't predict this one is as clear as a bell. this debt is like a cancer. it is truly going to destroy the country from within. >> united states must get its debt under control. at the national governor's association this past weekend, cochairs of the u.s. national debt commission, allen simpson and erskin bowls both told a cautionary tail about the dimension of the u.s. federal debt. which is about to surpass surpa that's $47,000 for every united states resident. co-chairman, allen simpson, 18 years u.s. senator fro

bad debts are rising in the banking system. spain lived through the good times, confident the banks were rock-solid. there were checks and balances, lots of capital. but in a small corner of the banking system, on notice, there was also trouble. -- on notice, there was also trouble. it turned out that have the money that fuelled the property boom came from 42 small property banks. they are small, traditional, not for profit. half of them are being run by politicians and even priests. they had managed to plant the property developers 400 it -- 450 billion euros. so what could go wrong there? well, everything went wrong. analysts say these banks gave up 45 billion euros worth of losses. two have been nationalized and the rest at been forced into mergers. there is a strong suspicion that the money that they have to lend now comes from a european central bank, because no one else has the money to lend. >> it is a big bank, and they are in the market. so every financial position right now in the crisis -- [unintelligible] some of the

assets of the e.u. banking sector as a whole. the test required the banks to assume a severe economic downturn, and then measured to see if they could still meet capital requirements. regulators from 20 countries designed the tests and many of the details remain secret. one german bank failed, hypo real estate holding a.g. a second, atebank, is in greece. five banks in spain failed the test, but there were no failures in any other country. scott macdonald of aladdin capital, says the results were much better than expected. >> i think it was a constructive step that was put into place. the hurdles though were very low, and you've left a lot of room for uncertainty still to play out in the markets. so today, you had a big sigh that it was not as bad as people thought it was going to be. but when you fail only seven banks out of 91, there's a lot of questions raised. >> reporter: the questions were raised the minute the results became known. many critics challenged the test's methods, saying that the process minim

bigger than the bank, a lot more in there including insurance. life insurance stocks like prudential and affleck have done better. we'll look at these, but i want to ask you what is the outlook for insurance as we approach the second quarterings earnings season? >> insurance offers a lot of value, especially in an environment where interest rates don't look like they're going up for a long time. you have to start worrying when you think the fed is tightening. right now, that looks like a long way off. >> hudson: do you have any favorites within the whole financial space, areas that you -- sectors that you do like? >> we like the winners coming out of the financial reform. that is the exchanges. the cme's is still trading on volatility, but you want a growth area in the financials and that's the place to look. >> hudson: any disclosure with cme, fred? >> not with me. >> hudson: great to catch up. fred cannon, he's co-director of research, chief equity strat gist -- strat gist. >> susie: here are the stories in tonight's n.b.r. newswheel: a late sur

only in even the fifth they were about to start removing valuables from the bank when the city was shelled by the enemy. when four trucks and you damn and fifty armed the red army men back to the bank they started moving gold out despite the shelling but they could take out only a hundred crates with gold worth six million roubles and ninety five million rubles worth of my bank notes for. the point zero million units of the so-called czechoslovak legion entered with the seventh nine hundred eighteen the command of vladimir kapil sent a telegram to only headquarters of the he visited the bank it said the trophies beyond all calculation we have seized russia's gold reserve the whites were to repeat the bolsheviks mistake they made swift arrangements for the valuables to be taken out to a safe distance from the front line. here in this yard they brought a card to the back yard then as. anybody capable of lifting heavy weights help shift those enormous loads. the gold was taken to the pool by trams and translate by the bolsheviks but they never had the opportunity to use them

all of these changes, many of these rules on the applied to bigger banks, not the smallest banks, but the small banks are not really important systemically, and therefore this changes the landscape and president obama has an important victory and he desperately needs of vicicry because his approval ratings are down 43% -- his approval rings a down. a 43% of american voters strongly disapprove of his course, and only about one-third of america is behind him. >> he had made reform top priority because they said it would be empowered to prevent any recurrence of a financial crisis. will this law would do that? >> i think this law will put that into place. it needs more warning lights that flash earlier. it tries to leave toheanks and financial institutions in general as much freedom as possible. so they are allowed to engage in risky trading, they are allowed to have their business, but only to the point that not all system will be jeopardized and the taxpayer has to foot the bill. i think he has achieved a very important milestone. wall street is not shivering in fear there is no more b

growth was outsourced to other countries and sense the banks wanted free money to speculate with and says to bernanke eason the greenspan's are in the pockets of the investment banks the interest rate was artificially suppressed to near zero percent which means you've got millions of retirees and pensioners we're going to starve to death this is another whole a cost affecting millions of people in america well it creates a perfect ponzi economy because people are desperate for returns because there is zero percent on the savings rate and here you have the f.b.i. which is essential agency in terms of monitoring and looking for in detecting ponzi schemes and securities fraud and financial fraud behind this ponzi scheme in which the f.b.i. invested authority said was a self described retirement investment adviser named kenneth wayne mccloud who was forty eight forty years macleod served as a trusted advisor to federal agents around the country making free financial projections for retirement classic sign of a ponzi you know we'll give you free advice just for you it's free and in some ca

much attention has focused recently on the effect of capital restraints on the ability of banks and the need to have policies that will eliminate those constraints. many said that labor constraints are also an important factor. a number of banks have noted that the experienced staff members have been stretched very thin, spendinguch of their time dealing with problem loans to keep up with regulatory changes. and as a result, senior bank employees have had less time to process bank applications and some are less willing to engage in the labour-intensive -- labour-intensive activities. some small businesses have said that credit availability has been kent -- has been constrained in areas experiencing failure. this is an issue that we have been concerned about since mid- 2008 when the number of failures in banks began to rise, significantly. we have been tracking the areas affected and we have a number of failed institutions in each state from july 1, 2008, through march 2010. a few states, georgia and florida, illinois and california were hard-head. going to the more local level, it is cl

that is a small fraction of the 91 banks that were scrutinized, however. of the seven have failed, five are in spain, one is in germany, and one is in greece. according to regulators, the stress tests are very stringent. we should be reassured. the were the tests stressful enough to restore the credibility of european banking? we have this report. >> it felt like exam results time for europe's thanks, and these were the teachers marking the books. -- europe's banks, and these were the teachers marking the books. >> we have seven banks that would now, if the stress materialized, would be under the 6% threshold that we used as a benchmark. the capital shortfall to reach the sec's% set -- 6% would be 3.5 billion. >> across europe, regulators tested be held of 91 banks and in total. questions included how they would cope with their work and unexpected fall in economic growth and what would be the impact of the worsening in the government money market? the seven banks that failed were in germany, spain, and greece. most of them were small. they need to raise $4.

the banks all their profit fall 22% from the first three months of the year. investment banking took a hit as revenue dropped -- revenue dropped sharply amid weaker demands. the bank says the u.k. bonus tax also created onetime drag on e bottomine. >>> tomorrow is the day of reckoning for european banks, when the results of stress tests for 91 financial institutions will be released. the sentiment is so good at head of the release that bank stocks held a rally. >> these tourists are taking in the view from the heart of frankfurt's banking district. there may not be much to see on the outsidebut inside, and until regulators have been putting the banks through their paces -- financial regulators have been putting the banks through their paces. 91 banks have undergone stress tests. they will show if banks have the capacity to survive future downturns in the world's economy. each bank has to raise its minimum capital ratio to 6%. previously, it was up 4%. the uncertainty over the banking sector's resilience has become a problem for the economy, paralyzing financial

i've been to is on the west bank in the last few weeks and help the area see which is the part of the west bank which israel occupies the palestinians cannot even build a drainpipe on the ground there that area which is sixty percent of the twenty two percent of palestine that's left is occupied by the israelis israeli checkpoints israeli settlements the rest this little about eleven point seven percent is all the palestinians have got left this land is occupied and it will continue to be its my view there will not be a palestinian state it's gone it cannot exist in the framework that exists now unless there is an israeli withdrawal from area c. sixty percent and there is not going to be i am certain of that and i don't think there's any intention of being it is occupied and it has gone and that is the point and that's what mr obama account even admit at least until after the next mid-term elections ok dan you know a lot of people who say very bluntly they they did i'm sorry going ask my question first is that you know these are just talks for talks sake that under some circums

and the small banks. it has played out the large banks have benefited the most and got some larger at the expense of the small banks faja creek back have you found that anybody is worried about that impacter that it was ev considered when t.a.r.p funds were being handed out? >> senator, there is no dot there has been increased concentration in the banking industry's since t.a.r.p was put into the system. and we are very concerned the numbers indicate although some banks have been to fail and. we can sign no evidence that ad that's higher the initial t.a.r.p was signed and the money was put into the banks and that the treasury was concerned about the increase seeing concentration. >> thank you, mr. chairman. are witnesses think you and i have a question miss warner. >> if you may suspend briefly. i am told you have to be better quarter till to go to the white house? let him ask a uple three question >> of course, . before the small banks situation with respect to the home affordable mortgage modification p

the banks all their profit fall 22% from the first three months of the year. investment banking took a hit as revenue dropped -- revenue dropped sharply amid weaker demands. the bank says the u.k. bonus tax also created onetime drag on e bottomine. >>> tomorrow is the day of reckoning for european banks, when the results of stress tests for 91 financial institutions will be released.